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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
which we all enjoy. We are committed to this purpose and will provide a level of municipal
service consistent and responsive to our public and its needs.
REGULAR MEETING - JUNE 27, 1988
VETERANS MEMORIAL HALL - 6:00 P.M.
209 SURF ST., MORRO BAY, CA
ROLL CALL
INVOCATION
PLEDGE OF ALLEGIANCE
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 by standing. When recognized by the Mayor, please
come forward to the podium and state your name and address for the record.
Comments should normally be limited to three minutes.
DECLARATION OF FUTURE AGENDA ITEMS
A. CONSENT CALENDAR
Unless an item is pulled for separate action by the City Council, the fol-
lowing actions are approved without discussion.
A-1 MINUTES OF THE REGULAR MEETING OF JUNE 13, 1988, AND THE ADJOURNED
REGULAR MEETING OF JUNE 15, 1988
A-2 STATEMENT OF INVESTMENTS, MAY 1988
A-3 EXPENDITURE REPORT, MAY 1988
A-4 PROCLAMATION DECLARING JULY-OCTOBER 1988 AS "WATER AWARENESS MONTHS"
A-5 RESOLUTION NO. 63-88 APPROVING CONTINUATION OF MONTH -TO -MONTH DIAL -A -
RIDE OPERATING AGREEMENT WITH LAIDLAW TRANSIT, INC.
A-6 SET APPEAL HEARING DATE (JULY 11TH) FOR APPEAL OF CONDITIONAL USE PER-
MIT NO. 41-86 (FISH PUMP OPERATIONS, ORVAL LEAGE)
A-7 AWARD OF CONTRACT FOR FY 88-89 LOCAL VISITORS SERVICES BUREAU
A-8 RESOLUTION NO. 65-88 APPROVING TERMS OF EMPLOYMENT AND CONDITIONS FOR
CITY OF MORRO BAY EXECUTIVE EMPLOYEES (4-YEAR CONTRACT)
A-9 SET HEARING DATE (JULY 11TH) FOR APPEAL OF SIGN PERMIT NO. 04-88 (POLE
SIGN AT GOURMET CHALET, DALE MITCHELL)
A-10 REJECTION OF LIABILITY CLAIMS AGAINST THE CITY (KUNZ/BERGHELL)
A-11 AUTHORIZATION TO NEGOTIATE AN AGREEMENT WITH WHALE ROCK COMMISSION AND
APPROPRIATION TO FUND UP TO 50% OF THE COST FOR AN EIR AND WATERSHED
SURVEY FOR THE COASTAL STREAMS DIVERSION AND STORAGE PROJECT
A-12 AWARD OF CONTRACT FOR PROJECT NO. PW 87-13; DIGESTER PIPING ADDITION
AT MORRO BAY/CAYUCOS SEWERAGE TREATMENT PLANT
A-13 RESOLUTION NO. 67-88 APPROVING TERMS OF EMPLOYMENT AND CONDITIONS FOR
CITY OF MORRO BAY FIREFIGHTER EMPLOYEES (6-YEAR CONTRACT)
B. PUBLIC HEARINGS, REPORTS & APPEARANCES
B-1 RESOLUTION NO. 64-88 ADOPTING FY 88-89 CITY BUDGET AND ESTABLISHMENT
OF GANN (PROPOSITION 4) EXPENDITURE LIMIT
B-2 CERTIFICATION OF INITIATIVE MEASURES TO REZONE "PINEY WAY" PROPERTY TO
C-1, AND PROHIBIT A GAZEBO IN MORRO BAY "CITY" PARK; AND DETERMINATION
OF PLACEMENT ON NOVEMBER 1988 BALLOT OR CITY COUNCIL ADOPTION
B-3 POLICY GUIDANCE ON CONCEPTUAL REQUEST BY WILLIAM S. DOHAN TO TRANSFER
WATER EQUIVALENCIES ON BAYSHORE VILLAGE PROJECT; PHASES II AND III
B-4 PUBLIC HEARING ON INTERIM USE PERMIT 20-88/CDP 64-88R; MINOR IMPROVE-
MENT TO EXISTING FACILITIES AT LILA KEISER PARK (SCOREBOOTH)
B-5 APPEAL OF CITY COUNCIL DECISION TO INCREASE WATER AVAILABILITY FEES
EFFECTIVE IMMEDIATELY TO PARTIALLY FUND A SAN BERNARDO CREEK DAM
FEASIBILITY/EIR STUDY
C. UNFINISHED BUSINESS
C-1 RESOLUTION NO. 68-88 ADOPTING CUP 39-86 FOR MORRO BAY MARINA WATER-
FRONT PROJECT
C-2 AWARD OF CONTRACT FOR PROJECT NO. PW 87-09, POLICE STATION REMODEL
D. NEW BUSINESS
D-1 RESOLUTION NO. 62-88 APPROVING ASSIGNMENT OF LEASE SITE 62/62W FROM
DR./MRS. HITTLE TO ROBERT J. OBRIEN
D-2 CONSIDERATION OF ESTABLISHING COUNCIL/PLANNING COMMISSION SUB-
COMMITTEE TO DEVELOP HANDBOOK FOR BUILDING PERMIT APPLICANT
E. CLOSED SESSION
E-1 GOVERNMENT CODE SECTION 54956.8, REAL PROPERTY NEGOTIATIONS, SAN LUIS
COASTAL UNIFIED SCHOOL DISTRICT; NAPA STREET PROPERTY
E-2 GOVERNMENT CODE SECTION 54956.9(A), PENDING LITIGATION; CITY OF MORRO
BAY VS. HITTLE
E-3 GOVERNMENT CODE SECTION 54957.6(A), LABOR RELATIONS
F. ADJOURNMENT
COPIES OF STAFF REPORTS OR OTHER PUBLIC DOCUMENTATION RE-
LATING TO EACH ITEM OF BUSINESS REFERRED TO ON THIS
AGENDA ARE ON FILE IN THE OFFICE OF THE CITY CLERK AND
AVAILABLE FOR PUBLIC INSPECTION AND REPRODUCTION AT COST.
MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING - JUNE 27, 1988
VETERANS MEMORIAL HALL - 6:00 P.M.
Mayor Reddell called the meeting to order at 6:04 p.m.
ROLL CALL
PRESENT: Dale Reddell
Paul Donnelly
John Lemons
Jeff Odell
Rose Marie Sheetz
ABSENT: None
STAFF: Gary Napper
Judy Skousen
Louise Burt
Bill Farrel
Forrest Henderson
Dave Howell
Nick Nichols
Steve Wolter
Ardith Davis
Mayor
Councilmember
Councilmember
Councilmember
Councilmember
City Administrator
City Attorney
Finance Director
Community Develop. Dir.
Asst. to City Admin.
Chief of Police
Public Works Dir.
Recreation & Parks Dir.
City Clerk
Reverend Donald Carey of the Presbyterian Church gave the invoca-
tion, and Horace Strong led the Pledge of Allegiance.
PUBLIC COMMENT
1. Warren Dorn read a letter addressed to Mayor Reddell
from Morro Bay Beautiful regarding a meeting Mr. Dorn had with
Peter Grennell of the Coastal Commission concerning AB 639 and AB
1749. He reviewed the Bills and the grant monies available to
Morro Bay if the Council and the community work together to com-
plete waterfront improvement projects previously approved.
2. Bruce Risley, Civic Action League, referred to Proposi-
tion 70 on the June ballot and CAL's work to have the measure
adopted. He is hopeful there is a way this Proposition can bene-
fit Morro Bay. He stated CAL supports Item A-11 on the Agenda,
the Norton Dam Diversion Project; this action should have hap-
pened sooner. He said the City has enough rainfall to sustain
itself if it has a way to capture it; the Stream Diversion Pro-
ject provides the means under local control.
3. Mary Kunz requested Council pull Item A-10 from the
Consent Calendar and discuss it separately (Rejection of Liabil-
ity Claim, Kunz/Berghell). She stated they are not seeking mone-
tary reimbursement, but would like private property damage caused
MINUTES - MORRO BAOITY COUNCIL •
REGULAR MEETING - JUNE 27, 1988
PAGE 2
by City crews repaired. She objected to the cumbersome process
to get a small claim to this point, and indicated the information
by staff is not accurate.
4. Charles Palmer discussed the report presented to the
Whale Rock Commission on the Stream Diversion Project; he said
Morro Bay paid 50% of the study but was not a party to the con-
tract, and the San Luis Obispo Water Engineer directed how the
study should be conducted. He questioned whether Morro Bay's in-
terests were protected, and hoped Morro Bay will be a party to
the contracts for the EIR; Morro Bay should have an equal voice
in the study and outcome.
5. Barbara Sanders read a letter dated June 24, 1988 from
Tom Koon, President of the Scenic Coast Board of Realtors, re-
garding Councilmember Sheetz's property management business. As
required by law, the Board requests Councilmember Sheetz not to
engage in property management business until she first obtains
the required real estate broker's license.
DECLARATION OF FUTURE AGENDA ITEMS
1. Councilmember Sheetz reminded staff of her earlier re-
quest for next year's water allocation program be discussed in
August or September of this year; she requested the subject be
agendized in August.
2. Mayor Reddell requested an agenda item be scheduled
next meeting to discuss policies regarding Council's Declaration
of Future Agenda Items. He believed Council's requests should be
agendized without staff analysis or research to enable the whole
Council to determine whether the item merits staff time.
A. CONSENT CALENDAR
A-1 MINUTES OF THE REGULAR MEETING OF JUNE 13. 1988. AND THE
Mr. Napper recommended the minutes be approved as submitted.
A-2 STATEMENT OF INVESTMENTS, MAY 1988
Mr. Napper recommended Council receive the report for file.
A-3 EXPENDITURE REPORT. MAY 1988
Mr. Napper recommended Council approve the Report as submitted.
MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING - JUNE 27, 1988
PAGE 3
A-4 PROCLAMATION DECLARING JULY-OCTOBER 1
w.rwimv c
Mr. Napper recommended Council authorize the Mayor to sign the
Proclamation, and endorse the voluntary water conservation mea-
sures as proposed by the Water Advisory Board.
A-5 RESOLUTION NO. 63-88 APPROVING CONTINUATION
Mr. Napper recommended Council adopt Resolution No. 63-88.
A-6
Mr. Napper recommended Council set July 11, 1988 as the hearing
date for the appeal, and authorize staff to notice the hearing
and prepare the appropriate reports.
A-7 AWARD OF CONTRACT FOR FY 88-89 LOCAL VISITORS SERVICES
BUREAU
Mr. Napper recommended Council pull this item from the Consent
Calendar for separate action; that Council move to declare the
bid non -responsive to City specifications; and instruct staff re-
garding the bid specifications to fund a local visitors services
bureau.
A-8 RESOLUTION NO. 65-88 APPROVING TERMS OF EMPLOYMENT AND CON -
Mr. Napper recommended Council adopt Resolution No. 65-88.
A-9
Mr. Napper recommended Council set July 11, 1988 as the hearing
date for the appeal, and authorize staff to notice the meeting
and prepare the appropriate reports.
A-10 REJECTION OF LIABILITY CLAIMS AGAINST THE CITY (KUNZ
Mr. Napper recommended Council deny the claims, and authorize the
City Clerk to sign and send the appropriate rejection notices.
MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING - JUNE 27, 1988
PAGE 4
A-11 AUTHORIZATION TO NEGOTIATE AN -AGREEMENT WITH WHALE ROCK COM-
MISSION AND APPROPRIATION TO FUND UP TO 50% OF THE COST FOR
Mr. Napper recommended Council earmark $42,500 from the New Water
Production Reserve Account to fund a 50% share of an
EIR/Watershed Survey on the Coastal Streams Diversion and Storage
Project, and authorize the Mayor to send a letter to Whale Rock
Commission requesting they take identical action immediately;
and, that staff be authorized to negotiate and develop a draft
Memorandum of Understanding between agencies interested in re-
ceiving the benefits of this water project.
A-12 AWARD OF CONTRACT FOR PROJECT NO. PW 87-
Mr. Napper recommended Council award the contract to Negranti
Construction in the amount of $14,996.
A-13
Mr. Napper recommended Council adopt Resolution No. 67-88.
Mayor Reddell requested Item A-4 be pulled for separate consider-
ation; Councilmember Sheetz requested Item A-1 and A-10 be
pulled; and Councilmember Lemons requested Item A-11 be pulled.
MOTION: Councilmember Sheetz moved for the approval of the Con-
sent Calendar except for Items A-1, A-4, A-7, A-10, and
A-11. The motion was seconded by Councilmember Lemons
and unanimously carried. (5-0)
A-1 MINUTES OF THE REGULAR MEETING OF JUNE 13, 1988, AND THE
ADJOURNED REGULAR MEETING OF JUNE 15; 1988
Councilmember Sheetz requested pages 1 and 2 of June 13th minutes
be amended, that her request was for an ordinance to install
sprinkler systems on any new construction "which posed a problem
to firefighting, such as hillsides".
Councilmember Odell also requested the minutes be amended on page
8 under consideration of the County Hazardous Waste Management
Draft Plan; add after the last paragraph and before the motion,
"Councilmember Odell asked if P.G.&E.'s permit for treatment of
hazardous wastes applied exclusively to those wastes generated
on -site. Mr. Holden responded that their permit was limited to
treatment of on -site waste only."
MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING - JUNE 27, 1988
PAGE 5
MOTION: Councilmember Lemons moved for approval of Item A-1 as
amended. The motion was seconded by Councilmember
Sheetz and unanimously carried. (5-0)
A-4 PROCLAMATION DECLARING JULY-OCTOBER 1988 AS "WATER AWARENESS
MONTHS"
Mayor Reddell read the Proclamation in its entirety, and stated
specified dates should be eliminated from the conservation mea-
sures; water conservation is for all seasons, not just summer
months.
Councilmember Sheetz suggested signs be placed in motels remind-
ing visitors to conserve water, and water be served to customers
in restaurants only when requested. Councilmember Lemons agreed
with Mayor Reddell to eliminate the specific months; he also sug-
gested changing the Outdoor Water Schedule to Tuesday or Satur-
days, and Wednesday or Sundays, and to stress the voluntary na-
ture of these conservation practices.
MOTION: Councilmember Lemons moved for approval of Item A-4 as
amended. The motion was seconded by Councilmember
Sheetz and unanimously carried. (5-0)
A-7 AWARD OF CONTRACT FOR FY 88-89 LOCAL VISITORS SERVICES
BUREAU
Mr. Napper explained the City advertised for bids to operate the
local visitors services bureau, and received one bid from the
Chamber of Commerce. The bid specifications required an office
be open 48 hours per week, Monday through Saturday; the bid sub-
mitted by the Chamber requests Monday through Friday operation
from October through April. Mr. Napper stated the 10.5% reduc-
tion in operating hours coupled with the 5% increase in FY 88-89
funding realizes a 17% net financial gain. He said Council can
only declare the bid non -responsive and either instruct staff to
re -advertise the same bid specifications, or modify the bid spec-
ifications to match the Chamber's newly -requested office hours
and then re -advertise.
Councilmember Lemons suggested staff research the matter and rec-
ommend whether it makes sense to curtail the operation. Mr.
Napper pointed out recent Community Promotions activities aimed
at increasing off-season tourism which conflict with the elimina-
tion of Saturday service. Councilmember Sheetz asked if the
Chamber cuts their hours, would the funding level decrease? Mr.
Napper stated level of funding is up to Council.
MOTION: Councilmember Lemons moved Council declare the Morro
Bay Chamber of Commerce bid is non -responsive to City
specifications. The motion was seconded by Councilmem-
ber Sheetz and unanimously carried. (5-0)
MINUTES - MORRO BA46ITY COUNCIL •
REGULAR MEETING - JUNE 27, 1988
PAGE 6
MOTION: Councilmember Lemons moved staff be directed to evalu-
ate and recommend to Council the pros and cons of the
alternatives; i.e. Chamber decreasing office hours, Re-
quest for Proposals, funding for decreased service.
The motion was seconded by Councilmember Sheetz and
unanimously carried. (5-0)
Mayor Reddell stated he was interested in why the Chamber feels
it is not cost effective to be open on Saturdays, particularly
when the business community is encouraged to stay open on that
day.
A-10
yTl
Councilmember Sheetz questioned if the City could settle this
matter by reseeding the area; Ms. Kunz has stated she is not re-
questing a monetary settlement. Mr. Henderson stated the City
crews and an independent investigator have stated the spraying
was only done on City right-of-way property.
Mr. Napper suggested this item be discussed in Closed Session.
MOTION: Councilmember Lemons moved this item be considered in
Closed Session. The motion was seconded by Councilmem-
ber Odell and unanimously carried. (5-0)
A-11 AUTHORIZATION TO NEGOTIATE AN AGREEMENT WITH WHALE ROCK COM-
MISSION AND APPROPRIATION TO FUND UP TO 50% OF THE COST FOR
AN EIR AND WATERSHED SURVEY FOR THE COASTAL STREAMS DIVER-
SION AND STORAGE PROJECT
Mr. Lemons urged the people of Morro Bay to go easy on comments
that might indicate the City of Morro Bay should be in charge of
the Stream Diversion Project. The project is needed badly, and
comments made at the Whale Rock Commission hearing came close to
costing the City the opportunity to negotiate an agreement and
proceed with the project. The implication was made that the a
"Hoover Commission" should investigate the Whale Rock Commission
because it took them so long to review the report. The City of
Morro Bay needs the Whale Rock reservoir and pipeline for this
project; it is necessary in the EIR process that there be a lead
agency designated. It is inconceivable Morro Bay should make
waves to the effect they want to run the show. He stated the
City is being protected quite well, and we should go forward with
a spirit of cooperation; inappropriate comments as expressed by
some seriously endanger the project.
Councilmember Odell agreed with Councilmember Lemons, and noted
politics between agencies could kill the project more than its
technical scrutiny. Councilmember Donnelly encouraged people to
MINUTES - MORRO BAITY COUNCIL •
REGULAR MEETING - JUNE 27, 1988
PAGE 7
refer to the project as the "Stream Diversion Project" rather
than singling out an individual by naming the project after him.
MOTION: Councilmember Lemons moved for approval of Item A-11 to
earmark $42,500 from the New Water Production Reserve
Account to fund a 50% share of an EIR/Watershed Survey
on the Coastal Streams Diversion and Storage Project,
and authorize the Mayor to send a letter to Whale Rock
Commission requesting they take identical action imme-
diately; and, that staff be authorized to negotiate and
develop a draft Memorandum of Understanding between
agencies interested in receiving the benefits of this
water project. The motion was seconded by Councilmem-
ber Sheetz and unanimously carried. (5-0)
B. PUBLIC HEARINGS. REPORTS & APPEARANCES
B-1 RESOLUTION NO. 64-88 ADOPTING FY 88-89 CITY BUDGET AND
ESTABLISHMENT OF GANN (PROPOSITION 4) EXPENDITURE LIMIT
Mr. Napper stated Council reviewed the Preliminary Budget during
recent budget workshops, and changes made by Council have been
incorporated into the Final Budget. He noted the budget of
$7,781,007 includes operating and capital budgets; when employees
agreements are reached, those amounts will be incorporated into
the budget. Also included in this item is the declaration of the
City's "Gann" Expenditures Limit for FY 88-89, which is
$1,372,367 under the allowed expenditure limit. He recommended
Council adopt Resolution No. 64-88
Mayor Reddell opened the hearing to the public for comments;
there were no comments and the hearing was closed.
MOTION: Councilmember Sheetz moved for the adoption of Resolu-
tion No. 64-88. The motion was seconded by Councilmem-
ber Lemons and unanimously carried. (5-0)
Im
Ardith Davis stated 2 petitions. were filed on May 20, 1988; one
to prohibit a gazebo in Morro Bay "City" Park and to require any
gazebo in "City" Park be removed, and another to rezone the
"Piney Way Village" property from R-2 Multi -Family to C-1 Dis-
trict Commercial. The petitions have been examined and deter-
mined sufficient to qualify them for placement on the ballot at
the City's general municipal election November 8, 1988. A reso-
lution has been prepared for Council to take that action. The
only other alternative available to Council is to adopt the mea-
sures without alteration. If Council sets the matter for the
MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING - JUNE 27, 1988
PAGE 8
November election, Council has first priority to file an argument
against either or both of the measures.
Mayor Reddell opened the hearing to the public.
Nancy Bast, Vice -President of Civic Action League, discussed the
"Piney Way Village" initiative and the large favorable community
response to the petition. She stated a shopping center at this
location including a market will give the Williams Brothers mar-
ket needed competition.
Swanee Swanson, 775 Kern Avenue, discussed the gazebo's liability
in terms of maintenance and insurance, and stated something
should be done instead about the City's entrance at the intersec-
tion of Kern Avenue. He said the City Park should be for neigh-
borhood relaxation. He also stated the Piney Way Village peti-
tion was further commercial exploitation of an area already con-
gested with traffic.
Charles Palmer reminded Council Mr. Dorn had stated when he of-
fered the gazebo to the City he would withdraw the offer if the
matter goes to the ballot, as Morro Bay Beautiful does not get
involved in politics. He said if Mr. Dorn is a man of his word,
he assumes the gazebo offer will now be withdrawn.
Joan Silva, 934 Anchor, stated she is the proponent of the gazebo
initiative and the gazebo does not belong in this small park; the
people want to vote on this issue, and it should go on the
ballot.
Howard Gaines, 441 Orcas, stated he also heard Mr. Dorn state he
would withdraw the offer of the gazebo if it goes to the ballot.
He said the election is a needless expense the citizens have to
make to reverse a decision made by the Council. He said Morro
Bay Beautiful is a non-profit organization involved in politics;
he commented the IRS would probably like to hear about this.
Ray Kaltenbach suggested Council approve the Piney Way Village
initiative as the commercial zoning will provide needed jobs for
Morro Bay citizens.
Ed Smith stated he resents the implication Morro Bay Beautiful is
trying to shove the gazebo down the community's throat. He pre-
sented a memorandum dated February 11, 1985 from a Subcommittee
of the Parks and Recreation Commission; he requested it be en-
tered into the record. The memo contained the Committee's recom-
mendation a gazebo would enhance the small town atmosphere of
City Park and suggested placing the gazebo where the large tree
is at the Morro Bay Blvd./Harbor Street intersection of the Park.
MINUTES - MORRO BAOITY COUNCIL
REGULAR MEETING - JUNE 27, 1988
PAGE 9
John Baker, 450 San Jacinto, spoke in favor of placing a gazebo
in City Park; as a member of the Gazebo Committee, he supports
placing the gazebo at the point in the Park.
MOTION: Councilmember Lemons moved for the adoption of Resolu-
tion No. 66-88. The motion was seconded by Councilmem-
ber Sheetz and unanimously carried by roll call vote.
(5-0)
Mr. Napper asked Council if they wished to prepare an argument in
opposition to either of the initiatives; no action was taken.
Councilmember Lemons asked how arguments are chosen if more than
one is submitted; Mr. Napper stated the Elections Code sets forth
the rules for the City Clerk to choose between arguments. He
noted July 7th through July 18th is the date set for receiving
direct arguments on the initiatives, and July 19th through July
28th for receiving rebuttals to arguments.
B-3 POLICY GUIDANCE ON CONCEPTUAL REQUEST BY WILLIAM S. DOHAN TO
TRANSFER WATER EQUIVALENCIES ON BAYSHORE VILLAGE PROJECT;
PHASES II AND III
William Dohan stated his firm is considering purchasing the
Bayshore Village project which is up for foreclosure sale on June
30th. He discussed his willingness to cooperate with the City to
bring the project up-to-date, but wanted assurances from Council
they would be willing to transfer the water equivalencies if he
was the successful bidder on the project.
Hilda Heiftz, 140 Main Street, stated she lives directly across
the street from the project. She requested Council not make a
decision this evening as residents in the area have not had suf-
ficient time to prepare a presentation to Council; there are many
things to discuss and consider, and the water transfer issue is
powerful leverage.
Ann Freeman, 785 Cabrillo Place, requested Council consider the
impact of the project due to its current density, height, and
traffic circulation.
Charles Palmer, stated if he had a water equivalency on his va-
cant lot, Council would not allow him to transfer it to another
person. He did not believe a large project should be treated any
different than the individual; a lot of people will be very, very
angry if these people are treated differently.
Elizabeth Baker, Cabrillo Place, requested Council set a 2-story
limit on the height for this project rather than the 3-story
originally approved, and requested the density be changed. She
commented the bikepath was a hazard because of the eucalyptus
trees planted in the pathway.
MINUTES - MORRO BASITY COUNCIL .
REGULAR MEETING - JUNE 27, 1988
PAGE 10
Mayor Reddell stated the Council is not going to do anything with
the water equivalencies on this project tonight. Ms. Baker
stated the property is up for sale on Thursday; Mayor Reddell
stated Council is not concerned with the sale.
Ray Kaltenbach stated he was on the Council when the project was
finished and is not surprised it did not sell; it is ugly.
Nancy Bast commented on the Council's action several years ago
when the owners of this same property requested and were granted
water equivalency transfer. She said it was a great disservice
then,and do not let it occur again.
Dave Anton, 700 Sierra Court, stated this is an opportunity for
the City to set requirements to finish a project which will meet
the needs of the community.
John Heimel, 3990 Cedar Avenue, objected to transferring water
equivalencies to a large developer when Council will not allow
water equivalencies to be transferred for an individual.
Councilmember Lemons asked about the status of the water equiva-
lencies for this project; Ms. Skousen stated the water equivalen-
cies for this project were awarded prior to adoption of Measure
F; if Council does not transfer the equivalencies, they are not
available to be awarded to anyone else. Mr. Napper stated the
equivalencies were awarded from pipeline water in 1979 and are
non-transferrable except under certain circumstances at Council
discretion; bankruptcy is one of the circumstances available to
any holder of water equivalencies.
Mayor Reddell asked if Council has the right to re -design the
project; Ms. Skousen stated since Council has discretion to
transfer the water equivalencies, they can condition the transfer
within reason.
Joan Mihay, 785 Cabrillo Place, commented on the necessity for
the project to conform with present codes and blend with the
neighborhood.
Ray Kaltenbach stated Mr. Fisher had requested transfer of water
equivalencies for his project, and Council denied his request.
Mr. Napper stated Council determined the map on that project had
expired due to inability to obtain a required easement, not
bankruptcy; water equivalency transfer was denied for a similar
but different project submitted later.
Councilmember Sheetz asked if Mr. Dohan would be willing to re-
duce the current density and height of the project; Mr. Dohan re-
sponded he did not believe it would be economically feasible.
MINUTES - MORRO BA0ITY COUNCIL •
REGULAR MEETING - JUNE 27, 1988
PAGE 11
Mr. Dohan stated he recognizes the problems articulated by the
public's comment and wants to work on them. The foreclosure sale
of this property is Thursday, June 30th; if the Federal Govern-
ment is unable to sell at that time, it will go on the open mar-
ket at an increased price of $1 million. He said he is not ask-
ing for a transfer of water equivalencies at this time, but seek-
ing if Council would be agreeable to a transfer based upon him
becoming an owner of the property and entering into a development
agreement which satisfies the issues raised.
Mayor Reddell stated Mr. Dohan has the same chance as anyone else
to purchase the property under the conditions set by the Federal
Government; he did not believe Council can make assurances to Mr.
Dohan at this point since he has no interest in the property, and
did not see how an agreement could be reached in the 3 days be-
fore the property is offered for sale.
Ms. Mihay stated Mr. Dohan is willing to work with the City, but
then states he cannot change the density or height of the pro-
ject; what cooperation is this?
Nelson Sullivan stated this project is back where it was when
Council previously transferred water equivalencies; if Council
allows the transfer, the citizens will start a referendum to re-
verse Council's action.
Peter Diffley said the City should not be involved in assisting a
public bidder in a bankruptcy proceeding; there may be others who
will be bidding on this project and would like the same assur-
ances if they had known such was available.
Councilmember Sheetz stated this is an inappropriate item for the
agenda; the applicant has no vested interest in the site. Coun-
cilmember Lemons responded Mr. Dohan is only asking for a concep-
tual agreement that if he satisfies conditions the City might im-
pose, would the Council be willing to transfer the water equiva-
lencies. Councilmember Lemons is concerned with the future of
the site if no one purchases or finishes the development.
There was further discussion; Ms. Skousen cautioned Council
against making assurances to Mr. Dohan unless those assurances
extend to everyone bidding on the project. Council indicated
they would like to see something done about the current situa-
tion, but were not prepared to take action unless someone with
title to the property submits an official proposal.
B-4 PUBLIC HEARING ON INTERIM USE PERMIT 20-88/CDP 64-88R; MINOR
IMPROVEMENT TO EXISTING FACILITIES AT LILA KEISER PARK
(SCOREBOOTH)
Mr. Wolter stated this item was deferred by Council at their last
meeting to receive additional information. The cost for the
MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING - JUNE 27, 1988
PAGE 12
scorebooth is $2,850; $2,908,80 has been accumulated from sign
advertising at Keiser Park and these funds will be used to fi-
nance the project. He said the booth is used to separate the
scorekeeper from the spectators and players at a game and also
elevates them so they are better able to see the plays.
Mayor Reddell opened the hearing to the public for comments;
there were no comments and the hearing was closed.
Mayor Reddell asked if the $2, 908 will cover the total cost of
the project; Mr. Wolter stated there will be extra materials
costs installed by City forces which should amount to no more
than $1,100.
MOTION: Councilmember Lemons moved for the adoption of Resolu-
tion No. 60-88. The motion was seconded by Councilmem-
ber Odell and unanimously carried. (5-0)
Council recessed from 8:25 p.m. to 8:41 p.m.
IM
Councilmembers Donnelly, Lemons and Mayor Reddell stepped down
from consideration of this item due to possible conflicts of in-
terest. Councilmember Sheetz assumed the Chair.
Mr. Napper stated the last time this item was considered by Coun-
cil, Councilmember Lemons had been chosen at random by the Rule
of Necessity to form a quorum of Council to conduct business.
Councilmember Lemons resumed his seat and stated his conflict in-
volved having received more than $250 in income during the last
year as part of his construction engineering business.
Mr. Napper stated Council approved, at their last meeting, a Res-
olution increasing water availability fees for the purpose of
partially funding a San Bernardo Creek Dam Feasibility Study.
This resulted in an $825 increase. Several residential contrac-
tors or owner/builders are appealing Council's action that the
increase is unfair and should not apply to them.
Councilmember Sheetz asked if Council consideration of this mat-
ter had been properly noticed; Mr. Napper responded it had.
Mark Dees, 2650 Maple, stated he represents Brian Lawrence who is
building a house in Morro Bay. He objected to the vague notice
in the paper which did not adequately notify people interested in
this subject that Council was considering it. He believed the
rules are being changed in the middle of the stream, and Council
should make the increased fees effective January 1, 1989. He
said it amounted to "blackmail", and the City should have sent
0
MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING - JUNE 27, 1988
PAGE 13
letters to every water lottery applicant advising each of a pos-
sible increase.
Rafael Martin, 1350 Clarabelle, stated he has complied with all
City rules and regulations in order to obtain his permit; he did
not believe it is fair to attach this added charge to an already
expensive process.
Clyde Ganes, 1000 Little Morro Creek Road, encouraged Council to
rescind their action.
Nelson Sullivan stated the people who should be complaining are
those who have been hooked up to water for years and are having
to pay increased water rates so the City can continue to build.
He questioned a conflict of interest issue on seeking new water.
Ms. Skousen explained those people in the construction industry
may participate in decision to seek new water sources because it
does not affect them any more than the general public. It is
only when Council is deciding how many building permits to award
or what to do with the water after it is located that the con-
struction industry may be financially advantaged. Mr. Sullivan
disagreed, stating if the City obtains new water, the construc-
tion industry will certainly prosper from that.
Council asked specifics concerning when fees are paid; Mr. Farrel
responded at the time building permits are issued. Councilmember
Odell stated the reason Council approved the increase in the
availability fees is new construction creates new demands on the
City's water system. Councilmember Sheetz explained the neces-
sity for having the study done at this time or possibly lose per-
mits for a San Bernardo Creek Dam.
Mr. Dees encouraged Council to exempt those currently in the pro-
cess. He emphasized the lack of notice and stated the people in-
volved should have been notified individually.
MOTION: Councilmember Odell moved for denial of the appeals.
The motion was seconded by Councilmember Sheetz and
carried on the following roll call vote:
AYES: Lemons, Odell, Sheetz
NOES: None
ABSTAIN: Donnelly, Reddell
Mayor Reddell resumed his seat.
• 6
MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING - JUNE 27, 1988
PAGE 14
C. UNFINISHED BUSINESS
C-1 RESOLUTION NO. 68-88 ADOPTING CUP 39-86 FOR MORRO BAY MARINA
WATERFRONT PROJECT
Mr. Napper stated Council upheld the appeal by Morro Bay Marina
on their water front project at their last meeting. The Resolu-
tion formalizes that action and the imposed conditions.
Councilmember Lemons asked if the sidewalks in Condition 9 will
be of exposed aggregate; Mr. Farrel stated they will conform to
City standards which is the exposed aggregate type of sidewalk.
Councilmember Lemons suggested the word "show" in Condition 15c
be deleted; and add to Condition 17, "... nor exceed minimum
width necessary to house elevator".
Councilmember Lemons expressed concerns with Condition 25 requir-
ing the marine research facility and the ability of the applicant
to comply. Ms. Skousen stated any additions to Conditions should
be made at this time. Councilmember Lemons suggested adding lan-
guage that a marine research facility be owned and operated by an
accredited university or universities. Councilmembers Sheetz and
Donnelly remarked it was not a good idea to restrict our options
at this stage; since the City would control the search for a
qualified marine research tenant, the City can place emphasis on
that criteria.
MOTION: Councilmember Lemons moved for the adoption of Resolu-
tion No. 66-88 as amended to Conditions No. 17. The
motion was carried with Councilmembers Odell and Sheetz
voting no. (3-2)
Councilmember Odell stated he is voting "no" because of the in-
creased height set in the Conditions; Councilmember Sheetz stated
she is voting "no" because of the height and the parking proposal
is not acceptable.
C-2 AWARD OF CONTRACT FOR PROJECT NO. PW 87-09, POLICE STATION
Mr. Nichols stated this project has been advertised 3 times; the
latest and only bid is $59,775.50. This amount is only for the
communications area remodel which had an earlier estimated bid of
$35,000. The bidder, Complete Development Services, Inc., also
made a condition on the bid reserving the right to negotiate with
subcontractors. It is Mr. Nichols opinion the bid was "front
loaded" to express dissatisfaction with the City's need to repet-
itively bid this project. He recommended Council declare the bid
non -responsive, and instruct staff to negotiate a contract for
the base bid work.
0
MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING - JUNE 27, 1988
PAGE 15
In response to Council questions, Mr. Nichols stated staff would
initially negotiate with the bidder on this project; if unsuc-
cessful, staff can negotiate with other contractors, or broker
the work ourselves.
MOTION: Councilmember Lemons moved Council declare the bid as
being non -responsive, and authorize the Public Works
Director to negotiate a contract for the base bid work
with the bidder or have the City act as general con-
tractor of the base bid, at the Public Works Director's
discretion. The motion was seconded by Councilmember
Donnelly and unanimously carried. (5-0)
Councilmember Odell stated he would like Item D-2 pulled until he
requests it be rescheduled; he is working with a committee on
this item and will bring it back for Council consideration.
MOTION: Councilmember Odell moved Item D-2 be tabled until he
requests it rescheduled on the agenda. The motion was
seconded by Councilmember Sheetz and unanimously
carried. (5-0)
D. NEW BUSINES
D-1
Mr. Napper stated pursuant to a settlement agreement with the
City, the Hittle's are requesting Council approve assignment of
their Lease Site 62/62W to Robert J. OBrien. If escrow on this
assignment is not closed by September 30, 1988, the lease reverts
to the City.
Mr. Napper advised he received a call today from Mr. OBrien stat-
ing he is withdrawing from this matter and no longer wishes as-
signment of the lease. However, since the request came from the
Hittle's and they are under a deadline to assign the lease, he
recommends Council adopt the Resolution; the Resolution contains
sufficient language to protect the City if the assignment is not
consummated.
MOTION: Councilmember Sheetz moved for the adoption of Resolu-
tion No. 62-88. The motion was seconded by Councilmem-
ber Donnelly and unanimously carried. (5-0)
D-2 CONSIDERATION OF ESTABLISHING COUNCIL/PLANNING COMMISSION
Previously tabled at the request of Councilmember Odell.
MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING - JUNE 27, 1988
PAGE 16
E. CLOSED SESSION
Mayor Reddell announced Council is adjourning to Closed Session
to discuss 1) real property negotiations, San Luis Coastal Uni-
fied School District, Napa Street property in accordance with
Government Code Section 54956.8; 2) pending litigation in the
matter of City of Morro Bay vs: Hittle in accordance with Govern-
ment Code Section 54956.9(a); and 3) labor relations in accor-
dance with Government Code Section 54957.6(a).
MOTION: Councilmember Lemons moved the meeting adjourned to
Closed Session. The motion was seconded by Councilmem-
ber Sheetz and unanimously carried. (5-0)
The meeting adjourned to Closed Session at 9:47 p.m. and returned
to regular session at 10:59 p.m.
MOTION: Councilmember Sheetz moved the meeting be adjourned.
The motion was seconded by Councilmember Donnelly and
unanimously carried. (5-0)
The meeting adjourned at 10:59 p.m.
Recorded by:
��
ARDITH DAVIS
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
which we all enjoy. We are committed to this purpose and will provide a level of municipal
service consistent and responsive to our public and its needs.
ADJOURNED REGULAR MEETING - JUNE 15, 1988
CITY HALL CONFERENCE ROOM - 5:30 P.M.
595 HARBOR ST., MORRO BAY, CA
E. CLOSED SESSION
E-1 GOVERNMENT CODE SECTION 54956.9(A), PENDING LITIGATION
A. WOGA, ET AL V. SONOMA COUNTY, ET AL
B. KEYOTO-NATALIE V. CITY OF MORRO BAY
C. CITY OF MORRO BAY V. HITTLE
F.
TO WEDNESDAY, JUNE 15, 1988 AT 7 PM IN THE CAYUCOS SANITARY DISTRICT
OFFICE '(FIRE STATION) FOR A JOINT MEETING WITH THE CAYUCOS SANITARY
DISTRICT BOARD OF DIRECTORS
0
MINUTES - MORRO BAY CITY COUNCIL
ADJOURNED REGULAR MEETING - JUNE 15, 1988
CITY HALL CONFERENCE ROOM - 5:30 P.M.
Mayor Reddell called the meeting to order at 5:35 p.m.
PRESENT: Dale Reddell
Paul Donnelly
John Lemons
Jeff Odell
Rose Marie Sheetz
ABSENT: None
STAFF: Gary Napper
Judy Skousen
Bill Farrel
E. CLOSED SESSION
Mayor
Councilmember
Councilmember
Councilmember
Councilmember
City Administrator
City Attorney
Comm. Development Dir.
E-1 GOVERNMENT CODE SECTION 54956.9(A), PENDING LITIGATION
A. WOGA, ET AL V. SONOMA COUNTY, ET AL
B. KEYOTO-NATALIE V. CITY OF MORRO BAY
C. CITY OF MORRO BAY V. HITTLE
Mayor Reddell announced the Closed Session items as cited above.
MOTION: Councilmember Sheetz moved the meeting adjourn to
Closed Session. The motion was seconded by Councilmem-
ber Donnelly and unanimously carried. (5-0)
The meeting adjourned to Closed Session at 5:35 p.m. and returned
to regular session at 6:30 p.m.
MOTION: Councilmember Odell moved the meeting adjourn to the
Cayucos Sanitary District Office in Cayucos at 7:00
p.m. for a joint meeting with the Cayucos Sanitary Dis-
trict Board of Directors. The motion was seconded by
Councilmember Sheetz and unanimously carried. (5-0)
The meeting adjourned at 6:30 p.m.
0 •
MINUTES - JOINT POWERS COMMITTEE
PLACE - CAYUCOS SANITARY DISTRICT OFFICE
DATE - JUNE 15, 1988 - 7:00 P.M.
PRESENT
CITY OF MORRO BAY
Dale Reddell
Paul Donnelly
John Lemons
Jeff Odell
Rose Marie Sheetz
Gary Napper
Nick Nichols
Louise Burt
Darrell Richards
CAYUCOS SANITARY DISTRICT
Guido Minetti
Henry Piaskowski
Robert Lyon
Ethel Girard
Mac McClung
ABSENT
Tom Jackson
Norbert Murray
VISITOR
Sun -Bulletin representative.
I. PUBLIC COMMENT PERIOD
No public comments.
1. MINUTES - January 13, 1988
Mayor
Mayor Pro Tem
Council.Member
Council Member
Council Member
City Administrator
Public Works Director
Finance Director
Treatment Plant Super.
President
V. President
Board Member
Secretary
Maintenance Super.
Board Member
Board Member
Board Member Lyon pointed out that the spelling of McClung's name
was not correct. Each time it was spelled McClelland. The spelling
will be changed. Board member Lyon also requested the word "proper"
be deleted from page 2, paragraph 2.
MOTION: Motion to approve the minutes as corrected by Board Member
Lyon, second by Council Member Odell. Motion carried. (.8-•0)
2. FLOW COMPARISON
Public Works Director Nick Nichols went over his report through
the third quarter and part of the fourth quarter for the fiscal
year 87/88. He said the flows were staying about the same and
for the eleven month period were Morro Bay76.6%, Cayucos 23.4%.
MINUTES JOINT PO16S MEETING 6/15/88 •
PAGE 2 OF 3 PAGES.
Council Member Lemons asked what percentage of the plant capacity
was being used. Nick Nichols answered 64% of the total plant
capacity.
3. FINANCIAL STATEMENTS THROUGH THE THIRD QUARTER 87/88
Finance Director Louise Burt went over the written report. The
report included expenditures of 11 months for the 12 month period.
She reported that most areas are right on budget, however grant
regulations require the purchase of flood insurance for the treat-
ment plant at the cost of approximately $25,000.
In the area of professional services,Mrs. Burt pointed out that
a large percentage of the Brown & Caldwell work will be completed
early in the calendar year, thus charging more of the total than
anticipated to this fiscal year.
Mrs. Burt said she expected the total over run of the budget to
be $22,000: Morro Bay's share $16,000., Cayucos' share $5,500.
4. RWQCB REPORT ON BACTERIAL CONTAMINATION IN MORRO BAY
Nick Nichols reported that the completed RWQCB study was received
in May. The report shows there are still sources of bacterial
contamination inside the bay even after our disinfection of the
effluent. The report lists several sources of on going contamina-
tion in the bay and makes suggestions for correction. Committee
members discussed the.different locations of contamination.
5. POLICY DISCUSSION REGARDING CONTINUED DISINFECTION OF
EFFLUENT
Council Member Lemons said'the cost of disinfection is $45,000.
per year and going up. Nick Nichols reported the ocean samples
and incomming samples are always clean. Mr. Nichols further
explained that to date we have not been allowed to shut down
the chlorination and follow through with further testing. There
is also the possibility that if a request to discontinue the
disinfecting were made, the whole issue of our discharge permit
could be reopened. There was further discussion.
MOTION: Motion by Council Member Sheetz to have the Morro Bay.
City Attorney forward a letter of facts and requesting
there be a reconsideration of chlorination, second by
Council Member Lemons. Motion carried. (8-0)
6. POLICY DISCUSSION REGARDING FULL SECONDARY TREATMENT AND
301 (h) WAIVER
Nick Nichols said at the direction of the Committee he had talked
with Brown & Caldwell.concerning the cost of Secondary Treatment.
Brown & Caldwell said that a short study of approximately two and
a half weeks at a cost of $7,500. would tell us what the cost of
installing secondary treatment facilities at the plant would be.
MINUTES - JOINT P•ERS
PAGE 3 OF 3 PAGES.
MEETING 6/15/88 •
7. OFFSHORE MONITORING SERVICES FOR CALENDAR YEAR 1989
Nick Nichols reported that in 1985 Brown & Caldwell had been
chosen for this service from seven different proposals received.
The Committee has requested the staff receive proposals again
this year. The request for proposals will be sent out and when
time for review a member of the City Council and a member of the
CSD Board will be on the interviewing committee along with staff
members.
MOTION: Motion to authorize the staff to advertise requests for
proposals for offshore monitoring for 1989, second by
Council Member Jeff Odell. Motion carried (8-0)
8. TREATMENT PLANT BUDGET 1988/89
Nick Nichols pointed out that the operating costs had been increased
by 8% over the current year in order to cover the same level of
service. He reported there are no major capital improvment needs
for the new year. Louise Burt had prepared an additional sheet
which showed the proposed cost sharing. With the additional cost
of flood insurance, estimated at $13,000, the total budget was
$199,063.25 - Morro Bay $148,710.25, Cayucos $50,353.
MOTION: Motion by Council Member Sheetz to approve the budget as
ammended, seconded and motion carried. (8-0)
9. CSD INTERCEPTOR ODOR CONTROL
CSD Maintenance Supervisor McClung reported that the District has
engaged an engineer experienced in odor control, James Wegley of
Visalia. At Mr. Wegley's direction McClung will be conducting
tests and taking samples to the county lab for testing. When
the specific cause of the odor is determined Mr. Wegley will
make recomendations to the District for the control of the problem.
Mr. McClung said he hoped to take the tests during the next week.
In order to temporarily control the problem, the District is using
the old line.
MOTION: Council Member Sheetz moved the meeting be adjourned,
seconded and approved at 8:12 P.M.
Recorded by:
Ethel Girard, Secretary
Cayucos Sanitary District
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
which we all enjoy. We are committed to this purpose and will provide a level of municipal
service consistent and responsive to our public and its needs.
REGULAR MEETING - JUNE 13, 1988
VETERANS MEMORIAL HALL - 6:00 P.M.
ROLL CALL
INVOCATION
PLEDGE OF ALLEGIANCE
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 by standing. When recognized by the Mayor, please
come forward to the podium and state your name and address for the record.
Comments should normally be limited to three minutes.
DECLARATION OF FUTURE AGENDA ITEMS
A. CONSENT CALENDAR
Unless an item is pulled for separate action by the City Council, the
following actions are approved without discussion.
A-1 CITY COUNCIL MINUTES OF THE REGULAR MEETING OF MAY 23, 1988, AND THE
ADJOURNED REGULAR MEETING OF MAY 25, 1988
A-2 RESOLUTION NO. 57-88 REJECTING ALL BIDS ON WATERLINE REPLACEMENT
PROJECT NO. PW 87-10
A-3 RESOLUTION NO. 56-88 SUPPORTING LEGISLATIVE REFORM IN THE CALIFORNIA
WORKERS COMPENSATION SYSTEM (SB 323)
A-4 NOTICE OF COMPLETION FOR PROJECT PW 87-12, KERN AVENUE STREET OVERLAY
A-5 ACCEPTANCE OF OFFER OF RIGHT-OF-WAY DEDICATION (PARCEL MAP 87-333,
PORTION OF ISLAND STREET) PULLED
A-6 PROCLAMATION DECLARING THE MONTH OF JUNE 1988 AS "ZOO AND AQUARIUM
MONTH"
A-7 RESOLUTION NO. 61-88 ADOPTING MEMORANDUM OF UNDERSTANDING FOR CITY OF
MORRO BAY MANAGEMENT EMPLOYEES
B. PUBLIC HEARINGS, REPORTS & APPEARANCES
B-1 CONTINUED PUBLIC HEARING ON APPEAL FROM PLANNING COMMISSION DENIAL OF
CUP 39-86 FOR MORRO BAY MARINA WATERFRONT PROJECT (MORRO BAY MARINA,
APPLICANT)
B-2 REPORT AND RECOMMEOPATIONS FROM BLUE RIBBON *MITTEE REGARDING LAND
USE ALTERNATIVES FOR PROPERTIES UNDER INTERIM URGENCY ZONING ORDINANCE
NO. 318
B-3 PRESENTATION OF COUNTY HAZARDOUS WASTE MANAGEMENT DRAFT PLAN
B-4 CONSIDERATION OF LOCAL PROCESS AND ACTIVITIES RELATIVE TO STATE WATER
PROJECT AND LOCAL DISTRIBUTION FACILITIES
B-5 PUBLIC HEARING ON INTERIM USE PERMIT 12-88/CDP 63-88R; MINOR
IMPROVEMENTS TO EXISTING FACILITIES AT MORRO DUNES RV TRAILER PARK
B-6 PUBLIC HEARING ON INTERIM USE PERMIT 20-88/CDP 64-88R; MINOR
IMPROVEMENT TO EXISTING FACILITIES AT LILA KEISER PARK
B-7 PUBLIC HEARING AND RESOLUTION ESTABLISHING NEW WATER RATES AND WATER
AVAILABILITY FEES TO FUND SAN BERNARDO CREEK DAM FEASIBILITY STUDY
C. UNFINISHED BUSINESS
C-1 RESOLUTION NO. 58-88 ESTABLISHING INTERIM DOWNTOWN DEVELOPMENT AND
PARKING INCENTIVE DISTRICT
C-2 CABLE TV AND FRANCHISE BOARD RECOMMENDATION TO OPPOSE AB 2802 (CABLE
TV POSSESSORY INTEREST TAX EXEMPTION)
D. NEW BUSINESS
D-1 RECOMMENDATIONS OF STREET ADVISORY COMMITTEE CONCERNING STREET
MAINTENANCE PROJECTS
D-2 CONSIDERATION OF ESTABLISHING COUNCIL/PLANNING COMMISSION SUB-
COMMITTEE TO DEVELOP HANDBOOK FOR BUILDING PERMIT APPLICANTS
E. CLOSED SESSION
E-1 GOVERNMENT CODE SECTION 54956.9(A), PENDING LITIGATION
A. WOGA, ET AL V. SONOMA COUNTY, ET AL
B. KEYOTO-NATALIE V. CITY OF MORRO BAY
C. CITY OF MORRO BAY V. HITTLE
F. ADJOURNMENT
TO WEDNESDAY, JUNE 15, 1988 AT 7 PM IN THE CAYUCOS SANITARY DISTRICT
OFFICE (FIRE STATION) FOR A JOINT MEETING WITH THE CAYUCOS SANITARY
DISTRICT BOARD OF DIRECTORS
COPIES OF STAFF REPORTS OR OTHER PUBLIC DOCUMENTATION
RELATING TO EACH ITEM OF BUSINESS REFERRED TO ON THIS
AGENDA ARE ON FILE IN THE OFFICE OF THE CITY CLERK AND
AVAILABLE FOR PUBLIC INSPECTION AND REPRODUCTION AT COST.
-2-
•
MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING - JUNE 13, 1988
VETERANS MEMORIAL HALL - 6:00 P.M.
Mayor Reddell called the meeting to order at 6:00 p.m.
ROLL CALL
PRESENT:
Dale Reddell
Paul Donnelly
John Lemons
Jeff Odell
Rose Marie Sheetz
ABSENT:
None
STAFF:
Gary Napper
Judy Skousen
Louise Burt
Bill Farrel
Forrest Henderson
Nick Nichols
Elane Novak
Horace Strong
gave the invocation,
Allegiance.
PUBLIC COMMENT
Mayor
Councilmember
Councilmember
Councilmember
Councilmember
City Administrator
City Attorney
Finance Director
Community Develop. Dir.
Asst. to City Admin.
Public Works Dir.
Deputy City Clerk
and led the Pledge of
1. Lillian Collier, Ironwood Avenue, asked when the paving
would be done on Ironwood; Nick Nichols said they anticipate
paving Ironwood Street late July or early August of this year.
2. Ray Kaltenbach stated he complained some weeks ago
about the derelict boats in the harbor, and he is now glad to see
they are gone. He stated someone was sandblasting a boat in the
harbor and wondered if it was legal to do so; it just adds to the
pollution problem.
3. Peter Diffley referred to a recent letter from the Fair
Political Practices Commission he wanted to make part of the pub-
lic record. He stated that after reading the letter he under-
stood why Councilmembers Donnelly, Lemons and Mayor Reddell must
abstain on water issues. He said their abstention cripples the
operation of the City Council.
DECLARATION OF FUTURE AGENDA ITEMS
1. Councilmember Sheetz asked staff to prepare an ordi-
nance making it mandatory for all new construction )to install
which Poses a nroblem to fire-
fighting,,such as hillsides*
*Amended 6-27-88 minutes.
0
MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING - JUNE 13, 1988
PAGE 2
sprinkler She asked this
ordinance be prepared for an August City Council meeting.
A. CONSENT CALENDAR
A-1 CITY COUNCIL MINUTES OF THE REGULAR MEETING OF MAY 23, 1988,
AND THE ADJOURNED REGULAR MEETING OF MAY 25, 1988
Mr. Napper recommended Council approve the minutes as submitted.
A-2 RESOLUTION NO. 57-88 REJECTING ALL BIDS ON WATERLINE RE-
PLACEMENT PROJECT NO. PW 87-10
Mr. Napper recommended Council adopt Resolution No. 57-88.
A-3 RESOLUTION NO. 56-88 SUPPORTING LEGISLAT
Mr. Napper recommended Council adopt Resolution No. 56-88.
A-4 NOTICE OF COMPLETION FOR PROJECT PW 87-12, KERN AVENUE
STREET OVERLAY
Mr. Napper recommended Council accept Project No. PW 87-12 as
complete, authorize the City Clerk to sign and record the Notice
of Completion, and instruct staff to refund Mr. Axelson's unused
monies ($7,820.59) with sincere appreciation.
A-5
No action; item pulled from Agenda.
A-6 PROCLAMATION DECLARING THE MONTH OF JUNE 1988 AS "ZOO AND
AQUARIUM MONTH'
Mr. Napper recommended Council authorize the Mayor to sign the
Proclamation.
A-7 RESOLUTION NO. 61-88 ADOPTING MEMORANDUM OF UNDERSTANDING
FOR CITY OF MORRO BAY MANAGEMENT EMPLOYEES
Mr. Napper recommended Council adopt Resolution No. 61-88.
Councilmember Donnelly requested Item A-2 be pulled for a roll
call vote.
MOTION: Councilmember Sheetz moved for the approval of the Con-
sent Calendar with the exception of A-2. The motion
was seconded by Councilmember Lemons and unanimously
carried. (5-0)
*Amended 6-27-88 minutes
Fi
MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING - JUNE 13, 1988
PAGE 3
A-2
ALL BIDS ON WATERLINE RE-
MOTION: Councilmember Sheetz moved Council adopt Resolution No.
57-88. The motion was seconded by Councilmember Lemons
and carried on the following roll call vote:
AYES: Lemons, Reddell, Sheetz
NOES: Donnelly, Odell
B. PUBLIC HEARINGS, REPORTS & APPEARANCES
B-1 CONTINUED PUBLIC HEARING ON APPEK
DENIAL OF CUP 39-86 FOR MORRO BAY
Mr. Farrel reviewed Council's principle concerns about this pro-
ject from previous meetings; at the last meeting Council was in-
structed to work with the applicant regarding a height limitation
formula.
Mr. Farrel noted a proposal by the applicant outlining 3 solu-
tions to the parking problem: 1) pay the City $3,500 per re-
quired space ($374,500), the City could use these funds to pro-
vide parking; 2) use the lot across the street on an interim ba-
sis for 18 spaces, and improve several City -owned parcels on
Front Street and Coleman Park areas; and 3) make parking improve-
ments to Tidelands and Coleman Parks, and establish a vehicular
shuttle services along the Embarcadero from the parking areas.
Staff recommended Council accept the offer for in -lieu fees but
set them at $5, 000 per space, and require the applicant to de-
velop the vacant lot across the street for no less than 5 years
in order to satisfy the requirement for some off-street parking.
With regard to the height limitation, all buildings are now pro-
posed to be lowered in the ground 18 inches, and the roof has
been redesigned to a 2 in 12 pitch to flatten the roof line.
This reduces the maximum height to 26 feet, except for the clock
tower; the applicant requests retention of this feature at 29
feet for aesthetics.
Mayor Reddell opened the matter to the public for comments.
Bruce Risley, President of the Civic Action League, said CAL ob-
jects to the height and the parking proposals on this project.
He pointed out the Planning Commission unanimously voted to re-
ject the project. The design does not meet the height code which
is 17 feet for buildings on the west side of the Embarcadero;
projects on public lands should be protected for everyone. Park-
ing must be solved before the project goes forward.
MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING - JUNE 13, 1988
PAGE 4
Mr. Risley read a paragraph from a letter from a concerned citi-
zen and a Los Osos resident recently published in the newspaper
regarding this project. Mr. Risley stated CAL believes the Plan-
ning Commission had taken the correct action and they would like
to see the project returned to the Planning Commission.
Dave Anton, 700 Sierra Court, spoke in favor of the project sit-
ing the appealing design and economic benefits to the City. He
said the City has no obligation to provide off-street parking for
the project, and the applicant should solve this problem. He en-
couraged Council to approve the CUP and allow the project to go
forward.
Sil Cadenasso, President of the Morro Bay Chamber of Commerce,
spoke in favor of the project stating it will provide jobs, draw
more tourists to the area, and bring in more bed and sales tax.
Phil Persons opposed the project height and was not in favor of
the shuttle service proposed by the developer. He said if the
project is being redesigned, it should go back to the Planning
Commission before Council approval.
Ray Kaltenbach said tourism only helps restaurants and motels,
not permanent residents. He objected to parking being sold for
$5,000 a spot and believed the design of the building should meet
the Code height limitation.
Charles Palmer said there are strict parking limitations in Tide-
lands Park and suggested the City Attorney should check this out
before allowing the applicant to improve this area for his
development.
Jane Bailey said variances should be given for emergencies not
because of project design. She said there are lots of important
reasons for variances, but this project is not one of them.
Peter Diffley opposed the project and agreed with the Planning
Commission decision to deny the CUP. He said the idea of paying
for in -lieu parking spots sounds like a bribe. He stated the
project does not fit the character of the town or meet the crite-
ria of the Tidelands Grant Trust.
Bob Morrison, Driftwood Street, stated the parking problem could
be resolved with money, but if the building site exceeds the
height limit it cannot be changed once it is built; it should not
exceed 17 feet.
Vickie McCay, 453 Arcadia, cited some bad projects around town
that exceed the height limit. She said the parking problem
should be addressed and resolved before the project goes forward;
she believed this project would set a bad height precedent.
MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING - JUNE 13, 1988
PAGE 5
Al Paul was in favor of the project if it stays within the height
limitations. He also said the actual cost for a parking space
was about $11,000 rather than the $5,000 cited by City staff.
Nancy Bast, 450 Bayview, said the height limit is a major problem
and would create problems along the Embarcadero. She pointed out
the leaseholder knew the height limitations when he secured the
lease sites. She stated the in -lieu parking fees should not be
placed in the General Fund.
Chris Thompson, Manager of the Morro Bay Chamber of Commerce,
urged support of this quality project; the community needs to
work together and compromise on some issues for the benefit of
all.
Katherine Walling asked how the City Council could ignore the
height limitation; she said Council would not let a private citi-
zen build without complying with City Ordinances.
Mayor Reddell questioned the Council's latitude with regard to
the height limitation; Mr. Farrel stated the PD overlay on the
waterfront allows the height to be exceeded for architectural de-
sign and coastal access benefits.
Councilmember Sheetz questioned different lease sites' lease
obligations. Mr. Napper said responsibilities differ with the
type of lease; some are Pipkin leases, some are County leases,
and others are City Master leases. He indicated this applicant
will accept revetment responsibilities as part of the basis for
approval of this project, contrary to some of the applicant's
lease terms.
Ms. Skousen said the current leases will need amending, and it
could be refined so all conditions of the lease sites are met.
Councilmember Donnelly expressed concern regarding the Tidelands
Park parking. Councilmember Odell said the parking in Tidelands
Park is adequate for park uses and said if parking at this site
is used for other uses, the City might find itself in litigation.
Mr. Napper commented in -lieu parking fees do not go into the Gen-
eral Fund, but are kept in a separate fund until needed for park-
ing purposes only.
Councilmember Donnelly indicated he would be in favor of Alterna-
tive 2 (a), (b), and (c); and Alternative 3(c) from Mr. Rogoway's
parking proposals.
Councilmember Odell was in favor of the project for the economic
benefits to the City; but he believed the project should not ex-
ceed 25 feet, and 20% of the project be devoted to coastal-depen-
MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING - JUNE 13, 1988
PAGE 6
dent uses. He noted a good effort has been made on the parking
solution.
Councilmember Sheetz stated there is no public benefit to the
clock tower and the project should stay within the 17 foot height
limit. Councilmembers Sheetz and Lemons were in favor of the in -
lieu parking and the flexibility it provided to the City.
Mayor Reddell would like to see the parking lot paved rather than
red -rocked, but did not want the paving to come out of the in -
lieu fees.
Councilmember Odell indicated that he and the applicants had dis-
cussed the possibility of having a marine lab and education fa-
cility in the building as a coastal -dependent use.
Council discussed the amount of space dedicated for coastal de-
pendent uses. The costs were explored and it was suggested the
City could discount some of the lease rental charges as they
might be excessive for this type of subsidized operation.
MOTION: Councilmember Odell moved Council approve CUP 39-86
with parking as suggested in Alternative 2(a), (b), and
(c) and Alternative 3(c) of Mr. Rogoway's letter; 2,800
sq. ft. of the project to house a marine lab/ educa-
tional facility and have a discounted rate to subsidize
the use; and 20% of the roof be below 17 ft. with noth-
ing above 25 ft.
The motion died for lack of a second.
There was further discussion regarding the parking alternatives
proposed in Mr. Rogoway's letter; Councilmember Lemons preferred
a mix of Alternative 1 in -lieu fees with Alternative 2(a), (b),
and (c). Mayor Reddell preferred Alternative 2(a).
MOTION: Councilmember Lemons moved Council accept Parking Al-
ternative 1 and 2(a) equal to the total in -lieu fees
proposed by staff ($5,000/space); the City be the re-
sponsible agent to negotiate a marine lab use at 10% of
the total floor space of the project; and the height
limit agreed -upon as submitted by the applicant in At-
tachment C. The motion was seconded by Councilmember
Donnelly.
Mr. Napper expressed concerned with Parking Alternative 2(a) as
written; the 4-year use period should not commence until the ap-
plicant is issued an occupancy permit for the project.
Councilmember Lemons amended his motion to include the
4-year requirement for use of the parking area across
the street from the project not commence until the oc-
MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING - JUNE 13, 1988
PAGE 7
cupancy permit is issued for the project [Alternate
2(a)1. The amendment was accepted by Councilmember
Donnelly.
Mayor Reddell said redrock for the parking lot was not accept-
able; paving should be required.
Councilmember Lemons amended his motion to include the
applicant provide in -lieu fees of $4,000 per space plus
the vacant lot across the street be paved for parking
for 4 years from occupancy. The amendment was accepted
by Councilmember Donnelly; the amended motion carried
on the following roll call vote:
AYES: Donnelly, Lemons, Reddell
NOES: Odell, Sheetz
Council recessed from 8:17 p.m. to 8:35 p.m.
B-2 REPORT AND RECOMMENDATIONS FROM BLUE RIBBON COMMITTEE RE-
GARDING LAND USE ALTERNATIVES FOR PROPERTIES UNDER INTERIM
URGENCY ZONING ORDINANCE NO. 318
Mr. Farrel stated the Committee has prepared the report submitted
to Council; staff suggests Council receive the report and forward
to the Planning Commission for their consideration.
Chuck Clarke, Chairman of the Blue Ribbon Committee, stated the
Committee's recommendations met Council objectives and the Com-
mittee's search for the highest and best use of the area empha-
sizing Coastal Act priorities: preserve the coastal -dependent in-
dustry and visitor serving character of Morro Bay; ensure the
protection and upgrading of the Environmentally Sensitive Habi-
tat; and conserve traditional pubic view to the ocean and dunes
across Planning Area 2 from Highway 1. The Committee concurs
with staff recommendations.
Mayor Reddell thanked the Committee and Mr. Clarke for their
work. He opened the matter to the public for comments.
William Walter, Attorney representing owners of the Cloisters
property, had a "minority report" which he wanted to make part of
the public record. He distributed the report to Council.
MOTION: Councilmember Lemons moved the report be received and
forwarded to the Planning Commission along with the
"Minority Report". The motion was seconded by Coun-
cilmember Odell and unanimously carried. (5-0)
Councilmember Sheetz asked how long before this item would be
back before City Council; Mr. Farrel stated most likely in July
after two public hearings before the Planning Commission.
0 •
MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING - JUNE 13, 1988
PAGE 8
Councilmember Odell added his thanks to the Committee for their
work.
B-3 PRESENTATION OF COUNTY HAZARDOUS WASTE MANAGEMENT DRAFT PLAN
Mr. Nichols stated the County Solid Waste Management Plan has
been presented to the City for review and comment by June 30,
1988. The Refuse Collection Franchise Board has reviewed the
documents and recommends Council accept the Preliminary Draft as
submitted.
Mr. Nichols introduced Bob Holden and Barbara Hinkle of the
County Environmental Health Department who gave a slide presenta-
tion and answered questions about waste management. Mr. Holden
indicated they planned to have the hazardous waste management
plan implemented by 1990 and have not yet selected a site for the
waste transfer station. Mr. Holden responded to a question re-
garding who were the largest generators of toxic waste by saying
that Diablo Canyon, PG&E, the County/Cities, and electronic in-
dustry in San Luis Obispo and Paso Robles were among the largest
contributors.
Katherine Walling asked about the emissions from the P.G.&E.
smokestacks. Mr. Holden explained this is regulated by the Air
Pollution Control District and is not part of the waste manage-
ment program. Mr. Napper said the City does receive a quarterly
report from the County indicating levels of air pollution.
Mayor Reddell asked how P.G.&E. removes hazardous wastes from the
City; Mr. Holder stated they use licensed haulers. Mr. Holden
also indicated the County is examining the idea of Household Haz-
ardous Materials "Round -Up" Days to collect these wastes. *
MOTION: Councilmember Lemons moved staff advise the County
Morro Bay has no additional comments on the Plan, and
the City looks forward to working with the County. The
motion was seconded by Councilmember Sheetz and unani-
mously carried (5-0).
B-4 CONSIDERATION OF LOCAL PROCESS AND ACTIVITIES RELATIVE TO
STATE WATER PROJECT AND LOCAL DISTRIBUTION FACILITIES
Mr. Nichols stated the State Department of Water Resources is in
the process of preparing an EIR for the Coastal Branch of the
California Aqueduct. The City has previously indicated its de-
sire to obtain 1,313 acre feet of water per year from the Pro-
ject. The San Luis Obispo County Flood Control and Water Conser-
vation District (FCWCD) is establishing timetables for local -de-
livery and has asked if the City will hold an election prior to
contracting for construction and funding of local facilities.
Council has the authority to enter into a contract without elec-
*Amended 6-27-88 to add "Councilmember Odell asked if P.G.&E:'s
permit for treatment of hazardous wastes applied exclusively to
those wastes generated on -site. Mr. Holden responded that their
permit was limited to treatment of on -site waste only."
• 0
MINUTES - MORRO BAY CITY COUNCIL
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PAGE 9
torate approval, but the question remains whether to hold an ad-
visory election. He noted a previous election in 1978 in which
Morro Bay voters approved an advisory measure to import 25,000
acre feet of water from the State Water Project.
Mr. Nichols explained a "spur" pipeline which would be used to
bring the water to Morro Bay from the Coastal Branch. Staff rec-
ommends Council indicate to the County its willingness to partic-
ipate at a staff level in developing the local spur pipeline, and
the FCWCD act as the lead agency for the project.
Councilmember Sheetz asked why the spur line rather than working
with the Whale Rock Commission to exchange water? Clint Milne,
County Engineering Department, said it has not yet been decided
but if the State Water Plan is implemented, it would be more eco-
nomical for coastal communities to exchange water. Both options
are open: the spur line and Whale Rock water exchange with the
City of San Luis Obispo.
Mayor Reddell opened the matter to the public for comment.
Peter Diffley questioned what area the 200 miles of pipe line
covered; the reliability of State water; and water quality.
Charles Palmer said the State Board believes the entire project
is over -subscribed; before we obtain State water we should imple-
ment the Coastal Stream Diversion Project which is less costly.
Mr. Milne said the •line runs 185 miles from the City of Tracy to
Kettleman City where the main aqueduct is located. He also ex-
plained in drought years, agricultural people will not get their
water entitlement. This determination was made at the time con-
tracts were entered into as it was determined agricultural users
could survive better than other users. He discussed insecticides
and their effect on the water; also asbestos which is used in
pipes and its effect on the water and other organics that must be
monitored.
Charles Palmer questioned whether or not we would need a storage
facility if we accepted the State water. He said water delivered
to Morro Bay would be at the convenience of the County. Mr.
Milne stated 1,313 acre feet could be used as first priority wa-
ter, and the City would then "peak" off local ground -water sup-
ply. He doesn't believe a surface reservoir is needed as storage
tanks could hold the water.
MOTION: Councilmember Sheetz moved no local election process is
necessary to execute a contract for the Coastal Branch
of the State water Project, and requested the County of
San Luis Obispo designate their Flood Control and Water
Conservation District to be lead agency for coordina-
tion of local facilities construction. The motion was
41
MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING - JUNE 13, 1988
PAGE 10
seconded by Councilmember
carried. (5-0)
Lemons and unanimously
Mr. Farrel reviewed the request by Morro Dune RV Trailer Park to
effect several minor modifications to their RV park campground;
reconstruct and realign the entrance/exist design, remove the ex-
isting mini -mart and incorporate the store into an enlarged of-
fice structure, and provide electricity and cable tv outlets at
their existing "dry" camp area located on P.G.&E. property. The
campground is in the area covered by a current interim urgency
zoning ordinance which temporarily prohibits new construction.
The ordinance does, however, allow interim use permits to be
granted for minor changes to existing structures and facilities.
Mr. Farrel indicated the Planning Commission has reviewed and ap-
proved the request from Morro Dunes; he recommended Council adopt
Resolution No. 59-88.
Mayor Reddell opened the matter to the public for comments.
Katherine Walling asked when the Morro Dunes lease expires, and
how much these improvements would cost the people at the park.
Staff advised the lease will expire in 1997, and the park is for
recreational vehicles not permanent residents so the improvements
would not effect anyone in that way.
MOTION: Councilmember Sheetz moved for adoption of Resolution
No. 59-88. The motion was seconded by Councilmember
Donnelly and unanimously carried (5-0).
B-6 PUBLIC HEARING ON INTERIM USE PERMIT 20-88/CDP 64-88R; MINOR
Mr. Farrel stated the Recreation and Parks Department initiated a
permit process to construct a small scorebooth for the west
sportsfield at Lila Keiser Park. He stated this property is also
in the area of the City's interim urgency zoning ordinance pro-
hibiting new construction except for minor changes to existing
facilities. The scorebooth is a minor change and can be removed
should the interim recreational use of the park ever expire or
terminate. The Planning Commission has reviewed and approved the
application.
Mayor Reddell how much the project will cost; Mr. Farrel indi-
cated he did not know the cost. Mr. Wolter, Recreation and Parks
Director who would be able to answer any questions on this pro-
ject, is out of town. After a brief discussion it was determined
to continue the item until certain questions can be answered.
MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING - JUNE 13, 1988
PAGE 11
MOTION: Councilmember Odell moved the item be tabled to the
next meeting. The motion was seconded by Councilmember
Lemons and unanimously carried (5-0).
B-7 PUBLIC HEARIN,
AND WATER AVA
MOTION: Councilmember Donnelly moved to separate the resolu-
tions and review them one at a time. Mayor Reddell
seconded the motion and it failed with Councilmember
Lemons, Sheetz and Mayor Reddell voting no. (2-3)
Councilmember Lemons stated he would rather step down for a con-
flict of interest and let others decide the entire issue.
Mayor Reddell and Councilmember Lemons stepped down from consid-
eration on this item due to a conflict of interest; Councilmember
Sheetz assumed the Chair. Councilmember Donnelly stepped down
from consideration because of a possible conflict of interest,
and stated he refuses to participate in the name -drawing process.
Council recessed from 10:35 p.m. to 10:41 p.m.
Councilmember Sheetz requested a new name be drawn; Deputy City
Clerk Elane Novak drew Councilmember Lemons' name to form the
necessary quorum to conduct City business. Councilmember Lemons
resumed his seat, and Ms. Skousen outlined the procedure for the
Rule of Necessity. Councilmember Lemons stated his Conflict of
Interest involved having done engineering work for contractors in
the last year valued at more than $250.
Ms. Burt stated Council authorized staff at their last meeting to
proceed with the EIR and Feasibility Studies for the San Bernardo
Creek Project. The estimated cost of the project is $300,000 and
will be funded $100,000 from New water Production Reserve,
$100,000 loan of General Fund money to the Water Operating Funds,
and $100,000 loan of General Fund money to the Water Capital
Fund. The $200,000 in loans will be repaid in annual principal
and interest payments of $15,000 from each Fund computed at 88
over 10 years.
She reviewed the Resolutions increasing various charges for Coun-
cil consideration: (1) Resolution No. 53-88 increases water
availability charges 30% to raise $15,000; (2) Resolution No.
54-88 formalizes the monthly sewer billing procedures; and (3)
Resolution No. 55-88 increases the water user fee 1.7% to raise
an additional $15,000 for FY 88-89. The average residential bill
will increase by $.16 per month.
There was a brief discussion in which Ms. Burt responded to ques-
tions from Council regarding formulas used to compute the water
a
MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING - JUNE 13, 1988
PAGE 12
availability fees necessary to finance the feasibility study and
EIR.
Councilmember Sheetz opened the matter to the public for
comments.
Ray Kaltenbach expressed the hope Council will approve the staff
recommendation.
John Maino urged Council to delay decision to fund the EIR on
this item until after a decision is reached on the Coastal Stream
Phase I and II. He believed it a better project for Morro Bay
economics and from a Fish and Game standpoint, and the dam is
really a regional project.
Charlie Palmer stated there may be a need for another reservoir
for the Coastal Stream project; we should not depend on Whale
Rock Commission to help achieve this project.
Councilmember Odell asked if the feasibility study and EIR are
conducted concurrently. Mr. Nichols said the feasibility study
would be prepared first and, depending upon those findings, there
may or may not be a need for an EIR. Councilmember Sheetz re-
quested staff build -in protection for Council to escape from a
contract before the EIR is done. She stated the fee structures
as presented were acceptable.
MOTION: Councilmember Odell moved Council adopt Resolutions No.
53-88, 54-88 and 55-88. The motion was seconded by
Councilmember Sheetz and carried on the following roll
call vote:
AYES: Odell, Lemons and Sheetz
NOES: None
ABSTAIN: Donnelly, Reddell
Councilmember Sheetz requested the City Attorney correspond with
the Fair Political Practices Commission regarding a Councilmem-
ber's refusal to participate in the Rule of Necessity
Councilmember Odell requested Item D-2 be pulled from the agenda;
Council concurred.
C. UNFINISHED BUSINESS
C-1 RESOLUTION NO. 58-88 ESTABLISHING INTERIM DOWNTOWN DEVELOP-
MENT AND PARKING INCENTIVE DISTRICT
Mr. Farrel reviewed the Resolution which assists the downtown
area in its efforts to revitalize and enhance by conditionally
and temporarily waiving parking standards for a 2-year period.
0
MINUTES - MORRO BAY CITY COUNCIL
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PAGE 13
MOTION: Councilmember Sheetz moved for the adoption of Resolu-
tion No. 58-88. The motion was seconded by Councilmem-
ber Donnelly and unanimously carried. (5-0)
Dave Tope stated Council action is very commendable and thanked
Council for their help. Len Carpenter stated he is in favor of
the incentive program, but fears the City will get some shoddy
construction. He suggested a volunteer architectural review com-
mittee be appointed.
C-2 CABLE TV AND FRANCHISE BOARD
Forrest Henderson reviewed the Resolution opposing the enactment
of AB 2802. He stated the Cable TV Board has reviewed the up-
dates to this Bill and recommends opposition. Mr. Henderson
noted the ramifications of the Bill on the cable television in-
dustry to minimize the financial impact of a court decision that
the cable television franchises are subject to possessory inter-
est taxes. The League of California Cities opposes the Bill not-
ing its precedent -setting nature for other tax -paying entities to
request the same treatment. He recommended Council adopt Resolu-
tion No. 30-88.
Councilmember Lemons questioned what the City will lose or gain
by the passage of AB 2802. He was concerned the cable tv compa-
nies will pass -on their increased costs directly to subscribers.
Mr. Napper and Mr. Henderson explained the possessory interest
taxes were worked out using the two different formulas; however,
it really is not the amount of monies involved, but rather the
precedent which might stir other tax -paying entities to seek sim-
ilar offsets or credits in property taxes.
MOTION: Councilmember Sheetz moved for the adoption of Resolu-
tion 30-88. The motion was seconded by Councilmember
Odell and unanimously carried. (5-0)
D. NEW BUSINESS
D-1 RECOMMENDATIONS OF -STREET ADVISORY COMMITTEE CONCERNING
STREET MAINTENANCE PROJECTS
Mr. Nichols reviewed the Street Advisory Committee's recommenda-
tions for the City's in-house overlay program. Earlier this year
Council approved recommendations from the Committee to chip seal
Anchor, Marina, and Monterey, and overlaying of Kern Avenue and
Coleman Drive; Kern Avenue was accomplished with funds donated by
Mr. Axelson. There remains approximately $144,000 in the overlay
program budget and Mr. Nichols reviewed the Committee's recommen-
dations for street contract overlays in the amount of $68,900;
$38,200 for in-house overlays; and $33,000 Maintenance Funds
4
MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING - JUNE 13, 1988
PAGE 14
Overlay for Main Street temporary sidewalks. He also reviewed
staff's substitute recommendation to overlay Berwick, Driftwood,
Errol, and Surf, rather than install temporary sidewalks.
City Council briefly discussed whether or not to implement the
temporary sidewalk idea on Main Street, which other streets to
overlay, and the current competitive economies of letting all
street overlay out for contract as opposed to City workers com-
pleting these tasks.
MOTION: Councilmember Sheetz moved Council approve the street
contract and in-house overlay projects proposed by the
Street Advisory Committee, without the $33,000 from
North Main Street temporary sidewalks; and, that Coun-
cil designate the $33,000 street maintenance monies to
overlay selected streets from the list.
The motion died for lack of a second.
MOTION: Councilmember Donnelly made a motion to accept staff
recommendation with the substitution of Berwick, Drift-
wood, Errol and Surf Streets to be overlayed instead of
temporary sidewalks; and, all streets to be done by
contract. The motion was seconded by Councilmember
Sheetz and unanimously carried. (5-0)
D-2 CONSIDERATION OF ESTABLISHING COUNCIL/PLANNING COMMISSION
AP
This item was continued to a subsequent meeting.
E. CLOSED SESSION
E-1 GOVERNMENT CODE SECTION 54956.9(A), PENDING L
B. KEYOTO-NATALIE V. CITY OF M
C. CITY OF MORRO BAY V. HITTLE
Council agreed these items be continued to Wednesday, June 15,
1988 at 5:30 p.m. in the City Hall Conference Room.
F. ADJOURNMENT
MOTION: Councilmember Lemons moved the meeting adjourn to
Wednesday, June 15, 1988 at 5:30 p.m. in the City Hall
Conference Room to consider Closed Session items; and
from there to 7:00 p.m. in the Cayucos Sanitary Dis-
trict Office for a joint meeting with the Cayucos Sani-
tary District Board of Directors. The motion was sec-
onded by Councilmember Sheetz and unanimously carried.
(5-0)
0 9
MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING - JUNE 13, 1988
PAGE 15
The meeting adjourned at 11:45 p.m.
Recorded by:
/J
ELANE NOVAK
Deputy City Clerk
MORRO BAY CITY COUNCIL
FY 88-89 BUDGET WORKSHOPS
NOTICE IS HEREBY GIVEN that the Morro Bay City Council
will review the FY 88-89 Proposed Budget in the Library
Program Room, 625 Harbor Street, Morro Bay, California. The
schedule of items to be reviewed is as follows:
MONDAY, JUNE 6, 188
8 AM to 12 NOON
WEDNESDAY, JUNE 8, 1988
8 AM to 12 NOON
THURSDAY, JUNE 9, 1988
8 AM to 12 NOON
- Revenue
- Administration
- Finance
- Non -Departmental (includes
Aid to Agencies and
Community Promotions)
- Community Development
- Harbor
- Recreation and Parks
- Police
- Fire
- Engineering and Admin.
- Property Maintenance
- Transit
- Streets
- Water
- Sewer
A copy of the FY 88-89 Proposed Budget is available for
public review in City Hall and the Morro Bay Library.
DATED: June 2, 1988
/LGt�i
ARDITH DAVIS, City Clerk
City of Morro Bay, California
MORRO BAY CITY COUNCIL
FY 88-89 BUDGET WORKSHOPS
NOTICE IS HEREBY GIVEN that the Morro Bay City Council
will review the FY 88-89 Proposed Budget; the schedule of
items to be reviewed is as follows:
WEDNESDAY, JUNE 8, 1988
THURSDAY, JUNE 9, 1988
LIBRARY PROGRAM ROOM
8 AM to 12 NOON
THURSDAY, JUNE 16, 1988
8:30 AM TO 12 NOON
CITY HALL CONFERENCE ROOM
- CANCELLED
- Recreation and Parks
- Police
- Fire
- Engineering and Admin.
- Property Maintenance
- Transit
- Streets
- Water
- Sewer
A copy of the FY 88-89 Proposed Budget is available for
public review in City Hall and the Morro Bay Library.
DATED: June 6, 1988
�7CLC�f �-L�Sg
ARDITH DAVIS, City Clerk
City of Morro Bay, California
MORRO BAY CITY COUNCIL
FY 88-89 BUDGET WORKSHOPS
NOTICE IS HEREBY GIVEN that the Morro Bay City Council
will review the FY 88-89 Proposed Budget; the schedule of
items to be reviewed is as follows:
THURSDAY, JUNE 16, 1988
8:30 AM TO 12 NOON
CITY HALL CONFERENCE ROOM
MONDAY, JUNE 20, 1988
8:30 AM
CITY HALL CONFERENCE ROOM
- Transit
- Streets
- Water
- Sewer
- Recreation and Parks
A copy of the FY 88-89 Proposed Budget is available for
public review in City Hall and the Morro Bay Library.
DATED: June 9, 1988
ARDITH
DAVIS,
City
Clerk
City of
Morro
Bay,
California
MORRO BAY
CITY COUNCIL
AGENDA
ADJOURNED REGULAR MEETING - MAY 25, 1988
VETERANS MEMORIAL HALL - 5:30 P.M.
ROLL CALL
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 by standing. When recognized by the Mayor, please
come forward to the podium and state your name and address for the record.
Comments should normally be limited to three minutes.
C. UNFINISHED BUSINESS
C-3 CONSIDERATION OF FINANCING FOR SAN BERNARDO CREEK DAM FEASIBILITY
STUDY/EIR ($300,000)
C-4 RESOLUTION NO. 42-88 REJECTING BIDS AND STATING FINDINGS OF FACT FOR
THE USE OF DAY LABOR - WATERLINE REPLACEMENT PROJECT NO. PW 87-10
D. NEW BUSINESS
D-1 CONSIDERATION OF ESTABLISHING COUNCIL/PLANNING COMMISSION SUB-
COMMITTEE TO DEVELOP HANDBOOK FOR BUILDING PERMIT APPLICANTS
F. ADJOURNMENT
COPIES OF STAFF REPORTS OR OTHER PUBLIC DOCUMENTATION
RELATING TO EACH ITEM OF BUSINESS REFERRED TO ON THIS
AGENDA ARE ON FILE IN THE OFFICE OF THE CITY CLERK AND
AVAILABLE FOR PUBLIC INSPECTION AND REPRODUCTION AT
COST.
1
MINUTES - MORRO BAY CITY COUNCIL
ADJOURNED REGULAR MEETING - MAY 25, 1988
VETERANS MEMORIAL HALL - 5:30 P.M.
Mayor Reddell called the meeting to order at 5:30 p.m.
ROLL CALL
PRESENT: Dale Reddell
Paul Donnelly
John Lemons
Jeff Odell
Rose Marie Sheetz
ABSENT: None
STAFF: Gary Napper
Judy Skousen
Louise Burt
Bill Farrel
Nick Nichols
Ardith Davis
Mayor Reddell announced Item C-4
ered first. Councilmember Odell
discussed at a future meeting.
PUBLIC COMMENT
Mayor
Councilmember
Councilmember
Councilmember
Councilmember
City Administrator
City Attorney
Finance Director
Community Develop. Dir.
Public Works Dir.
City Clerk
on the agenda would be consid-
requested Item D-1 be pulled and
1. Charles Palmer, 485 Estero, stated he would like to
speak on Items C-3 and C-4 on the agenda. He also discussed the
meeting held 2 years ago with the City of San Luis Obispo regard-
ing the Stream Diversion Project, and stated there seems to be
foot dragging and work to kill the project; he mentioned the con-
sultants recalculation of reduced water figures in an attempt to
make the project less feasible. Mayor Reddell asked who specifi-
cally was trying to kill the project; Mr. Palmer responded he did
not know, but had strong suspicions.
Councilmember Lemons asked who requested the consultant to recal-
culate the figures; Mr. Palmer did not know, but stated the con-
sultant must have been instructed to do so. Councilmember Lemons
asked Mr. Napper, Mr. Nichols, and Dave Norton individually if
they had instructed the consultant to recalculate the figures;
each responded they had not. Mayor Reddell and Councilmember
Lemons commented that Mr. Palmer's insinuations are insulting and
border on libel.
2. Randy Ruff asked to speak on Item C-3 and C-4.
3. Ray Kaltenbach asked to speak on items C-3 and C-4.
MINUTES - MORRO BAIOITY COUNCIL •
ADJOURNED REGULAR MEETING - MAY 25, 1988
PAGE 2
Councilmember Odell requested a Closed Session at the end of the
meeting to discuss personnel matters and potential exposure to
litigation.
4. Bob Dorn, 212 Beach Street, requested permission to
speak on Item C-4.
C. UNFINISHED BUSINESS
C-4 RESOLUTION NO. 42-88 REJECTING BIDS AND STATING FINDINGS OF
Mr. Napper stated this item was continued from May 23rd, and the
staff recommendation has changed. Based on the discovery of the
oversight in the bid specifications, it is submitted the City
should reject all bids and not award the project to City forces,
since the City cannot complete the project in 120 days and the
project specifications do not contain a liquidated damages clause
necessary before the City should award any project to a
contractor.
Mayor Reddell opened the hearing to the public.
W. R. Dildine, Construct Industry Force Account Council, objected
to the change in the staff recommendation without any written ma-
terial to review. He believed the City will now write plans and
specifications more suitable to their own needs, re -bid the pro-
ject and award it to City crews. He stated the City budgeted
$480,000, the low bid is below that amount., and the City should
award the project to the low bidder.
Bob Dorn, Associated General Contractors, referred to a letter
from attorney Lawrence H. Kay representing the Construction In-
dustry Force Account Council and the implication they will file a
motion for a temporary restraining order to keep the City from
performing the work on the project if the City rejects the bids
and awards the project to itself. Rejecting all bids will not
eliminate a lawsuit; the contractors have acted in good -faith.
Nelson Sullivan recommended Council seek adequate legal advice,,as
they have been conducting illegal actions for many months and
running up a legal account that hurts the taxpayer.
Joe Chaves, 715 Evans Road, San Luis Obispo, stated the City has
hired 2 employees to do this project which has cost the City
money; he has members of his Union who are out of work and quali-
fied to do this work instead.
MINUTES - MORRO BA0ITY COUNCIL •
ADJOURNED REGULAR MEETING - MAY 25, 1988
PAGE 3
Ray Kaltenbach, 473 Sicily, encouraged Council to go along with
the staff recommendation. He said the City crews do the work in
an efficient and highly skilled manner.
Randy Ruff commented the City and contractors should bid on the
same project; the City should proceed keeping the public inter-
ests in mind.
Charles Palmer stated replacing waterlines is a major capital job
and should be let for bid; he said the City was cutting up a ma-
jor project and calling it maintenance. There is also other City
water system work that is being set aside to do this in-house
work.
Jean Cartwright, 3200 Beachcomber, commented on the City's con-
servation measures in allowing compaction to settle rather than
using water to expedite the process.
Mayor Reddell closed the hearing to the public.
Councilmember Sheetz mentioned she made a motion at the last
Council meeting to reject the bids and start over; everyone
should be bidding on the same project. Mr. Dorn remarked change
orderscan alter the project specifications.
Mr. Dildine did not believe the construction industry should have
to pay for City mistakes; the City advertised the project and the
contractors bid in good faith according to the specifications.
Ray Kidder, 3200 North Main Street, stated people damage their
tires and cars on the compaction the City lets sit for a year.
Councilmember Donnelly stated he was still in favor of awarding
the bid to the low bidder. Councilmember Sheetz stated the only
other choice is to reject the bids and start over.
Councilmember Lemons said if liquidated damages could be negoti-
ated with the low bidder, he would consider awarding the bid to
him; Ms. Skousen said she did not believe Coastal Earthmovers
would agree to liquidated damages at this point.
MOTION: Councilmember Sheetz moved for approval of the staff
recommendation to reject the bids as being in the best
interests of the City, and to start the process over.
The motion was seconded by Councilmember Lemons.
Bob Dorn stated the representative from Coastal Earthmovers said
the Public Works Department informed him the reason there are no
liquidated damages mentioned in the bid specifications is so. no
bonuses are required for.early completion.
MINUTES - MORRO BA0ITY COUNCIL •
ADJOURNED REGULAR MEETING - MAY 25, 1988
PAGE 4
There was discussion relative to preparing a City estimate to do
the project and including it in the bid specifications so con-
tractors know ahead of time what it will cost the City to perform
the work. Mr. Napper stated an Engineer's estimate is always
prepared in the specifications. He indicated future advertise-
ments could indicate the City intends to prepare an in-house City
cost estimate to perform the work ourselves to determine if we
can do it more economically by City forces.
Bob Dorn asked why the bids were being rejected; Ms. Skousen
stated the only finding necessary is that it is in the best in-
terests of the City, it is all the law requires.
The motion carried, with Councilmembers Donnelly and
Odell voting no. (3-2)
C-3
It was noted this item would be considered in two sections; first
financing, and then direction authorizing the Feasibility Study
and EIR.
Councilmembers Donnelly, Lemons, and Mayor Reddell stepped down
from consideration on the financing portion of this item due to
possible conflicts of interest. Councilmember Sheetz assumed the
Chair. Councilmembers Donnelly, Lemons and Mayor Reddell's names
were placed in a cup to draw from to form a quorum to conduct
business; Councilmember Donnelly's name was picked, and he re-
turned to his seat.
Louise Burt reviewed her recommendation for financing the San
Bernardo Creek Dam Feasibility Study and EIR. Rather than fi-
nancing through Certificates of Participation as she had previ-
ously suggested, she recommended the City finance through inter-
nal borrowing since issuance costs would be avoided. Ms. Burt
stated the loan could be structured at 88 over 10 years with an-
nual payment of $44,709.
In order to repay the City funds, she proposed several options
using increased water rates and/or water availability fees.
Councilmember Sheetz opened the matter for public comments.
Ray Kaltenbach, Randy Ruff, and Nelson Sullivan supported the
staff recommendation. Mr. Sullivan stated the San Bernardo Creek
Dam Project is a necessary component to the Coastal Stream Diver-
sion Project. Charles Palmer said if the water and sewer fees
were based on equitable use, sufficient money could be raised for
this study.
Councilmember Sheetz closed the hearing to the public.
MINUTES - MORRO BA*ITY COUNCIL •
ADJOURNED REGULAR MEETING - MAY 25, 1988
PAGE 5
Councilmember Sheetz asked what water projects are pending that
will require financing in the near future. Mr. Nichols stated
several projects are proceeding, but there is no schedule for
funding. Council has allocated money to a water reserve account
to be available for these projects when the need arises. Ms.
Burt stated there is an additional $200,000 budgeted in the pro-
posed FY 88-89 Budget for the New Water Production Reserve
Account.
Councilmember Sheetz suggested Council finance a portion of the
Feasibility Study/EIR from this water fund; this way a smaller
portion could be charged to the water users. She was not in fa-
vor of raising water rates any more than necessary.
Mr. Nichols reviewed the constraints placed on the City by the
State Water Resources Control Board and the August 1989 deadline
on the permits. Mr. Napper believed that deadline would be ex-
tended if the City showed good -faith in proceeding on the pro-
ject. Mr. Napper noted in order to pay back financing with water
availability fees, the methodology assumes there will be water
allocations in future years.
Councilmember Sheetz suggested staff could return with options in
case the City has to curtail the building allocation program.
MOTION: Councilmember Sheetz moved staff return with a program
to finance the Feasibility Study/EIR with a loan from
the General Fund to the Water Fund with a 10-year pay-
back at 8% interest for the $200,000; and $100,000 be
taken from water fund reserves. The motion was sec-
onded by Councilmember Odell and carried. (3-0)
Mr. Napper stated the second part of this item concerns authoriz-
ing staff to negotiate with a - consultant for the Feasibility
Study/EIR. Ms. Skousen stated no one has a conflict of interest
on this issue.
Councilmember Lemons and Mayor Reddell resumed their seats.
MOTION: Councilmember Sheetz moved staff be authorized to com-
mence negotiations for a Feasibility Study/EIR. The
motion was seconded by Councilmember Donnelly.
Councilmember Lemons requested the contract for the Feasibility
Study allow for cancellation in the event the State will not ex-
tend the permit deadlines; he was concerned the City would have
to pay the entire $300,000 even if the project could not proceed
by losing the permits. Mr. Napper stated that would be included
in the contract.
MINUTES - MORRO BA I ITY COUNCIL •
ADJOURNED REGULAR M ETING - MAY 25, 1988
PAGE 6
The motion was unanimously carried by roll call vote.
(5-0)
D. NEW BUSINESS
D-1 CONSIDERATION OF ESTABLISHING COUNCIL/PLANNING COMMISSIOr
SUB -COMMITTEE TO DEVELOP HANDBOOK FOR BUILDING PERMIT
APPLICANTS
Councilmember Odell suggested this subject be deferred to a fu-
ture meeting; the Council concurred.
E. CLOSED SESSION
MOTION: Councilmember Odell moved the meeting adjourn to Closed
Session. The motion was seconded by Councilmember
Sheetz and carried, with Councilmember Lemons voting
no. (4-1)
Mayor Reddell announced Council is adjourning to Closed Session
in accordance with Government Code Section 54956.9(b)(1), signif-
icant exposure to litigation; and Section 54957, personnel
matters.
The meeting adjourned to Closed Session at 7:05 p.m. and returned
to regular session at 7:44 p.m.
F. ADJOURNMENT
MOTION: Councilmember Sheetz moved the meeting be adjourned.
The motion was seconded by Councilmember Odell and
unanimously carried. (5-0)
The meeting adjourned at 7:44 p.m.
Recorded by:
ARDITH DAVIS
City Clerk
MORRO BAY
CITY COUNCIL
AGENDA
REGULAR MEETING - MAY 23, 1988
VETERANS MEMORIAL HALL - 6:00 P.M.
ROLL CALL
INVOCATION
PLEDGE OF ALLEGIANCE
PRESENTATIONS
1. DONATIONS OF $350 TO MORRO BAY RECREATION DEPARTMENT PARTNERS PROGRAM,
AND $250 TO MORRO BAY COMMUNITY CENTER BY SCENIC COAST BOARD OF
REALTORS
2. DONATION OF TELEVISION TO CITY OF MORRO BAY BY MORRO BAY FIREFIGHTERS
ASSOCIATION
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 by standing. When recognized by the Mayor, please
come forward to the podium and state your name and address for the record.
Comments should normally be limited to three minutes.
DECLARATION OF FUTURE AGENDA ITEMS
A.
CONSENT CALENDAR
Unless
an item is pulled for separate action by the City Council,
the fol-
lowing
actions are approved without discussion.
A-1
CITY COUNCIL MINUTES OF THE REGULAR MEETING OF MAY 9, 1988
AND THE
ADJOURNED REGULAR MEETING OF MAY 16, 1988
A-2
EXPENDITURE REPORT - APRIL 1988
A-3
STATEMENT OF INVESTMENTS - APRIL 1988
A-4
PROCLAMATION DECLARING JUNE 5-11, 1988 AS "SAFE BOATING WEEK"
A-5
SET DATE FOR PUBLIC HEARING ON REQUEST TO ABANDON CITY ROAD
EASEMENT
(DEN-DULK PROPERTY)
A-6
RESOLUTION NO. 50-88 GRANTING AN APPEAL AND MODIFYING THE
PLANNING
COMMISSION'S CONDITIONS OF APPROVAL FOR A VARIANCE TO ALLOW
TANDEM
PARKING (CASE NO. VAR 02-88; SKAFF, APPELLANT)
1
A-7 RESOLUTION NO.*52-88 APPROVING CONSENT TO SUBLEASE AGREEMENT ON A
PORTION OF LEASE SITE 71, AND ADDITION OF RETAIL CLOTHING STORE AS A
PERMITTED USE (MORRO BAY MARINA, INC.)
B. PUBLIC HEARINGS, REPORTS & APPEARANCES
B-1 PUBLIC HEARING ON APPEAL FROM PLANNING COMMISSION'S DENIAL OF CUP NO.
39-86; AND CONTINUED PUBLIC HEARING ON FINAL ENVIRONMENTAL IMPACT
REPORT FOR MORRO BAY MARINA WATERFRONT PROJECT (MORRO BAY MARINA,
APPLICANT)
B-2 PUBLIC HEARING ON RESOLUTION NO. 49-88 APPROVING APPLICATION FOR LAND
AND WATER CONSERVATION GRANT FUNDS (TIDELANDS PARK PROJECT)
B-3 PUBLIC HEARINGS ON PROPOSED FEDERAL REVENUE SHARING INTEREST ALLOCA-
TIONS AND FY 88-89 RECOMMENDED CITY BUDGET
B-4 ORDINANCE NO. 325 CREATING A MASTER FEE SCHEDULE; AND RESOLUTION NO.
48-88 ADOPTING THE 1988-89 MASTER FEE SCHEDULE
B-5 GAZEBO COMMITTEE RECOMMENDATION FOR SITING OF MORRO BAY BEAUTIFUL
GAZEBO IN MORRO BAY "CITY" PARK
B-6 PUBLIC HEARING TO CONSIDER PLACING ON THE NOVEMBER 1988 BALLOT A CITY
MEASURE TO PROVIDE FOR SELECTION OF MAYOR BY COUNCILMEMBERS, AND
ELIMINATE ELECTION OF MAYOR BY DIRECT VOTE OF THE PEOPLE
B-7 ORDINANCE NO. 326 AMENDING THE MORRO BAY MUNICIPAL CODE CHAPTER 2.06
REQUIRING CANDIDATES FOR MAYOR TO RESIGN FROM CERTAIN OFFICES
B-8 REQUEST BY PROPONENTS FOR CITY COUNCIL PLACEMENT OF PROSPECTIVE
INITIATIVE PETITION ON THE NOVEMBER 1988 BALLOT (INITIATIVE MEASURE TO
REFORM CITY WATER MANAGEMENT AND ALLOCATION REGULATIONS)
B-9 PUBLIC HEARING ON RESOLUTION NO. 51-88 FOR LOCAL COASTAL PLAN AMEND-
MENT AND CORRESPONDING CHANGE OF ZONE FOR CERTAIN DESCRIBED PROPER-
TIES; CASE NO. LCP/GPA/ZOA 01-87 (MERZON, APPLICANT)
C. UNFINISHED BUSINESS
C-1 HARBOR ENTRANCE PROJECT COST -SHARING AGREEMENT WITH U.S. ARMY CORPS OF
ENGINEERS AND LETTER OF INTENT TO PROCEED
C-2 POLICY DIRECTION CONCERNING 2-YEAR WAIVER OF PARKING REQUIREMENTS IN
DOWNTOWN AREA
C-3 CONSIDERATION OF FINANCING FOR SAN BERNARDO CREEK DAM FEASIBILITY
STUDY/EIR ($300,000)
C-4 RESOLUTION NO. 42-88 REJECTING BIDS AND STATING FINDINGS OF FACT FOR
THE USE OF DAY LABOR - WATERLINE REPLACEMENT PROJECT NO. PW 87-10
PA
D. NEW BUSINESS
D-1 CONSIDERATION OF ESTABLISHING COUNCIL/PLANNING COMMISSION SUB-
COMMITTEE TO DEVELOP HANDBOOK FOR BUILDING PERMIT APPLICANTS
E. CLOSED SESSION
NONE
F. ADJOURNMENT
COPIES OF STAFF REPORTS OR OTHER PUBLIC DOCUMENTATION
RELATING TO EACH ITEM OF BUSINESS REFERRED TO ON THIS
AGENDA ARE ON FILE IN THE OFFICE OF THE CITY CLERK AND
AVAILABLE FOR PUBLIC INSPECTION AND REPRODUCTION AT
COST.
3
•
MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING - MAY 23, 1988
VETERANS MEMORIAL HALL - 6:00 P.M.
Mayor Reddell called the meeting to order at 6:00 p.m.
ROLL CALL
PRESENT: Dale Reddell
Paul Donnelly
John Lemons
Jeff Odell
Rose Marie Sheetz
ABSENT: None
STAFF: Gary Napper
Judy Skousen
Louise Burt
Alan Davis
Bill Farrel
Nick Nichols
Steve Wolter
Ardith Davis
Mayor
Councilmember
Councilmember
Councilmember
Councilmember
City Administrator
City Attorney
Finance Director
Harbor Director
Community Develop. Dir.
Public Works Dir.
Recreation & Parks Dir.
City Clerk
Bob Illman of the Coastal Presbyterian Church gave the invoca-
tion, and Horace Strong led the Pledge of Allegiance.
PRESENTATIONS
Mayor Reddell accepted two checks from a representative of the
Scenic Coast Board of Realtors; one in the amount of $350 for the
Recreation Department PARTNERS Program, and another in the amount
of $250 for the Community Center.
2. DONATION OF TELEVISION TO CITY OF MORRO BAY BY MORRO BAY
FIREFIGHTERS ASSOCIATION �^
Stan Thomas, President of the Morro Bay Fire Fighters Associa-
tion, presented a color television to the City as a gift from the
Association. He stated it is intended to be used in fire preven-
tion activities.
PUBLIC COMMENT
1. W. R. Dildine of the Construction Industry Force Ac-
count Council asked if he and 3 other individuals could speak on
MINUTES - MORRO BA*ITY COUNCIL •
REGULAR MEETING - MAY 23, 1988
PAGE 2
Item C-4; Mayor Reddell stated they would be given the opportu-
nity to speak when that item comes up on the agenda.
2. Ray Kaltenbach, 473 Sicily, was appalled to see the
derelict boats tied up at the T Pier; he said one boat is being
used as a dog kennel. He also stated the City spent $9,000 for
an inspection of lease code violations, and nothing has been
done about compliance.
3. Charles Palmer, 485 Estero, referred to comments he
made at the previous Council meeting regarding the Coastal Stream
Diversion Project and his belief the City Council, City staff,
and Whale Rock Commission staff are dragging their feet on get-
ting the project off the ground. He attributed some comments to
Councilmember Lemons which made him wonder if someone was trying
to discredit the Stream Diversion Program. He said the consul-
tant is recalculating the stream flows, and he questioned who or-
dered him to do that. Mr. Palmer reminded Council he had previ-
ously offered to do some work on the City's water and sewer rates
to make them more equitable, but the Council has not taken his
offer; all he would need is a computer and consumption
information.
Mayor Reddell stated the Council hires the City Administrator and
City Attorney only; he should contact the City Administrator for
any available personnel openings.
4. Bea Rohan, 2501 Elm, discussed the amount of growth un-
der consideration in Morro Bay. She suggested the City look at
the overall picture and proceed with planned growth as opposed to
chaotic growth; she encouraged more Blue Ribbon Committees be
formed for this purpose.
5. Imogene Haidet, 2861 Juniper, in commemoration of Older
Americans Month, noted several Morro Bay seniors were presented
with awards at a ceremony held May 14th in San Luis Obispo.
Dorothy Birkhead was one of 3 named Senior Citizen of the Year
for her Long -Term Care Ombudsman Program. KBAI Radio received an
award for broadcasting information concerning senior issues and
the ACES of Morro Bay were the largest fund-raising group in the
recent Heritage Walk for Health
Councilmember Lemons noted Jim Rodgers is quite ill and in the
hospital.
6. Charles Palmer stated the City confiscated private
property several years ago from property owners who previously
paid for water and sewer bonds, but are not now entitled to water
and sewer hook-ups. He said the City Administrator remarked
those individuals lost their rights when the City incorporated,
MINUTES - MORRO BA0ITY COUNCIL •
REGULAR MEETING - MAY 23, 1988
PAGE 3
and the City Attorney remarked the City's position was indefensi-
ble. Both Mr. Napper and Ms. Skousen denied making such
statements.
DECLARATION OF FUTURE AGENDA ITEMS
1. Councilmember Donnelly requested the screen staff uses
for displaying overhead projections be moved as he is unable to
see it in its present position.
2. Councilmember Lemons requested Item C-3 regarding fi-
nancing the San Bernardo Creek Dam Feasibility Study/EIR be sepa-
rated into two items: 1) C-3a to be consideration of the Feasi-
bility Study and EIR; and 2) C-3b, how to fund those items.
MOTION: Councilmember Lemons moved Item C-3 be separated into
two items for consideration, C-3a and C-3b. The motion
was seconded by Councilmember Donnelly and unanimously
carried. (5-0)
A. CONSENT CALENDAR
A-1 CITY COUNCIL MINUTES OF THE REGULAR MEETING OF MAY 9, 1988
Mr. Napper recommended Council approve the minutes as submitted.
A-2 EXPENDITURE REPORT - APRIL 1988
Mr. Napper recommended Council approval the Expenditure Report as
submitted.
A-3 STATEMENT OF INVESTMENTS - APRIL 1988
Mr. Napper recommended Council accept the Report for file.
A-4 PROCLAMATION DECLARING JUNE 5-11, 1988 AS "SAFE BOATING
WEEK
Tr -
Mr. Napper recommended Council authorize the Mayor to sign the
Proclamation.
A-5 SET DATE FOR PUBLIC HEARING ON REQUEST TO ABANDON CITY ROAD
IMU5111QI
Mr. Napper recommended Council set March 27, 1989 as the date to
consider the Morro Development Company's request for City aban-
donment of a road easement.
MINUTES - MORRO BAOITY COUNCIL •
REGULAR MEETING - MAY 23, 1988
PAGE 4
A-6 RESOLUTION NO. 50-88 GRANTING AN APPEAL AND MODIFYING THE
PLANNING COMMISSION'S CONDITIONS OF APPROVAL FOR A VARIANCE
Mr. Napper recommended Council adopt Resolution No. 50-88.
A-7
Mr. Napper recommended Council adopt Resolution No. 52-88.
Councilmember Odell asked for separate consideration of Item A-7.
Councilmember Sheetz requested Items A-1 and A-6 be pulled; she
was not present at the last Council meeting and wished to abstain
from voting on these items.
Councilmember Odell stated in meeting with representatives from
the State Lands Commission recently, they emphasized the need to
eliminate private uses of Tidelands property. He requested the
Resolution approving a sublease and lease use change in Lease
Site 71-72W be amended to include deletion of "living quarters
for lessee" from the Master Lease. Stan Trapp, the Lessee and
present at the meeting, agreed to the revision. Mr. Napper
stated the Resolution in Item A-7 would be amended to strike the
residential use from the Master Lease.
MOTION: Councilmember Odell moved for approval of the Consent
Calendar including the amended Resolution in Item A-7,
with the exception of Items A-1 and A-6. The motion
was seconded by Councilmember Lemons and unanimously
carried. (5-0)
MOTION: Councilmember Odell moved for the approval of Items A-1
and A-6. The motion was seconded by Councilmember
Lemons and carried, with Councilmember Sheetz
abstaining. (4-0-1)
B. PUBLIC HEARINGS, REPORTS & APPEARANCES
B-1 PUBLIC HEARING ON APPEAL FROM PLANNING COMMISSION'S DENIAL
OF CUP NO. 39-86: AND CONTINUED PUBLIC HEARING ON FINAL
Mr. Farrel summarized the hearings to date on this project; he
noted the meeting this evening is to continue the hearing on the
EIR and consider the appeal from the Planning Commission's denial
of the project's Conditional Use Permit. He noted the parking
problems associated with a project of this magnitude and recom-
mended Council grant concept plan approval to include a provision
MINUTES - MORRO BA0ITY COUNCIL •
REGULAR MEETING - MAY 23, 1988
PAGE 5
the applicant remains responsible for meeting City's current
parking requirements. Parking modifications the City adopts in
the near future by the Circulation Element may be applicable to
this project.
Mr. Farrel noted the changes the architect has made in the design
to mitigate the height impacts of the project, and stated some
additional design work needs to be accomplished. He also dis-
cussed coastal dependent land uses for this project and suggested
the applicant be required to devote 20% of the total floor area
of the project to coastal dependent or related uses.
He also recommended amending Special Conditions #16 and 22 to
state "prior to precise plan approval", rather than "prior to fi-
nal occupancy approval".
Mayor Reddell opened the matter to the public for comments.
Stan Trapp, applicant, stated he generally agrees with the staff
recommendations, but would like the opportunity to negotiate some
of the special conditions.
Sil Candenesso, President of the Morro Bay Chamber of Commerce,
said the Chamber strongly endorses the project and believes it
will be an attractive addition to the Embarcadero. He believed
the project would appeal to tourists, provide employment for City
residents, and increase the City's tax revenue.
Bruce Risley, President of the Civic Action League, stated his
organization had discussed this project and authorized him to ad-
dress Council with their comments. He commented on the Planning
Commission's lengthy review of the project and their unanimous
decision to reject the project. He said the project is inconsis-
tent with the policies and objectives of the Morro Bay General
Plan and Land Use Plan because the increased height limit is not
justified; it is detrimental to persons working in the area, and
to property and improvements in the neighborhood. He said the
parking issue is unresolved and did not agree with the appli-
cant's proposal to use on -street parking; he believed residents
in these areas should be notified before this is considered. He
recommended Council uphold the Planning Commission's decision.
Al Hall, Whale's Tail on the Embarcadero, believed this project
would upgrade the Embarcadero and encouraged Council to approve
it; he noted the increased public access on the waterside, and
said waterfront business income has flattened over the last 10
years.
June Hofstead, 690 Elena, was concerned about the lack of
progress on parking problems and allowing a project to go forward
without a solution; she also encouraged Council to maintain the
17 foot height limit on the Embarcadero.
MINUTES - MORRO BA)fITY COUNCIL •
REGULAR MEETING - MAY 23, 1988
PAGE 6
Doris Murray, 236 Surf Street, commented on the applicant's park-
ing proposal and the increased traffic that would be generated in
residential areas. She believed the City should not absorb the
parking.
Victoria McCay, 453 Arcadia, said the planned structure is ap-
pealing, but the height at 28 feet is not; she said Morro Bay
needs a plan for parking before the project is approved.
Terry Adams, 335 Shasta and a downtown merchant, stated the City
will receive quality control by having one developer do this pro-
ject, not 7 different non -conforming buildings. She believed the
Waterman project to be a good one.
Chris Thompson, Chamber of Commerce Manager, stated the project
will enhance the economic development of the community. He said
retail sales in Morro Bay has stagnated, the only increase has
been in the area of bed tax revenues. There is a lack of new
business investment in Morro Bay.
Dean Tyler, 595 Embarcadero and representing the Waterfront
Leaseholders Association, stated the Association supports this
project believing it will be beneficial to both the City and peo-
ple of Morro Bay.
Charles Palmer, 485 Estero, was concerned with the project's need
for parking and additional height. He suggested a groundfloor
parking lot.
Katherine Walling, 440 Piney Way, objected to the City providing
parking to a private developer, and the height of the structure.
Ray Kaltenbach, 473 Sicily, did not see how this project will
benefit the people living here, it will only benefit the
developer.
Gene Singer, 699 Embarcadero, stated the project benefits those
who work here; he said those against the project are not em-
ployed, but retired.
Scotty Campbell, 2705 Hemlock, was totally opposed to the pro-
ject, the height limit alone should stop it. He said no greater
public good comes from this project, and it cannot retain the
unique character of the town.
Charles Palmer suggested lowering the structure into the ground
for parking.
John Baker, 450 San Jacinto, agreed with the Chamber of Commerce
comments on the project. He said the argument the homeowners are
paying taxes for streets the applicants wants to use for parking
MINUTES - MORRO BA0ITY COUNCIL •
REGULAR MEETING - MAY 23, 1988
PAGE 7
is not true; property tax amounts to $750,000 annually to the
City, while sales tax revenues (business) contributes approxi-
mately $1.5 million.
Jim Hartzell believed it is a very fine project, and the Embar-
cadero needs improved buildings. He believes, however, the de-
veloper should provide additional off-street parking. The idea of
mortgaging all the City's on -street parking for this project will
be bad for the future parking of Morro Bay.
Council recessed from 7:33 p.m. to 7:48 p.m.
Stan Trapp stated he appreciates the concerns of the residents;
they are concerns of his as well. He reiterated his request to
negotiate some of the conditions with staff, and requested Coun-
cil approve the EIR and concept approval of the Conditional Use
Permit, with allowance to negotiate Conditions 12, 13, 14, 16,
17, and 25.
Mayor Reddell closed the hearing to the public.
Councilmember Odell commented on the public's response to this
project with height and parking on the con side, and growth and
income on the pro side. He believes there is a level of accept-
ability to the project if the people's concerns can be taken care
of. He would like to see parking provided as close to the pro-
ject as possible, and suggested the applicant use his vacant lot
across the street from the project at least on an interim basis.
He would also like to see the height somewhere near 17 feet and
no more than 25 feet. He asked if more of the structure could be
3 feet into the ground. Mr. Maul, architect for the project, ex-
plained the problems with flooding if more of the project is
placed into the ground. He also stated there are State law re-
strictions regarding the grade on handicapped ramps which could
not be accommodated if the entire structure was placed 3 feet be-
low ground level.
Councilmember Donnelly asked about the height of the clock tower;
Mr. Maul stated it is 30 feet high and houses the elevator
system.
Councilmember Odell commented on the 20% floor space to be de-
voted to coastal dependent uses and favored a research of educa-
tion facility.
Councilmember Sheetz stated she liked the concept, but had defi-
nite problems with parking and the height of the structure. She
believed Council would be setting a precedent if the height limit
was exceeded, and she was not in favor of the applicant's plan
for parking or height. She suggested approving the EIR, but
holding -up the CUP and send the project back to the drawing board
as not being in character with Morro Bay.
MINUTES - MORRO BA0ITY COUNCIL •
REGULAR MEETING - MAY 23, 1988
PAGE 8
Councilmember Lemons questioned the effect of Council's approval
of the CUP. Mr. Farrel stated it would enable the applicant to
make application to the Coastal Commission for a Coastal Develop-
ment Permit. He noted the Conditions set forth in the Resolution
requires the applicant to provide off-street parking in accor-
dance with City's current requirements.
Councilmember Lemons asked what happens if no one makes applica-
tion for the required 20% coastal dependent floor space; Mr.
Farrel stated language would need to be drafted to address those
possibilities. Councilmember Lemons asked if an analysis had
ever been conducted on the number of feet of waterfront available
between Beach Street and Target Rock which is required to be used
for coastal dependent uses. Mr. Farrel estimated 1/3 public
recreation, 1/3 commercial fishing, and 1/3 commercial area. Mr.
Farrel said no analysis had been conducted.
Councilmember Odell asked the applicant's position on the vacant
lot across the street from the project. Mr. Trapp stated the lot
has no direct connection with Morro Bay Marina. He did investi-
gate the possible use of the area for a parking lot on an in-
terim, unimproved bases, and he was told it is a possibility.
Councilmember Donnelly believed the vacant lot should be utilized
on a permanent basis for parking. He stated the project is good
but he did not believe the height should exceed 25 feet. He did
not favor the applicant's plan for on -street parking; the City
should reserve that parking for future City-wide parking prob-
lems, and encourage off-street parking.
Mr. Napper stated current City ordinances require the applicant
to provide any off -site parking within 300 feet from the project.
Ordinances will have to be amended if the applicant is accommo-
dated another way. He stated the burden should be on the appli-
cant to provide for project parking needs; staff can work with
the applicant but should not be required to solve the problem for
him.
Mayor Reddell stated the City should see this project is done
right instead of creating a problem similar to the Bandstand pro-
ject where the City was required to give many concessions. He
said motels should encourage their guests to park in the motel
parking lots and walk to the Embarcadero. He remarked he has no
problem on the height limits, and the staff report is good and
Council should accept it.
Jim Maul addressed Council's height concerns and stated there
should be some kind of formula worked out so that if a developer
gives additional setbacks, view corridors, and angle cutting on
corners, he would be allowed to exceed height limitations. This
allows for architectural variety with trade-offs.
MINUTES - MORRO BA0ITY COUNCIL •
REGULAR MEETING - MAY 23, 1988
PAGE 9
MOTION: Councilmember Lemons moved Council certify the EIR as
adequate. The motion was seconded by Councilmember
Donnelly and unanimously carried by roll call vote.
(5-0)
MOTION: Councilmember Lemons moved Council given conceptual ap-
proval to the CUP as recommended by staff including the
amendments to Conditions No. 16 and 22 as suggested by
staff.
The motion died for lack of a second.
MOTION: Councilmember Donnelly moved the project return to
staff to work with the applicant regarding a height
limitation formula along the lines suggested by Mr.
Maul. The motion was seconded by Councilmember Sheetz.
Mr. Maul stated a formula can be developed, but thought perhaps
it should be worked out one project at a time in accordance with
the PD overlay on this site. Councilmember Lemons agreed the PD
zoning specifically calls for a case -by -case evaluation.
Mr. Farrel asked Council if they would be willing to consider a
height above 17 feet. Councilmember Donnelly thought 25 feet
could be a maximum.
The motion was unanimously carried by roll call vote.
(5-0)
B-2 PUBLIC HEARING ON RESOLUTION NO. 49-88 APPROVING APPLICATION
Steve Wolter reviewed the background of the Land and Water Con-
servation Fund. He noted awards this year emphasize pedestrian,
picknicking and other passive activities. The staff proposal is
to apply for funds for Tidelands Park in the amount of $85,000
for pedestrian improvements, landscaping and Park uses. He re-
viewed other possible funding sources for Tidelands Park improve-
ments and cost estimates to complete the park.
Mr. Wolter stated the Recreation and Parks Commission reviewed
the grant application and recommends the City apply for $80,000
as opposed to the $85,000 recommended by staff; they believed
this would give the City a better chance to receive grant funding
in the competition for $413,000.
Mayor Reddell opened the hearing to the public for comments;
there were no comments and the hearing was closed.
MINUTES - MORRO BA*ITY COUNCIL •
REGULAR MEETING - MAY 23, 1988
PAGE 10
MOTION: Councilmember Sheetz moved for the adoption of Resolu-
tion No. 49-88, with the grant application in the
amount of $80,000. The motion was seconded by Coun-
cilmember Lemons and unanimously carried. (5-0)
B-3 PUBLIC HEARINGS ON PROPOSED FEDERAL REVENUE SHARING INTEREST
ALLOCATIONS AND FY 88-89 RECOMMENDED CITY BUDGET
Mr. Napper stated staff is proposing the $10,000 in interest
monies from the cancelled Federal Revenue Sharing Program be used
as the City's local match in purchasing a new bus for the Dial -a -
Ride system. At this time, Council can receive comments from the
public for alternate uses for these funds. This is also the op-
portunity for those unable to attend budget workshops to comment
on the proposed FY88-89 Budget. The workshops will be held June
6, 8, and 9, 1988 at 8 AM in the Library Program Room.
Mayor Reddell opened the hearing to the public for comments; no
comments were received and the hearing was closed.
MOTION: Councilmember Lemons moved June 6, 8, and 9, 1988 be
set as the dates for Council workshops on the Budget.
The motion was seconded by Councilmember Donnelly and
unanimously carried. (5-0)
B-4 ORDINANCE NO. 325 CREATING A MASTER FEE SCHEDULE; AND RESO-
LUTION NO. 48-88 ADOPTING THE 1988-89 MASTER FEE SCHEDULE
Louise Burt stated the City's Master Fee Schedule is updated an-
nually. Ordinance No. 325 creates a Master Fee Schedule and the
enabling authority to update the schedule annually by resolution.
Resolution No. 48-88 sets the fees for 1988-89 and reflect a 4%
CPI increase over existing rates. She stated there are 2 new
fees; an initiative filing fee of $200, and a live -aboard permit
fee of $218. There is also a provision to allow a discount of
10% on any dockage paid one year in advance.
Councilmember Odell asked how staff arrived at the figure for the
initiative filing fee; Ms. Burt stated it is set at no more than
$200 by the Elections Code. Mr. Napper explained the amount of
time spent by the City Attorney in preparing an analysis of ini-
tiatives; he noted the fee is totally refunded if the initiative
qualifies for the ballot.
Mayor Reddell asked what constitutes a live -aboard; Ms. Skousen
stated the Municipal Code sets forth anyone on -board more than 3
days.
Mayor Reddell opened the hearing to the public for comments.
Norman Davis, a member of a Morro Bay Boat -Owners Subcommittee to
work on a live -aboard ordinance acceptable to all parties, stated
MINUTES - MORRO BA4ITY COUNCIL
REGULAR MEETING - MAY 23, 1988
PAGE 11
it is premature to set $218 fee for live -aboard permits. He sug-
gested setting it aside until the subject of live-aboards has
been worked out; the fee might be too low.
Councilmember Donnelly asked how the permit fee was established;
Ms. Burt stated a work value study for the permit process was
conducted. Mr. Napper noted the fee can always be revised by
Resolution should later changes be appropriate.
MOTION: Councilmember Lemons moved Ordinance No. 325 be read by
title and number only. The motion was seconded by
Councilmember Sheetz and unanimously carried. (5-0)
Mr. Napper read Ordinance No. 325 by title and number only.
MOTION: Councilmember Lemons moved for the adoption of Ordi-
nance No. 325 effective immediately pursuant to Cali-
fornia Government Code Section 36937. The motion was
seconded by Councilmember Odell and unanimously
carried. (5-0)
MOTION: Councilmember Sheetz moved for the adoption of Resolu-
tion No. 48-88. The motion was seconded by Councilmem-
ber Lemons and unanimously carried. (5-0)
B-5 GAZEBO COMMITTEE RECOMMENDATION FOR SITING OF MORRO
Steve Wolter reviewed Council's direction regarding placement of
a gazebo in City Park. A Siting and Design Committee met on May
Sth to discuss where the gazebo should be placed in the Park.
They determined the best place for the gazebo is near the large
Monterey Pine tree on the east end of the Park. The tree and the
gazebo should be tangent to each other but favoring the Harbor
Street side of the park. A location map was attached for Council
consideration. The Committee will meet on June 22nd to discuss
gazebo design. Mr. Wolter stated if Council agrees with the site
recommended by the Committee, they should authorize staff to ini-
tiate procedures to amend the Morro Bay "City" Park Master Plan.
Councilmember Donnelly noted the charge to the Committee and the
item on the agenda this evening is where the gazebo should be lo-
cated; not whether or not it should be placed in City Park.
Mayor Reddell opened the hearing the to the public for comments.
Ray Kaltenbach stated is premature to act on a site; if the
gazebo initiative currently being circulated is adopted by the
voters, the gazebo will have to be torn down.
Mayor Reddell closed the hearing to the public.
MINUTES - MORRO BA0ITY COUNCIL •
REGULAR MEETING - MAY 23, 1988
PAGE 12
MOTION: Councilmember Donnelly moved Council adopt the Commit-
tee's recommendation. The motion was seconded by Coun-
cilmember Lemons and carried with Councilmembers Odell
and Sheetz voting no. (3-2)
MOTION: Councilmember Lemons moved staff be authorized to com-
mence appropriate amendment to the Morro Bay"City" Park
Master Plan. The motion was seconded by Councilmember
Donnelly and carried on the following roll call vote:
AYES: Donnelly, Lemons, Reddell
NOES: Odell, Sheetz
B-6 PUBLIC HEARING TO CONSIDER PLACING ON THE NOVEMBER 1988
BALLOT A CITY MEASURE TO PROVIDE FOR SELECTION OF MAYOR BY
nnrrwrn rr ur+w.n r+rin rwrr� r+r rw. rwra mz+ rar onmrnwr nn w.wvnn nv nrnc+nm
Mr. Napper.stated this item was agendized at the request of Coun-
cilmember Odell. He noted an initiative was adopted by the vot-
ers in 1974 to directly elect the Mayor for a 2 year term.
Councilmember Odell stated he compared the City's situation to
the Board of Supervisors who elect their chairman annually. He
said the City is not getting their monies worth with a 2-year
Mayor; it seems like it is inefficient. Morro Bay's Mayor is not
a strong Mayor in that it does not have special voting powers.
He initially thought the position would make things more demo-
cratic, but now feels perhaps the voters should have another op-
portunity to vote on the matter.
Mayor Reddell opened the hearing to the public for comments.
Tom Wuriu, Juniper Street, stated it is more democratic to elect
a Mayor; it gives more stature to the office and the City Council
needs a leader. If the Council selects the Mayor, there is room
for political manipulation. He suggested making the Mayor a 4-
year term.
Doris Murray stated she came here from Del Mar; the Council in
that City selects the Mayor, and each gets a chance at the posi-
tion. It seems to work nicely.
Peter Diffley, 960 Anchor, preferred to keep the position the way
it is; the tradition of passing the position from Councilmember
to Councilmember works except when the Council really does not
want to do it that way. With an elected Mayor, it also gives the
people a chance to change the complexion of the Council every 2
years.
Ray Kaltenbach agreed the system should be kept the way it is.
MINUTES MORRO BAOITY COUNCIL
REGULAR MEETING - MAY 23, 1988
PAGE 13
Ross Boyd, 265 Kern Avenue, believed the Mayor's position should
be elected; however, he suggested dividing the City into 4 sec-
tions and electing the remaining Councilmembers by districts.
Mayor Reddell closed the hearing to the public.
MOTION: Councilmember Odell moved the issue of whether the ma-
jority of the Council should select the Mayor be placed
on the November ballot.
Motion died for lack of a second.
No further action was taken on this matter.
B-7 ORDINANCE NO. 326
CHAPTER 2.06 REOU]
Judy Skousen stated she had been directed to prepare an ordinance
which would require a candidate for Mayor to resign from the
Council at the time one filed nomination papers for Mayor, if
their Council term did not end before the new term of Mayor com-
menced. She stated she has also changed the 'gender bias in the
Municipal Code (Councilman to Councilmember).
Councilmember Lemons stated one of the political tactics used in
elections is for a Councilmember to run for Mayor mid-term; if he
or she is elected, the majority of the Council will select the
councilmember for the unexpired term of the Councilmember who ran
for Mayor. He believed a 4 year Councilmember should be at risk
if he decides to run for Mayor. He noted there is similar legis-
lation being considered at the State level.
Mayor Reddell opened the hearing to the public.
Ray Kaltenbach agreed with Councilmember Lemons.
Ross Boyd disagreed; he stated if a person is an elected official
and wants to elevate himself, it is a matter of right to upgrade
oneself.
Katherine Walling did not know what this is all about; why give
up a seat to run for office?
Nancy Bast stated a person is doing the citizens a favor to run
for Mayor after 2 years in office. The system is fine the way it
is.
Mayor Reddell closed the hearing to the public.
Councilmember Odell disagreed with the concept; he did not be-
lieve it would correct anything. He suggested there is a problem
MINUTES - MORRO BA0ITY COUNCIL •
REGULAR MEETING - MAY 23, 1988
PAGE 14
of selecting someone to fill the unexpired term when a candidate
resigns to run for Mayor, and that should be addressed instead.
Mayor Reddell stated he would like this item held off until after
the election.
Councilmember Sheetz stated the ordinance would deter people from
running for office. She does not believe it is good government
to interrupt the flow; they are here to carry out the business of
the City.
MOTION: Councilmember Sheetz moved Item B-7 be tabled. The mo-
tion was seconded by Councilmember Donnelly and car-
ried, with Councilmember Lemons voting no. (4-1)
Council recessed from 10:12 p.m
B-8 REQUEST BY PROPONENTS OF
to 10:20 p.m.
OVID
Councilmembers Donnelly, Lemons and Mayor Reddell stepped down
from consideration of this item because of a possible conflict of
interest.
Councilmember Sheetz assumed Chair of the meeting and directed
the names of those stepping down be placed in the hat and one
drawn to form a quorum to conduct Council business by the Rule of
Necessity.
Ms. Davis picked a name from a cup, and Mr. Napper announced
Councilmember Donnelly was chosen. Councilmember Donnelly re-
sumed his chair and was advised by the City Attorney not to make
any attempt to influence other Councilmembers regarding the issue
or to offer any motions; he may only ask questions and vote on
the motions made by other Councilmembers.
Councilmember Donnelly stated his conflict involves his drafting
business which provides services to contractors and architects.
Randy Ruff, 485 Shasta, stated he and Nelson Sullivan have under-
taken an effort to bring an initiative measure to the voters, but
have been frustrated with problems in the summary provided by the
City Attorney. The main purpose of the initiative is to coordi-
nate future water commitments with supply. He went into detail
on the objectives of the initiative. He said the summary pre-
pared by the City Attorney violates 2 provisions of the Election
Code and prejudices the public against the measure. The fiscal
impact set forth by the Attorney is inappropriate to be on the
circulating petition. He suggested Council take action to sub-
stitute a summary provided by the proponents for the City Attor-
MINUTES - MORRO BAOITY COUNCIL •
REGULAR MEETING - MAY 23, 1988
PAGE 15
ney's summary. If Council takes no action, the proponents will
have to file for a Writ of Mandate in Superior Court. Another
course of action is for Council to order the measure placed on
the ballot.
There were no further comments and Councilmember Sheetz closed
the hearing to the public.
Ms. Skousen stated the law is clear regarding City Attorney sum-
mary of proposed initiatives and provides anyone who objects to
the content of the summary a remedy, and only one remedy, through
the courts. The City Attorney is mandated by the Elections Code
to prepare the ballot title and summary; only the courts can di-
rect the summary be re -written, it is beyond the power and au-
thority of the Council to direct. The Council can, however, de-
termine to place the issue on the ballot hs a City measure which
does not require a City Attorney's summary.
Ms. Skousen stated the initiative is very lengthy and ambiguous;
she reused the words in the initiative itself to the extent pos-
sible to draft the summary.
Councilmember Donnelly asked what the consequences are if the
proponents file for a Writ of Mandate. Ms. Skousen stated it is
a speedy and streamlined procedure whereby the court reviews the
summary; if they determine it is erroneous, they would direct the
City Attorney to re -draft the summary. The court would have to
make a finding that the summary is obviously biased. She noted
if the proponents had submitted this matter to the court when
they first received her summary, they would already have a court
judgment.
Councilmember Donnelly asked who prepared the fiscal impact fig-
ures; Ms. Skousen stated it was based on information received
from the Public Works Director and Community Development Direc-
tor. She believed it necessary to include the figures because of
the ambiguity of the ordinance; it could be interpreted to re-
quire the City to do certain things which would cost the amounts
set forth.
Nick Nichols stated he worked his figures from a conservative
viewpoint; if the language in the ordinance is adopted, he had to
consider what the City could be required to do to comply. The
ordinance, as written, could be interpreted to require the City
to recalibrate every water meter in the City.
Mr. Ruff stated he had consulted with a very experienced city at-
torney on these issues. A fiscal impact statement is not appro-
priate for a City Attorney's summary; it could be incorporated
into the City Attorney's Analysis at a later date. In response
to the comments about the ambiguity of the initiative, Mr. Ruff
stated much of the language is carried forward from existing land
MINUTES - MORRO BA0ITY COUNCIL •
REGULAR MEETING - MAY 231 1988
PAGE 16
use policies and ordinances. His purpose had been to reduce dis-
order in the whole area of policies, ordinances, and guidelines
that exist in water management. He does not believe the ordi-
nance is ambiguous; it does not require the City to recalibrate
or replace all meters in the City.
Councilmember Sheetz commented the City Attorney's summary was
too negative. Ms. Skousen suggested Council could direct staff
to work with the proponents to redraft the ordinance and try to
accomplish what the proponents want. She strongly recommended
this be done if Council wishes to place the measure on the ballot
as a City measure.
Mr. Napper took exception to the proponents charge staff is
usurping Council powers. It is the summary's duty to inform the
people what a measure entails; it is part of the information
process.
MOTION: Councilmember Donnelly moved Council deny the request
to place the initiative on the ballot.
Ms. Skousen stated Councilmember Donnelly cannot make the motion
because of his conflict of interest.
MOTION: Councilmember Odell moved the request be denied. The
motion was seconded by Councilmember Sheetz.
Mr. Ruff stated the City Attorney is the Council's employee, and
they can tell her what to do. Ms. Skousen disagreed stating the
law says the City Attorney shall prepare the summary; Council
cannot substitute their judgment for the City Attorney's. Coun-
cilmember Sheetz stated she had no choice but to go along with
the City's legal advice.
The motion carried. (3-0)
Councilmember Sheetz asked if Council wished to consider placing
the measure on the ballot as a City measure; perhaps it could be
rewritten to eliminate ambiguities. No action was taken.
Councilmember Lemons and Mayor Reddell resumed their seats.
B-9 PUBLIC HEARING ON RESOLUTION NO. 51-88 FOR LOCAL COASTAL
PLAN AMENDMENT AND CORRESPONDING CHANGE OF ZONE FOR CERTAIN
DESCRIBED PROPERTIES; CASE NO. LCP GPA ZOA 01-87 (MERZON,
APPLICANT)
Mayor Reddell stepped down because of a conflict of interest on
this matter. Councilmember Donnelly assumed the Chair.
Mr. Farrel stated this item involves a previously -approved amend-
ment to the General Plan and Local Coastal Program Land Use Plan
MINUTES - MORRO BA0ITY COUNCIL
REGULAR MEETING - MAY 23, 1988
PAGE 17
Li
for property located at the corner of Sequoia Court and Ironwood
Avenue. It changed the property designation from low density
residential to low/medium density residential, and changed the
zoning from R-A to R-1. Mr. Farrel stated Council had previously
considered and approved this item August 10, 1987. Upon forward-
ing it to the Coastal Commission for certification, several minor
deficiencies became apparent. Those have been corrected, but the
matter is resubmitted for Council to procedurally correct.
Mayor Pro Tem Donnelly opened the hearing to the public for com-
ments; there were no comments and the hearing was closed.
MOTION: Councilmember Sheetz moved for the adoption of Resolu-
tion No. 51-88. The motion was seconded by Councilmem-
ber Lemons and carried with Mayor Reddell abstaining
(4-0-1)
Mayor Reddell resumed his seat.
C. UNFINISHED BUSINESS
C-1 HARBOR ENTRANCE PROJECT COST -SHARING
Alan Davis reviewed the Cost -Sharing and Scope of Study agreement
between the City and the Army Corps of Engineers. The agreement
is for the Feasibility Study for the harbor entrance. He noted
costs have increased $15,000 from Council's previous considera-
tion of this item; it is now up to $427,000.
Councilmember Lemons asked about the statement in the staff re-
port and Letter of Intent conditioning the City's participation
on matching funds from the SB 959 grant. Mr. Davis stated if the
grant funds do not come through, the City has the option of can-
celling the agreement or getting the funds elsewhere. Coun-
cilmember Lemons stated he is committed to the feasibility study
and the Letter of Intent needs to be more strongly worded. Mr.
Napper concurred, and the earlier directed the letter to be
rewritten to indicate the City is ready to participate with no
qualifications.
MOTION: Councilmember Sheetz moved the Mayor be authorized to
sign the Letter of Intent as outlined by Mr. Napper.
The motion was seconded by Councilmember Donnelly and
unanimously carried. (5-0)
C-2 POLICY DIRECTION CONCERNING 2-YEAR WAIVER OF PARKING
REQUIREMENTS IN DOWNTOWN AREA
Mr. Farrel stated Council had directed staff provide information
to achieve a temporary reduction in parking requirements. He re-
viewed current requirements and alternatives for Council consid-
MINUTES - MORRO BA4ITY COUNCIL
REGULAR MEETING - MAY 23, 1988
PAGE 18
0
eration. He noted a Municipal Code provision, Section 17.44.050,
which allows the Community Development Director to grant excep-
tions to parking limitations under certain conditions. He sug-
gested Council adopt a Resolution authorizing these waivers as
determined by the Community Development Director, and reviewed
the findings in support of this action.
Councilmember Lemons was concerned about the requirement for
businesses receiving waivers to provide 25% to 50% of their pro-
ject improvement toward esthetics. Mr. Farrel stated the object
was to get people to repay what is clearly a public benefit. Mr.
Napper noted the figures were provided for discussion; Council
can change them.
Councilmember Lemons asked about the requirement to agree not to
protest any future parking management plan or district if a busi-
ness benefits from a parking requirement waiver; Ms. Skousen
stated it is a requirement the City can legally make.
Mayor Reddell thought perhaps a larger area than that suggested
should be considered; he also believed motels should not benefit
from the parking waiver. Ms. Skousen stated Council would have
to be make findings to show how motels differ from other
businesses.
Staff requested direction for formulating a Resolution. Mayor
Reddell suggested the waiver be limited to retail businesses
only. Council decided on a 2-year limitation to the waiver pro-
cedure, and 10% of improvement costs be dedicated to facade or
public amenity improvements.
C-3 CONSIDERATION OF FINANCING FOR SAN BERNARDO CREEK DAM FEASI-
BILITY STUDY EIR ($300,000)
Mayor Reddell stated Item C-4 would be considered before this
item.
C-4 RESOLUTION NO. 42-88
Louise Burt reviewed a staff report which addressed items brought
up by Mr. Dildine of the Construction Industry Force Account
Council at the last Council meeting. She noted the City's stan-
dard for establishing the Cost Allocation Plan, Indirect Cost
Rates and Productive Hourly Rates is the Federal Circular A-87;
this is used in place of the Cost Accounting Policies and Proce-
dures Manual cited by Mr. Dildine. She stated in reviewing the
bid, a duplication of equipment costs was noted resulting in an
additional $40,375 savings if the work is performed by the City.
MINUTES - MORRO BAOITY COUNCIL
REGULAR MEETING - MAY 23, 1988
PAGE 19
Judy Skousen stated it is her opinion the City has the right to
do this project by force account labor. There are two previous
City Attorney's opinions, as well as hers, which support this ac-
tion. Mr. Napper stated the action recommended by staff is con-
sistent with State law and past practice. He recommended Council
go forward with City forces to complete this project.
Steve Souza, 141 Toro Creek Road, Morro Bay, and on the Board of
Directors of the County Contractors Association, stated the
City's bid does not show the true costs of the project. He cited
depreciation, maintenance, and equipment replacement costs. He
said the City's mind was already made up when they went to bid,
and they wasted contractors' time and money to bid on this pro-
ject. He encouraged Council to award the bid to the low bidder.
Mr. Souza stated he did not intend to insult anyone at the last
Council meeting, but noted his crews have been harassed this last
week by City employees and he hopes it does not continue.
Bob Dorn, 212 Beach St., and representing a number of contractors
throughout the Tri-Counties area through the Associated General
Contractors, did not believe it is right for the City to allow 8
bidders to spend $2,000 or $3,000 each to bid a project the City
did not intend to award. He stated the contractor is required to
complete the project in 120 days, when the City has no require-
ment to complete the project by a certain time. He cited Public
Contract Code 20102 as requiring the City to bid the same project
as the contractor. He said if the bid is not awarded to Coastal
Earthmovers, there will probably be a lawsuit.
Mr. Dildine spoke against the City awarding the project to itself
and cited areas in the bid where the City is subcontracting por-
tions of the project without going to bid when the law states
anything over $5,000 has to be bid.
Joe Chaves, 715 Evans Road, San Luis Obispo, and a representative
of International Union of Operating Engineers, spoke against the
City doing the work on this project; he said the City may be
jeopardizing grants with this action.
Bill Thoma, San Luis Obispo County Contractors Association, em-
phasized the City is not comparing the same 2 jobs; he stated the
Public Works Director's estimates are too conservative.
Al Chanley, representing Coastal Earthmovers, stated they had
spent a lot of time putting the bid together and would like a
chance to do the job.
Ms. Burt stated there is a specific provision in the Manual which
allows the City to subcontract as a part of the City's estimate.
Ms. Skousen explained the subcontracting portions of the bid are
part of the total City estimate; it is legal for the City to per-
form the work in this manner.
MINUTES - MORRO BA0ITY COUNCIL '
REGULAR MEETING - MAY 23, 1988
PAGE 20
It was determined the bid specifications require the contractor
to complete the work in 120 days. Mr. Nichols advised City crews
cannot perform the work in 120 days; he thought that requirement
had been removed from the bid specifications. There was consid-
erable discussion as to whether this invalidated the City's esti-
mate since it was not based on 120-day completion requirement.
Ms. Skousen stated she would like to research the matter further
before Council makes a decision. Mr. Napper recommended this
latest fact of 120-day project completion alters things signifi-
cantly; since this was not the project the City intended to bid,
he suggested Council reject all bids and re -bid the right
project.
Mayor Reddell said he was inclined to award the project to City
crews because he believed they are qualified to do the work and
can do it cheaper if only because of profit margins. He pre-
ferred, however, that the action taken be legal to avoid a
lawsuit.
MOTION: Councilmember Sheetz moved all bids be rejected and the
project be re -bid.
The motion died for lack of a second.
MOTION: Councilmember Donnelly moved the contract be awarded to
the low bidder.
The motion died for lack of a second.
There was further discussion on this matter. Council decided to
meet Wednesday, May 25th at 5:30 p.m. in the Veterans Hall to
continue discussion of this item and the other items not consid-
ered this evening.
C-3 CONSIDERATION OF FINANCING FOR SAN BERNARDO CREEK DAM FEASI-
BILITY STUDY EIR ($300,000)
Deferred to May 25th.
D. NEW BUSINESS
D-1
APPLICANTS
Deferred to May 25th.
ICOhi
MINUTES - MORRO BA0ITY COUNCIL •
REGULAR MEETING - MAY 23, 1988
PAGE 21
F. ADJOURNMENT
MOTION: Mayor Reddell moved the meeting be adjourned to Wednes-
day, May 25, 1988, at 5:30 p.m. in the Veterans Memo-
rial Hall to continue this meeting. The motion was
seconded by Councilmember Lemons and unanimously
carried. (5-0)
The meeting adjourned at 1:08 a.m.
Recorded by:
ARDITH DAVIS
City Clerk
MORRO BAY
CITY COUNCIL
AGENDA
ADJOURNED REGULAR MEETING - MAY 16, 1988
CITY HALL CONFERENCE ROOM - 5:00 P.M.
ROLL CALL
PUBLIC COMMENT PERIOD
E. CLOSED SESSION
E-1 GOVERNMENT CODE SECTION 54957.6(A), LABOR RELATIONS
F. ADJOURNMENT
COPIES OF STAFF REPORTS OR OTHER PUBLIC DOCU-
MENTATION RELATING TO EACH ITEM OF BUSINESS
REFERRED TO ON THIS AGENDA ARE ON FILE IN THE
OFFICE OF THE CITY CLERK AND AVAILABLE FOR
PUBLIC INSPECTION AND REPRODUCTION AT COST.
0
MINUTES - MORRO BAY CITY COUNCIL
ADJOURNED REGULAR MEETING - MAY 16, 1988
CITY HALL CONFERENCE ROOM - 5:00 P.M.
Mayor Reddell called the meeting to order at 5:06 p.m.
PRESENT:
ABSENT:
STAFF:
PUBLIC COMMENT
None.
Dale Reddell
Paul Donnelly
John Lemons
Jeff Odell
Rose Marie Sheetz
Gary Napper
Forrest Henderson
E. CLOSED SESSION
Mayor
Councilmember
Councilmember
Councilmember
Councilmember
City Administrator
Asst. to City Admin.
MOTION: Councilmember Donnelly moved the meeting adjourn to
Closed Session. The motion was seconded by Councilmem-
ber Odell and unanimously carried. (4-0)
Mayor Reddell announced the Council is adjourning to Closed Ses-
sion to discuss labor relations in accordance with Government
Code Section 54957.6(a).
The meeting adjourned to Closed Session at 5:06 p.m. and returned
to regular session at 6:24 p.m.
F. ADJOURNMENT
MOTION: Councilmember Odell moved the meeting be adjourned.
The motion was seconded by Councilmember Donnelly and
unanimously carried. (4-0)
The meeting adjourned at 6:24 p.m.
MORRO'BAY 41
CITY COUNCIL
AGENDA
REGULAR MEETING - MAY 9, 1988
VETERANS MEMORIAL HALL - 6:00 P.M.
ROLL CALL
INVOCATION
PLEDGE OF ALLEGIANCE
1. DONATION OF $500 TO MORRO BAY COMMUNITY CENTER BY LYNN SUDDEN, ROTARY
CLUB "BUSINESSPERSON OF THE YEAR" 1987
2. CERTIFICATES OF APPRECIATION TO DIAL -A -RIDE BUS DRIVERS
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 by standing. When recognized by the Mayor, please
come forward to the podium and state your name and address for the record.
Comments should normally be limited to three minutes.
DECLARATION OF FUTURE AGENDA ITEMS
A. CONSENT CALENDAR
Unless an item is pulled for separate action by the City Council, the fol-
lowing actions are approved without discussion.
A-1 CITY COUNCIL MINUTES OF THE REGULAR MEETING OF APRIL 25, 1988, AND THE
SPECIAL MEETING OF APRIL 27, 1988
A-2 REJECTION OF LIABILITY CLAIM AGAINST THE CITY (GOINS)
A-3 PROCLAMATION DECLARING APRIL 24-MAY 24, 1988 AS "SOIL AND WATER
STEWARDSHIP MONTH"
A-4 PROCLAMATION DECLARING MAY 18, 1988 AS "BUS DRIVER APPRECIATION DAY"
A-5 PROCLAMATION DECLARING MAY 22-28, 1988 AS "CALIFORNIA TRAFFIC SAFETY
WEEK"
A-6 RESOLUTION NO. 38-88 AWARDING CONTRACT FOR BID PW.88-113, WATERLINE
MATERIALS AND FIRE HYDRANTS PURCHASE
A-7 RESOLUTION NO. 45-88 REJECTING BIDS FOR PROJECT PW 87-09 (POLICE
STATION RENOVATION), AND RESOLUTION NO. 46-88 AUTHORIZING STAFF TO
NEGOTIATE THE PROJECT WITHIN AVAILABLE FUNDING
1
0
A-8 RESOLUTION NO. 37-88 AWARDING CONTRACT FOR BID PW 88-112, 1-TON TRUCK
A-9 RESOLUTION NO. 43-88 CALLING A GENERAL MUNICIPAL ELECTION FOR TUESDAY,
NOVEMBER 8, 1988 FOR THE PURPOSE OF ELECTING CERTAIN OFFICERS;
REQUESTING THE BOARD OF SUPERVISORS OF SAN LUIS OBISPO COUNTY TO CON-
SOLIDATE SAID ELECTION WITH THE STATEWIDE GENERAL ELECTION; AND OTHER
ELECTION MATTERS AS REQUIRED BY LAW
A-10 RESOLUTION NO. 41-88 AWARDING CONTRACT FOR 1988 WEED ABATEMENT PROGRAM
A-11 RESOLUTION NO. 36-88 RESCINDING RESOLUTION NO. 55-81, AND RAISING AD-
MINISTRATIVE SETTLEMENT AUTHORIZATION ON LIABILITY AND WORKERS COMPEN-
SATION CLAIMS
A-12 AMENDMENT NO. 1 TO MORRO BAY LIBRARY OPERATING AGREEMENT WITH COUNTY
OF SAN LUIS OBISPO (PARKING LOT MAINTENANCE)
A-13 RESOLUTION NO. 40-88 AWARDING CONTRACT FOR 1988-1993 TRANSPORTATION
DEVELOPMENT PLAN UPDATE (SECTION 8 GRANT), RFP NO. PW 88-120
A-14 INTRODUCTION OF FY 88-89 RECOMMENDED CITY BUDGET
A-15 SET DATE (MAY 23RD) FOR APPEAL HEARING TO PLANNING COMMISSION'S DENIAL
OF CUP NO. 39-86, MORRO BAY MARINA WATERFRONT PROJECT
B. PUBLIC HEARINGS. REPORTS & APPEARANCES
B-1 HEARING FOR APPEAL BY PROPERTY OWNERS ON NOTICE TO ABATE WEEDS
B-2 PUBLIC HEARING ON CITY APPLICATION TO STATE DEPARTMENT OF HOUSING AND
COMMUNITY DEVELOPMENT (HUD) 1988 SMALL CITIES COMMUNITY DEVELOPMENT
BLOCK GRANT PROGRAM FOR HOUSING REHABILITATION FUNDS ($520,000)
B-3 PUBLIC HEARING ON THE FINAL ENVIRONMENTAL IMPACT REPORT FOR MORRO BAY
MARINA WATERFRONT PROJECT (MORRO BAY MARINA, APPLICANT; CUP NO. 39-86)
B-4 CONTINUED PUBLIC HEARING ON APPEAL TO PLANNING COMMISSION RESOLUTION
NO. 06-88 CONCERNING CASE NO. VARIANCE 02-88 (SKAFF, APPELLANT, 458
FRESNO AVENUE)
B-5 RESOLUTION NO. 39-88 ORDERING PLACED ON THE BALLOT OF THE NEXT CITY
ELECTION A MEASURE TO ESTABLISH A GROWTH AND WATER MANAGEMENT
ORDINANCE
B-6 REQUEST BY PROPONENTS FOR CITY COUNCIL PLACEMENT OF PROSPECTIVE INI-
TIATIVE PETITION ON THE NOVEMBER 1988 BALLOT (INITIATIVE MEASURE TO
REFORM CITY WATER MANAGEMENT AND ALLOCATION REGULATIONS)
2
0
C. UNFINISHED BUSINESS
C-1 ORDINANCE NO. 324 AMENDING TITLE 17 OF THE MORRO BAY MUNICIPAL CODE
SECTIONS 17.320.090 AND 17.40.030 (E) AND OFFICIAL ZONING MAP (CASE
NO. ZOA 01-88, LOCAL COASTAL PROGRAM LAND USE DESIGNATION ZONING
AMENDMENT; WILLIAMS BROTHERS/MEASURE B) - SECOND READING AND ADOPTION
C-2 REQUEST BY MORRO BAY FUEL DOCK, INC. TO RETAIN EXISTING TERMS AND CON-
DITIONS OF COUNTY LEASE AGREEMENT ON LEASE SITE 30-33W
C-3 CONSIDERATION OF FINANCING FOR SAN BERNARDO CREEK DAM FEASIBILITY
STUDY/EIR ($300,000)
D. NEW BUSINESS
D-1 RESOLUTION NO. 42-88 REJECTING BIDS AND STATING FINDINGS OF FACT FOR
THE USE OF DAY LABOR - WATERLINE REPLACEMENT PROJECT NO. PW 87-10
D-2 RECOMMENDATION FROM HARBOR ADVISORY BOARD ON PRIORITY WORK TASKS
D-3 CONSIDERATION OF CITY STORM DRAIN MASTER PLAN
E. CLOSED SESSION
E-1 GOVERNMENT CODE SECTION 54956.8, REAL PROPERTY NEGOTIATIONS,
DOMENGHINI FLAT LANDS
E-2 GOVERNMENT CODE SECTION 54956.9(A), PENDING LITIGATION
1. BARKET VS. CITY OF MORRO BAY
2. OLSEN VS. CITY OF MORRO BAY
E-3 GOVERNMENT CODE SECTION 54957.6(A), LABOR RELATIONS
F. ADJOURNMENT
COPIES OF STAFF REPORTS OR OTHER PUBLIC DOCUMENTATION
RELATING TO EACH ITEM OF BUSINESS REFERRED TO ON THIS
AGENDA ARE ON FILE IN THE OFFICE OF THE CITY CLERK AND
AVAILABLE FOR PUBLIC INSPECTION AND REPRODUCTION AT
COST.
LI
NOTICE ❑F PUBLIC HEARING
NOTICE IS HEREBY GIVEN that the Morro bay City Council will
hold a PUBLIC HEARING on Monday, May 9, 1988, at 6:00 p.m. in the
Veterans Memorial Building, 209 Surf Street, Morro Bay, For the
purpose of appealing the requirement to abate weeds and hazardous
nuisances in accordance with Section 8.12.070 ❑F Section 8.12 ❑f
Title 8 of the Morr❑ Bay Municipal Code. Any person may appear
and express their.views For or against or in modification ❑F said
request at said Public Hearing.
CITY OF MORR❑ BAY
Ardith Davis, City Clerk
Publish: Sun -Bulletin, One Time Only, April 28, 19BB
Telegram -Tribune, Two Times, April 28 & 29, 198B
0
MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING - MAY 9, 1988
VETERANS MEMORIAL HALL - 6:00 P.M.
Mayor Reddell called the meeting to order at 6:10 p.m.
ROLL CALL
PRESENT: Dale Reddell
Paul Donnelly
John Lemons
Jeff Odell
ABSENT: Rose Marie Sheetz
STAFF: Forrest Henderson
Judy Skousen
Louise Burt
Alan Davis
Bill Farrel
Nick Nichols
Ardith Davis
Mayor
Councilmember
Councilmember
Councilmember
Councilmember
Asst. to City Admin.
City Attorney
Finance Director
Harbor Director
Community Develop. Dir.
Public Works Dir.
City Clerk
Chris Cameron of the Calvary Baptist Church gave the invocation,
and Horace Strong led the Pledge of Allegiance.
Mayor Reddell announced the Rotary Club of Morro Bay sponsored a
"Businessperson of the Year" contest in 1987; the winner was Lynn
Budden, Branch Manager of Century Federal Savings. The prize was
a $500 donation to a charity of the winner's choice; Ms. Budden
chose the Community Center to receive the prize. Lynn Budden,
Dan Leonard of Mid -State Bank and Keric Rowlee, President of the
Morro Bay Rotary Club, presented Mayor Reddell with a $500 check
for the Community Center.
M 2il =PF tOW99yu rV i Drily 11
Mr. Henderson, Assistant Administrator acting in the City Admin-
istrator's absence, stated Mr. Napper will not be at tonight's
meeting as his wife delivered a baby girl this morning.
1. Ed Ewing, 238 Pacific, requested an item be scheduled
for a Planning Commission agenda to consider allowing the appli-
cations selected in the recent lottery, but not awarded building
permits because of their placement on the list, be placed on a
MINUTES - MORRO BA0ITY COUNCIL
REGULAR MEETING - MAY 91 1988
PAGE 2
•
waiting list for building permits next year. He noted the amount
of money and time these applicants have spent in preparing plans
for submission in the lottery; he believed these people have a
vested interest.
2. W. R. Dildine of the Construction Industry Force
Account Council requested time to speak on Item D-1 when Council
reaches that item on the agenda. Mayor Reddell stated he would
be allowed to speak at that time.
3. Charles Palmer commented on the merits of the Coastal
Stream Diversion Plan.
DECLARATION OF FUTURE AGENDA ITEMS
1. Councilmember Odell requested a public hearing be
scheduled at the next Council meeting to consider placing a mea-
sure on the November 1988 ballot to eliminate the Mayor's posi-
tion as an elective office. He believed the position should be a
rotating position among 5 councilmembers.
Councilmember Lemons stated he had requested the City Attorney
prepare an ordinance prohibiting a councilmember from running for
Mayor mid-term of his/her Council term unless he resigns his/her
Council seat. Ms. Skousen stated the ordinance will be ready for
the next Council meeting.
2. Councilmember Odell stated he had previously requested
an item be scheduled regarding an RFP for testing of the sewage
outfall; he requested this item be scheduled for the next joint
meeting between the City and the Cayucos Sanitary District Board
of Directors.
3. Councilmember Odell requested an item be scheduled to
discuss appointing a sub -committee consisting of 1 or 2 members
of the Council and Planning Commission to develop a handbook for
people applying for building permits.
A. CONSENT CALENDAR
A-1 CITY COUNCIL MINUTES OF THE RI
1988, AND THE SPECIAL MEETING OF
Mr. Henderson recommended Council
submitted.
f SI��Y1iiRe=�laiaiiiiil
approve the minutes as
A-2 REJECTION OF LIABILITY CLAIM AGAINST THE CITY (GOINS
Mr. Henderson recommended Council deny the claim, and authorize
the City Clerk to sign and mail the rejection letter.
MINUTES - MORRO BA*ITY COUNCIL •
REGULAR MEETING - MAY 9, 1988
PAGE 3
A-3 PROCLAMATION DECLARING APRIL 24-MAY 24(_1988 AS "S
Mr. Henderson recommended Council authorize the Mayor to sign the
Proclamation.
A-4 PROCLAMATION DECLARING MAY 18 1988 AS "BUS DRIVER APPRECIA-
TION DAY
Mr. Henderson recommended Council authorize the Mayor to sign the
Proclamation.
A-5 PROCLAMATION DECLARING MAY 22-_281 1988 AS "CALIFORNIA
TRAFFIC SAFETY WEEK"
Mr. Henderson recommended Council authorize the Mayor to sign the
Proclamation.
A-6 RESOLUTION NO. 38-88 AWARDING CONTRACT FOR BID PW 88-113,
WATERLINE MATERIALS AND FIRE HYDRANTS PURCHASE
Mr. Henderson recommended Council adopt Resolution No. 38-88.
A-7 RESOLUTION NO. 45-
fib'�ii�[«`➢4F:�alii�l[�=���LK�1�1Fi:[�M�Y.1�11�];i�Ir1PI�YY�^�YY:�Y� �e\Vt��YR�:lrl�l
Mr. Henderson recommended Council pull this item for separate
discussion and action.
A-8 RESOLUTION NO. 37-88 AWARDING CONTRACT FOR BID PW 88-112,
1-TON TRUCK
Mr. Napper recommended Council adopt Resolution No. 37-88.
A-9 RESOLUTION NO. 43-88 CALLING A GENERAL MUNICIPAL ELECTION
LUIS OBISPO COUNTY TO CONSOLIDATE SAID ELECTION WITH THE
STATEWIDE GENERAL ELECTION; AND OTHER ELECTION MATTERS AS
REQUIRED BY LAW
Mr. Henderson recommended Council adopt Resolution No. 43-88.
A-10 RESOLUTION NO. 41-88 AWARDING CONTRACT FOR 1988 WEED ABATE-
MENT PROGRAM
Mr. Henderson recommended Council adopt Resolution No. 41-88.
MINUTES - MORRO BAOITY COUNCIL •.
REGULAR MEETING - MAY 9, 1988
PAGE 4
A-11 RESOLUTION NO. 36-88 RESCINDING RESOLUTION NO. 55-81, AND
RAISING ADMINISTRATIVE SETTLEMENT AUTHORIZATION ON LIABILITY
AND WORKERS COMPENSATION CLAIMS
Mr. Henderson Recommended Council adopt Resolution No. 36-88.
A-12 AMENDMENT NO. 1 TO MC
OF SAN LUIS OBI
Mr. Henderson recommended Council approve Addendum No. 1 to the
Sublease Agreement, and authorize the Mayor and City Clerk to
sign the amendment.
A-13 RESOLUTION NO. 40-
!uJ
Mr. Henderson recommended Council adopt Resolution No. 40-88.
A-14 INTRODUCTION OF FY 88-89 RECOMMENDED CITY BUDGET
Mr. Henderson recommended Council accept the Administrator's Rec-
ommended City Budget for FY 88-89, and instruct staff to prepare
the public hearing meetings and budget sessions accordingly.
A-15 SET DATE (MAY 23RD) FOR APPEAL HEARING TO PLANNING COMMIS -
PROJECT
Mr. Henderson recommended Council set 23 May 1988 as the public
hearing for appeal of the Planning Commission's denial of a CUP
39-86, and instruct staff to prepare the necessary notices and
reports.
Councilmember Lemons stated he would like Item A-11 pulled for
separate discussion.
MOTION: Councilmember Odell moved for the approval of the Con-
sent Calendar with the exception of Items A-7 and A-11.
The motion was seconded by Councilmember Lemons and
unanimously carried. (4-0)
A-7 RESOLUTION NO. 45-88 REJECTING BIDS FOR PROJECT PW 87-09
Police Chief Howell explained the bid advertised was for instal-
lation of a communications console, general facelift, and con-
struction of new office space. Current budget for the project is
$60,000; the low, and only, bid came in at $92,000. He recom-
mended Council adopt Resolution No. 45-88 rejecting the bid. He
MINUTES - MORRO BA0ITY COUNCIL
REGULAR MEETING - MAY 9, 1988
PAGE 5
also recommended Council adopt Resolution No. 46-88 allowing the
City Administrator to negotiate the project; a substitute resolu-
tion has been provided to Council which includes additional find-
ings justifying this action. He explained the City first adver-
tised this project in 1986; bids received were over the budgeted
amount and were subsequently rejected. The project was scaled
down, and bids readvertised. The current bid is even higher than
the bids the first time the project was advertised.
Councilmember Lemons was concerned negotiations would result in
changing the project, which might require readvertising. He also
noted perhaps the budget should be supplemented since the project
had already been scaled down; apparently the renovations are
needed to the Police Department building. Chief Howell stated
his main concern is to get the communications console built as
soon as possible; communications equipment purchased over a year
ago is stored in a warehouse and becoming outdated.
Ms. Skousen stated the City Engineer estimates the entire project
can be constructed for less than the bid received if the City ne-
gotiates services, materials, and supplies on the open market.
Mr. Nichols stated the City has fulfilled its obligations under
the Public Contract Code by bidding the project twice, and this
is the second time the City has reduced the scope of work.
Councilmember Lemons asked if staff would be bringing any negoti-
ated contracts back for Council approval; he stated he has doubts
staff will be able to cut $32,000 from the project even if they
negotiate with individual contractors.
Chief Howell suggested Council adopt Resolution No. 45-88 reject-
ing the bids and, in view of Council's concern, refer the matter
back to staff for further review. Councilmember Lemons stated if
staff is able to negotiate the same project within budgeted
amounts, that should come back to Council for approval.
MOTION: Councilmember Odell moved for the adoption of Resolu-
tion No. 45-88. The motion was seconded by Councilmem-
ber Lemons and unanimously carried. (4-0)
A-11 RESOLUTION NO. 36-88 RESCINDING RESOLUTION NO. 55-81, AND
RAISING ADMINISTRATIVE SETTLEMENT AUTHORIZATION ON LIABILITY
Councilmember Lemons asked how many other cities have the $10,000
limit authorization; Mr. Henderson stated 4 out of 8 agencies
have this limit.
MOTION: Councilmember Lemons moved for adoption of Resolution
No. 36-88. The motion was seconded by Councilmember
Donnelly and unanimously carried. (4-0)
MINUTES - MORRO BA0ITY COUNCIL
REGULAR MEETING - MAY 9, 1988
PAGE 6
2. CERTIFICATES OF APPRECIATION TO DIAL -A -RIDE BUS DRIVERS
Mayor Reddell stated May 18th is "Bus Driver Appreciation Day",
and Morro Bay is celebrating by recognizing Dial -a -Ride bus
drivers; he passed out Certificates of Appreciation and shirts
which the bus drivers will wear on May 18th. Those receiving
awards were Gaelle Salver, Bobbie Karthauser, Diane Williams, Ray
Pacheco, Ann Smith, Rick Delk, Susan Lambert, Wanda Hendrix
Charlotte Olt, and Hugh Laing.
Mayor Reddell announced in honor of "Bus Driver Appreciation Day"
Dial -a -Ride will be offering free bus rides all day on May 18th.
B. PUBLIC HEARINGS, REPORTS & APPEARANCES
Mr. Henderson announced Item B-5 has been pulled from the agenda
and will not be discussed this evening.
B-1 HEARING FOR APPEAL BY PROPERTY OWNERS ON NOTICE TO ABATE
WEEDS
Mr. Nichols stated approximately 800 notices to abate weeds and
other nuisances were mailed to property owners in accordance with
Municipal Code procedures. The matter is before Council this
evening to hear appeals from the notification to abate. He rec-
ommended if appeals are received, Council refer them to staff for
investigation, and continue the hearing to the next meeting.
Mayor Reddell opened the hearing to the public.
Katherine Walling asked why Morro Bay no longer has specific burn
days? Mr. Nichols stated he did not know, and would check with
the Fire Department.
Mayor Reddell closed the hearing to the public; no action was
taken as no appeals were received.
B-2 PUBLIC HEARING ON CITY APPLICATION TO STATE DEPARTMENT OF
HOUSING AND COMMUNITY DEVELOPMENT (HUD) 1988 SMALL CITIES
COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM FOR HOUSING
REHABILITATION FUNDS ($600,000)
Councilmember Odell stated he is stepping down from discussion on
this item because of a possible conflict of interest.
Bill Farrel reviewed the City's application for $520,000 of Com-
munity Development Block Grant funds for rehabilitation of low
income household, owner -occupied and rental residences in Morro
Bay. He said the grant is similar to the one the City received
last year. Mr. Farrel thanked People's Self -Help Housing for
preparing the grant application which he believes enhances the
MINUTES - MORRO BA4ITY COUNCIL •
REGULAR MEETING - MAY 9, 1988
PAGE 7
City's chances for receiving grant funds. He stated Scott'Smith
of PSHH is present to answer questions Council may have.
Mayor Reddell opened the hearing to the public; there were no
comments and the hearing was closed to the public.
MOTION: Councilmember Donnelly moved for adoption of Resolution
No. 47-88. The motion was seconded by Councilmember
Lemons and carried with Councilmember Odell abstaining.
( 3-1 -1 )
Councilmember Odell resumed his seat on the Council.
B-3 PUBLIC HEARING ON THE
Mr. Farrel reviewed the Morro Bay Marina application to redevelop
several Embarcadero lease sites between Pacific and Marina street
ends. The initial application was for a 2-story, 31,000 square
foot commercial complex of retail shops, restaurants, and im-
provements to boat berths and fuel dock. An EIR was prepared
with focus on traffic, parking and visual impacts. In response
to the draft EIR, the applicant redesigned the project to miti-
gate visual impacts and made suggestions for off-street parking.
The Planning Commission formally accepted the EIR as complete on
May 2nd, and denied the conditional use permit request. The ap-
plicant has appealed the Planning Commission's action on the CUP,
and that hearing is scheduled before Council on May 23rd. He em-
phasized the hearing before Council tonight is on the adequacy of
the EIR, not on the conditional use permit.
Councilmember Donnelly asked if the aspect of this project re-
garding parking could be sent to the Street Advisory Committee
for their comments. Mr. Nichols stated the Street Advisory Com-
mittee has discussed the issue of on -street parking, and a memo
will be forwarded to Council soon with their comments. Mr.
Farrel stated it is the Planning Department's suggestion commit-
tees deal with topics rather than specific projects.
Sandy Merriam of Merriam Planning Associates reviewed the EIR
noting the applicant significantly redesigned the project after
the draft EIR was prepared to mitigate the impacts of the pro-
ject. He stated 173 parking spaces are required by current City
ordinances for this project. Although the redesigned project
mitigates the visual impact, it is still a significant project
and there are few further refinements that can be made and still
keep the quality of the project. He reviewed possible alterna-
tives to further mitigate the visual impact, however, noted those
measures also carry drawbacks.
MINUTES - MORRO BA4ITY COUNCIL .
REGULAR MEETING - MAY 9, 1988
PAGE 8
Councilmember Donnelly asked if the vacant lot at the corner of
Marina and Embarcadero was addressed in the EIR as far as its use
for a parking lot? Mr. Merriam stated it was not specifically,
except to say the City should examine purchase of land for public
parking.
Stan Trapp of Visalia, project Coordinator, reviewed the history
of his involvement in this lease site. He stated he intends to
submit plans for reconstructing the water facilities after this
project has been approved. He noted an economic feasibility for
this project was prepared by Morro Group. He said the character
of Morro Bay must be maintained, and they intend to encourage
water dependent uses on this site.
Jim Maul, architect, 571 Embarcadero, gave a slide presentation
of the project emphasizing the difference between the original
application, and the redesign. He stated in order to mitigate
the visual impacts he had provided for view corridors, cut cor-
ners of the structure at a 45 degree angle, and set portions of
the structure 3 feet into the ground. He stated the City's ordi-
nances should be amended to allow increased height where a devel-
oper provides window areas through a project, or cuts angles on
the corners to allow for increased public view. He also noted
the project provides for a walkway along the entire bayside of
the development.
Charles Palmer, 485 Estero, suggested the entire project be low-
ered into the ground. He objected to the developer's suggestion
to amend the zoning ordinance, and stated the project as cur-
rently designed would affect the value of bluff -top property.
Ned Rogoway, 840 Morro Avenue, stated he represents Morro Bay
Marina in dealing with aspects of the project rather than design.
He gave a lengthy presentation outlining various ways for the
City to increase parking on the Embarcadero, bluff -top, and
street ends. In total he said he located over 360 possible new
parking spaces, and stated the applicant is willing to place
money into a trust to pay for off-street parking at a time when
the City decides how to handle parking in Morro Bay.
Ed Ewing, 230 Pacific, stated the plan is good, but believed the
remodeling of berthing slips should be addressed now and not at a
later date. He was also concerned with the suggestion to elimi-
nate 2 lanes at the north end of the Embarcadero for additional
parking; he thought it might present a problem to emergency
vehicles.
Charles Hartzell, 850 Market Avenue, objected to the suggestions
by Mr. Rogoway for head -in parking on Market Avenue. He stated
he cannot visualize this project without providing for adequate
parking, and suggested the developer initiate a parking district.
MINUTES - MORRO BA0ITY COUNCIL •
REGULAR MEETING - MAY 9, 1988
PAGE 9
John Harper, 780 Market Avenue, agreed with Mr. Hartzell. He
stated Morro Bay Boulevard dead -ends on Market Avenue, and is not
an insignificant street; it is very heavily trafficked.
Albert Jorge, commercial property owner on Main Street, stated
the City should not allow any parking on streets which will
bottle -up traffic. He believed backing out of head -in parking
spaces increases accidents. He stated if the City allows bluff -
top parking for Embarcadero projects, it takes away the opportu-
nity for up -town parking needs.
Mr. Trapp stated the suggestions made by Mr. Rogoway were in re-
sponse to the requirement for 120 more parking spaces than they
are presently required to have. It is not a proposal they are
trying to force on the City.
Chris Thompson, Chamber of Commerce Manager, stated the City
needs revitalization, and the applicant is willing to work with
the City. He encouraged Council to allow the project to go
forward.
Katherine Walling asked why the City would provide parking for
private businesses.
Mary Rentz, of The Morro Group and representing the applicant,
stated she would comment on the "no -project" or reduced project
alternatives in the EIR. She stated the applicant had retained
her in 1986 to prepare a market feasibility study on this project
to determine if he could make a reasonable rate of return. She
demonstrated the analyses she made to compile the information,
and projections based on the information.
Mr. Rogoway stated, in response to a public comment, the appli-
cant has no ability to establish a parking district; the City
would have to do that. Councilmember Odell stated the applicant
owns a vacant parcel across the street from this project; why
doesn't he consider using it for part of his parking require-
ments? Mr. Rogoway did not believe it was under the same owner-
ship as the lease site. Also Council needs to decide if it wants
to use prime Embarcadero areas for parking.
Charles Palmer stated the City should request some idea of how
much water this project is going to use.
Mayor Reddell closed the hearing to the public.
Councilmember Donnelly requested the EIR consider the use of the
vacant lot across the street from the project for parking; he be-
lieved it should at least be addressed.
MOTION: Councilmember Lemons moved the EIR be brought back on
May 23rd for consideration at the same time Council
MINUTES - MORRO BA0ITY COUNCIL
REGULAR MEETING - MAY 9, 1988
PAGE 10
•
hears the appeal on this project. The motion was sec-
onded by Councilmember Donnelly and unanimously carried
by roll call vote. (4-0)
Council recessed from 9:00 p.m. to 9:15 p.m.
B-4 CONTINUED PUBLIC HEARING ON APPEAL TO PLANNING COMMISSION
Mr. Farrel reviewed Mr. Skaff's request
ing standards to allow a tandem garage
explained Mr. Skaff is appealing the
quirement that he construct the tandem
isting garage, and remove portions of
cated behind the existing garage.
for a variance from park -
at 458 Fresno Avenue. He
Planning Commission's re -
garage in front of the ex -
the tandem expansion lo-
Mayor Reddell asked the Planning Commission's reasoning for re-
quiring the tandem garage be placed in front of the existing
garage. Mr. Farrel stated the Planning Commission believed keep-
ing the back yard open would be more amenable based on com-
plaints of some of the neighbors.
Mayor Reddell opened the hearing to the public.
Ron Skaff of Burlingame stated he is representing his father, Mr.
Skaff. He stated he agrees with the staff report and has nothing
to add, but would appreciate an answer from Council this evening.
Mayor Reddell closed the hearing to the public.
MOTION: Councilmember Donnelly moved the appeal be approved to
allow the tandem garage to be constructed in the back
yard. The motion was seconded by Councilmember Odell
and unanimously carried. (4-0)
Mr. Farrel stated he would prepare a formal resolution for Coun-
cil adoption at their next meeting.
B-5 RESOLUTION NO. 39-88 ORDERING PLACED ON THE BALLOT OF THE
NEXT CITY ELECTION A MEASURE TO ESTABLISH A GROWTH AND WATER
MANAGEMENT ORDINANCE
This item was pulled.
I.
[fi�Mi�1Mf:V1ir�/�ut�3�Yili�i��l�i�a[�7 �ut�il�l'4::►VY�J �u17�GItlJS!_�i�YS�:I�l�7
Mayor Reddell stated since this matter refers to Measure F, he
will step down from discussion because of a possible conflict of
MINUTES - MORRO BA0ITY COUNCIL
REGULAR MEETING - MAY 9, 1988
PAGE 11
interest. Councilmembers Donnelly and Lemons also stepped down
because of a possible conflict.
Ms. Skousen stated the normal procedure in this case would be to
select names from a hat to form a Council quorum to enact busi-
ness. However, she has been informed by the Fair Political Prac-
tices Commission that because Councilmember Sheetz is absent by
her own choosing (vacation rather than an unavoidable illness or
other emergency), only one name can be drawn. This means a quo-
rum cannot be formed since only Councilmember Odell remains
seated, therefore this item cannot be considered this evening.
Randy Ruff, proponent of the initiative, distributed written in-
formation to Council and said he was going to make a statement.
Ms. Skousen told him he could not make a statement; the item is
off agenda. Mr. Ruff continued to speak asking the matter return
at the next meeting when Councilmember Sheetz is present.
Councilmembers Donnelly, Lemons and Mayor Reddell resumed their
seats.
C. UNFINISHED BUSINESS
C-1 ORDINANCE NO. 324 AMENDING TITLE 17 OF THE MORRO BAY MUNICI-
PAL CODE SECTIONS 17.320.090 AND 17.40.030 (E) AND OFFICIAL
ZONING MAP (CASE NO. ZOA 01-88 LOCAL COASTAL PROGRAM LAND
USE DESIGNATION ZONING AMENDMENT; WILLIAMS BROTHERS MEASURE
B) - SECOND READING AND ADOPTION
Mr. Henderson stated Ordinance No. 324 is before Council this
evening for second reading and adoption; the ordinance estab-
lishes the land -use designation and zoning language for the
Williams Brothers property. Staff will forward the ordinance to
the Coastal Commission for certification after Council adoption.
MOTION: Councilmember Donnelly moved Ordinance No. 324 be read
by title and number only. The motion was seconded by
Councilmember Odell and unanimously carried. (4-0)
Mr. Henderson read Ordinance No. 324 by title and number only.
MOTION: Councilmember Odell moved for the adoption of Ordinance
No. 324 as second and final reading. The motion was
seconded by Councilmember Donnelly and unanimously
carried. (4-0)
C-2 REQUEST BY MORRO BAY FUEL DOCK, INC. TO RETAIN
)N LEASE SITE
Mr. Davis stated staff had contacted Morro Bay Fuel Dock regard-
ing the City's last offer regarding this lease site pursuant to
MINUTES - MORRO BA0ITY COUNCIL
REGULAR MEETING - MAY 9, 1988
PAGE 12
Council direction. The Fuel Dock has reassessed their position
and have decided not to enter into a new City Master Lease, but
retain their current County Lease which expires in 2008; they
will no longer dispute the appraisal or rent. They have assured
Mr. Davis they will make the rents current as soon as their Pres-
ident or Past -President have funds transferred.
MOTION: Councilmember Lemons moved Council authorize staff to
request rent payment and revetment repairs by Morro Bay
Fuel Dock, Inc. pursuant to the terms and conditions of
their County lease. The motion was seconded by Coun-
cilmember Odell and unanimously carried. (4-0)
C-3 CONSIDERATION OF FINANCING FOR SAN BERNARDO CREEK DAM FEASI-
BILITY
Councilmember Lemons suggested Council defer action on this item
until Councilmember Sheetz returns; Council is in receipt of com-
munication from Councilmember Sheetz with this request.
MOTION: Councilmember Lemons moved this item be deferred until
Councilmember Sheetz returns. The motion was seconded
by Councilmember Donnelly and unanimously carried.
(4-0)
D. NEW BUSINES
D-1 RESOLUTION NO. 42-88 REJECTING BIDS AND STATING FINDINGS OF
FACT FOR THE USE OF DAY LABOR - WATERLINE REPLACEMENT
PROJECT NO. PW 87-10
Mr. Nichols explained this is Phase III of the City's waterline
replacement program using City forces. He said the Program is
approximately 77% complete with 6 of the original 26 miles re-
maining to be replaced.
Mr. Nichols reviewed Public Contract Code Section 20167 which al-
lows the City to find it can perform the project more economi-
cally with City forces than letting the project to bid. In ac-
cordance with the Public Contract Code, bids were solicited and
the low bid received in the amount of $476,140 was from Coastal
Earthmovers. According to staff estimates, City crews can per-
form the same work for $331,638. The Resolution rejecting bids
and stating findings of fact for the use of day labor must be
adopted by a 4/5ths vote of Council.
Councilmember Lemons asked if there is a problem in holding this
item until the next meeting when Councilmember Sheetz will be
present in view of the 4/5th vote requirement. Mr. Nichols
stated the only requirement is the bid must be awarded within 30
days or the contractor is not required to hold to bid.
MINUTES - MORRO BA)
COUNCIL •
REGULAR MEETING M Y 91 1988
PAGE 13
Mr. Nichols said his staff report states the low bidder, Coastal
Earthmovers, has not previously worked as a general contractor
for a public agency; he would like to retract that statement as
he has since been in contact with the contractor who has given
him information to the contrary.
W. R. Dildine of the Construction Industry Force Account Council,
stated he represents some local contractors in the area who are
upset with the City's practice, of bidding projects, and then do
them in-house. He noted the time, money, and effort a contrac-
tors puts into a bid only for the City to decide ahead of
time they intend to do the project themselves. He questioned the
City's requirement for an acceptable bid bond noting the City
specifications make no mention of a rating for the bonding com-
pany. He also said the City is requiring too much money on the
bond in view of the difference between the low and second -lowest
bid.
Mr. Dildine provided the City with a copy of the Cost Accounting
Policies and Procedures Manual of the California Uniform Public
Construction Cost Accounting Commission and reviewed the City's
justification for being able to construct the project more eco-
nomically in-house. He pointed out what he considered to be in-
adequacies, and areas where bidding contractors could do items
cheaper than the City.
Steve Souza, contractor, stated it costs money for a contractor
to put a bid together. He said the staff report does not reflect
true costs, and the Contractor's Board is discussing what kind of
action they can take against the City.
Councilmember Donnelly asked if it is normal for the City to have
a member of the City crews oversee a contractor's work; Mr.
Nichols stated staff assists a contractor in locating lines and
meters.
Ms. Skousen stated the Cost Accounting Manual presented by Mr.
Dildine has not been adopted and is not applicable to the City;
their policies are extremely expensive to carry out. The Legis-
lature recognizes small cities' inability to comply with these
procedures, and provides for them.
Mr. Nichols stated the City has a history of awarding contracts
each time a project goes to bid, with the exception of the
pipeline replacement program. The City's preference to construct
this program with City crews saves the taxpayers of Morro Bay
money.
MOTION: Councilmember Lemons moved the Public Works Director
review and respond to some of the points raised, and
this matter return at the May 23rd Council meeting.
MINUTES - MORRO BA0ITY COUNCIL
REGULAR MEETING - MAY 9, 1988
PAGE 14
The motion was seconded by Councilmember Donnelly and
unanimously carried. (4-0)
Mr. Dildine requested a copy of the staff report provided to
Council at their next meeting.
D-2 RECOMMENDATION FROM HARBOR ADVISORY BOARD ON PRIORITY WORK
TASKS
Mr. Davis the Harbor Advisory Board, in accordance with Council
direction, has submitted a list of items for inclusion in the
Harbor Master Planning process. These are harbor entrance
safety; Coleman Drive/Morro Rock Specific Plan, Coleman Drive
revetment and Morro Rock picnic areas; protection/enhancement of
commercial fishing industry; liveaboards in Morro Bay and Back
Bay; sedimentation build-up in Bay; and waterfront restrooms.
Mr. Davis also reviewed action taken to date on the items listed.
There was considerable discussion regarding the issue of live-
aboards; Mr. Davis estimates 147 boats being used as residences
in the City and Back Bay. He noted liveaboards are not required
comply with the City's water equivalency program or deal with
parking; they have impact on both of these items. He said repre-
sentatives from the State Lands Commission will be in Morro Bay
later this month to review the situation.
Mayor Reddell asked about the demolition of the restroom between
Rose's Landing and the Fish Bowl. Mr. Davis stated the City is
attempting to exchange a parcel of land for another on the Embar-
cadero in order to build a restroom to replace the one on the Em-
barcadero at the end of Morro Bay Boulevard. Also, the Jim
George project next to the Galley will be providing restrooms to
the public in the near future.
Council discussed the City's current ordinance governing live-
aboards; Ms. Skousen stated the current ordinance is enforceable,
but not popular. Enforcement would require the City to board
vessels to determine if they contained holding tanks. The City
has this right if it suspects violation; if the vessel owner re-
fuses entry, the City would have to obtain a search warrant to
determine compliance. She stated staff will enforce the ordi-
nance if Council so directs.
Council indicated they were pleased with the Master Plan priority
list presented by the Harbor Advisory Board.
D-3 CONSIDERATION OF CITY STORM DRAIN MASTER PLAN
Mr. Nichols stated Council initiated a Storm Drain Master Plan
during a mid -year budget review in January 1985. The Plan has
been prepared by John L. Wallace and Associations and has ob-
MINUTES - MORRO BA0ITY COUNCIL
REGULAR MEETING - MAY 9, 1988
PAGE 15
tained the approvals of the Street Advisory Committee and the
Planning Commission. It will serve as a support document for im-
plementation of the General Plan and Local Coastal Plan, and in-
corporates current land use and development policies into an
analysis of storm drainage needs to provide for present and fu-
ture infrastructure capacity. He recommended Council adopt Reso-
lution No. 44-88 approving the Plan.
Mayor Reddell asked if the Plan will be used for future develop-
ments. Mr. Nichols stated it will be used by staff to recommend
conditions of approval for future development; it provides the
technical basis for making the recommendations.
MOTION: Councilmember Odell moved for the adoption of Resolu-
tion No. 44-88. The motion was seconded by Councilmem-
ber Donnelly and unanimously carried. (4-0)
E. CLOSED SESSION
MOTION: Councilmember Odell moved the meeting adjourn to Closed
Session. The motion was seconded by Councilmember
Donnelly and unanimously carried. (4-0)
Mayor Reddell announced Council is adjourning to Closed Session
to discuss real property negotiations in accordance with Gov-
ernment Code Section 54956.8 regarding Domenghini Flat Lands;
pending litigation in accordance with Government Code Section
54956.9(a) regarding Barket vs. City of Morro Bay and Olsen vs:
City of Morro Bay; and labor relations in accordance with Govern-
ment Code Section 54957.6(a).
The meeting adjourned to Closed Session at 10:42 p.m. and re-
turned to regular session at 11:00 p.m.
F. ADJOURNMENT
MOTION: Councilmember Lemons moved the meeting be adjourned to
Monday, May 16, 1988 at 5:00 p.m. in the City Hall Con-
ference Room to continue the Closed Session regarding
labor relations in accordance with Government Code Sec-
tion 54957.6(a). The motion was seconded by Coun-
cilmember Donnelly and unanimously carried. (4-0)
The meeting adjourned at 11:00 p.m.
Recorded by:
ARDITH DAVIS
City Clerk
NOTICE OF SPECIAL MEETING
NOTICE IS HEREBY GIVEN that pursuant to the authority
vested in me as Mayor in accordance with Government Code
Section 54956, and Municipal Code Section 2.08.110, I hereby
call a Special Meeting of the Morro Bay City Council to be
held on Wednesday, April 27, 1988 at 3:30 p.m., in the
Veterans Memorial Hall, 209 Surf St., Morro Bay, California.
The purpose of the Special Meeting is to consider the
following:
1. Study Session on Downtown Economic Development
2. Consideration of Setting Ballot Measure Text and
Ordering City Measure on the November 1988 General
Municiple Election Ballot to Establish a City of
Morro Bay Growth and Water Management Ordinance
NOTICE IS FURTHER GIVEN that at said meeting any person
may appear and express their views for, against, or in
modification of said agenda items and actions.
DATED: April 25, 1988
DALE REDDELL, Mayor
City of Morro Bay, California
� &01� a�
By: ARDITH DAVIS, City Clerk
MINUTES - MORRO BAY CITY COUNCIL
SPECIAL MEETING - APRIL 27, 1988
VETERANS MEMORIAL HALL - 3:30 P.M.
Mayor Reddell called the meeting to order at 3:37 p.m.
PRESENT: Dale Reddell
Paul Donnelly
John Lemons
Jeff Odell
Rose Marie Sheetz
ABSENT: None
STAFF: Gary Napper
Judy Skousen
Bill Farrel
Nick Nichols
Ardith Davis
PUBLIC COMMENT
None
Mayor
Councilmember
Councilmember
Councilmember
Councilmember
City Administrator
City Attorney
Community Develop. Dir.
Public Works Dir.
City Clerk
1. STUDY SESSION ON DOWNTOWN ECONOMIC DEVELOPMENT
Mr. Napper stated Council has previously conducted a public hear-
ing on the report prepared by Applied Development Economics re-
garding a study of Morro Bay's economic development opportuni-
ties. Copies of the Report were distributed to various civic
groups in the community, and this study session was scheduled to
discuss further ways to enhance downtown economic development.
Chris Thompson, Chamber of Commerce Manager, stated the Chamber
has formed an Economic Development Committee to work with the
City to inject vitality in the community. The Committee has done
a survey of the downtown area; Mr. Thompson distributed copies of
the survey to Council and staff. He introduced Galen Ricard of
Ricard Marketing Services who had compiled the survey and its
tentative results.
Ms. Ricard stated the survey presented to Council is very prelim-
inary as only 25 have been returned thus far. She noted the
Chamber's Economic Development Committee's objective is to iden-
tify issues and conditions affecting the growth and success of
downtown businesses, and the survey is structured to assess that
from a business person's perspective. She reviewed the prelimi-
nary findings emphasizing they are based only on approximately 25
businesses thus far. Ms. Ricard noted recent market research re-
veals 184 businesses in Morro Bay gross over $150,000, as stated
by Kathi Cook of Mid -State Bank and Chair of the Economic Devel-
opment Committee.
MINUTES - MORRO BAAITY COUNCIL •
SPECIAL MEETING - APRIL 27, 1988
PAGE 2
Chris Thompson remarked he hopes this is the first in a series of
workshops regarding this subject, and stressed the Chamber's de-
sire to work with the City to improve the economic conditions in
downtown Morro Bay. He stated the Chamber is in contact with the
City of Hanford who has worked with the California Main Street
Program, and members of the Chamber's committee will be traveling
to Hanford soon to see first hand how the program works.
Mr. Thompson stated there are concerns regarding the downtown
parking standards, with members of the downtown area of the opin-
ion the parking problem is not as serious as originally thought.
He said the City could help downtown improvement by relieving
business owners of parking requirements and some off -site im-
provements when expanding or redeveloping.
Councilmember Sheetz asked Mr. Thompson what his perception was
of the number -one problem in downtown Morro Bay; Mr. Thompson
stated the traffic flows on Morro Bay Boulevard too fast, and es-
thetics need improving.
Councilmember Lemons questioned the figures regarding 184 busi-
nesses grossing over $150,000 each; Ms. Cook stated they received
that information through Dun & Bradstreet, and do not have de-
tails on it yet.
There was discussion regarding advertising Morro Bay and empha-
sizing what is here already, and the uniqueness of Morro Bay.
There was further discussion regarding parking; Mr. Thompson
stated it is San Luis Obispo's perspective that congestion is
healthy for business.
Dave Tope stated he did not believe downtown Morro Bay has a
parking problem. He said there are business people who want to
improve their businesses, but do not want to have to buy off-
street parking spaces to do so.
Councilmember Lemons asked if it is possible or legal to estab-
lish a district in the City where even though zones are differ-
ent, uses might be the same and parking requirements might be
different? Then perhaps at a later date when there is a need for
parking, a parking district could be established. Ms. Skousen
said Council could do that with appropriate findings, however, it
should be for a specific period of time.
Mr. Napper stated staff is currently working on a downtown park-
ing plan which should be available for Council review in the near
future. In the interim, staff could support a temporary waiver
of parking standards in the downtown area if Council will support
a long-term parking district plan.
Tony Rodriques, 890 Morro Avenue, suggested vacant lots around
the downtown area be purchased for parking lots; if the City
eases parking requirements, all empty lots will be developed with
buildings, removing their availability for off -site parking lots.
MINUTES - MORRO BAAITY COUNCIL •
SPECIAL MEETING - APRIL 27, 1988
PAGE 3
Len Carpenter stated the Chamber's survey was very well received.
He said there is a perception in the business community the local
people do not trade locally, and the City needs to stress its
"economicness". Parking should be provided on the peripheral of
the downtown area, and downtowns need congestion.
Mayor Reddell discussed the success of the Golden Hinde's visit
to Morro Bay, and asked Mr. Thompson if other events of this na-
ture are being encouraged. Mr. Thompson stated the Chamber is in
the process of doing that right now, and noted the Chamber has
discovered if it has something specific to promote, rather than
the usual things advertised about Morro Bay, the tourist response
is much greater.
Jerry Hempenius stated the City should be encouraging the use of
demographic information and market analysis which would give us
the ability to project future patterns of income and population
of employment.
Mayor Reddell questioned staff regarding amending the ordinance
as pertains to parking requirements. Bill Farrel stated staff
has almost completed the framework on the parking plan, and could
return an ordinance to Council shortly. Ms. Skousen requested
Council at least allow a month to prepare the ordinance. Mayor
Reddell suggested the ordinance eliminate parking requirements on
new construction or remodeling in the downtown area; he also sug-
gested there be a trade-off in the ordinance in the form of re-
quiring upgrading the appearance of business structures.
Nancy Stacy stated she had recently made considerable facade im-
provements to her structure, and hoped she would not be required
to do so again with the additional construction she is contem-
plating. Mr. Napper suggested other public amenity improvements
could be done instead (e.g., benches; trees).
There was some discussion regarding diagonal parking and one-way
streets. Councilmember Sheetz did not favor one-way streets.
Councilmember Lemons believed there is a large portion of the
downtown area which is zoned visitor -serving and currently has
non -conforming residential uses. He wondered if there is too
much visitor -serving zoning in relation to the people's overall
concept about the community and balance of residential.
Councilmember Lemons asked Mr. Thompson how many surveys they had
distributed; Mr. Thompson stated 175, with approximately 25 re-
sponses so far.
Council indicated they were interested in holding other meetings;
Mr. Thompson stated he would work with Mr. Napper and schedule
the next meeting, preferably in the evening.
MINUTES - MORRO BAAITY COUNCIL •
SPECIAL MEETING - APRIL 27, 1988
PAGE 4
Nancy Stacy commented she felt the City was anti -business due to
its restrictions and hindrance of new development. Tony
Rodriques urged the Council to require new businesses and others
to pay $5,000 per required parking space into a City fund for the
purpose of providing public parking.
2.
MEASURE TEXT AND ORDERING
BALLOT TO ESTABLISH A CITY OF MORRO BAY GROWTH AND WATER
Councilmember Lemons stated he had proposed this item and would
like to withdraw it at this time; he has a revision he would like
to make before consideration by Council.
MOTION: Councilmember Lemons moved Council pull this item from
the agenda. The motion was seconded by Councilmember
Sheetz and unanimously carried. (5-0)
3. ADJOURNMENT
MOTION: Councilmember Odell moved the meeting be adjourned.
The motion was seconded by Councilmember Sheetz and
unanimously carried. (5-0)
The meeting adjourned at 5:30 p.m.
Recorded by:
��7
ARDITH DAVIS
City Clerk
MORRO BAY
CITY COUNCIL
AGENDA
REGULAR MEETING - APRIL 25, 1988
VETERANS MEMORIAL HALL - 6:00 P.M.
ROLL CALL
INVOCATION
PLEDGE OF ALLEGIANCE
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 by standing. When recognized by the Mayor, please
come forward to the podium and state your name and address for the record.
Comments should normally be limited to three minutes.
DECLARATION OF FUTURE AGENDA ITEMS
A. CONSENT CALENDAR
Unless an item is pulled for separate action by the City Council, the fol-
lowing actions are approved without discussion.
A-1 CITY COUNCIL MINUTES OF THE REGULAR MEETING OF APRIL 11, 1988, AND THE
ADJOURNED REGULAR MEETING OF APRIL 18, 1988
A-2 EXPENDITURE REPORT - MARCH 1988
A-3 STATEMENT OF INVESTMENTS - MARCH 1988
A-4 NOTICE OF COMPLETION, PROJECT PW 87-04; STREETS CHIP SEAL PROJECT
A-5 STREET ADVISORY COMMITTEE RECOMMENDATION TO PROHIBIT ON -STREET PARKING
AT KENNEDY WAY AND QUINTANA ROAD INTERSECTION; RESOLUTION NO. 33-88
A-6 RESOLUTION NO. 27-88 APPROVING CONSENT TO SUBLEASE AGREEMENT ON POR-
TIONS OF LEASE SITE 80-81W TO MORRO BAY SEAFOOD (MORRO BAY FISHERIES,
MASTER LESSEE)
A-7 AWARD OF CONTRACT, PROJECT PW 87-12, STREET OVERLAY OF KERN AVENUE
A-8 PROCLAMATION DECLARING THE MONTH OF MAY 1988 AS "NEIGHBORHOOD WATCH
MONTH"
A-9 PROCLAMATION DECLARING THE WEEK OF MAY 15-21, 1988 AS "POLICE OFFICERS
MEMORIAL WEEK"
A-10 PROCLAMATION DECLARING THE WEEK OF MAY 8-14, 1988, AS "SMALL BUSINESS
WEEK"
1
B. PUBLIC HEARINGS, REPORTS & APPEARANCES
B-1 U.S. ARMY CORPS OF ENGINEERS' PRESENTATION OF FINAL RECONNAISSANCE
REPORT AND FEASIBILITY STUDY COST -SHARING AGREEMENT FOR MORRO BAY
HARBOR ENTRANCE PROJECT
B-2 CONSIDERATION OF DRAFT ENVIRONMENTAL IMPACT REPORT ON TWIN BRIDGES
REPLACEMENT PROJECT
B-3 CASE NO. ZOA 01-88, LOCAL COASTAL PROGRAM LAND USE DESIGNATION ZONING
AMENDMENT (WILLIAMS BROTHERS/MEASURE B); ORDINANCE NO. 324 AMENDING
TITLE 17 OF THE MORRO BAY MUNICIPAL CODE SECTIONS 17.32.090 AND
17.40.030(E) AND OFFICIAL ZONING MAP
B-4 APPEAL HEARING TO PLANNING COMMISSION RESOLUTION NO. 06-88 CONCERNING
CASE NO. VARIANCE 02-88 (SKAFF, APPELLANT, 458 SHASTA AVENUE)
B-5 ORDINANCE PROHIBITING THE CONSUMPTION OF ALCOHOLIC BEVERAGES IN CITY
PARKS, COMMUNITY BUILDINGS, AND FACILITIES WITHOUT A USE PERMIT;
AND/OR ORDINANCE PROHIBITING THE CONSUMPTION OF ALCOHOLIC BEVERAGES IN
PUBLIC
B-6 RESOLUTION NO. 34-88 SETTING BALLOT MEASURE TEXT AND ORDERING CITY
MEASURE (ORDINANCE NO. 316 ESTABLISHING AFFORDABLE HOUSING DENSITY
BONUSES AND INCENTIVES), AND RESOLUTION NO. 35-88 SETTING BALLOT
MEASURE TEXT AND ORDERING INITIATIVE MEASURE (ORDINANCE AMENDING THE
MORRO BAY LAND USE PLAN AND APPLICABLE ZONING ORDINANCES IN ORDER TO
ESTABLISH A PROMOTE AFFORDABLE HOUSING FOR MORRO BAY'S SENIOR
CITIZENS) ON THE NOVEMBER 1988 GENERAL ELECTION BALLOT FOR ELECTORATE
CONSIDERATION
C. UNFINISHED BUSINESS
C-1 CONSIDERATION OF NEW LEASE AGREEMENT FOR LEASE SITE 30W-33W (MORRO BAY
FUEL DOCK, INC.)
C-2 STATUS REPORT ON EVALUATION OF DOMENGHINI FLATS WELL WATER PROJECT
C-3 CITY POSITION ON AB 2802, CABLE TV FRANCHISES AND POSSESSORY INTEREST
TAXES
D. NEW BUSINESS
NONE
E. CLOSED SESSION
E-1 GOVERNMENT CODE SECTION 54956.9(A), PENDING LITIGATION, KEYOTO-NATALIE
VS. CITY OF MORRO BAY
K
2
E-2 GOVERNMENT CODE SECTION 54957.6(A), LABOR RELATIONS NEGOTIATIONS
E-3 GOVERNMENT CODE SECTION 54956.8, REAL PROPERTY NEGOTIATIONS
A. DOMENGHINI FLATS
B. MORRO BAY FUEL DOCK, INC.
F. ADJOURNMENT
COPIES OF STAFF REPORTS OR OTHER PUBLIC DOCUMENTATION
RELATING TO EACH ITEM OF BUSINESS REFERRED TO ON THIS
AGENDA ARE ON FILE IN THE OFFICE OF THE CITY CLERK AND
AVAILABLE FOR PUBLIC INSPECTION AND REPRODUCTION AT
COST.
3
0
MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING - APRIL 25, 1988
VETERANS MEMORIAL HALL - 6:00 P.M.
Mayor Reddell called the meeting to order at 6:00 p.m.
ROLL CALL
PRESENT: Dale Reddell
Paul Donnelly
John Lemons
Jeff Odell
Rose Marie Sheetz
ABSENT: None
STAFF: Gary Napper
Judy Skousen
Alan Davis
Bill Farrel
Forrest Henderson
Dave Howell
Nick Nichols
Steve Wolter
Ardith Davis
Mayor
Councilmember
Councilmember
Councilmember
Councilmember
City Administrator
City Attorney
Harbor Director
Community Develop. Dir.
Asst. to City Admin.
Police Chief
Public Works Dir.
Recreation & Parks Dir.
City Clerk
Ken Hutchinson of the Coast Christian Fellowship gave the invoca-
tion, and Mayor Reddell led the Pledge of Allegiance.
PUBLIC COMMENTS
None.
DECLARATION OF FUTURE AGENDA ITEMS
None.
A. CONSENT CALENDAR
A-1 CITY COUNCIL MINUTES OF THE REGULAR MEETING OF APRIL 11
1988. AND THE ADJOURNED REGULAR MEETING OF APRIL 18. 1988
Mr. Napper recommended Council approve the minutes as submitted.
A-2 EXPENDITURE REPORT - MARCH 1988
Mr. Napper recommended Council approve the Expenditure Report.
A-3 STATEMENT OF INVESTMENTS - MARCH 1988
Mr. Napper recommended Council receive the Statement for file.
MINUTES - MORRO BA0ITY COUNCIL •
REGULAR MEETING - APRIL 25, 1988
PAGE 2
A-4 NOTICE OF COMPLETION, PROJECT PW 87-04; STREETS CHIP SEAL
PROJECT
Mr. Napper recommended Council accept the project as complete,
and authorize the City Clerk to sign and record the Notice of
Completion.
Councilmember Sheetz asked questions regarding street sweeping
clean-up after the project; Mr. Nichols stated the contractor has
already completed the clean-up. Councilmember Sheetz did not be-
lieve chip sealing is a very good method. She asked how long the
maintenance will last; Mr. Nichols stated 5-plus years.
A-5
Mr. Napper recommended Council adopt Resolution No. 33-88, and
instruct staff to evaluate and prepare a report outlining the
scope and costs to conduct a traffic circulation study of the
Community Center/downtown vicinity.
A-6 RESOLUTION NO. 27-88 APPROVING CONSENT TO SUB
ON PORTIONS OF LEASE SITE 80-81W TO MORRO BAY
BAY FISHERIES. MASTER LESSEE)
Mr. Napper recommended Council adopt Resolution No. 27-88, and
authorize the Mayor to sign the Addendum to Lease.
Councilmember Sheetz asked if the agreement to comply with the
code maintenance violations has been signed; Ms. Skousen stated
the Lessee has signed an agreement regarding the revetment, and
is currently proceeding on the minor violations.
A-7 AWARD OF CONTRACT. PROJECT PW 87-12. STREET OVERLAY OF KERN
AVENUE
Mr. Napper recommended Council award the contract for the project
to Union Asphalt, Inc. of Santa Maria, and authorize staff to ne-
gotiate two project change orders; fog sealing ($2,000), and re-
flective pavement markers ($900).
Councilmember Lemons asked if the change order items were neces-
sary to the project, and if center -line striping was included.
Mr. Nichols stated he had discussed these changes with Mr.
Axelson, and the base bid included striping.
A-8 PROCLAMATION DECLARING THE MONTH_ OF MAY 1988 AS
"NEIGHBORHOOD WATCH MONTH
Mr. Napper recommended Council authorize the Mayor to sign the
Proclamation.
MINUTES - MORRO BAAITY COUNCIL
REGULAR MEETING - APRIL 25, 1988
PAGE 3
A-9 PROCLAMATION DECLARING THE WEEK OF MAY 15-
Mr. Napper recommended Council authorize the Mayor to sign the
Proclamation, and order flags to half-mast on May 17th.
A-10 PROCLAMATION DECLARING THE WEEK OF MAY 8-14, 1988, AS "SMALL
BUSINESS WEEK
Mr. Napper recommended Council authorize the Mayor to sign the
Proclamation.
MOTION: Councilmember Lemons moved for the approval of the Con-
sent Calendar. The motion was seconded by Councilmem-
ber Donnelly and unanimously carried. (5-0)
B. PUBLIC HEARINGS, REPORTS & APPEARANCES
B-1 U.S. ARMY CORPS OF ENGINEERS' PRESENTATION OF FINAL RECON-
Tadahiko Ono, Colonel, U.S. Army Corps of Engineers, stated he
would be presenting the results of the Reconnaissance Study for
improvement to the Morro Bay Harbor entrance. He introduced his
staff in attendance who have worked on the study: Robert Joe,
Chief of Planning Division; Steve Fine, Chief of Coastal Re-
sources Branch; Nora Kim, Project Manager; Alan Alcorn, Acting
Chief North Coast Section; Art Shak, Coastal Engineer, Engineer-
ing Division; and Jared Miller, Public Affairs Officer.
Col. Ono reviewed the responsibilities of the Army Corps of Engi-
neers, and outlined his presentation. He stated the steps to de-
velop a project are to recognize a need, request Federal action
through respective Congressmen, and a study process which in-
volves a reconnaissance study phase, and the feasibility study.
This Reconnaissance Report identified the existing problems and
needs, and suggests a range of potential solutions. The Feasi-
bility Study will analyze and select the best project for the
problem.
Col. Ono reviewed the history of Morro Bay Harbor and efforts to
maintain and rehabilitate the entrance over the years. He out-
lined the benefits and costs on six different alternatives con-
sidered in the Reconnaissance Study. The dredging alternatives
appear most feasible because of lower costs ranging from $2.8 to
$3.25 million; the breakwater alternatives range from $10 to $25
million. Project 5 involves extending and deepening the entrance
channel to -40 feet; Project 6 is extending, widening and deepen-
ing the entrance channel to -40 feet. The annual debt service
for Project 6 is $291,000 with annual benefits of $970,000 re-
sulting in a benefit/cost ratio of 3.33.
MINUTES - MORRO BA0ITY COUNCIL •
REGULAR MEETING - APRIL 25, 1988
PAGE 4
Col. Ono explained the cost -sharing required for non-federal par-
ticipants; in the City's case, it will be 10% cash up -front with
an additional 10% which can be paid over 30 years. The second
10% can also be paid as in -kind costs for lands, easements and
rights -of -way. The City's total estimated share for Project 6 is
$508,000.
Before a project can be approved, it is necessary to conduct the
Feasibility Study which is estimated to cost $412,000; the City's
share is 50%, or $206,000, and $103,000 of that can be credited
as in -kind services. The next step is for the City and the Corps
to negotiate a Cost -Sharing Agreement for the Feasibility Study.
After the study is complete and the project authorized by
Congress, it can go to bid. It is estimated the feasibility
study can be completed by 1990, and construction could begin as
early as 1991.
Councilmember Sheetz commented on the length of time it takes to
begin construction and asked if it was possible to speed things
up. Col. Ono stated his staff had explored every possible avenue
to fund a project and begin a project as soon as possible. The
alternatives set forth are the best they were able to come up
with.
Councilmember Sheetz asked if the harbor mouth will have to be
closed during the construction; Robert Joe stated the dredging
operation will be done section by section so that it will not
have to be closed. He also emphasized the 1991 date to begin
construction is very optimistic; it could be 1992 or 1993.
Councilmember Odell questioned if this project couldn't be con-
sidered as a continuance of the maintenance dredging? Col. Ono
stated the Federal responsibilities under which the Corps oper-
ates are very specific and may not be exceeded. They cannot be-
gin a project and decide as they progress to do additional work.
The project must be studied ahead of time and the actual project
set forth and approved by Congress.
Mayor Reddell opened the hearing to the public.
Nelson Sullivan stated the waves in the harbor entrance are
sneaky, and break when you least expect it. He asked if the
Corps had considered placing a warning buoy at the entrance to
alert those crossing the entrance when there is danger. Steve
Fine stated they have not, but would look into it.
Mayor Reddell closed the hearing to the public.
Mr. Napper asked if the costs in the Reconnaissance Study for
construction in 1991 are 1991 dollars; Col. Ono stated no, infla-
tion has not been added to the figures. Mr. Napper also asked
how imperative it is to negotiate an Agreement for the Feasibil-
ity Study before the end of April; Mr. Joe stated the timeperiod
could be extended 2-4 weeks, but if it is going to be months,
MINUTES - MORRO BAOITY COUNCIL •
REGULAR MEETING - APRIL 25, 1988
PAGE 5
funding for other projects would take priority and this one would
have to wait.
Mr. Napper stated the staff recommendation is the City become the
local sponsor on the Feasibility Study, and he requested autho-
rization to negotiate with the Corps on a Cost -Sharing Agreement.
He also noted the City would inevitably be the co-sponsor on the
project as well.
MOTION: Councilmember Lemons moved Council authorize staff to
expeditiously negotiate a Cost -Sharing Agreement for a
Feasibility Study on a Harbor entrance project with the
Corps of Engineers. The motion was seconded by Coun-
cilmember Sheetz and unanimously carried. (5-0)
Mayor Reddell thanked the Army Corps of Engineers staff for their
presentation and attendance at the Council meeting, and stated
the City is looking forward to working with them.
B-2 CONSIDERATION OF DRAFT ENVIRONMENTAL IMPACT REPORT ON TWIN
BRIDGES REPLACEMENT PROJECT
Nick Nichols briefed Council on the history of this joint project
between the City and County. He said the County is the lead
agency for the project and has committed $100,000 to construc-
tion; the City has set aside $171,520. He noted the Federal
Highway Administration will provide 80% of the cost of the pro-
ject; this grant is administered through the local CalTrans
office.
George Protopapas, County Engineer, introduced County staff Stan
Saude, design engineer for the Twin Bridges Project; Terri
Madison, Environmental Coordinator; and Bill Coy, 2nd District
Supervisor. He stated Supervisor Coy has spearheaded County im-
petus on this project.
Mr. Protopapas stated this is one of the most complicated pro-
jects the County Engineer's office has ever administered; this is
due to the fact it is a joint project, the property lies in the
district of various governmental agencies who are required to
comment on the permit process, and the County is requesting Fed-
eral Bridge Replacement Funds for the project. He outlined the
steps yet to be accomplished before construction begins, and
stated the agreement between the City and County will have to be
redrafted because costs have increased considerably since the
original agreement was signed.
Stan Saude reviewed the project alternatives; under consideration
is constructing a bridge between 260-460 feet long. An 800 foot
bridge is optimum because the longer a bridge, the less its im-
pact on the environment; however, a bridge of that length will
cost $5 million. The 260-460 foot bridge is estimated at $2.5-
$3.1 million; the environmental impacts are greater because fill
is needed for road approaches. With the cumbersome permit pro-
MINUTES - MORRO BA*ITY COUNCIL •
REGULAR MEETING - APRIL 25, 1988
PAGE 6
cess the County is required to pursue, it will probably be 1991
before construction begins. A last alternative is "No Project",
but that option continues current siltation and environmental
problems.
Terri Madison, environmental specialist working on this project,
stated a joint EIR/EIS is required because of the Federal funding
involved. She explained the process, begun in 1986, completed to
date. She said the significant impacts identified by the EIR are
the impacts to the wetlands habitat; the EIR suggests a concep-
tual mitigation plan utilizing the best construction techniques
but there will still be some disturbance. The benefits of the
project include improved traffic circulation and reduced accident
occurrence.
Mayor Reddell asked if there were any protests to the EIR; Ms.
Madison stated there were no comments opposing the project.
Councilmember Odell asked if restoration of the creek bed to its
former depth was considered to the "no -project" alternative. Mr.
Saude stated no, in consideration of the flood -plain flows they
were designing for.
Mayor Reddell asked what the ultimate costs would be; Mr.
Protopapas stated they will not be making any more estimates un-
til they have determined the exact project. There are sufficient
funds budgeted between the City and County to proceed through the
design phase of the project.
Councilmember Donnelly asked if a bridge shorter than 260 feet
was considered; Mr. Protopapas stated staff is attempting to
build the most economical project, however, he believed a 400-
foot bridge must be the minimum constructed for a project meeting
50-year flood design criteria in order to gain the approval of
the Federal agencies involved in the permit process.
Councilmember Lemons commented that any project, no matter how
small, is better than the current situation. Mr. Protopapas
stated because they are requesting Federal Bridge Replacement
Funds, they have to construct the bridge according to Federal
standards. Mr. Saude stated that standard is to construct a
bridge to clear a 50-year flood, and withstand a 100-year flood
without damage to the road.
Mayor Reddell opened the hearing to the public for comments.
County Supervisor Bill Coy stated $1.5 million for a 260 foot
bridge is close to the original estimate for the project; the
Federal government is requiring a larger project. He estimates
there will be a $600,000 local share; he wants the County to
share 508-508 in the project with Morro Bay, and it is a top pri-
ority with him.
Mayor Reddell closed the hearing to the public.
MINUTES - MORRO BA4ITY COUNCIL •
REGULAR MEETING - APRIL 25, 1988
PAGE 7
Councilmember Lemons requested County staff factor into the EIR
the cost of maintaining the status quo as opposed to constructing
a new bridge. He stated he has problems with a 420 foot bridge
if a 260 foot bridge would suffice; he did not believe a small
bridge would harm the environment more than it is presently being
harmed with the flooding situation and "no project".
Mr. Napper stated no action is required of Council; County staff
is here to receive public and Council comments which will be ad-
dressed in the Final EIR. He thanked County staff for their
presentation.
No action was taken by Council.
Council recessed from 7:47 p.m. to 8:01 p.m.
B-3 CASE NO. ZOA 01-88, LOCAL COASTAL PROGRAM LAND USE DESIGNA-
I .Vlej��161
Mr. Farrel stated Council conducted a public hearing on February
22nd to consider amendments to the Zoning Ordinance to comply
with Measure B. Council accepted those amendments and the 6-week
public review period commenced. No response was received on the
amendments, and a formal ordinance is presented this evening for
first reading. Mr. Farrel displayed a map of the property and
noted where the building will take place on the project site.
Mayor Reddell opened the hearing to the public for comments;
there were no comments and the hearing was closed.
MOTION: Councilmember Donnelly moved Ordinance No. 324 be read
by title and number only. The motion was seconded by
Councilmember Lemons and unanimously carried. (5-0)
Mr. Napper read Ordinance No. 324 by title and number.
MOTION: Councilmember Donnelly moved Council approve Ordinance
No. 324 as first reading. The motion was seconded by
Councilmember Lemons and unanimously carried. (5-0)
B-4 APPEAL HEARING TO PLANNING
CONCERNING CASE NO. VARIAr
Mr. Farrel reviewed this item noting Mr. Skaff's disagreement
with Planning Commission action to compel him to remove portions
of a tandem expansion to his garage located behind the existing
garage, and to construct a carport in front of the existing
garage. He noted it was staff's position there was not suffi-
MINUTES - MORRO BA0ITY COUNCIL •
REGULAR MEETING - APRIL 25, 1988
PAGE 8
cient justification to require the carport in front of the exist-
ing garage.
Mayor Reddell stated he had been notified by Mrs. Skaff today
that Mr. Skaff is unable to attend this evening's meeting because
he is in the hospital. Mr. Napper stated Council may wish to
continue the meeting to a time when Mr. Skaff is able to attend.
MOTION: Councilmember Sheetz moved Council postpone the hearing
until Mr. Skaff or a member of his family can be repre-
sented. The motion was seconded by Councilmember
Lemons.
Mr. Napper suggested Council open the hearing to the public in
case there is someone who wishes to be heard.
Councilmember Sheetz withdrew her motion, and Coun-
cilmember Lemons his second.
Mayor Reddell opened the hearing to the public for comment; there
were no comments.
MOTION: Councilmember Sheetz moved the hearing be continued un-
til such time as Mr. Skaff or a representative of the
family can be represented. The motion was seconded by
Councilmember Lemons.
Mayor Reddell noted he does not have a problem at this time with
giving Mr. Skaff what he is requesting.
The motion carried unanimously. (5-0)
B-5 ORDINANCE NO. 322 PROHIBITING THE CONSUMPTION OF ALCOHOLIC
VtiiW:Ti1111Mti1y�9:0aIs�Ad91L01;;1]:1*1eVAWy�9:0M.14:116040"MVHDWIK91QO
Judy Skousen reviewed the proposals submitted as a result of a
Council request to prohibit the consumption of alcoholic bever-
ages in certain instances. The first ordinance, No. 322, per-
tains to prohibiting alcoholic beverages in City parks, community
buildings, and facilities without a permit. The second, No. 323,
prohibits alcoholic consumption in other public places; and the
third is a combination of the first two laws.
Ms. Skousen stated the ordinances were basically constructed
along the lines of other cities who have these types of
prohibitions.
Councilmember Lemons asked if the first section of Ordinance No.
322 regarding alcoholic content would not require lab tests to
establish? Ms. Skousen stated all beer and wine meet those mini-
mum requirements; some beverages could require lab tests to ana-
lyze alcoholic content. Councilmember Lemons commented cough
MINUTES - MORRO BAAITY COUNCIL •
REGULAR MEETING - APRIL 25, 1988
PAGE 9
syrup sometimes has more alcohol than the amount listed (1/2 of
18 alcohol by volume).
Councilmember Lemons considered the requirements ludicrous, and
wondered what people would do who come into town on the weekend
and are unable to secure a use permit. Ms. Skousen stated unless
they planned ahead, they would be unable to drink alcoholic bev-
erages in the park, according to this Ordinance.
Councilmember Lemons believed there should be a different way of
controlling the problems in city parks. Ms. Skousen stated the
law currently allows the Police to arrest anyone who is drunk in
public.
Ms. Skousen stated she contacted the League of California Cities
for sample ordinances from which she drafted the proposals before
Council. San Luis Obispo has an ordinance similar to the ones
presented to Council; they do not have problems with it but it
has been used to arrest transients, college students, and some-
times family members drinking in city parks.
Council was concerned about problems associated with drinking in
parks, however, did not wish to stop people from an occasional
beer or glass of wine at a family outing. There was discussion
regarding this with Ms. Skousen realizing the element Council
wished to discourage from drinking in public places, but unsure
how to address that in an ordinance. Mayor Reddell stated San
Luis Obispo has certain designated areas within a park in which
people are allowed to drink.
Dave Howell stated the Police does have problems in most City
parks from time to time; they are usually with the homeless,
transient, or young adults.
Mayor Reddell said 98% of the cities in California have an ordi-
nance of this nature; Morro Bay should be able to find a way to
make parks safe. Mr. Napper commented the 98% figure probably
means some form of prohibition which could mean parks, facili-
ties, streets and/or beaches.
Councilmember Lemons stated if drinking was only going to be al-
lowed in parks by permit, the City would need a 7-day-a-week per-
mit process; Mayor Reddell stated the Police Department would be
able to handle that.
Mayor Reddell opened the hearing to the public for comments.
Nancy Bast objected to having to schedule an impromptu lunch and
beer in the park ahead of time in order to get a use permit for
it. She believed Council should find another way to focus on the
problem without penalizing others.
Jim Schimmer, Fresno Avenue, stated the new law would be a prob-
lem at adult softball games where the players occasionally have a
MINUTES - MORRO BAAITY COUNCIL
REGULAR MEETING - APRIL 25, 1988
PAGE 10
beer. He questioned the specifics of being allowed to drink in a
park.
It was noted the Alcoholic Beverage Control Board requires per-
mits for alcohol in public facilities, but only if it is being
sold, not if it is being served as a part of a function.
Vivian Doubledee, owner of City Hardware across the street from
City Park, stated she has seen people drunk in the City Park on a
number of occasions. She would like to see something done about
drinking in City Park, but did not wish to see families penalized
for their picnics.
Mayor Reddell closed the hearing to the public.
MOTION: Councilmember Sheetz moved Ordinance No. 322 be sent
back to staff to be re -worked. The motion was seconded
by Councilmember Lemons.
Mr. Napper asked if Council wished to take action regarding Ordi-
nance No. 323; Mayor Reddell stated it should also be brought
back with suggested changes.
The motion was unanimously carried. (5-0)
B-6 RESOLUTION NO. 34-88 SETTING BALLOT MEASURE TEXT AND ORDER-
Ia—:h001
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FikiiJ*W.1Yk%1VJV
` 0QRSWORMWID
Mr. Napper stated Council received, in April 1987, an initiative
petition encouraging affordable housing incentives for seniors.
The initiative did not receive enough signatures for a special
election, but did receive enough to be placed on the City's next
regular municipal election; November 1988. Resolution No. 35-88
places this initiative on the ballot.
Subsequent to the initiative being presented to Council, Council
directed an ordinance be drafted which would offer affordable
housing incentives to projects serving all low -moderate income
levels. Council adopted this Ordinance (No. 316) in December
1987. It is staff's understanding Council wishes Ordinance No.
316 be submitted to the voters as an alternative to the initia-
tive measure. Resolution No. 34-88 sets the Ordinance for elec-
torate approval. According to the Elections Code, should both
measures receive a majority approval from the electorate, the one
with the highest number of votes will prevail. Mr. Napper sug-
gested Council appoint a sub -committee to prepare a ballot argu-
ment in favor of Ordinance No. 316.
MINUTES - MORRO BAOITY COUNCIL •
REGULAR MEETING - APRIL 25, 1988
PAGE 11
Mayor Reddell opened the hearing to the public; there were no
comments and the hearing was closed.
MOTION: Councilmember Odell moved for the adoption of Resolu-
tion No. 35-88. The motion was seconded by Councilmem-
ber Sheetz and unanimously carried. (5-0)
MOTION: Councilmember Lemons moved for the adoption of Resolu-
tion No. 34-88. The motion was seconded by Councilmem-
ber Odell and unanimously carried. (5-0)
MOTION: Councilmember Donnelly moved Councilmember Odell be ap-
pointed to draft a ballot argument in favor of the mea-
sure in Resolution No. 34-88 (Ordinance No. 316). The
motion was seconded by Councilmember Sheetz and unani-
mously carried. (5-0)
C. UNFINISHED BUSINESS
C-1 CONSIDERATION OF NEW LEASE AGREEMENT FOR LEASE SITE 30W-33W
(MORRO BAY FUEL DOCK, INC.)
Mr. Davis stated he and the City Attorney have met with the at-
torney representing Morro Bay Fuel Dock, Inc. Agreement has been
reached on several items, but there are some issues which need to
be resolved by Council. Mr. Davis stated the City has been oper-
ating under the misconception Morro Bay Fuel Dock is a fisher-
men's cooperative; actually it is a California corporation oper-
ating for profit. Mr. Davis reviewed the terms which are still
in disagreement.
Mr. Napper stated Morro Bay Fuel Dock's attorney informed him
earlier that he would not be making a presentation on behalf of
the Fuel Dock; his letter, included in Council's packet, will
stand as his presentation. Mr. Napper recommended Council defer
this item to Closed Session for directions to the City's
negotiators.
MOTION: Councilmember Sheetz moved Council defer this item to
Closed Session. The motion was seconded by Councilmem-
ber Lemons and unanimously carried. (5-0)
C-2 STATUS REPORT ON EVALUATION OF DOMENGHINI FLATS WELL WATER
PRnJECT
Mr. Nichols stated Council had directed the City staff to meet
with the representatives of the Domenghini property to discuss
possible City purchase of the property; this was done on April
15th. He briefed Council on their discussion stating while the
property owners are willing to discuss financing terms, they pre-
fer cash. There are 122.3 acres under consideration.
MINUTES - MORRO BAISITY COUNCIL •
REGULAR MEETING - APRIL 25, 1988
PAGE 12
Mr. Nichols has also been in contact with the Coastal Conservancy
with regard to their interest in developing a restoration project
on this property to remove sediment that enters Morro Bay from
runoff in Chorro Creek. While they are interested, they are not
able to proceed until completion of a study currently being done
by the Soil Conservation Service, estimated for completion in
1989.
Mr. Nichols stated the next step in the process is to prepare an
environmental impact report for the appropriative water rights
application and perform some hydrologic investigations.
MOTION: Councilmember Lemons moved the report be received for
file, and the item be deferred to Closed Session to
discuss real property negotiations with designated City
negotiators. The motion was seconded by Councilmember
Donnelly and unanimously carried. (5-0)
C-3 CITY POSITION ON AB 2802, CABLE TV FRANCHISES AND POSSESSORY
INTEREST TAXES
Mr. Henderson provided further information regarding AB 2802
which has been amended twice since Council's first consideration.
He reviewed the proposed amendments, and stated the City is at-
tempting to secure a copy of the amended bill. Until that time,
he suggested Council refer the matter back to the Cable TV Board
for additional review.
MOTION: Councilmember Sheetz moved Council refer AB 2802 back
to the Cable TV Board for additional review and recom-
mendation. The motion was seconded by Councilmember
Lemons and unanimously carried. (5-0)
D. NEW BUSINESS
NONE
E. CLOSED SESSION
MOTION: Councilmember Odell moved the meeting adjourn to Closed
Session. The motion was seconded by Councilmember
Donnelly and unanimously carried. (5-0)
Mayor Reddell announced he is now calling a special meeting of
the City Council for Wednesday, April 27, 1988 at 3:30 p.m. in
the Veterans Memorial Hall for the purpose of considering setting
a ballot measure text and ordering a City measure on the November
1988 general municipal election ballot to establish a City of
Morro Bay growth and water management ordinance; and for a study
session on downtown economic development.
Councilmember Lemons asked the order of the agenda items be re-
versed as he may not be able to be at the meeting right at 3:30
p.m. Mayor Reddell agreed. Mr. Napper noted Council is required
MINUTES - MORRO BA ITY COUNCIL •
REGULAR MEETING - APRIL 25, 1988
PAGE 13
to vacate the room by 6:00 p.m. as there is a prior scheduled
activity.
Mayor Reddell announced Council is adjourning to Closed Session
to discuss pending litigation in accordance with Government Code
Section 54956.9(a), Keyoto-Natalie vs. City of Morro Bay; labor
relations in accordance with Government Code Section 54957.6(a);
and real property negotiations in accordance with Government Code
Section 54956.8, Domenghini Flats and Morro Bay Fuel Dock, Inc.
F. ADJOURNMENT
The meeting adjourned to Closed Session at 9:25 p.m. and returned
to regular session at 10:53 p.m.
MOTION: Councilmember Sheetz moved the meeting be adjourned.
The motion was seconded by Councilmember Odell and
unanimously carried. (5-0)
The meeting adjourned at 10:53 p.m.
Recorded by:
ARDITH DAVIS
City Clerk
r . •
MORRO BAY
CITY COUNCIL
AGENDA
ADJOURNED REGULAR MEETING - APRIL 18, 1988
CITY HALL CONFERENCE ROOM - 5:00 P.M.
ROLL CALL
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 by standing. When recognized by the Mayor, please
come forward to the podium and state your name and address for the record.
Comments should normally be limited to three minutes.
E. CLOSED SESSION
E-1 GOVERNMENT CODE SECTION 54956.9(A), PENDING LITIGATION, KEYOTO-NATALIE
VS. CITY OF MORRO BAY
E-2 GOVERNMENT CODE SECTION 54957.6(A), LABOR RELATIONS NEGOTIATIONS
F. ADJOURNMENT
COPIES OF STAFF REPORTS OR OTHER PUBLIC DOCUMENTATION
RELATING TO EACH ITEM OF BUSINESS REFERRED TO ON THIS
AGENDA ARE ON FILE IN THE OFFICE OF THE CITY CLERK AND
AVAILABLE FOR PUBLIC INSPECTION AND REPRODUCTION AT
COST.
1
0 i
MINUTES - MORRO BAY CITY COUNCIL
ADJOURNED REGULAR MEETING - APRIL 18, 1988
CITY HALL CONFERENCE ROOM - 5:00 P.M.
Mayor Reddell called the meeting to order at 5:05 p.m.
PRESENT: Dale Reddell
Paul Donnelly
John Lemons
Jeff Odell
Rose Marie Sheetz
ABSENT:
STAFF:
PUBLIC COMMENT
None
None
Gary Napper
Judy Skousen
Forrest Henderson
Mayor
Councilmember
Councilmember
Councilmember
Councilmember
City Administrator
City Attorney
Asst. to City Admin.
E. CLOSED SESSION
MOTION: Councilmember Donnelly moved the meeting adjourn to
Closed Session. The motion was seconded by Councilmem-
ber Lemons and unanimously carried. (5-0)
Mayor Reddell announced Council is adjourning to Closed Session
to consider pending litigation in accordance with Government Code
Section 54956.9(a), Keyoto-Natalie vs. City of Morro Bay; and la-
bor relations negotiations in accordance with Government Code
Section 54957.6(a).
Council adjourned to Closed Session at 5:06 p.m. and returned to
regular session at 7:10 p.m.
F. ADJOURNMENT
MOTION: Councilmember Lemons moved the meeting be adjourned.
The motion was seconded by Councilmember Odell and
unanimously carried. (5-0)
The meeting adjourned at 7:10 p.m.
Recorded by:
Deputy City Clerk
MORRO BAY
CITY COUNCIL
AGENDA
REGULAR MEETING - APRIL 11, 1988
VETERANS MEMORIAL HALL - 6:00 P.M.
ROLL CALL
INVOCATION
PLEDGE OF ALLEGIANCE
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 by standing. When recognized by the Mayor, please
come forward to the podium and state your name and address for the record.
Comments should normally be limited to three minutes.
PRESENTATIONS
1. PERFORMANCE BY SAN LUIS OBISPO GOLD COAST CHORUS CELEBRATING
"BARBERSHOP HARMONY MONTH"
2. "MOST VALUABLE EMPLOYEE" AWARD, FIRST QUARTER (JULIE SPIER)
3. DONATION FROM MORRO BAY QUOTA CLUB FOR CONFERENCE ROOM FURNITURE IN
COMMUNITY CENTER
4. "THE PROMISE OF WORLD PEACE" MESSAGE BY KAREN OLIN, BAHA'I FAITH
DECLARATION OF FUTURE AGENDA ITEMS
A. CONSENT CALENDAR
Unless an item is pulled for separate action by the City Council, the fol-
lowing actions are approved without discussion.
A-1 CITY COUNCIL MINUTES OF THE ADJOURNED REGULAR MEETING OF MARCH 22,
1988, THE REGULAR MEETING OF MARCH 28, 1988, AND THE ADJOURNED REGULAR
MEETING OF APRIL 4, 1988
A-2 PROCLAMATION DECLARING MAY 8-14, 1988 AS "JUST SAY NO" WEEK
A-3 PROCLAMATION DECLARING MAY 1988 AS "BETTER HEARING AND SPEECH MONTH"
A-4 PROCLAMATION DECLARING APRIL 18-22, 1988 AS "YOU'VE GOT THE POWER.
REGISTER TO VOTE!" WEEK
A-5 RESOLUTION NO. 30-88 OPPOSING AB 2802 EXEMPTING CABLE TELEVISION
INDUSTRY FROM PAYING PROPERTY TAXES
1
0
A-6 RESOLUTION NO. 25-88 APPROVING LOCAL TRANSPORTATION FUND AND STATE
TRANSIT ASSISTANCE CLAIMS FOR FY 88-89
A-7 ANNUAL CABLE TV REPORT SUBMITTED BY TV FRANCHISE AND SERVICES BOARD
A-8 RESOLUTION NO. 31-88 AUTHORIZING HARBOR USE PERMIT FOR CAL POLY
REGATTA (APRIL 23RD)
A-9 SET DATE (APRIL 25TH) FOR HEARING ON APPEAL OF PLANNING COMMISSION
RESOLUTION NO. 06-88 CONCERNING CASE NO. VARIANCE 02-88 (SKAFF; 458
FRESNO AVENUE)
A-10 PROCLAMATION DECLARING APRIL 24-MAY 2, 1988 AS "ORGAN DONOR AWARENESS
WEEK"
A-11 PROCLAMATION DECLARING APRIL 1988 AS "EARTHQUAKE PREPAREDNESS MONTH"
B. PUBLIC HEARINGS, REPORTS & APPEARANCES
B-1 RESOLUTION NO. 23-88 SETTING BALLOT MEASURE TEXT AND ORDERING CITY
MEASURE ON NOVEMBER 1988 GENERAL ELECTION BALLOT FOR ELECTORATE AUTHO-
RIZATION TO INCREASE CITY BUSINESS LICENSE TAX FEES, WITH AUTOMATIC
ANNUAL ADJUSTMENTS THEREAFTER
B-2 CONCEPT CONSIDERATION OF LOCAL TAX TO FUND CITY EMERGENCY MEDICAL
SERVICES (EMT II AND PARAMEDIC)
B-3 STATUS REPORT AND COMPARATIVE ANALYSIS OF SUPPLEMENTAL WATER PROJECTS
B-4 RESOLUTION NO. 32-88 SETTING BALLOT MEASURE TEXT AND ORDERING CITY
MEASURE ON NOVEMBER 1988 GENERAL ELECTION BALLOT FOR ELECTORATE AUTHO-
RIZATION TO FINANCE SAN BERNARDO CREEK DAM IN ASSOCIATION WITH COASTAL
STREAM DIVERSION PROJECTS
C. UNFINISHED BUSINESS
C-1 ORDINANCE NO. 321 AMENDING MORRO BAY MUNICIPAL CODE PROVISIONS ON
STANDARDS OF IMPROVEMENTS, PLANS, AND SPECIFICATIONS (SECOND READING
AND ADOPTION)
C-2 COUNCIL POLICY STATEMENT DEFINING APPEAL PERIOD FILING DATES
C-3 DETERMINATION OF NEW LEASE AGREEMENT OR PAST -DUE RENTS FOR LEASE SITE
30W-33W (MORRO BAY FUEL DOCK, INC.)
C-4 RECREATION AND PARKS COMMISSION RECOMMENDATION REGARDING CONSTRUCTION
OF DRESSING ROOMS FOR SURFERS
2
D. NEW BUSINESS
D-1 RESOLUTION NO. 26-88 APPROVING ASSIGNMENT OF LEASE SITE 82-85W FROM
CABRILLO ENTERPRISES TO ROSE'S LANDING, INC., A CALIFORNIA CORPORATION
D-2 RESOLUTION NO. 27-88 APPROVING CONSENT TO SUBLEASE AGREEMENT ON
PORTIONS OF LEASE SITE 80-81W TO MORRO BAY SEAFOOD (MORRO BAY
FISHERIES, MASTER LESSEE)
D-3 RESOLUTION NO. 28-88 APPROVING CONSENT TO SUBLEASE AGREEMENT ON LEASE
SITE 71 TO DAVID VAN ECK AND VICTOR GRAZIANO, DBA THE MORRO BAY MUSIC
BOX COMPANY; AND RESOLUTION NO. 29-88 APPROVING CONSENT TO SUBLEASE
AGREEMENT ON LEASE SITE 73 TO WILLIAM DE CAROLIS AND FRANK ST. DENNIS,
DBA VISIONS (MORRO BAY MARINA, MASTER LESSEE)
E. CLOSED SESSION
E-1 GOVERNMENT CODE SECTION 54956.9(A), PENDING LITIGATION, KEYOTO-NATALIE
VS. CITY OF MORRO BAY
E-2 GOVERNMENT CODE SECTION 54957.6(A), LABOR RELATIONS NEGOTIATIONS
F. ADJOURNMENT
COPIES OF STAFF REPORTS OR OTHER PUBLIC DOCUMENTATION
RELATING TO EACH ITEM OF BUSINESS REFERRED TO ON THIS
AGENDA ARE ON FILE IN THE OFFICE OF THE CITY CLERK AND
AVAILABLE FOR PUBLIC INSPECTION AND REPRODUCTION AT
COST.
3
• 0
MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING - APRIL 11, 1988
VETERANS MEMORIAL HALL - 6:00 P.M.
Mayor Reddell called the meeting to order at 6:10 p.m.
ROLL CALL
PRESENT: Dale Reddell
Paul Donnelly
John Lemons
Jeff Odell
Rose Marie Sheetz
ABSENT: None
STAFF: Gary Napper
Judy Skousen
Louise Burt
Alan Davis
Forrest Henderson
Nick Nichols
Dave Norton
Ardith Davis
Mayor
Councilmember
Councilmember
Councilmember
Councilmember
City Administrator
City Attorney
Finance Director
Harbor Director
Asst. to City Admin.
Public Works Dir.
Water Engineer
City Clerk
Councilmember Sheetz gave the invocation, and Mayor Reddell led
the Pledge of Allegiance.
PRESENTATIONS
1. PERFORMANCE BY SAN LUIS OBISPO GOLD COAST CHORUS CELEBRATING
'BAR ERSHOP HARMONY MONTH'
George Beard, a member of the Chorus, stated they are celebrating
the 50th anniversary of the movement of barbershop quartets by
visiting city council meetings and singing. The quartet per-
formed a musical number, and Mayor Reddell presented them with a
Proclamation declaring the month of April "Barbershop Harmony
Month" in Morro Bay.
2. "MOST VALUABLE EMPLOYEE" AWARD, FIRST QUARTER (JULIE SPIER)
Mayor Reddell presented the quarterly "Most Valuable Employee"
award to Julie Spier, Recreation Coordinator for the Recreation
and Parks Department. Mayor Reddell reviewed her many accom-
plishments and value to the City, and stated the award is given
to Ms. Spier by her fellow employees.
MINUTES - MORRO BA ITY COUNCIL •
REGULAR MEETING - AV IL,11, 1988
PAGE 2
3. DONATION FROM MORRO BAY QUOTA_ CLUB FOR CONFERENCE ROOM
FURNITURE IN COMMUNITY CENTER
Charlene Blodgett, President of the Morro Bay Quota Club, pre-
sented Mayor Reddell with a $3,000 donation from the Quota Club
to purchase furniture for the Community Center Conference Room.
Ms. Blodgett stated the gift is also given in memory of Lila
Keiser who was a member of the Quota Club. Mayor Reddell thanked
the Quota Club for their generous gift.
4. "THE PROMISE OF WORLD PEACE" MESSAGE BY KAREN OLIN, BAHA'I
Karen Olin presented Council and staff members with a pamphlet
entitled, "The Promise of World Peace" produced by The Universal
House of Justice, Baha'i Faith. She discussed some of the solu-
tions to bring about world peace, noting it must start within the
individual.
PUBLIC COMMENT
1. Charles Palmer urged Council to place a meter on the
Domenghini well to determine how much water the well is produc-
ing. He stated P.G.&E. has a 10" meter which they might let the
City use.
2. Ray Kaltenbach asked why the City chlorinates the water
from our wells? Mr. Nichols responded while there is no bacteria
in the well water, bacteria does grow in the pipe system; the
City is required by State law to chlorinate the water before it
gets to the consumer.
3. Vivian Doubledee, a member of the Morro Bay Quota Club,
stated Council will be considering a Proclamation this evening
declaring May 1988 as "Better Hearing and Speech Month". This
program is sponsored by the Quota Club, and she distributed pen-
cils to staff and Councilmembers which the Club will be giving
the Sunnyside School for their Citicent Program.
DECLARATION OF FUTURE AGENDA ITEMS
1. Councilmember Odell requested a resolution be scheduled
for the agenda requesting the Governor to place the Morro Bay
Estuary on the list of potential candidates for the National
Estuary Program which is administered by the EPA. He stated this
matter will be scheduled before the County Interagency Task Force
on Back Bay, and the Board of Supervisors.
2. Mayor Reddell requested the City Attorney prepare an
ordinance prohibiting alcohol in City parks except by permit.
MINUTES - MORRO BA) COUNCIL •
REGULAR MEETING - APRIL 11, 1988
PAGE 3
There was discussion regarding extending this to drinking in pub-
lic and on sidewalks; Councilmember Lemons requested separate or-
dinances if it was extended to City streets.
A. CONSENT CALENDAR
A-1 CITY COUNCIL MINUTES OF THE ADJOURNED REGULAR MEETING OF
I1ZU]
Mr. Napper recommended Council approve the minutes as submitted.
A-2 PROCLAMATION DECLARING MAY 8-14, 1988 AS "JUST SAY NO" WEEK
Mr. Napper recommended Council authorize the Mayor to sign the
Proclamation.
A-3 PROCLAMATION DECLARING MAY 1988 AS "BETTER HEARING AND
SPEECH MONTH
Mr. Napper recommended Council authorize the Mayor to sign the
Proclamation.
A-4 PROCLAMATION _DECLARING APRIL 18-22, 1988 AS "YOU'VE GOT THE
POWER. REGISTER TO VOTE 1WEEK
Mr. Napper recommended Council authorize the Mayor to sign the
Proclamation.
A-5 RESOLUTION NO. 30-88 OPPOSING AB 2802 EXEMPTING CABLE TELE-
VISION INDUSTRY FROM PAYING PROPERTY TAXES
Mr. Napper recommended Council adopt Resolution No. 30-88.
A-6 RESOLUTION NO. 25-88 APPROVING LOCAL TRANSPORTATION FUND AND
STATE TRANSIT ASSISTANCE CLAIMS FOR FY 88-89
Mr. Napper recommended Council adopt Resolution No. 25-88.
A-7 ANNUAL CABLE TV REPORT SUBMITTED BY TV FRANCHISE AND SER-
VICES BOARD
Mr. Napper recommended Council accept the Annual Report with ap-
preciation and recognition for the TV Board's efforts.
A-8 RESOLUTION NO. 31-88 AUTHORIZING HARBOR USE PERMIT FOR CAL
POLY REGATTA (APRIL 23RD)
Mr. Napper recommended Council adopt Resolution No. 31-88.
MINUTES - MORRO BA),
COUNCIL •
REGULAR MEETING A IL 11, 1988
PAGE 4
A-9 SET DATE (APRIL 25TH) FOR HEARING ON APPEAL OF PLANNING
COMMISSION RESOLUTION NO. 06-88 CONCERNING CASE NO. VARIANCE
02-RR (SKAFF: 45R FRESNO AVENUE)
Council set April 25th as the hearing date for the appeal, and
authorized staff to notice the hearing and prepare the appropri-
ate reports.
A-10 PROCLAMATION DECLARING APRIL 24-MAY 2. 1988 AS "ORGAN DONOR
AWARENESS WEEK"
Mr. Napper recommended Council authorize the Mayor to sign the
Proclamation.
A-11 PROCLAMATION DECLARING APRIL 1988 AS "EARTHQUAKE PREPARED -
Mr. Napper recommended Council authorize the Mayor to sign the
Proclamation.
Councilmember Lemons requested Item A-5 be pulled from the
agenda.
MOTION: Councilmember Sheetz moved for approval of the Consent
Calendar with the exception of Item A-5. The motion
was seconded by Councilmember Lemons and unanimously
carried. (5-0)
A-5 RESOLUTION NO. 30-88 OPPOSING AB 2802 EXE
Councilmember Lemons stated he was concerned about supporting
this legislation because the cable companies will simply pass on
the costs to their customers in the form of rate increases.
Cable companies are deregulated and set their own fees without
requiring approval from the City. He believed the amount to be
gained through franchise fees would not offset the public detri-
ment of increased fees to customers.
Council took no action on Item A-5.
B. PUBLIC HEARINGS, REPORTS & APPEARANCES
B-1 RESOLUTION NO. 23-88 SETTING BALLOT MEASURE
ING CITY MEASURE ON NOVEMBER 1988 GENERAL
Louise Burt stated Council considered this item at their last
meeting and directed staff to amend the ballot wording to include
both a tax rate increase or decrease, should that occur in the
CPI. This revised wording is presented for Council approval.
MINUTES - MORRO BA) TY COUNCIL •
REGULAR MEETING - APRIL 11, 1988
PAGE 5
Mayor Reddell opened the hearing to the public for comments.
Chris Thompson, Manager of the Chamber of Commerce, stated the
Legislative Committee of the Chamber supports the ballot text as
written. The Chamber Board of Directors will be considering the
matter at a later date along with the Legislative Committee's
recommendation. Mr. Thompson urged Council to also set a date
for a joint meeting regarding downtown economic development.
Howard Gaines, 441 Orcas, stated this Proposition 62 impacts
Agenda Items B-2 and B-4. He stated the CPI is misleading and
may not reflect true inflation until 2 years after it has actu-
ally taken place. He suggested using money in circulation fig-
ures (M-1) instead of the CPI. Alternatively, the City could add
3/48 or 18 to the CPI change.
Chris Thompson stated he did not believe the Chamber Legislative
Committee or the Board of Directors would support any increase
over the one outlined in the present ballot language.
Mayor Reddell closed the hearing to the public.
Councilmember Sheetz stated she supports the staff recommendation
and was not in favor of increasing business license fees any more
than dictated by the CPI; compounded increases can hurt
businesses.
MOTION: Councilmember Lemons moved for the adoption of Resolu-
tion No. 23-88. The motion was seconded by Councilmem-
ber Sheetz and unanimously carried. (5-0)
MOTION: Councilmember Lemons moved Council appoint a sub -com-
mittee consisting of Mayor Reddell and Councilmember
Sheetz to write the ballot argument in favor of the
business license measure. The motion was seconded by
Councilmember Donnelly and unanimously carried. (5-0)
B-2 CONCEPT CONSIDERATION OF LOCAL TAX TO FUND CITY EN
Fire Chief Zerr reviewed his report which detailed the costs for
upgrading fire personnel from EMT-II's to Paramedics. He noted
71% of the Fire Department's calls are for emergency medical ser-
vices as opposed to 5.4% fire alarms. He stated budget con-
straints have resulted in the Fire Services Funding Committee
looking at alternative ways to fund this increased service which
is estimated to be $56,216 annually.
The question is do the people in the community want to pay for
this increased service (paramedic), and how should the people be
MINUTES - MORRO BA�ITY COUNCIL •
REGULAR MEETING - APRIL 11, 1988
PAGE 6
charged? Chief Zerr reviewed a method used by the South Bay Fire
Department to tax by a per -unit assessment.
There was considerable discussion regarding the Bay Ambulance
Service for which Council had recently approved increased fees.
Chief Zerr noted this ambulance service covers Morro Bay,
Cayucos, Los Osos and Highway 1 to Cuesta College; it is not
always available to respond which means the Morro Bay Fire
Department is usually first on the scene to administer emergency
medical aid.
Mr. Napper reviewed the constraints on the General Fund to absorb
this increased service level, estimated at $56,000. He stated
the Fund has reached a stagnant level, and there are many compet-
ing interests for General Fund dollars.
Chief Zerr explained the upcoming enhancements to be made to the
911 dispatching system in the near future.
Mayor Reddell opened the hearing to the public for comments.
John Baker, a member of the Fire Funding Committee, stated any
remarks he makes are not intended as criticism of Council, Admin-
istration, or Department Heads. He noted the $346,000 spent an-
nually on Recreation, and $236,000 on Transit, and said fire ser-
vices should be the City's number —one priority. He believed
Council should find what he estimates to be $46,000 for upgrading
the EMT-II's in the Fire Department to Paramedics out of the
City's $7 million budget.
Howard Gaines stated we are all going to have to get used to a
lower standard of living; he said this issue will require a
2/3rds majority vote to pass.
Charles Palmer believed people should pay for the service where
possible through a user -fee method.
Ray Kaltenbach was in favor of increased emergency medical ser-
vices in the form of upgrading the Fire Department EMT-II's to
Paramedics, and City funding should be increased if any way
possible.
Mayor Reddell closed the hearing to the public.
Councilmember Sheetz was in favor of upgrading to Paramedics, but
was not in favor of taxing the people to do it. She suggested
all departments cut their budgets by 5%, or increase water rates
$.50 per month.
Councilmember Lemons was in favor of placing a measure on the
ballot similar to the GS9A method of assessment per unit. He
stated while the budget might be able to absorb the increase this
MINUTES - MORRO BA TY COUNCIL •
REGULAR MEETING - AF IL 11, 1988
PAGE 7
year, he could not envision it being able to do it on a continu-
ing basis; costs of all City activities are increasing consider-
ably faster than the General Fund increases. Mr. Napper noted if
the City absorbs this higher service level now, we lose the op-
portunity to have the people fund it in the future.
There was discussion regarding offering emergency medical and
fire services to areas just outside City limits (Rancho Colinga
Mobile Home Park; Morro Creek Road) and charging them for the
services. Mr. Napper stated this could be done, and staff can
evaluate the process.
Mayor Reddell asked how many areas in the County have Paramedics;
Chief Zerr said -there are none at the present time. -
MOTION; Councilmember Sheetz moved a ballot item be prepared
proposing emergency medical services (paramedics) using
the GS9A rationale, with an escalator clause. The mo-
tion was seconded by Councilmember Donnelly.
Council discussed whether or not to place this matter on the
November 1988 ballot, or on a future ballot. Chief Zerr thought
perhaps it would have a better chance of passing if it was by it-
self rather than placed with the other issues currently slated
for the November 1988 election. Mr. Napper reviewed the items
currently scheduled for that election. Council also discussed
attempting to put the issue before the people who live in areas
right outside the City limits to see if there are interested in
benefiting from increased emergency services. Mr. Napper stated
he would report back on that possibility.
Councilmember Sheetz amended her motion to include
those areas outside the City limits, and that the issue
be placed on the June 1989 ballot. The amendment was
seconded by Councilmember Donnelly and unanimously
carried. (5-0)
Council recessed from 8:10 p.m. to 8:28 p.m.
B-3 STATUS REPORT AND COMPARATIVE ANALYSIS OF SUPPLEMENT WATER
PROJECTS
Dave Norton, Water Engineer, reviewed a lengthy staff report de-
tailing the status of each City water project. His report cen-
tered on the Coastal Streams Diversion and Storage Project, and
San Bernardo Creek Dam and Reservoir, including yield and costs.
He stated Morro Bay seems to review the same projects over and
over again without actually proceeding with any. He reviewed a
recommended list of priority projects; obtaining water rights for
existing water usage, Toro Creek Wells, Coastal Streams Diversion
and Storage Project, San Bernardo Creek Dam and Reservoir, State
Water Project, and Nacimiento Water Supply Project.
MINUTES - MORRO BA�ITY COUNCIL •
REGULAR MEETING - APRIL 11, 1988
PAGE 8
He stated a draft feasibility study on the Coastal Streams Diver-
sion and Storage Project has been received; meetings have been
held with Whale Rock Commission staff, whose participation is in-
tegral to the Coastal Streams Project, to review and revise the
report before presentation to Council and Whale Rock Commission.
Mayor Reddell was concerned about the lack of forward movement on
many of the projects, and the lack of written agreements with
participating agencies/property owners. He asked what the next
step is regarding the Coastal Stream Project; Mr. Norton stated
it would be for staff to bring the consultant's report to Council
and the Whale Rock Commission, and then negotiate an agreement
between the two agencies. He estimated the final feasibility re-
port could be before Council by their last meeting in May 1988.
Mr. Norton discussed the permits currently before the State Water
Resources Control Board for a dam and surface reservoir at San
Bernardo Creek. These permits expire August 20, 1989 and, in
this time, the City is supposed to complete a feasibility report
($232,000) and EIR ($45,500), or the permits will be lost. He
said if Council waits until the November election to receive
voter approval for these expenditures, it will be too late to
complete the work by the SWRCB deadline. He noted if the City is
unable to reach an agreement with the Whale Rock Commission on
the Coastal Streams project, the dam would enable the City to
store its own water and possibly sell excess water to other
communities.
Councilmember Lemons suggested the Council approve issuing Cer-
tificates of Participation to fund the study, and then go to the
other agencies to see if they are interested in participating in
the project. There was discussion regarding the estimated costs
for the San Bernardo project; Louise Burt has estimated $19
million.
Mayor Reddell opened the hearing to the public for comments.
Ray Kaltenbach stated the Water Engineer's position should have
been made a separate entity so he didn't have to answer to any-
one. He believed the Stream Diversion Project should be the num-
ber one priority. Councilmember Lemons asked him if he would ac-
tively work to support the Stream Diversion Project and San
Bernardo Creek Dam as a ballot issue? Mr. Kaltenbach stated he
would support the Stream Diversion Project.
Aaron Bento, 483 Sicily and tenant on Toro Creek property, stated
the farmers in the Toro Creek would lend their support to the
Stream Diversion Project. He also requested the City not protest
agriculture applications for future appropriative water rights in
the Toro Creek Valley. Mayor Reddell stated that offer has been
made, according to the staff report. There was confusion as to
MINUTES - MORRO BA0ITY COUNCIL •
REGULAR MEETING - APRIL 11, 1988
PAGE 9
whether the offer had been a part of the discussion with the
farmers in the area; Mr. Nichols stated it had not. Mayor
Reddell guaranteed Mr. Bento that the City would not protest
their future appropriative applications.
John Maino, 1117 San Bernardo Creek Road, stated the Coastal
Stream Diversion Project sounds like a good idea, and addressed
problems associated with the San Bernardo Creek Dam.
Howard Gaines objected to the City spending the kind of money
these projects will cost; Morro Bay is the only one really inter-
ested in water.
Nelson Sullivan encouraged Council to support both the Stream Di-
version and San Bernardo Creek Dam projects, and to be fair in
the ballot wording. He suggested the Domenghini well project be
on the ballot as well. Councilmember Lemons asked him if he
would support a San Bernardo Creek Dam bond measure; Mr. Sullivan
stated he would have to see the issue before deciding.
Charles Palmer did not believe the bond would be adopted by the
voters if Morro Bay had to carry the total project, and suggested
the City spend one-half million dollars to get the project car-
ried to the point of construction, and then see what other agen-
cies would participate with Morro Bay.
Len Carpenter, 938 Pacific, supported the Stream Diversion and
San Bernardo Creek Dam projects, but encouraged that written
agreements be secured first.
Mayor Reddell closed the hearing to the public.
Councilmember Lemons stated the report was very useful; it is the
first time all the projects the City is working on are together
in one place.
Mayor Reddell stated he supports every water project currently
under consideration by the City, including the Domenghini wells.
He said with the drought situation the City will be facing this
summer, we will probably be asking the Domenghini's for emergency
water again. He stated the San Bernardo Creek Dam Project has
not "fallen from grace", as suggested by the Water Engineer, and
he would like written agreements with the Whale Rock Commission
regarding the Streams Diversion Project.
Councilmember Donnelly believed staff should pursue getting an
extension from the State Water Resources Control Board on the San
Bernardo Creek permits. He was also in favor of obtaining a
written agreement from the property owners in the Toro Valley so
the City can proceed on that project. He wanted updated reports.
MINUTES - MORRO BAMITY COUNCIL is
REGULAR MEETING - APRIL 11, 1988
PAGE 10
Councilmember Sheetz indicated Mr. Norton has worked hard on the
Stream Diversion Project, but all projects need to be worked on
in concert, not one individual project.
Mayor Reddell stressed the need for Council to be kept informed
on the status of the various projects. Mr. Napper stated commu-
nication does need to be enhanced, and agreed things need to be
put in writing as opposed to verbal communication.
No formal action was taken by Council.
B-4 RESOLUTION NO. 32-88
1:1011
01
;UD •cR_:
Louise Burt reviewed a proposed ballot measure to finance the San
Bernardo Creek Dam Project. The cost for the dam according to a
Born, Barrett & Associates' report of 1985 is $14,598,000.
Adding inflation for possible construction in 1991, she estimates
the project cost to be $19,562,716. Ms. Burt reviewed costs for
an EIR and feasibility study on the Dam, as well as costs for a
water treatment facility, and the Stream Diversion Project.
Ms. Burt detailed the financing of a project of this magnitude
and the debt service to the City ($2.9 million). Her analysis
included projections if Morro Bay owns the total project, or if.
the Dam is owned only 40% by Morro Bay with other agencies
participating.
A resolution setting forth a ballot issue has been prepared for
Council consideration; however, staff is recommending Council de-
fer actual adoption of the resolution until next meeting to allow
additional data and legal review.
Council discussed the various options presented to finance the
project. Mayor Reddell asked if there is a way to include other
communities in the bond issue election process. Mr. Napper
stated timing would make it impossible for the November 1988
election; however, he could look into the matter for a future
election. He stated it is not necessary to go for voter approval
on the Coastal Stream component of the Dam project, as other fi-
nancing has been arranged to be paid for by raising water rates.
It was included as part of the report because it is an integral
portion of the total Dam water project.
Councilmember Odell suggested going ahead with the EIR and feasi-
bility study on the San Bernardo Project, but holding off on the
election process and exclude Phase I from any bond issue.
Mayor Reddell opened the hearing to the public for comments.
MINUTES - MORRO BAATY COUNCIL
REGULAR MEETING - APRIL 11, 1988
PAGE 11
CJ
Charles Palmer stated the City needs a new water rate structure
that takes into account the needs of the people and their ability
to pay; these modifications could raise the $300,000 necessary to
fund the Dam's study.
Chris Thompson, Chamber of Commerce Manager, requested Council
defer this matter; he would like the Chamber to review and com-
ment on the staff report.
Ray Kaltenbach stated it is a good idea to put this item on the
ballot and keep the project alive. Councilmember Lemons asked
Mr. Kaltenbach if he would support the Council if they made a de-
cision to issue certificates of participation on the $300,000 for
the EIR and feasibility study for the Project. Mr. Kaltenbach
stated he would.
Howard Gaines stated Council was changing from a revenue bond to
a tax for just the EIR and feasibility report; this would require
a 2/3 voter approval to pass. Councilmember Lemons stated cer-
tificates of participation do not require voter approval; Mr.
Gaines expressed amazement at this information.
John Maino, a farmer in the San Bernardo Creek area, requested
Council hold off on a decision until they get information on the
Coastal Stream Project and Whale Rock Commission's participation.
Charles Palmer stated when Council talks about the San Bernardo
Creek Dam Project they are taking about the distant future. He
said $300,000 is a small amount to keep the future of Morro Bay
alive, and stated he would be willing to donate his services,
with City -paid expenses and a computer, to generate a program ad-
justing water and sewer rates to fund the study.
Nelson Sullivan agreed with Mr. Palmer and encouraged Council to
do what is right for the people. Councilmember Lemons asked him
if he would support funding $300,000 for the feasibility report
and EIR on the San Bernardo Creek Dam even if the City is re-
quired to raise water rates to do so. Mr. Sullivan stated he
would support that.
Mayor Reddell closed the hearing to the public.
MOTION: Councilmember Lemons moved the City conceptually pre-
pare to issue Certificates of Participation to fund the
feasibility study and EIR on the San Bernardo Creek Dam
Project. The motion was seconded by Councilmember
Odell.
Council discussed the impact this would have on water rates; Ms.
Burt stated it would be a 3% increase on water bills. Mr. Napper
stated staff could also evaluate the merits of increasing water
A
MINUTES - MORRO BA* TY COUNCIL •
REGULAR MEETING - APRIL 11, 1988
PAGE 12
hook-up fees to partially fund this proposal. He said staff will
return to Council with a Resolution to formalize their action.
The motion was unanimously carried by roll call vote.
(5-0)
MOTION: Councilmember Lemons moved the rest of the bond pro-
posal be tabled. The motion was seconded by Coun-
cilmember Odell.
Councilmember Donnelly wished to continue discussion of this
item.
Councilmember Lemons withdrew his motion, and Coun-
cilmember Odell his second.
Councilmember Lemons stated he is not saying the City should not
have a bond issue; he is just not in favor of placing one on the
ballot at this time. He believed the feasibility report and EIR
would give the City more information on which to support a ballot
issue. Councilmember Donnelly and Lemons want the study to ad-
dress technical and financial feasibilities.
MOTION: Councilmember Lemons moved the rest of the agenda item
be tabled. The motion was seconded by Councilmember
Odell and unanimously carried. (5-0)
D. NEW BUSINESS
Mayor Reddell
in order to
decided.
D-1
requested New Business be moved to this time period
allow those people waiting to have their items
RESOLUTION NO. 26-88 APPROVING ASSIGNMENT OF LEASE SITE 82-
85W FROM CABRILLO ENTERPRISES TO ROSE'S LANDING. INC.. A
Alan Davis reviewed this request for assigning Lease Site 82-85W
from Cabrillo Enterprises to Rose's Landing, Inc. He noted the
financial statements have been approved by the Finance Director,
and their restaurant business experience is more than satisfac-
tory. The Lease Site is current on all obligations. He recom-
mended Council approve the transfer subject to the conditions
outlined in the Resolution.
MOTION: Councilmember Odell moved for adoption of Resolution
No. 26-88. The motion was seconded by Councilmember
Lemons and unanimously carried. (5-0)
MINUTES - MORRO
REGULAR MEETING
PAGE 13
D-2 RESOLUTION
ON PORTION
BAY FISHER
BA*ITY COUNCIL
- APRIL 11, 1988
•
-88 APPROVING CONSENT TO SUBLEASE AGREEMENT
10*14021
Mr. Davis reviewed the request for a sublease on a portion of the
Bayside Fisheries lease site to Morro Bay Seafood. He presented
a letter outlining the sublessee's business experience, and
stated financial statements could not be obtained because of the
fast -approaching tax filing deadline. He noted, however, the
Master Lessee always remains responsible for lease payments and
financial obligations of the sub -lessee.
Mr. Napper recommended Council defer approval of the sublease
pending receipt of code compliance or written agreement by the
Master Lessee to correct the maintenance deficiencies on the
lease site. He stated the City has made repeated attempts to se-
cure compliance by the Lessee, which have been ignored. He said
this is the City's opportunity to apply leverage in order to
achieve compliance on the maintenance obligations. He noted the
violations are minor except for the revetment erosion problems.
Mayor Reddell asked if the City couldn't approve the sublease on
condition of compliance. Judy Skousen explained the difficulty
in obtaining compliance after an agreement is approved due the
legal process the City must go through. If the Council withholds
approval until compliance is guaranteed in writing by the Lessee,
the City will be in a position to terminate the lease if he
doesn't comply with his agreement.
David Haworth, proposed sublessee for the site, stated he was be-
ing penalized for something he has no control over. He requested
Council approve the sublease requiring compliance with mainte-
nance obligations within 30 days. Councilmember Lemons
concurred.
MOTION: Councilmember Odell moved Council hold approval until
the City receives a letter of agreement from the Master
Leaseholder on the revetment repairs, and some sign of
performance is made on the minor violations. The mo-
tion was seconded by Councilmember Sheetz.
There was considerable Council discussion on how to allow the
sublease to become effective prior to the next Council meeting.
Mr. Napper reminded Council it is their policy not to approve
subleases or assignments unless all lease requirements including
maintenance obligations, were current. He also stated it is not
the City that is penalizing Mr. Haworth, but the Master Lessee,
Mr. Tomich, who has not responded to the City's notifications for
corrections.
MINUTES - MORRO BA*TY COUNCIL
REGULAR MEETING - APRIL 110 1988
PAGE 14
Council encouraged staff to see this matters returns to Council
at the next meeting; Mr. Napper indicated if the Master Lessee
complies, the subject can return as a Consent Calendar item.
The motion carried, with Councilmember Lemons voting
no. (4-1)
D-3 RESOLUTION NO. 28-88 APPROVING CONSENT TO SUBLEASE
WILLIAM DE CAROLIS AND FRANK ST. DENNIS, DBA VISIONS (MORRO
Alan Davis reviewed the request by Morro Bay Marina to sublease
Lease Site 71 and 73; these sites were previously occupied by the
Brewery, Sweetery, and Pleasantry. He stated financial state-
ments from both sublessees are acceptable, but they have no ap-
plicable business experience. Morro Bay Marina, however, is re-
sponsible for the sublessees, and staff is recommending approval
of the request. The Lease Site is current in all lease responsi-
bilities except revetment repairs that will be done when a new
project is built on the site.
MOTION: Councilmember Lemons moved for adoption of Resolutions
No. 28-88 and 29-88. The motion was seconded by Coun-
cilmember Sheetz and unanimously carried. (5-0)
C. UNFINISHED BUSINESS
C-1 ORDINANCE NO. 321 AMENDING MORRO BAY MUNICIPAL CODE PROVI-
SIONS ON STANDARDS OF IMPROVEMENTS, PLANSy AND SPECIFICA-
TIONS (SECOND READING AND ADOPTION)
Mr. Napper stated Ordinance No. 321 is scheduled for second and
final reading.
MOTION: Councilmember Lemons moved Ordinance No. 321 be read by
title and number only. The motion was seconded by
Councilmember Odell and unanimously carried. (5-0)
Mr. Napper read Ordinance No. 321 by title and number only.
MOTION: Councilmember Odell moved for the adoption of Ordinance
No. 321 as final reading. The motion was seconded by
Councilmember Sheetz and unanimously carried. (5-0)
C-2 COUNCIL POLICY STATEMENT DEFINING APPEAL PERIOD FILING DATES
Mr. Napper reviewed this item noting the Community Development
Director and the City Attorney agree the 10-day period to file
appeals from Planning Commission decisions begins upon adoption
MINUTES - MORRO BAATY COUNCIL
REGULAR MEETING - APRIL 11, 1988
PAGE 15
of the formal Resolution outlining precise conditions. If Coun-
cil agrees, no action is necessary.
Councilmember Lemons asked if the 10 days indicated is calendar
days or working days; he said it could make a difference if holi-
days are involved in the timeperiod. Ms. Skousen stated it is
calendar days. She noted if an appellant believes he was unable
to appeal within the timeperiod allowed, he can always request
Council waive the 10-day requirement and hear his appeal.
Council agreed with the interpretation by staff; Mr. Napper
stated he would formulate it into a Council Policy Statement.
C-3 DETERMINATION OF NEW LEASE AGREEMENT OR PAS'.
LEASE SITE 30W-33W (MORRO BAY FUEL DOCK: INC.
Mr. Davis reviewed this item noting the past -due payment of
$2,500 was made today by Morro Bay Fuel Dock. They have re-
quested, through their attorney, Council continue this matter in
order to allow the attorney additional time to review the Master
Lease proposed by the City.
MOTION: Councilmember Sheetz moved this matter be held -over to
the April 25, 1988 Council meeting. The motion was
seconded by Councilmember Lemons and unanimously
carried. (5-0)
C-4 RECREATION AND PARKS COMMISSION RECOMMENDAT
Mr. Napper reviewed the Recreation and Parks Commission consider-
ation of constructing dressing rooms in the area of Morro Rock
for surfers. They determined the Local Coastal Program pro-
hibits construction in this area until a precise development plan
and EIR are prepared. The Coastal Commission will not permit the
construction until this plan has been accomplished. The Recre-
ation and Parks Commission, therefore, recommends this subject be
incorporated into any design plans when developing the Morro Rock
Precise Development Plan. Mr. Napper stated this process should
begin shortly by the Harbor Advisory Board.
MOTION: Councilmember Odell moved Council accept the report for
file, and direct that a dressing room facility be con-
sidered in the upcoming development of the Morro Rock
Precise Plan. The motion was seconded by Councilmember
Sheetz and unanimously carried.
F. ADJOURNMENT
MOTION: Councilmember Donnelly moved the meeting be adjourned
to Monday, April 18, 1988 at 5:00 p.m. in the City Hall
Conference Room to consider the Closed Session items
MINUTES - MORRO BA*TY COUNCIL
REGULAR MEETING - APRIL 11, 1988
PAGE 16
16
scheduled on this evening's agenda. The motion was
seconded by Councilmember Odell and unanimously
carried. (5-0)
The meeting adjourned at 11:40 p.m.
Recorded by:
ARDITH DAVIS
City Clerk
MORRO BAY
CITY COUNCIL
AGENDA
ADJOURNED REGULAR MEETING - APRIL 4, 1988
CITY HALL CONFERENCE ROOM - 5:00 P.M.
ROLL CALL
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 by standing. When recognized by the Mayor, please
come forward to the podium and state your name and address for the record.
Comments should normally be limited to three minutes.
C. UNFINISHED BUSINESS
C-1 INTERVIEW APPLICANTS FOR STREET ADVISORY COMMITTEE
E. CLOSED SESSION
E-1 GOVERNMENT CODE SECTION 54956.9(C), CITY -INITIATED LITIGATION; SIGN
CODE VIOLATIONS
E-2 GOVERNMENT CODE SECTION 54957.6(A), LABOR RELATIONS NEGOTIATIONS
E-3 GOVERNMENT CODE SECTION 54956.8, REAL PROPERTY NEGOTIATIONS; DEN-DULK
E-4 GOVERNMENT CODE SECTION 54956.9(A), PENDING LITIGATION; LOPERENA VS.
CITY OF MORRO BAY
F. ADJOURNMENT
COPIES OF STAFF REPORTS OR OTHER PUBLIC DOCUMENTATION
RELATING TO EACH ITEM OF BUSINESS REFERRED TO ON THIS
AGENDA ARE ON FILE IN THE OFFICE OF THE CITY CLERK AND
AVAILABLE FOR PUBLIC INSPECTION AND REPRODUCTION AT
COST.
1
MINUTES - MORRO BAY CITY COUNCIL
ADJOURNED REGULAR MEETING - APRIL 41 1988
CITY HALL CONFERENCE ROOM - 5:00 P.M.
Mayor Reddell called the meeting to order at 5:00 p.m.
PRESENT:
ABSENT:
STAFF:
PUBLIC COMMENT
None
Dale Reddell
Paul Donnelly
Jeff Odell
Rose Marie Sheetz
John Lemons
Gary Napper
Judy Skousen
C. UNFINISHED BUSINESS
Mayor
Councilmember
Councilmember
Councilmember
Councilmember
City Administrator
City Attorney
C-1 INTERVIEW APPLICANTS FOR STREET ADVISORY COMMITTEE
Council interviewed Craig Beecham and Karl Graab for the vacancy
on the Street Advisory Committee. The vacancy was created by the
resignation of Bill Tyler; Street Advisory Committee members
serve at the pleasure of Council with no set term of office.
MOTION: Councilmember Sheetz moved Craig Beecham to appointed
to the Street Advisory Committee. The motion was sec-
onded by Councilmember Donnelly and unanimously
carried. (4-0)
E. CLOSED SESSION
MOTION: Councilmember Sheetz moved the meeting adjourn to
Closed Session. The motion was seconded by Councilmem-
ber Odell and unanimously carried. (4-0)
Mayor Reddell announced Council is adjourning to Closed Session
to discuss City -initiated litigation in accordance with Govern-
ment Code Section 54956.9(c) regarding sign code violations; la-
bor relations negotiations, Government Code Section 54957.6(a);
real property negotiations, Government Code Section 54956.8 re-
garding Den -bulk; and pending litigation, Government Code Section
54956.9(a), in the matter of Loperena vs. City of Morro Bay.
Council adjourned to Closed Section at 5:25 p.m. and returned to
regular session at 6:40 p.m.
0
MINUTES -
ADJOURNED
PAGE 2
MOTION:
MORRO BAY CITY COUNCIL
REGULAR MEETING - APRIL 4, 1988
Councilmember Sheetz moved
The motion was seconded by
unanimously carried. (4-0)
The meeting adjourned at 6:40 p.m.
Recorded by:
GARY A. NAPPeR N
Deputy City Clerk
the meeting be adjourned.
Councilmember Donnelly and
MORRO BAY
CITY COUNCIL
AGENDA
REGULAR MEETING - MARCH 28, 1988
VETERANS MEMORIAL HALL - 6:00 P.M.
ROLL CALL
INVOCATION
PLEDGE OF ALLEGIANCE
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 by standing. When recognized by the Mayor, please
come forward to the podium and state your name and address for the record.
Comments should normally be limited to three minutes.
DECLARATION OF FUTURE AGENDA ITEMS
A. CONSENT CALENDAR
Unless an item is pulled for separate action by the City Council, the fol-
lowing actions are approved without discussion.
A-1 CITY COUNCIL MINUTES OF THE REGULAR MEETING OF MARCH 14, 1988, AND THE
ADJOURNED REGULAR MEETING OF MARCH 18, 1988
A-2 EXPENDITURE REPORT - FEBRUARY 1988
A-3 STATEMENT OF INVESTMENTS - FEBRUARY 1988
A-4 REJECTION OF LIABILITY CLAIM AGAINST THE CITY (MAINO CONSTRUCTION)
rA-5 RESOLUTION NO. 19-88 ACCEPTING DONATION OF UP TO $50,000 FROM WALTER
AXELSON FOR PAVING OF KERN AVENUE IN MEMORY OF HIS WIFE, JEANETTE
AXELSON
A-6 SET DATE FOR COUNCIL INTERVIEW OF STREET ADVISORY COMMITTEE CANDIDATES
A-7 RESOLUTION NO. 21-88 DECLARING WEEDS A NUISANCE AND FIRE HAZARD AND
AUTHORIZING THE PUBLIC WORKS DEPARTMENT TO PROCEED WITH ABATEMENT
A-8 NOTICE OF COMPLETION, PROJECT NO. PW87-07; HANDICAP RAMPS AND SIDEWALK
REPLACEMENT/STREET TREES PROGRAM
A-9 NOTICE OF COMPLETION, PROJECT NO. PW85-24; HIGHWAY 41 WATERLINE
1
11
A-10 NOTICE OF COMPLETION, PROJECT NO. PW87-03; STREET OVERLAY PROJECT
A-11 RESOLUTION NO. 20-88 AUTHORIZING EXECUTION OF A REVISED GRANT DEED FOR
PURCHASE OF REAL PROPERTY LOCATED AT EL MORRO ELEMENTARY SCHOOL;
COMMUNITY CENTER PROJECT
A-12 PROCLAMATION DECLARING APRIL 10-16, 1988 AS "MORRO BAY BUILDING SAFETY
WEEK"
A-13 RESOLUTION NO. 24-88 AUTHORIZING RECORDATION OF EASEMENT AGREEMENT FOR
NUTMEG WATER TANK (RIGHETTI)
A-14 PROCLAMATION DECLARING THE MONTH OF APRIL, 1988 AS "BARBERSHOP HARMONY
MONTH"
B. PUBLIC HEARINGS, REPORTS & APPEARANCES
B-1 RECREATION AND PARKS COMMISSION RECOMMENDATION ON MORRO BAY
BEAUTIFUL'S DONATION TO CONSTRUCT BANDSTAND (GAZEBO) IN CITY PARK
B-2 CONTINUED PUBLIC HEARING ON CERTIFICATION OF ENVIRONMENTAL IMPACT
REPORT FOR APPROPRIATIVE WATER RIGHTS FOR DEVELOPMENT OF TORO CREEK
WELL BASIN
B-3 PROPOSAL BY DALE JOSEPH EVERS FOR ART IN PUBLIC PLACES (BRONZE
SCULPTURE)
B-4 ORDINANCE NO. 321 AMENDING MORRO BAY MUNICIPAL CODE PROVISIONS ON
STANDARDS OF IMPROVEMENTS, PLANS, AND SPECIFICATIONS (FIRST READING)
B-5 RESOLUTION NO. 23-88 SETTING BALLOT MEASURE TEXT AND ORDERING CITY
MEASURE ON NOVEMBER 1988 GENERAL ELECTION BALLOT FOR ELECTORATE
AUTHORIZATION TO INCREASE CITY BUSINESS LICENSE TAX FEES, WITH
AUTOMATIC ANNUAL INCREASES THEREAFTER
C. UNFINISHED BUSINESS
C-1 PLAN OF ACTION AND APPROPRIATION OF FUNDS TO EVALUATE DEVELOPMENT OF
DOMENGHINI FLAT WELL WATER PROJECT
D. NEW BUSINESS
D-1 REQUEST TO DISCUSS CHAPTER 7, SECTION D(4) AND E, OF MORRO BAY LOCAL
COASTAL PLAN REGARDING MORRO BAY POWER PLANT
D-2 REQUEST FOR JOINT MEETING WITH WATER ADVISORY BOARD TO DISCUSS THE
1989 WATER ALLOCATION PROGRAM
D-3 RESOLUTION NO. 22-88 APPROVING SUBLEASE OPERATION ON LEASE SITE 129W-
133W (DBA ESTERO BAY FISH CO.) TO CORDERO/WINSTON AND CO.
2
E. CLOSED SESSION
E-1 GOVERNMENT CODE SECTION 54956.9(C), CITY -INITIATED LITIGATION; SIGN
CODE VIOLATIONS
E-2 GOVERNMENT CODE SECTION 54957.6(A), LABOR RELATIONS NEGOTIATIONS
E-3 GOVERNMENT CODE SECTION 54956.81 REAL PROPERTY NEGOTIATIONS; DEN-DULK
E-4 GOVERNMENT CODE SECTION 54956.9(A), PENDING LITIGATION; LOPERENA-VS.
CITY OF MORRO BAY
F. ADJOURNMENT
J
COPIES OF STAFF REPORTS OR OTHER PUBLIC DOCUMENTATION
RELATING TO EACH ITEM OF BUSINESS REFERRED TO ON THIS
AGENDA ARE ON FILE IN THE OFFICE OF THE CITY CLERK AND
AVAILABLE FOR PUBLIC INSPECTION AND REPRODUCTION AT
COST.
9
• 9
MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING - MARCH 28, 1988
VETERANS MEMORIAL HALL - 6:00 P.M.
Mayor Reddell called the meeting to order at 6:05 p.m.
ROLL CALL
PRESENT: Dale Reddell
Paul Donnelly
John Lemons
Jeff Odell
Rose Marie Sheetz
ABSENT: None
STAFF: Gary Napper
Judy Skousen
Louise Burt
Alan Davis
Forrest Henderson
Nick Nichols
Steve Wolter
Ardith Davis
Mayor
Councilmember
Councilmember
Councilmember
Councilmember
City Administrator
City Attorney
Finance Director
Harbor Director
Asst. to City Admin.
Public Works Dir.
Recreation & Parks Dir.
City Clerk
Reverend Jim Kennemur of the First Christian Church gave the in-
vocation, and representatives of the American Veterans led the
Pledge of Allegiance.
PUBLIC COMMENT
1. Warren Dorn distributed a letter from the City of
Avalon regarding their dual water system; he requested the City
Clerk read the letter dated March 24, 1988 aloud. Mr. Dorn ex-
pounded on the merits of using salt water for certain uses, and
encouraged Council to investigate the matter as a possible water
conservation measure for Morro Bay.
2. Ray Kaltenbach stated Mr. Dorn brought this item up
when he was on the Council; he did not believe the City's sewer
plant could handle the salt water from a dual water system. He
questioned if it is so good, why is it not used everywhere
3. Charles Palmer, 485 Estero, requested he be allowed to
speak on Items C-1 and D-2 when they come up for consideration.
He also requested Councilmember Odell place him on his list of
people interested in workshops; he is interested in water
discussions.
4. Howard Gaines, 441 Orcas, discussed Item A-7 on the
agenda regarding the City's Weed Abatement Program. He objected
MINUTES - MORRO BA4ITY COUNCIL •
REGULAR MEETING - MARCH 28, 1988
PAGE 2
to the 2 week period allowed for removing weeds, and explained he
would be using a chemical system which takes 3 weeks to com-
pletely kill all weeds. He requested Council expand the timepe-
riod allotted to kill and remove weeds.
DECLARATION OF FUTURE AGENDA ITEMS
1. Councilmember Odell requested an agenda item be sched-
uled regarding the concept of a vessel discount for waterfront
lease sites who help facilitate commercial fishermen.
2. Councilmember Lemons requested staff conduct an inves-
tigation on the dual water system concept presented by Mr. Dorn.
Councilmember Odell requested the investigation include gray wa-
ter systems.
3 Councilmember Lemons asked when the ballot proposal re-
garding the San Bernardo Creek Dam is scheduled to be on the
agenda; Mr. Napper stated the item will be on the next meeting,
April 11, 1988.
4. Councilmember Odell requested an agenda item be sched-
uled to adopt a Proclamation on "You've Got the Power. Register
to Vote!" for the week of April 18-22, 1988.
A. CONSENT CALENDAR
A-1 CITY COUNCIL MINUTES OF THE REGULAR MEETING OF MARCH 14
1988, AND THE ADJOURNED REGULAR MEETING OF MARCH 18, 1988
Mr. Napper recommended Council approve the minutes as submitted.
A-2 EXPENDITURE REPORT - FEBRUARY 1988
Mr. Napper recommended Council approve the report as submitted.
A-3 STATEMENT OF INVESTMENTS - FEBRUARY 1988
Mr. Napper recommended Council receive the Statement for file.
A-4 REJECTION OF LIABILITY CLAIM AGAINST THE CITY (MAINO
CONSTRUCTION)
Mr. Napper recommended Council deny the claim, and authorize the
City Clerk to sign and mail the rejection letter.
A-5 RESOLUTION NO. 19-88 ACCEPTING DONATION OF UP TO $50,000
FROM WALTER AXELSON FOR PAVING OF KERN AVENUE IN MEMORY OF
HIS WIFE, JEANETTE AXELSON
Mr. Napper recommended Council adopt Resolution No. 19-88.
MINUTES - MORRO BAMITY COUNCIL
REGULAR MEETING - MARCH 28, 1988
PAGE 3
A-6 SET DATE FOR COUNCIL INTERVIEW OF STREET
Council agreed to interview applicants Thursday, March 31st at
5:15 p.m. in the City Hall Conference Room.
A-7 RESOLUTION NO. 21-88 AUTHORIZING STAFF TO PROCEED TO CONDUCT
1988 CITY WEED ABATEMENT PROGRAM
Mr. Napper recommended Council adopt Resolution No. 21-88 declar-
ing weeds a fire and health hazard, and setting May 9th as the
public hearing to obtain comments from lot owners receiving no-
tice to abate their properties.
Councilmember Donnelly asked to discuss Mr. Gaines' request for a
3-week period to abate the weeds on his parcel. Council agreed
Mr. Gaines could begin abatement earlier than required; however,
abatement is required to be completed by the specified dates.
Mr. Nichols was instructed to inform Mr. Gaines of this decision
in writing.
A-8
Mr. Napper recommended Council accept the project as complete,
and authorize the City Clerk to sign and record the Notice of
Completion.
A-9 NOTICE OF COMPLETION, PROJECT NO. PW85-24; HIGHWAY 41
WATERLINE
Mr. Napper recommended Council accept the project as complete,
and authorize the City Clerk to sign and record the Notice of
Completion.
A-10 NOTICE OF COMPLETION, PROJECT NO. PW87-03; STREET OVERLAY
Mr. Napper recommended Council accept the project as complete,
and authorize the City Clerk to sign and record the Notice of
Completion.
A-11 RESOLUTION NO. 20-88 AUTHORIZING EXECUTION OF A REVISED
GRANT DEED FOR PURCHASE OF REAL PROPERTY LOCATED AT EL MORRO
ELEMENTARY SCHOOL; COMMUNITY CENTER PROJECT
Mr. Napper recommended Council adopt Resolution No. 20-88.
MINUTES - MORRO BA`�ITY COUNCIL •
REGULAR MEETING - MARCH 28, 1988
PAGE 4
A-12 PROCLAMATION DECLARING APRIL 10-16. 1988 AS "MORRO BAY
Mr. Napper recommended Council authorize the Mayor to sign the
Proclamation.
A-13 RESOLUTION NO. 24-88 APPROVING EASEMENT AGREEMENT FOR NUTMEG
WATER TANK (RIGHETTI)
Mr. Napper recommended Council adopt Resolution No. 24-88.
A-14 PROCLAMATION DECLARING THE MONTH OF APRIL, 1988 AS
Mr. Napper recommended Council authorize the Mayor to sign the
Proclamation.
Councilmember Odell requested the Barbershop Quartet be invited
to sing at the next Council meeting.
MOTION: Councilmember Lemons moved for the approval of the Con-
sent Calendar. The motion was seconded by Councilmem-
ber Sheetz and unanimously carried. (5-0)
B. PUBLIC HEARINGS. REPORTS & APPEARANCES
B-1 RECREATION AND PARKS COMMISSION RECOMMENDATION ON MORRO BAY
BEAUTIFUL S DONATION TO CONSTRUCT BANDSTAND (GAZEBO) IN CITY
PARK
Mr. Wolter reviewed the history of Morro Bay Beautiful's dona-
tion, including their offer to donate the gazebo in 1985. He
stated their offer is contingent on the gazebo being 20 feet in
diameter, located in City Park, and of.an architecture chosen by
Morro Bay Beautiful.
The Recreation and Parks Commission, on a split vote, recommended
acceptance of the gazebo for City Park on condition the architec-
ture be low-key, natural in form and texture, and unobtrusive;
and, the location of the gazebo be in the area currently occupied
by the flag and Veterans monument.
Mr. Wolter also reviewed the donation in relation to various City
park plans, aesthetics, and location.
Mayor Reddell asked questions regarding gazebos in other cities.
There was discussion regarding the difference between a gazebo
and a picnic shelter.
Mayor Reddell opened the hearing to the public for comments.
MINUTES - MORRO BAAITY COUNCIL
REGULAR MEETING - MARCH 28, 1988
PAGE 5
Clarence Ragland, representing AmVets, was concerned regarding
the suggestion to place the gazebo where the Veterans monument is
currently located in City Park. If the monument is to be moved,
he made suggestions for enhancing and emphasizing the memorial.
Joan Silva, 934 Anchor, presented a petition with 800 signatures
opposing the gazebo in City Park. She also suggested if Mayor
Reddell and Councilmember Lemons were members of Morro Bay Beau-
tiful, their voting on this matter could be a conflict of inter-
est for them.
Craig Amspoker, representing AmVets, was not opposed to the
gazebo, but did not favor displacing the Veterans monument. Jane
Masterson, Disabled American Veterans, also expressed the same
sentiments, and said the gazebo should be in a different park.
Bruce Risley, Civic Action League, opposed the gazebo's location
in City Park. He noted the American Legion's contribution to the
Veterans Memorial Building, and other organizational donations
without conditions; he suggested Morro Bay Beautiful make their
donation without strings attached. He encouraged Council to ac-
cept the gazebo, but not for City Park, consistent with the deci-
sion of the previous Council.
Julie Deis, elementary school student, protested the gazebo in
City Park, stating there would be less room to play in an already
small park and grass would be destroyed.
Katherine Walling stated a member of the White Caps Band had told
her the size of the proposed gazebo is not adequate for the White
Caps. She said another basketball court is needed in Morro Bay
and suggested Morro Bay Beautiful donate something that can be
used all the time and will not become an eyesore.
Charles Palmer suggested placing the matter on the November 1988
ballot and let the people decide if the gazebo should be placed
in City Park.
Warren Dorn, 212 Beach Street, presented a column from the local
newspaper written by Linnea Waltz concerning the gazebo and asked
that it be placed into the record. He referred to presentations
against the gazebo as demagoguery and misinformation; he asserted
the gazebo was not his idea, and it was not his idea to place it
where the Veterans flag and monument is. Morro Bay Beautiful
suggested it be placed at the front of the park in order to im-
prove the entrance into the community. He stated Morro Bay Beau-
tiful is giving the gazebo as a gift to the City and they can put
it wherever they want, as long as it is in City Park.
Ray Kaltenbach asserted the people of Morro Bay should decide
where a gazebo should be; not Morro Bay Beautiful.
MINUTES - MORRO BAOITY COUNCIL it
REGULAR MEETING - MARCH 28, 1988
PAGE 6
Mary Goodmarshall, 1145 Balboa, stated the Morro Bay Grange
planted the tree in City Park, and it should not be removed to
make room for the gazebo.
John Baker spoke in favor of a gazebo at City Park, but not at
the flag pole location. He favored the east point of the Park
for the gazebo, and trim the existing tree.
Howard Gaines agreed with Mr. Palmer the matter should be put to
the voters.
Jim Rodgers discussed political factions in Morro Bay; he agreed
with the Veterans their monument should not be replaced by the
gazebo.
Imogene Haidet, 2861 Juniper, believed the matter should be put
on a ballot.
Earl Night was in favor of a gazebo; he believed the symbol of a
gazebo might take the meanness out of people. He also noted how
Mr. Dorn has done positive things to clean City streets and
placed trash bins around town.
Joan Silva stated people are generally in favor of a gazebo, but
not at City Park. She questioned who would maintain or insure
the structure, and said the President of the Morro Bay Art Asso-
ciation is against the gazebo in City Park.
Patty Bernard, a member of Morro Bay Beautiful, admitted she is
one of the people who started the drive to place a gazebo in City
Park. She said a park is for everyone and one thing people are
currently unable to enjoy in City Park is music. She also stated
Morro Bay Beautiful has said from the beginning they will main-
tain the gazebo.
Warren Dorn stated the gazebo is being offered as a gift to the
City. Morro Bay Beautiful does not involve itself in politics,
and the California Conservation Corps., who will be building the
gazebo, also does not involve itself in politics. Therefore, if
the Council's decision is to place the matter on a ballot, the
gift is no longer offered.
Ben Sanders, 2420 Nutmeg, favored Site A for placement of the
gazebo; Site A is at the east point of City Park.
Jane Masterson commented on the current parking problems during
Art -in -the -Park activities, and believed parking would also be a
problem with gazebo activities.
Mayor Reddell closed the hearing to the public.
MINUTES - MORRO BAITY COUNCIL
REGULAR MEETING - MARCH 28, 1988
PAGE 7
Councilmember Odell discussed the various locations to place a
gazebo in City Park, and suggested it be placed on the west end
of the Park near the children's playground and where future
restrooms are to be located according to the Park's Master Plan.
He thought placing the gazebo at the east point of the Park would
create a traffic nuisance during activities conducted on the
gazebo.
Councilmember Donnelly noted if the City does not accept City
Park for the location, we will not see the gift. He preferred
locations A or B, but not near the Veterans' memorial.
Councilmember Sheetz considered a gazebo an attractive nuisance;
however, they can be a delightful addition to a park. She was
not in favor of a gazebo at City Park because she believes the
Park is too small, and did not see why the gift has to come to
the City with strings attached. She suggested the Morro Rock
area as an alternative site.
There was discussion regarding the recommendation to relocate the
flag and Veterans monument; Mr. Wolter stated that recommendation
was made because the Recreation and Parks Commission did not fa-
vor the gazebo at the east point of City Park because of design
problems. The Commission realized AmVets would have to be con-
tacted regarding the relocation and were hoping a compromise
could be reached.
Councilmember Lemons asked if Morro Bay Beautiful was agreeable
to the condition the City retain architectural control on design
of the gazebo? Mr. Dorn stated that was acceptable; however, he
requested a member of Morro Bay Beautiful be allowed input on the
design.
Mayor Reddell stated the issue has turned into a personality sit-
uation and there is only one way to solve it; if the gazebo is
placed in City Park and it doesn't work, it can be removed. If
it is not placed in City Park, the City will never know if it
will work or not. He was in favor of accepting the gift for City
Park with conditions.
MOTION: Councilmember Lemons moved Council accept the gift and
annual maintenance as offered by Morro Bay Beautiful,
with
the following conditions:
1.
The structure will be used for group activities
under City permit procedures;
2.
After a 3-year period, there will be a reassess-
ment of the track record of the gazebo and the
item will come back to Council for whatever action
they choose to take at that time;
3.
There will a Siting and Design Committee appointed
with the following organizations asked to select
one member each to serve on the committee: Recre-
MINUTES - MORRO BA*ITY COUNCIL
REGULAR MEETING - MARCH 28, 1988
PAGE 8
ation and Parks Commission, Art Association, Cham-
ber of Commerce, City Council, Morro Bay Beauti-
ful, and Civic Action League;
4. The Committee will report their recommendations as
to site location by June 1, 1988;
5. The Committee will report their recommendations to
the City Council for design of the structure by
August 1, 1988.
Councilmember Donnelly suggested a representative from AmVets
also be appointed to the Committee, and Councilmember Lemons
agreed. Mayor Reddell suggested a citizen at large, and Coun-
cilmember Sheetz suggested someone from the Grange. Councilmem-
ber Lemons believed a 7-member committee was enough.
Councilmember Lemons amended his motion to include a
representatives from the Veterans. The motion was sec-
onded by Councilmember Donnelly and the motion carried,
with Councilmember Sheetz voting no. (4-1)
Council recessed from 8:17 p.m. to 8:35 p.m.
B-2 CONTINUED PUBLIC HEARING ON CERTIFICATION OF ENVIRONMENTAL
Mr. Nichols reviewed this item noting Council previously post-
poned action on the EIR to given Chevron 30 days to respond.
Chevron's comments have been attached and staff suggests Council
again defer action on the EIR to allow an opportunity to analyze
the scope and expense of additional EIR work to address the con-
cerns expressed by Chevron. Staff acknowledges Chevron's support
is essential to the project's success.
Mayor Reddell attempted to ascertain why Chevron's agreement was
not enlisted prior to this point. He was also concerned he had
to read in the Telegram -Tribune the total cost of the project is
now up to $1.7 million. Initially it was at $500,000, and in
January was up to $1.5 million. Mr. Nichols stated everything
that comes out of his department is his responsibility; the pro-
ject cost last year was unknown and estimated to be one-half mil-
lion dollars, but the figures have been refined.
Mayor Reddell requested a cost breakdown on all water projects,
money spent thus far and anticipated future costs. Councilmember
Sheetz stated she had asked if a working agreement had been made
with Chevron and had been assured there was one. Mayor Reddell
suggested the Council take a look at the Water Engineering De-
partment to see what is needed.
Mayor Reddell opened the hearing to the public.
MINUTES - MORRO BASITY COUNCIL •
REGULAR MEETING - MARCH 28, 1988
PAGE 9
Randy Ruff, 485 Shasta, stated Chevron pointed out many of the
procedural deficiencies in the EIR. He believed steps should be
taken to get control of this matter and look at all projects in
the works. He noted CAL has previously pointed out the need to
review the City's water management plans and operations.
Charles Palmer endorsed Mr. Ruff's concerns. He perceived the
day when riparian water rights will be lost to watershed
management.
Mike Armstrong, a farmer in Toro Creek, was concerned with future
agriculture uses in the canyon. He objected to the fact the City
would not assure the farmers they would not protest future agri-
culture appropriations.
Mayor Reddell closed the hearing to the public.
MOTION: Councilmember Sheetz moved Council remand the EIR back
to staff to ascertain scope and expense of additional
EIR work that addresses Chevron's concerns on this wa-
ter project. The motion was seconded by Councilmember
Lemons and unanimously carried. (5-0)
B-3 PROPOSAL BY DALE JOSEPH EVERS FOR ART IN PUBLIC PLACES
(BRONZE SCULPTURE)
Mr. Napper reviewed the proposal by Dale Joseph Evers to place a
bronze sculpture in the City including estimated costs at $80,000
to $120,000. He stated the artist was scheduled to make a pre-
sentation this evening; however, in view of the staff recommenda-
tion to refer the item to the Recreation and Parks Commission,
Mr. Evers decided to make his presentation at that time.
Councilmember Odell suggested either a contest be conducted for
art in public places or the item be let for bid. He also be-
lieved the California Arts Council and National Endowment of the
Arts be contacted, as endowment monies usually require competi-
tive requests for proposals.
Councilmember Lemons stated he had no objection to the general
idea, but believed RFP's should be solicited.
Mayor Reddell opened the hearing to the public for comments;
there were no comments and the hearing was closed.
MOTION: Councilmember Lemons moved Council refer the concept to
the Recreation and Parks Commission for their refine-
ment of the public art idea, but it was Council's opin-
ion any such project should involve soliciting propos-
als from artists in the art community rather than going
with this specific proposal.
MINUTES - MORRO BA)OITY COUNCIL •
REGULAR MEETING - MARCH 28, 1988
PAGE 10
Councilmember Odell suggested the motion be amended to include
contact with the California Arts Council and the National Endow-
ment of the Arts.
Councilmember Lemons amended his motion to include con-
tact be made with the California Arts Council and the
National Endowment of the Arts. The motion was sec-
onded by Councilmember Odell and unanimously carried.
(5-0)
Mayor Reddell suggested the island at the intersection of Quin-
tana Road, Morro Bay Blvd., and Hwy. 1 be included in the search
for a location site.
B-4 ORDINANCE NO. 321 AMENDING MORRO BAY MUNICIPAL
PROVISIONS ON STANDARDS OF IMPROVEMENTS. PLANS
Mr. Nichols reviewed the proposed Ordinance which is basically a
housekeeping action. Copies of the Standard Drawing and Specifi-
cations have been made available to Council for review. The new
Specifications have been in use since October 1987, and the
Street Advisory Committee reviewed and supported the new
Standards.
Mayor Reddell opened the hearing to the public for comments;
there were no comments and the hearing was closed.
MOTION: Councilmember Sheetz moved Ordinance No. 321 be read by
title and number only. The motion was seconded by
Councilmember Lemons and unanimously carried. (5-0)
Mr. Napper read Ordinance No. 321 by title and number only.
Councilmember Donnelly commended the City Engineer and his de-
partment for their fine work on the plans and specifications.
MOTION: Councilmember Sheetz moved this constitute the first
reading of Ordinance No. 321. The motion was seconded
by Councilmember Lemons and unanimously carried. (5-0)
B-5 RESOLUTION NO. 23-88 SETTING BALLOT MEASURE TEXT AND ORDER -
Louise Burt reviewed Proposition 62 adopted in 1986 which pro-
hibits any new or increased taxes without voter approval. In the
past, the City increased business license rates annually in ac-
cordance with the Consumer Price Index. The proposed ballot mea-
sure would allow the City to annually increase business license
MINUTES - MORRO BASITY COUNCIL 46
REGULAR MEETING - MARCH 28, 1988
PAGE 11
rates and makes the action retroactive to 1986, pursuant to the
new State law.
Councilmember Lemons questioned Council conflict of interest in
voting on this matter if Councilmembers have business licenses.
Ms. Skousen stated this item would apply to everyone in the gen-
eral public equally, so she did not believe a conflict of inter-
ests exists on the part of Councilmembers with business licenses.
Councilmember Lemons asked what happens if the CPI goes down?
There was discussion regarding this possibility with Mr. Napper
suggesting staff revise the language to address that prospect.
He asked if Council wished the language to indicate the rates
stayed the same if the CPI goes down, or should they be adjusted
according to all changes, up or down, in the CPI? Councilmember
Sheetz believed the rates should go up or down with the CPI;
Councilmembers agreed.
Mayor Reddell opened the hearing to the public for comments.
Howard Gaines stated he would like to read Proposition 62 before
Council acts on this matter. He wanted to know if the Proposi-
tion specifies the exact inflationary factor. Councilmember
Lemons stated the Proposition does not speak to inflation, just
the increase of tax by vote; City staff is recommending the an-
nual escalator clause.
Mayor Reddell closed the hearing to the public.
MOTION: Councilmember Lemons moved this item be referred back
to staff for modification and returned at the next
meeting. The motion was seconded by Councilmember
Sheetz and unanimously carried. (5-0)
C. UNFINISHED BUSINESS
C-1 PLAN OF ACTION AND APPROPRIATION OF FUNDS TO EVALUATE
DEVELOPMENT OF DOMENGHINI FLAT WELL WATER PROJECT
Mr. Nichols reviewed his staff report outlining how the City
would handle any appropriative permit application protests, and
the proposed project schedule and costs. The next step to take
in the process is to prepare an EIR.
Mayor Reddell questioned costs to the consumer for Domenghini wa-
ter; Mr. Nichols said it could be $500 per acre foot delivered to
the customer. He noted the Coastal Conservancy is looking at
this property for an environmental habitat enhancement project.
There were questions with regard to diligent progress in pursuing
this project; Mr. Nichols stated the SWRCB frowns on no activity,
MINUTES - MORRO
REGULAR MEETING
PAGE 12
but there are
completed.
BA*ITY COUNCIL
MARCH 28, 1988
no certain dates by
r-1
U
when items have to be
Councilmember Sheetz asked how much the property owners were ask-
ing for the Domenghini property when the previous Council was
considering purchasing it? Mr. Napper said $1.2 million.
Councilmember Lemons suggested negotiations be started with the
Coastal Land Conservancy regarding a joint project. Mayor
Reddell also believed it time to begin negotiations with the
Domenghini interests in order to reach an agreement with them if
the City pursues appropriative water rights on this property.
Councilmember Sheetz disagreed, and stated the City needs to look
at all water projects to see which have the greatest benefits be-
fore beginning negotiations.
Councilmember Donnelly asked if the project figures presented
would be realistic 4 years from now? Mr. Nichols stated he tried
to be conservative, and used Toro Creek as a model; he expressed
confidence with these projections.
Council agreed the City Administrator and Public Works Director
should meet with the Domenghini interests to begin property
negotiations.
Bruce Risley stated the Mayor is not entitled to sit, discuss,
and vote on this matter because of a conflict of interest since
he is in partnership with the partner of one of the attorneys
that represents the land interests in this case. Mr. Risley re-
viewed Council actions in 1984 to obtain supplemental water. He
stated the Domenghini area was not one of the areas recommended
for obtaining water; it is a flood plain area, and the water in
the basin comes from the same basin the City already has wells
in. He said nitrates in the water increase during dry years to a
dangerous level. He suggested Council pursue Toro Creek water,
the San Bernardo Creek dam, and stream diversion programs.
Charles Palmer noted a report he presented to Council a few
months ago regarding drought conditions in Morro Bay in 1985. He
said the City is taking all the effluent water that is coming
from the California Men's Colony during dry periods.
Ed Ewing commended the Council for pursuing water on the
Domenghini property.
Ray Kaltenbach stated the last Council pursued water diligently,
and the Domenghini water is a myth.
Katherine Walling said the lack of water in Chorro Willows
changed the character of that area because of salt water
intrusion.
MINUTES - MORRO BAMITY COUNCIL
REGULAR MEETING - MARCH 28, 1988
PAGE 13
Howard Gaines stated if Council is going into "hock" of the City,
the residents should be entitled to a prospectus.
Council discussed reviewing existing data and documents regarding
Domenghini property and requested a report from the Water Engi-
neer on the project's possibilities as indicated by the reports.
There was Council consensus for the City Administrator and Public
Works Director to meet with the Domenghini interests regarding
purchase of the property, and to report back the results of nego-
tiations by April 25th.
MOTION: Councilmember Lemons moved a progress report be made 2
meetings from now unless enough progress is made to re-
port back at the next meeting. The motion was seconded
by Councilmember Donnelly and unanimously carried.
(5-0)
Council recessed at 10:24 p.m. and reconvened at 10:30 p.m.
D. NEW BUSINESS
D-3 RESOLUTION NO. 22-88 APPROVING SUBLEASE
SITE 129W-133W (ESTERO BAY FISH CO.) TO
Council decided to take this item out of order due to the number
of people waiting for a decision.
Alan Davis reviewed the request of Estero Bay Fish Co. to sub-
lease their operation on Lease Site 129W-133W to Cordero/Winston
& Co. He noted Cordero & Winston have been operating a similar
business at the Qualman Oyster site for the past year. Although
there have been financial difficulties for the Cordero/Winston
operation, the Master Lessee (Mr. Guggia) is responsible for all
obligations. Mr. Davis reviewed the maintenance obligations to
be corrected by the Lessee; revetment repairs are to be completed
by October 1988, and plans for same have been approved by the
City Engineer. Mr. Davis recommended approval of the sublease
subject to the timetable for maintenance/revetment repairs, and
that Cordero/Winston & Co. operate only one facility on the
waterfront.
MOTION: Councilmember Sheetz moved Council adopt Resolution No.
22-88, with conditions. The motion was seconded by
Councilmember Lemons and unanimously carried. (5-0)
D-1 REQUEST TO DISCUSS CHAPTER 7, SECTION D(4) AND E, OF MORRO
BAY LOCAL COASTAL PLAN REGARDING MORRO BAY POWER PLANT
Councilmember Odell reviewed his memo and discussed the impact of
P.G.&E.'s intake of 300,000 gallons of water per minute on the
MINUTES - MORRO BAY&TY COUNCIL •
REGULAR MEETING - MARCH 281 1988
PAGE 14
siltation and shoaling in the Entrance Channel and the seaward
portion of the Navy Channel. He noted P.G.&E. has expressed con-
cern regarding this information, and he suggested the City look
at the wording in the Land Use Plan for possible revision. He
also intended to bring this matter up with the County Interagency
Task Force on Back Bay. Mr. Napper indicated he would write to
P.G. & E. to enlist their cooperation
D-2 REQUEST FOR JOINT MEETING
WATER
Councilmember Odell stated he had requested this meeting so the
City could take a comprehensive look at the water programs.
Mayor Reddell suggested Council not schedule a date for the joint
meeting until after staff has provided the status report on water
program requested by Council tonight.
No action was taken on this item.
F.
Council decided to schedule Monday, April 4th to interview appli-
cants for the Street Advisory Board, and take up the matters
scheduled under Closed Session. Mr. Napper stated item A-6 must
then be reconsidered; Council earlier set Thursday, March 31st at
5:15 p.m. to interview Street Advisory Board applicants by ap-
proving the Consent Calendar.
MOTION: Councilmember Lemons moved Item A-6 be reconsidered.
The motion was seconded by Councilmember Sheetz and
unanimously carried. (5-0)
A-6 SET DATE FOR COUNCIL INTERVIEW OF STREET ADVISORY COMMITTEE
CANDIDATES
MOTION: Councilmember Sheetz moved the meeting adjourn to Mon-
day, April 4, 1988 at 5:00 p.m. in the City Hall Con-
ference Room to interview applicants for the Street Ad-
visory Board, and to consider the items scheduled this
evening for Closed Session. The motion was seconded by
Councilmember Lemons and unanimously carried. (5-0)
The meeting adjourned at 11:05 p.m.
Recorded by:
ARDITH DAVIS
City Clerk
MORRO BAY
CITY COUNCIL
AGENDA
JOINT MEETING WITH RECREATION & PARKS COMMISSION
ADJOURNED REGULAR MEETING - MARCH 22, 1988
VETERANS MEMORIAL HALL - 7:00 P.M.
ROLL CALL
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 by standing. When recognized by the Mayor, please
come forward to the podium and state your name and address for the record.
Comments should normally be limited to three minutes.
B. PUBLIC HEARINGS, REPORTS & APPEARANCES
B-1 ATTENDANCE/FACILITY USE REPORTS FOR DEPARTMENT ACTIVITIES FOR FEBRUARY
1988
B-2 REPORT ON PAST DUE USE OF SCHOOL DISTRICT FACILITIES AND FUTURE
COOPERATION
B-3 REVIEW OF CONCEPTUAL DESIGN FOR DEL MAR PARK MASTER PLAN REVISION
C. UNFINISHED BUSINESS
C-1 STATUS REPORT ON COMMUNITY CENTER PROJECT
D. NEW BUSINESS
D-1 DISCUSSION OF WORK PROGRAM NEEDS FOR 1988-89 FISCAL YEAR
D-2 PERFORMANCE AND FUNCTION OF RECREATION AND PARKS COMMISSION
F. ADJOURNMENT
COPIES OF STAFF REPORTS OR OTHER PUBLIC DOCUMENTATION
RELATING TO EACH ITEM OF BUSINESS REFERRED TO ON THIS
AGENDA ARE ON FILE IN THE OFFICE OF THE CITY CLERK AND
AVAILABLE FOR PUBLIC INSPECTION AND REPRODUCTION AT
COST.
0
MINUTES - MORRO BAY CITY COUNCIL
AND RECREATION AND PARKS COMMISSION
JOINT MEETING - MARCH 22, 1988
VETERANS MEMORIAL HALL - 7:00 P.M.
Mayor Reddell called the meeting to order at 7:08 p.m.
POT.T. CAT.T.
PRESENT: Dale
Reddell
Mayor
Paul
Donnelly
Councilmember
John
Lemons
Councilmember
Jeff
Odell
Councilmember
Rose
Marie Sheetz
Councilmember
RECREATION AND PARKS COMMISSION
PRESENT:
Jim Hartzell
Vice -Chair
Charles Clarke
Commissioner
Paula Daillak
Commissioner
Bert Griffin
Commissioner
ABSENT:
Cheryl Halterman
Chairperson
Bob Meyers
Comm. (Seniors)
Geoff Moreland
Comm. (Youth)
STAFF:
Gary Napper
City Administrator
Tom Freeman
Facility Coordinator
Andrea Lueker-Tomkins
Rec. Sports Coordinator
Julie Spier
Recreation Coordinator
Steve Wolter
Rec. & Parks Director
Elane Novak
Deputy City Clerk
PUBLIC COMMENT
PERIOD
No public comments were received.
Chuck Clarke, Recreation and Parks Commissioner gave a brief
report concerning recreation activities. In one year's time,
Recreation staff planned 1,095 activities. He named some of the
different activities and indicated a number of activities might
go into planning one particular event; in his opinion, the
Recreation and Parks Department provides a tremendous
contribution to the quality of life in Morro Bay.
B. PUBLIC HEARINGS, REPORTS & APPEARANCES
B-1 ATTENDANCE/FACILITY USE REPORTS FOR DEPARTMENT ACTIVITIES
FOR FEBRUARY 1988
Julie Spier outlined her monthly report about the Cultural Arts
and Services classes and attendance; enrollment was down by about
MINUTES - MORRO BAY CITY COUNCIL •
JOINT MEETING - MARCH 22, 1988
PAGE 2
30% due to the 4-day holiday and lack of participation. Classes
and programs are continuously evaluated for life -cycle and fees.
A brief discussion followed about the upcoming Spring Festival
of the Arts which will last for eleven (11) days, including a
Murder Mystery Party to take place May 20th.
Andrea Lueker-Tomkins provided the monthly report on Sports
Programs, noting the upcoming softball season and tournaments.
Councilmember Lemons asked why our Softball Program cost $300 per
team as opposed to $150 per team as charged by the City of San
Luis Obispo? Andrea responded by saying that we used more
expensive balls, and the fee also includes administrative costs.
San Luis Obispo uses less expensive balls and does not charge for
staff to manage their program. Commissioner Paula Daillak also
mentioned that people would rather play in Morro Bay as they
liked our field conditions.
Councilmember Lemons mentioned he is still interested in a Castle
to Rock Marathon Run. It was noted that a good deal of the
course could be on Highway 1. It was mentioned that Cal Trans
would probably block off half of the Highway for the run. Steve
Wolter indicated the marathon was a real possiblility and that he
would look into it.
Tom Freeman gave the final monthly report on facility and parks
use. Mr. Freeman indicated there was no way to get an actual
number of people who use the parks, but use appears to be
gradually increasing. The demolition of the Recreation Hall to
build the Community Center has caused a temporary shortage of
facility space to rent.
The increase in the use of the parks since 1981-82 is really
amazing both at Del Mar and other City parks. Since the arrival
of the Golden Hinde, many school children and other organizations
are picnicking in the parks after touring the Golden Hinde.
He also mentioned there is a problem with the homeless in both
the City Park and Lila Keiser Parks; City Park gets a lot of
people through the day and Keiser Park has people who sleep in
the natural shrubbery surrounding that park.
Mr. Napper indicated the City is aware of the problem and said
Chief of Police Howell has asked his officers to do brief walk-
throughs in the Parks. Hopefully, that will help the problem.
It was also noted the parks close at sundown, so a $250 fine
could be imposed if anyone is in the park after nightfall.
MOTION: Councilmember Sheetz made a motion to accept the three
reports as presented, and Councilmember Lemons seconded
the motion. The motion was unanimously carried (5-0).
MINUTES - MORRO BAY CITY COUNCIL
JOINT MEETING - MARCH 22, 1988
PAGE 3
B-2 REPORT ON PAST USE OF SCHOOL DISTRICT FACILITIES AND FUTURE
CONSIDERATION
Steve Wolter provided the report outlining how much the City
uses and relies upon the Morro Elementary School facilities for
PARTNERS Program and other recreation classes. He summarized the
uses of Del Mar School facilities and use of the high school
pool, weight room, and gymnasium. He explained how City staff
supervises, cleans -up, and helps minimize vandalism of school
facilities by our presence on the school grounds.
In a previous summer when the school was vacant, there was
$15,000 vandalism damage as opposed to $600 vandalism damage when
the school was in use by the Recreation Department.
The School District has significantly increased their rates for
all facility use to where it would be impractical to rent their
facilities. Staff was able to convince the School District to
reduce the cost to meet last year's fiscal budget, as the rate
increase was not anticipated. City staff is now working on
"trade-offs" (such as providing people for noon time monitoring
to free the teachers) and other items that will offset the rental
rates of school facilities.
Mr. Wolter noted one of the biggest problems is the School
District will cancel our rental on the same day a City class or
event is scheduled. This scheduling may have been done months
before and the City has no control of this. This problem is
being reviewed by school administration at this time, but it
contributes to a negative impact and image of the City by the
cancelled participants.
Mr. Wolter closed by suggesting a joint powers arrangement with
the School District might help solve the problem.
B-3 REVIEW OF CONCEPTUAL DESIGN FOR DEL MAR PARK MASTER PLAN
REVISION
Mr. Wolter talked about revisions to the Master Plan for this
park, and outlined the concept envisioned for a raquetball/tennis
court center, picnic area, and volleyball courts located at the
west -end. An entrance to the park from Main Street will be
requested from the Peoples Self -Help housing project. The
possibility of privitization of the racquetball/tennis court
center was also discussed.
Staff asked for conceptual direction from the Commission and City
Council regarding these park plans. By consensus, the City
Council and the Commission accepted the concepts and staff will
now commence the formal process to alter the Master Plan for Del
Mar Park and schedule the necessary reviews and hearings.
MINUTES - MORRO A CITY COUNCIL '
JOINT MEETING - MARCH 22, 1988
PAGE 4
C. UNFINISHED BUSINESS
C-1 STATUS REPORT ON COMMUNITY CENTER PROJECT
The contractor has been removing trees and preparing the site.
City crews are relocating water lines to serve the school.
property and will be reimbursed by the School District for some
of the unforeseen costs.
Drainage problems are also being worked on; discussion evolved of
whether to relocate the Seniors or leave their current building
standing until they are able to move into the new facility.
There has been some concern by citizens because of the trees
that have been taken down, both at the building site and around
the City. With the problem of roots and the sidewalk and claims
against the City, some of these trees really had to be taken
down, plus the fact they will be or have been replaced with new
trees.
There was also some discussion as whether or not Kennedy Way will
be blocked off during the day and opened at night while
construction is occurring on the Center.
Mr. Napper indicated progress reports on the Community Center
will be given to City Council periodically.
Councilmember Sheetz said she wanted to mention that she had
given an article about European Beach Grass to Steve Wolter and
asked that he copy it and put in all their mailboxes. She said a
number of people in the community are concerned with this problem
and she hopes the article will help.
D. NEW BUSINESS
D-1 DISCUSSION OF WORK PROGRAM NEEDS FOR 1988-89 FISCAL YEAR
Jim Hartzell presented this item and distributed their Work
Program Book to Councilmembers. He explained that City Staff and
the Commission meet each year in a series of workshops to
identify programs, set goals and objectives for the following
year's budget request. Mr. Hartzell also indicated that most of
these programs are self-supporting and that they have done
surveys to identify areas of interest and topical programs.
D-2 PERFORMANCE AND FUNCTION OF RECREATION AND PARKS COMMISSION
Mr. Napper indicated the Recreation and Parks Commission By -Laws
were attached. It was the consensus of Council that the
Commission works very well independently and expends a lot of
time and energy to enhance recreation in Morro Bay.
MINUTES - MORRO B0 CITY COUNCIL •
JOINT MEETING - MARCH 22, 1988
PAGE 5
F. ADJOURNMENT
MOTION: Councilmember Sheetz moved the meeting be adjourned; it
was seconded by Councilmember Odell and unanimously
carried (5-0).
The meeting adjourned at 8:42 p.m.
Recorded
by:
Elane Novak
Deputy City Clerk
MORRO BAY
CITY COUNCIL
AGENDA
ADJOURNED REGULAR MEETING - MARCH 18, 1988
CITY HALL CONFERENCE ROOM - 4:00 P.M.
ROLL CALL
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 by standing. When recognized by the Mayor, please
come forward.to the podium and state your name and address for the record.
Comments should normally be limited to three minutes.
E. CLOSED SESSION
E-1 GOVERNMENT CODE SECTION 54956.9(C), CITY -INITIATED LITIGATION; SIGN
ORDINANCE VIOLATIONS
E-2 GOVERNMENT CODE SECTION 54957.6(A), LABOR RELATIONS; NEGOTIATIONS
E-3 GOVERNMENT CODE SECTION 54957 - PERSONNEL
F. ADJOURNMENT
COPIES OF STAFF REPORTS OR OTHER WRITTEN DOCUMENTATION
RELATING TO EACH ITEM OF BUSINESS REFERRED TO ON THIS
AGENDA ARE ON FILE IN THE OFFICE OF THE CITY CLERK AND
AVAILABLE FOR PUBLIC INSPECTION AND REPRODUCTION AT
COST.
1
MINUTES - MORRO BAY C& COUNCIL •
ADJOURNED REGULAR MEETING - MARCH 181 1988
CITY HALL CONFERENCE ROOM - 4:00 P.M.
Mayor Reddell called the meeting to order at 4:03 p.m.
PRESENT: Dale Reddell Mayor
Paul Donnelly Councilmember
John Lemons Councilmember
Jeff Odell Councilmember
Rose Marie Sheetz Councilmember
ABSENT: None
STAFF: Gary Napper City Administrator
Judy Skousen City Attorney
Alan Davis Harbor Director
Forrest Henderson Asst. to City Admin.
Nick Nichols Public Works Director
PUBLIC COMMENT
None
E. CLOSED SESSION
MOTION: Councilmember Donnelly moved the meeting adjourn to Closed
Session. The motion was seconded by Councilmember Odell and
unanimously carried. (5-0)
Mayor Reddell announced Council is adjourning to Closed Session to
discuss City -initiated litigation regarding sign ordinance violations
in accordance with Government Code Section 54956.9(c); labor relations
negotiations in accordance with Government Code Section 54957.6(a);
personnel in accordance with Government Code Section 54957; and real
property negotiations regarding Lease Site No. 30W-33W, Morro Bay Fuel
Dock, in accordance with Government Code Section 54956.8.
The meeting adjourned to Closed Session at 4:04 p.m. and returned to
regular session at 6:40 p.m. It was noted for the record Councilmem-
ber Sheetz left the Closed Session at 5:39 p.m. and Councilmember
Lemons left at 6:13 p.m.; both Councilmembers had previous appoint-
ments they were obliged to keep.
F.
MOTION: Councilmember Odell moved th
March 22, 1988 at 7:00 p.m.
for a joint meeting with the
sion. The motion was seconded
unanimously carried. (3-0)
The meeting adjourned at 6:41 p.m.
GARY A. "HAD
Deputy City
e
meeting adjourn to Tuesday,
in the Veterans Memorial Hall
Recreation and Parks Commis -
by Councilmember Donnelly and
MORRO BAY �
CITY COUNCIL
AGENDA
REGULAR MEETING - MARCH 14, 1988
VETERANS MEMORIAL HALL - 6:00 P.M.
ROLL CALL
INVOCATION
PLEDGE OF ALLEGIANCE
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 by standing. When recognized by the Mayor, please
come forward to the podium and state your name and address for the record.
Comments should normally be limited to three minutes.
DECLARATION OF FUTURE AGENDA
A. CONSENT CALENDAR
Unless an item is pulled for separate action by the City Council, the fol-
lowing actions are approved without discussion.
A-1 CITY COUNCIL MINUTES OF THE REGULAR MEETING OF FEBRUARY 22,,1988, AND
THE ADJOURNED REGULAR MEETING OF FEBRUARY 29, 1988
A-2 RESOLUTION NO. 17-88 ANNOUNCING FINDINGS AND APPROVING A CONDITIONAL
USE PERMIT AND CDP 80-87R TO ALLOW ADDITIONAL USES (SMALL PICNIC
FACILITIES) AND OTHER IMPROVEMENTS IN DEL MAR PARK
A-3 NOTICE OF COMPLETION PROJECT NO. PW 87-07, HANDICAP RAMPS AND SIDE-
WALK/STREET TREES PROJECT (PULLED)
A-4 NOTICE OF COMPLETION PROJECT NO. PW 85-24, HIGHWAY 41 WATERLINE
(PULLED)
A-5 REJECTION OF LIABILITY CLAIM AGAINST THE CITY (DUTRA)
A-6 CHANGE IN DELEGATE REPRESENTATIONS TO CITY COMMUNITY PROMOTIONS
COMMITTEE
A-7 PROCLAMATION DECLARING APRIL 3-9 AS "MORRO BAY COMMUNITY CLEAN-UP
WEEK", AND AUTHORIZATION OF ANNUAL CLEAN-UP ACTIVITIES AND PROGRAMS
B. PUBLIC HEARINGS, REPORTS & APPEARANCES
B-1 CONTINUED APPEAL HEARING FOR ONE PROTEST TO 1987 WEED ABATEMENT
CHARGES
1
B-2 POLICY DETERMINATION ON PAST -DUE RENTS ON LEASE SITE 30W-33W (MORRO
BAY FUEL DOCK, INC.)
B-3 APPEAL TO RESOLUTION NO. 11-88 ORDERING REMOVAL OF FIVE 1987 RESIDEN-
TIAL APPLICANTS FROM SPECIAL EXEMPTION IN THE 1988 WATER ALLOCATION
LOTTERY
B-4 REVIEW AND RECOMMENDATION ON CALIFORNIA PARKS AND RECREATION GENERAL
PLAN AND DRAFT EIR FOR MORRO BAY STATE PARK UNIT, RESOLUTION NO. 16-88
B-5 REQUEST BY COUNTY SOLID WASTE MANAGEMENT COMMISSION FOR CITY RECONSID-
ERATION OF DENIAL FOR A REFUSE COLLECTION TRANSFER STATION NEAR OR IN
MORRO BAY
B-6 KEYOTO-NATALIE, INC.'S REQUEST FOR CITY RECONSIDERATION OF CALIFORNIA
ENVIRONMENTAL QUALITY ACT FINDINGS UNDER ORDINANCE NO. 318 (TIME EX-
TENSION FOR INTERIM URGENCY ZONING ORDINANCES NO. 301 AND 340)
C. UNFINISHED BUSINESS
C-1 ORDINANCE NO. 319 REGULATING USE OF SKATEBOARDS ON CERTAIN PUBLIC
RIGHTS -OF -WAY AND PUBLIC PROPERTIES (SECOND READING/ADOPTION)
D. NEW BUSINESS
D-1 RESOLUTION NO. 14-88 AUTHORIZING APPLICATION FOR APPROPRIATIVE WATER
RIGHTS (DOMENGHINI FLAT/CHORRO BASIN)
D-2 RESOLUTION NO. 18-33 AWARDING CONTRACT FOR MORRO BAY COMMUNITY CENTER
INTERIOR DESIGN AND PURCHASING SERVICES
D-3 RESOLUTION NO. 13-88 SUPPORTING 1988 CALIFORNIA WILDLIFE, COASTAL, AND
PARKLAND CONSERVATION BOND ACT (JUNE BALLOT INITIATIVE)
D-4 RESOLUTION NO. 15-88 AUTHORIZING CITY APPLICATION FOR LOW -INTEREST
LOAN UNDER SAFE DRINKING WATER BOND LAW OF 1986 FOR A $5 MILLION WATER
TREATMENT PLANT
E. CLOSED SESSION
E-1. GOVERNMENT CODE SECTION 54956.9(C), CITY -INITIATED LITIGATION
A. SIGN ORDINANCE VIOLATIONS
B. LEASE CODE VIOLATIONS
E-2 GOVERNMENT CODE SECTION 54956.9(A), PENDING LITIGATION, KEYOTO-NATALIE
VS. CITY OF MORRO BAY
E-3 GOVERNMENT CODE SECTION 54957.6(A), LABOR RELATIONS - NEGOTIATIONS
E-4 GOVERNMENT CODE SECTION 54956.8, REAL PROPERTY NEGOTIATIONS, LEASE
SITE NO. 30W-33W (MORRO BAY FUEL DOCK)
2
0
F. ADJOURNMENT
ADJOURN TO TUESDAY, MARCH 22, 1988 AT 7:00 P.M. IN THE VETERANS
MEMORIAL HALL FOR A JOINT MEETING WITH THE RECREATION AND PARKS
COMMISSION.
COPIES OF STAFF REPORTS OR OTHER WRITTEN DOCUMENTATION
RELATING TO EACH ITEM OF BUSINESS REFERRED TO ON THIS
AGENDA ARE ON FILE IN THE OFFICE OF THE CITY CLERK AND
AVAILABLE FOR PUBLIC INSPECTION AND REPRODUCTION AT
COST.
3
6
MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING - MARCH 14, 1988
VETERANS MEMORIAL HALL - 6:00 P.M.
Mayor Reddell called the meeting to order at 6:00 p.m.
ROLL CALL
PRESENT: Dale Reddell
Paul Donnelly
John Lemons
Jeff Odell
Rose Marie Sheetz
ABSENT: None
STAFF: Gary Napper
Judy Skousen
Dave Bugher
Louise Burt
Alan Davis
Forrest Henderson
Nick Nichols
Steve Wolter
Ardith Davis
Mayor
Councilmember
Councilmember
Councilmember
Councilmember
City Administrator
City Attorney
Associate Planner
Finance Director
Harbor Director
Asst. to City Admin.
Public Works Dir.
Recreation & Parks Dir.
City Clerk
Reverend Jerry Owens, First Assembly of God, gave the invocation,
and Horace Strong led the Pledge of Allegiance.
Mayor Reddell asked if the representatives of Keyoto-Natalie were
in the audience, as he wished to hear their appeal item (B-6)
first; the representatives were not present at that time.
PUBLIC COMMENT
1. Ray Kaltenbach, 473 Sicily, discussed various water
projects funded while he was a Councilmember. He stated the
Domenghini water was nothing new, and Mr. Ogle had tried to sell
the property to the City when he was a Councilmember. He stated
the 2 irrigation wells needed new casings, the water is not up to
standards, and the water comes out of the same aquifers the City
is currently using and would add no new water to the City.
2. Bruce Risley, 540 Piney Way, asked if he could comment
on items D-1 and D-4 when they come up on the agenda; Mayor
Reddell stated yes. Mr. Risley then discussed Mayor Reddell's
conflict of interests as cited in a letter from the Fair Politi-
cal Practices Commission dated March 1987. He criticized the
Mayor for contacting the attorney of the owners of the Domenghini
MINUTES - MORRO BA0ITY COUNCIL
REGULAR MEETING - MARCH 14, 1988
PAGE 2
property when one of that partners in that law firm, Jim Merzon,
is in partnership with Mayor Reddell.
3. Charles Palmer stated beginning in 1957, property own-
ers in Morro Bay started paying off a sewer and water line bond
which he believes gives them a priority vested right to water and
sewer for building purposes. Property owners paid on the bond
through their property tax bill until 1977. He said requiring
water and sewer hook-up fees for them to build is appropriating
these particular people's property without recompense, and is a
violation of the law.
DECLARATION OF FUTURE AGENDA ITEMS
1. Councilmember Odell requested an agenda item to discuss
scheduling a joint meeting with the Water Advisory Board sometime
before summer. A subject of discussion should be the 1989 Water
Management Allocation Program. He stated the way the City has
dealt with the water issues over the last month is no way to plan
the City's future. Councilmember Odell believed the City should
be looking beyond the acquisition of water; what happens after
the City receives water, what if the City never receives supple-
mental water? He indicated he had placed a sign-up sheet at the
back of the room for people to sign up if they are interested in
taking part in community workshops to plan for the future of
Morro Bay.
2. Councilmember Lemons requested an agenda item be sched-
uled for the next meeting to accept a $50,000 donation for
repaving Kern Avenue. A gentleman who lives on Kern wishes to
make this donation in memory of his wife who recently died.
A. CONSENT CALENDAR
A-1 CITY COUNCIL MINUTES OF THE REGULAR MEETING OF FEBRUARY 22,
1988 AND THE ADJOURNED REGULAR MEETING OF FEBRUARY 29 1988
Mr. Napper recommended Council approve the minutes as submitted.
A-2 RESOLUTION NO. 17-88 ANNOUNCING FINDINGS AN
rOMr)TTT(1MDT. TICF. URRMTT DNn f ni) A0-A7R rPn AT.
Mr. Napper recommended Council adopt Resolution No. 17-88.
A-3 NOTICE OF COMPLETION PROJECT NO. PW 87-07, HANDICA]
AND SIDEWALK STREET TREES PROJECT (PULLED)
A-4 NOTICE OF
MINUTES - MORRO BA`�ITY COUNCIL •
REGULAR MEETING - MARCH 14, 1988
PAGE 3
A-5 REJECTION OF LIABILITY CLAIM AGAINST THE CITY (DUTRA)
Mr. Napper recommended Council deny the claim, and authorize the
City Clerk to send the appropriate rejection notice.
A-6 CHANGE IN DELEGATE REPRESENTATIONS TO CITY COMMUNITY PROMO-
TIONS COMMITTEE
Mr. Napper recommended Council modify the membership of the Com-
munity Promotions Committee to designate a representative from
each of the following groups: the Morro Bay Chamber of Commerce;
the Morro Bay Hotel/Motel and Restaurant Association; the Morro
Bay Merchant's Association; the Embarcadero Association; and a
Tourist -related Business.
A-7 PROCLAMATION DECLARING APRIL 3-9 AS "MORRO BAY COMMUNITY
CLEAN-UP WEEK .AND AUTHORIZATION OF ANNUAL CLEAN-UP ACTIVI-
Mr. Napper recommended Council approve the Community Clean -Up
Week activities, and authorize the Mayor to sign the Proclamation
declaring April 3rd-9th to be "Community Clean -Up Week".
MOTION: Councilmember Lemons moved for approval of the Consent
Calendar with the exception of Items A-3 and A-4 which
have been pulled. The motion was seconded by Coun-
cilmember Sheetz and unanimously carried. (5-0)
Mr. Napper advised he has been informed representatives of
Keyoto-Natalie, Inc. are present and ready to proceed with their
appeal. Mayor Reddell indicated he would like to hear the matter
at this time, and the Council concurred.
f �L:l�[N��[i�cil:=I�IMiul��ii�Y�`�[i3�f3[il:i�:i;�iusll•.ZH�L4i'dil�i i�[d
Timothy Tosta, attorney representing Keyoto-Natalie, Inc., or the
Cloisters as they now call themselves, indicated he would rather
be home with his children and discussed a story he read to them
the previous evening entitled "Gulliver's Travels". He likened
the story to the Morro Bay permit process and distributed a draw-
ing and quotation from the book to emphasize his point. He dis-
cussed at length the City's lack of "health, welfare, and safety"
findings to impose a moratorium. He also referred to "The Big
Lie" perpetuated by the City in maintaining the moratorium cov-
ered other properties besides the property commonly known as
"VRM" property. Mr. Tosta called the moratorium a sham the peo-
MINUTES - MORRO BASITY COUNCIL •
REGULAR MEETING - MARCH 14, 1988
PAGE 4
ple of Morro Bay will have to pay for in damages for taking of
property.
Mr. Tosta criticized the temporary uses now allowed by the City
for the property; "outdoor sales, display or storage". He said
that generally meant Christmas tree sales, flea markets, cir-
cuses, and carnivals; he did not believe the people of Morro Bay
wanted those uses at this site.
Mr. Napper reminded Council the issue being considered this
evening is Keyoto-Natalie, Inc.'s request for reconsideration of
Council findings the interim zoning ordinance is exempt from the
California Environmental Quality Act provisions. So far, Mr.
Tosta has been telling Council why they should not have a morato-
rium on the property, and he has not been addressing the issue he
himself raised.
Mr. Tosta said he would be getting to that. He proceeded to en-
courage the Council to rescind the moratorium in order to develop
a meaningful planning process, and without exposing the City to
unnecessary liability.
Mayor Reddell asked who are the specific owners of the Keyoto-
Natalie, Inc. property? Mr. Tosta refused to answer except to
say 2 California corporations in partnership.
Councilmember Odell stated he had informed Mr. Brewer, who also
represents Keyoto-Natalie, that in 1987 the Keyoto-Natalie
property was exposed to sea -water intrusion. To say it was a new
finding made by the City is false.
Mayor Reddell opened the hearing to the public for comments.
William Gruendler, 175 Azure, discussed the 1983 storms that re-
moved sand from the Keyoto-Natalie property, making it inadvis-
able to put houses in this area; he suggested a 9-hole golf
course instead.
Councilmember Lemons noted Council is considering the CEQA issue
this evening and suggested the public speak to that issue.
Warren Dorn, 212 Beach St., referred to Mr. Tosta's presentation
as demagoguery and noted the number of lies expressed by those
representing Keyoto-Natalie. He believed it wrong to be dis-
cussing a residential use on this property, and favored a golf
course.
Mayor Reddell and Councilmember Lemons again reminded the public
to address their comments to the CEQA findings issue. Judy
Skousen stated the purpose of the hearing is to discuss the ap-
MINUTES - MORRO BA1WTY COUNCIL •
REGULAR MEETING - MARCH 14, 1988
PAGE 5
peal filed by Keyoto-Natalie as to the appropriateness of the
CEQA findings.
Charles Palmer discussed the availability of water, and noted
those people who already bonded for the sewer have prior rights
to build over the Keyoto-Natalie people.
Chuck Clarke, Chairman of the Blue Ribbon Committee, indicated
the Committee is doing a very thorough job of exploring all use
alternatives for these properties.
Peter Diffley, also a member of the Blue Ribbon Committee, stated
the City has every right to seek reasonable planning for this
area. Tom Wuriu discussed the "Special Report" newspaper issued
by the Cloisters people, and stated he had never seen such exam-
ples of perverted journalism. He said that paper will only serve
to further unify the community against the Keyoto-Natalie people.
Mayor Reddell closed the hearing to the public.
Ms. Skousen stated although Mr. Tosta talked about everything but
the CEQA findings, she would limit her comments to the appropri-
ateness of the findings. She stated interim zoning ordinances
are exempt from CEQA procedures and the Council acted well within
their authority in adopting Ordinance No. 318 which extends the
moratorium period for a maximum of one year.
Ms. Skousen stated the property owners maintain the ordinance
will cause a significant effect on the environment in that it
will cause other areas to develop, while their plan will preserve
and enhance the environment in the area. She believes they are
afraid of what the City's studies might show because they wish to
have a high density residential development. Mr. Skousen noted
the water problems in Morro Bay that will restrict residential
development of this area and believed the property owner will
have the property bulldozed, graded and sell individual lots;
those lot owners will be faced with trying to find water to
build.
She urged Council not to be intimidated by the amount of money
the property owners are willing to spend to force their point,
and stated the findings made in Ordinance No. 318 are appropriate
and Council should affirm those findings by denying the appeal.
Councilmember Sheetz stated she was incensed after reading the
"Special Report" published by the property owners with its numer-
ous lies and misstatements.
MOTION: Councilmember Sheetz moved the appeal be denied, and
Council uphold the CEQA findings and determinations de-
clared in Ordinances No. 301, 304, and 318. The motion
MINUTES - MORRO BA`�ITY COUNCIL •
REGULAR MEETING - MARCH 14, 1988
PAGE 6
was seconded by Councilmember Lemons and unanimously
carried. (5-0)
Council recessed from 7:10 p.m. to 7:21 p.m.
B. PUBLIC HEARINGS, REPORTS & APPEARANCES
B-1 CONTINUED APPEAL HEARING FOR ONE PROTEST TO 1987
Mr. Nichols reviewed the one appeal by Mr. E.L. Cox. Staff is
recommending Mr. Cox be refunded $134.90 due to an error in as-
sessment. The "bent grass" planted on the property inhibits weed
growth, and it was not necessary to mow the parcel. The refund
will be deducted from the contractor's retention fund ($103.00),
and the City's weed abatement administration fee ($34.90).
MOTION: Councilmember Lemons moved Council grant the appeal by
E.L. Cox, and authorize staff to refund the $134.90
fees from the appropriate accounts. The motion was
seconded by Councilmember Sheetz and unanimously car-
ried. (5-0)
B-2
ITE 30W-33W
Alan Davis reviewed problems associated with this site which be-
gan when the site was reappraised in 1986; the appraised value
increased, causing the rent to go from $2,474 per year to $9,300.
The Fuel Dock objected to the increase and requested Council re-
view of a special reduction for commercial fishing; a $5,000 per
year figure was administratively agreed upon in the interim. No
resolution regarding a special commercial fishing rate has been
determined, and review of Fuel Dock tax statements for 1978-1986
indicate they do have the ability to pay the rate appropriate for
their appraisal.
In addition, Mr. Davis noted a silt collection box installed by
the City on the storm drain at the Fuel Dock; and dredging opera-
tions to remove accumulated siltation, also paid for by the City.
Fuel Dock representatives previously indicated they would pay the
new rent if these improvements were made.
Jim Murphy, speaking on behalf of the commercial fishing indus-
try, stated they operate on a small margin of profit. He said
when their rents increased to $5,000 per year they were forced to
raise their slip rates to $120 per month, and many commercial
fishermen went elsewhere. He stated many other areas have estab-
lished special rates for commercial fishermen, and urged Council
to do the same.
MINUTES - MORRO BA0ITY COUNCIL •
REGULAR MEETING - MARCH 14, 1988
PAGE 7
Harvey Peterson, 515 Acacia, stated he sees the same economic
forces here that have caused other harbors to change their char-
acter from a commercial fishing village to pleasure boats. He
said a reduced rate for the commercial fishing industry is neces-
sary if Council wishes to continue to emphasize commercial fish-
ing is important to Morro Bay.
Gene Doughty, 381 So. Court, Los Osos, encouraged Council to keep
Morro Bay as the commercial fishing village they advertise to
tourists.
Nancy Bast, Fairview, stated the current Harbor Advisory Board no
longer has meaningful public review of the administration of
lease sites. She said the commercial fishing industry cannot
compete financially with the tourist industry; the Tidelands Act
gives priority to commercial fishing and navigation. Ms. Bast
referred to concessions made to the Morro Bay Yacht Club because
of their service to traveling vessels. She encouraged Council to
formulate a similar service credit, provide them a commercial
rate, and find an equitable appraisal method to allow the Fuel
Dock to remain a viable business and realize a profit.
Fred Sears, President of the Commercial Fishermen's Organization,
requested Council view the income from fuel as a variable; not a
constant. The profit to the Fuel Dock accrues from the variable
rate of fuel sales and not from the rent received for dock rents.
Peter Diffley, 960 Anchor, stated he was authorized by the Execu-
tive Board of the Civic Action League to represent them. CAL
urges Council to give strong support to the fishing industry by
studying the situation and carve -out an economic policy to the
advantage of the Fuel Dock. He noted many areas do subsidize
their commercial fishing industries.
Mayor Reddell closed the hearing to the public.
MOTION: Councilmember Sheetz moved this item be considered in
Closed Session. The motion was seconded by Councilmem-
ber Lemons and unanimously carried. (5-0)
B-3 APPEAL TO RESOLUTION NO. 11-88 ORDERING REMOVAL OF FIVE 1987
Councilmember Donnelly and Mayor Reddell stepped down from con-
sideration on this matter because of a possible conflict of in-
terest. Councilmember Sheetz assumed the Chair; Councilmember
Lemons stated his conflict involved having received $250 from a
single source in the construction industry within the past 12
months; and Councilmember Odell stated his conflict involved an
application for housing rehabilitation funding through People's
MINUTES - MORRO BA0ITY COUNCIL •
REGULAR MEETING - MARCH 14, 1988
PAGE 8
Self -Help Housing who are receiving a special water allocation
through this year's program.
Mr. Napper stated 5 of the applicants originally on the priority
list of 15 had been dropped from the priority list and placed in
the lottery because of a determination their applications were
not filed in a timely manner. Those 5 are now appealing this de-
cision to Council.
Wayne Adams, 350 Tulare, explained his situation which had to do
with moving a house to a different location. Mr. Bugher has ba-
sically recommended his application be included in the priority
list, and Mr. Adams agrees and requested Council approve that
recommendation.
John Cookson, 1790 Kent St., Los Osos, stated he represents an
out-of-town property owner who was originally on the priority
list. He reviewed the history of his application noting he had
always acted in good faith and complied with the instructions
from the Planning Department. He stated on February 11, 1988
Council had placed his application on the priority list and said
he had 120 days in which to submit his complete application; then
on February 22nd, without notifying anyone on the list, Council
eliminated five people from the list. He asserted pipeline and
retrofit waiting lists should be treated equally. Mr. Cookson
also stated Mr. Hampton was unable to be present at this meeting
because his son was in an accident.
Sharon Thomas, 500 Island, explained her situation, and stated
her daughter and son-in-law have left employment and made ar-
rangements to move from Southern California based on earlier as-
surances from Council they were on a priority list and could
build their home.
John Hiemal, Cedar St., stated he has read the staff report on
this item and it is clear from the dates the appellants did not
submit their applications in time; he noted he is still on the
priority list.
Jerry Umbertis stated he is working with Mr. Cookson; he did not
believe it fair to tell someone they have a permit and then re-
verse the decision. They have already secured their financing to
build.
Mr. Bugher presented the staff report, explained staff initially
believed there were 15 people on a waiting list for pipeline ap-
plications from last year. However, upon a public request to ex-
amine the list in more detail, it was discovered 5 applications
were in question. Mr. Bugher explained prior to March 9, 1987,
pipeline water applications for building permits were still being
accepted. On March 10, 1987, by Council action, pipeline re-
MINUTES - MORRO BATY COUNCIL •
REGULAR MEETING - MARCH 14, 1988
PAGE 9
placement application acceptance was closed. Four retrofit water
applications, not including Mr. Adams', were received after the
closing date to obtain pipeline water, and also too late to ob-
tain retrofit water. Mr. Adams is being recommended for inclu-
sion in the priority list, and Mrs. Schaeffer is deleted from the
priority list because she sold her property thus losing her place
on the list.
Mr. Napper and Mr. Bugher explained some of the difficulty in ad-
ministering the water allocation program and the number of appli-
cations being presented. Mr. Napper stated the 4 applicants had
their names only taken and told they might be contacted if a
timely -filed applicant dropped out. He said there were other ap-
plicants who tried to file their names and plans after the March
26th retrofit cut-off date, but were turned away; these 4 appli-
cants should have no greater priority than those unknown people.
Mr. Napper recommended the four appellants be placed in the
lottery.
Mr. Napper noted there are only 3 applications on which Council
needs to make a decision since Mr. Adams is being recommended for
inclusion in the priority list and Mrs. Schaeffer is being recom-
mended for deletion due to selling her property.
Councilmember Sheetz commented on the confusion in this year's
program, and stated she was inclined to grant the 3 applications
priority status in view of Council's previous indication they
were on the list.
Councilmember Lemons disagreed stating these people were made no
guarantees last year that they were on any kind of list; he be-
lieved they should be included in the lottery.
MOTION: Councilmember Lemons moved Council approve the staff
recommendation to include Mr. Adams in the 10 appli-
cants exempt from the lottery in 1988; that Mrs.
Schaeffer be deleted from the original list of 10 ex-
emptions; and, that the residential applications of Mr.
Carlson, Mr. Cookson, Mr. Hampton, and Mr. Thomas be
placed into the 1988 single-family residential water
award lottery. The motion was seconded by Councilmem-
ber Odell.
Councilmember Lemons stated staff has performed well in an ex-
ceedingly difficult task, and in as fair a way as could be done.
Councilmember Sheetz suggested staff develop criteria for next
year's program and return it for Council's consideration in Fall
1988 to avoid confusion next year.
The motion carried on the following roll call vote:
MINUTES - MORRO BA`�ITY COUNCIL •
REGULAR MEETING - MARCH 14, 1988
PAGE 10
AYES: Councilmembers Lemons and Odell
NOES: Councilmember Sheetz
ABSTAIN: Councilmember Donnelly and Mayor Reddell
Council recessed from 8:25 p.m. to 8:36 p.m. Councilmember
Donnelly and Mayor Reddell resumed their seats.
B-4 REVIEW AND RECOMMENDATION ON CALI]
Mr. Bugher stated Council previously reviewed the preliminary
plan for the Morro Bay State Park and made comments regarding the
Plan. Some of the suggestions have been incorporated in the Plan
while others have not, possibly because they were not appropriate
for inclusion in a Master Plan. Council had recommended elimina-
tion of an over- or under -pass for golfers near the clubhouse;
however, the State has retained a statement recommending an in-
depth engineering study be conducted to determine need.
Mr. Bugher requested Council adopt Resolution No. 16-88 recom-
mending adoption of the Preliminary General Plan for Morro Bay
State Park, to include forwarding a memo from the Public Works
Director regarding technical misrepresentations in the Plan.
Mayor Reddell opened the hearing to the public; there were no
comments and the hearing was closed.
MOTION: Councilmember Odell moved for adoption of Resolution
No. 16-88, and staff be instructed to transmit the Res-
olution and the Public Works Director's memorandum to
the State Parks and Recreation Department. The motion
was seconded by Councilmember Donnelly and unanimously
carried. (5-0)
B-5 REQUEST BY COUNTY SOLID WASTE -MA]
RECONSIDERATION OF DENIAL- FOR A
Mr. Nichols stated Council had previously considered a County
Solid Waste Management Commission (SWMC) request to locate a
refuse transfer station near Morro Bay. Council denied the re-
quest and suggested the station be located at the current Los
Osos Landfill site. Since that time, the SWMC has met and re-
quests Council reconsider their position and accept a refuse
transfer station near Highway 1 east of the City limits.
Mr. Van Laurn, representing the County on this issue, stated he
has had time to make economic comparisons. He said it will cost
in the area of $300,000 to $500,000 in capital outlay costs to
locate a transfer station at either Los Osos Landfill or near
MINUTES - MORRO BAITY COUNCIL •
REGULAR MEETING - MARCH 14, 1988
PAGE 11
Morro Bay. However, it will cost $200,000 per year less in an-
nual transportation costs if the station is located at Morro Bay.
This makes it economically more prudent to locate a transfer sta-
tion in Morro Bay. In the short-term, it is more economic to di-
rectly haul refuse to Cold Canyon Landfill, than to locate a
transfer station at Los Osos, but 3 or 4 years from now it be-
comes more economic to locate a site at Morro Bay. He noted di-
rectly hauling refuse will increase road -side littering because
people will not be inclined to drive all the way to Cold Canyon
to dump trash.
Mr. Laurn stated the Commission did not believe the Los Osos site
is an acceptable alternative, and requested Morro Bay reconsider
their position. County staff believes the best site is on Quin-
tana Road by Highway 1, south of the Morro Bay City limits.
Councilmember Lemons was not convinced all alternatives have been
investigated, and suggested several places along South Bay Blvd.
outside Morro Bay city limits. He requested a site specific eco-
nomic analysis be done on other sites besides the Morro Bay site.
Mayor Reddell opened the hearing the public.
Jean Cartwright did not believe the State of California would
ever part with their park properties along South Bay Blvd. in or-
der to allow a transfer station.
Ray Kaltenbach suggested an area outside City limits on the other
side of Twin Bridges at the old gravel pit site.
Katherine Walling discussed the merits of recycling to reduce
waste volume. "B" Rohan agreed and noted innovative ways some
people are handling their waste (recycling; composting).
Mayor Reddell closed the hearing to the public.
Councilmember Sheetz discussed some successful recycling programs
being conducted by the City of San Jose.
MOTION: Councilmember Sheetz moved Council reaffirm their pre-
vious position on this matter that the appropriate site
for the transfer station is at the existing Los Osos
Landfill. The motion was seconded by Councilmember
Donnelly.
Councilmember Lemons stated he would like to see more analysis
regarding a site around Cuesta College or along South Bay Boule-
vard between Turri Road and Los Osos Valley Road.
The motion carried, with Councilmember Lemons voting
no. (4-1)
MINUTES - MORRO BAAITY COUNCIL •
REGULAR MEETING - MARCH 14, 1988
PAGE 12
B-6 KEYOTO-NATALIE, INC:'S- REQUEST FOR CITY- RECONSIDERATION -OF
CALIFORNIA ENVIRONMENTAL OUALITY-ACT FINDINGS •UNDER ORDI-
Previously considered.
C. UNFINISHED BUSINESS
C-1 ORDINANCE NO:-319 REGULATING U
Mr. Napper stated Ordinance No. 319 regulates the use of skate-
boards and is scheduled for final adoption this evening; if
adopted, it will go into effect on April 13th.
Mayor Reddell stated if the 2 Councilmembers who voted against
this Ordinance at the last meeting intended to do so again, he
would also be voting against it. He believed an item of this na-
ture should have the full Council behind it, or it should not be
adopted.
MOTION: Councilmember Odell moved Ordinance No. 319 be read by
title and number only. The motion was seconded by
Councilmember Sheetz and unanimously carried. (5-0)
Mr. Napper read Ordinance No. 319 by title and number only.
MOTION: Councilmember Sheetz moved for adoption of Ordinance
No. 319. The motion was seconded by Councilmember
Donnelly, and failed on the following roll call vote:
AYES: Donnelly, Sheetz
NOES: Lemons, Odell, Reddell
D. NEW BUSINESS
D-1 RESOLUTION NO. 14-88-AUTHORIZING APPLICATION -FOR -APPROPRIATE
WATER RIGHTS (DOMENGHINI FLAT CHORRO-BASIN)
Mr. Nichols reviewed the City's progress thus far in filing for
appropriative water rights on the Domenghini property. The Reso-
lution presented for Council adoption affirms the application
submitted to the State Water Resources Control Board in February.
Mr. Nichols stated approximately 528 acre feet of water per year
could be appropriated from the 120 acres included in this prop-
erty. The process for obtaining appropriative rights would be
much same as the City is presently going through on the Toro
Creek project.
MINUTES - MORRO BAAITY COUNCIL •
REGULAR MEETING - MARCH 14, 1988
PAGE 13
Councilmember Odell asked questions regarding the City's previous
agreement with the Domenghini interests to use their well in an
emergency. Mr. Nichols also assured Council the water the City
is applying for is considered a new source of water and will add
additional water to the City's resources.
Councilmember Sheetz asked about the process before the State
Water Resources Control Board; Mr. Nichols stated if protests
against the City's application are received, it could be 3 years
before the City is allowed to appropriate the water. Councilmem-
ber Sheetz asked about the quality of the water; Mr. Nichols
stated that question needs investigation.
Ray Kaltenbach stated a previous Council had voted against pur-
chasing this property when given the opportunity. One reason was
because of cost; also, the City would be taking prime agriculture
land off the market. He also stated the City would not be ob-
taining new water, but would be drawing water from present
aquifers.
Mayor Reddell reminded Mr. Kaltenbach the former Council had en-
tered into an agreement for Domenghini water when Mr. Kaltenbach
was on the Council; Mayor Reddell believed this Council would be
remiss if they did not continue what was started and pursue every
avenue of available water.
Bruce Risley suggested Council find a way to store water
presently running off into the bay during rainy seasons. He also
believed the City would be drawing water from present aquifers if
they pursued Domenghini water, and not add any new water to the
City.
Mr. Risley stated Mayor Reddell had no right to discuss this mat-
ter with a law firm having a member who is in partnership with
the Mayor; he believed it to be a conflict of interest. He en-
dorsed the stream diversion project.
Nelson Sullivan asked who the City is getting in front of for ap-
propriative water rights? He stated some of the Councilmembers
should not be discussing this subject because of a conflict of
interest; he believed the San Bernardo Creek dam project has gen-
uine water to offer, although it may take 9-10 years to bring it
on-line.
Jean Cartwright discussed Coastal Conservancy interest in funding
a survey of the watershed estuary because of sedimentation build-
ing up in the bay. She encouraged Council to examine the Conser-
vancy's intentions in these lands before the City spends any
money.
MINUTES - MORRO BASITY COUNCIL •
REGULAR MEETING - MARCH 14, 1988
PAGE 14
Mayor Reddell closed the hearing to the public.
Councilmember Sheetz asked if approving the Resolution committed
the City to purchasing the property; Mr. Nichols stated no.
Councilmember Sheetz stated she was on the Council when an agree-
ment was made to use Domenghini water in case of an emergency;
the City never used the water because it rained.
Councilmember Lemons stated passing the Resolution this evening
approves the filing of application for water rights only. The
City can then fund work to determine if it is in the best inter-
ests of the City to acquire the property. Studies should be con-
ducted if the City is not in line for appropriative water.
MOTION: Councilmember Donnelly moved for adoption of Resolution
No. 14-88, and directed staff develop a plan to see if
it is in the best interests of the City to acquire the
property. The motion was seconded by Councilmember
Lemons and unanimously carried. (5-0)
D-2
Mr. Wolter reviewed the process by which the City obtained com-
petitive proposals for interior design and purchasing services
for the Community Center. An interview panel selected the firm
of Interior Planning Resource on the basis of experience, proxim-
ity to Morro Bay, and fees; total fees are estimated at $15,215.
MOTION: Councilmember Sheetz moved for the adoption of Resolu-
tion No. 18-88 awarding the interior design and pur-
chasing services contract for the Community Center to
Interior Planning Resource. The motion was seconded by
Councilmember Lemons and unanimously carried. (5-0)
D-3 RESOLUTION - NO.- 13-88 - SUPPORTING 1988 CALIFORNIA- WI
l nACTTT . TTIII ➢TDVT TTTII. l MOC.DIMMT/ XT Unhi TI. .AOM I TTTKTVR
Mr. Wolter stated the 1988 California Wildlife, Coastal, and
Parkland Conservation Bond Act on the June 1988 ballot would pro-
vide $32,000 per capita park grant funds for Morro Bay and oppor-
tunities to compete for other funds. If this initiative receives
voter approval, 3 bond act bills pending in Legislature may not
receive approval. One of these, AB 1794 provides for $200 mil-
lion to fund the State Coastal Conservancy. Mr. Wolter recom-
mended Council adopt Resolution No. 13-88 supporting the 1988
California Wildlife, Coastal, and Parkland Conservation Bond Act.
MINUTES - MORRO BA4ITY COUNCIL
REGULAR MEETING - MARCH 14, 1988
PAGE 15
Councilmember Lemons distributed a letter from Penny Allen,
Chairman of the Coastal Conservancy, regarding her concern about
the passage of this initiative and its effect on the Coastal Con-
servancy; it would mean the Coastal Conservancy would be funded
for one year only, and with little discretion as to projects
since the initiative is site specific. Councilmember Lemons be-
lieved the City should support the Coastal Conservancy's broadest
discretion to allocate funds because of their assistance to the
City in the past.
Mr. Wolter discussed the advantages to both proposals; if the
bills pass in legislature, the City still has a good opportunity
to receive grant funds. Mr. Lemons indicated the League of Cali-
fornia Cities has not yet determined it's position on the
initiative.
After further discussion, Council decided to take no action on
the Resolution in deference to the Coastal Conservancy and the
effects the bond act initiative may have on them.
D-4
RESOLUTION NO:- 15-88 -AUTHORIZING CITY- APPLICATION --FOR LOW=
INTEREST LOAN UNDER -SAFE -DRINKING -WATER BOND -LAW OF-1986-FOR
VA
MOTION: Councilmember Odell moved for adoption of Resolution
No. 15-88. The motion was seconded by Councilmember
Sheetz and unanimously carried. (5-0)
E. CLOSED SESSION
MOTION: Councilmember Odell moved Council adjourn to Closed
Session. The motion was seconded by Councilmember
Lemons and unanimously carried. (5-0)
Mayor Reddell announced Council is adjourning to Closed Session
to discuss the following items:
Government Code Section 54956.9(c), City -initiated litiga-
tion regarding sign ordinance violations, and lease code
violations;
Government Code Section 54956.9(a), pending litigation re-
garding Keyoto-Natalie vs: -City of Morro Bay;
Government Code Section 54957.6(a), labor relations regard-
ing negotiations; and
Government Code Section 54956.8, real property negotiations
regarding Lease Site No. 30W-33W, Morro Bay Fuel Dock
MINUTES - MORRO BAAITY COUNCIL •
REGULAR MEETING - MARCH 14, 1988
PAGE 16
The meeting adjourned to Closed Session at 10:54 p.m. and re-
turned to regular session at 11:56 p.m.
F. ADJOURNMENT
MOTION: Councilmember Lemons moved the meeting be adjourned to
Friday, March 18, 1988 at 4:00 p.m. to continue discus-
sion of Closed Session items. The motion was seconded
by Councilmember Odell and unanimously carried. (5-0)
The meeting adjourned at 11:56 p.m.
Recorded
ARDITH DAVIS
City Clerk
MORRO BAY
CITY COUNCIL
AGENDA
ADJOURNED REGULAR MEETING - FEBRUARY 29, 1988
CLOSED SESSION
CITY HALL CONFERENCE ROOM - 5:00 P.M.
1. GOVERNMENT CODE SECTION 54956.9(A), PENDING LITIGATION
A. LOPERENA VS. CITY OF MORRO BAY
B. CABRILLO VS. CITY OF MORRO BAY
2. GOVERNMENT CODE SECTION 54956.9(C), CITY -INITIATED LITIGATION
A. SIGN ORDINANCE VIOLATIONS
B. LEASE CODE VIOLATIONS
3. GOVERNMENT CODE SECTION 54956.8, REAL PROPERTY NEGOTIATIONS
A. DOMENGHINI
JOINT MEETING WITH HARBOR ADVISORY BOARD
VETERANS MEMORIAL HALL - 6:00 P.M.
ROLL CALL
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 by standing. When recognized by the Mayor, please
come forward to the podium and state your name and address for the record.
Comments should normally be limited to three minutes.
D. NEW BUSINESS
D-1 HARBOR SAFETY
A. HARBOR ENTRANCE DREDGE PROJECT STATUS REPORT
B. CITY'S PROJECT APPLICATION FOR SB 959 GRANT MONIES
D-2 LONG-RANGE HARBOR PLANNING
A. ECONOMIC DEVELOPMENT REPORT
B. HARBOR MASTER PLAN
C. BAYSHORE BLUFFS AREA PROPOSED MARINA
D. CRITICAL CROSS-ROADS PERSPECTIVE
L7
D-3 COMMERCIAL FISHING INDUSTRY SUPPORT
A. WORK AREAS FOR FISHING FLEET
B. VESSEL HAUL -OUT FACILITY
C. SUPPORT INDUSTRIES
D-4 OTHER HARBOR ISSUES
A. STATUS OF HUSKY DREDGE EQUIPMENT IN BAY
B. FUNCTION AND BYLAWS OF HARBOR ADVISORY BOARD
F. ADJOURNMENT
COPIES OF STAFF REPORTS OR OTHER WRITTEN DOCUMENTATION
RELATING TO EACH ITEM OF BUSINESS REFERRED TO ON THIS
AGENDA ARE ON FILE IN THE OFFICE OF THE CITY CLERK AND
AVAILABLE FOR PUBLIC INSPECTION AND REPRODUCTION AT
COST.
K
•
MINUTES - MORRO BAY CITY
ADOURNED REGULAR MEETING
CITY HALL CONFERENCE ROOM
COUNCIL
FEBRUARY 29, 1988
- 5:00 P.M.
Mayor Reddell called the meeting to order at 5:12 p.m.
PRESENT: Donnelly, Lemons, Odell, Sheetz, Reddell
ABSENT: None
STAFF PRESENT: Gary Napper, Judy Skousen, Bill Farrel, Nick
Nichols, Alan Davis
Mayor Reddell stated Council.will be adjourning to Closed Session
in accordance with Government Code Section 54956.9(a) to consider
pending litigation in the matters of Loperena vs. City of Morro
Bay, and Cabrillo vs. City of Morro Bay; Government Code Section
54956.9(c), City -initiated litigation regarding sign ordinance
violations and lease code violations; and Government Code Section
54956.8, real property negotiations regarding Domenghini.
MOTION: Councilmember Sheetz moved the meeting adjourn to
Closed Session. The motion was seconded by
Councilmember Lemons and unanimously carried. (5-0)
The meeting adjourned to Closed Session at 5:12 p.m. and returned
to regular session at 6:05 p.m.
MOTION: Councilmember Donnelly moved the meeting adjourn to the
Veterans Memorial Hall for a joint meeting with the
Harbor Advisory Board. The motion was seconded by
Councilmember Lemons and unanimously carried. (5-0)
MORRO BAY CITY COUNCIL/HARBOR ADVISORY BOARD
JOINT MEETING - VETERANS MEMORIAL HALL - 6:00 P.M.
Mayor Reddell called the meeting to order at 6:17 p.m.
ROLL CALL
PRESENT: Dale Reddell
Paul Donnelly
John Lemons
Jeff Odell
Rose Marie Sheetz
HARBOR ADVISORY BOARD:
Jody Giannini
Rae Crill
William Blue
Gene Doughty
Mayor
Councilmember
Councilmember
Councilmember
Councilmember
Chairperson
Vice -Chairperson
Member
Member
MINUTES - MORRO A CITY COUNCIL •
ADJOURNED REGULAR MEETING - FEBRUARY 29, 1988
PAGE 2
John Roffinella Member
Howard Smith Member
Dean Tyler Member
STAFF: Gary Napper
Judy Skousen
Alan Davis
Bill Farrel
Elane Novak
PUBLIC COMMENT PERIOD
No public comments were received.
D. NEW BUSINESS
D-1 HARBOR SAFETY
City Administrator
City Attorney
Harbor Director
Comm. Dev. Dir.
Deputy City Clerk
A. Harbor Entrance Dredge Project Status Report
Mr. Davis indicated the U. S. Army Corps of Engineers is
completing their reconnaissance -level study at this time. The
study will be given to the City within the next two months. The
Corps is also working up a cost -share agreement to find the next
phase of a Feasibility Study/Environmental Impact Study, 50% to
be paid by a local sponsor and 50% to be paid by the Corps. The
cost will run $250,000 to $300,000, the local sponsor's share
then being approximately $150,000.
The actual project is proposed to dredge the harbor entrance to a
depth of approximately 40 feet. Under normal processing, the
project could be completed in 1992.
Councilmember Lemons asked if the City has received a copy of
the cost -share agreement from the Corps; Mr. Napper indicated
that we have not as yet.
Mr. Davis said the Harbor Department has produced a video-tape
which has been sent to the Army Corps of Engineers, Coast Guard,
Congressmen, Board of Supervisors, and other groups that may
support the City of Morro Bay in its request for grant money and
a federal project. Mr. Davis then showed the video-tape. The
tape was made to show what the harbor entrance looks like when
the bar is breaking and shows the hazards which are encountered.
These dangers are hard to visualize if one visits the harbor on a
calm clear day.
In the discussion that followed, Mr. Napper indicated
Congressman Panetta has introduced legislation which would
require the Army Corps of Engineers to start work on the harbor
within 6 months from the time legislation was approved. Mr.
Napper told us that three copies of the tape were sent to
Congressman Panetta to promote passage of his legislation.
MINUTES - MORRO BAY CITY COUNCIL •
ADJOURNED REGULAR MEETING - FEBRUARY 29, 1988
PAGE 3
Mr. Napper also indicated a cost -sharing agreement with the Corps
of Engineers must be reached and signed before further work on
the federal project will continue.
Mr. Giannini of the Harbor Advisory Board asked if Congressman
Panetta had indicated when the legislation would be considered.
Mr. Napper said there is no time period as to when this
legislation will be authorized and when the project would be done
if the legislation is authorized. Sonic Cable TV has also been
given copies of the tape, and the video will be shown with a
list of our legislators and congressmen asking people who view
the tape to contact their congressmen and legislators in support
of Mr. Panetta's legislation.
B. City's Project Application For SB 959 Grant Monies
Mr. Davis answered questions about the emergency project and
monies the City has requested in the amount of $1.2 million to
construct an entrance dredging in the summer of 1988. He
explained an alternative plan should be submitted, since
approximately $4 million in potential projects has been received
by the County for the $1.2 million. Mr. Davis explained an
alternative plan: in Phase One, $150,000 to be used as local
matching funds for a Feasibility Study to be conducted by Corps
of Engineers; and in Phase Two, $200,000 to be used as local
matching funds for federal project construction based upon a 10%
match of $2 million dredge project.
Mr. Napper reported County staff has not yet determined if they
will recommend the Board of Supervisors distribute all the monies
this year or hold some until next year. In any case, all the
grant monies must be spent by March 1989. County staff will make
a recommendation on how and where the monies are to be spent by
March 4th.
Mr. Fred Sears, President of the local Fishermens Association,
and members of the Board discussed how offshore oil drilling has
effected rock cod fishing. Mayor Reddell asked that Mr. Sears
and as many fishermen as possible to attend the Board meeting of
March 8th when the decision to distribute grant monies is made.
MOTION: Councilmember Sheetz made a motion to accept the staff
recommendation of submitting an addendum to our
original grant request in the amount of $400,000: Phase
One, $150,000 matching funds for a Feasibility
Study/Environmental Impact Study; and Phase Two,
$250,000 for the local match to construct the project.
Councilmember Lemons seconded the motion, and the
motion unanimously carried (5-0).
MINUTES - MORRO BAY CITY COUNCIL •
ADJOURNED REGULAR MEETING - FEBRUARY 29, 1988
PAGE 4
D-2 LONG-RANGE HARBOR PLANNING
A. Economic Development Report
B. Harbor Master Plan
C. Bayshore Bluffs Area Proposed Marina
D. Critical Cross -Roads Perspective
Mr. Napper indicated the 4 items in D-2 were agendized for
general discussion purposes.
Councilmember Odell asked Mr. Bud Laurent, of State Fish and Game
to explain the carrying capacity of the back bay, which Mr.
Laurent did. Live-aboards in the Bay were discussed and how they
contribute to changes in the Bay. Current State requirements to
harvest shellfish could restrict one liveaboard boat for every
500 acres of area, due to potential contaminants from the live -
aboard.
The Harbor Advisory Board expressed concern as to how much
direction the City Council could/would give them for long-range
planning. Mr. Giannini expressed the opinion that it would be a
shame for the Board to spend a lot of time on a project only to
find they had gone in a direction that did not fit in with the
Master Plan or that City Council was not happy with the concept
presented.
The Mayor suggested Council wanted the Board's ideas and
opinions, not just City Council's thoughts. It was suggested
the Board present several ideas or alternative plans to Council
and together they could choose the most feasible or most workable
plan for the City.
There was also some concern as to whether every planning change
had to go through the Coastal Commission and how this delay might
effect some projects.
It was suggested the City Council and the Board confer more often
and then indicate to staff which they felt to be the most
important items.
The Board mentioned some plans that have been explored in the
past and the time put in on them. Councilmember Sheetz suggested
that the Harbor Board go over some of the old harbor master plans
and see if parts of them might still be useful.
Jody Giannini said the Board would prioritize list of subjects to
be explored and would submit this list to City Council and they
could jointly decide which items might be of most importance in a
harbor master planning process.
Mr. Napper indicated the Local Coastal Program requires that
before any permanent improvements are made in the Rock Area,
there must be an approved plan. Mr. Napper also asked that after
City Council and the Board have identified and prioritized
MINUTES - MORRO A CITY COUNCIL •
ADJOURNED REGULAR MEETING - FEBRUARY 29, 1988
PAGE 5
certain improvements and plans, staff could develop the necessary
ordinances and precise plans to implement them.
John Roffinella questioned the fact as to whether they were going
to go ahead with the plans at the Rock now that the Circulation
Element matter had been cleared up. He said it was important a
couple of years ago and the money had been put aside. Mr. Napper
responded saying that other harbor planning issues have since
been raised and a prevailing thought was to address those issues
in a Harbor Master Plan. Mr. Napper said all those extra issues
have exceeded the capability of the study to deal with it. Mr.
Roffinella feels that nothing is getting done, and they want to
do something. Councilmember Odell felt there may have been some
misunderstanding as the ideas outlined for the Rock Area were
simple and would certainly not exceed the $60,000 amount.
Mr. Giannini suggested someone from the Planning Department work
with them and save everyone some money. Councilmember Odell
suggested maybe students from Cal Poly could be used.
Councilmember Sheetz suggested maybe the Harbor Board could work
with the Parks & Recreation Commission who also have some ideas
for the Rock Area and work on a joint venture.
Mr. Farrel said the City has most policy control over the
shoreline facilities. Even though we are within the permanent
jurisdiction of the Coastal Commission, there is much less
concern by the Coastal Commission for dry -land uses and the City
can basically work these out with staff and committees. When we
come to environmental and ecosystem questions, we will need to
bring in more professionals in whichever field we might be
exploring in-depth.
The general consensus seemed to be that if old ideas and new
ideas were evaluated and the Harbor Advisory Board develop lead
consensus on specific plans and improvements for the Harbor area,
paid consultants may not be necessary. The Harbor Advisory Board
could perform the concept planning work, and the monies allocated
could be reserved for implementing plans and actual projects.
D-3 COMMERCIAL FISHING INDUSTRY SUPPORT
A. Work Areas for Fishing Fleet
B. Vessel Haul -Out Facility
C. Support Industries
Councilmember Odell mentioned the Circulation Element and the
thought to convert a portion of the 4-lane Embarcadero into
public parking; if one portion is used for parking, there may be
enough room for fishing net repair. There is always a need for
room to repair nets. Mr. Sears mentioned that several shopping
center parking lots have been used for that purpose, but they
really need a more secure place where they can roll -out their
nets and then put it away when they are not working on it.
Different plans for storage sheds or secure areas were discussed
and also the fact that tourists do enjoy watching this kind of
MINUTES - MORRO B CITY COUNCIL •
ADJOURNED REGULAR MEETING - FEBRUARY 29, 1988
PAGE 6
thing. The Rock Area was suggested as a large vacant land that
could incorporate this use.
It was also determined the local fishing had been very good the
past couple of years and that the fishing industry is not dying
out in Morro Bay, but is actually the best in the area.
It was finally decided that these items should go back to the
Harbor Advisory Board, who would in turn make recommendations to
the City Council and possibly also work with the Planning
Commission. Bill Farrel, Community Development Director,
believed the Planning Commission could use more input from the
Harbor Board. Mr. Giannini said the Harbor Advisory Board may
request Council adopt a General Resolution supporting the local
fishing industry.
D-4 OTHER HARBOR ISSUES
A. Status of Husky Dredge Equipment in Bay
Mr. Napper asked Alan Davis to give an update on the dredge
equipment stored in the Harbor. Mr. Davis indicated they had a
letter from the dredging company stating they would be out of the
Bay by the end of March. The Mayor asked what if they weren't
out by then? Mr. Davis believed they would be gone as they have
a contract elsewhere. In the following discussion the question
came out as to how the City could prevent this kind of thing
from happening. It was suggested that maybe the rents should be
started at a higher rate.
B. Function and Bylaws of Harbor Advisory Board
Mr. Napper said the final item had been agendized to discuss the
Boards function, the Harbor ByLaws and the expectations of the
Harbor Advisory Board and the City Council as to their role and
purpose.
Mr. Giannini said there were times during the year they felt a
little frustrated. He said the Board did want to stay focused on
some items and not go off into to many directions. He wants a
united group and to know the feelings of the City Council. Mr.
Giannini said at one time they had 70 items going and were adding
more, thus not getting anything done. He thinks that right now
the leases are going well and things are running more smoothly on
the harbor. Mr. Giannini feels the Board now has better
direction. He believes the waterfront is in the best shape it
has ever been.
Mayor Reddell and Councilmember Lemons let the Harbor Advisory
Board know they were appreciated and that more joint meetings
were needed.
MINUTES - MORRO Bf CITY COUNCIL •
ADJOURNED REGULAR MEETING - FEBRUARY 29, 1988
PAGE 7
F. ADJOURNMENT
MOTION: Councilmember Sheetz moved the meeting adjourn; is was
seconded by Councilmember Donnelly. The motion
unanimously carried (5-0).
The meeting adjourned at 8:23 p.m.
Recorded by:
�ane Novak
Deputy City Clerk
MORRO�BAY �
CITY COUNCIL
AGENDA
REGULAR MEETING - FEBRUARY 22, 1988
VETERANS MEMORIAL HALL - 6:00 P.M.
ROLL CALL
INVOCATION
PLEDGE OF ALLEGIANCE
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 by standing. When recognized by the Mayor, please
come forward to the podium and state your name and address for the record.
Comments should normally be limited to three minutes.
DECLARATION OF FUTURE AGENDA ITEMS
A. CONSENT CALENDAR
Unless an item is pulled for separate action by the City Council, the fol-
lowing actions are approved without discussion.
A-1 CITY COUNCIL MINUTES OF THE STUDY SESSION OF FEBRUARY 4, 1988, THE
REGULAR MEETING OF FEBRUARY 8, 1988, AND THE SPECIAL MEETING OF
FEBRUARY 11, 1988
A-2 EXPENDITURE REPORT - JANUARY 1988
A-3 STATEMENT OF INVESTMENTS - JANUARY 1988
A-4 STREET ADVISORY COMMITTEE RESIGNATION (TYLER) AND AUTHORIZATION TO
ADVERTISE VACANCY
A-5 COMPLETION OF PROJECT NO. PW 87-05, TREATMENT PLANT LANDSCAPE PROJECT
A-6 RESOLUTION NO. 12-88 APPROVING SETTLEMENT AGREEMENT AND
AUTHORIZATION/EXECUTION OF NEW CITY MASTER LEASE FOR LEASE SITE 62/62W
(DR. ROBERT AND MARILYN HITTLE; DBA HITTLE'S LANDING)
A-7 SET APPEAL HEARING DATE (MARCH 14TH) FOR KEYOTO-NATALIE, INC. REQUEST
FOR COUNCIL RECONSIDERATION OF CEQA FINDINGS ON ORDINANCE NO. 318
(EXTENSION OF INTERIM URGENCY ORDINANCE)
B. PUBLIC HEARINGS, REPORTS & APPEARANCES
B-1 CONSIDERATION OF CASE NO. ZOA 01-88, LOCAL COASTAL PROGRAM IMPLEMENT-
ING PLAN ZONING AMENDMENT (WILLIAMS BROTHERS/MEASURE B)
1
6
B-2 CERTIFICATION OF ENVIRONMENTAL IMPACT REPORT FOR APPROPRIATIVE WATER
RIGHTS FOR TORO CREEK WELL BASIN
B-3 ORDINANCE NO. 319 REGULATING USE OF SKATEBOARDS UPON CERTAIN PUBLIC
RIGHTS -OF -WAY AND PROPERTIES
B-4 RESOLUTION NO. 9-88 ESTABLISHING NEW WATER AND SEWER AVAILABILITY
CHARGES FOR THE VARIOUS CITY WATER ALLOCATION PROGRAMS (PIPELINE;
RETROFIT; BLEND)
B-5 RECREATION AND PARKS COMMISSION RECOMMENDATIONS REGARDING GROUP PICNIC
FACILITIES AND ALTERNATIVE PROJECTS FOR DEL MAR PARK (CDP 80-87R)
B-6 REPORT ON NEW MONTHLY WATER/SEWER UTILITY BILLING PROCEDURES
C. UNFINISHED BUSINESS
C-1 RESOLUTION NO. 11-88 FORMALLY ADOPTING 1987 WATER REPORT AND PARAME-
TERS FOR 1988 WATER ALLOCATION PROGRAM AND OPERATING GUIDELINES
C-2 UPDATE ON STATE MANDATED SEISMIC SAFETY INSPECTION PROGRAM
C-3 POLICY DETERMINATION ON PAST -DUE RENTS ON LEASE SITE 30W-33W (MORRO
BAY FUEL DOCK, INC.) CONTINUANCE RECOMMENDED
C-4 REPORT ON CITY COUNCIL REQUESTED REVISIONS TO CITY ZONING ORDINANCES
D. NEW BUSINESS
D-1 STREET ADVISORY COMMITTEE RECOMMENDATIONS FOR PRIORITY STREETS FOR
MAINTENANCE OVERLAY PROGRAM
D-2 REPORT ON 1987 HARBOR FESTIVAL AND RECOMMENDATIONS FOR 1988 FESTIVAL
D-3 CITY MISSION STATEMENT AND CITY COUNCIL POLICY STATEMENT REGARDING
COMMUNICATIONS WITH STAFF
D-4 RESOLUTION APPROVING SUBLEASE ON LEASE SITE 129W-133W (ESTERO BAY FISH
CO.) TO CORDERO, WINSTON & CO. (PULLED)
D-5 AGENDA AND MEETING DATE FOR JOINT MEETING WITH RECREATION AND PARKS
COMMISSION (MARCH 1988)
D-6 ECONOMIC DEVELOPMENT CONCEPT INCENTIVES FOR DOWNTOWN AREA
D-7 REQUEST OF BLUE RIBBON COMMITTEE FOR ADDITIONAL APPOINTMENT OF
COMMITTEE MEMBERS
E. CLOSED SESSION
E-1 GOVERNMENT CODE SECTION 54956.9(A), PENDING LITIGATION
A. LOPERENA VS. CITY OF MORRO BAY
B. CABRILLO VS. CITY OF MORRO BAY
2
6 6
E-2 GOVERNMENT CODE SECTION 54956.9(C), CITY -INITIATED LITIGATION
A. SIGN ORDINANCE VIOLATIONS
B. LEASE CODE VIOLATIONS
E-3 GOVERNMENT CODE SECTION 54956.8, REAL PROPERTY NEGOTIATIONS,
DOMENGHINI
F. ADJOURNMENT
TO MONDAY$ FEBRUARY 29, 1988 AT 6:00 P.M. IN THE VETERANS MEMORIAL
HALL FOR A JOINT MEETING WITH THE HARBOR ADVISORY BOARD
COPIES OF STAFF REPORTS OR OTHER WRITTEN DOCUMENTATION
RELATING TO EACH ITEM OF BUSINESS REFERRED TO ON THIS
AGENDA ARE ON FILE IN THE OFFICE OF THE CITY CLERK AND
AVAILABLE FOR PUBLIC INSPECTION AND REPRODUCTION AT
COST.
3
MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING - FEBRUARY 22, 1988
VETERANS MEMORIAL HALL - 6:00 P.M.
Mayor Reddell called the meeting to order at 6:00 p.m.
ROLL CALL
PRESENT: Dale Reddell
Paul Donnelly
John Lemons
Jeff Odell
Rose Marie Sheetz
ABSENT: None
STAFF: Gary Napper
Judy Skousen
Bill Boucher
Louise Burt
Bill Farrel
Forrest Henderson
Nick Nichols
Steve Wolter
Ardith Davis
Horace Strong gave the invocation,
Allegiance.
PUBLIC COMMENT
Mayor
Councilmember
Councilmember
Councilmember
Councilmember
City Administrator
City Attorney
Assoc. Civil Engineer
Finance Director
Community Develop. Dir.
Asst. to City Admin.
Public Works Dir.
Recreation & Parks Dir.
City Clerk
and led the Pledge of
1. Ray Kaltenbach, 473 Sicily, addressed an article in the
Sun -Bulletin regarding a gazebo to be donated for the City Park
by Morro Bay Beautiful. He stated the Recreation and Parks Com-
mission and the City Council voted against a gazebo at this loca-
tion in 1985. That Council suggested it be placed at another lo-
cation, but Mr. Warren Dorn does not want it anywhere else.
2. Randy Ruff, 485 Shasta, stated in view of the conflict
of interest situation on the City Council, he has obtained a let-
ter from the Fair Political Practices Commission in response to a
letter addressed to the Commission by the City Attorney concern-
ing conflicts of interest by Dale Reddell. Mr. Ruff read the en-
tire letter addressed to Judy Skousen, City Attorney dated March
24, 1987 from John G. McLean, Counsel, Legal Division, of the
Fair Political Practices Commission. Mr. Ruff greatly exceeded
the allowed 3 minutes under the Public Comment Period by reading
the entire letter.
3. Lily Collier, 2330 Ironwood, commented on item D-1 on
the agenda concerning priority streets for maintenance overlay
MINUTES - MORRO BA* TY COUNCIL •
REGULAR MEETING - FEBRUARY 22, 1988
PAGE 2
program. She was particularly interested in improvements to
Ironwood, and not just from Avalon and Highway 41. She believes
the entire street needs repaving. Howard Olson, 2455 Ironwood,
and Bill Ready, 2470 Ironwood, also spoke in favor of repaving
Ironwood.
4. Bruce Risley, 540 Piney Way, discussed a book written
by Lincoln Steffans entitled The -Shame -of -the -Cities, and likened
it to Morro Bay and the situation regarding conflict of interests
among various councilmembers. He cited 5 items on the agenda
tonight that Mayor Reddell, and possibly others, may have con-
flicts of interest (B-2; B-4; C-1; C-4; E-3).
5. Wayne Bartlet, Seal Beach, was unhappy with the way the
City is handling water allocations. He stated he has paid taxes
on a Morro Bay lot for 17 years, and there should be a fair and
equitable way for him to build on his property. He did not be-
lieve either the lottery system or the first -come, first -served
procedures were appropriate; he wanted tenure of property owner-
ship to be the criteria.
6. Nelson Sullivan stated he did not believe Councilmember
Odell has a conflict of interest in the water allocation program.
He then read from a statement signed by him and Randall Ruff
dated February 22, 1987 regarding the City's pipe replacement
program. They maintain there is no evidence of water being saved
from the program, and requested Council hold a public hearing for
formal review of the program and allow adequate evaluation. He
also requested CAL be given sufficient time to present their
views on the program.
Councilmember Odell stated his conflict of interest in the water
allocation program is an ethical one in that he has applied for a
loan from the People's Self -Help Housing; he wants to remove him-
self from the appearance of approving PSHH's special water allo-
cation for self-interest.
DECLARATION OF FUTURE AGENDA ITEMS
1. Councilmember Sheetz requested Council prepare a reso-
lution for Council consideration at their next meeting to support
the California Wildlife, Coastal and Park Land Bond Initiative
scheduled for the June ballot.
2. Councilmember Sheetz stated on advice of her attorney
she will be stepping down from consideration of Closed Session
Item E-3, real property negotiations, Domenghini. She believes
some members of the City Council are in criminal violation of the
Brown Act regarding this item and she will not become an aider
and abettor with them. She commended Councilmember Odell for
providing her with information regarding this matter, and stated
it is the obligation of the City Attorney to contact the District
MINUTES - MORRO BAITY COUNCIL •
REGULAR MEETING - FEBRUARY 22, 1988
PAGE 3
Attorney's Office and request a criminal investigation into this
matter.
Councilmember Odell requested an opinion from the City Attorney
on this matter, and Mr. Napper stated this discussion should take
place in Closed Session.
A. CONSENT CALENDAR
A-1 CITY COUNCIL MINUTES OF- THE STUDY - -SESSION OF-FEBRUARY--4,
Mr. Napper recommended Council approve the minutes as submitted.
A-2 EXPENDITURE REPORT- JANUARY 1988
Mr. Napper recommended Council approve the Expenditure Report.
A-3 STATEMENT OF INVESTMENTS - JANUARY-1988
Mr. Napper recommended Council receive the Statement for file.
A-4 STREET ADVISORY COMMITTEE RESIGNATION-(TYLER) AND-AUTHORIZA-
Mr. Napper recommended Council accept the resignation of Mr.
Tyler, and instruct staff to advertise the vacancy.
A-5 COMPLETION OF PROJECT NO: PW--87-05,i TREATMENT- PLANT L•AND-
Mr. Napper recommended Council accept Project PW 87-05 as com-
plete, and authorize the City Clerk to sign and record the Notice
of Completion.
A-6 RESOLUTION - -NO: - 12-88 APPROVING -SETTLEMENT--AGREEMENT- -AND
LANDING
Mr. Napper recommended Council adopt Resolution No. 12-88.
A-7 SET APPEAL HEARING- -DATE -(MARCH--14TH)-FOR- -REYOTO-NATALIE
Cr � • : r � : � ���LiI�LE:I�C�F.�Y��diR�a79��7�YY�ip9y�tl:L��L�l1
Mr. Napper recommended Council set 14 March 1988 as the hearing
date for the appeal, and instruct staff to prepare the appropri-
ate notices and reports.
MINUTES - MORRO BA*ITY COUNCIL •
REGULAR MEETING - FEBRUARY 22, 1988
PAGE 4
Councilmember Donnelly requested Council discuss Item A-4
separately.
A-4 STREET ADVISORY COMMITTEE RESIGNATION-(TYLER) AND -AUTHORIZA-
TION TO ADVERTISE VACANCY
Councilmember Donnelly stated Len Carpenter has applied twice be-
fore for a position on this Committee, and he is still interested
in serving. Councilmember Donnelly requested Council appoint Mr.
Carpenter at this time to the vacancy rather than advertising the
position.
Councilmembers discussed this matter, with Mayor Reddell in favor
of the action as long as the ad -hoc status of the committee be
discussed during budget sessions. He suggested Council may ei-
ther want to make the committee a permanent standing committee,
or abolish it altogether. If it is established as a permanent
committee, it should be reorganized and position applications
readvertised.
Councilmember Sheetz was not in favor of appointing Mr. Carpen-
ter. Councilmember Lemons reminded Council of their recent pol-
icy to advertise all positions as they become vacant, rather than
reconsidering past applicants.
MOTION: Councilmember Lemons moved the Street Advisory Commit-
tee vacancy be advertised. The motion was seconded by
Councilmember Sheetz and carried, with Councilmember
Donnelly and Mayor Reddell voting no. (3-2)
MOTION: Councilmember Odell moved for approval of the remaining
Consent Calendar. The motion was seconded by Coun-
cilmember Sheetz and unanimously carried. (5-0)
B. PUBLIC HEARINGS, -REPORTS -&-APPEARANCES
IM
Mr. Farrel stated in the process to rezone the Williams Brothers
property from agriculture to a commercial use, it is necessary to
amend the City's Land Use Plan and Zoning Ordinance. The LUP
amendment has already been submitted to the Coastal Commission
for certification; the City is now in receipt of specific project
plans from the property owner and can proceed with defining the
exact area to rezone and thus make amendments to the City's Zon-
ing Ordinance. He reviewed the proposed area to be rezoned, the
suggested zoning designations (C-1/VS-C, S.4/PD), and text revi-
sions to the Zoning Ordinance. He noted it will not be necessary
to submit these revisions to the Planning Commission because of
the City's limited latitude to alter the Initiative.
MINUTES - MORRO BAI&TY COUNCIL •
REGULAR MEETING - FEBRUARY 22, 1988
PAGE 5
Mr. Farrel also noted the suggested C-1 zoning may not currently
encompass the full range of uses intended in the shopping center.
He suggested modifying the C-1 district in the Zoning Ordinance
to include nurseries, home improvement centers, and tire
shops/auto repair. He stated the tire shops/auto repair uses are
envisioned to be part of a larger department store -type use such
as in Sears or K-Mart, and would be subject to a conditional use
permit.
Mr. Farrel recommended Council accept the proposed zoning amend-
ments, and direct staff to open the 6-week public review period.
The matter will then be brought back to Council on April 25th for
formal adoption of the zoning ordinance revisions.
Councilmember Lemons questioned the effect of the zoning ordi-
nance amendments and Coastal Commission approval. Ms. Skousen
stated the City is bound by the Initiative and must change the
zoning; however, the zoning is not effective until the City re-
ceives Coastal Commission approval.
Mayor Reddell opened the hearing to the public for comments.
Katherine Walling, Morro Bay resident, asked where the water is
coming from for this project, and who is going to pay for the
highway work. Mr. Farrel stated these questions will be resolved
during processing of the precise development plan.
Ray Kaltenbach was concerned about the added load on the sewer
plant from this development. Mr. Farrel stated this will be ad-
dressed by the EIR prepared on the project along with any other
impacts as a result of the precise development.
Mayor Reddell closed the hearing to the public.
Councilmember Lemons asked if dry cleaning and laundromat would
be allowed uses under C-1; Mr. Farrel stated yes, depending on
the scale of the operation.
MOTION: Councilmember Lemons moved Council accept the proposed
zoning amendments as submitted, including the suggested
additional uses for C-1 District; staff be directed to
open the 6-week public review period on ZOA 01-88; and
return the matter to Council on April 25, 1988 for Or-
dinance amendment. The motion was seconded by Coun-
cilmember Donnelly and unanimously carried. (5-0)
B-2 CERTIFICATION -OF- ENVIRONMENTAL-iMPACT--REPORT•FOR-APPROPRIA-
TIVE-WATER-RIGHTS-FOR TORO-CREEK-WELL BASIN
Councilmember Lemons consulted the City Attorney regarding ear-
lier allegations of conflict of interest, and asked if items con-
MINUTES - MORRO BA*ITY COUNCIL •
REGULAR MEETING - FEBRUARY 22, 1988
PAGE 6
cerning development of new water sources for Morro Bay consti-
tuted a conflict of interest for people who work in or for people
in the construction industry. Ms. Skousen stated it is her opin-
ion the decision on whether or not to seek additional water and
how to go about seeking the water affects everyone in the general
public the same; therefore, none of the Councilmembers have a
conflict on this issue. Decisions on how to distribute water to
those in the construction industry may constitute a conflict.
Mel Willis of McClelland Engineers reviewed activities on the EIR
since Council review of the draft EIR on January 11th. All writ-
ten and verbal comments have been included in the EIR and each
has been responded to by the consultants; some of the text of the
EIR has been modified in response to the comments. Mr. Willis
stated disagreement with the EIR does not make the document inad-
equate. He emphasized certification of the EIR by the City Coun-
cil is not approval of a project; before the City can take fur-
ther action to pursue the project, certification of the EIR is
necessary. Mr. Willis reviewed State CEQA requirements for cer-
tification, including good -faith efforts to outline issues.
Mayor Reddell asked Mr. Nichols if it is his opinion the EIR
meets the CEQA criteria; Mr. Nichols stated yes, the City has
made a good -faith effort to identify all the issues.
Councilmember Sheetz asked if there is a timeframe for approving
this document; Mr. Nichols stated no, the State Water Resources
Control Board directed the City to prepare the EIR. They will
not process the application until they receive this document;
however, the City is expected to make a diligent effort to pursue
the application filed 18 months ago.
Mayor Reddell opened the hearing to the public.
Mike Armstrong, farmer in the Toro Creek area, stated although
the EIR includes figures for future use of agriculture land as
stated by the farmers, it also states the consultant's estimate
is more relevant. He stated this is not true; he plans to de-
velop up to 300 acres in agriculture uses in the future, and he
knows others with similar plans for possible use of 1100 to 1200
acres in the future. He objected to the City not providing pro-
tection to the farmers in the form of an agreement not to protest
any future water appropriation applications they may have.
Randy Ruff stated CEQA requires
discussed in the report, and the
tion of the Domenghini property
Council decide to pursue it.
all reasonable alternatives be
report does not discuss acquisi-
to obtain water rights should
Albert Souza, 475 Hacienda Drive, stated he leases property where
the project is to be located. He noted some errors in the EIR
including a statement regarding the creek drying up, and no fish
MINUTES - MORRO BAYACTTY COUNCIL
REGULAR MEETING - 1WUARY 22, 1988 •
PAGE 7
in the creek. He stated the creek has never dried up as long as
he has been there, and he has been getting trout out of it for 55
years.
Mike Cannon, District Supervisor for Chevron who is a property
owner in the Toro Creek area, stated they only received a copy of
the final EIR last Thursday and would like a period of time to
evaluate and respond in writing. He requested a 30-day period
for rebuttal, and Chevron would supply written conformation of
this request in the morning.
Kay Risley stated she was impressed with the City and the farmers
working together on this matter; agriculture is just as important
as water.
Mayor Reddell stated he had received a telephone call the EIR was
received too late to review in time for approval this evening;
Councilmember Sheetz agreed and believed Council should postpone
action for 30 days.
MOTION: Councilmember Sheetz moved Council postpone action on
the EIR for 30 days. The motion was seconded by Coun-
cilmember Donnelly and unanimously carried. (5-0)
Mr. Napper noted this action would schedule the item for the
March 28th meeting.
B-3 ORDINANCE NO. 319 REGULATING USE OF SKATEBOARDS UPON CERTAIN
PUBLIC RIGHTS -OF -WAY AND PROPERTIES
Mr. Wolter reviewed this item which had been referred to the
Recreation and Parks Commission by the City Council. The Commis-
sion held 3 public hearings and workshops in an attempt to regu-
late unsafe acts of skateboarders, bikers and roller skaters on
public property. He stated the Ordinance proposed is enabling -
legislation which will allow specific rules and regulations to be
adopted by resolution. Actual location prohibitions for the use
of skateboards is not included in the ordinance, except for
school grounds. Mr. Wolter reviewed the various provisions rec-
ommended in the ordinance. It was noted Morro Elementary School
would appreciate local enforcement of their prohibition to skate-
boarding on school property.
Councilmember Odell asked what streets would probably contain
prohibitions; Councilmembers Sheetz stated Morro Bay Blvd., Main
St., Embarcadero, and Quintana Road.
Mayor Reddell asked about the penalty for violation of the ordi-
nance; Ms. Skousen stated it would be up to the City Attorney and
Police Department as to how they would file. It was noted the
Police Department would have discretion to issue warnings or ac-
tually cite for violations. Council asked about the Ordinance
MINUTES - MORRO BA ITY COUNCIL •
REGULAR MEETING - F RUARY 22, 1988
PAGE 8
provision regarding the speed of skateboards; Ms. Skousen stated
there is sufficient case law that defines "reasonable and pru-
dent" speed. A person would be speeding if they were out of con-
trol on a skateboard.
Councilmember Lemons asked how the information in the ordinance
would be distributed to the children; Ms. Skousen stated the par-
ents would have to be educated, and fliers disseminated through
the schools might be useful. -
Mr. Wolter was questioned regarding the public workshops; he
stated some of the comments indicated the proposed rules were
"common sense" rules; however, many of the areas suggested for
prohibition are the areas where the kids love to skateboard.
Councilmember Lemons asked about the City's liability for enact-
ing prohibitions in some areas and not in others; Ms. Skousen
stated the City's liability is not increased by prohibiting
skateboarding in some areas and not in others.
Mayor Reddell opened the hearing to the public for comments.
Tom Wuriu, Juniper Ave., suggested a 60-90 day warning period of
advising skateboarders of the new law before actual citations are
issued.
Paul Daillak, Whidbey St., suggested an in depth program at the
schools to inform the children of the new law. She stated the
kids just want a place to practice their sport. Councilmember
Lemons asked Ms. Daillak if the children were in favor of the or-
dinance as presently written; Ms. Daillak did not believe they
were necessarily in favor of the ordinance, but had made sugges-
tions to amend a law believed to be implemented.
Mike Daillak, a skateboard enthusiast, stated skateboarders did
not want to hit anyone while skateboarding any more than a person
wants to be hit; it also hurts the skateboarder. Jason Rooney, a
student skateboarder, suggested Council set aside a place for
them to skateboard.
Mayor Reddell closed the hearing to the public.
Councilmembers discussed the ordinance and, along with staff,
made various suggestions for modifying the ordinance. Council
deleted the timeframes listed in Section 10.54.020 ("between 8:30
a.m. and 6:30 p.m."); deleted Section 10.54.050, Speed of Skate-
boards, entirely; and eliminated several words in section
10.54.070 (renumbered) Schools, "No person shall ride a skate-
board/rollerskates upon any school ground T--Whe-re-- children- -,*rze
piayiagT without permission of the person having supervision of
said grounds. er-said-ehildreav
MINUTES - MORRO BA*ITY COUNCIL •
REGULAR MEETING - FEBRUARY 22, 1988
PAGE 9
Councilmember Lemons asked if anyone has been injured by a skate-
boarder. Mr. Napper stated the City has not had a claim filed,
but has received some complaint calls.
Councilmember Lemons was concerned about the government regulat-
ing young people in this manner.
MOTION: Councilmember Sheetz moved Ordinance No. 319 be read by
title and number only. The motion was seconded by
Councilmember Donnelly.
Mr. Napper stated Council is required to re -open the public hear-
ing because they have made some amendments to the ordinance.
Mayor Reddell asked about the enforcement of the ordinance; Mr.
Napper stated enforcement will not be pro -active, but the ordi-
nance will give the City the tools to deal with problems if they
arise. Councilmember Lemons indicated he would not be voting in
favor of the ordinance.
MOTION: Councilmember Sheetz withdrew her motion, and Coun-
cilmember Donnelly his second.
Mayor Reddell re -opened the hearing to the public concerning the
amended Ordinance.
Jason Rooney objected to the time specifications in the ordi-
nance, noting in many cases, parents will not let their children
out to skateboard after the time period expires (6:30 p.m.)
Bobbie Jewel, parent of a skateboarder, asked if something be-
sides a fine could be established to teach children to obey the
law. She noted a fine will hurt the parents; however, a program
such as cleaning up school grounds, etc., would teach a child a
lesson (a work -order option).
Ms. Skousen noted juvenile courts have wide discretion in dealing
with juveniles and often establish innovative punishments to fit
the "crime" rather than fine the individual.
Paula Daillak emphasized the children did not write the ordinance
and probably would prefer not to have one; however, they have
been working with the City to make modifications they could live
with.
Mayor Reddell closed the hearing to the public.
MOTION: Councilmember Sheetz moved Ordinance No. 319 be read by
title and number only. The motion was seconded by
Councilmember Donnelly and unanimously carried. (5-0)
Mr. Napper read Ordinance No. 319 by title and number only.
MINUTES - MORRO BA*TY COUNCIL .
REGULAR MEETING - FEBRUARY 22, 1988
PAGE 10
MOTION: Councilmember Sheetz moved for approval of the first
reading of Ordinance No. 319. The motion was seconded
by Councilmember Donnelly and carried, with Councilmem-
bers Lemons and Odell voting no. (3-2)
B-4
Yy�:)q�7o7
WATER- -AND -SEWER -AVAIL-
Ms. Burt explained the water and sewer availability charges, last
set in June 1986, require updating as a result of Council's adop-
tion of a new "blend" program for allocating water this year.
The proposed Resolution establishing water and sewer availability
charges sets $1,725 for water, and $1,728.75 for sewer for a to-
tal connection charge of $3,443.75 for the "blend" program. The
pipeline water fees are proposed to be increased by 10% to $2,750
for water, and $2,750 for sewer (one equivalency -worth); the wa-
ter retrofit program connection fees would be $700 for water, and
$687.50 for sewer (one equivalency).
Councilmember Lemons and Mayor Reddell questioned the City Attor-
ney regarding a conflict of interest in voting on this item. Ms.
Skousen stated there is a possibility they could have a conflict
on this item since it pertains to construction hook-up fees. If
they planned to either build a house in Morro Bay or participate
in building a house this year, a conflict could exist.
Councilmember Lemons and Mayor Reddell stepped down for a possi-
ble conflict of interest; Mayor Pro Tem Donnelly assumed the
Chair.
Mayor Pro Tem Donnelly opened the hearing to the public.
Ray Kaltenbach objected to Council approving the same formula for
the retrofit program when it is not proven how much water it
saves.
Mayor Pro Tem Donnelly closed the hearing to the public.
MOTION: Councilmember Sheetz moved for adoption of Resolution
No. 9-88. The motion was seconded by Councilmember
Odell and carried, with Councilmember Lemons and Mayor
Reddell abstaining. (3-0-2)
Council recessed from 8:40 p.m. to 9:00 p.m.
Mayor Reddell and Councilmember Lemons resumed their seats.
MINUTES - MORRO BAITY COUNCIL 46
REGULAR MEETING - FEBRUARY 22, 1988
PAGE 11
Mr. Wolter reviewed the Recreation and Parks recommendations re-
garding group picnic facilities for Del Mar Park. Council previ-
ously referred this item to them as a result of an appeal to a
group picnic facility being planned for the area where the BMX
track is located. He noted the BMX track has more recently been
used to operate radio controlled cars. An alternate plan has
been developed; however, a large group picnic facility cannot be
accommodated. The new plan provides for enhancement of the ri-
parian habitat next to the creek, a hardened surface path for
skateboarders, beautification of the park, increased picnic fa-
cilities and continued use of the BMX track for radio controlled
cars. Although the need for a large group picnic area will not
be accommodated through this modification, it is hoped one may be
planned when the new senior housing project is developed on Main
Street. This project could also provide an alternate access into
Del Mar Park from Main Street.
Mr. Wolter indicated the City will be able to retain its $27,000
grant from the State for these alternate improvements without re-
quiring legislative approval.
Mayor Reddell opened the item for public hearing; no comments
were received.
MOTION: Councilmember Sheetz moved Council accept the revised
park improvement concept plan for Del Mar Park, in-
struct staff to prepare the appropriate Resolution up-
holding the appeal to CUP 30-87/CDP 80-87R, and direct
staff to amend the Del Mar Park Master Plan accordingly
for Council approval. The motion was seconded by Coun-
cilmember Lemons and unanimously carried. (5-0)
B-6 REPORT ON NEW MONTHLY WATER/SEWER UTILITY BILLING PROCEDURES
Ms. Burt reviewed the citizen response to the City's new monthly
billing policy; the estimated bill initially implemented by staff
was not well received by the public. Staff is currently reading
all meters monthly, and customers receive actual monthly bills.
This enables the City to catch leaks a month earlier than they
would ordinarily catch them on a bi-monthly reading procedure.
The monthly reading, however, may impact water crew personnel and
it is suggested this be addressed during the annual budget pro-
cess scheduled to begin soon.
Mayor Reddell opened the hearing to the public for comments.
Ray Kaltenbach asked the reason for monthly billing; Mayor
Reddell stated it was to help the consumer in that a monthly bill
MINUTES - MORRO BAITY COUNCIL •
REGULAR MEETING - FEBRUARY 22, 1988
PAGE 12
is easier to pay than a bi-monthly bill, and the City receives
the funds sooner. Mr. Kaltenbach stated he preferred the every
2-month bill, it is less checks to write.
Mayor Reddell closed the hearing to the public.
Councilmember Donnelly noted a problem of water running down the
street from an apartment complex at the north-east corner of
Pacific and Kern; Mr. Nichols said they would look into that
report.
MOTION: Councilmember Lemons moved Council receive the report
for file, and instructed staff to evaluate the monthly
billing procedures and impacts in the FY 88-89 Budget
preparations. The motion was seconded by Councilmember
Odell and unanimously carried. (5-0)
C.
C-1 RESOLUTION NO. 11-88 FORMALLY ADOPTING 1987 WATER REPORT AND
r.w r.r.. r.m r.. r.n r,�r, .noo r.rw mnr-� nrr ril.w mrnwr ririr�nnw.•'rnin rrnc+nwmrwrn
Councilmember Donnelly and Mayor Reddell excused themselves from
this item because of a conflict of interest. It was noted Coun-
cilmembers Lemons and Odell had also declared conflicts on this
item when it was considered on February 8th and 11thj however,
their names had been drawn to form a Council quorum in order to
make a decision on this matter. Ms. Skousen stated Councilmember
Lemons and Odell should again state the nature of their
conflicts.
Councilmember Sheetz assumed Chair of the meeting.
Councilmember Lemons stated he has received $250 in the last 12
months from a single source in the construction industry. Coun-
cilmember Odell stated he has applied for a housing loan from
Peoples' Self -Help Housing, and they are being provided a special
water allocation in the 1988 Water Allocation Program.
Mr. Farrel reviewed the Resolution prepared pursuant to Council
action on February 8th and 11th. He noted staff had changed the
first quarterly award date from March 7th to April 4 to give
staff adequate time to process the permits. He also stated staff
had initially represented there were 15 people on a waiting list
to be given priority because of filing applications last year.
Upon closer scrutiny, it was determined 5 of those had not ap-
plied prior to the March 9th deadline last year and were, there-
fore, unable to qualify with those who had applied prior to the
Council -imposed deadline. This means there are 40 applications
to be awarded through the lottery program adopted by Council.
The other 5 should be placed in the lottery along with this
MINUTES - MORRO BA0ITY COUNCIL •
REGULAR MEETING - FEBRUARY 22, 1988
PAGE 13
year's applicants, but be allowed three additional weeks to file
complete applications.
Council discussed the proposed amendments as recommended by staff
and agreed these should be included in the Resolution. Mr.
Napper stated staff has a sense of Council direction in this mat-
ter and would amend the Resolution accordingly.
MOTION: Councilmember Odell moved for the adoption of Resolu-
tion No. 11-88 as amended. The motion was seconded by
Councilmember Lemons and carried with Councilmember
Donnelly and Mayor Reddell abstaining. (3-0-2)
Mayor Reddell and Councilmember Donnelly resumed their seats.
C-2 UPDATE ON STATE MANDATED SEISMIC SAFETY INSPECTION PROGRAM
Bill Farrel reviewed the report identifying the tasks set by
staff to establish the State -mandated seismic safety inspection
program. These tasks include identifying all unreinforced build-
ings that are potentially hazardous, develop and implement a mit-
igation program to reduce the hazard, and submit information to
the Seismic Safety Commission by January 1, 1990. He noted the
first task has been accomplished; there are approximately 25
buildings that are potentially hazardous in Morro Bay.
Council received the report for file; no action was taken.
C-3
Mr. Napper stated this item has been continued to allow the Fuel
Dock an opportunity to provide financial information to substan-
tiate their claim of a financial hardship to pay increased lease
rents. He noted their Board of Directors met February 8th and
authorized tax information to be submitted to the City; the City
did not receive some of that tax information until February 17th
and did not have time to evaluate it for this meeting. Mr.
Napper stated his concern on establishing lease rents on "ability
to pay", and objected to the Fuel Dock's position of non-payment.
He noted staff was in receipt of a letter today from a new attor-
ney for the Fuel Dock requesting this item be deferred until he
has time to inform himself on this matter.
Council also expressed concern regarding this item, and requested
it be scheduled for the next meeting and the Fuel Dock be in-
formed to be present, or they will be required to pay the rent as
stated in the lease.
MOTION: Councilmember Lemons moved this item be continued to
the next meeting, and the Fuel Dock be invited in writ-
MINUTES - MORRO BA0ITY COUNCIL •
REGULAR MEETING - FEBRUARY 22, 1988
PAGE 14
ing to the meeting. The motion was seconded by Coun-
cilmember Sheetz and unanimously carried. (5-0)
C-4 REPORT ON CITY COUNCIL
REVISIONS TO CITY ZONING
Mayor Reddell addressed matters relating to a possible conflict
of interest because of his connection to the building industry in
considering some of the material contained in the staff report.
He stated he owns no property that requires a variance, in 30
years of building he has never received a variance for a height
limit, and he has never been turned down for a variance for a
height limit. He does not believe he has a conflict in consider-
ing this item.
Mr. Farrel reviewed the report which is in response to Council
request for improvements in the Zoning Ordinance regarding clar-
ity and ease of administration. He noted items concerning allow-
ing administrative authority to approve increases in height lim-
its of garages so driveways can be installed within the normal
slope standards; streamlining of the permit process for single
family dwellings; clarification on City processing of development
applications on substandard lots; and information regarding re-
quirements for building permits.
He asked Council to discuss the items, and provide direction to
staff. If Council requests changes to the ordinance, amendments
will be prepared and hearings scheduled before the Planning Com-
mission for initial review and recommendation.
Council discussed height limitations; Mr. Farrel stated the real
issue is should a variance be denied because it blocks the view
of another private property. The test of granting or denying a
variance is whether denial would cause a hardship on the prop-
erty. Mr. Napper noted the Planning Director's administrative
determination could be appealed to the Planning Commission and
City Council. Council consensus was for staff to prepare an
amendment allowing the Zoning Administrator to initially hear
these types of variances.
Council agreed with the Planning Director's recommendation to
simplify the permit process for single family residences by mak-
ing an exception of the two step approval process within the PD
zone for certain residential limited projects. Use permits could
still be required as a single step, or dropped for simple single
family applications.
Mr. Farrel discussed problems associated with sub -standards lots
in Morro Bay, and Ms. Skousen recommended Council consider adopt-
ing a merger ordinance; this would require an individual who owns
two sub -standard lots side -by -side to merge the lots to establish
a standard -sized lot. Council agreed with the suggestions for a
MINUTES - MORRO BA ITY COUNCIL •
REGULAR MEETING - FMRUARY 22, 1988
PAGE 15
sliding scale to determine yard setback, lot coverage, and park-
ing requirements on small parcels; however, they were not in fa-
vor of a merger ordinance.
Mr. Farrel reviewed the requirements for building permits for im-
provements values over $100. Councilmember Donnelly stated he
had suggested this matter be reviewed; after reading the staff
analysis, he believed the matter should be left as is.
Staff was directed to proceed as outlined by Council.
D. NEW BUSINESS
D-1 STREET ADVISORY COMMITTEE RECOMMENDATIONS FOR PRIORITY
STREETS FOR MAINTENANCE OVERLAY PROGRAM
Nick Nichols reviewed the priority list established by the Street
Advisory Committee for chip seal and in-house maintenance over-
lay. He stated the costs to implement the recommendations of the
Street Advisory Committee amount to $154,925; $132,700 is cur-
rently budgeted for these improvements. Mr. Napper recommended
deferring the recommendation to overlay Embarcadero from Beach
St. to Coleman Drive until a decision is made on whether or not
to convert a portion of this street to public parking. Eliminat-
ing this portion of the recommendation brings the Street Advisory
Board priority list within budgeted funds.
Councilmember Lemons advised he has been contacted by a resident
of Kern Avenue who may be interested in donating funds to pave
Kern if it can be done for $50,000 or less; the resident wished
to do this in memory of his wife who is recently deceased. Coun-
cilmember Lemons stated he would be in contact with the Public
Works Department regarding this item.
Councilmember Sheetz reminded staff not to pave the downtown or
Embarcadero areas during Easter Week.
Councilmember Donnelly requested the Street Advisory Committee
consider the possibility of placing a yield sign at Bernardo and
Olive; Mr. Nichols stated he would schedule it for the Commit-
tee's consideration.
MOTION: Councilmember Donnelly moved Council accept the recom-
mendation of the Street Advisory Board regarding
streets to be maintained utilizing FY 87-88 monies, as
amended by the City Administrator to delete paving Em-
barcadero, from Beach Street to Coleman Drive. The mo-
tion was seconded by Councilmember Odell and unani-
mously carried. (5-0)
MINUTES - MORRO BA*ITY COUNCIL is
REGULAR MEETING - FEBRUARY 22, 1988
PAGE 16
D-2 REPORT ON 1987 HARBOR FESTIVAL AND RECOMMENDATIONS FOR 1988
FESTIVAL
Steve Wolter reviewed the 1987 Harbor Festival which included an
attendance of 16,000, revenues of $23,000, 975 volunteer hours,
and $6,400 back to service organizations contributing volunteer
hours. The Steering Committee has made recommendations for im-
provements to the 1988 Harbor Festival including allowing the
Harbor Festival Steering Committee to become a non-profit organi-
zation separate from the City in 1988. This action could be re-
alized 1 year before it was initially thought feasible. The Com-
mittee requests an appropriation of $9,000 for Festival office
operations in 1988 with a reduction by 1/3 in 1989 and 1990.
Mr. Wolter reviewed the impacts of the 1987 Festival to City
staff; and future impacts to consist of advisor, continuing to
host the triathlon and paddleboard race, and Fire and Police
expenses.
Council agreed with the staff recommendation on this item, and
commended the Steering Committee on intentions to achieve their
non-profit status earlier than expected.
MOTION: Councilmember Sheetz moved Council accept in concept
the Harbor Festival report and recommendations as sub-
mitted; and allocate $2,500 from FY 87-88 General Fund
Contingencies to the Local Community Promotions Fund
for Harbor Festival 1988, said monies available for ex-
penditure subject to an executed Agreement for Services
between the Harbor Festival Organization and the City.
The motion was seconded by Councilmember Lemons and
unanimously carried. (5-0)
D-3 CITY MISSION STATEMENT AND CITY COUNCIL POLICY STATEMENT
REGARDING COMMUNICATIONS WITH STAFF
Mr. Napper noted the Council/staff workshop held in January dur-
ing which a Mission Statement and Council Policy Statement had
been developed. Staff had met to discuss these items, and minor
revisions have been submitted in the Agenda packet.
Council reviewed the items and suggested a revision to the Mis-
sion Statement, the second sentence, to read, "We are committed
to this purpose by and will provide#aq a level of municipal
service ..."
MOTION: Councilmember Lemons moved to amend Mission Statement
as stated. The motion was seconded by Councilmember
Odell and unanimously carried. (5-0)
MOTION: Councilmember Sheetz moved for the approval of the Mis-
sion Statement as amended, and the Council Policy
MINUTES - MORRO BA*ITY COUNCIL •
REGULAR MEETING - FEBRUARY 22, 1988
PAGE 17
Statement. The motion was seconded by Councilmember
Odell and unanimously carried. (5-0)
D-4 RESOLUTION APPROVING SUBLEASE ON LEASE SITE 129W-133W
This item was pulled from the agenda.
D-5 AGENDA AND MEETING DATE FOR JOINT MEETING WITH RECREATION
AND PARKS COMMISSION MARCH 1988
Mr. Wolter stated possible dates to hold a joint meeting with the
Recreation and Parks Commission are limited due to heavy use of
limited City facilities. He recommended Council approve holding
a joint meeting on March 22, 1988 at 7 PM in the Veterans Hall.
Possible agenda items include a status report on the Community
Center, School District facility use, Del Mar Park Master Plan
Revision, Work Program Needs for 1988-89 Fiscal Year, evaluation
of the Recreation and Parks Commission, and attendance and facil-
ity use reports. He asked Council if they had any items they
wished to add.
Mayor Reddell requested an item be added regarding individual
Commissioners appearing before Council with their views when a
majority Commission report has been submitted to Council. He did
not believe it was proper for members of Council advisory boards
to present their personal viewpoints, but rather the majority
board consensus should be presented to Council.
MOTION: Councilmember Lemons moved Council set March 22, 1988
at 7 PM in the Veterans Hall to meet with the Recre-
ation and Parks Commission. The motion was seconded by
Councilmember Odell and unanimously carried. (5-0)
D-6 ECONOMIC DEVELOPMENT CONCEPT INCENTIVES FOR DOWNTOWN AREA
Mr. Farrel stated his report is in response to Council request to
identify ways in which the City might help to enhance the economy
in downtown Morro Bay. He reviewed steps the City has recently
taken in this direction, and activities the City could initiate
or assist businesses in developing. These included refining the
recent economic study with a special section on the downtown
area, develop a specific plan for the downtown area, lobby the
Federal government to keep the Post Office in the downtown area,
integrate the future Williams Brothers shopping center with the
City center, and/or forming a redevelopment agency to accomplish
the above. Other short-term activities include reduction or
waiver of fees for permits, off -site parking requirements, and/or
off -site improvements.
Councilmember Sheetz announced although she is a business owner
on Morro Bay Blvd., she does not believe any benefits she might
MINUTES - MORRO BA0ITY COUNCIL •
REGULAR MEETING - FEBRUARY 22, 1988
PAGE 18
derive from this discussion or decisions Council might make would
be of greater benefit to her than any other person in the down-
town area; so, she will participate in the discussion and action
on this item.
Mayor Reddell did not think Coastal Development fees or building
permit fees should be waived.
Councilmember Sheetz believed it important the Post Office remain
in the downtown area; she asked if a condition could be placed on
the Williams development to provide a new Post Office facility in
the downtown area.
Council discussed the various concepts including a redevelopment
agency; Mr. Napper provided a brief overview of the formation and
purpose to a redevelopment agency. Councilmember Lemons noted no
one is suggesting such an agency be formed; Mr. Napper indicated
that statement is correct, it is merely an option at this point.
Chris Thompson, Chamber of Commerce manager, stated the Chamber
legislative committee has been discussing some of the things men-
tioned in the staff report. Councilmember Lemons suggested a
workshop be conducted similar to the one Council had on the Traf-
fic Circulation Element to discuss in detail the items noted by
staff. At that time, the Chamber and business community can sub-
mit items of interest.
MOTION: Councilmember Lemons moved a workshop be scheduled to
discuss the concept incentives and individual Coun-
cilmembers submit any new ideas to Mr. Farrel. The mo-
tion was seconded by Councilmember Odell and unani-
mously carried. (5-0)
Mr. Napper indicated he would make the report available to
business organizations.
D-7 REQUEST OF BLUE RIBBON COMMITTEE FOR ADDITIONAL APPOINTMENT
OF COMMITTEE MEMBERS
Mr. Napper stated one of the members of the Blue Ribbon Committee
has advised he will be out of town during the final two weeks of
committee meetings. The Blue Ribbon Committee has suggested
Council appoint alternates to the original appointees to act in
case a member is unable to attend.
Councilmember Lemons believed it important for a full committee
to be present to make decisions.
MOTION: Councilmember Lemons moved staff be directed to write a
letter to the Committee stating Council desires each
committee member to seek out his own alternate, furnish
him/her with information regarding committee activi-
ties, and keep him/her advised of current activities so
MINUTES - MORRO BA0ITY COUNCIL •
REGULAR MEETING - FEBRUARY 22, 1988
PAGE 19
in the event the member is going to be absent, the al-
ternate can vote. The motion was seconded by Coun-
cilmember Odell.
Chuck Clarke, Blue Ribbon Committee Chairman, urged Council to
allow appointment of alternates to vote in the event a committee
member is unable to attend.
The motion was unanimously carried. (5-0)
E. CLOSED SESSION
Councilmembers decided to postpone Closed Session items to Mon-
day, February 29th before the joint meeting with the Harbor Advi-
sory Board.
F. ADJOURNMENT
MOTION: Councilmember Lemons moved the meeting be adjourned to
Monday, February 29, 1988 at 5:00 p.m. in the City Hall
Conference Room to consider the Closed Session items on
this evening's agenda; and from there to the Veterans
Memorial Hall at 6:00 p.m. for a joint meeting with the
Harbor Advisory Board. The motion was seconded by
Councilmember Sheetz and unanimously carried. (5-0)
The meeting adjourned at 11:38 p.m.
Recorded by:, I
ARDITH DAVIS
City Clerk
NOTICE OF SPECIAL MEETING
NOTICE IS HEREBY GIVEN that there will be a Special
Meeting of the Morro Bay City Council to be held on
Thursday, February 11, 1988 at 12:00 noon, in the Library
Program Room, 625 Harbor Street, Morro Bay, California. The
purpose of the Special Meeting is to hold a Public Hearing
for Clarification of the 1988 Water Allocation Program and
Operating Procedures; at which said hearing any person may
appear and express their views for, against, or in
modification of said Program and Procedures.
DATED: February 10, 1988
City of Morro Bay, California
NOTICE OF SPECIAL MEETING
NOTICE IS HEREBY GIVEN that there will be a Special
Meeting of. the Morro Bay City Council to be held on
Thursday, February 11, 1988 at 12:00 noon, in the Library
Program Room, 625 Harbor Street, Morro Bay, California. The
purpose of the Special Meeting is to hold a Public Hearing
for Clarification of the 1988 water Allocation Program and
Operating Procedures; at which said hearing any person may
appear and express their views for, against, or in
modification of sai& Program and Procedures.
DATED: February 10, 1988
�— DALE REDDELL, Mayor
City of Morro Bay, California
CERTIFICATION
I, Ardith Davis, City Clerk of the City of Morro Bay,
hereby certify that I delivered/posted the foregoing Notice
of Special Meeting to the following persons/places before
12:00 noon on February 10, 1988:
Mayor Dale Reddell (delivered)
Councilmember Jeff Odell (delivered)
Gary Napper, City Administrator (delivered)
Judy Skousen, City Attorney (delivered)
Sun -Bulletin, Jay Thompson (delivered)
City Hall, 595 Harbor Street (posted)
Library, 625 Harbor Street (posted)
Police Department 850 Morro Bay Blvd. (posted)
DATED: February 10, 1988
ARDITH DAVIS, City Clerk
City of Morro Bay, California
NOTICE OF SPECIAL MEETING
NOTICE IS HEREBY GIVEN that there will be.a Special.
Meeting of the Morro Bay City Council to be held on
Thursday, February 11, 1988 at 12:00 noon, in the Library
Program Room, 625 Harbor Street, Morro Bay, California. The
purpose of the Special Meeting is to hold a Public Hearing
for Clarification of the 1988 water Allocation Program and
Operating Procedures; at which said hearing any person may
appear and express their views for, against, or in
modification of said —Program and Procedures.
DATED: February 10, 1988
City of Morro Bay, California
CERTIFICATION
I, Elane Novak, Deputy City Clerk of the City of Morro
Bay, hereby certify that I delivered the foregoing Notice of
Special Meeting to the Telegram Tribune and Councilmember
Paul Donnelly on February 10, 1988.
DATED: February 10, 1988
Gc-lam.-..� / GU-✓G- . �
ELANE NOVAK, Deputy City Clerk
City of Morro Bay, California
NOTICE OF SPECIAL MEETING
NOTICE IS HEREBY GIVEN that there will be a Special
Meeting of the Morro Bay City Council to be held on
Thursday, February 11, 1988 at 12:00 noon, in the Library
Program Room, 625 Harbor Street, Morro Bay, California. The
purpose of the Special Meeting is to hold a Public Hearing
for Clarification of the 1988 Water Allocation Program and
Operating Procedures; at which said hearing any person may
appear and express their views for, against, or in
modification of sai& Program and Procedures.
DATED: February 10, 1988
DALE REDDELL, Mayor
City of Morro Bay, California
CERTIFICATION
I, Judy Skousen , City Attorney of the City of Morro
Bay, hereby certify that I delivered the foregoing Notice of
Special Meeting to Councilmember Rose Marie Sheetz before
12:00 noon on February 10, 1988.
DATED: February 10, 1988
DY SK USEN, City Attorney
ty of Morro Bay, California
NOTICE OF SPECIAL MEETING
NOTICE IS HEREBY GIVEN that there will be a Special
Meeting of the Morro Bay City Council to be held on
Thursday, February 11, 1988 at 12:00 noon, in the Library
Program Room, 625 Harbor Street, Morro Bay, California. The
purpose of the Special Meeting is to hold a Public Hearing
for Clarification of the 1988 Water Allocation Program and
Operating Procedures; at which said hearing any person may
appear and express their views for, against, or in
modification of said -Program and Procedures.
DATED: February 10, 1988
DALE REDDELL, Mayor
City of Morro Bay, California
CERTIFICATION
I, Dale Reddell, Mayor of the City of Morro Bay, hereby
certify that I delivered the foregoing Notice of Special
Meeting to Councilmember John Lemons before 12:00 noon on
February 10, 1988.
DATED: February 10, 1988
DALE REDDELL, Mayor
City of Morro Bay, California
MINUTES - MORRO BAY CITY COUNCIL
SPECIAL MEETING - FEBRUARY 11, 1988
LIBRARY PROGRAM ROOM - 12:00 NOON
Mayor Reddell called the meeting to order at 6:00 p.m.
ROLL CALL
PRESENT: Dale Reddell
Paul Donnelly
John Lemons
Jeff Odell
Rose Marie Sheetz
ABSENT: None
STAFF: Gary Napper
Judy Skousen
Dave Bugher
Louise Burt
Bill Farrel
Ardith Davis
Mayor
Councilmember
Councilmember
Councilmember
Councilmember
City Administrator
City Attorney
Associate Planner
Finance Director
Community Develop. Dir.
City Clerk
Mr. Napper stated this special meeting had been called for the
purpose of clarifying actions taking by Council on February 8th
with regard to the 1988 Water Allocation Program and Operating
Procedures. Mayor Reddell noted the meeting had been called on
short notice because staff needed clarification before they could
implement the water allocation program; the City Attorney is go-
ing out of town today, so it was necessary to call the meeting as
quickly as possible. Mayor Reddell indicated that he had not
called for the meeting personally, but exercised his authority as
Mayor to schedule the meeting as requested by staff.
PUBLIC COMMENT
1. June Hofstead, 690 Elena, was disturbed 4 out of 5
Councilmembers have a conflict of interest on such an important
City matter as water. Mayor Reddell responded the only reason he
has a conflict is because the program involved awarding building
permits; he is able to vote on other City items pertaining to
water.
2. Bruce Risley commented Mayor Reddell and his brother
received 1/8th of the building permits last year, and the Mayor
has in the past employed 2 of the other Councilmembers. Mayor
Reddell denied the allegation concerning the building permits.
3. Mark Dees, 2650 Maple, stated the conflict issue could
be carried to the extreme; he does not believe the conflict in
this case is to the degree it is necessary to worry about.
MINUTES - MORRO BAAITY COUNCIL •
SPECIAL MEETING - FEBRUARY 11, 1988
PAGE 2
4. Ron Pierce, building contractor, started to make com-
ments regarding the line forming in front of City Hall. Judy
Skousen stated this is getting into the items Council will be
discussing, and suggested Mr. Pierce make his comments at that
time.
PUBLIC HE_A_RI_NG FOR CLARIFICATION OF THE 1988 WATER ALLOCA-
TION PROGRAM AND OPERATING PROCEDURES
Mr. Napper requested Councilmember Donnelly and Mayor Reddell ex-
cuse themselves at this time due to their conflict of interest as
they had when this matter was considered on February 8th. Coun-
cilmember Sheetz assumed chair of the meeting.
Dave Bugher reviewed the issues on which staff requested clarifi-
cation: 1) Council determined priority be given to "single lot
owners". How does this term relate to existing categories of
owner/builder/occupant and speculative built? 2) How to resolve
the problems associated with the current line forming in front of
City Hall to receive building permits. 3) Does implementation of
the "blend program" preclude water allocations entirely through
the off -site program. 4) Discrepancies of approval in the 3:1
ratio vs. 2:1 ratio for retrofitting commercial developments. 5)
A recommendation to change the date to begin accepting applica-
tions to February 23, 1988 to allow Council to formally adopt op-
erating procedures at their February 22nd meeting.
Councilmember Sheetz opened the hearing to the public.
Ken Scott, building contractor, asked questions regarding the
line and stated one contractor could stand in line with applica-
tions for the 35 permits left for 1988. He suggested 1 permit
per person, and asked where the official line starts.
Ron Pierce, building contractor, stated he is standing in line
for a multi -family project that is his personal project. He
noted there are not many of those left since the City allocated
20 to the Peoples Self -Help Housing project. He also wished to
dispel rumors he is standing in line for 12 single-family per-
mits; he has only 8, and is willing to submit the names of the
applicants to Council and guarantee he will not accept anymore.
Mr. Pierce stated the applications are for single-family
dwellings and for single -lot owners.
James Maul, architect, stated Council was setting a fist -fight
situation with the line. He encouraged Council to consider hold-
ing a lottery in lieu of allowing people to stand in line for
permits. Mr. Maul stated he also did not see a great difference
between owner -occupied and speculative building; it is the same
housing.
Clyde Ganes, building contractor, agreed with Mr. Maul. He did
not feel owner -occupied should receive preferential treatment,
r
MINUTES - MORRO BAAITY COUNCIL •
SPECIAL MEETING - FEBRUARY 11, 1988
PAGE 3
and noted the number of employed people who build homes and live
here. He agreed with the lottery concept.
Ed Ewing was in favor of a one -person, one -permit and lottery
system.
Ray Kaltenbach believed the only fair way is to conduct a lot-
tery, with priority given to owner -occupied applications.
Ken Dully, 473 Rennell, stated Council relegated the spec -builder
to the back seat at their February 8th meeting, and he was not in
favor of changing that. He did not believe this meeting was well
advertised, and only heard about because he happened to be in the
Planning Department. He supports owner -occupied priority, and no
lottery system.
Dorotha Deutsch stated it is unfair to change the rules after the
fact. These things should have been brought out at the February
8th meeting. She favored a first -come, first -served program as
opposed to a lottery. If a lottery system is used, the 15 left-
over applications from last year should be included.
Tom Mayberry, resident on Luisita, stated he has been paying
taxes on a lot in Morro Bay for 5 years and hopes to be able to
build this year. He wants owner -occupied priority; one person,
one permit.
Ken Dela Vega asked questions regarding his retrofit permit from
1986; Mr. Bugher clarified he needs to pull it before June, 1988
when the CDP will expire.
John Heimal, Cedar Street, was not in favor of a lottery, noting
people could keep losing every year. He opposed changing the
rules mid -stream, and liked the idea of a two-year waiting list.
He noted the line forming might provoke violence and guns.
Mary Katherine Archultck, resident on Luisita, asked questions
regarding the line and whether or not the City was going to pro-
tect people who stand in the line. She also made some sugges-
tions for qualifying for a permit.
Councilmember Odell noted the City did not establish the line,
Mr. Pierce did. The meeting was called for Council to decide how
to handle the situation.
Michael Krout, attorney representing Ron Pierce, stated Council
is overlooking the unfairness of a lottery, and stated it is not
appropriate at this point to change the rules people have relied
upon.
Mark Dees spoke in favor of the lottery system, and stated a line
in front of City Hall could get ugly. He indicated paying prop-
erty taxes does not elevate one for special treatment.
MINUTES - MORRO BAAITY COUNCIL •
SPECIAL MEETING - FEBRUARY 11, 1988
PAGE 4
David West, Cayucos, asked questions about the line, and stated
lotteries do not generate violence, and it looks as if a line
might.
Martin Malt asked questions regarding a lottery system.
Ken Dully stated the first -come, first -served program worked fine
last year without problems, and did not see why it couldn't be
used this year.
Roland Kessling spoke in favor of retaining the 15 applications
from last year on a priority basis for this year.
MOTION: Councilmember Odell moved the hearing be closed to the
public. The motion was seconded by Councilmember
Lemons and unanimously carried, with Councilmember
Donnelly and Mayor Reddell abstaining. (3-0-2)
ISSUE NO. 1 - SINGLE LOT OWNERS VS. OWNER/BUILDER/OCCUPANT AND
SPECULATIVE BUILT
Councilmember Lemons explained the intention of his motion on
Monday night; he said if there were 50 permits available, an
owner of one lot would be entitled to one permit. If that did
not fill up the list of 50, then if someone else had a second
lot, he would be entitled to apply for a second permit. No lot -
owner can get more than one permit unless there are less than 50
people who want permits. Councilmember Odell stated that was his
understanding of the motion.
Councilmember Lemons also stated an agent can represent an owner
or owners. Councilmember Sheetz asked if Council has the author-
ity to limit the number of applicants an agent can represent; Ms.
Skousen stated yes.
Councilmember Sheetz stated she was still in favor of prioritiz-
ing the 15 applications from last year, and the remainder be al-
located to single-family builders. She did not believe one agent
should be able to represent multiple owners and receive all of
the applications.
Councilmember Lemons expressed concerns with changing the first -
come, first -served rule approved by Council at their last
meeting.
Councilmember Odell stated there are some problems with the
first -come, first -served program; however, he also has concerns
regarding a lottery program. He said it is possible someone
would never win, and this is unfair to people who have had a lot
a long time and are unable to build because they don't get picked
in a lottery.
Mr. Napper stated staff is questioning the definition of the
single -lot owner priority Council established Monday night. If
MINUTES - MORRO BAITY COUNCIL •
SPECIAL MEETING - FEBRUARY 11, 1988
PAGE 5
Council stays with that position, owner -occupied vs. spec -build-
ing would be immaterial; an applicant with a deed showing they
are the owner of a lot complies with that requirement, regardless
of eventual purpose of the dwelling (owner -occupied or specula-
tive -built). Council agreed.
Council discussed the line concept at length attempting to estab-
lish parameters, and discussing whether or not an agent for a
property owner could apply for more than one permit.
MOTION: Councilmember Odell moved a single person in the line
or one agent holds that position in line for one appli-
cation only. The motion was seconded by Councilmember
Sheetz.
Councilmember Sheetz asked how they could eliminate the line, but
retain the first -come, first -served concept. Ms. Skousen stated
Council has only 2 options: a line or a lottery. She stated
there are a lot of problems with a line in front of City Hall;
there are some practical problems with a lottery, but not like
there would be with a line.
Council discussed the 2-year waiting list concept, with Ms.
Skousen advising they form their motion so they do not bind a fu-
ture Council to guarantee water to those on a waiting list.
Council opened the public hearing for further comments at the re-
quest of some members of the audience.
Ron Pierce stated he has been checking with the Building Depart-
ment every day, and they kept assuring him he could submit as
many building permits as he wants. Mr. Bugher and Mr. Farrel de-
nied this statement.
Roland Kessling favored a 2-year list.
Mr. Mayberry asked questions about the line.
One gentleman stated Council should place a limit on how many
contractors can build for owners.
Councilmember Sheetz closed the re -opened hearing, and returned
the matter for Council discussion.
There was lengthy discussion regarding who could stand in line
and how to determine if they were qualified to stand in line.
Mr. Napper stated other communities have faced the same type of
thing Morro Bay is facing, and they have gone with the lottery
system. He said there are a number of problems associated with a
line; Council would be establishing a tremendous amount of crite-
ria to determine the validity of a'person standing in line, and
who is going to monitor it daily? Mr. Napper suggested a lottery
system is the preferred course of action.
MINUTES - MORRO BAAITY COUNCIL •
SPECIAL MEETING - FEBRUARY 11, 1988
PAGE 6
Mr. Farrel suggested the Planning Department initially accept ap-
plications on the date established, determine if they are com-
plete applications and hold a lottery at a later date for those
applications which are complete. He also suggested those who do
not obtain a position this year, begin constituting the list for
next year.
After further discussion, Council determined the 15 applications
would be given priority, and the remaining 35 would be chosen
through a lottery. They also established the date to receive ap-
plications as February 23, 1988 from 8:00 a.m. to 5:00 p.m.
SUBSTITUTE Councilmember Sheetz moved the 15 applications left
MOTION: from last year be given priority, not subject to
the lottery. For people who submit new applications,
there will be a lottery (single family residences) if
there is more than 35 applications. The filing date
will open at 8:00 a.m. February 23, 1988 to submit ap-
plications to be in the lottery; it will close and ap-
plications will no longer be received as of 5:00 p.m.
February 23, 1988. A single-family lot owner may sub-
mit only one application to be in the lottery; unless,
less than 35 single lot owner applications are re-
ceived, whereby, an applicant may submit additional ap-
plications to a maximum of 3. The Planning Department
will review the timely -submitted applications for com-
pleteness before the drawing; when they have finished
reviewing and determining their completeness, the Plan-
ning Director will set a date to actually hold the lot-
tery. The quarterly awards will be made in the numeri-
cal order the applications are drawn from the lottery,
and all of the completed applications will be drawn and
given a number. Applications (SFD) not among the first
35 will then be placed on a waiting list in the event
one of the first 35 does not perform or obtain a build-
ing permit within the normal timeframe. Applicants
placed on the waiting list and not obtaining building
permits in 1988 will remain on the waiting list with
absolutely no guarantees that water will be available
in 1989 or their application will be given priority
status. The motion was seconded by Councilmember Odell
and carried, with Councilmember Donnelly and Mayor
Reddell abstaining. (3-0-2)
Mr. Napper asked Council how they wished to address multiple -fam-
ily housing application, if more than the seven available housing
units are being sought?
MOTION: Councilmember Odell moved multi -family permits be han-
dled in the same manner as the single-family system,
but by project basis rather than housing unit. The mo-
tion was seconded by Councilmember Sheetz and carried
MINUTES - MORRO BAYOITY COUNCIL •
SPECIAL MEETING - FEBRUARY 11, 1988
PAGE 7
with Councilmember Lemons voting no, and Councilmember
Donnelly and Mayor Reddell abstaining. (2-1-2)
ISSUE NO. 2 - FIRST -COME, FIRST -SERVED VS. LOTTERY
Resolved under Issue No. 1.
NO. 3 - ARE BUILDING
Mr. Napper asked if Council wished to include retrofit only ap-
plications in the water allocations program along with their ap-
proval of the "blend program". Council agreed if an individual
was unable to qualify as a single-family lot owner and wanted to
go totally retrofit, they would be allowed to do so subject to
the parameters of Measure F.
ISSUE NO. 4 - DETERMINATION OF 3:1 OR 2:1 RATIO FOR RETROFITTING
Mr. Napper noted Council had approved an earlier motion to retain
retrofit the same savings formula as used in 1987; however, Coun-
cil also approved the Annual Water Report which recommended the
ratio for retrofitting commercial establishments be reduced to
2:1 from the existing 3:1 ratio. He asked Council's intention on
this item. Council agreed they wanted the ratio to remain the
same as last year, 3:1.
MOTION: Councilmember Sheetz moved the retrofit ratio on com-
mercial remain at 3:1. The motion was seconded by
Councilmember Odell and carried with Councilmember
Donnelly and Mayor Reddell abstaining. (3-0-2)
ISSUE NO. 5 - SET DATE TO ACCEPT APPLICATIONS FEBRUARY 23, 1988
Mr. Napper explained the February 23, 1988 date will allow Coun-
cil to formally adopt resolutions approving the Annual Water Re-
port and amendments regarding water and sewer hook-up fees at the
February 22nd meeting before actually accepting applications. He
presented Council with a draft resolution which would adjust the
existing fees and establish water and sewer availability charges
for the "blend program" adopted by Council. He stated this reso-
lution will be presented to Council at their February 22nd meet-
ing for formal adoption.
MOTION: Councilmember Odell moved the meeting be adjourned.
The motion was seconded by Councilmember Lemons and
carried.
Recorded by:
ARDITH DAVIS
City Clerk
MORRO BAY
CITY COUNCIL
AGENDA
REGULAR MEETING - FEBRUARY 8, 1988
VETERANS MEMORIAL HALL - 6:00 P.M.
ROLL CALL
INVOCATION
PLEDGE OF ALLEGIANCE
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 by standing. When recognized by the Mayor, please
come forward to the podium and state your name and address for the record.
Comments should normally be limited to three minutes.
DECLARATION OF FUTURE AGENDA ITEMS
A. CONSENT CALENDAR
Unless an item is pulled for separate action by the City Council, the fol-
lowing actions are approved without discussion.
A-1 CITY COUNCIL MINUTES OF THE REGULAR MEETING OF JANUARY 25, 1988, AND
THE STUDY SESSION OF JANUARY 27, 1988
A-2 PROCLAMATION DECLARING CANCER AWARENESS WEEK, APRIL 18TH-24TH
A-3 RESOLUTION NO. 7-88 AUTHORIZING CITY APPLICATION FOR WILDLIFE CONSER-
VATION BOARD GRANT MONIES FOR FISH CLEANING RACK ($8,900)
A-4 RESOLUTION NO. 6-88 ACCEPTING COMPLETION OF OFF -SITE IMPROVEMENTS
(TRACT 1028,.CORNER SEQUOIA COURT AND IRONWOOD)
A-5 STREET ADVISORY COMMITTEE RECOMMENDATION REGARDING CITIZEN REQUEST FOR
TRAFFIC CONTROL DEVICES AT SHASTA AVENUE AND ACACIA AVENUE
A-6 RESOLUTION NO. 8-88 APPROVING CUP 41-86, AMENDED (ORVAL LEAGE, COMMER-
CIAL FISHPUMP OPERATIONS)
A-7 DECLARATION AND DISPOSAL OF SURPLUS PROPERTY - 1966 FIRE SQUAD TRUCK
B. PUBLIC HEARINGS, REPORTS & APPEARANCES
B-1 CONTINUED PUBLIC HEARING ON 1987 ANNUAL WATER REPORT REGARDING THE
PIPELINE REPLACEMENT AND WATER RETROFIT PROGRAMS, AND RECOMMENDATIONS
FOR THE 1988 WATER ALLOCATION PROGRAM AND OPERATING GUIDELINES
B-2 APPEAL HEARING FOR PROTEST OF 1987 WEED ABATEMENT CHARGES
1
0 0
B-3 ORDINANCE NO. 318 AMENDING AND EXTENDING INTERIM URGENCY ZONING ORDI-
NANCES NO. 301 AND 304 (AKA KEYOTO-NATALIE AND ADJOINING PROPERTIES)
B-4 RECREATION AND PARKS COMMISSION RECOMMENDATIONS REGARDING GROUP PICNIC
FACILITIES AND ALTERNATIVE PROJECTS FOR DEL MAR PARK (CDP 80-87R)
B-5 PUBLIC HEARING ON POTENTIAL PROJECTS FOR CITY APPLICATION TO 1988 COM-
MUNITY DEVELOPMENT BLOCK GRANT PROGRAM
B-6 CONTINUED HEARING ON PLANNING COMMISSION DETERMINATION 01-87 TO PRO-
HIBIT RECREATIONAL VEHICLE PARK IN R-4 ZONING (FISHER, APPELLANT)
C. UNFINISHED BUSINESS
C-1 RESOLUTION NO. 4-88 APPROVING CUP 34-84, AMENDED (HEMPENIUS)
D. NEW BUSINESS
D-1 STREET ADVISORY COMMITTEE RECOMMENDATIONS FOR PRIORITY STREETS FOR
MAINTENANCE OVERLAY PROGRAM
D-2 REPORT ON 1987 HARBOR FESTIVAL AND RECOMMENDATIONS FOR 1988 FESTIVAL
D-3 ANNUAL INFORMATION AND ACTIVITY REPORT ON MOBILEHOME RENT STABILIZA-
TION ORDINANCE
D-4 DISCUSSION OF POTENTIAL BOND ISSUE/ELECTION FOR SAN BERNARDO CREEK DAM
WATER PROJECT
D-5 CITY MISSION STATEMENT AND CITY COUNCIL POLICY STATEMENT REGARDING
COMMUNICATIONS WITH STAFF
E. CLOSED SESSION
E-1 GOVERNMENT CODE SECTION 54956.9(A), PENDING LITIGATION; LOPERNA VS.
CITY OF MORRO BAY, AND CABRILLO VS. CITY OF MORRO BAY
E-2 GOVERNMENT CODE SECTION 54956.9(C), CITY -INITIATED LITIGATION
F. ADJOURNMENT
COPIES OF STAFF REPORTS OR OTHER WRITTEN DOCUMENTATION
RELATING TO EACH ITEM OF BUSINESS REFERRED TO ON THIS
AGENDA ARE ON FILE IN THE OFFICE OF THE CITY CLERK AND
AVAILABLE FOR PUBLIC INSPECTION AND REPRODUCTION AT
COST.
2
MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING - FEBRUARY 8, 1988
VETERANS MEMORIAL HALL - 6:00 P.M.
Mayor Reddell called the meeting to order at 6:04 p.m.
ROLL CALL
PRESENT: Dale Reddell
Paul Donnelly
John Lemons
Jeff Odell
Rose Marie Sheetz
ABSENT: None
STAFF: Gary Napper
Judy Skousen
Dave Bugher
Louise Burt
Bill Farrel
Forrest Henderson
Nick Nichols
Steve Wolter
Ardith Davis
Forrest Henderson gave
Pledge of Allegiance.
death of Lila Keiser,
cilmember in Morro Bay
this evening's meeting
Keiser.
PUBLIC COMMENT
Mayor
Councilmember
Councilmember
Councilmember
Councilmember
City Administrator
City Attorney
Associate Planner
Finance Director
Community Develop. Dir.
Asst. to City Admin.
Public Works Dir.
Recreation & Parks Dir.
City Clerk
the invocation, and Mayor Reddell led the
Mayor Reddell commented on the recent
and noted she was the first lady Coun-
and had served for 2 terms. He stated
would be dedicated in memory of Lila
1. Bruce Risley, 540 Piney Way, noted comments he had made
at the previous meeting relative to conflict of interests by var-
ious Councilmembers, and the City Attorney's affirmation the
Councilmembers do not have to detail their conflict if they step
down from voting on a matter. He stated Councilmember Lemons and
Mayor Reddell are hiding behind a legal technicality and wants to
know what they are hiding. He said the public has a right to
know.
2. Peter Diffley, also referred to Councilmembers' and the
Mayor's conflict of interest and stated possibly four members of
the City Council will have to step down on the water issue this
evening because of conflicts. He stated he has documentation
Councilmember Lemons was employed by Mayor Reddell to do engi-
neering work for him. He also believes Councilmember Donnelly
worked for Mayor Reddell. He believed this a matter for the Fair
Political Practices Commission and perhaps the District Attorneys
Office under the Political Reform Act to investigate. He said it
MINUTES - MORRO BA*ITY COUNCIL •
REGULAR MEETING - FEBRUARY 8, 1988
PAGE 2
is possible that those who have a conflict have voted on matters
in the past other than water in which they should not have voted.
His opinion was those with such conflicts should not be in office
noting 2 of the Councilmembers are up for election in November,
and the other 2 could be recalled, which is a possibility.
3. Doris Murray, 236 Surf, was concerned about Councilmem-
bers being able to act on behalf of the public if they have
conflicts.
4. Ron Pierce stated the Council is doing a wonderful job
and a lot of people are behind them.
Mayor Reddell stated the problems Mr. Risley and Mr. Diffley have
should be cleared up this evening. He reminded them this is a
working Council, they make their living in Morro Bay and are not
retired, so conflicts do arise. As long as they step down, there
are no conflicts.
DECLARATION OF FUTURE AGENDA ITEMS
1. Councilmember Sheetz requested staff research the pos-
sibility of developing legislation to include wine cooler bottles
as requiring deposits which could be refunded upon return.
2. Councilmember Odell requested an item be scheduled for
discussion at a future date regarding a bond issue for purchase
of land for open space or habitat in the Morro Bay area; similar
in purpose to land conservancy.
3. Councilmember Odell would like Council to consider
funding to convert the sewage treatment plant to full secondary
treatment; also an RFP for outfall monitoring services.
4. Councilmember Odell requested community -wide discus-
sions and workshops concerning zoning and the LUP; he believed
this would be beneficial if it is in progress by the time the
moratorium on motel building ends.
A. CONSENT CALENDAR
A-1 CITY COUNCIL MINUTES OF THE REGULAR MEETING OF JANUARY 25,
FAM9104:l01IR916"
Mr. Napper recommended Council approve the minutes as submitted.
A-2 PROCLAMATION DECLARING CANCER _AWARENESS WEEK, APRIL 18TH-
24TH
Mr. Napper recommended Council authorize the Mayor to sign the
Proclamation.
MINUTES - MORRO BAITY COUNCIL •
REGULAR MEETING - FEBRUARY 8, 1988
PAGE 3
A-3
Mr. Napper recommended Council adopt Resolution No. 7-88 autho-
rizing the grant application for a fish -cleaning station.
A-4
Mr. Napper recommended Council adopt Resolution No. 6-88.
A-5
Mr. Napper recommended Council approve the Street Advisory Com-
mittee's recommendation as submitted.
A-6 RESOLUTION NO. 8-88 APPROVING CUP 41-86, AMENDED
Mr. Napper recommended Council adopt Resolution No. 8-88.
A-7 DECLARATION AND DISPOSAL OF SURPLUS PROPERTY -
Mr. Napper recommended Council declare the 1966 fire squad truck
as property surplus to the City's needs, and authorize the dis-
posal of the vehicle to Jerrel Barto for the sum of $5,025.00.
Mayor Reddell requested Item A-4 be pulled for separate discus-
sion; he has a conflict of interest in this matter in that he is
involved in the subdivision, so will not be voting on the item.
MOTION: Councilmember Odell moved for the approval of the Con-
sent Calendar with the exception of Item A-4. The mo-
tion was seconded by Councilmember Lemons and unani-
mously carried. (5-0)
A-4 RESOLUTION NO. 6-88 ACCEPTING COMPLETION OF OFF -SITE IM-
PROVEMENTS (TRACT 1028, CORNER SEQUOIA COURT AND IRONWOOD
Mayor Reddell stepped down, and Mayor Pro Tem Donnelly assumed
the Chair.
MOTION: Councilmember Odell moved for the approval of Item A-4.
The motion was seconded by Councilmember Sheetz.
Councilmember Lemons asked if it was true Council could not with-
hold approval of this item unless it finds the conditions were
not complied with in some manner. Ms. Skousen agreed stating
Council really has no discretion, unless one of the conditions
MINUTES - MORRO BA)&TY COUNCIL •
REGULAR MEETING - FEBRUARY 8, 1988
PAGE 4
has not been complied with. Mr. Nichols advised all conditions
were completed.
Councilmember Lemons stated he received exactly $250 from Mayor
Reddell for engineering services last year on a different pro-
ject; however, he will step down from voting on this matter to
avoid any problems.
The motion was carried, with Councilmember Lemons and
Mayor Reddell abstaining. (3-0-2)
Mayor Pro Tem Donnelly turned the meeting back to Mayor Reddell
B. PUBLIC HEARINGS, REPORTS & APPEARANCES
B-1 CONTINUED PUBLIC HEARING ON 1987 ANNUAL WATER REPORT REGARD-
ING THE PIPELINE REPLACEMENT AND WATER RETROFIT PROGRAMS.
Judy Skousen stated, at this point, anyone with a potential con-
flict of interest on this item should so state and step down.
Councilmembers Donnelly, Odell, Lemons and Mayor Reddell stated
they had a potential conflict and left the Council table.
Ms. Skousen stated since Councilmember Sheetz was the only member
left without a conflict, it is necessary to conduct the public's
business that a quorum be reinstated. Fair Political Practices
regulations state those members shall be chosen at random, return
to their seats and state their conflict.
Mr. Napper stated the procedure chosen is the Councilmembers' and
the Mayor's name have been placed in a bowl; City Clerk Ardith
Davis will draw 2 names and those members may return to their
seats. Councilmembers Odell and Lemons names were picked by the
City Clerk, and they returned to their seats.
Councilmember Odell stated his conflict is he and his wife have
applied for a low-income housing rehabilitation loan from Peo-
ples' Self -Help Housing, Inc. PSHH is requesting special water
allocations from Council for their low-income housing project in
North Morro Bay. If PSHH was not part of the water report, he
would have no conflict.
Councilmember Lemons stated he is not certain he has a conflict;
he is a licensed structural engineer and from time to time pre-
pares engineering reports for people in town. The Fair Political
Practices Commission states if you receive $250 or more in the
past 12 months from any single source, there is a conflict. In
his particular case if he had been paid by the owner of the house
instead of a contractor, he would not have a conflict. The Fair
Political Practices Commission also allows officials to erase a
conflict by returning campaign contributions; they were queried
as to whether Councilmember Lemons could erase this conflict by
MINUTES - MORRO BA* TY COUNCIL •
REGULAR MEETING - FEBRUARY 8, 1988
PAGE 5
returning the $250, but they were unable to provide a definite
answer. Therefore, he had stepped down due to a possible
conflict.
Mr. Napper stated the gavel had passed to Councilmember Sheetz
when the other members stepped down, so believed it appropriate
for her to chair the meeting since both the Mayor and Mayor Pro
Tem were unable to do so. Councilmember Sheetz assumed chairman-
ship of the meeting.
Mr. Napper and Mr. Nichols reviewed the recommendation of the
Water Advisory Board to institute mandatory retrofit for all
properties upon sale with the City to fund the costs to retrofit.
By this plan, the City would be the recipient of the water -sav-
ings and could allocate the water through the water program. Mr.
Napper recommended Council target implementation of this program
for 1989; he explained the ordinance process to accomplish the
program could hold up the current allocation program for some
time.
Mr. Napper explained the "blended" program proposed by staff
which allows one-half of the necessary project equivalencies be
earned through offsite retrofit, and the City allow the remaining
one-half be purchased from accrued pipeline replacement savings.
Councilmember Sheetz asked if Mr. Fisher, a member of the Water
Advisory Board and currently before Council for a recreational
vehicle project land -use determination, has a conflict of inter-
est in voting on water issues. Ms. Skousen stated she did not
know as she has not discussed the matter with him. She also
stated it is the responsibility of the individual to bring possi-
ble conflicts to the attention of the City if they have
questions.
Councilmember Sheetz opened the matter for public hearing.
Bruce Risley reviewed the history of the retrofit program which
was instituted when he was a member of the City Council. He be-
lieved there should be a financial impact study of the program
upon City revenues, and stated the reports are still inconclusive
as to water savings of this program. He urged the item be remit-
ted to staff for further study.
Ray Kaltenbach, 473 Sicily, stated he believed retrofit was for
single family homes when he voted on this issue. He stated after
3 years experience in the program, no one has come up with accu-
rate figures on savings.
Peter Diffley cited some figures and stated retrofit does not re-
sult in reduction to water use. He believed the data available
to Council regarding the program is inaccurate and misleading,
and a Land Use Plan amendment must be prepared for the present
program.
MINUTES - MORRO BAATY COUNCIL
REGULAR MEETING - FEBRUARY 8, 1988
PAGE 6
Dwight Adams, 350 Tulare, stated a lot of people have made a siz-
able investment in this community in order to build homes; he
said the retrofit program needs better advertising.
Randy Ruff, 485 Shasta, reviewed City water consumption figures.
He suggested planning ahead and building into the Annual Water
Report systems to obtain correct information on which Council
could make decisions.
Ed Ewing commented on the right of people to build their single
family residences, and Measure F was wool pulled over the peo-
ples' eyes.
Barbara Playan, 410 Jamaica, suggested Council establish a lot-
tery so spec builders are not able to monopolize the water.
Nelson Sullivan stated the concept of mandatory retrofit is
fraudulent and illegal; it should not be used as a basis for
building, however, could be used for water savings only. He
stated he and Randy Ruff had conducted an investigation into the
City's pipeline replacement and water management program and had
been authorized by the Civic Action League (CAL) to make a formal
protest and petition the City to reexamine the program. This pe-
tition has not been acknowledged to date. He stated the docu-
mented examination and criticism of the water management plan has
been approved by a State certified water expert, and by a retired
public works director. This type of study has not been done by
the City in the past because of costs; it has now been done at no
cost to the City. He encouraged the Council to call for an exam-
ination of CAL's arguments.
Norma Wolff, Bolton Drive, stated she will not retrofit because
she doesn't believe in it. She does not believe she must con-
serve water when the City continues to allow motels to be built.
Mike Zimmer, Cayucos, encouraged Council to examine why the water
equivalency program was originally initiated. He believed it was
to allow the single family home -owner an opportunity to build
their homes.
Ken Dully, 473 Rennel, spoke ,on his difficulties in trying to
build his home. He said increases in water consumption can occur
for many reasons.
Ron Pierce, building contractor, stated retrofitting does save
water; he noted the number of people who make a living from the
construction industry.
Imogene Haidet, 2861 Juniper, stated it took her 4 years to be
able to build a home, and knows how difficult it is for the
owner -builder.
Ed McCracken asked how many houses are still available for
retrofitting?
MINUTES - MORRO BAITY COUNCIL
REGULAR MEETING - FEBRUARY 8, 1988
PAGE 7
Steve Paige, Water Advisory Board member, spoke in favor of mak-
ing the retrofit program user-friendly. He stated the program
currently discriminates against people with a limited means to
canvass for houses to retrofit. He described some improvements
he would make to the program.
Howard Gaines objected to a mandatory retrofit program on permits
over $1,000, believing it to be unconstitutional with no ratio-
nale for the requirement.
MOTION: Councilmember Lemons moved the public hearing be
closed. The motion was seconded by Councilmember Odell
and carried with Councilmember Donnelly and Mayor
Reddell abstaining. (3-0-2)
Councilmember Sheetz asked Mr. Bugher, Associate Planner, how he
arrived at his retrofit figures; Mr. Bugher reviewed the lengthy
process developed to provide an analysis of the program noting he
took a sample as there were too many accounts to try to compute
in a limited amount of time.
Councilmember Sheetz asked how many homes were left in Morro Bay
to retrofit; Mr. Bugher estimated 2900.
There was discussion regarding population figures in relation to
Measure F requirements.
Councilmember Lemons asked how many water equivalencies have been
issued to date since the program was implemented; Mr. Bugher said
approximately 140 in 3 years time.
Councilmembers discussed the mandatory retrofit proposal by the
Water Advisory Board, and decided they were in favor of it at
time of sale only and the City not be a party to funding.
MOTION: Councilmember Lemons moved an ordinance be drafted for
mandatory retrofit to apply only at the time of sale,
and the City not participate in the funding. The mo-
tion was seconded by Councilmember Odell and carried
with Councilmember Donnelly and Mayor Reddell abstain-
ing. (3-0-2)
Councilmembers then discussed the ratio of retrofits required for
each residence; staff recommends 22, the Planning Commission rec-
ommendation 15, and the Water Advisory Board no change (12).
MOTION: Councilmember Odell moved Council establish the offsite
retrofit ratio formula in 1988 to be the same as the
1987 formula. The motion was seconded by Councilmember
Lemons and carried, with Councilmember Donnelly and
Mayor Reddell abstaining. (3-0-2)
MINUTES - MORRO BAITY COUNCIL •
REGULAR MEETING - FEBRUARY 8, 1988
PAGE 8
The 15 applications left -over from last year were discussed with
general agreement they should be at the top of this year's list.
MOTION: Councilmember Sheetz moved the waiting list of 15 sin-
gle-family dwelling units be accommodated first this
year and they be processed in accordance with the es-
tablished rules. The motion was seconded by Coun-
cilmember Odell.
There was discussion regarding whether any of the 15 on the wait-
ing list have more than one application. Mr. Bugher stated yes,
however, under the pipeline replacement program, water would be
issued only to the single family owner -occupied unit. A person
cannot live in two units at two separate addresses, so only one
water equivalency would be assigned per individual.
Councilmember Lemons believed there should be a requirement that
in order to file the application, the applicant must have the
deed to the property; or there has to be a priority for those
people who are single family or one- or two -lot builders who are
owners.
Council decided to handle the Peoples' Self -Help Housing alloca-
tion before the 15 applications.
Councilmember Sheetz withdrew her motion and Coun-
cilmember Odell his second.
With regard to PSHH, Mr. Farrel explained Council is being asked
to allocate all of the housing units this year for the purposes
of Measure F, but allocate them over a 2-year period. The pro-
ject will not be completed or occupied until 1989.
MOTION: Councilmember Lemons moved Council allocate to Peoples'
Self Help Housing, Inc. 20 housing units from 1988, 20
housing units from 1989, and 15 pipeline water equiva-
lencies to serve that housing project from pipeline wa-
ter reserve. The motion was seconded by Councilmember
Odell and carried, with Councilmember Donnelly and
Mayor Reddell abstaining. (3-0-2)
Mr. Napper gave an example of the proposed "blended" program sug-
gested by staff for awarding water allocations: if an individual
needs one water equivalency for a single family dwelling, he
would have to obtain 1/2 of that water equivalency form the
retrofit program. When he does that, the City would allocate
from the pipeline replacement reserve built up the other matching
half of water equivalency in order to give them a project for
that year.
It was noted if the 15 applications from the previous year are
given priority, the blended program would apply to them as well.
MINUTES - MORRO BA*ITY COUNCIL •
REGULAR MEETING - FEBRUARY 8, 1988
PAGE 9
Dave Bugher noted what would happen with the speculative -built
house is every application that is owner -occupied would get first
chance at water; those that are spec -built, get second chance.
There is a potential for the 50 slots available to be used up by
owner -occupied applicants; if so spec -built homes would not get
equivalencies this year. Also, if all slots are filled under the
"blend" program, there may not be any full 100% retrofit applica-
tion awards left.
There was discussion regarding water and sewer availability fees
and a possible ordinance amendment. Mr. Bugher noted if an indi-
vidual is getting 1/2 a pipeline replacement award they would
probably have to pay $2500 water and sewer fee (1/2 of a water
fee and 1/2 of a sewer fee); there would be no 25% charge for a
sewer hookup as under the retrofit program. An ordinance amend-
ment could be presented at a later date and refunds of hook-up
fees made if warranted.
Councilmember Lemons believed a blended program allows opportu-
nity for those to build who would find it a hardship to retrofit
12 houses.
Ms. Skousen noted the requirement under the pipelines replacement
program is for owner -occupied to receive priority; if there are
units left over after owner -occupied applications have been sat-
isfied, then spec -built housing can also get pipeline water.
MOTION: Councilmember Lemons moved Council allocate water with
the blend plan proposed this evening; priority be given
to single -lot owner; if that does not fill up the sin-
gle family dwelling units that will be allocated under
Measure F then a maximum of 3 spec applications be al-
lowed per applicant; if that does not fill up the 50,
then it would be opened up for further opportunity.
Mr. Farrel stated the pipeline procedure currently describes this
procedure. The blended procedure would allow staff to work with
one list rather than two, which has caused a number of difficul-
ties in the past.
Mr. Napper stated under the motion, Council is essentially going
with the blended plan and utilizing the pipeline water allocation
program as it is currently constituted for prioritization of the
applications.
Councilmember Lemons amended his motion to include
Council authorizes up to 77 housing units for 1988; 50
single family dwelling slots, 27 multi -family (20 of
the multi -family were previously allocated to Peoples'
Self -Help Housing). The motion was seconded by Coun-
cilmember Odell and carried with Councilmember Donnelly
and Mayor Reddell abstaining. (3-0-2)
MINUTES - MORRO BA* TY COUNCIL
REGULAR MEETING - FEBRUARY 8, 1988
PAGE 10
MOTION: Councilmember Lemons moved the left -over applications
from last year be assigned a position at the head of
this year's list. The motion was seconded by Coun-
cilmember Odell and carried, with Councilmember
Donnelly and Mayor Reddell abstaining. (3-0-2)
Mr. Farrel reviewed Exhibit C, Addendum to Operating Procedures.
He recommended changing the date to accept applications to Febru-
ary 22 to given the Planning Department time to prepare informa-
tion as a result of Council's actions this evening to distribute
to those preparing applications.
MOTION: Councilmember Odell moved Council change the date to
begin receiving applications to February 22, 1988. The
motion was seconded by Councilmember Lemons and carried
with Councilmember Donnelly and Mayor Reddell abstain-
ing. (3-0-2)
Council recessed from 8:47 p.m. to 9:04 p.m.
Mr. Napper noted the ordinance requires Council to formally adopt
the Annual Water Report and Operating Procedures including ac-
cepting a 2-year waiting list. Mr. Farrel explained the process
to accept enough applications to establish a waiting list for
1989.
Councilmember Lemons was in favor of accepting a number more than
the 50 applications for 1988 in case some of the first 50 fall
through; however, he was not in favor of adopting a 2-year list.
MOTION: Councilmember Lemons moved the Planning Department col-
lect sufficient applications during the year to allot
up to the maximum of the housing units available; and,
by accepting those additional applications it does not
compel or mandate the City to give those individual ap-
plications a priority place in the line for 1989; and
adopt the Annual water Report as amended by Council's
motions this evening. The motion was seconded by Coun-
cilmember Odell and carried, with Councilmember
Donnelly and Mayor Reddell abstaining. (3-0-2)
Mayor Reddell resumed chairing of the meeting.
B-2 APPEAL HEARING FOR PROTEST OF 1987 WEED ABATEMENT CHARGES
Nick Muick, Public Works Engineer, reviewed last year's abatement
program for Council. He stated in 1987 150 parcels were abated
at an average cost of $184.24 per lot; this up from an average of
$81.36 in 1986. He noted the increase is due to new Council pol-
icy that the weeds have to be cut and removed from the property
for disposal.
Seven written appeals were received as a result of the program,
and the staff report provides recommendations on each.
MINUTES - MORRO BA4ITY COUNCIL
REGULAR MEETING - FEBRUARY 8, 1988
PAGE 11
Mayor Reddell opened the hearing to the public.
Howard Gaines, representing his son who actually owns the prop-
erty, reviewed in detail the circumstances which led to his ap-
peal. He requested Councilmember Lemons and Mayor Reddell remove
themselves from consideration of this matter in that they have
animosity towards him because of past activities.
He stated the nature of the growth on the subject property pro-
hibits it from being transported by wind or rain anywhere, and
therefore it was not necessary to remove after cutting. He ac-
cused the City of selective enforcement, and detailed his efforts
to have the property cleared. It was noted Mr. Gaines had paid a
contractor to cut the lot, but it had not been cleared.
Council discussed the appeal at length asking various questions
of Mr. Gaines and staff. Councilmember Lemons clarified the
rules, and the City Attorney concurred that removal of the weeds
is required, and to the degree that any residual left will not
blow away or cause a fire hazard.
MOTION: Councilmember Donnelly moved the appeal be denied. The
motion was seconded by Councilmember Odell and unani-
mously carried by roll call vote. (5-0)
Mayor Reddell asked if there were any further public comments re-
garding the appeals under consideration, or any new appeals;
there were none.
MOTION: Councilmember Odell moved for approval of the staff
recommendation on the remainder of the appeals. The
motion was seconded by Councilmember Donnelly and unan-
imously carried. (5-0)
Mr. Napper stated there are 3 new appeals received recently, and
those will be brought back for consideration at the March 14th
meeting after staff evaluation.
B-3
Judy Skousen reviewed the proposed ordinance to extend the mora-
torium ordinance to February 11, 1989, noting the City is in the
process of studies to evaluate the appropriate zoning for the
subject areas. She anticipates those studies will be completed
and Council will have determined what, if any, changes should be r.x;
made to the Land Use Plan, Local Coastal Plan, General Plan and
Zoning Ordinances by early summer.
The recommended ordinance allows certain temporary uses during
this time to accommodate some of the property owners in that area
who have asked to process applications for different uses. One
MINUTES - MORRO BAITY COUNCIL
REGULAR MEETING - FEBRUARY 81 1988
PAGE 12
0
of the uses is a temporary/special use under special condition;
the other is a Special Exception Variance which would allow the
property owner to process concurrently an application for a spe-
cific development project together with applications for amend-
ments to various City plans and ordinances. The property owner
does this at his own risk.
Ms. Skousen noted a report had been received this evening from
the property owner; she stated the report contains settlement
discussion which is reserved for Closed Session. She said adop-
tion of the ordinance this evening does not preclude settlement
negotiations, however, such discussions are inappropriate in open
session at this time.
Alain Sarfatti, President of Morro Bay Natalie, Inc., stated he
was encouraged by the City's recent action to process their ap-
plication, but was confused regarding the necessity of extending
the moratorium time. He encouraged the City to treat him fairly
in his request to build single family homes in this area in ac-
cord with current zoning.
Joe Petrillo, representing Keyoto-Natalie, stated the report
Council received this evening contains legal arguments on why not
to adopt the ordinance. He stated they had only received the
proposed ordinance last Thursday, so were unable to present their
analysis before this evening. They believe the moratorium is di-
rected at one property, and asked what is it that so affects the
public welfare of Morro Bay that cannot adequately be protected
by existing process and ordinances of the City. He does not be-
lieve the action suggestion this evening is justified, and reit-
erated the City is adequately protected by the development review
process.
Gerald Mullen, 985 Pacific, commented on private citizens' rights
to build, but encouraged Council to keep the moratorium.
Mayor Reddell closed the hearing to the public.
Councilmember Lemons asked about the extension period, and Ms.
Skousen explained this is the last extension opportunity allowed
by law. If Council chooses a date less than the maximum, they
will not be allowed at a later time to extend it further. How-
ever, if the studies and Council actions are completed before the
February 11, 1989 date, Council can certainly rescind the
ordinance.
MOTION: Councilmember Odell moved Ordinance No. 318 be read by
title and number only. The motion was seconded by
Councilmember Donnelly and unanimously carried. (5-0)
Mr. Napper read Ordinance No. 318 by title and number only.
MOTION: Councilmember Odell moved Ordinance No. 318 be adopted
as an urgency measure. The motion was seconded by
MINUTES - MORRO
REGULAR MEETING
PAGE 13
BAY10ITY COUNCIL •
- FEBRUARY 81 1988
Councilmember Donnelly and unanimously carried by roll
call vote. (5-0)
B-4 RECREATION AND PARKS --COMMISSION RECOMMENDATIONS --REGARDING
Council continued this item to the February 22nd meeting.
B-5 PUBLIC HEARING ON POTENTIAL PROJECTS FOR -CITY -APPLICATION TO
COMMUNITY DEVELOPMENT -BLOCK -GRANT -PROGRAM
Councilmember Odell stepped down from discussion on this matter
because of a potential conflict of interest.
Mr. Napper detailed CDBG grants received by the City in recent
years, and plans to apply for funds this year. The hearing this
evening is to accept ideas from the public for the application.
He noted staff and Peoples' Self Help Housing believe applying
for a second -phase of housing rehabilitation loans represents a
program that has a good opportunity of being funded.
Mayor Reddell opened the hearing to the public.
Scott Smith of Peoples' Self Help Housing, Inc., encouraged Coun-
cil to consider an extension of the housing rehabilitation
program.
There were no other suggestions from the public.
Councilmembers stated they were very impressed with projects exe-
cuted by PSHH under previous funding for housing rehabilitation.
MOTION: Councilmember Sheetz moved staff apply for grant funds
for housing rehabilitation in the maximum amount of
$600,000. The motion was seconded by Councilmember
Donnelly and carried, with Councilmember Odell
abstaining. (4-0-1)
Councilmember Odell resumed his seat.
IM
Mr. Bugher reviewed this item noting Council had asked for clari-
fication on some issues at their last meeting. One of the ques-
tions was the intent behind the current R-4 zoning and its omis-
sion of the RV/travel trailer park. Research shows no specific
discussion on this item at the time the ordinance was amended in
1983. He stated there were a number of zoning changes being made
at the same time, and the RV/travel trailer park was definitely
left out of the permitted uses for this zone.
MINUTES - MORRO BAITY COUNCIL •
REGULAR MEETING - FEBRUARY 8, 1988
PAGE 14
Mr. Bugher also reviewed several maps showing various zones where
RV parks may be permitted, and land sites available for such
uses.
Mayor Reddell opened the hearing to the public.
Dick Fisher, 540 Atascadero Road and applicant, supported his re-
quest for an RV park at this location and suggested Council find
the zoning ordinance does allow RV parks in an R-4 zone, noting
its character is similar to a mobilehome park which is permitted
in an R-4 zone. He noted plans to provide a buffer between the
R-A residential property adjacent to his parcel and the RV por-
tion with a row of mobilehomes.
There was discussion regarding the buffer offered by Mr. Fisher
with Councilmember Donnelly asking if he would have 50/50 RV and
mobilehomes; Mr. Fisher stated it was an option.
Mr. Napper was called away on a personal emergency, and Council
recessed from 10:55 p.m . to 11:02 p.m.
Councilmember Sheetz suggested Mr. Fisher get together with the
property owners in the neighborhood to see if they were amenable
to his new suggestion.
Alice Kolb, property owner near the proposed site, was concerned
an RV park at this location would create more traffic and conges-
tion. She stated the appropriate place for this type of use is
in a Visitor Serving -Commercial zone. The shortage of RV parks
in Morro Bay does not justify putting them where they don't
belong.
Robert Church, 702 Ponderosa, spoke against an RV use at this
location.
Shirley Fisher, applicant, stated they were trying to provide af-
fordable tourist accommodations.
Louise Baxley and Mr. Baxley, 661 Ponderosa, spoke against the RV
park.
Mayor Reddell closed the public hearing.
Councilmember discussed this matter and were in favor of the ap-
plicant meeting with nearby property owners to see if they could
agree on a project, and then return to the Planning Commission.
It was noted Mr. Fisher could always apply for a change in zoning
to accommodate an RV park.
MOTION: Councilmember Sheetz moved Council uphold the Planning
Commission decision and suggest the applicant get to-
gether with neighbors in the area and return to the
Planning Commission with an acceptable land use plan.
MINUTES - MORRO BAYOITY COUNCIL •
REGULAR MEETING - FEBRUARY 8, 1988
PAGE 15
The motion was seconded by Councilmember Donnelly and
unanimously carried by roll call vote. (5-0)
C. UNFINISHED BUSINESS
C-1 RESOLUTION NO. 4-88 APPROVING CUP 34-84, AMENDED (HEMPENIUS)
Mayor Reddell stepped down from consideration on this matter be-
cause of a possible conflict of interest. Mayor Pro Tem Donnelly
assumed the Chair.
Mr. Farrel stated Council had questioned at their last meeting if
the appeal on this application had been filed in a timely manner,
and staff has determined that it was.
MOTION: Councilmember Lemons moved for the approval of Resolu-
tion No. 4-88. The motion was seconded by Councilmem-
ber Odell and carried with Mayor Reddell abstaining.
(4-0-1)
Mayor Reddell resumed his seat.
D. NEW BUSINESS
D-1 STREET ADVISORY COMMITTEE RECOMMENDATIONS_ FOR PRIORITY
STREETS FOR MAINTENANCE OVERLAY PROGRAM
This item was continued to the February 22nd meeting.
D-2 REPORT ON 1987 HARBOR FESTIVAL AND RECOMMENDATIONS FOR 1988
FESTIVAL
This item was continued to the February 22nd meeting.
D-3 ANNUAL INFORMATION AND ACTIVITY REPORT ON MOBILEHOME RENT
STABILIZATION ORDINANCE ^^�
Mr. Henderson reviewed his annual report on the mobilehome rent
stabilization ordinance and the activities which had occurred
duriny the year. He noted no formal appeals were filed during
1987 and the Rent Review Board was not required to settle any is-
sues. He also discussed the Jennings lawsuit which resulted in
changing the effective date for establishment of space rent
rates; the ordinance specified January 1, 1986, and the Court
ruled in favor of Mr. Jennings, and the new roll -back date was
established at August 25, 1986.
MOTION: Councilmember Sheetz moved for approval of the report
as submitted. The motion was seconded by Councilmember
Lemons and unanimously carried. (5-0)
MINUTES - MORRO BA)WTY COUNCIL •
REGULAR MEETING - FEBRUARY 8, 1988
PAGE 16
D-4 DISCUSSION OF POTENTIAL BOND ISSUE/ELECTION FOR SAN BERNARDO
CREEK DAM WATER PROJECT
Mr. Lemons stated at the last Council meeting, Council was casti-
gated by a former councilman because he didn't believe the Coun-
cil was sensitive to the needs of the community for water or tak-
ing the necessary actions to acquire supplemental water for the
City and willing to allow the San Bernardo Creek Project die.
MOTION: Councilmember Lemons moved staff be directed to prepare
the necessary documents and information for Council use
so they can order on the November ballot a bond issue
for the citizens of Morro Bay to get their approval to
finance the cost of construction of San Bernardo Creek
Dam if and when the State, and others who need to, ap-
prove the project. The motion was seconded by Coun-
cilmember Donnelly.
Councilmember Lemons believes this is necessary at this time, be-
cause the City could spend a considerable amount of money on
plans and studies prior to finding out if the citizens are going
to fund it.
Councilmember Odell expressed hesitation on this item because
people are not fond of voting in favor of bond issues. The out-
come will depend on the City's salesmanship, and perhaps other
things should be on the ballot as well. He was concerned about
presenting the item so it will be given a fair hearing.
Councilmember Lemons stated based on comments made by Mr. Risley
at the last meeting, he would expect Mr. Risley's organization,
Council, Water Advisory Board, and City staff to support this
measure. He said if the project doesn't get approval with that
kind of support, he didn't see how any project could pass.
There was further discussion on this item with Councilmember
Odell continuing to express reservations about placing it on the
ballot. Councilmember Lemons stated the motion is only to direct
staff prepare the report and language so it can be moved forward.
Councilmember Sheetz asked if it would come back as a public
hearing, and Councilmember Lemons said yes.
The motion was unanimously carried. (5-0)
D-5 CITY MISSION STATEMENT AND _CITY COUNCIL POLICY STATEMENT
REGARDING COMMUNICATIONS WITH STAFF
This item was continued to the February 22nd meeting.
E. CLOSED SESSION
MOTION: Councilmember Sheetz moved all items for Closed Session
be carried forward to the next meeting. The motion was
MINUTES - MORRO BA)W TY COUNCIL •
REGULAR MEETING - FEBRUARY 8, 1988
PAGE 17
seconded by Councilmember Donnelly and unanimously
carried. (5-0)
F. ADJOURNMENT
MOTION: Councilmember Donnelly moved the meeting be adjourned.
The motion was seconded by Councilmember Odell and
unanimously carried. (5-0)
The meeting adjourned at 11:45 p.m.
Recorded by:
�iU%L�GC-Gk.
ARDITH DAVIS
City Clerk
MORRO BAY
CITY COUNCIL
AGENDA
CITY COUNCIL STUDY SESSION
4 February 1988 (Thursday)
Program Room, Morro Bay Library
7 PM
PUBLIC COMMENT PERIOD
A. PUBLIC REPORTS & COMMENTS
A-1 Continued Study and Discussion of the Draft Circulation
Element Revision to the General Plan
COPIES OF STAFF REPORTS OR OTHER WRITTEN
DOCUMENTATION RELATING TO EACH ITEM OF
BUSINESS REFERRED TO ON THIS AGENDA ARE
ON FILE IN THE OFFICE OF THE CITY CLERK
AND AVAILABLE FOR PUBLIC INSPECTION AND
REPRODUCTION AT COST.
40
MINUTES - MORRO
STUDY SESSION -
LIBRARY PROGRAM
BAY CITY COUNCIL
FEBRUARY 4, 1988
ROOM - 7:00 P.M.
Mayor Reddell called the meeting to order at 7:00 p.m.
ROLL CALL
PRESENT: Dale Reddell
Paul Donnelly
Jeff Odell
Rose Marie Sheetz
ABSENT: John Lemons
STAFF: Gary Napper
Bill Farrel
Mayor
Councilmember
Councilmember
Councilmember
Councilmember
City Administrator
Community Develop. Dir.
Mr. Napper noted Councilmember Lemons had called to say he would
not be at the meeting due to illness.
PUBLIC COMMENT
None
A. PUBLIC REPORTS & COMMENTS
A-1
)f the Draft Circulation
Mr. Napper stated the purpose of tonight's meeting is to answer
questions Council previously asked as they reviewed the Circula-
tion Element throughout various public hearings. Mr. Napper
noted this is a study session wherein staff hoped to receive
guidance from Council on various issues still unresolved. Those
items will be included in a final Circulation Element which will
be presented to Council at a regular meeting for formal adoption.
Mr. Farrel reviewed the contents of his staff report including
the minutes of all previous hearings regarding this Element,
questions Council asked about various issues, and direction given
for deleting or including specific material.
With regard to the information on City bicycle paths, Councilmem-
ber Odell commented that at a County Area Council unmet needs
hearing, Mr. Williams, representing local cyclists, informed the
Area Council of a poll conducted of the area cyclists which indi-
cated the widening of South Bay Blvd. in Morro Bay is the number
one problem area of the County for bicycles.
MINUTES - MORRO BAAITY COUNCIL 46
STUDY SESSION - FEBRUARY 4, 1988
PAGE 2
Councilmember Odell also stated the Area Council has the option
to set aside 28 of the County Transportation Development Act
funds, which could amount to $80,000 a year, as a fund for bike-
way development. However, the Area Council decided to leave that
decision up to the discretion of each individual City.
Jim Maul stated a separate bicycle path does not work; a path
that is a widening of the shoulder of the road works fine. He
also believed the police should ticket cyclists when they do not
follow the rules of the road.
Mr. Napper reviewed the questions Council had previously asked
regarding the 1974 advisory vote on whether to connect the
southerly and northerly portions of Embarcadero Road, which the
voters had turned down. He also stated it was the City Attor-
ney's opinion relocation of Coleman Drive would result in aban-
donment of the current Coleman Drive roadway to the Den -bulk in-
terests. This is due to a restriction in a 1962 deed.
Mike Fitzsimmons stated one of the reasons the matter failed was
the downtown merchants were afraid a connection in that area
would route traffic away from the downtown area. Councilmember
Odell suggested routing the connection through the northerly
boundaries of P.G.&E. to connect in the area Keiser Park. He be-
lieved that might preserve more of the dunes area. He did not
believe a ballot measure to connect the Embarcadero at this loca-
tion would ever pass; however, he was concerned about providing
an alternate route through Morro Bay in case something ever did
happened to the Highway 1 overpass at Main Street.
Mayor Reddell suggested having the Blue Ribbon Committee, which
is currently reviewing and going to make recommendations on the
moratorium area north of the High School, also consider the Em-
barcadero extension issue and the Coleman Drive realignment.
Council agreed.
Mr. Farrel reviewed responses to Council questions on parking.
Councilmember Odell asked if the suggestion could be included to
only allow parking on one section of the Embarcadero. He dis-
cussed closing off the south -bound lanes north of Beach Street
near P.G.&E. and making that area parking. He stated the north
end has parking places that are frequently empty, and that area
could be reserved for repairing fish nets.
Mayor Reddell suggested making Harbor Street one-way from Napa to
Main St. He believed this would funnel traffic down Morro Bay
Blvd. for more exposure to retail businesses.
Mr. Napper suggested Council retain the parking standards as con-
tained in the draft Element, but include additional language that
states it shall be the intent of the City to maximize public
parking availability within the public property that we have.
MINUTES - MORRO BA)SITY COUNCIL
STUDY SESSION - FEBRUARY 41 1988
PAGE 3
Councilmember Donnelly stated when you establish a one-way street
or install stop signs at new locations, you change the traffic
patterns of residents. He thought the Council should look at the
whole picture and how they want traffic patterns to circulate in
Morro Bay.
Jim Maul commented on the narrow sidewalks on the Embarcadero; he
thought making Embarcadero one-way would allow the City to widen
the sidewalks for pedestrian traffic. There was considerable
discussion regarding eliminating traffic on the Embarcadero and
providing parking above the bluff. It was noted a number of com-
munities have instituted this type of circulation in their
tourist areas with success. Councilmember Sheetz commented if
parking was required up -town, these merchants would see an advan-
tage in possible increase to their business.
Mr. Farrel stated Council instructed staff to begin work on a
Plan of Study for the Harbor Master Plan within 30 days of adop-
tion of the Traffic Circulation Element. He believed the park-
ing/pedestrian issue on the Embarcadero will be a major part of
that plan.
Mr. Napper reminded Council they allocated funds mid -year to re-
tain a planner to help with the parking management plan of the
City, and that process is occurring currently with Johanna
Varland in the Planning Department. The ideas suggested this
evening will be forwarded to her for inclusion in her study.
Gene Singer noted complaints regarding parking on the Embarcadero
do not come from customers, more from the local people. He
thought the parking on the Embarcadero works, and perhaps does
not need to be changed.
Mr. Farrel reviewed the comments made this evening which would
require adjustment to the plan.
1. South Bay Blvd. should be a priority on bike paths
along with North Main St.
2. Delete any proposal at this time to bridge Morro Creek
or realign Coleman Drive, and direct those items be
studied further by the Blue Ribbon Committee and the
Harbor Master Plan.
3. Pursue idea of joint -use parking element of City
rights -of -way and City streets; this would be accom-
plished by retaining the proposals in the Plan as they
are but indicating also a City policy to work with pri-
vate interests in using some share of City rights -of -
way.
Councilmember Odell noted the potential hazard of uncontrolled
intersections and the need for a system of creating yields. He
discussed the problems of accessing the road around the Rock by
emergency equipment during an accident; he thought perhaps the
road should be widened. He also suggested some improvements be
MINUTES - MORRO BAAITY COUNCIL •
STUDY SESSION - FEBRUARY 4, 1988
PAGE 4
installed on the red -rock area on the north side of Morro Rock or
landscaping to improve the appearance of the area. There was
discussion regarding closing off the road that circles around the
south side of the Rock to vehicular traffic. Mr. Napper pointed
out the need to Master Plan this area, and major improvements to
the area must wait until that Plan is completed (LCP Policy).
Mr. Napper stated one of the recommendations coming to the Coun-
cil at their next meeting from the Street Advisory Committee is
to do an overlay to Coleman Drive which would include widening it
on the North side about 4 feet and shifting the centerline stripe
over.
MOTION: Councilmember Sheetz moved
The motion was seconded by
unanimously carried. (4-0)
Recorded
GARY NA-PVR
Deputy City
the meeting be adjourned.
Councilmember Odell and
MORRO BAY
CITY COUNCIL
AGENDA
CITY COUNCIL STUDY SESSION
.27 January 1988 (Wednesday)
Program Room, Morro Bay Library
2 PM
PUBLIC COMMENT PERIOD
A. PUBLIC REPORTS & COMMENTS
A-1 Continued Study and Discussion of the Economic Development
Opportunites Report by Applied Development Economics
(Stephen Wahlstrom, Consultant)
B. CLOSED SESSION
B-1 Keyoto_Natalie vs. City of Morro Bay
B-2 Citv of Morro Bav vs. Hittle
COPIES OF STAFF REPORTS OR OTHER WRITTEN
DOCUMENTATION RELATING TO EACH ITEM OF
BUSINESS REFERRED TO ON THIS AGENDA ARE ON
FILE IN THE OFFICE OF THE CITY CLERK AND
AVAILABLE FOR PUBLIC INSPECTION AND
REPRODUCTION AT COST.
1
MINUTES - MORRO
STUDY SESSION -
LIBRARY PROGRAM
BAY CITY COUNCIL
JANUARY 27, 1988
ROOM - 2:00 P.M.
Mayor Pro Tem Donnelly called the meeting to order at 2:08 p.m.
PRESENT: Dale Reddell
Paul Donnelly
John Lemons
Jeff Odell
Rose Marie Sheetz
ABSENT: None
STAFF: Gary Napper
Louise Burt
Alan Davis
Bill Farrel
Nick Nichols
Ardith Davis
Mayor
Mayor Pro Tem
Councilmember
Councilmember
Councilmember
City Administrator
Finance Director
Harbor Director
Community Develop. Dir.
Public Works Dir.
City Clerk
Mayor Pro Tem Donnelly stated Mayor Reddell would return shortly.
He introduced Steve Wahlstrom of Applied Development Economics;
his firm had prepared the document entitled A Study of Morro
Bay's Economic Development Opportunities. Mr. Wahlstrom stated
he had previously made a detailed presentation of the Study for
Council and the public; this meeting was called for the purpose
of receiving input from the public on the document.
Mayor Pro Tem Donnelly opened
discussion.
Mayor Reddell resumed his seat.
the item to the public for
Jerry Hempenius, President of Com-Spec Properties, Inc., reviewed
his qualifications as background to a report he presented to
Council. His report contained a "Motel Occupancy Survey" which
he prepared as a result of reviewing the Economic Development
study by Applied Development Economics. He believes the City
study to be misleading and has attempted to provide valid statis-
tics on motel occupancy in order for Council to make decisions
based on current information. Mr. Hempenius reviewed his Survey
and provided copies of the report to Council and staff. He
stated there are 37 active motels in Morro Bay, and 27 of them
submitted data used in compiling the Survey.
Mr. Hempenius believed his analysis shows the motel market is
over -built; it will take four years to absorb the excess and for
motel owners to reach a target 74% occupancy. He gave a detailed
review of the statistics and how he arrived at the absorption
rate.
MINUTES - MORRO BAOITY COUNCIL •
STUDY SESSION - JANUARY 27, 1988
PAGE 2
In order to help monitor the motel future, Mr. Hempenius sug-
gested the City attempt to determine the number of rooms rented
and occupancy percentage on the transient occupancy forms pro-
vided to the motel industry for occupancy tax. He also believed
unifying the Chamber of Commerce, Motel Association, and Mer-
chants Association budgets for promotional purposes would maxi-
mize the return on dollars. He suggested no more motels be con-
structed until the local industry can achieve a reasonable occu-
pancy level.
Mr. Hempenius also made several suggestions to delete recommenda-
tions in the City's Study pertaining to hotel/motel development.
Councilmember Lemons asked what type of motels receive the
largest occupancy rate; Mr. Hempenius stated those closest to the
water have the highest occupancy rate; next are those that have
franchises.
Council asked questions regarding occupancy rates to which Mr.
Hempenius responded.
Mr. Farrel asked why the City should regulate a competitive pri-
vate market, and why the City should seek to hit a certain target
of occupancy. Mr. Hempenius responded his report is provided for
the City to have accurate numbers to work with. The City study
is not accurate and makes it look more profitable to establish a
motel here than it is, along with a recommendation for a major
conference center. He believes if accurate figures are available
regarding the market, people will choose not to establish addi-
tional motels in Morro Bay and it will be unnecessary for the
City to intercede.
Councilmember Lemons asked if perhaps the moratorium situation
that existed in Morro Bay from 1977 created a pent-up demand to
build and may have had an effect on the surplus of motel units in
Morro Bay today. Mr. Hempenius stated yes, if some of the motel
projects could have been constructed when their applications were
filed, developers coming afterwards probably would have reconsid-
ered their plans.
Jesse Norris, President of the Motel Association, expressed con-
fidence in the figures provided by Mr. Hempenius. He said he be-
lieved in free enterprise, but hated to see motels go into
bankruptcy. He encouraged increased advertising and promotions.
Councilmember Lemons asked about the suggestion to determine mo-
tel occupancy rates via the Transient Occupancy Tax forms; Ms.
Burt stated this could be done.
Charles Palmer reviewed a paper he had written entitled, "Morro
Bay's Water History, A Thirty Year Capsule". He stated his con-
cern was that the City did not have enough water to accomplish
what is recommended by the Report.
MINUTES - MORRO BAAITY COUNCIL •
STUDY SESSION - JANUARY 27, 1988
PAGE 3
Thom Narozonick, General Manager
mented on highlighting the month
he stated there are other months
as good as it is in August. He
was more realistic.
of the Inn At Morro Bay, com-
of August in the City's report;
of the year when business is not
believed Mr. Hempenius' report
Chris Thompson, Chamber of Commerce, stated although there is a
conflict in the data provided in the City's study and the one
prepared by Mr. Hempenius, the City's report still provides other
valuable economic information and a base from which to begin
planning. He believes there are problems in the small retail in-
dustry as well as the motel industry and indicated the Chamber is
willing to work in that area. Mr. Thompson said there are some
good statements in the report concerning the division in the
community.
Mr. Wahlstrom stated it is not exactly correct to say the City's
report contains inaccurate data. It is necessary to look at the
manner in which the information was collected, and he acknowl-
edged Mr. Hempenius is in a better position to obtain the infor-
mation than the sources used by ADE.
Councilmember Lemons believed the Chamber should carry this task
further in the proposals made by Mr. Thompson, and stated the
Council could be supportive of those efforts.
Councilmember Odell was concerned the City study does not charac-
terize the benefits of recreational boating, and believed infor-
mation could be garnered from the Morro Bay Yacht Club to provide
the City with data. Also, a significant portion of the working
community were omitted from the Study; there are a number of
self-employed people that do not appear in the data base. He
suggested advertising what Morro Bay has to offer, and not try to
compare to somewhere else.
Councilmember Sheetz commented on the need to improve the Morro
Bay Blvd. commercial area. Chris Thompson suggested a joint ef-
fort in this regard between the Chamber and the City.
Barbara Sanders commented the people on Morro Bay Blvd. would be
encouraged to improve their property if the City would help with
parking.
Peter Diffley took issue with some misconceptions in the Study.
He disagreed the polarization of the community was a major bar-
rier to land use planning. He believed the problem has to do
with tourism, noting the initiative measure the people voted in
favor of to limit the amount of spending on community promotions.
He stated the people do not want a lot of tourism, and the City
should not allow any more motels to be constructed for a long
time. He suggested an Economic Development Commission be
established.
MINUTES - MORRO BASITY COUNCIL •
STUDY SESSION - JANUARY 27, 1988
PAGE 4
Mr. Napper reminded Council the current moratorium on motel con-
struction will expire in October 1988, and it cannot be extended.
In the interim, zoning changes should be considered. He reviewed
some innovative ideas other cities are implementing for improving
downtown areas.
Mayor Reddell thanked Mr. Hempenius for his information, and Mr.
Wahlstrom for attending the meeting.
MOTION: Councilmember Sheetz moved the meeting adjourn to
Closed Session. The motion was seconded by Councilmem-
ber Lemons and unanimously carried. (4-0)
Mayor Reddell announced Council is adjourning to Closed Session
to discuss pending litigation in accordance with Government Code
Section 54956.9(a) in the matters of Keyoto-Natalie vs. City of
Morro Bay and City of Morro Bay vs. Hittle.
The meeting adjourned to Closed Session at 4:00 p.m. and returned
to regular session at 4:45 p.m.
MOTION: Councilmember Sheetz moved the meeting be adjourned.
The motion was seconded by Councilmember Odell and
unanimously carried. (4-0)
The meeting adjourned at 4:45 p.m.
Recorded by:
c;� ccu�
ARDITH DAVIS
City Clerk
MORRO BAY
CITY COUNCIL
AGENDA
REGULAR MEETING - JANUARY 25, 1987
VETERANS MEMORIAL HALL - 6:00 P.M.
ROLL CALL
INVOCATION
PLEDGE OF ALLEGIANCE
PRESENTATIONS - CERTIFICATES OF APPRECIATION TO OUTGOING ADVISORY BOARD
MEMBERS
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 by standing. When recognized by the Mayor, please
come forward to the podium and state your name and address for the record.
Comments should normally be limited to three minutes.
DECLARATION OF FUTURE AGENDA ITEMS
A. CONSENT CALENDAR
Unless an item is pulled for separate action by the City Council, the
following actions are approved without discussion.
A-1 CITY COUNCIL MINUTES OF THE REGULAR MEETING OF JANUARY 11, 1988
A-2 EXPENDITURE REPORT - DECEMBER 1987
A-3 STATEMENT OF INVESTMENTS - DECEMBER 1987
A-4 NOTICE OF COMPLETION; PROJECT PW 87-02 (REPEATER STATION)
A-5 RESOLUTION NO. 4-88 APPROVING CUP 34-84, AMENDED (HEMPENIUS)
A-6 RESOLUTION NO. 3-88 WAIVING CITY DOCKAGE FEES FOR MARCH 1988
VISITATION OF GOLDEN HINDE TO MORRO BAY (REPRODUCTION OF SIR FRANCIS
DRAKE'S 1579 VESSEL)
A-7 AWARD OF CONTRACT FOR PROJECT PW 87-07 (SIDEWALK REPLACEMENT;
EMBARCADERO HANDICAP RAMPS)
B. PUBLIC HEARINGS, EEPORTS & APPEARANCES
B-1 APPEAL HEARING ON PLANNING COMMISSION CONDITIONS OF APPROVAL, CUP 41-
86, AMENDED (ORVAL LEAGE, APPELLANT; COMMERCIAL FISHPUMP OPERATIONS,
LEASE SITE 35W)
1
6
B-2 APPEAL HEARING ON PLANNING COMMISSION DETERMINATION 02-87 TO PROHIBIT
RECREATIONAL VEHICLE PARK IN R-4 ZONING (FISHER, APPELLANT)
B-3 CONTINUED PUBLIC HEARING ON 1987 ANNUAL WATER REPORT REGARDING THE
PIPELINE REPLACEMENT AND WATER RETROFIT PROGRAMS, AND RECOMMENDATIONS
FOR THE 1988 WATER ALLOCATION PROGRAM AND OPERATING GUIDELINES
B-4 PRESENTATION OF RECOMMENDED CAPITAL IMPROVEMENT BUDGET FOR FY 87-88
B-5 REVIEW AND RECOMMENDATION ON CALIFORNIA PARKS AND RECREATION GENERAL
PLANS AND DRAFT EIR FOR ATASCADERO STATE BEACH AND MORRO STRAND STATE
BEACH
C. UNFINISHED -BUSINESS
C-1 ORDINANCE NO. 317 PROHIBITING PUBLIC NUDITY (FINAL READING AND
ADOPTION)
C-2 PROGRESS REPORT ON STUDY PLAN OF ACTION UNDER INTERIM ORDINANCES NO.
301 AND 304 (AKA KEYOTO-NATALIE AND ADJOINING PROPERTIES)
C-3 CITY POSITION ON CALIFORNIA COASTAL COMMISSION'S RESPONSE TO CASE NO.
LUP 01-87, LOCAL COASTAL PROGRAM LAND USE AMENDMENT (AKA WILLIAMS
BROTHERS INITIATIVE MEASURE B)
C-4 POLICY DETERMINATION ON PAST DUE RENTS ON LEASE SITE 30W-33W (MORRO
BAY FUEL DOCK, INC.)
D. NEW BUSINESS
D-1 RECOMMENDATION TO COUNTY SOLID WASTE MANAGEMENT COMMISSION REGARDING
PRELIMINARY SITES FOR REFUSE TRANSFER STATIONS IN MORRO BAY
E. CLOSED SESSION
1. GOVERNMENT CODE SECTION 54956.9(A), PENDING LITIGATION:
A. KEYOTO-NATALIE-VS:-CITY-OF MORRO BAY
B. WESTERN OIL & GAS-ASSOC:-VS;-CITY-OF-MORRO-BAY
C. CITY-OF-MORRO BAY-VS:-HITTLE
D. CITY OF-MORRO-BAY-VS: JAMES-Sc-SILVER
F. ADJOURNMENT
COPIES OF STAFF REPORTS OR OTHER WRITTEN DOCUMENTATION
RELATING TO EACH ITEM OF BUSINESS REFERRED TO ON THIS
AGENDA ARE ON FILE IN THE OFFICE OF THE CITY CLERK AND
AVAILABLE FOR PUBLIC INSPECTION AND REPRODUCTION AT
COST.
**NOTE: City Council Economic Development Study Session
27 January 1988 (Wednesday, 2 PM)
Morro Bay Library Program Room
MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING - JANUARY 25, 1988
VETERANS MEMORIAL HALL - 6:00 P.M.
Mayor Reddell called the meeting to order at 6:00 p.m.
ROLL CALL
PRESENT: Dale Reddell
Paul Donnelly
John Lemons
Rose Marie Sheetz
ABSENT: Jeff Odell
STAFF: Gary Napper
Judy Skousen
Dave Bugher
Louise Burt
Bill Farrel
Forrest Henderson
Dave Howell
Nick Nichols
Ardith Davis
Horace Strong gave the invocation,
Allegiance.
PRESENTATIONS
Mayor
Councilmember
Councilmember
Councilmember
Councilmember
City Administrator
City Attorney
Assoc. Planner
Finance Director
Community Develop. Dir.
Asst. to City Admin.
Police Chief
Public Works Dir.
City Clerk
and led the Pledge of
Mayor Reddell presented Certificates of Appreciation to outgoing
advisory board members Hal Hannula (Water Advisory Board) and Jo
Ann Reddell (Recreation and Parks Commission). Also receiving
Certificates, but not present to receive them were: Eric Barham,
Harbor Advisory Board; Harry Marks, Refuse Franchise Board;
Dennis Sheridan and Mary Wooten, Cable TV Board; and Timothy
Sadlier and Philip Person, Water Advisory Board.
Mayor Reddell thanked the board members for their services.
PUBLIC COMMENT
Mr. Napper announced Councilmember Odell is absent because
of illness.
1. Chris Thompson, Morro Bay Chamber of Commerce Manager,
stated the Chamber Board of Directors has instructed him to bring
Council and City staff their planning program developed by the
Chamber. He reviewed the various Chamber sub -committees and
their charges, and noted the number one priority of the Chamber
is to enhance the economic situation in Morro Bay.
MINUTES - MORRO BA* TY COUNCIL
REGULAR MEETING - JANUARY 25, 1988
PAGE 2
2. Bruce Risley, 540 Piney Way, stated the public is often
unable to hear Council when they are speaking. He noted at the
last meeting Mayor Reddell stepped down on an item, but did not
indicate why. The minutes state is was because of a conflict of
interest, but not the subject of the conflict. He believed the
public has a right to hear what Council is saying and to know
what conflict Councilmembers have on issues.
Councilmember Lemons stated once a Councilmember steps down from
discussion and voting on an item, the conflict is ended and it is
not necessary to describe the conflict. He asked the City Attor-
ney if this is correct; Ms. Skousen stated yes, Council is only
required to detail the conflict if it is necessary for a coun-
cilmember to vote on an item in order to have a quorum. They are
not required to say what the conflict is if they do not vote on
the item.
3. Nelson Sullivan stated he addressed Council at their
last meeting and made an error in his statements. He previously
said he thought the City was in a position to be able to conduct
the water audit because he thought the City had corrected the
well meters; he subsequently found out the City has not corrected
that problem in its entirety. He said it wasn't in the minutes
for January 11th, and requested the minutes be corrected as they
do show him as taking a position the City is on top of the water
auditing situation, whereas he does not believe that is the case.
4. Frank Thompson, 700 Pacific, made complaints regarding
a supposed allegation against his wife by the Fire Chief.
DECLARATION OF FUTURE AGENDA ITEMS
1. Mayor Reddell requested some of the items presented by
the Chamber of Commerce Manager be scheduled on a future Council
agenda for discussion. Mr. Napper indicated some of the items
may come upon on Wednesday when Council is scheduled to hold a
study session on the Economic Development Study.
2. Councilmember Lemons suggested Item A-3, Annual Water
Report, be continued to the next meeting; with Councilmember
Odell absent, Council will not have a quorum to act on the
matter.
MOTION: Councilmember Lemons moved Item B-3 be continued to the
next meeting. The motion was seconded by Councilmember
Donnelly and unanimously carried. (4-0)
A. CONSENT CALENDAR
A-1 CITY COUNCIL MINUTES OF THE REGULAR MEETING OF JANUARY 11,
1988 ---'—'
Mr. Napper recommended Council approve the minutes as submitted.
MINUTES - MORRO BA*ITY COUNCIL
REGULAR MEETING - JANUARY 25, 1988
PAGE 3
A-2 EXPENDITURE REPORT - DECEMBER 1987
Mr. Napper recommended Council approve the Report as submitted.
A-3 STATEMENT OF INVESTMENTS - DECEMBER 1987
Mr. Napper recommended Council receive the report for file.
A-4 NOTICE OF COMPLETION; PROJECT PW 87-02 (REPEATER STATION)
Mr. Napper recommended Council accept the project as completed
and authorize the City Clerk to sign and file the Notice of
Completion.
A-5 RESOLUTION NO. 4-88 APPROVING CUP 34-84, AMENDED (HEMPENIUS)
Mr. Napper recommended Council adopt Resolution No. 4-88.
A-6 RESOLUTION NO. 3-88 WAIVING CITY DOCKAGE FEES FOR MARCH 1988
VISITATION OF GOLDEN HINDE TO MORRO BAY (REPRODUCTION OF SIR
Mr. Napper recommended Council adopt Resolution No. 3-88.
A-7 AWARD OF CONTRACT FOR PROJECT PW 87-07 (SIDEWALK REPLACE-
MENT; EMBARCADERO HANDICAP RAMPS)
Mr. Napper recommended Council award the contract, including Al-
ternates A-E, to Brinar Concrete in the amount of $20,711.06.
Councilmember Sheetz requested Item A-5 be pulled from the Con-
sent Calendar for separate consideration.
MOTION: Councilmember Sheetz moved for the approval of the Con-
sent Calendar with the exception of Item A-5. The mo-
tion was seconded by Councilmember Lemons and unani-
mously carried. (4-0)
A-5 RESOLUTION NO. 4-88 APPROVING CUP 34-84; AMENDED (HEMPENIUS)
Councilmember Sheetz questioned if the appeal on this application
had been filed in a timely manner. She noted the appeal on the
Orval Leage item, scheduled on tonight's agenda as B-1, had been
filed 6 days late. She had been unaware staff accepted appeals
when they are not filed on time.
Mr. Napper stated this appeal had been filed on time. With re-
gard to the Orval Leage matter, Council has discretion as to
whether or not they wish to hear the appeal if an application is
filed late.
There was further discussion on this matter, with Council direct-
ing staff research the files to make sure the Hempenius appeal
MINUTES - MORRO BAY•ITY COUNCIL •
REGULAR MEETING - JANUARY 25, 1988
PAGE 4
was filed in a timely manner. The item will be rescheduled for
the next Council meeting.
B. PUBLIC HEARINGS1 REPORTS & APPEARANCES
B-1 APPEAL HEARING ON PLANNING COMMISSION CONDITIONS OF
Councilmember discussed the lateness of the appeal, and decided
they would hear the matter.
Dave Bugher reviewed the extensive history regarding Mr. Leage's
application to operate a vacuum -type machine for off-loading fish
at "The Cannery", 235 Main Street. One of the conditions at-
tached to the application when it was originally granted in Octo-
ber 1986 is for an annual review of the machine's operation.
When the Planning Commission reviewed this matter in October
1987, they decided it was necessary for Mr. Leage to further mit-
igate the noise sources on his property by employing an acousti-
cal engineer to design baffling systems on the existing machin-
ery. They extended his temporary period for 90 days, or until
January 25th, to accomplish this.
The applicant filed an appeal to this condition as being unduly
restrictive, burdensome, and would interfere with his right to
operate his business. A continuance of the hearing was requested
and granted in December to give the applicant time to install new
machinery designed to reduce noise; however, there have been de-
lays in installation. Mr. Bugher stated Mr. Leage has installed
several items to reduce the background noise on the site, and
hired The Morro Group to monitor noise readings.
Staff recommends Council extend the Conditional Use Permit with
the Planning Commission conditions for an additional 90 day pe-
riod to give the applicant time to install additional equipment,
and then return to the Planning Commission for reconsideration.
Council discussed the 6-day lateness of the appeal; Councilmember
Sheetz stated the City has rules and regulations regarding ap-
peals, and the public and the City should be required to conform
to them. She believed the Council should make the decision
whether or not to waive the deadline, not staff.
Council questioned the City Attorney regarding the City's respon-
sibility on late appeals; Ms. Skousen stated Council can waive
the appeal period deadline, or they can determine the appeal was
filed late and not hear the appeal.
Councilmember Lemons questioned the local availability of a li-
censed acoustical engineer to monitor noise on the property; Mr.
Bugher stated there are none locally, perhaps in Santa Barbara or
Los Angeles.
MINUTES - MORRO BA)'
COUNCIL •
REGULAR MEETING - JANUARY 25, 1988
PAGE 5
Mayor Reddell opened the hearing to the public for comments.
Dale Mitchell, attorney for Mr. Leage, stated the language in the
conditions is not the exact language stated at the Planning Com-
mission meeting. He stated the Planning Department did the best
they could with the information they had; however, the conditions
are too onerous. His applicant is doing everything he can to
abate the noise problem; but, believes the requirement for a li-
censed acoustical engineer is unreasonable and are very expensive
to retain. He requested Council approve the staff recommendation
to extend the permit another 90 days. By that time, Mr. Leage
will have changed the pump from diesel power to electrical which
will have a significant effect on reducing the noise.
Councilmember Sheetz asked Mr. Mitchell if his client would be
willing to hire a licensed acoustical engineer if the noise lev-
els were not reduced to within acceptable limits after the in-
stallation of the new equipment. Mr. Mitchell did not wish to
make that commitment, but suggested waiting until after the
equipment is installed to make that determination.
Fred Sears, President of the Commercial Fishermens Organization,
stated Mr. Leage has made considerable effort, time, and money to
reduce the noise at his site to satisfy his neighbors. He be-
lieved Council should support him as long as he continues to al-
leviate the problem.
Mayor Reddell asked Mr. Sears how it would affect the fishing in-
dustry if Mr. Leage was completely shut down. Mr. Sears stated
no one else is better equipped than Mr. Leage to handle the vol-
ume of fish.
Eleanor Kolb spoke against the appeal and granting the waiver for
late filing of the appeal; everyone should be allowed to file a
late appeal if Mr. Leage is. She said the noise from Mr. Leage's
property has driven her from her home, and a noise engineer is
needed to evaluate all noise producing equipment on the property.
She stated Mr. Leage does not fix anything until he is forced to,
and has not lived by past conditions. The Planning Department
informed her the new machine he plans to install will be noisier
than the old one; she emphasized the importance of requiring a
noise engineer.
Ed Ewing, commercial fisherman, stated boats going by the Leage
operation make more noise than Mr. Leage's equipment, and noted
the service Mr. Leage provides to the fishing industry.
Mayor Reddell closed the hearing to the public.
Councilmember Sheetz stated she would not like to see Mr. Leage's
operation shut -down; however, she believed he needs to address
the noise problems and do something about them. She expressed
concerns about the inconsistency of the late appeal policy.
MINUTES
- MORRO BA)JITY COUNCIL
REGULAR
MEETING - JANUARY
25, 1988
PAGE 6
MOTION:
Councilmember
Sheetz moved
Council grant CUP 41-86
(Amended) for
a 90-day period ending 30 April 1988,
with the same
conditions as
imposed by the Planning
Commission. The motion was seconded by Councilmember
Lemons.
There were Council questions regarding decibel levels; Mr. Bugher
stated the Planning Commission determined the operation has ex-
panded and, because of on -going complaints, it is necessary for
the applicant to further mitigate the noise. He said there were
also concerns because of background noise.
Mayor Reddell suggested all Councilmembers visit the site now,
and again when the new equipment is installed.
The motion was unanimously carried. (4-0)
B-2
Dave Bugher reviewed this item for Council stating the Planning
Commission made a determination Mr. Fisher's request for a mo-
bilehome/recreational trailer park in an R-4/PD zone is not ap-
propriate. The property location is a 6-acre parcel on the
northeast corner of Ironwood Avenue and Highway 41. He outlined
the criteria for determining if a land use is similar in charac-
ter to the uses allowed in the district, and stated if Council
determines an R-4 district allows RV's, that decision must apply
to all R-4 properties in the City. An alternative would be to
rezone this property to a Visitor Serving Commercial classifica-
tion which would allow RV's but not mobile homes.
Mr. Bugher advised Council their deliberations this evening are
not to assess a specific project, but only to interpret the mean-
ing of the R-4 zoning district.
Mayor Reddell asked question regarding the PD overlay to which
Mr. Bugher responded. Mayor Reddell suggested that since this is
the only R-4/PD property in the City large enough for an RV park,
perhaps a special opportunity should be given for public benefits
reasons.
Mayor Reddell opened the hearing to the public for comments.
Dick Fisher, applicant, distributed a one page letter to the
Council and reviewed his reasons for requesting an RV park at
this site. He was under the impression the earlier change of
zoning to R-4 would contain the same residential and tourist land
uses as held previously, and the definition of Mobilehome Park
also included Travel Trailer Park. There is a lack of low cost
visitor -serving accommodations in Morro Bay, and a large parcel
is needed to develop an RV park to make it economically feasible.
He noted the property is located on the outskirts of town and on
MINUTES - MORRO BA4ITY COUNCIL
REGULAR MEETING - JANUARY 25, 1988
PAGE 7
a major highway. Since this property is zoned for tourist serv-
ing and for a mobilehome park, he requested Council find that an
RV park is a similar use and suitable for this property.
Lester Bird, 1365 Hillcrest, stated he owns Morro Bay RV Center,
and there are not enough RV spaces in Morro Bay to accommodate
travelers; if they can't find space here, they go to Pismo Beach
and spend their money there. He recommended support of the de-
termination for an RV park.
Alice Kolb, 690 Ponderosa, urged Council to support the Planning
Commission decision and the City Attorney's position that an RV
park does not fit appropriately in this zoning. She believed a
mobilehome park would be a better solution to the development of
the property.
Clayton Scovell, 698 Ponderosa, stated Mr. Fisher should be al-
lowed to develop the property, and he has no problem whatsoever
with an RV park.
Louise Baxley, 661 Ponderosa, was opposed to an RV park at that
location. She stated homes in the area are on 1 /2 acres lots,
and an RV park would allow 15 units per acre. She noted the im-
pacts on the City's water and sewer services.
Mayor Reddell closed the hearing to the public.
There was considerable discussion regarding the previous zoning
for this area (Highway Commercial) and the reasons RV parks as a
permitted use was deleted in the current R-4 district. Staff was
instructed to research City files to see if there was a specific
reason and intent for the omission.
Mayor Reddell asked if an RV park located adjacent to Highway 41
is a good location. Mr. Bugher stated the best place for an RV
park is adjacent to the tourist attractions (e.g. beach) with
easy access to the waterfront.
Councilmember Donnelly asked about conditions the City could
place on an RV park and Mr. Bugher reviewed some of these. Ms.
Skousen stated most of the regulation of RV and mobilehome parks
is conducted by the State.
Councilmember Lemons asked if Council can make findings an RV use
is not excluded in an R-4 zone, and Ms. Skousen said yes, and in-
clude in the findings the use is consistent with the LUP. There
is a new Attorney General's opinion the City may not authorize
uses excluded in the LUP.
Councilmember Lemons asked if Council could make findings that
are site specific; this may be the only R-4 parcel large enough
to accommodate an RV park. Ms. Skousen stated if Council chooses
that method to interpret the zoning, all R-4 zones would have to
MINUTES - MORRO BAIOITY COUNCIL
REGULAR MEETING J UARY 25, 1988
PAGE 8
be included in the interpretation. If Council wishes to make it
site specific, they should rezone the property.
Councilmember Lemons asked if the Coastal Commission has to ap-
prove the Council's interpretation, and Mr. Bugher said no. Mr.
Skousen said Council's interpretation could, however, be appealed
to the Coastal Commission. Mr. Farrel indicated our approved LCP
does give Council the right to interpret zoning.
Councilmember Sheetz believed it would be simpler if a mobilehome
park was established at this location; including RV parks in the
R-4 district would be stretching the definition. She was in fa-
vor of upholding the Planning Commission's recommendation.
MOTION: Councilmember Lemons moved this item be continued to
the next meeting. The motion was seconded by Coun-
cilmember Donnelly.
It was noted additional staff research is desired to determine
why RV parks were left out of the R-4 definition when the zoning
ordinance was amended. Mayor Reddell stated he is also inter-
ested in knowing the number and location of other properties in
Morro Bay which could accommodate an RV park.
The motion was unanimously carried. (4-0)
B-3 CONTINUED PUBLIC HEARING ON 1987 ANNUAL WATER REPORT REGARD-
Y4��;ZiZH;i:T4I.9
This item was previously continued by Council motion to the next
meeting, February 8, 1988.
Council recessed from 8:00 p.m. to 8:15 p.m.
B-4 PRESENTATION OF RECOMMENDED CAPITAL IMPROVEMENT BUDGET FOR
FV R7-RR
Mr. Napper reviewed the City's current Fund Balance which is
$1,614,242, noting it is $130,082 less than last year's. He sup-
plied detail regarding increased services levels and competitive
employee compensation as factors attributing to the decrease in
the mid -year Fund Balance. Mr. Napper stated $408,785 of the
Fund Balance is General Fund monies, while the remainder is allo-
cated between enterprise funds (water, sewer, harbor) and can
only be expended for projects matching their source.
Mr. Napper reviewed in detail his recommendations for 20 capital_
project expenditures and the justification for each. He noted_
Water Advisory Board and Street Advisory Committee recommenda-
tions have been included for Council information. Mr. Napper
said there is no urgency to adopt the program this evening.
MINUTES - MORRO BA;ITY COUNCIL •
REGULAR MEETING J UARY 25, 1988
PAGE 9
Councilmember Donnelly questioned the large amount budgeted for
the equipment reserve fund. Mr. Napper stated this reserve al-
lows the City to purchase expensive equipment when necessary
without impacting other account. He said a new fire truck could
cost $150,000, a ladder truck $450,000; therefore it is necessary
to augment this fund for those kinds of expenditures.
Councilmember Lemons asked if the roof for the equipment barn
could be replaced with wood rather than the galvanized steel; Mr.
Nichols stated he would look into it.
Councilmember Lemons suggested the improvements near the South T-
Pier be accomplished quickly since liability for public safety
has been pointed out to Council; he suggested installing a tempo-
rary handrail until the improvements could be made.
Councilmember Donnelly asked about street repair to Beachcomber;
Mr. Nichols stated he has a design to implement repairs, but not
the funding to accomplish it at this point.
There was discussion regarding the outstanding debt of $545,000
by the Harbor Fund to the General Fund. Council discussed not
requiring the Harbor Fund to pay -back the General Fund; however,
Ms. Burt stated since Proposition 13, the City has less flexibil-
ity to raise taxes. Enterprise funds, such as the Harbor Fund,
have the ability to set rates; to relieve a fund with the capac-
ity to earn from paying back a fund that does not have that ca-
pacity is not a good idea. She noted the General Fund is not
growing as is the Harbor Fund.
Mayor Reddell opened the hearing to the public for comments.
Bill Mazzacane, member of the Water Advisory Board, emphasized
the Water Board's priorities for water projects; Coastal Streams
Diversion, San Bernardo Dam, and Toro Creek wells. He believed
it important to keep all options open in case one of the projects
becomes infeasible. He said it is necessary to fund the San
Bernardo feasibility study before the permits are canceled in
August of 1989.
Mayor Reddell stated Council was in receipt of the Water Advisory
Board's recommendations; he believed Council should receive the
recommendations in that manner rather than from individual board -
members. Mr. Mazzacane believed the opportunity might by-pass
the City because of manner in which the sums of money were pre-
sented to Council (i.e., New Water Production Reserve).
Councilmember Lemons asked if there was a proposal ready for the
next step on the dam project. Mr. Napper stated not specifi-
cally; the next step is the feasibility study and EIR estimated
at $277,500. This is more than is currently available to be ear-
marked. He noted his recommendation to allocate $59,110 to the
New Water Production Reserve Fund to total that Fund at $375,804.
As soon as a specific project step is ready for implementation,
MINUTES - MORRO BA*ITY COUNCIL a
REGULAR MEETING - JANUARY 25, 1988
PAGE 10
these funds can be allocated by Council, thereby allowing full
flexibility.
Charles Palmer, 485 Estero, agreed with Mr. Mazzacane's comments
and encouraged Council to keep its options open.
Councilmember Lemons asked if Council adopted the staff recommen-
dation this evening, would they be excluding any of the proposed
water projects. Mr. Napper stated no, the reserve fund gives
Council the opportunity to allocate monies to any project as a
project becomes ready to fund.
Jean Cartwright supported the recommendation of the Water Advi-
sory Board and the comments by Mr. Mazzacane. She also asked
questions regarding road deterioration on Beachcomber, to which
Mr. Nichols responded.
Bruce Risley stated he believes the City is losing their number
one priority which is a local solution to the City's water prob-
lem. He said enough rain falls in our area every year to solve
Morro Bay's water problem for ever if the City had a way to store
and preserve the water. He supported Mr. Mazzacane's comments to
fund water priority projects.
Mayor Reddell commented the City has never considered to discon-
tinue with the San Bernardo Creek dam project; it makes sense,
however, to put the money in a fund allocated towards water pro-
jects rather than one specific project.
Ed Ewing, Pacific St., encouraged Council to investigate desalin-
ization, noting there has been improvements in the concept in re-
cent months.
Mayor Reddell closed the hearing to the public.
MOTION: Councilmember Sheetz moved for approval of the FY 87-88
Capital Improvement Budget as submitted. The motion
was seconded by Councilmember Lemons and unanimously
carried. (4-0)
B-5 REVIEW AND RECOMMENDATION ON CALIFORNIA PARKS AND RECREATION
GENERAL PLANS AND 'DRAFT EIR FOR ATASCADERO STATE BEACH AND
MORRO STRAND STATE BEACH
Mr. Farrel stated the proposed Master Park for Morro Bay State
Park and Atascadero State Beach was reviewed for Council at a
public hearing on October 26th. At that time Council provided
input to the State officials present at the meeting. Council is
now in receipt of the Preliminary General Plan for these areas
and most of Council's concerns have been addressed. The Resolu-
tion recommended for adoption approves the Plan and includes
those items mentioned by Council during their public hearing, but
left out of this Preliminary Plan. He noted the Plan does in-
MINUTES - MORRO BA)W TY COUNCIL
REGULAR MEETING - JANUARY 25, 1988
PAGE 11
clude renaming Atascadero State Beach to Morro Strand State
Beach.
Mayor Reddell noted the limited amount of parking indicated at
Hatteras Street in the Parks Plan. He suggested a comment be in-
cluded in the Resolution to maximize the parking at that loca-
tion. Mr. Farrel stated he would include that comment.
Mayor Reddell opened the hearing for comments from the public;
there were no comments and the hearing was closed.
MOTION: Councilmember Lemons moved for approval of Resolution
No. 5-88 with a provision to be included regarding max-
imizing public parking at Hatteras Street. The motion
was seconded by Councilmember Sheetz and unanimously
carried. (4-0)
C. UNFINISHED BUSINESS
C-1 ORDINANCE NO. 317 PROHIBITING PUBLIC NUDI'.
Mr. Napper stated this is the second and final reading of an or-
dinance to prohibit public nudity. If adopted this evening, it
will take effect February 24th.
MOTION: Councilmember Sheetz moved Ordinance No. 317 be read by
title and number only. The motion was seconded by
Councilmember Lemons and unanimously carried. (4-0)
Mr. Napper read Ordinance No. 317 by title and number only.
MOTION: Councilmember Sheetz moved for adoption of the second
and final reading of Ordinance No. 317. The motion was
seconded by Councilmember Lemons and unanimously
carried. (4-0)
Mr. Napper noted he was in receipt of a petition this evening
suggesting Council provide dressing rooms at the North end of the
parking lot at Morro Rock. Council directed this item be re-
ferred to the Recreation and Parks Commission for a
recommendation.
C-2 PROGRESS REPORT ON STUDY PLAN OF ACTION UNDER
Mr. Farrel outlined the progress on the Study Plan since Council
implemented Ordinances No. 301 and 304. This includes the con-
sultant's work program tasks on the data base, supplemental data
base, land use alternatives, impact/assessment/Coastal Act con-
sistency review, plan selection process, and implementing ordi-
nances and program. The consultants are meeting with the Blue
Ribbon Committee regarding suitable land uses, and more meetings
MINUTES - MORRO BA0ITY COUNCIL
REGULAR MEETING - JANUARY 25, 1988
PAGE 12
E
are planned in the future. It is suggested, therefore, for the
interim ordinances to be extended for an additional 1-year period
in order to complete the process. He recommended Council adopt
the report, and indicated an ordinance extending the current
interim urgency ordinance could be submitted to Council at their
next meeting.
Councilmember Lemons asked if the report fulfills all require-
ments of the Government Code; Ms. Skousen stated it does.
MOTION: Councilmember Donnelly moved Council adopt the status
report as submitted, constituting compliance with Gov-
ernment Code Section 56858(d); and, instruct staff to
prepare an urgency ordinance for the February 8th Coun-
cil meeting to extend the interim zoning ordinance for
an additional and final twelve month period to February
11, 1989. The motion was seconded by Councilmember
Lemons and unanimously carried. (4-0)
C-3 CITY POSITION ON CALIFORNIA COASTAL COMMISSION'S RESPONSE TO
100,1101
Mr. Farrel reviewed the process the City has taken in processing
the LUP amendment for the Williams Brothers Initiative Measure B.
The City has been working to get the amendment before the Coastal
Commission for a public hearing, and has been unable to get past
Coastal Commission staff and continuing requests for "additional
information". City staff believes the most recent request for
information is more appropriate at the development review stage,
and suggests petitioning the Coastal Commission to take the item
up itself on its merits. At the same time, the City would indi-
cate it will attempt to comply with the requests of the Coastal
Commission staff to provide certain additional information.
Councilmember Lemons asked at what point can the property owner
submit an application for City processing. Ms. Skousen stated an
application can be submitted at any time. She noted, however,
the applicant faces a risk of spending money for the application
and the possibility of not receiving approval from the Coastal
Commission until they certify the land use amendment.
Ray Biering, representing Williams Brothers, stated they have
reached a point where the Council, City staff, and the applicant
have done everything they can to work with the Commission, and he
believes the Commission staff has exceeded its jurisdiction. Mr.
Biering indicated he would work with City staff to supply the in-
formation requested by the Coastal Commission, but suggested
Council request the Coastal Commission take action to resolve the
question of the LCP amendment. Mr. Biering indicated they could
probably file their City application tomorrow if they had LCP
approval.
MINUTES - MORRO BASLITY COUNCIL
REGULAR MEETING - JANUARY 25, 1988
PAGE 13
Councilmember Sheetz asked if he knew exactly where the develop-
ment will be located on the property, and Mr. Biering stated on
the flat portion of the property without touching any hills.
Councilmember Sheetz commented we should try to be cooperative
with the Coastal Commission, and Alternative #3 appears to best
show that.
MOTION: Councilmember Lemons moved the City request the Coastal
Commission to directly take up the amendment request,
and concurrently indicate to the Commission that a por-
tion of the additional information requested by Coastal
Commission staff in their December 23, 1987 letter will
be provided. The motion was seconded by Councilmember
Sheetz and unanimously carried. (4-0)
C-4
TE
Mr. Napper stated this item had been continued by Council at
their last meeting to allow the Lessee's attorney time to negoti-
ate with City staff for a solution to the unpaid rents in the
amount of $12,578.78. Due to events beyond their control, Morro
Bay Fuel Dock has been unable to provide the information re-
quested by Council and staff regarding certified financial state-
ments to document a financial hardship. Mr. Napper requested
Council again continue this matter to their February 22nd meeting
in order to give the Lessee time to respond to requests for
information.
MOTION: Councilmember Lemon moved Council continue this item to
the February 22, 1988 meeting. The motion was seconded
by Councilmember Sheetz and unanimously carried. (4-0)
Council recessed from 9:53 p.m. to 10:05 p.m.
D. NEW BUSINESS
D-1 RECOMMENDATION TO COUNTY SOLID WASTE MANAGEMENT COMMISSION
Mr. Nichols stated the Los Osos Landfill will be officially
closed for business in November 1988. It is necessary, there-
fore, for refuse collected throughout the Cambria, Cayucos, Morro
Bay and Los Osos area to be transferred to the Cold Canyon Land-
fill in San Luis Obispo. Because of time and expenses involved
in purchasing additional garbage trucks to accomplish this pur-
pose, County staff is trying to establish a transfer station site
in the Morro Bay area for trucks to dump prior to transferring
refuse to the Cold Canyon Landfill. Mr. Nichols reviewed the
areas identified as potential sites, and also reviewed the recom-
mendations of the Refuse Franchise Board.
MINUTES - MORRO BAITY COUNCIL •
REGULAR MEETING - JANUARY 25, 1988
PAGE 14
Van Laurn, County Engineer's Office, stated when the Los Osos
Landfill closes, transfer stations in the vicinity of Morro Bay
will be needed to alleviate the necessity for refuse trucks to go
to Cold Canyon with every trip. Most of the sites are adjacent
to Highway 1 for easy access.
Councilmember Lemons asked if this is a water intensive use. Mr.
Laurn stated the data he has indicates it is not. The County's
intention is to purchase the land and have a private interest bid
for the site. Councilmember Sheetz asked if the transfer site
would mean there would be an increase in. garbage rates, and Mr.
Laurn stated there is no way to avoid passing costs onto the
consumer.
Council asked various questions to which Mr. Laurn responded.
Councilmember Sheetz asked about placing a transfer station at
the Los Osos Landfill, and Mr. Laurn stated logistics of a com-
mercial operation believe it is not a proper place to put it.
Mayor Reddell opened the hearing to the public for comments.
John Maino, property owner near Site No. 3, objected to placing a
transfer station near range land and noted the additional traffic
and road which would have to be developed where one does not cur-
rently exist. He preferred keeping the refuse station at the Los
Osos Landfill.
Dale Patterson, Bay Pines Trailer Park, objected to Site No. 1
and 2 on the basis of his customers having to look at refuse
trucks and a building at these areas.
Bonnie Tobin, property owner near Site No. 1, objected to traffic
and visual impacts, and stated transfer stations should not be
located near water wells or at entrance ways to the City.
Bea Rohan, 2501 Elm, objected to a transfer station in Morro Bay
due to water contamination and traffic concerns.
Mr. Laurn noted a transfer station is a totally enclosed building
with cement floors. The refuse will not be able to get into the
City's water supply.
Vera Pierce, 475 Chorro Creek Road (near Site No. 1), stated the
property in this area floods during rainy weather. She was con-
cerned about the water being contaminated by the waste disposal
site, and the increased traffic generated by the transfer sta-
tion. She said this area is the entrance to the City of Morro
Bay and should not be marred by a garbage transfer station.
Councilmembers discussed the various options, and favored leaving
the transfer station at the Los Osos Landfill site. Mr. Laurn
noted the Los Osos site had been the recommendation of the County
Planning Department staff.
MINUTES - MORRO BA*ITY COUNCIL •
REGULAR MEETING - JANUARY 25, 1988
PAGE 15
MOTION: Councilmember Sheetz moved Council recommend the trans-
fer station be located at the Los Osos Landfill site.
The motion was seconded by Councilmember Lemons.
Councilmember Lemons stated he preferred this site because it
does not require any LUP or LCP changes, it can be accomplished
quicker than establishing a site in Morro Bay, and it does not
put the City at odds with the County Planning Department recom-
mendation. Mayor Reddell agreed and stated it is cost-effective
to place the transfer station at Los Osos.
Charlie Cattaneo, Morro Bay Garbage Service, discussed the disad-
vantages of the elevation at the Los Osos site as opposed to
property where truck can get to a higher elevation to dump the
refuse.
The motion was unanimously carried. (4-0)
Mayor Reddell stated there is a lack of information to make a de-
cision to locate a transfer station in Morro Bay as opposed to
leaving it at the Los Osos Landfill site.
ADJOURNMENT
Mr. Napper reminded Council of the study session Wednesday,
January 27th at 2 PM in the Library Program Room to discuss the
Economic Development Plan.
MOTION: Councilmember Lemons moved Council adjourn to Closed
Session. The motion was seconded by Councilmember
Donnelly and unanimously carried. (4-0)
Mayor Reddell announced Council is adjourning to Closed Session
to discuss pending litigation in accordance with Government Code
Section 54956.9(a) in the matters of Keyoto-Natalie vs. City of
C9
ver.
Morro Bay, c
The meeting adjourned to Closed Session at 11:21 p.m. and re-
turned to regular session at 12:20 a.m.
MOTION: Councilmember Donnelly moved the meeting be adjourned.
The motion was seconded by Councilmember Sheetz and
unanimously carried. (4-0)
The meeting adjourned at 12:20 a.m.
Recorded by:
a
ARDITH DAVIS
City Clerk
i
MORRO BAY
CITY COUNCIL
AGENDA
REGULAR MEETING - JANUARY 11, 1988
VETERANS MEMORIAL HALL - 6:00 P.M.
ROLL CALL
INVOCATION
PLEDGE OF ALLEGIANCE
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 by standing. When recognized by the Mayor, please
come forward to the podium and state your name and address for the record.
Comments should normally be limited to three minutes.
DECLARATION OF FUTURE AGENDA ITEMS
A. CONSENT CALENDAR
Unless an item is pulled for separate action by the City Council, the
following actions are approved without discussion.
A-1 CITY COUNCIL MINUTES OF THE REGULAR MEETING OF DECEMBER 28, 1987, AND
THE ADJOURNED REGULAR MEETING OF JANUARY 5, 1988
A-2 REJECTION OF LIABILITY CLAIM AGAINST CITY (FRANKENSTEIN)
A-3 REJECTION OF ALL BIDS ON BID PW87-09 (POLICE STATION RENOVATION
PROJECT), AND AUTHORIZATION TO RE -ADVERTISE THE PUBLIC PROJECT
A-4 RESOLUTION DECLARING MORRO BAY AN OFFICIAL PORT -OF -CALL FOR THE
REVENUE CUTTER CALIFORNIAN; AND APPROPRIATION FOR CALIFORNIAN
"PASSPORT" PROMOTION ($500)
A-5 APPROVAL OF PURCHASE OF FIRE DEPARTMENT BREATHING APPARATUS
A-6 RESOLUTION SUPPORTING THE "GOVERNMENT SPENDING LIMITATION AND
ACCOUNTABILITY ACT" ON THE JUNE 1988 BALLOT
A-7 BOUNDARY LINE AGREEMENT AND SPECIAL ENCROACHMENT PERMIT FOR QUONSET
HUT LOCATED AT 540 EMBARCADERO (THOMAS, OWNER)
B. PUBLIC HEARINGS, REPORTS & APPEARANCES
B-1. PRESENTATION OF TORO CREEK ENVIRONMENTAL IMPACT REPORT, AND PUBLIC
COMMENT/REVIEW PERIOD
(over)
B-2 APPEAL OF PLANNING COMMISSION DENIAL OF REQUEST TO AMEND CONDITIONS OF
EXISTING CUP 34-84, REMOVAL OF A POLE SIGN (HEMPENIUS, APPELLANT)
B-3 1987 ANNUAL WATER REPORT REGARDING THE PIPELINE REPLACEMENT AND WATER
RETROFIT PROGRAMS, AND RECOMMENDATIONS FOR THE 1988 WATER ALLOCATION
PROGRAM AND OPERATING GUIDELINES
B-4 ORDINANCE NO. 317 PROHIBITING PUBLIC NUDITY
C. UNFINISHED BUSINESS
NONE
D. NEW BUSINESS
D-1 POLICY DETERMINATION ON PAST DUE RENTS ON LEASE SITE 30W-33W (MORRO
BAY FUEL DOCK, INC.
E. CLOSED SESSION
NONE
F. ADJOURNMENT
TO JOINT POWERS MEETING WITH CAYUCOS SANITARY DISTRICT, 13 JANUARY
1988, MORRO BAY CITY HALL CONFERENCE ROOM (6 PM)
COPIES OF STAFF REPORTS OR OTHER WRITTEN DOCUMENTATION
RELATING TO EACH ITEM OF BUSINESS REFERRED TO ON THIS
AGENDA ARE ON FILE IN THE OFFICE OF THE CITY CLERK AND
AVAILABLE FOR PUBLIC INSPECTION AND REPRODUCTION AT
COST.
K
0
MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING - JANUARY 11, 1988
VETERANS MEMORIAL HALL - 6:00 P.M.
Mayor Reddell called the meeting to order at 6:00 p.m.
ROLL CALL
PRESENT: Dale Reddell
Paul Donnelly
John Lemons
Jeff Odell
Rose Marie Sheetz
ABSENT: None
STAFF: Gary Napper
Judy Skousen
Dave Bugher
Alan Davis
Bill Farrel
Forrest Henderson
Nick Nichols
Ardith Davis
Horace Strong gave the invocation,
Allegiance.
PUBLIC COMMENT
Mayor
Councilmember
Councilmember
Councilmember
Councilmember
City Administrator
City Attorney
Associate Planner
Harbor Director
Comm. Development Dir.
Asst. to City Admin.
Public Works Director
City Clerk
and led the Pledge of
1. Charles Palmer requested water consumption data be pub-
licly available, with names removed to protect the privacy of in-
dividual water users.
2. Frank Thompson, 700 Pacific, complained about concealed
weapon permit fee information provided to him by the City
Administrator.
DECLARATION OF FUTURE -AGENDA ITEMS
1. Councilmember Odell requested an agenda item be sched-
uled to review Morro Bay's Land Use Plan, Chapter 7, Section D,
Sub -section 4 regarding energy uses in Morro Bay.
2. Councilmember Lemons indicated the Water Advisory Board
is meeting this week to discuss mandatory retrofit, and he would
like the benefit of their recommendations on this subject before
considering the Annual Water Report.
MINUTES - MORRO BATTY COUNCIL .
REGULAR MEETING - JANUARY 11, 1988
PAGE 2
MOTION: Councilmember Lemons moved Item B-3 be opened to the
public for comments, and the item be tabled until after
a report from the Water Advisory Board. The motion was
seconded by Councilmember Odell and carried, with Coun-
cilmember Sheetz voting no. (4-1)
A. CONSENT CALENDAR
A-1 CITY COUNCIL MINUTES OF THE REGULAR MEETING OF DECEMBER 28,
2 MEETING OF JANUARY
Mr. Napper recommended Council approve the minutes as submitted.
A-2 REJECTION OF LIABILITY CLAIM AGAINST CITY _(FRANKENSTEIN)
Mr. Napper recommended Council deny the claim, and authorize the
City Clerk to send the rejection notice.
A-3 REJECTION OF ALL BIDS ON BID PW87-09 (POLICE STATION RENOVA-
Mr. Napper recommended Council reject all bids for the project,
and authorize staff to re -assess project specifications and re -
advertise the project.
Councilmember Donnelly asked questions regarding why a late bid
was opened; Mr. Nichols responded, and Mr. Napper indicated that
occurrence was a primary reason to reject that bid.
A-4 RESOLUTION NO. 1-88 DECLARING
If\� A� LPIWAG
Mr. Napper recommended Council adopt Resolution No. 1-88, and al-
locate $500 from FY87-88 General Fund Contingency for the Pass-
port Program promotional.
Councilmember Donnelly requested the Resolution be read in its
entirety; Mr. Napper read Resolution No. 1-88.
A-5 APPROVAL OF PURCHASE OF FIRE DEPARTMENT BREATHING APPARATUS
Mr. Napper recommended Council authorize the single -source pur-
chase of 12 breathing apparatus from Pacific Safety Equipment Co.
in the amount of $18,480; and declare the existing 12 breathing
apparatus as property surplus to the City's needs.
A-6 RESOLUTION NO. 2-88 SUPPORTING THE "GOVERNMENT SPENDING LIM-
AN
Mr. Napper recommended Council adopt Resolution No. 2-88.
A
MINUTES - MORRO BATTY COUNCIL .
REGULAR MEETING - JANUARY 11, 1988
PAGE 3
A-7 BOUNDARY LINE AGREEMENT AND SPECIAL ENCROACHMENT PERMIT FOR
QUONSET HUT LOCATED AT 540 EMBARCADERO (THOMAS, OWNER)
Mr. Napper recommended Council approve the Boundary Line Agree-
ment, and authorize the Mayor and City Clerk to sign and record
the Agreement.
MOTION: Councilmember Lemons moved for approval of the Consent
Calendar. The motion was seconded by Councilmember
Donnelly and unanimously carried. (5-0)
B. PUBLIC HEARINGS, REPORTS & APPEARANCES
B-1 PRESENTATION OF TORO CREEK ENVIRONMENTAL IMPACT REPORT, AND
Mr. Nichols stated the City submitted an application in 1985 to
the State Water Resources Control Board (SWRCB) to appropriate
5,600 acre-feet of water per year from the Toro Creek underflow.
The State required an Environmental Impact Report be prepared to
evaluate the affects on withdrawal of water from that basin. The
EIR was prepared and the public review period began in October
1987. He stated Mel Willis of McClelland Engineers is present to
review the EIR; along with Tom Sheahan of Geraghty & Miller,
Inc., groundwater engineers. The information gathered supports
an amended application to extract 1,023 acre feet annually.
Mel Willis stated the City has applied for a permit to appropri-
ate water using a series of wells which will convey water by
pipeline to the City's water tanks. He noted a number of agen-
cies are involved in the permit process; therefore, the first
step had been to notice these agencies of the City's intention
and ask them what information they wanted included in the EIR in
order to make a determination on approving the application. The
City also consulted with other members of the public and inter-
ested property owners. He noted a number of questions the EIR
addresses and stated he will review those later. Council will
need to decide if the EIR adequately describes the consequences
of the project.
Tom Sheahan, Geraghty & Miller, gave some background on the
City's need for water. He noted the City's growth requires addi-
tional water supplies; this project is designed to meet the
City's immediate needs and is not a long-term solution. Mr.
Sheahan reviewed in detail several renderings from the EIR and
explained the consultant's recommendation to extract water from
the lower alluvial area. Using this basin means there will be no
affect on up -stream users; the only property owners affected by
the City's withdrawal of water from this basin will be Chevron
and Negranti. Mr. Willis then reviewed possible impacts of the
project and mitigating measures.
Council asked questions regarding the coastal stream diversion
project and its affect on this project. Mr. Nichols stated the
3
MINUTES - MORRO BA ITY COUNCIL •
REGULAR MEETING - UARY 11, 1988
PAGE 4
City is currently studying that aspect, but he does not have an-
swers at this time.
Mayor Reddell opened the hearing to the public for comments.
Scott Slater, a water rights attorney with the firm of Hatch and
Parent, stated he represents Michael Armstrong and a coalition of
upstream property owners in the Toro Creek Valley. He referred
to his correspondence dated December 30, 1987, and from Thomas
Stetson of Stetson Engineers dated December 31, 1987. He stated
his clients are concerned not all the facts are on the table and
cited 3 problematic areas. One is water availability; he re-
viewed figures from Mr. Stetson's letter which analyzes a 15 year
period comparing stream flow records with existing demand and il-
lustrating a shortfall for existing users. This does not include
City use or expanding agriculture uses.
Another problem is the issue of existing and future demand. The
land owners believe the EIR underestimates the total amount of
acreage that can be put to agriculture use. The EIR suggests 600
acres can be put to agriculture use, and estimates from the farm-
ers are approximately 1200 acres.
He questioned whether the City intends to depend upon Toro Creek
supplying 723 acre feet of water per year. If this is the case,
the City needs to address the affect of the project on agricul-
ture, and the true or hidden costs of the project. If the City
depends on the water and is faced with a shortage in the future,
it will have to impose a moratorium on itself, or tell farmers
they cannot expand or shut down wells. The latter approach leads
to inverse condemnation and damages. He advised as soon as
shortage becomes a certainty, riparian owners along Toro Creek
should seek a Declaration of Rights to protect their rights
against proscription or interference from the City.
The land owners suggest the City find out whether the water is
available, take a look at issues relating to the amount of agri-
culture properties that can be used effectively, and consider
what the consequences of depending upon this supply at all costs
is going to be.
Councilmember Lemons asked if there was anything in his remarks
different from the letter he has submitted and, if so, would he
submit that in writing. Mr. Slater stated his comments were a
summary of correspondence already received by the City.
Mike Cannon, District Supervisor for Chevron, stated Chevron
would like to cooperate with the City in the development of the
project. He noted he met with City staff today to discuss the
written comments submitted by Chevron. Basically, they are con-
cerned how much, if any, water is available and how the extrac-
tion of the water will affect Chevron and Chevron's long and
short term use. Also, after evaluation of the EIR, they feel
there are many areas of concern which are not adequately ad-
4
MINUTES - MORRO BA0ITY COUNCIL •
REGULAR MEETING - JANUARY 11, 1988
PAGE 5
dressed. Before endorsement of the project, they would like to
have those items addressed. He stated Chevron believes the con-
cerns they have will impact the economics and feasibility of the
project and the City should consider these when weighing the
costs versus the benefits.
Mike Armstrong, a rancher upstream from the proposed project,
stated the farmers want to make sure there are no impacts on them
as far as their future use is concerned. He stated the City's
track record in this regard is not good and cited conflicts in
Morro Creek. He said besides Negranti being an immediately af-
fected party, there is Albert Souza who is downstream from the
project and he diverts water out of the creek directly. He sug-
gested an agreement between the ranchers, farmers and City that
will guarantee the farmers the City will not inflict damages
whatsoever as far as water use, condemning any water use or ask-
ing them to shut -down their water in the future so the farmers
can go ahead and continue their plans for expansion. They don't
believe the numbers suggested by the firm hired by the City are
accurate; very inaccurate. He said there is a gentleman present
who will substantiate his claim the City has tried to shut -down
upstream users wells. He said other water alternatives are
available, and wells are not the project.
Bob Stollard, owner of a large avocado ranch on Highway 41 out-
side of Morro Bay, cited a letter written by Mr. Nichols to the
California Coastal Commission, May 7, 1985 concerning the City's
reaction to his request for a permit to complete their develop-
ment of the avocado ranch. He read the last paragraph of the
letter which asks a condition be placed on granting the applica-
tion that if the City's water quality decreases as a result of
seawater intrusion, the applicant shall cease pumping from Morro
Creek basin until the water quality improves to an acceptable
level.
Additionally Mr. Stollard asked Figure 6 from the EIR, the Inter-
pretative Stream Profile of Toro Creek Basin, be placed on the
overhead. He stated it is presumptuous of the people who pre-
pared the EIR to indicate the bed rock is something that is wa-
terproof, that there are no fractures or anything that would al-
low the seawater to intrude. The other so-called barrier is
again part of the Franciscan formation, or the bedrock that is
underlaying the Franciscan formation is of such a nature not to
allow water to move down through the groundlayer, through the so-
called barrier. Any extraction in the so-called well field will
impact the upper area; you are just putting that many more straws
in the same glass.
Charles Palmer, engineer, began to ask Mr. Stollard some ques-
tions regarding stream gauges; Mayor Reddell asked Mr. Palmer to
address his remarks to the Council. Mr. Palmer commented there
was no discussion from the consultant as to what happens during
drought seasons. The City and the farmers need to plan for when
the rainfall is short.
3
MINUTES - MORRO BATTY COUNCIL •
REGULAR MEETING - JANUARY 11, 1988
PAGE 6
Randy Ruff, Vice President of Citizens' Planning Association of
San Luis Obispo County, read a statement citing deficiencies in
the EIR. The letter is dated January 11, 1988 and is submitted
into the record. It emphasizes the need for a water management
and land use plan for all three basins; Morro, Chorro, and Toro.
It also lists 9 deficiencies in the EIR and states it does not
meet CEQA or Coastal Act requirements.
Bruce Risley, 540 Piney Way, noted a growth management measure
passed by the voters in 1984 known as Measure F. He believed the
draft EIR is remiss in not addressing that subject, and stated
the people of Morro Bay clearly instructed the City Council to
conduct their water search in the context of this growth control
ordinance. A goal of the measure is a population of 12,200 by
the year 2,000. If Council adopts a revised EIR and it goes be-
fore the State, the Council should emphasize to the State the
wishes of the people of Morro Bay for growth control.
Mayor Reddell closed the hearing to the public.
Councilmember Odell asked if there was still time to prepare a
written comment on the EIR. Mr. Nichols stated the deadline was
January 4th, but it would be accepted if Councilmember Odell
could get it in within the next day or two.
Councilmember Sheetz asked if staff could consult with the upland
farmers to find out what their realistic agriculture expansion
might be; Mr. Nichols agreed that could be done.
Councilmember Sheetz asked
to place wells on Chevron
Chevron has not agreed to
currently negotiating with
like to provide additional
plans, they should deliver
cluded in the report.
about Chevron's agreement for the City
property, and Mr. Nichols responded
anything at this point. The City is
them. He noted if the farmers would
information regarding their expansion
it by January 18th so it can be in-
Councilmember Donnelly asked how accurate the Interpretative
Stream Profile is, and Mr. Sheahan stated it is not to scale, but
is quite accurate in depicting the differences between the upper
and lower alluvial basins. Councilmember Donnelly and Mayor
Reddell asked questions regarding the test hole drilled, to which
Mr. Sheahan responded.
Councilmember Donnelly asked about the extent of salt -water in-
trusion. Mr. Sheahan stated he knows it is not beyond a certain
point; it is not any further than the lower narrows and may be
closer to the ocean.
Mr. Napper stated this matter would return for Council final ap-
proval on February 22nd.
3
MINUTES - MORRO BATTY COUNCIL •
REGULAR MEETING - JANUARY 11, 1988
PAGE 7
Councilmember Odell asked about the concept of a water management
plan for the 3 watersheds. Mr. Nichols stated that should be a
joint effort between the City, County, and landowners in the
basins.
B-2 APPEAL OF PLANNING COMMISSION DENIAL OF REQUEST TO AMEND
Mr. Farrel reviewed the 1984 application for remodeling work at
the Travelodge Motel and conditions of approval. One of the con-
ditions, to eliminate one of the two pole signs within 5 years,
was appealed to and denied by the Council in March 1985. No work
was done and the CUP expired. The applicant again presented his
proposal to the Planning Commission in September 1987 requesting
relief from the requirement to remove one of the pole signs; the
Planning Commission denied the request, and the applicant has ap-
pealed to the Council.
Mr. Farrel reviewed the history of the City's sign ordinance in-
cluding a sign survey conducted in 1973 noticing the land owner
in 1975 his signs violated the sign ordinance and giving him 10
years to remove them. Although the time period has expired to
remove the signs, the City can still enforce the provision. It
is recommended the condition requiring the pole sign be stricken
from the CUP, since current ordinances allow the City to require
removal of the sign.
Mayor Reddell stepped down from consideration of this item be-
cause of a conflict of interest; Mayor Pro Tem Donnelly chaired
the meeting.
Mayor Pro Tem Donnelly opened the hearing to the public for com-
ments; there were no comments and the hearing was closed.
Councilmember Sheetz stated she was on the Planning Commission
when this item came before them, and on the Council when it pre-
viously came before them and does not believe the request for an
additional 5 years to eliminate the sign should be allowed. She
believes the City and the party should be in conformance with the
Code.
Mr. Farrel noted the sign is not in conformance with the current
ordinance, and that should be sufficient to bring compliance
without the condition being included in the CUP.
MOTION: Councilmember Lemons moved Council grant CUP 38-84
(Amended) as previously issued without Special Condi-
tion No. 18 (reference to pole sign). The motion was
seconded by Councilmember Sheetz and carried with Mayor
Reddell abstaining. (4-0-1)
7
MINUTES - MORRO BA ITY COUNCIL
REGULAR MEETING - UARY 11, 1988
PAGE 8
Mr. Napper stated staff will return with a formal resolution for
their adoption at the next meeting. Councilmember Lemons re-
quested a review of the 1986 Sign Ordinance at a later date.
B-3 1987 ANNUAL WATER -REPORT REGARDING THE -PIPELINE REPLACEMENT
AND WATER RETROFIT PROGRAMS,- AND RECOMMENDATIONS FOR THE
1988 WATER ALLOCATION PROGRAM AND OPERATING GUIDELINES
Dave Bugher, Associate Planner, reviewed the water recovery and
retrofit programs for 1987 as outlined in his staff report. Last
year 54 single family residential units, 16 multi -family units,
and minor commercial and industrial developments were awarded wa-
ter. He noted staff is still unable to conclusively determine
the actual water savings resulting from the pipeline replacement
program; however, the benefits derived from upgrading the City's
water pipeline structure encourage continuance of the program.
For 1988, staff is recommending Council allow 77 residential
units be approved; 27 to be multi -family and 50 to be single fam-
ily residences. He explained the Peoples Self -Help Housing se-
nior project will be awarded half of their project's units (20)
in 1988, with the other half (20) to be awarded in 1989. Mr.
Bugher stated he also recommends Council award no equivalencies
accrued through the pipeline replacement program, and that Coun-
cil modify the retrofit formulas to require 22 residences to be
retrofitted for each new single family residence.
Bill Farrel reviewed recommended clarifications for 1988 includ-
ing Placement on the Water Waiting List, Maintenance of Water
Waiting List, Quarterly Water Award System, and Building Plan
Checking. He also reviewed Planning Commission and Water Advi-
sory Board recommendations, particularly their suggestions re-
lated to retrofit units for water equivalencies.
Mayor Pro Tem Donnelly noted Mayor Reddell has also stepped down
from consideration on this item because of a conflict of
interest.
Mayor Pro Tem Donnelly opened the hearing to the public for com-
ments, noting Council previously tabled this item to the next
meeting in order to receive comments from the Water Advisory
Board.
Michael Krout, attorney representing Pierce Construction, stated
his client disagreed with the 2-year list believing it would pre-
empt people who could not afford to purchase their property now.
He also believed the proposal to place 15 applicants at the top
of the 1988 list because the 1987 list was cut off and closed af-
ter they submitted their application was inappropriate. Also,
individual contractors should be allowed to submit as many appli-
cations as they were able. He noted a number of contractors rep-
resent individual property owners who are waiting to receive wa-
ter in order to build their homes.
F,
MINUTES - MORRO BA ITY COUNCIL •
REGULAR MEETING UARY 11, 1988
PAGE 9
Wayne Adams, 350 Tulare, and Ron Kessling encouraged Council to
approve prioritizing the 15 applications left over from 1987.
Craig Meltzner, Peoples' Self -Help Housing, agreed with the staff
recommendation as well as Water Advisory Board and Planning Com-
mission recommendations related to their affordable housing pro-
ject; he encouraged Council to approve the water allocations for
the 40-unit senior housing project in Morro Bay.
John Heimal, 2998 Cedar, suggested Council limit big corporations
coming into Morro Bay and tieing up a lot of building permits.
Tom Mayberry, 810 Luisita, asked Council to approve the program
now; he was in favor of the 2-year list, but doesn't want a 30-
day wait period before awarding the first water in 1988.
Nelson Sullivan disagreed with the basis for the whole program,
and told Council a Water Management Plan should be adopted before
continuing with the current program. He said the whole program
is based upon an outlaw and uncertified plan, and all these plans
are subject to skepticism.
Mayor Pro Tem Donnelly noted Council had previously voted to
table this item; Mr. Napper stated the item would return Ito Coun-
cil on January 25th.
Council recessed from 8:20 p.m. to 8:38 p.m.
B-4 ORDINANCE NO. 317 PROHIBITING PUBLIC NUDITY
Mayor Reddell resumed chairing the meeting.
Mr. Napper reviewed the Ordinance prepared at request of Council;
it prohibits nudity on public property or in public view and sets
forth fines for violations.
Mayor Reddell opened the public hearing for comments; there were
no comments and the hearing was closed.
MOTION: Councilmember Sheetz moved Ordinance No. 317 be read by
title and number only. The motion was seconded by
Councilmember Odell and unanimously carried. (5-0)
Mr. Napper read Ordinance No. 317 by title and number only.
MOTION: Councilmember Sheetz moved for approval of the first
reading of Ordinance No. 317. The motion was seconded
by Councilmember Odell and unanimously carried. (5-0)
C. UNFINISHED BUSINESS
NONE
7
MINUTES - MORRO BA ITY COUNCIL
JA•
REGULAR MEETING - NUARY 11. 1988
PAGE 10
D. NEW BUSINESS
D-1 POLICY
Alan Davis reviewed the history of the rent problem on this lease
site including the City's failure to increase the rent according
to the lease for a 16 year period. When this omission was dis-
covered in 1986, a property appraisal was made to bring the lease
rents into compliance. Morro Bay Fuel Dock, comprised of local
fishermen, appealed to Council for relief of the increased rents,
and Council directed staff to prepare a commercial fishing indus-
try discount rent for consideration. In the interim, the Fuel
Dock was charged $5,000 annually until a decision was made.
Council has not approved a commercial fishing discount, and Morro
Bay Fuel Dock refuses to convert to a new City Master Lease or
bring their payments in compliance with their current lease.
Past due rents are currently $12,578.78 (without interest); the
new annual rent is $9,300 higher than their annual rent of $2,474
paid from 1970 to 1986.
He noted the City has installed a silt collection box on the
storm drain and paid for dredging operations to remove accumu-
lated siltation because of complaints by the Fuel Dock they were
unable to use their lease site to capacity because of these prob-
lems. The cost of these improvements has been $15,000 of City
monies. A request from Attorney Ray Biering representing the
Fuel Dock was received on Friday to postpone this item to allow
him additional time to work the matter out with City staff.
Mr. Napper noted this is the first time they have received indi-
cation from the Fuel Dock they are willing to discuss the matter.
Council asked various questions; Councilmember Lemons asked how
they could not pay their rents given the lease language. Mr.
Napper recommended Council continue the matter to the next meet-
ing as requested by Morro Bay Fuel Dock's attorney. Council
concurred.
ADJOURNMENT
MOTION: Councilmember Odell moved the meeting adjourn to
January 13, 1988 at 7:00 p.m. in the City Hall Confer-
ence Room for a joint meeting with the Cayucos Sanitary
District Board of Directors. The motion was seconded
by Councilmember Sheetz and unanimously carried. (5-0)
The meeting adjourned at 9:05 p.m.
Recorded by:
ARDITH DAVIS
City Clerk
10
0
MORRO BAY 0
CITY COUNCIL
AGENDA
ADJOURNED REGULAR MEETING - JANUARY 5, 1988
CITY HALL CONFERENCE ROOM - 6:00 P.M.
ROLL CALL
PUBLIC COMMENT PERIOD - Members of the audience wishing to address the
Council on matters other than scheduled hearing items may do so when
recognized by the Mayor, by standing and stating their name and
address. Comments should normally be limited to three minutes.
A. NEW BUSINESS
A-1 INTERVIEW APPLICANTS FOR VARIOUS ADVISORY BOARDS
B. UNFINISHED BUSINESS
B-1 REFINEMENT OF CITY PROJECT APPLICATION TO COUNTY FOR BLOCK GRANT
MONIES UNDER SB 959 (COASTAL RESOURCES AND ENERGY ASSISTANCE
PROGRAM)
C. ADJOURNMENT
0
MINUTES - MORRO BAY CITY COUNCIL
ADJOURNED REGULAR MEETING - JANUARY 5, 1988
CITY HALL CONFERENCE ROOM - 6:00 P.M.
Mayor Reddell called the meeting to order at 6:00 p.m.
ROLL CAT,T.
PRESENT: Dale Reddell
Paul Donnelly
John Lemons
Jeff Odell
Rose Marie Sheetz
ABSENT: None
STAFF: Gary Napper
Judy Skousen
Alan Davis
Steve Wolter
PUBLIC COMMENT
None
A. NEW BUSINESS
Mayor
Councilmember
Councilmember
Councilmember
Councilmember
City Administrator
City Attorney
Harbor Director
Recreation & Parks Dir.
A-1 INTERVIEW APPLICANTS FOR VARIOUS ADVISORY BOARDS
a. Downtown Sidewalk Sales Committee
Mr. Napper explained the Committee is to consist of 5 members - 2
Participating Downtown Merchants; 1 Non -Participating Downtown
Merchant; 1 Civic Group Representative Concerned with Aesthetics;
and 1 Public Member -At -Large. There are 5 applicants for the po-
sition and all were present except Linna Thomas. Mr. Napper
noted she was unable to attend, but is still interested in being
appointed to the Committee.
MOTION: Councilmember Sheetz moved Robert Finley, John Baker,
Michael Carpenter, William Shaffer, and Linna Thomas be
appointed to the Downtown Sidewalk Sales Committee.
The motion was seconded by Councilmember Donnelly, and
unanimously carried. (5-0)
b. Refuse Board and Cable Television Board
Mr. Napper stated there are 2 applicants and 2 vacancies on the
Refuse Board; and 4 vacancies and 3 applicants for the TV Board.
MINUTES - MORRO BA*ITY COUNCIL •
ADJOURNED REGULAR MEETING - JANUARY 5, 1988
PAGE 2
MOTION: Councilmember Sheetz moved Dale Lichty and Ardis
Schroeder be appointed to the Refuse Board; and Kim
Baez, Peter Mather, and Bill Olson be appointed to the
TV Board. The motion was seconded by Councilmember
Odell and unanimously carried. (5-0)
CLOSED SESSION
MOTION: Councilmember Sheetz moved Council adjourn to Closed
Session. The motion was seconded by Councilmember
Lemons and unanimously carried. (5-0)
Mayor Reddell announced Couhcil is adjourning to Closed Session
to consider pending litigation in accordance with Government Code
Section 54956.9(a) in the matters of Keyoto-Natalie vs. City of
Morro Bay, and Qualman Oyster Co. vs. City of Morro Bay.
The meeting adjourned to Closed Session at 6:10 p.m. and returned
to regular session at 6:35 p.m.
C. Recreation and Parks Commission
Mr. Napper stated there are 6 applicants for the one vacancy cre-
ated as a result of a resignation. He noted the term for this
position expires December 31, 1990.
Council interviewed Charles Clarke and Jim Olson for the vacancy.
Applicant Nancy Castle notified Council by letter she wished to
withdraw from consideration, and applicants Melvin Less, Meg
Bennett, and Jim Rodgers were unable to attend the interviews but
requested their applications be considered.
MOTION: Councilmember Lemons moved Charles Clarke be appointed
to the unexpired term on the Recreation and Parks Com-
mission. The motion was seconded by Councilmember
Donnelly and unanimously carried. (5-0)
L]
Im
UNFINISHED BUSINESS
Harbor Director Alan Davis explained research and data compiled
on possible dredge project for grant monies under SB 959 monies.
An optimum project would dredge 1,600,000 cubic yards at the har-
bor entrance, with project cost estimated at $4-$6 million. He
was uncertain at this point what scope of project the U.S. Army
Corps of Engineers has in mind in their Reconnaissance -Level
Study when they recently estimated project cost to dredge en-
trance would be $1.2 million.
Council and staff discussed the harbor entrance dredge project
and alternative projects at length.
MINUTES - MORRO BA ITY COUNCIL 46
ADJOURNED REGULAR MEETING - JANUARY 5, 1988
PAGE 3
MOTION: Councilmember Lemons moved to authorize a City project
application for SB 959 block grant monies in the amount
of $1.2 million for the purpose of dredging the Morro
Bay Harbor entrance in conjunction with the U.S. Army
Corps of Engineers on an emergency project basis in the
Summer of 1988. The motion was seconded by Councilmem-
ber Donnelly and unanimously carried. (5-0)
A-1 INTERVIEW APPLICANTS FOR VARIOUS ADVISORY BOARDS (cont.)
d. Water Advisory Board
Mr. Napper stated there are 3 vacancies on the Water Board and 6
people have applied. He noted Phillip Beaton was unable to at-
tend the interviews, but wished to be considered. The other ap-
plicants are Jonathan Port, Richard Kitzman, Kenneth Powell, Gabe
Rossetti, and Ken Maloney.
MOTION: Mayor Reddell moved Richard Kitzman, Ken Powell, and
Ken Maloney be appointed to the vacancies on the Water
Advisory Board; and, to appoint Gabe Rossetti to the
unexpired term of office on the Cable TV Board. The
motion was seconded by Councilmember Sheetz and unani-
mously carried. (5-0)
MOTION: Councilmember Odell moved a Council Policy be estab-
lished that vacancies on City advisory boards shall al-
ways be advertised for applications for appointment,
and that no citizen applications to advisory boards
shall remain on -file for future consideration. The mo-
tion was seconded by Mayor Reddell and unanimously
carried. (5-0)
ADJOURNMENT
MOTION: Councilmember Donnelly moved the meeting be adjourned.
The motion was seconded by Councilmember Odell and
unanimously carried. (5-0)
The meeting adjourned at 8:15 p.m.