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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 24, 1991
VETERANS MEMORIAL HALL - 6:00 P.M.
209 SURF ST., MORRO BAY,CA
ROLL CALL
INVOCATION
PLEDGE OF ALLEGIANCE
PRESENTATIONS: 1) RESOLUTION TO FIRE CHIEF ZERR UPON RETIREMENT
2) WELCOME HOME COMMITTEE FOR THE 649TH MILITARY POLICE
COMPANY AT CAMP SAN LUIS OBISPO
PUBLIC COMMENT PERIOD - Members of the audience wishing to address the
Council on City business matters (other than Public Hearings items under
Section D) may do so at this time. 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 (CITY COUNCIL)
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 PLANNING COMMISSION MEETING OF JUNE 3,
1991, THE REGULAR MEETING OF JUNE 10, 1991, AND THE SPECIAL MEETING OF
JUNE 13, 1991
A-2 EXPENDITURE REPORT - MAY 1991
A-3 STATEMENT OF INVESTMENTS - MAY 1991
A-4 WATER SUPPLY STATUS REPORT
A-5 REJECTION OF LIABILITY CLAIM AGAINST THE CITY (WHITE) PULLED
A-6 RESOLUTION NO. 70-91 APPROVING CONTRACT WITH COUNTY OF SAN LUIS OBISPO
FOR ANIMAL REGULATION AND CONTROL SERVICES IN FISCAL YEARS 1991-94
A-7 PROCLAMATION DECLARING JULY 1991 AS "RECREATION AND PARKS MONTH"
A-8 REJECTION OF LIABILITY CLAIM AGAINST THE CITY (M/M JOHNSON)
04
A-9 RESOLUTION NO. 72-91 COMMENDING FIRE CHIEF ZERR FOR HIS DEDICATED
SERVICE TO THE CITY OF MORRO BAY UPON RETIREMENT
A-10 FINAL APPOINTMENT OF PLANNING COMMISSION
A-11 REJECTION OF LIABILITY CLAIM AGAINST THE CITY (KOZIEL)
A-12 AUTHORIZATION TO LEVY AND COLLECT PARKING -IN -LIEU FEES ON PLANNING
COMMISSION APPROVED TWO STORY RESTAURANT AT 630 EMBARCADERO (CUP 01-
91/CDP 01-91R; HARADA'S RESTAURANT)
A-13 REJECTION OF LIABILITY CLAIM AGAINST THE CITY (OLAVSEN)
B. UNFINISHED BUSINESS
B-1 ORDINANCE NO. 400 ANNOUNCING FINDINGS AND ADOPTING AMENDMENT TO TITLE
17 OF THE MORRO BAY MUNICIPAL CODE (WILLIAMS BROTHERS PROPERTY;
GPA/ZOA/LCP 01-91) SECOND READING/ADOPTION (MEASURE H IMPLEMENTATION)
C. NEW BUSINESS
C-1 RESOLUTION NO. 71-91 APPROVING AGREEMENT TO PURCHASE TAX -DEFAULTED
LAND FOR PUBLIC PURPOSES OF INSTALLING NEW WATER DISTRIBUTION BOOSTER
PUMP STATION (190/198 MINDORO)
C-2 RESOLUTION NO. 74-91 APPROVING LEASE AGREEMENTS WITH MORRO BAY MARINA,
INC. FOR LEASE SITES 71-74W, 75-77W, AND EXT. 17N (601-699
EMBARCADERO; WATERMAN CENTER PROJECT)
C-3 RESOLUTION NO. 73-91 APPROVING EXTENSION OF DEADLINES FOR DEMOLITION
OF EXISTING BUILDING ON LEASE SITE 51/51W AND EXTENSION OF DEADLINES
FOR CESSATION OF RESIDENTIAL USES ON LEASE SITES 50/50W AND 51/51W
(DBA ASSOCIATED DIVERS; 471/495 EMBARCADERO)
D. PUBLIC HEARINGS. REPORTS & APPEARANCES
D-1 ORDINANCE NO. 401 AMENDING UNREINFORCED MASONRY (URM) BUILDING MITIGA-
TION PROGRAM TO EXTEND FILING DEADLINE FOR PLANS TO REHABILITATE OR
DEMOLISH UNSAFE STRUCTURES (INTRODUCTION/FIRST READING)
D-2 COUNCILMEMBER REQUEST FOR CONSIDERATION OF BALLOT MEASURE FOR CITY
SUBSCRIPTION TO STATE WATER PROJECT, COASTAL BRANCH
D-3 RESOLUTION NO. 69-91 ADOPTING REVISED CITY MASTER FEE SCHEDULE FOR
FISCAL YEAR 1991-92
D-4 RESOLUTION NO. 68-91 ADOPTING CITY BUDGET FOR FISCAL YEAR 1991-92
D-5 HEARING ON PERFORMANCE AND COMPLIANCE REVIEW OF CABLE TELEVISION
FRANCHISEE, SONIC CABLE TV OF SAN LUIS OBISPO
D-6 REPORT ON FINAL PROJECT COSTS TO ABATE NUISANCE OF ILLEGAL EXCAVATION
AT 2590 LAUREL STREET, AND AUTHORIZATION TO LEVY LIEN AND COLLECT
PROJECT EXPENSES (PULLED)
2
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E. CLOSED SESSION
NONE
F.
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.
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MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING - JUNE 24, 1991
VETERANS MEMORIAL HALL - 6:00 P.M.
Mayor Sheetz called the meeting to order at 6:00 p.m.
PRESENT: Rose Marie Sheetz
John Baker
Ben Luna
Susan Mullen
Tom Wuriu
ABSENT: None
STAFF: Gary Napper
Judy Skousen
Rick Algert
Louise Burt
Ardith Davis
Don Funk
Forrest Henderson
Jeff Jones
Nick Nichols
Steve Wolter
Bernie Zerr
Horace Strong gave the invocation
Allegiance.
Mayor
Councilmember
Councilmember
Councilmember
Councilmember
City Administrator
City Attorney
Harbor Director
Finance Director
City Clerk
Assoc. Planner
Asst. City Admin.
Acting Fire Chief
Public Works Dir.
Rec. & Parks Dir.
Fire Chief
and led the Pledge of
FOR HIS DEDICATED SERVICE TO THE CITY OF MORRO BAY
UPON RETIREMEN
Mayor Sheetz read the Resolution and Chief Zerr received a stand-
ing ovation. Chief Zerr stated it has been a great honor to be
Fire Chief of Morro Bay for 13 years. He commended the people in
the Fire Department for their dedication in protecting the commu-
nity from fire, and those involved in advanced life support ser-
vices. He praised all City employees, and stated the Department
Heads work under unbelievable stress and pressure to meet the
needs of the community. He also thanked his wife for her support
at home.
17FI�A�•Z•Z•74��I�I.Y_V
1. Charles Palmer stated Council should review and change
the City's Water Management Plan which has not been updated since
1982.
MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING - JUNE 24, 1991
PAGE 2
2. Ray Kaltenbach, 473 Sicily, referred to an article in
an Auto Club booklet regarding the town of Ferndale which has re-
mained unchanged since 1882; a town does not die if no build -out.
3. Mary Phillips criticized the installation of a desal
plant without first obtaining an EIR for the project. She has
been in contact with the State, and there are information prob-
lems with desal the Council is not getting out to the public.
None.
A.
A-1 CITY COUNCIL MINUTES OF THE PLANNING COMMISSION MEETING OF
JUNE 3. 1991, THE REGULAR MEETING OF JUNE 10, 1991, AND THE
SPECIAL MEETING OF JUNE 13, 1991
Mr. Napper recommended Council approve the minutes as submitted.
A-2 EXPENDITURE REPORT - MAY 1991
Mr. Napper recommended Council adopt the Expenditure Report.
A-3 STATEMENT OF INVESTMENTS - MAY 1991
Mr. Napper recommended Council approve the Statement of
Investments.
A-4 WATER SUPPLY STATUS REPORT
Mr. Napper recommended Council receive the report for file.
A-5 REJECTION OF LIABILITY CLAIM AGAINST THE CITY
P• 0q'f•]+Wk0U*N0`.[* i .SN:C�3K9t�4ci:lf �i�4:�•S9�f;Y_4'�•]_7:�:
recommendedLUIS OBISPO FOR ANIMAL REGULATION AND CONTROL SERVICES IN
FISCAL YEARS 1991-94
Fir. Napper Council adopt
DECLARINGA-7 PROCLAMATION
ON AND PARKS
-
MONTH"
Napper. .-. Council authorize the Mayor to sign the
0
MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING - JUNE 24, 1991
PAGE 3
A-8 REJECTION OF LIABILITY CLAIM AGAINST THE CITY (M/M JOHNSON)
Mr. Mapper recommended Council reject the claim, and authorize
the City Clerk to send the denial notice.
A-9 RESOLUTION NO, 72-91 COMMENDING FIRE CHIEF ZERR FOR HIS
DEDICATED SERVICE TO THE CITY OF MORRO BAY UPON RETIREMENT
Mr. Mapper recommended Council adopt Resolution No. 72-91.
A-10 FINAL APPOINTMENT OF PLANNING COMMISSION
Mr. Mapper recommended Council appoint the Planning Commission
and set their terms to expire as follows: Chuck Reasor (31 Decem-
ber 1992), Janice Peters (31 December 1993), Howard Smith (31
December 1993), Ernest Maltby (31 December 1994), and Bernard
Melvin (31 December 1994).
A-11 REJECTION OF LIABILITY- CJ AIM AGAINST THE C
Mr. -Mapper recommended Council reject the claim, and authorize
the City Clerk to send the denial notice.
A-12 AUTHORIZATION TO LEVY AND COLLECT PARKING -IN -LIEU FEES ON
PLANNING COMMISSION APPROVED TWO STORY RESTAURANT AT 630
EMBARCADERO (CUP 01-91%CDP 01-91R; HARADA'S RESTAURANT)
Mr. Mapper recommended Council authorize acceptance of parking
in -lieu fees in the amount of $24,000 for six parking spaces.
A-13 REJECTION OF LIABILITY CLAIM_AGAINST THE CITY (OLAVSEN)
Mr. Mapper recommended Council reject the claim, and authorize
the City Clerk to send the denial notice.
Councilmember Wuriu requested Item A-6 be pulled for separate
discussion.
MOTION: Councilmember Mullen moved for approval of the Consent
Calendar with the exception of Item A-6. The motion
was seconded by Councilmember Luna and unanimously
carried. (5-0)
A-6 RESOLUTION NO, 70-91 APPROVING CONTRACT WITH COUNTY OF SAN
LUIS OBISPO FOR ANIMAL REGULATION AND CONTROL SERVICES IN
FISCAL YEAR 1991-92
Councilmember Wuriu asked if the Agreement deals with the licens-
ing of cats? Mr. Mapper stated no. Mayor Sheetz said the Board
of Supervisors has been discussing the subject, but it has not
been included in the Agreement.
MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING - JUNE 24, 1991
PAGE 4
MOTION: Councilmember Baker moved for the approval of Item A-6.
The motion was seconded by Councilmember Wuriu and
unanimously carried. (5-0)
Mr. Napper stated this is the second and final reading of the
Ordinance implementing Measure H. It will be forwarded to the
Coastal Commission and will become effective upon certification
by that body.
MOTION: Councilmember Wuriu moved Ordinance No. 400 be read by
title and number only. The motion was seconded by
Councilmember Mullen and unanimously carried. (5-0)
Mr. Napper read Ordinance No. 400 by title and number only.
MOTION: Councilmember Luna moved for the adoption of the second
and final reading of Ordinance No. 400. The motion was
seconded by Councilmember Wuriu and unanimously
carried. (5-0)
Mr. Nichols stated the County annually advises public agencies of
tax defaulted property; these agencies have first opportunity to
obtain these properties if a need is demonstrated and if the
property owner does not redeem the property by paying back taxes.
Mr. Nichols said one parcel the City is interested in is 2,250
sq.ft. located at 190/198 Mindoro; it can be purchased for $150.
The property could be used to relocate an existing booster pump
facility in the water distribution system. He noted the pumping
line from the Elena Pressure Zone to the Blanca Tanks runs right
through this property.
Councilmember Luna asked what impact on neighboring property may
result if a booster pump is placed at this location? Mr. Nichols
stated there are two single family residences adjacent to this
parcel. Because the parcel is next to the Highway, he believes
the traffic will drown -out any noise from the booster pump. In-
sulation and landscaping would be used to buffer any pump noise.
MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING - JUNE 24, 1991
PAGE 5
Councilmember Luna asked when the property owners will be noti-
fied the City intends to use the property? Mr. Nichols states
the County does the notification process. He said it is a
lengthy process and the property owner has until November 1991 to
redeem his property.
Councilmember Wuriu questioned whether this is an appropriate use
in R-1 zoning. Mr. Nichols responded there is a booster pump in
the front yard of a residence on Vashon and the property owner
has never complained. There were some complaints about the pump
on Elena Street, but his department took steps to mitigate the
noise and complaints have ceased.
MOTION: Councilmember Luna moved for the adoption of Resolution
No. 71-91. The motion was seconded by Councilmember
Baker and unanimously carried. (5-0)
Mr. Algert stated a project for these lease sites was approved by
Council in 1989, and negotiations for new leases began. The
result is two leases; one for Lease Sites 71-74W, and one for
Lease Sites 75-77W and Ext. 17N. Mr. Algert reviewed the signif-
icant terms of the lease agreements, and financial remuneration
to the City. He noted the City reviewed how other public agen-
cies, such as San Diego, Oceanside and Ventura handle similar
investment situations. Morro Bay Marina plans to spend in excess
of $3.2 million on the development which indicates a 50-year
lease term is justified. One of the special conditions allows
the City and Tenant to re -negotiate the lease rent after 22
years.
Mr. Alpert recommended Council amend the Resolution approving the
leases to include justification for the 50-year lease as follows:
"Whereas, Tenant hereby commits to investing in excess of $3 mil-
lion in improvements to the lease site; and Whereas, in consider-
ation of Tenant's proposed investment, agreement to terminate
previous lease and Tenant's proposed improvement to City Tide-
lands grant lands, the City does hereby find that in this case a
50-year lease term is merited."
Councilmember Mullen asked if the City is setting a precedent by
allowing a 50-year term? Ms. Skousen stated this is a large and
unique lease site, and is a one-time decision to break from the
City's policy of 30-year lease sites. The amending language for
the Resolution indicates Council's intention this does not set a
precedent.
Councilmember Wuriu stated he is reluctant to approve a 50-year
lease and will vote in favor this time only because of the rent
MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING - JUNE 24, 1991
PAGE 6
re -negotiation clause after 22 years in the leases. He asked if
the rent negotiations go to arbitration, is it binding? Mr.
Algert stated yes.
MOTION: Councilmember Baker moved for approval of Resolution
No. 74-91 as amended. The motion was seconded by Coun-
cilmember Luna and unanimously carried. (5-0)
Mr. Algert stated the Lessee has applied for City permits to con-
vert the existing buildings on these lease sites to a motel use.
Pending approval of the permits and re -negotiation of the leases,
staff recommends an extension be granted to cease the residential
use and demolish an existing building on these sites.
MOTION: Councilmember Wuriu moved for the adoption of Resolu-
tion No. 73-91. The motion was seconded by Councilmem-
ber Luna and unanimously carried. (5-0)
Consideration of Public Hearings items began at 6:39 p.m.
Don Funk, Associate Planner, stated the proposed Ordinance
extends the one year compliance date to file plans to July 1992;
and, makes less stringent the requirement which establishes the
amount of steel reinforcement necessary in existing building
walls to exempt them from the URM ordinance. He noted staff is
currently reviewing the URM requirements and Uniform Code for
Building Conservation which may lead to additional technical
changes at a future date.
Councilmember Luna asked what the technical changes will be? Mr.
Funk stated it is too early to tell; the requirements just came
out and the Building Official is reviewing them. Councilmember
Luna asked when building owners will be informed of the changes?
Mr. Funk stated as soon as they are presented to the Council.
Mayor Sheetz opened the hearing to the public for comments.
Bob Finley, Chairman of the URM Committee of the Chamber of Com-
merce and property owner of a URM building, encouraged Council to
MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING - JUNE 24, 1991
PAGE 7
change the date for final compliance. He said the State only
requires the City to identify the buildings; the time frame is up
to Council. He noted the reluctance of banks to assist owners
with loans for these type of buildings. Lengthen the time -frame
to 15 years and remove an unneeded burden upon property owners
and tenants.
Dave Tope, owner of Happy Jacks, agreed with Mr. Finley and dis-
cussed the difficulty of financing improvements. Councilmember
Wuriu asked him what time -period he would suggest for requiring
the improvements. Mr. Tope responded 30 years.
Mayor Sheetz closed the hearing to the public.
Councilmember Wuriu asked what is the compliance deadline now?
Don Funk responded "January 1996". Councilmember Mullen sug-
gested it is premature to extend the date of compliance, but
could consider extending the time further when the deadline is
nearer.
Councilmember Baker indicated his concerns for safety; however,
small businesses in Morro Bay are the edge of surviving and the
City's requirements could ruin some of them. He said the 15
years Mr. Finley mentioned as the State average would seem fair.
He suggested the Ordinance be amended to require construction be
complete by January 1, 2010.
Councilmember Wuriu stated he sees no reason to extend the dead-
line at this point; there are only a handful of buildings
involved. He believes if the deadline is extended now, no one
will do anything to comply until the deadline. Problems can be
dealt with on a case -by -case basis.
Councilmember Luna agreed with Councilmember Wuriu; it is not out
of line to approve the Ordinance as set forth. If an extension
of time is needed in 1996, Council can consider it at that point.
MOTION: Councilmember Luna moved Ordinance No. 401 be read by
title and number only. The motion was seconded by
Councilmember Mullen and unanimously carried. (5-0)
Mr. Napper read Ordinance No. 401 by title and number only.
MOTION: Councilmember Luna moved for approval of the first
reading and introduction of Ordinance No. 401. The
motion was seconded by Councilmember Mullen and carried
with Councilmember Baker voting no. (4-1)
MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING - JUNE 24, 1991
PAGE 8
D-2 COUNCILMEMBER REQUEST FOR CONSIDERATION OF BALLOT MEASURE
FOR CITY SUBSCRIPTION TO STATE WATER PROJECT, COASTAL BRANCH
Councilmember Baker commented the City Administrator indicated in
his Agenda Summary he did not know if the discussion on the bal-
lot issue was for an advisory or mandatory measure. He ques-
tioned why the City Administrator did not call and ask if he had
any questions. Mr. Napper noted policy to schedule Council's
future agenda items without staff analysis or backup.
Councilmember Baker stated he wants a binding measure of the
State Water Project on the ballot so the people can decide if
they want it. Mayor Sheetz reminded him he stated several weeks
ago Council should decide these issues because they are the
elected officials. Councilmember Baker responded since Council
has previously endorsed the State Water Project, he did not
expect at that time there would be three votes against it.
Councilmember Wuriu noted at an earlier meeting he suggested the
matter be placed on the ballot, but could not get support for it.
Mayor Sheetz opened the hearing to the public noting she will
accept k hour of testimony.
Frank St. Denis stated on April 22nd Council voted to not pursue
any of the water alternatives they have studied for so long
except for desalination. With the drought situation, it is hard
to understand why Council does not pursue every possible alterna-
tive for future water needs? The subject of State Water is too
important to be left to the politicians. This is an opportunity
for Council to show leadership by putting the State Water Project
on the ballot for the people to decide. He presented nearly
1,000 signatures he and others had collected in one week request-
ing Council put this matter on the ballot.
Ray Kaltenbach commended Council on their stand in the water
issue and decision on desal; it is the only common sense approach
so far. He reviewed the attempts made in the past to obtain
water and the number of consultants the City has hired. He said
the developers are pushing State Water, and asked why the City of
Santa Barbara turned it down?
Roger Ewing said a small group of citizens is calling for the
City Council to burden the taxpayers with the State Water Pro-
ject. He stated one of the individuals, who was on the City
Council for eight years, is using an outdated confidential memo
from the City Attorney to scare the citizens of Morro Bay into
believing without State Water the City will have to buy all
vacant lots in Morro Bay. Mr. Ewing asked the City Attorney if
there is a legal ruling on the release of the confidential memo?
Ms. Skousen stated it is a violation of the law.
MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING - JUNE 24, 1991
PAGE 9
Mr. Ewing discussed the drawbacks of the Coastal Streams Diver-
sion project, San Bernardo Dam, and State Water Project. He said
the State Water Project is already over -subscribed and unable to
deliver its contract obligations, and noted a recent lawsuit
filed against allocating more water from the State Water Project
until it is able to fulfill its current obligations. Mr. Ewing
also discussed the accomplishments of the current Council in
regard to water.
Ed Smith, Marina Street, said the two previous speakers are not
experts. The State Water Project should be put on the ballot so
all can be heard. He asked the Council why they do not trust the
public and allow them to vote on the matter?
Charles Palmer, 485 Estero, stated this has become an emotional
issue. He said the City has lots of water; the Council has
instituted conservation which will produce water within a year or
two. He said the City needs a storage facility. He has learned
from the State Department of Water Resources if the City obtains
State Water, it will lose acre -foot -for -acre-foot in ground
water; this information was from the Planning Director. Mr.
Palmer stated Morro Bay will be competing for State Water with
Los Angeles and San Diego; other projects are more viable.
Bill DeCarolis commented Santa Barbara voted in favor of State
Water as well as desal. He said if this Council can accept 200
signatures and disband the Planning Commission, they can accept
1,000 signatures and put the State Water issue on the ballot.
Mary Phillips said the City Council has sworn to uphold the Con-
stitution, and quoted from Article 10 of the Constitution. She
said three of the Councilmembers are denying the Constitution.
The State Water Project should be on the ballot.
Ann Freeman, 785 Cabrillo Place, suggested people read recent
articles from the LA Times about State Water; it has as little
water as our wells did during the drought. She commended Council
for what they are doing.
Bruce Risley, Piney Way and member of the Water Advisory Board,
discussed Water Advisory Board action at their last meeting to
encourage Council to hold onto all options for water. One of the
members, Ed McCracken, stated if State Water is placed on the
ballot, the City is taking the chance of shutting off one of its
options. He referred to the EIR on the State Water Project where
costs of the Project are compared to costs of Nacimiento; the
water would be 25%-40% less expensive for Nacimiento. The Bay
Times had an article which polled the people of Los Osos on the
State Water Project, and 2/3 of them are against State Water. He
also mentioned the Kern County lawsuit against the State because
they cannot fulfill their water commitments.
MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING - JUNE 24, 1991
PAGE 10
John Lemons stated keeping all options open has a deadline, and
at the time one of the options becomes available we need to latch
onto it because nothing else is available. He said today the
City is further away from solving our long-term water problems
than we have been for several years. He said the State Water
Project has been dropped by the Council even though the pipeline
will pass through San Luis Obispo County to Santa Barbara. The
State Water Project offers the surest and first available source
of supplemental water and at an affordable price. He noted the
Council proceeding with desal, but not as a supplemental source
of water. It will cost four to five times the amount of State
Water and will only be used when our existing sources cannot meet
the demand. He noted Council is declaring the desal an emergency
project so the City will not have to comply with State require-
ments for an EIR. He urged Council to notify the County the City
wishes to participate in the State Water Project for a 1313 acre
foot entitlement. If not, let the people make the decision by
placing an enabling ordinance on the ballot to require the City's
participation in the Project. An advisory vote is not satisfy-
ing; it must be a binding measure.
Robert Enns, member of the Water Advisory Board and residing at
3121 Ocean Blvd., Cayucos, stated he is speaking on behalf of the
Water Advisory Board. He said during the last 3k years, the
Water Advisory Board has always voted unanimously to bring State
Water to Morro Bay because of its cost, quality and dependabil-
ity. To stay in the running for State Water will cost the City
nothing. He recommended Council reverse its present position and
keep State Water on the active list.
Tom White, 484 Rennel, stated he helped circulate the petition
submitted to Council this evening. He talked to close to 100
people and they overwhelmingly want to vote on this issue; they
resent Council making the decision for them.
Warren Dorn, 212 Beach St., requested the petition language be
read aloud. He distributed pictures to Council showing the Whale
Rock Reservoir pipeline which goes right through the City of
Morro Bay; we are not able to use it because the people of Morro
Bay voted it down before the City was incorporated. It is impor-
tant to protect the community by allowing people to vote. He
said it would be simpler if one of the three members who voted
against the State Water Project rescinded their vote and allowed
the issue to go before the voters.
Mayor Sheetz closed the hearing to the public.
Mayor Sheetz requested the City Clerk read the petition aloud;
Ms. Davis did so.
Councilmember Baker referred to an article in the Telegram -
Tribune regarding a historical perspective of water in San Luis
MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING - JUNE 24, 1991
PAGE 11
Obispo County. For 40 years we have been reviewing one source of
water or another; we could have had Whale Rock years ago and it
was passed by. No one got excited until there was a drought.
Morro Bay has a right to State Water; $8 million has been spent
by the citizens of this County for State Water. He said it will
be criminal if a pipeline for State Water goes through the County
and Morro Bay is not hooked into it. He requested the matter be
placed before the voters as a binding law; he submitted a pro-
posed ordinance to the City Attorney to review.
MOTION: Councilmember Baker moved Council approve putting on
the November 1991 ballot an ordinance asking if the
people, in a binding form, want State Water. The
motion was seconded by Councilmember Wuriu.
Councilmember Mullen said she does not understand why State Water
has such a hold on a group of people in this town. Arroyo Grande
and Grover City have said "no" to State Water; Paso Robles and
Atascadero are not interested; the Board of Supervisors will not
put it on the ballot. She is concerned if the matter was placed
on the ballot major developers and big money will run the elec-
tion. She trusts the people of Morro Bay and they voted her into
office. She does not trust a group of people who consistently
support State Water and we still do not have it. She has a book-
let that is a total condemnation of the State Water Project by
the Metropolitan Water District if anyone would like to read it.
Councilmember Mullen stated the Project is 100% over -contracted.
She favors doing something different. Council met with Cayucos
Sanitary District and they are interested in John Alexander's
reclamation project; desal is in the process of coming on-line as
a backup; we are conserving; Nacimiento is favored by the Board
of Supervisors. She believes the people in Morro Bay do not sup-
port State Water. If people believe otherwise, she suggested
they sponsor a ballot initiative.
Councilmember Wuriu stated the people are not asking anyone to
change their vote as to what they think about State Water; they
are asking to let the people make up their mind on this issue by
voting on it. He deplored the personal attacks made this
evening. He supports State Water, and thinks the decision to
reject it in April was disastrous. Morro Bay has a historical
pattern of turning down workable solutions to our water shortage.
Despite the past, the "ace in the hole" has been the State Water
Project. Even though it is not 100% reliable every year, it is
still better than almost any other proposed major source of
water. Councilmember Wuriu stated the people of Morro Bay are a
higher authority than the City Council. Council should listen to
the public now; they deserve to make the final decision on this
vital project. He asked who in the room can deny that placing
State Water on the ballot is the democratic way to deal with this
controversial issue?
MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING - JUNE 24, 1991
PAGE 12
Councilmember Luna stated he has listened to the people this
evening and hopes if this issue goes on the ballot, whether bind-
ing or advisory, the community is given correct and accurate
information. He said there is a feeling in the community the
developers want water so they can build, and the environmental-
ists do not want supplemental water so the community will not
grow. He believes everyone wants water for their families and
for things to go forward. He stated he has reservations about
the State Water Project; there are some severe problems with it.
He has read the figures on how much State Water each community is
supposed to get, but stated there are no guarantees we will get
that much water. The only sure source of water is the Pacific
Ocean and desalination. He agrees citizens deserve a right to
vote on this matter; he would support an advisory measure on
State Water on the November ballot.
Councilmember Baker stated there is a lot of discussion on State
Water, but there is one sure thing: if we do not ask for our
share of State Water, we will not get it. He encouraged Council
to vote in favor of a binding vote by the people.
Mayor Sheetz addressed the Coastal Stream Diversion and San
Bernardo Creek Dam projects stating both projects are dependent
on nature; if you do not have rain, you do not have water. The
City budget is extremely constrained at this time, and if we were
to keep the two projects alive it would mean a continual funding
of monies which the City does not have. She said the Stream
Diversion project has been challenged by Fish and Game; there are
nine land -owners waiting in line to file lawsuits if the City
proceeds with the San Bernardo Dam project. She said the pro-
jects are an effort in futility. The current majority on the
Council ran on a "no to State Water" platform, and people
responded by voting for them. However, there seems to be a
ground -swell tonight for placing State Water on the ballot. She
noted there are no sure costs for State Water; that information
along with the final EIR will not be out until the end of the
year. A major question to be answered is when the payment of the
State Water will start: on subscription or delivery? She said
she will vote in favor this evening of placing State Water on an
advisory ballot. If the majority of people in November say they
want State Water, it is up to the Council at that time to make
the definitive decision; and, if the cost and the vote is there,
then we should have it. It is too early to go with the mandatory
vote.
SUBSTITUTE Mayor Sheetz moved the question of participation in
MOTION: the State Water project be placed before the voters as
an advisory measure on the November ballot. The sub-
stitute motion was seconded by Councilmember Luna.
Councilmember Baker questioned action on the previous motion;
Mayor Sheetz stated a substitute motion takes precedence.
MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING - JUNE 24, 1991
PAGE 13
Councilmember Wuriu commended Councilmember Luna and Mayor Sheetz
for even considering some kind of popular vote; however, if we
are going to the trouble of having a ballot issue, it should be
binding. Mayor Sheetz said it is a matter of the final EIR com-
ing out, questions being answered, costs.
Councilmember Wuriu said an advisory vote gives Council full
license for reversing the vote by saying project costs are higher
than anticipated. If the present Council is voting on this, and
they will be, it will be an uncontrollable situation.
Councilmember Luna stated in an advisory vote, the Council has
the final say-so. An honest and sincere campaign for and/or
against the State Water Project will have significant impact on
the Council in the final decision.
Councilmember Luna called for the question; it was unanimously
approved to end debate. (5-0)
The substitute motion was approved with Councilmembers
Baker and Wuriu dissenting. (3-2)
Council recessed at 8:00 p.m. and reconvened at 8:13 p.m.
Mr. Napper stated staff is preparing Council's last motion in a
Resolution format, but the ballot wording for the measure needs
to be approved by Council tonight.
Ms. Skousen stated the Council can either adopt a general ballot
wording or a more specific one. She suggested, "Should the City
Council of Morro Bay be authorized and directed to participate in
and issue revenue bonds or sell certificates of participation or
both to provide funds to finance a minimum of 1,313 acre feet of
water per year for the City from the Coastal Branch of the
California Aqueduct Project, and to construct related local
facilities?" Another, simpler version could be, "Do you favor
the City of Morro Bay participating in the Coastal Branch of the
California Aqueduct Project?"
Mr. Napper stated the first version is patterned after the lan-
guage in the proposed ordinance submitted by Councilmember Baker.
Council favored the more specific wording. 0-A%
MOTION: Mayor Sheetz moved the Resolution to place the State
Water Project on the November 1991 ballot as an advi-
sory measure be approved including the more specific
ballot wording. The motion was seconded by Councilmem-
ber Wuriu and unanimously carried. (5-0)
Mr. Napper stated this Resolution will be assigned the next
available number and placed in the book of City Resolutions.
MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING - JUNE 24, 1991
PAGE 14
D-3 RESOLUTION NO, 69-91 ADOPTING REVISED CITY MASTER FEE
SCHEDULE FOR FISCAL YEAR 1991-92
Louise Burt reviewed the Master Fee Schedule detailing the more
significant changes; most categories increased by the change in
the CPI of 5%.
Mayor Sheetz opened the hearing to the public for comments; there
were no comments and the hearing was closed to the public.
Mayor Sheetz stated she objects to the 10% gross receipts charge
for caterers in the Community Center; she said caterers only make
a 20% profit and this charge will take half of it. Councilmember
Wuriu agreed He said the caterer does not reserve the Community
Center; it is reserved by whoever hires the caterer.
Mr. Wolter reviewed similar charges by other agencies for
caterers.
Councilmember Mullen questioned the Community Development
charges; she was hoping the charges would be real time and mate-
rials, and asked why the fees are based on square footage? Mr.
Funk stated the charges are a combination of both; the City
Attorney's charges are by the time it takes to review a project.
However, if charges are made for each individual staff person and
the time they spend on an application, the applicant may try to
minimize the time he spends with staff discussing the project and
ideas. There could 12 to 15 staff members involved in any one
project. He noted there is a higher cost for large applications
as opposed to minor ones.
Councilmember Mullen suggested increasing the tree removal permit
fee. Mr. Napper stated Council cannot charge more than actual
cost of the time and materials the City spends on processing the
permit.
MOTION: Councilmember Wuriu moved for the adoption of Resolu-
tion No. 69-91 with the deletion of the surcharges for
caterers. The motion was seconded by Councilmember
Luna and unanimously carried. (5-0)
D-4 RESOLUTION NO, 68-91 ADOPTING CITY BUDGET FOR FISCAL YEAR
1991-92
Mr. Napper stated this is the last time the Fiscal Year 1991-92
budget will be presented to Council. He reviewed the major
changes from last year's budget, and stated the City must move
forward despite unresolved questions surrounding the impact of SB
2557 and the State Budget.
MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING - JUNE 24, 1991
PAGE 15
Councilmember Baker asked if the budget for Civil Defense has
always been in the Budget? Mr. Napper stated in the past it has
contained $1,000 to $1,500, primarily for radios. This year,
staff decided none were necessary.
Councilmember Wuriu asked if there is money to fund the items as
recommended by the Water Advisory Board? Mr. Napper stated there
is $310,000 in the New Water Production Account; $112,000 is
needed to complete the EIR and engineering studies for the San
Bernardo Creek Dam project studies. Council previously approved
using existing budgeted funds to finish the study on the Coastal
Streams project.
Mayor Sheetz opened the hearing to the public for comments.
Robert Enns, 3421 Ocean, Cayucos, and member of the Water Advi-
sory Board, recommended Council fund the items requested by the
Water Advisory Board. He reviewed the findings made by the Water
Advisory Board in requesting funding for these items.
Ray Kaltenbach said if the two projects are not feasible, he sees
no reason why the City should spend any more money on them. The
money should go towards other feasible projects.
Tom White, 484 Rennel, encouraged Council to approve the Water
Advisory Board recommendations; he said listen to the experts.
Mayor Sheetz closed the hearing to the public.
Mr. Napper suggested Council approve the Harbor Festival and
Chamber of Commerce budgets separately so Councilmember Mullen
may abstain from voting on those items as she has in the past.
MOTION: Councilmember Luna moved for approval of portions of
the Fiscal Year 1991-92 Budget involving the Harbor
Festival and Chamber of Commerce. The motion was sec-
onded by Councilmember Wuriu and carried with Coun-
cilmember Mullen abstaining. (4-0-1)
MOTION: Councilmember Baker moved the Budget be adopted with
funding as recommended by the Water Advisory Board,
$104,000 for the San Bernardo Creek Dam project. The
motion was seconded by Councilmember Wuriu.
Councilmember Mullen was not in favor of spending more money on
water projects which cannot go forward.
The motion failed with Councilmembers Luna, Mullen, and
Mayor Sheetz voting no. (2-3)
Councilmember Luna suggested a letter be sent to the City and
County of San Luis Obispo explaining the situation with the two
MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING - JUNE 24, 1991
PAGE 16
projects and inviting them to pay for the remainder of the
projects.
MOTION: Councilmember Luna moved a letter be written to the
City and County of San Luis Obispo asking if they wish
to contribute monies to the completion of the studies
on the San Bernardo Creek Dam project. The motion was
seconded by Councilmember Wuriu and unanimously
carried. (5-0)
MOTION: Councilmember Luna moved for adoption of Resolution No.
68-91. The motion was seconded by Councilmember Wuriu
and unanimously carried. (5-0)
Forrest Henderson reviewed the unresolved issue of the definition
of "basic service". He stated the City's Ordinance requires
cable operators to add three channels to the basic service during
each five year period of the franchise. Until June of 1990,
Sonic exceeded the ordinance requirements by beginning with nine-
teen channels, adding three as required, and then eight addi-
tional channels for a total of 27 channels as basic service for a
charge of $19.50. Last year, Sonic restructured their service
and changed the basic service to twelve channels; this was done
without submitting a Request for Modification as required by the
Ordinance. Mr. Henderson said Sonic retiered their basic service
in anticipation of revised federal regulations allowing local
rate regulation of basic services. By this restructuring, the
City can only regulate rates for 12 channels instead of 27. The
City recognizes Sonic's right to re -tier, but at a minimum the
basic tier should contain 22 channels.
Negotiations with Sonic and the Cable TV Franchise Board have
failed to resolve the issue. The Board recommends Council direct
the Cable TV Advisory Board to hold a Cable Franchisee Compliance
Review and Revocation Hearing on 18 July 1991, with recommenda-
tion for action to Council.
Steve Burrell, General Manager of Sonic, stated he met with Mayor
Sheetz and Mr. Henderson, and all expressed the desire to avoid
litigation with the City. He does not believe a Request for Mod-
ification will get any more consideration than the counter -pro-
posal submitted by Sonic to the Board. The issue is whether they
have the right to package a product and offer subscribers some-
thing less than 25 or 30 channels. Sonic does not believe the
City has the right to tell them how to package its product. Some
people want only 12 channels, and Sonic is providing them with
that alternative. He told Council to go forward with the public
hearing.
0
MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING - JUNE 24, 1991
PAGE 17
Councilmember Luna asked Mr. Burrell why he is refusing to come
into compliance with the basic service at 22 channels? Mr.
Burrel stated there is nothing in the ordinance that says there
will be a certain number of channels that constitutes basic
cable; it mentions adding programming, not basic service. He
maintains Sonic still offers 28 channels of basic cable; they are
just offering another tier.
Ms. Skousen stated nothing prohibits them from offering a 12-
channel service; Sonic just cannot call it "basic". The City's
ordinance requires basic service for at least 22 channels. The
rates on "basic" service may soon be regulated by Council That
is why Sonic changed the tiers and call the 12 channel "basic",
so the City can only regulate rates on 12 channels.
Suzanne Fryer, law firm of Sinsheimer, Schiebelhut & Baggett and
representing Sonic Cable TV, stated one of their concerns is con-
sumer protection; most people recognize "basic" service as the
lowest tier. In every other community, the lowest tier is their
basic service. She maintained Sonic did not take programming
away from anyone.
Mayor Sheetz stated Sonic did not take anything away, but charged
more for what we were getting. The infringement came when Sonic
did not ask for the adjustment.
Councilmember Luna suggested a pilot program calling their lowest
tier something else to see if it is confusing to people.
Mr. Henderson noted less than 100 subscribers have signed up for
Sonic's lowest tier service out of approximately 4,000 sub-
scribers City-wide; apparently, the consumer does not want this
sub -basic service level.
Councilmember Wuriu stated a lot of people are not happy with the
rates. Something should be worked out to keep people reasonably
satisfied within the Ordinance as both the City and Sonic read
it.
Mayor Sheetz commented a judge could decide the issue. Mr.
Burrell said if the City has someone in mind, he is interested;
he wants to get on with it. Ms. Skousen stated because of the
possibility of litigation, Council should discuss such an option
in Closed Session.
Mayor Sheetz opened the hearing to the public.
Roger Ewing said he does not understand the "legalese". When he
arrived in Morro Bay, he had a certain number of channels for a
stated amount of money; now he has less channels and the price is
higher. He suggested Council find another cable company; one of
the problems with Sonic is there is no competition for them.
0
MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING - JUNE 24, 1991
PAGE 18
Ray Kaltenbach said going to bid for another cable company does
not work; there is a "gentlemen's" agreement among cable compa-
nies and they stay out of each other's territory.
Dick Haidet complained about syndexing involving a Dodger base-
ball game that was not broadcast on any other channel. He also
stated there is duplicate programming with channels 2 and 12, and
3 and 7. Both of these problems result in even less channels for
the viewing public.
Bill Olsen, member of the Cable TV Franchise Board, stated the
reason for the new tiering by Sonic was because one year ago, the
Federal Communications Commission discussed allowing cities to
regulate basic service. Immediately, many cable companies
started to re -tier their channels and make the basic tier smaller
so cities will have less channels for which to regulate fees.
They also moved Cable News Network (CNN) to a higher channel num-
ber outside their basic 12 channels so people will have to pay
extra if they wish to continuing watching CNN.
Randy Ruff, Shasta Avenue, stated Sonic is trying to out -maneuver
the FCC and the franchising agency.
The hearing was closed to the public.
MOTION: Councilmember Mullen moved the Cable TV Advisory Board
be directed to hold a Cable Franchisee Compliance
Review and Revocation Hearing on 18 July 1991, with
subsequent report and recommendation for action to the
City Council. The motion was seconded by Councilmember
Wuriu and unanimously carried. (5-0)
•:�N�Z•3Sv4t•7�i7i��C.l�i3;Z•�3�C�Y1�3�4���•i:�_2�1f�i:LiF�7`:I����i
•. S �.• .•�- •, - -
None.
F. ADJOURNMENT
MOTION: Councilmember Wuriu moved the meeting be adjourned.
The motion was seconded by Councilmember Baker and
unanimously carried: (5-0)
The meting adjourned at 9:20 p.m.
Recorded by:
ARDI�IS
City Clerk
NOT = C E O F S PE C = AL MEET = NG
NOTICE IS HEREBY GIVEN that a Special Meeting of
the Morro Bay City Council is hereby called to be held
on Thursday, June 20, 1991 at 5:45 p.m. in the City
Hall Conference Room, 595 Harbor Street, Morro Bay, CA.
At said Special Meeting Council shall adjourn to
Closed Session for the purpose of discussing potential
litigation in accordance with Government Code
§54956.9(b)(1).
DATED: June 18, 1991
/RQUE SH Z, Ma
City of Morro Bay, California
0
MINUTES - MORRO BAY CITY COUNCIL
SPECIAL MEETING - JUNE 20, 1991
CITY HALL CONFERENCE ROOM - 5:45 P.M.
Mayor Sheetz called the meeting to order at 5:45 p.m.
PRESENT: Rose Marie Sheetz
Ben Luna
Susan Mullen
Tom Wuriu
ABSENT: John Baker
STAFF: Gary Napper
Judy Skousen
) Oft t•Z•Z• 7WIV031:4_
CLOSEDNone
E. •,
Mayor
Councilmember
Councilmember
Councilmember
Councilmember
City Administrator
City Attorney
GOVERNMENT •D+D_NLITIGATION;
POLYMETRICS, INC. V CITY OF MORRO BAY
01V WW1 zy ODNI' • + • +
MOTION: Councilmember Luna moved the meeting adjourn to Closed
Session for discussion of potential and pending litiga-
tion. The motion was seconded by Councilmember Wuriu
and unanimously carried. (4-0)
Mayor Sheetz made the Closed Session announcement.
Council adjourned to Closed Session at 5:46 p.m. and returned to
open session at 6:54 p.m.
F. ADJOURNMENT
MOTION: Councilmember Luna moved the meeting be adjourned. The
motion was seconded by Councilmember Wuriu and unani-
mously carried. (4-0)
The meeting adjourned at 6:54 p.m.
RAP
A
jCity 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.
SPECIAL MEETING - JUNE 12, 1991
CITY HALL CONFERENCE ROOM - 5:30 P.M.
595 HARBOR ST.,.MORRO BAY, CA
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 D) may do so at this time. 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. PUBLIC HEARINGS. REPORTS & APPEARANCES
D-1 INTERVIEW CANDIDATES FOR APPOINTMENT TO PLANNING COMMISSION
F.
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
INTERVIEWS - PLANNING COMMISSION
12 June 1991
Time Applicant
5:30 pm Andrea Bersie
5:42 Henry Garcia
5:54 John Greenvile
6:06
Ray Kaltenbach
6:18
Lewis Lemon
6:30
Ernest Maltby
6:42
Bernie Melvin
6:54
Duane Midstokke
7:06
Janice Peters
7:18
Philip Borden
7:30
Charles Reasor
7:42 June Hofstead
7:54 Darlene Black
8:06 Howard Smith
MINUTES - MORRO BAY CITY COUNCIL
SPECIAL MEETING - JUNE 12, 1991
CITY HALL CONFERENCE ROOM - 5:30 P.M.
Mayor Sheetz called the meeting to order at 5:33 p.m.
PRESENT: Rose Marie Sheetz
John Baker
Ben Luna
Susan Mullen
Tom Wuriu
ABSENT: None
STAFF: Gary Napper
PUBLIC COMMENT
None
D. PUBLIC HEARINGS. REPORTS & APPEARANCES
Mayor
Councilmember
Councilmember
Councilmember
Councilmember
City Administrator
Councilmembers interviewed the following candidates for Planning
Commissioner:
Andrea Bersie
John Greenville
Lewis Lemon
Janice Peters
Charles Reasor
Darlene Black
Bernard Melvin
Henry Garcia
Ray Kaltenbach
Ernest Maltby
Philip Borden
June Hofstead
Howard Smith
Duane Midstokke submitted an application, but withdrew it prior
to the interview date.
Councilmembers reviewed applications and discussed the
interviews.
MOTION: Councilmember Mullen moved Ernest Maltby, Bernard
Melvin, Janice Peters, Charles Reasor, and Howard Smith
be appointed to the Planning Commission by acclamation.
The motion was seconded by Councilmember Luna and
unanimously carried. (5-0)
Mr. Napper stated Government Code §54974 requires appointments
not be made to boards or commissions until ten working days after
0
MINUTES - MORRO BAY CITY COUNCIL
SPECIAL MEETING - JUNE 12, 1991
PAGE 2
posting notice the vacancy exists. Posting was accomplished on
May 30th and, because of scheduling conflicts, Council was able
to meet only on this evening which is nine days after posting.
He requested Council make the appointments on an interim emer-
gency basis so a new Planning Commission may sit at the June 17th
Planning Commission meeting, and then schedule the item for the
June 24th agenda for final appointment.
MOTION: Mayor Sheetz moved the Planning Commission be appointed
on an interim emergency basis in accordance with Gov-
ernment Code §54974(b). The motion was seconded by
Councilmember Luna and unanimously carried. (5-0)
MOTION: Councilmember Mullen moved the terms of office for the
Planning Commissioners expire as follows: Charles
Reasor: 12-31-92; Janice Peters: 12-31-93; Howard
Smith: 12-31-93; Ernest Maltby: 12-31-94; Bernard
Melvin: 12-31-94. The motion was seconded by Coun-
cilmember Luna and unanimously carried. (5-0)
Councilmember Luna requested the Planning Commission ordinance be
amended to require Council meet at least two times per year with
the Planning Commission; Council concurred. It was suggested the
first meeting will be held in July or August 1991. Councilmember
Luna suggested one of the bi-annual meetings be used to evaluate
the Planning Commission; Councilmember Mullen stated goals could
be set with them at that time also.
Councilmember Luna requested a letter of thanks be sent to the
outgoing Commissioners.
F. ADJOURNMENT
MOTION: Councilmember Mullen move
The motion was seconded by
imously carried. (5-0)
The meeting adjourned at 8:38 p.m.
d the meeting be adjourned.
Councilmember Luna and unan-
c�m l0, c 991
City Of Morro Bay
City Council Agenda
Mission Statement
The City of Morro Bey 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 10, 1991
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 Hearings items under
Section D) may do so at this time. 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 (CITY COUNCIL)
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 28, 1991
A-2 NOTICE OF COMPLETION ON PROJECT NO. PW 90-05, AIR POLLUTION CONTROL
FACILITIES (FERROUS CHLORIDE) FOR SEWAGE COLLECTION SYSTEM
A-3 WATER SUPPLY STATUS REPORT
A-4 RESOLUTION SUPPORTING VARIOUS STATE LEGISLATION INTRODUCED TO
FACILITATE CONSTRUCTION AND FINANCING OF DESALINATION WATER TREATMENT
FACILITIES (AB 2111, AB 2112, AB 2113; POLANCO) PULLED
A-5 SET DATE (20 JUNE 1991) FOR SEMI-ANNUAL JOINT MEETING WITH CAYUCOS
SANITARY DISTRICT
A-6 RESOLUTION NO. 60-91 AWARDING CONTRACT FOR PROJECT NO. PW 91-151,
TRAILER -MOUNTED PORTABLE GENERATORS FOR SEWAGE COLLECTION LIFT
STATIONS TO HOLCOMB & SONS, INC.
A-7 PROCLAMATION DECLARING JUNE 17TH-18TH AS "MORRO BAY LAW ENFORCEMENT
TORCH RUN FOR SPECIAL OLYMPICS DAYS"
A-8 RESOLUTION NO. 59-91 AUTHORIZING ASSIGNMENT OF COMBINED ROAD PLAN
(CRP) APPORTIONMENT TO THE ALAMEDA COUNTY TRANSPORTATION AUTHORITY FOR
UNRESTRICTED SALES TAX FOR STREET/ROAD PURPOSES
1
0
A-9 SET DATE (12 JUNE 1991; 5:30 P.M.) AS TIME TO INTERVIEW CANDIDATES FOR
APPOINTMENT TO PLANNING COMMISSION
A-10 RESOLUTION NO. 61-91 REGARDING PREPARATION AND SUBMITTAL OF SOURCE
REDUCTION AND RECYCLING ELEMENT, HOUSEHOLD HAZARDOUS WASTE ELEMENT,
AND RELATED ENVIRONMENTAL IMPACT DOCUMENTATION (AB 939 AND AB 1820)
B. UNFINISHED BUSINESS
NONE
C. NEW BUSINESS
C-1 APPROVAL OF TEN YEAR MASTER LEASE AGREEMENT FOR USE OF LEASE SITE 113W
BY SHARON MOORE (DBA VIRG'S DOCK & BAIT TANKS; 1215 EMBARCADERO)
PULLED
C-2 RESOLUTION NO. 66-91 APPROVING MONTH -TO -MONTH SUBLEASE AGREEMENT FOR A
PORTION OF LEASE SITE 71-72 FOR SMALL OPERATION OF A BICYCLE RENTAL
BUSINESS (DBA FREETIME DISTRIBUTING; 601 EMBARCADERO; McINERNEY) AND
ADDING "NON -PERMANENT BICYCLE RENTAL" AS AN APPROVED USE
D. PUBLIC HEARINGS. REPORTS & APPEARANCES
D-1 CONTINUED HEARING ON AMENDMENT OF GENERAL PLAN AND LOCAL COASTAL PRO-
GRAM AND ZONING TEXT/MAPS TO MODIFY LAND USE DESIGNATIONS ON PORTIONS
OF WILLIAMS BROTHERS PROPERTY (MEASURE H, NOVEMBER 1990 BALLOT; CASE
NO. GPA/ZOA/LCP 01-91) ORDINANCE NO. 400 (INTRODUCTION/FIRST READING)
D-2 RESOLUTION NO. 67-91 AUTHORIZING SPECIAL BUILDING ALLOCATIONS IN 1991
PURSUANT TO GROWTH MANAGEMENT ORDINANCE FOR ON -SITE RESIDENTIAL
CONVERSION PROJECTS
D-3 RESOLUTION NO. 63-91 APPROVING PUBLIC AREA USE PERMIT FOR EMBARCADERO
AREA (BEACH STREET TO HARBOR HUT RESTAURANT) FOR 1991 HARBOR FESTIVAL
(OCTOBER 5TH AND 6TH)
D-4 RESOLUTION NO. 62-91 ADOPTING BUSINESS LICENSE TAX RATE SCHEDULE FOR
FISCAL YEAR 1991-92
D-5 HEARING ON RECOMMENDED CITY BUDGET FOR FISCAL YEAR 1991-92
D-6 HEARING ON PERFORMANCE AND COMPLIANCE REVIEW OF CABLE TELEVISION
FRANCHISEE, SONIC CABLE TV OF SAN LUIS OBISPO
D-7 ORDINANCE NO. 399 AMENDING CONTRACT WITH PUBLIC EMPLOYEES RETIREMENT
SYSTEM TO PROVIDE HIGHEST SINGLE YEAR RETIREMENT BENEFIT FOR SWORN
PUBLIC SAFETY EMPLOYEES (URGENCY ORDINANCE/ADOPTION)
2
•
E. CLOSED SESSION
E-1 GOVERNMENT CODE §54956.9(C); POTENTIAL LITIGATION
E-2 GOVERNMENT CODE §54956.8, REAL PROPERTY NEGOTIATIONS
A. LEASE SITE 71-74W, 601-659 EMBARCADERO (MORRO BAY MARINA, INC.)
B. PARCEL 5C, MORRO BAY/CAYUCOS JOINTLY -OWNED PROPERTY NEAR SEWAGE
TREATMENT PLANT (CAYUCOS SANITARY DISTRICT)
• l.C+v._.
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 - JUNE 10, 1991
VETERANS MEMORIAL HALL - 6:00 P.M.
Mayor Sheetz called the meeting to order at 6:00 p.m.
PRESENT: Rose Marie Sheetz
John Baker
Ben Luna
Susan Mullen
Tom Wuriu
ABSENT: None
STAFF: Gary Napper
Judy Skousen
Rick Algert
Louise Burt
Ardith Davis
William Farrel
Forrest Henderson
Dave Howell
Nick Nichols
Steve Wolter
Mayor
Councilmember
Councilmember
Councilmember
Councilmember
City Administrator
City Attorney
Harbor Director
Finance Director
City Clerk
Community Dev. Dir.
Asst. City Admin.
Police Chief
Public Works Dir.
Rec. & Parks Dir.
Bruce Curtis, Morro Bay -Los Osos Four -Square Church, gave the
invocation, and Horace Strong led the Pledge of Allegiance.
PRESENTATIONS: PROCLAMATION DECLARING JUNE 17TH-ISTH AS "MORRO
BAY LAW ENFORCEMENT TORCH RUN FOR SPECIAL OLYMPICS
DAYS"
Mayor Sheetz read the Proclamation and presented it to Chief of
Police Dave Howell. Chief Howell stated there will be a media
event Monday, June 17th at "City" Park.
PUBLIC COMMENT
1. Warren Dorn, President of Morro Bay Beautiful, stated
the Senate Appropriations Committee approved a Resources Bond
Act. He said ever since he was Mayor, he has wanted the park
completed on the entrance to Morro Bay Blvd. These monies will
provide funding to purchase surrounding properties for that pur-
pose. He also congratulated the people of Santa Barbara who
voted in favor of the State Water Project, and stated that
pipeline will now be passing through out area and we should take
advantage of it. He encouraged Council to keep their options
open by supporting State Water; and if not, place the matter
MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING - JUNE 10, 1991
PAGE 2
before the voters on the November ballot so the people of Morro
Bay can support this last chance for State Water.
2. Mary Phillips stated three Councilmembers are being
treasonous when they talk against the State Water Project. She
said the Council should be providing the people with fresh water
instead working toward desalination or reclamation.
3. Ray Kaltenbach stated State Water is not a reliable
source of water. "Entitlement" does not mean a thing; the bulk
of the water will be for Southern California.
4. Nelson Sullivan said Council's previous action to not
pursue State Water was the right one. He then referred to the
initiative petition he tried to get before the voters three years
ago which had a similar purpose to Measure I. He said it was
obliterated by illegal treatment by City Attorney and City Admin-
istrator. A fiscal impact statement by the City Attorney was not
appropriate and is illegal in the preparation of ballot title and
summary. Council may request a financial impact analysis during
the time the petition is being circulated; not before. The anal-
ysis required to be on the petition destroyed its chances for
success. The City Attorney's comment the statute of limitations
has passed is an inappropriate response; if a crime has been per-
petrated by these individuals, whether they can be prosecuted is
immaterial. They have mishandled public affairs.
DECLARATION OF FUTURE AGENDA ITEMS
1. Councilmember Baker requested an item be scheduled for
the next meeting to discuss placing the State Water Project on
the November 1991 ballot.
A-1 CITY COUNCIL MINUTES OF THE REGULAR MEETING OF MAY 28, 1991
Mr. Napper recommended Council approve the minutes as submitted.
A-2 NOTICE OF COMPLETION ON PROJECT NO, PW 90-05, AIR POLLUTION
CONTROL FACILITIES (FERROUS CHLORIDE) FOR SEWAGE COLLECTION
SYSTEM
Mr. Napper recommended Council accept the project as complete,
and authorize the City Clerk to file the Notice of Completion.
A-3 WATER SUPPLY STATUS REPORT
Mr. Napper recommended Council receive the report for file.
MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING - JUNE 10, 1991
PAGE 3
A-4 RESOLUTION SUPPORTING VARIOUS STATE LEGISLATION INTRODUCED
TO FACILITATE CONSTRUCTION AND FINANCING OF DESALINATION
WATER TREATMENT FACILITIES (AB 2111. AB 2112, AB 2113:
POLANCO) PULLED
A-5 SET DATE (20 JUNE 1991) FOR SEMI-ANNUAL JOINT MEETING WITH
CAYUCOS SANITARY DISTRICT
Mr. Napper recommended Council set 20 June 1991 at 7PM in the
City Hall Conference Room for a joint meeting with the Cayucos
Sanitary District Board of Directors.
A-6 RESOLUTION NO, 60-91 AWARDING CONTRACT FOR PROJECT NO. PW
91-151, TRAILER -MOUNTED PORTABLE GENERATORS FOR SEWAGE
COLLECTION LIFT STATIONS TO HOLCOMB & SONS, INC.
Mr. Napper recommended Council adopt Resolution No. 60-91.
A-7 PROCLAMATION DECLARING JUNE 17TH-18TH AS "MORRO BAY LAW
ENFORCEMENT TORCH RUN FOR SPECIAL OLYMPICS DAYS"
Mr. Napper recommended Council authorize the Mayor to sign the
Proclamation.
A-8 RESOLUTION NO. 59-91 AUTHORIZING ASSIGNMENT OF COMBINED ROAD
PLAN (CRP) APPORTIONMENT TO THE ALAMEDA COUNTY TRANSPORTA-
TION AUTHORITY FOR UNRESTRICTED SALES TAX FOR STREET/ROAD
PURPOSES
Mr. Napper recommended Council adopt Resolution No. 59-91.
A-9 SET DATE (12 JUNE 1991: 5:30 P.M.) AS TIME TO INTERVIEW
CANDIDATES FOR APPOINTMENT TO PLANNING COMMISSION
Mr. Napper recommended Council set June 12th at 5:30 PM in the
City Hall Conference Room to interview candidates for the Plan-
ning Commission.
A-10 RESOLUTION NO, 61-91 REGARDING PREPARATION AND SUBMITTAL OF
SOURCE REDUCTION AND RECYCLING ELEMENT, HOUSEHOLD HAZARDOUS
WASTE ELEMENT, AND RELATED ENVIRONMENTAL IMPACT DOCUMENTA-
TION (AB 939 AND AB 1820)
Mr. Napper recommended Council adopt Resolution No. 61-91.
Mayor Sheetz requested Item A-8 be pulled for separate
discussion.
MOTION: Councilmember Luna moved for approval of the Consent
Calendar with the exception of Item A-8. The motion
was seconded by Councilmember Baker and unanimously
carried. (5-0)
MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING - JUNE 10, 1991
PAGE 4
Councilmember Luna questioned why the City is not able to come up
with a project to spend the funds available to it? Mr. Nichols
explained the next project on the Council priority list for FAU
funding is the Radcliffe/Main Street realignment. The FAU funds
on hand are not enough to do the project, and there is not nearly
enough time to prepare plans and specifications by the September
1991 deadline which the State has imposed to repossess the
monies. The State plans to use unencumbered money for their
Seismic Safety Retrofit Program in response to the La Purieta
Earthquake. In order to keep some of the funds, the City must
sell them to an agency that has an approved project ready to go.
The City loses 200 on the dollar under this proposal; however,
the remaining funds are then considered unrestricted for street -
related expenditure purposes.
MOTION: Councilmember Mullen moved for the approval of Item
A-8. The motion was seconded by Councilmember Wuriu
and unanimously carried. (5-0)
B. UNFINISHED BUSINESS
•�ZION1a
C. NEW BUSINESS
.. S • : • __�i��!_i�;`i�►•��1E�i�E�t��:L�.��iN3iN;ti�i_aL•7�ii��ai _
Mr. Algert stated Morro Bay Marina, Inc. has requested approval
of a sublease on Lease Site 71-72 to Freetime Distributing, Inc.
for operation of a bicycle rental business. The proposed Resolu-
tion approves the sublease and adds bicycle rentals as an
approved use on the lease site.
MOTION: Councilmember Mullen moved for adoption of Resolution
No. 66-91. The motion was seconded by Councilmember
Luna and unanimously carried. (5-0)
0
MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING - JUNE 10, 1991
PAGE 5
Councilmember Luna stated he wished to make a public statement in
regard to the sentiment by a few in the community who are con-
cerned about this Council being anti -business. He cited a few of
the ways in which the Council has been sensitive to the concerns
of the business community including approving over $15,000 for a
directional signage program; passing a redevelopment ordinance
allowing the conversion and reconstruction of commercial and res-
idential business uses; holding the bed tax increase to 9%
instead of 10% because of the concern on how a 10% bed tax would
affect business; voting to have the boat parade on Saturday night
for the benefit of local business; approving the redevelopment of
some businesses including the Flying Dutchman; etc. He said in
addition after over 20 years, this Council has taken the bold
first step to add additional water to the City by approving the
desal plant. Councilmember Luna also commented on Councilmem-
bers' individual efforts. He said something has to be done to
diffuse the rumors Council is anti -business, and his statements
sets the record straight. He believes this Council has done as
much or more in the last six months for the business community
than any other Council has done since the inception of the City.
D. PUBLIC HEARINGS. REPORTS & APPEARANC
D-1 CONTINUED HEARING ON AMENDMENT OF GENERAL PLAN AND LOCAL
COASTAL PROGRAM AND ZONING TEXT/MAPS TO MODIFY LAND USE DES-
IGNATIONS ON PORTIONS OF WILLIAMS BROTHERS PROPERTY (MEASURE
H. NOVEMBER 1990 BALLOT; CASE NO. GPA ZO /LCP 01-91) ORDI-
NANCE NO. 400 (INTRODUCTION/FIRST READING)
Mr. Farrel distributed to Council copies of the March 18, 1991
staff report to the Planning Commission, City Council, and others
on this subject. Mr. Farrel noted the City Council, sitting as
the Planning Commission on June 3rd, recommended adoption of
Alternate 1 as the site selection for the rezoned 13-acres of
district commercial uses to comply with Measure H. Two Resolu-
tions and one Ordinance have been prepared incorporating Alter-
nate 1. Mr. Farrel reviewed various considerations with regard
to the three alternatives in the public review packet, including
usability, access, constraints, visual, and land use compatibil-
ity. He noted another issue to be decided is the designation for
the remainder of the property outside of the 13 acres.
"Agriculture" is the appropriate designation; this was the desig-
nation for the property before it was zoned commercial by Measure
B in 1986 and is the most plausible intent of voters for Measure
H. Mr. Farrel also discussed the technical difference between
"gross" and "net" acres and its application to Measure H. Staff
recommends the gross acres mandated by Measure H include streets,
right-of-ways, etc., but exclude the required CalTrans dedication
of 2k to 3 acres. Mr. Farrel stated staff's original recommenda-
tion had been for Alternative 3; however, there were concerns
expressed with regard to the stream running through that Alterna-
tive. Alternative 1 is supported by the Voters Initiative Com-
MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING - JUNE 10, 1991
PAGE 6
mittee (VIC) and the Council as Planning Commission. Added to
the zoning is a Planned Development (PD) overlay, and the City's
urban Rural Boundary Line has been modified to include the Mea-
sure H area.
Mayor Sheetz invited Williams Brothers to comment at this time.
Marshall Ochylski, Landplans and representing Williams Brothers,
distributed a letter and revised map to Councilmembers. He
stated they believe the City should not continue processing Mea-
sure H until the court rules on its legality. If Council decides
to adopt one of the Alternatives, they request Council adopt
Alternative 3 as modified on their map. He listed findings their
proposal represents a non -significant change to Alternative 3;
the new proposal allows the creek to run through the middle of
the project and pushes the project back from Highway One some-
what. He noted their 13-acre proposal excludes public right-of-
ways, the agriculture buffer, and the creek restoration area
which will be a public benefit area. He noted the modification
is not major, the site location uses the flattest area of land,
and it is in the best interests of the people of Morro Bay.
Mayor Sheetz asked what Williams Brothers intends to do with the
creek area? Mr. Ochylski stated their intention is for the area
to be open space or held in some public access site with a walk-
way. The creek will be restored to its original or better condi-
tion than it has been in the last years.
Councilmember Baker asked if there will be a connection to the
two shopping areas across the creek? Mr. Ochylski stated yes,
one vehicular bridge and two smaller bridges to serve and inte-
grate the project.
Councilmember Wuriu asked if Williams Brothers believes the split
design will be acceptable to the Coastal Commission? Mr.
Ochylski responded yes.
Councilmember Mullen asked of there is a 100 foot setback from
the stream? Mr. Ochylski stated 50 feet as required by the LCP.
Mayor Sheetz opened the hearing to the public for comments.
Ed Smith, Marina Street, stated implementation of Measure H
should be deferred until the legality of the matter has been
determined by the courts. If Council decides to go ahead, it
seems fair to consider the proposal offered by Williams Brothers
this evening but make it 13 acres, not 13 acres minus one creek.
Ray Kaltenbach said he remembered some time ago 11 acres of the
property was zoned for commercial; what happened to that? He
encouraged Council to implement Measure H now; the stall tactics
are ridiculous.
• •
MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING - JUNE 10, 1991
PAGE 7
Nelson Sullivan stated in order for this project to receive
water, it has to be subdivided. If it is subdivided, over 50% of
the property must be adjacent to already developed property.
Williams Brothers will not be eligible for water until the City's
Coastal Development Permit is amended or the City gets more sup-
plemental water.
Mary Phillips said Domenghini's have stated in the past there is
800 acre feet of water on this property. Water goes with the
property, so there should be enough for Williams Brothers to
build. She was concerned Council not act on Measure H while the
courts have not made a decision; it is interference with due
process.
Ms. Skousen stated it is the duty of the City to implement Mea-
sure H as rapidly as possible; a pending lawsuit is not a reason
to hold the matter up. Williams Brothers could have requested a
restraining order from the court to keep the City from enacting
Measure H, but they have not. Until the City receives such an
order from the court, the City has a duty to continue processing
and implementing Measure H.
Ms. Phillips questioned how legal it is for the two Councilmem-
bers who are members of the Voters' Initiative Committee to act
on this matter? She believes it is unethical. Councilmember
Mullen stated she is not a member of VIC at this time; also, she
has a letter from the Fair Political Practices Commission advis-
ing there is no problem with her voting on this issue.
Mayor Sheetz closed the hearing to the public.
Councilmember Wuriu stated if the land owner and developer
believes he can build a successful shopping center on 13 acres,
Council should be flexible enough to approve the modifications to
Alternate 3.
Councilmember Baker stated in spite of Measure H, he believes
Williams Brothers has the right to build on the whole 30 acres.
However, if the modified version of Alternate 3 suits Williams
Brothers, he will vote in favor of it.
Councilmember Mullen asked if a modified version of Alternate 3
is approved, will it have to go through another the 6-week public
review period? Ms. Skousen stated if the modifications are sub-
stantially different, the answer is yes. The property owners
position is that it is not substantially different from Alternate
3 that was publicized. Ms. Skousen stated it is her opinion it
is substantially different. She suggested if Council approves of
the modifications, they adopt the staff recommended Alternate 3
and send it to the Coastal Commission with a letter indicating
the Council's preference.
! 0
MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING - NNE 10, 1991
PAGE 8
Councilmember Luna stated with regard to Ms. Phillips' comments,
he was a member and President of VIC before he was elected, and
he was elected for his stand on issues. He is proud to have been
associated with VIC, and its success in getting Measure H passed
by the voters. He said he is in favor of the original Alternate
1; it would have been nice to have had this new plan much
earlier.
Mayor Sheetz stated Williams Brothers has made an effort to com-
ply with Measure H and limit the project to 13 acres. The item
will have to go to the Coastal Commission for approval, and then
must return to Council; the Council is not being bypassed in this
matter. She prefers to see the matter go forward at this time,
and recommends Council approve Alternate 3 over Alternate 1.
Mr. Napper suggested Council make a motion to amend all enabling
documents to coincide with Alternate 3. He stated this is the
most prudent course of action for the City. Alternate 3 is the
closest site location to the modified plan proposed by Williams
Brothers, yet it does not subject the City to another 6-week pub-
lic review process. The Coastal Commission may then amend the
location if they wish. He suggested Council may want to provide
companion comments to the Coastal Commission on the modified plan
as proposed by Williams Brothers.
MOTION: Mayor Sheetz moved all enabling documents be amended to
coincide with Alternate 3. The motion was seconded by
Councilmember Mullen.
Mr. Farrel commented the only change will be the maps; no text
changes are necessary.
Councilmember Luna stated he favors Alternate 1; however, he will
go along with Alternate 3 for the benefit of Williams Brothers
and business.
Councilmember Baker asked if the Council can't act on modified
Alternate 3 tonight; Ms. Skousen responded the Council can if
they make findings there is no substantial difference from
Alternate 3.
Councilmember Wuriu commended all people involved in this project
for their work; he said now the project can move forward.
The motion was unanimously carried. (5-0)
MOTION: Councilmember Luna moved for the adoption of Resolution
No. 64-91, as amended. The motion was seconded by
Councilmember Mullen and unanimously carried. (5-0)
MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING - JUNE 10, 1991
PAGE 9
MOTION: Councilmember Luna moved for the adoption of Resolution
No. 65-91, as amended. The motion was seconded by
Councilmember Baker and unanimously carried. (5-0)
MOTION: Councilmember Mullen moved Ordinance No. 400 be read by
title and number only. The motion was seconded by
Councilmember Luna and unanimously carried. (5-0)
Mr. Napper read Ordinance No. 400 by title and number only.
MOTION: Councilmember Luna moved for approval of introduction
and first reading of Ordinance No. 400, as amended.
The motion was seconded by Councilmember Baker and
unanimously carried. (5-0)
Mr. Farrel reviewed this item which authorizes building permits
to be issued for those projects which have pre-existing water
equivalencies on -site and need no new water. The program is only
allowed during years in which Council does not award water to new
projects due to the local water situation. He suggested Council
set the mix at 20 single-family and 20 multi -family units for
this year. He noted 30-33 dwelling units might be able to build
under this program this year.
Mayor Sheetz noted the only reason Council is allowing this type
of building is because they have not issued any new permit for
water this year.
Councilmember Baker asked if there is a reason why the Council
cannot allow an unlimited amount of conversions; the requirement
of the ordinance is no additional water can be used. Mr. Farrel
stated Measure F still limits the maximum amount of new dwelling
units per year to 77.
Councilmember Mullen asked if there have been any single-family
dwelling requests for conversion from commercial? Mr. Farrel no;
only one contractor has shown some slight interest.
Mayor Sheetz opened the hearing to the public for comments.
Robert Ahmet, representing the Alta Morro conversion project,
thanked Council for processing the ordinance. He said since Alta
Morro is the only approved project for this special allocation
and the first and second quarters have passed and we are entering
into the third quarter, and since any reconstruction will save
water during the construction period, he requested Council issue
a special building allocation for three quarters at this time.
MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING - JUNE 10, 1991
PAGE 10
Nelson Sullivan stated the Coastal Commission approved Coastal
Development Permit specifically says the only allocation that can
be made for new development must come from pipeline replacement
or retrofit, and Measure I eliminates pipeline replacement. He
stated Council can call it "conversion" or "transfer", but it is
still "allocation". He does not see how Council can enjoy this
liberation by redefining "allocation"; the Coastal Development
Permit does not allow it.
Ms. Skousen stated these properties already have water on -site;
they are currently using water; the use is changing. She stated
the program is within the CDP and City ordinances. Mr. Sullivan
insisted it is new development and water is being allocated.
Ray Kaltenbach said Council should make sure the new development
does not use more water than was previously used on the property
under the old use. He noted some very small vacation houses are
being replaced by large family residences, and he believes addi-
tional water will be used. He agreed the program will upgrade
areas.
Mary Phillips asked if everyone who owns a house in Morro Bay
moved in with their families tomorrow, would there be enough
water for them? Mr. Farrel stated the census vacancy rate for
Morro Bay is 20%-21% over the last 20 years; he does not antici-
pate they will all move to Morro Bay at one time. Ms. Phillips
said the City should have water in the ground for each vacant lot
to build.
Mayor Sheetz closed the public hearing.
Councilmember Baker recommended Council allow the maximum build-
ing allowed under Measure F: 77 units.
Councilmember Luna believes there is going to be an increase in
water use due to this redevelopment. He suggested not allowing
more units than suggested by staff.
Councilmember Mullen stated she had concerns when this ordinance
was passed and tried to get Council to approve the historical
water use as opposed to Table A. She recommended the mix be set
at 10 single-family units and 40 multi -family units.
Councilmember Wuriu asked if it is possible to run a check on the
actual use of water on the re -conversions after the first year?
Mr. Farrel said yes; however, average water use in the community
has been down due to the drought. Last year's water use may not
be the best to use for statistical purposes. He noted the equiv-
alencies set forth in Table A are accurate with regard to commer-
cial uses. Staff has not analyzed residential water use yet, but
it needs to be done.
MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING - JUNE 10, 1991
PAGE 11
Mayor Sheetz stated she has been working on this ordinance for
some time. It is a way to help the community's economy and pro-
vide additional housing in the community. She suggested the
multi -family units be raised to 40 rather than 20.
Councilmember Baker said he does not believe because someone
builds a large house where a small one used to be, it will
increase water use. The new houses have the low -flow devices
installed, and there is less yard to irrigate if the house is
larger than the one that was there.
MOTION: Councilmember Baker moved for the adoption of Resolu-
tion No. 67-91 with the mix set at 23 single-family
units and 44 multi -family units.
The motion failed for lack of a second.
MOTION: Councilmember Mullen moved for the adoption of Resolu-
tion No. 67-91 as amended to set the housing mix in
1991 under this Program at 10 single-family units, and
40 multi -family units. The motion was seconded by
Councilmember Luna and carried with Councilmember Wuriu
voting no. (4-1)
Councilmember Baker stated he voted in favor of the motion so
some building could commence. Councilmember Wuriu stated he
voted against it because he believes the mix should be 20 single-
family, 40 multi -family; he does not oppose the program concept.
M _� _ • _ _ • f-._i : QI . ; _ fir _ • i
Councilmember Mullen stepped down from consideration on this mat-
ter due to a conflict of interest.
Mr. Wolter stated this item is brought for Council consideration
this year due to the fact the Harbor Festival is expanding to
include Embarcadero Road closure from Beach Street at Market
Avenue, along with the Front Street Parking Lot and South T-Pier
Parking Lot as has been used in the past. The reason they wish
to close Embarcadero Road from Beach Street north is to eliminate
drive -by traffic congestion, pedestrian hazards, and potential
delays to emergency responses in the Rock area. He said passes
will be given to businesses in the area, vendors, volunteers and
Festival personnel. He noted a free trolley will be available to
transport people to the Rock. Mr. Wolter reviewed the 19 condi-
tions of approval developed by staff.
Mayor Sheetz asked if P.G.&E. has been contacted? Mr. Wolter
stated yes, and they will require their people to use the Main
Street (back entrance) access to the plant during the two days.
0
MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING - JUNE 10, 1991
PAGE 12
Councilmember Baker asked how the Harbor Festival will handle
people insisting on access to the Rock? Mr. Wolter stated they
will issue the individual a permit and allow him to drive
through.
Councilmember Luna questioned the City's continued financial sup-
port of the Harbor Festival. Mr. Napper stated the City has an
agreement with Harborfest, Inc. which requires them to be self-
supporting within the next one or two years. Councilmember Luna
encouraged the Harbor Festival committee become self-supporting
as soon as possible due to major City budget constraints.
Councilmember Luna asked who is responsible for paying for the
portable toilets required by Condition 11? Mr. Wolter stated the
Committee is; they have responsibility for all expenses.
Councilmember Luna asked how close the Committee is to becoming
financially independent? Galen Ricard, Harbor Festival Executive
Director, said they are making tremendous strides toward that
goal; they will be phasing out the City's support as quickly as
possible. Councilmember Luna asked how many paid staff are
there? Ms. Ricard stated she is the only paid staff; the rest
are volunteers and receive compensation to their organization
according to the number of hours worked at the Harbor Festival.
Mr. Wolter explained how the volunteer program works which allows
50% of the proceeds from the Festival to be returned to the vol-
unteer organizations.
Councilmember Baker stated the Harbor Festival brings in a great
amount of business at a time when the summer influx has died
down. The $6,000 the City donates to the Festival is more than
made up in the bed tax and sales tax generated as a result of the
Festival.
Mayor Sheetz opened the hearing to the public for comments.
Steve McAbee, President of the Harbor Festival, noted the reason
for the request to close Embarcadero Road is due to safety con-
cerns and emergency response access. He said the restriction
will only apply during Festival hours. Mr. McAbee noted this is
the Harbor Festival's loth anniversary.
Ray Kaltenbach said he remembers when the Harbor Festival was
held near Morro Rock, and does not remember the City donating
money at that time. He said the Harbor Festival also charges ad-
mission to some 20,000 to 30,000 people; there should be an audit
of the use of City monies, and they should be self-supporting.
Ed Biaggini, Treasurer of the Harbor Festival, stated the Harbor
Festival budget was presented to the Council through the Recre-
MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING - JUNE 10, 1991
PAGE 13
ation and Parks Director. He reminded Council this is an event
the City used to pay for totally; it cannot be done for $7,000.
Gene Doughty, Los Osos Surf Club, was concerned about surfers'
access to the Rock during this weekend. Mayor Sheetz requested
the Harbor Festival Committee provide the Club with passes.
Mayor Sheetz returned the matter to Council.
Councilmember Luna requested the trolley be extended to the down-
town area so some of the business will be in this area also. Mr.
Biaggini stated there are four up -town parking lots the Festival
uses and buses or trolleys people to the Festival site.
Councilmember Luna requested Condition 6 be amended to include
recycling receptacles be required at the Festival site. He also
suggested the funds derived from the recycled items be put in a
special fund to provide a scholarship for high school students.
Mr. Biaggini stated recycling is not a revenue generating program
for the Festival; ECOSLO provides the containers for recycled
items and picks them up. Ms. Ricard stated ECOSLO is a non-
profit organization and recycling at the Harbor Festival is a
major fund-raiser for them. Mr. Wolter stated many high school
clubs work volunteers at the Festival and receive a significant
amount of money from these efforts.
Councilmember Luna requested a condition be added to require food
distribution containers be paper products instead of styrofoam.
Mr. McAbee stated the Festival has been moving in that direction
in the last two years. Mayor Sheetz was concerned not all ven-
dors will be able to comply with the requirement this year; she
suggested it be required for next year's Festival and encouraged
this year. Councilmember Baker disagreed; he does not believe
Council should regulate what is used.
The majority of the Council agreed with a one-year notification
paper products will be required.
MOTION: Councilmember Luna moved for adoption of Resolution No.
63-91 with amendments to the conditions as noted. The
motion was seconded by Councilmember Wuriu and unani-
mously carried. (5-0)
Council recessed from 8:22 p.m. to 8:32 p.m.
D-4 RESOLUTION NO. 62-91 ADOPTING BUSINESS LICENSE TAX RATE
SCHEDULE FOR FISCAL YEAR 1991-92
Louise Burt stated the proposed 1991-92 Business License Rate
Schedule has been calculated in accordance with Measure A
(Ordinance No. 340) adopted by the voters in 1988. The CPI
MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING - JUNE 10, 1991
PAGE 14
change this year increased by 3.9% and this has been applied to
business license rates.
Mayor Sheetz opened the hearing to the public for comments; there
were no comments and the hearing was closed.
MOTION: Mayor Sheetz moved for the adoption of Resolution No.
62-91. The motion was seconded by Councilmember Mullen
and unanimously carried. (5-0)
D-5 HEARING ON RECOMMENDED CITY BUDGET FOR FISCAL YEAR 1991-92
Mr. Napper stated at the last Council meeting, a staff recom-
mended budget was released totaling $8.62 million. Since that
time, Council held budget workshops and made several changes.
These include increasing Dial -a -Ride fares to $1 for regular and
750 for senior/handicap; adding to Aid to Agencies for the Ameri-
can Red Cross at $500 and EOC Homeless Shelter at $1,000; adding
another $1,000 to assist the Chamber of Commerce in the fireworks
celebration; and added $2,000 to the Community Promotions budget
for phased replacement of the City's Christmas Street decora-
tions. In order to fund these items, Council reduced the alloca-
tion to the Visitors and Conference Bureau from last year's
$29,500 to $25,000 ($31,100 was requested by the VCB).
Mr. Napper reviewed other budget highlights noting the budget is
balanced without the necessity of laying off personnel as some
other cities have been forced to do.
Mayor Sheetz opened the hearing to the public for comments.
Jonnie Eylar, Executive Director of the San Luis Obispo County
Visitors and Conference Bureau (VCB), stated she was surprised to
hear funding to the VCB was cut to $25,000 by the Council. Ms.
Eylar stated the VCB does not promote one City over another, and
reviewed the VCB budget in detail. She also discussed tourism
activities referred to Morro Bay and what these activities mean
to Morro Bay in dollars. Ms. Eylar detailed costs for various
forms of advertising and what it would cost Morro Bay if they had
to pay for it by themselves, emphasizing the benefits of the
cities pooling their monies to support the County VCB.
Ms. Eylar stated the increase in funding is requested because
costs have risen anywhere from 10% to 25%. Another reason is the
VCB goals to increase visitors to this County by 5% within the
next two years and increase visitor spending by $50.2 million
which means $7.4 million to Morro Bay. She realizes communities
are facing budget cuts; however, stated tourism and tourism
advertising is the way to see us through the rough times. The
return on the City's investment is about 4'k times what the VCB is
requesting.
MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING - JUNE 10, 1991
PAGE 15
Ed Biaggini, Embarcadero Inn owner and VCB member, stated it is
important to maintain the current funding to the VCB. There is
an annual occupancy rate of 52% in Morro Bay motels; most motels
have a break-even point of 50%. The VCB members believe the rate
is higher in Morro Bay because of the Community Promotions com-
mittee and the VCB. He said there is tremendous competition for
the tourist dollar, and it is necessary to advertise in order to
compete. He requested Council at least fund the VCB at the level
funded last year.
Nancy Bast requested Council consider the appropriateness of
awarding an agency in town $25,000 when the budget has had essen-
tial public works projects eliminated from it. If money is allo-
cated to the Chamber, they should be required to show what the
City is getting for the money; the organization should be apolit-
ical; and their books should be public information. She indi-
cated the Chamber has taken sides on political issues and candi-
dates in the past which has created hard feelings.
Jeff Solenberger, General Manager of The Inn at Morro Bay, stated
his business has doubled its advertising for 1991. He said he is
concerned about cutting funds to this Countywide organization.
He said the VCB was instrumental in bringing Princess Rail Tours
to The Inn at Morro Bay in 1990 which brought in $14,000 in tran-
sient occupancy tax for the City. He urged Council to reconsider
and allocate the $31,100 requested by the VCB.
Bob Blake stated he hoped Council will not cut-out recreational
swimming from the budget. It is a great benefit to many seniors
as well as others. It would be a disaster to eliminate it from
the budget.
Mayor Sheetz closed the hearing to the public.
Councilmember Luna stated during budget workshops he raised a
question about funding the Chamber, and Suedene Nelson said none
of our funds go to the Chamber; they are specifically for promo-
tions. Mr. Napper stated the City advertises each year for a
local visitors bureau; generally, the Chamber is the only one to
respond to the ad since they are specifically set up to do this
activity. Therefore, the contract is awarded to the Chamber and
the City does provide funds to them.
Councilmember Mullen stated she will abstaining from discussion
and voting on the Chamber of Commerce and Harbor Festival por-
tions of the budget.
Mayor Sheetz reviewed past years' allocations to the Chamber of
Commerce.
Councilmember Baker said tourism is the largest business in Morro
Bay, and it is big business. He said Morro Bay receives benefits
MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING - JUNE 10, 1991
PAGE 16
from this business noting with the prospective increase in tran-
sient occupancy tax to 9%, the income in total bed tax alone will
exceed $1 million this year. The City needs to advertise to keep
the business.
MOTION: Councilmember Baker moved Council restore the full
amount requested to the Visitors and Conference Bureau
at the rate of 3'% of the bed tax, $31,100; and, to
fund the request from General Fund Surplus monies be
used until monies are received from the increase in bed
tax to pay back the General Fund Surplus.
The motion died for lack of a send.
MOTION: Councilmember Wuriu moved the funding for the VCB be
set at the staff recommended level of $29,500. The
motion was seconded by Councilmember Baker.
Councilmember Wuriu stated he has been in the newspaper business
for a long time, and knows first-hand the value of advertising.
To get tourists to come to Morro Bay, we need to advertise and
let them know what is going on here.
Mayor Sheetz said she does not see why a reduction of $4,500 to
the VCB will cause a reduction in tourism.
Councilmember Mullen said the VCB is doubling its promotional
budget and she understands why. However, this is a tough time
when the City cannot continue its informal sports program; we are
raising rates on Dial -a -Ride; our roads are falling apart. She
said the City has been a major contributor of the VCB in the
past, and still plans to fund them in the amount of $25,000.
Councilmember Mullen said Morro Bay's bed tax has been dispropor-
tionately higher than any other agency in the County, and Morro
Bay has probably been paying more on that ratio alone. She said
if the 9% bed tax measure passes, the Council can look at an
increase at a later date.
Councilmember Luna agreed with Councilmember Mullen; he believes
the VCB is of worthwhile benefit to the City; however, with the
lean economic times, Council should stick with the $25,000 at
this time with perhaps the hope of restoring it either next year
or at the mid -year budget review.
Mayor Sheetz stated she appreciated Ms. Eylar's presentation, and
she does not doubt the worth of the VCB. However, the budget
represents many cuts, and no one is getting an increase this
year.
The motion failed with Councilmembers Luna, Mullen, and
Mayor Sheetz voting no. (2-3)
9
MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING - JUNE 10, 1991
PAGE 17
MOTION: Councilmember Luna moved Council approve the budget as
presented with amendments. The motion was seconded by
Mayor Sheetz.
Councilmember Mullen indicated she will be abstaining as to the
Chamber of Commerce and Harbor Festival portions of the budget.
SUBSTITUTE Councilmember Luna offered a Substitute Motion to
MOTION: adopt the changes as recommended from the budget work-
shop. Mayor Sheetz seconded the Substitute Motion and
it carried with Councilmember Baker voting no, and
Councilmember Mullen abstaining as to the Chamber of
Commerce and Harbor Festival portions of the budget.
(3-1-1)
D-6 HEARING ON PERFORMANCE AND COMPLIANCE REVIEW OF CABLE TELE-
VISION FRANCHISEE. SONIC CABLE TV OF SAN LUIS OBISPO
Mr. Napper stated Sonic just submitted a written request for
franchise modification to legalize their action in downsizing
cable services. The Cable TV Board has made a counter -proposal;
in order to give Sonic time to respond, it is recommended this
item be continued to the next meeting.
MOTION: Councilmember Mullen moved this item be continued to
the next meeting. The motion was seconded by Coun-
cilmember Luna and unanimously carried. (5-0)
� ril 9 L" WA "s W 4P 10i � I a
Mr. Henderson stated in the current Memorandum of Understanding
between the City and the Public Safety Employees, the City agreed
to provide for the Highest Single Year Compensation Benefit with
regard to retirement benefits effective this year. The document
presented this evening implements this provision with the Public
Employees Retirement System.
Mayor Sheetz opened the hearing to the public; there were no com-
ments and the hearing was closed.
MOTION: Councilmember Wuriu moved Ordinance No. 399 be read by
title and number only. The motion was seconded by
Councilmember Mullen and unanimously carried. (5-0)
Mr. Napper read Ordinance No. 399 by title and number only.
MOTION: Councilmember Mullen moved for adoption of Ordinance
No. 399 as an urgency measure. The motion was seconded
by Councilmember Luna and unanimously carried. (5-0)
0
MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING - JUNE 10, 1991
PAGE 18
E. CLOSED SESSION
E-1 GOVERNMENT CODE §54956.9(C); POTENTIAL LITIGATION
E-2 GOVERNMENT CODE §54956.8,'REAL PROPERTY NEGOTIATIONS
A. LEASE SITE 71-74W, 601-659 EMBARCADERO (MORRO BAY
MARINA, INC.)
B. PARCEL 5C, MORRO BAY/CAYUCOS JOINTLY -OWNED PROPERTY
NEAR SEWAGE TREATMENT PLANT (CAYUCOS SANITARY DISTRICT)
MOTION: Councilmember Luna moved the meeting adjourn to Closed
Session. The motion was seconded by Councilmember
Wuriu and unanimously carried. (5-0)
Mayor Sheetz read the Closed Session statement.
Council adjourned to Closed Session at 9:24 p.m. and returned to
regular session at 10:11 p.m.
F. ADJOURNMENT
MOTION: Councilmember Luna moved the meeting be adjourned. The
motion was seconded by Councilmember Mullen and unani-
mously carried. (5-0)
The meeting adjourned at 10:11 p.m.
Recorded byq///��
ARDITH DAVIS
City Clerk
0 0
City Of Morro Bay
City Council Agenda
Mission Statement
The City of Morro Bay is dedicated to the preservation and enhancement of the quality of life
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 - TUESDAY, MAY 28, 1991
VETERANS MEMORIAL HALL - 6:00 P.M.
209 SURF ST., MORRO BAY, CA
ROLL CALL
INVOCATION
PLEDGE OF ALLEGIANCE
PRESENTATION: PROCLAMATION ON "NATIONAL SAFE BOATING WEEK"
PUBLIC COMMENT PERIOD - Members of the audience wishing to address the
Council on City business matters (other than Public Hearings items under
Section D) may do so at this time. 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 (CITY COUNCIL)
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 13, 1991
A-2 EXPENDITURE REPORT - APRIL 1991
A-3 STATEMENT OF INVESTMENTS - APRIL 1991
A-4 RESOLUTION NO. 54-91 SPECIFYING THE CLASSIFICATION, COMPENSATION, AND
TERMS OF EMPLOYMENT FOR MANAGEMENT EMPLOYEES FROM JULY 1991 THROUGH
JUNE 1994
A-5 REJECTION OF LIABILITY CLAIM AGAINST THE CITY (HILLSTEAD)
A-6 REJECTION OF LIABILITY CLAIM AGAINST THE CITY (GARCIA)
A-7 REJECTION OF LIABILITY CLAIM AGAINST THE CITY (JOHNSON)
A-8 RESOLUTION NO 53-91 ACCEPTING OFFER OF DEDICATION OF RIGHT-OF-WAY ON
PINEY WAY AT SOUTH STREET (PARCEL MAP MB 89-454)
A-9 PROCLAMATION DECLARING JUNE 2-8, 1991 AS "NATIONAL SAFE BOATING WEEK"
1
A-10 RELEASE OF RECOMMENDED CITY BUDGET FOR FISCAL YEAR 1991-92 AND ESTAB-
LISHMENT OF BUDGET WORKSHOP SESSIONS ON JUNE 3RD, 5TH AND 6TH (AM)
A-11 RESOLUTION NO. 55-91 EXTENDING SERVICES OF GARY NAPPER AS CITY
ADMINISTRATOR OF MORRO BAY
A-12 APPROVAL OF DIRECTIONAL SIGNAGE PROGRAM FOR EMBARCADERO/HARBOR AREA
A-13 CHANGE IN CITY DELEGATES TO COUNTY SOLID WASTE MANAGEMENT BOARD
A-14 STATUS REPORT ON CITY WATER SUPPLY
A-15 RESOLUTION NO. 58-91 ESTABLISHING MORRO BAY'S PARTICIPATION IN AND
SUPPORT OF THE COALITION FOR COOPERATIVE GOVERNMENT IN SAN LUIS OBISPO
COUNTY
B. UNFINISHED BUSINESS
B-1 ORDINANCE NO. 398 ESTABLISHING REQUIREMENTS FOR OFF -SITE STREET
IMPROVEMENTS (CURBS, GUTTERS, SIDEWALKS, STREETS, AND STREET TREES)
UPON NEW OR EXPANDED CONSTRUCTION (SECOND READING/ADOPTION)
C. NEW BUSINESS
C-1 STATUS REPORT ON BAYSHORE VILLAGE CONDOMINIUM PROJECT AND BAYSHORE
BLUFFS PARK
C-2 PROGRESS REPORT ON CITY UNREINFORCED MASONRY (URM) BUILDING MITIGATION
PROGRAM
D. PUBLIC HEARINGS. REPORTS & APPEARANCES
D-1 HEARING FOR APPEAL BY PROPERTY OWNERS OF NOTICES TO ABATE WEEDS
D-2 RESOLUTION NO. 56-91 CALLING A SPECIAL MUNICIPAL ELECTION TO BE HELD
ON TUESDAY, 05 NOVEMBER 1991 FOR THE PURPOSE OF PLACING ON THE BALLOT
A MEASURE TO INCREASE THE CITY TRANSIENT OCCUPANCY TAX (BED TAX) FROM
8% TO 9% OR 10%; AND, REQUESTING THE BOARD OF SUPERVISORS OF SAN LUIS
OBISPO COUNTY TO CONSOLIDATE SAID ELECTION WITH THE CONSOLIDATED
DISTRICTS ELECTION TO BE HELD BY THE COUNTY OF SAN LUIS OBISPO ON 05
NOVEMBER 1991
D-3 CONSIDERATION OF CONCEPT PLAN TO PERMIT A 440 SQ.FT. PHASED EXPANSION
TO EXISTING COMMERCIAL USE AT 701 AND 715 EMBARCADERO (FLYING DUTCHMAN
ENTERPRISES, INC., APPLICANT; CUP 07-91) RESOLUTION NO. 57-91
D-4 REPORT ON REVIEW OF SEWER RATE CHARGE FOR RETIREMENT HOME/CONVALESCENT
HOSPITAL CATEGORY
D-5 EVALUATION AND POTENTIAL RECONSTITUTION OF MORRO BAY PLANNING
COMMISSION
D-6 HEARING ON PERFORMANCE AND COMPLIANCE REVIEW OF CABLE TELEVISION
FRANCHISEE, SONIC CABLE TV OF SAN LUIS OBISPO CONTINUE TO 10 JUNE 1991
2
E. CLOSED SESSION
E-1 GOVERNMENTS CODE §54956.9(C); POTENTIAL LITIGATION
E-2 GOVERNMENT ODE §54956.8, REAL PROPERTY NEGOTIATIONS
A. LEASE SITE 71/74W, 601-659 EMBARCADERO (MORRO BAY
B. VACANT CITY PROPERTY ADJACENT TO 1320 MAIN STREET
DUCK)
MARINA, INC.)
(DBA BT AND THE
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 28, 1991
VETERANS MEMORIAL HALL - 6:00 P.M.
Mayor Sheetz called the meeting to order at 6:00 p.m.
PRESENT: Rose Marie Sheetz
John Baker
Ben Luna
Susan Mullen
Tom Wuriu
ABSENT: None
STAFF: Gary Napper
Judy Skousen
Louise Burt
Ardith Davis
William Farrel
Don Funk
Forrest Henderson
Dave Howell
Nick Nichols
Horace Strong gave the invocation,
Allegiance.
Mayor
Councilmember
Councilmember
Councilmember
Councilmember
City Administrator
City Attorney
Finance Director
City Clerk
Community Dev. Dir.
Associate Planner
Asst. City Admin.
Police Chief
Public Works Dir.
and led the Pledge of
Mayor Sheetz read and presented a Proclamation declaring June
2nd-8th as "National Safe Boating Week" to Tom Smith, Public
Affairs Officer of the Coast Guard Auxiliary. Mr. Smith stated
he represents Flotilla #61 and on their behalf, thanked everyone
that supports the Coast Guard Auxiliary.
1. Bob Finley, Chairman of the Chamber of Commerce URM
Committee, stated their recommendation with regard to the URM
Ordinance is to adopt the State standards and extend the time to
comply to the year 2007. He discussed the difficulty small busi-
nesses have in financing improvements to their structures. If
the time is extended, it will give property owners time to set
aside funds for retrofitting their buildings.
2. Nelson Sullivan commented on Item A-11 extending the
City Administrator's contract. He said he complained four years
ago about the City Administrator's and City Attorney's treatment
of a voters' initiative he had proposed; he said they violated
MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING - MAY 28, 1991
PAGE 2
Election Codes. He stated Council is remiss if they do not get a
second opinion of their actions on this matter. He requested
Council hold -off on this item as it could have extensive legal
ramifications to the City.
3. Dale Reddell, 680 Sequoia Court, said he totally dis-
agrees with Mr. Sullivan. He asked that Item A-14 on the water
supply status be read so the public is aware of the water status.
4. Barbara Sanders, representing the Scenic Coast Board of
Realtors, read a letter she signed as Chair of the Political
Affairs Committee along with Board President Charles Murdy. The
letter addressed comments made by Mayor Sheetz at the last Coun-
cil meeting with regard to her appearance before "a Board of
Realtors". Ms. Sanders stated Mayor Sheetz has not made an
appearance before their Board, and the Board does not support the
ordinance requiring retrofitting at the time of sale recently
adopted by Council. Ms. Sanders estimated the costs to retrofit
a bathroom at $195. She said the Board of Realtors is willing to
work with the City, but they have not been asked their opinion.
5. John Lemons, 419 Shasta, commented on Council's recent
decision to drop the State Water Project, Coastal Streams Diver-
sion project, and San Bernardo Creek Dam Project from the City's
list of priority supplemental water projects. He noted an August
1990 opinion from the City Attorney emphasizing the City's
responsibility to provide a realistic, viable alternative source
of water to avoid liability for "taking" property. He urged
Council to advise the County they wish to participate in the
State Water Project.
Mayor Sheetz asked Ms. Skousen to respond to Mr. Sullivan's com-
ments. Ms. Skousen stated she and Mr. Napper did not do anything
illegal; she also said the statute of limitations has passed
regarding that proposed initiative.
Mayor Sheetz stated with regard to Ms. Sanders' comments, Mayor
Sheetz did not state she spoke before the Scenic Coast Board of
Realtors; she said "a board of realtors" which happened to be
Prudential Realty.
Mayor Sheetz asked Ms. Skousen to respond to Mr. Lemons' comments
on the State Water Project. Ms. Skousen stated the opinion Mr.
Lemons quoted stated Council must offer a "reasonable, viable
alternative" water source. Reclamation is a reasonable, viable
alternative; it does not specifically have to be State Water.
Mr. Sullivan said Ms. Skousen misinterpreted what he said. Mayor
Sheetz asked Council if they wished to pursue the matter and
Council indicated they did not.
MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING - MAY 28, 1991
PAGE 3
DECLARATION OF EUTURE AGENDA ITEMS
A. CONSENT CALENDAR
A-1 CITY COUNCIL MINUTES OF THE REGULAR MEETING OF MAY 13, 1991
Mr. Napper recommended Council approve the minutes as submitted.
A-2 EXPENDITURE REPORT - APRIL 1991
Mr. Napper recommended Council approve the Report as submitted.
A-3 STATEMENT OF INVESTMENTS - APRIL 1991
Mr. Napper recommended Council accept the Statement for file.
A-4 RESOLUTION NO, 54-91 SPECIFYING THE CLASSIFICATION. COMPEN-
SATION, AND TERMS OF EMPLOYMENT FOR MANAGEMENT EMPLOYEES
FROM JULY 1991 THROUGH JUNE 1994
Mr. Napper recommended Council adopt Resolution No. 54-91.
A-5 REJECTION OF LIABILITY CLAIM AGAINST THE CITY (HILLSTEAD)
Mr. Napper recommended Council reject the claim, and authorize
the City Clerk to send the rejection notice.
A-6 REJECTION OF LIABILITY CLAIM AGAINST THE CITY (GARCIA)
Mr. Napper recommended Council reject the claim, and authorize
the City Clerk to send the rejection notice.
A-7 REJECTION OF LIABILITY CLAIM AGAINST THE CITY (JOHNSON)
Mr. Napper recommended Council reject the claim, and authorize
the City Clerk to send the rejection notice.
A-8 RESOLUTION NO 53-91 ACCEPTING OFFER OF DEDICATION OF RIGHT-
OF-WAY ON PINEY WAY AT SOUTH STREET (PARCEL MAP MB 89-454)
Mr. Napper recommended Council adopt Resolution No. 53-91.
A-9 PROCLAMATION DECLARING JUNE 2-8. 1991 AS "NATIONAL SAFE
BOATING WEEK"
Mr. Napper recommended Council authorize the Mayor to sign the
Proclamation.
MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING - MAY 28, 1991
PAGE 4
A-10 RELEASE OF RECOMMENDED CITY BUDGET FOR FISCAL YEAR 1991-92
AND ESTABLISHMENT OF BUDGET WORKSHOP SESSIONS ON NNE 3RD.
5TH AND 6TH (AM)
Mr. Napper recommended Council receive the Proposed Budget, and
set the budget calendar of hearings and workshops.
A-11 RESOLUTION NO, 55-91 EXTENDING SERVICES OF GARY NAPPER AS
CITY ADMINISTRATOR OF MORRO BAY
Mr. Napper recommended Council adopt Resolution No. 55-91.
A-12 APPROVAL OF DIRECTIONAL SIGNAGE PROGRAM FOR EMBARCADERO/
HARBOR AREA
Mr. Napper recommended Council approve the directional signage
program for the Embarcadero/Harbor area.
A-13 CHANGE IN CITY DELEGATES TO COUNTY SOLID WASTE MANAGEMENT
BOARD
Mr. Napper recommended Council appoint Michael Upton as voting
delegate, and Nick Nichols as alternate.
A-14 STATUS REPORT ON CITY WATER SUPPLY
Mr. Napper recommended Council receive the report for file.
A-15 RESOLUTION NO, 58-91 ESTABLISHING MORRO BAY'S PARTICIPATION
IN AND SUPPORT OF THE COALITION FOR COOPERATIVE GOVERNMENT
IN SAN LUIS OBISPO COUNTY
Mr. Napper recommended Council adopt Resolution No. 58-91.
Councilmembers Mullen and Wuriu requested Item A-12 be pulled for
separate discussion, Mayor Sheetz pulled Item A-14 for oral
report.
A-12 APPROVAL OF DIRECTIONAL SIGNAGE PROGRAM FOR EMBARCADERO/
HARBOR AREA
Councilmember Mullen asked if there has been any progress in get-
ting merchants to help pay for the signage program. Mr. Napper
stated staff will ask for their financial help once Council
approves the program.
Councilmember Wuriu asked if the signs on the Embarcadero will
tie into a larger plan for signage in the uptown area also? Mr.
Napper stated at the time this program was discussed, it was
focused on the Embarcadero area and directing people to public
restrooms. This program will be assessed and staff will return
to Council with plans for an expanded program. Mr. Napper stated
MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING - MAY 28, 1991
PAGE 5
staff has been in contact with CalTrans to find out if the City
can place some directional signage on Highway One.
Councilmember Baker asked about signage on the Embarcadero
directing people to the downtown area. Mr. Napper stated Paul
Donnelly donated signs directing people to the downtown and
Embarcadero areas; those have been installed. Councilmember
Baker said he would like to see more.
A-14 STATUS REPORT ON CITY WATER SUPPLY
Mr. Nichols reviewed his report.
MOTION: Councilmember Wuriu moved for the approval of Items A-
12 and A-14. The motion was seconded by Councilmember
Luna and unanimously carried. (5-0)
B. UNFINISHED BUSINESS
B-1 ORDINANCE NO, 398 ESTABLISHING REQUIREMENTS FOR OFF -SITE
STREET IMPROVEMENTS (CURBS. GUTTERS. SIDEWALKS. STREETS, AND
STREET TREES) UPON NEW OR EXPANDED CONSTRUCTION (SECOND
READING/ADOPTION)
Mr. Napper stated Ordinance No. 398 is presented for adoption
this evening; the Ordinance will go into effect on June 27th.
MOTION: Councilmember Luna moved Ordinance No. 398 be read by
title and number only. The motion was seconded by
Councilmember Wuriu and unanimously carried. (5-0)
Mr. Napper read Ordinance No. 398 by title and number only.
MOTION: Councilmember Luna moved for the adoption of Ordinance
No. 398 as second and final reading. The motion was
seconded by Councilmember Mullen and unanimously
carried. (5-0)
C. NEW BUSINESS
C-1 STATUS REPORT ON BAYSHORE VILLAGE CONDOMINIUM PROJECT AND
BAYSHORE BLUFFS PARK
Mr. Farrel reviewed the progress on this project: Phase I has
been constructed; Phase II is awaiting final inspection/occupancy
approval; and foundation work has begun on Phase III. He stated
there is a minor list of items to complete on the park.
Mayor Sheetz asked what is being done regarding the 13 trees that
were illegally cut down? Mr. Farrel said the City has done some
remedial action, and the trees are going to be replaced. Mayor
Sheetz said in the future any type of landscape work should not
• !
MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING - MAY 28, 1991
PAGE 6
be allowed on the weekends when no one from the City is around to
enforce ordinances.
Councilmember Mullen asked when the park improvements are
required to be completed? Mr. Farrel stated before final occu-
pancy of the project (Phase Iii).
Councilmember Mullen was concerned about the two-story buildings
along Main Street; she thought the houses along Main Street were
supposed to be single story. Mr. Farrel stated the houses were
built according to the original plan.
Councilmember Wuriu commented on the brochure Bayshore is circu-
lating to sell the units and which depicts a "proposed marina"
and prospective property owners opportunity to have "first
chance" at mooring space. Mr. Napper stated he has written a
letter to the realtor involved advising him there is no
"proposed" marina application before the City, and they should so
inform parties interested in purchasing a unit.
Mr. Farrel reviewed the status of URM buildings and the 16 prop-
erties in various stages of compliance. He said the major prob-
lem is the requirement for initial assessment and submission of
plans for rehabilitation or demolition within one year after the
property owner is ordered to comply. He noted the difficulties
encountered by the URM property owners, and said perhaps the one
year period for assessment work and engineering was too strin-
gent. Mr Farrel suggested amending the Ordinance to extend the
deadline after service of the order to comply. He noted recently
updated standards by the California Seismic Safety Commission
have reduced the requirements for 50% steel reinforcement in new
construction to 25%, which cuts costs somewhat.
Councilmember Baker suggested URM property owners be allowed an
extended period in which to comply. Mr. Farrel commented the
real problem is deciding what to do and developing plans. Coun-
cilmember Baker requested the item return to staff to amend the
ordinance to allow a six year term for compliance beginning July
1992, rather than the current six years from January 1990. July
1992 is the suggested deadline date for submitting plans.
Mr. Napper stated Council can always amend the ordinance at a
later date if the compliance period appears to be more stringent
than property owners can handle. He noted when the Ordinance was
prepared, there was some urgency because of State requirements.
People have known since 1989 they have six years to comply. He
suggested the City not get into the business of financing the
projects, but perhaps facilitate an assessment district process
MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING - MAY 28, 1991
PAGE 7
whereby the property owners agree to assess themselves a cost
that will be applied to their property tax bills.
Councilmember Wuriu said he agrees with the staff recommendation
to extend the filing date and waive penalties at the present
time; however, he does not believe the date to complete the work
should be extended. He commended the staff work on this program,
and said the Building Inspector has shown understanding and tried
to be reasonable.
Councilmember Mullen said in a letter from Gary Gillman of the
Chamber of Commerce, he requests the alternative to install wall
anchors be eliminated because of costs. Mr. Farrel stated it is
an option in the Ordinance the property owner can use if he
wishes; there is no harm in leaving it in.
Councilmember Mullen said she supports the July 1992 extension
for filing plans, but prefers to keep the 1996 date for compli-
ance. Mayor Sheetz believes the City is being reasonable and is
in favor of the staff recommendation.
MOTION: Councilmember Baker moved the compliance date be
extended to July 1998.
The motion failed for lack of a second.
Councilmember Mullen asked about establishing an assessment dis-
trict. Mr. Napper stated lenders feel more comfortable with the
City involved, and it could enable property owners to obtain a
commercial loan through the district's formation.
Councilmember Luna asked what kind of financial impact an assess-
ment district will have on the City? Mr. Napper said primarily
just staff time and process; City costs will be rolled into the
pay-off of the loan.
MOTION: Councilmember Wuriu moved staff be instructed to pre-
pare amendments to the Municipal Code adopting the 1991
Edition of the Uniform Code of Building Conservation,
and to allow prospective URM's until 01 July 1992 to
file intended plans to rehabilitate or demolish their
unsafe structure. The motion was seconded by Coun-
cilmember Luna and carried with Councilmember Baker
voting no. (4-1)
Mayor Sheetz commented the State Department of Housing and Commu-
nity Development has made money available for seismic rural
rental housing, but they have made nothing available for URM com-
mercial buildings.
MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING - MAY 28, 1991
PAGE 8
D. PUBLIC HEARINGS. REPORTS & APPEARANCES
For-1 HEARING FOR APPEAL BY PROPERTY OWNERS OF NOTICES TO ABATE
WEEDS
Mr. Nichols stated the Municipal Code requires lots with weeds to
be mowed to alleviate a fire hazard in the City. 650 notices
were sent out, and this is the time for people to appeal the
notices; no written notices have been received by staff. Mr.
Nichols requested Council refer any appeals to staff for report
back to Council after investigation.
Mayor Sheetz opened the hearing to the public; there were no
appeals and the hearing was closed.
No further action was required.
Mr. Napper reported several jurisdictions are taking action to
increase their transient occupancy tax (TOT) in to order raise
funds to counter the cuts in the State budget that have dominoed
down to counties and cities. The County and City of San Luis
Obispo have already increased their rates to 9%, and the City of
Pismo Beach is placing a 10% increase before the voters at the
November 1991 election. He said Morro Bay's TOT is 8% which was
last raised from 6% in 1983. He noted the impacts tourists have
on city services, and suggested Council place the matter before
the voters requesting a 2% increase in the tax for a total 10%
TOT. He noted Council has first option to write an argument in
favor of the measure.
Councilmember Luna asked how the TOT is providing City services
impacted by the tourists? Mr. Napper said it is difficult to
assess the impacts statistically. The matter was studied some
time ago when the City was trying to determine the impacts of the
recreational vehicle population on City services; and, while it
was determined there is a definite impact, he does not have
definitive figures this evening.
Councilmember Baker stated the Proposed Budget estimates revenue
from TOT at $400,000; is that with or without the increase? Mr.
Napper stated the proposed budget does not include the increase.
MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING - MAY 28, 1991
PAGE 9
Councilmember Wuriu commented there is some fear on the part of
the motel and tourist businesses a good part of an increase in
tax will not be spent to promote tourism. He asked if the Reso-
lution presented promotes that. Mr. Napper stated the Resolution
is worded so the tax is not set for a specific purpose; this
allows Council discretion on how they will allocate the monies.
Expected revenues for this year's budget are down, and it is not
known how much further fiscal damage may be assessed; the State
is currently looking at motor vehicle in lieu funds. Also, if
the Resolution specifies where the tax will go, it will take a
2/3rd majority vote to pass the measure. Mr. Napper believes
there is no other type of tax he can recommend that will be
approved by the voters.
Councilmember Wuriu asked if Morro Bay is better off financially
than other cities? Mr. Napper stated yes; however, if the econ-
omy does not turn around or the State budget deficit is not
solved, there will undoubtedly be lay-offs and cut -backs in City
services in the future. The State is shifting financial burdens
to the cities.
Mayor Sheetz reviewed the proposed allocations for community pro-
motions which is approximately $100,000 this year. She opened
the hearing to the public for comments.
Ed Biaggini, President of the Motel, Hotel and Restaurant Associ-
ation, asked the members of that organization represented at the
meeting this evening to stand up. He said based on the economy,
the Association is prepared to support a 9% TOT, but believe 10%
is not consistent and has no place in Morro Bay. He said the
motel/hotel owners are fighting for their life. He stated the
California bed tax average, as reported in 1988 by the League of
California Cities, is 7.6%; with changes over the last two years,
the average may be as high as 8.6%.
Councilmember Mullen asked if the Association would consider
funding signs on the Embarcadero? Mr. Biaggini invited Coun-
cilmember Mullen to talk to them; no one has asked yet.
Ray Kaltenbach said the TOT in Los Angeles is 11%; lots of places
have more than 10%. He encouraged Council to follow the staff
recommendation and approve a 10% increase; tourists should pay
their fair share.
Skip Fleming, Fireside Inn, said Council needs to look at the
overall picture. He said almost without exception, every major
motel chain in the United States is in on the verge of Chapter 11
or in a merger. He said the economic health of the motel indus-
try is not good at this time. He requested Council not adopt a
10% increase.
MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING - MAY 28, 1991
PAGE 10
Charles Palmer, 485 Estero, stated Council should consider the
fact the motel industry has just had a 30% increase in water
rates, and there will be another 25%-30% increase to help pay for
the desal plant. He is concerned they may not be able to handle
a bed tax increase on top of it.
Fred Smith stated he has managed a motel for 15 years; when the
last increase to 8% was adopted, it hurt business and people went
elsewhere. With occupancy down, the City will lose more than it
will gain by an increase. San Luis Obispo County and City has
had a lower TOT rate than Morro Bay for a number of years; if
they are going to 9%, it's time the motel owners in Morro Bay had
a break and keep TOT in Morro Bay below that.
Suedene Nelson, Chamber of Commerce Executive Manager, stated she
conducted a telephone survey today, and only one of the 37 busi-
nesses she called was in favor of a bed tax increase; the others
were not.
Mayor Sheetz closed the hearing to the public.
Councilmember Luna said he has concerns about raising the tax to
10% and placing this burden of economic stress solely on the
Motel Association. He will support a 9% increase.
Councilmember Wuriu said under no circumstances will he support a
10% TOT; he will consider 9% only in view of budget needs.
Councilmember Baker said this has been an off year for businesses
economically, and last Memorial Day weekend is not going to solve
a lot of problems. He commended the Motel Association on their
support of a 1% increase, and stated Morro Bay's competition is
not Santa Barbara or Monterey; it is San Simeon and Cayucos. He
said if a 9% TOT is approved it will result in $1 million per
year; property tax only brings in $1.25 million. He believes the
tourists are paying their fair share.
Councilmember Mullen said, after hearing testimony this evening,
she will support a 9% TOT.
Mayor Sheetz stated in discussing this matter with the Mayors of
other cities, they were attempting to achieve uniformity to pre-
clude competition between areas because of a difference in bed
tax rate. She agrees with Council to support a 9% TOT.
MOTION: Councilmember Wuriu moved for adoption of Resolution
No. 56-91 placing the transient occupancy tax rate
increase at 9%. The motion was seconded by Councilmem-
ber Baker and unanimously carried. (5-0)
Council consensus was they will write the ballot argument in
favor of the measure.
MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING - MAY 28, 1991
PAGE 11
Don Funk reviewed the request for a Conditional Use Permit to
construct a phased expansion of the existing restaurant and fish
market at Lease Site 78-81W, Flying Dutchman. The plan includes
remodeling and reducing the existing fish processing plant;
adding a gift store space in front; including a view corridor in
the middle of the two sites; upgrading the restaurant; face-lift
for the outside; adding a public observation deck. Mr. Funk
stated the Planning Commission determined any loss of view due to
the architectural extensions on the roof would be offset by the
additional view corridors in the project. He said the actual
impacts of the project were reductions: the seating area in the
restaurant has been reduced and, therefore, the parking require-
ments are reduced. One of the conditions of the project is to
provide public restrooms and that they be signed accordingly.
The applicant requests he be required to sign the restrooms on
the interior of the building only, not outside. The Planning
Commission approved this request; however, the Harbor Director is
recommending Council require the signage on the outside of the
building in accord with Council policy.
Councilmember Wuriu asked if the roof structure will create view
problems? Mr. Funk does not believe it is something one would
readily notice; some of it is already there and the applicant is
proposing architectural enhancements. Councilmember Wuriu asked
about the applicant's reluctance to place the restroom sign on
the exterior of the building. Mr. Funk stated the applicant does
not want the sign on the exterior; staff believes because the
property is public property, the restroom will serve a public
benefit and should be identified.
Mayor Sheetz opened the hearing to the public for comments.
Marshall Ochylski, representing the applicant, stated they sup-
port the Planning Commission recommendation to Council. He noted
the City's position the more restrooms that can be obtained, the
less burden there is on any one business. He said the problem is
this is the first business in the area and the burden will be
placed on them. The applicant has no objection to signing the
restroom as available to the public on the inside of the build-
ing. If they are required to sign the outside, the applicant re-
quests they be reimbursed at the rate of $360 per month for main-
tenance, which is similar to the City's arrangement with Jim Maul
on his lease site. Mr. Ochylski commented on the height of the
building appurtenances stating one shields the chimney from view,
and the cupola ties the two buildings together architecturally.
MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING - MAY 28, 1991
PAGE 12
Nancy Bast stated there is a 17 foot height limit on the
Embarcadero; once Council makes exceptions to that, it is very
easy to continue granting exceptions. She said the cupola on the
restaurant is much shorter, and the enlargement will be 2/3rds
more. She discussed the effect this will have on views. She
said people complain about the deteriorating fishing industry,
and one of the reasons is the lack of facilities on the bay. Ms.
Bast objected to the consolidation of lease sites; she said there
are only a limited number of them, and when they are consoli-
dated, they become attractive for major development. It is pub-
lic land and Council has a responsibility to keep it available to
the entire public.
Stan Van Beurden, applicant, emphasized the added view corridors
in the development, and stated the architectural appurtenances
are to hide the exhaust fan. He said they are not eliminating
the fish processing aspect of the lease, and the two leases are
not being consolidated.
Mayor Sheetz closed the hearing to the public.
Councilmember Luna asked if the cupola could be brought down in
conformance with the height limit and linked with lattice work.
Mr. Ochylski said the original proposal included lattice work;
however, the different height appurtenance were added to give
variety to the structure.
Councilmember Mullen asked what are the heights? Mr. Funk stated
the existing cupola is 24 feet, the middle one will be 21 feet,
and the one on the fish processing plant 17 feet.
Councilmember Wuriu commented it is a good project in general.
There was discussion regarding restroom signage on the
Embarcadero. Mr. Napper noted Mr. Maul is not being compensated
for the use of his restrooms, but Jim George at the Embarcadero
Center is receiving reimbursement for use of his restrooms as
public facilities.
Mayor Sheetz stated the proposal is very good; the Van Beurdens
have been very successful in their enterprises, and she believes
any project they are involved in will be done in good taste. She
stated she is in favor of restroom signage on the outside of the
building. Councilmember Baker agreed. It was noted the proposed
Resolution includes that requirement (Condition B-11).
MOTION: Councilmember Baker moved for the adoption of Resolu-
tion No. 57-91. The motion was seconded by Councilmem-
ber Wuriu and unanimously carried. (5-0)
MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING - MAY 28, 1991
PAGE 13
Mr. Nichols stated Council direction on this item at their April
22nd meeting was to find out what other local agencies charged
for sewer rates for convalescent hospitals. He stated most
cities have a rate structure similar to Morro Bay's, but do not
have separate user categories for convalescent or retirement
homes. They tend to charge these users the basic commercial rate
based on water use. Staff recommends retirement home/convales-
cent hospital be charged the commercial (domestic strength) rate
for sewer charges effective 01 June 1991.
Mayor Sheetz opened the hearing to the public.
Ken Cess, SeaShell Communities, stated he appreciates staff is
now recommending the commercial domestic strength rate. He is
willing to compromise, and this is an acceptable compromise. He
said it will result in a $1,200 reduction per month in his sewer
bill. Because of the compromise, he will not seek retroactivity
and this solution avoids any court of law proceeding.
Charles Palmer suggested the City allow SeaShell Communities to
individually meter each of its units so the tenants can be
responsible for the water they use.
Mayor Sheetz closed the hearing to the public.
MOTION: Councilmember Baker moved Council authorize the cate-
gory of retirement home/convalescent hospital to be
charged the City's commercial (domestic strength) rate
for sewer charges effective 01 June 1991. The motion
was seconded by Councilmember Luna and unanimously
carried. (5-0)
Council recessed from 8:23 p.m. to 8:33 p.m.
D-5 EVALUATION AND POTENTIAL RECONSTITUTION OF MORRO BAY
PLANNING COMMISSION
Mr. Napper stated Council requested this item be scheduled on
this agenda; a copy of the Municipal Code section governing the
Planning Commission has been included for Council information.
Mayor Sheetz opened the hearing to the public for comments.
Keith Jeffreys, 535 Bernardo, called for the removal of Planning
Commissioners Clarke, Allen and Boyd. He said this is not a per-
sonal attack, conspiracy, or growth/no growth issue. It is due
to the Planning Commission's failure to adequately adhere to the
General Plan and implement Measure H adopted by the voters last
November. Mr. Jeffreys reviewed the record regarding this mat-
MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING - MAY 28, 1991
PAGE 14
ter, and presented petition signatures calling for these Planning
Commissioners' removal.
Ray Kaltenbach stated every time the opposition loses, the money
people find loop -holes in the law. He asked why have the initia-
tive process if the elected officials do not do their job?
Dale Reddell, 680 Sequoia Court, stated he wished to set the
record straight with regard to a statement from Roger Ewing
printed in the Telegram -Tribune. Mr. Ewing accused Mr. Reddell
of disbanding the Planning Commission when Mr. Reddell was Mayor;
this is untrue. He said the Voters Initiative Committee (VIC) is
composed of Civic Action League (CAL) members Bruce Risley and
Peter Diffley, and asked if CAL has changed to VIC? He reminded
Council they were elected to Council to run the City, not VIC.
Charles Palmer stated people should not be removed from office
because of differences of opinion; only if they are dishonest or
misusing their office. That is not the case; this is an emo-
tional issue, and the Planning Commission should remain in
office.
Suedene Nelson, Executive Director of the Chamber of Commerce,
said she attends most meeting of the Planning Commission and does
not believe there is a plot afoot to create problems for VIC.
All issues have been well thought out and reasons stated for
decisions made. The Planning Commissioners are honest men and
there is no reason to remove them.
Peter Diffley reminded Council the Harbor Commission was oblit-
erated during Mr. Reddell's term in office. He noted the ordi-
nance states the Planning Commission serves at the pleasure of
the City Council, and commented on the number of times appeals
from the Planning Commission have come before Council. He said
in the past few years the Planning Commission has not really set
its heart on what is good for the City, and he referred to the
Williams Brothers EIR where the Planning Commission disregarded
the Land Use Plan rules.
Nelson Sullivan stated in response to review of the City's Annual
Water Report, four Planning Commissioners recommended Council do
its best to over -turn Measure I which was approved by the voters
last November; and it is not even a planning issue. On that
basis alone, he believes the Planning Commission should be
removed from office.
Dan Reddell said Measure H won by a handful of voters and is not
a mandate from the people. He said VIC is forcing their will on
the City through their influence with a majority of the City
Council. He said VIC manipulates the press and misrepresents the
facts. He referred to a successful recall effort in 1980, and
MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING - MAY 28, 1991
PAGE 15
said the Councilmembers recalled at that time were represented by
the same people that represent VIC.
Christine Granados, 2100 Bayview and President of VIC, stated she
has lived in Morro Bay for twelve years and this is the first
time she has been involved in a political action committee. She
said no one is pulling her strings; she got involved because the
project planned for the hillside is ill -designed. She said the
Planning Commission has been using delaying tactics to keep Mea-
sure H from the Coastal Commission. Those members of the Plan-
ning Commission who publicly opposed Measure H are using their
office to stop its implementation.
Chucke Clarke, 2205 Nutmeg and Chairman of the Planning Commis-
sion, said there are two underlying issues to the plan to purge
the Planning Commission: first is whether we ought to have a
shopping center here and what size it should be; and the second
has to do with the City's conduct according to fundamental demo-
cratic precepts. He said his voting on the shopping center has
been governed by the assumption the people of Morro Bay support a
shopping center smaller than the one originally proposed by
Williams Brothers. He said it is the Planning Commission's duty
to recommend to Council a technically feasible footprint of the
project. He said the Planning Commission has acted with prudence
and within the law; there is no legal justification for Council
to purge the Commission.
Ed Smith said there are two types of opinions coming out of the
Planning Commission; the opinion they ought to have and the opin-
ion Council wants them to have. He said this is a degrading
thing in our time.
Thomas Walter, 385 Arbutus, said the current Planning Commission
has repeatedly not acted in conjunction with the will of the cit-
izens and sometimes in direct conflict with the City's laws. He
said the current lawsuit is a burden on the taxpayer. He said
there were many oversights regarding the Williams Brothers pro-
ject as noted by the Coastal Commission.
Bruce Risley reminded Council during the last election people
took sides over Measure H and one of the Council candidates,
Chucke Clarke, was supported by Williams Brothers. He said when
Measure H was before the Planning Commission, the Williams
Brothers' hired guns told them what to do, and that is what they
did.
Ross Boyd, 265 Kern and Planning Commissioner, said he made the
motion to continue the Measure H item. He described Measure H's
process through the Planning Commission and stated he has acted
in accordance with the responsibilities entrusted to him, with
the people's will regarding Measure H as his guide. He suggested
Williams Brothers get together with the people involved to see if
MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING - MAY 28, 1991
PAGE 16
it was possible to arrive at an equitable plan. Williams
Brothers did not respond; and, if no agreement could be arrived
at, he was prepared to vote in favor of the City's recommendation
for Measure H at the Commission's June 3rd meeting. To his
knowledge the Planning Commission has not violated any law; there
is a difference of opinion. Mr. Boyd quoted from a treatise on
municipal corporations and requested the City Attorney research
Council's authority to dismiss the Planning Commission.
Mayor Sheetz closed the hearing to the public.
Ms. Skousen identified the source from which Mr. Boyd was reading
and stated it applied to city employees rather than boards and
commissions. Further in the citation, it states advisory boards
serve according to the rules the legislative body sets for them.
Councilmember Wuriu stated the charge has been made the Planning
Commission is deliberately thwarting the will of the people.
After investigation and reading a considerable amount of mate-
rial, he cannot find evidence the Planning Commission violated
any ethical or legal statutes of their office. He said most of
the delays were caused inadvertently by planning staff and prop-
erty owners' errors. He reviewed the dates when the issue was
before the Planning Commission. He believes the Commissioners
might have been overly generous to the property owners, but it
must be remembered the ultimate goal is to arrive at a plan for a
badly needed new shopping center. Some delays, if there are
improved chances for a compromise plan, are acceptable. Coun-
cilmember Wuriu stated Measure B was passed in 1986, and was not
implemented until 1989. He said the proposal to the fire the
Planning Commission is without merit on the basis of available
evidence.
Councilmember Baker commented when recruiting for advisory
boards, the City seldom has more people than enough to fill the
vacancies; fortunately, the applicants have been good. The three
Planning Commissioners targeted for dismissal are superb. To
dismiss them because of a difference of opinion is wrong. They
should be retained.
Councilmember Mullen read from a letter which she said is repre-
sentative of the type of communications she has been receiving
for the last two weeks. It dealt with the fear of people to sign
their name to a petition they may be in favor of for fear of
being sued, resulting in a loss of freedom of speech. Coun-
cilmember Mullen stated she has reviewed the Municipal Code sec-
tion on the Planning Commission which states they serve at the
pleasure of Council; she said she has not been pleased with the
Planning Commission and will support restructuring.
Councilmember Luna stated when he campaigned for office, one of
the reoccurring themes from the people was their support of Coun-
• •
MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING - MAY 28, 1991
PAGE 17
cilmember Mullen and him because they represented a fresh start.
The restructuring of the Planning Commission is not which faction
supports what in the City. At this time, the current Planning
Commission needs restructuring and revitalization.
Mayor Sheetz stated whenever a breach of this type is reached in
any organization, it is extremely difficult to repair. She said
as an elected official she does not like to be threatened by mem-
bers of the community, yet this has occurred.
MOTION: Mayor Sheetz moved the entire Planning Commission be
terminated and reconstructed. The motion was seconded
by Councilmember Luna.
Councilmember Baker commented Mayor Sheetz sat on the interview
panel with Councilmember Wuriu and him, and endorsed the Planning
Commission members she now wants to dismiss; was her judgment in
that instance bad? Mayor Sheetz said people are hired with the
hope they will do a good job; sometimes they do not fulfill that
hope. There has been too much of a breach for her to work com-
fortably with the current Planning Commission.
Councilmember Wuriu said the comment was made this is not per-
sonal. He believes it is personal, as personal as you can get;
make no mistake about it.
Councilmember Mullen stated the Planning Commission has certain
responsibilities and are appointed by Council. She ran on a
fresh approach, and wants that for the City. Councilmember Mullen
called for the question.
The motion to end debate carried with Councilmember
Baker voting no. (4-1)
The main motion carried with Councilmembers Baker and
Wuriu voting no. (3-2).
MOTION: Mayor Sheetz moved the City Council appoint itself as
Planning Commissioners until new ones can be appointed.
The motion was seconded by Councilmember Mullen and
carried with Councilmembers Baker and Wuriu voting no.
(3-2)
MOTION: Councilmember Luna moved this item be continued to June
loth. The motion was seconded by Councilmember Mullen
and unanimously carried. (5-0)
MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING - MAY 28, 1991
PAGE 18
E. CLOSED SESSION
E-2 GOVERNMENT CODE §54956.8. REAL PROPERTY NEGOTIATIONS
A. LEASE SITE 71/74W, 601-659 EMBARCADERO (MORRO BAY
MARINA, INC.)
B. VACANT CITY PROPERTY ADJACENT TO 1320 MAIN STREET (DBA
BT AND THE DUCK)
MOTION: Councilmember Luna moved the meeting adjourn to Closed
Session. The motion was seconded by Councilmember
Baker and unanimously carried. (5-0)
Mayor Sheetz read the Closed Session announcement.
The meeting adjourned to Closed Session at 9:28 p.m. and returned
to regular session at 10:16 p.m.
F. ADJOURNMENT
MOTION: Councilmember Luna moved the meeting be adjourned. The
motion was seconded by Councilmember Wuriu and unani-
mously carried. (5-0)
The meeting adjourned at 10:16 p.m.
Recorded by:
ARDITH DAVIS
City Clerk
791r /3, l�ql
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 - MAY 13, 1991
VETERANS MEMORIAL HALL - 6:00 P.M.
209 SURF ST., MORRO BAY, CA
ROLL CALL
INVOCATION
PLEDGE OF ALLEGIANCE
PRESENTATION "NATIONAL POLICE WEEK"/"POLICE MEMORIAL DAY" PROCLAMATION TO
POLICE CHIEF DAVE HOWELL
PUBLIC COMMENT PERIOD - Members of the audience wishing to address the
Council on City business matters (other than Public Hearings items under
Section D) may do so at this time. 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 (CITY COUNCIL)
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 22, 1991
A-2 APPROVAL OF COMMUNITY PROMOTIONS COMMITTEE BY-LAWS
A-3 ACCEPTANCE OF RESIGNATION FROM RECREATION AND PARKS COMMISSION
(BALDWIN) AND AUTHORIZATION TO ADVERTISE VACANCY
A-4 ESTABLISHMENT OF RECREATION AND PARKS SURCHARGE FEE FOR MAINTENANCE/
REPLACEMENT OF SPORTSFIELD LIGHTING SYSTEM
A-5 STATUS REPORT ON CITY WATER SUPPLY
A-6 RESOLUTION NO. 50-91 AWARDING CONTRACT FOR 1991 CITY WEED ABATEMENT
PROGRAM (PROJECT NO. PW 90-09) TO MORRO CREEK NURSERY AND LANDSCAPE
COMPANY
A-7 ACCEPTANCE OF RESIGNATION FROM WATER ADVISORY BOARD (CAREY) AND
AUTHORIZATION TO ADVERTISE VACANCY
A-8 RESOLUTION NO. 52-91 OF INTENT TO ADOPT AMENDMENT TO RETIREMENT SYSTEM
BENEFITS FOR CITY PUBLIC SAFETY EMPLOYEES (HIGHEST SINGLE YEAR)
1
A-9 APPOINTMENT TO MEMBER -AT -LARGE VACANCY ON COMMUNITY PROMOTIONS
COMMITTEE (P. VAN BEURDEN)
A-10 REJECTION OF LIABILITY CLAIM AGAINST THE CITY (ELSTER)
A-11 PROCLAMATION DECLARING MAY 12TH-18TH AS "NATIONAL POLICE WEEK" AND MAY
15TH AS "POLICE MEMORIAL DAY"
A-12 RESOLUTIONS NO. 46-91 AND 47-91 SUPPORTING STATE -PROPOSED RECYCLING
LEGISLATION (AB 750; AB 1423; SB 235) AS RECOMMENDED BY THE CITY SOLID
WASTE MANAGEMENT BOARD
B-1 ORDINANCE NO. 393 AMENDING MUNICIPAL CODE SECTION 12.20 TO ALLOW
SPECIAL PRIORITY BUILDING ALLOCATIONS FOR ON -SITE CONVERSION PROJECTS
(SECOND READING/ADOPTION)
B-2 RESOLUTION NO. 44-91 REVISING LEVEL 5 EMERGENCY WATER RATIONING
PROGRAM
B-3 RESOLUTION NO. 48-91 ESTABLISHING NEAR AND LONG-TERM POLICIES AND PRI-
ORITIES OF THE CITY FOR PERMANENT SUPPLEMENTAL WATER SUPPLY PROJECTS
B-4 REQUEST TO RE-EXAMINE FEE FOR CITY INSPECTION OF SERVICES OF LOW -FLOW
FIXTURE RETROFITS UPON SALE OR TRANSFER OF REAL PROPERTY (RESOLUTION
NO. 39-91)
C. NEW BUSINESS
C-1 RESOLUTION NO. 51-91 APPROVING AGREEMENT WITH THE INN AT MORRO BAY FOR
THEIR INTERIM USE AND MAINTENANCE OF A PORTION OF LEASE SITE 27W FOR
PARKING LOT PURPOSES
C-2 RESOLUTION NO. 45-91 APPROVING SUBLEASE OF A PORTION OF LEASE SITE 71-
72 (MORRO BAY MARINA) TO MICHAEL LORENZO (DBA CAPTAIN MAD DOGS; 601
EMBARCADERO), AND AMENDMENT TO LEASE ADDING "NON -PERMANENT HOT DOG
STAND" AS AN APPROVED USE
C-3 CHANGE OF DISTRICT 6 STREET MAINTENANCE PROJECT FROM CHIP SEAL TO A.C.
OVERLAY (N. MORRO BAY)
D. PUBLIC HEARINGS. REPORTS & APPEARANCES
D-1 PUBLIC HEARING ON APPEAL OF PLANNING COMMISSION DENIAL OF VARIANCE FOR
SIDE -YARD SETBACK FOR A CARPORT (486 FRESNO AVENUE; McCORMICK,
APPELLANTS; VAR 01-91)
D-2 APPEAL HEARING ON PLANNING COMMISSION APPROVAL TO EXPANSION AT DEL MAR
ELEMENTARY SCHOOL (CUP 02-91/CDP 58-90; SAN LUIS COASTAL UNIFIED
SCHOOL DISTRICT, APPELLANT)
N
D-3 CONCEPT CONSIDERATION OF NEW PROGRAM ALLOWING TRANSFER OF EXISTING
WATER EQUIVALENCIES AMONG DIFFERENT PROPERTIES
D-4 ORDINANCE NO. 398 ESTABLISHING REQUIREMENTS FOR OFF -SITE STREET
IMPROVEMENTS (CURBS, GUTTERS, SIDEWALKS, STREETS, AND STREET TREES)
UPON NEW OR EXPANDED CONSTRUCTION (INTRODUCTION/FIRST READING)
D-5 PRESENTATION OF ECONOMIC AND SALE TAX EVALUATION STUDY BY STEPHEN A.
NUKES AND ASSOCIATES
RNNNWOT155•,
E-1 GOVERNMENT CODE SECTION 54956.9(A), WOGA V. CITY OF MORRO BAY ET AL
(U.S. DISTRICT COURT, CENTRAL DISTRICT OF CALIFORNIA, CASE NO. 87
05190, CBM (GHKx)
E-2 GOVERNMENT CODE SECTION 54956.9(B)(1), SIGNIFICANT EXPOSURE TO
LITIGATION
E-3 GOVERNMENT CODE SECTION 54957.6, LABOR RELATIONS
E-4 GOVERNMENT CODE SECTION 54957, PERSONNEL MATTERS
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 13, 1991
VETERANS MEMORIAL HALL - 6:00 P.M.
Mayor Sheetz called the meeting to order at 6:00 p.m.
PRESENT: Rose Marie Sheetz
John Baker
Ben Luna
Susan Mullen
Tom Wuriu
ABSENT: None
STAFF: Gary Napper
Judy Skousen
Rick Algert
Leslie Blair
Louise Burt
Ardith Davis
William Farrel
Forrest Henderson
Dave Howell
Steve Wolter .
Mayor
Councilmember
Councilmember
Councilmember
Councilmember
City Administrator
City Attorney
Harbor Director
Assoc. Civil Eng.
Finance Director
City Clerk
Community Dev. Dir.
Asst. City Admin.
Police Chief
Rec.& Parks Dir.
Reverend Jim Berg, Calvary Lutheran Church, gave the invocation,
and Horace Strong led the Pledge of Allegiance.
PRESENTATION: "NATIONAL POLICE WEEK"/"POLICE MEMORIAL DAY"
PROCLAMATION TO POLICE CHIEF DAVE HOWELL
Mayor Sheetz read the Proclamation and presented it to Chief
Howell. Chief Howell stated there will be Police Memorial Ser-
vice at the San Luis Obispo Mission and Open House at the Police
Department on Wednesday, May 15th.
F01-11 619901 MT 4-V
1. Roger Ewing discussed Mr. Elster's request, as a repre-
sentative on Williams Brothers, at the April 15th meeting of the
Planning Commission to continue action on Measure H. He read
from the Planning Commission minutes of that evening and Commis-
sioner Boyd's motion that a meeting be held between City repre-
sentatives, Williams Brothers, and the Voters Initiative Commit-
tee. Mr. Ewing asked the City Attorney to confirm the Planning
Commission has no authority to give directions of this nature.
Ms. Skousen stated the Planning Commission can direct the Plan-
ning staff, but has no authority to give direction to the Mayor,
the Voters Initiative Committee, or the applicant.
MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING - MAY 13, 1991
PAGE 2
Mr. Ewing said at the Planning Commission's May 6th meeting, Mr.
Boyd was urged to rescind his motion and pass Measure H on to the
City Council. Mr. Farrel reported at that meeting his contact
with Williams Brothers regarding a meeting was Williams Brothers
would not meet because of the lawsuit. Mr. Ewing stated VIC is
not involved in a lawsuit with Williams Brothers. He urged Coun-
cil to make a final decision on Measure H based on the Community
Development Director's staff report of March 14th.
2. Ray Kaltenbach asked why the Council puts up with the
Planning Commission? They should ask for the Planning Commis-
sion's resignation; the Planning Commission is in Williams'
pocket.
3. Christine Granados, President of the Voter's Initiative
Committee, expressed dismay at the continued delay of Measure H
before the Planning Commission. She said the political will of
the people is being held up by the delaying tactics of the Plan-
ning Commission. She asked why the Community Development Direc-
tor continues to process a concept plan on this property for a
project larger than demanded by Measure H? She urged Council to
expedite the matter, enact the will of the people, and send Mea-
sure H on to the Coastal Commission.
4. Nelson Sullivan said much of the foregoing comments
also goes for Measure I. Council has already passed an ordinance
which skirts around Measure I; tonight there is another for con-
sideration. He said the Planning Commission publicly said to
ignore Measure I.
5. Thomas Walters, 385 Arbutus, said the planning deci-
sions in the past two years have been contradictory to the voice
of the community with the result the tax payer has to pay for the
lawsuit. With proper planning and decisions, this would not have
happened. The same type of decision -making is taking place on
the existing Planning Commission. He said the Coastal Commission
staff report on the Williams Brothers appeal points out the over-
sights of our planners and former Council in approving the CUP.
Mr. Walters quoted from a letter by Jeff Odell while he was a
Councilmember, dated March 23, 1990, detailing concerns with the
Williams Brothers CUP. He encouraged Council to restructure the
Planning Commission.
6. Keith Jeffreys, 535 Bernardo, presented Council with a
petition of 200 signatures gathered in two days showing the dis-
pleasure of the community with the Planning Commission. Mr.
Jeffreys quoted from letters by Bruce Elster representing
Williams Brothers which were contradictory.
7. Dan Reddell, 2545 Nutmeg, said it is interesting among
the people urging elimination of the Planning Commission is the
• i
MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING - MAY 13, 1991
PAGE 3
President of the Central Coast Democratic Club, and other members
of that organization. These people should be standing for democ-
racy and want every side of the story represented. He said these
people are so dedicated to having their own way, even at the cost
to the democratic system, that they would ask Council to do what
no City Council in the history of Morro Bay has ever done: elimi-
nate a Planning Commission.
DECLARATION OF FUTURE AGENDA ITEMS
1. Mayor Sheetz requested an item be scheduled under Pub-
lic Hearings at the next Council meeting to discuss evaluation of
the Planning Commission and consideration of re -constitution.
• . _ ,_ W1tZ`3
A-1 CITY COUNCIL —MINUTES OF THE REGULAR MEETING O
Mr. Napper recommended Council approve the minutes as submitted.
A-2 APPROVAL OF COMMUNITY PROMOTIONS COMMITTEE BY-LAWS
Mr. Napper recommended Council approve the By -Laws as submitted.
A-3 ACCEPTANCE OF RESIGNATION FROM RECREATION AND PARKS COMMIS-
SION_(BALDWIN) AND AUTHORIZATION TO ADVERTISE VACANCY
Mr. Napper recommended Council accept Mr. Baldwin's resignation,
and authorize staff to advertise the vacancy on the Recreation
and Parks Commission.
Mr. Napper recommended Council establish in the City Master Fee
Schedule a surcharge fee on all teams using the Lila Keiser Park
sportsfield as recommended in the staff report, and direct the
fee be deposited in a reserve account to be used exclusively for
maintenance and replacement of the field lighting system at
Keiser Park.
A-5 STATUS REPORT ON CITY WATER SUPPLY
Mr. Napper recommended Council receive the report for file.
A-6 RESOLUTION NO, 50-91 AWARDING CONTRACT FOR 1991 CITY WEED
ABATEMENT PROGRAM (PROJECT NO. PW 90-09) TO MORRO CREEK
NURSERY AND LANDSCAPE COMPANY
Mr. Napper recommended Council adopt Resolution No. 50-91 award-
ing the contract to Morro Creek Nursery and Landscape Company.
MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING - MAY 13, 1991
PAGE 4
A-7 ACCEPTANCE OF RESIGNATION FROM WATER ADVISORY BOARD (CAREY)
AND AUTHORIZATION TO ADVERTISE VACANCY
Mr. Napper recommended Council accept Mr. Carey's resignation,
and authorize staff to advertise the vacancy on the Water Advi-
sory Board.
A-8 RESOLUTION NO, 52-91 OF INTENT TO ADOPT AMENDMENT TO RETIRE-
MENT SYSTEM BENEFITS FOR CITY PUBLIC SAFETY EMPLOYEES
(HIGHEST eYEAR)
Mr. Napper recommended Council adopt Resolution No. 52-91, and
authorize the Mayor to sign the documents.
A-9 APPOINTMENT TO MEMBER -AT -LARGE VACANCY ON COMMUNITY PROMO-
TIONS COMMITTEE (P. VAN BEURDEN)
Mr. Napper recommended Council appoint Paul Van Beurden to the
Member -at -Large vacancy, term expiring 31 December 1993.
A-10 REJECTION OF LIABILITY CLAIM AGAINST THE CITY (ELSTER)
Mr. Napper recommended Council reject the claim, and authorize
the City Clerk to send the rejection notice.
A-11 PROCLAMATION DECLARING MAY 12TH-18TH AS "NATIONAL POLICE
WEEK" AND MAY 15TH AS "POLICE MEMORIAL DAY"
Mr. Napper recommended Council authorize the Mayor to sign the
Proclamation.
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Mr. Napper recommended Council adopt Resolutions No. 46-91 and
47-91.
Councilmember Baker requested Item A-4 be pulled from the Consent
Calendar, and Councilmember Mullen requested Item A-1 be pulled.
MOTION: Councilmember Baker moved for approval of the Consent
Calendar with the exception of Items A-1 and A-4. The
motion was seconded by Councilmember Wuriu and unani-
mously carried. (5-0)
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Councilmember Baker questioned the new fee and asked if those who
will be paying the new fee have objections to it? Mr. Wolter
MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING - MAY 13, 1991
PAGE 5
stated the teams playing in the evening have been contacted and
are willing to pay the fee for the continued availability of
sportsfield lights.
A-1 CITY COUNCIL MINUTES OF THE REGULAR MEETING OF APRIL 22,
1991
Councilmember Mullen requested her comments on Item D-3 regarding
water project priorities be included verbatim.
MOTION: Councilmember Wuriu moved for the approval of Items A-
1, as amended, and A-4. The motion was seconded by
Councilmember Luna and unanimously carried. (5-0)
B. UNFINISHED BUSINESS
B-1 ORDINANCE NO 393 AMENDING MUNICIPAL CODE SECTION 12.20 TO
ALLOW SPECIAL PRIORITY BUILDING ALLOCATIONS FOR ON -SITE
CONVERSION PROJECTS (SECOND READING/ADOPTION)
Mr. Mapper stated this is the second reading for an Ordinance
which will allow new residential building during years of no new
water allocations if the property has existing water on -site to
support the building. If Council adopts the Ordinance this
evening, staff will agendize an item for Council consideration to
allow some awards under this program.
MOTION: Councilmember Baker moved Ordinance No. 393 be read by
title and number only. The motion was seconded by
Councilmember Mullen and unanimously carried. (5-0)
Mr. Mapper read Ordinance No. 393 by title and number only.
MOTION: Councilmember Baker moved for the adoption of the sec-
ond and final reading of Ordinance No. 393. The motion
was seconded by Councilmember Wuriu and carried with
Councilmember Luna voting no. (4-1)
B-2 RESOLUTION NO. 44-91 REVISING LEVEL 5 EMERGENCY WATER
RATIONING PROGRAM
Mr. Mapper stated at their last meeting, Council directed certain
adjustments be made to the Level 5 rationing program. A Resolu-
tion has been prepared to allow non-residential uses be held to
this month -last year levels or the average of the last two years
if the information is available; allow water to be used any way
as long as it is not flagrantly wasted; and waive penalties for
exceeding rationed amounts prior to April 22nd.
Councilmember Wuriu stated he has received comments during the
last two weeks from residential users who believe some relaxing
of the restrictions should also apply to them. He said residen-
• A
MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING - MAY 13, 1991
PAGE 6
tial users have done an excellent job of conserving and should be
rewarded for their effort. If the water situation gets desper-
ate, the City can re -institute the more stringent procedures.
Councilmember Luna stated he has also received calls on this item
and agrees lessening the restrictions on residential users is
appropriate; particularly in view of Council action to allow a
limited amount of building through the conversion process. He
suggested allowing two additional units for every resident over
three in the household, rather than the current one unit.
Councilmember Baker prefers a larger basic allowance; he sug-
gested 12 units as recommended by staff at the last meeting.
Councilmember Mullen stated most of the complaints she received
were from large families; not many from households where three or
less people live. She supports Councilmember Luna's idea to
increase the allotment for residents over three in a household.
She believe's eight units for families of three or less is
adequate.
Councilmember Wuriu said he could support a ten -unit limit on the
basic rationing for families of three or less.
MOTION: Councilmember Wuriu moved the Resolution be amended to
raise the maximum limit from eight to ten units.
Mayor Sheetz said she could also support ten units; by raising
the threshold figure rather than for each additional family mem-
ber, the City is giving some relief but not too much. Coun-
cilmember Mullen commented ten units is 82 gallons of water per
day per person as opposed to 66 gallons currently; that is a sig-
nificant jump. She suggested a compromise of nine units basic,
plus two units for each person over three.
Councilmember Baker seconded Councilmember Wuriu's
motion.
Mr. Napper suggested if Council allows nine units for single fam-
ily, they grant corresponding relief to multi -family .
SUBSTITUTE Councilmember Mullen made a Substitute Motion to
MOTION: amend the Resolution to allow nine units for a sin-
gle-family residence of three or less, and two addi-
tional units for each resident above three in a house-
hold; and, seven units with two additional units for
each person over three in multi -family. The Substitute
Motion was seconded by Councilmember Luna and unani-
mously carried. (5-0)
Councilmember Baker questioned number 5 in the rationing condi-
tions which places a temporary moratorium on issuing building
MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING - MAY 13, 1991
PAGE 7
permits for new water use; he asked if that condition has been on
the list in the past? Mr. Napper stated it has always been there
as a requirement for rationing regulations.
MOTION: Councilmember Mullen moved for the adoption of Resolu-
tion No. 44-91 as amended. The motion was seconded by
Councilmember Luna and unanimously carried. (5-0)
Mr. Napper stated at their last meeting, Council revised supple-
mental water project priorities; a Resolution has been prepared
formally setting the priorities in order as conservation, recla-
mation, and Lake Nacimiento.
Councilmember Baker said he believes Council is going the wrong
way. He believes in conservation, and there is nothing wrong
with reclamation. However, the City has received less than coop-
eration with the Cayucos Sanitary District on the desal project,
and he wonders how much cooperation we will get with a reclama-
tion project. He reminded Council the City passed -up Whale Rock
a number of years ago, and should not do the same with the State
Water Project. Councilmember Baker stated Nacimiento was almost
dry during the drought; it is in the same storm path as we are
and will receive no more rain than we do. He said the Council
will be doing a disservice to Morro Bay if they pass on a water
program that does not include State Water.
Mayor Sheetz asked if Nacimiento is in a different watershed than
Morro Bay? Mr. Farrel stated it is in a different watershed, but
in the same area of precipitation.
Councilmember Wuriu said he supports State Water. He has no
objections to any of the policies listed in the Resolution; he
just does not think there are enough. Conservation does not pro-
duce any more water; reclamation is very expensive and energy
intensive and it will be difficult to get permits; Nacimiento is
not as likely as State Water. Council is being short-sighted not
to include State Water.
Councilmember Mullen believes State Water stopped the City from
developing true alternative water sources. Not having viable
alternative water sources is the reason Council spends so much
time developing alternative ordinances to allow building. She
referred to a document entitled Morro Bay Reconnaissance dated
1974 which states the most logical alternative source of water is
developing a wastewater treatment program to offset the use of
agriculture and irrigation use of groundwater. She said these
answers have been here for sometime, and there are forms of
reclamation that are not energy intensive. She said California
MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING - MAY 13, 1991
PAGE 8
reclaims only 3% of its water currently. Councilmember Mullen
believes with the help of the Board of Supervisors, Morro Bay
will have Nacimiento water. She said State Water is 100% over -
contracted.
Councilmember Luna said it is obvious State Water is not a long-
term solution. He referred to an article in the LA Times which
indicated the State Water Project cut off supplies to some of the
farmers in the valley and was unable to deliver its full amount
to some of the Southern California districts. He believes one of
the problems in the past is Council has sent the staff in too
many directions for water, and it is time to narrow the alterna-
tive water solutions to two or three projects and pursue them.
Mayor Sheetz commented on newspaper articles stating desal is the
water of the future, and State Water is in the past. She said
many people who have supported State Water in the past have dif-
ficulty letting it go and realizing there are other alternatives.
Mayor Sheetz suggested recently to Supervisor Blakely that a
meeting be held by the cities in the County and the County to
discuss the County's plans for long-range water.
MOTION: Mayor Sheetz moved for adoption of Resolution No. 48-
91. The motion was seconded by Councilmember Mullen
and carried with Councilmembers Baker and Wuriu voting
no. (3-2)
B-4 REQUEST TO RE-EXAMINE FEE FOR CITY INSPECTION OF SERVICES OF
LOW -FLOW FIXTURE RETROFITS UPON SALE OR TRANSFER OF REAL
PROPERTY (RESOLUTION NO. 39-91)
Councilmember Mullen stated she was not at the meeting when this
item was discussed and Council established no fees for initial
inspections on mandatory retrofit. She does not believe the City
can perform services without passing the costs on to the user.
She supports the original staff recommendation to charge $15 for
the initial inspection and $15 for each inspection thereafter.
Mayor Sheetz commented she was not at the meeting either. When
appearing before the Board of Realtors recently, she indicated
what she thought the fees were ($15 for initial inspection, and
$15 for subsequent inspections) and they had no problem with the
fees.
Councilmember Baker said the City is not performing the service
for free; the taxpayer pays for the people on staff. There is
very little building going on right now; he believes the City
should not charge for the first inspection. Councilmember Mullen
commented the fee does not make money for the City; it covers the
cost for City personnel performing the service.
MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING - MAY 13, 1991
PAGE 9
MOTION: Councilmember Mullen moved Council set the fee at $15
for the first inspection and $15 for additional inspec-
tions. The motion was seconded by Councilmember Luna
and carried with Councilmember Baker voting no. (4-1)
D. PUBLIC HEARINGS. REPORTS & APPEARANCES
D-1 PUBLIC HEARING ON APPEAL OF PLANNING COMMISSION DENIAL OF
VARIANCE FOR SIDE -YARD SETBACK FOR A CARPORT (486 FRESNO
AVENUE; MCCORMICK, APPELLANTS; VAR 01-91)
Mr. Farrel stated this appeal from a Planning Commission denial
of a variance involves a request to construct a carport within
the sideyard setback at 486 Fresno. The Planning Commission
denied the request due to the lack of special circumstances
(hardship) applicable to the property to justify granting the
variance. Also, there are alternatives available to the appli-
cant. He said the applicants made the same request in 1982 at
which time the existing Planning Commission granted the variance.
Mr. Farrel commented the Planning Department has received a num-
ber of variance requests in the last two years, and the Planning
Commission is trying to be more specific in their findings for
granting variances.
Mayor Sheetz asked what is the difference between the setbacks on
a garage and a carport? Mr. Farrel reviewed the regulations for
setbacks and the reason for them. He said some of the lots in
Morro Bay are so small, Council may be interested in amending the
ordinance to reduce the setbacks for more townhouse -type of
building. Mayor Sheetz noted the number of houses in Morro Bay
without the setbacks, and suggested revision of the standards may
be in order.
Councilmember Wuriu commented it would look better if the car-
port, house, and garage all had the same setbacks. He said it
looks like the McCormicks are trying to do something everyone
else is already doing.
Mayor Sheetz opened the hearing to the public.
Mrs. Joyce McCormick, 486 Fresno, noted Council is presented with
a Resolution denying the appeal before the public hearing is
held; she hoped the Council will not sign the already -prepared
document and will use their own discretion in rendering a fair
decision on the request. She said the request is not a special
privilege; there are 18 similar cases in her neighborhood. She
thanked the Councilmembers who took the time to view the situa-
tion personally.
Councilmember Baker noted one of the reasons the Code requires
setbacks is for fire protection; however, in this case the garage
is three feet from the property line and it would be more esthet-
MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING - MAY 13, 1991
PAGE 10
ically pleasing for the carport to be along the line of the
garage.
MOTION: Councilmember Baker moved Resolution No. 49-91 be
adopted with an amendment to uphold the appeal. The
motion was seconded by Mayor Sheetz.
Mayor Sheetz instructed Mr. Farrel to revise the ordinance for
more flexibility on setbacks. Councilmember Mullen said she does
not believe the alternatives offered by staff are viable on this
site. The cantilevering roof will not work, and the applicant
cannot put in posts. Mayor Sheetz said safety can be listed as
one of the findings; Councilmember Wuriu also suggested visual
appearance. Mr. Farrel stated he will include those findings in
the amended Resolution.
The motion was and unanimously carried. (5-0)
WOM-DEWAZ" USA
Mr. Farrel stated the San Luis School District is appealing some
of the conditions placed on a CDP for expansion of Del Mar
School; they believe some of the conditions to be excessive. Mr.
Farrel stated a meeting between staff and representatives of the
School District after the Commission's action resulted in a sat-
isfactory compromise which is allowed to be done administra-
tively. Staff took the modifications to the Planning Commission
for their information, and the Planning Commission voted against
the modifications and requested the appeal be forwarded to the
Council. Mr. Farrel reviewed the project and conditions agreed
upon between the School District and staff.
Mayor Sheetz opened the hearing to the public for comments.
Rory Livingston, Assistant Superintendent, Business, for the San
Luis Coastal Unified School District, gave some of the history on
the School District's acquisition of the property and subsequent
grant to the City of Sequoia Street. He said the School District
supports the staff recommendation.
Councilmember Mullen asked Mr. Livingston if he has an update on
the three trees that were cut down? Mr. Livingston stated he is
aware of it, and they are taking steps to follow the process in
the future. Mayor Sheetz asked if they will be replaced? Mr.
Livingston responded he is not sure of the situation. Coun-
cilmember Mullen commented the original permit was issued with a
condition the trees not be cut down; hopefully they will be
replaced. Mayor Sheetz suggested the Sun -Bulletin take steps to
inform the public that Morro Bay is a Tree City.
MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING - MAY 13, 1991
PAGE 11
Councilmember Luna suggested a condition be added to require an
additional cross -walk. Mayor Sheetz stated that is the City's
responsibility; Mr. Napper agreed and stated the City designates
the safe walk routes to school.
Councilmember Luna said the School District is not asking much;
we need to do as much as we can for education.
MOTION: Councilmember Luna moved for the adoption of Resolution
No. 43-91 to uphold the appeal and adopt the amended
conditions as presented. The motion was seconded by
Councilmember Wuriu and unanimously carried. (5-0)
Mr. Farrel stated Council has previously discussed the subject of
transferring water equivalencies from one property to another in
order to enhance development opportunities. He reviewed the pros
and cons of such a program and made suggestions for guidelines if
Council is inclined to allow this type of water transfer.
Mayor Sheetz stated she favored only allowing transfer of exist-
ing water use; not historical water use according to Water Equiv-
alency Table A. The public benefit to this program must be
emphasized; and the water should be allowed to be transferred
only if the property water is being transferred from, and the
property it is being transferred to, are owned by the same per-
son. She said the City could avoid creating a commodity this
way. She does not want to create a false market with regard to
water, but stated some development needs to continue to stimulate
the economy.
Councilmember Baker commented on Mr. Farrel's concern laundromats
may become extinct in Morro Bay under this program; he said the
City should not get involved in private business, and if a laun-
dromat wishes to sell his property or water equivalencies, that
is his business.
Councilmember Wuriu asked if the program conflicts with Measure
I? Mr. Farrel said he has not reviewed that, however, they are
different subjects. Ms. Skousen commented if actual water use,
not historical, is being used the program should not conflict
with Measure I.
Councilmember Mullen said the program could double the value of
laundromats; how can this be handled? Ms. Skousen said there is
case law that allows cities to protect certain businesses such as
rental housing and mobile home parks. Councilmember Mullen
stated she is concerned the City does not have an inventory of
current allocations. Mr. Farrel stated the City's land use pat-
r
MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING - MAY 13, 1991
PAGE 12
tern has been stable for a long time; he doubts there are very
many equivalencies of this type that can be transferred.
Mayor Sheetz noted the program will only operate in drought years
when no new water allocations are issued.
There was discussion concerning transferring water from one prop-
erty to another regardless of ownership. Ms. Skousen cautioned
Council such action could turn water equivalencies into a commod-
ity people can make great profits on. She said the City should
make the profit on the water rather than the property owner.
Mayor Sheetz opened the hearing to the public for comments.
Ann Freeman said never in its history has the City Council put
itself in the position of brokering water. Water rights are
vested with the property and should stay with the property.
Nelson Sullivan stated this is a planned attempt to skirt around
Measure F, and maybe Measure I. He believes Measure F affects
the program as far as allocating water to property is concerned,
and the program violates Measure F. He said actual meter read-
ings are available in this case and should be used.
Ed Biaggini, 1164 Market, believes there are situations where the
program could work and not create additional water use. Council
should at least establish a policy of looking at specific cases.
Len Carpenter, Pacific Street, said the program will allow the
downtown area to go through some revitalization which it desper-
ately needs. He believes the concern for laundromats is not
valid since the one across from the Community Center has gone out
of business.
Ray Kaltenbach said this is not a good idea; the City will run
into a lot of trouble with this plan.
John Barta, 1240 Scott, said he is in favor of the concept; the
flexibility is necessary in order to have some growth. There is
nothing wrong with the windfall attached to this.
Katherine Walling agreed with Ann Freeman. She noted the laun-
dromat that went out of business started out as an ice cream
store; the laundromat was not kept up and that is the reason it
went out of business. She said Council will regret it if they
approve this program.
Mayor Sheetz closed the hearing to the public.
Councilmember Wuriu questioned what problems may be encountered
if Council awards projects according to the program, and mid -way
through the year the water situation is improved and the City is
MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING - MAY 13, 1991
PAGE 13
able to grant applications for new water? Mr. Farrel stated if
Council makes commitments to allow building under this proposal,
people will rely on them.
Councilmember Luna said the program needs to be approached with
extreme caution. He thinks we are getting carried away with
these programs; the ordinance adopted earlier this evening will
allow some construction. He realizes laundromats do not make a
lot of money, but they provide a public benefit. He is also con-
cerned the program may increase the demand on the City's water
supply.
Councilmember Baker said laundromats are private business and
should be allowed to stay in business or not according to their
profit. He is in favor the water equivalency transfer proposal.
MOTION: Councilmember Baker moved staff be directed to prepare
an ordinance adopting the idea of transfer of water
equivalencies between properties of the same ownership,
and the City Attorney be directed to research if trans-
fers can be allowed between different property owners.
The motion was seconded by Mayor Sheetz.
Mr. Farrel suggested Council use Table A to determine the current
water use on property. Mayor Sheetz agreed, as long as histori-
cal use is not used.
Councilmember Mullen said she would prefer to see the program
used only for affordable housing; she believes there is an oppor-
tunity for major profit taking if Council is not careful and very
specific in the ordinance. She would rather the City put time
and money into developing a long-term water solution.
Mayor Sheetz said the ordinance must show a public benefit; it
has to be tied to Measure F; it cannot be allow on property where
someone is buying or currently in escrow.
Mr. Napper commented Council is only discussing concepts at this
time and suggested perhaps looking towards 1992 for implementa-
tion; he said the ordinance could receive input from applicable
advisory boards. Councilmember Baker said he would like to see
the ordinance sooner than 1992. Councilmember Luna said the
ordinance should be reviewed by the Water Advisory Board before
it comes to Council, and Mayor Sheetz suggested the Subdivision
Review Board.
There was discussion relative to the City Attorney's research.
SUBSTITUTE Councilmember Mullen moved Council adopt the idea
MOTION: of transfer of water equivalencies between properties
of the same ownership and staff to return with a pro-
posed ordinance within a reasonable period of time
MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING - MAY 13, 1991
PAGE 14
including all of the staff's suggestions. The substi-
tute motion was seconded by Councilmember Luna and car-
ried with Councilmember Baker voting no. (4-1)
Ms. Skousen clarified Council wanted exact same ownership on both
properties; not one or more name(s) on each property. Mayor
Sheetz said exact ownership.
_u'S• v J�� : � S •
Mr. Farrel stated this item has been reviewed by the Street Advi-
sory Committee and the Planning Commission at Council request for
their input on criteria for off -site improvements for development
projects. The proposed Ordinance contains a $5,000 threshold of
on -site improvement values before off -site improvements will be
required. It is hoped increasing the threshold will encourage
restoration of existing businesses.
Mayor Sheetz opened the hearing to the public; there were no com-
ments and the hearing was closed to the public.
MOTION: Councilmember Luna moved Ordinance No. 398 be read by
title and number only. The motion was seconded by
Councilmember Baker and unanimously carried. (5-0)
Mr. Napper read Ordinance No. 398 by title and number only.
MOTION: Councilmember Luna moved for approval of introduction
and first reading of Ordinance No. 398. The motion was
seconded by Councilmember Baker and unanimously
carried. (5-0)
C. NEW BUSINESS
Mr. Algert stated an agreement has been entered into with The Inn
at Morro Bay for their use of the parking lot area which is part
of Lease Site 27W. The Inn has agreed to make asphalt repairs
and striping of the parking lot, and will erect a fence near the
bulkhead wall to restrict public access due to unsafe conditions.
The Inn will pay $1000 for the first year's rent for use of the
land portion for guest parking.
MOTION: Councilmember Wuriu moved for adoption of Resolution
No. 51-91. The motion was seconded by Councilmember
Baker and unanimously carried. (5-0)
MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING - MAY 13, 1991
PAGE 15
Mr. Algert stated Council previously approved the use of this
site for a hot-dog stand in April 1990. Since that time, the
business has been sold to Michael Lorenzo. It is in order for
Council to approve the sublease with Mr. Lorenzo; the Resolution
also adds the use "non -permanent hot dog stand" to the list of
permitted uses on the site.
MOTION: Councilmember Baker moved for adoption of Resolution
No. 45-91. The motion was seconded by Councilmember
Mullen and unanimously carried. (5-0)
C-3 CHANGE OF DISTRICT 6 STREET MAINTENANCE PROJECT FROM CHIP
SEAL TO A.C. OVERLAY (N. MORRO BAY)
Leslie Blair, Associate Civil Engineer, stated staff is recom-
mending a change in the Scope of Work on this project to require
an asphalt overlay rather than chip seal due to the steep slopes
on the streets. Asphalt overlay is more expensive ($6,900) than
chip seal, so staff is recommending deleting Koa, Juniper, San
Juan, and a small portion of Laurel to cover the additional cost.
She noted the Streets and Trees Committee recommended including
Koa in the project; Koa receives a major portion of drainage from
surrounding streets in the area.
Councilmember Luna asked why these areas are given preference
over other streets in the City? Ms. Blair stated the streets in
this area have poor surface and have not been resurfaced since
1970. Mr. Napper noted some streets in town are still waiting
for pipeline replacement before being resurfaced.
Councilmember Baker asked if there is any way to come up with the
additional monies to cover the streets recommended for deletion?
Mr. Napper stated the Street Budget relies heavily on General
Fund subsidies already. There is $30,000 in the Operating Con-
tingency Fund which can be used to augment this project, however,
he is not recommending that because the budget prognosis is very
tight.
MOTION: Councilmember Wuriu moved the Improvement District 6
Resurfacing Project be revised from chip seal to AC
overlay; and, that Koa, Juniper, San Juan, and a por-
tion of Laurel be deleted from the project scope to
bring the cost estimate within current project funding.
The motion was seconded by Councilmember Mullen and
unanimously carried. (5-0)
MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING - MAY 13, 1991
PAGE 16
Council recessed from 8:35 p.m. to 8:46 p.m.
D-5 PRESENTATION OF ECONOMIC AND SALE TAX EVALUATION STUDY BY
STEPHEN A. NUKES AND ASSOCIATES
Mr. Nukes stated the Economic and Sales Tax Evaluation Study is a
strategic plan to make strategic decisions. He said from the
City's motto, he knows the quality of life is important to Morro
Bay citizens. With the adoption of Proposition 13 a number of
years ago, sales tax revenues became extremely important to the
City. Mr. Nukes gave growth and sales tax figures for different
areas of the County. The study attempts to find out why there is
a lack of growth in business, and ways to enhance business. A
survey was conducted throughout the community to identify shop-
ping patterns which allowed them to determine the areas of sales
tax dollars leakage. They did not, however, address the issue of
water or the Williams Brothers project. He explained the term
"regional service shopping" used in the report means an area of
shoppers.
Mr. Nukes showed a slide presentation of Morro Bay from Highway
1. The slides illustrated due to the configuration of Highway 1,
people traveling on it cannot see the beach, nor are there any
signs directing them to the beach from the Highway. He said
approximately 6.3 million cars drive along Highway 1 in a year;
5.7 million of those do not stop in Morro Bay. There is nothing
to draw them into Morro Bay. Mr. Nukes also reviewed shopping in
Morro Bay and the types of business which have established a
"nitch" in the market place, noting the facade of their business
and ambiance inside. He said there is not a large opportunity
for commercial growth on North Main Street, and commented on im-
provements in zoning through the North Main Street Specific Plan.
Mr. Nukes gave statistics on the percentage of people going out-
side Morro Bay to do their shopping; he noted restaurants do well
in Morro Bay, as do home improvement sales and food sales. The
reasons Morro Bay lacks in other areas is lack of merchandise
selection, service, and perceived higher prices. He said the
downtown area is not conducive to shopping due to many gaps;
i.e., banks and real estate offices. He said of the $114 million
annually spent outside of Morro Bay, the City could recapture at
least $38 million. This could be done by proper signage direct-
ing people off the highway and creating imagery; people need to
picture Morro Bay as the community sees it. He stated code regu-
lations could be relaxed, and some people expressed interest in
seeing a trolley in Morro Bay. This could move people from place
to place and help solve the parking problem.
Mayor Sheetz asked what the City can actually do other than
signage; it is up to the business owner to do the improvements.
Mr. Nukes said it is important to get the people driving by Morro
0
MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING - MAY 13, 1991
PAGE 17
Bay into town, and the business community needs to develop their
"nitch" in town by marketing. Another idea is to establish a
facade improvement program; the City of Paso Robles is doing this
now and has accessed grants and zero interest loans; he suggested
the Main Street Program. He recommended a policy to encourage
infill and new development to be on the street or street corner
with parking lots behind the businesses. He suggested a Business
Improvement Association.
Councilmember Luna said all the recommendations cannot be done at
once, however, the signage program may be the least expensive and
most effective. Mr. Nukes agreed signs are crucial; Morro Bay
needs to create an image. Mayor Sheetz stated one of the reasons
there are no signs on Highway 1 is the City cannot get permission
from CalTrans to put them up.
Councilmember Baker commented the people voted against a regional
shopping center; Morro Bay is not going to be able to increase
its sales tax.
Mayor Sheetz stated there has to be a certain population and
traffic count before the City can support a shopping center; what
should the City do to substitute? Mr. Nukes said Morro Bay can-
not attract a big department store, but may be able to get some-
thing on the order of a K-Mart. There are 40,000 people in the
area who are driving 30 miles round trip to do their shopping
elsewhere.
Councilmember Wuriu asked how the City can support a department
store which is what the people seem to want? Mr. Nukes stated
the larges motivation is convenience. Morro Bay must change its
image for being easy or difficult to put development within the
City limits.
Mayor Sheetz opened the hearing to the public for comments.
Ross Blakely, Sunset, stated he is the Vice Chairman of the Leg-
islative Action Committee of the Chamber of Commerce. He said
the Committee is recommending two actions to the Chamber Board:
endorsement of the recommendations of the Nukes study, and recom-
mending an Economic Development Element to the General Plan be
formed. He said Morro Bay is not going to get anywhere until
there is regional shopping. An Economic Development Element will
give people a blueprint of what is allowed in Morro Bay.
Ed Biaggini stated he was on the sub -committee of the Chamber of
Commerce formed to work with Mr. Nukes. He believes the report
is well worth its money. It was a terrific exercise of the busi-
ness community working with the City. He believes highway
signage is a good way to start, and working with CalTrans is
important. He noted a lot of money spent in Morro Bay is by
businesses in Morro Bay doing business with other businesses in
o Bay; thi
community.
Ed McCracken,
lost looking
Len Carpenter, Pac
rest -stop; perhaps
between Morro Bay
believe the State i
minutes of each ott
at rest -stop areas
c Street, is interested in the idea of a
ie State can be encouraged to place one
San Luis Obispo. Mayor Sheetz does not
place a rest -stop between towns within 30
Mr. Napper stated the City can advertise
California.
Councilmember Mullen stated she is not happy with the study; the
sample survey size is small; comparing Morro Bay to Pismo Beach
is not a reasonable comparison; the City already has the informa-
tion in the study. She said the City ignores studies, and asked
where the Chamber of Commerce and Merchants Association are; are
they going to implement the study? A number of people indicated
they were from the Chamber and Merchants. Councilmember Mullen
said the major question left out of the study is what is the bal-
ance between the size of shopping and the quality of life?
Councilmember Luna said Council needs to take the initial
addressing signage and work towards that. He suggested
directed to come up with a proposed signage program.
should take action now and don't hesitate.
Mayor Sheetz said staff is currently working with the Chamber and
Merchants on a signage program for the Embarcadero, and from
there to the downtown area. She said she is also working towards
signage on the Highway. Councilmember Luna said we need to get
people off the highway and into the downtown area, and the City
needs to take an active roll. Mayor Sheetz explained she has
discussed the matter with Dick Morrow, Mayor of Pismo Beach, who
is on the Area 9 CalTrans Service Board, and asked him to inter-
cede on behalf of Morro Bay.
There was considerable discussion on this matter with direction
for the Community Development Director to take the lead in
pulling these items together. Councilmember Luna commented in
order for the recommendations to be implemented, the business
community and the City need to work together. He said any coop-
eration he or the City can give is there. The program needs to
be monitored and goals set both short and long-term. Within the
> months he would like a report on highway signage
MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING - MAY 13, 1991
PAGE 19
E. CLOSED SESSION
E-1 GOVERNMENT CODE SECTION 54956.9(A). WOGA V. CITY OF MORRO
BAY ET AL (U.S. DISTRICT COURT, CENTRAL DISTRICT OF
CALIFORNIA, CASE NO. 87 05190, CBM (GHKX)
E-2 GOVERNMENT CODE SECTION 54956.9(5)(1). SIGNIFICANT EXPOSURE
TO LITIGATION
E-3 GOVERNMENT CODE SECTION 54957.6. LABOR RELATIONS
E-4 GOVERNMENT CODE SECTION 54957, PERSONNEL MATTERS
MOTION: Councilmember Wuriu moved the meeting adjourn to Closed
Session. The motion was seconded by Councilmember
Mullen and unanimously carried. (5-0)
Mayor Sheetz read the Closed Session statement. The meeting
adjourned to Closed Session at 10:21 and returned to regular ses-
sion at 10:53 p.m.
F. ADJOURNMENT
MOTION: Councilmember Mullen moved the meeting be adjourned.
The motion was seconded by Councilmember Baker and
unanimously carried. (5-0)
The meeting adjourned at 10:53 p.m.
Recorded by:
ARDITH DAVIS
City Clerk
0
City Of Morro Bay
City Council Agenda
Mission Statement
The City of Morro Bay is dedicated to the preservation and enhancement of the quality of life
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 - APRIL 22, 1991
VETERANS MEMORIAL HALL - 6:00 P.M.
209 SURF ST., MORRO BAY, CA
ROLL CALL
INVOCATION
PLEDGE OF ALLEGIANCE
. MOST VALUABLE EMPLOYEE AWARD, FIRST QUARTER - JAMIE BOUCHER
PUBLIC COMMENT PERIOD - Members of the audience wishing to address the
Council on City business matters (other than Public Hearings items under
Section D) may do so at this time. 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 (CITY COUNCIL)
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 8, 1991
A-2 PROCLAMATION DECLARING APRIL 22ND AS "STUDENTS IN GOVERNMENT DAY"
A-3 EXPENDITURE REPORT - MARCH 1991
A-4 STATEMENT OF INVESTMENTS - MARCH 1991
A-5 STATUS REPORT ON CITY WATER SUPPLY
A-6 PROCLAMATION DECLARING MAY 1991 AS "OLDER AMERICANS MONTH"
A-7 SET DATE (MAY 13) FOR APPEAL OF PLANNING COMMISSION DENIAL OF VARIANCE
FOR SIDE -YARD SETBACK FOR A CARPORT (486 FRESNO AVENUE; McCORMICK,
APPELLANTS; VAR 01-91)
A-8 PROCLAMATION DECLARING MAY 5-11, 1991 AS "VICTIMS OF PORNOGRAPHY WEEK"
A-9 ACCEPTANCE OF OFFER OF STREET RIGHT-OF-WAY DEDICATION ON KODIAK AND
JAVA STREETS ADJACENT TO NORTH MAIN STREET (3140 NORTH MAIN; BLATZER;
PARCEL MAP MBAL 90-314)
01
A-10 PROCLAMATION DECLARING MAY 1991 AS "WATER AWARENESS MONTH"
A-11 BUDGET AUTHORIZATION TO CONVERT POLICE RECORDS CLERK POSITION TO
DISPATCHER/CLERK
A-12 AUTHORIZATION FOR LEASE -PURCHASE OF REPLACEMENT TELEPHONE SYSTEM
A-13 RESOLUTION NO. 42-91 AWARDING CONTRACT FOR PURCHASE OF 3/4 TON PICK-UP
TRUCK FOR STREETS DIVISION (PW 91-105)
A-14 PROCLAMATION DECLARING APRIL 28 - MAY 5, 1991 AS "SOIL AND WATER
STEWARDSHIP WEEK"
B. UNFINISHED BUSINESS
B-1 ORDINANCE NO. 397 AUTHORIZING CITY IMPOUNDMENT OF VESSELS FOR NON-
PAYMENT OF CITY SLIP AND MOORING FEES (SECOND READING/ADOPTION)
C. NEW BUSINESS
C-1 CITY RESPONSE TO U.S. DEPARTMENT OF INTERIOR MINERALS MANAGEMENT
SERVICE CONCERNING DRAFT COMPREHENSIVE OUTER CONTINENTAL SHELF MINERAL
GAS AND OIL RESOURCES MANAGEMENT PROGRAM FOR 1992-1997
D. PUBLIC HEARINGS. REPORTS & APPEARANCES
D-1 RESOLUTION NO. 41-91 AWARDING CONTRACT FOR TEMPORARY EMERGENCY DESALI-
NATION WATER PROJECT AND DISCUSSION OF LEVEL 5 EMERGENCY WATER
RATIONING PROGRAM
D-2 ESTABLISHMENT OF PRICING STRUCTURE AND INCREASE IN WATER RATE SCHEDULE
TO FUND EMERGENCY WATER SUPPLY PROJECTS
D-3 REVIEW AND DISCUSSION OF CITY PRIORITIES FOR SUPPLEMENTAL WATER SUPPLY
PROJECTS
D-4 ORDINANCE NO. 393 AMENDING MUNICIPAL CODE SECTION 12.20 TO ALLOW
SPECIAL PRIORITY BUILDING ALLOCATIONS FOR ON -SITE CONVERSION PROJECTS
(INTRODUCTION/FIRST READING)
D-5 AMENDMENT OF GENERAL PLAN AND LOCAL COASTAL PROGRAM AND ZONING
TEXT/MAPS TO MODIFY LAND USE DESIGNATIONS ON PORTIONS OF WILLIAMS
BROTHERS PROPERTY (MEASURE H, NOVEMBER 1990 BALLOT; CASE NO.
GPA/CDP/ZOA 01-91) CONTINUE TO 10 JUNE 1991
D-6 APPEAL HEARING ON PLANNING COMMISSION APPROVAL TO EXPANSION AT DEL MAR
ELEMENTARY SCHOOL (CUP 02-91/CDP 58-90; SAN LUIS COASTAL UNIFIED
SCHOOL DISTRICT, APPELLANT) CONTINUE TO 13 MAY 1991
D-7 REQUEST BY DIRECTOR OF SEASHELL COMMUNITIES FOR REVIEW OF THEIR SEWER
RATE
D-8 REQUEST FOR AGENDA TIME TO DISCUSS COMMUNICATION WITHIN CITY GOVERN-
MENT STRUCTURE (SULLIVAN)
2
E-1 GOVERNMENT CODE SECTION 54957.6, LABOR RELATIONS
F.
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 22, 1991
VETERANS MEMORIAL HALL - 6:00 P.M.
Vice Mayor Luna called the meeting to order at 6:00 p.m.
PRESENT: Ben Luna
John Baker
Susan Mullen
Tom Wuriu
ABSENT: Rose Marie Sheetz
STAFF: Gary Napper
Judy Skousen
Bill Boucher
Louise Burt
Ardith Davis
Forrest Henderson
Nick Nichols
Vice Mayor
Councilmember
Councilmember
Councilmember
Mayor
City Administrator
City Attorney
Assoc. Civil Eng.
Finance Director
City Clerk
ASSt. City Admin.
Public Works Dir.
Ron Fay of the E1 Morro Church of the Nazarene gave the invoca-
tion, and Horace Strong led the Pledge of Allegiance.
`��!T:G7
1. Roger Ewing commended the Council on the Youth in Gov-
ernment Day held today with Morro Bay High School students. He
said it should be held more than once a year and should include
Junior High School students as well.
2. Ed McCracken said at the last meeting he commented on
the need for a ramp by the handicapped parking place in front of
the Veterans Hall. He noted the ramp has already been installed,
and thanked whoever is responsible.
3. Dana Semonsen and Lynn Henderson, Morro Bay High School
students, thanked the City of Morro Bay for letting them partici-
pate in the Youth in Government Day.
DECLARATION OF FUTURE AGENDA ITEMS
1. Councilmember Mullen requested the Resolution estab-
lishing the fee for retrofit inspections be re-agendized.
2. Councilmember Mullen requested the subject of a City-
wide energy policy with standards for energy use be agendized.
MAYOR SHEETZ ARRIVED AT 6:07 P.M.
6
MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING - APRIL 22, 1991
PAGE 2
A. CO
1; W�o40WM04161:L•]oMl "Z0902F'w•1anWOM;1*9)W11 W13Dye ikCe?
Mr. Napper recommended Council approve the minutes as submitted.
A-2 PROCLAMATION DECLARING APRIL 22ND AS "STUDENTS IN GOVERNMENT
DAY"
Mr. Napper recommended Council authorize the Mayor to sign the
Proclamation.
A-3 EXPENDITURE REPORT - MARCH 1991
Mr. Napper recommended Council approve the Expenditure Report as
submitted.
Mr. Napper recommended Council accept the Report as submitted.
\l\ R A-5 STATUS REPORT ON CITY WATER SUPPLY
l� Mr. Napper recommended Council receive the Report for file.
Mr. Napper recommended Council authorize the Mayor to sign the
Proclamation.
9�Y.li•7V�M<f3ii)i7L•J:il' • _: OF PLANNING• v4-- •` • ` Napper-'--
OF VARIANCE FOR SIDE -YARD SETBACK FOR A CARPORT (486 FRES
AVENUE: McCORMICK. APPELLANTS; VAR 01-91)
appeal, and instructed staff to prepare the appropriate
reports.and he
ar
oti
A-8 PROCLAMATION
PORN• .::•,- DECLARINGK -- - - - -
Napper. .-. Council authorize the Mayor to sign t
A-9 RESOLUTION NO, 38-91 ACCEPTING OFFER OF STREET RIGHT-OF-W,
DEDICATION ON KODIAK AND JAVA STREETS ADJACENT TO NORTH HA
Mr. Napper recommended Council adopt Resolution No. 38-91.
MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING - APRIL 22, 1991
PAGE 3
A-10 PROCLAMAT.IO DECLARING MAY 1991 AS "WATER AWARENESS MONTH"
Mr. Napper recommended Council authorize the Mayor to sign the
Proclamation.
A-11 BUDGET AUTHORIZATION_ TO CONVERT POLICE RECORDS C
Mr. Napper recommended Council approve the deletion of one
Records Clerk position from the FY 1990-91 Budget and add one
additional Dispatcher/Clerk position for a total of five such
positions in the FY 1990-91 Budget.
A-12 AUTHORIZATION FOR LEASE -PURCHASE OF REPLACEMENT TELEPHONE
SYSTEM
Mr. Napper recommended Council approve the Centrex telephone
lease -purchase arrangement submitted by Evans-Executone in the
amount of $23,069.09.
A-13 RESOLUTION NO, 42-91 AWARDING CONTRACT FOR PURCHASE OF 3/4
TON PICK-UP TRUCK FOR STREETS DIVISION (PW 91-105)
Mr. Napper recommended Council adopt Resolution No. 42-91 award-
ing Bid No. PW 91-105 to Central Valley Truck Center in the
amount of $18,479.30; and, allocated $3,480 from FY 90-91 Gas Tax
Contingency Fund to complete the purchase.
A-14 PROCLAMATION DECLARING APRIL• 28 - MAY 5 1991 AS "SOIL• AND
WATER STEWARDSHIP WEEK"
Mr. Napper recommended Council authorize the Mayor to sign the
Proclamation.
Councilmember Baker requested Item A-12 be pulled from the Con-
sent Calendar for separate discussion, and Councilmember Mullen
requested Item A-13 be pulled.
Mayor Sheetz and Councilmember Mullen noted they will abstain
from approval of the minutes since they were not at the last
meeting.
MOTION: Councilmember Wuriu moved for the approval of the con-
sent Calendar with the exception of Items A-1, A-12 and
A-13. The motion was seconded by Councilmember Luna
and unanimously carried. (5-0)
A-12 AUTHORIZATION FOR LEASE -PURCHASE OF REPLACEMENT TELEPHONE
SYSTEM
Councilmember Baker asked if it would less expensive to purchase
the telephone system out -right rather than on a lease -purchase
0
MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING - APRIL 22, 1991
PAGE 4
basis. Ms. Burt stated there will be a 12% interest rate over
the five year period; this includes maintenance of the system
during this period. The cost for this will be less than the cur-
rent telephone system. She noted a lease -purchase contract is
not subject to bid requirements.
MOTION: Councilmember Baker moved for the approval of Item
A-12. The motion was seconded by Councilmember Luna
and unanimously carried. (5-0)
Councilmember Mullen was concerned there were no local responses
to the bid. She asked if staff has considered using butane for
fuel in their vehicles, and also if they have considered buying
used as opposed to new vehicles.
Mr. Nichols stated his office sent out 15 request for quotations
to vendors in the area. He did not give butane serious consider-
ation because there is no butane facility at the City Yard. With
regard to new vs. used vehicles, Mr. Nichols stated trucks of
this nature are generally worth very little by the time an agency
surpluses them due to their heavy use.
MOTION: Councilmember Baker moved for the approval of Item
A-13. The motion was seconded by Councilmember Luna
and unanimously carried. (5-0)
MOTION: Councilmember Luna moved for the approval of Item A-1,
minutes. The motion was seconded by Councilmember
Baker and carried with Mayor Sheetz and Councilmember
Mullen abstaining. (3-0-2)
Mayor Sheetz commended Jamie Boucher on her handling of the util-
ity billing section of the Finance Department noting her tremen-
dous patience with customers during the rationing period. She
presented Ms. Boucher with the Most Valuable Employee awards and
thanked her for her service to the City.
Mayor Sheetz read the Proclamation declaring May 1991 as "Older
Americans Month". The Proclamation was received by Morro Bay
Senior Citizens President Bernadette Farley.
0
MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING - APRIL 22, 1991
PAGE 5
B.
B-1
Mr. Napper stated this Ordinance will allow the City to impound
vessels for non-payment of fees for use of City slips and moor-
inas: it will become effective Mav 22nd.
MOTION: Councilmember Baker moved Ordinance No. 397 be read by
title and number only. The motion was seconded by
Councilmember Luna and unanimously carried. (5-0)
Mr. Napper read Ordinance No. 397 by title and number only.
MOTION: Councilmember Luna moved for the adoption of the second
and final reading of Ordinance No. 397. The motion was
seconded by Councilmember Wuriu and unanimously
carried. (5-0)
�Z121:i;1619 40. p�
Mr. Farrel stated the proposed response to the OCS program for
1992-1997 endorses the County's analysis with one exception:
Morro Bay desires no leasing north of Pt. Sal.
MOTION: Councilmember Mullen moved Council authorize the Mayor
to sign and submit the City's response to the U.S.
Interior's Mineral Management Service's Draft Proposal
for Outer Continental Shelf Gas and oil Management Pro-
gram for 1992-1997. The motion was seconded by Coun-
cilmember Wuriu and carried with Councilmember Baker
voting no. (4-1)
D-1 RESOLUTION NO, 41-91 AWARDING CONTRACT FOR TEMPORARY EMER-
GENCY DESALINATION WATER PROJECT AND DISCUSSION OF LEVEL 5
EMERGENCY WATER RATIONING PROGRAM
Mr. Napper suggested Council consider this item in two parts: A)
awarding the contract for the desal plant; and B) rationing.
A. Mr. Nichols reviewed the background leading up to the
proposals under consideration this evening. He noted the March
rains led the City to request a reduced project proposal from the
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REGULAR MEETING - APRIL 22, 1991
PAGE 6
vendors. He stated although water conditions have improved,
staff is still concerned about the availability of the City's
groundwater supplies for this summer. He believes an insurance
policy in the form of the desal project is necessary to the
City's water supply.
Mr. Nichols stated staff is recommending the City contract with
Aqua Design for the construction of an emergency desal plant. He
believes they can build and operate a plant in accordance with
the City's desires. Their proposal is the most economic and most
meets the needs of the City for flexibility. Mr. Nichols noted
Council has been flooded with information from competing firms,
and asked them to ignore the information because it is after the
fact. He said the City has an obligation to go with the informa-
tion submitted within the time -frame established by the City.
Mayor Sheetz asked if this was a bid procedure? Mr. Nichols
stated no, it was a Request for Proposals for an emergency pro-
ject. He said staff considered the vendors' designs and experi-
ence in seawater desalination for a municipal water supply.
Councilmember Baker stated its appears the firm staff is recom-
mending to contract with is the low bid. Mr. Nichols stated it
is based on the information given at the time the proposals were
due. He noted American Engineering Systems has submitted infor-
mation subsequent to the deadline indicating their costs to the
City would be less.
Councilmember Wuriu asked if, based on the City's requirements
and how it wants the project accomplished, Aqua Design's proposal
is the most reasonable? Mr. Nichols stated yes.
Councilmember Mullen stated she believes it is time to do desal.
She noted Council has received numerous FAXs from competing ven-
dors on this project; one offering the City the same project as
Aqua Design for $500,000 less. She stated this is hard to
ignore. She asked if the Aqua Design price is fixed, or if they
could offer a price less than what they have represented? Mr.
Nichols stated the contract, which will include the fixed capital
assets, is a firm purchase price. The operation, maintenance and
water production will depend on how much the City operates the
plant.
Councilmember Mullen asked given everything, does staff believe
Aqua Design is giving the City the best offer? Mr. Nichols
stated yes, Aqua Design best meets the City's needs.
Mayor Sheetz opened the hearing to the public for comments.
John Linhares, 2718 Alder, criticized the City process in acquir-
ing a desal plant. He said Arrowhead can build the City a full
MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING - APRIL 22, 1991
PAGE 7
sized plant for the costs offered by Aqua Design for the reduced
project.
Carol Abela, Polymetrics, detailed his company's experience in
the field of desalination. He said their cost of $2.6 million is
15% lower than the Aqua Design price.
Robert Kadaj, American Engineering Services, stated his firm's
price is $146,000 less than the Aqua Design quote. He said they
will be able to provide the most efficient plant, and will cer-
tify their costs.
John Alexander stated Council appears willing to spend $275,000
on a plant they probably will never use. He said it is possible
to eliminate the City's water problem within the confines of the
current City wastewater sewage plant through reclamation. There
are agricultural users who are interested in exchanging reclaimed
water for fresh water.
Mayor Sheetz closed the hearing to the public.
Mayor Sheetz stated she believes the desal plant will be used;
the next drought is predicted for 1996. She believes the City
should contract with a company who has proven experience and the
capability to build a large seawater desal plant in a short
period of time.
Councilmember Wuriu believes approving a desal plant is the right
thing to do, and it is the right time to do it. The City may
never have a better opportunity to improve its water supply.
Councilmember Mullen said she will agree with staff on Aqua
Design based on their flexibility and experience.
Councilmember Baker concurred. He asked if the proposals sug-
gested by staff are legal? Ms. Skousen assured him they were.
Councilmember Luna agrees with Council. He questioned Mr.
Linhares comments regarding Arrowhead's proposal to built a full-
sized plant for the same amount of money? Mayor Sheetz stated
Arrowhead has never built a desal plant. Mr. Boucher stated the
Arrowhead proposal was for cleaning brackish water, not desalina-
tion. Their process will not produce potable water from seawa-
ter. He noted the main thrust of their business is operation and
maintenance.
MOTION: Councilmember Mullen moved the contract for an emer-
gency temporary desal plant be awarded to Aqua Design.
The motion was seconded by Councilmember Wuriu and
unanimously carried. (5-0)
MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING - APRIL 22, 1991
PAGE 8
Mayor Sheetz expressed appreciation to all firms for their coop-
eration and patience with the process; the City is grateful for
their input.
MOTION: Mayor Sheetz moved for the adoption of Resolution No.
41-91. The motion was seconded by Councilmember Mullen
and unanimously carried. (5-0)
2. Mr. Napper stated the City's rationing program has
resulted in a 14k% reduction in water use by the community. The
recommendation from the Water Advisory Board is not to relax the
rationing program at this time.
Councilmember Baker asked if Council relaxes the rationing pro-
gram, will it endanger the emergency situation under which the
City is building its desal plant? Mr. Napper stated the City
will stay at Level 5 rationing, however, the Ordinance states the
Council can take whatever measures it determines necessary to
enact that program. The City still has an emergency, but some of
the factors have changed due to the March rains.
Councilmember Luna asked if Council relaxes the rationing
requirements, what are the chances of the municipal system being
over -drafted before the desal plant is in operation? Mr. Nichols
stated the availability of the groundwater supply in the latter
summer months depends on the water the farmers use; that use is
affected by the weather. Another factor of the weather is
tourism. He noted conservation in April does not help in
September. Right now the City can use the water, or lose it.
Councilmember Luna asked with the rainfall, is a significant
amount of water going out to the ocean? Mr. Nichols said as long
as there is flow in creeks, water is going into the ocean. He
said you cannot base rationing on the amount of water in streams.
As long as the streams are flowing, the groundwater basins are
recharging.
Councilmember Mullen asked what the experience is on complaints
on rationing? Ms. Burt stated they have found most people can
live within rationing limits. The commercial users are have more
difficulty; especially if they reduced during previous levels of
conservation. Ms. Burt noted first penalty bills have not been
sent out yet.
Councilmember Mullen asked if there is a percentage of those who
will be paying a penalty? Ms. Burt stated approximately 25%.
Mayor Sheetz opened the hearing to the public for comments; there
were no comments and the hearing was closed.
Councilmember Wuriu stated people are doing a good job of con-
serving water and, in fairness, the Council can relax the
i •
MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING - APRIL 22, 1991
PAGE 9
restrictions somewhat. If the situation gets serious, Council
can re -implement the current restrictions.
Mayor Sheetz asked if Council can legally leave residential
rationing at its current level while reducing the requirements
for the business community? Ms. Skousen stated she believes a
substantial differentiation can be made between them.
Mayor Sheetz said during the "Student in Government Day", the
Student City Council decided to leave rationing at its present
level. Mayor Sheetz stated she has received only three com-
plaints from residents on the rationing, but has received numer-
ous complaints from the businesses. She suggested restrictions
be lifted on how the water may be used.
Councilmember Wuriu said Council should give some relaxation of
the rules to the residents.
Councilmember Mullen said residents are able to live within the 8
units rationing; she was in favor of leaving it as is.
MOTION: Mayor Sheetz moved Level 5 rationing for residents stay
the same; the business community rationing restrictions
be changed to require they use no more than they did
last year or the average of the last two years if the
information is available; eliminate the fines and
penalties for the first month; and allow people to use
the amount of water they are allowed any way they want.
The motion was seconded by Councilmember Baker and
unanimously carried. (5-0)
Louise Burt reviewed her analysis and recommendation to increase
water rates by 30% based on $3.8 million desal plant. The
increase adds approximately $4 to the average residential usage
of 5 units per month. The rate structure also eliminates the $4
meter charge and recovers the loss in revenue through the rate
structure.
Mayor Sheetz opened the hearing the public for comments.
Ann Freeman, 785 Cabrillo, asked if sewer rates are increasing
proportionately to the water rates? Ms. Burt stated the desal
plant will not affect the sewer rates.
Jim Lowrie, 480 Bonita, stated he called City Hall to find out
what the $4 charge on his bill was, and found out it is basically
a "slush" fund. Ms. Burt stated the $4 fee is to pay for the
fixed costs of the water system; those items necessary even if
the consumer does not use water for a period of time. Coun-
• 0
MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING - APRIL 22, 1991
PAGE 10
cilmember Mullen explained the proposed rates for Council
approval this evening eliminate that charge; the rates will be
based on volume use only.
Ed Ewing, 238 Pacific, stated since the desal plant is a tempo-
rary facility, will the rates be reduced when the plant is no
longer used? He suggested sustaining the rates and developing a
permanent desal plant.
Ed Biaggini, 456 Embarcadero, stated based on the new water rate
structure, those people who have summer homes in Morro Bay and do
not use water for a period of time will pay nothing; they will
not contribute to the water system at all. He did not think this
is fair and noted the motels do not get that kind of break.
Councilmember Mullen noted there is a fee for 0 water use.
Mayor Sheetz closed the hearing to the public.
Councilmember Luna asked if it would be wise to increase the
rates more than suggested in order to establish a sinking fund to
help pay for a permanent water solution; this may be preferable
to a large increase at a later date. Mr. Napper agreed and
stated the City has been doing that; there was approximately
$500,000 in the Water Production Account, but because of the
water emergency those funds have been depleted. He said there is
a threshold to what people can handle in rate increases, and sug-
gested waiting until budget time to consider further increases.
Mayor Sheetz stated a number of bills are going through the leg-
islature at this time for possible grants or low -interest loans
for water emergencies, desal plants, etc. The City may be able
to access these funds and thereby reduce the burden on the
community.
Councilmembers agreed to limit the increase at this time.
MOTION: Councilmember Mullen moved for the adoption of Resolu-
tion No. 40-91. The motion was seconded by Councilmem-
ber Baker and unanimously carried. (5-0)
D-3 REVIEW AND DISCUSSION OF CITY PRIORITIES FOR SUPPLEMENTAL
WATER SUPPLY PROJECTS
Mr. Napper stated this item was scheduled at the request of Coun-
cilmembers interested in reviewing water project priorities. The
last time Council took action on this item was in March 1989. At
that time the Council set the Coastal Streams Diversion Projects,
State Water, and a water treatment plant for the Coastal Streams
projects as their priorities, not in any order.
Councilmember Luna stated Council has previously heard informa-
tion from a committee from Lake Nacimiento, and asked if there is
MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING - APRIL 22, 1991
PAGE 11
any further proposal from this organization? Mr. Nichols stated
no one has contacted him.
Mayor Sheetz opened the hearing to the public.
Robert Ewing said the central coast of California has histori-
cally had water problems. He hoped Council is encouraging alter-
native sources of energy for the desal plant such as natural gas
or co -generation. He also believed Council should accept the
proposal from John Alexander regarding reclamation and upgrade
the sewer plant to tertiary level. Mr. Ewing said the County of
San Luis Obispo is entitled to 17+ acre feet of Lake Nacimiento
water. He stated the State Water Project is a dead issue.
Bruce Risley, Piney Way, stated if the City is going to apply for
Lake Nacimiento water, it is going to have to cooperate with
other agencies. Council should have cooperation with these agen-
cies as an official policy.
Ann Freeman asked if the City is working with Cayucos? Mayor
Sheetz stated she has been in contact with one of the members of
the Cayucos Sanitary District; Council is aware the City must
have Cayucos Sanitary District consent before constructing the
desal plant on joint property, and they will be officially con-
tacted at the appropriate time. Ms. Freeman urged Council to set
reclamation and Lake Nacimiento as their priorities; State Water
is a dead issue.
Charles Palmer, 485 Estero, discussed conservation by high water
users, and the water rate schedule.
Dr. John Alexander stated the City has the ability to reuse water
at the wastewater treatment plant without any changes in the pre-
sent plant. He said he already has farmers interested in using
the water. He said previous costs for reclamation are no longer
valid; there have been improvements in technology and reclama-
tion/tertiary could be developed for under $1 million.
Don Smith, San Luis Obispo, stated the Nacimiento project is the
best project for Morro Bay and San Luis Obispo. He gave statis-
tics on Lake Nacimiento water from a 1974 report.
Jim Lowrie asked who the City relies on for water now? Mayor
Sheetz stated groundwater. Mr. Lowrie does not believe
Nacimiento is a reliable source.
Dale Domenghini, 927 Pacific, asked if Council knows what the
costs would be for importing Nacimiento water? Mayor Sheetz
stated they have no current costs. Mr. Domenghini suggested
Council do something on this side of the hill as piping is very
expensive. A structure could be built upstream of the basins to
hold the water. He believed Council should do something locally.
MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING - APRIL 22, 1991
PAGE 12
Mayor Sheetz closed the hearing to the public.
Councilmember Wuriu said the State Water Project is not dead, but
still an enormous source of water for the central part of the
State. Councilmember Baker agreed; the State Water Project has
been around for over 20 years. He noted Lake Nacimiento was down
to a mud puddle a few weeks ago.
Councilmember Mullen said she believes the City's priorities
should be water conservation first, reclamation second, and long-
term Lake Nacimiento should be the third priority. She said San
Bernardo may be needed to hold reclaimed water. She commented
the Coastal Streams project is dead because of non -participation
by the City of San Luis Obispo. The State Water Project should
be eliminated because it is unreliable, contaminated, and is not
going to provide water for this area.
Councilmember Luna agreed with Councilmember Mullen; his priori-
ties are reclamation, Nacimiento, and San Bernardo.
Mayor Sheetz said any water project solely dependent on Mother
Nature should be crossed off the list. If the Coastal Streams
project had been in place, it would not have yielded any water
for the City during the drought. She said San Bernardo is out of
the question because of costs; Morro Bay cannot afford it; also,
if you have a dam, you have to have something to put in it. The
permit process for dams is very lengthy; she said dams are a
thing of the past. The State Water Project was built for S mil-
lion people, and there are 30 million people in California.
Mayor Sheetz discussed legislation being formed to help water
projects such as desalination. She believes reclamation is an
excellent idea, and Nacimiento should be considered as a long-
term plan.
Councilmember Wuriu said he supports the idea of looking into
Nacimiento, but does not believe the City should totally give up
on Coastal Streams or the State Water Project. He asked for the
status of the Coastal Streams project. Mr. Nichols stated the
City is paying consultants for the EIR on both phases of Coastal
Streams. Since the March rains, they have been able to continue
their studies and the EIR should be complete in August. There
are budgeted funds for the Phase I portion, however, an addi-
tional $100,000 will have to be allocated for Phase II.
Councilmember Wuriu agreed the dam is not a consideration, how-
ever, a limited project may be possible. He said if the City
says no to State Water, they may regret it one day, and reminded
people of a previous Council which turned down an opportunity to
be part of the Whale Rock project.
MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING - APRIL 22, 1991
PAGE 13
Mayor Sheetz asked Council if they wanted the State Water Project
placed on the ballot for a vote by the people? Councilmember
Mullen stated no; Councilmember Baker agreed stating Council is
elected to make these decisions. He is in favor of State Water
and said the pipeline will be going right through this area and
City will rue the day it decides not to participate. Councilmem-
ber Wuriu was in favor of placing the matter before the voters.
MOTION: Councilmember Mullen moved Council establish their pri-
orities as: #1, conservation; #2, reclamation; and #3,
long-term, Lake Nacimiento. The motion was seconded by
Councilmember Luna.
Councilmember Luna suggested the motion include the recommenda-
tion of the Water Advisory Board to rent Dr. Alexander's equip-
ment on an informal basis for the reclamation project. Coun-
cilmember Mullen noted it is her intention the Coastal Streams,
State Water Project, and San Bernardo dam be eliminated from City
water project priorities.
The motion carried with Councilmembers Baker and Wuriu
voting no. (3-2)
MOTION: Councilmember Luna moved Council authorize Dr.
Alexander to rent the City his experimental equipment
for treatment of wastewater on an informal basis, and
that he work with the City. The motion was seconded by
Councilmember Mullen.
Mr. Napper suggested Council direction to staff to work out
details with Dr. Alexander will be sufficient. Mayor Sheetz
directed staff to pursue the Water Advisory Board recommendation
regarding Dr. Alexander.
Councilmember Luna withdrew his motion, and Councilmem-
ber Mullen her second.
Mr. Farrel reviewed the amendment to the proposed Ordinance made
by Council at the last meeting. The amendment allows residential
dwelling projects to qualify if the project can demonstrate suf-
ficient pre-existing water equivalencies to serve the entire use.
Mr. Farrel recommended the allocations be made quarterly.
Mayor Sheetz opened the hearing to the public for comments.
Jim Lowrie stated Council is now approving laws to increase the
population; this is contrary to what it has been trying to accom-
plish with regard to the water supply. Mayor Sheetz stated the
*Councilmember Mullen comments attached verbatim per request at meeting of
5-13-91.
MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING - APRIL 22, 1991
PAGE 14
Council is not allocating additional water; it is water that is
currently being used.
Mayor Sheetz closed the hearing to the public.
MOTION: Councilmember Baker moved Ordinance No. 393 be read by
title and number only. The motion was seconded by
Councilmember Mullen and unanimously carried. (5-0)
Mr. Mapper read Ordinance No. 393 by title and number only.
MOTION: Councilmember Wuriu moved for approval of the introduc-
tion and first reading of Ordinance No. 393. The
motion was seconded by Mayor Sheetz and carried with
Councilmember Luna voting no. (4-1)
Mayor Sheetz stated this item has been continued by the Planning
Commission until June loth; Council cannot take action until the
Planning Commission does so. However, since the matter was
advertised as a public hearing, she will open the matter for
comments.
Roger Ewing stated after the passage of Measure H, Williams
Brothers stated they were willing to cooperate with the City.
The Planning Director has repeatedly asked for their input on
this item, and they have declined; instead they filed suit. At
the Planning Commission meeting, a representative of Williams
Brothers stated he did not like Measure H. He requested a delay
in the Planning Commission consideration of the matter which was
granted even though the Planning Director informed the Planning
Commission they did not have to grant it. The Planning Commis-
sion sits at the pleasure of City Council and both the Commission
and Council represent the people. Mr. Ewing said the Planning
Commission has ignored the will of the people and asked how much
longer must the people be represented by the Planning Commission?
Bill Walter, attorney for Williams Brothers, distributed a letter
which he requested be made part of the record. He requests the
City refrain from taking action or spending City funds to imple-
ment the Measure while litigation is pending.
Bruce Risley stated he was at the Planning Commission meeting
where the Commission was strongly advised to take action on a
Measure voted for by the people last November. The Planning Com-
mission has no alternative but to forward the matter to Council.
The Williams Brothers representatives told the Planning Commis-
MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING - APRIL 22, 1991
PAGE 15
sion what they should do; he thinks Council should get rid of
them.
Ann Freeman asked what the State law is that authorizes the Plan-
ning Commission to grant the six -week delay? She asked if the
applicant has made any attempt to schedule the meeting Commis-
sioner Boyd requested? Ms. Skousen stated there is no State law
requiring the Planning Commission to continue this item; it is
allowed by the City's Municipal Code. They can continue the item
for 90 days. State law prohibits the City Council from acting on
the amendment until they have received a recommendation from the
Planning Commission.
Mr. Farrel stated Williams Brothers has not yet worked with his
department, but recently worked with the Coastal Commission
staff. He thinks they are going to make a re -submittal. The
Planning Commission wants to see what the re -submittal might be.
Mayor Sheetz closed the item to the public.
Councilmember Mullen stated she is concerned with Planning Com-
missioner Boyd's motion; can he require the Voters Initiative
Committee and Williams Brothers to meet? Ms. Skousen stated the
Planning Commission has no authority or justification to require
the meeting; they can request a meeting.
MOTION: Councilmember Baker moved this item be continued to
June loth. The motion was seconded by Councilmember
Wuriu and carried with Councilmember Mullen voting no.
(4-1)
D-6 APPEAL HEARING ON PLANNING COMMISSION APPROVAL TO EXPANSION
AT DEL MAR ELEMENTARY SCHOOL (CUP 02-91/CDP 58-90; SAN LUIS
COASTAL UNIFIED SCHOOL DISTRICT. APPELLANT) CONTINUE TO 13
MAY 1991
MOTION: Councilmember Mullen moved this item be continued to
May 13th. The motion was seconded by Councilmember
Wuriu and unanimously carried. (5-0)
D-7 REQUEST BY DIRECTOR OF SEASHELL COMMUNITIES FOR REVIEW OF
THEIR SEWER RATE
Mr. Napper stated Council is in receipt of correspondence from
Mr. Cess concerning this item, and supplementary information from
staff.
Ken Cess, Executive Director of Seashell Communities, stated he
objects to the sewer rate charged to his retirement/convalescent
hospital. The rates separate user classes and there is no docu-
mented basis for establishment of the classes. His rate is two
times that of a residential dwelling unit, and higher than that
MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING - APRIL 22, 1991
PAGE 16
of a motel and restaurant. The catch sample of sewer water ana-
lyzed by Public Works was inconclusive. There is no evidence to
require special treatment of his facility.
Mr. Cess stated the people living at Seashell have no special
services, diseases, or surgical waste. They have cooking, laun-
dry, and toilets like anyone else.
Mayor Sheetz asked how the residents do their laundry? Mr. Cess
stated they have coin operated washers and dryers for their per-
sonal things; the facility also has a "house laundry" for other
items.
Councilmember Wuriu stated the only way to be sure the sewage
from Seashell Communities is no different than that of residen-
tial dwellings is to test it. Apparently that calls for the
installation of a measuring device so the sewage can be monitored
over a period of time. He asked if Mr. Cess is willing to pay
for part of the device and its installation? Mr. Cess stated he
cannot understand why it was determined to give him the higher
rate in the first place. He's paid for the device several times
over in the sewage rates.
Mayor Sheetz asked how other utility companies charge facilities
like Mr. Cess'? Mr. Napper stated in 1982 the City re -vamped its
sewer rate structure in accordance with the Brown and Caldwell
report. There is nothing in the report that states why the rate
was established for resthomes.
Mayor Sheetz stated there is not enough information to make a
decision; she would like to know what other rest homes outside
Morro Bay are charged for sewer. Mr. Cess stated a resthome in
Morro Bay and one in Cayucos are charged the dwelling unit rate.
Mr. Napper stated the resthomes mentioned by Mr. Cess are limited
to approximately six beds. He noted 1/4 of the sampling of
Seashell Communities by Public Works exceeded strength require-
ments; something is occurring on the site and it is necessary to
document it before changing the rate.
Councilmember Baker agreed with Mr. Cess; he does not believe Mr.
Cess' sewer is any different from his home. There was consider-
able discussion on how sewer strengths are measured. Mayor Sheetz
asked how much it costs to purchase and install the measuring
device? Mr. Nichols said approximately $4,000.
Mayor Sheetz directed the matter return to staff for further
information: what is the basis for establishment of the category
for resthomes; what are other facilities of like use charged for
sewer rates and how they came up with their figures.
Charles Palmer commented in the process of reducing water con-
sumption, water flow will be reduced but not sewage.
MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING - APRIL 22, 1991
PAGE 17
Mayor Sheetz closed the hearing to the public.
Nelson Sullivan said he wanted to share with Council some of the
things that have come to his mind over the years dealing with the
City. He said City personnel, who perform the work, are exposed
to two opposing values; the honest ones of the real world, and
the management where City codes are applied with discrimination.
This forces the employee to choose between the goals of the City
and those of special interest. As a result morale suffers and
sometimes personnel are lost to the City. Employees are second
class citizens afraid to communicate opinions.
Mr. Sullivan discussed the situation at the South T-Pier before
the fire noting the Harbor Patrol were doing their best to main-
tain service under difficult conditions. Management installed
less than 1/3 of the electrical outlets needed without any direc-
tion as to how the boats could safety share facilities. This
resulted in unsafe practices: outlets were misused, destroyed,
removed, and wires connected directly to boat cords. Substandard
extension cords were visible and one probably started the fire.
He said the pier was used as a parking lot, there was a large
pile of wood on the pier advertising "free firewood". He said
more than a year before the fire a study recommended fire sprin-
klers be installed on both T-Piers.
Mr. Sullivan stated the Harbor Patrol do not share any responsi-
bility for the fire; the blame lies at the other end of the
administrative ladder which had largely destroyed the initiative
necessary for the free flow of the type of information up the
ladder which would have been necessary for the authorization to
correct the conditions that caused the fire. He said under the
present administration, he does not see how Council can be confi-
dent the information necessary for them to formulate policies can
reach them; and, that the policies created by Council will be
implemented.
E-1 GOVERNMENT CODE SECTION 54957.6. LABOR RELATIONS
MOTION: Councilmember Luna moved the meeting adjourn to Closed
Session. The motion was seconded by Councilmember
Baker and unanimously carried. (5-0)
Mayor Sheetz read the Closed Session announcement.
The meeting adjourned to Closed Session at 9:01 p.m. and returned
to regular session at 9:25 p.m.
0
MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING - APRIL 22, 1991
PAGE 18
F. ADJOURNMENT
MOTION: Councilmember Luna moved the meeting be adjourned. The
motion was seconded by Councilmember Mullen and unani-
mously carried. (5-0)
The meeting adjourned at 9:25 p.m.
Recorded by:
�X2�
ARDITH DAVIS
City Clerk
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MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING - APRIL 22, 1991
At the Morro Bay City Council meeting of 13 May 1991,
Councilmember Mullen requested the 22 April 1991 minutes be
amended to include her verbatim comments on Item D-3. The
following represents the amendment:
MULLEN: I think the priorities should be water conservation,
although that's not something that Public Works per se
can do, but that should be the policy of the City. I
think that we should look at reclamation as the number
two priority. I believe that Mr. Alexander's project
has a lot of merit, and I think that we should be
seriously taking a look at it. I appreciate his offer
earlier this evening but I feel very strongly we have
to have something now and we have to have something in
five years; desal is now. Your process may take a
little longer. I believe, third we should go with Lake
Nacimiento follow in the tracks of the letter the City
of San Luis Obispo wrote to the Board of Supervisors.
And finally, although my environmental friends don't
like it, I think we should keep with San Bernardo Dam,
possibly looking at it as a holding area for reclaimed
water assuring year around stream flow for the
steelhead possibly; not let that go. I believe that
the Coastal Streams program unfortunately, as much as I
like it, is dead because of the non -participation by
the City of San Luis Obispo and I believe it's time to
bury State Water and eliminate it from this process at
this time. I think that it's very clear from
everything that's been written that State Water is
unreliable, it's contaminated, it's not going to
provide water to this area and it's going to be a long
time before we see it even if it's approved and that we
need something that's a guarantee in five years. I
believe that water reclamation and Nacimiento will
bring those water, that water to us.
Later, after Mayor/Council comments:
MULLEN: Well, I'm going to, I came kind of ready for bear
tonight because I think the State Water Project is just
not the answer, the State Water Project right now, the
State's own figures, show it's contracted to deliver
4,217,000 acre feet each year. This included not only
water already being delivered, but also numerous as yet
unused allotments including San Luis Obispo County.
However, according to the State Project's Annual Report
it's safe year -in, year -out yield is 2,400,000 acre
feet per year. Now if that isn't over -drafted, I don't
know what is. You've got water quality problems,
you've got financial problems, they've got financial
problems right now. We may have a pipeline coming
through this County, but I can almost guarantee you
it's going to be dry for a long time. I think we're
very safe in deciding that State Water is not the
answer, that I ran on an election issue that we should
use local water as much as possible, that water
conservation, that water reclamation, that, are the
ways to go, and I'm going to make a motion that the
City reset its policy stating that water conservation
is number one, that we pursue water reclamation as our
second priority, that we pursue Nacimiento as a long-
term priority.
447&/ gj / 99/
a 4
NOT 2 C E O F S NT E NT T O CAN C E L
ADJOURNED MEET 2 NG
NOTICE IS HEREBY GIVEN that the Morro Bay City Council
Regular Meeting of April 8, 1991 which was adjourned to
April 16, 1991 at 6:00 p.m., Morro Bay Veterans Hall, 209
Surf St., Morro Bay, California will be adjourned on that
date by the City Clerk for lack of a quorum. The balance of
the items from the April 8, 1991 Regular Meeting Agenda will
be scheduled at the next regular meeting of the City Council
to be held on April 22, 1991.
DATED: April 9, 1991
ROSE MARIE SHEETZ, Mayor
By:
ARDITH DAVIS, City Clerk
City of Morro Bay, CA
0
City Of Morro Bay
City Council Agenda
Mission Statement
The City of Morro Bay is dedicated to the preservation and enhancement of the quality of life
which we all enjoy. We are committed to this purpose and will pruvide a level of municipal
service consistent and responsive to our public and its needs.
REGULAR MEETING - APRIL S, 1991
VETERANS MEMORIAL HALL -.6:00 P.M.
209 SURF ST., MORRO BAY, CA
ROLL CALL
INVOCATION
PLEDGE OF ALLEGIANCE
PRESENTATIONS: PROCLAMATION DECLARING APRIL 6-22, 1991 AS "EARTH DAY
CELEBRATION 1991" TO EARTH DAY COALITION REPRESENTATIVE
PUBLIC COMMENT PERIOD - Members of the audience wishing to address the
Council on City business matters (other than Public Hearings items under
Section D) may do so at this time. 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 (CITY COUNCIL)
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 JOINT MEETING WITH THE RECREATION AND
PARKS COMMISSION ON MARCH 21, 1991, THE SPECIAL MEETING OF MARCH 22,
1991, AND THE REGULAR MEETING OF MARCH 25, 1991
A-2 RESOLUTION NO. 39-91 AMENDING THE 1990/1991 MASTER FEE SCHEDULE TO
INCLUDE A FEE FOR INSPECTION OF MANDATORY RETROFIT OF STRUCTURES UPON
TRANSFER OR SALE OF PROPERTY
A-3 PROCLAMATION DECLARING APRIL 6-12, 1991 AS "WEEK OF THE CHILD"
A-4 NOTICE OF COMPLETION, LAUREL AVENUE EMERGENCY RESTORATION PROJECT
A-5
A-6
STATUS REPORT ON CITY WATER SUPPLY
RESOLUTION NO. 37-91 ADOPTING DISADVANTAGED BUSINESS ENTERPRISE
PROGRAM FOR COMBINED ROAD PROGRAM (FEDERAL FUND) STREET PROJECTS
A-7 PROCLAMATION DECLARING APRIL 6-22, 1991 AS "EARTH DAY CELEBRATION
1991"
1
•
B.
B-1 ORDINANCE NO. 393 AMENDING MUNICIPAL CODE SECTION 12.20 TO ALLOW
SPECIAL PRIORITY BUILDING ALLOCATIONS FOR ON -SITE CONVERSION PROJECTS
(SECOND READING/ADOPTION)
C. NEW BUSINESS
C-1 AGREEMENT WITH THE INN AT MORRO BAY FOR INTERIM USE AND MAINTENANCE OF
A PORTION OF LEASE SITE 27W FOR PARKING LOT PURPOSES PULLED
C-2 APPROVAL OF STREETS AND TREES COMMITTEE BY-LAWS
D. PUBLIC HEARINGS. REPORTS & APPEARANCES
D-1 AWARD OF CONTRACT FOR TEMPORARY EMERGENCY DESALINATION WATER PROJECT
AND DISCUSSION OF LEVEL 5 EMERGENCY WATER RATIONING PROGRAM
D-2 ESTABLISHMENT OF PRICING STRUCTURE AND INCREASE IN WATER RATE SCHEDULE
TO FUND EMERGENCY WATER SUPPLY PROJECTS
D-3 REVIEW AND DISCUSSION OF CITY PRIORITIES FOR SUPPLEMENTAL WATER SUPPLY
PROJECTS
D-4 ORDINANCE NO. 397 AUTHORIZING CITY IMPOUNDMENT OF VESSELS FOR NON-
PAYMENT OF CITY SLIP AND MOORING FEES (INTRODUCTION/FIRST READING)
D-5 PRESENTATION OF ECONOMIC AND SALES TAX EVALUATION STUDY BY STEPHEN A.
NUKES AND ASSOCIATES
D-6 REQUEST FOR AGENDA TIME TO DISCUSS COMMUNICATION WITHIN CITY GOVERN-
MENT STRUCTURE (NELSON SULLIVAN)
E. CLOSED SESSION
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 - APRIL 8, 1991
VETERANS MEMORIAL HALL - 6:00 P.M.
Vice Mayor Luna called the meeting to order at 6:15 p.m.
PRESENT: Ben Luna
John Baker
Tom Wuriu
ABSENT: Rose Marie Sheetz
Susan Mullen
STAFF: Gary Napper
Judy Skousen
Rick Algert
Bill Boucher
Louise Burt
Ardith Davis
Nick Nichols
Vice Mayor
Councilmember
Councilmember
Mayor
Councilmember
City Administrator
City Attorney
Harbor Director
Assoc. Engineer
Finance Director
City Clerk
Public Works Dir.
Reverend Don Carey, Presbyterian Church, gave the invocation, and
Horace Strong led the Pledge of Allegiance.
Vice Mayor Luna stated Mayor Sheetz and Councilmember Mullen are
absent due to a Coastal Commission hearing they are attending in
Montecito; that meeting is running longer than expected. He sug-
gested the major items on the Agenda this evening, particularly
concerning water, be postponed to a time when the full Council
can be present: Items D-1, D-2, D-3, and D-5.
Councilmember Baker
a quorum is present?
postpone items.
MOTION: Vice Mayor
5 be conti
motion was
asked if it is normal to postpone items when
Ms. Skousen stated Council has the right to
Luna moved Agenda Items D-1, D-2, D-3 and D-
aued to Tuesday, April 16th at 6:00 p.m. The
seconded by Councilmember Wuriu.
Mr. Napper noted there may be a problem with the location of the
meeting as the Veterans Hall is booked that evening by the VFW
Post; staff will attempt to find an alternate location.
Councilmember Wuriu asked if Mayor Sheetz and Councilmember
Mullen arrive during the meeting this evening, can Council still
consider the items scheduled? Mr. Napper suggested Council pro-
ceed with the other items on the agenda, and make a motion to
postpone at the end of the meeting.
MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING - APRIL 8, 1991
PAGE 2
Vice Mayor Luna withdrew his motion.
Councilmember Baker said Council should consider those items this
evening. Vendors on the desal project have traveled some dis-
tance to be here. Vice Mayor Luna believes it is appropriate to
continue these important items until the entire City Council is
present.
Pan 011 • Wow. _ ,
1. Ed McCracken said the handicapped parking spaces in
front of the Veterans Hall should be located at the end of the
sidewalk where there is a driveway or build a ramp in the exist-
ing location.
2. Richard Watkins, realtor from Los Osos, said he is
speaking on behalf of Barbara Sanders who is also attending the
Coastal Commission hearing in Montecito. He addressed his com-
ments to Ordinance No. 395 which requires mandatory retrofit of
homes upon change of ownership. He noted problems in the
Atascadero Beach Tract area with sewage backup into homes; he is
concerned low -flow toilets will add to the problem. Mr. Nichols
stated he is less concerned with less flow than the deteriorating
age of the sewer system in that area. Public Works crews do
maintain the lines on a regular basis; however, the sewer system
is in need of replacement. Plans are in the process to replace
the entire system. Infiltration of groundwater into the lines is
also a problem in the winter.
3. Cecil Carey, 155 Sienna, stated he lives at the lowest
point in the entire Beach Tract area. He is concerned the new
Ordinance will make the problems with the sewer system worse, and
requested the City Engineer certify the current system is de-
signed to accommodate 1.5 gallon toilets. He suggested an amend-
ment to allow the installation of flush valve retrofits instead.
No one was present from the Earth Day Coalition to accept the
Proclamation.
None.
MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING - APRIL 8, 1991
PAGE 3
A-1 CITY COUNCIL MINUTES OF THE JOINT MEETING WITH THE
RECREATION AND PARKS COMMISSION ON MARCH 21, 1991, THE
SPECIAL MEETING OF MARCH 22. 1991, AND THE REGULAR MEETING
OF MARCH 25, 1991
Mr. Napper recommended Council approve the minutes as submitted.
Mr. Napper recommended Council adopt Resolution No. 39-91.
A-3 PROCLAMATION DECLARING APRIL 6-12. 1991 AS "WEEK OF THE
CHILD„
Mr. Napper recommended Council authorize the Mayor to sign the
Proclamation.
A-4 NOTICE_ OF COMPLETION. LAURELAVENUE-EMERGENCY _RESTORATION
Mr. Napper recommended Council accept the completion of the Emer-
gency Grading Repairs at 2590 and 2598 Laurel Avenue, and autho-
rize the recordation of the Notice of Completion.
A-5 STATUS REPORT ON CITY WATER SUPPLY
Mr. Napper recommended Council receive the report for file.
A-6 RESOLUTION NO. 37-91 ADOPTING DISADVANTAGED BUSINESS ENTER-
PRISE PROGRAM FOR COMBINED ROAD PROGRAM (FEDERAL FUND)
,STREET PROJECTS
Mr. Napper recommended Council adopt Resolution No. 37-91.
A-7 PROCLAMATION DECLARING APRIL 6-22. 1991 AS "EARTH DAY CELE-
BRATION 1991"
Mr. Napper recommended Council authorize the Mayor to sign the
Proclamation.
Councilmember Baker requested Item A-2 be pulled from the agenda
for separate discussion.
MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING - APRIL 8, 1991
PAGE 4
Zoom �;rxlmvve)IV4
Councilmember Baker said the Ordinance requiring mandatory
retrofit of structures was adopted to conserve water, not raise
money. He does not believe the City should charge a fee for the
inspection. Councilmember Wuriu asked if a fee is not charged,
do the costs come out of the existing budget? Councilmember
Baker commented the employees already exist; their workload is
just spread a little thinner.
Mr. Napper stated the cost is based on time and expenses of the
employee to perform the service. City policy is to recoup costs
for services that are not for the public at large but rather ben-
efit an individual.
Councilmember Baker said he is against charging a fee for this
service; it is adding insult to injury to an unpopular program.
MOTION: Councilmember Baker moved Resolution No. 39-91 be mod-
ified so no fee is involved.
Vice Mayor Luna asked what impact this will have on the City?
Mr. Napper said it is hard to asses; it will depend on the number
of homes transferred during any year, and how many times the
City's inspector has to visit each one.
Councilmember Wuriu suggested the City charge nothing for the
first visit; if the inspector has to return, a fee can be
charged.
Vice Mayor Luna asked if this additional fee will be charged dur-
ing a remodeling where inspection services are required? Mr.
Napper stated if performed in conjunction with other inspection
services, the minimum half-hour fee of $15 will be charged.
Councilmember Wuriu seconded the motion.
Councilmember Wuriu asked if Councilmember Baker would accept an
amendment to the motion to allow the first inspection at no cost
and any inspections after that $15? Councilmember Baker agreed.
Councilmember Baker amended his motion to adopt Resolu-
tion No. 39-91 with no fee for the first inspection and
$15 for each inspection thereafter. The amendment was
seconded by Councilmember Wuriu and the motion carried
unanimously. (3-0)
MOTION: Councilmember Baker moved for approval of the balance
of the Consent Calendar. The motion was seconded by
Councilmember Wuriu and unanimously carried. (3-0)
MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING - APRIL 8, 1991
PAGE 5
Mr. Napper stated since Council approved first reading of this
Ordinance, a question was posed by a local builder asking if on -
site conversion of existing dwelling units to more dwelling units
will be allowed under the Ordinance. If Council's intent in
adopting the Ordinance is to allow additional residential
dwellings to be built in years when no new water is allocated for
development, and when there is sufficient water on -site, the
Ordinance should be re -written to include this type of use.
Vice Mayor Luna was in favor the City Administrator's
recommendation.
MOTION: Vice Mayor Luna moved the Ordinance return to staff to
make the proposed amendments and it be agendized at a
later date. The motion was seconded by Councilmember
Wuriu.
Councilmember Wuriu clarified this Ordinance will only be
accessed during years when no Measure F permits are granted? Mr.
Napper stated yes, during years no new water allocations are
allowed.
Councilmember Wuriu asked how the program would work if Council
does not allocate water at the beginning of the year, allows some
building under this Ordinance, and then later in the year decides
new development can be allocated water? Mr. Napper stated that
will have to be dealt with at the time Council decides to award
new water. Most likely any building permits issued or approved
under this Ordinance would be allowed to proceed, but once
Council decides to allocate new water, no new on -site conversions
would be permitted.
Vice Mayor Luna noted the City is still in a water crisis and
conversation is necessary.
The motion was unanimously carried. (3-0)
MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING - APRIL 8, 1991
PAGE 6
Mr. Napper stated the newly -established Streets and Trees Commit-
tee held their first meeting in March and have submitted their
By -Laws for City Council approval. He said the Committee has
included in their scope of responsibility trees on private prop-
erty. This was not part of their charge when Council adopted a
Resolution establishing this Committee, and the City does not
have an ordinance regulating trees on private property. Staff is
in the process of preparing a program but until Council approves
it, Mr. Napper suggested Council delete this authority from the
Streets and Trees Committee By -Laws.
Councilmember Baker agreed Council has not granted this authority
and perhaps should never do so. He does not believe the City
should approve anything that gives the City more control over
trees on private property. Mr. Napper stated Council direction
on the matter was given some months ago, and noted Council may
want to establish control of landmark trees on private property.
He said submitting a proposal on this subject does not mean
Council has to approve it.
Councilmember Wuriu stated the regulation of trees on private
property is not uncommon. He asked when the matter will return
to Council? Mr. Napper stated staff has just begun work on the
program, so it could be some months.
MOTION: Vice Mayor Luna moved Council approve the By -Laws of
the Streets and Trees Committee with the removal of the
section giving them jurisdiction over trees on private
property. The motion was seconded by Councilmember
Wuriu and unanimously carried. (3-0)
Vice Mayor Luna said perhaps the Committee can make recommenda-
tions to Council on this program. Mr. Napper indicated the Com-
mittee would be involved in the review of any proposed program.
D. PUBLIC HEARINGS. REPORTS & APPEARANCES
MOTION: Vice Mayor Luna moved Council skip items D-1, D-2, and
D-3 temporarily and consider D-4 at this time. The
motion was seconded by Councilmember Wuriu and unani-
mously carried. (3-0)
D-4 ORDINANCE NO. 397_ AUTHORIZING CITY IMPOUNDMENT OF VESSELS
(INTRODUCTION/FIRST READING)
Mr. Algert reviewed the proposed Ordinance which gives the Harbor
Department an effective method for handling vessels which fail to
pay fees in advance, and for collecting past due fees. It allows
them to restrict owner access to vessels in the case of fees due,
MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING - APRIL 8, 1991
PAGE 7
and also provides for abatement of derelict vessels. Mr. Algert
stated the Ordinance has been reviewed by the City Attorney and
Department of Boating and Waterways and they approve of the
language.
Vice Mayor Luna asked if City is liable for vandalism or destruc-
tion of vessels while they are impounded? Ms. Skousen stated the
City's liability is no different for impounded vessels than for
vessels moored or docked at City facilities.
Councilmember Baker asked how the Department would restrict
access to an impounded boat? Mr. Algert stated it will have to
be determined on a case by case basis; the boats are generally
chained and pad -locked. He does not believe they will have to
exercise that option often, however, as the Ordinance will act as
a deterrent.
Vice Mayor Luna opened the hearing to the public.
Ray Kaltenbach said this Ordinance is long over -due; he has been
complaining about derelict boats for some time.
Vice Mayor Luna closed the hearing to the public.
Vice Mayor Luna asked if this Ordinance could cause the bay to
become a dumping ground for unwanted boats? It was noted with or
without the Ordinance, that situation happens.
Vice Mayor Luna asked how long a boat will be allowed to stay in
one place before it is impounded? Mr. Algert said that will be
determined on a case by case basis.
MOTION: Councilmember Wuriu moved Ordinance No. 397 be read by
title and number only. The motion was seconded by
Councilmember Baker and unanimously carried. (3-0)
Mr. Napper read Ordinance No. 397 by title and number only.
MOTION: Councilmember Baker moved for approval of the introduc-
tion and first reading of Ordinance No. 397. The
motion was seconded by Councilmember Wuriu and unani-
mously carried. (3-0)
MOTION: Vice Mayor Luna moved Council skip D-5 and move on to
D-6 at this time. The motion was seconded by Coun-
cilmember Wuriu and unanimously carried. (3-0)
D-6 REQUEST FOR AGENDA TIME TO DISCUSS COMMUNICATION WITH CITY
GOVERNMENT STRUCTURE (NELSON SULLIVAN)
Mr. Sullivan was not present; no action was taken.
0
MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING - APRIL 8, 1991
PAGE 8
D-1 AWARD OF CONTRACT FOR TEMPORARY EMERGENCY DESALINATION WATER
PROJECT AND DISCUSSION OF LEVEL 5 EMERGENCY WATER RATIONING
PROGRAM
D-2 ESTABLISHMENT OF PRICING STRUCTURE AND INCREASE IN WATER
RATE SCHEDULE TO FUND EMERGENCY WATER SUPPLY PROJECTS
D-3 REVIEW AND DISCUSSION OF CITY PRIORITIES FOR SUPPL•EM_F_NT_zi.
WATER SUPPLY PROJECTS
D-5 PRESENTATION OF ECONOMIC AND SALES TAX EVALUATION STUDY BY
STEPHEN A. NUKES AND ASSOCIATES
MOTION: Vice Mayor Luna moved Agenda Items D-1, D-2, D-3, and
D-5 be continued to Tuesday, April 16, 1991 at 6:00
p.m. The motion was seconded by Councilmember Wuriu.
Mr. Napper noted the Veterans Hall has a prior commitment on that
day, but staff will attempt to find an alternate facility to hold
the meeting.
The motion carried with Councilmember Baker voting no.
(2-1)
L �]+L13IDW-3_
None.
:• • 1;vw_�
The meeting adjourn at 7:08 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.
REGULAR MEETING - MARCH 25, 1991
VETERANS MEMORIAL HALL - 6:00 P.M.
209 SURF ST., MORRO BAY, CA
ROLL CALL
INVOCATION
PLEDGE OF ALLEGIANCE
PRESENTATIONS•
1. PROCLAMATION DECLARING 1991 AS "THE YEAR OF THE LIFETIME READER" TO
SAN LUIS OBISPO LITERACY COUNCIL
2. RESOLUTION TO JIM KENNEMUR FOR HIS SERVICES AS PUBLIC SAFETY CHAPLAIN
AND RESERVE FIREFIGHTER UPON LEAVING CITY EMPLOYMENT
PUBLIC COMMENT PERIOD - Members of the audience wishing to address the
Council on City business matters (other than Public Hearings items under
Section D) may do so at this time. 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 (CITY COUNCIL)
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 SPECIAL MEETING OF MARCH 6, 1991, THE
CONTINUED SPECIAL MEETING OF MARCH 8, 1991, AND THE REGULAR MEETING OF
MARCH 11, 1991
A-2 RESOLUTION NO. 32-91 REVISING THE NUMBER OF MEMBERS AND COMPOSITION OF
THE COMMUNITY PROMOTIONS COMMITTEE
A-3 RESOLUTION NO. 33-91 SUPPORTING STATE ELIMINATION OF SPECIAL INTEREST
SALES AND USE TAX EXEMPTIONS VIA SENATE BILL 1X, 2X, AND 5X
A-4 PROCLAMATION DECLARING APRIL 1991 AS "EARTHQUAKE PREPAREDNESS MONTH"
A-5 AMENDMENT TO COUNTY POLICY STATEMENT REGARDING CITIZEN ADVISORY BOARDS
A>6 RELEASE OF ECONOMIC AND SALES TAX EVALUATION STUDY BY STEPHEN A. NUKES
AND ASSOCIATES
1
• 0
A-7 PROCLAMATION DECLARING 1991 AS "THE YEAR OF THE LIFETIME READER"
A-8 STATEMENT OF INVESTMENTS - FEBRUARY 1991
A-9 EXPENDITURE REPORT - FEBRUARY, 1991
A-10 RESOLUTION NO. 34-91 COMMENDING JIM KENNEMUR FOR HIS SERVICES AS
PUBLIC SAFETY CHAPLAIN AND RESERVE FIREFIGHTER UPON LEAVING CITY
EMPLOYMENT
A-11 STATUS REPORT ON CITY WATER SUPPLY
A-12 RESOLUTION NO. 31-91 DECLARING WEEDS A FIRE HAZARD AND AUTHORIZING
1991 WEED ABATEMENT PROGRAM
A-13 RESOLUTION NO. 30-91 GRANTING DIRECTOR OF PUBLIC WORKS THE AUTHORITY
TO EXECUTE RIGHT-OF-WAY CERTIFICATIONS ON COMBINED ROAD PROGRAM
(FEDERAL FUND) STREET PROJECTS
A-14 PROCLAMATION DECLARING APRIL 15TH-21ST AS "MORRO BAY COMMUNITY CLEAN-
UP WEEK"
A-15 EMERGENCY COASTAL DEVELOPMENT PERMIT AND WAIVER OF CONDITIONS USE
PERMIT FOR CITY DESALINATION PLANT
B. UNFINISHED BUSINESS
B-1 ORDINANCE NO. 392 REZONING PORTIONS OF POINT MOTEL PROPERTY FROM OPEN
SPACE TO SINGLE FAMILY DWELLING (ZOA 09-90; FRANK DENIS, ET AL,
APPLICANTS) SECOND READING/ADOPTION
B-2 ORDINANCE NO. 394 AMENDING MORRO BAY MUNICIPAL CODE SECTION
13.20.080(A)(B.1) AND (B.2) REGARDING VALIDITY OF HISTORICAL WATER
EQUIVALENCIES ON PROPERTIES (SECOND READING/ADOPTION)
B-3 ORDINANCE NO. 395 REQUIRING MANDATORY RETROFIT OF PLUMBING FIXTURES
WITH WATER SAVING DEVICES UPON SALE OR TRANSFER OF REAL PROPERTY
(SECOND READING/ADOPTION)
C. NEW BUSINESS
C-1 RESOLUTION NO. 36-91 GRANTING 20-YEAR EXTENSION UNDER OPTION OF COUNTY
LEASE AGREEMENT ON LEASE SITES 50-50W (DBA ASSOCIATED DIVERS, 495
EMBARCADERO)
C-2 CONSIDERATION OF BID RESULTS ON PROJECT NO. RP 90-01, KEISER PARK EAST
SPORTSFIELD LIGHTING RENOVATION
C-3 FORMATION OF CITY COMMENTS ON PROPOSED FEDERAL OUTER CONTINENTAL SHELF
OIL AND GAS LEASING 5-YEAR PLAN
2
• 0
D.
D-1 ORDINANCE NO. 393 AMENDING MUNICIPAL CODE SECTION 13.20 TO ALLOW
SPECIAL PRIORITY BUILDING ALLOCATIONS FOR ON -SITE CONVERSION PROJECTS
(INTRODUCTION/FIRST READING)
D-2 RESOLUTION NO. 35-91 AUTHORIZING EXTENSION OF TINE TO RECORD A FINAL
MAP ON APPROVED RESIDENTIAL SUBDIVISION LOCATED ON IRONWOOD COURT (TM
1231/CDP 77-84R; LOPERENA, APPLICANT)
D-3 APPEALING HEARING ON PLANNING COMMISSION APPROVAL TO EXPANSION AT DEL
MAR ELEMENTARY SCHOOL (CUP 02-91/CDP 58-90; SAN LUIS COASTAL UNIFIED
SCHOOL DISTRICT, APPELLANT) CONTINUE TO 22 APRIL 1991
D-4 CONTINUED HEARING ON ORDINANCE AMENDING GENERAL PLAN AND LOCAL COASTAL
PROGRAM AND ZONING TEXT/MAPS TO MODIFY LAND USE DESIGNATIONS ON
PORTIONS OF WILLIAMS BROTHERS PROPERTY (MEASURE H, NOVEMBER 1990
BALLOT) EUL=
D-5 AWARD OF CONTRACT, TEMPORARY EMERGENCY DESAL WATER PROJECT FOR MORRO
BAY
D-6 RECONSIDERATION OF CITY PARTICIPATION IN EMERGENCY DESALINATION WATER
PROJECT FOR OPERATION BY JULY 1992 WITH CITY OF SAN LUIS OBISPO
D-7 ESTABLISHMENT OF PRICING STRUCTURE AND INCREASE IN WATER RATE SCHEDULE
TO FUND EMERGENCY WATER SUPPLY PROJECTS
NONE
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.
MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING - MARCH 25, 1991
VETERANS MEMORIAL HALL - 6:00 P.M.
Mayor Sheetz called the meeting to order at 6:00 p.m.
PRESENT: Rose Marie Sheetz
John Baker
Ben Luna
Susan Mullen
Tom Wuriu
ABSENT: None
STAFF: Gary Napper
Judy Skousen
Louise Burt
Ardith Davis
William Farrel
Dave Howell
Nick Nichols
Steve Wolter
Mayor
Councilmember
Councilmember
Councilmember
Councilmember
City Administrator
City Attorney
Finance Director
City Clerk
Community Dev. Dir.
Police Chief
Public Works Dir.
Rec. & Parks Dir.
Reverend Jim Kennemur gave the invocation, and Horace Strong led
the Pledge of Allegiance.
N11 f ` IN ... _- ` _
Mayor Sheetz was not feeling well and asked Vice Mayor Luna to
make the presentations.
Vice Mayor Luna read Resolution No. 34-91 commending Reverend
Kennemur on his service to the City, and presented the Resolution
to him. He thanked Reverend Kennemur and wished him well in his
relocation.
2. PROCLAMATION DECLARING 1991 AS "THE YEAR OF THE LIFETIME
READER" TO SAN LUIS OBISPO LITERACY COUNCIL
Vice Mayor Luna read the Proclamation, and presented it to
Dorothea Thomsen of the San Luis Obispo Literacy Council. Ms.
Thomsen stated the San Luis Obispo Literacy Council has the
largest chapter in the United States; they have more learners
than the City of New York. She invited people to volunteer for
the program.
MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING - MARCH 25, 1991
PAGE 2
1. Cecil Carey, Water Advisory Board member, brought Coun-
cil up-to-date on the Board's last meeting on March 20th. They
did not make a recommendation on whether or not Council should
pursue desalting seawater, but if Council does decide to go ahead
with the emergency project, they recommend a permanent facility
be purchased. They also recommend Morro Bay and San Luis Obispo
immediately delay decision on proceeding with joint desal project
pending re -.evaluation of recent rainfall on the water supply;
and, that Council retain the meter service charge on the water
rate structure for capital improvements of the existing water
system. Emergency water project expenses should be added to con-
sumer bills in the form of uniform rate increases.
2. Vernon Richardson, 2961 Sandalwood, reviewed his per-
ception of the City Administrator's poor leadership citing exam-
ples of the South T-Pier and Laurel Street excavation disasters.
He encouraged Council consider a short-term contract for the City
Administrator.
3. Al Jorge spoke regarding Ordinance No. 394 (Item B-2)
objecting to the time limit on historical water use. He said
loss of one's historical water equals a loss in property value.
He will lose $20,000 to $30,000 as a result of this ordinance.
He requested if Council proceeds with the adoption of the Ordi-
nance, they consider a future amendment to make it more
equitable.
4. Charlie Palmer, 485 Estero Ave., questioned why the
amount of desal water has been so great; sometimes double what
the City is currently using? He said there is water in the Morro
Bay area which can be developed over a period of time for much
less money than the desal plant. He reviewed current well lev-
els. He said Morro Bay is now in a much better position than
last year due to the latest rainfall, and can weather the dry
season without spending money.
5. Ray Kaltenbach said he has lived here since 1975, and
every time it rains, people say the water problem is over. All
of California is overdrafting their water supplies. The City
needs to go ahead with some plan; you cannot pump more water than
we have. Morro Bay has exceeded the safe yield for years.
6. Dr. John Alexander advised against joining the proposi-
tion proposed by the City of San Luis Obispo. He also advised
against relying on the State Water Project because it is already
over -subscribed. He explained the process of recycling water
with today's technology, and stated costs are much less than they
were ten years ago. He said he surveyed the city's wastewater
treatment plant and staff, and found the plant to be easily con-
MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING - MARCH 25, 1991
PAGE 3
verted to beyond tertiary treatment and the personnel capable of
operating the system. He said a unit to convert the plant is
being completed, and he is volunteering to loan it to the City
without cost. He suggested giving the reclaimed water to the
farmers in exchange for City use of their riparian water.
Mayor Sheetz closed the public comment period. Nelson Sullivan
objected, and stated he has a legal right to address Council; he
wished to speak on Item C-1. Mayor Sheetz said she will allow
him to speak when the item comes up on the Agenda. Mr. Napper
stated State law allows Council to limit the amount of time spent
on public comments.
Councilmember Wuriu commented on the Public Works personnel
checking storm drains during the middle of storms and at night.
He said it is commendable they are checking on dangerous situa-
tions in the City at all hours.
DECLARATION OF FUTURE AGENDA ITEMS
None.
A. CO
1991, THE CONTINUED SPECIAL MEETING OF MARCH 8
THE REGULAR MEETING OF MARCH 11, 1991
Napper recommended Council
minutes as submitted.
A-2 RESOLUTION NO, 32-91 REVISING THE NUMBER OF M1 S
COMPOSITION OF THE COMMUNITY PROMOTIONS COMMITTEE
Mr. Napper recommended Council adopt Resolution No. 32-91.
A-3 RESOLUTION NO, 33-91 SUPPORTING STATE ELIMINATIO
INTEREST SALES AND USE TAX EXEMPTIONS VIA SENA
Mr. Napper recommended Council adopt Resolution No. 33-91.
PROCLAMATION DECLARING .S_ ;_:_H• sue- ':_'.
MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING - MARCH 25, 1991
PAGE 4
A-5 AMENDMENT TO COUNTY POLICY STATEMENT REGARDING CITIZEN
ADVISORY BOARDS
Mr. Napper recommended Council adopt revised Policy No. 2 for
"The Guidelines for Selection of Advisory Board Members".
A-6 RELEASE OF ECONOMIC AND SALES TAX EVALUATION STUDY BY
STEPHEN A. NUKES AND ASSOCIATES
Mr. Napper recommended Council set 08 April 1991 as the date to
hear Mr. Nukes' presentation.
A-7 PROCLAMATION DECLARING 1991 AS "THE YEAR OF THE LIFETIME
READER"
Mr. Napper recommended Council authorize the Mayor to sign the
Proclamation.
A-8 STATEMENT OF INVESTMENTS - FEBRUARY 1991
Mr. Napper recommended Council receive the report for file.
A-9 EXPENDITURE REPORT - FEBRUARY, 1991
Mr. Napper recommended Council approve the Expenditure Report.
A-10 RESOLUTION NO, 34-91 COMMENDING JIM KENNEMUR FOR HIS
SERVICES AS PUBLIC SAFETY CHAPLAIN. AND RESERVE FIREFIGHTER
UPON LEAVING CITY EMPLOYMENT
Mr. Napper recommended Council adopt Resolution No. 34-91.
A-11 STATUS REPORT ON CITY WATER SUPPLY
Mr. Napper recommended Council receive the report for file.
A-12 RESOLUTION NO, 31-91 DECLARING WEEDS A FIRE HAZARD AND
AUTHORIZING 1991 WEED ABATEMENT PROGRAM
Mr. Napper recommended Council adopt Resolution No. 31-91.
A-13 RESOLUTION NO, 30-91 GRANTING DIRECTOR OF PUBLIC WORKS THE
AUTHORITY TO EXECUTE RIGHT-OF-WAY CERTIFICATIONS ON COMBINED
ROAD PROGRAM (FEDERAL FUND) STREET PROJECTS
Mr. Napper recommended Council adopt Resolution No. 30-91.
A-14 PROCLAMATION DECLARING APRIL 15TH-21ST AS "MORRO BAY
COMMUNITY CLEAN-UP WEEK"
Mr. Napper recommended Council authorize the Mayor to sign the
Proclamation.
MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING - MARCH 25, 1991
PAGE 5
A-15 EMERGENCY COASTAL DEVELOPMENT PERMIT AND WAIVER OF CONDI-
TIONS USE PERMIT FOR CITY DESALINATION PLANT
Mr. Napper recommended Council receive the report for file.
MOTION: Councilmember Mullen moved for the approval of the Con-
sent Calendar. The motion was seconded by Councilmem-
ber Wuriu and unanimously carried. (5-0)
B. UNFINISHED —BUSINESS
MOTION: Councilmember Baker moved Ordinance No. 392 be read by
title and number only. The motion was seconded by
Councilmember Wuriu and unanimously carried. (5-0)
Mr. Napper read Ordinance No. 392 by title and number only.
MOTION: Councilmember Baker moved for the adoption of the sec-
ond and final reading of Ordinance No. 392. The motion
was seconded by Councilmember Wuriu and unanimously
carried. (5-0)
Mr. Napper stated the Ordinance has been amended per Council
direction at the last meeting to use "Water Table All as the
source for determining water equivalencies for different types of
uses; and, it gives holders of historical water until January
1994 to put that water into use or become subject to a 10-year
period from inactive date to use the water or lose it.
Councilmember Baker stated this Ordinance takes away private
property owner rights; it is a mistake to pass it.
MOTION: Councilmember Mullen moved Ordinance No. 394 be read by
title and number only. The motion was seconded by
Councilmember Luna and unanimously carried. (5-0)
Mr. Napper read Ordinance No. 394 by title and number only.
MOTION: Councilmember Mullen moved for the adoption of the sec-
ond and final reading of Ordinance No. 394. The motion
was seconded by Councilmember Luna and carried with
Councilmember Baker voting no. (4-1)
0 fa
MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING - MARCH 25, 1991
PAGE 6
B-3 ORDINANCE NO, 395 REQUIRING MANDATORY RETROFIT OF PLUMBING
FIXTURES WITH WATER SAVING DEVICES UPON SALE OR TRANSFER OF
REAL PROPERTY (SECOND READING/ADOPTION)
Mr. Napper stated staff will notify all real estate and title
companies in writing of the new law before its effective date.
MOTION: Councilmember Wuriu moved Ordinance No. 395 be read by
title and number only. The motion was seconded by
Councilmember Luna and unanimously carried. (5-0)
Mr. Napper read Ordinance No. 395 by title and number only.
MOTION: Councilmember Mullen moved for the adoption of the sec-
ond and final reading of Ordinance No. 395. The motion
was seconded by Councilmember Luna and unanimously
carried. (5-0)
P1liY0u7"Nd:F0 4 zL�I�i�D'i:ii- . - - • ! al. • ' - - •
Mr. Algert said the lease for Lease Site 50-50W expires March
31st. Mr. Whibley has provided sufficient proof of improvements
to the site to qualify for a 20 year extension of the lease. Mr.
Whibley also requests an extension of the deadline to remove the
residential use to give him an opportunity to prepare plans,
obtain necessary permits, and request an approved use to the
lease to allow a motel. Staff recommends Mr. Whibley be given an
extension to July 1, 1991; at this time the tenant is required to
either renovate the building to another approved use or demolish
the structure.
Councilmember Luna asked if the project or demolition has to be
completed by July 1st? Mr. Algert stated it has to be completed
by that date.
Councilmember Baker questioned the motel use according to the
State Lands Commission regulations. Mr. Algert stated the State
Lands Commission does not allow residential uses, but does allow
transient motel uses.
Councilmember Baker asked if the extension is enough time for Mr.
Whibley to complete his plans? Mr. Algert stated Mr. Whibley has
had three or four years to work under the time constraints; it is
necessary to set a deadline to force compliance. Councilmember
Baker said if the use is allowed, why not give him a year to work
it out; it will not put a strain on anyone and can help the busi-
ness economy.
0 !
MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING - MARCH 25, 1991
PAGE 7
Councilmember Mullen asked if the lessee might work with the
Estuary Center planned for the site next door to 50-50W? Mr.
Napper stated the City inquired of that possibility during dis-
cussions and Mr. Whibley is not interested.
Councilmember Mullen noted if they approved the July 1st dead-
line, it could be extended again if necessary.
Nelson Sullivan stated if Mr. Whibley does not get what he wants,
it will be a unique experience; he noted some of the items which
Mr. Whibley has had his way with regard to the lease sites. Mr.
Sullivan stated the property does not belong to Mr. Whibley, and
it should be used for its highest and best use as a Marine
Research Center. He suggested there are many ways to manage
this; Mr. Whibley's books could stand a lot of scrutiny.
MOTION: Councilmember Luna moved Council extend the deadline
for residential uses on Lease Site 50-50W to 01 July
1991. The motion was seconded by Councilmember Wuriu
and carried with Councilmember Baker voting no. (4-1)
MOTION: Councilmember Luna moved for adoption of Resolution No.
36-91. The motion was seconded by Councilmember Wuriu
and carried with Councilmember Baker voting no. (4-1)
C-2 CONSIDERATION OF BID RESULTS ON PROJECT NO, RP 90-01, KEISER
PARK EAST SPORTSFIELD LIGHTING RENOVATION
Mr. Wolter stated Council budgeted $12,000 in January 1991 for
renovating lighting at the Keiser Park East Field. During bid
specification preparation it was discovered the project exceeded
initial estimates and would have to be put out to bid and pre-
vailing wages paid. This resulted in a revised estimate of
$22,500 for the project. Additionally, it has now been discov-
ered the original paint used on the light poles contains lead;
paint removed from the poles prior to re -painting must be cap-
tured and disposed of as a hazardous waste. The low bid on the
project was CN Signs and Graphics in the amount of $21,803.77.
They have indicated they will properly dispose of the paint tail-
ings for an additional amount of $3,000. He recommended Council
award the bid to CN Signs and Graphics, and appropriate $12,900
from General Fund contingencies to this project.
Councilmember Wuriu stated the amount allocated to this project
in January and the bid price, even excluding the problem with
lead paint, are far apart; why? Mr. Wolter stated they did not
believe the project would fall under the public bid requirements;
since it does, prevailing wages must be paid and that is what
increased the cost of the project.
Councilmember Mullen asked why not wait until the budget process
since the project will not be done until October? Mr. Wolter
MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING - MARCH 25, 1991
PAGE 8
stated the $21,803 bid appears to be a good price; if the economy
turns around, cost may be much more if bid later in the year.
MOTION: Councilmember Wuriu moved Council award the project to
CN Signs and Graphics in the amount of $21,803.77; and,
appropriate $12,900 from the FY 1990-91 General Fund
Contingency to the project account. The motion was
seconded by Councilmember Baker and unanimously
carried. (5-0)
Mr. Farrel stated the U.S. Department of the Interior's Minerals
Management Service has prepared a draft 5-year Offshore Gas and
Oil Program for public comment. A letter has been prepared for
signature by the Mayor commenting on the document; this will be
forwarded to Governor Wilson to include in his response to the
Federal Government. A more detailed response will be prepared to
send directly to the Federal Minerals Management Service by their
April 25th response deadline date.
Councilmember Luna stated the letter reflects his views on this
subject; he requested the letter include an emphasis on seeking
alternative energy resources and encourage the Governor to look
into that. He was concerned a paragraph in the letter detailing
the need for scientific study of various issues contradicts what
is said in the rest of the letter regarding opposition to any
off -shore oil drilling. He suggested that paragraph be deleted
and replaced with a statement on alternative energy.
Mayor Sheetz preferred leaving the paragraph regarding studies in
the letter so the City's position is known in the event off -shore
drilling becomes a reality in this area; she concurred with Coun-
cilmember Luna statement on alternative energy resources.
Councilmember Baker stated he does not oppose off -shore oil
drilling. He said this country just spent $1 billion to send k
million troops to the Persian Gulf to protect our oil interests.
The fact is this country needs oil and we should obtain it from
our own areas rather than depending on foreign countries.
Councilmember Mullen suggested a statement be included the miner-
als to be extracted from any off -shore drilling must meet energy
needs, rather than used for such things as plastic and asphalt.
Councilmember Wuriu was not in favor of eliminating the paragraph
concerning studies; there will be locations where drilling will
take place and this paragraph makes it clear a thorough study and
analysis is necessary.
0
MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING - MARCH 25, 1991
PAGE 9
Mayor Sheetz commented the Area Coordinating Council is working
hard to get people out of their cars and into car-pooling or
biking.
MOTION: Councilmember Mullen moved the letter be approved to
include an emphasis alternative energy resources should
be looked at; preface the paragraph concerning needs
for study with Morro Bay's opposition to off -shore
drilling in this area; and, a statement minerals
extracted from any drilling must meet energy needs.
The motion was seconded by Councilmember Luna and car-
ried with Councilmember Baker voting no. (4-1)
D-1 ORDINANCE NO, 393 AMENDING MUNICIPAL CODE SECTION 13.20 TO
ALLOW SPECIAL PRIORITY BUILDING ALLOCATIONS FOR ON -SITE
CONVERSION PROJECTS (INTRODUCTION/FIRST READING)
Mr. Napper stated Council amended this Ordinance at their last
meeting to require conversion projects use 15% less water than
allowed by Water Table A. The Ordinance has been amended to
reflect that change and is presented for first reading.
Mayor Sheetz stated she is not in favor of the 1115% less than
Table All requirement. The only time this Ordinance will be
accessed is during the years when Council does not allocate new
building. Most projects will not be able to comply with the 15%
requirement. A certain amount of building is needed to keep the
economy of the City going; the conversions will also replace old,
run-down structures. She would like the 15% requirement removed.
MOTION: Mayor Sheetz moved the 15% requirement be deleted from
the Ordinance. The motion was seconded by Councilmem-
ber Baker.
Councilmember Wuriu said he voted in favor of the 15% cut at the
last meeting but has reconsidered. He said Table A was recently
revised and, in some cases, the allocations for different types
of use are lower than they were with the previous table. He sug-
gested 8% be used instead of 15%; it is still making a cut in the
current allowed allocations.
SUBSTITUTE Councilmember Wuriu offered a substitute motion
MOTION: the Ordinance be amended to require an 8% cut in Water
Table A figures.
The motion died for lack of a second.
Councilmember Mullen stated she went a long way toward a compro-
mise when voting in favor of the 15% cut. As long as there is a
drought, the Council has to make sure we are not over -drafting
MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING - MARCH 25, 1991
PAGE 10
our water supplies. She is concerned with public perceptions
when Council allows building during a drought, and more water is
used by the conversion than was previously used by the property.
Councilmember Luna agreed; he said the projects can be tailored
to meet the Ordinance. It is a privilege this is even being con-
sidered when Morro Bay has been criticized for not taking enough
measures to conserve.
Councilmember Baker said the Alta Morro conversion project will
replace an old motel use with new residential structures which
include all low -flow requirements. He said the Ordinance may
encourage an old use to waste water to increase the historical
use in order to make the property more marketable.
Mr. Farrel stated the Ordinance is proposed to give people an
opportunity to build. Council is focusing too much on the Alta
Morro project. Motel units have a lower requirement than condo-
miniums. Hopefully the development will balance or be less than
the current use.
Councilmember Luna stated it could also be more. If 7 or 8
equivalencies are available on a site and the property currently
uses 3, allowing the conversion creates a greater demand on the
City water supply.
The main motion carried with Councilmembers Luna and
Mullen voting no. (3-2)
Mayor Sheetz opened the hearing to the public noting comments are
to include the amendment to the Ordinance.
Ray Kaltenbach said he is not in favor of old structures being
demolished and re -built; new ones will use more water. The 15%
less than Water Table A option is a good one.
Tom Courtney, representing the Alta Morro development, dis-
tributed information to Councilmembers calculating the difference
between the old water table and new Water Table A noting the con-
siderable savings already being realized by the new Table.
Charles Palmer suggested Council drop the water equivalency table
and develop water criteria for each building. He said a
retrofitted home should use no more than 50 gallons per day per
person; non -retrofitted use 75 gallons. As technology of water
saving devices increases, in-house needs go down. The water
equivalency time has passed.
Nancy Bast stated it is bad faith for Council to ask her, a busi-
ness person, to reduce consumption by 15% per month and allow
building that will be able to use that 15%. Let them phase -in
when water is available.
0
MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING - MARCH 25, 1991
PAGE 11
Mayor Sheetz closed the hearing to the public.
Councilmember Wuriu asked if any Councilmembers are willing to
cut by 10%? Councilmember Luna said he would vote in favor of
that.
Mr. Farrel commented the new Water Table more nearly reflects
what is being used. The figures indicate the actual average of
water use in all motels.
Councilmember Luna said Ms. Bast has a very valid concern. She
has to cut 15% and the Council will allow development to occur
without any reductions. Councilmember Mullen said 15% reduction
was a good compromise.
MOTION: Councilmember Baker moved Ordinance No. 393 be read by
title and number only. The motion was seconded by
Mayor Sheetz and unanimously carried. (5-0)
Mr. Napper read Ordinance No. 393 by title and number only.
MOTION: Councilmember Baker moved for approval of the introduc-
tion and first reading of Ordinance No. 393. The
motion was seconded by Councilmember Wuriu and carried
with Councilmembers Luna and Mullen voting no. (3-2)
Councilmember Wuriu commented he prefers an 8% reduction in the
Water Table to allow the conversion, but he does not want to see
the Ordinance die; therefore, he voted in favor of it.
D-2 RESOLUTION NO, 35-91 AUTHORIZING EXTENSION OF TIME TO RECORD
A FINAL MAP ON APPROVED RESIDENTIAL• SUBDIVISION LOCATED ON
IRONWOOD COURT (TM 1231/CDP 77-84R: LOPERENA, APPLICANT)
Mr. Farrel stated this is a 13-lot subdivision project which has
requested a time extension to file the final map due to the
development moratorium caused by the water situation. The appli-
cant has requested the extension be allowed to run one year
beyond the date the development moratorium is lifted and water is
available for development. Mr. Farrel stated Morro Bay's Subdi-
vision Ordinance allows for a single one-year extension. The
applicant may misunderstand how the City's building waiting list
works; there is no benefit to allow him a year's extension beyond
lifting the moratorium and no requirement for the City to do so.
Councilmember Luna asked if the conditions of the Tentative Map
have been met? Mr. Farrel stated he believes most of them have
been. He said the applicant's objective in requesting the exten-
sion is to postpone the time for making public improvements to a
time when he may be able to sell the lots.
MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING - MARCH 25, 1991
PAGE 12
Councilmember Luna said the staff report indicates the Tentative
Map expired February 27th; why is it coming to Council at this
time? Mr. Farrel said the extension request was received prior
to the Map's expiration; State law provides for a 60-day process-
ing time so the City has two months to take action on the
request.
Councilmember Luna asked if the check accepted by the City to
process the extension means the City approves their request? Mr.
Napper stated the fee does not approve the time extension; it
pays for the process expenses and does not obligate Council's
action.
Mayor Sheetz opened the hearing to the public for comments.
Shar Schmutz, representing the applicant, stated they concur with
staff findings.
The hearing was closed to the public.
Councilmember Luna said if Council grants the extension, it must
be specified the extension is one year from a specific date; not
one year beyond the moratorium date as requested by the appli-
cant. Mr. Napper stated the proposed Resolution specifies the
extension is to 27 February 1992.
MOTION: Councilmember Mullen moved for the adoption of Resolu-
tion No. 35-91. The motion was seconded by Councilmem-
ber Luna and unanimously carried. (5-0)
Councilmember Mullen noted the local water situation has nothing
to do with the Subdivision Map Act, and the applicant had best
file by next year.
D-3 APPEALING HEARING ON PLANNING COMMISSION APPROVAL TO EXPAN-
SION AT DEL MAR ELEMENTARY SCHOOL (CUP 02-91/CDP 58-90: SAN
LUIS COASTAL UNIFIED SCHOOL DISTRICT. APPELLANT) CONTINUE
TO 22 APRIL 1991
Mr. Napper indicated staff is working with the applicant to
attempt to resolve differences; the applicant has therefore sub-
mitted a written request to continue the hearing.
MOTION: Councilmember Baker moved this matter be continued to
April 22nd. The motion was seconded by Councilmember
Wuriu and unanimously carried. (5-0)
D-4 CONTINUED HEARING ON ORDINANCE AMENDING GENERAL PLAN AND
LOCAL COASTAL PROGRAM AND ZONING TEXTIMAPS TO MODIFY LAND
USE DESIGNATIONS ON PORTIONS OF WILLIAMS BROTHERS PROPERTY
(MEASURE H. NOVEMBER 1990 BALLOT) PULLED
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REGULAR MEETING - MARCH 25, 1991
PAGE 13
D-5 AWARD OF CONTRACT, TEMPORARY EMERGENCY DESAL WATER PROJECT
FOR MORRO BAY
Mr. Nichols stated staff has been in the process of soliciting
proposals from vendors to provide the City with a temporary emer-
gency seawater desalination plant to be operational by July of
this year. Four firms submitted proposals designed to provide
the City with 1.2 million gallons of water per day, meet all
health requirements, and be operational by July 1st.
Mr. Nichols pointed out these plans were made when the City was
entering its fifth year of a drought. No one anticipated we
would get a year's average rain in one month (March). He
reviewed current well levels noting improved conditions in Chorro
Creek, but not in Morro Creek. The water in the wells in Keiser
Park is still not potable and cannot be used without the rented
reverse osmosis units. Several wells are still out of service;
the emergency is not over yet and Mr. Nichols believes the City
must make plans for a possible emergency this summer. However,
the recommendation in the staff report being altered to: 1)
reduce the scope of the project by 50%, or 600,000 gallons of
water per day; 2) pursue the purchase option as opposed to rental
of the unit; 3) still work towards the July 1st start-up date; 4)
the plant be designed so it can be expanded; 5) direct staff to
pursue the project and obtain the necessary permits and agreement
required to develop the project; 6) the proposals be set aside
and the four vendors be asked to submit supplemental proposals
for a reduced project scope by Friday, March 29th; 7) and, adopt
Resolution No. 28-91 clarifying the emergency water supply condi-
tion declaration.
Councilmember Wuriu asked if this is still an emergency project,
does it mean rationing must continue to be in effect? Mr.
Nichols stated yes, the project was declared an emergency which
gives the City the ability to cut through the permit process.
Ms. Skousen stated once the plant is built, the City cannot oper-
ate it except in an emergency unless the City goes through the
standard permit process which could take two years.
Councilmember Mullen asked if the City is paying a premium price
for the plant because of the requirement to have it operating by
July 1st? Mr. Nichols stated the City is not paying a lot for
quick implementation; one of the vendors has the equipment avail-
able at this time. Councilmember Mullen asked if staff has con-
sidered reducing the project to 25%? Mr. Nichols stated it would
not be a useful size.
Councilmember Luna said since Cayucos Sanitary District owns 40%
of the wastewater treatment plant, which will be used in this
project, it would be a good idea to meet with them so they know
what is going on. Mr. Nichols said they are definitely part of
the process; they have received the reports and the City will
MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING - MARCH 25, 1991
PAGE 14
make arrangements with them to use the treatment plant when an
actual project is defined.
Councilmember Wuriu favored purchase of a plant rather than
rental.
Mayor Sheetz opened the hearing to the public for comments.
Charles Palmer stated there are other options to a desal plant.
He reviewed well levels stating the water is here to be accessed.
He favored Dr. Alexander's proposal to pump reclaimed water to
Chorro Basin; it is cheaper than desal.
Cecil Carey read from an article out of the San Francisco
Examiner regarding California droughts. He encouraged Council to
operate desal on a permanent basis.
Ray Kaltenbach said due to the length of time to implement recla-
mation, the City's only alternative is desal and it should be a
permanent plant.
John Linhares, 2718 Alder, favored obtaining the originally pro-
posed 1.2 million gallon plant and awarding the project to the
lowest bid. Reclamation can be pursued while it is operating.
He does not think much money will be saved by k size plant.
Nancy Bast agreed with Mr. Linhares. Re -supplying the ground
water basin makes sense. She is concerned desal will be so
expensive it will preclude all other forms of new water.
Dr. Alexander disputed the length of time reclamation would take
to implement; it is possible to reclaim treated water inside of
two months.
Mayor Sheetz closed the hearing to the public.
Mr. Nichols stated Dr. Alexander will make a presentation before
the Water Advisory Board in April, and the Water Advisory Board
recommendations will be forwarded to Council. He agreed actual
construction of the project is easy; the hard part is getting the
necessary permits.
Councilmember Luna asked what effect running the desal through
the treatment plant would have on a future reclamation project?
Mr. Nichols did not have the answer, but stated it is important
to find it out. Councilmember Luna requested staff research this
item.
Mr. Nichols noted the project was not a call for bids; it is
important the City retain a firm that has the experience and a
track record for building seawater desal plant for municipal sup-
plies, rather than focusing on the lowest cost.
MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING - MARCH 25, 1991
PAGE 15
Mayor Sheetz asked if the delay in awarding the project will
impact the start-up date? Mr. Nichols stated it will move it
forward two weeks; any contract will specify the project be com-
pleted within 90 days.
Councilmember Mullen stated she supports building of a desal
plant, but is concerned about the energy used; she would like to
see alternative energy sources suggested by the vendors.
Mayor Sheetz stated she has talked to Congressman Panetta who
believes desal is the way to go; he will be asking Congress to
help finance desal projects.
MOTION: Councilmember Wuriu moved Council approve the staff
recommendation for receipt of proposals for a reduced
size (0.6 mgd) temporary emergency desal plant to be
ready as soon as possible after July 1, 1991. The
motion was seconded by Councilmember Mullen and unani-
mously carried. (5-0)
MOTION: Councilmember Mullen moved for the adoption of Resolu-
tion No. 28-91. The motion was seconded by Councilmem-
ber Luna and unanimously carried. (5-0)
Council recessed from 8:35 p.m. to 8:45 p.m.
RECONSIDERATION OF _ PARTICIPATION IN EMERGENCY • _N:
PROJECT
_N • •
Mr. Napper stated in light of Council's prior action to reduce
the City's emergency desal project and a letter from the City of
San Luis Obispo outlining Morro Bay's deadlines and costs in
their desal project, he recommends he be directed to contact the
City of San Luis Obispo and inform them Morro Bay is no longer
interested in participating in a joint desal project.
Mayor Sheetz opened the hearing to the public for comments.
Bruce Risley stated he is in favor of the staff recommendation.
He encouraged Council to maintain the cooperation between the
entities that has been developed recently.
Ray Kaltenbach agreed with the staff recommendation.
David Grimshaw was in favor of the political independence Morro
Bay's project offers.
Mayor Sheetz closed the hearing to the public.
0
MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING - MARCH 25, 1991
PAGE 16
MOTION: Councilmember Luna moved Council authorize the City
Administrator to inform the City of San Luis Obispo
that Morro Bay declines to participate as a partner in
their proposed seawater desalination project. The
motion was seconded by Councilmember Wuriu and unani-
mously carried. (5-0)
Mayor Sheetz stated she is grateful to the City of San Luis
Obispo for their offer of a joint project.
Mr. Napper suggested since Council has directed supplemental pro-
posals from the vendors for a reduced project, this item be con-
tinued until actual costs are known.
Councilmember Luna stated consideration needs to be given to
Alternatives for large volume water users like the Pacific Care
Center. Ms. Burt commented they do have options, such as
retrofitting, to reduce their water use.
Councilmember Luna stated at the last meeting the motion was to
address concerns of large users. He would like to see some cre-
ative things for Pacific Care Center.
Councilmember Mullen stated Pacific Care Center could meter all
areas separately. The whole point of the rate schedule is to
base it on volume. She does not want to sabotage the whole
schedule because of large volume water users. Other users which
need to be looked at are laundromats and trailer parks. She was
unclear why the Water Advisory Board is so set on meter charges.
Council agreed they wanted water rates based on volume.
Mayor Sheetz opened the hearing to the public for comments.
Charles Palmer said the City refuses to let people individually
meter their trailer sites. Also, several businesses on one meter
should be metered separately.
Robert Enns, 3421 Ocean, Cayucos, and member of the Water Advi-
sory Board, encouraged Council to keep the monthly meter charge.
He said it can be used for capital cost of the system; the rates
can be used for the operation and maintenance of the water
system.
Katherine Walling stated if it had not been for Cayucos, the City
would not have received a grant for the sewer project. It was
given to the project because Cayucos needed it, not Morro Bay.
We must be friendly to Cayucos.
0 i
MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING - MARCH 25, 1991
PAGE 17
Mayor Sheetz closed the hearing to the public.
MOTION: Councilmember Mullen moved this item be continued to
the next meeting. The motion was seconded by Coun-
cilmember Wuriu and unanimously carried. (5-0)
E. CLOSED SESSION
MOTION: Councilmember Luna moved the meeting be adjourned to
Closed Session. The motion was seconded by Councilmem-
ber Baker and unanimously carried. (5-0)
Mayor Sheetz announced Council is adjourning to Closed Session to
discuss pending litigation in accordance with Government Code
Section 54956.9(a), Norton vs. City of Morro Bay, et al.
The meeting adjourned to Closed Session at 9:05 p.m. and returned
to regular session at 9:21 p.m.
i s � • 1��Iwi�GY
MOTION: Councilmember Baker moved the meeting be adjourned.
The motion was seconded by Mayor Sheetz and unanimously
carried. (5-0)
The meeting adjourned at 9:21 p.m.
Recorded by:
ARDITH DAVIS
City Clerk
0
City Of Morro Bay
City Council Agenda
Mission Statement
The City of Morro Bay is dedicated to the preservation and enhancement of the quality of life
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.
SPECIAL MEETING - MARCH 22, 1991
VETERANS MEMORIAL HALL - 4:00 P.M.
209 SURF ST.. MORRO BAY. CA
ROLL CALL
PUBLIC COMMENT PERIOD - Members of the audience wishing to address the
Council on City business matters (other than Public Hearings items under
Section D) may do so at this time. 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-1 PRESENTATIONS BY VENDORS FOR LOCAL TEMPORARY EMERGENCY WATER PROJECT
5811F.� • )IA L_
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.
NOT S C E O F S P E C S AL ME ET S NG
NOTICE IS HEREBY GIVEN that a Special Meeting of
the Morro Bay City Council is hereby called to be held
on Friday, March 22, 1991 at 4:00 p.m. in the Veterans
Memorial Hall, 209 Surf Street, Morro Bay, CA.
Said Special Meeting shall be for the purpose of
hearing presentations from firms submitting proposals
for a temporary emergency potable water supply project
(desalination) for the City of Morro Bay.
DATED: March 14, 1990 lzm k- -
/ROSE MARIE S E TZ, M
City of Morro Bay, Ca ifornia
0
CITY OF MORRO BAY
SCHEDULE OF PRESENTATION
BY
PROPOSING FIRMS
FOR
TEMPORARY EMERGENCY SEAWATER DESALINATION PROJECT
FRIDAY, 22 MARCH 1991
4:00 PM SPINTECH CORP.
4:30 PM AMERICAN ENGINEERING SERVICES, INC.
4:50 PM ARROWHEAD INDUSTRIAL WATER, INC.
5:10 PM POLYMETRICS INTERNATIONAL CORP.
5:30 PM AQUA DESIGN, INC.
MINUTES - MORRO BAY CITY COUNCIL
SPECIAL MEETING - MARCH 22, 1991
VETERANS MEMORIAL HALL - 4:00 P.M.
Mayor Sheetz called the meeting to order at 4:00 p.m. She
explained this meeting was a workshop for the City Council and
there would be public comment before the presentations but no
public comment after each presentation.
PRESENT: Rose Marie
John Baker
Ben Luna
Sue Mullen
Tom Wuriu
Sheetz Mayor
Councilmember
Councilmember
Councilmember
Councilmember
ABSENT: None
STAFF: Gary Napper
Forrest Henderson
Nick Nichols
Bill Boucher
Elane Novak
City Administrator
Asst. City Adm.
Public Works Dir.
Assoc. Civil Eng.
Deputy City Clerk
1. Roger Ewing said he hoped City Council would consider all
aspects of desal plants before making their decision; such as
pollutants that would result and what to do with all the salt,
would it go back in the ocean or on the shore?
2. Charles Palmer was concerned about not being able to ask
questions after each presentation. He also questioned figures used
by various agency staffs which indicate how much water is used by a
family of 4 or 5 each day; according to his calculations, after
retrofitting a family of 4 or 5 would use considerably less water
(50 gallons per day maximum) than indicated in these acre foot
figures.
3. Catherine Walling said she would not like to see San Luis
Obispo become the dominate figure in the desal plant and would
rather see us get water from Lake Nacimiento. She feels the City
could work out pipelines to make this possible rather than the
desal.
Mayor Sheetz closed the public hearing.
1
D. CITY COUNCIL WORKSHOP
D-1 PRESENTATIONS BY VENDORS FOR LOCAL TEMPORARY EMERGENCY WATER
PROJECT
Mayor Sheetz noted the City has received a written withdrawal by
Spintech Corp., so only four vendors remain:
1. American Engineering Services, Inc.. President, R. Kadaj
provided the presentation on their proposal.
Councilmember Luna asked if the City wanted the system upgraded to
produce a greater volume of water, how long would it take?
Mr. Kadaj said they could add 200,000 gallons to the plant in three
months.
Councilmember Luna asked if the City decided to purchase the plant
would the company charge to train our employees?
Mr. Kadaj said price given to City would include employee training.
Councilmember Luna asked about warranties on the plant.
Mr. Kadaj said there are two warranties; one on the membranes, by
the manufacturer, and a 12 month on equipment, pumps etc., if the
plant were operated to specifications.
Councilmember Baker asked about using one pump and replacing with
another?
Mr. Kadaj said the company will put in one type pump but when the
pump they have on order for the City comes in they will put that
pump in at company's expense.
Councilmember Wuriu asked if each unit produced 200,000 gallons.
Mr. Kadaj explained how the units worked. One unit could be taken
out without causing any problem to the other units. In the event
there is a lot of rain 2 or 3 units could be shut down without any
problem to the other units.
Mayor Sheetz asked where equipment is manufactured.
Mr. Kadaj said the equipment
plant is located in Monrovia,
can make delivery by July 1,
indicated earlier. They will
hand and will replace with
available, at company expense.
is manufactured in Canada and their
California. He said their company
with the exception of the pumps as
use some pumps the company has on
pumps ordered for the City when
Council asked if the plant is designed for use of electrical
energy, and could the City rent and then purchase; and if so, could
any of the rental money go toward purchase?
2
0
Mr. Kadaj said energy recovery devices are included in the price
and if the City rents the equipment for three years at their price,
the City can have the plant since the company will have amortized
their costs.
2. The second presentation was made by Dan Bergamini, Sales
Engineer for Arrowhead Industrial Water, Inc.
Councilmember Luna asked about guarantees on plant, expansion and
training of City Personnel to operate plant and salary range for
employees operating plant.
Mr. Bergamini said there is a one year warranty on material with a
separate warranty by the manufacturer on the membrane. He said the
plant could be expanded up or down and could only hazard a guess as
to salary but thought in the San Francisco, San Jose area plant
operators would make $15 to $18/hr.
Councilmember Wuriu asked if the units are parallel and if they
could be made more permanent?
Mr. Bergamini said all are usable and could be put in a permanent
building if the City wanted to remove the units from the trailers.
Mayor Sheetz asked if the company had pumps for our plant on hand;
what other plants the company had built, if they had built any
plants out of the country, if the plant would be powered by
electricity and if there was an energy recovery program?
Mr. Bergamini said they did have the pumps on hand for the Morro
Bay Plant and while they have not built any plants out of the
country they have serviced Diablo Canyon Plant for the past 5 to 7
years. He said while there would not be an energy recovery program
the pumps etc are. energy efficient and would be powered by
electricity.
Councilmember Luna asked about the filtration system for the plant.
Mr. Bergamini said they use a cartridge filter and the membranes
will be taken off -site for cleaning.
Mayor Sheetz asked for price differences between leasing and
buying.
Mr. Bergamini quoted the price differences in the report and said
the City could make a buyout after 18 months.
Councilmember Mullen asked if the July 1 set-up date was causing
pressure and increases the price?
Mr. Bergamini said this was not a problem as they have the
necessary equipment and is no price differential for this date of
operation.
3
Mayor Sheetz asked if the equipment is American made.
Mr. Bergamini said the equipment is American made.
3. Presentation number three was made by Mike Lamendola, Vice
President for Polymetrics International Corp.
Councilmember Luna asked if electrical power is lost to the plant,
there a backup generator?
Mr. Lamendola said there is not a generator backup provided but the
system uses 850 kilowatts per hour and the City can install backup
generators. Warranties are basically the same a presented by the
other companies except their DuPont membrane warranty is for 5
years rather than the usual 3 years.
Councilmember Wuriu asked if turning the system on and off or
decreasing or increasing the flow to fill the reservoir would hurt
the system?
Mr. Lamendola indicated that it would not and mentioned their
proposed 250,000 gallon tank reservoir could be filled for a
backup.
Mayor Sheetz asked if the reservoir was included in the price of
the plant.
Mr. Lamendola said that the reservoir was part of the package and
was included in the price given to the City.
Councilmember Mullen asked if there was an alternate energy
program.
Mr. Lamendola indicated the plant would be electric and there was
no alternate energy plan; all plants are powered by fossil fuels.
4. Presentation number 4 was managed by David Grunau for Aqua
Design. During the course of the presentation, he asked other
members of his team to speak and also a supplier of their Dow
FilmTech membranes.
Mayor Sheetz asked what happens to the excess salt.
Mr. Grunau said we are very fortunate in having our sewer treatment
plant where it is in that we will be able add the salt back in with
the treatment plant outfall, thus adding back to the ocean a more
neutral water than the "sweet" water being disposed presently.
Mayor Sheetz asked if it was better to have the plant in a building
where it was more protected?
4
A representative from Aqua Design said they were equally protected
whether on trailer or in a building and there was no difference in
cost.
Both Mayor Sheetz and Councilmember Wuriu asked if it would be best
to rent or buy?
A representative from Aqua Design said it really makes no
difference to them as each payment reduces the purchase price;
however, if the City were to buy outright the price would be
better because it eliminates the commercial interest rates the
company pays.
Councilmember Mullen asked if maintenance fees include cost of
membrane replacement?
Company representative said yes, there is 100% maintenance for
whatever is required.
F. ADJOURNMENT
Mayor Sheetz said there would be a public hearing on this item on
Monday, 25 March 1991, at the regular City Council meeting.
MOTION: Mayor Sheetz made a motion to adjourn the meeting, it
was seconded by Councilmember Wuriu and unanimously
carried. (5-0)
The meeting adjourned at 5:35 p.m.
Recorded by:
ELANE NOVAK
Deputy City Clerk
0
L7
'PZ424'( �Z /) / 9 9/ -- . Oj -Q, le5�45� 2cr", �.
0
City Of Morro B ay
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.
JOINT MEETING - MARCH 21, 1991
CITY COUNCIL/RECREATION & PARKS COMMI
LIBRARY PROGRAM ROOM - 7:00 P.M.
625 HARBOR ST., MORRO BAY, CA
ROLL CALL
PLEDGE OF ALLEGIANCE
PUBLIC COMMENT PERIOD - Members of the audience wishing to address the
Council/Commission on City business matters (other than Public Hearings
items under Section D) may do so at this time. 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. NEW BUSINESS
C-1 STATUS REPORT ON CENTENNIAL PARKWAY AND TIDELANDS PARK PROJECTS
D. PUBLIC HEARINGS, REPORTS & APPEARANCES
D-1 STATUS REPORT ON THE INFORMAL SPORTS PROGRAM (LAP SWIM), AND PARTIAL
CITY SUBSIDY OF SUMMER AQUATICS PROGRAM
D-2 DISCUSSION OF POSSIBLE JOINT FACILITIES USE AGREEMENT WITH SAN LUIS
COASTAL UNIFIED SCHOOL DISTRICT
D-3 REVIEW OF 1991-92 WORK PROGRAM
D-4 REVIEW OF SCHEDULED DAY(S) FOR 1991 LIGHTED BOAT PARADE
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/RECREATION & PARKS COMMISSION
JOINT MEETING - MARCH 21, 1991
LIBRARY PROGRAM ROOM - 7:00 P.M.
Vice Mayor Luna called the meeting to order at 7:04 p.m.
CITY COUNCIL
PRESENT: Ben Luna
John Baker
Susan Mullen
Tom Wuriu
ABSENT: Rose Marie Sheetz
RECREATION & PARKS COMMISSION
PRESENT: Cheryl Halterman
Jim Harzell
Dixon Hafley
Colby Crotzer
ABSENT: Sandra Young
Sonny Baldwin
Geoff Moreland
Vice Mayor
Councilmember
Councilmember
Councilmember
Mayor
Chairperson
Commissioner
Commissioner
Commissioner
Commissioner
Commissioner
Commissioner
STAFF: Steve Wolter Rec. & Parks Dir.
Ardith Davis City Clerk
Councilmember Baker led the Pledge of Allegiance.
None
:ffr7.1V Wteji• k l: _. _ u...
None
C. NEW BUSINESS
Mr. Wolter reviewed the Centennial Parkway project which includes
building a new restroom on the east side of Embarcadero, and
demolishing the one located at the west side along the water-
front; additional landscape improvements are also planned. He
noted objections from neighboring businesses have delayed comple-
tion of the project and increased costs.
MINUTES - MORRO BAY CITY COUNCIL/RECREATION & PARKS COMMISSION
JOINT MEETING - MARCH 21, 1991
PAGE 2
Councilmember Wuriu stated some time ago, Morro Bay Beautiful
proposed a plaque in memory of Louis Domenghini for the Centen-
nial Stairway area. Mr. Wolter stated he has that information in
his files and, as the project nears completion, he will contact
Morro Bay Beautiful to work with him on placement of the plaque.
Councilmember Baker asked about the contractor default on the
construction of the restroom. Mr. Wolter stated the bond posted
for the project will complete the improvements.
Mr. Wolter stated staff is preparing a permit application to the
Coastal Commission as the final step in obtaining permits for the
Tidelands Park project. There are four acres of improvements
planned (sidewalk, park, stairway observation decks, etc.) in
this project. It is estimated to cost $565,000 when completed;
Mr. Wolter reviewed grants available for this project which total
$465,000. Staff is attempting to access other grants for the
$100,000 difference. Mr. Wolter stated the California Conserva-
tion Corps (CCC) will help with the installation of improvements
at both park sites. He requested Council appropriate $9,500 of
Park -In -Lieu fees for purchase of supplies for the CCC to com-
plete the Centennial Parkway project before the summer tourist
season.
MOTION: Councilmember Baker moved Council appropriate $9,500
from Park In -Lieu Fees for the completion of the Cen-
tennial Parkway project, and accept the remainder of
the report for file. The motion was seconded by Coun-
cilmember Wuriu and unanimously carried. (4-0)
Mr. Wolter had the Recreation and Parks Commission introduce
themselves to Council. Commissioner Colby asked a question about
the process; why the Council is voting on the appropriation and
the Commission is not? Mr. Wolter stated it is appropriate for
Council to allocate funds. Commissioner Hartzell stated the Com-
mission has no authority to appropriate funds; they only make
recommendations to Council.
K_ '�: •� .. �.•11:ss •�: :.• ._:_v.0156_.�
Mr. Wolter reviewed the recent history of the lap swim program
which involves increased rental fees from the San Luis School
District, and the City passing those increases on to the partici-
pants (the fee for pool use increased from $7/hour to $14/hour).
He reviewed the advertising and promotion programs to increase
participation in the program, and volunteer efforts from partici-
pants to keep the program operating at a minimal cost.
MINUTES - MORRO BAY CITY COUNCIL/RECREATION & PARKS COMMISSION
JOINT MEETING - MARCH 21, 1991
PAGE 3
Mr. Wolter reported during the first month of this program,
January, expenses exceeded revenue by $2,000; in February the
deficit was down to $1,600. He noted the new fees were insti-
tuted during low participation months (winter) and the program
may be more successful in the upcoming spring and summer season.
He reviewed alternatives to the program which include closing the
pool and advising participants to swim at other facilities in the
area. He does not believe the public will be receptive to this
suggestion. Mr. Wolter noted Morro Bay charges the highest rates
for pool use in the County.
Councilmember Wuriu asked if Morro Bay is the only jurisdiction
that does not subsidize pool use? Mr. Wolter stated he believes
SO. Councilmember Mullen commented the City has been subsidizing
the program during the last few months. Mr. Wolter suggested a
possible arrangement could be worked out with the Cayucos pool
for use during winter months when participation is lower. A sur-
vey of the lap swimmers is underway to determine if this is
feasible.
Mr. Wolter stated he is also working with the School District for
an exchange of services which could reduce pool rental costs. He
recommended Council approve continuation of the informal sports
program until September without any change in policy direction
regarding self-sufficiency, and approve the subsidy of recre-
ational swim conceptually with final authorization for the sub-
sidy given during the budget hearings.
Commissioner Halterman encouraged Council to approve the recom-
mendation to keep the program the same; she believes the summer
program is particularly important for children.
Councilmember Wuriu asked how many people benefit from the pro-
gram? Mr. Wolter said when it was a drop -in program, 300 to 400
different people would swim in a month. Now drop -in people have
to pay a significant use fee to swim; there are approximately 45
to 50 regular people who pay a monthly fee to swim.
Councilmember Baker asked if the promotion and marketing of the
program has brought new people in? Mr. Wolter believes so, but
reminded Council the winter months could be resulting in low
participation.
Councilmember Mullen asked if there has been any success with
keeping the pool temperature high enough? Mr. Wolter stated this
has not been a problem recently due to improved communication
with School District staff.
Vice Mayor Luna said with regard to the need for additional vol-
unteers, has staff considered offering incentives for partici-
pants to volunteer, such as discounts on fees? Mr. Wolter stated
the Department generally does not do that with volunteers because
MINUTES - MORRO BAY CITY COUNCIL/RECREATION & PARKS COMMISSION
JOINT MEETING - MARCH 21, 1991
PAGE 4
they have an extensive volunteer program. If incentives are
allowed in this program, other volunteers would want the same
consideration. He stated there is an annual volunteer dinner
which the Department sponsors for all volunteers.
Councilmember Mullen asked if the Friends of the Pool is still an
active organization? Norma Vaughn stated they will be getting
together soon. Commissioner Halterman asked if they have lost
members? Ms. Vaughn stated 3 have switched to the Sinsheimer
pool because of the reduced pool hours in Morro Bay.
Councilmember Mullen asked what incentives the Department can
offer to encourage people to swim in Morro Bay during the summer
as opposed to going elsewhere? Mr. Wolter stated they are con-
sidering different incentives: bring rates down; activities to
appeal to different age groups; allowing the use of inflatable
toys in the pool on certain days. The biggest problem for par-
ticipation in the summer is fog.
Commissioner Crotzer commented the Recreation and Parks Mission
Statement is to encourage healthy and enriched lives. The swim
program is worth more consideration than financial, and should
not be given up lightly.
Vice Mayor Luna opened the hearing to the public.
Susan Wilson, 1165 Las Tunas and lap swim participant/volunteer,
believes more publicity of the program is needed. She encouraged
Council to keep the program working.
Norma Vaughn, 585 Kings Ave., commented on the need to keep on
the School District about the water temperature in the pool. She
said the summer pool instruction program will suffer if the chil-
dren are too cold; it should be a pleasant experience for them.
Councilmember Mullen asked if the Department offers junior/senior
lifesaving? Mr. Wolter said they are trying to offer that pro-
gram; the instructors have to hold certain certificates to teach.
MOTION: Councilmember Mullen moved Council approve continuation
of the informal sports program until September without
any change in policy direction regarding self-suffi-
ciency, and approve the subsidy of recreational swim
conceptually until budget hearings. The motion was
seconded by Councilmember Baker and unanimously
carried. (4-0)
Mr. Wolter reviewed the draft agreement with the School District
which includes the establishment of a Joint Facility Use Commit-
• •
MINUTES - MORRO BAY CITY COUNCIL/RECREATION & PARKS
JOINT MEETING - MARCH 21, 1991
PAGE 5
tee to insure communication between the entities party to the
agreement. He said most exchanges proposed are not valuable to
the School District at this time because of their budget prob-
lems. There is a possibility the City can exchange maintenance
of the pool for rent credit, and provide utility bill credits to
the School District for the water used at the pool. This would
necessitate placing a meter on the swimming pool in -take water
line.
Councilmembers Baker and Wuriu were in favor of placing a meter
on the pool to determine actual use.
Vice Mayor Luna suggested surveying other pool facilities to find
out how much water they use in order to estimate a figure for the
Morro Bay pool.
Councilmember Mullen believes it is a good idea to pursue the
maintenance aspect of the pool. She asked if there has been any
discussion of Morro Bay writing grants to obtain a new boiler or
solar system for the pool? Mr. Wolter said he has looked into
it, but there is not much available right now. Councilmember
Mullen suggested the Recreation and Parks Department's reputation
as grant writers be used as a service to be exchanged with the
School District.
Vice Mayor Luna opened the hearing to the public for comments;
there were no comments and the hearing was closed.
MOTION: Councilmember Luna moved staff be directed to explore
the concept of City installation of a water meter at
the Morro Bay High School swimming pool in order to
credit swimming pool water use on San Luis Coastal Uni-
fied School District water bills. The motion was sec-
onded by Councilmember Wuriu and unanimously carried.
(4-0)
Mr. Wolter briefly reviewed the Recreation and Parks Department
Work Program which details the leisure services and facilities
needed in the community. It is intended as a guideline for bud-
get requests this year, and includes some long-range planning.
He recommended Council accept the report for file. Mr. Wolter
stated the City Administrator recommends Council ask the Recre-
ation and Parks Commission what is their top priority for funding
in the next fiscal year.
Commissioner Halterman said her priority is the Veterans Memorial
Building; improvements have been put off for so many years. She
said the Community Center is packed with activities; if the Vets
Hall were upgraded, more people would be willing to have their
activities there. Commissioner Hartzell agreed; the outside of
MINUTES - MORRO BAY CITY COUNCIL/RECREATION & PARKS COMMISSION
JOINT MEETING - MARCH 21, 1991
PAGE 6
the building definitely needs upgrading. Mr. Wolter stated Coun-
cil allocated $25,000 to the Vets Hall roof and ventilation sys-
tem during capital budget review in January.
Commissioner Hafley stated since he is new, he will go along with
the other Commissioners regarding the Vets Hall.
Commissioner Crotzer encouraged expansion of bikepaths and trails
to tie together the north and south parts of the City.
Vice Mayor Luna stated he has been meeting with high school stu-
dents recently and suggested they be included in the Art -in -the -
Park program. It would be a great opportunity for the junior/
senior high school students to display their work. Mr. Wolter
stated the Morro Bay Art Association controls the Art -in -the -Park
event; he will talk to them about it. He noted the Art Associa-
tion generally looks for people who generate revenue for the
items displayed. Councilmember Mullen stated the high school art
show could be separate from Art -in -the -Park.
Vice Mayor Luna stated he had suggested at an earlier meeting a
swim-a-thon be held to raise money for the pool. Perhaps the
suggestion can be included in the Work Program; staff can work
with the Friends of the Pool and make it an annual event. Coun-
cilmember Mullen suggested the Chamber of Commerce sponsor a
water carnival during the summer.
Councilmember Mullen is concerned about teens, and asked if the
Recreation and Parks Department focuses on age groups? Mr.
Wolter stated only on populations where revenue can be generated,
noting the Department's policy requiring programs be self-sus-
taining. He said it may be possible to have a Recreation and
Parks Department presence on the high school campus at various
times; perhaps revenue could be generated through intra-mural
sports activities. The programs with teens work better if the
teens decide what they want to do. He said he will also bring it
up in discussions with the School District regarding the exchange
of services agreement. Mr. Wolter noted Commissioner Crotzer
works at the Jr. High School and may be able to help in that
area.
Vice Mayor Luna opened the hearing to the public; there were no
comments and the hearing was closed.
MOTION: Councilmember Wuriu moved Council accept the Work Pro-
gram for file. The motion was seconded by Councilmem-
ber Mullen and unanimously carried. (4-0)
Mr. Wolter stated whether to hold the Boat Parade on Saturday or
Sunday has been a controversy for a number of years. He reviewed
MINUTES - MORRO BAY CITY COUNCIL/RECREATION & PARKS COMMISSION
JOINT MEETING - MARCH 21, 1991
PAGE 7
how the program has worked in the past; it has been held on both
Saturday and Sunday nights. The restaurants in town prefer the
parade to be held on Sunday evening in order to increase revenue
on that night; Saturday night is a busy night for local restau-
rants without the parade and people tie up their tables in order
to watch the parade. Hotel/motel owners prefer Saturday which
increases their revenues when people stay -over because of the
parade. He reviewed the pros and cons of both days from the per-
spective of business people and participants in the parade.
Holding the parade on both nights has also been suggested.
Commissioner Crotzer stated when the lighted boat parade is held
in Marina Del Rey, the restaurants have a time limit on tables so
there is a turn -over and people are not allowed to hold the table
for the entire evening.
Vice Mayor Luna opened the hearing to the public.
Ed Biaggini stated his address is 456 Embarcadero, he is Presi-
dent of the Morro Bay Motel and Restaurant Association, and a
member of the Community Promotions Committee; he spoke at length
on this item. He said the fishermen prefer to have the event on
Saturday, so they can use Sunday to remove the decorations from
their boats and be ready to go fishing on Monday.
Mr. Biaggini stated he has discussed the matter with restaurant
owner Rodger Anderson and suggested they set time limits on their
tables on Saturday night. Mr. Anderson's response was that it is
asking them to do something they don't normally do and change
their way of doing business. Mr. Anderson made a comment the
Harbor Festival is not good for restaurant business, however, he
does support it as a community event for Morro Bay. Mr. Biaggini
stated if the parade is held on Sunday, most people will not
stay -over because they work the next morning; also, children are
allowed to stay up later on a Saturday night.
Councilmember Wuriu asked if more out-of-towners attend the event
on Saturday night, and more local people on Sunday night? Mr.
Biaggini said he has not been able to determine that.
Suedene Nelson, Executive Manager of the Chamber of Commerce,
stated the Chamber receives a lot of calls from people who want
to come to the parade. She said the City looses promotion space
during the year when they inform magazines the event is on Sunday
night. Not many tourists attend the event if it is on Sunday
night.
Councilmember Mullen asked if the Chamber has discussed the mat-
ter at a general meeting? Ms. Nelson stated no, but it can be
placed on the agenda.
0 6
MINUTES - MORRO BAY CITY COUNCIL/RECREATION & PARKS COMMISSION
JOINT MEETING - MARCH 21, 1991
PAGE 8
Councilmember Mullen asked where the idea the boat parade has
"lost its local flavor" came from? Mr. Wolter stated the Recre-
ation and Parks Commission has heard complaints on that. Commis-
sioner Halterman said in 1988, the parade was held on Sunday
night; people knew who was on the boats. In 1989, it was on Sat-
urday night and people did not know each other; there were a lot
of out-of-town people at the parade, and half way through the
parade there was booing. She prefers Sunday night because there
is more of a family feeling, and only local people are involved.
However, she discussed the matter with the parade participants
and they prefer Saturday so they can have Sunday to dismantle the
decorations from their boats. Since they are the ones that make
the parade, she recommends in favor of their preference.
Commissioner Hartzell commented the Yacht Club, where the judging
and after parade activities are held, closes its bar down during
the parade because of experiencing rowdiness two years ago. Com-
missioner Hafley favored Saturday night because it's more benefi-
cial to the business community.
Councilmembers expressed their preference for Saturday as well.
MOTION: Vice Mayor Luna moved the Lighted Boat Parade be held
on Saturday night. The motion was seconded by Coun-
cilmember Baker and unanimously carried. (4-0)
Commissioner Crotzer stated he appreciated Mr. Biaggini relaying
the comments of Mr. Anderson and complimented Mr. Anderson on his
open attitude and ability to separate business from community
spirit.
F. ADJOURNMENT
MOTION: Councilmember Baker moved the meeting be adjourned.
The motion was seconded by Councilmember Mullen and
unanimously carried. (4-0)
The meeting adjourned at 8:52 p.m.
Recorded by:
ARDITH DAVIS
City Clerk
• 0
City of Morro Bay
City Council Agenda
Mission Statement
The City of Morro Bay is dedicated to the preservation and enhancement of the quality of life
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 - MARCH 11, 1991
VETERANS MEMORIAL HALL - 6:00 P.M.
209 SURF ST., MORRO BAY, CA
ROLL CALL
INVOCATION
PLEDGE OF ALLEGIANCE
SAN LUIS OBISPO JUNIOR WOMEN'S CLUB FOR DONATION OF TEDDY
BEARS TO FIRE DEPARTMENT
PUBLIC COMMENT PERIOD - Members of the audience wishing to address the
Council on City business matters (other than Public Hearings items under
Section D) may do so at this time. 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 (CITY COUNCIL)
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 25, 1991
A-2 RESOLUTION NO. 26-91 SUPPORTING SB 169 (BOATWRIGHT) AS THE ALTERNATIVE
TO SB 2557 COUNTY FEES, AND PETITIONING THE COUNTY BOARD OF SUPERVI-
SORS TO ENDORSE SB 169
A-3 AWARD OF CONTRACT FOR PROJECT NO. RP 90-01, KEISER PARK EAST SPORTS -
FIELD LIGHTING RENOVATION PULLED
A-4 REJECTION OF LIABILITY CLAIM AGAINST THE CITY (HISCHIER)
A-5 ACCEPTANCE OF RESIGNATION FROM CABLE TV BOARD (CAHILL) AND CONSIDERA-
TION OF APPOINTMENTS TO VACANCIES ON CABLE TV BOARD AND SOLID WASTE
MANAGEMENT BOARD
A-6 STATUS REPORT ON CITY WATER SUPPLY
A-7 RESOLUTION NO. 25-91 PROHIBITING ON -STREET PARKING ON A PORTION OF
WEST AVENUE, NORTH OF BEACH STREET (WEST SIDE APPROXIMATELY 90 FEET)
1
B. UNFINISHED BUSINESS
B-1 ORDINANCE NO. 393 AMENDING MUNICIPAL CODE SECTION 13.20 TO ALLOW
SPECIAL PRIORITY BUILDING ALLOCATIONS FOR ON -SITE CONVERSION PROJECTS
(SECOND READING/ADOPTION)
C. NEW BUSINESS
Q10NIy
D. PUBLIC HEARINGS. REPORTS & APPEARANCES
D-1 FORMATION OF CITY COMMENTS ON DRAFT ENVIRONMENTAL IMPACT REPORT FOR
PROPOSED EXPANSION OF COLD CANYON LANDFILL
D-2 CONSIDERATION OF ADDITIONAL APPLICANT MATERIALS REQUIRED BY CONDI-
TIONAL USE PERMIT AND COASTAL DEVELOPMENT PERMIT (CONCEPT PLAN) FOR
THE PACIFIC COAST SHOPPING PLAZA (CUP 03-88/CDP 05-88R; WILLIAMS
BROTHERS MARKET, APPLICANT) PULLED
D-3 CONTINUED HEARING ON ORDINANCE NO. 392 TO REZONE PORTIONS OF POINT
MOTEL PROPERTY FROM OPEN SPACE TO SINGLE FAMILY DWELLING (ZOA 09-90;
FRANK DENIS, ET AL, APPLICANTS) INTRODUCTION/FIRST READING
D-4 RESOLUTION NO. 24-91 AUTHORIZING EXTENSION OF TIME TO RECORD A FINAL
MAP ON APPROVED RESIDENTIAL SUBDIVISION LOCATED ON NORTH SIDE OF
MIMOSA STREET BETWEEN HILL STREET AND IRONWOOD AVENUE (TM 02-87/
CDP 14-87R; ALDRIDGE/BREEN, APPLICANTS)
D-5 ORDINANCE NO. 394 AMENDING MORRO BAY MUNICIPAL CODE SECTION
13.20.080(A)(B.1) AND (B.2) REGARDING VALIDITY OF HISTORICAL WATER
EQUIVALENCIES ON PROPERTIES (INTRODUCTION/FIRST READING)
D-6 ORDINANCE NO. 395 REQUIRING MANDATORY RETROFIT OF PLUMBING FIXTURES
WITH WATER SAVING DEVICES UPON SALE OR TRANSFER OF REAL PROPERTY
(INTRODUCTION/FIRST READING)
D-7 HEARING FOR APPEAL OF PLANNING COMMISSION APPROVAL FOR TIDELANDS PARK
PHASE 2 (CUP 35-89/CDP 62-89, HAGENBACK, DUNLAP, OGLE, LEONHARDT,
CARATAN, APPELLANTS) APPEAL WITHDRAWN
E. CLOSED SESSION
E-1 GOVERNMENT CODE SECTION 54956.9(A), WILLIAMS BROTHERS MARKETS, ET AL
VS. CITY OF MORRO BAY, ET AL U.S. DISTRICT COURT CASE NO. CV-
9:0496WMB(GHKX)
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.
MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING - MARCH 11, 1991
VETERANS MEMORIAL HALL - 6:00 P.M.
Mayor Sheetz called the meeting to order at 6:00 p.m.
ROLL CALL
PRESENT: Rose Marie Sheetz
John Baker
Ben Luna
Susan Mullen
Tom Wuriu
ABSENT: None
STAFF: Gary Napper
Judy Skousen
Louise Burt
Ardith Davis
William Farrel
Forrest Henderson
Nick Nichols
Bernie Zerr
Mayor
Councilmember
Councilmember
Councilmember
Councilmember
City Administrator
City Attorney
Finance Director
City Clerk
Community Dev. Dir.
Asst. City Admin.
Public Works Dir.
Fire Chief
Craig Deardon, Bishop in the Church of Jesus Christ of Latter Day
Saints, gave the invocation, and Horace Strong led the Pledge of
Allegiance.
PRESENTATION: SAN LUIS OBISPO JUNIOR WOMEN'S CLUB FOR DONATION
OF TEDDY BEARS TO FIRE DEPARTMENT
Mayor Sheetz stated the San Luis Obispo Junior Women's Club is
donating Teddy Bears to the Fire Department. The Fire Department
will give the Bears to small children when responding to an emer-
gency; this helps the child psychologically when going through
traumatic events. She presented a Certificate to the Junior
Women's Club thanking them for their donation. The Junior
Women's Club and Mayor Sheetz both presented Chief Zerr with
Teddy Bears.
1. Ed Biaggini, representing the San Luis Obispo County
Visitors and Conference Bureau presented a plaque to Chief Zerr
and his Department for their assistance during the 1991 VCB's
annual dinner held at the Fire Station.
2. Charles Palmer stated last Friday the well reading at
the Ashurst well was 12 feet below sea level; after the rains on
March 5th, the well level rose to k foot below sea level. If
MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING - MARCH 11, 1991
PAGE 2
Morro Bay receives 2k to 3 inches more of rain, we will probably
be in the same position we were last year. He said the situation
looks hopeful.
3. Ron Hillman, 420 Harbor St., suggested Council get a
longer microphone for the public so they do not have to stoop
over to speak into it.
4. Nelson Sullivan discussed Item B-1, Ordinance No. 393
which allows for conversion of uses on a site during years when
Council does not allocate water, and stated the Council is game -
playing with water. The City cannot predict how much water will
be used by the new use. The program is a facade.
5. Ray Kaltenbach, 473 Sicily, does not believe the levels
of wells are coming up because of rain; if they are rising it is
because the agricultural users are not watering when it rains.
6. Ed Biaggini, 1164 Market Ave. and President of the
Motel/Hotel Association, discussed a meeting held by the Associa-
tion to discuss the 15% cut -back on water to commercial users.
He said they are united in their effort to reach the goal set by
Council, but are concerned they may not be able to do it. There
are variables which Council should consider. An increase in
business means an increase in water. Easter vacation is coming
up and that is a time when motel occupancy rates increase and
more meals are served. Also motels built after 1980 have 3' gal-
lon toilets; many people who have retrofitted in the past are
concerned they will not be able to cut back further. He asked if
the City would be willing to help the Association similar to the
way the City of San Luis Obispo helped their hotel/motel indus-
try? The City purchased 1' gallon toilets and the motel owners
installed them.
None
A.
A-1
1991
Mr. Mapper recommended Council approve the minutes as submitted.
A-2 RESOLUTION NO, 26-91 SUPPORTING SB 169 (BOATWRIGHT) AS THE
Mr. Mapper recommended Council adopt Resolution No. 26-91.
MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING - MARCH 11, 1991
PAGE 3
T1I:�:1�t3;1fh�7 � ti Y: 7:C� �i �llf):a 3;Z•ri �P3tr t [•1�;� i'I�II4 �:1 �M F'� �f ;a:]:l;�:i:�►:�•'Y.
A-4 REMECTION OF L•IABIL•ITY CLAIM AGAINST THE CITY (HISCHIER)
Mr. Mapper recommended Council deny the claim, and authorize the
City Clerk to send the rejection notice.
A-5 ACCEPTANCE OF RESIGNATION FROM CABLE TV BOARD (CAHI11) AND
CONSIDERATION OF APPOINTMENTS TO VACANCIES ON CABLE TV BOARD
AND SOLID WASTE MANAGEMENT BOARD
Mr. Napper recommended Council pull this item from the Consent
Calendar and provide direction to staff.
A-6 STATUS REPORT ON CITY WATER SUPPLY
Mr. Napper recommended Council receive the report for file.
A-7 RESOLUTION NO, 25-91 PROHIBITING ON -STREET PARKING ON A
PORTION OF WEST AVENUE, NORTH OF BEACH STREET (WEST SIDE
APPROXIMATELY 90 FEET1
Mr. Mapper recommended Council adopt Resolution No. 25-91.
Mayor Sheetz pulled Items A-5, and A-6 from the Consent Calendar;
Councilmember Wuriu pulled Item A-2.
• .Y •. .• ;'2•; _� tea•. 4.1; . _ 4.
Councilmember Wuriu said SB 169 would delay for one year the nor-
mal depreciation figure used in auto licences, and asked if this
would be for one year or a permanent saving? Mr. Mapper stated
it would be a permanent saving every year and would substitute
for the losses the State had to cut this year and every year
thereafter. The State eliminated a lot of their aid to counties
and gave them the authority to recoup lost revenues by charging
cities and school districts. SB 169 is substitution legislation
granting them a different source of revenue.
A-5
Mayor Sheetz stated
Mr. Cahill may not k
cil not accept his
She instructed staff
accepted.
in view of the fact the Gulf War is over, and
* called to active duty, she suggested Coun-
resignation from the TV Board at this time.
write to him advising his resignation is not
• •
MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING - MARCH 11, 1991
PAGE 4
Councilmember Baker nominated Howard Smith to the vacancy on the
Solid Waste Management Board; the nomination carried 4-1 with
Councilmember Mullen dissenting.
Mayor Sheetz requested a status report on the emergency desal
project. Mr. Nichols stated proposals are due by Friday, March
15th at 5 PM. A recommendation for awarding the project with be
on Council's March 25th agenda.
Mayor Sheetz asked if the City is looking for someone to build
the plant or run it? Mr. Nichols stated both options are
included. Mayor Sheetz said she would like to meet the people
bidding on this project and ask some questions. She suggested a
special Council meeting for this purpose.
Councilmember Mullen agreed; it will give Council a chance to
look at the information in advance of making a decision Monday
night. There was discussion regarding this item; Council con-
curred to hold a special meeting to receive presentations from
the vendors submitting proposals. Staff will poll Council for an
appropriate date and time.
Councilmember Mullen asked if staff is measuring water levels in
Well Nos. 9A, 10A, and 11A in the Ashurst field? Mr. Nichols
stated yes; if the level is not reported in the weekly well level
report, it is because the pump was running and work crews do not
interrupt the pumping to take static levels.
Councilmember Wuriu commented on the suggestion of the Governor
of Alaska to run a pipeline to California to import water from
Alaska.
MOTION: Councilmember Luna moved for approval of the Consent
Calendar. The motion was seconded by Councilmember
Baker and unanimously carried. (5-0)
B.
B-1
Mr. Napper stated the Ordinance before Council, which allows on -
site conversion projects to proceed during years when water for
new hook-ups is not allocated, incorporates Council's amendment
at the last meeting. Projects may only proceed with the amount
of water equivalencies under Table A or what constitutes the cur-
rent water use for the site, whichever is less. Mr. Napper
reviewed the impact of this new provision which nearly eliminates
the opportunity for conversion projects. He suggested allowing
• •
MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING - MARCH 11, 1991
PAGE 5
conversions at 15% less water than Table A; this figure is what
Council is requiring commercial sites to reduce under the
rationing program.
A majority of Councilmembers agreed with Mr. Napper's assessment.
It was noted the program can only be accessed during years when
Council does not allocate new water hook-ups, and there are not
many sites that can take advantage of the program.
MOTION: Councilmember Mullen moved the Ordinance be revised to
amend Section 2 D to strike "the existing use as deter-
mined by current actual use on site or" and replace it
with 1115% less than". The motion was seconded by Coun-
cilmember Wuriu.
Councilmember Baker stated he is not in favor of the amendment;
the use should be based on Table A, rather than 15% less.
Mayor Sheetz asked how the amendment will affect the Alta Morro
project? Mr. Farrel stated it is estimated their project will
use 8.96 water equivalencies; the current annual use on the prop-
erty is 7.2 equivalencies and Table A allows 9.36. 15% less
means they will be allowed no more than 7.9 water equivalencies
which is not enough for the full scope of their project.
Mayor Sheetz stated she is in favor of the Alta Morro project
because it puts economy back into the community; she will vote no
on the 15% reduction.
SUBSTITUTE Mayor Sheetz offered a substitute motion Ordinance
MOTION: No. 393 be amended to use Table A only. The substitute
motion was seconded by Councilmember Baker and failed
on the following vote:
AYES: Baker, Sheetz
NOES: Luna, Mullen, Wuriu
MAIN The main motion carried on the following vote:
MOTION: AYES: Luna, Mullen, Wuriu, Sheetz
NOES: Baker
Mayor Sheetz noted the Ordinance will return as a public hearing
item for first reading.
' i2l:iliRWZP
NONE
MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING - MARCH 11, 1991
PAGE 6
L�vl+��iZ�:i�s�ii`.(d`�:i=�11�3.:z�`f'fEi�►:�:s:`:L•1��
u X-ViWi • • Y. . • .IY �I�Y 3f7��7a:�,9'Y4f �4J • �l �. �}% _ . .1•
'•: •' '910 4:X1 Z &I CS)Z • •
Mike Upton stated the EIR for the Cold Canyon Landfill expansion
has taken 18 months in preparation. It is in the public review
period at the present time, and final comments are due by March
15th. Mr. Upton reviewed the comments developed by the Solid
Waste Management Board, and recommended Council's adoption of the
comments along with any offered by Council this evening.
Mayor Sheetz opened the hearing to the public for comments.
John Nall stated he is the San Luis Obispo County Environmental
Specialist responsible for overseeing the preparation of the EIR
for the Cold Canyon Landfill expansion. He said after the public
comment period closes, he will be working with the EIR consultant
to answer the comments; there are over 326 comments thus far.
They plan to present the final EIR to the County Planning Commis-
sion in May or June 1991 for approval or denial of the project
and certification of the EIR.
Councilmember Luna asked why trees cannot be planted on the site
mound that is going to be moved closer to the road? Mr. Nall
stated trees are going to be planted along Hwy. 227 to shield
short-range views; the long-range view along some of the hilltops
cannot be mitigated with planting. There is no way to hide the
mound that will expand both laterally and vertically from long-
range viewsheds.
Councilmember Luna asked if some oak trees could be planted on
the site to mitigate impact to the long-range views? Mr. Nall
stated they are not allowed to plant trees on the landfill itself
because of the need to protect the integrity of the cap; roots
from trees can damage the cap. There is also a question of
whether or not anything will grow on the landfill cap except some
grasses.
Mayor Sheetz asked why the County refused 500 oak trees for the
site? Mr. Nall stated the offer was revoked by Cold Canyon Land-
fill. The County is not sure it can require the applicant to
provide the trees because the requirement was based on a previous
use permit; the applicant is re-evaluating whether they want to
plant the trees or not.
Councilmember Wuriu asked if there will never be anything to cam-
ouflage the mound? Mr. Nall said worse case, it is possible. He
has noticed grasses growing on the existing landfill. He noted
the EIR terms the long-range view impacts are unavoidable. Coun-
cilmember Wuriu asked if there will a problem with dust blowing?
Mr. Nall stated yes.
MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING - MARCH 11, 1991
PAGE 7
Councilmember Mullen stated the volume of infectious waste mate-
rial to the landfill is unknown, but estimated at � to 1 ton per
day; is there a way to know for sure what the figure is? Mr.
Nall stated the time and expense Cold Canyon would have to spend
to tie the figure down was out of line; therefore, an estimate
was established. He said Cold Canyon has argued with the figure,
but it is a worse case estimate.
Councilmember Luna asked if there are plans to seed the hillside
after the expansion is completed to give something a chance to
grow before dumping in the site is commenced? Mr. Nall said he
has received related comments, and landscaping will be done as
the project progresses.
Councilmember Luna asked if the consultant considered using tree
wells in order to plant trees on the site? The wells could
divert the tree roots away from the seal and prevent damage. Mr.
Nall stated he will present the suggestion to the consultant.
Ray Kaltenbach commented on the landfill at Griffith Park in Los
Angeles; it was awful, there was garbage everywhere. He said we
should go back to the incinerator; we are going to run out of
land for garbage.
Sandra Santini, Chairman of the Solid Waste Management Board,
said the Board has studied this problem for some time. They are
in favor of the expansion and urge Council to recommend to the
County Cold Canyon be expanded. She commented on the cleanliness
of the site when on tour, and stated the plans for expansion
encompass the technology recommended for landfills all over the
country.
Mayor Sheetz complimented the Board on the intelligent comments
they made on the project EIR.
Al Rizzoli, co-owner of Cold Canyon Landfill, reminded Council
there are only two years left to use the current site, and time
is growing short to approve this expansion project and have it
operating within two years. He said agencies can require what-
ever they want on the project, but someone is going to have to
pay for it. Comments to the EIR are appreciated, but they have
over 300 to respond to now.
Mayor Sheetz closed the hearing to the public.
Councilmember Baker complimented the Solid Waste Management
Board's intensive review of the EIR. He said many alternatives
to the landfill have been investigated, including incineration.
He believes it would be difficult to receive permitting approval
for this option due to air pollution.
0
MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING - MARCH 11, 1991
PAGE 8
MOTION: Councilmember Luna moved staff be instructed to forward
the comments from the Solid Waste Management Board to
the County of San Luis Obispo by March 15th. The
motion was seconded by Councilmember Wuriu and unani-
mously carried. (5-0)
Councilmember Luna noted his comment regarding planting of trees
in tree wells should also be included; staff noted this will be
done.
D-2 CONSIDERATION OF ADDITIONAL APPLICANT MATERIALS REQUIRED BY
9104,111" •. ►
Mr. Farrel stated Council approved the amendments and adopted
Resolution No. 11-91 making changes to the General Plan and Local
Coastal Program Land Use Plan at their January 28th meeting. The
Ordinance is presented this evening since the legal description
of the amendments was not available when Council first considered
the item.
Councilmember Luna clarified Council was approving zoning only;
no structures? Mayor Sheetz stated yes.
Mayor Sheetz opened the hearing to the public for comments; there
were no comments and the hearing was closed.
MOTION: Councilmember Mullen moved Ordinance No. 392 be read by
title and number only. The motion was seconded by
Councilmember Luna and unanimously carried. (5-0)
Mr. Mapper read Ordinance No. 392 by title and number only.
MOTION: Councilmember Mullen moved for approval of the intro-
duction and first reading of Ordinance No. 392. The
motion was seconded by Councilmember Luna and unani-
mously carried. (5-0)
Mr. Farrel stated this is a routine matter; the applicant is
requesting a one year extension to file the Final Map on this
project. He said one of the requirements of the subdivision was
• a
MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING - MARCH 11, 1991
PAGE 9
to improve Mimosa Street, and the applicant has encountered
numerous delays with the assessment district process due to
objections of some property owners.
Mayor Sheetz asked what is the status of the assessment district?
Mr. Nichols said service on property owners for eminent domain
proceedings has been completed. The only remaining issue is how
much the property owners will have to pay for the street improve-
ments, requiring re -assessment notices.
Mayor Sheetz opened the hearing to the public for comments; there
were no comments and the hearing was closed.
MOTION: Councilmember Baker moved for the adoption of Reaclu-
tion No. 24-91. The motion was seconded by Councilmem-
ber Luna and unanimously carried. (5-0)
D-5 ORDINANCE NO. 394 AMENDING MORRO BAY MUNICIPAL CODE SECTION
13.20.080(A)(B.11 AND (B.21 REGARDING VALIDITY OF HISTORICAL
WATER EQUIVALENCIES ON PROPERTIES (INTRODUCTION/FIRST
READING)
Mr. Farrel stated Council directed at their last meeting this
ordinance be amended to allow a 3-year window of opportunity to
allow property owners to use current water assigned to their
property. After the three-year period, there will be a 10-year
limit to re -institute the water use.
Mayor Sheetz opened the hearing to the public.
Albert Jorge, 845 Luisita, said he has reservations about the
Ordinance. He is a commercial property owner, and this ordinance
will make it difficult to accommodate lessees. He needs to know
how many water equivalencies he has in hand so he can let a
lessee know how much water he can use. The Ordinance does not
say what happens to the additional water equivalencies if they
are not used. He suggested Council table the Ordinance, or have
it studied by a citizens committee.
Mayor Sheetz closed the hearing to the public.
Mayor Sheetz asked Mr. Farrel about problems such as Mr. Jorge's
where he has commercial property that has yet to be rented, and
his information concerning additional water equivalencies. Mr.
Farrel stated it is a unique situation applicable to Mr. Jorge's
property and is not addressed in the Ordinance at all. Mr. Jorge
acquired some excess water through the pipeline replacement pro-
gram in 1986 expressly for the purpose of having adequate water
for anticipated uses.
Ms. Skousen disagreed. She said people are not allowed to pur-
chase water; water is assigned to uses. If he has been awarded
MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING - MARCH 11, 1991
PAGE 10
more water equivalencies than he is using, it will fall within
the proposed Ordinance. If he does not use it within 13 years
(3-year window period plus 10-year historical water use period),
he will lose it.
There was considerable discussion on this issue. It was estab-
lished the water equivalencies were purchased and applied to his
property on Main St.
Councilmember Baker said people purchase property knowing how
much water is available to the site; that figure should be static
indefinitely back to 1977.
Councilmember Wuriu commented if people are allowed to keep their
historical water use back to 1977 indefinitely, it will be impos-
sible to do any water planning since the City could not estimate
if the water will ever be used.
Mr. Farrel stated at Planning Commission request, staff conducted
a survey to find how many commercial properties would be affected
by this regulation. The result is there is only a handful at the
present time. The Planning Commission deduced since there is
little savings involved, there is no point in having the
Ordinance.
Mayor Sheetz said she has no problem with refunding Mr. Jorge's
money for the purchased water equivalencies he cannot use.
Councilmember Wuriu said Council has compromised on the Ordinance
quite a bit to protect property owners; they have taken a lot of
steps to make it a reasonable and fair Ordinance while at the
same time getting away from the idea once a property has water,
it is there forever.
Councilmember Baker said the Ordinance has the same effect as
taking a person's .property away if they do not use it within a
certain period.
Councilmember Luna asked if there is a way to amend the Ordinance
to allow for exemptions since there is a small number of proper-
ties involved? Councilmember Mullen said the point of the Ordi-
nance is to give guidance to people who have not used their prop-
erty in some time and now wish to develop, redevelop, etc. This
is a fair compromise in a drought situation for people who have
not been using water. Ten years is a fair period.
MOTION: Councilmember Mullen moved Ordinance No. 934 be read by
title and number only. The motion was seconded by
Councilmember Luna and unanimously carried. (5-0)
Mr. Napper read Ordinance No. 394 by title and number only.
MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING - MARCH 11, 1991
PAGE 11
MOTION: Councilmember Mullen moved for approval of the intro-
duction and first reading of Ordinance No. 1*4. The
motion was seconded by Councilmember Luna. 3qy'
Councilmember Baker said the Ordinance is unfair and is not going
to save water; it will cause lawsuits.
The motion carried with Councilmember Baker voting no.
(4-1)
Mr. Napper commented the State of California is considering leg-
islation to require mandatory retrofit on the sale or transfer of
property.
Ms. Skousen reviewed the Ordinance which was amended by Council
at their last meeting to include language allowing the Building
Inspector to waive requirement for a lk gallon toilet if plumbing
slope is not adequate; and, it gives property owners who wish to
demolish a building 90 days to do so or forfeit a performance
bond that will be used to retrofit the undemolished structure.
Mayor Sheetz opened the hearing to the public.
Ray Kaltenbach said this is a mickey mouse approach to saving
water. The water rate structure saves water and not retrofit.
John Madrid, Bay Pines, was concerned Mr. Jorge will open any
kind of business just to use the water so he does not lose his
water equivalency allocation. These are short-range goals.
Council should develop a water system that will support a totally
developed Morro Bay. He asked if someone offered Council all the
water they wanted for free, would they take it?
Mayor Sheetz closed the hearing to the public.
MOTION: Councilmember Luna moved Ordinance No. 395 be read by
title and number only. The motion was seconded by
Councilmember Wuriu and unanimously carried. (5-0)
Mr. Napper read Ordinance No. 395 by title and number only.
MOTION: Councilmember Luna moved for approval of the introduc-
tion and first reading of Ordinance No. 395. The
motion was seconded by Councilmember Wuriu and unani-
mously carried. (5-0)
0 0
MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING - MARCH 11, 1991
PAGE 12
D-7
• • ,
E-1
COURT CASE NO, CV-9:0496WMB(GHKX)
MOTION: Councilmember Luna moved the meeting adjourn to Closed
Session. The motion was seconded by Councilmember
Mullen and unanimously carried. (5-0)
Mayor Sheetz announced the Closed Session item as listed above.
The meeting adjourned to Closed Session at 7:55 p.m. and returned
to regular session at 8:27 p.m.
F.
MOTION: Councilmember Baker moved the meeting be adjourned.
The motion was seconded by Councilmember Luna and unan-
imously carried. (5-0)
The meeting adjourned at 8:27 p.m.
Recorded by: /�
L% A5���a�,
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.
CONTINUED MEETING — MARCH 8, 1991
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; WILLIAMS
BROTHERS MARKETS, ET AL VS. CITY OF MORRO BAY, ET AL, U.S. DISTRICT
COURT CASE NO. CV-9:0496WMB (GHKX)
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
CONTINUED MEETING -
CITY HALL CONFERENC
CITY COUNCIL
MARCH 8, 1991
ROOM - 5:30 P.M.
Mayor Sheetz called the meeting to order at 5:38 p.m.
PRESENT: Rose Marie Sheetz Mayor
John Baker Councilmember
Ben Luna Councilmember
Susan Mullen Councilmember
Tom Wuriu Councilmember
ABSENT: None
STAFF: Gary Napper City Administrator
Judy Skousen City Attorney
E. CLOSED SESSION
IIWII 4L .•, A M• y -71 ,1..
MOTION: Councilmember Wuriu moved the meeting adjourn to Closed
Session. The motion was seconded by Councilmember Luna
and unanimously carried. (5-0)
Mayor Sheetz announced Council is adjourned to Closed Session in
accordance with Government Code § 54956.9(a), pending litigation;
Williams Brothers Markets. et al vs. City of Morro Bay, et al,
U.S. District Court Case No. CV-9:0496WMB (GHKX).
The meeting adjourned to Closed Session at 5:38 p.m. and returned
to Open Session at 6:37 p.m.
F. ADJOURNMENT
MOTION: Councilmember Baker moved the meeting be adjourned.
The motion was seconded by Councilmember Wuriu and
unanimously carried. (5-0)
The meeting adjourned at 6:37 p.m.
Recorded
aim
MINUTES - MORRO BAY CITY COUNCIL
SPECIAL MEETING - MARCH 6, 1991
CITY HALL CONFERENCE ROOM - 6:00 P.M.
Mayor Sheetz called the meeting to order at 6:00 p.m.
PRESENT: Rose Marie Sheetz
John Baker
Ben Luna
Susan Mullen
Tom Wuriu
ABSENT: None
STAFF: Gary Napper
• e . • it .. i ._�
Mayor
Councilmember
Councilmember
Councilmember
Councilmember
City Administrator
Councilmembers interviewed applicants for the Community Promo-
tions Committee and the Streets and Trees Committee. The appli-
cants are as follows:
(5 members)
Ed Biaggini
Victor Graziano
Larry Reeck
John laver
Rodger Anderson
Carol Morgan - unable to attend
(7 members)
Nancy Bast
Jennifer Bradley-Lenet
John Whitacre
Curtis Poppenberg
Kathleen Leech-Maroxz
Al Paul
Craig Beecham
MOTION: Councilmember Mullen moved all seven applicants to the
Streets and Trees Committee be appointed. The motion
was seconded by Councilmember Wuriu and unanimously
carried. (5-0)
0 0
MINUTES - MORRO BAY CITY COUNCIL
SPECIAL MEETING - MARCH 6, 1991
PAGE 2
MOTION: Councilmember Mullen moved the Council Policy Statement
regarding Advisory Board appointments be amended to
allow applicants unable to attend interviews, with a
valid excuse and approval by the Mayor, be considered
for appointment. The motion was seconded by Coun-
cilmember Wuriu and unanimously carried. (5-0)
MOTION: Councilmember Baker moved Resolution No. 02-91 estab-
lishing the Community Promotions Committee be amended
to allow up to seven members on the Committee with
three members at large; and, all six applicants be
appointed to the Committee. The motion was seconded by
Mayor Sheetz and unanimously carried. (5-0)
E.
MOTION: Councilmember Wuriu moved the meeting adjourn to Closed
Session. The motion was seconded by Councilmember
Mullen and unanimously carried. (5-0)
Mayor Sheetz announced Council is adjourned to Closed Session in
accordance with Government Code § 54956.9(a), pending litigation;
Williams Brothers Markets. et al vs. City of Morro Bay. et al,
U.S. District Court Case No. CV-9:0496WMB (GHKX)
The meeting adjourned to Closed Session at 7:54 p.m. City Attor-
ney Judy Skousen arrived at 8:00 p.m. Council returned to Open
Session at 8:46 p.m.
F.
MOTION: Councilmember Baker moved the Closed Session item be
continued to Friday, March 8th at 5:30 p.m. in the City
Hall Conference Room. The motion was seconded by Coun-
cilmember Luna and unanimously carried. (5-0)
Recorded
GARY NAPPER
Deputy City
<& �W,9A�
City Of Morro B ay
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 - FEBRUARY 25, 1991
VETERANS MEMORIAL HALL - 6:00 P.M.
209 SURF ST., MORRO BAY, CA
ROLL CALL
INVOCATION
PLEDGE OF ALLEGIANCE
YOUTH ART MONTH PROCLAMATION TO MORRO BAY WOMENS CLUB
(CO-SPONSOR)
PUBLIC COMMENT PERIOD - Members of the audience wishing to address the
Council on City business matters (other than Public Hearings items under
Section D) may do so at this time. 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 (CITY COUNCIL)
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 11, 1991
A-2 APPROVAL OF EXPENDITURE REPORT - JANUARY 1991
A-3 STATEMENT OF INVESTMENTS - JANUARY 1991
A-4 SET DATE (21 MARCH 1991) AND AGENDA FOR JOINT COUNCIL MEETING WITH
RECREATION AND PARKS COMMISSION
A-5 ANNUAL REPORT ON MOBILEHOME RENT CONTROL PROGRAM
A-6 PROCLAMATION DECLARING MARCH 1991 AS "YOUTH ART MONTH"
A-7 PROCLAMATION DECLARING 13 MARCH 1991 AS "MORRO BAY ARBOR DAY"
A-8 SET DATE (06 MARCH 1991) FOR INTERVIEW OF APPLICANTS TO STREETS AND
TREES COMMITTEE AND COMMUNITY PROMOTIONS COMMITTEE
i 0
A-9 SET HEARING DATE (25 MARCH 1991) FOR APPEAL OF PLANNING COMMISSION
APPROVAL TO EXPANSION OF DEL MAR ELEMENTARY SCHOOL (CUP 02-91/CDP
58-90; SAN LUIS COASTAL UNIFIED SCHOOL DISTRICT, APPELLANT)
A-10 STATUS REPORT ON CITY WATER SUPPLY
B. UNFINISHED BUSINESS
B-1 ORDINANCE NO. 394 AMENDING MORRO BAY MUNICIPAL CODE SECTION
13.20.080(A)(B.1) AND (B.2) REGARDING VALIDITY OF HISTORICAL WATER
EQUIVALENCIES ON PROPERTIES (SECOND READING/ADOPTION)
B-2 ORDINANCE NO. 395 REQUIRING MANDATORY RETROFIT OF PLUMBING FIXTURES
WITH WATER SAVING DEVICES UPON SALE OR TRANSFER OF PROPERTY (SECOND
READING/ADOPTION)
C. NEW BUSINESS
C-1 RESOLUTION NO. 20-91 APPROVING CONVERSION TO CITY MASTER LEASE AGREE-
MENT ON LEASE SITE 53-56W (SYLVESTER'S LANDING, 502 EMBARCADERO)
C-2 RESOLUTION NO. 21-91 APPROVING TWENTY (20) YEAR EXTENSION UNDER OPTION
OF COUNTY LEASE AGREEMENT ON LEASE SITE 82-85W (DBA ROSE'S LANDING,
725 EMBARCADERO)
C-3 RESOLUTION NO. 22-91 APPROVING EXTENSION OF LEASE AGREEMENT FOR USE OF
2 CITY SLIPS BY CALIFORNIA DEPARTMENT OF FISH AND GAME
C-4 REQUEST BY FRIENDS OF THE ESTUARY FOR CITY FUNDING OF PRE -CONFERENCE
EXPENSES FOR THE STATE -OF -THE -BAY CONFERENCE IN OCTOBER 1991
C-5 CONSIDERATION OF CONCEPT TO INCREASE LOCAL TRANSIT OCCUPANCY TAX TO
FUND CITY PROJECT NEEDS
D. PUBLIC HEARINGS, REPORTS & APPEARANCES
D-1 CONTINUED HEARING ON ORDINANCE NO. 392 TO RE -ZONE PORTIONS OF POINT
MOTEL PROPERTY FROM OPEN SPACE TO SINGLE FAMILY DWELLING (ZOA 09-90;
FRANK DENIS, ET AL, APPLICANTS) INTRODUCTION/FIRST READING CONTINUE
TO 11 MARCH 1991
D-2 RESOLUTION NO. 23-91 REVISING PROCEDURES TO QUALIFY AS COMMERCIAL
FISHING VESSELS FOR USE OF CITY DOCKS/FACILITIES (TWO WAIVERS IN TEN
YEARS)
D-3 HEARING FOR APPEAL OF PLANNING COMMISSION APPROVAL FOR TIDELANDS PARK
PHASE 2 (CUP 35-89/CDP 62-89, HAGENBACK, DUNLAP, OGLE, LEONHARDT,
CARATAN, APPELLANTS) CONTINUE TO 11 MARCH 1991
D-4 ORDINANCE NO. 396 AMENDING GENERAL PLAN AND ZONING TEXTS/MAPS TO
MODIFY LAND USE DESIGNATIONS ON PORTIONS OF WILLIAMS BROTHERS PROPERTY
(MEASURE H, NOVEMBER 1990 BALLOT) INTRODUCTION/FIRST READING; AND
DRAFT RESOLUTION AMENDING LOCAL COASTAL PROGRAM
0
D-5 HEARING FOR 5-YEAR PERFORMANCE REVIEW OF CABLE TV FRANCHISEE, SONIC
CABLE TV OF SAN LUIS OBISPO
D-6 ORDINANCE NO. 393 AMENDING MUNICIPAL CODE SECTION 13.20 TO ALLOW
SPECIAL PRIORITY BUILDING ALLOCATIONS FOR ON -SITE CONVERSION PROJECTS
(INTRODUCTION/FIRST READING)
D-7 PRICING ALTERNATIVES TO CITY WATER RATE STRUCTURE
E. CLOSED SESSION
E-1 GOVERNMENT CODE SECTION 54956.9(A), PENDING LITIGATION; WILLIAMS
BROTHERS MARKETS, ET AL VS. CITY OF MORRO BAY, ET AL U.S. DISTRICT
COURT CASE NO. CV-9:0496WMB(GHKX)
E-2 GOVERNMENT CODE SECTION 54957; PERSONNEL
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.
6 6
MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING - FEBRUARY 25, 1991
VETERANS MEMORIAL HALL - 6:00 P.M.
Mayor Sheetz called the meeting to order at 6:00 p.m.
ROLL CALL
PRESENT: Rose Marie Sheetz Mayor
John Baker Councilmember
Ben Luna Councilmember
Susan Mullen Councilmember
Tom Wuriu Councilmember
ABSENT: None
STAFF: Gary Napper City Administrator
Judy Skousen City Attorney
Rick Algert Harbor Director
Louise Burt Finance Director
Ardith Davis City Clerk
William Farrel Community Dev. Dir.
Forrest Henderson Asst. City Admin.
Nick Nichols Public Works Dir.
Jim Berg, Calvary Lutheran Church, gave the invocation, and
Horace Strong led the Pledge of Allegiance.
PRESENTATIONS:
Mayor Sheetz presented a Proclamation declaring "Youth Art Month"
to the President of the Morro Bay Women's Club. The Women's Club
is co -sponsoring this activity.
PUBLIC COMMENT
1. Charles Palmer, 485 Estero, said at Council's last
meeting they agreed to join with the City of San Luis Obispo in
the development of a desal project and to subscribe to 1100 acre
feet of water per year with an overload capacity of 1800 acre
feet. He said this is too much water and the costs are too high.
2. Lynda Merrill, commented on a Telegram Tribune article
which discusses the cut -back of water from the State Water Pro-
ject to current users due to the drought.
3. Bill Newman, President of the Friends of the Estuary,
encouraged Council to approve the request for grant funds by the
Friends of the Estuary in Item C-4 on the agenda.
MINUTES - MORRO BAY*TY COUNCIL
REGULAR MEETING - FEBRUARY 25, 1991
PAGE 2
4. Ray Kaltenbach, 473 Sicily, said the Council should use
common sense to solve the water crisis and stop spending money to
have experts tell them what to do. He said to forget about State
Water; we are not going to get it.
5. Dale Patterson, Bay Pines Trailer Park, requested Coun-
cil ration him 8 units of water per space which is the amount
allowed for single family dwellings. Ms. Burt explained Mr.
Patterson is currently allowed to use an amount of water equal to
eight single family residences; or, 64 units of water for the 112
families in his Park.
DECLARATION OF FUTURE AGENDA ITEMS
None.
A. CONSENT CALENDAR
A-1 CITY COUNCIL MINUTES OF THE REGULAR MEETING OF FEBRUARY 11,
1991
Mr. Napper recommended Council approve the minutes as submitted.
A-2 APPROVAL OF EXPENDITURE REPORT - JANUARY 1991
Mr. Napper recommended Council approve the Expenditure Report.
A-3 STATEMENT OF INVESTMENTS - JANUARY 1991
Mr. Napper recommended Council accept the report for file.
A-4 SET DATE (21 MARCH 1991) AND AGENDA FOR JOINT COUNCIL MEET-
ING WITH RECREATION AND PARKS COMMISSION
Mr. Napper recommended Council set 21 March 1991 at 7PM in the
Morro Bay Library Community Room for the joint meeting, and
approve the agenda as submitted.
A-5 ANNUAL REPORT ON MOBILEHOME RENT CONTROL PROGRAM
Mr. Napper recommended Council accept the report as submitted.
A-6 PROCLAMATION DECLARING MARCH 1991 AS "YOUTH ART MONTH"
Mr. Napper recommended Council authorize the Mayor to sign the
Proclamation.
A-7
Mr. Napper recommended Council authorize the Mayor to sign the
Proclamation.
MINUTES - MORRO BAY *TY COUNCIL •
REGULAR MEETING - FEBRUARY 25, 1991
PAGE 3
Mr. Napper recommended Council set 06 March 1991 at 6PM in the
City Hall Conference Room to interview candidates.
A-9 SET HEARING DATE (25 MARCH 1991) FOR APPEAL OF PLANNING COM-
Mr. Napper recommended Council set 25 March 1991 as the hearing
date for the appeal.
A-10 STATUS REPORT ON CITY WATER SUPPLY
Mr. Napper indicated this report is for information only.
MOTION: Councilmember Luna moved for the approval of the Con-
sent Calendar. The motion was seconded by Councilmem-
ber wuriu and unanimously carried. (5-0)
B. UNFINISHED BUSINESS
B-1
NO. 394 AMENDING
Mr. Napper said this Ordinance amends the City's water allocation
procedures to limit the life of unused water equivalencies to a
10-year timeframe. If adopted this evening, the Ordinance will
go into effect on March 27th.
Mayor Sheetz stated she has received calls regarding this Ordi-
nance, and suggested it be amended to add a 3-year window of
opportunity for allowing historical use of water back to 1977.
This will give people who currently have projects on the building
waiting list to become familiar with the new requirements and
plan accordingly. After 1994, the proposed 10-year floating
timeframe will be in effect.
Councilmembers agreed with this concept, except Councilmember
Baker preferred to leave the date at 1977 without the 10-year
limit.
Mr. Napper stated staff will amend the Ordinance according to
Council instruction and return it for first reading at the next
meeting.
MINUTES - MORRO
REGULAR MEETING
PAGE 4
B-2
BAOITY COUNCIL
- FEBRUARY 25, 1991
Mr. Napper stated this Ordinance is scheduled for second and
final reading; if adopted this evening, it will go into effect
March 27th. The Ordinance requires properties to retrofit their
plumbing fixtures to the latest State standard upon sale or
transfer of the property.
Mayor Sheetz said she has amendments to this Ordinance also. She
believes those properties who have already retrofitted their
homes with 31 gallon toilets should not have to replace them with
1; gallon toilets. Homes demolished and rebuilt will have to be
constructed in accordance with the Municipal Code. Ms. Skousen
suggested a bond be posted guaranteeing the house will be demol-
ished or the old structure be retrofitted with required water
saving devices.
Mayor Sheetz requested the Ordinance also be amended to reiterate
existing language in a different section of the Municipal Code
regarding the building inspector's authority to waive require-
ments for 1; gallon toilets if the plumbing slope is not
adequate.
Councilmember Mullen requested a separate ordinance be prepared
for commercial retrofitting upon sale or transfer of businesses.
Councilmember Baker said the object of the Ordinance is to save
water; the 1; gallon requirement should remain.
Staff was directed to return with revisions to the ordinance gov-
erning demolition projects and plumbing exemption clauses.
C. NEW BUSINESS
C-1 RESOLUTION NO
20-91 APPROVING
MR-1149)Iz[r
Rick Algert stated the lease for Site 53-56W expires on February
28th, and staff has negotiated a new City lease for a 30-year
period. He noted the City will not receive a percentage of the
gross sales because actual sales are conducted from San Luis
Obispo; however, there is a provision for the City to receive a
percentage of the gross sales should the uses ever change on the
site from tug service.
MOTION: Councilmember Baker moved for adoption of Resolution
No. 20-91. The motion was seconded by Councilmember
Mullen and unanimously carried. (5-0)
MINUTES - MORRO BAY *TY COUNCIL
REGULAR MEETING - FEBRUARY 25, 1991
PAGE 5
C-2
Mr. Algert stated this County lease, with an option to extend for
20 years, expires on March 31st. The tenant has provided proof
of leasehold improvements in a sufficient amount to obligate the
City to extend the lease life. The tenant sees no advantage to
sign a new City lease because they do not wish to pay a percent-
age of sales from their restaurant business.
Mayor Sheetz asked if the parking lot to the south of this lease
site is public or lease site parking? Mr. Algert stated he
believes it belongs to the Lessee for their use, but will make
sure.
MOTION: Councilmember Wuriu moved for the adoption of Resolu-
tion No. 21-91. The motion was seconded by Councilmem-
ber Baker and unanimously carried. (5-0)
C-3
Mr. Algert stated the Department of Fish and Game has leased
berthing at the North T-Pier since 1966. Their current lease
expires on February 28th and they have requested a 4-year exten-
sion. Mr. Algert suggested approval of the request with an
increase in rental from $177/month to $200/month, and escalating
rents over the lease life.
MOTION: Councilmember Mullen moved for approval of Resolution
No. 22-91. The motion was seconded by Councilmember
Luna and unanimously carried. (5-0)
C-4
Mr. Napper stated the Friends of the Estuary are planning a
State -of -the -Bay Conference in Morro Bay in October 1991. The
Conference will emphasize inclusion of the Bay in the National
Estuary Program. They hope to attract 1000 participants and are
requesting the City aid in their $7,000 budget with a donation of
$500 to $1000. Mr. Napper noted there is $10,000 in a Back -Bay
Ecological Study and suggested Council allocate from this fund.
Councilmember Luna stated he is in favor of the allocation; how-
ever, would like to attached two conditions to the funds: 1) the
flyers for the Conference be printed on recycled paper; and 2) a
message printed on the flyers encouraging visitors to conserve
MINUTES - MORRO BAY*TY COUNCIL
REGULAR MEETING - FEBRUARY 25, 1991
PAGE 6
water due to the drought. Mr. Newman stated these are very good
ideas, and they accept the conditions.
MOTION: Councilmember Wuriu moved $1,000 be allocated to the
Friends of the Estuary for their State -of -the -Bay Con-
ference on condition they print their flyers on recy-
cled paper and print a message regarding water conser-
vation. The motion was seconded by Councilmember Baker
and unanimously carried. (5-0)
Mr. Napper requested the City of Morro Bay be listed as a con-
tributor to the event. Mr. Newman said contributors will be
listed.
C-5 CONSIDERATION OF CONCEPT TO INCREASE LOCAL TRANSIT
Mr. Napper stated Council requested an item be scheduled at this
meeting to discuss increasing Transient Occupancy Tax (TOT) as a
possible funding source for water projects. He noted Morro Bay's
current tax is 8%, the highest in the County. He said the Mayors
of the cities in the County and the Chairman of the Board of
Supervisors are discussing raising rates to a uniform level,
thereby eliminating complaints from the motel industry that
tourists will go where the bed tax is less. If the City and
County of San Luis Obispo and Pismo Beach TOT is the same as
Morro Bay's, Morro Bay will not suffer from competition from
these neighbors due to an increase in tax. A 1% increase in
Morro Bay will raise approximately $100,000 to $120,000 a year.
Mr. Napper stated an increase in TOT must be presented to the
voters for approval, and that cannot be done until November 1991
election. He requested Council give direction to the Mayor so
she may report Morro Bay's intentions at the next Managers/Mayors
meeting in March.
Councilmember Baker said he is against this unless the other
agencies raise their taxes equal to ours. He noted Pismo Beach
recently lost a ballot measure to increase their tax rate to 9%.
Mayor Sheetz said at a time when the City is asking its citizens
to pay increased rates for water projects, it is appropriate for
the tourist to also bear some of the costs.
Councilmember Luna said he supports the increase; the average
rate he experiences at motels is a 10% TOT. He said it is a good
idea to come up with a regional approach, and 10% is not to high.
Mayor Sheetz said the County is not in favor of a 10% tax because
their's is currently at 6% and they believe a 4% tax increase is
too much.
MINUTES - MORRO BAOCITY COUNCIL •
REGULAR MEETING - FEBRUARY 25, 1991
PAGE 7
Councilmember Wuriu agrees the tourist should pay some of the
costs; however, he does not believe the City of Morro Bay should
be a leader in this, but watch and see what other entities do.
Councilmember Mullen said Morro Bay does not have less to offer
in the way of tourist attractions than other areas; she favors a
9% TOT and agrees the County and City of San Luis Obispo should
set their tax before Morro Bay does.
MOTION: Councilmember Mullen moved Mayor Sheetz advise the
Mayors/Managers Group that Morro Bay favors a 9% TOT;
and, request their cooperation on a regional basis.
The motion was seconded by Councilmember Luna and car-
ried with Councilmembers Baker and Wuriu voting no.
(3-2)
D. PUBLIC HEARINGS, REPORTS & APPEARANCES
D-1 CONTINUED HEARING ON ORDINANCE NO. 392 TO RE -ZONE PORTIONS
OF POINT MOTEL PROPERTY FROM OPEN SPACE TO SINGLE FAMILY
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Mr. Napper stated the applicants did not submit their metes and
bounds description in time for this Agenda.
MOTION: Councilmember Mullen moved this item be continued to 11
March 1991. The motion was seconded by Councilmember
Wuriu and unanimously carried. (5-0)
D-2
Mr. Algert stated Council requested the Harbor Advisory Board
review the waiver requirements for commercial fishing qualifica-
tions due to an appeal from two commercial fishermen who have
been unable to meet the annual criteria to qualify for a City
slip. Current regulations allow one waiver in every 5-year
period. After discussing this matter, the Harbor Advisory Board
recommends the regulations be amended to allow two waivers in a
10-year period. A Resolution reflecting that recommendation has
been drafted for Council consideration.
Mayor Sheetz opened the hearing to the public; there were no com-
ments and the hearing was closed.
Councilmember Luna asked what prevents someone from convoluting
the language and attempting to gain more than two waivers in a
10-year period? This was attempted when Mr. McDonald was trying
to get a waiver in a "different" 5-year period. Mr. Algert
stated he could make the Resolution more technical; however, he
MINUTES - MORRO BA�ITY COUNCIL •
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PAGE 8
believes the general statement is administratively clear. The
first time a person requests a waiver is the beginning of the 10-
year period.
Councilmember Mullen was concerned the Council did not adequately
direct the Harbor Advisory Board on this item. She expected rec-
ommendations regarding a medical waiver. Councilmember Mullen
stated our regulations for qualifying as a commercial fisherman
are very low if the City wants a serious working harbor. The
rule has already been reworked many times in the past. She said
she will support the recommendation, however, wants her comments
on record. Councilmember Luna essentially agreed with Councilmem-
ber Mullen, although he suggested it be sent back for one waiver
every 5 years plus a medical clause exemption.
Mayor Sheetz asked if there are commercial fishermen waiting for
a slip? Mr. Algert said there are people on the waiting list,
and other waivers will be requested in the future. Councilmember
Mullen remarked for expediency, this revision is OK; 2 waivers in
10 years can suffice for medical purposes.
MOTION: Councilmember Wuriu moved for the adoption of Resolu-
tion No. 23-91. The motion was seconded by Councilmem-
ber Baker and unanimously carried. (5-0)
D-3 HEARING FOR APPEAL OF
Mr. Napper commented the appellants have requested a continuance
in writing.
MOTION: Councilmember Baker moved this item be continued to the
March llth meeting. The motion was seconded by Coun-
cilmember Luna and unanimously carried. (5-0)
D-4 ORDINANCE NO. 396 AMENDI
I
Mr. Farrel said because of an initiative measure adopted by the
electorate on November 6, 1990, it is necessary to amend two
policies in the City's General Plan and Local Coastal Land Use
Plan and maps to show a reduced area available for commercial use
on the Williams Brothers property. Mr. Farrel reviewed his staff
report outlining the text amendments, site selection, and inter-
pretations of the designation for the area outside the 13 acres
rezoned, and the meaning of "gross" acreage in relation to the
road system requirements in the project. Mr. Farrel stated
although Measure H does not specifically attach a zoning to the
MINUTES - MORRO BA�ITY COUNCIL
REGULAR MEETING - FEBRUARY 25, 1991
PAGE 9
area outside the "13 gross acres" rezoned district commercial, it
is staff's opinion the intention was this area be rezoned
"Agriculture". The siting recommendation for the project is
adjacent to Highway 1 due the language of the initiative rezoning
the commercial area "generally located adjacent to Highway 1 and
Morro Bay Blvd."
Councilmember Wuriu stated representatives of Williams Brothers
have been objecting to the procedures the City is following on
this project. He asked if they do not take part in the process
in the normal way, does that flaw what the City is doing. Mr.
Farrel stated no, the law requires the affected property owners
be given proper notice; it does not say they have to participate.
Mayor Sheetz opened the hearing to the public.
Bill Walter of Miller & Walter, attorney firm representing
Williams Brothers, presented correspondence to Council regarding
the issue before them. He stated they did not receive the staff
report until late Friday afternoon, so are unable to deliver
their letter to Council sooner. He said their submittal reiter-
ates their comments in their earlier letter to the Planning Com-
mission which he understands Council has received. Mr. Walter
reviewed his letter to Council this evening stating they strongly
object to Council processing the amendments because of pending
litigation and deficiencies in Measure H. He also objected to
Councilmembers Luna and Mullen participating in the process due
to pending litigation. He said the City did not meet the 10-day
notice requirement because the entire information on this subject
was not available 10 days before the hearing.
Marshall Ochylski, a principal of Landplans and also representing
Williams Brothers, reviewed the letter he co-authored with Bruce
Elster of Mid -State Engineers to the Planning Commission dated
February 19, 1991. He said the present shopping center plan is
the smallest viable site for the center. He said Measure H only
addresses rezoning of a portion of the property; there is no men-
tion regarding the remainder of the property. The proposed down -
zoning to "Agriculture" is economically unviable and is an ille-
gal taking of land. He said it cannot be assumed there will be a
voluntary contribution of infrastructure improvements under this
plan.
Bruce Elster, Mid -State Engineers, also presented Council with a
letter which he reviewed. He requested Council change the date
of the letter from January 25, 1991 to February 25, 1991. Mr.
Elster stated Mr. Farrel contacted him to ask if he would be
interested in conducting the studies required for processing Mea-
sure H through the system. Mr. Elster declined to do so stating
his clients should not suffer the expense to do the City's job
for them. He has not received any request to review any of the
material before Council this evening. He stated the recommended
MINUTES - MORRO B*CITY COUNCIL 46
REGULAR MEETING - FEBRUARY 25, 1991
PAGE 10
siting plan before Council this evening contains 16; acres so it
appears there is more developable area than there actually is.
The land required for Morro Bay Blvd. extension and the trans-
verse street by CalTrans could consume 3.5 acres, thereby further
reducing the 13 gross acres. Mr. Elster reviewed grade differen-
tials in the property and necessary grading. He said staff
pointed out there may be only 8 net acres available to build
upon, which is not economically viable.
Councilmember Mullen said Williams Brothers stated after the
election they would submit a plan for a reduced shopping center.
Mr. Elster stated it was submitted in December and will be
reviewed by the Planning Commission next Monday night. Coun-
cilmember Mullen asked what is the size of the center in the new
plan? Mayor Sheetz stated approximately 14 acres of shopping
center, 30.2 gross acres.
Mayor Sheetz asked if there was anything in the Williams Brothers
presentation which would affect what Council is trying to do this
evening? Mr. Farrel said Phase I of the project originally sited
the shopping center at the rear of the property. Council is
looking at a site location this evening closer to the highway
because of Measure H's inference the project should be "adjacent"
to Highway 1.
Councilmember Baker asked Mr. Elster if they are allowed the 14
acres will they be able to put the project at this location? Mr.
Elster responded this location requires increased parking,
increased landscaping, relocating the creek, etc.
Councilmember Wuriu asked if Mr. Elster believes his new project
qualifies under Measure H? Mr. Elster said they tried to reduce
the project and maintain its economic viability.
Mayor Sheetz asked if Williams Brothers was given additional
acreage for right-of-ways and streets, could they build a center
within the proposed site location? Mr. Elster said if he has 13
acres for just the shopping center, he could make it work.
Marshall Ochylski stated an assumption has been made by staff the
13 acres has to be a single parcel. Dividing the 13 acres into
different locations should be looked at.
Ray Kaltenbach asked why Council is discussing this item and
wasting staff time when the lawsuit has not been settled? Where
is the water for the project coming from? Council should declare
a building moratorium.
Mayor Sheetz closed the hearing to the public.
Mayor Sheetz asked Ms. Skousen if she wished to respond to the
remarks by Williams Brothers on the legality of considering this
MINUTES - MORRO BA#ITY COUNCIL
REGULAR MEETING - FEBRUARY 25, 1991
PAGE 11
issue. Ms. Skousen stated she has not been involved in sending
out notices for this project, but is sure Mr. Farrel complied
with the legal public notice requirement. She said she disagrees
Council should suspend action on this item due to the pending
litigation. The City must continue to process the initiative
within a reasonable amount of time. Until a Court issues a rul-
ing on the allegations, nothing changes the Council's duty to
continue processing the initiative.
Councilmember Baker asked if it is appropriate for Council to act
given the proper notice for the 6-week public review period? Ms.
Skousen stated it is appropriate to introduce the Ordinance for
first reading and allow the public to know what Council intends
to do. The Ordinance gives the public the wording to review and
make comments on.
Mayor Sheetz asked if the "13 gross acres" in the initiative was
intended for development or to include public rights -of -ways?
Mr. Farrel stated Measure B, which rezoned this property in 1986,
used the phrase "30 net acres". "Net" indicates development of
30 acres not including roads and easements. However, he believes
the 13 "gross" acres is intended to include the roads; staff rec-
ommends an exception for the CalTrans dedicated portions.
Councilmember Wuriu asked if this determination is consistent
with previous interpretations? Mr. Farrel stated it is a judg-
ment call; there is no binding rule about it.
Councilmember Mullen asked if the recommended site area is the
flatter portion of the property that is available? Mr. Farrel
said it is and it isn't; there is an area on the west side of the
creek area that is flatter.
Councilmember Luna commented on Williams Brothers' representa-
tives statements they were not notified of this meeting or given
enough time to comment on the material. He stated the Sun -
Bulletin prints the Tentative Agenda before the Council meeting.
Also, he believes Mr. Elster was at the Planning Commission meet-
ing and knew what their recommendations to Council were going to
be. He said the concerns they brought up will be addressed when
they come back with a project proposal that complies with Measure
H. Even though he faces a lawsuit from Williams Brothers, Coun-
cilmember Luna is still willing to listen regarding a smaller
project and willing to work with the Williams Brothers people on
a small project that complies with Measure H.
Councilmember Wuriu stated it is obvious there are a number of
factors involved and very strong differences of opinion, but
believes the Council's job is to make sure the City gets a shop-
ping center. People want one despite differences as to how big
it might be.
MINUTES - MORRO BA0ITY COUNCIL •
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PAGE 12
Councilmember Baker agreed with Councilmember Wuriu. He sug-
gested some method be worked out to accommodate both sides. If
Williams Brothers can reduce their center to 14.1 acres, it seems
both sides should be able to work together.
Ms. Skousen commented the property owners have an application
pending before the City and they have the ability to amend or
change it, but the first step has to come from them. They com-
plain the staff proposal is unworkable, but when they were
invited to help draw the map, they refused.
Councilmember Mullen stated it is the Council's duty to carry out
the vote of the people, and the people voted for Measure H. The
developer has known since Measure H passed it would be moving
forward, and they refused to participate in the process. She is
in favor of leaving the CalTrans freeway off/on ramp out of the
13 gross acres, but including internal streets. She believes it
was the intent of Measure H to revert the balance of the property
to prime agricultural land.
MOTION: Councilmember Mullen moved the 13 gross acres include
internal streets but not the estimated 2.3 acres
required by CalTrans; and, it is the intention of Mea-
sure H the remainder of the property return to prime
agriculture property (Alternate No. 1 as amended by the
Planning Commission). The motion was seconded by Mayor
Sheetz.
Mayor Sheetz commented on the developer's chosen option to file a
lawsuit against the people's measure rather than work with the
City to plan the shopping center.
Councilmember Baker stated he believes in property rights and
free enterprise.
The motion carried on the following vote:
AYES: Luna, Mullen, Sheetz
NOES: Baker, Wuriu
MOTION: Councilmember Mullen moved Ordinance No. 396 be read by
title and number only. The motion was seconded by
Councilmember Luna and unanimously carried. (5-0)
Mr. Napper read Ordinance No. 396 by title and number only.
MOTION: Councilmember Mullen moved for approval of the intro-
duction and first reading of Ordinance No. 396. The
motion was seconded by Councilmember Luna and carried
on the following vote:
MINUTES - MORRO BA�ITY COUNCIL •
REGULAR MEETING - FEBRUARY 25, 1991
PAGE 13
AYES: Luna, Mullen, Sheetz
NOES: Baker, Wuriu
MOTION: Councilmember Luna moved this item be continued to
March 25th. The motion was seconded by Councilmember
Mullen and unanimously carried. (5-0)
Council recessed from 8:31 p.m. to 8:40 p.m.
D-5 HEARING FOR 5-YEAR PERFORMANCE REVIEW OF CABLE TV
FRANCHISEE, SONIC CABLE TV OF SAN LUIS OBISPO
Forrest Henderson gave a detailed report on the history of the
cable TV franchise and the Cable TV Franchise and Services
Board's review of the franchise and public perception of Sonic's
service.
One of the major dissatisfactions is Sonic's downgrading of basic
service by deleting 15 channels; those 15 channels are now avail-
able under "expanded basic cable" for an increased rate. The
CATV Board believes this is a violation of the Franchise. Sonic
subscribers are paying more for less service. Their Franchise
Agreement requires them to add three additional channels in Basic
Service in each five year period during the term of the
franchise.
Mr. Henderson stated the CATV identified four areas in need of
improvement: 1) Basic services be returned to pre -June 1990 lev-
els; 2) Sonic recognize Morro Bay as a unique franchising author-
ity separate from Sonic's larger service area; 3) Specific,
timely, detailed financial statements with verification; and 4)
improved public access service.
Mr. Henderson also noted receipt of CATV Board Chairman Tom
Cahill's resignation; he has been called to active military duty.
Mayor Sheetz opened the hearing to the public for comments.
Ray Kaltenbach complained about the programs that are blacked out
every once in a while.
Roger Ewing agreed with Mr. Kaltenbach on the Syndexing problem;
he said Sonic has little concern for subscribers and citizens.
There has been a 12% increase in costs, and service is down 50%.
Ernie Miller, 955 Napa, stated he is not happy with Sonic; he
would like CNN returned to Channel 10 and the Eternal Word Net-
work added to programming.
Ed Ewing, Pacific Street, complained about not getting a specific
time a repairman will arrive from Sonic when service is
MINUTES - MORRO BAOITY COUNCIL •
REGULAR MEETING - FEBRUARY 25, 1991
PAGE 14
requested. They should at least be able to estimate within a 2-
hour timeperiod.
Charles Palmer, Estero Avenue, concurred with Mr. Ewing's com-
plaint on poor service response.
Virginia Shepky complained about the Syndex blacking out of pro-
grams. She also wanted a lifeline service level for seniors.
Steve Burrell, general manager of Sonic Cable TV, responded to
the complaints. He said Syndex is a rule by the Federal Communi-
cations Commission which allows local broadcast stations to buy
rights to certain programming and black out that same programming
from stations outside the area, even if a specific program is not
on the local channel at the same time or day. If the local sta-
tions have purchased these rights, Sonic must black out the pro-
grams at their request.
Councilmember Baker asked if the local stations are required to
air the programming they are blacking out? Mr. Burrell stated
no, the station has no obligation to show the program if it buys
rights to it. Complaints regarding Syndexing should be made to
the station responsible; Sonic prints the name of the station
requesting the black out on the screen.
Councilmember Luna asked if negotiations with the stations could
perhaps work something out? Mr. Burrell stated he has an agree-
ment with one station they will not black out more than a certain
number of hours; however, Sonic has no control of the Syndex
programming.
Mr. Burrell stated with regarding to service response time, Sonic
gives customers a 4-hour window in which they will arrive. Ser-
vice representatives do not usually know how long it will take
them at each service call, so this is the best they can do as far
as setting a time.
Mayor Sheetz asked if Sonic plans to bring the channel service
level up to its original standard? Mr. Burrell stated he is
working with the City and will try to find an acceptable solution
by the suggested May 1991 deadline.
Ray Kaltenbach asked why local stations want to black out others?
Mr. Burrell said it has to do with advertising; if an individual
only sees programs on local channels, he will see local adver-
tisements rather than Los Angeles advertising. Councilmember
Mullen said the appropriate place to complain is the TV stations.
Doris Murray, a member of the TV Franchise Board, read from a
letter from Congressman Thomas concerning Syndexing. The FCC
adopted the rule in May 1988, but did not schedule implementation
until January 1990 in order to give cable companies 18 months to
MINUTES - MORRO BA�ITY COUNCIL •
REGULAR MEETING - FEBRUARY 25, 1991
PAGE 15
arrange alternative programming. The City contracts with Sonic
for programming, and Syndex is not programming.
Mayor Sheetz closed the hearing to the public.
Councilmember Luna asked if it is possible for Sonic to air
alternative programming while Syndex is blacking out the sta-
tions? Mr. Burrell stated yes, they are looking into it.
Councilmember Mullen stated she would like to see Channel 6 used
for airing Council meetings and "people helping people" shows.
Mr. Burrell stated he gave a bid to the City approximately 2
years ago of the costs to install a fixed camera in the Veterans
Hall to televise Council proceedings. They have not heard from
the City regarding that bid. At the last Franchise meeting, the
subject was again raised and Sonic will be submitting cost infor-
mation to the City.
Councilmember Mullen asked if she could expect a return of indi-
viduals producing their own programming on Channel 6? Mr.
Burrell stated he believes that is part of the Ordinance, and
they will be working on that.
Councilmember Wuriu asked when Sonic will be programming C-SPAN?
Mr. Burrell stated he is not sure; they are conducting a survey
and will track interest. There is no date certain.
Councilmember Wuriu stated there are considerable differences of
opinion as to basic tier services. If an agreement cannot be
worked out, is there a final arbitrator or does Sonic make the
final decision? Mr. Burrell stated he hopes he can come to an
agreement with the City. The cost of service is going up; one
reason they tiered the service is to give subscribers' options.
There is going to be a considerable increase in sports program-
ming and those costs will have to be passed on; one of the
options may be going to a sports tier and those who want the
sports channels can pay for it.
MOTION: Councilmember Baker moved Sonic Cable TV be ordered to
be in compliance with the City's CATV Ordinance by 27
May 1991 pursuant to noted issues of basic services,
financial statements, and public access service. The
motion was seconded by Councilmember Luna and unani-
mously carried. (5-0)
D-6 ORDINANCE NO. 393 AMENDING MUNICIPAL CODE SECTION 13.20 TO
ALLOW SPECIAL PRIORITY BUILDING ALLOCATIONS FOR ON -SITE
CONVERSION PROJECTS (INTRODUCTION/FIRST READING)
Don Funk stated this item is returned at Council request to con-
sider allowing special allocations for building during years when
there is a moratorium on new water hook-ups. It allows for spe-
MINUTES - MORRO BAITY COUNCIL •
REGULAR MEETING - FEBRUARY 25, 1991
PAGE 16
cial priority building for conversion projects on sites which
have existing water. The Alta Morro Motel has requested such a
conversion privilege. They propose to demolish the 18-unit motel
and build eight condominium units using the water currently
allowed on site according to Water Equivalency Table A.
Councilmember Luna stated because the water situation is so crit-
ical, he has concerns about this Ordinance and basing it on the
Water Equivalency Table. If a site has 7 water equivalencies
available to it, but currently uses only 3 or 4 units, a new
development could potentially use more water than has been used
in the past and thus create a greater demand on the municipal
water supply. Mr. Funk said this is possible; Council could tie
the allocation to the actual water use as opposed to the Table;
however, it would have to be carefully monitored so a property
owner does not establish an artificially higher use of water.
Councilmember Luna said this should be a temporary Ordinance to
allow certain development to continue under the current drought.
If someone attempts to increase their water use, City records
would indicate earlier use on the site and be able to prevent
abuses.
Councilmember Baker stated he had the same concerns when this
matter was first presented to Council.
Councilmember Luna referred to page 2, item A regarding residen-
tial building permits; he wants to make sure it is clear the use
is for redevelopment, not new development. Ms. Skousen stated
the language is clear as it is for a use already on -site.
Councilmember Luna said page 3, item F gives too much authority
to the Community Development Department; "after review by the
Planning Commission and City Council" should be added before
building permits are issued. He believes the City cannot be cau-
tious enough in allocating water during this current situation.
MOTION: Councilmember Luna moved Ordinance No. 393 be amended
in Section D to require any conversion will not create
a greater demand on the municipal water system or
require additional water equivalencies than the previ-
ous use on the site, regardless of the Table A equiva-
lency allocation; issuance of conversions require
review by the Planning Commission and City Council; and
strike the word "residential" in Sections A and C. The
motion was seconded by Councilmember Wuriu.
There was discussion regarding the relationship between this
Ordinance and the one governing historical water use on -site.
Council believes this is a special program and can be treated as
such.
MINUTES - MORRO BAITY COUNCIL •
REGULAR MEETING - FEBRUARY 25, 1991
PAGE 17
The motion carried with Councilmember Baker voting no.
(4-1)
Councilmember Baker said Council is splitting hairs on actual
usage and allocations. He has great faith in staff and believes
they can administer the Ordinance without Council overview.
Mayor Sheetz opened the hearing to the public.
Charles Palmer, Estero Avenue, questioned the validity of the
water equivalency program; there are probably more equivalencies
than there is water supply. He said everyone in town who owns a
lot has a right to water, and it should be Council's aim to pro-
vide that water.
Len Carpenter, 938 Pacific, said this is an appropriate amendment
to the Code because it allows flexibility to property owners to
utilize their property.
Robert Arnet, representing the Alta Morro development, said he is
working on several projects with the City and they are based on
the Water Equivalency Table rather than the historical water use.
He pointed out the Alta Morro Motel is in a poor location, has a
low annual occupancy rate, and the water use is quite low as
well. When the property was recently purchased, all plumbing
fixtures were changed and there was a marked difference in water
consumption during that period. He said the proposed Ordinance
penalizes those who have been conserving; Table A should be the
standard. He noted if the developers choose to wait in line for
water, they could build 22 residential units rather than the 14
proposed.
Jane Smith, 1286 Hillcrest, encouraged Council to allow staff to
make the administrative decisions in view of the material Council
is required to review prior to their meetings. Delegation in
this instance is appropriate.
Ed McCracken said Council could be increasing the demand on the
water supply by using Table A. If an individual has a home he
only uses 3 times a week, and the property is sold and the build-
ing converted to a larger structure which houses a full-time fam-
ily, the increase to the water system could be significant.
Mayor Sheetz closed the hearing to the public.
Councilmember Luna said it isn't that he distrusts staff's judg-
ment; this is a time when Council has to split hairs given the
water situation. The additional review will provide an extra
element of assurance the demand on the municipal water supply is
not increasing.
MINUTES - MORRO BASCITY COUNCIL •
REGULAR MEETING - FEBRUARY 25, 1991
PAGE 18
Mayor Sheetz commented on the public's perception of Council's
actions; she is asked every day why the City continues to allow
building.
MOTION: Councilmember Luna moved Ordinance No. 393 be read by
title and number only. The motion was seconded by
Councilmember Wuriu and unanimously carried. (5-0)
Mr. Napper read Ordinance No. 393 by title and number only.
MOTION: Councilmember Wuriu moved for approval of the introduc-
tion and first reading of Ordinance No. 393. The
motion was seconded by Councilmember Luna and unani-
mously carried. (5-0)
D-7 PRICING ALTERNATIVES TO CITY WATER RATE STRUCTURE
Louise Burt reviewed the report which surveys the City's water
rate methodology and reviewed the current rate system. She dis-
played several graphs which detailed the City's current structure
and how it can be improved. She said the "increasing block
method" is recommended when water is in short supply; it provides
an incentive for water conservation in charging increased per
unit fees for each additional unit of water used. Morro Bay cur-
rently uses this method.
Ms. Burt stated the current basic meter charge has the effect of
charging more per unit for water for a small amount of users that
actually use less than others. This is illustrated by correction
charts proposed by Councilmember Mullen. Staff's recommendation
regarding rate increases is to spread the impact City-wide rather
than singling out one type of user to bear the full brunt of the
increase.
Councilmember Luna asked what the staff recommendation is to
increase rates? Ms. Burt stated the total costs of the project
need to be determined before staff can establish what the
increase will have to be. Mr. Nichols said he is not going to
know costs until at least March 25th. He said the issue this
evening is not how much, but how Council wishes the rate struc-
ture to be established or revised.
Councilmember Mullen stated Council needs to address the current
inequity in the structure where the basic meter charge penalizes
those who conserve the most.
Mayor Sheetz asked if San Luis Obispo tries to access the Gover-
nor's drought relief program, does it preclude the Morro Bay from
applying? Mr. Napper stated the City needs to apply separately
because we have our own loan to pay off.
MINUTES - MORRO BAOITY COUNCIL
REGULAR MEETING - FEBRUARY 25, 1991
PAGE 19
Mayor Sheetz suggested the item be continued to March 25th when
project costs will be known. Mr. Napper asked Council to address
Councilmember Mullen's comments an inequity exists at the low end
of the water user schedule. Ms. Burt pointed out this includes
the people using 0 to 10 units of water per month. She suggested
Council eliminate the $4 per month meter charge and establish a
basic charge for any hookup to the system not using any water.
Councilmember Mullen stated Council should adopt a volume based
water rate system; if one unit of water is used, that is all an
individual has to pay for. If an additional unit of water is
used, that individual has to pay more for the second unit than he
did for the first, and so on. A service charge can be estab-
lished for hook-up to the system without water use.
Councilmember Luna was in favor of this proposal. Ms. Burt
pointed out it gives an incentive for people to conserve below 8
units of water per month.
Mayor Sheetz opened the hearing to the public for comments.
Ken Cess, Director of Seashell Communities, stated his cost for
water per gallon is higher than anyone's. He pointed out his
facility houses the elderly and frail and he cannot save addi-
tional water and cannot charge the individual residents what the
City is charging him for water. He said his water bill last year
was $40,000. The new rates could wipe him out; at $30,000 a
month for desal water, the facility will have to close. He
requested Council direct staff to adjust the water rates for his
facility comparable to single family residences. People live
there; it is their home.
Rory Livingston, San Luis Coastal Unified School District,
objected to the rates based on the size of meter; the City does
not look at what goes on behind the meter. There are 1800 people
on the high school campus. If they cut back 40% to 50% they will
still be a major user. The City's current program does not deal
with equitability, and needs to look at what the water is being
used for. Also, he cannot pass his costs on to anyone; he will
have to start cutting back on education. He suggested splitting
the schools into family units and assign water use on that basis.
Roger Ewing said the City is raising water rates after conserva-
tion to make up lost revenue. He agrees with Councilmember
Mullen's suggestion to base rates on usage. He suggested recla-
mation as a viable process for schools and nursing homes.
Charles Palmer gave several suggestions for conservation in large
facilities.
Ray Kaltenbach said he sympathizes with resthomes.
MINUTES - MORRO BAWITY COUNCIL
REGULAR MEETING - FEBRUARY 25, 1991
PAGE 20
Bill Olsen, 951 Pacific, said residents do not pay that much for
water. If you take away the meter charge and sewer charge, citi-
zens pay less than $6 per month for water, which is ridiculous.
Even if water costs $50 per month, it is something we need; and,
it is the obligation of government to provide for that need.
Mayor Sheetz closed the hearing to the public.
Councilmember Luna said there were valid comments made this
evening.
MOTION: Councilmember Luna moved staff go forward with Coun-
cilmember Mullen's proposal, and try to accommodate the
concerns brought up this evening. The motion was sec-
onded by Councilmember Baker and unanimously carried.
(5-0)
E. CLOSED SESSION
E-1
E-2
GOVERNMENT CODE SECTION 54957; PERSONNEL
MOTION: Councilmember Baker moved the meeting adjourn to Closed
Session. The motion was seconded by Councilmember
Wuriu and unanimously carried. (5-0)
Mayor Sheetz read the Closed Session announcement as listed
above.
The meeting adjourned to Closed Session at 11:10 p.m. and
returned to regular session at 11:41 p.m.
F. ADJOURNMENT
MOTION: Councilmember Baker moved the meeting be adjourned.
The motion was seconded by Councilmember Mullen and
unanimously carried. (5-0)
The meeting adjourned at 11:41 p.m.
Recorded by:
aC�WAaea-�
ARDITH DAVIS
City Clerk
6 0
qql
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 - FEBRUARY 11, 1991
VETERANS MEMORIAL HALL -.6:00 P.M.
209 SURF ST., MORRO BAY, CA
ROLL CALL
INVOCATION
PLEDGE OF ALLEGIANCE
1. AWARDS OF APPRECIATION TO JIM CAMPBELL, TOM KELLERMAN, AND DAVE LANDRY
FOR HEROISM IN SAVING LIVES FROM A CAPSIZED BOAT
2. AWARDS OF APPRECIATION TO MEMBERS OF THE PRE-SCHOOL CHILDCARE TASK
FORCE
PUBLIC COMMENT PERIOD - Members of the audience wishing to address the
Council on City business matters (other than Public Hearings items under
Section D) may do so at this time. 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 (CITY COUNCIL)
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 FROM THE REGULAR MEETING OF JANUARY 28, 1991 AND
THE SPECIAL JOINT MEETING WITH THE CITY OF SAN LUIS OBISPO ON JANUARY
31, 1991
A-2 NOTICE OF COMPLETION ON PROJECT PW 89-09, SIDEWALK REPLACEMENT PROJECT
A-3 NOTICE OF COMPLETION ON PROJECT PW 90-01, HARBOR PATROL DOCK
REPLACEMENT
A-4 STATUS REPORT ON CITY WATER SUPPLY
A-5 RESOLUTION 15-91 AUTHORIZING INSTALLATION OF STOP SIGN ON PECHO STREET
AT KINGS AVENUE
A-6 ACCEPTANCE OF RIGHT-OF-WAY DEDICATION FOR PUBLIC USE ON PARCEL MAP
MBAL 89-428 (FRONTING BT & DUCK DRIVE-IN, MAIN STREET) PULLED
1
0 •
A-7 APPROVAL OF EXPANDED OPERATION HOURS FOR HORSE-DRAWN CARRIAGE IN
EMBARCADERO AREA (CLYDESDALE CARRIAGE COMPANY; 10AM-11PM, FRIDAY-
SUNDAY AND HOLIDAYS)
B. UNFINISHED BUSINESS
B-1 ORDINANCE NO. 391 ESTABLISHING A 5% BID PREFERENCE FOR LOCAL VENDORS
ON CITY SUPPLIES AND EQUIPMENT (SECOND READING/ADOPTION)
B-2 RESOLUTION NO. 14-91 ESTABLISHING CITY POLICIES AND PROCEDURES
CONCERNING CHILDCARE SERVICES IN MORRO BAY
B-3 RESOLUTION NO 19-91 AUTHORIZING THE PROVISION OF PARAMEDIC EMERGENCY
MEDICAL SERVICES BY TRAINED CITY PERSONNEL AND AMENDMENT TO CITY
CLASSIFICATION PLAN TO ADD PARAMEDIC QUALIFICATIONS FOR SWORN FIRE-
FIGHTING PERSONNEL
B-4 ACCEPTANCE OF DONATION BY ROTARY CLUB OF MORRO BAY OF TREES FOR PUBLIC
RIGHTS -OF -WAY AND ESTABLISHMENT OF TIMETABLE FOR PROJECT
IMPLEMENTATION
C. NEW BUSINESS
C-1 CONVERSION TO CITY MASTER LEASE AGREEMENT ON LEASE SITE 53-56W
(SYLVESTER'S LANDING, 502 EMBARCADERO) PULLED
C-2 RESOLUTION NO. 16-91 APPROVING SUBLEASE ON A PORTION OF LEASE SITE
91-92W (899 EMBARCADERO; ANDERSON, LESSEE) TO KAY CONFER (DBA CLOTHES
& CO.)
C-3 REQUEST FOR REPORT ON PROSPECTIVE FUNDING SOURCES FOR SUPPLEMENTAL
WATER PROJECTS
D. PUBLIC HEARINGS. REPORTS & APPEARANCES
D-1 HEARING FOR PROPERTY OWNER APPEALS ON PARCEL CHARGES FOR 1990 CITY
WEED ABATEMENT PROGRAM
D-2 HEARING FOR APPEAL OF PLANNING COMMISSION APPROVAL FOR TIDELANDS PARK
PHASE 2 (CUP 35-89/CDP 62-89, HAGENBACK, DUNLAP, OGLE, LEONHARDT,
CARAVAN, APPELLANTS) CONTINUE TO 25 FEBRUARY 1991
D-3 RESOLUTION NO. 17-91 AMENDING LOCAL COASTAL PROGRAM AND GENERAL PLAN
SETTING REQUIREMENTS FOR SOILS AND GEOLOGY REPORTS ON SLOPE AREAS
PLANNED FOR DEVELOPMENT, DELETING EXISTING PROHIBITION ON GRADING OF
SLOPES OVER 20%, AND CLARIFYING WHEN GRADING MAY BE PERFORMED (LCP/GPA
03-90)
D-4 ORDINANCE NO. 395 REQUIRING MANDATORY RETROFIT OF PLUMBING FIXTURES
WITH WATER SAVING DEVICES UPON SALE OR TRANSFER OF PROPERTY
(INTRODUCTION/FIRST READING)
2
D-5 ORDINANCE NO. 394 AMENDING MORRO BAY MUNICIPAL CODE SECTION
13.20.080(A)(B.1) AND (B.2) REGARDING VALIDITY OF HISTORICAL WATER
EQUIVALENCIES ON PROPERTIES (INTRODUCTION/FIRST READING)
D-6 RESOLUTION NO. 13-91 DECLARING A LOCAL EMERGENCY WATER SUPPLY
CONDITION AND AUTHORIZING IMPLEMENTATION OF LEVEL 5 WATER CONSERVATION
PRACTICES AND RATIONING; AND, REQUEST FOR FURTHER FUNDING OF EMERGENCY
WATER SUPPLY PROJECTS
D-7 CONSIDERATION OF MORRO BAY'S PARTICIPATION IN CITY OF SAN LUIS
OBISPO'S PROPOSED SEAWATER DESALINATION PLANT FOR OPERATION IN 1992
E-1 GOVERNMENT CODE SECTION 54956.9(
BROTHERS MARKETS, ET AL VS. CITY
COURT CASE NO. CV-9:0496WMB(GHKX)
F.
PENDING LITIGATION; WILLIAMS
MORRO BAY, ET AL U.S. DISTRICT
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.
MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING - FEBRUARY 11, 1991
VETERANS MEMORIAL HALL - 6:00 P.M.
Mayor Sheetz called the meeting to order at 6:10 p.m.
ROLL CALL
PRESENT: Rose Marie Sheetz
John Baker
Ben Luna
Susan Mullen
Tom Wuriu
ABSENT: None
STAFF: Gary Napper
Judy Skousen
Rick Algert
Louise Burt
Ardith Davis
William Farrel
Forrest Henderson
Dave Howell
Nick Nichols
Steve Wolter
Mayor
Councilmember
Councilmember
Councilmember
Councilmember
City Administrator
City Attorney
Harbor Director
Finance Director
City Clerk
Community Dev. Dir.
Asst. City Admin.
Police Chief
Public Works Dir.
Rec. & Parks Dir.
Reverend Harold Frey of the Estero Bay United Methodist Church
gave the invocation, and Councilmember Baker led the Pledge of
Allegiance.
PRESENTATIONS
AWARDS OF APPRECIATION TO JIM CAMPBELL, TOM KELLERMAN, AND
DAVE LANDRY FOR HEROISM IN SAVING LIVES FROM A CAPSIZED BOAT
Mayor Sheetz presented Certificates of Appreciation to Jim
Campbell, Harbor Patrol Officer Tom Kellerman, and Mrs. Dave
Landry; Dave Landry was unable to be present. Mayor Sheetz
thanked all for their heroism in saving the lives of the two peo-
ple in the capsized boat.
AWARDS OF APPRECIATION TO MEMBERS OF THE PRE-SCHOOL CHILD-
CARE TASK FORCE
Mayor Sheetz presented awards to Julie Loe, Liz Clarke, Sandra
Young, and Helen Kennedy. Also receiving awards, but not present
at the meeting were Linda Donnelly, Susan Eisenzimmer, Jim
McCallum, and Rose Mary Strickland. Mayor Sheetz thanked the
Committee for their comprehensive report and recommendations on
pre-school childcare services in Morro Bay.
MINUTES - MORRO BA TY COUNCIL •
REGULAR MEETING F RUARY 11, 1991
PAGE 2
Mayor Sheetz stated she would like to take personal privilege at
this time to address an article about Morro Bay which was in the
Sunday, February 9th edition of the LA Times. She said she was
quoted out of context and the statements attributed to her were
totally false. She called the editor of the LA Times to discuss
the issue, but has not received a response. She has written a
response already to the article stating she knows full well the
contribution this community has given to the conservation of
water.
f �i1:1�1��K�ldlul�t`�5
1. Barbara Sanders, Morro Bay realtor, stated she is very
concerned about the LA Times article as it will have long and far
reaching effects. She had a client today who would not buy prop-
erty in Morro Bay because of the article, and instead is consid-
ering a home in Los Osos.
2. Lynda Merrill, 391 Sequoia, asked if Morro Bay could
rent or lease desal plans from another public agency rather than
having to come up with its own plans? Surely the Federal Govern-
ment has desal plants for interim use.
3. Ed Smith said he called the reporter who wrote the
article in the LA Times, Corwin Miles, and he said it was a
direct quote from Mayor Sheetz. He believes the Mayor should
retract the statement and apologize to Morro Bay senior citizens
and Morro Bay Beautiful.
4. John Cort discussed the hardship rationing will have on
his household. Mayor Sheetz stated he may make his comments when
that item is heard by Council.
5. Charles Palmer discussed the water situation and water
pricing; he suggested Council buy the Domenghini property and
conserve water through pricing.
6. Suedene Nelson, Executive Director of the Chamber of
Commerce, said since the LA Times article, she has spent a lot of
time on the telephone telling people they can still come to Morro
Bay. She said the business community should be recognized for
their extraordinary efforts to conserve water.
7. John Linhares stated he wished to speak on Item A-4
when the matter is considered by Council.
8. Ray Kaltenbach, 473 Sicily, discussed derelict boats in
the Bay and trucks on waterfront. Mayor Sheetz stated Council
just appropriated funds to abate the boats. Mr. Algert said the
trucks referred to by Mr. Kaltenbach are used for storage by the
Cordero/Winston fish processing business.
9. Roger Ewing commented on raising water rates for pri-
vate citizens. He stated the Inn at Morro Bay still has five
MINUTES - MORRO BA TY COUNCIL •
REGULAR MEETING - FE RUARY 11, 1991
PAGE 3
gallon toilets in their rooms; the City should try to get them to
retrofit.
DECLARATION OF FUTURE AGENDA ITEMS
A.
A-1
None.
CONSENT CALENDAR
Mr. Napper recommended Council approve the minutes as submitted.
A-2 NOTICE OF COMPLETION ON PROJECT PW 89-
Mr. Napper recommended Council accept the project as complete,
and authorize the City Clerk to file the Notice of Completion.
A-3 NOTICE OF COMPLETION ON PROJECT PW 90-
Mr. Napper recommended Council accept the project as complete,
and authorize the City Clerk to file the Notice of Completion.
A-4 STATUS REPORT ON CITY WATER SUPPLY
Mr. Napper recommended Council receive the status report for
file.
A-5 RESOLUTION 15-91 AUTHORIZING INSTALLATION OF STOP SIGN ON
PECHO STREET AT KINGS AVENUE
Mr. Napper recommended Council adopt Resolution No. 15-91.
A-6
PULLED
A-7 APPROVAL OF EXPANDED OPERATION
USE ON
Mr. Napper recommended Council approve an amended Certificate of
Public Convenience.
Councilmember Mullen requested Items A-1 and A-4 be pulled for
separate consideration. She offered a correction to the minutes
of January 28th; reference to "Measure I" should be changed to
"Measure H", on page 2.
MINUTES - MORRO BAVOM COUNCIL
REGULAR MEETING - FEBRUARY 11, 1991
PAGE 4
MOTION: Councilmember Wuriu moved for the approval of the Con-
sent Calendar with the amendment to the minutes and
except for Item A-4 and A-6. The motion was seconded
by Councilmember Baker and unanimously carried. (5-0)
A-4 STATUS REPORT ON CITY WATER SUPPLY
Councilmember Mullen requested Mr. Nichols review the report.
Mr. Nichols stated water levels are very low, although there has
been a slight increase in the Chorro Basin. The City is now
operating out of 4 wells plus the 2 reverse osmosis units at
Keiser Park. The wells are pumping some air, and he cannot guar-
antee how much longer the wells will continue to pump water. He
has transferred water from the south end of town to the north end
to maintain water supply in the north. He does not believe the
wells can be depended upon to continue pumping. He noted agri-
culture uses are increasing in both watershed basins.
John Linhares, 2718 Alder and City employee in the Water Crew,
said he has never encountered air in two of the wells in north
Morro Bay. Mr. Nichols responded he is relying upon information
given by the Water Crew.
MOTION: Councilmember Mullen moved for approval of Item A-4.
The motion was seconded by Councilmember Wuriu and
unanimously carried. (5-0)
B. UNFINISHED BUSINESS
B-1 ORDINANCE NO. 391 ESTABLISHING A 5% BID PREFERENCE FOR LOCAL
VENDORS ON CITY SUPPLIES AND EQUIPMENT (SECOND READING/
ADOPTION)
Mr. Napper stated this Ordinance will allow 5% bid preferences to
local vendors bidding on City purchase of supplies and equipment.
It also clarifies the law defining recyclables for consideration
during purchasing.
MOTION: Councilmember Baker moved Ordinance No. 391 be read by
title and number only. The motion was seconded by
Councilmember Wuriu and unanimously carried. (5-0)
Mr. Napper read Ordinance No. 391 by title and number only.
MOTION: Councilmember Mullen moved for the adoption of the sec-
ond and final reading of Ordinance No. 391. The motion
was seconded by Councilmember Luna and unanimously
carried. (5-0)
MINUTES - MORRO BA TY COUNCIL •
REGULAR MEETING - FEBRUARY 11, 1991
PAGE 5
B-2 RESOLUTION NO. 14-91 ESTABLISHING CITY POI
Mr. Wolter stated pursuant to Council action at their last meet-
ing, a resolution has been prepared to enact four policies recom-
mended by the Childcare Task Force.
MOTION: Councilmember Baker moved for the adoption of Resolu-
tion No. 14-91. The motion was seconded by Councilmem-
ber Wuriu and unanimously carried. (5-0)
B-3
Mr. Napper stated this item is a follow-up of Council action dur-
ing deliberations of the FY 90-91 Capital Improvement Budget and
the allocation of $15,000 to train 3 fire personnel as
paramedics.
MOTION: Councilmember Wuriu moved for the adoption of Resolu-
tion No. 19-91. The motion was seconded by Councilmem-
ber Baker and unanimously carried. (5-0)
B-4
I OF MORRO BAY OF TREES
Mr. Napper outlined the Rotary Club's donation of 50 trees as
part of their "Preserve Planet Earth" program. He said non -
potable water will be used to plant and irrigate the trees. He
noted the Master Tree List's designation of the red -flowering
eucalyptus for the Downtown area, and the acacia for North Main
Street. He suggested Council accept the Rotary Club's donation
for 50 eucalyptus trees for the Downtown area, and refer the
question of acacia trees in North Morro Bay to the to -be -orga-
nized Streets and Trees Committee. There have been complaints
from people allergic to the acacia, and alternative tree designa-
tions can be discussed by the new committee.
Councilmember Wuriu said it would be better to plant what we can
now; if the Rotary Club's donation is referred to the Committee,
it could be some time before the City would take advantage of
their offer.
MOTION: Councilmember Mullen moved the City accept the donation
of 50 trees from the Rotary Club with grateful thanks,
instruct staff to plant the trees in the Downtown area;
but, no new trees be planted in North Morro Bay until
the Streets and Trees Committee reviews and makes rec-
ommendations for that area. The motion was seconded by
Councilmember Wuriu and unanimously carried. (5-0)
MINUTES - MORRO BA)*TY COUNCIL •
REGULAR MEETING - FEBRUARY 11, 1991
PAGE 6
C. NEW BUSINESS
C-1
C-2
Mr. Algert stated the request for a sublease is on a portion of
the Galley Restaurant site; the proposed operation is a retail
clothing outlet. The Lessee is in compliance with his lease, and
the sublessee's financial background has been reviewed by the
Finance Director.
MOTION: Councilmember Baker moved for adoption of Resolution
No. 16-91. The motion was seconded by Councilmember
Luna and unanimously carried. (5-0)
C-3 REQUEST FOR REPORT ON PROSPECTIVE FUNDING SOURCES FOR
SUPPLEMENTAL WATER PROJECTS
Louise Burt reviewed the report to Council outlining revenue
sources, possible grants, and financing mechanisms for funding
water supply projects. Her recommendations for funding in order
of preference are: lease -purchase, Certificates of Participation,
revenue bonds, and assessment district. As funding programs have
to be paid back, possible revenues sources are increasing water
use fees, water meter charges, development fees, and transient
occupancy tax.
Councilmember Baker asked if Morro Bay has the highest occupancy
tax in the County? Ms. Burt stated yes.
Councilmember Luna asked if there is anything additional avail-
able if the City approves rationing conservation this evening?
Ms. Burt said if the State declares the drought a disaster, we
may be eligible for funds; however, declaring an emergency
locally does not increase our chances for project funding. Coun-
cilmember Luna asked how the City would go about petitioning the
Governor to declare a State emergency? Mr. Nichols said he
believes the Governor is working on State drought relief at the
present time. Mr. Napper noted other entities have requested
relief from the State after declaring a local emergency, but have
been unsuccessful. Councilmember Luna requested staff monitor
the matter closely; the fact others have not been successful is a
poor excuse.
Mayor Sheetz stated all the cities and the County are considering
enacting a ballot measure to increase transient occupancy tax.
She requested staff schedule this item for consideration at the
next Council meeting.
MINUTES - MORRO BAY*TY COUNCIL •
REGULAR MEETING - FEBRUARY 11, 1991
PAGE 7
D. PUBLIC HEARINGS, REPORTS & APPEARANCES
D-1 HEARING FOR PROPERTY i
Mr. Napper stated this hearing is the opportunity for anyone
objecting to the lien on their property tax bill due to the
City's weed abatement program to make an appeal before Council.
To date no written appeals have been received. He requested
Council open the hearing for appeals, and then close the hearing.
If appeals are received, staff will investigate them and return
with a recommendation at Council's next meeting.
Mayor Sheetz opened the hearing to the public; there were no
appeals and the matter was returned to Council.
MOTION: Councilmember Wuriu moved the hearing be closed to the
public. The motion was seconded by Councilmember Baker
and unanimously carried. (5-0)
MOTION: Councilmember Baker moved for approval to release the
10% project retention monies. The motion was seconded
by Councilmember Luna and unanimously carried. (5-0)
D-2 HEARING FOR APPEAL OF PLANNING
MOTION: Councilmember Luna moved this item be continued to
February 25th as requested by the appellants. The
motion was seconded by Councilmember Baker and unani-
mously carried. (5-0)
D-3 RESOLUTION NO. 17-91 AMENDING LOCAL COASTAL PROGRAM AND
�9r[il��:�:7a►:�`1
Mr. Farrel reviewed the proposed amendments initiated by staff
due to problems with hazard policies in the General Plan and
Local Coastal Program Land Use Plan relating to slopes. LUP Pol-
icy 9.04 has been rewritten for clarification. Policy 9.07 and
General Plan Program 5-7.1 are revised to delete existing
restrictions on grading on slopes in excess of 20%; and to limit
grading during the winter only in those cases where significant
erosion and sedimentation is likely. Geologic and soils reports
will be required to determine safety to grade or build. Mr.
Farrel indicated his work program includes a new grading ordi-
nance. The Planning Commission reviewed this item, inserted
additional language, and recommends approval by Council.
MINUTES - MORRO BA)*TY COUNCIL •
REGULAR MEETING - FEBRUARY 11, 1991
PAGE 8
Councilmember Mullen noted she had grave concerns the hillside
and hilltop protection language be put back into the Open Space
Element; any timetable for that? Mr. Farrel commented they hope
to accomplish that within the next 3 months with the Planning
Commission.
Mayor Sheetz opened the hearing to the public for comments; there
were no comments and the matter was returned to Council.
MOTION: Councilmember Wuriu moved for the adoption of Resolu-
tion No. 17-91. The motion was seconded by Councilmem-
ber Mullen and unanimously carried. (5-0)
D-4
Judy Skousen
reviewed the Ordinance which requires all
property
owners to retrofit structures on
their property with
the same
water -saving
devices required for
new construction
prior to
recording any transfer of deed.
The property owner is
required
to obtain a
certificate from the
building inspector certifying
the retrofit
has been accomplished.
Councilmember Baker asked what method of publicity will be used
to let people know of the new requirement? Ms. Skousen stated
title companies and real estate agencies will be notified, and
articles published in the newspaper.
Mayor Sheetz opened the hearing to the public for comments.
Ray Kaltenbach said this is a foolish ordinance; retrofit does
not work; people save water, not fixtures. Every house in Morro
Bay has already been retrofitted; none left.
Barbara Sanders said the City always falls back on property own-
ers to do everything. She listed several other things required
of property owners in recent years when they sell their property,
and this is another added expense. There has been no notice of
this item to property owners.
Dale Reddell, 680 Sequoia, stated a number of houses have been
retrofitted with 3 gallon toilets; current requirements for new
construction are for a 1= gallon toilet. He said the retrofit
program should be continued since the cost to the property owner
to have their home retrofitted is zero. Retrofit does work.
David Grimshaw, 408 Orcas, said the fee should be split equally
between buyer and seller.
Lily Collier, Ironwood, asked how much water has been saved by
retrofit; what proof do we have it saves water? Mr. Farrel
stated it is estimated 30% of the community have retrofitted; it
saves 8% to 10% of a household's water usage. When a 5 gallon
MINUTES - MORRO BAY*TY COUNCIL •
REGULAR MEETING - FEBRUARY 11, 1991
PAGE 9
toilet is replaced by a 1; gallon toilet, it saves 3; gallons
every time the toilet is flushed.
Mayor Sheetz closed the hearing to the public.
Councilmember Baker stated Morro Bay's population has increased
during the period 1980 to 1988; however, water use has not
increased. That information is available to the public.
Councilmember Wuriu was concerned an individual who retrofitted
his home with 3 gallon toilets will have to retrofit again to 11
gallon toilets before he can sell his home. Mr. Farrel noted
retrofitting in the past has been installed and paid for by con-
tractors earning equivalencies for building.
Councilmember Baker asked if the costs for retrofitting can be
worked out between the buyer and seller? Mr. Napper stated yes,
the Ordinance puts the responsibility on the property owner; how-
ever, buyer and seller can work out any agreement they want in
escrow.
Councilmember Wuriu believes Council has no alternative but to
approve this item or something stronger. He noted Council previ-
ously discussed mandating all toilets in Morro Bay to be
retrofitted with 11 gallon toilets. This is not as extreme.
Councilmember Mullen agreed this is a compromise to Council's
earlier discussions. Other things could be added later to this
requirement such as instant hot water and gray water systems.
She fully supports this.
MOTION: Councilmember Wuriu moved Ordinance No. 395 be read by
title and number only. The motion was seconded by
Councilmember Baker and unanimously carried. (5-0)
Mr. Napper read Ordinance No. 395 by title and number only.
MOTION: Councilmember Baker moved for approval of introduction
and first reading of Ordinance No. 395. The motion was
seconded by Councilmember Mullen and carried with Coun-
cilmember Luna voting no. (4-1)
Council recessed from 7:40 p.m to 7:58 p.m.
D-5 ORDINANCE NO. 394 AMENDING MORRO BAY MUNICIPAL CODE SECTION
Mr. Farrel stated due to difficulties in administering the water
equivalency ordinance, staff has suggested changes to clarify
certain sections. One amendment has to do with reducing the life
of water equivalencies assigned to 'individual properties. Cur-
rently, properties are allowed water equivalencies equal to aver-
MINUTES - MORRO BAATY COUNCIL •
REGULAR MEETING - FEBRUARY 11, 1991
PAGE 10
aging their highest use since 1977, even though there may have
been little use of the property since that time. Staff recom-
mended the City only allow the highest water use in the last
three years; however, the Planning Commission did not agree with
staff stating reducing the life of water equivalencies could
adversely affect economic development at a time when the City is
trying to enhance it. Staff also proposes to use the new Water
Equivalency Table to determine equivalencies rather than averag-
ing uses over a period of time.
Mayor Sheetz opened the hearing to the public.
Charles Palmer, 485 Estero, reviewed City statistics as to aver-
age water users and high water users. He discussed water pricing
to encourage people to save.
Joe Giannini stated he has a facility that was recently a fish
processing plant. If he understands the Planning Commission rec-
ommendation, he can use the highest use on that property since
1977. He said going back 7 to 10 years might be more appropri-
ate, but 13 years is too long to allow a property to retain its
once -highest water use.
Len Carpenter, 938 Pacific, was in favor of retaining the 1977
date. He said downtown needs all options available to it for
redevelopment. He said Water Equivalency Table A can be adjusted
at any time by the City to downgrade the amount of water each
business is allowed in Morro Bay.
Jack Franklin, 1540 Little Morro Creek Road, was also in favor of
the 1977 date. He recently purchased property which he does not
want to build on until the economic climate is better. Any
advantage to the busienss community should be allowed.
Albert Jorge, 845 Lusita, spoke in favor of retaining the 1977
date.
Mayor Sheetz closed the hearing to the public.
Councilmember Wuriu asked how the 1977 date was chosen? Mr.
Farrel it is the date the City originally settled as far as cred-
iting property for demolished uses. He note the 1977 date has
the potential to increase the water use of the City; however,
this could be off -set by the increase in economic development.
Councilmember Wuriu said he prefers a floating period, such as 10
years, for water equivalencies to be available at their highest
use. If the 1977 figure is used, each year the City will be fur-
ther and further away from the reality of 1977 and it will soon
have no relationship to what is happening now.
Councilmember Mullen said 1977 is too long; a set time -period
should be established.
MINUTES - MORRO BAATY COUNCIL •
REGULAR MEETING - FEBRUARY 11, 1991
PAGE 11
Councilmember Baker said the Planning Commission understood the
problem very well, and agreed with them the date should be 1977.
MOTION: Councilmember Wuriu moved the Ordinance be amended to
include the highest legal water use going back a maxi-
mum of ten years. The motion was seconded by Coun-
cilmember Mullen.
Mayor Sheetz asked if there have been requests recently for
development based on high water use equivalencies? Mr. Farrel
said he does not believe there will be a rush or an immediate
impact on the water situation. There is a permit being processed
for a fast food restaurant on Atascadero Road near the intersec-
tion of Highways 41 and 1.
Councilmember Baker said the water saving as a result of this
ordinance will be insignificant over a number of years. He sees
no problem in leaving the date at 1977.
Councilmember Wuriu said there should not be a set year, but a
floating time -period. What existed in 1977 as to water use might
not be used at all now; it distorts the water picture.
Councilmember Mullen called for the question; it was
seconded by Mayor Sheetz and unanimously carried.
(5-0)
The main motion carried with Councilmember Baker voting
no. (4-1)
Mayor Sheetz opened the public hearing on the 10-year limit
amendment.
Charles Palmer, 485 Estero, said a water equivalency has no mean-
ing if there is no water to allocate. The City needs to get
water from conservation before making a plan for allocation. The
City needs to manage its water properly.
Albert Jorge opposed the 10-year time limit. He suggested
assigning water equivalencies to property as exists at the pre-
sent time; everyone will then know exactly how much water exists
on their property.
Len Carpenter agreed with Mr. Jorge; the basis of the water usage
is going to be determined by the Water Table and Council should
stay with the 1977 date. He has been on the waiting list for 3
or 4 years; if Council schedules a 10-year limit, he still might
not be able to build.
Mayor Sheetz closed the hearing to the public.
Ms. Skousen suggested Council change the wording in Section
13.20.080(B)(1) to read, "... legally permitted uses in the
building within the past ten (10) years,"; and, delete the words
MINUTES - MORRO BAATY COUNCIL •
REGULAR MEETING - FEBRUARY 11, 1991
PAGE 12
"prior to 1977" in the last sentence of that paragraph and insert
the words, "more than ten (10) years previous". The same correc-
tion will be made to Section 13.20.080(B)(2). She noted water
equivalencies need to be treated like zoning; when rezoned, no
right to old zoning.
Councilmember Baker did not agree with the amendment; if a prop-
erty remains vacant longer than 10 years, the property owner will
lose everything.
MOTION: Councilmember Mullen moved Ordinance No. 394 be read by
title and number only. The motion was seconded by
Councilmember Wuriu and unanimously carried. (5-0)
Mr. Napper read Ordinance No. 394 by title and number only.
MOTION: Councilmember Wuriu moved for approval of the introduc-
tion and first reading of amended Ordinance No. 394.
The motion was seconded by and carried with Councilmem-
bers Baker and Luna voting no. (3-2)
a
Mr. Nichols reviewed the water rationing program as earlier
approved by Council for implementation in an emergency. He
stated the City's groundwater supplies are in trouble, and it is
time to enact the rationing provisions. He said we are in our
fifth consecutive winter of less than average rainfall, and the
situation is worse than we began with last year. At this point
there is a significant possibility our water supply will not be
able to meet the community's demand without outside sources. It
is time to begin instituting emergency water supply projects, and
implement increased water conservation requirements to try to
maintain water within our ability to provide.
Mr. Nichols noted the Level 5 rationing provisions include con-
tinuing with Level 4 conservation measures; a life -line amount
for customers; require all customers to reduce their water use by
15% from the same month last year or the average of the last two
years, or up to 3 people per household reduce to 8 billing units
and multi -family units reduce to 6 •units; irrigation of turf
areas is prohibited. Emergency supplemental water sources are
Whale Rock, golf course wells, and P.G.&E. wells.
Staff recommends changes to the program to limit single family
residents to 6 billing units of water per month, apartments/ con-
dominiums to 5 units, and prohibit all outdoor irrigation.
Councilmember Mullen asked how many gallons per day does 6 units
per month equal to? Mr. Nichols stated 4500 gallons per month;
MINUTES - MORRO BAATY COUNCIL
REGULAR MEETING - FEBRUARY 11, 1991
PAGE 13
150 gallons per day or 50 gallons per person in a 3-person
household.
Councilmember Mullen commented if some people have not been con-
serving at all, reducing their consumption by 15% could allow
some people to still use a considerable amount of water. Coun-
cilmember Mullen suggested eliminating paragraph 2C with regard
to the 15% reduction. With a monthly limit on water use, she
believes it is not necessary to restrict irrigation. She is in
favor of setting the limit on residential at 8 units, and apart-
ments/condos at 6 units.
Councilmember Wuriu agreed with the 8 unit limit. He asked the
effect of prohibiting all outdoor irrigation? Mr. Nichols stated
it will make a significant difference.
Councilmembers agreed to eliminate the 15% reduction and require
all residential users to cut -back to 8 units per month for up to
3 people in the household with one additional ccf unit added for
each additional permanent resident.
Councilmember Mullen asked how the people will be educated as to
the number of units they are allowed and how much they have been
using? Ms. Burt stated a notification letter will be sent to all
customers. Mr. Nichols said City staff will try as near as pos-
sible to read meters the same day each month, but may only be
able to do it within a 2-day period.
Councilmember Luna suggested sending a letter to the Governor
requesting Morro Bay be declared a disaster area due to the
drought.
Mayor Sheetz opened the hearing to the public for comments.
Ed Biaggini, 1164 Market Avenue, asked what is the difference
between a condominium and single family residence as far as water
use is concerned? He objected to the 15% cut -back required for
commercial and not for residential. He was concerned a one day
difference in reading meters could mean a double water bill.
Lynda Merrill, 391 Sequoia, objected to no outside watering. If
a household uses 2 units of water per month, what does the City
care if some of it is used to water plants?
John Cort, 245 Capri, objected to a family of 5 only allowed 10
units of water per month. Morro Bay is not a good place to live.
John Linhares, 2718 Alder, said management people are the biggest
problem with the water situation; they are not productive.
Charles Palmer discussed encouraging conservation by water pric-
ing; he has a rate structure that will double revenues.
MINUTES - MORRO BAATY COUNCIL •
REGULAR MEETING - FEBRUARY 11, 1991
PAGE 14
Ray Kaltenbach said the only fair way to allocate water is so
many units per person per month.
Dave Rose, 391 Arbutus, supports a fixed amount of units and is
against banning outdoor irrigation. He suggested allowing out-
door irrigation between 5:00 and 10:00 and prohibit on weekends
and holidays. Only those who like to garden will choose to use
their limited water on plants.
Barbara Sanders asked if a business is operating at the minimum
rate, how will they reduce by 15%? Ms. Burt said there is no
official minimum for commercial.
Ann Freeman asked if there are any suggestions for nursing homes?
If they cannot reduce and the City fines them, the owners will
try to recoup through their residents which can ill afford in-
creases. She said nursing homes and Medical patients need help.
Ed Smith, Marina Street, agrees with the concept of allowing so
much water per person.
Tom Mayberry, Juniper Avenue, said if a home was recently built
and there is no history of water use, where does that person
stand? He is in favor of 6 or 8 units.
Angela Carpenter asked what a landlord does if the tenant does
not decrease water use? She suggested cool water in the showers
at the high school will decrease water use at that facility.
Bruce Risley, 540 Piney Way, suggested Council not ignore Charles
Palmer and his water statistics. He also suggested finding a way
to reward those who have been conserving for many years.
Joe Giannini said there have been water emergencies in the past;
in 1949 he turned on the water faucet and there was no water. He
said percentages will confuse the people. He believes the people
will respond if Council tells them there is a problem, and sug-
gested putting out another plea for the people to conserve as
much as humanly possible.
Mayor Sheetz responded the City is in a position where the water
tanks may not fill overnight. With this situation the City must
access emergency water which is not available unless the City has
instituted a rationing program; that is, Whale Rock water.
Mr. Giannini asked why the City has not used the well water his
son offered to the City? Mr. Nichols stated there is a high
nitrate level in the water which will require a treatment plant
to remove; the cost of running a new water line from the well to
the City system is over $100,000; there is no place to deposit
the backwash from the treatment; there is a question as to the
continued viability of the well. Based on this information,
Council decided there were more attractive options.
MINUTES - MORRO BA &TY COUNCIL •
REGULAR MEETING - FEBRUARY 11, 1991
PAGE 15
Mr. Giannini stated his son and his family have been using that
water for 15 years with no ill effects. Look to the Domenghini
Family.
John Whitacre, 963 Balboa, objected to prohibiting outside irri-
gation and suggested the City provide an education officer to
educate the public on ways to irrigate without much water.
Ed Peters, 275 Bradley, said water meters do not read i units; so
a 15% cut -back will be hard to measure. Councilmember Wuriu com-
mented there is an appeals procedure built into the Ordinance.
Don Smith, San Luis Obispo, discussed practices in his City to
conserve water, and suggested Morro Bay learn from them.
Jennifer Bradley-Lenet, 419 Napa Avenue, stated other areas are
taking a more active role in trying to save greenscapes: Santa
Barbara uses reclaimed water; put nitrate backwash onto lawns;
mulch can save water.
Mayor Sheetz closed the hearing to the public.
Mayor Sheetz stated Council discussed the matter of eliminating
daily restrictions on outside irrigation when the rationing pro-
gram was set. Ms. Burt said weekend watering was prohibited due
to increased tourism on those days to avoid peak demands on the
system.
Council made the following changes to Exhibit A, Emergency Water
Supply Condition Water Rationing Program:
1. Allow irrigation on Monday through Thursday during set
hours.
2C Eliminate (15% reduction)
F Substitute with "Irrigation of turf areas, except on
residential lots, is prohibited."
3 Eliminate, "...That is, they will be required to pay
double that current monthly water bill."
5 Eliminate; already petitioned Whale Rock Commission for
emergency water
Councilmember Wuriu asked if Bayshore Village will be allowed to
go ahead with their project? Mr. Farrel said they have pulled
their building permits which gives them that right. Ms. Skousen
stated the City can prohibit new water users from hooking up to
the City system during an emergency, but they cannot single out
one project.
MOTION: Councilmember Mullen moved for approval of Exhibit A as
amended. The motion was seconded by Councilmember
Wuriu and unanimously carried. (5-0)
MINUTES - MORRO BAATY COUNCIL •
REGULAR MEETING - FEBRUARY 11, 1991
PAGE 16
MOTION: Councilmember Mullen moved for adoption of Resolution
No. 13-91. The motion was seconded by Councilmember
Luna and unanimously carried. (5-0)
Mr. Nichols then outlined additional funds needed for emergency
water supply projects: $4,000 for lower pump in County golf
course well; $2,000 for manganese removal treatment of P.G.&E.
well; $14,000 for a pipeline from Cuesta College for treated
Whale Rock water; $40,000 for a new temporary well in Keiser
Park; and $12,000 for completion of seawater desal beach test
wells. A grand total of $72,000 is needed for these.
Councilmember Mullen asked how much water can the City expect
from the different sources? Mr. Nichols said between 200 to 220
gallons per minute (gpm) from the golf course well; 100 a.f., 200
to 225 gpm from Whale Rock; Keiser Park is unknown, hopefully 100
gpm.
Council asked other questions to which Mr. Nichols and Mr. Napper
responded.
MOTION: Mayor Sheetz moved for approval of allocating $72,000
to emergency water project programs from the following
funds: $10,000 from Water Capital Fund Emergency Water
Contingencies; $15,000 from San Bernardo Study Loan
Repayment, and $47,000 from the Water Treatment Plant
Design fund. The motion was seconded by Councilmember
Baker and unanimously carried. (5-0)
D-7 CONSIDERATION OF MORRO BAY'S PARTICIPATION IN CITY OF SAN
LUIS OBISPO'S PROPOSED SEAWATER DESALINATION PLANT FOR
Mr. Nichols stated Council received an in-depth analysis of San
Luis Obispo's plan to build a temporary (5-year) desalination
facility during their joint meeting on January 31st. The plant
is estimated to cost $19.5 million or approximately $2,900 to
$2,800 a.f. Based on a proposed participation of 1,100 a.f. per
year, Morro Bay's cost are estimated at $15 million for capital
improvements and an annual cost $3.2 million. Costs already
incurred by the City of San Luis Obispo are $743,000 for prelimi-
nary design and environmental review of which Morro Bay's portion
will be $150,000 to $170,000. Mr. Nichols said this increases
the city's necessary annual revenue from the Water Funds by 250%.
He said an average monthly water bill at 9 units currently costs
$14; this will increase to approximately $49.
It was noted only the California Men's Colony has agreed to be a
partner in the San Luis Obispo project. Mr. Napper stated if
Council agrees to join San Luis Obispo in their desal project, he
will return at the next meeting with recommendations for increas-
ing water rates to fund the project.
MINUTES - MORRO BAATY COUNCIL •
REGULAR MEETING - FEBRUARY 11, 1991
PAGE 17
Mayor Sheetz asked if Morro Bay will be allowed to alter the
amount of water needed? Bill Hetland, City of San Luis Obispo
Utilities Director, stated they would like to know as soon as
possible exactly how much water Morro Bay is going to need. He
noted it is better to start with a higher figure since the amount
needed from the plant will determine its size. The Request for
Proposals will be released in April or May and they will need the
exact figure by then.
Councilmember Mullen asked what is Morro Bay's projected popula-
tion in 1997? Mr. Nichols stated he used information based on
the City's current population and an increase of 112$ per year; he
anticipates Morro Bay's population at 11,500 by 1997.
Mayor Sheetz opened the hearing to the public.
Steve Paige, member of the Water Advisory Board, introduced Henry
Hammer, architect teacher at Cal Poly, and stated they had devel-
oped some figures on what the bottom line average cost to the
customer will be for desal water. He reviewed the data and
assumptions he started with. If Morro Bay was using only desal
water, the cost could be as much as $85 per month: capital costs
of the plant, $12/month; energy costs, $34.50/month; and opera-
tion and maintenance, $38.34. If Morro Bay only uses a portion
of the desal water it will cost approximately $34/month per
household. He said the plant will also create 12,000 pounds of
carbon dioxide which will augment the greenhouse affect.
Mr. Hammer elaborated on the greenhouse affect and the amount of
energy needed to mitigate the carbon dioxide production. He said
amount of energy needed to overcome the effect of carbon dioxide
is equal to 1,000 acre of trees. He also suggested Morro Bay
could produce their own electricity and reviewed the costs
involved.
Don Smith, San Luis Obispo, said the staffs of the two cities
should get together to work things out; it will cost $13.31 more
per month for the average resident using 5 units of water; he
prefers Option C in the staff report; and suggests Morro Bay
reserve 600 of rather than 1,100 of of water from the plant.
Joe Giannini said in 1944 and 1945 just behind the Veterans
Building, the Navy had two 6" diesel pumps which were emergency
water pumps. He suggested it might be worthwhile to find out why
the Navy built the pumps before the City invests a great deal of
money. He also said test borings were made in the early fifties
on the site where the Central Coast Seafoods is, and they found
some of the best water strata in the County. He suggested look-
ing at Nacimiento Lake before making a decision.
Charles Palmer said the City is going to invest $16 million for
something they may or may not need. The City needs adjustments
to its water and sewer pricing structure.
MINUTES - MORRO BA�ITY COUNCIL •
REGULAR MEETING - FEBRUARY 11, 1991
PAGE 18
Ed Biaggini asked how much money has to be invested if it rains
next year and the plant doesn't have to be built? Mr. Hetland
said once they start, they are obligated for the capital costs.
It is possible if the area receives adequate rain, the plant will
not be needed and the cities can possibly get out of the opera-
tion and maintenance costs. It is a risk, but there are few
other choices.
Mayor Sheetz said it does not seem reasonable that one year of
rain would correct the problems five years of drought has caused.
Mr. Nichols stated if the City receives 16" of rain between now
and April, it could recharge the basins; however, there never has
been this long of a dry period and there is no experience on
which to base projections. He believes it will take two or three
good full rainfall winters for the water quality return to pre -
drought conditions.
Councilmember Mullen asked if San Luis Obispo has addressed
alternative energy issues? Mr. Hetland said those will be dis-
cussed in the EIR.
Ted Sands, international water consultant, said he has a client
called Western Canada Water. They are attempting to answer ques-
tions posed by the Cities of San Luis Obispo and Morro Bay rela-
tive to tankering water to this area. He said the best solution
to this water problem is resolve it on a regional basis.
Lynda Merrill said Council should put this matter off to at least
two weeks.
Gary Gillman said Council has finally attacked the water situa-
tion and it is time to act. He believes the community will stand
behind the Council.
Andrew Proctor discussed the drought; he believes we are in a
permanent drought with sporadic rainfall. Desal may be more
expensive, but is the only alternative.
Cindy Fisher, 155 Tahiti Street, said she is a life -time resident
of Morro Bay and would like to build a home and continue to live
here. She requested Council make a decision to allow families to
continue to live in Morro Bay. She encouraged Council to join
with San Luis Obispo on this project.
Bruce Risley said Morro Bay had not heard anything about this
project until two weeks ago while San Luis Obispo has been study-
ing the subject for several months. Now Morro Bay receives an
ultimatum to make a decision on joining the project within six
days. The City should not be subjected to such pressure to make
a quick decision. In a crisis decision, treat it as such and go
to the Governor.
Mayor Sheetz closed the hearing to the public.
MINUTES - MORRO BAAITY COUNCIL •
REGULAR MEETING - FEBRUARY 11, 1991
PAGE 19
Mayor Sheetz did not agree with Mr. Risley; she said this item
has had widespread coverage in the news media. Now is the time
for Council to act.
Councilmember Baker said he has
cities; there is only one thing
Luis Obispo in this project.
faith in the staffs of both
to do and that is join with San
MOTION: Councilmember Baker moved Council endorse in concept
Morro Bay's participation in a joint emergency desali-
nation water project with the City of San Luis Obispo
for a subscribed maximum amount of 1,100 acre feet; and
directed staff to prepare for 25 February 1991 a corre-
sponding water rate increase to obtain the $150,000-
$170,000 to fund our portion of the associated environ-
mental impact report and preliminary engineering. The
motion was seconded by Councilmember Wuriu and unani-
mously carried. (5-0)
Councilmember Mullen requested the top 3 long term water projects
be placed on a future agenda for discussion.
E. CLOSED SESSION
E-1 GOVERNMENT CODE SECTION 54956.9(A), PENDING LITIGATION;
WILLIAMS BROTHERS MARKETS. ET AL VS. CITY OF MORRO BAY. ET
AL U.S. DISTRICT COURT CASE NO. CV-9:0496WMB(GHKX)
MOTION: Councilmember Baker moved the meeting adjourn to Closed
Session. The motion was seconded by Councilmember
Mullen and unanimously carried. (5-0)
Mayor Sheetz announced the Closed Session items.
The meeting adjourned to Closed Session at 11:58 p.m. and
returned to regular session at 12:45 a.m.
F.
MOTION: Councilmember Wuriu moved the meeting be adjourned.
The motion was seconded by Councilmember Baker and
unanimously carried. (3-0) Councilmembers Luna and
Mullen left during the Closed Session.
The meeting adjourned at 12:45 a.m.
Recorded by:
kk2 ITH DAS
City Clerk
m,6 Istri
Coy Of Morro Cay
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 we committed to this purpose and will provide a level of municipal
service consistent and responsive to our public and its needs.
SPECIAL MEETING - 31 JANUARY 1991 .
MORRO BAY/SAN LUIS OBISPO CITY COUNCILS
VETERANS MEMORIAL HALL - 7:00 P.M.
209 SURF ST., MORRO BAY, CA
ROLL CALL
PUBLIC COMMENT PERIOD - Members of the audience wishing to address the
Council on City business matters (other than Public Hearings items under
Section D) may do so at this time. 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-1 DESALINATION PROJECT - SAN LUIS OBISPO STAFF
♦ PROJECT SUMMARY/OVERVIEW (MONTGOMERY ENGINEERS)
♦ TIMEFRAME FOR DECISIONMAKING
D-2 SAN BERNARDO CREEK DAM - MORRO BAY STAFF
♦ BRIEFING ON PROJECT STATUS AND SCOPE
D-3 COASTAL STREAMS 'DIVERSION PROJECT - MORRO BAY AND SAN LUIS OBISPO
STAFFS
♦ PROJECT OVERVIEW/CURRENT STATUS
♦ STATUS WITHIN RESPECTIVE CITY WATER DEVELOPMENT EFFORTS
D-4 WRITTEN REPORTS: RECEIVE AND FILE INDIVIDUAL REPORTS FROM CITIES
A. NACIMIENTO RESERVOIR ACTIVITIES
B. STATE WATER PROJECT STATUS
C. WATER RECLAMATION EFFORTS'
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.
6 a
MINUTES - MORRO BAY/SAN LUIS OBISPO CITY COUNCILS
SPECIAL MEETING - JANUARY 31, 1991
VETERANS MEMORIAL HALL, MORRO BAY - 7:00 P.M.
Mayor Sheetz called the meeting to order at 7:10 p.m.
CITY OF MORRO BAY
PRESENT: Rose Marie Sheetz
John Baker
Ben Luna
Susan Mullen
Tom Wuriu
ABSENT: None
STAFF: Forrest Henderson
Judy Skousen
Bill Boucher
Louise Burt
Ardith Davis
Nick Nichols
CITY OF SAN LUIS OBISPO
PRESENT: Ronald Dunin
Bill Roalman
Peg Pinard
Penny Rappa
Jerry Reiss
ABSENT: None
Mayor
Councilmember
Councilmember
Councilmember
Councilmember
Asst. City Admin.
City Attorney
Assoc. Civil Eng.
Finance Director
City Clerk
Public Works Dir.
Mayor
Vice Mayor
Councilmember
Councilmember
Councilmember
STAFF: John Dunn Administrative Off.
Cindy Clemens Asst. City Attorney
Bill Hetland Utilities Director
Gary Henderson Utilities Engineer
Councilmember Baker led the Pledge of Allegiance.
1. Bruce Risley, 540 Piney Way, said since both Morro Bay
and San Luis Obispo have long term water problems, it seems logi-
cal for the cities to work together and move forward jointly on
the stream diversion feasibility studies. He asked why negotia-
tions projected more than a year ago to resolve details of the
stream diversion project never took place; why the same consul-
tants who issued two reports tending to prove and encourage the
feasibility and potential benefit of stream diversion to all par-
ties and at reasonable cost, would issue a report just to the
6
MINUTES - MORRO BAY/SAN LUIS OBISPO CITY COUNCILS
SPECIAL MEETING - JANUARY 31, 1991
PAGE 2
City of San Luis Obispo reversing their former joint study; and
why Morro Bay and San Luis Obispo have apparently gone their sep-
arate ways in our present critical situation in studying and
developing emergency desalination supplies?
2. Doris Murray, 236 Surf Street and a member of the TV
Franchise and Services Board, stated she wishes to go on record
regretting that Sonic Cable TV cannot he at the meeting to tele-
vise anything as important as this water meeting.
3. Mary Phillips said she is glad to two Councils are
together. She cautioned the Councils against only putting their
efforts into desal water, and spoke in favor of exploring the
acquisition of fresh water from Vancouver, British Columbia. She
questioned why Los Angeles takes its water from Northern
California if desal is so great; they have the ocean at their
front door.
4. Ted Sands, resident of Santa Barbara and has been in
the water industry for 40 years, said he is familiar with desalt-
ing plants all over the world. He requested the Councils con-
sider bringing water down from Canada by tanker; desalination has
not been done successfully on the west coast. He said the costs
of importing fresh water are comparable to desal or even less.
Information on the process can be made available to staff; as
long as there is information as to the volume needed and the
length of time it will be needed, costs can be determined.
5-
Cecil Carey, 40 years experience in the water business, said
desal water is essential for emergencies, but costs three to four
times what the San Bernardo Creek and Coastal Streams project
would be. State Water Project costs are $3,000 per acre foot and
desal is $7,000 per acre foot.
Don Smith, San Luis Obispo, quoted from an article in the LA
Times that State Water Project officials will cut the amount of
water it is supplying to the Metropolitan Water District by 85%
if drought conditions continue to be critical. He noted most
people in San Luis Obispo have cut back their water use to about
5 units per month. He is concerned about the amount of energy
used by a desal project, and prefers Nacimiento as a source of
water.
Mayor Sheetz closed the hearing to the public.
D. PUBLIC REPORTS
D-1 DESALINATION PROJECT - SAN LUIS OBISPO STAFF
♦ PROJECT SUMMARY/OVERVIEW (MONTGOMERY ENGINEERS)
♦ TIMEFRAME FOR DECISIONMAKING
Bill Hetland stated California is going into its fifth year of
drought. He displayed charts depicting water levels in San Luis
Obispo wells and reservoirs, and stated if the trend continues,
MINUTES - MORRO HAY/SAN LUIS OBISPO CITY COUNCILS
SPECIAL MEETING - JANUARY 31, 1991
PAGE 3
San Luis Obispo will run out of water. Two years ago, the City
of San Luis Obispo started mandatory rationing. In November
1990, staff presented the Council with projects for a new water
supply. Some of them were rainfall -dependent projects, but they
also considered tankering and desal. The City Council directed
staff to proceed with the desal project to minimize risks. They
realize the costs are very expensive, but believe there is no
choice. The City of San Luis Obispo is now talking with other
agencies who might be interested in participating in the project
and asking them for commitments. They hope to have the project
operational by July 1992.
Charles Dougherty of J.M. Montgomery Engineers, Inc. prepared the
feasibility study for the City of San Luis Obispo for the desal
project. Mr. Dougherty gave a detailed description of the pro-
ject and the fast -track timeline for getting the project opera-
tional. The recommended project is for ocean water to come in
through the P.G.&E. intake in Morro Bay; from there to a reverse
osmosis facility on P.G.&E. property; and then through a new
pipeline to the existing Whale Rock pipeline for distribution to
San Luis Obispo through their water treatment system. San Luis
Obispo's capacity is for 3,000 acre feet per year. He said
P.G.&E.'s participation is critical to the project. The waste
and brine will be funnelled back through the P.G.&E. outfall and
possibly the Morro Bay wastewater treatment plant.
Mr. Dougherty estimated costs for San Luis Obispo's 3,000 acre
feet at $1600 per acre foot plus $1300 energy costs per acre
foot; for a total of $8.7 million per year. Because of the
necessity to fast -track this project to have it operational by
1992, San Luis Obispo is asking for agency commitments by
February 6, 1991. Any delays beyond that push project operation
further into the future.
Councilmember Wuriu stated from the drawings, it looks like the
reverse osmosis facility is larger than the P.G.&E. plant; is it
really that large? Mr. Dougherty stated it is 1-3/4 to 2 acres.
There is a relationship between the size of the facility and
costs. It is estimated San Luis Obispo will subscribe to 3,000
acre feet; Morro Bay perhaps 1100 acre feet; and several other
agencies at 500 acre feet. A small facility for one user will
cost as much as a large facility.
Councilmember Mullen asked questions relative to the reverse
osmosis filtration system, to which Mr. Dougherty responded.
Mayor Sheetz asked if the water has to be treated coming from the
reverse osmosis unit? Mr. Dougherty stated Morro Bay will proba-
bly have to undertake minimal chlorination. Mayor Sheetz asked
how costs will be apportioned? Mr. Dougherty stated all agencies
participating will enter into a JPA agreement and will be charged
according to the amount of water they use. Mayor Sheetz asked if
this also applies to construction of the plant? Mr. Dougherty
said he believes so.
MINUTES - MORRO BAY/SAN LUIS OBISPO CITY COUNCILS
SPECIAL MEETING - JANUARY 31, 1991
PAGE 4
Councilmember Luna asked if next winter brings substantial rain-
fall, enough to recharge our basins, will the City be required to
go ahead with the project? Mr. Dougherty stated the project is
planned for a 5-year source of supply; if it rains, it will be
the City's decision on how to deal with it. Mr. Hetland said
once an agreement has been signed by the various agencies, the
financial commitment will be made. If rains develop and the
plant is never turned on, the agencies will still be liable for
the capital portion of the plant costs.
Mayor Dunin stated the JPA may be in more than one section; one
for the capital improvement, one for maintenance, and perhaps one
for the actual product.
Councilmember Mullen asked if Morro Bay will be requesting 1100
acre feet from this project? Mr. Nichols stated it has not been
decided yet and is up to Council how the details of the project
will be worked out.
Mr. Dunn stated the contract will spell out the wants and needs
of all agencies involved.
Mayor Sheetz asked if Morro Bay subscribes to the project, when
will the first payment be due? Mr. Hetland said the feasibility
study cost $49,000; the preliminary design currently underway
will be $438,000; and the EIR and permitting process $256,000 for
a total of $743,000 committed to date. Based on letters from
other agencies and the amount they may subscribe from the project
and Morro Bay's estimate of 1100 acre feet, Morro Bay's portion
would be approximately $150,000 of the $743,000.
Councilmember Mullen noted a State grant obtained by the City of
Riverside for water projects. Mr. Hetland stated they are look-
ing into the possibility of grants.
D-2 SAN BERNARDO CREEK DAM - MORRO BAY STAFF
♦ BRIEFING ON PROJECT STATUS AND SCOPE
Mr. Nichols reviewed the concept of building a water storage
facility at San Bernardo Creek, and the history of the City's
applications for water rights. An EIR is underway but has not
been finished due to the drought; there are no stream flows to
conduct the fisheries analysis. Mr. Nichols also reviewed the
Coastal Streams Diversion Project whereby the yield of the reser-
voir could be increased by adding stream flows from nearby
creeks. The San Bernardo Dam Reconnaissance Report estimates
costs at $15.5 million to build the dam. Along with the problem
of finishing the studies, there is the reluctance on the part of
nearby property owners to have a lake on their land; also, people
downstream do not want to live under a dam. This is envisioned
as a long-range project.
MINUTES - MORRO BAY/SAN LUIS OBISPO CITY COUNCILS
SPECIAL MEETING - JANUARY 31, 1991
PAGE 5
Councilmember Luna asked if San Luis Obispo had considered Morro
Bay expanding the Whale Rock reservoir for its uses before going
to the desal project? Mr. Hetland pointed out the City of San
Luis Obispo is only one agency of the Whale Rock Commission;
there is also the Men's Colony and Cal Poly. He said they inves-
tigated trying to expand the reservoir with regard to the spill-
way, but there is a minimum amount of storage that can be gained.
He does not believe expanding the reservoir is a viable project
for San Luis Obispo.
Mayor Sheetz commented on the discussions regarding building
another reservoir when there is nothing to fill it with.
D-3 COASTAL STREAMS DIVERSION PROJECT - MORRO BAY AND SAN LUIS
OBISPO STAFFS
♦ PROJECT OVERVIEW/CURRENT STATUS
♦ STATUS WITHIN RESPECTIVE CITY WATER DEVELOPMENT
EFFORTS
Mr. Hetland stated the Coastal Streams project involves putting
temporary dams on small streams and pumping water during peak
flows back to Whale Rock Dam for storage. Based on the feasibil-
ity report, it initially appeared to be viable and cost-effec-
tive. Due to some change in staff at the Fish and Game Depart-
ment, their direction was withdrawn on how to operate the coastal
streams project until a fisheries study could be done. It is a
rainfall -dependent project and will not help in a drought; there-
fore, San Luis Obispo concentrated its efforts on other projects.
Until the study is finished and yields are known, it is premature
to discuss putting the project together. He noted the report
submitted based on San Luis Obispo's needs revealed a constraint
in the project on the amount of water the City of San Luis Obispo
could obtain because of the limitation in the Whale Rock pipeline
and the ability to convey excess water.
Councilmember Wuriu asked if Morro Bay decided to pursue the
Coastal Streams Project, would San Luis Obispo let Morro Bay do
it on its own? Mr. Hetland said there has been no formal action
on the project because the feasibility study is incomplete.
Right now the Coastal Streams looks very expensive to the City of
San Luis Obispo.
Mr. Nichols noted if Morro Bay pursues Coastal Streams on its
own, it will need a storage facility.
Councilmember Baker asked what the acre-foot costs are on the
Phase II Stream Diversion Project? Mr. Nichols stated based on
the reconnaissance study diverting four streams into the San
Bernardo Reservoir the approximate cost is $500 per acre foot.
Mayor Sheetz stated Council cannot make a commitment to the City
of San Luis Obispo's desal project at this time, but she will
schedule the subject for public hearing before Council at their
regular meeting on February llth.
MINUTES - MORRO BAY/SAN LUIS OBISPO CITY COUNCILS
SPECIAL MEETING - JANUARY 31, 1991
PAGE 6
Mayor Sheetz opened the meeting for comments from the public.
Gary Kunkel, a member of a San Luis Obispo group called Water
Action to Eliminate Rationing (WATER) and an elected director on
the Resource Conservation District, urged the City Councils to
turn to the private sector to help solve this problem in order to
solve it quickly. He said the Diablo Canyon desal plant only
took 6 months from beginning to end to develop.
Katherine Walling, Morro Bay resident, stated she visited the
desal plant when Diablo Canyon was being built and commented on
the corrosive nature of the pipes through the desalination pro-
cess, and stated it will require mixing with fresh water to make
it potable.
Clint Milne, County Engineer, stated the reverse osmosis system
proposed by the City of San Luis Obispo is different than the
desal project in effect at Diablo Canyon.
Mary Phillips stated the brine from the desal project will
destroy the estuary as well as the fishing industry; Cayucos and
Morro Bay sewage is already flowing out to the ocean. She asked
why P.G.&E. doesn't let us purchase desal water from them until
we can get other sources. She also asked questions concerning
the membranes in the filtration system.
Mr. Dougherty stated the membranes used today do not disintegrate
in the system and come out the water pipes. He also explained
the level of Total Dissolved Solids (TDS) in this water will not
cause corrosion in the pipes. He said desal is a proven technol-
ogy and has been used for years in the Middle East; it has not
been used in California before because of the expense. The waste
or brine from the system will not be deposited in the estuary but
will leave Morro Bay through the P.G.&E. outfall.
Councilmember Pinard explained the water itself is not corrosive;
the water is so pure it washes away what has built up in the
pipeline over the years.
Mike Peterson said he lives in Avila Beach and is the manager of
the desal plant at the P.G.&E. Diablo Canyon Power Plant. He
further explained the technology of the minerals involved in the
desal process.
Councilmember Luna asked how P.G.&E. was able to expedite their
construction of the Diablo Canyon desal project. Mr. Peterson
stated P.G.&E. already had a site which would not have to be
developed; their's is a smaller project than that proposed by the
City of San Luis Obispo; the conveyance systems were easy to work
out; they did not have to wait for an agreement from the public
sector; they did not have to go through the permitting process,
etc.
MINUTES - MORRO BAY/SAN LUIS OBISPO CITY COUNCILS
SPECIAL MEETING - JANUARY 31, 1991
PAGE 7
Mr. Hetland pointed out the private sector is going to be doing
the work on this project.
Ted Sands again spoke on the merits of tankering water from
Canada.
John Lemons, 419 Shasta, commended the Councils for their efforts
to do something of an emergency nature. He suggested if Morro
Bay requests 1100 acre feet from this project for an emergency,
there may be some legal problems with that much emergency water.
He said with respect to giving San Luis Obispo an answer by
February 6th, it is poor business practice to commit to something
without seeing the agreement. He said in 1978 an advisory elec-
tion was held in San Luis Obispo County about the State Water
Project, and it passed. If the County had gone ahead then and
developed the State Water Project, none of us would be here this
evening.
Charles Palmer, 435 Estero, discussed water rate structuring.
Nelson Sullivan said Morro Bay's high alkalinity in the water is
saving us from big problems because of our asbestos pipes. He
said the desal project should be compared with Nacimiento as it
seems timeframe and costs are competitive.
Jane Bailey asked how high the desal plant will be built? Mr.
Dougherty said it will be a single story no higher than 10 feet.
D-4 WRITTEN REPORTS: RECEIVE AND FILE INDIVIDUAL REPORTS FROM
CITIES
A. NACIMIENTO RESERVOIR ACTIVITIES
B. STATE WATER PROJECT STATUS
C. WATER RECLAMATION EFFORTS
Mr. Nichols stated Council was in receipt of a joint report from
the Cities of San Luis Obispo and Morro Bay regarding the status
of these items; no further presentation is planned.
Councilmember Wuriu stated despite the fact Morro Bay and San
Luis Obispo do not always have the same interests, he believes it
is amazing both staff and elected officials have been able to
work as successfully as they have in trying to solve their mutual
water problems. He hope it continues.
Councilmember Luna commented funding of projects has been sched-
uled on the next Council agenda. He stated he would like to see
information from Ted Sands after the meeting.
Councilmember Baker commented on the portable trailer reverse
osmosis units to be used in the San Luis Obispo project. Mr.
Nichols stated the trailer reverse osmosis units Morro Bay is
presently using at Keiser Park for brackish water are different
than the ones to be used in Morro Bay's emergency project sched-
MINUTES - MORRO BAY/SAN LUIS OBISPO CITY COUNCILS
SPECIAL MEETING - JANUARY 31, 1991
PAGE 8
uled for this summer. It is possible the units for Morro Bay's
1991 project may be interchangeable with the upcoming San Luis
Obispo project.
Mayor Sheetz expressed sincere appreciation for San Luis Obispo
City Council coming to Morro Bay; there is definitely a common
ground and she believes the Morro Bay City Council is leaning
towards a joint project.
F. ADJOURNMENT
Mayor Sheetz adjourned the meeting at 9:30 p.m.
Recorded by:
ARDITH DAVIS
City Clerk
�,,,wl as, l9R/
0
City Of Morro Bay
City Council Agenda
Mission Statement
The City of Morro Bay is dedicated to the preservation and enhancement of the quality of life
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 - JANUARY 28, 1991
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 Hearings items under
Section D) may do so at this time. 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 (CITY COUNCIL)
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 14, 1991
A-2 EXPENDITURE REPORT - DECEMBER 1990
A-3 STATEMENT OF INVESTMENTS - DECEMBER 1990
A-4 ACCEPTANCE OF RESIGNATIONS FROM SOLID WASTE MANAGEMENT BOARD (MANN;
LICHTY) AND APPOINTMENT OF RICHARD McCARTY TO BOARD
A-5 RESOLUTION NO. 12-91 AUTHORIZING WORKERS COMPENSATION STIPULATED
JUDGMENT FOR FORMER FIRE ENGINEER PAUL DEIS (WCAB NO. 89 GRO 001033)
A-6 RATIFICATION OF SOLID WASTE MANAGEMENT BOARD GOALS AND OBJECTIVES FOR
1991
A-7 STATUS REPORT ON CITY WATER SUPPLY
A-8 SET DATE (31 JANUARY 1991) FOR JOINT MEETING WITH SAN LUIS OBISPO CITY
COUNCIL CONCERNING SUPPLEMENTAL WATER PROJECTS
A-9 RESOLUTION NO. 08-91 ENACTING 1991 WATER ALLOCATION PROGRAM AND
SETTING ASSOCIATED WATER POLICIES AND INTENTIONS
1
0
B-1 ORDINANCE NO. 388 REVISING COMPOSITION AND TERMS OF OFFICE FOR THE
RECREATION AND PARKS COMMISSION (SECOND READING/ADOPTION)
B-2 COUNTY POLICY STATEMENT REGARDING APPOINTMENT PROCESS OF ADVISORY
BOARDMEMBERS
B-3 APPROVAL AND FUNDING OF PROGRAM FOR PORTABLE TOILET PLACEMENT AND
DIRECTIONAL SIGNAGE ALONG EMBARCADERO
C-1 RESOLUTION NO. 09-91 APPROVING INTERIM LEASE AGREEMENT FOR CONTINUED
USE OF LEASE SITE 113W (SHARON MOORE; VIRG'S DOCK AND BAIT TANKS)
D-1 HEARING ON AMENDMENTS TO GENERAL PLAN/LOCAL COASTAL PROGRAM AND ZONING
ORDINANCE TO REZONE POINT MOTEL PROPERTY FROM OPEN SPACE TO SINGLE
FAMILY DWELLINGS TO ACCOMMODATE TEN (10) RESIDENCES (LCP/GPA/ZOA 09-
90; FRANK DENIS, ET AL, APPLICANTS) FIRST READING/INTRODUCTION OF
ORDINANCE NO. 392
D-2 PUBLIC HEARING ON RESOLUTION NO. 10-91 REVISING CONFLICT OF INTEREST
CODE FOR CITY DESIGNATED EMPLOYEES, MEMBERS, OFFICERS, OR CONSULTANTS
D-3 ORDINANCE NO. 391 ESTABLISHING A 5% BID PREFERENCE FOR LOCAL VENDORS
ON CITY SUPPLIES AND EQUIPMENT (FIRST READING/INTRODUCTION)
D-4 CONSIDERATION OF 1990-91 MID -YEAR CAPITAL IMPROVEMENT BUDGET
D-5 PUBLIC HEARING TO REVIEW RECOMMENDATIONS ON
TASK FORCE
D-6 REQUEST FOR INTERPRETATION OF CITY COUNCIL ACTION TO RESERVE WATER
EQUIVALENCIES FROM PARKS IRRIGATION SYSTEM RETROFIT PROGRAM FOR
WATERMAN CENTER PROJECT (699 EMBARCADERO)
�:��;�•]�1:1�1�ix�Y�
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 - JANUARY 28, 1991
VETERANS MEMORIAL HALL - 6:00 P.M.
Mayor Sheetz called the meeting to order at 6:00 p.m.
PRESENT: Rose Marie Sheetz
John Baker
Ben Luna
Susan Mullen
Tom Wuriu
ABSENT: None
STAFF: Gary Napper
Judy Skousen
Rick Algert
Louise Burt
Ardith Davis
William Farrel
Forrest Henderson
Dave Howell
Nick Nichols
Steve Wolter
Bernie Zerr
Horace Strong gave the invocation,
Allegiance.
Mayor
Councilmember
Councilmember
Councilmember
Councilmember
City Administrator
City Attorney
Harbor Director
Finance Director
City Clerk
Community Dev. Dir.
Asst. City Admin.
Police Chief
Public Works Dir.
Rec. & Parks Dir.
Fire Chief
and led the Pledge of
1. Ann Freeman, 785 Cabrillo, requested Council ask the
City Administrator why Measure H has not been set before the
Council? The election was held on November 6th and the matter is
going to the Planning Commission in February. She asked the City
Attorney explain why a 6-week public input period is required;
the public provided their input when the measure was passed.
2. Nelson Sullivan commented on the interim lease for
Lease Site 113W (Item C-1) and the minimum requirement for $1
million liability policy by the lessee. He stated it is not
enough, and requiring $1 billion is not out of reason. The City
is putting itself in jeopardy by not requiring additional insur-
ance limits.
3. Warren Dorn, 212 Beach Street and President of Morro
Bay Beautiful, encouraged Council to petition the County to adopt
a bird sanctuary ordinance like Morro Bay's so hunters will not
be able to hunt in the Bay.
MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING - JANUARY 28, 1991
PAGE 2
4. Thom White, 484 Rennell and realtor/builder, stated
there are approximately 500 undeveloped lots in Morro Bay, and
almost all are on the waiting list for water. He said property
owners are assessed according to the value of their lot which is
determined by the market. He would not have purchased a lot in
Morro Bay if he had been aware he would not be able to build on
it. He requested Council direct a report be prepared on the
effects of Measure I on undeveloped lots, and seek assessed valu-
ation relief from the County Assessor for the impacts of Measure
I.
f. Mary Phillips commented on a Telegram Tribune article
citing 3 million pounds of recyclables. She objected to the sup-
port of the garbage company with a 50G recycling charge, a raise
in fees, and a raise in fees at the dump. She gave figures on
what Mr. Cattaneo must be making on selling the recyclables he
charges Morro Bay to haul away.
b. Ron Hillman, 420 Harbor, told the Council to get their
stuff together.
Mayor Sheetz asked Mr. Farrel to respond to Ms. Freeman's ques-
tions regarding Measure H. Mr. Farrel stated the initiative
makes several changes to the City's Land Use Plan and Zoning
Ordinance which are explicit; there are also changes to the Gen-
eral Plan and Zoning Maps to rezone a net 13 acre area; that area
is not defined except generally. The Planning Commission and
City Council need to determine the precise location. Before the
item is forwarded to the Coastal Commission, the Commission
requires a 6-week public review period before they can act on an
LCP amendment, irrespective of whether or not it is a people's
initiative. Mr. Farrel stated the same procedure is being fol-
lowed now as with Measure B several years ago.
Mr. Napper reminded Council that although the voters passed Mea-
surel-* on November 6th, it did not officially become law until
the Council adopted a certified canvass of the election on
December 4th.
_m4w4u) 07;g �1!?sue�G7 w
1. Councilmember Luna requested an item be placed on the
agenda for a staff report on what the City is doing to secure
funding for future water projects and what those alternatives
are. Mr. Napper stated he received a written request from Coun-
cilmember Luna for this information, and staff is preparing the
response.
A-1 CITY COUNCIL MINUTES OF THE REGULAR MEETING OF JANUARY 14,
1991
Mr. Napper recommended Council approve the minutes as submitted.
*Corrected 2-11-91, should be "H"
MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING - JANUARY 28, 1991
PAGE 3
A-2 EXPENDITURE REPORT - DECEMBER 1990
Mr. Napper recommended Council approve the Report as submitted.
A-3 STATEMENT OF INVESTMENTS - DECEMBER 1990
Mr. Napper recommended Council accept the Statement for file.
A-4 ACCEPTANCE OF RESIGNATIONS FROM SOLID WASTE MANAGEMENT BOARD
(MANN: LICHTY) AND APPOINTMENT OF RICHARD McCARTY TO BOARD
Mr. Napper recommended Council accept the resignations of Willis
Mann and Dale Lichty from the Solid Waste Management Board, and
appoint Richard McCarty to the Board for the term of office
expiring 31 December 1992.
A-5 RESOLUTION NO, 12-91 AUTHORIZING WORKERS COMPENSATION
STIPULATED JUDGMENT FOR FORMER FIRE ENGINEER PAUL DEIS (WCAB
NO. 89 GRO 001033)
Mr. Napper recommended Council adopt Resolution No. 12-91.
A-6 RATIFICATION OF SOLID WASTE MANAGEMENT BOARD GOALS AND
OBJECTIVES FOR 1991
Mr. Napper recommended Council ratify the Solid Waste Management
Board's goals and objectives for 1991.
A-7 STATUS REPORT ON CITY WATER SUPPLY
Mr. Napper recommended Council receive the report for file.
A-8 SET DATE (31 JANUARY 1991) FOR JOINT MEETING WITH SAN LUIS
OBISPO CITY COUNCIL CONCERNING SUPPLEMENTAL WATER PROJECTS
Council approved the Agenda as submitted and set 31 January 1991
at 7PM for the joint meeting with the San Luis Obispo City
Council.
A-9 RESOLUTION NO, 08-91 ENACTING 1991 WATER ALLOCATION PROGRAM
AND SETTING ASSOCIATED WATER POLICIES AND INTENTIONS
Mr. Napper recommended Council adopt Resolution No. 08-91.
Items A-1 and A-7 were pulled by Councilmembers for separate
discussion.
A-1 CITY COUNCIL MINUTES OF THE REGULAR MEETING OF JANUARY 14.
1991
Councilmember Baker requested page 4 of the minutes, third para-
graph, be amended to read, "Councilmember Baker cautioned Council
not to put too much dependence on Lake Nacimiento as it depends
MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING - JANUARY 28, 1991
PAGE 4
on the same weather -fronts as Morro Bay does. Council needs to
look at sources of water like the State Water Project which
watersheds are subject to a wider range of weather -fronts."
Councilmember Luna stated he wished the minutes to be amended on
page 6, Item B-4, to include, "Councilmember Luna directed staff
to notify the businesses in town when the City was going be doing
anything that would affect their businesses; i.e., reports,
amendments, ordinances."
A-7 STATUS REPORT ON CITY WATER SUPPLY
Councilmember Wuriu asked for a report on the test wells near
Morro Rock. Mr. Nichols stated two of the wells were test -pumped
last week with disappointing results. He was hopeful of receiv-
ing several hundred gallons of water per minute (gpm) per well,
and they are only receiving 100 to 150 gpm per well. He stated
for the desal project, the City needs 2400 to 2700 gpm to be able
to produce 800 gpm of treated water.
Councilmember Baker asked if the water closer to the Rock is pure
sea water? Mr. Nichols stated it is identical to the water in
the Bay.
Councilmember Luna asked why staff has not recommended Level 5
water rationing? Mr. Nichols stated he will probably request
Council adopt Level 5 at their next meeting. He explained recent
problems with various City wells pumping air. The groundwater
situation is worse right now than it was last October.
Councilmember Mullen asked if staff is continuing to work with
Dr. John Alexander on reclamation technologies? Mr. Nichols
stated he is waiting for Dr. Alexander to provide staff with
technical information he has requested to evaluate any pilot
project.
MOTION: Councilmember Baker moved for approval of the Consent
Calendar with the corrections to the minutes as noted.
The motion was seconded by Councilmember Wuriu and
unanimously carried. (5-0)
B.
B-1 ORDINANCE NO. 388--REVISING--COMP-0-
Mr. Napper stated this item is scheduled for second reading and
adoption; it will become effective February 27th. At that time
the Mayor's appointments to the youth and senior positions on the
Commission may begin to serve in office.
MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING - JANUARY 28, 1991
PAGE 5
MOTION: Councilmember Luna moved Ordinance No. 388 be read by
title and number only. The motion was seconded by
Councilmember Baker and unanimously carried. (5-0)
Mr. Napper read Ordinance No. 388 by title and number only.
MOTION: Councilmember Baker moved for the adoption of the sec-
ond and final reading of Ordinance No. 388. The motion
was seconded by Councilmember Mullen and carried with
Councilmember Wuriu voting no. (4-1)
B-2 CITY POLICY STATEMENT REGARDING APPOINTMENT PROCESS OF
ADVISORY BOARDMEMBERS
Mr. Napper stated Council requested staff prepare a Policy State-
ment of rules and guidelines for selection, of advisory boardmem-
bers and qualifications for consideration of appointment by Coun-
cil. He reviewed the six points in the Policy and stated these
guidelines will be attached to applications given to advisory
board candidates.
MOTION: Councilmember Mullen moved Council adopt the Policy
Statement on Guidelines for Selection of Advisory Board
Members. The motion was seconded by Councilmember
Wuriu and unanimously carried. (5-0)
B-3 APPROVAL AND FUNDING OF PROGRAM FOR PORTABLE TOILET PLACE-
MENT AND DIRECTIONAL SIGNAGE ALONG EMBARCADERO
Mr. Wolter stated at Council direction, a program service level
has been identified to place public restrooms on the Embarcadero
at intervals of approximately 1,000 to 1,200 feet. Currently,
facilities are located at Morro Rock, Coleman Park, the North T-
Pier, Waterfront Center, Centennial Parkway, and the Launch Ramp.
In order to fill in gaps in the short-term, staff proposes one
portable toilet be placed at the intersection of Front and Beach
Street, and at the east street -end of Driftwood during seasonal
needs. Mr. Wolter stated public toilets. will eventually be part
of the Waterman Center and Morro Bay Estuary developments in the
long-term. He also reviewed costs for renting and servicing the
units. Council is requested to allocate $2,000 for the rest of
this fiscal year, if they approve the program of renting portable
toilets to meet this service level.
Mr. Wolter also reviewed a proposed signage program to give visi-
tors directions to restrooms, public facilities, and points of
interest. Costs are approximately $5,800 for 12 signs including
placards, which does not include annual sign maintenance esti-
mated at $600 per year.
Mayor Sheetz asked if signs will also be placed in the downtown
area directing people to restrooms on the Embarcadero? Mr.
Wolter stated no, this program targets the Embarcadero area only;
MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING - JANUARY 28, 1991
PAGE 6
however, he will meet with representatives of the Chamber of Com-
merce for their input on where additional signs should be placed.
Councilmember Wuriu asked when the new public restroom at Centen-
nial Parkway will be completed? Mr. Wolter said by May 1st.
Councilmember Wuriu also asked when the portable toilets will be
placed on the Embarcadero? Mr. Wolter said beginning with the
President Holiday in February.
Councilmember Mullen suggested Mr. Wolter also discuss with the
Chamber and other organizations the possibility of sharing costs
on the directional signage.
MOTION: Councilmember Wuriu moved staff be authorized to imple-
ment the temporary portable toilet and permanent visi-
tor signage program in the Embarcadero as proposed;
and, allocate $2,000 for the toilet rental and $5,800
for the signage program from the FY 90-91 Harbor Fund
Contingency. The motion was seconded by Councilmember
Luna and unanimously carried. (5-0)
C.
C-1 RESOLUTION NO, 09-91 APPROVING INTERIM LEASE AGREEMENT FOR
CONTINUED USE OF LEASE SITE 113W (SHARON MOORE: VIRG'S DOCK
AND BAIT TANKS)
Mr. Algert reviewed this item noting the lease on this site
expired December 31, 1990. Negotiations for a new lease have
been going on for several months, but recently stalled. In order
to put a time limit on completion of the negotiations, staff pro-
poses the interim lease at an increased rental rate of
$500/month. The interim lease will terminate on June 30, 1991
and a new lease entered into; or, staff will return to Council
requesting authorization to bid the lease site for competitive
proposals.
MOTION: Councilmember Baker moved for the adoption of Resolu-
tion No. 09-91. The motion was seconded by Councilmem-
ber Wuriu and unanimously carried. (5-0)
D. PUBLIC HEARINGS. REPORTS & APPEARANCES
;//tC�I im Ca :F*hVa`MIT' exj3 v
OPEN SPACE TO SINGLE FAMILY DWELLINGS TO ACCOMMODATE TEN
(10) RESIDENCES (LCP/GPA/ZOA 09-90: FRANK DENIS„ ET AL.
APPLICANTS)
Mr. Napper noted this is not a development application for
approval of houses. It is a zoning amendment only.
Mr. Farrel stated this is a privately -initiated request to amend
the City's General Plan, Local Coastal Plan, and Zoning Ordi-
MINUTES - MORRO HAY CITY COUNCIL
REGULAR MEETING - JANUARY 28, 1991
PAGE 7
nance. Mr. Farrel described the proposed rezoning and develop-
ment plan using overhead drawings and photographs. He stated the
plan recognizes the high visibility of the property and has kept
most of the developable area on the southern portion of the
existing site. There are 2.8 acres that are developable; 60,000
sq.ft. will be developed and the rest will be Open Space. The
application requests a slight increase in residential zoning area
and slight decrease in Open Space zoning. There will be several
public access amenities on the site which are not presently
available, including a shore -line parking lot on the south end of
the property.
Mr. Farrel displayed several drawings showing various groupings
of the houses and stated the Planning Commission preferred a
straight line positioning rather than clustering. The applicant
prefers this determination be left out of the amendment at this
time to give them more flexibility during the concept plan stage
of the project. Mr. Farrel requested Council consider adoption
of the Resolution this evening and continue the hearing for 30
days to give the applicant time to prepare a survey map of metes
and bounds; the Ordinance can be considered at that time.
Councilmember Mullen asked if Council can still determine the
number of buildings on site if we remove the 50 foot lot width
consideration? Mr. Farrel stated the proposed General Plan
amendment specifies not more than 10 residential units.
Mayor Sheetz opened the hearing to the public for comments.
Mike Multari, 641 Higuera and representing the applicant, stated
the current commercial motel use on the site is not performing,
and the property owner would like to change the commercial to
residential which is keeping in character with the neighborhood.
The majority of the site will be Open Space. Mr. Multari illus-
trated the minimal impact to the viewshed using overhead pho-
tographs. He noted no structures will be higher than the 55 foot
elevation above sea level.
Mr. Multari requested Council eliminate the "Class I" bikelane
requirement and leave the type of bikelane to Planning staff when
the concept plan is developed; it may be a Class II bikelane will
be appropriate. Also, the minimum 50 ft. lots should be left for
determination at a later date; they do not know what type of
buildings will be constructed and it will be several years before
any units will be built. He noted one of the neighbors to the
property, the Holts, have a problem with the size of the parking
lot, and Mr. Multari requested the number of spaces required not
be set in writing at this time. He noted the applicant under-
stands Measure F of the City and knows construction of these
units is many years away.
Councilmember Wuriu asked how much space will there be between
each house based on 10 houses for the site? Mr. Multari stated
MINUTES - MORRO BAY CITY COUNCIL
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PAGE 8
it depends on what version the lay -out is selected; it could be a
minimum 10 ft., or as much as 20 ft.
Councilmember Luna asked if Mr. Multari knows what the depth of
the material is that CalTrans left on the site when they were
constructing Highway 1? Mr. Multari believes it is 8 ft. to 10
ft. closest to the motel, and further north it gets more shallow.
He recognizes this will be a challenge to them in the PD grading
phase, but willing to live with that.
Frank Denis, applicant, stated he has been coming to Morro Bay
for 23 years. He desires to make a beautiful entrance to the
City. He complimented the Planning Commission and staff on their
work and wise suggestions.
Bruce Risley asked what is the height of Highway 1? Mr. Multari
stated it varies; approximately 65 ft. where the photo was taken
which is 10 ft. higher than the buildings will be, and a car is
3-4 ft. higher than that.
Larry Kamien, 3400 Toro Lane and neighbor to the property, stated
he supports the proposal; it will be an improvement to the neigh-
borhood. He asked Council to consider 7 or 8 houses for the site
rather than 10. He recommended the parking lot be in the view
area so people can sit in their cars and enjoy the view.
Dana Holt, 3360 Toro Lane, stated his family has owned property
next to the proposed development for 75 years and believes the
plan will be an enhancement to the area. His major concern is
the parking area which is proposed to be located directly behind
his house and only 4 ft. higher than his property. He is con-
cerned lights will shine in his house at night, people will look
into his back yard, people will walk from the parking lot to the
beach through his property. He is concerned about liability and
privacy problems this causes.
Ron Hillman suggested only six houses be allowed so there will be
more space between the houses.
Mary Phillips stated the Point Motel has been on the site for a
long time, and she believes it has a vested right. The proposal
looks like 10 new lots will be created, and she cautioned Council
against doing that. If the motel is demolished the property
should be left as Open Space.
Councilmember Wuriu asked if the applicant would be able to over-
turn the Open Space at some time? Ms. Skousen stated the City
only has to allow the property owner reasonable use of the prop-
erty; it cannot designate the entire area Open Space without
allowing some beneficial use of property.
Warren Dorn, 212 Beach Street, encouraged Council to rezone the
property north of this development from Industrial to open Space.
He also requested the developer be required to underground utili-
MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING - JANUARY 28, 1991
PAGE 9
ties in the area. Ten units are too much for him, and he tends
to agree with comments of the neighbors.
Mayor Sheetz closed the hearing to the public.
Councilmember Luna stated he is concerned about the density of
houses on the site; 6 might be more appropriate than 10.
Councilmember Wuriu said the zoning change should give the devel-
oper the flexibility to come up with something. Councilmember
Mullen said the number of units does not need to be set at this
time; she would like to give the developer the opportunity to
come back with something creative. She likes the plan; it is
very sensitive to the area. She is not in favor of locking the
parking lot into a set location at this stage.
Mayor Sheetz stated it is an excellent project; it has the begin-
nings of a green belt and entry way into the City, and noted it
is not going to be built upon immediately.
MOTION: Mayor Sheetz moved the Resolution and Ordinance be
amended to delete reference to a "Class I" bikepath;
eliminate reference to a specific lot size; and elimi-
nate a specific location for the parking lot at this
time. The motion was seconded by Councilmember Mullen
and unanimously carried. (5-0)
Mayor Sheetz opened the hearing for comments on the amendments.
Mr. Dorn again mentioned a requirement for undergrounding of
utilities. Mr. Multari said it has always been their intention
to underground utilities.
Mary Phillips asked how may water equivalencies the Point Motel
has and if this project will be allowed to proceed before obtain-
ing all water equivalencies? Mr. Farrel stated the motel has
approximately 2' to 3 water equivalencies. If the motel is
demolished and Council amends the ordinance to allow water con-
versation projects, the project may be able to proceed in phases;
some of the equivalencies will have to be obtained another way.
Mary Phillips stated this is not fair to the people waiting in
line for water; leave it in open space and tell them to run the
motel.
Mayor Sheetz closed the hearing to the public.
MOTION: Councilmember Wuriu moved for the adoption of Resolu-
tion No. 11-91 as amended. The motion was seconded by
Councilmember Baker and carried with Councilmember Luna
voting no. (4-1)
MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING - JANUARY 28, 1991
PAGE 10
MOTION: Councilmember Mullen moved the hearing be continued for
30 days. The motion was seconded by Councilmember
Wuriu and unanimously carried. (5-0)
Council recessed from 7:57 p.m. to 8:13 P.M.
Ardith Davis stated the Fair Political Practices Commission has
strengthened their interpretations of the Fair Political Prac-
tices Act to require advisory board members and consultants to
file annual Conflict of Interest Statements. The proposed Reso-
lution brings the City's Code for Designated Employees in compli-
ance with FPPC regulations.
Mayor Sheetz opened the hearing to the public for comments; there
were no comments and the hearing was closed to the public.
MOTION: Councilmember Mullen moved for adoption of Resolution
No. 10-91. The motion was seconded by Councilmember
Baker and unanimously carried. (5-0)
Louise Burt stated the proposed Ordinance was prepared at Council
request; it allows for a 5% bid preference if a vendor has a cur-
rent City business license and pays sales tax that is allocated
to Morro Bay. Also, a definition of recycled goods has been
included in order to enforce bid preference of 108 regarding
recycled goods.
Mayor Sheetz opened the hearing to the public for comments; there
were no comments, and the item was returned to Council.
MOTION: Councilmember Baker moved Ordinance No. 391 be read by
title and number only. The motion was seconded by
Councilmember Wuriu and unanimously carried. (5-0)
Mr. Napper read Ordinance No. 391 by title and number only.
MOTION: Councilmember Baker moved for approval of introduction
and first reading of Ordinance No. 391. The motion was
seconded by Councilmember Mullen and unanimously
carried. (5-0)
Louise Burt reviewed the Available Fund Balance analysis which
shows a total Fund Balance of $1,463,307. After a 10% Reserve
Retention, T-Pier litigation reserve, payment for test wells and
MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING - JANUARY 28, 1991
PAGE 11
reverse osmosis machine, and new County fees, the available bal-
ance is $806,307. She also reviewed a chart of City Fixed
Assets, depreciation, and infrastructure needs. It would cost $8
million per year, the size of the City's current budget, to main-
tain all fixed assets.
Mr. Napper stated the Fixed Asset chart was prepared in response
to an earlier request from Council. With regard to Chart 4,
these recommendations for capital funding are arrived at by the
Budget Team (City Administrator, Assistant City Administrator,
and Finance Director) reviewing requests by Department Heads for
needs in their respective departments. He said the expenditures
are for one-time items, rather than on -going expenditures; due to
annual fluctuations, staff is unable to predict the amount avail-
able each year. He recommended Council also allocate $148,645
from the New Water Production Reserve and $26,942 from the Emer-
gency Water Contingency Fund to the Reverse -Osmosis Treatment
Plant Account.
Since this capital budget recommendation was prepared, the fire-
fighters have made a request Council allocate $15,000 as a one-
time expense to train three firefighters as paramedics.
Mr. Napper reviewed the Capital Improvement Budgets over the last
10 years. He noted the General Fund is down 20% from last year
at this time. There is concern regarding activities in
Sacramento and the authorization to counties to levy fees against
cities and special districts to solve the impacts of the State
Budget on counties. He does not believe this will be a one-time
impact; the State Budget has a short -fall of $6 to $7 billion in
the next 18 month. Mr. Napper indicated there will be dramatic
changes taking place between State, county and city fiscal rela-
tionships. Cities are in better economic shape than counties or
the State. He predicted Proposition 13 will also be examined by
the courts in the 19901s.
Councilmember Baker believes the matter of training firefighters
to be paramedics is worthy of consideration. Mr. Napper stated
the City currently has 3 Emergency Medical Technician II's.
There is an opportunity to send these people to paramedical
training. Mr. Napper referred to Measure G regarding paramedics
which did not pass at the last election noting the Measure was to
include updating equipment and on -going training of personnel as
paramedics. The firefighter's proposal is for training 3 person-
nel only; it does not address what the City was trying to do with
Measure G. He said in order to fund this expenditure, Council
can either delete one or more of the recommended projects in the
capital budget, or allocate funds from the Operating Contingency
in the General Fund.
Councilmember Baker noted if the City does not make application
for this training program by February 7th, we will lose the
opportunity to access the training at the $15,000 cost; it will
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REGULAR MEETING - JANUARY 28, 1991
PAGE 12
cost $45,000 per firefighter after this time according to the
submitted data.
Councilmember Mullen asked if the City has an energy policy in
terms of purchasing vehicles? Mr. Napper stated no.
Mayor Sheetz opened the hearing to the public for comments.
Mary Phillips, 2645 Ironwood, stated she will donate $500 for the
training of paramedics only, and encouraged those belonging to
clubs try to get their organization to contribute towards this
program. She said she did not like the way the ballot measure
was publicized; it was for other things the City owes the public
anyway.
Dave Smith, 1286 Hillcrest and retired anesthesiologist from
Southern California, expressed the necessity for paramedics. He
said one child died in the last few years in Morro Bay, and that
child may have been saved if our personnel were trained
paramedics.
Mayor Sheetz closed the hearing to the public.
Mayor Sheetz asked if Council approved this expenditure, would
the employees with the training expect an increase in salary?
Mr. Napper stated the individuals have agreed not to ask for pay
differential until such time as their contract comes up for
renewal in 1994. He said the firefighters' proposal goes beyond
what is expected and shows the sincerity of the firefighters in
their desire to save lives. It does not ensure the 3 individuals
taking the training will remain with the City; he suggested an
amendment to the classification qualifications of firefighters
that they be qualified paramedics before hired by Morro Bay.
Mayor Sheetz believes the City should go forward with a program
to save lives; and, the best way to fund it is to reduce costs
rather than taking money from a fund the City may need. Perhaps
the lap -top computers in the Police Department can be eliminated.
Councilmember Mullen asked if Council can legally place addi-
tional funds in reserve? Mr. Napper stated yes. Councilmember
Mullen said it is not necessary to spend the total $800,000
available. She suggested the budget be returned to staff with
direction no more than $650,000 be allocated to capital projects.
Councilmember Wuriu asked if reserves can be used for water prob-
lems? Mr. Napper stated most funds are Enterprise Funds, and the
monies within those funds must pay for the services provided by
that fund.
Councilmember Baker was in favor of allocating funds for the
paramedic program, and not returning the budget to staff. He
believes the recommendations have been thoroughly reviewed by
staff and the proposals for expenditures are necessary.
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REGULAR MEETING - JANUARY 28, 1991
PAGE 13
Councilmember Luna suggested in order to pay for the paramedic
program, Council delete $2,000 from the Keiser Park light pro-
ject; $2,000 from patrol vehicles; $1,000 for the replacement
sedan; and the remainder from the ladder truck fund.
Mr. Napper said Council may want to allocate all funds for the
paramedic program from the $50,000 ladder truck allocation. He
noted there is currently $148,000 in the fund, but a truck has
not been found to date.
MOTION: Councilmember Luna moved $15,000 be allocated to a fund
for paramedic training from the ladder truck allocation
of $50,000. The motion was seconded by Councilmember
Wuriu and unanimously carried. (5-0)
Councilmember Mullen stated the City needs an energy policy in
terms of purchasing vehicles; also, there is no policy for pur-
chasing used vehicles. She is concerned $800,000 in expenditures
is planned when the City is looking at a $10 million figure to go
to tertiary treatment at the treatment plant (reclamation), and
monies are needed for reverse osmosis water treatment.
MOTION: Councilmember Mullen moved the Council put a cap on
this budget and staff continue to work on it and come
back at the next meeting with a spending limit of
$650,000, with $150,000 to be allocated to Reserve.
The motion was seconded by Mayor Sheetz.
Councilmember Wuriu asked how she arrived at the $650,000 figure?
Councilmember Mullen stated it is approximately 20% of the pro-
posed allocations for financial management reasons.
Councilmember Wuriu stated staff knows what the City's require-
ments are, and spent a great deal of time and effort on the pro-
posals; to arbitrarily cut it seems unfair.
Councilmember Luna asked if funds left over after purchases are
made could be placed in a capital improvement fund for water?
Mr. Napper stated policy is the monies return to the fund from
which they came.
The motion failed on the following vote:
AYES: Mullen
NOES: Baker, Luna, Wuriu, Sheetz
Councilmember Mullen stated she believes spending $50,000 on a
fire ladder truck is inappropriate; and requested staff return
with a policy on energy to reduce, reuse, and recycle.
Councilmember Baker spoke on the necessity for a fire ladder
truck; he believes the City saves money and lives by providing
the Fire Department with the right equipment.
MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING - JANUARY 28, 1991
PAGE 14
MOTION: Councilmember Wuriu moved the Council approve the Capi-
tal Improvement Budget as amended with regard to one-
time paramedic training. The motion was seconded by
Councilmember Baker and unanimously carried. (5-0)
MOTION: Mayor Sheetz moved Council allocate the remaining bal-
ances in the New Water Production Reserve ($148,645)
and the Emergency Water Contingency Fund ($26,942) to
the Reverse -Osmosis Treatment Plant Account through 30
June 1991. The motion was seconded by Councilmember
Mullen and unanimously carried. (5-0)
D-5 PUBLIC HEARING TO REVIEW RECOMMENDATIONS ON CHILDCARE TASK
FORCE
Steve Wolter stated Council appointed a Childcare Task Force in
the summer of 1990, and they have been working since that time to
examine the needs and problems of preschool childcare services in
Morro Bay. The Task Force members would like to make presenta-
tions to Council.
Julie Loe, 1198 Morro Ave. and Chairman of the Childcare Task
Force, stated the Task Force was aided in their charge by City
Community Development Director Bill Farrel and his Associate Don
Funk; Lynn Shephard, County Superintendent of Schools; materials
from the Economic Opportunity Commission and Cuesta College. Ms.
Loe reviewed the survey concerning childcare needs, and the
results of the survey. For a possible 360 children in Morro Bay
needing preschool care, there are only 97 spots available in
Morro Bay daycare centers. Ms. Loe also reviewed State legisla-
tion under consideration in the area of childcare. She intro-
duced Task Force members Helen Kennedy, Jim McCallum, Susan
Eisenzimmer, Linda Donnelly, and Elizabeth Clarke; each member
spoke briefly about their concerns and interests in childcare in
Morro Bay.
Mr. McCallum pointed out childcare providers are mainly inter-
ested in children, and have a difficult time when it comes to
complying with City rules and regulations. They need leadership
from staff, rather than staff just asking questions. Linda
Donnelly stated the Task Force's charge was to examine preschool
childcare service; however, school age children were also men-
tioned on the survey and need to be considered for before -school
and after -school programs (kindergartners).
Julie Loe thanked Council for their support, and requested they
assign a high priority to their recommendations and set a time -
frame within which they will be accomplished.
Council reviewed the recommendations of the Childcare Task Force
and analysis by staff:
MINUTES - MORRO BACITY COUNCIL
REGULAR MEETING - JANUARY 28, 1991
PAGE 15
Recommendation A:
MOTION: Councilmember Baker moved a policy statement be adopted
to require the business license and land use permitting
processes for child care services to be expedited to a
60-day maximum. The motion was seconded by Councilmem-
ber Mullen and unanimously carried. (5-0)
Recommendation B:
Staff was directed to keep a list of interested volunteers who
desire to serve as a resource to individuals needing assistance
in obtaining a childcare licenses and land use permits required
by the City and State.
Recommendation C:
Staff was directed to provide a brochure outlining the process of
obtaining the necessary permits to provide licensed childcare in
Morro Bay.
Recommendation D:
Council approved the policy statement regarding childcare ser-
vices developed by the Task Force.
Recommendation E:
Council directed an ordinance be prepared to exempt family day-
care providers from business license fees.
Recommendation F:
Council directed an ordinance be prepared to exempt family day-
care businesses licensed up to a total of twelve children from
obtaining additional water equivalencies.
Recommendation G:
Council directed an ordinance be prepared to allow staff to issue
a minor use permit for large family daycare facilities after
proper notice and administrative hearings.
Recommendation H:
Council directed staff prepare an ordinance for family daycare
businesses.
Recommendation I:
Council directed staff prepare an ordinance to allow daycare cen-
ters to obtain water by transferring water equivalencies from an
existing residential or commercial use to the daycare center
site.
Recommendation J:
Staff was directed to return with an ordinance to allow daycare
centers in various zones with a minor use permit to be issued
administratively by staff.
0
MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING - JANUARY 28, 1991
PAGE 16
0
Recommendation K:
Council directed staff to prepare an ordinance modifying the
parking standards for daycare centers.
Councilmember Wuriu asked if staff anticipates any problems with
a 10-12 child daycare center in a residential neighborhood? Mr.
Wolter stated the process will still require neighbors be noti-
fied of the use and the opportunity to be heard.
Councilmember Baker commended the Task Force on their comprehen-
sive and concise report, and for approaching the problem from the
aspect of helping private daycare providers, rather than govern-
ment providing the service.
Mayor Sheetz stated the Task Force produced an excellent report,
and thanked them for the hours of time they spent on the subject.
Councilmember Wuriu said it is a good example of successful citi-
zen participation in local government.
Councilmember Mullen said she hopes the Task Force will become
the support group for the childcare providers. She is very
impressed with their report.
MOTION: Councilmember Mullen moved the Childcare Task Force be
disbanded with a vote of thanks by the City Council.
The motion was seconded by Councilmember Wuriu and
unanimously carried. (5-0)
.1; . . [00 X05; • v .. 001,11= AMR
41
Mr. Farrel stated Council is in receipt of a letter from Mr.
Rogoway representing the Waterman Center Project requesting a
clarification of Council's intent when they took action in
October 1989 to "earmark" water equivalencies from park retrofit
water to this project. The question is whether Council actually
awarded the water, or reserved it for them. If Council merely
intended to reserve the equivalencies and did not actually award
them, the project now falls under Measure I which prohibits allo-
cations of this nature.
Mayor Sheetz opened the hearing to the public.
Dale Mitchell, attorney representing the developer of the Water-
man Center, stated the project includes plans for a restaurant
and this use will be based on the water equivalencies from the
park retrofit. On October 30, 1989, Councilmember Baker made a
motion the water be "earmarked" for the project. The definition
of "earmarked" was not important until the passage of Measure I.
Since the passage of Measure I, his client has attempted to pay
the $32,000 for the water equivalencies, but the City has not
accepted the check. He noted Morro Bay Marina came up with the
MINUTES - MORRO
REGULAR MEETING
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10
BAY CITY COUNCIL
- JANUARY 28, 1991
idea to retrofit parks in order to
cies. Mr. Mitchell said according
cate means to set -apart or earmark.
took action to allocate water for
proceed with the project to include
obtain their water equivalen-
to Webster's Dictionary, allo-
It is their position Council
this project. They wish to
the restaurant.
Bruce Risley, 540 Piney Way, said the staff report talks about
water saved. How can any water be saved when the City no longer
waters the parks? He noted the City accommodated the applicant
by striping north Embarcadero for 400 to 500 parking spaces, and
asked if he has paid for it yet? Mr. Farrel stated he will be
required to pay for the parking when he picks up a building
permit.
Nelson Sullivan agreed with Mr. Risley. When the deal was struck
it was a different world; the thought was retrofitting of parks
would save water, which does not exist any longer. Measure I
prohibits using public facilities' water retrofit savings for
private projects. He also believes the value of something
received should be up for public bid. He reminded Council Mr.
Trapp did not consummate the City's offer at the time of the
action, and it was not until Measure I passed when he thought it
would be a good deal.
Ann Freeman said staff is preparing for Level 5 rationing; there
is nothing to retrofit at the parks. She believes the City
should retrofit the parks when appropriate as the City needs all
the water it can save. At the time Council took their action,
Mr. Trapp said he was not going to pay that kind of money. This
is not the time to give out water.
Ed Biaggini, 1164 Market, said if the conditions of approval are
met, the Waterman project should be allowed to proceed. Allocat-
ing or earmarking has nothing to do with the project approval.
Ron Hillman said if the water situation continues, there will no
longer be green lawns. A task force should decide what the
future is going to be.
Stan Trapp, Visalia and applicant, said the issue is Council
interpretation of their action at the time.
Councilmember Wuriu asked the City Attorney to respond. Ms.
Skousen said the project does not legally have a vested right
until the applicant pulls his building permit. The Use Permit
issued was a discretionary permit. However, she does not know
what Council meant when they used the word "earmark". There was
no time limit set at the time, and the use permit still exists.
If Council did not actually allocate the water equivalencies by
their motion, it is too late to allocate them now. If by earmark
Council meant allocate, the equivalencies should be awarded. She
noted the applicant did offer to pay for the water equivalencies
before Measure I went into effect. Whatever Council decides can
be legally supported.
r
MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING - JANUARY 28, 1991
PAGE 18
Councilmember Baker said he made the motion, and he intended Mr.
Trapp receive the equivalencies if he put in the new water
devices at the park. If his permit is still valid, he is due the
water.
Councilmember Luna stated the equivalencies are still based on
retrofit, and the water should not be allocated until the parks
are retrofitted, which may not happen until it rains and the City
can water the parks. Ms. Skousen concurred.
Councilmember Baker suggested he be allowed to go ahead with part
of the project and let him have the equivalencies at the time the
park is retrofitted.
Mayor Sheetz stated she voted in favor of the motion, and she
intended earmark to mean the water equivalencies were being set
aside.
Councilmember Wuriu said he seconded the motion and believes,
along with Mayor Sheetz, the equivalencies were set aside. He
definitely thought if Mr. Trapp retrofitted the park, he would
obtain the equivalencies. If he did not retrofit the park, he
would not get them.
Mr. Mitchell pointed out the developer offered to do the work,
but the City decided to do the project themselves and charge the
applicant for the water.
Councilmember Luna was concerned about the legalities involved in
earmarking water equivalencies for this project just because Mr.
Trapp thought of the idea, as opposed to people on the waiting
list waiting for equivalencies. Ms. Skousen noted there is no
waiting list for commercial; the same opportunity for park
retrofit water will have to allowed to other commercial projects.
Mr. Rogoway stated their attempt to pay for the equivalencies was
refused, and every attempt to perform the work was refused.
Mr. Napper noted water equivalencies are typically not awarded to
a developer until any retrofitting has been completed. Mr. Trapp
did not pay the fees at the time of Council action; and, in fact,
Council later budgeted monies to retrofit the parks ourselves in
the FY 90-91 Budget. However, the drought situation halted the
City from performing the project.
Councilmember Mullen said it does not appear the applicant was
anxious to retrofit; Measure I has passed, the option no longer
exists.
MOTION: Councilmember Mullen moved the water equivalencies from
the Parks Irrigation System Retrofit Program were
reserved but not allocated or awarded to the Waterman
Center Project, and the water equivalencies are now no
MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING - JANUARY 28, 1991
PAGE 19
longer available because of Measure I. The motion was
seconded by Mayor Sheetz.
Councilmember Baker said this is a great injustice to a developer
who has put thousands of dollars into this project.
The motion carried on the following vote:
AYES: Mullen, Wuriu, Sheetz
NOES: Baker, Luna
E. CLOSED SESSION
E-1 GOVERNMENT CODE SECTION 54956.9(A). CONSTRUCTION INDUSTRY
FORCE ACCOUNT COUNCIL AND PAUL DONNELLY V. CITY OF MORRO
BAY. ET AL. SUPERIOR COURT CASE NO, 69303
MOTION: Councilmember Wuriu moved the meeting adjourn to Closed
Session. The motion was seconded by Councilmember
Baker and unanimously carried. (5-0)
Mayor Sheetz made the Closed Session announcement as cited above.
The meeting adjourned to Closed Session at 10:38 p.m. and
returned to regular session at 11:00 p.m.
F. ADJOURNMENT
MOTION: Councilmember Baker moved the meeting be adjourned.
The motion was seconded by Councilmember Mullen and
unanimously carried. (5-0)
The meeting adjourned at 11:00 p.m.
Recorded by:
ARDITH DAVIS
City Clerk
0
City Of Morro Bay
City Council Agenda
Mission Statement
The City of Morro Bay is dedicated to the preservation and enhancement of the quality of life
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 - JANUARY 14, 1990
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 Hearings items under
Section D) may do so at this time. 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 (CITY COUNCIL)
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 DECEMBER 10, 1990 AND SPECIAL MEETINGS OF
DECEMBER 18, 1990 AND JANUARY 3, 1991
A-2 AWARD OF CONTRACT FOR PROJECT PW 89-13, EMERGENCY POWER GENERATOR FOR
PUBLIC SAFETY REPEATER STATION (SECOND BIDDING)
A-3 REPORT ON MUNICIPAL WATER SUPPLY STATUS
A-4 RESOLUTION NO. 06-91 SUPPORTING ADOPTION OF AB 7, MANDATORY USE OF
MOTORCYCLE HELMETS
A-5 RESOLUTION NO. 04-91 ACCEPTING RIGHT-OF-WAY DEDICATION FOR PUBLIC ROAD
PURPOSES (ZANZIBAR STREET, PARCEL MAP MBAL 89-119)
A-6 REPORT ON ADMINISTRATIVE ISSUANCE OF EMERGENCY COASTAL DEVELOPMENT
PERMIT NO. 70-90E, CITY DRILLING OF DESAL TEST WELLS IN BEACH AREA
A-7 RELEASE OF CHILD CARE TASK FORCE REPORT
B. UNFINISHED BUSINESS
B-1 RESOLUTION NO. 05-91 URGING THE BOARD OF SUPERVISORS TO INITIATE DIS-
CUSSIONS WITH MONTEREY COUNTY REGARDING LAKE NACINIIENTO AS A SUPPLE-
MENTAL WATER SOURCE
B-2 APPROPRIATION OF AITIONAL MONIES FOR CONTINUANCE OF MANDATORY WATER
CONSERVATION ENFORCEMENT, AND DISCUSSION OF ASSOCIATED ENFORCEMENT/
CITATION POLICIES
B-3 ORDINANCE NO. 387 REPEALING EXISTING PROVISIONS OF MUNICIPAL CODE
RELATING TO ANIMALS AND ANIMAL CONTROL, AND REPLACING THE REPEALED
SECTIONS WITH PROVISIONS CONSISTENT WITH THE COUNTY CODE (SECOND
READING/ADOPTION)
B-4 RESOLUTION NO. 07-91 REVISING FIRE LANE AND COMMERCIAL LOADING ZONE
DESIGNATIONS IN AREA SOUTH OF NORTH CITY T-PIER PREVIOUSLY ESTABLISHED
BY RESOLUTION NO. 95-90
C. NEW BUSINESS
C-1 REQUEST FOR RECONSIDERATION OF DESIGNATED REPRESENTATIVES TO REPRESENT
CITY AT COASTAL COMMISSION APPEAL HEARING ON PACIFIC COAST SHOPPING
CENTER PROJECT (WILLIAMS BROTHERS MARKET, INC.)
C-2 REQUEST FOR RECONSIDERATION OF MEETING NIGHT AND TIME FOR REGULAR CITY
COUNCIL MEETINGS
D-1 ORDINANCE NO. 388 REVISING COMPOSITION AND TERMS OF OFFICE FOR THE
RECREATION AND PARKS COMMISSION (INTRODUCTION/FIRST READING)
D-2 RESOLUTION NO. 01-91 ESTABLISHING A NEW STREETS AND TREES COMMITTEE,
AND RESOLUTION NO. 02-91 RECONSTITUTING THE COMMUNITY PROMOTIONS
COMMITTEE
D-3 HEARING FOR PROTEST(S) ON FORMATION OF ASSESSMENT DISTRICT FOR MAINTE-
NANCE OF STORM DRAIN FACILITIES ON LOPERENA RESIDENTIAL SUBDIVISION
(IRONWOOD COURT, TRACT NO. 1231)
D-4 HEARING FOR APPEAL OF PLANNING COMMISSION APPROVAL FOR TIDELANDS PARK
PHASE 2 (CUP 35-89/CDP 62-89, HAGENBACK, DUNLAP, OGLE, LEONHARDT,
CARATAN, APPELLANTS) CONTINUE TO 11 FEBRUARY 1991 1
D-5 REQUESTS FOR SECOND WAIVER IN FIVE (5) YEARS FROM QUALIFYING AS ACTIVE
COMMERCIAL FISHERMEN FOR RETENTION OF CITY SLIPS (SULLIVAN; MCDONALD)
D-6 HEARING ON 1990 ANNUAL WATER REPORT
E. CLOSED SESSION
E-1 GOVERNMENT CODE SECTION 54956.9(A): DEIS V. CITY OF MORRO BAY, WCAB 89
GRO 001033
E-2 GOVERNMENT CODE SECTION 54956.8: REAL PROPERTY NEGOTIATIONS, LEASE
SITE 113W, VIRG'S DOCK AND BAIT TANKS, 1215 EMBARCADERO
F.
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.
MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING - JANUARY 14, 1991
VETERANS MEMORIAL HALL - 6:00 P.M.
Mayor Sheetz called the meeting to order at 6:00 p.m.
PRESENT: Rose Marie Sheetz
John Baker
Ben Luna
Susan Mullen
Tom Wuriu
ABSENT: None
STAFF: Gary Napper
Judy Skousen
Rick Algert
Ardith Davis
William Farrel
Forrest Henderson
Dave Howell
Nick Nichols
Steve Wolter
Mayor
Councilmember
Councilmember
Councilmember
Councilmember
City Administrator
City Attorney
Harbor Director
City Clerk
Community Dev. Dir.
Asst. City Admin.
Police Chief
Public Works Dir.
Rec. 6 Parks Dir.
Reverend Don Carey, Presbyterian Church, gave the invocation, and
Horace Strong led the Pledge of Allegiance.
Ed Biaggini, on behalf of the
ference Bureau, presented Gary
him for his service on the VC
Napper represented the County's
Directors.
B
San Luis Obispo Visitors and Con-
Napper with a plaque commending
during the last two years. Mr.
City Managers on the VCB Board of
1. Nancy Bast, 450 Fairview,
debris around Bayshore Bluffs Park and
struction site. She said the trash c
been emptied in months. Additionally,
on the site throw rocks at the birds.
happen have approached the workers ar
discourtesy. She realized the Park is
tion yet, but certainly the property c
maintain it.
commented on litter and
the Bayshore Village con -
ins and dumpster have not
the construction workers
People who have seen this
d have been treated with
not under City jurisdic-
wner could be required to
Mayor Sheetz stated the Code Enforcement Officer is looking into
the matter of litter on the two sites, and she asked Chief Howell
MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING - JANUARY 14, 1991
PAGE 2
if he will contact the foreman of the construction project and
admonish him concerning throwing rocks at the birds.
2. Imogene Haidet requested to speak on Item D-2 on the
Agenda. Mayor Sheetz stated it is a public hearing item and she
will be able to speak at that time.
3. Bruce Elster stated he would like to comment on item
C-1. Although it is not a public hearing item, they are con-
cerned the applicant was not notified it would be on the Agenda
this evening. As a representative of Williams Brothers Markets,
Mr. Elster said he would appreciate the time to comment when the
item comes before Council.
4. Mary Phillips, 2645 Ironwood, stated Robert Enns is a
member of the Water Advisory Board and she believes he has a con-
flict of interest; he is using his position on the board to con-
vince the City to award water through the desalination project.
Mrs. Phillips also referred to an article in the Vancouver Sun
from Vancouver, Canada dated December 24, 1990 regarding shipping
water from Canada. Council has received a copy of this article,
and she encouraged they make contact with the people to attempt
to get this fresh water for the City.
5. Lynda Merrill, 390 Sequoia, was concerned regarding
excavation work going on in the State Park and trees being cut
down. Mr. Farrel stated the County received a Use Permit and
Coastal Development Permit for the work and staff has attempted
to mitigate erosion. Ms. Merrill is concerned sedimentation will
go into the Bay.
6. Charles Dennis Cutshaw distributed newspaper articles
and editorials to Councilmembers concerning hunting in the Bay.
He urged Council to support efforts to ban hunting in the Bay.
Council is in favor of this action; Mayor Sheetz stated Chief
Howell is attempting to convince our legislative representatives
to take action in this regard. She said she will write a letter
of support in which the Councilmembers may join in signing.
DECLARATION OF FUTURE AGENDA ITEMS
1. Councilmember Luna requested an agenda item be sched-
uled to oppose SB 2557 concerning State cuts in revenues to
cities. Mayor Sheetz noted Council previously took that action
prior to Mr. Luna's seating on the Council.
i�y'Sd�li1�C�34��F ►+Y�i3�7�J�L-1�±:��•7� Ix�3f;��wi
Napper recommended Council approve - u . n a .
MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING - JANUARY 14, 1991
PAGE 3
PWI
Mr. Napper recommended Council award the project to John Black
Electric in the amount of $14,378.40.
A-3 REPORT ON MUNICIPAL WATER SUPPLY STATUS
Mr. Napper recommended Council receive the report for file.
A-4 RESOLUTION NO, 06-91 SUPPORTING ADOPTION OF AB 7, MANDATORY
USE OF MOTORCYCLE HELMETS
Mr. Napper recommended Council adopt Resolution No. 06-91.
A-5 RESOLUTION NO, 04-91 ACCEPTING RIGHT-OF-WAY DEDICATION FOR
PUBLIC ROAD PURPOSES (ZANZIBAR STREET,_ PARCEL MAP MBAL 89-
119)
Mr. Napper recommended Council adopt Resolution No. 04-91.
A-6 REPORT ON ADMINISTRATIVE ISSUANCE OF EMERGENCY COASTAL
DEVELOPMENT PERMIT NO, 70-90E. CITY DRILLING OF DESAL TEST
WELLS IN BEACH AREA
Mr. Napper recommended Council accept the report for file.
A-7 RELEASE OF CHILD CARE TASK FORCE REPORT
Mr. Napper recommended Council receive the Report and set 28
January 1991 as the date for public hearing on the Report.
Councilmember Luna offered a correction to the Minutes of
December 10, 1990, page 11. "Friends of the Library" should be
changed to "Friends of the Pool".
MOTION: Councilmember Wuriu moved for approval of the Consent
Calendar as recommended including the correction to the
minutes of December 10, 1990. The motion was seconded
by Councilmember Mullen and unanimously carried. (5-0)
B. UNFINISHEDBUSINESS
RESOLUTION NO, 1.' a :`;_R• OF SUPERVISORS TO
• • WIVV v .Y_ -: " . • JAY. . •
NACINIENTO AS A SUPPLEMENTAL WATER SOURCE
Mr. Napper stated this item is presented at Council direction to
support the efforts of the Nacimiento Regional Water Management
Advisory Committee and to preserve Lake Nacimiento for water uses
in San Luis Obispo County. Recently, Monterey County has taken
MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING - JANUARY 14, 1991
PAGE 4
several actions which could jeopardize this water source for
local use.
Councilmember Wuriu stated he understands the Committee appearing
at the last Council meeting was primarily interested in preserv-
ing Lake Nacimiento for recreational purposes. Since Morro Bay's
primary interest in the Lake is as a water source, is there any
way adoption of the Resolution could be misrepresented? Mr.
Napper stated while there is always a potential for misrepresen-
tation, the Resolution is clear support for Nacimiento Reservoir
as a supplemental source of water for Morro Bay.
Councilmember Wuriu requested the minutes show City Council's
support of the Committee is in reference to Lake Nacimiento as a
supplemental source of drinking water.
Councilmember Baker cautioned Council not to put too much depen-
dence on Lake Nacimiento as it depends on i^aifrfei3--jest-33�c�*
Morro --Bay. Council needs to look at sources of water like the
State Water Project.
MOTION: Councilmember Luna moved for the adoption of Resolution
No. 05-91. The motion was seconded by Councilmember
Baker and unanimously carried. (5-0)
B-2 APPROPRIATION OF ADDITIONAL MONIES FOR CONTINUANCE OF
MANDATORY WATER CONSERVATION ENFORCEMENT, AND DISCUSSION OF
ASSOCIATED ENFORCEMENT$fCITATION POLICIES
Mr. Napper stated Council requested the item of extending the
Code Enforcement Officer's contract to the end of the fiscal
year, and possibly stepping -up enforcement of water conservation
violators be scheduled for discussion. Mr. Napper stated funds
are available in the Engineering Budget to continue the Code
Enforcement Officer's position through June 30th.
Mr. Napper reviewed statistics on mandatory water conservation
violators, and stated no necessity exists to alter the City's
enforcement policies. He believes education and awareness of the
program is more productive than citation and litigation. The
process as it currently exists is working; only 7% of the
reported cases have required a certified mail letter to correct,
and those letters produced 100% compliance.
Mayor Sheetz asked when staff determines citation is necessary,
is Council approval required? Mr. Napper stated the Municipal
Code already allows staff to cite. There was discussion regard-
ing the practices of chronic abuses of the program, and the
proper time to issue a citation.
Councilmember Luna asked if there is a cut-off point after which
staff does issue citations? Mr. Napper stated it is a judgment
*Corrected 1-28-91 meeting, insert "the same weather -fronts as
Morro Bay does."
MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING - JANUARY 14, 1991
PAGE 5
call and depends on the severity of the situation. It is consid-
ered on a case -by -case basis.
MOTION: Councilmember Wuriu moved Council re -allocate $8,300 to
the part-time temporary Water Conservation Enforcement
Program from compensation savings occurring in the FY
1990-91 Engineering Budget for continuance of the
enforcement program through 30 June 1991. The motion
was seconded by Councilmember Baker and unanimously
carried. (5-0)
•:�_�._v �• .: jSLerj I&j • Z&B • Mally_
Mr. Napper stated Council approved first reading of Ordinance No.
387 at their last meeting. The Ordinance has been amended at
Council direction to delete the prohibition against leashed dogs
in public parks. This amendment will cost approximately $900 in
park signage changes, and he requested Council allocate these
funds from the General Fund Contingency.
Councilmember Luna suggested the Ordinance should be amended to
have a trial period allowing dogs on leashes in parks; perhaps
three or four months? Councilmember Wuriu stated if there are
problems, staff can return the matter to Council for amendment.
He is sure there will be numerous complaints if it does not work
out.
Councilmember Mullen expressed the hope dog owners would come
forward to help with the costs for new signs required because of
this amendment; $900 is a lot of money to spend.
MOTION: Councilmember Baker moved Ordinance No. 387 be read by
title and number only. The motion was seconded by
Councilmember Mullen and unanimously carried. (5-0)
Mr. Napper read Ordinance No. 387 by title and number only.
MOTION: Councilmember Baker moved for the adoption of the sec-
ond and final reading of Ordinance No. 387. The motion
was seconded by Councilmember Wuriu and unanimously
carried. (5-0)
MOTION: Councilmember Baker moved Council allocate $900 from FY
90-91 General Fund Contingencies to purchase 30 new
park regulation signs. The motion was seconded by
Councilmember Mullen and unanimously carried. (5-0)
*
MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING - JANUARY 14, 1991
PAGE 6
Chief Howell stated he met with Ms. Williams who owns the Salt
Water Taffy business near the North City T-Pier, and discussed
her concerns. She wants a loading zone in front of her business,
and the City to move the fire lane to the other side of the
alley, closer to the wharf. This would require the fire lane to
weave back and forth through the alley -way, and Chief Howell
stated this is unacceptable, and Ms. Williams has public parking
to use approximately 10 feet away adjacent to her store. The
overriding concern is public safety and the necessity of getting
fire equipment to the area if needed. He recommended Council
adopt the Resolution as proposed.
Councilmembers stated they have individually discussed the issue
with Ms. Williams, and asked various questions to which Chief
Howell responded. It was noted Ms. Williams believes preferen-
tial treatment is being given to the other leaseholders.
MOTION: Councilmember Luna moved for the adoption of Resolution
No. 07-91. The motion was seconded by Councilmember
Mullen and unanimously carried. (5-0)
C. NEW BUSINESS
_ • - • S • + - � -7TiF � � � ��H�I:F�]��:i_�7Si_�3�Y1�iti�Fiii��i'•
. ..73
Mr. Napper stated on November 26th, the City Council appointed
City Attorney Judy Skousen and Community Development Director
Bill Farrel to attend the appeal hearing on the Williams Brothers
project in order to represent the City's approval of that pro-
ject. Since that time, a new Council has been seated, and Coun-
cilmember Mullen requested this subject be agendized for recon-
sideration.
Councilmember Mullen stated she prefers not to spend the money to
send anyone to the appeal hearings. Given the passage of Measure
H and her election to office because of her support of Measure H,
she is not in favor of City representation at the hearings.
Councilmember
Luna agreed with
Councilmember Mullen.
The appeal
is between a
private business
and private citizens
and the City
does not need
to spend the funds to get involved.
Councilmember Baker disagreed. He said the project and vesting
map were legally approved by the Planning Commission and City
Council, and their actions should be represented. Councilmember
*Corrected 1-28-91 meeting, insert "Councilmember Luna directed staff
to notify the businesses in town when the City was going to be doing
anything that would affect their businesses; i.e., reports, amend-
ments, ordinances."
MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING - JANUARY 14, 1991
PAGE 7
Wuriu agreed with Councilmember Baker; the actions on appeal to
the Coastal Commission are legal and proper actions. He believes
it is unfair and wrong to deny an explanation of what the City
did at the time.
Mayor Sheetz stated in the past, the Mayor customarily attends
meetings on behalf of the City; she volunteered to represent the
City before the Coastal Commission on this issue.
MOTION: Councilmember Mullen moved Mayor Sheetz attend the
Coastal Commission hearing to represent the City on the
Williams Brothers' appeal hearing. The motion was sec-
onded by Councilmember Luna.
Councilmember Wuriu stated Bruce Elster requested time to address
Council on this issue. Mayor Sheetz stated it is not Mr.
Elster's concern who the City sends to the appeal hearing.
The motion carried with Councilmember Baker voting no.
(4-1)
Councilmember Mullen, requestor of the item, moved this
matter be tabled. It was seconded by Mayor Sheetz and
the motion was unanimously carried. (5-0)
Mr. Wolter stated Council requested staff prepare an amendment to
the ordinance regarding the Recreation and Parks Commission to
stagger their terms of office; and, to allow the Mayor rather
than the City Council to appoint the two special group commis-
sioners (youth and senior). Mr. Wolter detailed how the terms of
the Commissioners are revised in the Ordinance, and stated the
Mayoral appointments are for two-year terms to coincide with the
election of the Mayor. He noted several years ago the Mayor made
these appointments; however, at that time the senior and youth
were ex-officio members only, and did not have voting powers on
the Commission.
Mayor Sheetz opened the hearing to the public for comments.
Gary Gillman, 404 Fairview, stated he currently serves as the
youth representative to the Recreation and Parks Commission and
his term does not expire until December 1992. He asked if he
will be allowed to finish his term? He noted if he knew Council
MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING - JANUARY 14, 1991
PAGE 8
was planning to terminate his term in office, he would have
applied for one of the vacancies on the Commission during
December's recruitment period. Mayor Sheetz noted advisory board
members serve at the pleasure of the City Council.
Councilmember Wuriu stated he believes people are usually allowed
to serve out their term of office. He noted "B" Rohan is the
senior appointee and in the same position as Mr. Gillman. He
requested Council amend the Ordinance to allow them to serve the
remainder of their term.
Nancy Bast stated there is precedent for Council action; four
years ago, the Reddell Council dismissed all members of the Har-
bor Commission and let people re -apply.
Gary Gillman reiterated if Council had advised him of these cir-
cumstances earlier, he would have had an opportunity to apply for
one of the other vacancies on the Commission.
Mayor Sheetz stated in the past, the Mayor has had the discretion
to appoint these positions. There are instances in the past
where her predecessors took similar action.
Councilmember Wuriu stated the fact it has happened before does
not make it right. He agrees with staggering the terms of office
on the Commission, and with allowing the Mayor to make these
appointments. However, there is no reason to let Mr. Gillman and
Ms. Rohan go unless there is some malfeasance in office.
Councilmember Baker agreed with Councilmember Wuriu; he has no
argument with allowing the Mayor to appoint the positions, but
does not believe the two in office should be terminated.
Councilmember Mullen asked if the commissions involved in Council
actions this evening had been notified of the changes? Mr.
Wolter stated the Commission was advised of Council plans, but
not how it would affect them individually. Councilmember Mullen
remarked she supports the idea and has not heard of these con-
cerns before; there appears a tendency in the past to disband and
reorganize.
MOTION: Councilmember Mullen moved Ordinance No. 388 be read by
title and number only. The motion was seconded by
Councilmember Luna and unanimously carried. (5-0)
Mr. Napper read Ordinance No. 388 by title and number only.
MOTION: Councilmember Mullen moved for approval of introduction
and first reading of Ordinance No. 388. The motion was
seconded by Mayor Sheetz and carried with Councilmem-
bers Baker and Wuriu voting no. (3-2)
MINUTES - MORRO BAY CITY COUNCIL
PAGE 9
• .e_y_ •. ,� • ,
MUNITY PROMOTIONS COMMITTEE
Mr. Mapper stated both the Street Advisory Committee and the Com-
munity Promotions Committee have been advised of the proposed
changes to their respective committees. He stated Resolution No.
01-91 incorporates tree responsibilities into the Street Advisory
Committee and it is renamed the Streets and Trees Committee with
seven members and specific terms of office. Resolution No. 02-
91, according to Council direction, establishes the Community
Promotions Committee to specify the Council appoints the members
and establishes terms of office. Previously, the respective
organizations (Merchants Association; Motel/Restaurant Associa-
tion; Waterfront Leaseholders Association; Chamber of Commerce)
designated which of their members would be on the committee. The
Resolution retains the organization categories.
Mr. Mapper noted both resolutions disband the current committees
and applicants will be solicited for the reorganized committees.
Mayor Sheetz opened the hearing to the public.
Imogene Haidet, 2861 Juniper, noted the article in the newspaper
regarding the Rotary Club's donation of trees to the City. She
requested Council postpone the planting and reconsider the type
of trees to be planted in Morro Bay. Both the flowering eucalyp-
tus and the yellow acacia are very detrimental to people with
allergies.
Betty Reynolds, 421 Nassau, stated she has the same concern
regarding allergies. She requested Council not plant the trees
until this item can be agendized or perhaps discussed by the
Streets and Trees Committee.
Mayor Sheetz stated she spoke with the President of the Rotary
Club and requested the tree planting be postponed until this mat-
ter can be discussed further. She stated the planting will not
take place this month.
Nancy Bast asked if this Committee will be making recommendations
on a general tree policy or just trees on public property?
Mary Phillips stated every tree draws 50 gallons of water a day
from the ground.
Mayor Sheetz closed the hearing to the public.
Mayor Sheetz asked what was the scope of the Tree Committee in
the past? Mr. Mapper noted a Citizens' Tree Committee existed in
1966 and they established a list which assigned trees to various
MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING - JANUARY 14, 1991
PAGE 10
zones throughout the City. Since that time, there have been some
changes, but the red flowering eucalyptus remains.
Councilmember Mullen stated she is in favor of both resolutions.
She commended the people who have served on these committees and
urged them to reapply for the reorganized committees.
MOTION: Councilmember Wuriu moved for the adoption of Resolu-
tions No. 01-91 and 02-91. The motion was seconded by
Councilmember Mullen and unanimously carried. (5-0)
D-3 HEARING FOR PROTEST(S) ON FORMATION OF ASSESSMENT DISTRICT
Mr. Nichols stated Council previously approved the Tentative
Tract Map for this 13-lot single family residential subdivision.
One of the conditions of approval requires the developer to form
a property owners' assessment district to pay for the operation
and maintenance of storm drainage improvements. A Notice of
Intention to form the district has been issued by the Council,
and this evening's meeting is to hear protests on the formation
of that district; no protests have been received to date. Mr.
Nichols noted only property owners in the district will be
assessed.
Mayor Sheetz stated Council is in receipt of a letter from Mr.
Bard with some questions concerning the District. Mr. Nichols
deferred to Bruce Elster, project engineer, to answer the ques-
tions. Mr. Bard stated he owns property on Bayview Avenue and
his questions concern how this assessment district will affect
him.
Mr. Elster stated he represents Mr. Loperena on this matter and
noted Mr. Bard's questions do not constitute a protest. 1) Mr.
Bard wanted to know how much grading is necessary on the north-
west corner for the water to flow south to the drain. Mr. Elster
stated the northwest corner of the property will be graded; the
plans prepared and submitted have been approved and certified.
They are not raising the corner at all. 2) No retaining wall will
be erected; the grade will be groomed and planted with vegeta-
tion. There will be a swale lined with truff blocks. 3) Mr.
Bard wanted to know if the system is of sufficient size not to
overflow at the low corners. Mr. Elster stated the City code
requires a system to hold a 25-year storm; this drainage has been
designed to sustain a 100-year storm. 4) The property owners
will be required to maintain the drainage system; if they do not,
the City will maintain it and charge the property owners through
their tax bills. 5) There will be no fence. Mr. Elster stated
the property is located where there is a flood problem, and the
drainage system has been designed to correct the problem. Mr.
MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING - JANUARY 14, 1991
PAGE 11
Bard will see less water across his property than he ever has
before.
Mr. Bard asked if a child could drown in the swale? Mr. Elster
stated the swale is designed so a child can crawl out, and there
will be no pooling of water in the drain.
Mayor Sheetz closed the hearing to the public.
Mary Phillips asked if the City or the developer is going to pay
for the improvements? Mayor Sheetz stated it is an assessment
district; the developer will install the improvements and the
subsequent property owners will pay the maintenance and operation
costs.
MOTION: Councilmember Wuriu moved for the adoption of Resolu-
tion No. 03-91. The motion was seconded by Councilmem-
ber Luna and unanimously carried. (5-0)
Mr. Napper stated the City has received requests from all appel-
lants to continue this matter to February llth.
MOTION: Councilmember Luna moved this item be continued to
February llth. The motion was seconded by Councilmem-
ber Wuriu and unanimously carried. (5-0)
ff-i" N rp WIX Y- I 9
Rick Algert reviewed harbor mooring slip regulations and how the
definition of commercial fisherman and determination of waivers
was developed over the years. The law requires an individual
meet the definition of commercial fisherman in order to rent a
mooring slip from the City. There is one waiver allowed in a 5-
year period, and this has been used by Mr. Sullivan in 1986, and
Mr. McDonald in 1989. The Ordinance does not allow further
administrative waivers.
Mayor Sheetz asked how long is the waiting list for slips? Mr.
Algert stated there are 22 on the waiting list; he noted some may
no longer be interested in a City slip. He also noted there may
be other fishermen who cannot qualify this year.
Nelson Sullivan reviewed the letter he submitted requesting an
additional waiver. He said he has been a commercial fisherman
for 27 years, and he is still a commercial fisherman. He
MINUTES - MORRO BAY CITY COUNCIL
REGULAR MEETING - JANUARY 14, 1991
PAGE 12
detailed the necessity for his first waiver; and, difficulties
since that time. Mr. Sullivan stated the Ordinance language has
problems and is not enforceable in its present state. He said
there is a lot more to fishing than catching and selling fish;
the IRS is kinder than the City in allowing income averaging.
Phillip Simon, attorney for Mr. McDonald, stated Council has been
provided with medical records of Mr. McDonald proving he was
incapacitated last year due to a heart condition. Mr. Simon
stated the City's regulations allow for only one waiver in a five
year period. He maintained Mr. McDonald received a waiver in
1989 for the period 1985 through 1989. The waiver he is request-
ing now is for the period 1990 through 1995. Mr. Simon stated
this is a reasonable interpretation of the Code. He said it
would be an economical hardship for his client to lose his com-
mercial space. He suggested Council alter the regulations to
allow for hardship exemptions.
Ken Wise, commercial fisherman, stated the City should have a
provision for emergencies; there are too many variables in life.
The regulations need to be reviewed with common sense in mind.
Councilmember Luna stated he sympathizes with Mr. Sullivan and
Mr. McDonald, and believes the ordinance should allow for hard-
ships of a medical nature. He said if the 22 people on the wait-
ing list were concerned about getting a slip, they would be at
the meeting protesting the waiver requests.
Councilmember Wuriu agreed the Ordinance should be reviewed. Mr.
Algert suggested Council defer action on the waiver requests for
90 days and refer the Ordinance to the Harbor Advisory Board for
recommendations. Mayor Sheetz noted she does not accept the 5-
year theory of Mr. Simon.
MOTION: Mayor Sheetz moved Mr. Sullivan and Mr. McDonald be
granted a 90-day waiver, and the matter be referred to
the Harbor Advisory Board for recommendations on amend-
ment of the ordinance. The motion was seconded by
Councilmember Wuriu and unanimously carried. (5-0)
The Council took a break from 8:13 p.m. to 8:25 p.m.
D-6 HEARING ON 1990 ANNUAL WATER REPORT
Mr. Farrel stated Council was provided the Annual Water Report on
December loth. The report has since been reviewed by the Plan-
ning Commission, Water Advisory Board, Department Heads, City
Administrator and City Attorney. Mr. Farrel reviewed current
conditions and recommendations for 1991.
Mayor Sheetz opened the hearing to the public for comments.
MINUTES - MORRO BA•CITY COUNCIL •
REGULAR MEETING - JANUARY 14, 1991
PAGE 13
Ann Freeman, 785 Cabrillo Place, reminded Council the 72+ units
at Bayshore Village will begin using water this year. She asked
what provision is there to accommodate this new water use in a
50-year drought?
Dave Smith, 1286 Hillcrest, commented the City Council previously
tabled an item of discussion regarding conversion of water equiv-
alencies. Mayor Sheetz stated the item was postponed until after
we received some rain; there has been some rain and now she
intends to resurrect the matter.
John Berta stated he is a property owner in Morro Bay attempting
to obtain water so he can build. He said he is an individual
trying to build a home; not a development company. He encouraged
Council to approve staff recommendation #5 to develop supplemen-
tal water.
Tom Courtney, architect representing Alta Morro, supported recom-
mendation #6 to allow on -site conversion of water uses. He main-
tained their project will actually use less water than the pre-
sent use.
Nelson Sullivan stated he would answer questions concerning Mea-
sure I since he is the author. The word "contract" seems to be a
problem for staff; he said contract means "agreement", nothing
more. Mr. Napper suggested Mr. Sullivan take staff's questions
and provide written responses to them in the interest of saving
time and money. Ms. Skousen stated while Mr. Sullivan's inter-
pretation of Measure I is helpful, Council should also consider
how the voters interpreted the measure when they voted.
Mayor Sheetz asked Mr. Sullivan to provide Council with written
responses to the questions posed by staff. Councilmember Mullen
also requested Mr. Sullivan provide what his intention was when
he wrote the law rather than referring to dictionary definitions.
Randy Ruff maintains People's Self -Help Housing Corporation is a
non-profit corporation; not privately held. Also, people can
retrofit all they want; they just cannot use any supposed savings
for earning water equivalencies.
Nancy Bast did not believe Council should try to find out how the
people thought when they voted for the Measure; Council has to
assume they took it at face value which seems clear enough.
Don Smith informed Council' of a toilet he can sell to people
which only uses 1 quart of water for flushing liquid waste.
John Berta asked why Council is asking Mr. Sullivan to interpret
the Measure? It says what it says, and it is not his interpreta-
tion alone.
MINUTES - MORRO BAY CITY COUNCIL •
REGULAR MEETING - JANUARY 14, 1991
PAGE 14
Mayor Sheetz closed the hearing to the public.
MOTION: Councilmember Wuriu moved Council set the 1991 residen-
tial dwelling rate at 70 units total (50 single family,
20 multiple family. The motion was seconded by Coun-
cilmember Mullen.
It was noted this was set for the purposes of Measure F only; it
does not mean allocations will be made.
Councilmember Luna noted Council previously earmarked 13 units of
water from to -be -retrofitted City parks for Stan Trapp's project.
Is it possible for someone to apply for a construction permit and
have water allocated to them at a future time based on Measure F?
Mr. Farrel stated staff continues to process permits, but cannot
make water allocations until water is available. Mr. Nichols
stated according to Measure I, allocation of water from
retrofitting public facilities is prohibited.
The motion carried with Councilmember Luna voting no.
(4-1)
MOTION: Councilmember Baker moved no new water allocations be
awarded in 1991. The motion was seconded by Coun-
cilmember Mullen and unanimously carried. (5-0)
Councilmember Mullen asked what happens if the city loses CMC
water which is figured into the annual dry yield? Mr. Nichols
stated it could be devastating on the City's water supply in
drought years. By allocating only dry -year yield of groundwater
basins, Council is directing staff to prepare for their consider-
ation the amount of ground water the City depends on to be avail-
able to supply the City with water. The figure will be used by
Council to decide, when supplemental water is available, how much
should be used to catch up to the demand before allocation to new
uses.
Councilmember Wuriu asked what is the practical significance of
this information? Mr. Nichols this information would answer the
question of how much new water do we need to get out of water
conservation.
MOTION: Councilmember Wuriu moved Council allocate only dry -
year yield of groundwater basins. The motion was sec-
onded by Councilmember Luna and unanimously carried.
(5-0)
Mayor Sheetz commented recommendation #3, which mandates retrofit
of existing buildings to continue reducing demand to match the
available supply, may be too much for some households to afford.
Mr. Farrel agreed it is a hardship, but the City is in a hardship
water situation.
MINUTES - MORRO BAY CITY COUNCIL •
REGULAR MEETING - JANUARY 14, 1991
PAGE 15
Mayor Sheetz asked for the Water Advisory Board recommendations
regarding large water users. Mr. Nichols stated they are study-
ing the subject. He noted the Water Advisory Board recommenda-
tion on the retrofitting item is to require retrofitting only
upon sale or change of ownership. Mr. Nichols stated the water
saved from this practice will not be allocated for building.
Mayor Sheetz was not in favor of imposing an additional expense
on the people creating a worse situation for the economy of our
community.
Councilmember Mullen also was not in favor of mandating
retrofitting; she believes the voluntary program is going well.
She said attention should be given to the large volume water
users.
Councilmember Wuriu preferred requiring retrofit on sale or
change of ownership of a house. He wondered if the City should
pay these costs.
MOTION: Mayor Sheetz moved retrofitting be mandated upon sale
or change of ownership of a building. The motion was
seconded by Councilmember Luna and unanimously carried.
(5-0)
Mr. Napper noted some of these motions will not go into effect
immediately; staff will return with enabling resolutions or ordi-
nances as appropriate to enact these intentions.
MOTION: Councilmember Mullen moved staff immediately complete
contingency plans for a short -duration emergency water
supply project in case the present drought continues.
The motion was seconded by Councilmember Wuriu and
unanimously carried. (5-0)
MOTION: Councilmember Baker moved staff continue diligent
efforts to develop supplemental and replacement water
resources. The motion was seconded by Councilmember
Wuriu and unanimously carried. (5-0)
Councilmember Luna asked if this included identifying funding for
projects? Council said it is understood to include funding.
With regard to on -site conversions, Mayor Sheetz said it is
important to keep something going on in the community with regard
to building. She is not in favor of allowing additional water
for building, but believes allowing conversion of uses like the
Alta Morro project would be good for the community. Councilmem-
ber Luna agreed as long as it does not use additional water. It
would create new jobs and upgrade the community. Mr. Napper
MINUTES - MORRO BACITY COUNCIL •
REGULAR MEETING - JANUARY 14, 1991
PAGE 16
noted conversions would only be allowed priority in the years
when Council does not allocate new water to projects.
MOTION: Mayor Sheetz moved the water operating procedures be
modified to allow on -site conversion of uses. The
motion was seconded by Councilmember Wuriu and unani-
mously carried. (5-0)
Mr. Nichols stated the City has received 2 to 3 proposals from
private developers to allow them to develop their own water
sources to serve the projects. Presently, the City does not have
guidelines to consider and analyze these requests.
MOTION: Mayor Sheetz moved this item be tabled until such time
as the City Attorney can provide the Council with
guidelines and information. The motion was seconded by
Councilmember Wuriu and carried with Councilmember Luna
voting no. (4-1)
Councilmember Baker requested the subject of transferring water
from one property to another be re -scheduled for Council discus-
sion. Council concurred.
• h}. 1. � _ h•1_ .. _. _ •. • _ • .•._.•
•
E-2 GOVERNMENT CODE SECTION 54956.8: REAL PROPERTY NEGOTIATIONS.
LEASE SITE 113W. VIRG'S DOCK AND BAIT TANKS, 1215
EMBARCADERO
MOTION: Councilmember Wuriu moved the meeting be adjourned to
Closed Session. The motion was seconded by Councilmem-
ber Mullen and unanimously carried. (5-0)
Mayor Sheetz announced the Closed Session items.
The meeting adjourned to Closed Session at 9:26 p.m. and returned
to regular session at 9:50 p.m.
F. ADJOURNMENT
MOTION: Councilmember Baker moved the meeting be adjourned.
The motion was seconded by Councilmember Mullen and
unanimously carried. (5-0)
The meeting adjourned at 9:50 p.m.
Recorded by:
ARDITH DAVIS
City Clerk
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MINUTES - MORRO BAY CITY COUNCIL
SPECIAL MEETING - JANUARY 3, 1991
CITY HALL CONFERENCE ROOM - 6:00 P.M.
Mayor Sheetz called the meeting to order at 6:00 p.m.
PRESENT: Rose Marie Sheetz
John Baker
Ben Luna
Susan Mullen
Tom Wuriu
ABSENT:
STAFF:
PUBLIC COMMENT
None
Gary Napper
Mayor
Councilmember
Councilmember
Councilmember
Councilmember
City Administrator
Mayor Sheetz stated it is a City policy that applicants who do not
show for interviews are not considered for appointment. She also
wished Council to establish a policy that, individuals must serve a
full -term on the Board or Commission they, are appointed to or resign
their current Board position before applying for other City Boards or
Commissions.
Councilmember Mullen asked if this shouldkbe written -up as an official
Council Policy Statement? Mr. Napper responded yes, and that he would
prepare such at a future Council meeting for adoption. Councilmember
Wuriu suggested Council also consider a limit on the number of consec-
utive terms an advisory board member may serve on the same board.
D-1 INTERVIEW SCHEDULE _FOR_8OARUS_AX[D__COMMISS
Mayor Sheetz announced 4 vacancies exist on the Water Advisory Board
as John Malmquist has missed at least 3 consecutive meetings; the
Water Advisory Board By -Laws state a member is automatically off if
this happens. Mayor Sheetz desired this policy of attendance at meet-
ings be enacted universally for all Boards.
For the two vacancies on the Harbor Advisory Board, Councilmembers
interviewed the following: Roger Ewing, Jody Giannini, Alfred Lutz,
Don Lockwood, and Carolyn Carr. William Raflowski was an applicant
but unable to attend because he was out of town.
Planning Commission applicants for 2 vacancies were Bernard Melvin,
Ernest Maltby, Alfred Lutz, Howard Smith, Robert Hearsey, and Sonny
Baldwin. Charles Slover did not appear for the interview.
MINUTES - MORRO BAY C•Y COUNCIL 10
SPECIAL MEETING - JANUARY 3, 1991
PAGE 2
Council interviewed applicants for the Recreation and Parks Commission
for the 4 vacancies: Colby Crotzer, Jim Hartzell, Dixon Hafley,
Sandra Young, Robert Hearsey, Sonny Baldwin, and Geoff Moreland.
David Morrow was interviewed for the Solid Waste Management Board;
there are 2 vacancies on this Board.
TV Franchise & Services Board applicants for 1 vacancy were Elizabeth
Gonzalez, Forney Hosey, Robert Hearsey, and Alfred Lutz. Louis McCann
did not show for the interview.
Water Advisory Board applications for 4 vacancies were Bruce Risley,
Herbert Haley, Arby Kitzman, Edwin McCracken, and Alfred Lutz.
Council discussed the applicants and made the following appointments:
Water Advisory Board: Bruce Risley, Herbert Haley, Arby Kitzman, and
Edwin McCracken
TV Franchise & Services Board: Elizabeth Gonzalez
Solid Waste Management Board: David Morrow
Recreation and Parks Commission: Jim Hartzell, Geoff Moreland, Sandra
Young, and Sonny Baldwin. Mayor Sheetz noted her intent to appoint
Dixon Hafley as the Senior representative to the Commission, and
Colby Crotzer as the Youth representative, once the Ordinance is
amended to provide these two mayoral appointments.
Planning Commission: Bernie Melvin; Ernest Maltby
Harbor Advisory Board: Jody Giannini; Don Lockwood
Council requested staff ask Roger Ewing if he would be willing to
serve on the Solid Waste Management Board.
MOTION: Councilmember Luna moved for the approval of the advisory
board appointments as listed. The motion was seconded by
Councilmember Baker and unanimously carried. (5-0)
F. ADJOURNMENT
MOTION: Councilmember Wuriu moved the meeting be adjourned. The
motion was seconded by Councilmember Mullen and unanimously
carried. (5-0)
The meeting adjourned at 10:04 p.m.
Recorded by:
GARY A.` RAP
Deputy City