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HomeMy WebLinkAboutResolution 01-98 to 65-98RESOLUTIONS 1998 NO. TITLE ADOPTED 63-98 Establishing Appropriations Limit for Fiscal Year1998/1999 06-22-98 64-98 Establishing User Rates for Wastewater Services 06-22-98 65-98 Declaring Politeness in Politics and Fair Campaign Practices 06-22-98 11 C, J RESOLUTIONS 1998 NO. TITLE ADOPTED 57-98 Approving the Application for Grant Funds for the Coastal Resources Grant. Program for the Reconstruction Of the City Dock Located at 1250 Embarcadero 06-22-98 58-98 Relating to the Classification, Compensation and Terms of Employment of Morro Bay Fire Fighters 06-22-98 • 59-98 Authorizing Approval of a New Five -Year Lease Agreement for Mooring Zone Al-3 with the Morro Bay Yacht Club 06-22-98 60-98 Adopting the Operating and Capital. Improvement Budgets and Making Appropriations for Fiscal Year 1998/ 1999 06-22-98 61-98 Authorizing Approval of Assignment of Lease Agreement for Lease Site 30W-33W For the Morro Bay Fuel Dock, Inc. by Assignment of Shares in the Corporation To the Molinari Family Trust 06-22-98 62-98 Authorizing the Mayor to Execute a Contract with the DBW for an Abandoned • Watercraft Abatement Grant 06-22-98 RESOLUTIONS 1998 NO. TITLE ADOPTED 52-98 Amending and Adopting the Public Works Advisory Board By -Laws 06-08-98 53-98 Authorizing Submission of Surface Transportation Program Funding Applications for Fiscal Year 1997/1998 Through 2002/2003 Funding Cycle and Approval of Priority of Projects 06-08-98 54-98 Establishing Three -Hour Parking Limitation West of the Embarcadero • On Harbor Street, Morro Bay Blvd. Pacific Street and Marina Street and Upon the Public Parking Lot on the East Side of Embarcadero Between Marina and Driftwood Streets 06-22-98 55-98 Granting Authority to the City Attorney To Give the Consent of the City to Join on Amicus Briefs 06-08-98 56-98 Ordering the Levy of the Annual Assessment for the North Point Natural Area Landscaping and Lighting Maintenance Assessment District 06-22-98 11 • RESOLUTIONS 1998 NO. TITLE ADOPTED 45-98 Intention to Approve an Amendment to Contract Between the Board of Administration Of the Public Employees' Retirement System 05-11-98 46-98 Approving a New 20-Year Lease with Harbor Hut, Inc. and Authorizing Execution of a Landlord Estoppel Agreement for Lease Sites 122-123/122W-123W 05-11-98 47-98 In Support of the Morro Bay 3-Mile • Scenic Loop 05-11-98 48-98 Approving a One -Year Extension to the Morro Bay Dial -A -Ride Operations Management Agreement for the 1998/ 1999 Fiscal Year 05-26-98 49-98 Approving Lease Agreement for the Extension Area of Lease Site 150, Jointly Owned by the City and Cayucos Sanitary District, with Kaiser Materials Corporation 06-08-98 50-98 VOID 51-98 Declaring the City's Intention to Levy The Annual Assessment for the Maintenance Of the North Point Natural Area 05-26-98 • RESOLUTIONS 1998 NO. TITLE ADOPTED 37-98 VOID 38-98 Approving Assignment of Desalination Discharge Agreement from PG&E to Duke Energy Morro Bay LLC 04-27-98 39-98 Initiating Proceedings to Levy the Annual Assessment for the North Point Natural Area Landscaping and Lighting Maintenance Assessment District 04-27-98 • 40-98 Approving Agreement to Extend Time to Consider Transfer Requests, and Providing For Denial of the Transfer Requests if the Agreement is not Timely Signed (Sonic Cable) 04-21-98 am VOID 42-98 Approving Lease Agreement with the Morro Bay Commercial Fisherman's Organization For Operation of the Gear Storage Area 04-27-98 43-98 Approving Sublease for a Portion of Lease Site 128 04-27-98 44-98 Supporting Formation of a Community Volunteer "Friends of 54" Funding Program For Taping of Government Meetings and Community Events as Approved by City Council Policy Guidelines . 04-27-98 • RESOLUTIONS 1998 NO. TITLE ADOPTED 27-98 Relating to the Classification, Compensation, And Terms of Employment of Miscellaneous Employees 03-23-98 28-98 Approving Assignment of Lease Site 93-95/ 93W-95W (Held) 03-23-98 29-98 Approving Sublease for a Portion of Lease Site 89/89W 03-23-98 • 30-98 Establishing On -Street Parking Prohibition Along Quintana Road 03-23-98 31-98 Relating to the Classification, Compensation, Terms of Employment of Police Employees 04-13-98 32-98 Approving an Interim License Agreement For a Portion of Lease Site 27W 04-13-98 33-98 Establishing Underground Utility District 6 04-13-98 34-98 Approving Sublease for a Portion of Lease Site 89/89W 04-13-98 35-98 Approving the Summary Vacation of Portion Of the Norwich Street Right -of -Way Not Required for Street Purposes 04-13-98 36-98 Approving Proposed Cable System Transfers 04-27-98 • RESOLUTIONS 1998 NO. TITLE ADOPTED 21-98 Approving aFund Transfer Agreement With the State Department of Transportation for the Main Street/ Highway 41 Bikeway (Proposition 116 Funding Source) 03-09-98 22-98 Designating the Mayor as the Authorized City Representative for Execution of Documents for a Petroleum Violation Escrow Account Grant for the Yerba Buena/Highway One Traffic Signalization • Program 03-09-98 23-98 Opposing New Development of Oil Production Facilities North of Point Sal 03-09-98 24-98 Approving the Application of a Motor Vehicle Emissions Reduction Grant From the Air Pollution Control District For the Trolley 03-23-98 25-98 Relating to the Classification, Compensation, And Terms of Employment of Management Employees 03-23-98 26-98 Relating to the Classification, Compensation, And Terms of Employment of Confidential Employees 03-23-98 RESOLUTIONS NO. TITLE ADOPTED Approving Agreement to Extend Time to Consider Transfer Requests, and Providing For Denial of the Transfer Requests if the Agreement is not Timely Signed (Sonic Cable TV) Declaring the Existence of a Local Emergency Revisions to Res. 16-98 and Adopted Amending the Operating and Capital Improvement Budgets and Making Supplemental Appropriations for Fiscal Year 1997/1998 Approving Agreement to Extend Time To Consider Transfer Requests, and Providing for Denial of the Transfer Requests if the Agreement is Not Timely Signed (Sonic Cable TV) In Support of Assembly An Act Relating to Commercial Fishing, and Declaring the Urge to Take Effect Immediately Approving the Summary Vacatii Of Portions of the Napa Avenue Right -of -Way Not Required for Street Purposes • RESOLUTIONS 1998 NO. TITLE ADOPTED 08-98 Rescinding Severely Restricted Water Supply Conditions and Restoring Normal Water Supply Conditions 01-26-98 09-98 Establishing a Two -Hour Parking Limitation on Morro Bay Blvd. From Main St. to Market Ave. 01-26-98 10-98 Accepting the Public Improvements of Tract 1996 and the Offers of Dedication • By Owner of Tract 1996 (Cloisters) 01-26-98 11-98 Approving the 1997 Annual Water Progress Report and Adopting a Water Allocation Program for 1998 01-26-98 12-98 VOID 13-98 Calling a Public Hearing to Determine Whether Public Necessity, Health, Safety, Or Welfare Requires the Formation of an Underground Utility District 02-09-98 14-98 Approving an Agreement with San Luis Coastal Unified School District to Pursue Vacation of Portion of the Napa Avenue Right -of -Way to Facilitate Expansion and And Improvements to Morro Elementary 02-23-98 • RESOLUTIONS 1998 NO. TITLE ADOPTED 01-98 Adopting the City's Investment Policy And Delegating Authority to the City Treasurer to Invest Idle Funds 01-12-98 02-98 VOID 03-98 Adopting Guidelines for Selection and Qualifications of Advisory Board Members 02-09-98 04-98 Approving a Video Production and Nutmeg Insertion Point Management Services • Agreement Between the City and AGP Video for the Period January 12, 1998 Through April 11, 1998 01-26-98 05-98 Amending the Operating and Capital Improvement Budgets and Making Supplemental Appropriations for Fiscal Year 1997/1998 01-12-98 06-98 Approving Agreement to Extend Time To Consider Charter Communications Transfer Requests and Provide for Denial of the Transfer Requests if the Agreement is not Timely Signed 01-12-98 07-98 Authorizing the Mayor to Execute Easement and License Agreements With PG&E to Cover Several Existing And Proposed City Uses at the • Morro Bay Power Plant Site 01-12-98 • RESOLUTION NO.65-98 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA DECLARING POLITENESS IN POLITICS AND FAIR CAMPAIGN PRACTICES THE CITY COUNCIL City of Morro Bay, California WHEREAS, political debate throughout California and its many communities has in many cases become fractious and foolish; and WHEREAS, "negative mailers" and "hit pieces" have become commonplace and acceptable political campaign techniques; and WHEREAS, some campaigns derive their "message" from opinion polls and not through thoughtful consideration of the issues or involvement in the community; and • WHEREAS, voters in this state are increasingly disenchanted with and are disengaging from the political process; and WHEREAS, a healthy democracy requires a citizenry engaged in the free flow of ideas and purposeful, civil debate on a range of issues; and WHEREAS, negative campaigns and blatant manipulation of voter opinion undermine the fundamental trust that an electorate must have for a democracy to function. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay, California, as follows: 1. That each citizen, political candidate and elected official in this state is called upon to commit to political dialogue that is thorough, respectful, straightforward, and honest; 2. That all candidates for office conduct their campaigns openly and publicly, discussing the issues as they see them, presenting their records and policies with sincerity and frankness; That all candidates not permit the use of character defamation, libel, slander, or scurrilous attacks on any candidate or their personal or family life; • • Resolution No. 65-98 Page Two • 4. That all candidates not permit any dishonest or unethical practice, which tends to undermine or corrupt our American system of free elections; Encourage all candidates to voluntarily sign the Code of Fair Campaign Practices and endorse, subscribe to and solemnly pledge to conduct their campaigns in accordance with the stated principles and practices. PASSED AND ADOPTED by the City Council of the City of Mono Bay at a regular meeting thereof held on the day of June 22, 1998 on the following vote: AYES: Anderson, Elliott, Peirce, Peters, Novak NOES: None ABSENT: None ATTEST: l: calm M'W CATHY NOV C, Mayor RESOLUTION NO. 64-98 RESOLUTION OF THE CITY COUNCIL OF MORRO BAY ESTABLISHING USER RATES FOR WASTEWATER SERVICES THE CITY COUNCI L City of Morro Bay, California WHEREAS, the community of Morro Bay seeks to provide for a properly functioning wastewater collection and treatment system, complying with the U.S. Environmental Protection Agency and State Water Resources Control Board requirements; and WHEREAS, the City Council finds that adjustments in rates charged for these services are necessary to provide adequate funds for system operations, maintenance and replacement. NOW, THEREFORE, BE IT RESOLVED by the City Council, City of Morro Bay that it is in the interests of the general welfare of the community to adjust rates in a four year incremental program with increases of 15%, 10%, 10% and 5% over said four years; and BE IT FURTHER RESOLVED the following monthly user rate schedule for services is adopted, effective July 1, 1998, said schedule representing the first year increment. Single Family Residential (surcharge - 10 ccf) Multiple Family Residential (per dwelling unit) (surcharge - 10 ccf) Condominium Residential (surcharge - 3 ccf) Condominium Yard Meter (no sewer) Condominium Common Area Meter (with sewer) Mobile Home Park Commercial/Domestic Strength Laundromat Car Wash Motel Restaurant Seafood Processor $10.44 flat $ 1.27/ccf $10.44 flat $ 1.27/ccf $10.44 flat $ 1.27/ccf 0 $ 1.60/ccf ($10.44 min.) $ 1.27/ccf ($10.44 min.) $ 1.60/ccf ($10.44 min.) $ 1.27/ccf ( $10.44 min.) $ 1.27/ccf($10.44 min.) $ 2.20/ccf ($10.44 min.) $ 3.66/ccf ($10.44 min.) $ 3.66/ccf ($10.44 min.) • Resolution No. 64-98 page 2 n LJ El Retirement Home/Hospital _ Bakery Hotel w/ Dining Mortuary Water Softener Commercial Laundry Power Plant City Facilities on Sewer _ Other Public Facilities on Sewer Schools $ 2.86/ccf ($10.44 min.) $ 3.66/ccf($10.44 min.) $ 2.86/ccf ($10.44 min.) $ 2.39/ccf($10.44 min.) $ 1.27/ccf ($10.44 min.) $ 1.60/ccf ($10.44 min.) $162.84 flat $ 1.27/ccf ($10.44 min.) $ 1.27/ccf ($10.44 min.) $ 1.27/ccf ($10.44 min.) PASSED AND ADOPTED by the Morro Bay City Council at a regular meeting held thereof on the 22nd day of June, 1998 by the following vote: AYES: Anderson, Elliott, Peirce, Peters, Novak NOES: None ABSENT: None ABSTAIN: None ATTEST: CATHY NOV , Mayor • CITY COUNCIL RESOLUTION NO. 63-98 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, ESTABLISHING APPROPRIATIONS LIMIT FOR FISCAL YEAR 1998-99 FOR THE CITY OF MORRO BAY WHEREAS, Article XIII B of the California Constitution establishes a limitation on appropriations of funds by the City; and WHEREAS, the City has calculated the appropriations limit in accordance with the provisions of Article XIII B of the California Constitution; and WHEREAS, Proposition 11 I of June, 1990, requires an annual election of the method of measurement of growth in both PRICE and POPULATION; and WHEREAS, the measurement of PRICE is most advantageous using the growth in the California Per Capita Personal Income measurement; and WHEREAS, the measurement of POPULATION is most advantageous using the growth in San Luis Obispo County population. • NOW THEREFORE, BE IT RESOLVED that the City Council of the City of Morro Bay elects to use as measurements of growth, the California Per Capita Personal Income and the County of San Luis Obispo Population growth, and establishes the Fiscal Year 1998-99 Appropriations Limit at $11,555,264 from the proceeds of taxes. PASSED, APPROVED, AND ADOPTED, by the City Council of the City of Morro Bay, on the 22nd day of June, 1998, by the following vote to wit: AYES: Anderson, Elliott, Peirce, Peters, Novak NOES: None ABSENT: None �lvw��.d.MOV, .n .� Cathy Novak, Mayor ATTACHMENT A o O O o r- o 1, LL (6 o M 'O M 00 to O M O U 69 0 N O 00 0(000 a IT NO R O 00 , O M M M 0 I l- M O n N N 0 M V) 00 00 (O O N M (0 N MO aM OD rl x v v v o o 0 vM O � O � z x I x x lxlxlxlxlx o 000 n co 00 CD ONO to a) N 0) h N •- O O 'T CD OD V N' O N IT M R 00 N t6 co w N M N 00 �- N /xp N N R to m to c 0 N O m U y 7 0 Q o m 00 m _ X f% y A 60 M U C f0 y (D N E, y x 7. N 7 7 d 0) E N m U 7 t c E U O O m O m U 0 E aD w- c CL x U) c � 0 _ M Id 0) Cm F- ~� '� 0) O 0 m O m c M C N C (� C7 U N U C lL O U 01 ? 7 (O U N LL Ol O F F j m O L O N N .O c c c O n L N N H � y J u! > c m X N N o orS 5 y m o�> otf a�`> 10 (a y> E CL m U c N am H N c, c' _ rq o y N y 0) U F m U y o mom (�° _ �n C m m> c N a . a(La(nF�ma(L�inFm��(9 - 7 d ._ O N N m m o > c` a of M 00 M I IL ATTACHMENT B Mn O m LO m m O O n O cm� O m Ln O N 7v m N m m m M m N M m O m m v � CO" m N VW CO O O CO n m, m O m W) W) 0 to 0) O m Iw m � N mN0 Omm 17m1-nn V n(6'- OMNMO C aOnn V M7Nm �mn n00)n7, 00 O 0 7 n O n O M m O V O n N M m m a � m O • M M M allc V t O O m m n n m m m m m 0 c � CL O J a Q N m 0 N V) m N N �- 04 .� y Cm t5_Q m n m m m m U cc � Z m to n 0 to 0 C C a — C N M M N m O m O O m 0 M ma �mmmu�ooaov,mrnon C m Q �N fM C64M� ��NNN U N C Z N L O (LUU 0 C i CO 0)< ON Om,m m N M O m n m n n -WC m0)0- Q 01CN .. .cq N C U l0 Z V 0-0 m C— • cq O O r O M N N 0 V 7 m O N n N n O N n V n m V n m V tn 7 d a c� Z �La a U d m avO V'Mm y n n n M O m m C O m 'WM NMMy N ca Q ` U Z m L dU o � Q o T c) mmNMq-t � n0000aomaoaommmmmrnmmmmmmmm LOW nmmO N � mmmmmmmmmmmmmmmmmmmmm ��U o �. m mm0 NM V OmnmOO NMaOmnm 0mj C) C N n n m m m m m m m m m m m m m O) m m m m m 0) O m m m m m m m m m m m m m m m m m m m m m U N L m L m L m L m L m l m L m L m L m L m L m L m L m L m V m L m L m L m L m L m L m n m N N m N N N N N N N N N N N N N N m N N m 0 ->-}}p } }}pp}p }>->->-} }}p}}}p }>- O G gyp} . Q N U) T N V) Aa L N !2 H) T T g T N N Ma!2 An a T lL li w lL lL w lL IL lL li li IL lL lL U- lL li li lL U. Li 55 m m Go m a ATTACHMENT G • Enclosure II Annual Percent Change In Population Minus Exclusions' January 1, 1997 to January 1, 1998 and Total Population January 1, 1998 Total County Percent Change — Population Minus Exclusions — Population City 1997.98 14-97 1-1-98 14-98 SAN LUIS OBISPO • ARROYO GRANDE 3.23 15283 15776 15776 ATASCADERO 2.46 24705 25313 25313 EL PASO DE ROBLES 2.80 20604 21180 22038 GROVER BEACH 2.89 12130 12481 12481 MORRO BAY 2.18 9635 9845 9845 PISMO BEACH 2.04 8205 8372 8372 SAN LUIS OBISPO 2.06 41807 42670 ' 42670 UNINCORPORATED 3.02 91931 94709 102479 COUNTY TOTAL 270 224300 230346 238974 Exclusions include residents in state mental institutions, federal military installations, and state and federal prisons. Page 1 ATTACHMENT D May 1, 1998 A. Price Factor: Article XIII B specifies that local jurisdictions select their cost -of -living factor to compute their appropriation limit by a vote of their governing body. The cost of living factor provided here is per capita personal income. IT the percentage change in per capita personal income is selected, the percentage changes to be used in setting the 1998-99 appropriation limit are: Per Capita Personal Income Fiscal Percentage change Year (FY) over prior year 1998-99 4.15 B. Following is an example using sample population change and the change in Califomia per capita personal income as growth factors in computing a 1998-99 appropriations limit. 1998-99: Per Capita Change = 4.15 percent Population Change = 1.81 percent Per Capita converted to a ratio: Population converted to a ratio: Calculation of factor for FY 98-99: 0 4.15+100=1.0415 100 1.81 + 100 = 1.0181 100 1.0415 x 1.0181 = 1.0604 • RESOLUTION NO.62-98 AUTHORIZING THE MAYOR TO EXECUTE A CONTRACT WITH THE DEPARTMENT OF BOATING AND WATERWAYS FOR AN ABANDONED WATERCRAFT ABATEMENT GRANT THE CITY COUNCIL City of Morro Bay, California WHEREAS, the City of Morro Bay has applied for a $10,000 grant from the DBW for removal of an abandoned vessel from City facilities through the Department of Boating and Waterways Abandoned Watercraft Abatement program; and, WHEREAS, the Department of Boating and Waterways requires a 10% local agency share on the grant and execution of a contract to encumber funds for such grants; and, WHEREAS, the City has funding available in the FY98-99 Harbor Fund Derelict Vessel/Miscellaneous Dock Repair Account for the local agency match and wishes to proceed with the grant. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay that the contract with the Department of Boating and Waterways for development and • implementation of an abandoned vessel removal program is hereby approved and that the Mayor is hereby authorized to execute said contract. BE IT FURTHER RESOLVED, that the Harbor Director is hereby designated to act as the City's agent in regard to said contract with the Department of Boating and Waterways. PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting held thereof on the 22nd day of June, 1998, by the following vote: AYES: Anderson, Elliott, Peirce, Peters, Novak NOES: None ABSENT: None CATHY NOVAK, MAYOR ta,4- . BRIDGETT BAUER, CITY CLERK .40 • RESOLUTION NO.61-98 AUTHORIZING APPROVAL OF ASSIGNMENT OF THE LEASE AGREEMENT FOR LEASE SITE 30W-33W FOR THE MORRO BAY FUEL DOCK, INC. BY ASSIGNMENT OF SHARES IN THE CORPORATION TO THE MOLINARI FAMILY TRUST THE CITY COUNCIL City of Morro Bay, California WHEREAS, the City of Morro Bay is the lessor of certain waterfront property known as Lease Site 30W-33W; and, WHEREAS, the Morro Bay Fuel Dock, Inc. is lessee of said property; and, WHEREAS, the Morro Bay Fuel Dock, Inc. has requested that the lease agreement for Lease Site 30W-33W be assigned to the Molinari Family Trust by assignment of shares in Morro Bay Fuel Dock Incorporated; and, WHEREAS, the lease agreement requires City Council approval of any assignment of the lease agreement; and, WHEREAS, the Molinari Family trust has submitted financial documents and background information; and, • WHEREAS, the City cannot arbitrarily withhold approval of lease assignments. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay that the City Council consents to the assignment of Lease Site 30W-33 W by assignment of Morro Bay Fuel Dock Incorporated shares to the Molinari Family Trust subject to and contingent upon final City Attorney approval of assignment and assumption documents. BE IT FURTHER RESOLVED, that the Mayor is hereby authorized to execute the lease agreement on behalf of the City of Morro Bay. PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting held thereof on the 22nd day of June, 1998, by the following vote: AYES: Anderson, Elliott, Peirce, Peters, Novak NOES: None ABSENT: None CATHY NOVA34 MAYOR BRIDGET AUER, CITY CLERK 0 i MAY 8 1998 Morro Bay Planning & Harbor Dept. -- 1275 Embarcadero Morro Bay, CA 93442 Re: Assignment of Lease #30W, 31W, 32W and 33W Current Lease: Morro Bay Fuel Dock, Inc. Buyer: R.C. Coast L.L.C./ Lawrence & Angela Molinari Qualifications, Experience & Proposed Operations: The buyer intends to continue the business as it has been running, servicing the fishing industry and the leisure boat owners, while making improvements to the existing facilities. The Molinari family has been successfully operating three family cattle ranches with agriculture here on the central • coast for several generations. Other family businesses include electrical contracting and demolition. In the past the buyer has subcontracted with the Morro Bay Harbor Dept for the removal of junk boats. The buyer currently owns and is restoring two boats, one 45 foot and one 60 foot boat. Moreover, the buyer has an A contractors license and is in the business of fuel tank removal. The buyer is currently equipped to repair and or replace the existing dock. The buyer has also restored an 1890's Victorian home at 497 Islay in San Luis Obispo. The quality of this restoration can be seen from the street. The buyer is experienced in many facets of business, construction, fuel tank management and boat restoration. Edward Molinari HARBOR DEPARTMENT • 1275 EMBARCADERO, MORRO BAY,CALIFO APPLICATION APPLICATION FOR AMENDMENT OR ASSIGNMENT OF CITY OR APPROVAL OF SUBLEASES TO CITY LEASE Al To be completed and mWmed to the Harbor O1ficc for t LEASE SITE N: ,30 u-o t 31 w y33 w Morro Bay Fuel Dock Corporation Lessee (please print) 201 �sovTNV\ Mailing Address • Mo o a City. fate Zip u APR29= j eg 14P1' APPLICATION FEE: $ 2 6 6.7 6 ciC�1 62 Mnrro Bay Fuel Dock _ Business Name Telephone jl,9&KMff. ' haMy describe the specific nature of the approval requested. The majority of the share holders are interested in selling, since many no longer live in the area. Mr. and Mrs. Molinari are applying to -- potentially purchase the Fuel Dock Corporation. ppUeant's 31I@atYre Date SEE REVERSE The City of MorroofF" nielnalcsary a and�i fetvvcom^stent with and resoonsiveQio the needs ofrthe publics C*" y of Morro Bay HARBOR DEPARTMENT 1275 EMBARCADERO, MORRO BAY, CALIFORNIA 93442 8 0 5 - 7 7 2 - 6 2 5 4 May 12, 1998 Edward Molinari 497 Islay San Luis Obispo CA 93401 RE: PROPOSED ASSIGNMENT OF LEASE AGREEMENT FOR LEASE SITE 30W-33 W (BEACON FUEL DOCK) Thanks for taking the time to meet in our office regarding your request for City approval of assignment of Lease Site 30W-33 W. To confirm our understanding; your family limited partnership is requesting City approval of assignment of the existing lease agreement through purchase of shares in the Morro Bay Fuel Dock Corporation. We have received the necessary application materials and this item will be considered by the City Council at their May 26, 1998 • meeting pending City Attorney approval of the assignment and assumption documents no later than May 18, 1998. The assignment and assumption document must completely list the new shareholders so the City is formally notified of the new parties responsible to carry out the terms of the lease. If assignment documents acceptable to the City Attorney cannot be completed by May 18, 1998, then this item will be pulled from the May 26, 1998 City Council meeting and rescheduled for the June 8, 1998 meeting. The existing lease agreement will expire in 2008. You intend to operate the current facilities under that lease while you are considering development alternatives and during the development review/permitting process. You explained that you are considering various levels of redevelopment on the site, ranging from repair and replacement of the existing slips to proposing a new marina project. You are considering expanding the Lease Site under one development alternative. We discussed the development review/permitting process and explained that any proposal to construct significant new berthing facilities will be very controversial, most likely taking two to five years for consideration. Any new proposal should minimize environmental, view shed, noise, traffic, parking and navigational concerns along with incorporating all the usual development conditions. The City considers the existing Fuel Dock and commercial fishing slips as critical marine dependent uses and your proposal should include at least continuation of the existing level of these uses. • A: ADA1INp2511,0TERS/MOUNA RIJ- 12 The City of Morro Bay is dedicated to the preservation and enhancement of our quality of life, and strives tr , provide a level of municipal service and safety consistent with and responsive to the needs of the public. 6. Moliwri May 12. 1998 Page 2 is We discussed the process of negotiating a new long term lease for the site. I informed you that the process that has worked in the past is that you define your proposed project to the point of receiving City Council concept plan approval. If and when you receive concept plan approval a longer term lease can be negotiated with the new term based on the level of private investment in the lease site. Rent on any new lease would be 8% of the appraised value of the lease site vs. the City standard percentage of gross sales rent (10% for slip income) whichever is higher. Enclosed is a copy of the City's master lease format in which any new lease would be written. If we were to complete City Council approval of a new long term lease you would be required to construct the improvements outlined in your concept plan within some mutually agreeable period, most likely 2-4 years after execution of the new lease. You should anticipate that the new lease will require you to operate a fuel dock and provide a minimum number of slips for commercial fishing vessels. The costs for completing the permit process and construction would be solely yours and failure to construct the improvements within the agreed upon date would result in termination of the new lease agreement. The question of expanding the lease site boundary was raised should you chose to propose a development that would require additional area. The Community Development Department informed you that this may require processing of a subdivision map. Again, if you receive City Council concept approval for such a project, staff will take that as direction that the Council • desires expansion of the lease area and the additional area could be included in any proposed new long term lease agreement. Please call me at any time if you have any question or disagreement with my understanding of the meeting. One final note, concerns over whether the Beacon Fuel Dock would continue current operations were raised at the last Harbor Advisory Board meeting. It would be very beneficial if you and or Mr. Maul could attend the next Harbor Advisory Board meeting June 4, 1998, at 7:00 PM held in the Morro Bay Library, to introduce yourself. Please let me now if you and or Mr. Maul can attend, and give a short presentation on your plans for the site. Rick Algert Harbor Director RA/sl Enc. • cc: City Manager City Attorney Community Development Director Tim Wilkerson • CITY COUNCIL RESOLUTION NO. 60-98 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, ADOPTING THE OPERATING AND CAPITAL IMPROVEMENT BUDGETS AND MAKING APPROPRIATIONS FOR FISCAL YEAR 1998-99 FOR THE CITY OF MORRO BAY WHEREAS, the City of Mono Bay is required to appropriate and expend public funds to conduct its business activities on a day-to-day basis; and WHEREAS, the City Council finds and determines that the efficiency, economy and effectiveness of City government operations would be substantially impaired if such appropriation were not made; and • WHEREAS, Section 37208 of the California Government Code provides that payments or demands conforming to a budget approved by ordinance or resolution need not be audited by the City Council prior to payment; and WHEREAS, the City Council recognizes that Capital Improvement Projects authorized and approved in prior fiscal years (1995-96,1996-97 and 1997-98) may not be completed by June 30, 1998; and WHEREAS, the City Council acknowledges the continuing efforts of staff to operate within an approved budget and manage savings wherever feasible. NOW THEREFORE, BE IT RESOLVED: 1) The Fiscal Year 1998-99 Operating and Capital Improvement Budgets are adopted as presented in the proposed budgets and subsequent amendments; and 2) Staff is directed to prepare and publish a final budget document. • 3) The City Manager is authorized to transfer appropriations anywhere within the adopted budget so long as the total authorized appropriations are not exceeded. Otherwise, budgetary • Honorable Mayor and City council City Council Resolution No. 60-98 June 14, 1998 control is intended to be at the division level appropriations total for operating budgets and at the project level for capital improvement projects, with line item changes administratively reviewed and approved. 4) The City Council authorizes and directs the transfer of the balances of projects approved in fiscal years 1995-96,1996-97 and 1997-98, but not completed by June 30, 1998, to the Capital Improvement Project Fund(s) for Fiscal Year 1998-99. 5) The City Council authorizes a loan of $207,507 from the Wastewater Capital Accumulation Fund (Fund 952) to the Wastewater Collection Revenue Fund (Fund 321). Said loan is to be repaid with 5%annual interest from future Wastewater Collection Service Fees, as soon as possible. PASSED, APPROVED, AND ADOPTED, by the City Council of the City of Mono Bay, on the 22nd day of June, 1998, by the following vote to wit: • AYES: Anderson, Elliott, Peirce, Peters, Novak NOES: None ABSENT: None nJ CA HY NOVAK, Mayor BRIDGET BAUER, City Clerk • VVYtf�NMVpppflO,Rhw Ar�,,IM City of Morro Bay Department Budget Summary By Fund Fiscal Year 1998-99 ProposedAppropriations Attachment to Personnel Capital City Council Resolution 69M Services $ugpho Services OuBay ATTACHMENT A (1 OF 2) Total QS9 ,$Pw. Iranem Alamo. ENERALIFUND AOMINISTRAWK City Council 42,549 9,307 39.259 0 0 0 91,115 City Manager 150,091 6,015 36,369 0 0 0 192,495 Elections 0 5,500 6,000 0 0 0 11.500 Personnel 85,479 2,475 31,975 0 0 0 119,929 Community Promotions 0 600 72,100 0 0 0 72,700 City Attorney 0 0 55,000 0 0 0 55.000 FINANCE: Accounting & Treasury 310,441 8,697 79,706 0 0 0 398,844 Information Services 48,142 2,575 15,731 0 0 0 66,448 POLICE 1,654,477 43,650 170,664 11,000 20,873 8,785 1,909,449 EIBE 841,183 18,865 63,306 6,500 54,069 1,400 985.323 PLANNING 8 BUILDING Planning 8 Building 321,328 7.007 147,078 0 0 2.500 477,913 Planning Commission 0 0 4,636 0 0 0 4,636 PUBLIC WORKS Engineering/Administration 315,512 3,641 57,766 0 0 0 376,919 Vehicle Maintenance 49,365 3,405 8,723 0 0 0 61,493 Streets 97.700 52,054 195,209 0 0 0 344,963 Trolley Operations 0 3,385 9,887 0 0 0 13,272 Curbside Recycling 0 0 86.306 0 0 0 86,306 RECREATION• dministration 123,192 3,727 24,701 0 0 0 151,620 ecreation Commission 0 0 200 0 0 0 200 Sports 120,355 19,764 34,020 0 0 0 174,139 Youth Services 119,912 13,265 10,954 0 0 0 144,131 Facilities 210,1551 26,700 43,733 21,000 0 0 301.588 Parks 147,898 13,332 34,702 0 0 0 195.932 NON:QEPARTMENTAL City Facilities (Div 7210) 0 675 36,600 0 0 0 37,275 Utilifies(Div 7220) 0 0 61,345 0 0 0 61,345 Contract Services (Div 7230) County -wide VisitorslConf Bureau 0 0 35,500 0 0 0 35,500 Chamber or Commerce Local Visitors Bur. 0 0 62,000 0 0 0 62,000 Spay/Neuter Program 0 0 2,000 0 0 0 2,000 Animal Control Services 0 0 15,000 0 0 0 15,000 Street Lighting Div 7240 0 0 74.200 0 0 0 74.200 Aid To Other Agencies(Div 7310) 0 0 8,975 0 0 0 8,975 Transfer to Transit Fund Div 7710 0 0 0 0 0 63,482 63,482 CaoiWl Improvement Projects Transfers to Capital Improvement Fund 0 0 0 0 0 88,098 88,098 GENERAL FUND TOTALS: 4,637.M 244.639 L523665 38.500 74942 164,265 6.663.790 Xrocp99b.wk4 City of Morro Bay Department Budget Summary By Fund Fiscal Year 1998-99 ProposedAppropriations Attachment A to Personnel Capital City Council Resolu8on 60A8 SeDdceS Supplies Services Oullav ATTACHMENT A (2 OF 2) Total Debt Svc Transfers Awroc 0 0 0 0 0 23,160 23,150 OAS TAX FUND 0 0 0 0 0 202,472 202,472 TRAFFIC SAFETY FUND 0 0 0 0 0 20,000 20,000 PARKING IN4JEU FUND 0 0 10,000 0 0 0 10,000 TRANSIT FUNQ 0 16,621 216,034 100,000 0 56,926 366,481 WATER REVENUE FUND Accounting & Treasury 0 3,000 16,500 0 0 0 19,500 Water Operations 283,133 40,390 2,236,204 0 541,332 512.941 3,614,000 WATER REVENUE FUND TOTALS 28313 43.394 22A2.7.04 0 54LM 512.W 3.633.500 WASTEWATER COLL REV FUND Accounting 8 Treasury 0 3,000 12,000 0 0 0 15,000 Collections Operations 102,888 8,204 38.948 0 0 952,467 1,102,507 WASTEWATER 102.80 1 W04 W"l 0 01 052.467. 111.7,607 HARBORFUND 395,060 43,441 167,161 12,600 134,816 301,804 1.054,781 CCt SLIP FUND 0 0 4,000 0 6,975 0 10,976 RODOER ANDERSON TREE REPL FUND 0 100 0 0 0 0 100 MIMOSA STREET A.D. 0 0 2,000 0 18,861 0 20,861 MIMOSA STREET SUPP A D 0 0 1,383 01 17,146 0 18,529 NORTH POINT A.D. 4,695 150 900 0 0 01 8,646 WWTP FUNQ Operations 36DA89 116,585 340,679 111,750 0 75,000 1,004,503 DBGHOUSING GRANT -1996 0 0 144,373 0 0 0 144,373 CDBG TECHNICAL GRANT 0 0 35,000 0 0 0 36,000 Wastewater Capital Accum Fund 0 0 0 0 0 207,607 207,507 SUB -TOTAL OTHER FUNDS 1.1411166 23.23@1 3.224.182 224.260 TISJ29 7-361.267 L066.384 QRANUPTALALL.FUNIM 5-TU944 416.030 I 4J47.84Z I 262.Z60 I Z94M I 2.6.16.632 1.4.67.9.179 • Xrecp99b.wk4 ATTACHMENT B • Fund Number • is City of Morro Bay Fiscal Year 1998-99 Budget Summary of Budget By Fund Attachment B to Reso 60-98 Fund Name FY 1998-99 FY 1998-99 Appropriations Estimated Revenues Surplus/ (DEFICIT I 001 General Fund 6.683,790 6,683,790 0 201 CDBG Loan Repayment Fund 23,150 1,500 (21,650 203 CDBG Water Reclamation Study 35,000 45,250 10,250 250 State Gas Tax Fund 202,472 202,472 0 280 Traffic Safety Fund 20,000 20,000 0 299 Parking In -Lieu Fund 10,000 0 10,000 301 Transit Fund 386,481 390,470 3,989 311 Water Revenue Fund 3,633,500 3.633,500 0 321 Wastewater Coll Revenue Fund 1,117,507 1,117,507 0 331 Harbor Operating Fund 1,054,781 1,055.000 219 333 CC1 Slip Fund 10,975 7,000 3,975 511 Rodger Anderson Tree Replace Fund 100 100 0 550 Mimosa St AD Redemption Fund 20,861 17,732 (3,129 551 Mimosa St Supp AD Redemp Fund 18,529 16,000 (2,529 565 North Point Assessment Dist. 5,645 5,645 0 599 MB-C Wastewater Treatment Plant 1,004,503 1,004,503 0 933 CDBG Family Housing Grant 144,373 176,900 951 Water Capital Accum Fund 0 151,900 151,900 952 Wastewater Capital Accum Fund 207,507 75,000 (132,507 Total 14,579,174 14,604,269 25,095 Summco99.wk4 • RESOLUTION NO.59-98 AUTHORIZING APPROVAL OF A NEW 5 YEAR LEASE AGREEMENT FOR MOORING ZONE A1-3 WITH THE MORRO BAY YACHT CLUB THE CITY COUNCIL City of Morro Bay, California WHEREAS, the Morro Bay Yacht Club serves as a City Host by providing accommodations for visiting yachts, and; WHEREAS, the Morro Bay Municipal Code designates portions of Mooring Zone Al-3 be leased to the Morro Bay Yacht Club; and, WHEREAS, the Morro Bay Yacht Club has proved itself to be an acceptable tenant. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay that the City of Morro Bay does hereby approve a five (5) year lease of Mooring Zone Al-3 to the Morro Bay Yacht Club; and,. BE IT FURTHER RESOLVED, that the Mayor is hereby authorized to execute the lease agreement on behalf of the City of Morro Bay. PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting held thereof on the 22nd day of June, 1998, by the following vote: AYES: Anderson, Elliott, Peirce, Peters, Novak NOES: None ABSENT: None � �.! : r -w t. E CATHY NOVAK, AYOR EXHIBIT I LEASE • THIS LEASE is made and entered into by and between the CITY OF MORRO BAY, a municipal corporation of the State of California herein called CITY, and Morro Bay Yacht Club, a California non-profit organization, herein called TENANT. WITNESSETH WHEREAS, the State of California granted certain tide and submerged lands located within the CITY limits of CITY to the County of San Luis Obispo and to its successors, being Chapter 1076, Statutes of 1947, as amended by Chapter 413, Statutes of 1955, Chapter 1874, Statutes of 1957, and Chapter 70, Statutes of 1960, first extraordinary session; which Statutes may be amended from time to time by the Legislature of the State of California; all of which Statutes are expressly recognized and agreed to be in full force and effect by the parties hereto; and WHEREAS, the parties hereto recognize and agree that on July 17, 1964, the CITY of Morro Bay, Lessor herein, succeeded to all of the right, title and interest of the County of San Luis Obispo in and to all of the tide and submerged lands conveyed to said County by the Slate of California pursuant to the above mentioned acts; and WHEREAS, judgment has been entered on October 14. 1968, in the case of CITY of Morro Bay, Plaintiff, versus County of San Luis Obispo, and State of California, Defendants, by the Superior Court of the State of California in and for the County of San Luis Obispo, #30417, adjudging and decreeing, among other things, that the title to said tide and submerged lands so conveyed by the State of California to the County of San Luis Obispo in trust, as set forth above, passed automatically to the CITY of Morro Bay upon the date of its incorporation as a CITY on the 17th day of July, 1964; and WHEREAS, TENANT accepts the within lease with full knowledge that there is no warranty of title in and to the within described premises by CITY to TENANT: and • WHEREAS, in order to develop and improve the Morro Bay Harbor, and to assist in carrying out the provisions of the tideland grant as aforesaid, and in order to provide facilities for the accommodation of those using Morro Bay Harbor, CITY leases to TENANT the within described property upon the terms and conditions set forth herein; NOW, THEREFORE, in consideration of the covenants to be performed and the rental to be paid by TENANT to CITY, CITY leases to TENANT, and TENANT leases from CITY, the premises herein called "said premises" in the CITY of Morro Bay, County of San Luis Obispo, State of California, described as follows: Mooring Zone Al-3 as delineated on Diagram 15.28.020 codified in and made a part of chapter 15.28 of the Morro Bay Municipal Code. Such map as approved and adopted by resolution of the City Council. (Ord. 119 § I (part), 1974: prior code § 9406.2). Said premises consisting of an area sufficient to accommodate twenty three moorings with a minimum swing radius of fifty feet. A copy of the diagram incorporated in Section 15.28.020 of the Morro Bay Municipal code indicating the leased premises is attached hereto as Exhibit A and made a part hereof by reference. Article 1 FIXED TERM Section 1.01 Term The term of the lease shall be a period of five (5) years, commencing July 1, 1998 and terminating without notice on June 30, 2003, unless sooner terminated as herein provided. Section 1.02 No Extensions The term of this lease shall not be extended nor shall this lease be renewed. Requests for • continued use of the premises shall be treated as an application for a new lease and shall require appropriate application to the CITY with all required supporting information and documents, CITY Council approval and the execution of a new CITY lease, containing the then most current terms, covenants, conditions and rent schedules. Section 1.03 Hold Over Should TENANT hold the demise premises after the expiration of the term of this lease • with the consent of the CITY, express or implied, such holding over (in the absence of a written agreement between CITY and TENANT with respect thereto) shall be deemed to create a tenancy from month to month, terminable on thirty (30) days written notice from either party to the other, at a monthly rental equal to twice one -twelfth (1/12) of the total minimum and percentage rental for the preceding twelve (12) months (equal to 1/6 annual rent per month), and otherwise subject to each and every term, covenant and condition of this lease. TENANT shall indemnify and hold CITY harmless from any and all loss or liability, including, but not limited to, claims of succeeding TENANT'S, resulting from TENANTS failure to surrender possession of the demise premises upon termination of this lease during, at the end, or after expiration of the term hereof. • Article 2 RENT Section 2.01 Minimum Rent TENANT agrees to pay to CITY an annual rental for the use and occupancy of said premises of Twelve Thousand Seven Hundred Sixty Three dollars ($12,763.00) per year payable in advance in equal semiannual installments on the first days of January and July of each year commencing July 1, 1998 and adjusted annually as shown in Section 2.02 hereof. Said rental shall be paid in lawful money of the United States of America, without offset or deduction and shall be paid to CITY at City Hall located at 595 Harbor Street, Moro Bay, California, or at such other place or places CITY may from time to time designate by written notice delivered to TENANT. Section 2.02 Annual CPI Adjustment to Minimum Rent The parties agree that on the first day of July, 1999 and each July I thereafter the minimum guaranteed annual rental shall be increased or decreased in direct proportion to any upward or downward movement from the Consumer Price Index for January 1, 1998, which is hereby agreed to be 161.0. The Consumer Price Index referred to herein is the Consumer Price Index (all items indexes, all urban consumers) for Los Angeles -Anaheim -Riverside, California, compiled and published by the United States Department of Labor, Bureau of Labor Statistics, 1982-84 Base Year = 100 (hereafter called Index.) The percentage adjustment for any given year shall be based upon the average monthly index for previous twelve months ending December 31'r. The minimum annual rental shall be adjusted once each year on July 1, and will remain in effect as adjusted through June 30 of the following year, at which time it will be readjusted. (By way of illustration only, if the Index was 130 on January 1, 1986 and the average monthly Index from January 1986 through December 1986 equals 136 then the percentage increase is 4.62%. Therefore the minimum guarantee annual rental then being paid by TENANT would be increased by 4.62% commencing July 1, 1987 and continuing at that rate until June 30, 1988.) If the United States Department of Labor, Bureau of Labor Statistics, shall cease to compile and make public the Index as now constituted and issued, but shall substitute another index in its place, then said substituted index shall be used for the purpose of adjusting the minimum rental for the leased premises. Section Z03 Penalty and Interest A. If any rent is not received within ten days following the date of receipt by TENANT of written notice of such rent being past due and payable, TENANT shall pay a late penalty of ten percent (10%) of the amount of the rent in addition to the rent. B. In addition to the penalty, TENANT shall pay interest at the rate of one percent (1 %) per month or fraction thereof or the maximum amount permitted by law as of the date this lease is signed, whichever is greater, on the amount of the rent, exclusive of the penalty, from the date on which rent first became delinquent until paid. The term "rent" includes any sums advanced by the CITY and any unpaid amounts due from TENANT to the CITY. • Article 3 USE OF PREMISES Section 3.01 Permitted Use Said premises shall, during the term of this lease, be used for the purpose of operating and conducting thereon and therein the following: Installation and operation of a mooring facility consisting of individual moorings for the use of the members of the Morro Bay Yacht Club, a non-profit organization, and for use by transient yachts under the control and direction and as part of the operation of the Morro Bay Yacht Club and for uses normally incident to and directly allied to such purpose and for no other purpose. TENANT shall maintain no less than five (5) moorings exclusively for the use of transient yachts as outlined in Section 13.02 hereof and the lease agreement between CITY and TENANT for Lease Sites 57-61/57W-61 W. Section 3.02 Unauthorized Use TENANT agrees to allow only those uses authorized in Section 3.01 herein above and that any unauthorized use thereof shall constitute a breach of this agreement and shall, at the option of CITY terminate this lease. In the event said premises are used for uses other than those specifically authorized herein, then in addition to all other remedies allowed by law or authorized elsewhere in this lease, CITY shall be entitled to receive from TENANT and TENANT shall be required to pay to CITY an additional rent calculated as a percentage of the "gross sales" as defined herein, accountable to such unauthorized use, which is equal to twice what such percentage would have been had such use been authorized in advance. Said additional rent shall be retroactive to the commencement of such unauthorized use and shall continue until the unauthorized use is abated. The parties agree and understand that the collection and acceptance by CITY of this additional rental, shall not, in any way be deemed a waiver nor estoppel of CITY'S right to require abatement of the unauthorized use or at CITY'S option to pursue any other remedies available at law or equity. • In the event the parties cannot agree on whether a use is authorized by this lease, the parties shall appoint a three member committee whose determination of that issue shall be final. Each party shall appoint one member and those two members shall appoint the third. Section 3.03 Operation of Business - Hours of Operation Failure to actively and diligently conduct the business authorized herein, constitutes a breach of the agreement and shall, at the option of CITY, terminate this lease. Section 3.04 Tidelands Trust TENANT shall use and occupy said premises in complete compliance with the Tidelands Trust purposes under which said premises or any portion thereof are held by CITY pursuant to the grants from the State of California as set forth hereinabove. Section 3.05 Compliance with Law TENANT shall, at his sole cost and expense, comply with all of the requirements of all local, municipal, county, state and federal authorities now in force, or which may hereafter be in force, pertaining to the said premises, and shall faithfully observe in the use of the premises all local, municipal and county ordinances and state and federal statutes, rules and regulations now in force or which may hereafter be in force. TENANT shall not allow liveaboard use of any vessel on said premises in excess of sixty (60) days in any twelve month period without the vessel owner first obtaining a liveaboard permit in compliance with the City's Vessel Habitation Ordinance. The judgment of any court of competent jurisdiction, or the admission of TENANT in any action or proceeding against TENANT, whether CITY be a party thereto or not, that TENANT has violated any such ordinance, statute, rule or regulation in the use of the premises shall be conclusive of that fact as between CITY and TENANT. Section 3.06 Waste or Nuisance TENANT shall not commit or permit the commission by others of any waste on said • premises; TENANT shall not maintain, commit, or permit the maintenance or commission of any nuisance as defined by law on said premises; and TENANT shall not use or permit the use of said premises for any unlawful purpose. Article 4 CONSTRUCTION, ALTERATION AND REPAIRS • Section 4.01 Construction Approval TENANT shall not make or permit any other person to make any alterations or structural additions or structural modifications to said premises or to any structure thereon or facility appurtenant thereto if the cost thereof shall exceed five thousand ($5,000) dollars, without the written consent of CITY first had and obtained as follows: Prior to the commencement of any phase of future construction, TENANT shall submit to the Morro Bay Planning Department for approval and recommendation to the CITY Council, a development and improvement plan for the leased premises which shall provide for the full and complete development of the leased premises, showing all facilities, structures, landscaping or other improvements to be constructed or installed on each portion of the lease premises or facilities appurtenant thereto, and shall include a detailed estimate of the cost of construction, and installation of such improvements and a detailed schedule showing the proposed commencement and completion date of each phase of the development and improvement. Where required by the Morro Bay Municipal Code, California Coastal Act, Corps of Engineers or any other agency having authority over the proposed project, Conditional Use Permits, Concept Plans, Precise Plans, Coastal Development Plans, and any other required plans or permits shall be applied for and/or approved prior to any construction, alteration or repairs. Section 4.02 Construction Bond Prior to the commencement of any construction the cost of which is greater than the amount of $10,000, TENANT shall file with the Morro Bay CITY Clerk a final detailed Civil Engineers, Registered Architect's or Licensed and Bonded General Contractor's estimate of the cost of construction and installation of improvements on the leased premises. Said estimate must be submitted to the CITY Engineer for approval. TENANT shall file with the Morro Bay CITY Clerk a faithful performance bond, in a form and issued by a corporate surety company issatisfactory to CITY, in an amount equal to One Hundred percent (100%) of the final detailed cost estimate, securing the faithful performance of TENANT or his contractor in the completion of said construction. TENANT shall also file with the Morro Bay CITY Clerk a labor and materials bond, in a form and issued by a corporate surety company satisfactory to CITY, in an amount equal to fifty percent (50%) of the final detailed cost estimate, securing the payment of all claims for the performance of labor or services on, or the furnishing of materials for, the performance of said construction. In lieu of the above referenced bonds, TENANT may post cash deposits or may make other mutually satisfactory arrangements to guarantee the completion of construction projects. In the event the contractor bonds the project he may name CITY as additional indemnitee to comply with these requirements. Section 4.03 Mechanics' Liens At all times during the term of this lease, TENANT shall keep said premises and all buildings and improvements now or hereafter located on said premises free and clear of all liens and claims of liens for labor, services, materials, supplies, or equipment performed on or furnished to said premises. TENANT further agrees to at all times, save CITY free and harmless and indemnify it against all claims for labor or materials in connection with any improvement, repairs, or alterations on the leased premises, and the cost of defending against such claims, including reasonable attorney's fees. Should TENANT fail to pay and discharge or cause said premises to be released from such liens or claim of liens within ten (10) days after the filing of such lien or levy, TENANT shall upon written notification be required to immediately deposit with CITY a bond conditioned for payment in full of all claims on which said lien or levy has been filed. Such bond shall be • acknowledged by TENANT as principal and by a company or corporation, licensed by the Insurance Commissioner of the State of California to transact the business of a fidelity and surety insurance company as surety. The beneficiary of any security instrument which instrument is on record with CITY, shall have the right to file such a bond on behalf of TENANT. Section 4.04 Ownership of improvements The parties agree that at the termination of this lease, however occurring, TENANT shall • have 60 days thereafter to remove all structures, facilities, installations, improvements and other property belonging to TENANT from the leased premises. The parties further agree that CITY also has the option and right to require TENANT to remove all structures, installations, improvements of any kind or other property belonging to or placed upon the leased premises by TENANT at the termination of this lease, however occurring, providing CITY gives notice, in writing, no later than 30 days prior to the termination of the lease, of its decision to require that such improvements be removed. If CITY exercises such option and TENANT fails to remove such installations or improvements within 60 days after the termination of this lease, CITY shall have the right to have such installations or improvements removed at the expense of TENANT. If neither TENANT nor CITY exercise its option to remove or require the removal of as the case may be the improvements and installations, then title to such installations, structures and improvements shall vest in CITY and TENANT shall not remove same. Article 5 HYPOTHECATION OF LEASE CITY shall not be responsible for notifying any lien or security interest holder in the property of any default in the performance of the lease by TENANT unless the lien or security interest holder shall have previously registered with and notified CITY of such lien or security interest and filed with the City Clerk a copy of same. Article 6 REPAIRS, MAINTENANCE AND RESTORATION Section 6.01 Maintenance by TENANT At all times during the term of this lease, TENANT shall, at TENANT'S own cost and expense, keep and maintain said premises and all improvements now or hereafter on said premises in good order and repair and in a safe and clean condition including maintenance and • inspection of mooring gear and tackle as required by the City. Furthermore, TENANT shall, at TENANTS own cost and expense, maintain at all times during the term of this lease the whole of said premises as well as any improvements, landscaping, or facilities thereon in a clean, sanitary, neat, tidy, orderly and attractive condition. CITY may, at the sole option of CITY, clean and clear said premises or remove and store any individual mooring site, mooring gear and tackle, at TENANT'S cost and expense, in the event TENANT fails to maintain the premises or the mooring gear and tackle as required after fifteen (15) days written notice to TENANT from CITY of CITY's intent to exercise this option. Section 6.02 Requirements of Govemmenta/ Agencies At all times during the term of this lease, TENANT, at TENANT'S own cost and expense, shall: (1) Make all alterations, additions, or repairs to said premises or the improvements or facilities on said premises required by any valid law, ordinance, statute, order, or regulation now or hereafter made or issued by any federal, state, county, CITY or other governmental agency or entity; (2) Observe and comply with all valid laws, ordinances, statutes, orders, and regulations now or hereafter made or issued respecting said premises or the improvements or facilities located thereon; (3) Obtain all required permits pursuant to the Morro Bay Municipal Code or State law prior to the instigation of any repair or maintenance activity. (4) Indemnify and hold CITY and the property of CITY, including said premises, free and harmless from any and all liability, loss, damages, fines, penalties, claims and actions resulting from TENANT'S failure to comply with and perform the requirements of this section. • Section 6.03 Failure to Repair In the event failure to repair results in a hazardous or unsafe condition, CITY shall have • the right and option but not the obligation to close and prohibit access to the unsafe portion of the leased premises until such repairs are completed and accomplished and the premises rendered safe for public use. Failure by CITY to enforce any of the provisions of this Article shall not constitute a waiver of these provisions and CITY may at any time enforce all of the provisions of this Article, requiring all necessary repairs, rebuilding or replacement. Section 6.04 TENANT'S Duty to Restore Premises Should, at any time during the term of this lease, any buildings or improvements now or hereafter on said premises be destroyed in whole or in pan by fire, theft, the elements, or any other cause not the fault of CITY, this lease shall continue in full force and effect and TENANT, at TENANTS own cost and expense, shall repair and restore the damaged or destroyed building, buildings, improvement, or improvements according to the original plan thereof or according to such modified plans therefore as shall be approved in writing by CITY. The work of repair and restoration shall be commenced by TENANT within one hundred eighty (I80) days after the damage or destruction occurs and shall be completed with due diligence not longer than one (1) year after the work is commenced. In all other respects, the work of repair and restoration shall be done in accordance with the requirements for original construction work on said premises set forth in Article 4 of this lease. Section 6.05 Inspection by CITY TENANT shall permit CITY or CITY'S agents, representatives, or employees to enter said premises at all reasonable times for the purpose of inspecting said premises to determine whether TENANT is complying with the terms of this lease and for the purpose of doing other lawful acts that may be necessary to protect CITY'S interest in said premises under this lease or to perform CITY'S duties under this lease. Section 6.06 Option to Terminate Lease for Destruction Notwithstanding the provision of Section 6.05 of this lease, TENANT shall have the • option of terminating this lease on the last calendar day of any month by giving CITY at least thirty (30) days prior written notice of TENANTS intent to do so and by removing, at TENANTS own cost and expense, all debris and remains of the damaged improvements from said premises where: (I) Any buildings or improvements now or hereafter on said premises are so damaged or destroyed by fire, theft, the elements, or any cause not the fault of TENANT or CITY during the last fifteen (15) years of the term of this lease that they cannot be repaired and restored as required by Section 6.05 of the lease at a cost not exceeding thirty-five (35) percent of the cost of replacing all buildings and improvements if totally destroyed then, immediately preceding the calamity damaging or destroying the damaged buildings or improvements, located on said premises. (2) Any buildings or improvements now or hereafter on said premises are so damaged or destroyed by fire, theft, the elements, or any cause not the fault to TENANT or CITY during the last ten (10) years of the term of this lease that they cannot be repaired and restored as required by Section 6.05 of this lease at a cost not exceeding fifteen (15) percent of the cost of replacing all buildings and improvements if totally destroyed then, immediately preceding the calamity damaging or destroying the damaged or destroyed buildings or improvements, located on said premises. Section 6.07 Application of Insurance Proceeds Any and all fire or other insurance proceeds that become payable at any time during the term of this lease because of damage to or destruction of any buildings or improvements on said premises shall be paid to TENANT and applied by TENANT toward the cost of repairing and restoring the damaged or destroyed buildings or improvements in the manner required by Section 6.05 of this lease; provided, however, that should TENANT exercise the option given TENANT by Section 6.07 of this lease to terminate this lease because of damage to or destruction of buildings or improvements on said premises, then, in that event, any and all fire or other • insurance proceeds that become payable because of such damage or destruction: (1) Shall be applied first toward the reduction of the unpaid principal balance of the • obligation secured and discharging said premises from any then outstanding encumbrance or encumbrances incurred by TENANT pursuant to Article 5 of this lease; and (2) Then the balance of the proceeds, if any, shall be paid to CITY to compensate CITY, at least in part, for the loss to its fee estate of the damaged or destroyed buildings or improvements. Article 7 INDEMNITY AND INSURANCE Section 7.01 Indemnity Agreement TENANT shall indemnify and hold CITY and the property of CITY, including said premises and any buildings or improvements now or hereafter on said premises, free and harmless from any and all liability, claims, loss, damages, or expenses resulting from TENANTS occupation and use of said premises, specifically including, without limitation, any liability, claim, loss, damage, or expense arising by reason of: (1) The death or injury of any person, including TENANT or any person who is an employee or agent of TENANT, or by reason of the damage to or destruction of any property, including property owned by TENANT or by any person who is an employee or agent of TENANT, from any cause whatever while such person or property is in or on said premises or in any way connected with said premises or with any of the improvements or personal property on said premises; (2) The death or injury of any person, including TENANT or any person who is an employee or agent of TENANT, or by reason of the damage to or destruction of any property, including property owned by TENANT or any person who is an employee or agent of TENANT, caused or allegedly caused by either (a) the condition of said premises or some building or improvement on said premises, or (b) some act or omission on said premises of TENANT or any • person in, on, or about said premises with or without the permission and consent of TENANT; (3) Any work performed on said premises or materials furnished to said premises at the instance or request of TENANT or any person or entity acting for or on behalf of TENANT. (4) TENANT'S failure to perform any provision of this lease or to comply with any requirement of law or any requirement imposed on TENANT or said premises by any duly authorized governmental agency or political subdivision. Section 7.02 Liability Insurance TENANT shall at TENANTS own cost and expense, secure promptly after the execution of this lease and maintain during the entire term of this lease a broad form comprehensive coverage policy or policies of comprehensive general public liability, TENANTS business automobile coverage and property damage insurance, each with the combined single limit of not less than $1,000,000.00 issued by an insurance company acceptable to CITY and authorized to issue liability insurance in California, and which shall list CITY as the named primary additional insured, without offset to CITY'$ policies as respects all operations of TENANT. Any deductibles or self -insured retentions must be declared to and approved by CITY. The terms of said policies may be for such period as shall be designated by TENANT; provided however, that within two (2) months prior to the expiration date of such insurance terms, TENANT shall procure other policies of said insurance so that between the execution of this lease and the commencement of the lease tern, and throughout the entire lease term or any renewal thereof, or until the sooner termination hereof, CITY, its officials, employees, agents and volunteers shall always be added as named primary additional insured under the policies of comprehensive general liability, business automobile coverage, and property damage insurance, in accordance with the foregoing. CITY may at any time require TENANT to increase the minimum coverage limits for • insurance required by this lease, but every such increase shall be reasonable under the circumstances and in no event shall such increases more than double in any ten year period, except as required in Section 7.04. Section 7.03 Worker's Compensation TENANT shall maintain at TENANTS own expense and keep in full force and effect • during the term of this lease, Worker's Compensation Insurance as provided by law. Said insurance shall contain a waiver provision of subrogation rights against CITY. Section 7.04 Fire and Casualty Insurance TENANT shall, at TENANT'S own cost and expense, at all times during the term of this lease keep all buildings, improvements, and other structures on said premises, as well as any and all additions thereto, insured for ninety (90) percent of their full insurable value by insurance companies authorized to issue such insurance in California against loss or destruction by fire and the perils commonly covered under the standard and special form endorsement to fire insurance policies in the CITY of Mono Bay. Any loss payable under such insurance shall be payable to TENANT, CITY, and any Lender under an encumbrance incurred by TENANT pursuant to Article 5 of this lease as their interests may appear. Any proceeds received because of a loss covered by such insurance shall be used and applied in the manner required by Section 6.08 of this lease. Section 7.05 Specific Perils to be Insured Notwithstanding anything to the contrary contained in Section 7.04 of this lease, the insurance required by Section 7.04 of this lease shall, whether or not included in the standard extended coverage endorsement mentioned in Section 7.04, insure all buildings, improvements, and other structures on said premises, as well as any and all additions thereto, against loss or destruction by water damage, windstorm, cyclone, tomado, hail, explosion, riot, riot attending a strike, civil commotion, malicious mischief, vandalism, aircraft, fire, smoke damage, and sprinkler leakage. Furthermore, the insurance required by Section 7.04 of this lease during the construction of said building project described in Article 5 shall have course of construction, vandalism, and malicious mischief clauses attached insuring said project during its construction and all materials delivered to the site of said building project for their full insurable value. Section 7.06 Deposit of Insurance with CITY • TENANT shall within ten (10) days after the execution of this lease and promptly thereafter when any such policy is replaced, rewritten, or renewed deliver to CITY a true and correct copy of an insurance binder and within 45 days deliver to CITY a true and correct copy of each insurance policy required by this Article of this lease and an endorsement to the policy and a certificate executed by the insurance company or companies or their authorized agent evidencing such policy or policies. Section 7.07 Notice of Cancellation of Insurance Each insurance policy required by this Article of this lease shall contain a provision that it cannot be canceled for any reason nor can the coverage or limits be reduced unless ten (10) days prior written notice of the cancellation or reduction is given to CITY in the manner required by this lease for service of notices on CITY by TENANT. Section 7.08 No Subrogation Each insurance policy required under this lease including those insuring TENANT against claims, expense, or liability for injury to persons or property shall provide that the insurer shall not acquire by subrogation any right to recovery which TENANT has expressly waived in writing prior to the occurrence of the loss. TENANT hereby waives any right of recovery against CITY for each such claim, expense, liability, or business interruption. TENANT agrees that if TENANT fails to acquire such insurance TENANT shall not have a claim against CITY for loss of fixtures or inventory or business interruption. Article 8 TAXES AND UTILITIES Section 8.01 TENANT to Pay Taxes TENANT shall pay, before delinquency, all taxes and assessments levied upon or assessed to TENANT on the lease premises by reason of said lease or of any equipment, appliances, improvement, or other development of any nature whatsoever, erected, installed, or • maintained by TENANT or by reason of the business or other activity of TENANT upon or in connection with said premises. TENANT shall pay all possessory interest taxes applicable to the lease premises. Section 8.02 TENANT to Pay License and Permit Fees TENANT shall pay any fees imposed by law for licenses or permits for any business or • activities including construction of TENANT upon the leased premises. Section 8.03 Utilities TENANT shall pay, or cause to be paid, and hold CITY and the property of CITY including said premises free and harmless from all charges for the furnishing of gas, water, electricity, telephone service, and for other public utilities to said premises during the term of this lease and for the removal of garbage and rubbish from said premises during the term of this lease. Article 9 CONDEMNATION Section 9.01 Total Condemnation If title and possession to all of the premises is taken for any public or quasi -public use under any statute, or by the right of eminent domain, then this lease shall terminate on the date that possession of the premises is taken, and both CITY and TENANT shall thereafter be released from all obligations including rent which shall be prorated to the date of termination, except those specified in Section 9.02 of this lease. Section 9.02 Condemnation Award Any compensation or damages awarded or payable because of the taking of all or any portion of said premises by eminent domain shall be allocated between CITY and TENANT as follows: (1) All compensation or damages awarded or payable for the taking by eminent domain of any land that is part of the said premises shall be paid to and be the sole property of CITY free and clear of any claim of TENANT or any person claiming rights to said premises through or under TENANT. • (2) All compensation or damages awarded or payable which is specifically attributed by the taking party to the "good will" of TENANTS business shall be paid to and be the sole property of TENANT. (3) All compensation or damages awarded or payable because of any improvements constructed or located on the portion of said premises taken by eminent domain where only a portion of said premises is taken by eminent domain and TENANT is not entitled to or does not terminate this lease shall be applied in the manner specified in Section 9.04 toward the replacement of such improvements with equivalent new improvements on the remaining portions of said premises. (4) All compensation or damages awarded or payable because of any improvements constructed or located on the portion of said premises taken by eminent domain where this lease is terminated because of the taking by eminent domain, whether all or only a portion of said premises is taken by eminent domain, shall be allocated between CITY and TENANT as follows: (a) That percentage of the compensation or damages awarded or payable because of the improvements that equals the percentage of the full tens of this lease that has, at the time of the taking, not expired shall belong to and be the sole property of TENANT. (b) That percentage of the compensation or damages awarded or payable because of the improvements that equals the percentage of the full term of this lease that has, at the time of the taking, expired shall belong to and be the sole property of CITY. (c) The term "time of taking" as used in this subparagraph shall mean 12:01 a.m. of, whichever shall first occur, the date title or the date physical possession of the portion of said premises on which the improvements are located is taken by the agency or entity exercising the • eminent domain power. (5) Any severance damages awarded or payable because only a portion of said premises is taken by eminent domain shall be: [ 00 {aOuetea) io (a) The sole and separate property of TENANT during the first two years of the term of • this lease; (b) Equally divided, except to the extent needed to replace any improvements taken by eminent domain with equivalent improvements on the remaining portion of said premises where TENANT cannot or does not terminate this lease, between CITY and TENANT during the 3rd to 4th years of the term of this lease; and (c) The sole and separate property of CITY during the last (not aonlicable) years of the term of this lease. Section 9.03 Termination for Partial Taking Should, during the term of this lease, title and possession of only a portion of said premises be taken for any public or quasi -public use under any statute, or by right of eminent domain, TENANT may, at TENANT'S option, terminate this lease by serving written notice of termination on CITY within ninety (90) days after TENANT has been deprived of actual physical possession of the portion of said premises taken for such public use. This lease shall terminate on the first day of the calendar month following the calendar month in which the notice of termination described in this section is served on CITY. On termination of this lease pursuant to this Article, all sub -leases and sub -tenancies in or on said premises or any portion of said premises created by TENANT under this lease shall also terminate and said premises shall be delivered to CITY free and clear of all such sub -leases and sub -tenancies, provided, however, that CITY may, at CITY'S option, by mailing written notice to a subtenant allow any sub -tenant to attom to CITY and continue his or her occupancy on said premises as a TENANT of CITY. On termination of this lease pursuant to this section, however, both CITY and TENANT shall be released from all obligations, except those specified in Section 9.02 of this lease, under this lease. Section 9.04 Rent Abatement for Partial Taking Should, during the term of this lease, title and possession of only a portion of said • premises be taken under the power of eminent domain by any public or quasi -public agency or entity and TENANT does not terminate this lease, then this lease shall terminate as to the portion of said premises taken under eminent domain on the date actual physical possession of the portion taken by eminent domain is taken by the agency or entity exercising the eminent domain power. Furthermore, the rent payable under this lease shall, as of that time, be reduced in the same proportion that the value of the portion of said premises taken by eminent domain bears to the full value of said premises at that time; provided, however, that TENANT shall replace any improvements or facilities with equivalent new facilities on the remaining portion of said premises and do all other acts at TENANTS own cost and expense required by the eminent domain taking to make the remaining portion of said premises fit for the use specified in this lease. Section 9.05 Conveyance in Lieu of Eminent Domain A voluntary conveyance by CITY, with the consent of TENANT, of title to all or a portion of said premises to a public or quasi -public agency or entity in lieu of and under threat by such agency or entity to take the same by eminent domain proceedings shall be considered a taking of title to all or such portion of said premises under the power of eminent domain subject to the provisions of this Article. Article 10 ASSIGNMENT AND SUBLEASING Section 10.01 No Assignment Without CITrS Consent Except as provided in Section 10.02 of this lease, TENANT shall not assign or otherwise transfer this lease, any right or interest in this lease, or any right or interest in said premises or any of the improvements that may now or hereafter be constructed or installed on said premises without the express written consent of CITY evidenced by resolution first had and obtained. Any assignment or transfer by TENANT without the prior written consent of CITY, whether it be voluntary or involuntary, by operation of law or otherwise, is void and shall, at the option of CITY, terminate this lease. A consent by CITY to one assignment shall not be deemed to be a • consent to any subsequent assignment of this lease by TENANT. CITY shall not unreasonably nor arbitrarily withhold its approval to the assignment or transfer of • this lease to an assignee who is financially reliable and qualified to conduct the business for which this lease was granted. It is mutually agreed that the personal qualifications of the person named herein as TENANT is a part of the consideration for granting of this lease and said party does hereby agree to maintain active control and supervision of the operation conducted on said premises. Section 10.02 Transfer of Stock as Assignment Should TENANT be a corporation, an unincorporated association, or a partnership, or should TENANTS interest in this lease be assigned to a corporation, an unincorporated association, or a partnership, pursuant to Section 10.01 of this lease, any transfer or assignment of any stock or interest in the corporation totaling in the aggregate more than forty (40) percent of all such stock or interest in the corporation shall be considered an assignment of this lease requiring the prior written consent to CITY; provided, however, that a transfer from TENANT to a corporation of which TENANT owns 100% of the shares and any transfer of shares to a shareholder's spouse, children, or grandchildren caused by the shareholder's death shall be excepted from this provision. Section 10.03 Application for Assignment A condition of an assignment shall be TENANT shall file with the CITY an application to assign the leasehold prepared by the prospective assignee. Concurrently with filing the application, TENANT shall pay a fee in cash or certified or cashier's check to enable CITY adequately to investigate the proposed assignee's qualifications as a permitted assignee. CITY shall not be required to account for the use of the sum paid. If the proposed assignee's net worth on the date of assignment is not sufficient to reasonably guarantee successful operation of the leased premises, CITY may require TENANT to guarantee such assignee's obligations hereunder for such period as CITY deems advisable. Net worth shall mean the amount by which the total of all assets shall exceed the total of all liabilities as determined in accordance with general accepted accounting principles as approved by CITY'S auditor, or other authorized representative • or agent. Section 10.04 Probate Transfer or Assignment Nothing herein contained will prevent the transfer of this lease by will, or by operation of law under the intestacy provisions of the California Code as it may from time to time be amended. Probate sale of the leasehold interest will not be permitted without the consent of the CITY, evidenced by resolution, first had and obtained. Section 10.05 No Sublease Without CITY'S Consent TENANT shall not sub -lease the whole nor any part of the lease premises, or suffer any other person (the agents and employees of TENANT excepted) to occupy or use the leased premises, or any portion thereof, without the written consent of CITY evidenced by resolution first had and obtained. A consent to one subletting, occupation, or use by another person shall not be deemed to be a consent to any subsequent subletting, occupation, or use by another person. Any such subletting without CITY'S written consent shall he void, and shall at CITY'S option, terminate this lease. City shall not unreasonably nor arbitrarily withhold its consent to one who is qualified and financially reliable. Section 10.06 Term of Sub -lease In no event shall the term of any sub -lease extend beyond the term of this master lease. Termination of this lease prior to the expiration of this lease term shall also terminate any and all sub -leases, provided, however, that CITY may, at CITY'S option by mailing written notice to a sub -tenant, allow any sub -tenant to anom to CITY and continue his or her occupancy on said premises as a TENANT of CITY. Section 10.07 Sub -Tenant Subiect to Lease Terms Any and all sub -leases shall be expressly made subject to all the terms, covenants, and conditions of this lease. A breach of the terms of this lease by a sub -tenant or sub -lessee shall • constitute a breach on the part of TENANT and shall subject both the sub -tenant and TENANT to all the remedies provided to CITY herein and by law. Failure to report and pay the agreed percentage of gross sales as provided herein by any sub -tenant shall constitute a breach of this 13 lease. TENANT hereby agrees to and does guarantee payment of such percentage rentals due by a sub -tenant under the terms of this lease. • Section 10.08 Consent Form Agreement Prior to any consent by CITY to any sub -lease hereof, TENANT shall cause to be executed between TENANT and any sub -lessee an agreement making the CITY of Morro Bay a third party beneficiary, in a form acceptable to CITY, whereby the sub -lessee agrees to be bound by all of the terns, covenants and conditions of this lease. Further, it is agreed by TENANT that any default by the sub -lessee of any of the terms, covenants and conditions of the master lease shall be deemed to be violations by TENANT of the master lease and that all remedies of CITY for such violation, including termination of the master lease, shall immediately be enforceable by CITY against TENANT. Further, it is agreed that TENANT must apply any and all monies received from any sub -tenant first to the payment of obligations of the sub -TENANT to CITY. Section 10.09 TENANT Remains Liable Prior to approval by CITY to any sub -lease hereof, TENANT shall agree to be primarily and jointly and severally liable to CITY for all obligations due CITY by any sub -lessee, including the payment of rents, and TENANT shall agree that CITY may proceed directly against TENANT for any obligation owing CITY by the sub -lessee. Section 10.10 Exception for Boatslips. Motels Notwithstanding any provisions herein to the contrary, the terms "assignment," "subletting," "occupation," or "use," shall not be construed or interpreted to mean or include the temporary, short term renting or leasing of boat slips, moorings, motel, hotel, or apartment accommodations on the premises. Article 11 DEFAULT AND TERMINATION Section11.01 Abandonment by TENANT Should TENANT breach this lease and abandon said premises prior to the natural • expiration of the term of this lease, CITY may continue this lease in effect by not terminating TENANT'S right to possession of said premises, in which event CITY shall be entitled to enforce all CITY'S rights and remedies under this lease including the right to recover the rent specified in this lease as it becomes due under this lease. Section 11.02 Termination for Breach by TENANT All covenants and agreements contained in this lease are declared to be conditions to this lease and to the tern hereby demise to TENANT. Should TENANT default in the performance of any covenant, condition, or agreement contained in this lease and the default not be cured within thirty (30) days after written notice of the default is served on TENANT by CITY, then CITY may terminate this lease immediately, and that in the event of such termination, TENANT shall have no further rights hereunder and TENANT shall thereupon forthwith remove from said premises and shall have no further right or claim thereto and CITY shall immediately thereupon have the right to re-enter and take possession of the leased premises subject to appropriate legal process. Section 11.03 Termination for Failure to Pay Rent If any default be made in the payment of rental as herein provided and such default shall not be cured within three (3) days after written notice thereof, CITY shall have the option to immediately terminate this lease; and that in the event of such termination, TENANT shall have no further right or claim thereto and CITY shall immediately thereupon have the right to re-enter and take possession of the leased premises subject to appropriate legal process. Section 11.04 BeneFcierv_Mav Cure Default CITY shall afford the beneficiary in any security instrument of record with CITY on the demise premises the right to cure any default by TENANT of the covenants, conditions, or agreements hereof, within the period hereinabove mentioned after written notice thereof, which said period shall be computed from the date said notice is mailed by the CITY to said • beneficiary, by registered mail. 13 • Section 11.05 Attorney Fees for Breach not ResultinE in Court Action In the event the CITY finds it necessary to retain an attorney in connection with the default by the TENANT or enforcement of any of the terms, conditions, and covenants of this lease, even though not resulting in an action in court, TENANT shall pay reasonable attorney's fees as reimbursement to CITY. Non-payment of attorneys' fees by TENANT within (3) days of written notice shall give rise to an independent legal action by CITY to collect same. If CITY is successful in such legal action CITY shall also be entitled to attorney fees and costs for the collection action. Section 11.06 Damages for Breach Should TENANT default in the performance of any covenant, condition or agreement contained in this lease and the default be incurable or not be cured within the time period set forth hereinabove, then CITY may terminate this lease and: (1) Bring an action to recover from TENANT: (a) The worth at the time of award of the unpaid rent which had been earned at the time of termination of the lease; (b) The worth at the time of award of the amount by which the unpaid rent which would have been earned after termination of the lease until the time of award exceeds the amount of rental loss that TENANT proves could have been reasonably avoided; (c) The worth at the time of award of the amount by which the unpaid rent for the balance of the term after the time of award exceeds the amount of rental loss that TENANT proves could be reasonably avoided; and (d) Any other amount necessary to compensate CITY for all detriment proximately caused by TENANT'S failure to perform his obligations under this lease; and • (2) Bring an action, in addition to or in lieu of the action described in subparagraph (1) of this section, to re-enter and regain possession of said premises in the manner provided by the laws of unlawful detainer of the State of California then in effect. Section 11.07 Cumulative Remedies The remedies given to CITY in the Article shall not be exclusive but shall be cumulative with and in addition to all remedies now or hereafter allowed by law and elsewhere provided in this lease. Section 11.08 Waiver of Breach The waiver by CITY of any breach by TENANT of any of the provisions of this lease shall not constitute a continuing waiver or a waiver of any subsequent breach by TENANT either of the same or a different provision of this lease. Section 11.09 Surrender of Premises On expiration or sooner termination of this lease, TENANT shall surrender said premises, all improvements in or on said premises, and all facilities in any way appertaining to said premises, to CITY in as good, safe, and clean condition as practicable, reasonable wear and tear excepted. Article 12 MISCELLANEOUS Section 12.01 Attorney's Fees Should any litigation be commenced between the parties to this lease concerning said premises, this lease, or the rights and duties of either in relation thereto, the party, CITY or TENANT, prevailing in such litigation shall be entitled, in addition to such other relief as may be granted in the litigation, to a reasonable sum as and for his attorney's fees in such litigation which shall be determined by the court in such litigation or in a separate action brought for that purpose. 14 • Section 12.02 Notices Any and all notice or demands by or from CITY to TENANT, or TENANT to CITY, shall be in writing. They shall be served either personally, or by registered or certified mail. Any notice or demand to CITY may be given to the CITY Clerk of the CITY of Morro Bay, City Hall, Morro Bay, California. Any notice or demand to TENANT may be given at: Morro Bay Yacht Club 541 Embarcadem Morro Bay, CA 93442 Such addresses may be changed by written notice by either party to the other party. Section 12.03 Governine Law This lease, and all matters relating to this lease, shall be governed by the laws of the State of California in force at the time any need for interpretation of this lease or any decision or holding concerning this lease arises. Section 12.04 Bindine on Heirs and Successors Subject to the provisions herein relating to assignment and subletting each and all of the terms, conditions, and agreements herein contained shall be binding upon and inure to the benefit of the heirs, executors, administrators, successors, and permitted assigns of any and all of the parties hereto; and all of the parties hereto shall be jointly and severally liable hereunder. Section 12.05 Partial Invalidiry Should any provision of this lease be held by a court of competent jurisdiction to be either invalid, void, or unenforceable, the remaining provisions of this lease shall remain in full force and effect unimpaired by the holding. Section 12.06 Sole and Only Aereement • This instrument constitutes the sole and only agreement between CITY and TENANT respecting said premises, the leasing of said premises to TENANT, or the lease terms herein specified and correctly sets forth the obligation of CITY and TENANT to each other as of its date. Any agreements or representations respecting said premises, their leasing to TENANT by CITY, or any other matter discussed in this lease not expressly set forth in this instrument are null and void. No modification, amendment, or alteration of this lease shall be valid unless it is in writing and signed by both parties. Section 12.07 Modification This agreement shall not be modified except pursuant to a written agreement executed by the MAYOR and CITY CLERK pursuant to prior CITY Council approval. Notwithstanding CITY Council approval, no agreement shall become effective until such agreement is in fact executed by the MAYOR and CITY CLERK. TENANT understands that this agreement may not be modified by oral statements by any person representing the CITY including the MAYOR and CITY CLERK. TENANT specifically agrees not to rely on oral statements, purported oral waivers, or purposed oral modifications and agrees not to rely upon purported written modifications unless they meet the requirements of this paragraph and are approved in writing pursuant to formal City Council action and a subsequent written modification signed by the MAYOR and CITY CLERK. Section 12.08 Time of Essence Time is expressly declared to be the essence of this lease. Section 12.09 Memorandum of Lease for Recordin Neither party, CITY or TENANT, shall record this lease without the written consent of the other. However, CITY and TENANT shall, at the request of either at any time during the term of this lease, execute a memorandum or "short form" of this lease for purposes of, and in a form suitable for, being recorded. The memorandum or "short form" of this lease shall describe the parties, CITY and TENANT, set forth a description of the leased premises, specify the term of this lease, and shall incorporate this lease by reference. 15 • Section 12.10 Termination for Nuclear Disaster This lease may be terminated by TENANT by ten day written notice in the event of a nuclear explosion or leak of substantial nature of the Diablo Nuclear Power Plant or the declaration of war by the United States of America. Article 13 SPECIAL PROVISIONS PECULIAR TO THIS LEASE SITE The following provisions apply to this lease site only: Section 13.01 Modification of Lease Site Boundary Lines and/or Termination of Lease Notwithstanding the specific description of the location of the leased premises contained in paragraph 1, page 2 hereinabove, in the event that circumstances (including both natural circumstances and action by CITY or other government agencies, such as the re -alignment of the navigable channel, dredging operations, or the implementation of an adopted Harbor Plan) reduce the area or depth of water, said location of the leased premises may be modified by CITY to insure that twenty three (23) moorings remain functional. All costs and expense of moving the mooring equipment or other property of TENANT shall be bome by TENANT. If such relocation is impossible or not provided for within a reasonable amount of time by CITY then the rent payable by TENANT shall be reduced by an amount equal to the percentage of moorings determined by CITY to be no longer usable. CITY reserves the right to terminate this lease without other cause and without reimbursement to TENANT in the event such relocation is not possible or practicable. In the event of such early termination, TENANT waives any claims against CITY by reason of such termination, the loss of use of the leased premises, loss of profits under this lease or any and all other damages TENANT might incur. CITY shall bear the costs and expense of removing moorings, tackle and other property of TENANT from the mooring site to the shore in the event CITY fails to provide substitute moorings sites or completely terminates this lease as a result of an adopted Harbor Plan. • Section 13.02 TENANT Shall Act as Host TENANT shall assume and perform the duties of Host for visiting yachtsmen for the City of Moro Bay in conjunction with Moro Bay Yacht Club pursuant to the provisions found in paragraph 41 of that certain lease agreement between the City of Moro Bay and the Moro Bay Yacht Club executed on December 30, 1976. CITY agrees that TENANT shall not be required to accommodate unreasonable requests of visiting vessels. The duties of Host include but are not limited to providing at least five (5) moorings for transient vessels. To provide for increased accessibility for visiting yachtsmen, mooring by any individual transient vessel using any of the five designated transient moorings shall be restricted to a maximum usage of thirty (30) calendar days in any single calendar year. TENANT shall advise the Harbor Department of the five (5) designated transient mooring locations and shall not change the designated transient mooring locations without prior written notice to the Harbor Department. Section 13.03 CITY Specifications Installation, maintenance and inspection of moorings shall be in accordance with and subject to CITY specifications and conditions as detailed in the Moro Bay Municipal Code as amended from time to time. Installation, maintenance and inspection costs shall be at the expense of TENANT. Each mooring shall be inspected for general condition and safety at a frequency and by a qualified person hired by TENANT subject to approval by CITY. Section 13.04 CWLMooring Area Dredee Proiect CITY anticipates commencing a maintenance dredging project in the mooring area within the next two years. This maintenance dredging project will improve the existing mooring area to CITY and TENANT's benefit. CITY may have to relocate or remove some yacht club moorings, at CITY's cost, to position dredge equipment and or conduct dredging activities. If moorings must be relocated or removed as determined by CITY, CITY will make every effort to provide alternate facilities for those vessels on removed or relocated moorings at no cost to the vessel owners, however this may require berthing vessels in a rafting situation on one of the City piers or moorings. 16 TENANT agrees to accommodate any vessel owners who do not desire to be rafted on the piers at other Morro Bay Yacht Club facilities. CITY agrees that it will not relocate or remove more than 6 moorings at any time and the period for removal or relocation of any mooring shall not exceed 90 days. There shall be no abatement of rent during the period of dredging. After dredging activities are completed CITY may allow TENANT to relocate some moorings to the newly dredged area. Prior to any relocation of moorings by TENANT, TENANT will submit to CITY a mooring relocation plan including details for each mooring to be relocated. TENANT must receive prior approval of the plan from CITY before relocating any mooring. Relocating moorings subsequent to the dredging will be at TENANT's sole cost and option. The total number of moorings under any proposed new plan shall not be less than 23. Mooring placement, maintenance, and operations shall be governed by Harbor Department Rules & Regulations and Chapter 15.28 of the Municipal Code. EXECUTED on June 23 1998, at Morro San Luis Obispo County, California. CITY OF MORRO BAY CATHY VAK, MAYOR ATTEST: 1UNIRANIN CYANCIL Approved as to Form: DAVID HUNT, CITY ATTORNEY MORRO BAY YACHT CLUB DONNA AROZENA,00MMDORE MORRO BAY YACHT CLUB MME-MMBER • a RESOLUTION NO.58-98 RESOLUTION RELATING TO THE CLASSIFICATION, COMPENSATION AND TERMS OF EMPLOYMENT OF MORRO BAY FIRE FIGHTERS OF THE CITY OF MORRO BAY THE CITY COUNCIL City of Morro Bay, California WHEREAS, in accordance with the provisions of the California Government Code Section 3500 et. seq. and Resolution No. 74-69 of the City of Morro Bay, the City's representatives have met and conferred in good faith pertaining to the subject of wages, benefits, and conditions of employment with the Morro Bay Fire Fighters Association; and WHEREAS, the meeting between the Morro Bay Fire Fighters Association and the City has resulted in a mutual agreement and understanding to recommend that the employees represented by the Morro Bay Fire Fighters Association accept all of the terms and conditions as set forth in a Memorandum of Understanding, an agreement attached and made a part of this resolution herewith; and WHEREAS, the City now desires to provide said salaries, benefits, and conditions to said Morro Bay Fire Fighters Association. NOW, THEREFORE, BE IT RESOLVED that the Morro Bay City Council does hereby approve and adopt in full the Memorandum of Understanding as attached and made a part of this resolution. PASSED AND ADOPTED by the Morro Bay City Council at a result meeting thereof held this 22nd day of June, 1998 by the following vote: AYES: Anderson, Elliott, Peirce, Peters, Novak NOES: None ABSENT: None ATTEST: CATHY NOVA , Mayor C� City of Morro Bay Coastal Resource Grant Application CITY OF MORRO BAY RESOLUTION NO. 57-98 RESOLUTION OF THE CITY OF MORRO BAY APPROVING THE APPLICATION FOR GRANT FUNDS FOR THE COASTAL RESOURCES GRANT PROGRAM UNDER SECTION 35030/ 35031 OF THE PUBLIC RESOURCES CODE FOR THE FOLLOWING PROJECT: RECONSTRUCTION OF CITY DOCK LOCATED AT 1250 EMBARCADERO WHEREAS, the Legislature of the State of California has enacted AB 1431 (Chapter 977 of the Statutes of 1996), which is intended to provide grant funds to coastal cities and counties affected by the impact of offshore energy developments for projects to enhance the management of coastal resources; and WHEREAS, the Resources Agency has established the application procedures and criteria for reviewing grant proposals from which the grant recipients will be selected; and • WHEREAS, said procedures and criteria established by the Resources Agency require a resolution certifying the approval of application by the applicant's governing body before submission of said application to the State; and WHEREAS, the application contains assurances that the applicant must comply with; and WHEREAS, the applicant, if selected, will enter into an agreement with the State of California to carry out the coastal resources project; and WHEREAS, The City of Morro Bay will re -assume control of a 200 foot pier (hereinafter referred to as City Pier) located at the foot of the North T pier previously leased to Ming Dynasty as this company was not financially capable of the capital investment required to complete the major repairs required and maintain the facility; and WHEREAS, the commercial fishing unloading and buying operation at City pier has almost totally ceased and this has caused congestion, and economic detriments to commercial fishermen in Morro Bay; and WHEREAS, operation of City pier as a fish buying/unloading station is critical to the infrastructure required to maintain the commercial fishing industry in Morro Bay; and • WHEREAS, many local fishermen have relocated to this area to avoid the negative . impacts occurring from offshore oil and gas development in Santa Barbara and Ventura; and 0 City of Morro Bay Coastal Resource Grant Application WHEREAS, without public investment in facilities such as the City dock this facility will close. NOW, THEREFORE, BE IT RESOLVED THAT on the 22nd day of June, 1998, the City Council of the City of Morro Bay: Approves the filing of an application for the Coastal Resources Grant Program for grant assistance. 2. Certifies that the City will make adequate provisions for operation and maintenance of the project. Appoints Rick Algert. Harbor Director as agent of the City of Morro Bay to conduct all negotiations, execute and submit all documents, including, but not limited to applications, agreements, amendments, payment requests and so on, which may be necessary for the completion of the aforementioned project. • Approved and Adopted the 22nd day of June, 1998. I the undersigned hereby certify that the foregoing Resolution Number 57-98 was duly adopted by the City Council for the City of Morro Bay by the following roll call vote: Ayes: Anderson, Elliott, Peirce, Peters, Novak Noes: None Absent: None CATHY NOVA , Mayor ATTEST Q b BRIDGE AVER, City Clerk 0 4 E City of Morro Bay Coastal Resource Grant Application 1. PROJECT SUMMARY The City of Morro Bay hereby requests $281,500 from the State of California Resources Agency Coastal Resources Grant Program, Part A. Category. The purpose of the grant is to reconstruct a City owned Pier (referred to as City Dock in the remainder of this application) located at 1250 Embarcadero, on the Morro Bay waterfront. The City will provide cash and in kind services of at least $42,000 to cover costs associated with the preparation of engineering plans, acquisition of required permits, bid administration, construction management and inspection. The City dock, located at the foot of the North T pier, (Exhibit F, previously known as Ming Dynasty or Cordero Winston Fish Company Dock) is approximately 200 water frontage feet, constructed in traditional wood pile, cap, stringer and deck board configuration with two existing fish hoists. The dock and hoist are in disrepair. The City dock has been leased out to four (4) different operators in the last 15 years and has recently, once again, returned to City control when the last operator, fish buyer, Ming Dynasty Inc., was unable to meet the maintenance requirements of the City. With the estimated repair costs in excess of $300,000, there are no potential private operators interested in leasing the pier in its current condition. There are, however, a number of potential parties who are interested in leasing and operating the facility, if the City can accomplish • the necessary major repairs. The grant funds which the City is applying for will allow this critical marine dependent use to be re-established in an area that will otherwise be closed both to the fishing industry and to the public. • The City Dock is located in an area of the waterfront which is governed by specific standards contained in Measure D , which created the Commercial Fishing (CF) Zoning District. Measure D was a people's initiative passed in 1983 limiting the uses on the waterfront area north of Beach Street to Commercial fishing related businesses. This dock spans approximately 200 feet at the critical water/land interface. The City has made the commitment to reserve this area for the commercial fishing industry but now must recognize that private sector investment in commercial berthing, seafood processing or marketing facilities is virtually non-existent in the Central Coast. With no private sector businesses willing to invest in the site, the City faces the prospect of either closing this pier or attempting to repair the facility ourselves. State Fish and Game commercial fish license issuance data indicates a significant increase in commercial fishing license activity in this area in the past 20 years. Many fishermen have relocated to the Morro Bay area to avoid the congestion in the increasingly limited fisheries areas in the Santa Barbara Channel. The Santa Barbara Channel fishing effort continues to be pused into more limited areas due to offshore oil development, the establishment of the Channel Islands National Park and reduced resources in traditional fisheries. 1 City of Morro Bay Coastal Resource Grant Application i More than ever, fishermen are attempting to operate in this area due to the commercial fishing friendly Morro Bay community, the plentiful resources and the reduced fishing grounds in other areas of the coast. There is a tremendous need in Morro Bay for more dock space and access for fish unloading. Unfortunately, based on the past 15 years experience in attempting to lease the City dock, the private sector will not support the kind of capital investment and permitting acquisition effort required to repair a 200 foot long pier and hoists. The receipt of these grant funds will allow the City to reconstruct the dock and have it back in operation by the Spring of 1999, thereby allowing this port to continue to service those fishermen who have relocated to the Central coast due to offshore oil impacts in the Santa Barbara \ Ventura fishing grounds. 2. AGENCY ELIGIBILITY Attachments: • a. Resolution Adopted by the City Council • 2 • RESOLUTION NO.56-98 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY ORDERING THE LEVY OF THE ANNUAL ASSESSMENT FOR THE NORTH POINT NATURAL AREA LANDSCAPING AND LIGHTING MAINTENANCE ASSESSMENT DISTRICT THE CITY COUNCIL City of Morro Bay, California WHEREAS, on May 26, 1998 the City Council did adopt Resolution No. 51-98 declaring the Council's intent to levy an assessment for the maintenance of the North Point Natural Area Landscaping and Lighting Maintenance Assessment District and approving the Engineers Report; and WHEREAS, a public hearing to hear all protests as to the levy of the annual assessment of said district was scheduled for June 22, 1998 at 6:00 p.m. in the Veteran's Memorial Building; and • WHEREAS, notices were mailed to one hundred percent (100%) of the property owners in the proposed district regarding the proposed assessment and listing the date, time and location of the protest hearing; and WHEREAS, the City Council did hear objections of all interested parties as to the levy of the annual assessment for the assessment district on June 22, 1998 at the Veteran's hemorial Building, NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Mono Bay that the annual levy for the maintenance of North Point Natural Area Landscaping and Lighting Maintenance Assessment District generally located as shown on Exhibit "A" attached hereto is hereby ordered and the assessment of $5,645 to be equally distributed per assessable parcel for the Fiscal year 1998-99 is hereby confirmed. BE IT FURTHER RESOLVED by the City Council of the City of Morro Bay that adoption of this resolution shall constitute the levy of an assessment for the Fiscal Year 1998-99 and the City Clerk shall file the diagram and assessment with the County of San Luis Obispo Auditor. 0 • Resolution No. 56-98 Page 2 PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting thereof held this 22nd day of June, 1998 by the following roll call vote: AYES: Anderson, Peters, Novak NOES: Elliott, Peirce ABSENT: None nJ rr--" CATHY NOVAk MAYOR ATTEST: ,)k &A-� BRIDGETTGAUER, CITY CLERK • W ...W.5&98 • "EXHIBIT A" CITY OF MORRO BAY • NORTH POINT NATURAL AREA LANDSCAPING AND LIGHTING MAINTENANCE ASSESSMENT DISTRICT ASSESSMENT DIAGRAM POINT NATURAL AREA 10 = COUNTY ASSESSORS PARCEL NUMBER 0 RESOLUTION NO. 55-98 • RESOLUTION OF THE CITY OF MORRO BAY GRANTING AUTHORITY TO THE CITY ATTORNEY TO GIVE THE CONSENT OF THE CITY TO JOIN ON AMICUS BRIEFS WHEREAS, it is in the best interest of the City of Morro Bay to have an active role in issues before the appellate courts of the State of California and the appellate courts of the United States which affect this City's interests; and WHEREAS, it is often the situation where requests for amicus joinder are forwarded with very short timelines, thus making it impossible for Council action to grant authority for communication of such joinder; and WHEREAS, the office of the City Attorney is uniquely skilled in evaluating these issues and, as a matter of its job description, required to monitor developments in the law in order to protect the City; and NOW THEREFORE BE IT RESOLVED by the City Council of the City of Morro Bay as follows: 1. The City Attorney is authorized to grant the consent of the City to join as amicus in matters of general importance to cities in the State of California and the cities in the United States where those cases have potentially significant impacts upon the City of Morro Bay. • Z. If the City Attorney authorizes the use of the City's name in support of an amicus brief, he or she shall report to the Council at the next immediate Council meeting regarding the communication of the consent, the nature of the case, and his reason for providing that consent. PASSED AND ADOPTED by the City Council of the City of Morro Bay at the regular meeting thereof held this 8th day of June, 1988, by vote as set forth below: AYES: Anderson, Elliott, Peirce, Peters, Novak NOES: None ABSENT: None ATTEST: QuR/l/ Bridgett B er, City Clerk s/drh/cmbc1X admcn/amcusres. do 0 Cathy ak, Mayor • RESOLUTION NO.54-98 RESOLUTION ESTABLISHING THREE HOUR PARKING LIMITATION WEST OF THE EMBARCADERO ON HARBOR STREET, MORRO BAY BOULEVARD, PACIFIC STREET AND MARINA STREET AND UPON THE PUBLIC PARKING LOT ON THE EAST SIDE OF EMBARCADERO BETWEEN MARINA AND DRIFTWOOD STREETS the CITY COUNCIL, City of Morro Bay, California WHEREAS, Morro Bay Municipal Code Section 10.36.050 authorizes the City Council to designate limited time parking on any street and on any public property of the City; and WHEREAS, it has been deemed appropriate and in the interest of the general welfare to establish a three hour parking limitation west of the Embarcadero on the "street ends" of Harbor Street, Morro Bay Boulevard, Pacific Street and Marina Street and the public parking lot on the east of the Embarcadero between Marina and Driftwood Streets; and WHEREAS, by Resolution No. 41-96 the parking of oversized vehicles on said "street ends" was prohibited and said prohibition has been deemed to be no longer needed in these areas since intersection sight restrictions are more appropriately mitigated by restrictions on Embarcadero; and • WHEREAS, by previous Resolutions the City Council has taken action to limit parking times in other locations of the community and it is not intended to revoke nor to cast confusion upon those actions. NOW, THEREFORE, BE IT RESOLVED that a three hour parking limitation is hereby designated in the area west of the Embarcadero on the "street ends" of Harbor Street, Morro Bay Boulevard, Pacific Street and Marina Street and the public parking lot on the east of the Embarcadero between Marina and Driftwood Streets. BE IT FURTHER RESOLVED this parking limitation shall be in force and effect all days between the hours of nine a.m. and nine p.m. and shall be noticed by signage and/or curb markings appropriate to reflect this action. BE IT FURTHER RESOLVED that parking time limitations established by City Council Resolutions No. 32-70, 135-82, 100-91 and 09-98 shall remain in effect during the hours of 9:00 a.m. to 6:00 p.m. on all days except Sundays and holidays. BE IT FURTHER RESOLVED the prohibition of oversized vehicle parking on the "street ends" referenced herein is hereby rescinded, the other areas of said prohibition remaining in effect. It is determined that sight distance restictions adjacent to the subject street ends are more 0 Resolution No. 54-98 Page Two • appropriately mitigated through vehicle size limitations on Embarcadero. PASSED AND ADOPTED by the Morro Bay City Council at a regular meeting thereof held on the 22nd day of June, 1998 by the following vote: AYES: Anderson, Elliott, Peirce, Peters, Novak NAYES: None ABSENT: None ABSTAIN: None /� n ATTEST: CATHY NOVn, Mayor 1mv-AUER, City Clerk C � J • • RESOLUTION NO. 53-98 A RESOLUTION AUTHORIZING SUBMISSION OF SURFACE TRANSPORTATION PROGRAM FUNDING APPLICATIONS FOR FY 1997/1998 THROUGH 2O02/2003 FUNDING CYCLE AND APPROVAL OF PRIORITY OF PROJECTS THE CITY COUNCIL City of Morro Bay, California WHEREAS, the San Luis Obispo Council of Governments (SLOCOG) has the responsibility and authority for programming federal Surface Transportation Program (STP) funds under the Transportation Equity Act for the 21st Century (TEA21); and WHEREAS, SLOCOG has further responsibilities and authority for exchanging federal STP funds for State Highway Account/Surface Transportation Program funds and administering the programming and expenditure of these funds for projects consistent with Article XIX of the State Constitution; and WHEREAS, $269,568 is available for allocation during the fiscal year 1998/1999 through 2002/2003 STP Urban State Highway Account (USHA) programming cycle for local projects; and • WHEREAS, $213,199 has already been allocated to the South Bay Boulevard/Chorro Creek Bridge project, leaving $56,369 remaining for allocation to local projects; and WHEREAS, the City desires to allocate the sixth year of USHA funds ($56,369) to the South Main Street Rehabilitation Project; and WHEREAS, $3,057,712 is available for allocation during the fiscal year 1998/1999 through 2002/2003 STP Regional State Highway Account (RSHA) programming cycle with procedures and criteria established by SLOCOG requiring a resolution certifying the approval of application by the applicant's governing body; and WHEREAS, the applicant, if selected, will enter into a cooperative agreement with SLOCOG to carry out the RSHA project; and WHEREAS, the City of Morro Bay has four eligible projects for which it would like to submit funding applications: the North Main Multi-Modal/Rehabilitation Project, the Quintana Road Multi -Modal Project, the High School Bikeway Project and the Roundabout Study Project. NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay: 1. That the remaining $56,369 in USHA funds be allocated to the South Main Street Rehabilitation Project; 2. That approval for the filing of funding applications for the Surface Transportation Program, • in order of priority, is as follows: (1) North Main Multi-Modal/Rehabilitation Project, (2) Quintana Road Multi -Modal Project, (3) High School Bikeway Project, (4) Roundabout Study Project, and (5) Embarcadero Pedestrian Boardwalk Study; and • 3. That the Public Works Director is appointed as agent of the City of Morro Bay to conduct all negotiations, execute and submit all documents, including, but not limited to applications, agreements, amendments, payment requests and so on, which may be necessary for the completion of the aforementioned project. PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting thereof held on the 8th day of June, 1998 by the following vote: AYES: Anderson, Elliott, Peirce, Peters, Novak NOES: None ABSTAIN: None ABSENT: None N -�J' CATHY NOV C, Mayor ATTEST: 14 BRIDGETT ALTER, City Clerk Resolution No. 53-98 Surface Transportation Program Funding Applications for FYI 997/98 though 2002/03 Funding Cycle RESOLUTION NO.52-98 • A RESOLUTION AMENDING AND ADOPTING THE PUBLIC WORKS ADVISORY BOARD BY-LAWS THE CITY COUNCIL City of Morro Bay, California WHEREAS, the City Council at its January 23, 1995 meeting adopted Resolution 07-95 establishing the Public Works Advisory Board by combining the Franchise Advisory Board, the Streets and Trees Committee, the Transportation Advisory Board and the Water Advisory Board; and WHEREAS, the City Council at its December 8, 1997 meeting approved a revision to the Public Works Advisory Board's by-laws extending the Board member's terms to four years; and WHEREAS, the City Council at its February 9, 1998 meeting adopted Resolution No. 03-98 amending the City Council Policy Statement for Selection and Qualifications of Advisory Board Members stating that, for the Public Works Advisory Board, five of the seven members must be qualified electors of the City of Morro Bay; and WHEREAS, the City Council feels that Board members' terms should expire in such a manner so that two members' terms expire on January 31, 1999, two members' terms expire on January 31, 2000 and three members' terms expire on January 31, 2001, in order to reduce the potential for a majority of • the Board to leave office at the same time; and WHEREAS, Board members John Lemons and Ann Patton have volunteered to have their terms expire January 31, 1999 to initiate the two -two -three staggering of member terms. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Morro Bay does the following: 1. Approves the amendment to Terms of Office relating to a change in the expiration dates of the seven Board members' terms (two members terms on January 31, 1999, two members terms on January 31, 2000 and three members terms on January 31, 2001); 2. Approves that the terms for Board members John Lemons and Ann Patton expire January 31, 1999; and 3. Adopts the Public Works Advisory Board By -Laws as outlined in Attachment 1. PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting thereof held on the 8th day of June 1998 by the following vote: AYES: Anderson, Elliott, Peirce, Peters, Novak NOES: None ABSENT: None ABSTAIN: None CATHY NO K Mayor ATTEST: BRIDGETT B UER, City Clerk Adopted: March 8, 1995 p Revised: December 8, 1997 f1TTllGl�l ii�Ptif� / Revised: February 9, 1998 CITY OF MORRO BAY PUBLIC WORKS ADVISORY BOARD BY-LAWS Purpose and Authority of the Board The Public Works Advisory Board is established to advise the City Council concerning policy decisions relating to the Water, Wastewater, Streets, Recycling and Solid Waste, Cable Television and Telecommunications, Trees, Transportation and other issues related to the scope of responsibilities of the Public Works Department. Appointments The Public Works Advisory Board shall consist of seven (7) voting members, five of which must be qualified electors of the City of Morro Bay. Appointments to the Board and filling of vacancies shall be made by the City Council and shall be a representative cross-section of both lay and professional knowledge. Voting results shall be recorded in the minutes. Terms of Office • Members of the Board shall serve for a period of four (4) years commencing January 31. Current member terms shall expire as follows: two members on January 31, 1999, two members on January 31, 2000 and three members on January 31, 2001. Thereafter, appointments shall be made in such a manner so as no more than three member's terms expire concurrently. Unanticipated vacancies shall be filled for the duration of the unexpired term only." Qualifications Members of the Public Works Advisory Board shall serve without compensation. Absence from Meetines Absence of a Board Member from three (3) consecutive meetings without formal consent of the Board as noted in its official minutes will constitute the voluntary resignation of the absent member and the position will be declared vacant. At its regular meeting in January or at its first regular meeting in February of each year, the Board Members shall elect a Chair and a Vice -Chair who shall hold office for a period of one year. The Chair shall preside over meetings, appoint appropriate sub -committees and direct the affairs of the Board. In • the absence of the Chair, the duties of the office shall be performed by the Vice -Chair. The City of Morro Bay staff shall maintain accurate minutes and official activities of the Board. • Legal Reference The Public Works Advisory Board's agendas, reports, meetings and any and all actions shall be governed by the requirements of the Brown Act, as amended. oru A majority of the voting members of the Public Works Advisory Board constitutes a quorum. Meetings Regular meetings of the Public Works Advisory Board shall be held at the Morro Bay Community Center Studio Room, 1001 Kennedy Way, Morro Bay, on the second Wednesday of each month at 7:00 p.m. or as agreed by the Board. The meetings shall be open to the public. The Chair may close meetings to public comment. The Director of Public Works or his official delegate shall be responsible for preparing agendas, reports and minutes pertaining to the Public Works Advisory Board business and shall attend the Board meetings. • Roberts' Rules of Order In all matters and things not otherwise provided for in the by-laws, the proceedings of the Board shall be governed by "Roberts' Rules of Order," revised edition. However, no ordinance, resolution, proceeding or other action of the City Council pertaining to the Board shall be invalidated or the legality thereof otherwise affected by the failure or omission to observe or follow said rules. 4-Laws Amendments All amendments to the Public Works Advisory Board By -Laws shall be approved by the City Council. 0 • RESOLUTION NO.51-98 A RESOLUTION OF THE CITY COUNCIL DECLARING THE CITY'S INTENTION TO LEVY THE ANNUAL ASSESSMENT FOR THE MAINTENANCE OF THE NORTH POINT NATURAL AREA THE CITY COUNCIL City of Morro Bay, California WHEREAS, all property owners of the North Point sub -division requested the City of Morro Bay form a maintenance assessment district to fund the maintenance of the North Point Natural Area; and WHEREAS, the Landscaping and Lighting Act of 1972 (the "Act") enables the City to form assessment districts for the purpose of maintaining public improvements; and WHEREAS, pursuant to Section 22623 the Act, the Engineer has filed in the Office of the City Clerk, and submitted for review to the City Council, a report entitled "Engineers Report North Point Natural Area Landscaping and Lighting Maintenance Assessment", May 18, 1998 prepared in accordance with Article 4 of the Act, commencing with Section 22565; and • WHEREAS, pursuant to Section 22608.2 of the Act, the subdivider(s) were required by City ordinance to install improvements for which an assessment district was required in order to assure continued and uninterrupted maintenance of the North Point Natural Area; and WHEREAS, pursuant to the intent of Article XIII, Section 4, of the California Constitution, the property owners have elected to form the North Point Natural Area Landscaping and Lighting Maintenance Assessment District. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay that it is the intent of the Council to order the annual levy and collection of assessments for the North Point Natural Area Landscaping and Lighting Maintenance Assessment District generally located as shown in Exhibit "A" attached hereto at a public hearing to be held June 22, 1998 at 6:00 p.m. in the Veteran's Memorial Building, 209 Surf Street, Morro Bay, CA. BE IT FURTHER RESOLVED by the City Council the improvements to be maintained at the North Point Natural Area are specified in the Engineer's Report dated May 18, 1998, which is hereby approved. BE IT FINALLY RESOLVED by the City Council the assessment upon assessable lots within the district is proposed to total $5,645 or $564.50 per assessable parcel for fiscal year 1998-99. CJ RESOLUTION PAGE • PASSED AND ADOPTED by the City Council of the City of Mono Bay at a regularmeeting thereof held this 26' day of May, 1998 by the following roll call vote: AYES: Anderson, Peters, Novak NOES: Peirce ABSENT: Elliott ATTEST: u.counciLms47.97 • 0 CATHY NO AK, MAYOR NORTH POINT NATURAL AREA LANDSCAPING AND LIGHTING MAINTENANCE ASSESSMENT DISTRICT FISCAL YEAR COSTS 1997/98 (Actual and Projected through fiscal year end) Personnel Services (costs for May 16`h through June 30, 1998 are projected in personnel services) Director 6 hrs x $37.70/hr $226.20 (Includes only park inspection time, does not include staff report or public hearing time) Lead worker 24 hours x $24.17/hr $580.08 Maintenance Workers 45 hrs x $21.54/hr $969.30 46 hrs x $23.33/hr $1,073.18 Sub -total personnel services $2,848.76 Cify Engineering Review and Engineers Report $764.75 • Repair and Maintenance Supplies (these are actual costs, additional costs will be incurred from May 16 through June 30, 1998) Trash liners 75 used x .50/each $37.50 Round -up 30 oz. used $35.00 8/97 1 handrail $6.00 1 gallon paint $23.69 1 brush $.99 8/97 2 signs -clean up after your dog $40.00 2 sign poles $40.00 Bolts and hardware for sign installation $10.00 9/97 4 irrigation nipples $2.40 1/4 yard class II base $5.00 4 %2 inch irrigation caps $2.00 10/97 1 No camping sign $40.00 Bolts and hardware for sign installation $5.00 10/97 1 Replacement sign -no camping $42.50 Bolts and hardware for sign installation $2.50 11/97 2 bags E-Z Crete $4.27 12/97 30 deck screws $6.44 4/98 Entrance sign paint $5.00 • 4/98 1 sign -clean up after your dog $20.00 Bolts and hardware for sign installation $5.00 • F.Y. 1997/98 costs Page 2 5/98 1.5 yard class11 base $15.00 Sub -total repair and maintenance supplies $348.29 Insurance $356.00 Public Utilities $83.00 (costs for May 16" through June 30, 1998 are projected in public utilities) Repair and Maintenance Services (these are actual costs, additional costs will be incurred from May 16 through June 30, 1998) 8/97 Repair hand rail 3 hrs staff x $24.17/hr $72.51 3 hrs truck x $5.59/hr $16.77 8/97 Install 2 dog signs 4 hrs staff x $21.54/hr $86.16 4 hrs truck x $5.59/hr $22.36 8/97 Clean paths/parking 2 hrs staff x $24.17/hr $48.34 lot 2 hrs truck x $5.59.hr $11.18 2 hrs blower x $1.40/hr $2.80 9/97 Repair graffiti %a hr staff x $24.17/hr $12.09 • % hrtruck x 5.59/hr $2.80 9/97 Repair irrigation 1 hr staff x $24.17/hr $24.17 system 1 hr truck x 5.59/hr $5.59 10/97 Install no camping 1 hr staff x $24.17/hr $24.17 sign 1 hr truck x 5.59/hr $5.59 10/97 Replace stolen sign /z hr staff $24.17/hr $12.08 '/s hr truck x $5.59/hr $ 2.80 11/97 Repair camping sign 1.5 hr staff x $21.54/hr $32.31 1.5 hr truck x 5.59/hr $8.39 12/97 Repair erosion on 2 hrs staff x $23.33/hr $46.66 path 2 hrs truck x $5.59/hr $11.18 12/97 Repair header board 4 hrs staff x $21.54/hr $86.16 4 hrs truck x 5.59/hr $22.36 4/98 Replace signage 2.5 Ins. staff $21.54/hr $43.08 2.5 Ins truck x $5.59/hr $13.98 4/98 Repair wooden 2 hrs. staff x 23.33/hr $46.66 park sign at 2 hrs truck x 5.59/hr $11.18 entrance 5/98 Temporary repair 6 hrs staff x $23.33/hr $139.98 of stair erosion 6 Ins truck x $5.59/hr $33.54 5/98 Trim edges of 3 hrs staff $23.33/hr $69.99 • path 3 hrs truck x 5.59/hr $16.77 3 hrs weedeater x $1.68/hr $5.04 • F.Y. 1997/98 costs Page 3 5/98 Weedeat meadow 1.5 hrs staff x $24.17/hr $36.26 1.5 hrs weedeater x $1.68/hr $2.52 Sub -total repair and maintenance services $975.47 Grand Total for maintenance of North Point Natural $5,376.27 Area, July 1, 1997 through May 15,1998 Amount assessed property owners for maintenance $5,000.00 of North Point Natural Area for F.Y. 1997/98 Deficit/Overage <$376.27> c.w.council.uptact • 0 • • CITY OF MORRO BAY NORTH POINT NATURAL AREA LANDSCAPING AND LIGHTING MAINTENANCE ASSESSMENT DISTRICT ENGINEER'S REPORT May 18, 1998 Prepared By: Steven 1• Sylvester, City Engineer NORTH COAST ENGINEERING, INC. 725 Creston Road, Ste. B Paso Robles, CA 93446 • CITY OF MORRO BAY NORTH POINT NATURAL AREA LANDSCAPING AND LIGHTING MAINTENANCE ASSESSMENT DISTRICT ENGINEER'S REPORT Prepared By: � Steven J. S est , City Engineer f t 0 UFC'N-0A RCE 29743 North Coast Engineering, Inc. Approved By: Andrea K. Lueker Director, Recreation and Parks Department City of Morro Bay May 18, 1998 • • • CITY OF MORRO BAY CITY OF MORRO BAY NORTH POINT NATURAL AREA LANDSCAPING AND LIGHTING MAINTENANCE ASSESSMENT DISTRICT ENGINEER'S REPORT Table of Contents I. Project Description II. Maintenance Tasks III. Maintenance Costs IV. Apportionment of Assessment Z Assessment Diagram 3 Maintenance Task List Attachment A Detailed Cost Analysis Attachment B Revised 05/18/98 Maintenance Assessment District Engineer's Report CITY OF MORRO BAY • CITY OF MORRO BAY NORTH POINT NATURAL AREA LANDSCAPING AND LIGHTING MAINTENANCE ASSESSMENT DISTRICT • • ENGINEER'S REPORT Project Descri tp ion As a condition of approval for Tract No. 2110, the North Point subdivision, the developers were required to offer to the City for dedication Lot 11 of the subdivision for park purposes, and to construct improvements on Lot 11 including a paved parking area, a stairway providing access to the beach, benches, landscaping and irrigation, lighting, and other improvements. The subdivision was also conditioned to provide maintenance of the park by establishing an assessment district. Lot 11 of Tract No. 2110 is identified as the North Point Natural Area. The owners of the ten residential lots within the North Point subdivision have requested that the City form a maintenance assessment district to fund the maintenance of the North Point Natural Area. II. Maintenance Tasks A list of maintenance tasks required to maintain the North Point Natural Area in acceptable condition for public use was developed by the City Recreation and Parks Department based on maintenance standards established for existing parks within the City and is included in this report as Attachment A. Ill. Maintenance Costs The estimated annual cost of maintaining the North Point Natural Area was developed by the Recreation and Parks Department based on the tasks required and the City's Flat Rate Manual for Parks Maintenance. The annual cost of maintenance for the 1998-99 fiscal year is estimated to be $5,645.00. The detailed cost estimate is included in this report as Attachment B. Revised 05/18/98 1 Maintenance Assessment District Engineer's Report CITY OF MORRO BAY • IV. Apportionment of Assessment The total assessment for the District is apportioned to each of the ten residential lots equally. Lot 11, the North Point Natural Area; Lot 12, a private street; and Lot 13, an open space parcel to be granted to the State of California; are not assessed. Individual assessments are listed in the following table: Parcel/Assessment Table Lot Number County Assessor's Parcel Number Annual Assessment 1 065-082-10 $564.50 2 065-082-11 $564.50 3 065-082-12 $564.50 • 4 065-082-13 $564.50 5 065-082-14 $564.50 6 065-082-15 $564.50 7 065-082-16 $564.50 8 065-082-17 $564.50 9 065-082-18 $564.50 10 065-082-19 $564.50 11 065-082-20 $ 0.00 12 065-082-21 $ 0.00 13 065-082-22 $ 0.00 • Revised 05/18/98 9411 BRPT.MB 2 Maintenance Assessment District Engineer's Report CITY OF MORRO BAY • NORTH POINT NATURAL AREA LANDSCAPING AND LIGHTING MAINTENANCE ASSESSMENT DISTRICT ASSESSMENT DIAGRAM POINT NATURAL = LOT NUMBER 0 = COUNTY ASSESSORS PARCEL NUMBER TRACT 2110 Maintenance Assessment District Engineer's Report 01 • ATTACHMENT A NORTH POINT NATURAL AREA MAINTENANCE TASKS Daily Review for vandalism/repair Pick-up - paper trash cigarette butts Empty - trash Scans Clean - benches fencing Check - beach access stairway bike rack lights planting hillside, erosion • Weekly Blow paths, parking lot Monthly Check new trees/stakes Check/repair sprinkler system Trim trees and bushes as needed Critical parts inspections Annual Paint beach access stairway, public access signage New plantings (replacement) General safety inspection Annual tree pruning As Needed Remove graffiti Mow open space Pest/gopher control Trim and spray paths Repair public access signage • ATTACHMENT B NORTH POINT NATURAL AREA LANDSCAPING AND LIGHTING MAINTENANCE ASSESSMENT DISTRICT JUNE 1"8 NAME: North Point Natural Area Landscaping and Lighting Maintenance Assessment District DIAGRAM: Attached PLANS AND SPECIFICATIONS: Attached. No bonds or notes willbe issued for this Maintenance Assessment District. ESTIMATED COST OF MAINTENANCE: The following outlines the estimated budget for the maintenance of the North Point Natural Area for fiscal year 1998199. Personnel Services Leadworker $580.08 $349.30 • RMair and Maintenance Saoolies S600.00 Miscellaneous items to repair vandalism, benches, stairway, trash liners, signage, irrigation supplies, herbicides, etc. In mz= $356.00 Public Uffi ies $300.00 RaWr and Maintenance Services Irrigation repair, stairway and bench repair. $800.00 Blow parking lot/asphalt paths - 9,000 sq. ft. (maintenance standard - 9 min. per 1,000 sq. ft.) 9,000/1000 sq. ft., 9 x 9 = 81 min. gl/ 60 min. =1.35 hrJwk. 1.35 hrJwk. x 40 wks. = 54 hrs. U • Engineers Report N. Point Natural Area LLMAD Page 2 Mowing - .5 acre (maintenance standards - .5 hrJacre) .5 acre x .5 hr. = .25 hr. x 9 times each year = 2 hrs. Trimming & Spraying Paths, Beach Access Stairway- 3,000 sq. fL (maintenance standard - 60 minutes/1,000 sq. fL ) 3,000/1,000 = 3 x 60 min. = 190 min. 3 hr. x S times each year = 24 hrs. Litter Pick -Up - 13 acre (maintenance standard - 2 acres per hour) 1.3 acre/2 = .65 hrJwk. x 52 wk. = 34 hrs. Total Hours 114 hrs. Maintenance Worker H, 114 hrs. x $23.33/hr. = $2,659.62 Total Assessment Estimate $5,645.00 Per Parcel Yearly Assessment $5,645.00/10 parcels S564.50 c.w.counc0 mpteng.doc RESOLUTION NO.49-98 APPROVAL OF A LEASE AGREEMENT FOR THE EXTENSION AREA OF LEASE SITE 150, JOINTLY OWNED BY THE CITY OF MORRO BAY AND THE CAYUCOS SANITARY DISTRICT, WITH KAISER MATERIALS CORPORATION THE CITY COUNCIL City of Morro Bay, California WHEREAS, the City of Mono Bay and the Cayucos Sanitary District are the lessors of certain property in the Mono Bay described as the Extension Area of Lease Site 150; and, WHEREAS, Kaiser Materials Corporation entered into a Lease Agreement for use of said property in June, 1997 which expires on June 23, 1998; and WHEREAS, a new one year lease with Kaiser Materials Corporation for said property has been submitted which allows for termination of the lease at any time by the lessor upon 30 days written notice. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Mono Bay that the lease agreement with Kaiser Materials Corporation for use of said property is hereby approved. BE IT FURTHER RESOLVED, that the Mayor is hereby authorized to execute said lease • agreement; and BE IT FURTHER RESOLVED, this approval is contingent upon similar approval by the Cayucos Sanitary District as evidenced by signature of the lease agreement. PASSED AND ADOPTED by the City Council of the City of Mono Bay at a regular meeting held thereof on the 8`h day of June, 1998, by the following vote: AYES: Anderson, Elliott, Peirce, Peters, Novak NOES: None ABSENT: None BRIDGETT MUER, CITY CLERK 0 � N ✓k_ CATHY NO`0,SkK, MAYOR MAY-26-se 07.35 FROM:Kaiser Sand 8. Gravels CRP 1D•90SS431606 PACE 2/9 KAISER SAND 6 GRAVEL COMPANY CENTRAL COW REGION . P.O. BOX 71 . SAN LUIS OW0. CN1FORMA 934D6.1EL (8= 6" 10D . FAX (8M 543-I8D6 May 22, 1998 Mr. Rick Alged, Harbor Director City of Morro Bay 1275 Embarcadero Morro Bay, CA 93442 RE: Lease Site 150 Extension Lease — Morro Bay Batch Plant Dear Rids: I attended the CayuoDs Sanitary District board meeting on May 18 to present and discuss Kaisers proposal to lease the subject site. Though there was no final action taken, the board indicated they would support a lease with a 1-year term, provided there was a clause that would allow the Sanitary District and the City of Morro Bay to terminate the lease with thirty days' notice at any time during the term of the lease. The District also expressed its intent to work out a solution to our needs for access behind Lease Site 150 if the termination clause is exercised. We understand that the City also • shares this intent Kaiser Sand & Gravel Is agreeable to entering into a lease under these terms. We have taken the liberty of having our attomey revise the lease solely to include a termination clause as discussed above, and have enclosed a copy for your review. We would appreciate the Citys consideration of this modified lease. As you know, the existing lease tens is up on June 23, 1998. We request that this modified lease be placed on the next available City Counsel agenda prior to June 23. We will be appearing before the Sanitary District no later than their next meeting on June 15 with this same proposal_ As I have indicated in prior conversations, Kaiser would be willing to assist with the cost of further review and processing of this lease proposal, if this is a concern. Thank you for your Consideration. Please contact me it you wish to discuss this matter. very truly yours, William H. Butler General Manager, Central Coast Region Enclosure LEASE AGREEMENT This Lease Agreement ("Lease") is made as of this day of . 1998 by and between the CITY OF MORRO BAY and the CAYUCOS SANITARY DISTRICT (jointly referred to herein as "Landlord") and KAISER SAND AND GRAVEL CORPORATION, dba KAISER SAND AND GRAVEL COMPANY ("Tenant"). WHEREAS, Tenant currently operates a concrete batch plant under a lease agreement with Landlord, and; WHEREAS, Tenant desires to use an additional portion of Landlord's property on a temporary basis for additional materials storage and to facilitate access to and through Tenant's concrete batch plant. NOW THEREFORE, Landlord agrees to lease to Tenant the property under the following terms and conditions: 1. LEASED AREA, CONDITION OF SITE. The lease area, hereinafter called "Site," shall be that •portion of the property jointly owned and operated by Landlord as shown on the attached Site Map labeled "Exhibit A" and incorporated herein. The Site is leased to Tenant in an "as is" condition and Tenant agrees that it has investigated the condition of the Site and determined that the Site is suitable to the operations of Tenant. 2. MAINTENANCE AND REPAIR OF SITE. Tenant agrees to maintain the existing perimeter fencing around the site. Tenant agrees to repair and maintain the surface on the Site in good, usable and safe condition at all times. 3. TERM. The term of this Lease Agreement shall commence on June 24, 1998 ("Commencement Date") and terminate on June 23, 1999 ("Termination Date"). This Lease may be terminated at any time by Landlord upon thirty (30) days prior written notice to Tenant. 4. RENT. Tenant shall pay Landlord in lawful money of the United States of America, a monthly rent in advance of Two Hundred Seventy Dollars ($270.00) for the period from June 24, 1998 to June 23, 1999. 5. RESTRICTIONS UPON USE. Tenant agrees that, Tenant shall use the Site only for parking, storage of materials or as a turning area for Tenant's customers, employees, agents and contractors, in association with Tenant's concrete batch plant operation and that any other use, without prior written approval shall be a violation of this Lease. Furthermore, Tenant agrees that it shall not: (a) Permit any use of the Site or any part thereof in a manner likely to cause injury, damage or an unsafe condition for the general public or the customers, employees, agents and contractors of Tenant; •e(b) Permit undue accumulations of garbage, trash, rubbish or any other refuse by the customers, mployees, agents and contractors of Tenant or cause or allow any circumstances or acts on the Site by the Page 1 of 6 •customers, employees, agents and contractors of Tenant which will result in pollution of the Site, groundwater underneath or in the area of the Site or the surrounding area. (c) Permit any use of the Site by the customers, employees, agents and contractors of Tenant which will cause a cancellation of any insurance policy, or any building or improvements thereon, or any activity by the customers, employees, agents, and contractors of Tenant which may be prohibited by any insurance policies covering the area, said buildings or improvements. (d) Draw or use any water from the Landlord's wells located on the Site. Tenant agrees to disconnect from these wells and to pay for all water consumed prior to the disconnection at the raw water rate established by the Public works Director of the City of Morro Bay. No water rights are granted with this Lease. (e) Erect, place, operate or maintain any improvement within the Site, nor conduct any business, in violation of the terms of this Lease, or in violation of any regulation, order of law, statute, bylaw or ordinance of a governmental agency having jurisdiction over the Site. (f) Store hazardous materials and/or petroleum products unless such storage meets the requirements of the State of California and the County of San Luis Obispo. Tenant shall take all precautions to protect Landlord's property from pollution of any kind and shall not allow petroleum products, industrial materials or pollution of any kind to leak onto Landlord's property or adjacent property or groundwater. 6. SIGNS. All signs placed on the Site shall be in accordance with the "Sign Ordinance of the City of Morro Bay". "Sign" shall have the meaning set forth in said Sign Ordinance. • 7. GOVERNMENTAL REQUIREMENTS. Tenant shall at all times comply with and shall pay all costs and expenses which may be incurred or required to be paid in order to comply with any and all laws, statutes, ordinances, which govern, apply to or are promulgated with respect to the operation and use of the Site by Tenant in connection with its business; provided, however, that Tenant may cease to operate and use the Site at any time and, in such case, Tenant shall have no future obligation to comply or pay such costs and expenses of compliance. So long as Tenant continues to operate and use the Site, Tenant shall comply with each and every requirement of all policies of public liability insurance which Tenant is required to have in force with respect to the Site. The judgment of any court of competent jurisdiction or the admission of Tenant in any action or proceeding against it, whether Landlord be a party thereto or not, that Tenant has violated any such ordinance or statute in the use of the Site shall be conclusive of that fact as between Landlord and Tenant. 8. TAXES. Tenant acknowledges and agrees that this Lease may create a possessory interest subject to property taxation. Tenant agrees to pay and discharge, as additional rent for the Site during the term of this Lease, before delinquency, all taxes (including, without limitation, possessory interest taxes associated with Tenant's interest in the Site and the execution of this Lease), assessments, fees, levies, lease and permit fees and other governmental charges of any kind or nature whatsoever upon the assessed value of its interest in the Site. In the event the Site, or any possessory interest therein, should at any time be subject to ad valorem *taxes or privilege taxes levied, assessed or imposed on such property, Tenant shall only pay taxes upon the assessed value of its interest. Page 2 of 6 9. ADDITIONAL ALTERATIONS AND REPAIRS. Prior to making any alterations to the Site, • Tenant shall obtain the written approval of the Landlord. In addition, Tenant will obtain any and all required permits, approvals or authorizations required by all governmental agencies for the proposed alterations or repairs. 10. OWNERSHIP OF IMPROVEMENTS. All improvements to real property constructed on the Site by Tenant as permitted or required by this Lease shall, during this Lease Term, be and remain the property of Tenant, provided, however, that Tenant shall have no right to waste, destroy, demolish or remove the improvements, and provided, further, that Tenant's rights and powers with respect to the improvements are subject to the terms and limitations of this Lease. Upon termination all improvements, alterations or repairs to the Site shall become the property of Landlord. At the Landlord's option, Landlord may, at the sole discretion of Landlord, require any improvements to the site to be removed by Tenant upon termination of this Lease. In such case, Tenant agrees to promptly remove said improvements and to restore the Site to its condition prior to the construction of improvements. 11. ASSIGNMENT AND SUBLETTING. This Lease is personal in nature and may not be assigned or transferred by either party. 12. INSURANCE. Tenant shall indemnify and hold Landlord and the property of Landlord, including said Site any buildings or improvements now or hereafter on said Site, free and harmless from any and all liability, claims, loss, damages or expenses resulting from Tenant's occupation and use of said Site, specifically including, without limitation, any liability, claim, loss, damage or expense arising by reason of: (a) The death or injury of any person who is a guest, employee, agent or contractor of Tenant, or by reason of the damage to or destruction of any property, owned by Tenant or by any person who is a guest, employee, agent or contractor of Tenant, from any cause whatever while such person or property is in or on said Site or in any way connected with said Site or with any of the improvements or personal property on said Site; (b) The death or injury of any person who is a guest, employee, agent or contractor of Tenant, or by reason of the damage to or destruction of any property, owned by Tenant or any person who is a guest, employee, agent or contractor of Tenant, caused or allegedly cause by either (i) the condition of said Site or some building or improvement on said Site, or (ii) some act or omission on said Site of Tenant or any person in, on or about said Site with or without permission and consent of Tenant; (c) Any work performed on said Site or materials furnished to said Site at the instance or request of Tenant or any person or entity acting for or on behalf of Tenant; or (d) Tenant's failure to perform any provision of this Lease or to comply with any requirement of law or any requirement imposed on Tenant or said Site by any duly authorized governmental agency or political subdivision. Tenant shall, at Tenant's own cost and expense, secure promptly after the execution of this Lease and maintain during the entire Lease Term, a broad form commercial general liability insurance policy or policies which insures Tenant's public liability, property damage and business automobile expenses with the combined single limit of not less than $1,000,000.00 issued by an insurance company acceptable to Landlord and ,authorized to issue liability insurance in California, and which shall list Landlord as the named primary additional insured, without offset to Landlord's policies as respects all operations of Tenant. Any deductibles or self -insured retentions must be declared to and approved by Landlord. The terms of said policies may be for Page 3 of 6 •such period as shall be designated by Tenant; provided however, that within two (2) months prior to the expiration date of such insurance terms, Tenant shall procure other policies of said insurance so that between the execution of this Lease and the commencement of the Lease Term, and throughout the entire Lease Term or any renewal thereof, or until the sooner termination hereof, Landlord, its officials, employees, agents and volunteers shall always be added as named primary additional insured under the policies of comprehensive general liability, business automobile coverage, and property damage insurance, in accordance with the foregoing. Tenant shall within ten (10) days after the execution of this Lease and promptly thereafter when any such policy is replaced, rewritten or renewed, deliver to Landlord a true and correct copy of a certificate executed by the insurance company or companies or their authorized agent evidencing such policy or policies and an endorsement to the policy naming the City of Morro Bay and the Cayucos Sanitary District as primary additional insured. Each insurance policy required by this Lease shall contain a provision that it cannot be canceled for any reason nor can the coverage or limits be reduced unless ten (10) days prior written notice of the cancellation or reduction is given to Landlord in the manner required by this Lease for service of notices on Landlord by Tenant. 13. HOLD HARMLESS. Tenant agrees to investigate, defend, indemnity and hold harmless Landlord, its employees and agents, from and against any and all losses, damage, liability, claims, demands, detriments, costs, charges and expenses (including attorney's fees) and causes of action whatsoever character, which the Landlord may incur due to this Lease or Tenant's operations or any acts or omissions of Tenant or its • customers, employees, agents and contractors. 14. DESTRUCTION. This Lease shall remain in full force and effect, including Tenant's obligation to pay rent, in all events of destruction to the Site, unless otherwise modified by mutual written agreement of the Landlord and Tenant. 15. DEFAULT. In the event that Tenant shall fail to perform any agreement, covenant or condition set forth in this Lease, the Lease may be terminated upon thirty days written notice from Landlord. 16. NOTICES. If at any time after the execution of this Lease, it shall become necessary or convenient for one of the parties hereto to serve any notice, demand or communication upon the other party, such notice, demand or communication shall be in writing and shall be served personally or by depositing the same in the registered or certified United States mail, return receipt requested, postage prepaid and if intended for Landlord shall be addressed to: Harbor Director City of Morro Bay 1275 Embarcadero Morro Bay CA 93442 UNT70 • Page 4 of 6 • District Manager Cayucos Sanitary District PO Box 333 Cayucos CA 93430 and if intended for Tenant shall be addressed to: Kaiser Sand & Gravel Co. ATTN: General Manager Central Coast Region PO Box 71 San Luis Obispo CA 93406 or to such other address as either party may have furnished to the other in writing as a place for the service of notice. Any notice so mailed shall be deemed to have been given as of the time the same is deposited in the United States mail. 17. UTILITIES. Tenant is responsible for all costs of installation and maintenance of any and all utilities or services required by Tenant at the Site. Landlord shall not be liable for the failure of utilities or services to the Site. 18. MISCELLANEOUS. • (a) In case any one or more of the provisions contained in this Lease shall for any reason be held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any other provision of this Lease, but this Lease Agreement shall be construed as if such invalid, illegal or unenforceable provisions had not been contained herein. (b) Nothing in this Lease Agreement shall be construed to create any duty to, any standard of care with reference to, or any liability to anyone not a party, except as otherwise expressly provided herein. (c) The words "Landlord" and "Tenant' as used herein shall include a corporation and include the plural as well as the singular. Words used in the masculine gender include the feminine and neuter. If there be more than one Landlord and Tenant, the obligations hereunder imposed upon Landlord and Tenant shall be joint and several. (d) Time is of the essence of each and all of the agreements, covenants and conditions of this Lease. (e) This Lease shall be interpreted in accordance with and governed by the laws of the State of California. The language in all parts of this Lease shall be, in all cases, construed according to its fair meaning and not strictly for or against Landlord or Tenant. (f) This Lease constitutes the entire agreement between Landlord and Tenant with respect to the subject matter hereof and supersedes all prior offers and negotiations, oral and written. This Lease may not be amended or modified in any respect whatsoever except by an instrument in writing signed by Landlord and Tenant. • Page 5 of 6 IN WITNESS WHEREOF, Landlord and Tenant have executed this Lease Agreement by the proper • persons thereto duly authorized as of the date first hereinabove written. CITY OF MORRO BAY By: l cJ�" e2) N W%4- - Cathy Novak yor Attest: "q 4- �?�— Bridgett Bauer ity Clerk CAYUCOS SANITARY DISTRICT Un • , President • Attest: Bonnie Connelly, Clerk of the Board KAISER SAND & GRAVEL CORPORATION 1140& By: 6 Wi 'am H. Butler, Gener Manager Page 6 of 6 EXHIBI T "A" LEA -SE EXTENSION AREA, KAISER SAND & GRAVEL CO. MORRO BAY FACILITY FO 11 1P CAP R 88R�S 74)- � MATERIALS MpRRO SAY PARCEL 4 J LEASE SITE, LEASE SITE #150 FD I. IP CAP LS 4819 SET PKNAIL/nN EXISTING STORAGE YARD (NOT INCLUDED) W (P p,RCE6 W 7 250.00' TRUE LEASE LINE LEASE PARCELS PER 2536 O.R. 288 DENOTES LEASE EXTENSION AREA APPROXLLIATELY 23200 SO.F . 0 80 120 1 INCH = 60 IP LS 4819 I CHAIN LINK FENCE • RESOLUTION NO.48-98 A RESOLUTION APPROVING A ONE YEAR EXTENSION TO THE MORRO BAY DIAL -A -RIDE OPERATIONS MANAGEMENT AGREEMENT FOR THE 1998/1999 FISCAL YEAR THE CITY COUNCIL City of Morro Bay, California WHEREAS, on April 28, 1997, the City Council rejected bids for a Request for Proposals to operate and manage Morro Bay Dial -A -Ride and authorized the preparation of a study to assess sustainable transit service for Morro Bay; and WHEREAS, at that same meeting, the City Council approved a one year extension of the Morro Bay Dial -A -Ride Operations Management Agreement, commencing July 1, 1997 and expiring June 30, 1998 until the study was completed; and WHEREAS, the City put out a Request for Proposals in the fall of 1997, selected a transit consultant to perform the study and is expected to receive the study during the later part of May 1998; and • WHEREAS, the transit study will not be completed in time to be forwarded to the Public Works Advisory Board and the City Council for consideration, action and implementation before the 1998/1999 fiscal year budget is adopted or before the current Morro Bay Dial -A -Ride contract expires. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Morro Bay approves a one year extension to the Morro Bay Dial -A -Ride Operations Management Agreement, commencing July 1, 1998 and expiring June 30, 1999. PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting thereof held on the 26th day of May 1998 by the following vote: AYES: Anderson, Peirce, Peters, Novak NOES: None ABSENT: Elliott ABSTAIN: None CATHY NOVAK, Mayor ATTEST: • BRIDGET1,4AUER, City Clerk • RESOLUTION NO.47-98 and RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA IN SUPPORT OF THE MORRO BAY 3-MILE SCENIC LOOP THE CITY COUNCIL City of Morro Bay, California WHEREAS, the City of Mono Bay is a lovely City on the Coast of California; WHEREAS, the City of Mono Bay is located on a National Estuary; and WHEREAS, the City of Mono Bay is an important location for serving visitors to the Coast of California; and • WHEREAS, the City of Morro Bay derives a large portion of its revenue from the tourists that visit Morro Bay; and WHEREAS, it is impossible for visitors that drive on Highway One to appreciate the full beauty of the City of Morro Bay from the views provided from Highway One; and WHEREAS, the numerous billboards along Highway One which advertise specific businesses within the City of Morro Bay cause many tourists to stop in the City of Morro Bay when they are driving on Highway One; and WHEREAS, the citizens and businesses of the City of Morro Bay will suffer greatly if the number of travelers on Highway One that stop in the City of Mono Bay is reduced due to possible future loss of billboard signage on Highway One; and WHEREAS, a designated scenic loop within the City of Morro Bay would be an important asset to the Scenic Highway designation on Highway One; and WHEREAS, such a designated scenic loop would help to mitigate the possible future loss of billboards along Highway One; and • WHEREAS, the City of Morro Bay desires to participate in the State of California Scenic Highway Program. • Resolution No. 47-98 Page Two NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Morro Bay, California, declares the City of Morro Bay to be home of "Morro Bay 3-Mile Scenic Loop" which is also known as "3-Mile Scenic Loop"; and BE IT FURTHER RESOLVED, that the Morro Bay 3-Mile Scenic Loop consists of that place and route, traveling in either direction, which connects the following points: 1) the intersection of Highway One and South Bay Boulevard; 2) the intersection of South Bay Boulevard and State Park Road; 3) the intersection of State Park Road and Main Street; and 4) the intersection of Main Street and Highway One; and BE IT FURTHER RESOLVED, that the City of Morro Bay will petition the California Department of Transportation to erect signs along northbound and southbound Highway One sufficient to attract visitors to exit Highway One at both South Bay Boulevard and Main Street exits for the purposes of enjoyment of Morro Bay 3-Mile Scenic Loop; and • BE IT FURTHER RESOLVED, that the City of Morro Bay will cause to be erected signs designating the route of Morro Bay 3-Mile Scenic Loop which shall be posted along said route and adjoining said route so as to identify it for those who wish to pass along said route. PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting thereof held on the 11 th day of May, 1998 on the following vote: AYES: Anderson, Elliott, Peirce, Peters, Novak NOES: None ABSENT: None ATTEST: BFJDGETTIAAUER, City Clerk CATHY NOVA VAK, Mayor • RESOLUTION NO.46-98 APPROVING A NEW 20 YEAR LEASE WITH HARBOR HUT, INC. AND AUTHORIZING EXECUTION OF A LANDLORD ESTOPPEL AGREEMENT FOR LEASE SITE 122-123/122W-123W AND EXTENSION 122W-123W THE CITY COUNCIL City of Morro Bay, California WHEREAS, the City of Morro Bay is the lessor of certain property on the Morro Bay waterfront described as Lease Site 122-123/122W-123W and Extension 122W-123W; and, WHEREAS, the lease agreements on the above Lease Sites expire December 31, 2002; and, WHEREAS, Harbor Hut, Inc. is the current lessee of the above Lease Sites; and, WHEREAS, George Leage is the sole proprietor of Harbor Hut Inc; and, WHEREAS, Harbor Hut Inc. and the City have negotiated a new twenty year lease which incorporates both lease sites and brings both leases into the current City master lease format; and, WHEREAS, said new lease will take effect on July 1, 1998 and the existing leases will be terminated at that time by mutual agreement. • NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay that. the new 20 year lease agreement between the City of Morro Bay and Harbor Hut, Inc. is hereby approved and that the Mayor is authorized to execute said lease. BE IT FURTHER RESOLVED, that the Mayor is authorized to execute a landlord's estoppel using the Lease Site as security interest, conditional upon City Attorney approval of said landlord's estoppel agreement. PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting held thereof on the 11 " day of May 1998, by the following vote: AYES: Anderson, Elliott, Peirce, Peters, Novak NOES: None ABSENT: None V, N r� # CATHY NOVAK, AYOR 1� BRIDGETT hAUER, CITY CLERK LEASE AGREEMENT FOR LEASE SITE 122-123/122W-123W AND EXTENSION OF LEASE SITE 122W-123W • E • TABLE OF CONTENTS ARTICLE I FIXED TERM...................................................... _................ SECTION1.01 TERM.......................................................................................................................................................I SECTION1.02 NO EXTENSIONS ......................................................................................................................................2 SECTION1.03 HOLDOVER .............................................................................................................................................2 ARTICLE 2 RENT ARTICLE 4 CONSTRUCTION, ALTERATION AND REPAIRS........................................................................7 SECTION4.01 CONSTRUCTION APPROVAL....................................................................................................................7 SECTION 4.02 CONSTRUCTION BOND............................................................................................................................7 SECTION4.03 MECHANICS'LIENS.................................................................................................................................8 SECDON4.04 OWNERSHIP OF IMPROVEMENTS.............................................................................................................8 ARTICLE 5 HYPOTHECATION OF LEASE.........................................................................................................8 ARTICLE 6 REPAIRS, MAINTENANCE AND RESTORATION........................................................................9 SECTION 6.01 MAINTENANCE BY TENANT..................................................................................................................9 • SECTION 6.02 SEAWALLS AND REVETMENT..................................................................................................................9 SECTION 6.03 REQUIREMENTS OF GOVERNMENTAL AGENCIES....................................................................................9 SECTION 6.04 FAILURE TO REPAIR................................................................................................................................9 SECTION 6.05 TENANTS DUTY To RESTORE PREMISES.............................................................................................9 SECTION 6.06 INSPECTION BY CITY........................................................................................................................... 10 SECTION 6.07 OPTION TO TERMINATE LEASE FOR DESTRUCTION............................................................................... 10 SECTION 6.08 APPLICATION OF INSURANCE PROCEEDS.............................................................................................. 10 ARTICLE 7 INDEMNITY AND INSURANCE...................................................................................................... 11 SECTION 7.01 INDEMNITY AGREEMENT ...................................................................................................................... I 1 SECTION 7.02 LIABILITY INSURANCE.......................................................................................................................... 11 SECTION 7.03 WORKER'S COMPENSATION.................................................................................................................. 12 SECTION 7.04 FIRE AND CASUALTY INSURANCE......................................................................................................... 12 SECTION 7.05 SPECIFIC PERILS TO BE INSURED........................................................................................................... 12 SECTION 7.06 DEPOSIT OF INSURANCE WITH CITY..................................................................................................... 12 SECTION 7.07 NOTICE OF CANCELLATION OF INSURANCE............................................................................:.............. 12 SECTION 7.08 NO SUBROGATION ............................................... :............................ :..................... :................ :............ 13 ARTICLE 8 TAXES AND UTILITIES................................................................._................................................ 13 SECTION8.01 TENANT TO PAY TAxES..................................................................................................................... 13 SECTION 8.02 TENANT TO PAY LICENSE AND PERMIT FEES..................................................................................... 13 SECTION8.03 UTILITIES .............................................................................................................................................. 13 ARTICLE9 CONDEMNATION............................................................................................................................. 13 SECTIQN9.01 TOTAL CONDEMNATION....................................................................................................................... 13 SECTION9.02 CONDEMNATIONAWARD...................................................................................................................... 13 SECTION 9.03 TERMINATION FOR PARTIAL TAIONO.................................................................................................... 14 SECTION 9.04 REM ABATEMENT FOR PARTIAL TAKING.............................................................................................. 15 SECTION 9.05 CONVEYANCE IN LIEU OF EMINENT DOMAIN....................................................................................... 15 ARTICLE 10 ASSIGNMENT AND SUBLEASING.............................................................................................. 15 SECTION 10.01 NO ASSIGNMENT WITHOUT CITY'S CONSENT................................................................................... 15 • SECTION 10.02 TRANSFER OF STOCK AS ASSIGNMENT ............................................................................................... SECTION 10.03 APPLICATION FOR ASSIGNMENT ......................................................................................................... 15 16 SECTION 10.04 PROBATE TRANSFER OR ASSIGNMENT................................................................................................ 16 SECTION 10.05 NO SUBLEASE WITHOUT CITY'S CONSENT ........................................................................................ 16 SECTION 10.06 TERM OF SUBLEASE............................................................................................................................ 16 SECTION 10.07 SUBTENANT SUBJECT TO LEASE TERMS............................................................................................. 16 II • SECTION 10.08 CONSENT FORM AGREEMENT............................................................................................................. 16 SECTION10.09 TENANT REMAINS LIABLE............................................................................................................... 17 SECTION 10.10 EXCEPTION FOR BOATSLIPS. MOTELS................................................................................................. 17 ARTICLE 11 DEFAULT AND TERMINATION ............................. _.._................................................................ 17 SECTION11.01 ABANDONMENT BY TENANT............................................................................................................ 17 SECTION 11.02 TERMINATION FOR BREACH BY TENANT.......................................................................................... 17 SECTION 11.03 TERMINATION FOR FAILURE TO PAY RENT......................................................................................... 17 SECTION 11.04 BENEFICIARY MAY CORE DEFAULT................................................................................................... 17 SECTION 11.05 ATTORNEY FEES FOR BREACH NOT RESULTING IN COURT ACTION .................................................... 18 SECTION 11.06 DAMAGES FOR BREACH...................................................................................................................... 18 SECTION 11.07 CUMULATIVE REMEDIES..................................................................................................................... 18 SECTION11.08 WAIVER OF BREACH........................................................................................................................... 18 SECTION 11.09 SURRENDER OF PREMISES................................................................................................................... 18 ARTICLE 12 MISCELLANEOUS........._................ _......................... _................................................................... 18 SECTION 12.01 ATTORNEY'$ FEES............................................................................................................................... 18 SECTON12.02 NOnCES............................................................................................................................................. 19 SECTION12.03 GOVERNING LAW............................................................................................................................... 19 SECTION 12.04 BINDING ON HEIRS AND SUCCESSORS................................................................................................. 19 SECTON 12.05 PARTIAL INVALIDITY.......................................................................................................................... 19 SECTON 12.06 SOLE AND ONLY AGREEMENT ............................................................................................................ 19 SECTION12.07 MODIFICATION................................................................................................................................... 19 SECTION12.08 TIME OF ESSENCE..............................................................................................................................:20 SECTION 12.09 MEMORANDUM OF LEASE FOR RECORDING........................................................................................ 20 SECTION 12.10 TERMINATION FOR NUCLEAR DISASTER.............................................................................................20 ARTICLE 13 SPECIAL PROVISIONS PECULIAR TO THIS LEASE SECTION 13.01 TERMINATION OF PRIOR LEASE..........................................................................................................20 SECTION 13.02 REPAIRS TO BE COMPLETED NO LATER THAN DECEMBER 1. 2000....................................................20 SECTION 13.03 OPTION TO EXTEND THIS LEASE AGREEMENT.................................................................................20 SECTION 13.04 REDEVELOPMENT PLANS....................................................................................................................21 • 0 • LEASE THIS LEASE is made and entered into by and between the City of Morro Bay, a municipal corporation of the State of California herein called CITY, and Harbor Hut, Inc., a California Corporation currently doing business as Harbor Hut Restaurant, L'il Hut and Tiger's Folly II, herein called TENANT. WITNESSETH WHEREAS, the State of California glanted certain tide and submerged lands located within the CITY limits of CITY to the County of San Luis Obispo and to its successors, being Chapter 1076, Statutes of 1947, as amended by Chapter 413, Statutes of 1955, Chapter 1874, Statutes of 1957, and Chapter 70, Statutes of 1960, first extraordinary session; which Statutes may be amended from time to time by the Legislature of the State of California; all of which Statutes are expressly recognized and agreed to be in full force and effect by the parties hereto; and WHEREAS, the parties hereto recognize and agree that on July 17, 1964, the CITY of Morro Bay, Lessor herein, succeeded to all of the right, title and interest of the County of San Luis Obispo in and to all of the tide and submerged lands conveyed to said County by the State of California pursuant to the above mentioned acts; and WHEREAS, judgment has been entered on October 14, 1968, in the case of CITY of Morro Bay, Plaintiff, versus County of San Luis Obispo, and State of California, Defendants, by the Superior Court of the State of California in and for the County of San Luis Obispo, #30417, • adjudging and decreeing, among other things, that the title to said tide and submerged lands so conveyed by the State of California to the County of San Luis Obispo in trust, as set forth above, passed automatically to the CITY of Morro Bay upon the date of its incorporation as a CITY on the 17th day of July, 1964; and WHEREAS, TENANT accepts the within lease with full knowledge that there is no warranty of title in and to the within described premises by CITY to TENANT; and WHEREAS, in order to develop and improve the Morro Bay Harbor, and to assist in carrying out the provisions of the tideland grant as aforesaid, and in order to provide facilities for the accommodation of those using Morro Bay Harbor, CITY leases to TENANT the within described property upon the terms and conditions set forth herein; NOW, THEREFORE, in consideration of the covenants to be performed and the rental to be paid by TENANT to CITY, CITY leases to TENANT, and TENANT leases from CITY, the premises herein called "said premises" in the CITY of Morro Bay, County of San Luis Obispo, State of California, described as follows: Lease Site 122-123/122W-123W and Extension of Lease Site 122W-123W This property is delineated on Parcel Map of the CITY of Morro Bay No. 68-30, which map was recorded on October 10, 1968, in Book 3, Page 10 of Parcel Maps in the Office of the County Recorder, San Luis Obispo County, California. A copy of said Map is attached hereto as Exhibit A and made a part hereof by reference. Article I FIXED TERM • Section 1.01 Term The term of the lease shall be a period of twenty (20) years, commencing July 1, 1998 and terminating without notice on June 30, 2018, unless sooner terminated as herein provided. 2 • Section 1.02 No Extensions Except as provided in Section 13.03 and Section 13.04 hereof, the term of this lease shall not be extended nor shall this lease be renewed. Requests for continued use of the premises shall be treated as an application for a new lease and shall require appropriate application to the CITY with all required supporting information and documents, CITY Council approval and the execution of a new CITY lease, containing the then most current terms, covenants, conditions and rent schedules. Section 1.03 Hold Over Should TENANT hold the demised premises after the expiration of the term of this lease with the consent of the CITY, express or implied, such holding over (in the absence of a written agreement between CITY and TENANT with respect thereto) shall be deemed to create a tenancy from month to month, terminable on thirty (30) days written notice from either party to the other, at a monthly rental equal to twice one -twelfth (1/12) of the total minimum and percentage rental for the preceding twelve (12) months (equal to 1/6 annual rent per month), and otherwise subject to each and every term, covenant and condition of this lease. TENANT shall indemnify and hold CITY harmless from any and all loss or liability, including, but not limited to, claims. of succeeding TENANTS, resulting from TENANTS failure to surrender possession of the demised premises upon termination of this lease during, at the end, or after expiration of the term hereof. Article 2 RENT • Section 2.01 Minimum Rent TENANT agrees to pay to CITY in addition to the additional sums specified herein below, a minimum guaranteed annual rental for the use and occupancy of said premises of Thirty Thousand dollars ($30,000.00) per year payable in advance in equal semiannual installments on the first days of January and July of each year commencing July 1, 1998. Said rental shall be paid in lawful money of the United States of America, without offset or deduction and shall be paid to CITY at City Hall located at 595 Harbor Street, Morro Bay, California, or at such other place or places CITY may from time to time designate by written notice delivered to TENANT. Section 2.02 Annual CPI Adiustment to Minimum Rent The parties agree that on the first day of July, 1999 and each July 1 thereafter the minimum guaranteed annual rental shall be increased or decreased in direct proportion to any upward or downward movement from the Consumer Price Index for January, 1998, which is hereby agreed to be 161.0. The Consumer Price Index referred to herein is the Consumer Price Index (all items indexes, all urban consumers) for Los Angeles - Anaheim - Riverside, California, compiled and published by the United States Department of Labor, Bureau of Labor Statistics, 1982-84 Base Year = 100 (hereafter called Index.) The percentage adjustment for any given year shall be based upon the average monthly index for twelve months ending December 31 st. The minimum annual rental shall be adjusted once each year on July 1, and will remain in effect as adjusted through June 30 of the following year, at which time it will be readjusted. (By way of illustration only, if the Index was 130 on January 1, 1986 and the average monthly Index • from January 1986 through December 1986 equals 136 then the percentage increase is 4.62%. Therefore the minimum guarantee annual rental then being paid by TENANT would be increased by 4.62% commencing July 1, 1987 and continuing at that rate until June 30, 1988.) 3 • If the United States Department of Labor, Bureau of Labor Statistics, shall cease to compile and make public the Index as now constituted and issued, but shall substitute another index in its place, then said substituted index shall be used for the purpose of adjusting the minimum rental for the leased premises. Section Z03 Five Year Calculation for New Minimum Rent On July 1, 2003 and at the end of each five year period thereafter, a new minimum guaranteed annual rental shall be calculated as fellows: A. A reasonable time prior to the end of the fifth year and of each five-year period thereafter, an appraisal shall be made of the fair market value of the leased premises, excluding fixtures and improvements unless such are expressly included in the description of the leasehold hereinabove. CITY, at its own cost and expense, shall retain an independent qualified appraiser acceptable to TENANT for detemtination of the fair market value of said premises. If the parties are unable to agree upon a mutually acceptable appraiser then each party shall select one member of a three member committee. The two so selected members shall select the third member and this committee shall by majority vote select an independent professionally designated appraiser who is a member of the American Institute of Real Estate Appraisers, or the Society of Real Estate Appraisers with a designation of MAI (Member of American Institute), SRPA (Senior Real Estate Analysis), to appraise the fair market value of the leased premises. In the event that the appraisal process is not concluded on or before the five year adjustment date, the rent shall be adjusted retroactively to such five year adjustment date as set out hereinbelow when said appraisal process is completed. • B. The total rent paid including both the minimum guaranteed annual rental and the percentage of gross sales for each year within the applicable five year period shall be averaged to produce the average annual total rent paid. C. The new minimum guaranteed annual rental for the next ensuing five-year period shall be the greater amount of seventy-five (75) percent of the average of the total yearly rent paid during the previous five year period (as set out in paragraph B. above) or eight (8) percent of the fair market value of said premises (as established in paragraph A. above.) The new minimum guaranteed annual rent figure shall be divided by two to determine the semiannual payments and shall be paid by TENANT to CITY on the first of each January and July thereafter. This new minimum rent shall be adjusted each following year in proportion to any change in the Consumer Price Index as set out in Section 2.02 herein above. Section 2.04 Percentage Rental A. Commencing on July 1, 1999, and continuing during the term of this agreement, TENANT shall pay percentage rental as outlined below. In addition to the minimum guaranteed annual rental specified hereinabove TENANT agrees to pay to CITY at the time and in the manner hereinafter specified, as rent for the use and occupancy of said premises an additional sum equal to that percentage of TENANTS gross sales, hereinafter defined, as shown on Exhibit B, attached hereto and incorporated herein by reference, less the amount of the minimum guaranteed rental paid pursuant to Section 2.01, 2.02, and 2.03 herein above. B. The tern "gross sales," as used herein, shall (subject to the exception and • authorized deductions as hereinafter set forth), mean the total selling price and the total gross amount received by TENANT from all rentals, merchandise sold and services rendered in, on or from said premises by TENANT, his sublessees, licensees, or concessionaires, both for cash and on credit including, but not limited to, rentals of dockage space, leasing and servicing operations and ticket sales including such ticket sales which may be executed at another location but are for 4 • passengers using a vessel on the premises, and if on credit whether or not payment be actually made therefore, all charges for services, alterations or repairs made in or upon said premises; the gross amount received by TENANT for merchandise sold pursuant to orders received in said premises, though filled elsewhere; and the gross amount received by TENANT from any and all other sources of income derived from the business conducted upon said premises. C. Notwithstanding the provisions of Section 2.04 A. of this lease, the term "gross sales" shall not include the following items, artd such items may be deducted from "gross sales" to the extent they have been included therein or have been included in a prior computation of "gross sales" or for which a percentage rental has been paid under this lease to CITY. (1) Credits and refunds made to customers for merchandise returned or exchanged; and (2) Any sales or excise taxes otherwise includable in "gross sales" as defined in this article because a part of the total selling price of merchandise or services rendered in, from, or on said premises where TENANT must account for and remit the taxes to the government entity or entities by which they are imposed. (3) Ticket sales for Tiger's Folly 11 until June 30, 2002, after which time said ticket sales shall not be excluded. (4) Any discount fee paid by TENANT to financial institutions for the use of that institution's credit card service. (5) Promotional sales and coupons where TENANT registers a sale but collects no revenues for the purpose of promoting business on the premises and in the waterfront isonly, provided that the total deduction may not exceed I % of the total annual gross sales for the premises. D. TENANT shall keep or cause to be kept full, complete, and accurate records, and books of account in accordance with accepted accounting practices showing the total amount of gross sales, as defined herein, made each calendar month in, on or from said premises. TENANT shall keep said records and books of account within San Luis Obispo County and shall notify CITY in advance of their location at all times. Furthermore, TENANT shall at the time of sale and in the presence of the customer cause the full selling price of each piece of merchandise, each rental received and each service rendered in, on or from said premises to be recorded in a cash register or cash registers that have cumulative totals and are sealed in accordance with standard commercial practices. Said records, books of account and cash register tapes, including any sales tax reports that TENANT may be required to furnish any government or governmental agency shall at all reasonable times be open to the inspection of CITY, CITY'S auditor, or other authorized representative or agent of CITY. TENANT consents to the release of sales tax information to CITY and on demand will famish to CITY a copy of the sales tax reports, quarterly reports and any audit reports of sales for confidential internal use of the CITY in determining gross sales for TENANT. TENANT consents and authorizes CITY to request such information directly from the State Board of Equalization or other state agency with which sales tax information is filed. • E. By July 31, of each year TENANT shall furnish CITY with a statement, to be certified by TENANT as current, true and accurate, which shall set forth the gross sales (as defined herein) of each department, sub -lessee, licensee and concession operating in, on or from said premises for the previous twelve (12) calendar months, ending June 30, just concluded, and the authorized deductions, if any, therefrom; and with it TENANT shall pay to CITY the amount of the additional rental which is due to CITY as shown thereby. If TENANT shall at any time 5 • cause an audit of sales of TENANTS business to be made by a public accountant, TENANT shall furnish CITY with a copy of said audit without cost or expense to CITY. CITY may, once in any calendar year, cause an audit of the business of TENANT to be made by a public accountant of CITY'S own selection. TENANT shall, upon receiving written notice of CITY'S desires for such an audit deliver and make available all such books, records and cash register tapes to the public or certified public accountant selected by CITY. Furthermore, TENANT shall promptly on demand reimburse CITY for the full cost and expense of said audit, should the audit disclose that the questioned Statement or statements understated gross sales by five percent (5%) or more but less than ten percent (10%). TENANT shall also immediately pay the additional rental with interest, therein shown to be payable by TENANT to CITY. Otherwise the cost of such audit shall be paid by CITY. In the event that an audit or other review of records discloses that the amounts reported as gross sales was understated by TENANT by ten percent (10%) or more, CITY shall not only be entitled to recovery from TENANT all costs of audit and review but shall also be entitled to recovery from TENANT a penalty equal to two times the percentage of gross sales rent due pursuant to this lease on such unreported amounts. F. CITY shall be entitled at any time within five years after the receipt of any such additional rental payment, to question the sufficiency of the amount thereof and/or the accuracy of the statement or statements furnished by TENANT to justify the same. For the purpose of enabling CITY to check the accuracy of any such statement or statements, TENANT shall for said period of five (5) years after submission to CITY of any such statement keep all of • TENANTS records, including sales tax returns, all cash register tapes and other data which in any way bear upon or are required to establish in detail TENANTS gross sales of merchandise and services and any authorized deductions therefrom as shown by any such statements and shall upon request make the same available to CITY for examination. Section 2.05 Penalty and Interest A. If any rent is not received within ten days following the date on which the rent first became due, TENANT shall pay a late penalty of ten percent (10%) of the amount of the rent in addition to the rent. B. In addition to the penalty, TENANT shall pay interest at the rate of one percent (1%) per month or fraction thereof or the maximum amount permitted by law as of the date this lease is signed, whichever is greater, on the amount of the rent, exclusive of the penalty, from the date on which rent first became delinquent until paid. The term "rent' includes any sums advanced by the CITY and any unpaid amounts due from TENANT to the CITY. Article 3 USE OF PREMISES Section 3.01 Permitted Use Said premises shall, during the term of this lease, be used for the purpose of operating and conducting thereon and therein the following: Food service, both dining room and take out, sale of alcoholic beverages, berthing of vessels, ticket and charter sales and for uses normally incident to and directly allied to such purpose and for no other purpose. • Section 3.02 Unauthorized Use TENANT agrees to allow only those uses authorized in Section 3.01 herein above and that any unauthorized use thereof shall constitute a breach of this agreement and shall, at the option of CITY terminate this lease. In the event said premises are used for uses other than those specifically authorized herein, then in addition to all other remedies allowed by law or authorized 6 • elsewhere in this lease, CITY shall be entitled to receive from TENANT and TENANT shall be required to pay to CITY an additional rent calculated as a percentage of the "gross sales" as defined herein, accountable to such unauthorized use, which is equal to twice what such percentage would have been had such use been authorized in advance. Said additional rent shall be retroactive to the commencement of such unauthorized use and shall continue until the unauthorized use is abated. The parties agree and understand that the collection and acceptance by CITY of this additional rental, shall not, in any way be deemed a waiver nor estoppel of CITYS right to require abatement of the unauthorized use or at CITYS option to pursue any other remedies available at law or equity. In the event the parties cannot agree on whether a use is authorized by this lease, the parties shall appoint a three member committee whose determination of that issue shall be final. Each party shall appoint one member and those two members shall appoint the third. Section 3.03 Operation of Business - Hours of Operation Failure to actively and diligently conduct the business authorized herein, constitutes a breach of the agreement and shall, at the option of CITY terminate this lease. A. TENANT shall during the term of this lease conduct business of the nature specified in Section 3.01 of this lease on said premises in an efficient and diligent manner and keep said premises open for the conduct of business continuously and without interruption for at least gix hours each day of the year except one day each week and legal holidays. This provision shall not apply if said premises shall be closed and the business of TENANT is temporarily shut down for a period not to exceed 14 calendar days in any calendar year to make necessary minor or major • repairs, maintenance or other construction deemed necessary by TENANT. Further this provision shall not apply if said premises shall be closed and the business of TENANT is temporarily shut down as authorized or required by the CITY Administrator or on account of strikes, walkouts, or causes beyond the control of TENANT or for not over three (3) days out of respect to the memory of an officer, employee, or close relative of any officer or employee of TENANT. B. TENANT shall operate TENANTS business on said premises with due diligence and efficiency and in like manner as comparable businesses in CITY or coastal area are operated, so as to produce all of the gross sales and gross receipts from services which may be produced from TENANTS business; and TENANT at all times shall carry on said premises, a stock or merchandise of such size, character, and quality as is reasonable, designed to produce the maximum return to TENANT, when sales of goods and merchandise are a permitted purpose of this lease. Section 3.04 Competition During the term of this lease, TENANT shall not directly nor indirectly engage in any similar or competing business within a radius of five (5) miles from the location of said premises, provided, however, that TENANT may, with prior written approval from CITY, own or operate more than one business, whether or not competing and similar along the Embarcadero upon CITY lease sites. The purpose of this section is to prevent and prohibit TENANT from reducing revenue to CITY by diverting business from his lease site operation to another similar • business owned by TENANT within the CITY but not upon a CITY lease site from which CITY is paid rent based on gross sales. 7 • Section 3.05 Tidelands Trust TENANT shall use and occupy said premises in complete compliance with the Tidelands Trust purposes under which said premises or any portion thereof are held by CITY pursuant to the grants from the State of California as set forth hereinabove. Section 3.06 Compliance with Law TENANT shall, at his sole cost and expense, comply with all of the requirements of all local, municipal, county, state and federal authgrities now in force, or which may hereafter be in force, pertaining to the said premises, and shall faithfully observe in the use of the premises all local, municipal and county ordinances and state and federal statutes, rules and regulations now in force or which may hereafter be in force. The judgment of any court of competent jurisdiction, or the admission of TENANT in any action or proceeding against TENANT, whether CITY be a parry thereto or not, that TENANT has violated any such ordinance, statute, rule or regulation in the use of the premises shall be conclusive of that fact as between CITY and TENANT. Section 3.07 Waste or Nuisance TENANT shall not commit or permit the commission by others of any waste on said premises; TENANT shall not maintain, commit, or permit the maintenance or commission of any nuisance as defined by law on said premises; and TENANT shall not use or permit the use of said premises for any unlawful purpose. Article 4 CONSTRUCTION, ALTERATION AND REPAIRS • Section 4.01 Construction Approval TENANT shall not make or permit any other person to make any alterations or structural additions or structural modifications to said premises or to any structure thereon or facility appurtenant thereto if the cost thereof shall exceed five thousand ($5,000) dollars, without the written consent of CITY first had and obtained as follows: Prior to the commencement of any phase of future construction, TENANT shall submit to the Morro Bay Planning Department for approval and recommendation to the CITY Council, a development and improvement plan for the leased premises which shall provide for the full and complete development of the leased premises, showing all facilities, structures, landscaping or other improvements to be constructed or installed on each portion of the lease premises or facilities appurtenant thereto, and shall include a detailed estimate of the cost of construction, and installation of such improvements and a detailed schedule showing the proposed commencement and completion date of each phase of the development and improvement. Where required by the Morro Bay Municipal Code, California Coastal Act, Corps of Engineers or any other agency having authority over the proposed project, Conditional Use Permits, Concept Plans, Precise Plans, Coastal Development Plans, and any other required plans or permits shall be applied for and/or approved prior to any construction, alteration or repairs. Section 4.02 Construction Bond Prior to the commencement of any construction the cost of which is greater than the amount of $10,000, TENANT shall file with the Morro Bay CITY Clerk a final detailed Civil • Engineers, Registered Architect's or Licensed and Bonded General Contractor's estimate of the cost of construction and installation of improvements on the leased premises. Said estimate must be submitted to the CITY Engineer for approval. TENANT shall file with the Morro Bay CITY Clerk a faithful performance bond, in a form and issued by a corporate surety company satisfactory to CITY, in an amount equal to One Hundred percent (100%) of the final detailed 8 • cost estimate, securing the faithful performance of TENANT or his contractor in the completion of said construction. TENANT shall also file with the Morro Bay CITY Clerk a labor and materials bond, in a form and issued by a corporate surety company satisfactory to CITY, in an amount equal to fifty percent (50%) of the final detailed cost estimate, securing the payment of all claims for the performance of labor or services on, or the famishing of materials for, the performance of said construction. In lieu of the above referenced bonds,'TENANT may post cash deposits or may make other mutually satisfactory arrangements to guarantee the completion of construction projects. In the event the contractor bonds the project he may name CITY as additional indemnitee to comply with these requirements. Section 4.03 Mechanics' Liens At all times during the term of this lease, TENANT shall keep said premises and all buildings and improvements now or hereafter located on said premises free and clear of all liens and claims of liens for labor, services, materials, supplies, or equipment performed on or furnished to said premises. TENANT further agrees to at all times, save CITY free and harmless . and indemnify it against all claims for labor or materials in connection with any improvement, repairs, or alterations on the leased premises, and the cost of defending against such claims, including reasonable attorney's fees. Should TENANT fail to pay and discharge or cause said premises to be released from such liens or claim of liens within ten (10) days after the filing of such lien or levy, TENANT • shall upon written notification be required to immediately deposit with CITY a bond conditioned for payment in full of all claims on which said lien or levy has been filed. Such bond shall be acknowledged by TENANT as principal and by a company or corporation, licensed by the Insurance Commissioner of the State of California to transact the business of a fidelity and surety insurance company as surety. The beneficiary of any security instrument which instrument is on record with CITY, shall have the right to file such a bond on behalf of TENANT. Section 4.04 Ownership of Improvements The parties agree that at the termination of this lease, however occurring, TENANT shall have 60 days thereafter to remove all structures, facilities, installations, improvements and other property belonging to TENANT from the leased premises. The parties further agree that CITY also has the option and right to require TENANT to remove all structures, installations, improvements of any kind or other property belonging to or placed upon the leased premises by TENANT at the termination of this lease, however occurring, providing CITY gives notice, in writing, no later than 30 days prior to the termination of the lease, of its decision to require that such improvements be removed. If CITY exercises such option and TENANT fails to remove such installations or improvements within 60 days after the temtination of this lease, CITY shall have the right to have such installations or improvements removed at the expense of TENANT. If neither TENANT nor CITY exercise its option to remove or require the removal of as the case may be the improvements and installations, then title to such installations, structures and improvements shall vest in CITY and TENANT shall not remove same. • Article 5 HYPOTHECATION OF LEASE CITY shall not be responsible for notifying any lien or security interest holder in the property of any default in the performance of the lease by TENANT unless the lien or security interest holder shall have previously registered with and notified CITY of such lien or security interest and filed with the City Clerk a copy of same. 9 • Article 6 REPAIRS, MAINTENANCE AND RESTORATION Section 6.01 Maintenance 6v TENANT At all times during the term of this lease, TENANT shall, at TENANTS own cost and expense, keep and maintain said premises and all improvements now or hereafter on said premises in good order and repair and in a safe and clean condition. Furthermore, TENANT shall, at TENANTS own cost and expense, maintain at all times during the term of this lease the whole of said premises as well as any improvements, landscaping, or facilities thereon in a clean, sanitary, neat, tidy, orderly and attractive condition. CITY may, at the sole option of CITY, clean and clear said premises, at TENANTS cost and expense, in the event TENANT fails to clean and clear said premises in accordance with this Section to the satisfaction of CITY after fifteen (15) days written notice to TENANT from CITY of CITY's intent to exercise this option. Section 6.02 Seawalls and Revetment At all times during the term of this lease, TENANT shall at TENANTS own cost and expense repair, maintain, replace and rebuild as necessary, the improvements, pilings, bulkheads, seawalls, revetment, piers, posts and any structures or other improvements located in the water portion of the lease premises. Further TENANT shall at TENANTS own cost and expense conduct maintenance surveys at reasonable intervals to locate and determine needed repairs. Section 6.03 Requirements of Governmental Agencies • At all times during the term of this lease, TENANT, at TENANTS own cost and expense, shall: (1) Make all alterations, additions, or repairs to said premises or the improvements or facilities on said premises required by any valid law, ordinance, statute, order, or regulation now or hereafter made or issued by any federal, state, county, CITY or other govemmental agency or entity; (2) Observe and comply with all valid laws, ordinances, statutes, orders, and regulations now or hereafter made or issued respecting said premises or the improvements or facilities located thereon; (3) Obtain all required permits pursuant to the Morro Bay Municipal Code or State law prior to the instigation of any repair or maintenance activity. (4) Indemnify and hold CITY and the property of CITY, including said premises, free and harmless from any and all liability, loss, damages, fines, penalties, claims and actions resulting from TENANTS failure to comply with and perform the requirements of this section. Section 6.04 Failure to Repair In the event failure to repair results in a hazardous or unsafe condition, CITY shall have the right and option but not the obligation to close and prohibit access to the unsafe portion of the leased premises until such repairs are completed and accomplished and the premises rendered safe for public use. Failure by CITY to enforce any of the provisions of this Article shall not constitute a waiver of these provisions and CITY may at any time enforce all of the provisions of this Article, requiring all necessary repairs, rebuilding or replacement. • Section 6.05 TENANT'S Duty to Restore Premises Should, at any time during the term of this lease, any buildings or improvements now or hereafter on said premises be destroyed in whole or in part by fire, theft, the elements, or any other cause not the fault of CITY, this lease shall continue in full force and effect and TENANT, at TENANTS own cost and expense, shall repair and restore the damaged or destroyed building, to • buildings, improvement, or improvements according to the original plan thereof or according to such modified plans therefore as shall be approved in writing by CITY. The work of repair and restoration shall be commenced by TENANT within one hundred eighty (180) days after the damage or destruction occurs and shall be completed with due diligence not longer than one (1) year after the work is commenced. In all other respects, the work of repair and restoration shall be done in accordance with the requirements for original construction work on said premises set forth in Article 4 of this lease. Section 6.06 Inspection by CITY TENANT shall permit CITY or CITY'S agents, representatives, or employees to enter said premises at all reasonable times for the purpose of inspecting said premises to determine whether TENANT is complying with the terms of this lease and for the purpose of doing other lawful acts that may be necessary to protect CITY'S interest in said premises under this lease or to perform CITY'S duties under this lease. Section 6.07 Option to Terminate Lease for Destruction Notwithstanding the provision of Section 6.05 of this lease, TENANT shall have the option of terminating this lease on the last calendar day of any month by giving CITY at least thirty (30) days prior written notice of TENANTS intent to do so and by removing, at TENANTS own cost and expense, all debris and remains of the damaged improvements from said premises where: (1) Any buildings or improvements now or hereafter on said premises are so damaged or • destroyed by fire, theft, the elements, or any cause not the fault of TENANT or CITY during the last fifteen (15) years of the term of this lease that they cannot be repaired and restored as required by Section 6.05 of the lease at a cost not exceeding thirty-five (35) percent of the cost of replacing all buildings and improvements if totally destroyed then, immediately preceding the calamity damaging or destroying the damaged buildings or improvements, located on said premises. (2) Any buildings or improvements now or hereafter on said premises are so damaged or destroyed by fire, theft, the elements, or any cause not the fault to TENANT or CITY during the last ten (10) years of the term of this lease that they cannot be repaired and restored as required by Section 6.05 of this lease at a cost not exceeding fifteen (15) percent of the cost of replacing all buildings and improvements if totally destroyed then, immediately preceding the calamity damaging or destroying the damaged or destroyed buildings or improvements, located on said premises. Section 6.08 ADplication of Insurance Proceeds Any and all fire or other insurance proceeds that become payable at any time during the term of this lease because of damage to or destruction of any buildings or improvements on said premises shall be paid to TENANT and applied by TENANT toward the cost of repairing and restoring the damaged or destroyed buildings or improvements in the manner required by Section 6.05 of this lease; provided, however, that should TENANT exercise the option given TENANT by Section 6.07 of this lease to terminate this lease because of damage to or destruction of buildings or improvements on said premises, then, in that event, any and all fire or other insurance proceeds that become payable because of such damage or destruction: • (1) Shall be applied first toward the reduction of the unpaid principal balance of the obligation secured and discharging said premises from any then outstanding encumbrance or encumbrances incurred by TENANT pursuant to Article 5 of this lease; and ll • (2) Then the balance of the proceeds, if any, shall be paid to CITY to compensate CITY, at least in part, for the loss to its fee estate of the damaged or destroyed buildings or improvements. Article 7 INDEMNITY AND INSURANCE Section 7.01 Indemnity Agreement TENANT shall indemnify and hold CITY and the property of CITY, including said premises and any buildings or improvements now or hereafter on said premises, free and harmless from any and all liability, claims, loss, damages, or expenses resulting from TENANTS occupation and use of said premises, specifically including, without limitation, any liability, claim, loss, damage, or expense arising by reason of: (1) The death or injury of any person, including TENANT or any person who is an employee or agent of TENANT, or by reason of the damage to or destruction of any property, including property owned by TENANT or by any person who is an employee or agent of TENANT, from any cause whatever while such person or property is in or on said premises or in any way connected with said premises or with any of the improvements or personal property on said premises; (2) The death or injury of any person, including TENANT or any person who is an employee or agent of TENANT, or by reason of the damage to or destruction of any property, including property owned by TENANT or any person who is an employee or agent of TENANT, caused or allegedly caused by either (a) the condition of said premises or some building or • improvement on said premises, or (b) some act or omission on said premises of TENANT or any person in, on, or about said premises with or without the permission and consent of TENANT; (3) Any work performed on said premises or materials furnished to said premises at the instance or request of TENANT or any person or entity acting for or on behalf of TENANT. (4) TENANT'S failure to perform any provision of this lease or to comply with any requirement of law or any requirement imposed on TENANT or said premises by any duly authorized governmental agency or political subdivision. Section 7.02 Liability Insurance TENANT shall at TENANTS own cost and expense, secure promptly after the execution of this lease and maintain during the entire term of this lease a broad form comprehensive coverage policy or policies of comprehensive general public liability, TENANTS business automobile coverage and property damage insurance, each with the combined single limit of not less than $1,000,000.00 issued by an insurance company acceptable to CITY and authorized to issue liability insurance in California, and which shall list CITY as the named primary additional insured, without offset to CITY'S policies as respects all operations of TENANT. Any deductibles or self -insured retentions must be declared to and approved by CITY. The terms of said policies may be for such period as shall be designated by TENANT; provided however, that within two (2) months prior to the expiration date of such insurance terms, TENANT shall procure other policies of said insurance so that between the execution of this lease and the commencement of the lease term, and throughout the entire lease term or any renewal thereof, or until the sooner termination hereof, CITY, its officials, employees, agents and volunteers shall always be added as named primary additional insured under the policies of comprehensive • general liability, business automobile coverage, and property damage insurance, in accordance with the foregoing. 12 • CITY may at any time require TENANT to increase the minimum coverage limits for insurance required by this lease, but every such increase shall be reasonable under the circumstances and in no event shall such increases more than double in any ten year period, except as required in Section 7.04. Section 7.03 Workers Compensation TENANT shall maintain at TENANT'S own expense and keep in full force and effect during the term of this lease, Workefs Compensation Insurance as provided by law. Said insurance shall contain a waiver provision of subrogation rights against CITY. Section 7.04 Fire and Casualty Insurance TENANT shall, at TENANTS own cost and expense, at all times during the term of this lease keep all buildings, improvements, and other structures on said premises, as well as any and all additions thereto, insured for ninety (90) percent of their full insurable value by insurance companies authorized to issue such insurance in California against loss or destruction by fire and the perils commonly covered under the standard and special form endorsement to fire insurance policies in the CITY of Morro Bay. Any loss payable under such insurance shall be payable to TENANT, CITY, and any Lender under an encumbrance incurred by TENANT pursuant to Article 5 of this lease as their interests may appear. Any proceeds received because of a loss covered by such insurance shall be used and applied in the manner required by Section 6.08 of this lease. Section 7.05 Speck Perils to be Insured • Notwithstanding anything to the contrary contained in Section 7.04 of this lease, the insurance required by Section 7.04 of this lease shall, whether or not included in the standard extended coverage endorsement mentioned in Section 7.04, insure all buildings, improvements, and other structures on said premises, as well as any and all additions thereto, against loss or destruction by water damage, windstorm, cyclone, tornado, hail, explosion, riot, riot attending a strike, civil commotion, malicious mischief, vandalism, aircraft, fire, smoke damage, and sprinkler leakage. Furthermore, the insurance required by Section 7.04 of this lease during the construction of said building project described in Article 5 shall have course of construction, vandalism, and malicious mischief clauses attached insuring said project during its construction and all materials delivered to the site of said building project for their full insurable value. Section 7.06 Deposit of Insurance with CITY TENANT shall within ten (10) days after the execution of this lease and promptly thereafter when any such policy is replaced, rewritten, or renewed deliver to CITY a true and correct copy of an insurance binder and within 45 days deliver to CITY a true and correct copy of each insurance policy required by this Article of this lease and an endorsement to the policy and a certificate executed by the insurance company or companies or their authorized agent evidencing such policy or policies. Section 7.07 Notice of Cancellation of Insurance Each insurance policy required by this Article of this lease shall contain a provision that it cannot be canceled for any reason nor can the coverage or fruits be reduced unless ten (10) days • prior written notice of the cancellation or reduction is given to CITY in the manner required by this lease for service of notices on CITY by TENANT. • 13 Section 7.08 No Subrogation Each insurance policy required under this lease including those insuring TENANT against claims, expense, or liability for injury to persons or property shall provide that the insurer shall not acquire by subrogation any right to recovery which TENANT has expressly waived in writing prior to the occurrence of the loss. TENANT hereby waives any right of recovery against CITY for each such claim, expense, liability, gr business interruption. TENANT agrees that if TENANT fails to acquire such insurance TENANT shall not have a claim against CITY for loss of fixtures or inventory or business interruption. Article 8 TAXES AND UTILITIES Section 8.01 TENANT to Pay Taxes TENANT shall pay, before delinquency, all taxes and assessments levied upon or assessed to TENANT on the lease premises by reason of said lease or of any equipment, appliances, improvement, or other development of any nature whatsoever, erected, installed, or maintained by TENANT or by reason of the business or other activity of TENANT upon or in connection with said premises. TENANT shall pay all possessary interest taxes applicable to the lease premises. ' Section 8.02 TENANT to Pay License and Pennit Fees TENANT shall pay any fees imposed by law for licenses or pemrits for any business or • activities including construction of TENANT upon the leased premises. Section 8.03 Utilities TENANT shall pay, or cause to be paid, and hold CITY and the property of CITY including said premises free and harmless from all charges for the furnishing of gas, water, electricity, telephone service, and for other public utilities to said premises during the term of this lease and for the removal of garbage and rubbish from said premises during the term of this lease. Article 9 CONDEMNATION Section 9.01 Total Condemnation If title and possession to all of the premises is taken for any public or quasi -public use under any statute, or by the right of eminent domain, then this lease shall terminate on the date that possession of the premises is taken, and both CITY and TENANT shall thereafter be released from all obligations including rent which shall be prorated to the date of termination, except those specified in Section 9.02 of this lease. Section 9.02 Condemnation Award Any compensation or damages awarded or payable because of the taking of all or any portion of said premises by eminent domain shall be allocated between CITY and TENANT as follows: (1) All compensation or damages awarded or payable for the taking by eminent • domain of any land that is part of the said premises shall be paid to and be the sole property of CITY free and clear of any claim of TENANT or any person claiming rights to said premises through or under TENANT. 14 • (2) All compensation or damages awarded or payable which is specifically attributed by the taking party to the "good will' of TENANTS business shall be paid to and be the sole property of TENANT. (3) All compensation or damages awarded or payable because of any improvements constructed or located on the portion of said premises taken by eminent domain where only a portion of said premises is taken by eminent domain and TENANT is not entitled to or does not terminate this lease shall be applied in the manner specified in Section 9.04 toward the replacement of such improvements with equivalent new improvements on the remaining portions of said premises. (4) All compensation or damages awarded or payable because of any improvements constructed or located on the portion of said premises taken by eminent domain where this lease is terminated because of the taking by eminent domain, whether all or only a portion of said premises is taken by eminent domain, shall be allocated between CITY and TENANT as follows: (a) That percentage of the compensation or damages awarded or payable because of the improvements that equals the percentage of the full term of this lease that has, at the time of the taking, not expired shall belong to and be the sole property of TENANT. (b) That percentage of the compensation or damages awarded or payable because of the improvements that equals the percentage of the full term of this lease that has, at the time of the taking, expired shall belong to and be the sole property of CITY. (c) The term "time of taking" as used in this subparagraph shall mean 12:01 a.m. of, whichever shall fast occur, the date title or the date physical possession of the portion of said • premises on which the improvements are located is taken by the agency or entity exercising the eminent domain power. (5) Any severance damages awarded or payable because only a portion of said premises is taken by eminent domain shall be: (a) The sole and separate property of TENANT during the first ten (10) years of the term of this lease; (b) Equally divided, except to the extent needed to replace any improvements taken by eminent domain with equivalent improvements on the remaining portion of said premises where TENANT cannot or does not terminate this lease, between CITY and TENANT during the eleventh (I Ith) to twentieth (20th) years of the term of this lease; and (c) The sole and separate property of CITY during the last ten (10) years of the term of this lease. Section 9.03 Termination for Partial Takin Should, during the term of this lease, title and possession of only a portion of said premises be taken for any public or quasi -public use under any statute, or by right of eminent domain, TENANT may, at TENANTS option, terminate this lease by serving written notice of termination on CITY within ninety (90) days after TENANT has been deprived of actual physical possession of the portion of said premises taken for such public use. This lease shall terminate on the first day of the calendar month following the calendar month in which the notice of termination described in this section is served on CITY. On termination of this lease pursuant to this Article, all sub -leases and sub -tenancies in or on said premises or any portion of said premises created by TENANT under this lease shall also terminate and said premises shall be • delivered to CITY free and clear of all such sub -leases and sub -tenancies, provided, however, that CITY may, at CITY'S option, by mailing written notice to a sub -tenant allow any sub -tenant to attom to CITY and continue his or her occupancy on said premises as a TENANT of CITY. On termination of this lease pursuant to this section, however, both CITY and TENANT shall be released from all obligations, except those specified in Section 9.02 of this lease, under this lease. 15 • Section 9.04 Rent Abatement for Partial Takino Should, during the term of this lease, title and possession of only a portion of said premises be taken under the power of eminent domain by any public or quasi -public agency or entity and TENANT does not terminate this lease, then this lease shall terminate as to the portion of said premises taken under eminent domain on the date actual physical possession of the portion taken by eminent domain is taken by the agency or entity exercising the eminent domain power. Furthermore, the rent payable under this lease shall, as of that time, be reduced in the same proportion that the value of the portion of said premises taken by eminent domain bears to the full value of said premises at that time; provided, however, that TENANT shall replace any improvements or facilities with equivalent new facilities on the remaining portion of said premises and do all other acts at TENANTS own cost and expense required by the eminent domain taking to make the remaining portion of said premises fit for the use specified in this lease. Section 9.05 Conveyance in Lieu of Eminent Domain A voluntary conveyance by CITY, with the consent of TENANT, of title to all or a portion of said premises to a public or quasi -public agency or entity in lieu of and under threat by such agency or entity to take the same by eminent domain proceedings shall be considered a taking of title to all or such portion of said premises under the power of eminent domain subject to the provisions of this Article. Article 10 ASSIGNMENT AND SUBLEASING • Section 10.01 No Assignment Without C1TY'S Consent Except as provided in Section 10.02 of this lease, TENANT shall not assign or otherwise transfer this lease, any right or interest in this lease, or any right or interest in said premises or any of the improvements that may now or hereafter be constructed or installed on said premises without the express written consent of CITY evidenced by resolution first had and obtained. Any assignment or transfer by TENANT without the prior written consent of CITY, whether it be voluntary or involuntary, by operation of law or otherwise, is void and shall, at the option of CITY, terminate this lease. A consent by CITY to one assignment shall not be deemed to be a consent to any subsequent assignment of this lease by TENANT. CITY shall not unreasonably nor arbitrarily withhold its approval to the assignment or transfer of this lease to an assignee who is financially reliable and qualified to conduct the business for which this lease was granted. It is mutually agreed that the personal qualifications of the person named herein as TENANT is a part of the consideration for granting of this lease and said party does hereby agree to maintain active control and supervision of the operation conducted on said premises. Section 10.02 Transfer of Stock as Assignment Should TENANT be a corporation, an unincorporated association, or a partnership, or should TENANTS interest in this lease be assigned to a corporation, an unincorporated association, or a partnership, pursuant to Section 10.01 of this lease, any transfer or assignment of any stock or interest in the corporation totaling in the aggregate more than forty (40) percent of all such stock or interest in the corporation shall be considered an assignment of this lease requiring the prior written consent to CITY; provided, however, that a transfer from TENANT to • a corporation of which TENANT owns 100% of the shares and any transfer of shares to a shareholder's spouse, children, or grandchildren caused by the shareholders death shall be excepted from this provision. It • Section 10.03 Application for Assignment A condition of an assignment shall be TENANT shall file with the CITY an application to assign the leasehold prepared by the prospective assignee. Concurrently with filing the application, TENANT shall pay a fee in cash or certified or cashier's check to enable CITY adequately to investigate the proposed assignee's qualifications as a permitted assignee. CITY shall not be required to account for the use of the sum paid. If the proposed assignee's net worth on the date of assignment is not sufficient to reasonably guarantee successful operation of the leased premises, CITY may require TENANT to guarantee such assignee's obligations hereunder for such period as CITY deems advisable. Net worth shall mean the amount by which the total of all assets shall exceed the total of all liabilities as determined in accordance with general accepted accounting principles as approved by CITY'S auditor, or other authorized representative or agent. Section 10.04 Probate Transfer or Assignment Nothing herein contained will prevent the transfer of this lease by will, or by operation of law under the intestacy provisions of the California Code as it may from time to time be amended. Probate sale of the leasehold interest will not be permitted without the consent of the CITY, evidenced by resolution, first had and obtained. Section 10.05 No Sublease Without CITrS Consent TENANT shall not sub -lease the whole nor any part of the lease premises, or suffer any other person (the agents and employees of TENANT excepted) to occupy or use the leased • premises, or any portion thereof, without the written consent of CITY evidenced by resolution first had and obtained. A consent to one subletting, occupation, or use by another person shall not be deemed to be a consent to any subsequent subletting, occupation, or use by another person. Any such subletting without CITY'S written consent shall be void, and shall at CITY'S option, terminate this lease. City shall not unreasonably nor arbitrarily withhold its consent to one who is qualified and financially reliable. Section 10.06 Term of Sublease In no event shall the term of any sublease extend beyond the term of this master lease. Termination of this lease prior to the expiration of this lease term shall also terminate any and all subleases, provided, however, that CITY may, at CITY'S option by mailing written notice to a subtenant, allow any subtenant to attom to CITY and continue his or her occupancy on said premises as a TENANT of CITY. Section 10.07 Sub Tenant Subiect to Lease Terns Any and all subleases shall be expressly made subject to all the terms, covenants, and conditions of this lease. A breach of the terms of this lease by a sub -tenant or sub-lessec shall constitute a breach on the pan of TENANT and shall subject both the sub -tenant and TENANT to all the remedies provided to CITY herein and by law. Failure to report and pay the agreed percentage of gross sales as provided herein by any sub -tenant shall constitute a breach of this lease. TENANT hereby agrees to and does guarantee payment of such percentage rentals due by a subtenant under the terms of this lease. • Section 10.08 Consent Form Agreement Prior to any consent by CITY to any sub -lease hereof, TENANT shall cause to be executed between TENANT and any sub -lessee an agreement making the CITY of Morro Bay a third party beneficiary, in a form acceptable to CITY, whereby the sub -lessee agrees to be bound by all of the terms, covenants and conditions of this lease. Further, it is agreed by TENANT that 17 • any default by the sub -lessee of any of the terms, covenants and conditions of the master lease shall be deemed to be violations by TENANT of the master lease and that all remedies of CITY for such violation, including termination of the master lease, shall immediately be enforceable by CITY against TENANT. Further, it is agreed that TENANT must apply any and all monies received from any sub -tenant first to the payment of obligations of the sub -TENANT to CITY. Section 10.09 TENANT Remains Liable Prior to approval by CITY to any sub -lease hereof, TENANT shall agree to be primarily and jointly and severally liable to CITY for all obligations due CITY by any sub -lessee, including the payment of rents, and TENANT shall agree that CITY may proceed directly against TENANT for any obligation owing CITY by the sub -lessee. Section 10.10 Exception forBoatslins. Motels Notwithstanding any provisions herein to the contrary, the terms "assignment," "subletting," 'occupation," or "use," shall not be construed or interpreted to mean or include the temporary, short term renting or leasing of boat slips, motel, hotel, or apartment accommodations on the premises. Article 11 DEFAULT AND TERMINATION Section 11.01 Abandonment by TENANT Should TENANT breach this lease and abandon said premises prior to the natural expiration of the term of this lease, CITY may continue this lease in effect by not terminating • TENANTS right to possession of said premises, in which event CITY shall be entitled to enforce all CITY'S rights and remedies under this lease including the right to recover the rent specified in this lease as it becomes due under this lease. Section 11.02 Termination for Breach by TENANT All covenants and agreements contained in this lease are declared to be conditions to this lease and to the term hereby demise to TENANT. Should TENANT default in the performance of any covenant, condition, or agreement contained in this lease and the default not be cured within thirty (30) days after written notice of the default is served on TENANT by CITY, then CITY may terminate this lease immediately, and that in the event of such termination, TENANT shall have no further rights hereunder and TENANT shall thereupon forthwith remove from said premises and shall have no further right or claim thereto and CITY shallimmediatelythereupon have the right to re-enter and take possession of the leased premises subject to appropriate legal process. Section 11.03 Termination for Failure to Pav Rent If any default be made in the payment of rental as herein provided and such default shall not be cured within three (3) days after written notice thereof, CITY shall have the option to immediately terminate this lease; and that in the event of such termination, TENANT shall have no further right or claim thereto and CITY shall immediately thereupon have the right to re-enter and take possession of the leased premises subject to appropriate legal process. Section 11.04 Benerrciary Mav Cure Default • CITY shall afford the beneficiary in any security instrument of record with CITY on the demise premises the right to cure any default by TENANT of the covenants, conditions, or agreements hereof, within the period hereinabove mentioned after written notice thereof, which said period shall be computed from the date said notice is mailed by the CITY to said beneficiary, by certified mail. 18 • Section 11.05 Attorney Fees for Breach not Resulting in Court Action In the event the CITY finds it necessary to retain an attorney in connection with the default by the TENANT or enforcement of any of the terms, conditions, and covenants of this lease, even though not resulting in an action in court, TENANT shall pay reasonable attorney's fees as reimbursement to CITY. Non-payment of attomeys' fees by TENANT within (3) days of written notice shall give rise to an independent legal action by CITY to collect same. If CITY is successful in such legal action CITY shall also be entitled to attorney fees and costs for the collection action. ' Section 11.06 Damages for Breach Should TENANT default in the performance of any covenant, condition or agreement contained in this lease and the default be incurable or not be cured within the time period set forth hereinabove, then CITY may terminate this lease and: (1) Bring an action to recover from TENANT: (a) The worth at the time of award of the unpaid rent which had been earned at the time of termination of the lease; (b) The worth at the time of award of the amount by which the unpaid rent which would have been earned after termination of the lease until the time of award exceeds the amount of rental loss that TENANT proves could have been reasonably avoided; (c) The worth at the time of award of the amount by which the unpaid rent for the balance of the term after the time of award exceeds the amount of rental loss that TENANT proves could be reasonably avoided; and • (d) Any other amount necessary to compensate CITY for all detriment proximately caused by TENANT'S failure to perform his obligations under this lease; and (2) Bring an action, in addition to or in lieu of the action described in subparagraph (1) of this section, to re-enter and regain possession of said premises in the manner provided by the laws of unlawful detainer of the State of California then in effect. Section 11.07 Cumulative Remedies The remedies given to CITY in the Article shall not be exclusive but shall be cumulative with and in addition to all remedies now or hereafter allowed by law and elsewhere provided in this lease. Section 11.08 Waiver of Breach The waiver by CITY of any breach by TENANT of any of the provisions of this lease shall not constitute a continuing waiver or a waiver of any subsequent breach by TENANT either of the same or a different provision of this lease. Section 11.09 Surrender of Premises On expiration or sooner termination of this lease, TENANT shall surrender said premises, all improvements in or on said premises, and all facilities in any way appertaining to said premises, to CITY in as good, safe, and clean condition as practicable, reasonable wear and tear excepted. Article 12 MISCELLANEOUS • Section 12.01 Attorney's Fees Should any litigation be commenced between the parties to this lease concerning said premises, this lease, or the rights and duties of either in relation thereto, the party, CITY or TENANT, prevailing in such litigation shall be entitled, in addition to such other relief as may be 19 • granted in the litigation, to a reasonable sum as and for his attorney's fees in such litigation which shall be determined by the court in such litigation or in a separate action brought for that purpose. Section 12.02 Notices Any and all notice or demands by or from CITY to TENANT, or TENANT to CITY, shall be in writing. They shall be served either personally, or by registered or certified mail. Any notice or demand to CITY may be given to the CITY Clerk of the CITY of Morro Bay, City Hall, Morro Bay, California. Any notice or degtand to TENANT may be given at: Harbor Hut, Inc. 214 Beach ST Mono Bay CA 93442 Such addresses may be changed by written notice by either party to the other party. Section 12.03 Goveming Law This lease, and all matters relating to this lease, shall be governed by the laws of the State of California in force at the time any need for interpretation of this lease or any decision or holding concerning this lease arises. Section 12.04 Binding on Heirs and Successors Subject to the provisions herein relating to assignment and subletting each and all of the terms, conditions, and agreements herein contained shall be binding upon and inure to the benefit of the heirs, executors, administrators, successors, and permitted assigns of any and all of the • parties hereto; and all of the parties hereto shall be jointly and severally liable hereunder. Section 12.05 Partial Invalidity Should any provision of this lease be held by a court of competent jurisdiction to be either invalid, void, or unenforceable, the remaining provisions of this lease shall remain in full force and effect unimpaired by the holding. Section 12.06 Sole and Only Agreement This instrument constitutes the sole and only agreement between CITY and TENANT respecting said premises, the leasing of said premises to TENANT, or the lease terms herein specified and correctly sets forth the obligation of CITY and TENANT to each other as of its date. Any agreements or representations respecting said premises, their leasing to TENANT by CITY, or any other matter discussed in this lease not expressly set forth in this instrument are null and void. No modification, amendment, or alteration of this lease shall be valid unless it is in writing and signed by both parties. Section 12.07 Modification This agreement shall not be modified except pursuant to a written agreement executed by the MAYOR and CITY CLERK pursuant to prior CITY Council approval. Notwithstanding CITY Council approval, no agreement shall become effective until such agreement is in fact executed by the MAYOR and CITY CLERK. TENANT understands that this agreement may not be modified by oral statements by any person representing the CITY including the MAYOR and CITY CLERK. TENANT specifically agrees not to rely on oral statements, purported oral . waivers, or purposed oral modifications and agrees not to rely upon purported written modifications unless they meet the requirements of this paragraph and are approved in writing pursuant to formal City Council action and a subsequent written modification signed by the MAYOR and CITY CLERK. 20 • Section 12.08 Time of Essence Time is expressly declared to be the essence of this lease. Section 12.09 Memorandum of Lease for Recording Neither party, CITY or TENANT, shall record this lease without the written consent of the other. However, CITY and TENANT shall, at the request of either at any time during the term of this lease, execute a memorandum or "short form" of this lease for purposes of, and in a form suitable for, being recorded. The memorandum or "short form" of this lease shall describe the parties, CITY and TENANT, set forth a description of the leased premises, specify the term of this lease, and shall incorporate this lease by reference. Section 12.10 Termination for Nuclear Disaster This lease may be terminated by TENANT by ten day written notice in the event of a nuclear explosion or leak of substantial nature of the Diablo Nuclear Power Plant or the declaration of war by the United States of America. Article 13 SPECIAL PROVISIONS PECULIAR TO THIS LEASE SITE The following provisions apply to this lease site only: Section 13.01 Termination of Prior Lease CITY and TENANT mutually agree that the leases for Lease Site 122-123/122 W-123 W and the Extension of Lease Site 122 W-123 W between CITY and TENANT dated January 1, 1962 and August 23, 1967 respectively are hereby terminated and dissolved, effective at • midnight on December 31, 1997 in consideration of execution of this new lease agreement. Section 13.02 Repairs to be Completed No Later Than December 1. 2000 TENANT agrees to complete the following repairs by December 1, 2000. A. Replacement of entire roof and ceiling of the Harbor Hut buildings. B. New flooring or carpet in service areas and new window covering/shades on all windows. C. New or renovated sprinkler system for entire restaurant and kitchen area in Harbor Hut and Lil Hut buildings. D. Registered Engineer's report on revetment conditions with assessment of the suitability of the revetment as it relates to the building improvements on the site. The Engineer's report will recommend any necessary repairs or improvements to insure that the buildings and revetment are safe and in proper condition and repair. TENANT will acquire any necessary permits and complete, at TENANT's sole cost, any recommended repairs no later than December 1, 2000. TENANT and CITY agree that failure to complete any or all of the above actions prior to the dates indicated will be a default of this agreement subject to Section 11 hereof. SECTION 13.03 Option to Extend this Lease Agreement TENANT and CITY desire that TENANT construct public access improvements on the property currently owned by CITY and PG&E along the revetment between Lease Site I OW- 113W and Lease Site 122-123/122W-123W. • In consideration of TENANT acquiring all necessary permits and approvals and constructing said improvements at TENANT's cost, TENANT shall have the option to extend this agreement for either an additional five or ten years under the following conditions: Within five years of commencement of this agreement TENANT shall submit design and engineering information to the CITY to construct an 8 foot wide minimum boardwalk, handrail and revetment project between Great American Fish Company and the Harbor Hut Restaurant • E • 21 and shall acquire any and all necessary permits including, but not limited to, local (Conditional Use Permit, building permit etc.), state (Coastal Commission etc.) and federal (U.S. Army Corps of Engineers, etc.) and the then current property owners. After acquiring said permits and approvals, if TENANT constructs the permitted improvements at TENANT's sole cost and expense and in accordance with the permits no later than December 1, 2005, TENANT shall have the right to extend this agreement by giving CITY written notice and a copy of the signed final building permit for an additional term of: Five (5) years if the cost of constructing the improvements as verified by actual materials and contractors payments are between $50,000 and $100,000 or, Ten (10) years if the cost of constructing the improvements as verified by actual material and contractors payments is in excess of $100,000. This option to extend is conditional on TENANT completing the contemplated improvements for either an additional five year term or an additional 10 year term depending on the final cost of construction. In no case shall this Section 13.03 be interpreted to allow for extension of the lease beyond 10 years after the termination date hereof TENANT and CITY agree that if, for any reason, either party determines it is not possible to obtain the necessary permits and approvals, or if TENANT choses not to proceed with constructing the improvements under the dates shown, then there shall be no option for TENANT to extend this lease beyond the termination date hereof. Section 13.04 Redevelopment Plans CITY anticipates completion of an overall redevelopment plan for the CITY -owned areas North of Beach Street during the term of this agreement. If any such plan, approved by the CITY, includes reorientation of water area berthing facilities either on, or adjacent to, the leased SITE, CITY shall have the right, at its sole option, to require TENANT to redevelop the existing water area berthing facilities in conformance with the approved plans at TENANT's sole cost and expense provided that CITY and TENANT shall then negotiate a 5 to 10 year extension to the term of this agreement in consideration of TENANT's investment in improvements to the SITE. If CITY and TENANT fail to reach a mutually agreeable extension term (between 5 and ten years) for this agreement, then neith er party shall be obligated to proceed unilaterally with the redevelopment project or to extend the term of this agreement other than as outlined in Sections 13.02 and 13.03 herein. EXECUTED on 14, at N,O0/6 iMM+ 0 U County, California. CITY OF MORRO BAY CATHY NOVA MAYOR ATTEST: BRIDGE AVER, CITY CLERK APPROVED AS TO FORM: DAVID HUNT APPROVED AS TO FORM: k42bmt ROBERT E. HLTRBLtT • EXHIBIT B PERCENTAGE OF GROSS SALES RENT FOR CITY LAND AND WATER LEASE 122-123/123W-123W AND EXTENSION OF 122W-123W FROM JULY 1,1999 THROUGH JUNE 30, 2002 HARBOR HUT RESTAURANT: - FOOD 3% BAR 10% LIL HUT: TAKE-OUT FOOD: 3% TIGER'S FOLLY H: FOOD & BAR SALES 5% TICKET SALES 0% RETAIL SALES & SERVICES: 5% OTHER SALES NOT LISTED SPECIFICALLY: 10% FROM DULY 1, 2002 THROUGH TERMINATION DATE HARBOR HUT RESTAURANT: - FOOD 3% BAR -10% LIL HUT: TAKE-OUT FOOD: 5% TIGER'S FOLLY II: FOOD & BAR SALES 5% TICKET SALES 5% RETAIL SALES & SERVICES: 5% OTHER SALES NOT LISTED SPECIFICALLY: 10% J KI lui • Y • BH A G � N i 9 2a.ao ary .t' S3' 45' w ♦al 128T ��' { 126 L La o W P.G. B E. a /28oai Q IJW a /560 IT` Y600 FT` y 27 2 O D/ ivi•to'2P SCO FTa —•MN✓-- asa rze w rz�w 1 t26w ! r26�-jam_ $ Jam_ rzz 8 �µ`_3Be0 FT'_ 25_D Fral uSO FT iI lSac l'Ta JOW F>" p 2250 Ara of ._ O I ` zero fr• I /dos o I y. ss.ee zsao 25.40 Oaoe /` Iagxo C3AY EXHIBIT B PERCENTAGE OF GROSS SALES RENT FOR CITY LAND AND WATER LEASE 122-123/123W-123W AND EXTENSION OF 122W-123W FROM JULY 1,1999 THROUGH JUNE 30, 2002 HARBOR HUT RESTAURANT: - FOOD 3% BAR 10% LH. HUT: TAKE-OUT FOOD: 4 3% TIGER'S FOLLY H: FOOD & BAR SALES 5% TICKET SALES 0% RETAIL SALES & SERVICES: 5% OTHER SALES NOT LISTED SPECIFICALLY: 10% FROM JULY 1, 2002 THROUGH TERMINATION DATE HARBOR HUT RESTAURANT: - FOOD 3% BAR 10% LIL HUT: TAKE-OUT FOOD: 5% TIGER'S FOLLY H: FOOD & BAR SALES 5% TICKET SALES 5% RETAIL SALES & SERVICES: 5% OTHER SALES NOT LISTED SPECIFICALLY: 10% • RESOLUTION NO. 45-98 • RESOLUTION OF INTENTION TO APPROVE AN AMENDMENT TO CONTRACT BETWEEN THE BOARD OF ADMINISTRATION OF THE PUBLIC EMPLOYEES' RETIREMENT SYSTEM AND THE CITY COUNCIL OF THE CITY OF MORRO BAY WHEREAS; the Public Employees' Retirement Law permits the participation of public agencies and their employees in the Public Employees' Retirement System by the execution of a contract, and sets forth the procedure by which said public agencies may elect to subject themselves and their employees to amendments to said Law; and WHEREAS, one of the steps in the procedures to amend this contract is the adoption by the governing body of the public agency of a resolution giving notice of its intention to approve an amendment to said contract, which resolution shall contain a summary of the change proposed in said contract; and • WHEREAS, the following is a statement of the proposed change: To provide Section 21024 (Military Service Credit as Public Service) for local police members only. NOW, THEREFORE, BE IT RESOLVED that the governing body of the above agency does hereby give notice of intention to approve an amendment to the contract between said public agency and the Board of Administration of the Public Employees' Retirement System, a copy of said amendment being attached hereto, as an "Exhibit" and by this reference made a part hereof. By 2 rwv� Presiding Officer Cathy Novak Mayor Title May 11, 1998 • Date adopted and approved (Amendment) CON-302 (Rev. 4/96) � AMENDMENT TO CONTRACT EXHIBIT BETWEEN THE BOARD OF ADMINISTRATION OF THE PUBLIC EMPLOYEES' RETIREMENT SYSTEM AND THE CITY COUNCIL OF THE CITY OF MORRO BAY The Board of Administration, Public Employees' Retirement System, hereinafter referred to as Board, and the governing body of above public agency, hereinafter referred to as Public Agency, having entered into a contract effective July 1, 1965, and witnessed June 1, 1965, and as amended effective August 15, 1981, November 19, 1983, January 7, 1989, June 24, 1989, June 22, 1991 and June 10, 1994 which provides for participation of Public Agency in said System, Board and Public Agency hereby agree as follows: A. Paragraphs 1 through 13 are hereby stricken from said contract as executed effective June 10, 1994, and hereby replaced by the following paragraphs numbered 1 through 13 inclusive: 1. All words and terms used herein which are defined in the Public Employees' Retirement Law • shall have the meaning as defined therein unless otherwise specifically provided. "Normal retirement age" shall mean age 50 for local miscellaneous members and age 50 for local safety members. 2. Public Agency shall participate in the Public Employees' Retirement System from and after July 1, 1965 making its employees as hereinafter provided, members of said System subject to all provisions of the Public Employees' Retirement Law except such as apply only on election of a contracting agency and are not provided for herein and to all amendments to said Law hereafter enacted except those, which by express provisions thereof, apply only on the election of a contracting agency. 3. Employees of Public Agency in the following classes shall become members of said Retirement System except such in each such class as are excluded by law or this agreement: a. Local Fire Fighters (herein referred to as local safety members); b. Local Police Officers (herein referred to as local safety members); C. Employees other than local safety members (herein referred to as local miscellaneous members). • 4. In addition to the classes of employees excluded from membership by said Retirement Law, the following classes of employees shall not become members of said Retirement System: a. ELECTED OFFICIALS; b. APPOINTIVE COMMISSIONS; AND RdD':12 DO ai1T SM 11aaza OWLY" • C. PERSONS COMPENSATED ON AN HOURLY BASIS. 5. This contract shall be a continuation of the benefits of the contract of the Morro Bay Fire District hereinafter referred to as "Former Agency", pursuant to Section 20508 of the Government Code, Former Agency having ceased to exist and succeeded by Public Agency on July 1, 1965. Public Agency, by this contract, assumes the accumulated contributions and assets derived therefrom and liability for prior and current service under Former Agency's contract with respect to the Former Agency's employees. Legislation repealed Section 20508, Statutes of 1949, effective January 1, 1988. 6. The percentage of final compensation to be provided for each year of credited prior and current service as a local miscellaneous member shall be determined in accordance with Section 21354 of said Retirement Law (2% at age 55 Full). 7. The percentage of final compensation to be provided for each year of credited prior and current service as a local safety member shall be determined in accordance with Section 21362 of said Retirement Law (2% at age 50 Full). 8. Public Agency elected and elects to be subject to the following optional provisions: a. Section 21573 (Third Level of 1959 Survivor Benefits) for local safety members only. • b. Section 20965 (Credit for Unused Sick Leave). C. Section 20042 (One -Year Final Compensation) for local safety members only. d. Section 21024 (Military Service Credit as Public Service), Statutes of 1976 for local police members only. 9. Public Agency, in accordance with Government Code Section 20790, ceased to be an "employer" for purposes of Section 20834 effective on August 15, 1981. Accumulated contributions of Public Agency shall be fixed and determined as provided in Government Code Section 20834, and accumulated contributions thereafter shall be held by the Board as provided in Government Code Section 20834. 10. Public Agency shall contribute to said Retirement System the contributions determined by actuarial valuations of prior and future service liability with respect to local miscellaneous members and local safety members of said Retirement System. 11. Public Agency shall also contribute to said Retirement System as follows: a. Per covered member, $0 per month on account of the liability for the 1959 Survivor Benefits provided under Section 21573 of said Retirement Law. (Subject to annual change.) In addition, all assets and liabilities of Public Agency and its employees shall be pooled in a single account, based on term insurance rates, for survivors of all local safety members. • b. A reasonable amount, as fixed by the Board, payable in one installment within 60 days of date of contract to cover the costs of administering said System as it affects the employees of Public Agency, not including the costs of special valuations or of the periodic investigation and valuations required by law. C. A reasonable amount, as fixed by the Board, payable in one installment as the occasions arise, to cover the costs of special valuations on account of employees of Public Agency, and costs of the periodic investigation and valuations required by law. 12. Contributions required of Public Agency and its employees shall be subject to adjustment by Board on account of amendments to the Public Employees' Retirement Law, and on account of the experience under the Retirement System as determined by the periodic investigation and valuation required by said Retirement Law. 13. Contributions required of Public Agency and its employees shall be paid by Public Agency to the Retirement System within fifteen days after the end of the period to which said contributions refer or as may be prescribed by Board regulation. If more or less than the correct amount of contributions is paid for any period, proper adjustment shall be made in connection with subsequent remittances. Adjustments on account of errors in contributions required of any employee may be made by direct payments between the employee and the Board. • B. This amendment shall be effective on the BOARD OF ADMIAIIS7 PUBLIC EMPLOYEES' BY i+ -tom. SYSTEM KENNETH W. MAIO©N, CHIEF ACTUARIAL & E OYER SERVICES DIVISION PUBLIC EMPLOeS' RETIREMENT SYSTEM e'tyti AMENDMENT • PERS-CON-702A (Rev. 8\96) day of 119, CITY COUNCIL OF THE CITY OF MORRO BAY PRESIDING OFFICER% N a`x Witness Date 41V Attest: �4 Clerk CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM Y Actuarial and Employer Services Division Public Agency Contract Services P.O. Box 942709 Sacramento, CA 94229-2709 (916) 326-3420 CERTIFICATION OF GOVERNING BODY'S ACTION I hereby certify that the foregoing is a true and correct copy of a Resolution adopted by the City Council (governing body) City of Morro Bay • on May 11, 1998 (date) u (public agency) Clerk/Secre Bridgett Bauer City Clerk Title of the PERS-CON-12 (rev. 1/96) • RESOLUTION NO.44-98 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA SUPPORTING FORMATION OF A COMMUNITY VOLUNTEER "FRIENDS OF 54" FUNDING PROGRAM FOR TAPING OF GOVERNMENT MEETINGS AND COMMUNITY EVENTS AS APPROVED BY CITY COUNCIL POLICY GUIDELINES THE CITY COUNCIL City of Morro Bay, California WHEREAS, the City of Morro Bay has approved a video production contract for taping City Council meetings and channel management; and WHEREAS, the City Council has acknowledged that it is desirable to tape and broadcast all other Brown Act meetings and those special events designated by City Council policy; and WHEREAS, there are not sufficient funds in the City budget to allocate for • taping meetings and events other than City Council meetings; and WHEREAS, in order to attract and retain volunteer crew, it is helpful to have funding sources available for their services. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Morro Bay, California, supports the establishment of a "Friends of 54" community volunteer fund-raising program for collecting donations and coordinating fund-raising activities, such funds to be used for the sole purpose of paying for taping meetings and events, other than City Council meetings, as designated by City Council policy for the government access channel. PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting thereof held on the 27th day of April, 1998on the following vote: AYES: Anderson, Elliott, Peirce, Peters, Novak NOES: None ABSENT: None CATHY NOV I Mayor ATTEST: • bA.W V1/ BRIDGE BAUER, City Clerk • RESOLUTION NO.43-98 APPROVAL OF SUBLEASE FOR A PORTION OF LEASE SITE 128 BETWEEN LETA MOORES AND GENGRAND FOOD COMPANY, DBA MARISCOS THE CITY COUNCIL City of Morro Bay, California WHEREAS, the City of Morro Bay is the lessor of certain property on the Morro Bay waterfront described as Lease Site 128/128W; and, WHEREAS, Leta Moores is the current lessee of said lease site and Sharon Moore, dba Virg's Fish'n has power of attorney for Leta Moores; and, WHEREAS, Sharon Moore on behalf of Leta Moores has requested that a portion of Lease Site 128 be subleased to Gengrand Food Company, dba Mariscos; and, WHEREAS, the lessee is in compliance with terms of the lease agreement; and, WHEREAS, the lease agreement requires approval of any sublease; and, NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay that the City Council consents to the sublease of a portion of Lease Site 128 between Leta • Moores and Gengrand Food Company, dba Maricsos. This approval is conditional on receipt of the proposed sublease and any other approvals required for the proposed operation, including but not limited to business license and planning/land use permits. BE IT FURTHER RESOLVED, the Mayor is hereby authorized to execute the consent to sublease document. PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting held thereof on the 271h day of April 1998, by the following vote: AYES: Anderson, Elliott, Peirce, Peters, Novak NOES: None ABSENT: None CATHY NW , MAYOR \&� • BRIDGET BAUER, CITY CLERK r;+.r of AAnrrn Rav HARBOR DEPARTMENT • 1275 EMBARCADERO, MORRO BAY, CALIFORNIA 93442 • 805-772-6254 APPLICATION APPLICATION FOR AMENDMENT OR ASSIGNMENT OF CITY LEASE AGREEMENTS OR APPROVAL OF SUBLEASES TO CITY LEASE AGREEMENT To be completed and returned to the Harbor Office for processing. LEASE SITE #: G Lessee (please print) •iviaiiing Address City, State Zip APPLICATION FEE:,,, C.P .,� Cc - �� usess Name ft S21- bay Tclephone REQUEST: Briefly describe the specific nature of the approval requested. 1 Ap 1' ants ' t . ture l9iml — ' dY 40 SEE REVERSE 10 The City of Morro Bay is dedicated to the preservation and enhancement of our quality of life, and strives to provide a level of municipal service and safety consistent with and responsive to the needs of the public. 1. CHECKLIST FOR SUBMITTAL REQUIREMENTS • AMENDMENT TO LEASE $266.76�1-Mlication Fee Proposed Lease Amendment Document Statement of purpose for Review by Review as Follows: 2. ASSIGNMENT OF LEASE $266.76 ption Fee Public Works Departments Statement of qualifications, erience and proposed Financial report, approved by City Fir ` iiractor Lessee current) compliance with all terms documents acceptable to the City Attorney's 3. SUBLEASE APPROVAL $266.76 Application Fee potential assignee lease agreement • $51.30 Application Fee (Administrative Approval if permitted by the terms of the current lease) Lessee currently in compliance with all terms of existing lease agreement — Statement of qualifications, experience and proposed operation from potential sublessees Consent to Sublease Agreement and sublease documents completely filled out and signed u W ar�scos rnoc�na s-oc�food Eric Boyd 784 Ramona Avenue Los Osos, CA 93402 (805) 528-0369 April 14, 1998 Harbor Department 1275 Embarcadero Morro Bay, CA 93442 To whom it may concern: My partner and I are both long time residents of the central coast. We both have had many years of experience in retail services to the public. We would like the opportunity to open a fish market at 1219 Embarcadero. We plan to name this fish market Marisco's. This translates to seafood in the Spanish language. This market would follow in the foot steps of the previous occupant "Finicky Fish" selling an array of fresh seafood and prepared salads. We are aware of the need to support local industry; in this case, the commercial fisherman. We plan to work in conjunction with local organizations for the benefit of the community of Morro Bay. We are looking forward to the opportunity to open a business on the Embarcadero in this landmark building and actively contribute to the local industry. We look forward to the opportunity to establish a working relationship with you in the near future. Sincerely, Eric J. Boyd cc Morro Bay City Council I* E CONSENT TO SUBLEASE AGREEMENT THIS CONSENT TO SUBLEASE AGREEMENT ig entered 'nto this -/6—day of 1998, by and between hereinafter referred to as TENANT, and , dba, hereinafter referred o as SUBTENANT and the City of Mono Bay, California, hereinafter referred to as CITY. RECITALS WHEREAS, a Master Lease was executed on January 1, 1973 and, WHEREAS, TENANT desires to assign a sublease for a portion of the premises to SUBTENANT. NOW, THEREFORE, IT IS AGREED AS FOLLOWS: 1. TENANT and SUBTENANT jointly and severally guaranty that TENANT will pay all of the sums required of TENANT and SUBTENANT under the terms of the Master Lease dated January 1, 1973 hereinafter known as "Master Lease". In the event TENANT fails to make such payment, SUBTENANT agrees to promptly make such payment to CITY for TENANT. Failure to pay the rent shall constitute a violation of the Master Lease and CITY shall, after three (3) days written notice -to TENANT, have the following options: (a) CITY may elect to pursue all legal remedies against TENANT alone or against both • TENANT and SUBTENANT or against SUBTENANT alone. CITY S election to pursue one instead of both of the parties shall not preclude a later action against the other party to recover any amounts not paid and both TENANT and SUBTENANT agree.that they are to be jointly and severally liable for any breach by the SUBTENANT. (b) CITY shall have all other legal remedies provided for in the lease and allowed by law, including the right to bring an action for unlawful detainer against SUBTENANT, TENANT or both for non-payment of rent by TENANT of SUBTENANTS portion of rent due to CITY. 2. SUBTENANT specifically agrees to. comply with each and all of the terms and conditions of the Master Lease. TENANT guarantees SUBTENANTS compliance with each and all of the terms and conditions of the Master Lease, and all of the parties agree that a violation by SUBTENANT of the terms of the Master Lease shall constitute a violation of the Master Lease by TENANT. TENANT agrees to take whatever action is required to secure SUBTENANTS compliance with each and all of the terms of the Master Lease, and agrees to indemnify CITY, as Landlord, from any and all claims, loss, cost or expense resulting from SUBTENANTS failure to comply with the terms of the Master Lease. A. A. e,J 3. The term of the sublease attached as Exhibit A shall be � years commencing upon execution of said lease and this consent to sublease, provided, ed, however, that the term of the sublease shall not in any event exceed the terms of the Master Lease and said Sublease shall, in all events, terminate upon termination of the Master Lease for any reasod including, but not limited to, a termination which occurs as a result of court judgment. Page I of 3 / 4. Pursuant to the provision in the Master Lease requiring TENANT to pay rental based on percentage of gross sales, SUBTENANT agrees to and shall keep full, complete, and accurate • records, and books of account inaccordance with accepted accounting practices as outlined in Exhibit B showing the total amount of gross sales, as defined in the Master Lease, made each calendar month in, on or from the subleased premises. SUBTENANT shall keep said records and books of account within San Luis Obispo County and shall notify CITY in advance of their location at all times. Said records, books of account and all cash register tapes, including any sales tax reports that SUBTENANT may be required to furnish any government or governmental agency shall at all reasonable times be open to the inspection of TENANT, CITY, CITY'S auditor, or other authorized representative or agent of TENANT or CITY. 5. SUBTENANT acknowledges its duty to secure a copy of the Master Lease and each and all of the amendments to that Master Lease from TENANT and to review each and all of the terms and SUBTENANT agrees to comply with each and all of the terms and conditions of those documents. SUBTENANT acknowledges and agrees that this duty exists between SUBTENANT and TENANT and not between SUBTENANT and the CITY. use by PUBTENANT is as follows: Percentage of Gross Rental Applicable to Permitted Use: Said designated use shall not be changed without the prior written consent of CITY. SUBTENANT acknowledges that the percentage of gross payment required for the proposed use under the terms of the Master Lease is as set forth hereinabove. SUBTENANT agrees that any use by SUBTENANT of the subleased premises for a purpose other than that specified in this paragraph, whether or not permitted under the terms of the Master Lease, shall constitute an • unauthorized use. The location and size of the proposed use shall not be altered without the prior written consent of the CITY. Specifically, and in addition to any other terms and provisions of the lease, all parties agree that if SUBTENANT makes a use of the subleased premises which is not included within or permitted under the terms of the Master Lease, TENANT shall be liable for and shall pay to CITY, 10% of the gross revenue from such unpermitted use. 7. SUBTENANT shall not alter or improve the premises or any part thereof without first obtaining the prior written consent of CITY. 8. SUBTENANT agrees to submit a statement of previous business experience and agrees to submit current personal and business financial statements upon request and further agrees to submit such documents as part of the CITY's consideration of the Consent to Sublease Agreement. SUBTENANT shall not assign, mortgage, or encumber the subleased premises in whole or in part without the prior written consent of CITY. 9. Unless SUBTENANT is included as an additional insured under the terms of TENANT"s liability insurance, SUBTENANT agrees to maintain adequate liability insurance in the manner and form required under the Master Lease in an amount of not less than $1,000,000 per occurrence and agrees to name the CITY OF MORRO BAY as an additional primary insured without offset against the CITY's insurance. SUBTENANT agrees to provide the certificates of insurance and copies of the actual insurance policies to the CITY as required under the Master Lease and otherwise comply with the insurance requirements set forth in the Master Lease. CITY reserves the right to require reasonable increases in the liability insurance coverage from time to time. • Page 2 of 3 10. SUBTENANT and TENANT agree to indemnify and save CITY free and harmless • from and against any and all claims, including reasonable attorney's fees and court costs arising from SUBTENANT s failure to comply with any of the terms of this Consent and Sublease Agreement. • 11. The Sublease Agreement and all of its terms, provisions and covenants are expressly conditioned upon first obtaining the consent of the City Council of the CITY OF MORRO BAY, evidenced by a resolution passed and adopted by said City Council, to the execution of the Sublease. This Agreement cannot be modified except by a written document approved by the .City Council of the CITY OF MORRO BAY and signed by the Mayor and Clerk. A waiver of any of the conditions or terms of this Consent or of the Master Lease shall not constitute a waiver of any future breach of any terms or conditions of this Consent or the Master Lease. 12. Attached as Exhibit A is a true and correct form of the proposed Sublease between TENANT and SUBTENANT. To the extent that the terms of such proposed Sublease are inconsistent with the terms of this Agreement or Master Lease with the CITY OF MORRO BAY, this Agreement or Master Lease shall supersede and be the controlling document. To the extent that this Consent to Sublease Agreement is inconsistent with the terms of the Master Lease, the Master Lease shall supersede and be the controlling document. IN WITNESS WHEREOF, the parties hereto have executed this Consent to Sublease Agreement as of the day and year fast above written at Morro Bay, California. ATTEST: '1JOlatA.�li Bridgett ElAuer, City Clerk CITY OF MORRO BAY A Municipal Corporation By: ,�- Cathy No c, Mayor SUBTENANT: is Bo President, Gengrand Food Co. TENANT: By: i 7" A!�? Page 3 of 3 • RESOLUTION NO. 42-98 APPROVAL OF LEASE AGREEMENT WITH THE MORRO BAY COMMERCIAL FISHERMAN'S ORGANIZATION FOR OPERATION OF THE GEAR STORAGE AREA THE CITY COUNCIL City of Morro Bay, California WHEREAS, the City of Morro Bay, acted as lead agency with the Morro Bay Commercial Fishermans Organization (MBCFO), in a grant application from the California Coastal Conservancy for construction of a gear storage area in 1992; and, WHEREAS, construction of the Gear Storage Area was completed in 1994; and, WHEREAS, a lease agreement between the City and Pacific Gas and Electric for use of the Gear Storage Area was executed on August 23, 1993; and, WHEREAS, the City and MBCFO entered into a sublease for a portion of the Gear Storage Area which will allowed MBCFO to manage the Gear Storage Area; and, WHEREAS, the City and PG&E terminated their lease agreement in favor of an easement for continued use of the property; and, •WHEREAS, the City and MBCFO wish to enter into a lease agreement to reflect the new agreement between the City and PG&E so that the MBCFO can continue operation of the Gear Storage Area. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay that the lease agreement between the City of Morro Bay and the Morro Bay Commercial Fisherman's Organization is hereby approved. BE IT FURTHER RESOLVED that the Mayor is hereby authorized to execute the lease agreement for the City of Morro Bay. PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting held thereof on the 271" day of April, 1998, by the following vote: AYES: Anderson, Elliott, Peirce, Peters, Novak NOES: None ABSENT: None ✓� c- -4 � CATHY NOVA , MAYOR BRIDGETT thUER, CITY CLERK LEASE AGREEMENT • This Lease Agreement ("Lease") is made as of this IL day of ��/'�� / , 1998 by and between the CITY OF MORRO BAY ("City") and MORRO BAY COMMERCIAL FISHERMAN'S ORGANIZATION Inc., a California non-profit corporation ("Lessee"). WHEREAS, the California Coastal Conservancy granted the City funds to construct a Fisherman's Gear Storage area in Morro Bay as outlined in Agreement #91-055 dated January 22, 1992; and WHEREAS, Pacific Gas and Electric (PG&E) endorsed the project and executed a lease agreement dated August 31, 1993 with the City for the project to be constructed on a portion of the Morro Bay Power Plant property; and WHEREAS, City constructed building improvements on the project site with Coastal Conservancy funds and City funds; and WHEREAS, City and Pacific Gas and Electric (PG&E) subsequently entered into an easement agreement dated , 1998 for use of the project site and terminated said lease agreement dated August 31, 1993 by mutual agreement; and WHEREAS, City and Lessee executed a Sublease Agreement dated May 23, 1994 for Lessee to use a portion of the project site; and WHEREAS, the sublease dated May 23, 1994 provided that if the lease agreement between PG&E and • the City were terminated for any reason, then the sublease agreement would terminate; and WHEREAS, City and Lessee now desire to enter into a new lease agreement for a portion of the project site to replace the sublease agreement dated May 23, 1994 so that Lessee may continue to provide a low cost and convenient gear storage area for commercial fishermen. NOW THEREFORE, the parties hereto agree as follows: 1. LEASED AREA, CONDITION OF SITE The Leased area, hereinafter called "Site", shall be that portion of the Gear Storage Area Project outlined in yellow as shown on the attached Site Map labeled "Exhibit A" and incorporated herein by reference. City hereby leases the Site to Lessee for the Lease Term (as defined in Section 3). The Site is leased to Lessee in an "as is" condition and Lessee agrees that it has investigated the condition of the Site and the plans for construction of the Gear Storage Project on the Site and determined that said plans and the Site are suitable to the operations of Lessee. 2. MAINTENANCE, REPAIR AND MANAGEMENT OF THE SITE Lessee agrees to repair and maintain the improvements constructed on the Site and that City shall have no obligation to repair or maintain the Site except as outlined in Section 15 hereof. Lessee agrees to repair and maintain the asphalt surface, landscaping, building improvements and all other aspects of the Site in good, usable and safe condition at all times. Lessee acknowledges that safety and maintenance of the Site are a critical concern to City and property owner and agrees to cooperate with City and property •owner in conducting inspections of the Site at any reasonable time set by City or property owner and to promptly and fully comply with City's or property owner's requests for any repair or maintenance which may result from said inspections, including removal of any personal property. The Lessee shall designate one or two persons to coordinate the on -site management, maintenance, and operation responsibilities under this Lease. The Lessee shall submit the designated person's or persons' • name(s) and qualifications to the City. The Lessee shall notify the City of any change in the person or persons designated under this provision. The Lessee's designee shall actively operate and manage the Site by performing any duties which are required to operate, maintain and manage the Site in good order and condition and to avoid unfavorable impact upon the environment, ecology and aesthetics of the surrounding neighborhood, including, but not limited to, the following: a. Ensure that the Site is used only for the sole purposes of commercial fishing gear storage, and commercial fishing equipment repair. Prohibit any fiberglassing, power sanding, welding, sand blasting, grinding or any similar types of maintenance or repair or repair of motor engines, compressors or other similar types of equipment which involves the storage or use of oil, fuel or other potentially hazardous substances on the Site. b. Prohibit storage or use of potentially hazardous substances on the Site, including, but not limited to, paints, paint thinners, gasoline, solvents, resins, epoxies, tars, and petroleum distillates. C. Prohibit storage of any fish, fish products or fish by-products on the Site. d. Prohibit any alteration to or construction on the Site without express prior written approval of the City Harbor Director. e. Keep the Site and all appurtenances to it in good condition and free from vandalism and • avoidable wastage. Provide occupants with key locks for their storage units and hold a key deposit during the term of occupancy. Retain a copy of each occupant's key for their lock. Provide locks for gates on fences surrounding the Site. Provide occupants with a copy of the gate lock keys and retain a key deposit during the term of occupancy. Require each occupant of the Site to agree to sign a rental agreement. Enforce the terms of the rental agreements between the Lessee and occupants, including, but not limited to, providing termination notices to and, if necessary, initiating eviction proceedings for occupants more than one month delinquent in the payment of their rental amount or in violation of any other covenant of their rental agreement. The Lessee shall hire a bookkeeper to maintain accurate records of payment of rental amounts and submit an annual financial statement to the City in conformance with Section 19 hereof. g. Assure that occupants store and repair their gear in a safe manner. If a occupant's activities are deemed unsafe, issue a warning to the occupant with instructions on how the occupant can cure the safety problem; if, within a reasonable amount of time determined by the severity of the hazardous condition, the occupant does not correct the problem, inform the occupant in writing that the occupant is in violation of his or her rental agreement and terminate the rental agreement. If the safety problem is of a nature which could forseeably result in an immediate injury or property damage, the Lessee shall take action as necessary to minimize the risk of injury or damage. • Page 2 of /0 h. Periodically, at intervals not to exceed once a month during the term of this Lease, inspect the Site for any evidence of physical deterioration or hazardous conditions, and report such findings • to the City, including any recommendation for actions necessary to maintain the Site in good condition and order. Upon discovery of any hazardous condition which could foreseeably result in injury or property damage, the Lessee shall additionally: (a) take such action as is reasonable and necessary to minimize the risk of injury or damage, including, without limitation, the posting of warning signs, and notify the City of specific actions taken; and (b) cooperate with the City in curing any hazardous condition. 3. TERM The term of this Lease ("Lease Term") shall commence on May 1, 1998 and terminate on April 30, 2003 ("Termination Date"). 4. OPTION TO EXTEND Subject to all other terms and conditions of this Lease, Lessee shall have the option of extending the Lease Term for one (1) additional period of five (5) years. Lessee must exercise said option at least six (6) months prior to the Termination Date of this Lease by notifying the city of its intention in writing (the "Option Notice"). However, if Lessee is in default on the date of giving the Option Notice or by the passage of time will be in default, the Option Notice shall be totally ineffective. If the Lessee is in default on the date the extended term is to commence, said extended term shall not commence and the Lease shall expire at the end of the previous term. The annual rent for the option period shall be negotiated ninety (90) days prior to the Termination Date. 5. RENT • Commencing October 1, 1998, Lessee shall pay to City in lawful money of the United States of America,'a monthly rent of Two Hundred dollars ($200.00) payable in advance on the first of each month for the first year of this agreement. • Rent for the following years of this agreement shall increase at $5.00 per month each succeeding October I". For example; monthly rent for the period October 1, 1999 through September 30, 2000 shall be $205 per month, monthly rent for the period October 1, 2000 through September 30, 2001 shall be $210 per month, etc. 6. HOLDOVER Any holdover of this Lease beyond the Termination Date shall be on a month to month basis, terminable on 30 days notice by either party for any reason. Monthly rent for the holdover period shall be either Five Hundred dollars ($500.00) or twice the monthly rent for the previous 12 month period, whichever is greater. 7. RESTRICTIONS AND PERMITTED USES Lessee shall not violate or cause City to be in violation of the easement agreement between City and property owner dated , 1998 and attached as "Exhibit B". Lessee agrees that, in connection with the use and operation of the Site, Lessee shall use the Site only for rental of commercial gear storage areas to individual owners of commercial fishing vessels. Repairs shall be limited to net or gear repair work as outlined in Section 2. Any other use, without prior written approval of the City's Harbor Director shall be a violation of this Lease. Furthermore, Lessee agrees that it shall not: Page 3 of /0 a. Permit any use of the Site or any part thereof in a manner likely to cause injury, damage or an unsafe condition for the general public or the guests, employees, agents, renters and contractors of Lessee or City. • b. Permit undue accumulations of garbage, trash, rubbish or any other refuse by the guests, employees, agents, renters and contractors of Lessee or cause or allow any circumstances or acts on the Site by the guests, employees, agents, renters and contractors of Lessee which will result in pollution of any kind. C. Permit any use of the Site by the guests, employees, agents, renters and contractors of the Lessee which will cause a cancellation of any insurance policy covering the Harbor area, or any part thereof, or any building or improvements thereon, any activity by the guests, employees, agents, renters and contractors of Lessee which may be prohibited by any insurance policies covering the Harbor area, said buildings or improvements. d. Waste water. e. Erect, place, operate or maintain any improvement within the Site, nor allow to be conducted any business from the Site in violation of the terms of this Lease, or in violation of any regulation, order of law, statute, bylaw or ordinance of a governmental agency having jurisdiction over the Site. f. Allow storage in or use of the roadway in a manner that will block City access to the Site of the Harbor Maintenance Yard. g. Discriminate against any qualified user who desires to store commercial fishing gear at the Site • by making the use of the facility available at a reasonable fee to all commercial fishermen on a first come, first serve basis. For the purpose of this agreement a Commercial Fisherman is defined as any person who earned 50% or more of his or her income or at least $7,500 of his or her income (adjusted annually for inflation based on the Anaheim, Riverside, Los Angeles Consumer Price Index (CPI) per year during either of the previous two years from fishing or diving activities. The City may require and Lessee shall provide City within 30 days of request by City, documentation that proves any user of the Site is a qualified user under the terms of this agreement. No individual may rent directly or indirectly, partially, or wholly more than 2 storage units at any one time. h. Allow storage of any items or materials not related to commercial fishing on the Site i. Permit welding, heavy industrial or mechanical repairs on the Site. 8. SIGNS All signs shall be in accordance with the "Sign Ordinance of the City of Morro Bay". "Sign" shall have the meaning set for in said Sign Ordinance. The perimeter fence on the Site shall be conspicuously posted to restrict access beyond the fenced area. 9. GOVERNMENTAL REQUIREMENTS Lessee shall at all times comply with and shall pay all costs and expenses which may be incurred or • required to be paid in order to comply with any and all laws, statutes and ordinances which govern, apply to or are promulgated with respect to the operation and use of the Site by Lessee in connection Page 4 of 10 with its business. So long as Lessee continues to operate and use the Site, Lessee shall comply with each and every requirement of all policies of public liability insurance with Lessee is required to have in • force with respect to the Site. The judgment of any court of competent jurisdiction or the admission of Lessee in any action or proceeding against it, whether City be a party thereto or not, that Lessee has violated any such ordinance or statute in the use of the Site shall be conclusive of that fact as between City and Lessee. • 10. TAXES Lessee acknowledges and agrees that this Lease Agreement may create a possessory interest subject to property taxation. Lessee agrees to pay and discharge, as additional rent for the Site during the term of this Lease, before delinquency, all taxes (including, without limitation, possessory interest taxes associated with Lessee's interest in the Site and the execution of this Lease), assessments, fees, levies, licenses and permit fees and other governmental charges of any kind or nature whatsoever upon the assessed value of its interest in the Site. In the event the Site, or any possessory interest therein, should at any time be subject to ad valorem taxes or privilege taxes levied, assessed or imposed on such property, Lessee shall only pay taxes upon the assessed value of its interest. 11. ADDITIONAL ALTERATIONS AND REPAIRS Prior to making any alterations to the Site, Lessee shall obtain the written approval of the City's Harbor Director. In addition Lessee will obtain any and all required permits, approvals or authorizations required by all governmental agencies for the proposed alterations or repairs. 12. OWNERSHIP OF IMPROVEMENTS AND SURRENDER OF THE SITE The City has constructed and owns all buildings and improvements on the Site at the time of execution of this lease agreement. All improvements to real property constructed on the Site by Lessee after initial project construction as permitted or required by this Lease shall, during this Lease Term, be and remain the property of Lessee, provided, however, that Lessee shall have no right to waste, destroy, demolish or remove the improvements, and provided, further, that Lessee's rights and powers with respect to the improvements are subject to the terms and limitations of this Lease. Upon termination all improvements, alterations or repairs to the Site shall, at the sole discretion of the City either become the property of City or be removed at Lessee's expense. At the expiration or within 90 days of termination of this agreement for any reason, Lessee will surrender the Site in good order and condition with all storage units vacant and clean. Lessee will fully repair any damage occasioned by removal of trade fixtures, equipment, furniture, alterations or stored items. All trade fixtures, equipment, furniture, alterations or stored items not removed at the expiration date or within 90 days of the termination date will conclusively be deemed to have been abandoned by Lessee and may be appropriated, sold, stored, destroyed or otherwise disposed of by City without notice to Lessee or any other person and without obligation to account for them. Lessee waives all claims against City for damage to Lessee or it's occupants resulting from City retention, storage or disposal of items not removed. Lessee will reimburse City for all costs and expenses incurred in connection with City disposition of such property, including without limitation the cost of storage or disposal and the cost of repairing any damage to the buildings or the site caused by removal of such property. Page 5 of l0 13. ASSIGNMENT AND SUBTENANCY This Lease is personal in nature and may not be assigned or transferred by Lessee for any reasons. City • may terminate this agreement should Lessee disincorporate or cease operations as an organization or assign its interest to another party. It is anticipated that Lessee will directly rent out portions of the site to numerous parties and Lessee shall not enter into any agreement with any other party to manage or operate the Site without prior approval by the City. 14. INSURANCE Lessee shall indemnify and hold City and the property of City, including said Site and any buildings or improvements now or hereafter on said Site, free and harmless from any and all liability, claims, loss, damages, or expenses resulting from Lessee's occupation and use of said Site, specifically including, without limitation, any liability, claim, loss, damage, or expense arising by reason of. a. The death or injury of any person who is a guest, employee, agent, renter or contractor of Lessee, or by reason of the damage to or destruction of any property, owned by Lessee or by any person who is a guest, employee, agent, renter or contractor of Lessee, from any cause whatever while such person or property is in or on said Site or in any way connected with said Site or with any of the improvements or personal property on said Site. b. The death or injury of any person who is a guest, employee, agent, renter or contractor of Lessee, or by reason of the damage to or destruction of any property, including property owned by Lessee or by any person who is a guest, employee, agent, renter or contractor of Lessee, caused or allegedly caused by either (i) the condition of said Site or some building or improvement on said Site, or (ii) some act or omission on said Site of Lessee or any person in, on, or about said • Site with or without the permission and consent of Lessee. C. Any work performed on said Site or materials furnished to said Site at the instance or request of Lessee or any person or entity acting for on behalf of Lessee. d. Lessee's failure to perform any provision of this Lease Agreement or to comply with any requirement of law or any requirement imposed on Lessee or said Site by any duly authorized governmental agency or political subdivision. Lessee shall, at Lessee's own cost and expense, secure promptly after the execution of this Lease and maintain during the entire Lease Term, a broad form commercial general liability insurance policy or policies which insures Lessee's public liability, property damage and business automobile exposures with the combined single limit of not less than $1,000,000.00 issued by an insurance company acceptable to City which shall list City as the named primary additional insured, without offset to City's policies as respects all operations of Lessee. Any deductibles or self -insured retentions must be declared to and approved by City. The terms of said policies may be for such period as shall be designated by Lessee; provided however, that within two (2) months prior to the expiration date of such insurance terms, Lessee shall procure other policies of said insurance so that between the execution of this Lease and the commencement of the Lease Term and throughout the entire Lease Term or any renewal thereof, or until the sooner termination thereof, City, its officials, employees, agents and volunteers shall always be added as named primary additional insured under the policies of comprehensive general liability, business automobile coverage, and property damage insurance, in accordance with the foregoing. • Page 6 of in Lessee shall within ten (10) days after the execution of this Lease and promptly thereafter when any •such policy is replaced, rewritten, or renewed, deliver to City a true and correct copy of an insurance binder and within 45 days deliver to City a true and correct copy of each insurance policy required by this Article and an endorsement to the policy and a certificate executed by the insurance company or companies or their authorized agent evidencing such policy or policies. Each insurance policy required by this Lease shall contain a provision that it cannot be cancelled for any reason nor can the coverage or limits be reduced unless twenty (20) days prior written notice of the cancellations or reduction is given to City in the manner required by this Lease for service of notices on City by Lessee. 15. HOLD HARMLESS Lessee agrees to investigate, defend, indemnify and hold harmless City, its employees and agents, from and against any and all losses, damage, liability, claims, demands, detriments, costs, charges and expenses (including attorney's fees) and causes of action whether real or alleged and of whatsoever character, which the City may incur due to the actual or alleged negligence of willful misconduct of Lessee or its guests, employees, agents, renters or contractors. Lessee shall defend, indemnify and hold City, its officials, agents, employees and volunteers, free and harmless from any and all liability, claims, loss, damages, or expenses resulting from Lessee's occupation, operation or use of said Site, specifically including, without limitation, any liability, claim, loss, damage, or expense arising by reason of: (a) The death or injury of any person who is a guest, employee, agent, renter or contractor of Lessee, • or by reason of the damage to or destruction of any property, owned by Lessee or by any person who is a guest, employee, agent, renter or contractor of Lessee, from any cause whatever while such person or property is in or on said Site or in any way connected with said Site or with any of the improvements or personal property on said Site; (b) The -death or injury of any person who is a guest, employee, agent, renter or contractor of Lessee, or by reason of the damage to or destruction of any property, including property owned by Lessee or any person who is a guest, employee, agent, renter or contractor of Lessee, caused or allegedly caused by either (i) the condition of said Site or some building or improvement on said Site, or (ii) some act or omission on said Site of Lessee or any person in, on, or about said Site with or without the permission and consent of Lessee; (c) Any work performed on said Site or materials furnished to said Site at the instance or request of Lessee or any person or entity acting for or on behalf of Lessee; or (d) Lessee's failure to perform any provision of this Lease or to comply with any requirement of law or any requirement imposed on Lessee or said Site by any duly authorized governmental agency or political subdivision. 16. DESTRUCTION This Lease shall remain in full force and effect, including Lessee's obligation to pay rent, in all events of destruction to the Site except as outlined below. In the case of partial damage as determined by the City, Lessee shall use only undamaged portions of the Site while property insurance proceeds are obtained and reconstruction of the damaged or destroyed improvements is made. In the event of partial or full •destruction this Lease Agreement can be otherwise modified or terminated by the mutual written agreement of the City and Lessee. The City shall have no obligation to reconstruct improvements. If the Site is destroyed to the extent that the remainder of the Site cannot be safely or efficiently used as Page 7 of l0 determined solely by City, then City may terminate this Lease Agreement thirty (30) days after the event of destruction. 17. DEFAULT In the event that Lessee shall fail to perform any agreement, covenant or condition set forth in this Lease Agreement and the Lessee fails to cure the default within a reasonable time, after receiving written notice of same, but not more than ninety (90) days, as determined by City at its sole discretion, the Lease Agreement may be terminated upon written notice from City. Lessee agrees that safety is a priority concern in this agreement. City. and Lessee agree that in the case of hazardous or unsafe conditions or in the case of failure to pay rent fifteen (15) days shall be considered a reasonable time to cure a default or this Lease Agreement may be subject to termination. 18. NOTICES If, at any time after the execution of this Lease, it shall become necessary or convenient for one of the parties hereto to serve any notice, demand or communication upon the other party, such notice, demand or communication shall be in writing and shall be served personally or by depositing the same in the registered or certified United States mail, return receipt requested, postage prepaid and (1) if intended for City shall be addressed to: Harbor Director City of Morro Bay 1275 Embarcadero Morro Bay, CA 93442 and (2) if intended for Lessee shall be addressed to : Morro Bay Commercial Fisherman's Organization PO Box 450 Morro Bay, CA 93443 or to such other address as either party nay have furnished to the other in writing as a place for the service of notice. Any notice so mailed shall be deemed to have been given as of the time the same is deposited in the United States mail. 19. UTILITIES Lessee is responsible for all costs of installation and maintenance and monthly charges for any and all utilities or services required by Lessee at the Site. City shall not be liable for the failure of utilities or services to the Site or for payment of any utilities to the Site. 20. PURPOSE AND REQUIREMENTS FOR PROVISION OF A FINANCIAL STATEMENT City and Lessee agree that the purpose of this agreement is to provide a non-profit, low-cost, safe and convenient gear storage area for commercial fishermen. Lessee agrees to operate the Site at all times in conformance with that purpose. City may require Lessee to supply City within thirty (30) days a statement of financial activity including all revenues and expenses and a complete listing of the fee schedule or rental rates attributable to the Site so that City may be assured that the Site is being operated for the purpose of this Agreement. • • Page 8 of 10 21. SITE ACCESSIBILITY Lessee shall provide City access to the Site at all times so that City may use the Harbor Department • Maintenance Yard. Lessee agrees that it will not allow blocking or closing of access to the Harbor Department Maintenance Yard at any time. Failure to provide access at any time shall be cause for termination of this Lease Agreement. 22. TERMINATION OF EASEMENT The easement agreement with property owner for this Site allows the property owner to terminate the easement agreement under certain conditions. Should the property owner terminate the easement agreement for the Site, City shall give the Lessee thirty (30) day notice of termination of this Lease Agreement and in no case shall this Lease Agreement continue beyond the termination date, for any reason, of the easement agreement between the property owner and City. 23. OCCUPANCY OF SITE WITH COMMERCIAL FISHING GEAR Lessee agrees to actively manage the Site at all times so that it is fully occupied by commercial fishermen with commercial fishing gear as determined by the City. To assure broad based availability the Site shall be rented or leased to a minimum of 10 individuals or business entities at all times. Lessee shall provide a list of all the users in the previous calendar year concurrent with providing the City the financial statement required by Section 19 hereof. City shall during the entire term of this Lease have the right, upon resolution of the Morro Bay City Council, to determine that the Site is not being fully occupied or operated at the required capacity or on broad based availability and that the City could more effectively operate the Site for the public benefit. If the City Council makes such a determination, City and Lessee agree that this Lease Agreement may be terminated on sixty (60) day written notice from City to Lessee. • 24. TERMINATION OF SUBLEASE AGREEMENT The parties hereto agree that the sublease agreement dated May 23, 1994 is hereby terminated by mutual agreement. 25. MISCELLANEOUS a. In case any one or more of the provisions contained in this Lease shall for any reason be held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any other provision of this Lease, but this Lease Agreement shall be construed as if such invalid, illegal or unenforceable provisions had not been contained herein. b. Nothing in this Lease Agreement shall be construed to create any duty to, any standard of care with reference to, or any liability to anyone not a party, except as otherwise expressly provided herein. C. The words "City" and "Lessee" as used herein shall include a corporation and include the plural as well as the singular. Words used in the masculine gender include the feminine and neuter. If there be more than one City or Lessee, the obligations hereunder imposed upon City and Lessee shall be joint and several. Time is of the essence of each and all of the agreements, covenants and conditions of this Lease. • C. This Lease shall be interpreted in accordance with and governed by the laws of the State of California. The language in all parts of this Lease shall be, in all cases, construed according to its fair meaning and not strictly for or against City or Lessee. Page 9 of /0 f. This Lease constitutes the entire agreement between City and Lessee with respect to the subject matter hereof and supersedes all prior offers and negotiations, oral and written. This Lease may • not be amended or modified in any respect whatsoever except by an instrument in writing signed by City and Lessee. IN WITNESS WHEREOF, City and Lessee have executed this Lease Agreement by proper persons thereunto duly authorized as of the date first hereinabove written. Approved as to Content CITY MANAGER MORRO BAY COMMERCIAL CITY OF MORRO BAY FISHERMANS ORGANIZATION, INC. David J. Cole Attested by CITY CLERK CITY OF MORRO BAY Cathy Nov , Mayor Presi ent i Officer • • Page 10 of 10 • � ly VAvg {q 1, �'IAM IJJI. i I 1 11 1y� C d r , 1 i 1 • 1 1 r W N . 1 1 r „{ r 1• 1 � , 1 � R 1 1 E yy 1 1 1 " ----. --- -- tail e Iilia EXHIBIT "A" • RESOLUTION NO. 40-98 A RESOLUTION APPROVING AGREEMENT TO EXTEND TIME TO CONSIDER TRANSFER REQUESTS, AND PROVIDING FOR DENIAL OF THE TRANSFER REQUESTS IF THE AGREEMENT IS NOT TIMELY SIGNED THE CITY COUNCIL City of Morro Bay, California WHEREAS, on February 27, 1986, the City of Morro Bay entered into an agreement with Sonic Cable Television of Northern California, pursuant to which the City of Morro Bay granted Sonic Cable Television of Northern California ("Sonic") a franchise to operated a cable television system in the City of Morro Bay; and WHEREAS, Sonic is wholly owned by Sonic Communications, Inc. ("SCI") which is in turn wholly owned by Sonic Enterprises, Inc. ("SEI"); and WHEREAS, Sonic, Sonicvest and CCP (the "Requesting Parties") have asked the City of Morro Bay to approve (1) a transaction that will ultimately result in an assignment of SEI's shares to Sonicvest, and (2) an additional transaction that will result in a sale of assets from Sonicvest to • Charter Communications, L.L.P. ("CCP"), and thereby result in a change of control to the franchise from the Sonic to CCP more fully described in FCC Form 394s submitted to the City of Morro Bay on or about September 29, 1997 (collectively, the transactions are referred to as the "Transfer"); and WHEREAS, as of the date of this Resolution, the City of Morro Bay does not have sufficient information before it that would enable it to act favorably on the request to approve the Transfer and there are outstanding issues that would need to be resolved in order to ensure that the City of Morro Bay and the public are not adversely affected by the Transfer; and WHEREAS, on January 12, 1998 the City Council, upon the request of the Requesting Parties, authorized the City Manager to enter into an agreement which extended the time for the City to act upon the Transfer until February 20, 1998 and subsequent to that time an additional extension was granted until March 9, 1998 and subsequent to that time an extension was granted to April 21, 1998; and WHEREAS, the Requesting Parties and the City of Morro Bay believe that it is appropriate to provide additional time for the City of Morro Bay to act upon the Transfer beyond that date, and it is therefore appropriate to provide for such extension. NOW, THEREFORE BE IT RESOLVED, by the City Council of the City of Morro Bay: • Section 1: The City Manager is authorized to enter into an agreement substantially in the form of Exhibit A to this Resolution. • L Section 2: If Sonic, Sonicvest, or CCP fails to sign the agreement by noon on April 28, 1998, the requests for approval of the transactions that constitute the Transfer shall be deemed denied as of the date of this Resolution. • PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting thereof held on the 21st day of April, 1998 by the following vote: AYES: Anderson, Elliott, Peirce, Peters NOES: None ABSENT: Novak ABSTAIN: None DAVE ELLI TT, Vice -Mayor ATTEST: BRIDGE'' BAUER, City Clerk Resolution No. 40-98 Approving Agreement to Extend Time to Consider Transfer Requests and Providing for Denial of the Transfer Requests if the Agreement is not Timely Signed APR-17-99 1S-23 FROM=CHARTER COMMUNICATIONS '13CHACOMMUNRTERW ID.3149GS6640 PACE 2/2 • Mr. David Cole Manager/Administrator City of Morro Bay 595 Harbor Morro Bay, CA 93442 March 2, 1998 Re: Transfer of Cable Television Franchise, FCC Form 394 Dear Mr_ Cole: Please be advised that on behalf of Charter Communications, the City of Morro Bay is hereby granted an extension of time up to and including April 28, 1998 upon which to review the FCC Form 394's submitted by Charter Communications. • TMF:smf cc: Jim Bogart Sue Buske Suzanne Fryer • Law and and Senior Counsel atory Affairs 12444 Powerscourt Drive - Suae 400 - A Louis, Missouri 63131-3%0 - (314)965-0555 - Fax (314)%5.6W * Intemet ' http:llwww.e hartercom.com EXHIBIT A AGREEMENT FOR EXTENSION OF TEWE Extension Agreement Number Four The City of Morro Bay, Sonic Cable Television of Northern California ("Sonic"), Sonicvest and Charter Communications, L.L.P. ("CCP") hereby agree as follows: Sonic, Sonicvest and CCP and the City of Morro Bay agree that the time for acting upon the transfer requests that were submitted to the City of Morro Bay shall be extended through and including April 28, 1998. Sonic, Sonicvest and CCP represent and warrant that they are each authorized to enter into this agreement and to extend the time for acting on the transfer, without the action or approval of any other party. This document may be executed in multiple counterparts, and by the parties hereto on separate counterparts, and each counterpart, when executed and delivered, shall constitute an original agreement enforceable against all who signed it without production of, or accounting for, any other • counterpart, and all separate counterparts shall constitute the same agreement. F r City of Morro Bay tia�98 David J. Cole, j Manager Date Approved as to Form For Sonic Cable Television of San Luis Obispo By: Its: Date For Sonicvest By: David Hunt, City Attorney Date Its: Date For Charter Communications, L.L.P. By: Its: 0 Date • RESOLUTION NO.39-98 RESOLUTION OF THE CITY OF MORRO BAY, INITIATING PROCEEDINGS TO LEVY THE ANNUAL ASSESSMENT FOR THE NORTH POINT NATURAL AREA LANDSCAPING AND LIGHTING MAINTENANCE ASSESSMENT DISTRICT PURSUANT TO THE "LANDSCAPING AND LIGHTING ACT OF 1972" (STREETS AND HIGHWAYS SECTION 22500 ET SEQ.) WHEREAS, the City Council has placed certain conditions on the development of Tract 2110 "North Point," requiring formation of a property Landscaping and Lighting Maintenance Assessment District encompassing and coterminous with the proposed subdivision to provide for the maintenance of a natural area, parking lot, landscaping, decomposed granite and asphalt walkways, and coastal access stairway and other common area improvements to be held by or dedicated to the City of Morro Bay as required by the Morro Bay Municipal Code 16.16.030; and, WHEREAS, these conditions are more specifically identified in the Precise Plan (condition Fl- F7); and, WHEREAS, the Owners of the real property within the proposed district consented to the • formation of the district pursuant to the Landscaping and Lighting Act of 1972 (Streets and Highways Code Section 22608.2 et seq.), and are the only owners of property to be subject to assessments within the district; and, WHEREAS, the Owners of real property within the proposed district offered in fee and in perpetuity, Lot 11 of Tract 2110, and the City has agreed to said Offer of Dedication, provided that the cost of maintenance of thereof is borne by an assessment district as required by the Conditions of Approval of the project; and, WHEREAS, One hundred percent (100%) of the property owners approved formation of the District to assure conformance with the recently enacted "Right to Vote on Taxes Act" (Proposition 218, California Constitution Act XM C & D). NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay as follows: The City Council of the City of Morro Bay hereby declares its intent to initiate the proceedings to levy and collect assessments pursuant to the "Landscaping and Lighting Act of 1972". (Streets and Highways Code Sections 22500 et seq.) 0 • Resolution No. 39-98 Page 2 2. The improvements to be subject to assessment for maintenance by such District shall include those enumerated in the conditions of project approval and in Streets and Highways Code Section 22525 which are installed by the developer as a condition of approval of Tract 2110 or which are hereafter installed by developer; pursuant to the Final Improvement Plans for the North Point Project as approved by the City. The Assessment District is a District located in the City of Morro Bay, County of San Luis Obispo. A map showing the boundaries of the proposed District is attached as Exhibit "A" which is hereby incorporated herein. 4. An Engineers Report will be prepared for consideration at the May 26, 1998 City Council meeting. PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting thereof held this 27' day of April, 1998 by the following roll call vote: AYES: Anderson, Peirce, Peters, Novak • NOES: Elliott ABSENT: None ATTEST: BRIDGEMAUER CrFY CLERK Ww/caunciVrn73-97 9 CATHY NOVAK MAYOR "EXHIBIT A" CITY OF MORRO BAY • NORTH POINT NATURAL AREA \� LANDSCAPING AND LIGHTING \ MAINTENANCE ASSESSMENT DISTRICT ASSESSMENT DIAGRAM POINT NATURAL 10 = COUNTY ASSESSORS PARCEL NUMBER • RESOLUTION NO. 38-98 RESOLUTION APPROVING ASSIGNMENT OF DESALINATION DISCHARGE AGREEMENT FROM PACIFIC GAS AND ELECTRIC COMPANY TO DUKE ENERGY MORRO BAY LLC the City Council, City of Morro Bay, California WHEREAS, on November 1, 1995 the City of Morro Bay (City) and Pacific Gas and Electric Company (PG&E) entered into an Agreement allowing the discharge of waters from the City Desalination Facility into the PG&E Morro Bay Power Plant Outfall; and WHEREAS, Condition No. 24 of said Agreement states the Agreement shall no be assignable to or binding upon any successors, in interest, without written permission from either party; and WHEREAS, PG&E has now entered into an agreement to convey its interest in the Morro Bay Power Plant and the associated facilities to Duke Energy Morro Bay LLC (Duke Energy), and to assign its interest in said Agreement with the City to Duke Energy; and WHEREAS, it is in the interest of the public health and welfare for the City to consent to said assignment by PG&E to Duke Energy. • NOW, THEREFORE, BE IT RESOLVED by the City Council, City of Morro Bay that the City hereby consents to the assignment by PG&E to Duke Energy of PG&E's interest in said Agreement date November 1, 1995. PASSED AND ADOPTED by the Morro Bay City Council at a regular meeting thereof held on the 27th day of April, 1998 by the following vote: AYES: Anderson, Elliott, Peirce, Peters, Novak NOES: None ABSENT: None ABSTAIN: None CATHY NOVAk, Mayor ATTEST: tX4 BRIDGET BAUER, City Clerk RESOLUTION NO.36-98 • A RESOLUTION APPROVING PROPOSED CABLE SYSTEM TRANSFERS THE CITY COUNCIL City of Morro Bay, Califomia WHEREAS, Sonic Cable Television of San Luis Obispo ("Sonic") holds a franchise to operate a cable television system in the City of Morro Bay ("City"); and WHEREAS, Christopher Cohan ("Cohan") is the general partner and a limited partner in Sonic Partners, L.P. ("Sonic Partners"), which is the sole owner of Sonic Enterprises ("SE"), which in turn owns Sonic Communications ("SCI"), which in turn owns Sonic; and WHEREAS, Sonicvest is a new company created for the purpose of acquiring all the stock of SE and facilitating the transaction more fully described in an FCC Form 394 submitted to the City on or about September 29, 1997, and prior to the consummation of such sale of stock Cohan intends to transfer all of his interest in Sonic Partners to the Trust, and the Trust intends to acquire all of the other partnership interests in Sonic Partners, thereby terminating Sonic Partners' existence (collectively, the "Cohan/Sonicvest Transactions"), which will result in a change in control from Sonic to Sonicvest; and WHEREAS, Charter Communications Properties, L.L.C. ("CCP") desires to acquire all • the assets of Sonic as more fully described in the FCC Form 394 submitted to the City on or about September 29, 1997 (the "Sonic/CCP Transaction"); and WHEREAS, CCP is an indirectly, wholly -owned subsidiary of Charter Communications, Inc. ("Charter"); and WHEREAS, CCP has entered into a management agreement with Charter; and WHEREAS, more specifically, (1) Cohan, Sonic, and Sonicvest have asked the City to approve a transaction that will ultimately result in an assignment of Cohan's-control of Sonic to Sonicvest, and (2) Sonic, and CCP have asked the City to approve a second transaction that will result in a sale of Sonic's assets from Sonicvest to CCP, which transactions are collectively referred to as the "Change of Control and Transfer of Ownership"; and WHEREAS, as of the date of this Agreement, Sonicvest does not have the independent financial, technical or legal qualifications to justify the transfer to it, and whereas CCP's Form 394 relies in part on the experience and resources available through Charter, to justify the transfer to it; and WHEREAS, the parties to the Cohan/Sonicvest Transaction have represented that Sonic will continue to be the grantee until the Sonic/CCP Transaction is completed, at which time CCP will be the grantee; and Resolution No. 36-98 - Approving Proposed Cable System Transfers WHEREAS, the City is willing to approve the Change of Control and Transfer of • Ownership, but only if the parties are willing to satisfy certain conditions; if the performance of CCP is unconditionally guaranteed by its parent, Charter Communications, Inc.; and only subject to certain other conditions designed to ensure that the interests of the public and the City are not adversely affected; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay SECTION 1. Subject to the provisions of this Resolution, the Change of Control and Transfer of Ownership are approved, if: a. by April 27, 1998, Sonic, Sonicvest, SCI, SE, Cohan (on his own behalf and as Trustee of the Trust), CCP and Charter each sign and deliver to the City the attached Change of Control and Transfer of Ownership Agreement (the "Transfer Agreement"); and b. by April 27, 1998, Charter and Cohan each sign and deliver to the City the . Guaranties required by the Transfer Agreement; and C. all conditions set forth in the Transfer Agreement are satisfied, in accordance with their terms, by the time that they are required to be satisfied. Without limiting the foregoing, by way of example and not limitation, the limitations on Sonicvest's holding of the franchise must be satisfied; and • d. the Change of Control and Transfer of Ownership is completed by June 30, 1998, and the transactions and the relationships between Charter and CCP do not differ in any material respect from the transactions and relationships as represented to the City in writing; and e. CCP becomes a signatory to the franchise, or otherwise files an unconditional acceptance of the franchise acceptable to the City immediately upon the completion of the Change of Control and Transfer of Ownership. SECTION 2. The City finds that it is not in the public interest to approve the Change of Control and Transfer of Ownership, given the status of the franchise, and the information provided in the Form 394 and in response to document requests, unless all the conditions in Section 1 are satisfied. The request for approval of the transactions shall be deemed denied as of the date of this Resolution if each and every one of the conditions is not fully satisfied, or if the provisions of this Resolution are for any reason deemed unenforceable. SECTION 3. This Resolution is specifically made without a finding or representation that Sonic is in compliance with all the terms and conditions of its franchise, or that Sonicvest or that CCP is or is not financially, technically or legally qualified to hold the franchise. Without limiting the foregoing, approval of the Change of Ownership and Transfer of Control specifically is not a finding or representation: that the franchise • transferred to CCP will be renewed or extended (and approval shall not create an Resolution No. 36-98 - Approving Proposed Cable System Transfers 2 obligation to renew or extend the franchise); that CCP is financially, technically or • legally qualified to hold a renewal franchise; or that any other renewal issue that may arise with respect to past performance or future, cable -related needs and interests will be resolved in a manner favorable to CCP. For example, the City is not finding or representing that the amount of money that CCP proposes to devote to the franchise area, or its plans for the franchise area are reasonable to meet the community's future, cable - related needs and interests. • n U SECTION 4. This Resolution is not an approval of any other transaction, whether required or allowed by the Change of Ownership and Transfer of Control, nor does the approval of the transactions in any respect limit the enforceability of any franchise provision. In the event of a conflict between any provision of any document related to the Change of Ownership or Transfer of Control and the Transfer Agreement, this Resolution or the Franchise, then the Transfer Agreement, this Resolution and the franchise shall control; CCP shall be required to comply with its obligations under the same, notwithstanding the provisions of any other agreement. SECTION 5. The City Administrative Officer is hereby authorized to sign the Transfer Agreement attached hereto, on behalf of the City. SECTION 6. This Resolution shall be deemed effective as of April 27, 1998. PASSED AND ADOPTED by the City Council of the City of Morro Bay at a meeting thereof held on the 27th day of April, 1998 by the following vote: AYES: NOES: ABSENT: ABSTAIN: Anderson, Elliott, Peirce, Peters, Novak None None None - CATHY NO AK, Mayor r BRjDGjjVBkUER, Resolution No. 36-98 - Approving Proposed Cable System Transfers 3 • RESOLUTION NO. 35-98 RESOLUTION APPROVING THE SUMMARY VACATION OF PORTION OF THE NORWICH STREET RIGHT-OF-WAY NOT REQUIRED FOR STREET PURPOSES the City Council City of Morro Bay, California WHEREAS, Norwich Street between Prescott Drive and State Highway 1 is a dedicated and accepted City street right-of-way; and WHEREAS, the adjacent property owner has requested the City to vacate a portion of the right-of-way; and WHEREAS, the extent of expenditure of public funds for this portion of right-of-way is limited to the installation and maintenance of a street -end barricade; and WHEREAS, the City Council, City of Mono Bay, has determined that the subject portion of Norwich Street constitutes an excess right-of-way not required for street purposes, pursuant to Section 8334 of the State of California Streets and Highways Code; and • WHEREAS, the City Council, has further determined that vacation of this portion of Norwich Street is consistent with the General Plan; and WHEREAS, a description has been prepared for the portion subject to summary vacation, attached as Exhibit "A." NOW THEREFORE, BE IT RESOLVED by the City Council, City of Mono Bay, that portion of Norwich Street described in Exhibit "A" is hereby summarily vacated pursuant to Section 8335 of the Streets and Highways Code and that, upon recordation of this Resolution, will no longer constitute a public street, excepting and reserving pursuant to Section 8340 of said Code however, the following: -to Pacific Gas and Electric Company the right from time to time to install, maintain, repair, operate, replace, remove and renew lines of wires, poles and other structures, equipment and fixtures above ground for the operation of said facilities in said road; and -for the benefit of Pacific Bell, the permanent easement and the right at any time or time to time to construct, maintain, operate, replace, remove, renew and enlarge lines of pipe, conduits, cable, wires, poles and other convenient structures, equipment and fixtures for the operation of telegraphic and telephone lines and other communication facilities, including access and the right to keep the property free from inflammable materials and wood growth, and otherwise protect the same from all hazards, in, upon, over and across that portion of: and • Resolution No. 35-98 Page Two • BE IT FURTHER RESOLVED, this vacation is further conditioned upon the requesting property owners relocating the existing street -end barricade to a location within the Prescott Drive right-of-way at no cost to the City, subject to the review and approval of the Public Works Department; and BE IT FURTHER RESOLVED, the City Clerk is authorized and directed, pursuant to Section 8336 of the Streets and Highways Code, to cause the recordation of this Resolution upon receipt of notice from the Public Works Department that the street -end barricade relocation has been performed and approved. PASSED AND ADOPTED by the City Council at a regular meeting thereof held on the 13th day of April, 1998 by the following vote: AYES: Anderson, Elliott, Peirce, Peters, Novak NOES: None ABSENT: None ABSTAIN: • ATTEST: 0 CATHY NOVA, Mayor • RESOLUTION NO.34-98 APPROVAL OF SUBLEASE FOR A PORTION OF LEASE SITE 89/89W WITH STACY EVERLY, dba CALIFORNIA FASHION OUTLET THE CITY COUNCIL City of Morro Bay, California WHEREAS, the City of Morro Bay is the lessor of certain property on the Morro Bay waterfront described as Lease Site 89/89W; and, WHEREAS, E. Kurt Steinmann is the current lessee of said lease site; and, WHEREAS, the Mr. Steinmann has requested approval of a sublease for a portion of Lease Site 89/89W to Stacy Everly, dba California Fashion Outlet; and, WHEREAS, the lessee is in compliance with terms of the lease agreement; and, WHEREAS, the lease agreement requires City Council approval of any sublease; and, WHEREAS, the City can not arbitrarily withhold approval of a sublease. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay that the City Council hereby approves sublease of a portion of Lease Site 89/89W with • Stacy Everly. This approval is conditional on receipt of the proposed sublease and any other approvals required for the proposed operation, including but not limited to business license and planning/land use permits. BE IT FURTHER RESOLVED, the Mayor is hereby authorized to execute the consent to sublease document as approved by the City Attorney. PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting held thereof on the 13`h day of April 1998, by the following vote: AYES: Anderson, Elliott, Peirce, Peters, Novak NOES: None ABSENT: None CATHY NOVAK, vlAYOR BRIDGETT IJAIJER, CITY CLERK M a, W City of Morro Bay HARBOR DEPARTMENT • 1275 EMBARCADERO, MORRO BAY, CALIFORNIA APPLICATION APPLICATION FOR AMENDMENT OR ASSIGNMENT OF CITY OR APPROVAL OF SUBLEASES TO CITY LEASE At To be completed and retuned to the Harbor Office for processing. CIO APPLICATIONFEE: �' �� 6� Za7 LEASE SITE #: Lessee (please print) 9 A oQ-eo eQ Wailing Address City, State Zip Business Name Telephone REQUEST: Briefly describe the specific nature of the approval requested. c t 1 , n ,n r— O /D-\-n ' \ C-4 Date REVERSE The City of Morro Bay is dedicated to the preservation and enhancement of our quality of life, and strives to provide a level of municipal s—vice and safety consistent with and responsive to the needs of the public. MAR 3 11998 March 31, 1998 I, Stacy Everly am planning on sub -leasing lease site 89 from Mr. Steiman. I currently have a retail womens clothing and accessories boutique in Cayucos and am planning on expanding in Morro Bay. Sincerely, P.O. Box 3324 San Luis Obispo, CA (805) 544-3025 • CONSENT TO SUBLEASE AGREEMENT THIS CONSENT TO SUBLEASE ,1998, by and between referred to as TENANT, and dba, FTTp AGREEMENT is entered into this day of hereinafter RECITALS WHEREAS, a Master Lease was executed on ttter referred to as SUBTENANT and referred to as CITY. and; WHEREAS, TENANT desires to sublease a portion of the premises to SUBTENANT, WHEREAS, the Master Lease requires CITY consent of any sublease in the following form of agreement. NOW, THEREFORE, IT IS AGREED AS FOLLOWS: 1. TENANT and SUBTENANT jointly and severally guaranty that TENANT will pay to City all of the sums required of TENANT and any sums due by reason of SUBTENANT's •activities under the terms of the Master Lease dated hereinafter known as "Master Lease". In the event TENANT fails to make such payment, SUBTENANT agrees to promptly make such payment to CITY for TENANT. Failure to pay the rent shall constitute a violation of the Master Lease and CITY shall, after three (3) days written notice to TENANT, have the following options: (a) CITY may elect to pursue all legal remedies against TENANT alone or against both TENANT and SUBTENANT or against SUBTENANT alone. CITY'S election to pursue one instead of both of the parties shall not preclude a later action against the other party to recover any amounts not paid and both TENANT and SUBTENANT agree that they are to be jointly and severally liable for any breach by the SUBTENANT. (b) CITY shall have all other legal remedies provided for in the lease and allowed by law, including the right to bring an action for unlawful detainer against SUBTENANT, TENANT or both for non-payment of rent by TENANT of SUBTENANT'S portion of rent due to CITY. 2. SUBTENANT acknowledges receipt of a complete copy of the Master Lease and all amendments thereto and specifically agrees to comply with each and all of the terms and conditions of the Master Lease. TENANT guarantees SUBTENANT's compliance with each and all of the terms and conditions of the Master Lease, and all of the parties agree that a violation by SUBTENANT of the terms of the Master Lease shall constitute a violation of the Master Lease by TENANT. TENANT agrees to take whatever action is required to secure SUBTENANTs compliance with each and all of the terms of the Master Lease, and agrees to indemnify CITY, as •Landlord, from any and all claims, loss, cost or expense resulting from SUBTENANT's failure to comply with the terms of the Master Lease. Page l of 3 3. The term of the sublease shall be month to month commencing upon execution of said lease, provided, however, that the term of the sublease shall not in any event exceed the terms of the Master Lease and said Sublease shall, in all events, terminate upon termination of the Master Lease for any reason, including, but not limited to, a termination which occurs as a result of court judgment. 4. Pursuant to the provision in the Master Lease requiring TENANT to pay rental based on percentage of gross sales, SUBTENANT agrees to and shall keep full, complete, and accurate records, and books of account in accordance with accepted accounting practices as showing the total amount of gross sales, as defined in the Master Lease, made each calendar month in, on or from the subleased premises. SUBTENANT shall keep said records and books of account within San Luis Obispo County and shall notify CITY in advance of their location at all times. Said records, books of account and all cash register tapes, including any sales tax reports that SUBTENANT may be required to furnish any government or governmental agency, including but not limited to those items listed in Exhibit B attached hereto and incorporated herein, shall at all reasonable times be open to the inspection of TENANT, CITY, CITY'S auditor, or other authorized representative or agent of TENANT or CITY. 5. The proposed use by SUBTENANT is as follows: Retail Gift sales. Percentage of Gross Rental Applicable to Permitted Use: N/A Said designated use shall not be changed without the prior written consent of CITY. SUBTENANT acknowledges that the percentage of gross payment required for the proposed use under the terms • of the Master Lease is as set forth hereinabove. SUBTENANT agrees that any use by SUBTENANT of the subleased premises for a purpose other than that specified in this paragraph, whether or not permitted under the terms of the Master Lease, shall constitute an unauthorized use subject to those penalties set forth in the Master Lease. The location and size of the proposed use shall not be altered without the prior written consent of the CITY. Specifically, and in addition to any other terms and provisions of the lease, all parties agree that if SUBTENANT makes a use of the subleased premises which is not included within or permitted under the terms of the Master Lease, TENANT shall be liable for and shall pay to CITY, 10% of the gross revenue from such unpermitted use. 6. SUBTENANT shall not alter or improve the premises or any part thereof without first obtaining the prior written consent of CITY. 7. Unless SUBTENANT is included as an additional insured under the terms of TENANT's liability insurance, SUBTENANT agrees to maintain adequate liability insurance in the manner and form required under the Master Lease in an amount of not less than $1,000,000 per occurrence and agrees to name the CITY OF MORRO BAY as an additional primary insured without offset against the CITY's insurance. SUBTENANT agrees to provide the certificates of insurance and copies of the actual insurance policies to the CITY as required under the Master Lease and otherwise comply with the insurance requirements set forth in the Master Lease. CITY reserves the right to require reasonable inns in the liability insurance coverage from time to time. Page 2 of 3 0 8. SUBTENANT and TENANT agree to indemnify and save CITY free and harmless from and against any and all claims, including reasonable attorney's fees and court costs arising from SUBTENANT's failure to comply with any of the terms of this Consent and Sublease Agreement. 9. This Agreement cannot be modified except by a written document mutually approved by the parties hereto. A waiver of any of the conditions or terms of this Consent or of the Master Lease shall not constitute a waiver of any future breach of any terms or conditions of this Consent or the Master Lease. 10. To the extent that the terms of the proposed Sublease are inconsistent with the terms of this Agreement or Master Lease with the CITY OF MORRO BAY, this Agreement or Master Lease shall supersede and be the controlling document. To the extent that this Consent to Sublease Agreement is inconsistent with the terms of the Master Lease, the Master Lease shall supersede and be the controlling document. IN WITNESS WHEREOF, the parties hereto have executed this Consent to Sublease Agreement as of the day and year first above written at Morro Bay, California. TENANT: SUBTENANT: CITY OF MORRO BAY: CATHY NO AK, MAYOR Page 3 of 3 EXHIBIT "A" CONSENT TO SUBLEASE AGREEMENT At a minimum, certain books and records shall be kept by Lessee and Sublessee such as: 1. Prenumbered and dated guest checks; 2. Prenumbered sales invoices or daily cash register tapes; 3. Bank Statements; . 4. Sales Tax Returns; 5. Sales Journals; • 6. Cash Disbursement Journals; and 7. General Ledger Its i LEASE -'-CONTRACT City..................................................................... State.................................................................... Date...'.. 999 c — AN AGREEMENT entered into this day between...... ...... ................. ..{..A.4,sor?_%..... ......fwk.j.....�L. ° ........ ..............................party of the first part, and / ......., party of the second part, whose name is signed hereto; WITNESSETH: That the party of the second part has leased from the party of the first part, property described 2.ffJ....!4T.....�/ 5................. ......-099P.... c � ..........93Y.4!.z.:.....Tv.........'?' r..... iret� ..3/...../..9.?............................................................................................................................. ................................................................................................................ :...................................................... ....................................................... ... ................................................................................................................................................................ at a total valuation of $.... payable as follows: $ ... 4.00.06........................ and $--.S. O................... per....,Wo........ last payment due .... P. .4"t).................. 19..98' 0 RESOLUTION NO. 33-98 . RESOLUTION ESTABLISHING UNDERGROUND UTILITY DISTRICT NO. 6 THE CITY COUNCIL City of Morro Bay, California BE IT RESOLVED by the City Council of the City of Morro Bay as follows: WHEREAS, Resolution No. 13-98 adopted on February 9, 1998, called for a public hearing on April 13, 1998, in the Council Chambers at 209 Surf Street, Morro Bay, California, to ascertain whether the public necessity, health, safety, or welfare requires the removal of poles, overhead wires and associated structures, and the underground installation of wires and facilities for supplying electric, communications, or similar or associated within that certain area of the City described as follows: All that real property located in the City of Morro Bay, County of San Luis Obispo, State of California, described as follows: Beginning at the northeast comer of Block 2, Morro Heights, as shown on a map recorded May 11, 1922, in Volume 3, of Maps, Page 4, said point being the True Point of Beginning; thence, S89°05'W, 1884.0% thence, N0'10'W, 222.4', along the easterly right-of-way line of Main Street; thence, N89005'E, 1354.0', to the easterly right-of-way line of Piney Way; thence, S0010'E, 142.0', to the northerly right-of-way line of Morro • Bay Boulevard; thence, N89°05'E, 530', more or less, along said right-of-way line to its intersection with the westerly right-of-way line of Bemardo Avenue extended; thence, SCP24'E, along said right-of-way line returning to the True Point of Beginning. WHEREAS, notice of such hearing has been given to all affected property owners as shown on the equalized assessment roll, lease holders, and utilities concerned in the manner and for the time required by law; and WHEREAS, such hearing has been duly and regularly held, and all persons interested have been given an opportunity to be heard; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay that pursuant to the provisions of Chapter 13.16 of the Morro Bay Municipal Code, the above described area is hereby declared an Underground Utility District, and is designated as Underground Utility District No. 6 of the City of Morro Bay. Attached hereto, marked "Exhibit A", and hereby incorporated as part of this resolution is a map delineating the boundaries of said district; and BE IT FURTHER RESOLVED that the council does hereby fix February 15, 2000, as the date on which affected property owners and/or lease holders must be ready to receive underground service, and does hereby order the removal of all poles, overhead wires, and associated overhead structures and the underground installation of wires and facilities for supplying electric, communication, or similar or associated service within Underground Utility District No. 6 on or before May 1, 2000. 0 Resolution No. 33-98 Page Two BE IT FURTHER RESOLVED that the City Clerk is hereby instructed to notify all • affected utilities, lease holders, and all persons owning real property served and affected by Underground Utility District No. 6 of the adoption of this resolution within ten (10) days after the date of such adoption. Said City clerk shall further notify said property owners and/or lease holders of the necessity that, if they or any person occupying such property desire to continue to receive electric communication or other similar or associated service, they or such occupant shall, by the date fixed in this resolution, provide all necessary facility changes on their premises so as to receive such service from the lines of the supplying utility or utilities at a new location, subject to applicable Hiles, regulations, and tariffs of the respective utility or utilities on file with the Public Utilities Commission of the State of California. Such notification shall be made by mailing a copy of this resolution together with a copy of said Morro Bay Municipal Code Chapter 13.16, as amended, to affected property owners as such are shown on the last equalized assessment roll, lease holders, and to the affected utilities; and BE IT FURTHER RESOLVED that the City Council hereby finds as follows: The Underground Utility District herein created is in the general public interest for the following reasons: The streets, roads, or rights -of -way in the District are extensively used by the general public and carry a heavy volume of pedestrian and vehicular traffic; 2. The said streets, roads, or rights -of -way lead to, adjoin, or pass through public recreation area of unusual scenic interest to the general public. • PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting held on the 13th day of April, 1998, by the following vote: AYES: Anderson, Elliott, Peirce, Peters, Novak NOES: None ATTEST: 0 C� ", "k, - CATHY NON4W MAYOR 9z _. 0 MM if A cc 1S NHVdcc . � � � 00P �' , A • � � - 4 wry .•h r ' ' �� ' rr � O Q coAMId •1 •; m� I M cc MTowi y ' O s O c49 i �' O b,' o > • _ O C131 : i 1 � Rj -•fF- v 1 r7_I' 1 • Q U I i 1 NIVW F Q ;1 . RESOLUTION NO.32-98 RESOLUTION APPROVING AN INTERIM LICENSE AGREEMENT FOR A PORTION OF LEASE SITE 27W WITH KING VENTURES, DBA INN AT MORRO BAY THE CITY COUNCIL City of Morro Bay, California WHEREAS, the City of Morro Bay is the lessor of certain property on the Morro Bay waterfront, described as Lease Site 27W, and; WHEREAS, King Ventures, dba Inn At Morro Bay, operates a hotel on the private property surrounding said Lease Site, and; WHEREAS, the City of Morro Bay and King Ventures entered into a license agreement allowing King Ventures to use a portion of Lease Site 27W pending approval of permits for long term repair and redevelopment on the site in April, 1998, and; WHEREAS, the City of Morro Bay and King Ventures wish to enter into a new license agreement extending King Venture's continued use of a portion of Lease Site 27W. • NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay that Resolution No. 32-98, approving a temporary license agreement between the City of Morro Bay and King Ventures, is hereby adopted. BE IT FURTHER RESOLVED, that the Mayor is hereby authorized to execute the license agreement between the City of Morro Bay and King Ventures. PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting held thereof on the 131h day of April, 1998. AYES' Anderson, Elliott, Peirce, Peters, Novak NOES: None ABSENT: None CATHY NOVA , MAYOR i _!. __. BRIDGET-OBAUER, CITY CLERK LICENSE AGREEMENT BY AND BETWEEN CITY OF MORRO BAY 0 KING VENTURES, DBA THE INN AT MORRO BAY • E LICENSE AGREEMENT • This License Agreement ("License") is made as of this _ day of 1998 by and between the CITY OF MORRO BAY (Landlord) and, and King Ventures, DBA The Inn at Morro Bay ("Licensee"). 1. LICENSED AREA, CONDITION OF SITE The licensed area, hereinafter called "Site", shall be that portion of the improved tidelands outlined in yellow as shown on the attached Site Map labeled "Exhibit A" and incorporated herein. The Site is licensed to Licensee in an "as is" condition and Licensee agrees that it has investigated the condition of the Site and determined that the Site is suitable to the operations of Licensee. 2. MAINTENANCE AND REPAIR OF SITE Licensee agrees to repair and maintain the existing perimeter fencing around the Site that restricts access to the bulkhead and adjacent City property. Licensee agrees to repair and maintain the asphalt surface and striping of the parking area on the Site in good, useable and safe condition at all times. 3. TERM The term of this License Agreement shall commence on April 1, 1998 ("Commencement Date") and terminate on March 31, 2000 ("Termination Date"). 4. RENT Licensee shall pay to Landlord in lawful money of the United States of America, a minimum annual rent of One Thousand Eight Hundred Dollars ($1800.00). Licensee shall pay the rent to Landlord on the date of execution of this License and on April 1, 1999. Any holdover of this License shall be on a month to month basis with a monthly rate of Two Hundred Dollars ($200.00) and shall be subject to termination on 30 day •written notice by either party for any reason. 5. PREPARATION OF PLANS FOR PERMANENT REPAIRS TO SITE Licensee is currently in the permitting process for redevelopment of Licensee's upland property and Licensee agrees to prepare detailed plans and specifications for permanent repairs to the bulkhead on the Site as a part of a future phase in the redevelopment. Landlord and Licensee anticipate negotiation of a long term lease for the site and necessary water area for a limited slip development adjacent to the Site within the term of this License. Licensee shall have sole responsibility and risk for all costs incurred in permitting, design, engineering or construction of the anticipated repairs and limited slip development up until the time of execution of a long term lease agreement. 6. RESTRICTIONS UPON USE Licensee agrees that, in connection with the use and operation of the Site, Licensee shall use the Site only for parking for Licensee's guests, employees, agents and contractors, and that any other use, without prior written approval shall be a violation of this License. Furthermore, Licensee agrees that it shall not: a. Permit any use of the Site or any part thereof in a manner likely to cause injury, damage or an unsafe condition for the general public, guests, employees, agents and contractors of Licensee; b. Permit undue accumulations of garbage, trash, rubbish or any other refuse by the guests, employees, agents and contractors of Licensee or cause or allow any circumstances or acts on the Site by the guests, employees, agents and contractors of Licensee which will result in pollution of Morro Bay. C. Permit any use of the Site by the guests, employees, agents and contractors of Licensee which will • cause a cancellation of any insurance policy covering the Site, or any building or improvements thereon, or any activity by the guests, employees, agents and contractors of Licensee which may be prohibited by any insurance policies covering the area, said buildings or improvements. Page / of • d. Waste Water. e. Erect, place, operate or maintain any improvement within the Site, nor conduct any business, in violation of the terms of this License, or in violation of any regulation, order of law, statute, bylaw or ordinance of a governmental agency having jurisdiction over the Site. 7. SIGNS All signs placed on the Site shall be in accordance with the "Sign Ordinance of the City of Morro Bay" and shall be approved by the Harbor Director. "Sign" shall have the meaning set forth in said Sign Ordinance. The perimeter fence on the Site shall be conspicuously posted to restrict access beyond the fenced area. 8. GOVERNMENTAL REQUIREMENTS Licensee shall at all times comply with and shall pay all costs and expenses which may be incurred or required to be paid in order to comply with any and all laws, statutes, ordinances, which govern, apply to or are promulgated with respect to the operation and use of the Site by Licensee in connection with its business; provided, however, that Licensee may cease to operate and use the Site at any time and, in such case, Licensee shall have no future obligation to comply or pay such costs and expenses of compliance. So long as Licensee continues to operate and use the Site, Licensee shall comply with each and every requirement of all policies of public liability insurance which Licensee is required to have in force with respect to the Site. The judgment of any court of competent jurisdiction or the admission of Licensee in any action or proceeding against it, whether Landlord be a party thereto or not, that Licensee has violated any such ordinance or statute in the use of the Site shall be conclusive of that fact as between Landlord and Licensee. •9. TAXES Licensee acknowledges and agrees that this License may create a possessory interest subject to property taxation. Licensee agrees to pay and discharge, as additional rent for the Site during the term of this License, before delinquency, all taxes (including, without limitation, possessory interest taxes associated with Licensee's interest in the Site and the execution of this License), assessments, fees, levies, lease and permit fees and other governmental charges of any kind or nature whatsoever upon the assessed value of its interest in the Site. In the event the Site, or any possessory interest therein, should at any time be subject to ad valorem taxes or privilege taxes levied, assessed or imposed on such property, Licensee shall only pay taxes upon the assessed value of its interest. 10. ADDITIONAL ALTERATIONS AND REPAIRS Prior to making any alterations to the Site, Licensee shall obtain the written approval of the Harbor Director. In addition, Licensee will obtain any and all required permits, approvals or authorizations required by all governmental agencies for the proposed alterations or repairs. 11. OWNERSHIP OF IMPROVEMENTS All improvements to real property constructed on the Site by Licensee as permitted or required by this License shall, during this License Term, be and remain the property of Licensee, provided, however, that Licensee shall have no right to waste, destroy, demolish or remove the improvements, and provided, further, that Licensee's rights and powers with respect to the improvements are subject to the terms and limitations of this License. Upon termination all improvements, alterations or repairs to the Site shall become the property of Landlord. T•12. ASSIGNMENT AND SUBLETTING This License is personal in nature and may not be assigned or transferred by either party. Page 2 of 6 13. INSURANCE • Licensee shall indemnify and hold Landlord and the property of Landlord, including said Site and any buildings or improvements now or hereafter on said Site, free and harmless from any and all liability, claims, loss, damages, or expenses resulting from Licensee's occupation and use of said Site, specifically including, without limitation, any liability, claim, loss, damage, or expense arising by reason of. (a) The death or injury of any person who is a guest, employee, agent or contractor of Licensee, or by reason of the damage to or destruction of any property, owned by Licensee or by any person who is a guest, employee, agent or contractor of Licensee, from any cause whatever while such person or property is in or on said Site or in any way connected with said Site or with any of the improvements or personal property on said Site; (b) The death or injury of any person who is a guest, employee, agent or contractor of Licensee, or by reason of the damage to or destruction of any property, including property owned by Licensee or any person who is a guest, employee, agent or contractor of Licensee, caused or allegedly caused by either (i) the condition of said Site or some building or improvement on said Site, or (ii) some act or omission on said Site of Licensee or any person in, on, or about said Site with or without the permission and consent of Licensee; (c) Any work performed on said Site or materials furnished to said Site at the instance or request of Licensee or any person or entity acting for or on behalf of Licensee; or (d) Licensee's failure to perform any provision of this License or to comply with any requirement of law or any requirement imposed on Licensee or said Site by any duly authorized governmental agency or political subdivision. •Licensee shall, at Licensee's own cost and expense, secure promptly after the execution of this License and maintain during the entire License Term, a broad form commercial general liability insurance policy or policies which insures Licensee's public liability, property damage and business automobile exposures with the combined single limit of not less than $1,000,000.00 issued by an insurance company acceptable to Landlord and authorized to issue liability insurance in California, and which shall list Landlord as the named primary additional insured, without offset to Landlord's policies as respects all operations of Licensee. Any deductibles or self -insured retentions must be declared to and approved by Landlord. The terms of said policies may be for such period as shall be designated by Licensee; provided however, that within two (2) months prior to the expiration date of such insurance terms, Licensee shall procure other policies of said insurance so that between the execution of this License and the commencement of the License Term, and throughout the entire License Term or any renewal thereof, or until the sooner termination hereof, Landlord, its officials, employees, agents and volunteers shall always be added as named primary additional insured under the policies of comprehensive general liability, business automobile coverage, and property damage insurance, in accordance with the foregoing. Licensee shall within ten (10) days after the execution of this License and promptly thereafter when any such policy is replaced, rewritten, or renewed, deliver to Landlord a true and correct copy of a certificate executed by the insurance company or companies or their authorized agent evidencing such policy or policies and an endorsement to the policy naming the City of Morro Bay as primary additional insured. Each insurance policy required by this License shall contain a provision that it cannot be canceled for any reason nor can the coverage or limits be reduced unless ten (10) days prior written notice of the cancellation or reduction is given to Landlord in the manner required by this License for service of notices on Landlord by Licensee. • Page 3 of •14. HOLD HARMLESS Licensee agrees to investigate, defend, indemnify and hold harmless Landlord, its employees and agents, from and against any and all losses, damage, liability, claims, demands, detriments, costs, charges and expenses (including attorney's fees) and causes of action whatsoever character, which the Landlord may incur due to this License or Licensee's operations or any acts or omissions of Licensee or its guests, employees, agents and contractors. 15. DESTRUCTION This License shall remain in full force and effect, including Licensee's obligation to pay rent, in all events of destruction to the Site, unless otherwise modified by the mutual written agreement of the Landlord and Licensee. 16. DEFAULT In the event that Licensee shall fail to perform any agreement, covenant or condition set forth in this License, the License may be terminated upon thirty days written notice from Landlord. 17. NOTICES If at any time after the execution of this License, it shall become necessary or convenient for one of the parties hereto to serve any notice, demand or communication upon the other party, such notice, demand or communication shall be in writing and shall be served personally or by depositing the same in the registered or certified United States mail, return receipt requested, postage prepaid and if intended for Landlord shall be addressed to: Harbor Director City of Morro Bay • 1275 Embarcadero Morro Bay CA 93442 and if intended for Licensee shall be addressed to: King Ventures John King 290 Pismo ST San Luis Obispo CA 93401 or to such other address as either party may have furnished to the other in writing as a place for the service of notice. Any notice so mailed shall be deemed to have been given as of the time the same is deposited in the United States mail. 18. UTILITIES Licensee is responsible for all costs of installation and maintenance of any and all utilities or services required by Licensee at the Site. Landlord shall not be liable for the failure of utilities or services to the Site. 19. MISCELLANEOUS a. In case any one or more of the provisions contained in this License shall for any reason be held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any other provision of this License, but this License Agreement shall be construed as if such invalid, illegal or unenforceable provisions had not been contained herein. �. Nothing in this License Agreement shall be construed to create any duty to, any standard of care with reference to, or any liability to anyone not a party, except as otherwise expressly provided herein. Page 4 of 6 . C. The words "Landlord" and "Licensee" as used herein shall include a corporation and include the plural as well as the singular. Words used in the masculine gender include the feminine and neuter. If there be more than one Landlord and Licensee, the obligations hereunder imposed upon Landlord and Licensee shall be joint and several. d. Time is of the essence of each and all of the agreements, covenants and conditions of this License. e. This License shall be interpreted in accordance with and governed by the laws of the State of California. The language in all parts of this License shall be, in all cases, construed according to its fair meaning and not strictly for or against Landlord or Licensee. f. This License constitutes the entire agreement between Landlord and Licensee with respect to the subject matter hereof and supersedes all prior offers and negotiations, oral and written. This License may not be amended or modified in any respect whatsoever except by an instrument in writing signed by Landlord and Licensee. IN WITNESS WHEREOF, Landlord and Licensee have executed this License Agreement by proper persons thereunto duly authorized as of the date first hereinabove written. Approved as to Content CITY ADMINISTRATOR • CITY OFF1 \1MOR /RROA _1 O BAY 1� \ 1 I 1 / David J. Cole Approved MAYOR CITY OF MORRO BAY Cathy Nov • KING VENTURES Page 5 of 6 exhibit a lof Iw \ FINISHED _ FLOOR \ 72.00. sq. ft. ;I —STORY W .' y "ROOF DECK Wes/ _� � / � \• I / / �z / • RESOLUTION NO. 31-98 RESOLUTION RELATING TO THE CLASSIFICATION, COMPENSATION AND TERMS OF EMPLOYMENT OF POLICE EMPLOYEES OF THE CITY OF MORRO BAY THE CITY COUNCIL City of Morro Bay, California WHEREAS, in accordance with the provisions of the California Government Code Section 3500 et. seq. and Resolution No. 74-69 of the City of Morro Bay, the City's representatives have met and conferred in good faith pertaining to the subject of wages, benefits, and conditions of employment with the Morro Bay Peace Officers Association; and WHEREAS, the meeting between the Morro Bay Peace Officers Association and the City has resulted in a mutual agreement and understanding to recommend that the employees represented by the Morro Bay Peace Officers Association accept all of the terms and conditions as set forth in a Memorandum of Understanding, an agreement attached and made a part of this resolution herewith; and • WHEREAS, the City now desires to provide said salaries, benefits, and conditions to said police employees of the City of Morro Bay. NOW, THEREFORE, BE IT RESOLVED that the Morro Bay City Council does hereby approve and adopt in full the Memorandum of Understanding as attached and made a part of this resolution. PASSED AND ADOPTED by the Morro Bay City Council at a result meeting thereof held this 13th day of April, 1998 by the following vote: AYES: Anderson, Elliott, Peirce, Peters, Novak NOES: None ABSENT: None CATHY NOVAK, Mayor ATTEST: BRIDGET�l3AUER, City Clerk • MEMORANDUM OF UNDERSTANDING BETWEEN THE MORRO BAY PEACE OFFICERS' ASSOCIATION AND THE CITY OF MORRO BAY WHEREAS, the City of Morro Bay is a municipal corporation existing under the laws of the State of California as a general law city; and WHEREAS, the City of Morro Bay is limited, insofar as funds are concerned, because of a fixed tax rate; and in structure because it is a public entity rather than a profit - making business; and WHEREAS, the Morro Bay Peace Officers' Association and the City of Morro Bay recognize that the mission and the purpose of the City is to provide liigh-quality and economical municipal services and facilities to the residents of the City of Morro Bay: THEREFORE, this Memorandum of Understanding is entered into as of January 1, 1998 between the City of Morro Bay, referred to as CITY, and the Morro Bay Peace Officers' Association referred to as ASSOCIATION. • It is the intent and purpose of this memorandum to assure sound and mutually beneficial working and economic relations and conditions between the parties hereto to provide for an orderly and peaceable method and manner of resolving any differences which may arise and to negotiate any misunderstanding which could arise and to set forth herein the basic and full agreement between the parties concerning the pay, wages, hours of employment, and other terms and conditions of employment. ;I _ u 2.1 In order to ensure that the City shall continue to carry out its public safety functions, programs, and responsibilities to the public imposed by law, and to maintain efficient public safety service for the citizens of Morro Bay, the City continues to reserve and retain solely and exclusively all management rights, regardless of the frequency of use, including those rights and responsibilities set forth by law and those City rights set forth in the City's Personnel Rules and Regulations and including but not limited to the following: 2.1.1 To manage the Police Department and determine policies and procedures and the right to manage the affairs of the Department. 2.1.2 To determine the existence or nonexistence of facts which are the basis of • the management decision in compliance with State law. 2.1.3 To determine the necessity, organization, implementation, and termination of any service or activity conducted by the City or other government jurisdiction and to expand or diminish police services. 2.1.4 To direct, supervise, recruit, select, hire, evaluate, promote, transfer, discipline, discharge, terminate, demote, reduce, suspend, reprimand, withhold salary increases and benefits for disciplinary reasons, or otherwise discipline employees in accordance with Department or City rules, regulations, or ordinances. 2.1.5 To determine the nature, manner, means, extent, type, time, quantity, quality, technology, standard, and level of police services to be provided to the public. 2.1.6 To require performance of other public safety services not specifically stated herein in the event of emergency or disaster, as deemed necessary by the City. 2.1.7. To lay off employees of the Police Department because of lack of work or funds or under conditions where continued work would be inefficient or • nonproductive or not cost effective, as determined by the City. 2.1.8. To determine and/or change the police facilities, methods, technology, equipment, operations to be performed, organization structure, and allocate or assign work by which the City police operations and services are to be conducted. 2.1.9. To determine method of financing. 2.1.10 To plan, determine, and manage Department's budget which includes, but is not limited to, changes in the number of locations and types of operations, processes and materials to be used in carrying out all Police Department functions and the right to contract or subcontract any work or operations of the Police Department. 2.1.11 To determine the size and composition of the Police Department work force, assign work to employees of the Police Department in accordance with requirements determined by the Police Department and to establish and require compliance to work hours and changes to work hours, work schedules, including call back, standby, and overtime, and other work 2 • • assignments, except as otherwise limited by this agreement, or subsequent agreements. 2.1.12 To establish and modify goals and objectives related to productivity and performance programs and standards, including but not limited to quality and quantity, and required compliance therewith. 2.1.3. To determine qualifications, skills, abilities, knowledge, selection procedures and standards, job classification, job specifications, and to reallocate and reclassify employees in accordance with division and/or City Rules and Regulations. 2.1.14 To determine the issues of public policy and the overall goals and objectives of the Police Department and to take necessary action to achieve the goals and objectives of the Police Department. 2.1.15 To hire, transfer intea or inter Department, promote, reduce in rank, demote, reallocate, terminate and take other personnel action for non - disciplinary reasons in accordance with Department and/or City Rules, Regulations and Ordinances. • 2.1.16 To determine policies, procedures and standards for recruiting, selecting, training and promoting employees. 2.1.17 To establish, implement, and/or modify rules and regulations, policies, and procedures related to productivity, performance, efficiency, personal appearance standards, code of ethics and conduct, safety, health, and order, and to require compliance therewith. 2.1.18 To maintain order and efficiency in police facilities and operation. 2.1.19 To restrict the activity of an employee organization on City facilities except as set forth in this agreement. 2.1.20 To take any and all necessary steps and actions to carry out the service requirements and mission of the City in emergencies or any other time deemed necessary by the City and not specified above. 2.2 Nothing herein is meant to diminish City rights provided by the Government Code. 2.3 Nothing herein is meant to diminish the Peace Officers' Bill of Rights as set forth • in the Government Code. 2.4 AUTHORITY IF THIRD PARTY NEUTRAL - MANAGEMENT RIGHTS • All management rights, powers, authority and functions, whether heretofore or hereinafter exercised, shall remain vested exclusively with the City. No thins party neutral shall have the authority to diminish any of the management rights which are included in this agreement. 3.1 Pursuant to Resolution No. 74-69, the Employer -Employee Relations Resolution of the City of Morro Bay and applicable state law, the Morro Bay Peace Officers' Association, (hereafter "ASSOCIATION') was designated by the City of Morro Bay (hereafter "CITY' City Council as the representative of City employees in the Law Enforcement Unit (hereafter "UNIT'. The UNIT is comprised of the following classifications: Sergeant Corporal Support Services Manager Police Officer Police Dispatcher Crime Prevention Officer The tens "employee" or "employees" as used herein shall refer only to the • foregoing classifications. 3.2 Employees working on a regular basis in a classified position, but less than full- time shall receive vacation and sick leave accruals on a pro -rated basis commensurate with hours worked. Effective January 1, 1998, all benefits for new hires, including insurance benefits, will be allocated on a pro -rated basis commensurate with hours worked. 4.1 Employee representatives designated by the ASSOCIATION shall be granted time off, without loss of pay, to attend "meet and confer" sessions with the City Manager and/or his designee on subjects within the scope of representation when such meetings are scheduled during regular working hours. Should such meetings extend beyond an employee representative's regular working hours, the employee representative shall be paid for only the regular working hours. It is understood that this time -off provision shall only apply to a maximum of three employees attending any one meeting between CITY and ASSOCIATION. 4 0 • Where exceptional circumstances warrant, the City Manager may approve the attendance at such meetings of additional employee representatives. The ASSOCIATION shall, whenever practicable, submit the names of all employee representatives to the Municipal Employee Relations Officer at least two working days in advance of such meetings. Provided further (1) that no employee representative shall leave his or her duty or work station or assignment without specific approval of the department head or other authorized City management official; and (2) that any such meeting is subject to scheduling by City management in a manner consistent with operating needs and work schedules. 4.2 Nothing provided herein shall limit or restrict City management from scheduling such meetings before or after regular City or work hours. 4.3 Off -duty employees will not be paid for attending meet and confer sessions, nor will over -time be paid for same. ARTICLE 5 - AUTHORIZED AGENTS For the express purpose of administering the terms and provisions of this agreement: 5.1 Management's principal authorized agent shall be the City Manager or his/her • duty authorized representative (address: 595 Harbor Street, Morro Bay, CA 93442; telephone (805) 772-6200) except where a particular management representative is specifically designated in the agreement. 5.2 The Morro Bay Peace Officers' Association principal authorized representative shall be the President of the Association, or his/her duly authorized representative (address P. O. Box 276, Morro Bay, CA 93443). 6.1 It is agreed that CITY will withhold ASSOCIATION dues and ASSOCIATION group insurance premiums from the monthly pay of each regular City employee who is a member of the ASSOCIATION. ASSOCIATION agrees to provide CITY with individual ASSOCIATION member authorizations signed by the individual ASSOCIATION member authorizing CITY to make agreed deductions; specifying the amount of each deduction; and authorizing CITY to issue a single check, payable to ASSOCIATION, for the collective amount of the individual deductions. CITY does not accept responsibility for computing the amounts of deductions or for meeting payment dates which may not coincide with established pay periods. CITY will issue a single check to the ASSOCIATION for the total amount of deductions withheld from the individual employees' pay. The ASSOCIATION will • be responsible for the accounting and disbursing of all such funds received from CITY. ASSOCIATION will be responsible for properly notifying CITY of any • changes in deductions and will be the sole agent through which CITY will act in explaining, initiating, executing, or terminating the provisions of this Article. Such notification must be received by the CITY at least two weeks prior to the effective date of the change and shall contain the following information: Employee name, social security number, job classification and department name. Also, such change notice must include a copy of the notice sent to the employees officially telling them of the change. 6.2 All ASSOCIATION members on payroll deduction for payment of ASSOCIATION dues on the day of signing of this Memorandum of Understanding must remain on payroll deduction for the life of the Agreement or so long as they remain members of the UNIT. ASSOCIATION members who establish payroll dues deduction during the term of this Memorandum of Understanding must remain on payroll deduction for the life of this Memorandum or so long as they remain members of the UNIT. ASSOCIATION members on dues payroll deduction may terminate such ASSOCIATION dues during the period of December 15-31 by notifying both the ASSOCIATION and the City Personnel Department of their termination of ASSOCIATION dues deduction. Such notification shall be in the form of a letter containing the following information: Employee name, social security number, job classification, and department name. 6.3 ASSOCIATION shall indemnify and hold harmless the City of Morro Bay, its isofficers, agents, and employees from any and all claims, demands, damages, costs, expenses, or liability arising out of this Article. 6.4 DEPOSIT OF DEDUCTIONS It is agreed that City will deposit payroll deductions made payable to credit unions in which the City participates providing the ASSOCIATION makes arrangements for such services that are acceptable to both members and CITY under the same conditions as prevails for deductions as set forth above. Except as otherwise provided herein, the term of this Agreement commences on January 1, 1998 and expires and is otherwise fully terminated on June 30, 1999. • •� 8.1 In the event either party wants to renegotiate a successor Agreement, such party shall serve upon the other during the period October 1, 1998 to December 6 0 • 15, 1998, its written request to begin negotiations as well as its full and entire written proposals amending this Agreement. 8.2 The parties agree that, except by mutual agreement, no new subjects may be introduced into the process after the third (3rd) negotiations meeting. 8.3 Upon receipt of such written notice and proposals negotiations shall begin no later than thirty (30) days after such receipt or December 15, 1998, whichever is later. FA it 1 :. k 1 [ li M • The CITY and ASSOCIATION mutually agree they will not discriminate against employees for the exercise of their rights under the State of California Government Code Section 3502. _:1 ; L#1 111-� 10.1 Alternative work schedules in compliance wit the Fair Labor Standards Act may be implemented upon approval of the Chief of Police. No guarantee of work per day or per week, or of days of work per week is implied. • The implementation of an alternate work schedule shall not incur any City obligation to allocate additional swom/dispatch personnel, vehicles or equipment. All deployment of sworn/dispatch personnel shall ensure effective and efficient delivery of police protection to the community sufficient to continue during times of vacation, sick leave, and Department approved training. 10.2 OVERTIME 10.2.1 Non -Sworn Personnel Overtime is described as all work authorized by management and actually worked by the employee in excess of forty (40) hours worked in a workweek. For the purpose of defining hours worked, vacation leave and holiday leave shall be considered as time worked in a workweek. All overtime as defined above shall be paid at one and one-half (1.5) times the employee's regular rate of pay. 10.2.2 Dispatch Personnel Overtime is described as all work authorized by management and actually worked by the employee in excess of forty (40) hours worked in a workweek. For the purpose of defining hours worked, vacation leave, holiday leave and comp time taken shall count towards time worked for 40 the purpose of overtime. All overtime as defined herein, shall be paid at • one and one-half (1.5) times the employee's regular rate of pay. 10.2.3 Swom Personnel Overtime shall be all work authorized by management and actually worked by the employee in excess of eighty (80) hours worked in a work period.. For the purpose of defining hours worked, vacation leave, holiday leave and comp time taken shall count towards time worked for the purpose of overtime. All overtime as defined herein, shall be paid at one and one-half (1.5) times the employee's regular rate of pay. NOTE: Hours spent in court under what used to be termed "Court Appearance Pay" shall be considered and paid as part of this article; except for the "minimum pay", which is now covered under Special Pay Practices. 10.3 COMPENSATORY TIME OFF (CTO) 10.3.1 At the employee's option, Compensatory Time Off may be taken in lieu of payment for overtime. 10.3.2 CTO may be accrued. An employee's CTO balance shall indicate the amount of CTO available for employee's use. For example, if an • employee works two (2) hours of FLSA overtime and elects to accrue CTO, the employee's CTO balance shall indicate three (3) hours. 10.3.3 An employee's CTO balance shall not exceed a maximum of twenty- seven (27) hours. If overtime is earned which would exceed this limit, the excess shall be paid off at the following payroll period. 10.3.4 FLSA overtime shall be accrued and taken at one and one-half (1.5) times the amount of overtime actually worked. For example, if an employee works two (2) hours FLSA overtime in a work period, the employee shall be entitled to either two (2) hours pay at one and one-half (1.5) times the employee's regular rate of pay or three (3) hours of CTO. 10.3.5 All CTO requested by an employee shall be approved in advance by the employee's supervisor or Department Head. 8 • • 10.4 EMERGENCIES 10.4.1 Nothing herein shall be construed to limit or restrict the authority of management to make temporary assignments to different or additional locations, shifts, or duties for the purpose of meeting an emergency. 10.4.2 Such emergency assignments shall not extend beyond the period of said emergency. 10.4.3 Short staffing caused solely by absences due to employees taking approved paid leave shall not be considered an emergency. 10.5 SHIFT ROTATION Shift rotation shall coincide with the first day of a pay period. ARTICLE 11 -VACATION LEAVE NOTE. ALL LEAVE TIME (VACATION, SICK LEAVE HOLIDAY, ETC.), WILL BE TAKEN OFF ON AN HOUR FOR HOUR BASIS EQUALING EMPLOYEE ACTUAL TIME OFF, REGARDLESS OF ACCUMULATION RATES. • 11.1 The following is a list of vacation and holiday annual accrual schedule by years of employment: SERVICE VACATION HOLIDAY TOTAL ANNUAL YEARS ACCRUAL ACCRUAL ENTITLEMENT 1-2 80 hrs 104 hrs 184 hrs 3-4 88 hrs 104 hrs 192 hrs 5 96 hrs 104 hrs 200 hrs 6-7 104 hrs 104 hrs 208 hrs 8-9 112 hrs 104 hrs 216 hrs 10-11 120 hrs 104 hrs 224 hrs 12-13 128 hrs 104 hrs 232 hrs 14-15 136 hrs 104 hrs 240 hrs 16-17 144 hrs 104 hrs 248 hrs 18-19 152 hrs 104 hrs 256 hrs 20 or more 160 hrs 104 hrs 264 hrs 11.2 The standard for accumulating vacation time is eight (8) hours equals one (1) day. Employees' Total Annual Entitlement will be credited to employee on a pro- rated basis over 26 pay periods per year. • 9 11.3 In determining priority of individual members for assignment of vacation periods, "seniority within rank" shall be the primary criteria. It is agreed that every effort will be made to permit ASSOCIATION members to take vacation at a time and for periods as close to members' preference as possible consistent with the necessity for maintaining adequate manning.to assure performance of police department functions. It is further agreed that every effort will be made to schedule individual vacation periods so as to maximize consecutive vacation days off consistent with annual vacation entitlement. 11.4 VACATION/HOUDAY ACCUMULATION Unused vacation/holiday leave may be carried over into the following year to a maximum of 350 hours. Unused leave otherwise earned exceeding the authorized cant' -over shall be paid -off as of the pay period containing December 1 of each year, at the employee's current base hourly rate of pay on June 30 of the same calendar year. 11.5 For the purpose of this agreement, the following days are the holidays for the employees in this unit New Year's Day January 1 Martin Luther King, Jr. Day 3rd Monday in January • Lincoln's Birthday February 12 Washington's Birthday 3rd Monday in February Memorial Day Last Monday in May Independence Day July 4 Labor Day 1st Monday in September Veteran's Day November 11 Thanksgiving Day 4th Thursday in November Day after Thanksgiving Friday after Thanksgiving Christmas Day December 25 Day after Christmas December 26 Floating Holiday Varies 11.6 Employees who work a holiday listed above shall be paid one and one-half (1.5) times their base hourly rate. An employee is eligible for the one and one-half time pay only for the hours actually worked during the date set forth in section 11.5. 11.7 Holidays Proclaimed by Government Officials —It is agreed that when a holiday is proclaimed by the Mayor of the CITY then each regular member of the UNIT shall be granted compensation in the same number of hours as equivalent to the 10 0 • time -off granted other employees of the CITY. Such time -off shall be selected by the Police Chief. ARTICLE 12 - SICK LEAVE 12.1 Sick leave shall be earned at the rate of one (1) eight -hour workday for each calendar month of service. There is no limit on the amount of sick leave that may be accumulated by members of this unit. 12.2 At termination, unused accumulated sick leave is not compensable; however, upon retirement, may be converted to additional time as provided by the PERS sick leave option. 13.1 Effective the beginning of the first pay period after January 1, 1998, the City shall contribute an additional one (1) percent for a total of eight (8) percent of an employees' salary on behalf of the employee to the Public Employees Retirement System (hereinafter referred to as PERS. 13.2 Effective the beginning of the first pay period after January 1, 1999, the City shall contribute an additional one (1) percent for a total of nine (9) percent of PERS • Safety employees' salary on behalf of the employee to PERS; and, an additional 1.523% for a total of 9.523% of PERS Miscellaneous employees' salary on behalf of the employee to PERS. 13.3 These amounts paid by the CITY are employee contributions and are paid by the CITY to partially satisfy the employee's obligation to contribute to PERS. 13.4 An employee has no option to receive the contributed amounts directly instead of having them paid by the CITY to PERS on behalf of the employee. 13.5 The ASSOCIATION understands and agrees that employees bear the risk of payment of any increases in the employee contribution above the current percentage made by action of the PERS or the state legislature. 13.6 Parties agree that CITY payment of PERS contributions are made based upon tax treatment currently permitted by the State Franchise Tax Board and the IRS. 13.7 Should current tax treatment change, the ASSOCIATION and the employee shall hold harmless the CITY, it's officers and agents from any and all claims or costs of any type including but not limited to liability for back taxes, arising out of this • agreement to pay part of the employee's PERS contribution. 11 13.8 Should current tax treatment change, the ASSOCIATION shall have the • opportunity to meet and confer regarding any such changes. 13.9 The CITY agrees to continue to provide PERS Safety employees in this unit with a retirement benefit program through the Public Employees Retirement System (PERS) as follows: 13.9.1 Highest Single Year Compensation effective 6-22-91 (Section 20042) 13.9.2 Sick Leave Credit effective 6-24-89 (Section 20965) 13.9.3 1959 Survivor Benefit effective 6-24-89 (Section 21560) 13.9.4 2% @ 50 Retirement Formula effective 6-24-89 (Section 21362) 13.9.5 3rd Level Survivor Benefit effective 6-24-89 (Section 21573) 13.10 The CITY agrees to continue providing PERS Miscellaneous employees in this unit with the following PERS optional benefits: 13.10.1 2% at 55 plan (Section 21354) 13.10.2 Sick Leave Credit Option (Section 20965) 13.11 The CITY agrees to contract with PERS for the optional benefit Military Service Credit as Public Service on behalf of Police Safety employees in accordance with Government Code Section 21024. Employees eligible and applying for this • benefit will pay costs therefor. FAA 1 ._ 1. ._ 14.1 MEDICAL INSURANCE During the term of this agreement, the City shall offer CaIPERS medical insurance plans. 14.1.1 Employees of this unit shall participate in the PERS medical plans on a cafeteria style basis, with the City contributing a maximum of $16/month to the active employee's medical insurance, and $1/month to Retiree medical insurance. Any costs in excess of these contribution rates shall be paid by the employee and Retirees. 14.1.2 CITY shall pay to each active employee by each pay period (subject to appropriate taxation) the sum of $407/month. CITY and ASSOCIATION agree that CITY payment of this lump sum is based on favorable tax treatment by the IRS and the State Franchise Tax Board. Should the tax treatment change, the ASSOCIATION and the employees shall hold harmless the CITY, its officers and agents, including but not limited to, 12 Is • liability for back taxes, arising out of this Agreement to pay such lump sums. 14.1.3 Any increases in medical insurance rates during the term of this Agreement shall be paid by employee. 14.2 DENTALILIFE AND VISION INSURANCE During the term of this Agreement, the City shall offer dental/life and vision insurance and each employee shall be required to cant' both dental/life and vision insurance for self. 14.2.1 Effective January 1, 1998, the employees shall pay the following monthly premium rates for dental and vision insurance: VISION DENTAL LIFE TOTALS Employee Only $ 7.10 $25.05 $ 6.70 $38.85 Employee +1 $14.10 $68.27 $ 6.70 $89.07 Employee +2 $18.20 $68.27 $ 6.70 $93.17 • 14.2.2 Any changes to the dental or vision premiums that occur during the term of this Agreement shall be shared one half by the employee and one half by the City. 14.3 Any coverage made available to future retirees beyond COBRA time requirements shall be paid for by the retiree. M 176 TIM 571 IFIN ILei .:_ _lI1 _ 15.1 P.O.S.T. CERTIFICATES 15.1.1 For ASSOCIATION members hired prior to January 1, 1998 and possessing the Intermediate P.O.S.T. Certificate, CITY agrees to pay three percent (3%) over the base salary range and step schedule established for the position classification held by the ASSOCIATION member and as specified herein under Article 18, Salaries. 15.2.2 For ASSOCIATION members hired prior to January 1, 1998 and possessing the Advanced P.O.S.T. Certificate, CITY agrees to pay six percent (6%) over the base salary range and step schedule established for the position classification held by the ASSOCIATION member and as • specified herein under Article 18, Salaries. 13 15.2 15.1.3 For ASSOCIATION members hired on or after January 1, 1998, CITY • agrees to pay $100 per month for P.O.S.T. certificates as follows: Intermediate Advanced Sergeant # 10 J $100 Corporal $100 $100 Officer $100 $100 COLLEGE DEGREES 15.2.1 CITY agrees to pay the following education incentives on base salary to regular employees hired prior to January 1, 1998 who hold degrees above the minimum required in their respective classification. Associate of Arts Degree - $600 annually Bachelors Degree - $1200 annually 15.2.2 If an employee's job description requires an AA degree and the employee has a Bachelor's Degree, the employee will receive only the difference between an AA and a BA degree, or $600 annually. • 15.2.3 If an employee's job description requires a degree or if an employee is promoted to a classification that requires a degree, the employee shall not receive education incentive pay for the required degree. 15.2.4 Based on the new job descriptions for all classifications which were adopted in May 1996, as well as salary survey implementation over the last three years, employees currently in positions now required to hold an AA or BA degree according to the job description for the classification they hold, will continue to receive an educational incentive for said degree. Any employees hired on or after January 1, 1998 or current employees promoted on or after January 1, 1998 to positions requiring degrees will be subject to section 15.2.3 above. 15.2.5 Employees hired on or after January 1, 1998 shall not be eligible for this incentive. Additionally, employees in this unit hired prior to January 1, 1998 and in the process of obtaining their AA or BA degree have until December 31, 2000 to obtain said degree and be eligible for the incentive. After December 31, 2000, this incentive shall expire except as otherwise set forth in this section. 14 • • ARTICLE 16 - UNIFORMS 16.1 Uniforms for employees shall be as. set forth in Morro Bay Police Department General Orders U-1, Uniform and Equipment Regulations and Specifications. ARTICLE 17 - SALARIES All classifications in the ASSOCIATION shall receive salary increases as set forth herein: 17.1 CITY agrees to a 1 % salary increase for employees of UNIT effective the first payperiod after January 1, 1998 for the payperiods during the period January 1, 1998 through June 30, 1999. Attached Exhibit A reflects salaries for members of this unit for the duration of this Agreement 17.2 All salary adjustments, including but not limited to merit increases, educational incentives, and any other pay adjustments will take effect at the beginning of the next payroll period after the scheduled effective date of the increase. 17.3 Any and all education/special pay incentives will be calculated on base salary. • ARTICLE 19 - SPECIAL PAY PRACTICES 18.1 STANDBY • 18.1.1 Standby duty is defined as that circumstance which requires an employee so assigned to: Be ready to respond immediately to a call for service; Be readily available at all hours by telephone; and Refrain from activities which might impair his/her assigned duties upon call. 18.1.2 Employees on standby shall be compensated for two (2) hours computed at their straight hourly base rate per twenty-four (24) hours of authorized standby time. 18.2 CALL BACK 18.2.1 Call back is defined as that circumstance which requires an employee to unexpectedly return to work after the employee has left work at the end of the employee's workshift or workweek; except that, an early call in of up to 15 two (2) hours prior to the scheduled start of a workshift shall not constitute • a call back; or, employee is required for off -duty court appearance. 18.2.2 Required off -duty court appearance. Employees on call back shall receive either a two (2) hour minimum computed at straight hourly base rate or pay for all time actually worked, whichever is greater. An employee shall not receive overlapping minimums. 18.2.3 An employee shall not receive standby pay for the same hours he/she received call-back pay. 18.3 DISPATCHER TRAINING PAY 18.3.1 An employee who is in the classification of Dispatcher and is assigned to train a new Dispatcher, shall receive an additional one dollar ($1.00) per hour when he/she actually performs the duties of a Dispatch/Trainer. 18.3.3 The parties agree, the Chief has the right to assign the Dispatcher Training function to any qualified Dispatcher. 18.5 OUT OF CLASS ASSIGNMENT • 18.5.1 The term "out -of -class assignment' shall be defined as the full-time performance of the significant duties of a vacant, funded position in one cassfication by an individual in a classification with a lower compensation range. 18.5.2 If an employee is required to work in an out -of -class assignment for more than fifteen (15) work days, within a calendar month his/her department head shall, with prior approval of the Personnel Officer, make an acting appointment. Such acting appointment shall be effective on the sixteenth (16th) work day within a calendar month of the out -of -class assignment. 18.5.3 An employee on an acting appointment shall receive a one (1) step increase within the employee's current classification salary as provided by City's Personnel Rules and Regulations. In the absence of available steps within his/her current range, the employee shall be granted a five percent (5% increase above his/her current base salary). 16 0 • ARTICLE 19 - BULLETIN BOARD 19.1 CITY agrees to furnish space for ASSOCIATION -purchased bulletin boards of reasonable size for the posting of ASSOCIATION material. Location of such bulletin boards shall be at the Police Station in an area commonly used for briefings or meetings. 19.2 ASSOCIATION agrees it shall not use bulletin boards to ridicule, defame, or harass any City employees, officer or agent. V A 1 M • ; • I • a43L•]21 The parties agree that any appointments to fill vacant positions shall be subject to the following probational periods: Sworn personnel 18 months Non-swom personnel 12 months F;,1AWmd-1L=W-4 OUR ASSOCIATION agrees to work with Police Chief to draft a Drug and Alcohol Testing •Policy for police personnel and present it to CITY by April 1, 1998. CITY will review policy and, if necessary, meet and confer with ASSOCIATION. Said Policy will be presented to the City Council for adoption by June 30, 1998. 22.1 The ASSOCIATION agrees that whenever investigation or processing of a grievance is to be transacted during working hours, only the amount of time necessary to bring about a prompt disposition of the matter will be utilized. It is further agreed that the time spent on an investigation and processing of grievances will not interfere with the normal operation of the department. CITY agues to provide every reasonable amount of time for the investigation and the processing of a grievance, but by so agreeing does not imply that the processing or investigation of a grievance shall take priority over normal functions of the department. CITY further agrees that any payment of overtime arising because of ASSOCIATION personnel's involvement in grievance investigation or processing shall not be authorized. Time spent on the investigation and processing of grievances will be recorded on a form provided by CITY. Stewards will be permitted reasonable time -off with pay for the investigation and processing of • grievances provided, however, that stewards shall first obtain permission from 17 the department head and/or his/her designee and inform him/her of the nature of his/her business. CITY shall grant such permission promptly unless such • absence would cause an undue interruption of work or would require the CITY to pay overtime in order to maintain the normal operation of the department. Upon entering the work location, the steward shall inform the department head and supervisor of the nature of his/her business. Permission to leave a job will be granted to the employee involved unless such absence would cause an interruption of work. If the employee cannot be made available, the steward will seek an alternate time for employee availability with the department head or supervisor. It is agreed that in some instances the investigation and processing of a grievance may be accomplished on the employees time. This agreement is in recognition of the mutual sharing of costs involved in the handling of employee initiated actions. 22.2 PURPOSE The primary purpose of this procedure shall be to provide a means whereby an employee, without jeopardizing his employment, can express a personal grievance relating to his wages, hours of work, and working conditions, and • obtain a fair and equitable disposition of his grievance. 22.3 ASSOCIATION REPRESENTATIVE The City agrees that the ASSOCIATION may designate representative to represent employees in the processing of grievances. The ASSOCIATION shall furnish the City Manager with a written list identifying by name and work location all regular and aRemate representatives and the list shall be kept current by the ASSOCIATION at all times. The representatives are to begin investigating grievances only after the employee has tried to resolve the problem with his/her immediate supervisor and the two parties have failed to reach resolution of the problem. 22.4 PROCEDURE Procedures shall be in accordance with Resolution No. 46-74 and any amendments thereto. 18 0 23.1 ASSOCIATION agrees not to cause, authorize, advise, encourage or participate in any interruption of work or any other concerted action. The term "interruption of work" shall mean any work stoppage or strike (including economic and unfair labor practice strikes) or any intentional slow -down of work. The term "other concerted action" includes picketing or boycott activities by the ASSOCIATION. 23.2 Participation by any employee in any activity resulting in interruption of work or other concerted action or use of paid or unpaid leave for these purposes shall subject employee to disciplinary action, up to and including, discharge. When the City Manager has reason to believe that such leave is being used as a method of interruption work, the burden of proof of illness is upon the employee. Doctor's statements can be required in accordance with Resolution No. 34-83, Personnel Rules & Regulations, Section 133.4. 24.1 This Agreement sets forth the full and entire understanding of the parties regarding the matters set forth herein, and any other prior or existing understanding or agreements by the parties, whether formal or informal, • regarding any such matters are hereby superseded or terminated in their entirety. 24.2 It is agreed and understood that each party hereto voluntarily and unqualifiedly waives its right to negotiate, and agrees that the other party shall not be required to negotiate, with respect to any matter covered herein. 24.3 No agreement, alteration, understanding variation, waiver, or modification of any of the terms or provisions contained herein shall in any manner be binding upon the parties hereto unless made and executed in writing by all parties hereto, and if required, approved by the City and ratified by the membership of the ASSOCIATION. 24.4 The waiver of any breach of any term, or condition of this Agreement by either party shall not constitute a precedent in the future enforcement of all its terms and provisions. If any provision(s) are held to be contrary to law by a court of competent jurisdiction, such provision will not be deemed valid and subsisting except to the extent permitted by is law, but all other provisions will continue in full force and effect. 19 Date: BAY PEACE OFFICERS' ASSOC. Sondra Cardwell Date: CITY OF MORRO BAY Dave Cole E CITY OF MORRO BAY SALARY SCHEDULE �ANUARY 1,1998 - JUNE 30,1999 STEP ANNUAL MONTHLY BIWEEKLY HOURLY POLICE SERGEANT 5 $47,988 $3,999 $1,845.69 $23.07 4 $45,703 $3,809 $1,757.80 $21.97 3 $43,527 $3,627 $1,674.10 $20.93 2 $41,464 $3,454 $1,594.38. $19.93 1 $39,480 $3,290 $1,518.46 $18.98 CORPORAL 5 $40,788 $3,399 $1,568.77 $19.61 4 $38,846 $3,237 $1,494.07 $18.68 3 $36,996 $3,083 $1,422.92 $17.79 2 $35,234 $2,936 $1,355.16 $16.94 1 $33,556 $2,796 $1,290.63 $16.13 POLICE OFFICER 5 $38,844 $3,237 $1,494.00 $18.68 4 $36,994 $3,083 $1,422.86 $17.79 3 $35,233 $2,936 $1,355.10 $16.94 2 $33,555 $2,796 $1,290.57 $16.13 1 $31.957 $2,663 $1,229.11 $15.36 &P.SERV. MGR. 5 $38,700 $3,225 $1,488.46 $18.61 4 $36,857 $3,071 $1,417.58 $17.72 3 $35,102 $2,925 $1,350.08 $16.88 2 $33,431 $2,786 $1,285.79 $16.07 1 $31,839 $2,653 $1,224.56 $15.31 DISPATCHER 5 $31,332 $2,611 $1,205.08 $15.06 4 $29,840 $2,487 $1,147.70 $14.35 3 $28,419 $2,368 $1,093.05 $13.66 2 $27,066 $2,255 $1,041.00 $13.01 1 $25,777 $2,148 $991.43 $12.39 CRIME PREY. OFF. 5 $26,988 $2,249 $1,038.00 $12.98 4 $25,703 $2,142 $988.57 " " $12.36 3 $24,479 $2,040 $941.50 $11.77 2 $23,313 $1,943 $896.67 $11.21 1 $22,203 $1,850 $853.97 $10.67 • SALSCH98.WK4 8 04/01/98 09:16 AM CITY OF MORRO BAY SALARY SCHEDULE JANUARY 1, 1998 - JUNE 30, 1999 Y BIWEEKLY HOURLY CITY ADMINISTRATOR 5 $88,104 $7,342 $3,388.62 $42.36 INCLUDES CAR ALLOWANCE 4 $83,909 $6,992 $3,227.26 $40.34 $250/MO 3 $79,913 $6,659 $3,073.58 $38.42 2 $76,108 $6,342 $2,927.22 $36.59 1 $72,483 $6,040 $2,787.83 $34.85 PUBLIC WORKS & PLANNING 5 $75,360 $6,280 $2,898.46 $36.23 DIRECTOR/CITY ENGINEER 4 $71,771 $5,981 $2,760.44 $34.51 3 $68,354 $5,696 $2,628.99 $32.86 2 $65,099 $5,425 $2,503.80 $31.30 1 $61,999 $5,167 $2,384.57 $29.81 POLICE CHIEF 5 $73,500 $6,125 $2,826.92 $35.34 4 $70,000 $5,833 $2,692.30 $33.65 3 $66,667 $5,556 $2,564.10 $32.05 2 $63,492 $5,291 $2,442.00 $30.53 1 $60,469 $5,039 $2,325.71 $29.07 FIRE CHIEF 5 $72,048 $6,004 $2,771.08 $34.64 4 $68,617 $5,718 $2,639.12 $32.99 3 $65,350 $5,446 $2,513.45 $31.42 2 $62,238 $5,186 $2,393.76 $29.92 1 $59,274 $4,940 $2,279.77 $28.50 E FINANCE DIR. 5 $71,568 $5,964 $2,752.62 $34.41 4 $68,160 $5,680 $2,621.54 $32.77 3 $64,914 $5,410 $2,496.70 $31.21 2 $61,823 $5,152 $2,377.81 $29.72 1 $58,879 $4,907 $2,264.58 $28.31 HARBOR DIR. 5 $63,588 $5,299 $2,445.69 $30.57 4 $60,560 $5,047 $2,329.23 $29.12 3 $57,676 $4,806 $2,218.31 $27.73 2 $54,930 $4,577 $2,112.68 $26.41 1 $52,314 $4,360 $2,012.08 $25.15 REC. & PARKS DIR. 5 $62,436 $5,203 $2,401.38 $30.02 4 $59,463 $4,955 $2,287.03 $28.59 3 $56,631 $4,719 $2,178.12 $27.23 2 $53,935 $4,495 $2,074.40 $25.93 1 $51,366 $4,281 $1,975.62 $24.70 • SALSCH98.WK4 1 02/11/98 04:41 PM • RESOLUTION NO. 30-98 RESOLUTION ESTABLISHING ON -STREET PARKING PROHIBITION ALONG QUINTANA ROAD ADJACENT TO 350,354 AND 358 QUINTANA ROAD the CITY COUNCIL, City of Morro Bay, California WHEREAS, Morro Bay Municipal Code Section 10.36.040 authorizes the City Council to establish zones of prohibited parking on any publicly -owned property in the City; and WHEREAS, California Vehicle Code Section 22500 confirms the City Council's authority in such matters; and WHEREAS, a request from three owners was received requesting prohibition of on -street parking along the south side of Quintana Road for a length of approximately 33 feet located approximately 130 feet east of Main Street; and WHEREAS, said request is in conformance with the community's planned installation of bike lanes along Quintana Road; and WHEREAS, said on -street parking prohibition facilitates ingress/egress from adjacent properties. NOW, THEREFORE, BE IT RESOLVED by the Morro Bay City Council that on -street parking is hereby prohibited along the south side of Quintana Road for a length of thirty-three feet • located approximately one hundred thirty feet east of Main Street; and BE IT FURTHER RESOLVED this prohibition will become effective upon the installation of appropriate delineation pursuant to the Morro Bay Municipal Code. PASSED AND ADOPTED by the Morro Bay City Council at a regular meeting thereof held on the 23rd day of March, 1998 by the following vote: AYES: Anderson, Elliott, Peirce, Peters NOES: None ABSENT: Novak ABSTAIN: None ATTEST: ' DGETtBAUER, -City Clerk 0 DAVE ELLIOTT, Vice Mayor AGE ZA NO. � 3 Datejh/p9__Action • CITY OF MORRO BAY MA, : W CTb) 6 -0 STAFF REPORT —6tA d)�c­ 0 .. CL 2- PA L f TO: PUBLIC WORKS ADVISORY BOARD (yo d✓1 04 CA FROM: PUBLIC WORKS STAFF 1' DATE: MARCH 11, 1998 SUBJECT: INSTALLATION OF NO -PARKING AREA IN THE VICINITY OF 360 & 354 QUINTANA ROAD RECOMMENDATION: Staff recommends that a No Parking area be established in the vicinity of 350 and 354 Quintana Road, approximately 130' east of Main Street. FISCAL IMPACT: • The approximate cost to the City for paint and labor would be $100.00 with biyearly maintenance required for the paint. SUMMARY: The proposed No Parking area is a 33' space (measured from top of transitions) between two driveways. Portions of the driveway(s) are often blocked because two vehicles attempt to park between the driveways. One 'legal' parking space would be eliminated. BACKGROUND: In this area Quintana Road is composed of various commercial entities. On the south side is a glass company, machine shop, auto repair business, and body shop. The two driveways are utilized by larger delivery (semis, etc.) trucks and tow trucks serving these businesses. On the north side of Quintana are a surfboard manufacturer, fire/auto repair. Employees' and/or customers from these businesses often attempt to park two vehicles in the subject area, creating a hazardous situation. Two vehicles parked between the driveways cause a portion of the driveway(s) to be blocked. Also, although Quintana Road is 40' in width from curb to curb, the eastbound tum lane effectively narrows the width of Quintana immediately east of the driveways, as shown in the exhibit. With the proximity of the driveways to the hill and the curve coming off Main Street any vehicle parked between the two driveways makes it extremely difficult for the larger vehicles to enter and exit the driveways. Traffic tends to back up as they try to enter these driveways. In lieu of providing one parking space and painting the area on either side of the space red for No Pad ft, staff recommends designating the entire area as No Parking. This would remove the temptation to still park two vehicles in the spaces, would facilitate entering and exiting the driveways, and would make enforcement easier and less time consuming. fl g I p & � IMME.0 , p & � IMME.0 , RECEIVEON JAN 26 1998 City of Morro Bay Public storks Dept. 695 Harbor Street Morro Bay, Ca. 93442 Morro Bay, Ca. January 23, 1998 We request the closing of the on -street parking space, which will accomodate two vehicles, in front of our businesses and between the two driveways leading into our parking lot at 350 - 354 - 358 Quintana Road. When vans, trucks and pickups with shells park in the area, it is impossible to see oncoming traffic when leaving our parking lot. We have had several near accidents ourselves, and have witnessed many, as well as at least one costly collision because of this condition. We further request these parking spots be designated "NO PARKING" Immediately, and not two or three months from now. Hollis Bickford contacted the City Public Works Department last year about this dangerous situation, but nothing was ever done about it. Thank you for your attention to this matter. Hollis Bickford, Gwn H & L Machine Shop 334 Quintana Road Floyd= ustead Owner Estero Class 350 Quintana Road Bay B90 do Paint tint a Road • • • RESOLUTION NO.29-98 APPROVAL OF SUBLEASE FOR A PORTION OF LEASE SITE 89/89W WITH DAN ENDRESEN, dba DEVA AIRBRUSH T-SHIRTS THE CITY COUNCIL City of Morro Bay, California WHEREAS, the City of Morro Bay is the lessor of certain property on the Morro Bay waterfront described as Lease Site 89/89W; and, WHEREAS, E. Kurt Steinmann is the current lessee of said lease site; and, WHEREAS, the Mr. Steinmann has requested approval of a sublease for a portion of Lease Site 89/89W to Dan Endresen, dba Deva Airbrush T-Shirts; and, WHEREAS, the lessee is in compliance with terms of the lease agreement; and, WHEREAS, the lease agreement requires City Council approval of any sublease; and, WHEREAS, the City can not arbitrarily withhold approval of a sublease. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay that the City Council hereby approves sublease of a portion of Lease Site 89/89W with Dan Endresen. This •approval is conditional on receipt of the proposed sublease and any other approvals required for the proposed operation, including but not limited to business license and planning/land use permits. BE IT FURTHER RESOLVED, the Mayor is hereby authorized to execute the consent to sublease document as approved by the City Attorney. PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting held thereof on the 23`d day of March 1998, by the following vote: AYES: Anderson, Elliott, Peirce, Peters NOES: None ABSENT: Novak DAVE ELLIOTT7VICE•' 1 .t �.j.. .: BAUER, CITY CLERK (;f%/ of Mnrrn Rav DEPARTMENT EMBARCADER0. 2 jW05871ji62541' APPLICATION _ APPLICATION FOR AMENDMENT OR ASSIGNMENT OF CITY LEASE AGREEMENTS OR APPROVAL OF SUBLEASES TO CITY LEASE AGREEMENT To be completed and returned to the Harbor Office for processing. LEASE SITE #: -ne �A I I�iJ CC/ 1 Lessee (please print) 3 Enfr�A2cAoc-�a • Mailing Address M029,o $A�j 04 E?2` X City, State Zip I APPLICATION FEE: S 44 , J G DEVA AfP,?5Pu514 1-51-41RTs Business Name Telephone REQUEST: Briefly describe the specific nature of the approval requested. o7�,:(ET/Af` — A)P-a LIS14 T- SHIrZT- 20Sl-ioi2' *,70 Ve7Ap_5 - AlgApLtSH ,-j T- 10 &, Cam! i - Stifg7FS Applicant's Signature Date' SEE REVERSE The City of Morro Bay is dedicated to the preservation and enhancement of our quality of life, and strives to provide a level of municipal service and safety consistent with and responsive to the needs of the public. M Cc l) L I 1 1 MAR 90 4354 Arizona Ave. Atascadero CA 93422 March 7, 1998 Harbor Department 1275 Embarcadero Morro Bay, CA 93442 To whom it may concern: I have had ten years experience doing business as an airbrush artist locally, in the Los Angeles area, and in the Hawaiian Islands. I Would like the opportunity to open a store at 845 Embarcadero Suite B. The store would carry an assortment of sweatshirts, T-shirts, hats, and accessories with custom airbrush • designs to suit the local shopper as well as the visiting tourist. The space is centrally located on the Embarcadero, it has a large window which will enable me to work in full view of potential customers who may be passing by. I hope you will allow me the opportunity to become an active part of the Morro Bay economy. cc Morro Bay City Council • Sincerely-, A�''//� Danny R. Endresen phone (4666085) • CONSENT TO SUBLEASE AGREEMENT T II CONSENT TO SUBLEASE AGREEMENT is entered into this day of 1998, by and between K I Q ic Sri EAJMEw_ er ina er referred to as TENANT, and DA^.J CAlOP4575F J dba, IfEJA 4igdgJSH T--5N/rtrs hereinafter referred to as SUBTENANT and the City of Morro Bay, California, hereinafter referred to as CITY. RECITALS WHEREAS, a Master Lease was executed on and; WHEREAS, TENANT desires to assign a sublease for a portion of the premises to SUBTENANT. NOW, THEREFORE, IT IS AGREED AS FOLLOWS: 1. TENANT and SUBTENANT jointly and severally guaranty that TENANT will pay all of the sums required of TENANT and SUBTENANT under the terms of the Master Lease dated hereinafter known as "Master Lease". In the event TENANT fails to make such payment, SUBTENANT agrees to promptly make such payment to CITY for TENANT. Failure to pay the rent shall constitute a violation of the Master Lease and CITY shall, after three (3) days written notice to TENANT, have the following options: • (a) CITY may elect to pursue all legal remedies against TENANT alone or against both TENANT and SUBTENANT or against SUBTENANT alone. CITY'S election to pursue one instead of both of the parties shall not preclude a later action against the other party to recover any amounts not paid and both TENANT and SUBTENANT agree that they are to be jointly and severally liable for any breach by the SUBTENANT. (b) CITY shall have all other legal remedies provided for in the lease and allowed by law, including the right to bring an action for unlawful detainer against SUBTENANT, TENANT or both for non-payment of rent by TENANT of SUBTENANT'S portion of rent due to CITY. 2. SUBTENANT specifically agrees to comply with each and all of the terms and conditions of the Master Lease. TENANT guarantees SUBTENANT's compliance with each and all of the terms and conditions of the Master Lease, and all of the parties agree that a violation by SUBTENANT of the terms of the Master Lease shall constitute a violation of the Master Lease by TENANT. TENANT agrees to take whatever action is required to secure SUBTENANT's compliance with each and all of the terms of the Master Lease, and agrees to indemnify CITY, as Landlord, from any and all claims, loss, cost or expense resulting from SUBTENANT's failure to comply with the terms of the Master Lease. 3. The term of the sublease attached as Exhibit A shall be years commencing upon execution of said lease and this consent to sublease, provided, however, that the term of the sublease shall not in any event exceed the terms of the Master Lease and said Sublease shall, in all events, terminate upon termination of the Master Lease for any reason, including, but not limited to, a termination which occurs as a result of court judgment. Page / of 3 4. Pursuant to the provision in the Master Lease requiring TENANT to pay rental based on percentage of gross sales, SUBTENANT agrees to and shall keep full, complete, and accurate records, and books of account in accordance with accepted accounting practices as outlined in Exhibit B showing the total amount of gross sales, as defined in the Master Lease, made each calendar month in, on or from the subleased premises. SUBTENANT shall keep said records and books of account within San Luis Obispo County and shall notify CITY in advance of their location at all times. Said records, books of account and all cash register tapes, including any sales tax reports that SUBTENANT may be required to furnish any government or governmental agency shall at all reasonable times be open to the inspection of TENANT, CITY, CITY'S auditor, or other authorized representative or agent of TENANT or CITY. 5. SUBTENANT acknowledges its duty to secure a copy of the Master Lease and each and all of the amendments to that Master Lease from TENANT and to review each and all of the terms and SUBTENANT agrees to comply with each and all of the terms and conditions of those documents. SUBTENANT acknowledges and agrees that this duty exists between SUBTENANT and TENANT and not between SUBTENANT and the CITY. 6. The proposed use by SUBTENANT is as follows: PZFT.A/L A iaf2 i2t15H "f --Sw� rs Percentage of Gross Rental Applicable to Permitted Use: Said designated use shall not be changed without the prior written consent of CITY. SUBTENANT acknowledges that the percentage of gross payment required for the proposed use under the terms of the Master Lease is as set forth hereinabove. SUBTENANT agrees that any use by SUBTENANT of the subleased premises for a purpose other than that specified in this • paragraph, whether or not permitted under the terms of the Master Lease, shall constitute an unauthorized use. The location and size of the proposed use shall not be altered without the prior written consent of the CITY. Specifically, and in addition to any other terms and provisions of the lease, all parties agree that if SUBTENANT makes a use of the subleased premises which is not included within or permitted under the terms of the Master Lease, TENANT shall be liable for and shall pay to CITY, 10% of the gross revenue from such unpermitted use. 7. SUBTENANT shall not alter or improve the premises or any part thereof without first obtaining the prior written consent of CITY. 8. SUBTENANT agrees to submit a statement of previous business experience and agrees to submit current personal and business financial statements upon request and further agrees to submit such documents as part of the CITY's consideration of the Consent to Sublease Agreement. SUBTENANT shall not assign, mortgage, or encumber the subleased premises in whole or in part without the prior written consent of CITY. 9. Unless SUBTENANT is included as an additional insured under the terms of TENANT's liability insurance, SUBTENANT agrees to maintain adequate liability insurance in the manner and form required under the Master Lease in an amount of not less than $1,000,000 per occurrence and agrees to name the CITY OF MORRO BAY as an additional primary insured without offset against the CITY's insurance. SUBTENANT agrees to provide the certificates of insurance and copies of the actual insurance policies to the CITY as required under the Master Lease and otherwise comply with the insurance requirements set forth in the Master Lease. CITY reserves the right to require reasonable increases in the liability insurance coverage from time to time. 0 Page 2 of 3 10. SUBTENANT and TENANT agree to indemnify and save CITY free and harmless from and against any and all claims, including reasonable attorney's fees and court costs arising from SUBTENANT's failure to comply with .any of the terms of this Consent and Sublease Agreement. 11. The Sublease Agreement and all of its terms, provisions and covenants are expressly conditioned upon first obtaining the consent of the City Council of the CITY OF MORRO BAY, evidenced by a resolution passed and adopted by said City Council, to the execution of the Sublease. This Agreement cannot be modified except by a written document approved by the City Council of the CITY OF MORRO BAY and signed by the Mayor and Clerk. A waiver of any of the conditions or terms of this Consent or of the Master Lease shall not constitute a waiver of any future breach of any terms or conditions of this Consent or the Master Lease. 12. Attached as Exhibit A is a true and correct form of the proposed Sublease between TENANT and SUBTENANT. To the extent that the terms of such proposed Sublease are inconsistent with the terms of this Agreement or Master Lease with the CITY OF MORRO BAY, this Agreement or Master Lease shall supersede and be the controlling document. To the, extent that this Consent to Sublease Agreement is inconsistent with the terms of the Master Lease, the Master Lease shall supersede and be the controlling document. IN WITNESS WHEREOF, the parties hereto have executed this Consent to Sublease Agreement as of the day and year first above written at Morro Bay, California. • ATTEST: Bridgett 139ger, City Clerk • CITY OF MORRO BAY A Municipal Corporation By. li;_- Dave Elliott, Vice --Mayor SU ENANT: , ITNANT: / c Page 3 of 3 RESOLUTION NO.28-98 ASSIGNMENT OF LEASE SITE 93-95/93W-95W FROM THE HELD FAMILY TRUST AND SMITH AND HANNAH HELD TO THE HELD FAMILY TRUST (50%) AND THE SMITH AND HANNAH HELD FAMILY TRUST (50%) THE CITY COUNCIL City of Morro Bay, California WHEREAS, the City of Morro Bay is the lessor of certain property on the Morro Bay waterfront described as Lease Site 93-95/93 W-95 W; and, WHEREAS, the Held Family Trust and Smith and Hannah Held as individuals are the lessees of said Lease Site; and, WHEREAS, the Held Family Trust and Smith and Hannah Held are requesting that Lease Site 93-95/93 W-95 W be assigned to the Held Family Trust (50%) and the Smith and Hannah Held Family Trust (50%); and, WHEREAS, the Held Family Trust and Smith and Hannah Held are in compliance with all terms and conditions of said lease agreement. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro • Bay that the City Council hereby approves the assignment of Lease Site 93-95/93 W-95 W from the Held Family Trust and Smith and Hannah Held to the Held Family Trust (50%) and the Smith and Hannah Held Family Trust (50%). This approval is conditional on City Attorney approval of final assignment and assumption documents no later than May 15, 1998. BE IT FURTHER RESOLVED, the Mayor is hereby authorized to execute the assignment and assumption documents as approved by the City Attorney. PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting held thereof on the 23`d day of March, 1998, by the following vote: AYES: Anderson, Elliott, Peirce, Peters NOES: None ABSENT: Novak WN klzw�-1440 ro"01 Wi4' BRIDGETf(.AUER, CITY CLERK Liu M M City of Morro Bay HARBOR DEPARTMENT • 1275 EMBARCADERO, MORRO BAY, CALIFORNIA 93442 • 805-772.62S4 _ APPLICATION APPLICATION FOR AMENDMENT OR ASSIGNMENT OF CITY LEASE AGREEMENTS OR APPROVAL OF SUBLEASES TO CITY LEASE AGREEMENT To be completed and returned to the Harbor Office for processing. LEASE SITE #: OG-26 I CILW - q5w Ofk\nMt��t Ti2osT SMrtl1 iivnno�, �le� Lessee (please print) —Fo- a-�5 *Mailing Address C ww coS (Z A 013430 City, State Zip APPLICATION FEE: Business Name z7 0, � 12Z<o GC6 cgp Telephone REQUEST: Briefly describe the specific nature of the approval requested. 146,�9d8 Applicant's Signature • SEE REVERSE aIDD Date j fLU57 The City of Morro Bay is dedicated to the preservation and enhancement of our quality of life, and strives to provide a level of municipal service and safety consistent with and responsive to the needs of the public. CHECKLIST FOR SUBMITTAL REQUIREMENTS 1. AMENDMENT TO LEASE • $266.76 Application Fee Proposed Lease Amendment Document Statement of purpose for request of amendment Review by community Development and Public Works Departments Other Departmental Review as Follows: 2. ASSIGNMENT OF LEASE J $266.76 Application Fee ex Brien e o erahon r si • Lessee currently in compliance with all terms of existing lease agreement �L Assignment documents acceptable to the City Attorney's office 3. SUBLEASE APPROVAL $266.76 Application Fee $51.30 Application Fee (Administrative Approval if permitted by the terms of the current lease) Lessee currently in compliance with all terms of existing lease agreement Statement of qualifications, experience and proposed operation from potential sublessees Consent to Sublease Agreement and sublease documents completely filled out and signed • RESOLUTION NO.27-98 RESOLUTION RELATING TO THE CLASSIFICATION, COMPENSATION AND TERMS OF EMPLOYMENT OF MISCELLANEOUS EMPLOYEES OF THE CITY OF MORRO BAY THE CITY COUNCIL City of Morro Bay, California WHEREAS, in accordance with the provisions of the California Government Code Section 3500 et. seq. and Resolution No. 74-69 of the City of Morro Bay, the City's representatives have met and conferred in good faith pertaining to the subject of wages, benefits, and conditions of employment with SEIU Local No. 620 representing the miscellaneous employees; and WHEREAS, the meeting between SEIU Local No. 620 and the City has resulted in a mutual agreement and understanding to recommend that the employees represented by SEIU Local No. 620 accept all of the terms and conditions as set forth in a Memorandum of Understanding, an agreement attached and made a part of this resolution herewith; and • WHEREAS, the City now desires to provide said salaries, benefits, and conditions to said miscellaneous employees of the City of Morro Bay. NOW, THEREFORE, BE IT RESOLVED that the Morro Bay City Council does hereby approve and adopt in full the Memorandum of Understanding as attached and made a part of this resolution. PASSED AND ADOPTED by the Morro Bay City Council at a result meeting thereof held this 23rd day of March, 1998 by the following vote: AYES: Anderson„Elliott, Peirce, Peters NOES: None ABSENT: Novak ATTEST: • • 40 RESOLUTION NO. 26-98 RESOLUTION RELATING TO THE CLASSIFICATION, COMPENSATION AND TERMS OF EMPLOYMENT OF CONFIDENTIAL EMPLOYEES OF THE CITY OF MORRO BAY THE CITY COUNCIL City of Morro Bay, California WHEREAS, in accordance with the provisions of the California Government Code Section 3500 et. seq. and Resolution No. 74-69 of the City of Morro Bay, the City's representatives have met and conferred in good faith pertaining to the subject of wages, benefits, and conditions of employment with the confidential employees; and WHEREAS, the meeting between the management employees and the City has resulted in a mutual agreement and understanding to recommend that the employees represented by the confidential unit accept all of the terms and conditions as set forth in a Memorandum of Understanding, an agreement attached and made a part of this resolution herewith; and WHEREAS, the City now desires to provide said salaries, benefits, and conditions to said management employees of the City of Morro Bay. NOW, THEREFORE. BE IT RESOLVED that the Morro Bay City Council does hereby approve and adopt in full the Memorandum of Understanding as attached and made a part of this resolution. PASSED AND ADOPTED by the Morro Bay City Council at a result meeting thereof held this 23rd day of March, 1998 by the following vote: AYES: Anderson, Elliott, Peirce, Peters NOES: None ABSENT: Novak ATTEST: BRIDGETtBAUER, City Clerk DAV9 ELLIOTT, ice -Mayor • RESOLUTION NO.25-98 RESOLUTION RELATING TO THE CLASSIFICATION, COMPENSATION AND TERMS OF EMPLOYMENT OF MANAGEMENT EMPLOYEES OF THE CITY OF MORRO BAY THE CITY COUNCIL City of Morro Bay, California WHEREAS, in accordance with the provisions of the California Government Code Section 3500 et. seq. and Resolution No. 74-69 of the City of Morro Bay, the City's representatives have met and conferred in good faith pertaining to the subject of wages, benefits, and conditions of employment with the management employees; and WHEREAS, the meeting between the management employees and the City has resulted in a mutual agreement and understanding to recommend that the employees represented by the management unit accept all of the terms and conditions as set forth in a Memorandum of Understanding, an agreement attached and made a part of this resolution herewith; and WHEREAS, the City now desires to provide said salaries, benefits, and conditions to said • management employees of the City of Morro Bay. NOW, THEREFORE, BE IT RESOLVED that the Morro Bay City Council does hereby approve and adopt in full the Memorandum of Understanding as attached and made a part of this resolution. PASSED AND ADOPTED by the Morro Bay City Council at a result meeting thereof held this 23rd day of March, 1998 by the following vote: AYES: Anderson, Elliott, Peirce, Peters NOES: None ABSENT: Novak DAVt ELLIOTT, ice -Mayor ATTEST: 1 :t City Clerk - RESOLUTION NO.24-98 • A RESOLUTION APPROVING THE APPLICATION OF A MOTOR VEHICLE EMISSIONS REDUCTION GRANT FROM THE AIR POLLUTION CONTROL DISTRICT FOR THE TROLLEY THE CITY COUNCIL City of Morro Bay, California WHEREAS, the San Luis Obispo Air Pollution Control District (APCD) has issued a Request for Proposals for Motor Vehicle Emissions Projects; and WHEREAS, projects eligible for funding must reduce air pollution from motor vehicles, reduce vehicle trips, increase vehicle occupancy, augment existing public education efforts in support of alternative transportation, or otherwise implement the transportation related provisions of the California Clean Air Act of 1988; and WHEREAS, the City Council at its March 10, 1997 meeting adopted the trolley as a permanent transit program; and WHEREAS, the trolley reduces the number of vehicle trips and vehicle miles traveled within • the City and promotes the use of alternative transportation in the downtown and waterfront areas. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay that the Public Works Department is hereby authorized to apply for a grant from the Air Pollution Control District to help fund the purchase of a trolley. PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting thereof held on the 23th day of March, 1998 by the following vote: AYES: Anderson, Elliott, Peirce, Peters NOES: None ABSENT: Novak ABSTAIN: None ATTEST: BRIDGETIDAUEF,11ty Clerk 0 lip I•AVA :5 21 q 9 Lei 0— RESOLUTION NO. 23-98 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA OPPOSING NEW DEVELOPMENT OF OIL PRODUCTION FACILITIES NORTH OF POINT SAL THE CITY COUNCIL City of Morro Bay, California WHEREAS, the United States Mineral Management Service will be holding a hearing in San Luis Obispo on March 12, 1998 to discuss development of off -shore oil reserves; and WHEREAS, any development of oil production at this time off the Central Coast could have severe environmental impacts to fish, birds, plants and animals both in the • water and along the shore; and WHEREAS, both the commercial fishing industry and tourism are dependent on a healthy environment; and WHEREAS, the City of Morro Bay Zoning Ordinance Section 17.30.060 prohibits any support facilities within the city limits; and WHEREAS, this ordinance can only be changed by a vote of the people; and WHEREAS, this shows the strong opposition to off -shore oil development along the Central Coast by a majority of Morro Bay residents. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay, California, that the City of Morro Bay opposes any new off -shore oil production development north of Point Sal; and BE IT FURTHER RESOLVED that the City Council of the City of Morro Bay, California encourages other cities and the County of San Luis Obispo to request that the Minerals Management Service stop any off -shore oil development north of Point Sal. 0 . Resolution No. 23-98 Page Two PASSED AND ADOPTED by the City Council of the City of Motto Bay at a regular meeting thereof held on the 9th day of March, 1998 on the following vote: AYES: Anderson, Elliott, Peirce, Peters, Novak NOES: None ABSENT: None CATHY NO AK, Mayor ATTEST: • BRIDGE AUER, City Clerk 0 0 � N � AMA 48 •a�y+!2b..!• aI Cg'5ogRm .o p G �' 2 I ±D 2oaR ,.ddQ Lb�l �.0N.y'dd:^A Fes' °nOo `❑ye•' .I'l ,� ;o cog °0 . 8 641 .:0: ' .S: Pi l; 0 o 15w Qn •� p ompp'�� `� ���i •c"i •,�O `�`�Go� . ��qqooz «;N�G'o,.S«,BidBp ar� awgi' 17'.i g� o=i3v I go pa'.4p o «9p� ,�a� ��.�aN,�C•_ �•��'.��'$o��.Q��. bw as �.' o..«%°o�`�'��r.a�O,��'d� 8i'&6CB�ggFG{B�owQ2mSgao.pa�ddd.9 z 148gwp�C �r O;o cR •a.Pm c'3'.: VFBF3Gp�".�7�.-:`J,'�"3 ,�E.a�'���'�N�W19 �a,U�a,W �2� .M N c N>a T� ��. 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N d" t o�dmiyo"L°aciE-�f0! ac OO'O mO.c N=0 C H 0 RESOLUTION NO.22-98 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA DESIGNATING THE MAYOR AS THE AUTHORIZED CITY REPRESENTATIVE FOR EXECUTION OF DOCUMENTS FOR A PETROLEUM VIOLATION ESCROW ACCOUNT GRANT FOR THE YERBA BUENA/HIGHWAY ONE TRAFFIC SIGNALIZATION PROJECT THE CITY COUNCIL City of Morro Bay, California WHEREAS, Chapter 659, Statutes of 1997 (SB 368, Peace) included appropriations from the Petroleum Violation Escrow Account (PVEA) to the California Department of Transportation (CalTrans) for legislatively mandated projects; and WHEREAS, Chapter 659, Statutes of 1997 requires that such legislatively mandated projects be allocated by CalTrans to the recipient; and WHEREAS, the City of Morro Bay was included in said legislatively mandated projects for the installation of a traffic signal at the intersection of Highway One and • Yerba Buena Street to improve traffic flow; and WHEREAS, the City desires to implement this Project at the earliest possible time; and WHEREAS, it is necessary to designate an authorized representative of the City to execute documents for the Project. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay, California, that the Mayor is hereby authorized and empowered to execute in the name of the City of Morro Bay an agreement with CalTrans and all other necessary documents to implement and carry out the purposes of this Resolution. PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting thereof held on the 9th day of March, 1998 on the following vote: AYES: Anderson, Elliott, Peirce, Peters, Novak NOES: None ABSENT: None CATHY NO AK, Mayor . ATTEST: BRIDGE BAUER, City Clerk CJ RESOLUTION NO.21-98 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA APPROVING A FUND TRANSFER AGREEMENT WITH THE STATE OF CALIFORNIA DEPARTMENT OF TRANSPORTATION FOR THE MAIN STREET/HIGHWAY 41 BIKEWAY: PROPOSITION 116 FUNDING SOURCE THE CITY COUNCIL City of Morro Bay, California WHEREAS, the development of bikeways in the community of Morro Bay is to the benefit of the citizens; and WHEREAS, the adopted Circulation Element to the General Plan recognizes this benefit by outlining potential bikeway improvement projects; and WHEREAS, the City Council adopted a Citywide Bikeway Planning Study in • April of 1997 to identify and prioritize the implementation of bikeway projects, including a Class 1 bikeway between Atascadero Road and Main Street; and WHEREAS, the Class 1 bikeway referred to as the "Main Street Bike Path" by the City and as the "Main Street/Highway 41 Bikeway" by the California Transportation Committee (CTC) has been approved for funding under the Clean Air and Transportation Act of 1990 (Proposition 116) in the amount of $317,512; and WHEREAS, a Fund Transfer Agreement for this Project has been prepared by the CTC, reviewed by City staff, and recommended for approval by the City Council; and WHEREAS, it is necessary and appropriate to enter into this Agreement. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay, California, that the Fund Transfer Agreement for the Project is hereby approved; and BE IT FURTHER RESOLVED, the Mayor is hereby designated as the authorized representative of the City of Morro Bay to execute the Agreement. • Resolution No. 21-98 Page Two PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting thereof held on the 9th day of March, 1998 on the following vote: AYES: Anderson, Elliott, Peirce, Peters, Novak NOES: None ABSENT: None ATTEST: BRIDGE AVER, City Clerk • 0 CATHY NO AK, Mayor • • Agreement No. P116B-3-43 Sheet 1 Of 3 STATE OF CALIFORNIA DEPARTMENT OF TRANSPORTATION FUND TRANSFER AGREEMENT INITIAL DOCUMENT COVERING ALLOCATIONS OF ❑ PASSENGER RAIL AND CLEAN AIR BOND ACT OF 1990 (PROP.108), OR G,CLEAN AIR AND TRANSPORTATION IMPROVEMENT ACT OF 1990 (PROP.116) BOND FUNDS, OR ❑ TRANSIT CAPITAL IMPROVEMENT FUNDS EFFECTIVE DATE OF AGREEMENT February 1998 e RECIPIENT Cito Morro Bath TITLE OF COMPLETE PROJECT Main Street / HiZhwau 41 Bikeway PHASE OF PROJECT 11 OR COMPLETE PROJECT CTC ALLOCATION: RESOLUTION NO. BFA-97- FISCAL YEAR 97198 FUND AUTHORIZATIONS: FUND SOURCE AMOUNT FISCAL YEAR LAST EXPENDITURE DATE Prop. 116 $317,512 97198 [tine 30, 2000 TERMINATION DATE OF AGREEMENT December 31, 2000 This Agreement, entered into as of the date set forth above, is between the recipient public entity identified above, hereinafter referred to as RECIPIENT, and the STATE OF CALIFORNIA, acting by and through its Business, Transportation and Housing Agency, Department of Transportation, hereinafter referred to as STATE. SECTION 1. RECIPIENT has applied to the California Transportation Commission ("CTC") for funds derived under the identified STATE Fund Source, to be allocated by CTC, for the purpose of the project named above and further described in the 'Project Description" (the Project) attached as Attachment I to the Standard Provisions of Grant. Agreement No. P11611-3-43 Sheet 2 Of 3 • SECTION 2. THE CTC has allocated funds for the Project, or a phase of the Project ("Project Phase"), in the CTC Resolution (the "Resolution") identified above and attached as Attachment II to the Standard Provisions of Grant and made a part of this Agreement. RECIPIENT shall be bound to the terms and conditions of the Resolution and all restrictions, rights, duties and obligations established therein shall inure to the benefit of CTC and be subject to any necessary enforcement action by CTC. SECTION-2. STATE has prepared the "Standard Provisions of Grant", attached and made a part of this Agreement, which, together with this document and all referenced attachments and addenda, sets forth the terms and conditions under which said funds are to be expended. SECTION 4. STATE and RECIPIENT have negotiated the "Project Description", which describes the entire Project to be constructed or acquired by RECIPIENT. Separate Project Phase descriptions, if applicable, will describe the tasks to be performed for each separate phase of the Project. Subsequent Project Phase descriptions beyond the initial approved description, if any, will be added to this Agreement by Amendment. SECTION 5. STATE and RECIPIENT have negotiated and RECIPIENT • has submitted, at the time of RECIPIENT's request for allocation of funds, the "Scope of Work", (attached as Attachment III to the Standard Provisions of Grant and made a part of this Agreement), which sets forth the tasks and the estimated State bond or TCI reimbursement including progress payments, if any, or the amounts of progress payments to be made from TCI funds if authorized as part of the "Scope of Work". State funding limits and the drawdown schedule established in each original or amended "Scope of Work" for every phase, initial or subsequent, shall not be exceeded or modified without a subsequent amendment and encumbrance of STATE funds. SECTION 6. The completed and signed STATE fund certification on the Scope of Work Approval document, Attachment IV to the Standard Provisions of Grant, including any funding increases allocated to subsequent phases evidenced by an amendment to Attachment IV with additional fund certifications, evidences the limited commitment of STATE funding under this Agreement. SECTION 7. Funding available to RECIPIENT under this Agreement will terminate on the Termination Date first specified above, unless earlier terminated upon written notice from STATE to RECIPIENT pursuant to Article IV, Section 6 of the Standard Provisions of Grant or extended by • amendment. r1L E 0 Agreement No. PI 1613-3-43 Sheet 3 Of 3 SECTION 8. This Agreement may be modified, altered, or revised only with the joint written consent of RECIPIENT and STATE. SECTION 9. RECIPIENT shall not award a construction contract over $10,000 or other contracts (excluding professional services contracts) over $25,000 on the basis of a noncompetitive negotiation for work to be performed under this Agreement without the prior written approval of STATE. SECTION 10. RECIPIENT shall conform to any and all environmental obligations established in CTC Resolution G-91-2, attached as Attachment V to the Standard Provisions of Grant, at the expense of RECIPIENT or the responsible party and without further financial contribution or obligation of STATE. SECTION 11. RECIPIENT has executed this Fund Transfer Agreement pursuant to the authorizing resolution, attached as Attachment VI to the Standard Provisions of Grant. SECTION 12. The grant administrators for the parties shall be for STATE, the Chief, Program Management Branch, Office of Local Programs, and for RECIPIENT, its General Manager or Executive Director or Designee. IN WITNESS WHEREOF, the parties hereto have executed this Agreement by their duly authorized officers. STATE OF CALIFORNIA DEPARTMENT OF TRANSPORTATION Jim Smith Chief, Program Management Branch Office of Local Programs CITY OF MORRO BAY BY r—'*-- Name & Title Agreement No. P11613-3-43 Sheet 1 of 11 • STANDARD PROVISIONS OF GRANT STATE OF CALIFORNIA DEPARTMENT OF TRANSPORTATION FUND TRANSFER AGREEMENT COVERING ALLOCATIONS OF STATE BOND FUNDS (PROPOSITION 108 OR 116) AND TRANSIT CAPITAL IMPROVEMENT FUNDS RECIPIENT has agreed to accept the applicable provisions contained herein, including all Attachments and Addenda (these 'Provisions"), as a condition of its acceptance of a grant from these sources. The State of California, acting through the Department of Transportation, referred to herein as STATE, shall have the administrative responsibilities described in these Provisions. ARTICLE I. PROJECT DESCRIPTION SECTION 1. RECIPIENT agrees to complete the Project, or the identified • Project Phase thereof, as described in the attached Project Description and Scope of Work for the identified Project or Project Phase. Reference hereinafter to the Project shall also mean the Project Phase if appropriate. SECTION 2. RECIPIENT agrees that if STATE funds prove insufficient to complete the described Project and open it to revenue operation, that payment of any additional amounts required shall be the sole responsibility of RECIPIENT. RECIPIENT further agrees that it will secure and provide, without further STATE assistance under this Fund Transfer Agreement process, such additional resources as are necessary to pay these additional amounts and expeditiously complete the Project. ARTICLE II. SCOPE OF WORK SECTION 1. RECIPIENT shall be responsible for complete performance of the work described in the approved Scope of Work document for the Project corresponding to that commitment of future State funds. All work shall be accomplished in accordance with the applicable provisions of the Public Utilities Code and the Streets and Highways Code. All architectural and engineering work for Project shall be the sole responsibility of RECIPIENT and any oversight review of Project plans, specifications and estimates by STATE shall not act to transfer any responsibility or liability to STATE relative to STATE's participation • in that review process. Agreement No. P116B-3-43 Sheet 2 of 11 • SECTION 2. RECIPIENT acknowledges and agrees that RECIPIENT is the sole control and manager of the proposed Project and its subsequent employment for the benefit of the public. RECIPIENT shall be solely responsible for complying with the funding and use restrictions established by the statutes from which the funds are derived, the CTC, the State Treasurer, the Internal Revenue Service, and the terms of this Agreement. RECIPIENT shall indemnify, defend and hold harmless the STATE, the CTC and the State Treasurer relative to any misuse by RECIPIENT of State funds, Project property or Project generated income or other fiscal acts or omissions of RECIPIENT. SECS. A Schedule of Tasks and a drawdown schedule of Estimated Progress Payments are included in the Scope of Work document. STATE need not pay RECIPIENT a cumulative amount greater than the cumulative amount identified in the Schedule for any time period, or any earlier, than the dates authorized in the drawdown schedule of payments or the Quarterly Cash Expenditure document, where applicable. SECTION 4. The Scope of Work includes an estimated completion date or dates for each of the Project Phases or items of work identified therein and RECIPIENT shall conform to those completion dates. ARTICLE III. PAYMENT • SECTION 1. RECIPIENT agrees to contribute at least the statutorily required local contribution (other than state or federal funds) toward the cost of the Project, or the amount specified in the SB2800 (Streets and Highways Code Section 164.53) commitment of future State funds, whichever is greater, from funds available to it. RECIPIENT shall contribute its required amount of the cost of the Project in accordance with a schedule of payments as shown in a Quarterly Cash Expenditure Plan prepared by RECIPIENT as part of the Scope of Work document. SECTION 2. Not more frequently than once a month, but at least quarterly, RECIPIENT will prepare and submit to STATE (directed to the attention of the STATE Headquarters accounting office responsible for administration of the Project for STATE) Progress Payment Vouchers consistent with the Scope of Work document. Each such voucher will report the total expenditures from all sources and will specify the percent of state reimbursement requested and the fund source. The voucher should also summarize STATE money requested by category (right of way, construction and rolling stock) and be accompanied by a report describing the overall work status and progress on tasks for the applicable Project. If applicable, the first voucher shall also be accompanied by a report describing any tasks specified in the Scope of Work document which were accomplished prior to the Effective • date of this Agreement, for which costs are to be credited toward the required local contribution described in Article III, Section 1 of these Provisions pursuant Agreement No. P116B-3-43 Sheet 3 of 11 • to an executed Agreement for Local Match Fund Credit between RECIPIENT and STATE. SECTION 3. Should RECIPIENT have a valid Memorandum of Understanding (MOU) for "Expedited Payment" on file with STATE Department of Transportation, Headquarters Accounting office, RECIPIENT will, not more frequently than as authorized by that MOU, prepare and submit to STATE a Rail Bond Expedited Payment Invoice for rail bond reimbursements consistent with that MOU and the Scope of Work document. The original invoice copy shall be mailed or faxed to: Department of Transportation, Division of Accounting, Attention: Bond Fiscal Management Unit, P.O. Box 942874, Sacramento, CA 94274-0001, (FAX #916-227-8787). As set forth in the MOU, all appropriate supporting documentation and remaining invoice copies are to be contemporaneously submitted to the appropriate Departmental Project Administrator. A warrant for each invoice will be issued by the State Controllers Office within 10 calendar days from receipt of an acceptable invoice. Invoices will be approved for this expedited payment, provided they are not one-time payments or final payments. One-time payments and final payments, eligible for expedited pay, will have 10% of the invoice amount withheld pending approval from the STATE's Project Administrator of all required documents submitted by RECIPIENT. STATE TCI fund reimbursements cannot be invoiced under this MOU process. • SECTION 4. Final payment vouchers must be submitted not later than one month after the Last Expenditure Date noted on the face sheet of the Fund Transfer Agreement. Reimbursement will be made only for work performed after the Effective date of this agreement and prior to the Last Expenditure Date. As used in this agreement, "Last Expenditure Date" refers to the last date for RECIPIENT to expend any funds from any of the state funding sources referenced on the face sheet of the Fund Transfer Agreement. SECTION 5. Delivery by STATE of any funds provided pursuant to this Agreement is contingent upon prior budget action by the legislature, fund allocation by CTC, submittal by RECIPIENT and approval by STATE of all documentation required by Government Code Section 14085 and, if bonds are the fund source, subject to the sale of bonds by the State Treasurer. In the event bond sales are delayed, canceled, or downsized or TCI grant funds are restricted, limited or otherwise conditioned by acts of Congress, the CTC, the Legislature, the Internal Revenue Service or the Federal Transit Authority, STATE shall not be held liable for any resulting damage or penalty. In the event of any such imposition of additional conditions, delay, cancellation or reduction in STATE funding, RECIPIENT shall be excused from meeting the time and expenditure schedule to the extent of such delay, cancellation or reduction and this Agreement will be amended to reflect the necessary changes in scope or • scheduling of the Project. Agreement No. P116B-3-43 Sheet 4 of 11 • SECTION 6. STATE reserves the right to terminate its funding for any Project upon written notice to RECIPIENT in the event that RECIPIENT fails to proceed with the work in accordance with the Scope of Work document, the bonding requirements if applicable, or otherwise violates the conditions of these Provisions or the allocation such that substantial performance is significantly endangered. In the event of such termination, RECIPIENT shall be reimbursed its authorized costs up to the STATE's share of allowable Project costs incurred prior to the date of termination, provided that all other terms and conditions of this Agreement have been met. Any such termination shall be accomplished by delivery to RECIPIENT of a Notice of Termination, which notice shall become effective not less than 30 days after receipt, specifying the reason for the termination, the extent to which funding of work under these provisions is terminated and the date upon which such termination becomes effective, if beyond 30 days after receipt. During the period before the effective termination date, RECIPIENT and STATE shall meet to attempt to resolve any dispute. ARTICLE IV. REPORTS AND RECORDS SECTION 1. RECIPIENT and its contractors shall establish and maintain an accounting system and records that properly accumulate and segregate incurred costs by line item for the Project. RECIPIENT and contractor accounting systems shall conform to generally accepted accounting principles • (GAAP), enable the determination of incurred costs at interim points of completion, and provide support for reimbursement payment vouchers or invoices. All accounting records and other supporting papers of RECIPIENT and its contractors connected with performance under this Agreement shall be maintained for a minimum of three years from the date of final payment to RECIPIENT under these provisions and shall be held open to inspection and audit by representatives of STATE and the Auditor General of the State and copies thereof will be furnished upon request. In conducting an audit of the costs claimed under these provisions, STATE will rely to the maximum extent possible on any prior audit of RECIPIENT pursuant to the provisions of federal and state laws. In the absence of such an audit, any acceptable audit work performed by RECIPIENTS' external and internal auditors and/or federal auditors will be relied upon and used by STATE when planning and conducting additional audits. SECTION 2. RECIPIENT and its contractors agree that contract cost principles at least as restrictive as 48 CFR, Federal Acquisition Regulation System, Chapter 1 Part 31, shall be used to determine the allowability of individual items of costs. RECIPIENT and its contractors also agree to comply with Federal procedures as set forth in 49 CFR, Part 18, Uniform Administrative Requirements for Grants -in -Aid to State and Local Governments. • Any costs for which RECIPIENT has received payment that are determined by subsequent audit to be unallowable under CFR 48, Federal Agreement No. P116B-3-43 Sheet 5 of 11 • Acquisition Regulation System, Chapter 1, Part 31, are to be repaid to STATE by RECIPIENT. Should RECIPIENT fail to reimburse moneys due STATE within 30 days of demand, or within such other period as may be agreed between the parties hereto, STATE is authorized to withhold future payments due RECIPIENT from any source, including but not limited to, the State Treasurer, The State Controller and the CTC. SECTION. For the purpose of determining compliance with Public Contract Code Section 10115, et seq., Military and Veterans Code Sections 999 et ec . and Title 2, California Code of Regulations, Section 1896.60 e, &q., when applicable, and other matters connected with the performance of RECIPIENT's contracts with third parties pursuant to Government Code Section 10532, RECIPIENT, RECIPIENT's Contractor, subcontractors and STATE shall maintain all books, documents, papers, accounting records, and other evidence pertaining to the performance of such contracts, including but not limited to, the costs of administering the various contracts. All of the above -referenced parties shall make such materials available at their respective offices at all reasonable times during the contract period and for three years from the date of final payment under such contract. STATE, the State Auditor General, the Federal Highway Administration, or any duly authorized representative of the Federal Government shall have access to any books, records, and documents that are pertinent to the Agreement for audits, examinations, excerpts, and transactions • and copies thereof shall be furnished if requested. SECTION 4. RECIPIENT will insert clauses to the effect of Sections 1, 2 and 3 above of this Article IV in all of its contracts funded by STATE under these Provisions. SECTION 5. RECIPIENT and STATE agree to conduct, on a quarterly basis, on -site reviews of all aspects of the progress of the Project. The first quarterly review meeting shall take place within 90 days following execution of this Agreement. RECIPIENT agrees, during each quarterly progress review, to inform STATE regarding (1) whether the Project is proceeding on schedule and within budget, (2) any requested changes to the Project Management Plan, (3) major construction accomplishments during the quarter, (4) any actual or anticipated problems which could lead to delays in schedule, increased costs or other difficulties, (5) the status of the Project Budget and, (6) the status of critical elements of the Project. Section 6. It will be permissible for RECIPIENT to expend funds as needed and to move funds between expenditure categories and line items with maximum flexibility in accordance with revised budgets furnished prior to the actual expenditures. However, RECIPIENT shall notify and obtain approval from STATE of any proposed changes in excess of 10 percent in any expenditure • category prior to actual expenditure. For proposed changes in excess of 20 percent in any expenditure category or for a reduction in proposed work or Agreement No. P116B-3-43 Sheet 6 of 11 • service levels, STATE approval shall be obtained and STATE will determine whether the proposed change is significant enough to warrant CTC review. Should the proposed change require any increase in State funds, the CTC and STATE must approve that change in advance of funds being expended.. SECTION 7. The quarterly reviews will include consideration of whether activities are within the scope of the Project and in compliance with State laws, regulations, administrative requirements, and implementation of the Project under this Agreement. SECTION 8. If RECIPIENT and STATE determine at any time during the performance of the Project, that the Project budget may be exceeded, RECIPIENT shall take the following steps: (1) Notify the designated STATE representative of the nature and projected extent of the overrun and, within a reasonable period thereafter, identify and quantify potential costs savings or other measures which will bring the budget into balance, and (2) Schedule the projected overrun for discussion at the next subsequent Quarterly Review meeting, and • (3) Identify the source of additional RECIPIENT funds which can be made available to complete Project. (4) If an increase in State funding is potentially necessary because the initial budget may be exceeded, then, after obtaining STATE preapproval, RECIPIENT shall prepare a request to the CTC for an additional allocation of State funds. ARTICLE V. GENERAL PROVISIONS SECTION 1. In the performance of work under these provisions, RECIPIENT, its contractor(s) and all subcontractors will not discriminate against any employee or applicant for employment because of race, religious creed, medical condition, color, marital status, ancestry, sex, age, national origin, or physical handicap (Government Code Section 12940 g, &_q_). RECIPIENT, its contractor(s) and all subcontractors will take affirmative action to ensure that applicants are employed, and that employees are treated during employment, without regard to their race, religious creed, medical condition, color, marital status, ancestry, sex, age, national origin, or physical handicap. Such action shall include, but not be limited to, the following: employment, upgrading, demotion or transfer; recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training, including • apprenticeship. RECIPIENT, its contractor(s) and all subcontractors shall post in Agreement No. P116B-3-43 Sheet 7 of 11 • conspicuous places, available to employees and applicants for employment, notice to be provided by STATE setting forth the provisions of this section. SECTION 2. RECIPIENT, its contractor(s) and subcontractors will permit access to all records of employment, employment advertisements, application forms, and other pertinent data and records by the State Fair Employment Practices and Housing Commission, or any other agency of the State of California designated by STATE, for the purpose of investigation to ascertain compliance with Section 1 of this Article V. SECTION 3. RECIPIENT agrees to insert, in appropriate contracts, clauses to the effect of Sections 1 and 2 of this Article V and the California Labor Code requirements that all workers employed on public works will be paid not less than the general prevailing wage rates predetermined by the Department of Industrial Relations. SECTION 4. Should Public Contract Code Sections 2000 or 10115 or Military and Veterans Code Sections 999 eL sect.. be applicable to RECIPIENT, RECIPIENT will meet, or make good faith efforts to meet, the following Minority Business Enterprises/Women Business Enterprises/Disabled Veterans Business Enterprises goals or RECIPIENT's applicable goals in the award of every contract for work to be performed under these Provisions: • Minority Business Enterprises -15% Women Business Enterprises - 5% Disabled Veterans Business Enterprises - 3% RECIPIENT shall have the sole duty and authority under this Agreement to determine whether good faith efforts were sufficient as outlined in Public Contract Code Sections 2000 and 10115 et seq., and the Military and Veterans Code Sections 999 ei &,. SECTION 5. To the extent that RECIPIENT is subject to the provisions of Government Code Section 4450 ePL &4._ , RECIPIENT shall submit plans and specifications for buildings, structures, sidewalks, curbs and related facilities to the State Department of General Services for approval prior to Construction. SECTION 6. Neither STATE nor any officer or employee thereof shall be responsible for any damage or liability occurring by reason of anything done or omitted to be done by RECIPIENT, its agents and contractors, under, or in connection with any work, authority, or jurisdiction delegated to RECIPIENT under this Agreement or as respects environmental clean up obligations or duties of RECIPIENT relative to a Project. It is also understood and agreed that, pursuant to Government Code Section 895.4, RECIPIENT shall fully indemnify • and hold STATE harmless from any liability imposed for injury (as defined by Government Code Section 810.8) or environmental obligations or duties arising Agreement No. P116B-3-43 Sheet 9 of 11 • due STATE will be measured by the ratio applied to the then fair market value of the Project property acquired. SECTION 10. RECIPIENT should be on notice that the Federal Transportation Administration ("FTA", previously "UMTA") does not share in any revenue stream from projects which it has participated in. However, FTA does require that it specifically approve private and incidental uses of its funded projects to assure that they do not adversely impact transit use. In FTA funded projects, revenues that are derived from these private and incidental uses must be documented, are subject to audit and are required to be applied to transit purposes. FTA circular 5010.1A provides program management guidelines. SECTION 11. The Fund Transfer Agreement, these Provisions, the CTC Resolutions, the Project Description and the Scope of Work document approved by STATE constitute the entire terms of the grant Fund Transfer Agreement between the parties for the work to be performed pursuant to this grant and all subsequent grants awarded to this Project. The Project Description and/or the Scope of Work document may be modified, altered or revised only by a written Amendment between RECIPIENT and STATE. SECTION 12. Additional funding for subsequent Project Phases may be granted through amendments to this Agreement. A new CTC allocation • resolution will also be required following the submission by RECIPIENT of an acceptable supplementary Scope of Work document and, when necessary, a revised Project Description. ARTICLE VI. BOND PROVISIONS SECTION 1. If Project funding is being provided in whole or in part pursuant to the Clean Air and Transportation Improvement Act of 1990 (Prop. 116), the following additional provisions apply to RECIPIENT: (a) Where RECIPIENT's Project includes a commuter rail project within the meaning of Prop. 116, RECIPIENT shall coordinate and share with other public transit operators any rail rights -of -way, common maintenance services and station facilities used for intercity and commuter rail. Intercity and commuter rail services shall be coordinated with each other, with other providers and with freight traffic to provide integrated rail passenger and freight services with minimal conflict. (b) RECIPIENT agrees that all passenger rail and water borne ferry equipment and all facilities acquired or constructed pursuant to this Agreement shall be accessible to persons with physical disabilities, including wheelchair users. All passenger vehicles and vessels acquired pursuant to this • Agreement shall be accessible to wheelchair users at all stops, stations and terminals, whether or not staffed. Agreement No. P116B-3-43 Sheet 10 of 11 • (c) RECIPIENT (other than the transit operator identified in Sections 99633 and 99634 of the Public Utilities Code) shall require that all intercity and commuter rail cars purchased conform to the California Rail car specifications developed by STATE as specified in the Clean Air and Transportation Improvement Act. Section 2. RECIPIENT shall not loan any portion of bond proceeds represented by this grant to any private (including nonprofit) person or business. For this purpose a "loan" includes any arrangement which is the economic equivalent of a loan, regardless of how it is named. Section 3. Except as provided in this Article VI, STATE and RECIPIENT agree that any costs of the Project acquired or constructed by RECIPIENT allocable to portions of the Project which are subject to any property interests held by a nongovernmental person(s) in connection with business activities, such as easements, leases, or fee interests not generally enjoyed by the public, (hereafter referred to as Nongovernmentally Used Property or "NUP") shall, for accounting and bookkeeping purposes, be allocated to funding sources other than the State bond funds. For purposes of making such allocations, the costs attributable to NUP involving a sale, easement, lease or similar arrangement shall be determined on the basis of a fair allocation of value, which may include • determinations based upon square or cubic footage/acreage of the area encumbered by the lease or easement relative to the total area acquired or constructed if all such area is of approximately equal value. NUP will include, but is not limited to, property which is sold (including sales of air and subsurface rights) and property subject to easements, leases or similar rights. A rail right of way will not be treated as NUP solely as a result of a Freight Use Easement retained by the seller of the right of way to RECIPIENT, provided that the sales agreement appropriately excludes the Freight Use Easement from the property or rights being acquired. Further, notwithstanding anything in this Article VI to the contrary, RECIPIENT may allocate grant funds to the cost of any NUP if (i) neither RECIPIENT nor any other governmental entity will receive, directly or indirectly, any payments from or on behalf of the nongovernmental user of the NUP, or (ii) the payment from such user does not exceed the operation and maintenance costs fairly attributable or allocable to the nongovernmental use of the NUP. Section 4. RECIPIENT shall request, in writing, STATE's advance approval if grant funds are to be allocated to any NUP, except "incidental use" property described below. If property, the costs of which have previously been allocated to grant funds, is to become NUP before the State bond funds are fully paid or redeemed, then RECIPIENT may allocate the costs of such property to • another funding source as provided in Section 3 of this Article VI, or obtain STATE's approval that the allocation of the costs of such property to the grant Agreement No. P116B-3-43 Sheet 11 of 11 • funds may remain. It is anticipated that STATE approval will be granted if, taking into account the existing and expected uses of the proceeds of the State bonds, the STATE determines that the continued tax-exempt status of the State bonds will not be adversely affected and that the use of the property is consistent with the Project and its described purpose. For purposes of these Articles VI Section 3 fund source allocations, RECIPIENT does not have to take into account as NUP those "incidental uses" of the Project (such as, for example, advertising billboards, vending machines, telephones, etc.) which meet requirements of federal tax regulations (IRS Notice 87-69 or any successor thereto). In general such Notice requires that the incidental use not be physically separated from the rest of the Project and not comprise in the aggregate more than 2-1 /2% of the costs of the Project. Section 5. If RECIPIENT enters into a management contract with a private party (including AMTRAK) for operation of rail, ferry or other transportation services in connection with the Project, it will either (a) obtain approval from Bond Counsel acceptable to STATE that the terms of the management contract meet the requirements of Internal Revenue Service Revenue Procedure 82-14 (as supplemented or amended) or any successor thereto (dealing generally with guidelines for when management contracts may be deemed not to create a "private use" of bond -financed property) or are otherwise acceptable; or (b) be prepared to certify upon request of STATE that the revenues which RECIPIENT (or its manager) will receive directly from the operation of transportation services in connection with the Project (but not including any subsidy of the transportation operation from taxes or other outside fund sources) are for any fiscal year less than the ordinary and necessary expenses directly attributable to the operation and maintenance of the transportation system (excluding any overhead or administrative costs of RECIPIENT). In any year for which option (b) will not be true, RECIPIENT shall consult Bond Counsel acceptable to the State Treasurer's Office to obtain approval of the management contract or an opinion that the circumstances present will not adversely affect the tax-exempt status of the bonds. Section 6. If RECIPIENT receives any revenues or profits from any NUP allowed pursuant to this Article VI (whether approved at this time or hereafter approved by STATE), RECIPIENT agrees that such revenues or profits shall be used exclusively for the public transportation services for which the Project was initially approved, either for capital improvements or operating costs. If RECIPIENT does not so dedicate the revenues or profits, a proportionate share shall (unless disapproved by Bond Counsel) be paid to STATE equivalent to STATE's percentage participation in the Project. 0 Agreement No. P11613-3-43 Sheet 1 of 2 • ATTACHMENT I - PROJECT DESCRIPTION I. Conditions: Project plans shall conform to uniform specifications and to design and safety standards as described in the Caltrans Highway Design Manual -Bikeway Planning and Design Section 7-1000 established by State. "Preliminary Engineering" as used herein includes all preliminary work related to the project, including, but not restricted to preliminary surveys and reports, laboratory work, soil investigations, preparation of plans, designs, and advertising. "Construction Engineering" as used herein includes actual inspection and supervision of construction work, construction staking, laboratory and field testing, field reports and records, estimates, final reports, and allowable expenses of employees engaged in such activities. Preliminary and Construction Engineering costs included in the estimate contained in the Scope of Work are eligible project costs. Preliminary Engineering is limited to 5% of the grant allocation. State reimbursement to local entity will be on the basis of the actual cost thereof to local entity including compensation and expense, of personnel working on the project, required materials, and automotive expense provided; local entity shall pay its general administrative and overhead expenses. H. Description of work proposed: • Location: In Morro Bay, 100 feet west of Highway 1, between Main Street and Atascadero Road. Description of Work: Construction of a Class I bikeway, including a bridge across Morro Creek. Net length: Approximately 2,800 feet. 0 ■EN • ATTACHMENT II - CTC ALLOCATION RESOLUTION To be inserted following CTC approval. u • 0 AGREEMENTNO. P1166-3-43 • ATTACHMENT IV - FUND CERTIFICATION Name of Recipient: Name of Project: Resolution Number: Date of Resolution: Amount of Allocation: Fund Source: Expiration Date of Funds: City of Morro Bay Main Street / Highway 41 Bikeway BFA February 1998 $317,512 CATIA June 30, 2000 SOURCE CKARGE EXP AUTH SPECIAL DESIGNATIM GEN LED I SUB ACCT I SUB JOB NO. OBJECT WORM ORDER NO. LCCATICN AMOUNTj$ CR nsc& YEAR BJQJF9AN RCE DOCUMe4T µmain DGr UNIT DIST I UNIT I hereby Certify upon my own penonalkpwLPCcdge that 6L(%getedfands SIGNATURECFACCCLNTPIGOFRCER are availa6& for the perwdand purpose of the eVenditure stateda6ove. MA I CHAPTER STATUTES RSCALYEAR DATE • RESOLUTION NO. 20-98 RESOLUTION APPROVING THE SUMMARY VACATION OF PORTIONS OF THE NAPA AVENUE RIGHT-OF-WAY NOT REQUIRED FOR STREET PURPOSES the City Council City of Morro Bay, California WHEREAS, on July 8, 1938 the Morro Bay Union Grammar School granted a right-of-way for public street purposes adjacent to Morro Elementary School in the community of Morro Bay via 241 O.R. 431 to the County of San Luis Obispo; and WHEREAS, the San Luis Coastal Unified School District (hereinafter "District") is the successor to the Morro Bay Union Grammar School and the City of Morro Bay (hereinafter "City") became the successor to the County of San Luis Obispo upon incorporation on July 24, 1964; and WHEREAS, on December 29, 1966 the District quitclaimed real property to the City for public street purposes adjacent to Morro Elementary School via 1420 O.R. 596; and WHEREAS, these two actions provided for Napa Avenue and a portion of Monterey Avenue adjacent to Morro Elementary School; and WHEREAS, the District has requested the City to vacate portions of the right-of-way; and WHEREAS, the City Council, City of Morro Bay, has determined that Napa Avenue adjacent to Morro Elementary School constitutes an excess right-of-way not required for street purposes, • pursuant to Section 8334 of the State of California Streets and Highways Code; and WHEREAS, the City Council, upon recommendation of the Planning Commission, has further determined that vacation of this portion of Napa Avenue is consistent with the General Plan; and WHEREAS, a legal description has been prepared for the portion subject to summary vacation, attached as Exhibit "A." NOW THEREFORE, BE IT RESOLVED by the City Council, City of Morro Bay, that portion of Napa Avenue described in Exhibit "A" is hereby summarily vacated pursuant to Section 8335 of the Streets and Highways Code and that, upon recordation of this Resolution, will no longer constitute a public street, excepting and reserving pursuant to Section 8340 of said Code however, the following: -to Pacific Gas and Electric Company the right from time to time to install, maintain, repair, operate, replace, remove and renew fines of wires, poles and other structures, equipment and fixtures above ground for the operation of said facilities in said road; and -for the benefit of Pacific Bell, the permanent easement and the right at any time or time to time to construct, maintain, operate, replace, remove, renew and enlarge lines of pipe, conduits, cable, wires, poles and other convenient structures, equipment and fixtures for the operation of telegraphic and telephone lines and other communication facilities, including access and the right to keep the property free from inflammable materials and wood growth, and otherwise protect the same from all hazards, in, upon, over and across that portion of. and 9 Page I of 2 • BE IT FURTHER RESOLVED, the City Clerk is authorized and directed, pursuant to Section 8336 of the Streets and Highways Code, to cause the recordation of this resolution. PASSED AND ADOPTED by the City Council at a regular meeting thereof held on the 9th day of March, 1998 by the following vote: AYES: Anderson, Elliott, Peirce, Peters, Novak NOES: None ABSENT: None ABSTAIN: None CATHY NOVAK, Mayor ATTEST: • CL AIM VJAAAI/ -Z BRIDGETt BAUER, City Clerk 0 page 2 of 2 • EXHIBIT A BEING PORTIONS OF THOSE CERTAIN PARCELS OF LAND IN THE CITY OF MORRO BAY, COUNTY OF SAN LUIS OBISPO, STATE OF CALIFORNIA, CONVEYED TO THE COUNTY OF SAN LUIS OBISPO PER THE DEED RECORDED ON JULY 8, 1938, IN BOOK 241 OF OFFICIAL RECORDS AT PAGE 431, AND CONVEYED TO THE CITY OF MORRO BAY PER THE DEED RECORDED ON DECEMBER 29, 1996, IN BOOK 1420 OF OFFICIAL RECORDS AT PAGE 596, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY, AND BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS: COMMENCING AT THE INTERSECTION OF THE SOUTHERLY LINE OF LOT 10 OF THE SUBDIVISION OF A PORTION OF THE RANCHO SAN BERNARDO PER THE MAP RECORDED JANUARY 5, 1907, IN BOOK 1 OF MAPS AT PAGE 6, RECORDS OF SAID COUNTY, AND THE EASTERLY LINE OF D STREET PER THE MAP OF TRACT NO. 2, RECORDED APRIL 18, 1931, IN BOOK 5 OF MAPS AT PAGE 20, RECORDS OF SAID COUNTY; THENCE, ALONG SAID SOUTHERLY LINE, NORTH 62°33'00" WEST, 477.72 FEET TO THE INTERSECTION OF SAID SOUTHERLY LINE WITH THE WEST LINE OF C STREET OF SAID TRACT NO. 53; THENCE, ALONG THE EASTERLY LINE OF SAID TRACT NO. 53, NORTH 27027'00" EAST, 111.98 FEET TO THE MOST NORTHERLY CORNER OF SAID PROPERTY CONVEYED IN BOOK 241 OF OFFICIAL RECORDS AT PAGE 431; THENCE, ALONG THE NORTHEASTERLY LINE OF SAID PROPERTY, SOUTH • 62025'00" EAST, 217.50 FEET TO THE BEGINNING OF A CURVE CONCAVE TO THE SOUTHWEST AND HAVING A RADIUS OF 230.00 FEET; THENCE, CONTINUING ALONG SAID NORTHEASTERLY LINE, SOUTHEASTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 160'33'00" AND AN ARC LENGTH OF 66.40 FEET; THENCE, CONTINUING ALONG SAID NORTHEASTERLY LINE OF SAID PROPERTY, SOUTH 45052'00" EAST, 20.11 FEET TO THE BEGINNING OF A CURVE CONCAVE TO THE SOUTHWEST AND HAVING A RADIUS OF 350.00 FEET; THENCE, CONTINUING ALONG SAID NORTHEASTERLY LINE, SOUTHEASTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 5015'49" AND AN ARC LENGTH OF 32.15 FEET TO THE NORTHEASTERLY LINE OF SAID PROPERTY CONVEYED IN BOOK 1420 OF OFFICIAL RECORDS AT PAGE 596; THENCE, ALONG SAID NORTHEASTERLY LINE OF SAID PROPERTY ALONG A CURVE CONCAVE TO THE SOUTHWEST AND HAVING A RADIUS OF 125.00 FEET, TO WHICH POINT A RADIAL BEARS NORTH 29042'29" EAST; THENCE, SOUTHEASTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 59023'41" AND AN ARC LENGTH OF 129.58 FEET TO A POINT ON THE NORTHERLY PROLONGATION OF THE EASTERLY LINE OF SAID D STREET, THENCE, ALONG SAID NORTHERLY PROLONGATION, SOUTH 0053-40" EAST, 10.62 FEET TO THE POINT OF COMMENCEMENT. • EXCEPT THAT PORTION THEREOF LYING WESTERLY OF THE FOLLOWING DESCRIBED LINE: Sheet 1 of 2 Sheets • COMMENCING AT THE INTERSECTION OF THE SOUTHERLY LINE OF SAID LOT 10 AND THE EASTERLY LINE OF D STREET OF SAID TRACT NO. 53; THENCE, ALONG SAID SOUTHERLY LINE, NORTH 62033'00" WEST, 386.84 FEET TO THE INTERSECTION OF SAID SOUTHERLY LINE WITH THE EAST LINE OF C STREET OF SAID TRACT NO. 53, SAID POINT ALSO BEING THE POINT OF BEGINNING; THENCE NORTH 21 ° 19'33" WEST, 85.22 FEET TO A POINT ON THE SOUTHERLY PROLONGATION OF THE EAST LINE OF C STREET OF SAID TRACT NO. 53, SAID POINT ALSO NOTED AS BEING THE BEGINNING OF THE TANGENT CURVE OF 20.00 RADIUS DESCRIBED IN PARCEL 1 OF SAID PROPERTY CONVEYED IN BOOK 1420 OF OFFICIAL RECORDS AT PAGE 596; THENCE NORTH 0°34'00" WEST, 57.00 FEET TO THE INTERSECTION OF THE EAST LINE OF SAID TRACT NO. 53 AND THE EAST LINE OF SAID C STREET OF SAID TRACT NO. 53 AND THE TERMINUS OF THIS DESCRIPTION. SEE EXHIBIT "B" ATTACHED HERETO AND MADE A PART HEREOF. F� kAND SCR JOHN R. SANDERS DATE o�� N?' L.S.5812 EXP.6/30/2000 • 4c EXP. - 00 No. 5812 Q �lgTE OF CAl\F���\ X:\RAL\MORROBAY\97175.LGL FEBRUARY 12, 1998 • Sheet 2 of 2 Sheets EXHIBIT B • L y \ INTX. E'LY LINE TRACT 53 & E'LY LINE C STREET E'LY LINE TRACT 53� \INTX. SWLY LINE LOT 10 RHO SAN BERNARDO & \ WLY LINE C STREET � PJ� / NgFR�No �,0 gyp'( P • S'LY LINE LOT 10 INTX. S'LY LINE LOT 10 RHO SAN BERNARDO & WLY LINE D STREET m 0• U m x w N w N'LY PROLONGATION E'LY LINE D STREET 0 30' 60' 120' � l6mmmmmmmi SCALE: 1"=60' AREA OF VACATION POINT OF COMMENCEMENT (INTX. S'LY LINE LOT 10 RHO SAN BERNARDO & E'LY LINE D STREET) & POINT OF COMMENCEMENT OF EXCEPTION JOB. NO 97-175 RESOLUTION NO. 19-98 • RESOLUTION IN SUPPORT OF ASSEMBLY BILL 2544 AN ACT RELATING TO COMMERCIAL FISHING, AND DECLARING THE URGENCY THEREOF, TO TAKE EFFECT IMMEDIATELY THE CITY COUNCIL City of Morro Bay, California WHEREAS, the commercial fishing industry is one of the City of Morro Bay's top priorities as identified in its Local Coastal Plan; and WHEREAS, the commercial fishing industry contributes to City of Morro Bay's economic well being; and WHEREAS, the commercial fishermen provide a high quality, nutritious, and desirable food source to the public; and WHEREAS, the commercial fishermen have suffered severe business losses and other damage as a result of recurring storm conditions caused by El Nino ; and • WHEREAS, Mayor Novak worked with Assemblyman Bordonaro creating legislation to help the California commercial fishermen; and WHEREAS, Assemblyman Bordonaro has introduced Assembly Bill 2544; and WHEREAS, Assembly Bill 2544 reads as follows: "THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. (a) Notwithstanding any other provision of law, a valid commercial fishing license or permit issued by the Department of Fish and Game for the 1997-98 fishing season only, that has not been revoked or suspended, shall not expire until July 1, 1998. (b) Notwithstanding any other provision of law, the annual fee for a commercial fishing license or permit issued by the department for the 1998-99 fishing season, shall be paid on or before July 1, 1998. SECTION 2. This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the Constitution and shall go into immediate effect. The facts constituting the necessity are: In order to afford relief to commercial fishermen in California who have suffered business losses and other damage • due to the recurring storm conditions in this state caused by El Nino, it is necessary for this act to take effect immediately."; and Resolution No. 19-98 • Page Two WHEREAS, the Morro Bay Commercial Fisherman's Organization supports AB 2544 and will become a sponsor of this bill. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Morro Bay, California, hereby finds AB 2544 benefits the commercial fishermen. BE IT FURTHER RESOLVED that the City Council of the City of Morro Bay, California, supports AB 2544 as introduced by Assemblyman Bordonaro and wishes to be included as a sponsor of the bill. PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting thereof held on the 23rd day of February, 1998 on the following vote: AYES: Anderson, Elliott, Peirce, Peters, Novak NOES: None • ABSENT: None Cathy Novak, Mayor ATTEST: BRIDGETTtbAUER, City Clerk u 02/20/98 2:14 PM • 14994 RN9805984 PAGE 1 AQ -)�SAq nAIVITH""'S COffi'hA An act relating to commercial fishing, and declaring the urgency thereof, to take effect immediately. • 0 • 14994 C 0 02/20/98 2:14 PM RN9805984 PAGE 2 THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. (a) Notwithstanding any other provision of law, a valid commercial fishing license or permit issued by the Department of Fish and Game for the 1997-98 fishing season only, that has not been revoked or suspended, shall not expire until July 1, 1998. (b) Notwithstanding any other provision of law, the annual fee for a commercial fishing license or permit issued by the department for the 1998-99 fishing season, shall be paid on or before July 1, 1998. SEC. 2. This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the Constitution and shall go into immediate effect. The facts constituting the necessity are: In order to afford relief to commercial fishermen in California who have suffered business losses and other damages due to the recurring storm conditions in this state caused by E1 Nino, it is necessary for this act to take effect immediately. J • 02/20/98 2:14 PM 14994 RN9805984 PAGE 1 • is AURiUR'S COPY LEGISLATIVE COUNSEL'S DIGEST Bill No. as introduced, Bordonaro. General Subject: Commercial fishing: licenses. Existing law requires any person who takes fish or amphibia for commercial purposes, as specified, to obtain a commercial fishing license or permit issued by the Department of Fish and Game. Under existing law, the license or permit is generally valid for one year, as specified, and the holder of the license or permit is required to pay an annual fee to the department prior to a specified date in order to renew the license or permit. This bill would provide that a commercial fishing license or permit issued by the department for the 1997-98 fishing season only, which has not been revoked or suspended, shall not expire until July 1, 1998. The bill would also provide that the annual fee for a commercial fishing license or permit for the 1998-99 fishing season shall be paid on or before July 1, 1998. 14994 02/20/98 2:14 PM RN9805984 PAGE 2 The bill would declare that it is to take effect immediately as an urgency statute. Vote: 2/3. Appropriation: no. Fiscal committee: yes. State -mandated local program: no. • 0 • RESOLUTION NO. 18-98 A RESOLUTION APPROVING AGREEMENT TO EXTEND TIME TO CONSIDER TRANSFER REQUESTS, AND PROVIDING FOR DENIAL OF THE TRANSFER REQUESTS IF THE AGREEMENT 1S NOT TIMELY SIGNED THE CITY COUNCIL City of Morro Bay, California WHEREAS, on February 27, 1986, the City of Morro Bay entered into an agreement with Sonic Cable Television of Northern California, pursuant to which the City of Morro Bay granted Sonic Cable Television of Northern California ("Sonic") a franchise to operated a cable television system in the City of Morro Bay; and WHEREAS, Sonic is wholly owned by Sonic Communications, Inc. ("SCI") which is in turn wholly owned by Sonic Enterprises, Inc. ("SEI"); and WHEREAS, Sonic, Sonicvest and CCP (the "Requesting Parties") have asked the City of Morro Bay to approve (1) a transaction that will ultimately result in an assignment of SEI's shares • to Sonicvest, and (2) an additional transaction that will result in a sale of assets from Sonicvest to Charter Communications, L.L.P. ("CCP"), and thereby result in a change of control to the franchise from the Sonic to CCP more fully described in FCC Form 394s submitted to the City of Morro Bay on or about September 29, 1997 (collectively, the transactions are referred to as the "Transfer"); and WHEREAS, as of the date of this Resolution, the City of Morro Bay does not have sufficient information before it that would enable it to act favorably on the request to approve the Transfer and there are outstanding issues that would need to be resolved in order to ensure that the City of Morro Bay and the public are not adversely affected by the Transfer; and WHEREAS, on January 12, 1998 the City Council, upon the request of the Requesting Parties, authorized the City Manager to enter into an agreement which extended the time for the City to act upon the Transfer until February 20, 1998 and subsequent to that time an additional extension was granted until March 9, 1998; and WHEREAS, the Requesting Parties and the City of Morro Bay believe that it is appropriate to provide additional time for the City of Morro Bay to act upon the Transfer beyond that date, and it is therefore appropriate to provide for such extension. NOW, THEREFORE BE IT RESOLVED, by the City Council of the City of Morro Bay: • Section 1: The City Manager is authorized to enter into an agreement substantially in the form of Exhibit A to this Resolution. • • Section 2: If Sonic, Sonicvest, or CCP fails to sign the agreement by noon on April 21, 1998, the requests for approval of the transactions that constitute the Transfer shall be deemed denied as of the date of this Resolution. PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting thereof held on the 9th day of March, 1998 by the following vote: AYES: Anderson, Elliott, Peirce, Peters, Novak NOES: None ABSENT: None ABSTAIN: None CATHY 140VAK, Mayor ATTEST: BRIDGETTTAUER, City Clerk Resolution No. 18-98 Approving Agreement to Extend Time to Consider Transfer Requests, and Providing for Denial of the Transfer Requests if the Agreement is not Timely Signed n u n LJ 1*14: 11 .13 k W.1 AGREEMENT FOR EXTENSION OF TIME Extension Agreement Number Three The City of Morro Bay, Sonic Cable Television of Northern California ("Sonic'), Sonicvest and Charter Communications, L.L.P. ("CCP") hereby agree as follows: Sonic, Sonicvest and CCP and the City of Morro Bay agree that the time for acting upon the transfer requests that were submitted to the City of Morro Bay shall be extended through and including April 21, 1998. Sonic, Sonicvest and CCP represent and warrant that they are each authorized to enter into this agreement and to extend the time for acting on the transfer, without the action or approval of any other party. , This document may be executed in multiple counterparts, and by the parties hereto on separate counterparts, and each counterpart, when executed and delivered, shall constitute an original agreement enforceable against all who signed it without production of, or accounting for, any other counterpart, and all separate counterparts shall constitute the same agreement. F City of Morro Ba yy s4 3-W -19 David J. Col Manager Date Approved as to Form David Hunt, City Attorney Date For Sonic Cable Television of San Luis Obispo By Its: For Sonicvest By: Its: Date Date For Charter Communications, L.L.P. By: Its: Date MAR-02-98 16=36 FROM:CHARTER COMMUNICATIONS ID:3149656640 PACE 1/1 • • • COHARTER March 2, 1998 Mr. David Cole Manager/Administrator City of Morro Bay 595 Harbor Morro Bay, CA 93442 Re: Transfer of Cable Television Franchise, FCC Form 394 Dear Mr. Cole: Please be advised that on behalf of Charter Communications, the City of Morro Bay is hereby granted an extension of time up to and including April 21, 1998 upon which to review the FCC Form 394's submitted by Charter Communications. TMF:smf cc: Jim Bogart Sue Buske Suzanne Fryer Sincerely, Tr di McCollu Foushee Vice Pre 'd t and Senior Counsel Law and Regulatory Affairs maw,,.,,,,.......,....,..-..-..,....... 12444 Powerscourt Drive • Suite 400 • St Louis, Missouri 63131-3660 • (314)965.0555 - Fax (314)965-6640 - Internet htrp:\\WW N.chartercom.com WARREN A. SINSHEIMER III ROBERT K. SCHIEBELHUT K. ROBIN BAGGETT MARTIN J. TANGEMAN yTHOMAS M. DUGGAN 4ARTM P. MOROSKI DAVID A. IUHNKE STEVEN 1. ADAMSKI THOMAS D. GREEN M. SUZANNE FRYER THOMAS 1. MADDEN III SUSAN S. WAAG MICHELLE A. ROSSETTI STEVEN M. CHANLEY MARIA L. HU KfN RYAN S. BEZERRA LINDA SOMERS SMITH SINSHEIMER, SCHIEBELHUT & BAGGETT Mr. Dave Howell Manager/Administrator City of Morro Bay 595 Harbor Morro Bay, California 93442 ATrORNEYSATLAW POST OFFICE BOX 31 SAN LUIS OBISPO, CALIFORNIA 93406-0031 805-541-2800 February 27, 1998 Re: Extension of Time for Consideration of Transfer Dear Mr. Howell: STREET ADDRESS 1010 PEACH STREET FACSIMILE 805-541-2802 CLIENT: 0133222 ""AN As you know, this firm represents Sonic Cable Television of San Luis Obispo ("Sonic"). Sonic has authorized this firm to grant the City of Morro Bay (the "City") an extension of time up • to and including April 21, 1998, in which to consider the FCC Form 394's submitted by Charter Communications and Sonic. Accordingly, the City is hereby granted an extension of time up to and including April 21, 1998, to consider the FCC Form 394's filed by Charter Communications and Sonic. MSF:jlm G:\GENER.kL\LTR\SONIgCHARTER\46HOVIELL.227 cc: Sue Buske (via telecopy) 0. Very truly yours, SINSHEIMER, SCHIEBELHUT & BAGGETT M. S A E FRY C� 11 9 CITY COUNCIL RESOLUTION NO. 17-98 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, AMENDING THE OPERATING AND CAPITAL IMPROVEMENT BUDGETS AND MAKING SUPPLEMENTAL APPROPRIATIONS FOR FISCAL YEAR 1997-98 FOR THE CITY OF MORRO BAY THE CITY COUNCIL City of Morro Bay, California WHEREAS, the City of Morro Bay is required to appropriate and expend public funds to conduct its business activities on a day-to-day basis; and WHEREAS, the City Council finds and determines that the efficiency, economy and effectiveness of City govemment operations would be substantially impaired if such appropriation were not made; and WHEREAS, Section 37208 of the California Government Code provides that payments or demands conforming to a budget approved by ordinance or resolution need not be audited by the City Council prior to payment; and WHEREAS, the City Council adopted the original Operating and Capital Improvement Budgets on June 9, 1997 by adoption of Resolution No. 42-97; and WHEREAS, the City Council adopted City Council Resolution 05-98 on January 12, 1998, amending the Operating and Capital Improvement Budgets; and WHEREAS, the City Council finds it necessary to further amend said budgets. NOW THEREFORE, BE IT RESOLVED that the operating budgets of the City of Morro Bay are amended by modifying appropriations as shown on the attached summary schedule. PASSED, APPROVED, AND ADOPTED, by the City Council of the City of Morro Bay, on the 23rd day of February, 1998, by the following vote to wit: AYES: Anderson, Elliott, Peirce, Peters, Novak NOES: None ABSENT: None DGATT BAUER, CAT14Y NOVAK, Mayor City Council Resolution No 17-98 Page 1 • City of Morro Bay - Finance Department Summary of Mid -Year Budget Adjustment Requests Fiscal Year 1997-98 Ref No. BYFUND Manager City Council Recommends Approves 001 3520 4110 ( 11 ) Regular Salaries (F/T Computer Svcs Coord.) 4,200 4,200 001 3110 4110 ( 1 ) Regular Salaries Accrued Vacation - Howell 21,800 21,800 001 3140 4310 ( 13) Part -Time Pay (increase hrs of Adm Tech to 3/4) 0 0 001 6140 4310 ( 7 ) Part-time Pay (Interim Rec Supv) 5,000 5,000 001 3110 4910 ( 2 ) Employer Paid Benefits 3,450 3,450 001 3520 4910 ( 11) Employer Benefits (F/T Computer Svcs Coord) 1,700 1,700 001 3140 4910 ( 13) Employer Pd Ben (incr his of Adm Tech to 3/4) 0 0 001 3520 5175 ( 11) Computer operating Supplies (Uninter Power Suppl) 550 550 001 4210 5199 ( 34) Misc Oper Supplies (Phone Upgrade/Supplies-EOC) 3,540 3,540 001 5210 6104 ( 17) Engineering Services (Developmt Plan Cks) 13,000 13,000 001 5110 6106 ( 4 Contractual Services (Contract Plan Check & Insp.) 72,517 72,517 O01 5270 6106 ( 22) Contractual Services (RALCCO - incr # of Custome i 3,700 3,700 001 5230 6106 ( 31 ) Contractual Services (Monterey 2 way traffic toner) 0 0 001 7230 6199 ( 30) Professional Services (Spay/Neuter supplement) 0 0 001 2110 6199 ( 20) Other Professional Services( AGP Contract -Video) 3,995 3,9 55 001 6160 6601 ( 9 ) Outside Equip Repair (Trucks & Mowers) 2.000 2,000 001 6160 6602 ( 9) Outside Struct Repairs (Keiser BBO/Del Mar Hshoe) 2,000 2,000 001 5230 6603 ( 21 ) Outside Grounds Repair (removal of dead trees) 20,000 20,000 001 5210 6640 ( 17) Maintenance Contracts (Xerox & Fax machines) 700 700 001 3140 6760 ( 13) Recruitment (Employee Recruitment Expense) 1,000 1,000 001 6130 6812 ( 6 ) Space Rental (SLCUSD Fees Pool & Gym) 4,000 4,000 001 5265 7204 ( 19) Oth Vehicle Acquisition (Local Matching ShareTrolle) 0 0 001 4210 7302 ( 34 ) Equipment Acquisition (Emergency Generator-EOC) 0 0 001 4110 7302 ( 15 ) Equipment Acquisition (Traveller Advis Radio) 10,000 10,000 001 6160 7302 ( 8 ) Equipment Acquisition Concrete Picnic Tables) 3,174 3,174 001 3520 7310 ( 11 ) Office Furniture (Comp Svc Coord Desk & Bookcase 500 500 001 7710 8540 ( 33 ) Transfer to CIP Fund (Cardiac Monitor/Defib) 10,000 10,000 001 7710 8540 ( 24 ) Transfer to Capital Fund (Mimosa Close -Out) 5,000 5,000 001 001 7710 7710 8540 8540 ( 27 ) ( 3 ) Transfer to CIP (98-07 sidewalk replacement) 15,000 15,000 Transfer To CIP Fund(CIP 98-23 R/UDAT Poster) 0 0 001 7710 8540 ( 28 ) Transfer to CIP Fund CIP 98-12 Yerba Buena Light 95,700 95,700 001 T710 8540 ( 18 ) Transfer To Enterprise Fund (DAR Local Share) 10,000 10,000 001 7710 8540 ( 26 ) Transfer to CIP (98-10 residential street overlay) 30,000 30,000 001 7710 8590 ( 10 ) Transfer to Trust & Agency Fd (No. Point A.D.) 645 645 001 4110 8721 ( 14 Payments to Oth Agcy (CLETS Computer System) 3,300 T3 00 001 4210 8999 35 ) Budget cut (Non -Specific) 0 0 001 5110 8999 ( 4 ) Budget Cut (Non -Specific ) Eliminate Budget Cut 0 0 001 Various Various ( 48 ) City Council Resolution No. 05-98 46,150 46,150 001 5210 6106 ( 49 ) Contractual Services (Burke Group - Cable Trfr) 1,500 1,500 394,121 394,121 001 3510 3017 ( 42 ) Property Tax - Homeowners Exemptions 6.000 6,000 001 3510 3061 ( 43 ) Property Transfer Tax 5,000 5.000 001 3510 3064 ( 47 ) Transient Occupancy Tax 25,000 25,000 001 3510 3101 ( 36 ) General Business License 6,000 6,000 001 3510 3220 ( 44 ) Motor Vehicle In -Lieu 22,803 22,803 001 4110 3229 ( 37 ) Ca COPS Program (190) (190 001 5230 3301 ( 28 ) State/Federal Grant Cap Im rovemt erba Buena 95,700 95,700 001 4110 3391 ( 37 ) Other Grants Public Services Grant not Funded) 9,000 (9,000 001 6140 3391 ( 7 ) Other Grant For Public Svc. (CSAP Grant Fund 515) 5,000 5,000 001 4210 3393 ( 40 ) Nuclear Panning Assistance DCNPP) 3,000 3,000 001 5210 3420 ( 17 ) Design Review Fees (Developmt Plan Cks) 13.000 13.000 001 4210 3426 ( 39 ) Plan Checking Fees 4,560 4.560 001 5110 3426 ( 4 Plan Checking Fees 95,000 95,000 001 5110 3427 ( 4 ) Building Inspection Fees 45,000 45.000 001 3520 3499 ( 11 ) Revenue Current Services Com Svc Coord Arroyo 3.200 3.200 001 3510 3730 ( 45 ) Rental Income 5,000 5,000 001 7710 3820 ( 32 ) Transfer From Spec Rev Fund(Gas Tax) 12,374 12,374 001 7710 3860 ( 15 ) Transfer From Enterprise Fd Harbor - Tray. Adv) 2,000 2,000 001 6160 3880 ( 8 ) Transfer from Fund 565 (North Point AD Reimb) 3,174 3,174 oounmybd.WK4 02/18/1998 02:37:26 PM City Council Resolution No 17.98 Page 2 City of Morro Bay - Finance Department is Summary of Mid -Year Budget Adjustment Requests Fiscal Year 1997-98 Ref No. BYFUND Manager City Council Recommends Approves 001 3510 3905 ( 46 ) Bad Debts Written Off 6,500 6,500 001 4210 3913 ( 38 ) Sale of Discarded Assets (Haz Mat Vehicle) 45,000 45,000 394,121 394,121 201 7710 8540 ( 5 ) CIP 98-01 (LCP/Gen Plan Update) From Fund 201 45,000 45,000 45,000 45,000 250 7710 8510 ( 32 ) Transfer to Gen Fund (Gas Tax) 12,374 12,374 12,374 12,374 250 5230 3211 ( 32 ) Gas Tax -Section 2105 Correction from State 94/95 12,374 12,374 12,374 12,374 301 5261 6105 ( 29 ) Consulting Services (Sustainable Transit Study Gra ) 10,000 10,000 301 5261 72D4 ( 18 ) Oth Vehicle Acquisition (Local Matching Share DAR 10,000 10,00020,000 20,000 301 5261 3810 ( 18 ) Transfer From Gen Fund (DAR Local Share) 10,000 10,000 301 5261 3371 ( 29 State Grant Pub Svc (Slocog sustain trans study) 10.000 10,000 20,000 20,000 ANk 311 5240 6106 ( 23 ) Contractual Services (Office Renovation-Oper Mgr.) 7,000 7,000 311 311 5240 5240 6106 7311 ( 16 ) Contractual Services (Pers Svc Credit - Ramos) 34,226 34,226 ( 23 ) Office Equipment(Computer Control System SCADA 6,750 6,750 47,976 47,979 311 5240 3454 ( 41 ) Water Services (Elimination of Spec Rates) 16,250 16,250 311 fill 3860 ( 25 ) Transfer From Enterprise Fund(Bal of 96-36 Compl) 8,160 8,160 311 fill 3860 ( 23 ) Transfer From Enterprise Fund(Water-Kings Tank) 13,750 13,750 38,160 38,160 321 5251 7311 ( 23 ) Office Equipment(Computer Control System SCADA 1 5,700 5,700 5,700 5,700 321 7710 3830 ( 23 ) Transfer From CIP Fund(952) (SCADA Computer C n) 5,700 5,700 5,700 5,700 331 6510 8510 ( 12 ) Transfer to Gen Fund (Traveler's Advisory Radio) 2,000 2,000 331 6510 7302 ( 12 ) Equipment Acquisition (Handheld Radios) 2,500 2,500 4,500 4,500 331 6510 3990 ( 12 ) Misc Revenues (PG & E Refund of Lease Payment) 4,500 4,500 4,500 4,500 565 6162 8510 ( 8 ) Transfer to General Fund From No. Pt. A.D.) 3,174 3,174 3,174 3,174 565 6162 3018 ( 10) Property Taxes (Council reduction of Assessment) 645 (645 counmybd.WK4 02/17/1998 01:37:14 PM City Council Resolution No 17-98 Page 3 • City of Morro Bay - Finance Department Summary of Mid -Year Budget Adjustment Requests Fiscal Year 1997-98 Ref No. BYFUND Manager City Council Recommends Approves 565 6162 1 3810 ( 10 ) Transfer From Gen Fund (Make-up for Reduced Ass ss 645 645 0 0 902 7230 6106 ( 24 ) Contractual Services(District Close -Out Expenses) 5,000 5,000 5,000 5.000 902 7710 3810 ( 24 ) Transfer From General Fund (Dist Close -Out) 5,000 5,000 5,000 5,000 911 9823 3810 ( 3 ) Transfer from General Fund (R/UDAT) 0 0 911 9801 3371 ( 5 ) CIP 98-01 (LCP/Gen Plan Update) Grant from State 65,000 65.000 911 9812 3810 33 Transfer From Gen Fund (Cardiac Monitor) 10,000 10.000 911 9801 3820 ( 5 ) CIP 98-01 (LCP/Gen Plan Update) From Fund 201 45,000 45,000 911 9812 3810 ( 28 ) Transfer From GF(CIP 98-12 Yerba Buena Light) 95,700 95,700 911 9810 3810 ( 26 ) Transfer From GF(98-10 residential street overlay) 30,000 30,000 911 9807 3810 ( 27 ) Transfer to CIP (98-07 sidewalk replacement) /5,000 15,000 260,700 260,700 911 9810 6106 ( 26 ) Resid Street Overlay 30,000 30,000 911 9807 6106 ( 27 ) Sidewalk Replacement Program 15,000 15,000 911 9812 6106 ( 28 ) Contractual Services(CIP 98-12 Yerba Buena Light) 95,700 95,700 911 9801 6106 ( 5 ) CIP 98-01 Update Gen Plan/L.C.P. 110,000 110.000 911 9823 6107 ( 3 CIP 98-23 (R/UDAT Posters/Concrete Disp) 0 0 911 9822 7302 ( 33 ) Equipment Acquisition Cardiac Monitor/Defib) 10,000 10,000 911 911 9636 9602 8570 8570 ( 25 ) 23 ) Transfer to Enterprise Fund(Bal 96-36 Pres Red Val) Transfer to Enterprise Fund(King's Tank 2 Water Fd) 8,160 8.160 13,750 13,750 282,610 282,610 952 7710 8540 23 ) Transfer to Enterprise Fund (SCADA Computer Con 5.700 5, 000 5,700 5,700 11 counmybd.WK4 02(17/1998 01:37:15 PM EXHIBIT A (PAGE 1 OF 4) EXPPRIN2 CITY OF MORRO BAY PAGE 136 �/98 08:19:56 EXPENDITURE RECAP REPORT DECEMBER 1997 DESCRIPTION ADJUSTED DECEMBER 1997-98 ENCUMB. BALANCE f USED APPROP EXPEND EXPEND 001-2110 CITY COUNCIL 75,915.00 4,695.76 27,415.50 .00 48,499.50 36.1 001-3110 CITY ADMINISTRATOR'S OFFICE 182,628.00 23,141.35 97,962.54 .00 84,665.46 53.6 001-3120 ELECTIONS .00 .00 .00 .00 .00 •`• 001-3140 PERSONNEL/RISK MANAGEMENT 124,149.00 8,150.55 50,925.82 .00 73,223.18 41.0 001-3170 COMMUNITY PROMOTIONS 66,500.00 3,807.88 11,166.43 .00 55,333.57 16.8 001-3210 CITY ATTORNEY'S OFFICE 50,000.00 11,438.23 55,988.21 .00 5,988.21- 112.0 001-3510 ACCOUNTING & TREASURY 376,254.00 26,543.00 171,121.28 .00 205,132.72 45.5 001-3520 INFORMATION SERVICES 38,375.00 1,995.37 19,307.27 .00 19,067.73 50.3 001-4110 POLICE DEPARTMENT 1,B30,628.00 139,079.95 899,264.47 .00 931,363.53 49.1 001-4210 EMERGENCY SERVICES 956,181.00 69,993.69 501,409.42 .00 454,771.58 52.4 001-4220 FIRE PREVENTION .00 .00 .00 .00 .00 "• 001-5110 PLANNING & BUILDING DEPARTMENT 358,848.00 32,944.98 190,409.88 .00 168,438.12 53.1 001-5130 PLANNING COMMISSION 4,400.00 25.00 536.26 .00 3,863.74 12.2 001-5210 ENGINEERING & ADMINISTRATION 344,122.00 28,836.48 187,085.64 .00 157,036.36 54.4 001-5220 VEHICLE MAINTENANCE 61,086.00 3,626.65 29,813.85 .00 31,272.15 48.8 001-5230 STREET MAINTENANCE 314,222.00 16,919.83 139,132.24 .00 175,089.76 44.3 001-5265 TROLLEY 14,100.00 126.20 7,955.47 .00 6,144.53 56.4 001-5270 CURBSIDE RECYCLING 81,10B.00 7,030.50 37,192.50 .00 43.915.50 45.9 0 6110 R & P ADMINISTRATION 141,657.00 9,695.98 67,734.97 .00 73,922.03 47.8 120 RECREATION COMMISSION 200.00 .00 40.11 .00 159.89 20.1 0 -6130 R & P SPORTS 162,930.00 17,662.02 95,011.94 .00 67,918.06 58.3 001-6140 YOUTH SERVICES 133,993.00 11,240.13 88,700.55 .00 45,292.45 66.2 001-6150 R & P CITY FACILITIES 464,718.00 20,721.97 223,634.14 .00 241,083.86 48.1 001-6160 R & P PARKS 190,117.00 13,679.11 105,256.90 .00 84,860.10 55.4 001-7210 CITY FACILITIES 34,000.00 7,799.55 19,874.75 .00 14,125.25 58.5 001-7220 UTILITIES 67,300.00 5,719.60 30,584.06 .00 36,715.94 45.4 001-7230 CONTRACT SERVICES 110,450.00 7,787.50 53,553.33 .00 56,896.67 48.5 001-7240 STREET LIGHTING 74,700.00 6,151.00 30,744.B4 .00 43,955.16 41.2 001-7310 AID TO AGENCIES 6,975.00 .00 8,975.00 .00 .00 100.0 001-7710 INTERFUND TRANSACTIONS 55,963.00 .00 55,963.00 .00 .00 100.0 • GENERAL FUND 6,323,519.00 478,812.28 3,206,760.37 .00 3,116,758.63 50.7 202-5120 C.D.B.G. ADMINISTRATION .00 329.50 489.65 .00 489.65- - 203-5120 C.D.B.G. ADMINISTRATION .00 .00 .00 .00 .00 •.. 250-1111 UNDISTRIBUTED NON -DEPARTMENTAL .00 6,704.27- 49,374.73 .00 49,374.73- *'• 250-7710 INTERFUND TRANSACTIONS 197,584.00 56,079.00 56,079.00 .00 141,505.00 28.4 • STATE GAS TAX FUND 197,584.00 49,374.73 105,453.73 .00 92,130.27 53.4 280-1111 UNDISTRIBUTED NON -DEPARTMENTAL 20,000.00 4,813.55 6,224.43 .00 13,775.57 31.1 0230 CONTRACT SERVICES 3,000.00 .00 2,060.00 .00 940.00 68.7 301-5261 DIAL - A - RIDE 224,861.00 13,657.02 75,803.44 .00 149,057.56 33.7 301-5262 BIKEWAY PATHS .00 .00 .00 .00 .00 ••. EXHIBIT A (PAGE 2 OF 4) 1 EXPPRIN2 0/98 08:19:56 CITY OF MORRO BAY EXPENDITURE RECAP REPORT DECEMBER 1997 PAGE 137 DESCRIPTION ADJUSTED DECEMBER 1997-9B ENCUMB. BALANCE % USED APPROP EXPEND EXPEND 301-5265 TROLLEY .00 .00 .00 .00 .00 ••• 301-7710 INTERFUND TRANSACTIONS 55,372.00 .00 18,458.00 .00 36,914.00 33.3 • TRANSIT FUND 280,233.00 13,657.02 94,261.44 .00 165,971.56 33.6 311-3510 ACCOUNTING 6 TREASURY 19,500.00 704.57 4,613.31 .00 14,886.69 23.7 311-5240 WATER 3,209,568.00 336,613.92 662,899.68 .00 2,546,668.32 20.7 311-7710 INTERFUND TRANSACTIONS 426,727.00 10,500.00 249,688.00 .00 177,039.00 58.5 • WATER REVENUE FUND 3,655,795.00 347,818.49 917,200.99 .00 2,738,594.01 25.1 321-3510 ACCOUNTING 8 TREASURY 15,000.00 702.06 4,610.74 .00 10,389.26 30.7 321-5251 WASTEWATER COLLECTION 152,398.00 10,602.15 68,816.55 .00 83,581.45 45.2 321-7710 INTERFUND TRANSACTIONS 698,086.00 .00 62,255.00 .00 835,831.00 6.9 • WASTEWATER COLLECTION REV FUND 1,065,484.00 11,304.21 135,682.29 .00 929,801.71 12.7 331-6510 HARBOR DEPARTMENT 870,473.00 35,700.13 399,205.1E .00 471,267.82 45.9 510 3� DEBT SERVICE 131,527.00 .00 131,527.00 .00 .00 100.0 ' HARBOR OPERATING FUND 1,002,000.00 35,700.13 630,732.18 .00 471,267.82 53.0 332-6510 HARBOR DEPARTMENT .00 .00 .00 .00 .00 ••• 333-1111 UNDISTRIBUTED NON -DEPARTMENTAL .00 .00 .00 .00 .00 ••• 333-6510 HARBOR DEPARTMENT 4,000.00 .00 .00 .00 4,000.00 0.0 333-7510 DEBT SERVICE 4,000.00 .00 6,975.00 .00 2,975.00- 174.4 • CC1 SLIP FUND 8,000.00 .00 6,975.00 .00 1,025.00 87.2 441-7110 RISK MANAGEMENT/INSURANCE .00 .00 .00 .00 .00 ••• 441-7710 INTERFUND TRANSACTIONS .00 .00 .00 .00 .00 ••• • HEALTH s DENTAL RESERVE FUND .00 .00 .00 .00 .00 ••• 442-7110 RISK MANAGEMENT/INSURANCE .00 36,623.00 109,869.00 .00 109,869.00- ••• 443-7110 RISK MANAGEMENT/INSURANCE .00 .00 3,279.00 .00 3,279.00- ••• 444-5240 WATER .00 .00 .00 .00 .00 ••• 444-7110 RISK MANAGEMENT/INSURANCE .00 .00 312,222.21 .00 312,222.21- ••• • LIABILITY RESERVE FUND .00 .00 312,222.21 .00 312,222.21- •'• �110 RISK MANAGEMENT/INSURANCE .00 .00 5,157.00 .00 5,157.00- ••` 447-7110 RISK MANAGEMENT/INSURANCE .00 .00 19,806.00 .00 19,806.00- ••' 511-5230 STREET MAINTENANCE .00 .00 .00 .00 .00 `•• EXHIBIT A (PAGE 3 OF 4) EXPPRIN2 CITY OF MORRO BAY PAGE 138 0/98 08:19:56 EXPENDITURE RECAP REPORT DECEMBER 1997 DESCRIPTION ADJUSTED DECEMBER 1997-98 ENCUMB. BALANCE % USED APPROP EXPEND EXPEND 515-7710 INTERFUND TRANSACTIONS .00 .00 .00 .00 .00 ••• 550-1111 UNDISTRIBUTED NON -DEPARTMENTAL .00 .00 .00 .00 .00 ••• 550-7230 CONTRACT SERVICES .00 .00 2,021.89 .00 2,021.89- ••• 550-7510 DEBT SERVICE 12,480.00 .00 11,364.57 .00 1,115.43 91.1 • MIMOSA ST AD REDEMPTION FUND 12,480.00 .00 13,386.46 .00 906.46- 107.3 551-1111 UNDISTRIBUTED NON -DEPARTMENTAL .00 .00 1,383.10 .00 1,383.10- ••` 551-7510 DEBT SERVICE 16,800.00 .00 10,189.51 .00 6,610.49 60.7 • MIMOSA ST SUPP AD REDEMP FUND 16,800.00 .00 11,572.61 .00 5,227.39 68.9 560-6160 R s P PARKS .00 .00 .00 .00 .00 ••• 565-6160 R 6 P PARKS .00 .00 .00 .00 .00 ••• 565-6162 NORTH POINT PARK 5,645.00 .00 33.33 .00 5,611.67 0.6 • NORTH POINT ASSESSMENT DIST. 5,645.00 .00 33.33 .00 5,611.67 0.6 59S 1111 UNDISTRIBUTED NON -DEPARTMENTAL .00 .00 .00 .00 .00 ••• 599-5255 WASTEWATER TREATMENT 881,689.00 83,174.75 335,671.63 .00 546,017.37 38.1 599-7710 INTERFUND TRANSACTIONS .00 .00 .00 .00 .00 ••• ` MB-C WASTEWATER TREATMENT PLAN 881,689.00 83,174.75 335,671.63 .00 546,017.37 38.1 901-7510 DEBT SERVICE .00 .00 .00 .00 .00 901-7710 INTERFUND TRANSACTIONS .00 .00 .00 .00 .00 `•• ' MIMOSA ST SUPP AD-IMPROV FUND .00 .00 .00 .00 .00 ••` 902-7710 INTERFUND TRANSACTIONS .00 .00 .00 .00 .00 '•` 905-6510 HARBOR DEPARTMENT .00 .00 .00 .00 .00 ••• 911-7710 INTERFUND TRANSACTIONS .00 .00 .00 .00 .00 ••• 911-9604 MISC DOCK REPAIR/DERELICT VESS 15,000.00 1,602.43 15,379.47 .00 379.47- 102.5 911-9505 INTERIOR HARBOR DREDGING 150,334.00 .00 4,697.63 .00 145,636.37 3.1 911-9506 HARBOR PUBLIC BENCH/BIKE PATH 2,31B.00 .00 3,B02.40 .00 1,484.40- 164.0 911-9507 TIDELANDS/DUNES DOCK RECONST .00 .00 .00 .00 .00 ••• 911-9601 FINANCIAL SOFTWARE REPLACEMENT .00 .00 .00 .00 .00 '•' 911-9602 KINGS TANK ACQUISITION PROJECT 110,598.00 971.97 32,598.52 .00 77,999.48 29.5 911-9603 WATER EQUIPMENT REPLACEMENT 32,000.00 .00 1,866.15 .00 30,133.85 5.B 604 WATER MASTER PLAN 10,873.00 .00 2,900.00 .00 7,973.00 26.7 605 DISINFECTION FACILITY 81,477.00 .00 .00 .00 81,477.00 0.0 911-9606 CONSTRUCT HYDRO BUILDING 49,000.00 .00 .00 .00 49,000.00 0.0 911-9607 HARBOR ENTRANCE IMPROVEMENT 26,094.00 .00 .00 .00 26,094.00 0.0 EXHIBIT A (PAGE 4 OF 4) EXPPRIN2 CITY OF MORRO BAY PAGE 139 /9B 08:19:56 EXPENDITURE RECAP REPORT DECEMBER 1997 DESCRIPTION ADJUSTED DECEM13ER 1997-98 ENCUMB. BALANCE k USED APPROP EXPEND EXPEND 911-9608 TIDELANDS PARK PHASE III .00 .00 .00 .00 .00 ••• 911-9610 INTERIOR HABOR DREDGING .00 .00 .00 .00 .00 ••• 911-9611 COLEMAN DR BOAT LAUNCH RAMP .00 .00 .00 .00 .00 ••• 911-9612 HARBOR FRONT PARKING LOT .00 .00 .00 .00 .00 •" 911-9615 SEAFOOD PROCESSING PLANT 12,000.00 .00 7,428.56 .00 4,571.44 61.9 911-9622 STREET REPAIR/OVERLAY .00 .00 .00 .00 .00 "' 911-9623 PAINT ST. LEGENDS 4 STRIPING 9,001.00 .00 6,375.67 .00 2,625.33 70.8 911-9634 CHORRO CREEK REPLACEMENT PROJ .00 .00 157,636.23 .00 157,636.23- 911-9635 SOUTH BAY BLVD. PROJECT .00 .00 .00 .00 .00 •" 911-9636 PRESSURE REDUCING VALVE 8,160.00 .00 .00 .00 8,160.00 0.0 911-9637 WASTE WATER RECLAIMATION 30,037.00 .00 200.00 .00 29,837.00 0.7 911-9638 WATER ALLOCATION MODEL 3,819.00 .00 .00 .00 3,819.00 0.0 911-9701 SOUTH BAY BLVD. PHASE II .00 31,124.79 92,214.05 .00 92,214.05- ••• 911-9702 DESIGN/PEAS/COMM.FISHING SLIPS 9,000.00 .00 .00 .00 9,000.00 0.0 911-9703 ASHURST WELL FIELD STUDY 7,000.00 .00 2,142.00 .00 4,858.00 30.6 911-9704 CHORRO CREEK STREAM GAUGES 45,000.00 8,949.00 8,949.00 .00 36,051.00 19.9 911-9705 EMERGENCY GENERATOR 25,000.00 .00 .00 .00 25,000.00 0.0 911-9706 CATHODIC PROT. STORAGAE TANKS 12,400.00 .00 .00 .00 12,400.00 0.0 9 970] RECOAT BLACK HILL TANK 53,080.00 .00 55,240.87 .00 2,160.87- 104.1 708 CITYWIDE COMPUTER PHASE II 11,440.00 .00 13,942.85 .00 2,502.85- 121.9 9 -9709 PORTABLE OFFICE BUILDING .00 22.39 196.00 .00 196.00- •`• 911-9710 WASTE WATER REVENUE STUDY 11,900.00 .00 9,600.00 .00 2,300.00 60.7 911-9806 BLENDING PIPELINE .00 430.00 430.00 .00 430.00- •`• 911-9823 R/UDAT PROJECT .00 .00 2,5B4.44 .00 2,584.44- ••• 911-9824 STATE PARK ROAD PROJECT .00 .00 2,565.25 .00 2,565.25- '•` 911-9825 MAIN STREET BIKEPATH .00 3,901.16 4,133.66 .00 4,133.66- ••` • CAPITAL IMPROVEMENT PROJECT FD 715,531.00 47,001.74 424,882.75 .00 290,648.25 59.4 933-5120 C.D.B.G. ADMINISTRATION .00 .00 72,409.74 .00 72,409.74- ••• 952-7710 INTERFUND TRANSACTIONS .00 .00 .00 .00 .00 GRAND TOTALS 14,187,760.00 1,10B,609.40 6,314,129.81 .00 7,873,630.19 44.5 • EXHIBIT B (PAGE 1 OF 5) REVPRIN2 CITY OF MORRO BAY PAGE 138 0/98 08:20:55 REVENUE RECAP REPORT DECEhIDER 1997 DESCRIPTION ADJUSTED DECEMBER 1997-98 BALANCE k COI ESTIMATE REVENUE REVENUE 001-1111 UNDISTRIBUTED NON -DEPARTMENTAL .00 467,546.66 518,736.96 518,736.96- ••• 001-3110 CITY ADMINISTRATOR'S OFFICE 125.00 .00 10.35 114.65 8.3 001-3120 ELECTIONS .00 .00 .00 .00 001-3140 PERSONNEL/RISK MANAGEMENT 25.00 40.00- 25.00- 50.00 100.0- 001-3510 ACCOUNTING & TREASURY 4,662,485.00 337,641.29 1,840,182.57 2,822,302.43 39.5 001-3520 INFORMATION SERVICES .00 .00 77.65- 77.65 ••• 001-4110 POLICE DEPARTMENT 170,328.00 13,329.19 85,269.17 85,058.83 50.1 001-4210 EMERGENCY SERVICES 63,752.00 58,078.70 99,854.44 36,102.44- 156.6 001-4220 FIRE PREVENTION .00 .00 .00 .00 001-5110 PLANNING 6 BUILDING DEPARTMENT 190,911.00 20,933.83 180,522.28 10,388.72 94.6 001-5120 C.D.B.G. ADMINISTRATION .00 .00 .00 .00 001-5210 ENGINEERING 6 ADMINISTRATION 28,600.00 2,349.27 15,419.99 13,180.01 53.9 001-5230 STREET MAINTENANCE 500.00 507.00 1,508.73 1,008.73- 301.7 001-5265 TROLLEY 14,100.00 .00 7,474.93 6,625.07 53.0 001-6110 R 6 P ADMINISTRATION .00 .00 .00 .00 001-6130 R 6 P SPORTS 111,000.00 2,647.42 59,771.34 51,228.66 53.8 001-6140 YOUTH SERVICES 65,000.00 5,587.47 42,317.48 22,682.52 65.1 001-6150 R 6 P CITY FACILITIES 35,500.00 2,526.19 17,009.23 18,490.77 47.9 Dj 6160 R & P PARKS .00 .00 34.09 34.09- 110 RISK MANAGEMENT/INSURANCE .00 .00 .00 .00 001-7710 INTERFUND TRANSACTIONS 989,037.00 74,500.89 359,458.77 629,578.23 36.3 • GENERAL FUND 6,331,363.00 985,607.91 3,227,467.68 3,103,895.32 51.0 115-7710 INTERFUND TRANSACTIONS .00 .00 .00 .00 199-5270 CURBSIDE RECYCLING .00 .00 .00 .00 199-7710 INTERFUND TRANSACTIONS .00 .00 .00 .00 • CURBSIDE RECYCLING FUND .00 .00 .00 .00 201-1111 UNDISTRIBUTED NON -DEPARTMENTAL .00 100,887.40 105,616.07 105,616.07- ••• 202-1111 UNDISTRIBUTED NON -DEPARTMENTAL .00 11,944.00 11,944.00 11,944.00- 203-1111 UNDISTRIBUTED NON -DEPARTMENTAL .00 .00 .00 .00 203-5120 C.D.S.G. ADMINISTRATION .00 .00 .00 .00 • CDBG 1995 WATER RECLAM STUDY .00 .00 .00 .00 250-5230 STREET MAINTENANCE 197,584.00 33,129.00 105,453.73 92,130.27 53.4 260-1111 UNDISTRIBUTED NON -DEPARTMENTAL .00 .00 .00 .00 260-5210 ENGINEERING 6 ADMINISTRATION .00 .00 .00 .00 • • SMALL BUS ADM TREE PLANT GRANT .00 .00 .00 .00 270-1111 UNDISTRIBUTED NON -DEPARTMENTAL .00 .00 .00 .00 EXHIBIT B (PAGE 2 OF 5) REVPRIN2 CITY OF MORRO BAY PAGE 139 �/98 08:20:55 REVENUE RECAP REPORT DECEMBER 1997 DESCRIPTION ADJUSTED DECEMBER 1997-98 BALANCE t COL ESTIMATE REVENUE REVENUE 270-5240 WATER .00 .00 428.92 42B.92- - • WATER SYSTEM FUND .00 .00 428.92 428.92- `•• 280-1111 UNDISTRIBUTED NON -DEPARTMENTAL .00 .00 .00 .00 280-4110 POLICE DEPARTMENT 20,000.00 1,508.63 6,224.43 13,775.57 31.1 280-7110 RISK MANAGEMENT/INSURANCE .00 .00 .00 .00 • TRAFFIC SAFETY FUND 20,000.00 1,508.63 6,224.43 13,775.57 31.1 281-1111 UNDISTRIBUTED NON -DEPARTMENTAL .00 .00 .00 .00 281-4120 O.T.S. .00 .00 .00 .00 • TRAFFIC SAFETY GRANT FUND .00 .00 .00 .00 299-1111 UNDISTRIBUTED NON -DEPARTMENTAL .00 .00 12,379.33 12,379.33- ••• 301-5261 DIAL - A - RIDE 280,233.00 2,965.70 124,294.31 155,938.69 44.4 3�.L5262 BIKEWAY PATHS .00 .00 .00 .00 0 • TRANSIT FUND 280,233.00 2,965.70 124,294.31 155,938.69 44.4 311-1111 UNDISTRIBUTED NON -DEPARTMENTAL .00 .00 .00 .00 311-5110 PLANNING & BUILDING DEPARTMENT .00 .00 .00 .00 311-5240 WATER 3,645,295.00 275,336.84 2,053,874.50 1,591,420.50 56.3 • WATER REVENUE FUND 3,645,295.00 275,336.84 2,053,874.50 1,691,420.50 56.3 321-5251 WASTEWATER COLLECTION 895,000.00 62,942.91 438,829.06 456,170.94 49.0 331-3510 ACCOUNTING & TREASURY .00 .00 110.62 110.62- `•• 331-6510 HARBOR DEPARTMENT 1,002,000.00 88,511.42 469,325.01 532,674.99 46.8 • HARBOR OPERATING FUND 1,002,000.00 88,511.42 469,435.63 532,564.37 46.8 332-1111 UNDISTRIBUTED NON -DEPARTMENTAL .00 .00 .00 .00 332-6510 HARBOR DEPARTMENT .00 .00 .00 .00 • SOUTH T-PIER FUND .00 .00 .00 .00 333-1111 UNDISTRIBUTED NON -DEPARTMENTAL .00 .00 .00 .00 333-6510 HARBOR DEPARTMENT 8,000.00 1,027.85 5,100.03 2,899.97 63.8 • CC1 SLIP FUND 8,000.00 1,027.85 51100.03 2,899.97 63.8 '111 UNDISTRIBUTED NON -DEPARTMENTAL .00 .00 .00 .00 441-7110 RISK MANAGEMENT/INSURANCE .00 .00 979.97 979.97- `•• ` HEALTH & DENTAL RESERVE FUND .00 .00 979.97 979.97- •'• EXHIBIT B (PAGE 3 OF 5) REVPRIN2 CITY OF MORRO BAY PAGE 140 �/98 08:20:55 REVENUE RECAP REPORT DECEMEER 1997 DESCRIPTION ADJUSTED DECEMBER 1997-98 BALANCE V COL ESTIMATE REVENUE REVENUE 442-1111 UNDISTRIBUTED NON -DEPARTMENTAL .00 .00 45,886.01 45,886.01- ••` 442-7110 RISK MANAGEMENT/INSURANCE .00 .00 1,832.34 1,832.34- ••• • WORKER'S COMPENSATION FUND .00 .00 47,718.35 47,718.35- •`• 443-1111 UNDISTRIBUTED NON -DEPARTMENTAL .00 .00 7,964.19 7,964.19- ••• 444-1111 UNDISTRIBUTED NON -DEPARTMENTAL .00 .00 97,476.36 97,476.36- •`• 444-7110 RISK MANAGEMENT/INSURANCE .00 .00 .00 .00 444-7710 INTERFUND TRANSACTIONS .00 .00 319.21 319.21- ••• • LIABILITY RESERVE FUND .00 .00 97,795.57 97,795.57- ••• 445-1111 UNDISTRIBUTED NON -DEPARTMENTAL .00 .00 .00 .00 447-1111 UNDISTRIBUTED NON -DEPARTMENTAL .00 .OD .00 .00 447-7110 RISK MANAGEMENT/INSURANCE .00 .00 .00 .00 • • VEHICLE INSURANCE RESERVE FUND .00 .00 .00 .00 511-1111 UNDISTRIBUTED NON -DEPARTMENTAL .00 20.00 20.00 20.00- •`• 515-1111 UNDISTRIBUTED NON -DEPARTMENTAL .00 .00 .00 .00 550-1111 UNDISTRIBUTED NON -DEPARTMENTAL 18,480.00 5,946.68 9,367.74 9,112.26 50.7 SSO-3510 ACCOUNTING 6 TREASURY .00 .00 .00 .00 550-7710 INTERFUND TRANSACTIONS .00 .00 .00 .00 • MIMOSA ST AD REDEMPTION FUND 18,480.00 5,946.68 9,367.74 9,112.26 50.7 551-1111 UNDISTRIBUTED NON -DEPARTMENTAL 16,800.00 4,939.72 6,599.90 10,200.10 39.3 551-3510 ACCOUNTING 6 TREASURY .00 .00 .00 .00 551-7710 INTERFUND TRANSACTIONS .00 .00 .00 .00 • MIMOSA ST SUPP AD REDEMP FUND 16,800.00 4,939.72 6,599.90 10,200.10 39.3 560-1111 UNDISTRIBUTED NON -DEPARTMENTAL .00 .00 .00 .00 560-3510 ACCOUNTING 6 TREASURY .00 .00 .00 .00 560-7710 INTERFUND TRANSACTIONS .00 .00 .00 .00 • BAYSHORE BLUFFS MAINT. A.D. .00 .00 .00 .00 565-6162 NORTH POINT PARK 5,645.00 3,425.17 3,425.17 2,219.63 60.7 255 WASTEWATER TREATMENT 903,025.00 .00 .00 903,025.00 0.0 510 HARBOR DEPARTMENT 6,400.00 .00 14,575.42 8,175.42- 227.7 599-7710 INTERFUND TRANSACTIONS .00 .00 .00 .00 ` MB-C WASTEWATER TREATMENT PLAN 909,425.00 .00 14,575.42 894,849.58 1.6 EXHIBIT B (PAGE 4 OF 5) REVPRIN2 CITY OF MORRO BAY PAGE 141 �/98 08:20:55 REVENUE RECAP REPORT DECEMBER 1997 DESCRIPTION ADJUSTED DECEMBER 1997-98 BALANCE f COL ESTIMATE REVENUE REVENUE 901-1111 UNDISTRIBUTED NON -DEPARTMENTAL .00 .00 .00 .00 902-1111 UNDISTRIBUTED NON -DEPARTMENTAL .00 .00 .00 .00 903-1111 UNDISTRIBUTED NON -DEPARTMENTAL .00 .00 .00 .00 904-5110 PLANNING & BUILDING DEPARTMENT .00 .00 .00 .00 905-1111 UNDISTRIBUTED NON -DEPARTMENTAL .00 .00 .00 .00 905-6510 HARBOR DEPARTMENT .00 .00 .00 .00 ' BOATING&WATERWAYS SO T PIER FD .00 .00 .00 .00 911-1111 UNDISTRIBUTED NON -DEPARTMENTAL .00 .00 .00 .00 911-7710 INTERFUND TRANSACTIONS .00 .00 .00 .00 911-9501 ROLLER HOCKEY STRUCTURE .00 .00 .00 .00 911-9502 ENERGY RETROFIT PROJECT .00 .00 .00 .00 911-9503 BASKETBALL COURT .00 .00 .00 .00 9}y�9504 MISC DOCK REPAIR/DERELICT VESS .00 .00 25,000.00 25,000.00- ••' 505 INTERIOR HARBOR DREDGING .00 .00 .00 .00 911-9506 HARBOR PUBLIC BENCH/BIKE PATH .00 .00 6,500.00 61500.00- •`• 911-9507 TIDELANDS/DUNES DOCK RECONST .00 .00 .00 .00 911-9601 FINANCIAL SOFTWARE REPLACEMENT .00 .00 .00 .00 911-9602 KINGS TANK ACQUISITION PROJECT .00 .00 .00 .00 911-9603 WATER EQUIPMENT REPLACEMENT .00 .00 .00 .00 911-9604 WATER MASTER PLAN .00 .00 .00 .00 911-9605 DISINFECTION FACILITY .00 .00 .00 .00 911-9607 HARBOR ENTRANCE IMPROVEMENT .00 .00 .00 .00 911-9608 TIDELANDS PARK PHASE III .00 .00 1,359.35 1,359.35- 911-9610 INTERIOR HABOR DREDGING .00 .00 15,000.00- 15,000.00 911-9615 SEAFOOD PROCESSING PLANT .00 .00 .00 .00 911-9622 STREET REPAIR/OVERLAY .00 .00 .00 .00 911-9623 PAINT ST. LEGENDS & STRIPING .00 .00 .00 .00 911-9634 CHORRO CREEK REPLACEMENT PROJ .00 82,406.20 204,711.86 204,711.B6- ••` 911-9635 SOUTH BAY BLVD. PROJECT .00 .00 .00 .00 911-9636 PRESSURE REDUCING VALVE .00 .00 .00 .00 911-9637 RECLAMATION/CONSERVATION STUDY 10,500.00 10,500.00 10,500.00 .00 100.0 911-9638 WATER ALLOCATION MODEL .00 .00 .00 .00 911-9701 SOUTH BAY BLVD. PHASE II .00 .00 .00 .00 911-9702 DESIGN/FEAS/COIMf.FISHING SLIPS .00 .00 .00 .00 911-9703 ASHURST WELL FIELD STUDY .00 .00 .00 .00 911-9704 CHORRO CREEK STREAM GAUGES .00 .00 .00 .00 911-9705 EMERGENCY GENERATOR .00 .00 .00 .00 911-9706 CATHODIC PROT. STORAGAE TANKS .00 .00 .00 .00 707 RECOAT BLACK HILL TANK .00 .00 .00 .00 708 CITYWIDE COMPUTER PHASE II .00 .00 .00 .00 911-9709 PORTABLE OFFICE BUILDING .00 .00 .00 .00 911-9710 WASTE WATER REVENUE STUDY 11,900.00 .00 11,900.00 .00 100.0 EXHIBIT B (PAGE 5 OF 5) REVPRIN2 CITY OF MORRO BAY PAGE 142 �/98 08:20:55 REVENUE RECAP REPORT DECE14BER 1997 DESCRIPTION ADJUSTED DECEMBER 1997-98 BALANCE % COL ESTIMATE REVENUE REVENUE 911-9606 BLENDING PIPELINE .00 .00 150,533.00 150,533.00- ••• 911-9814 HARBOR PATROL BOAT REPLACEMENT .00 .00 25,000.00 25,000.00- "• 911-9823 R/UDAT PROJECT .00 .00 217.00 217.00- ••• 911-9824 STATE PARK ROAD PROJECT .00 .00 89,907.94 89,907.94- ••• • CAPITAL IMPROVEMENT PROTECT FD 22,400.00 92,906.20 510,629.15 488,229.15- 999.9. 931-1111 UNDISTRIBUTED NON -DEPARTMENTAL .00 .00 .00 .00 932-1111 UNDISTRIBUTED NON -DEPARTMENTAL .00 .00 9,170.67 9,170.67- ••• 933-1111 UNDISTRIBUTED NON -DEPARTMENTAL .00 7,040.00 79,640.00 79,640.00- •" 951-1111 UNDISTRIBUTED NON -DEPARTMENTAL 58,000.00 .00 .00 58,000.00 0.0 951-5110 PLANNING 8 BUILDING DEPARTMENT .00 925.15 15,624.28 15,624.28- ••` 951-7110 RISK MANAGEMENT/INSURANCE .00 .00 .00 .00 951-7710 INTERFUND TRANSACTIONS 58,000.00 .00 .00 58,000.00 0.0 • ` WATER CAPITAL ACCUMULATION FD 116,000.00 925.15 15,624.28 100,375.72 13.5 952-1111 UNDISTRIBUTED NON -DEPARTMENTAL .00 .00 .00 .00 952-5110 PLANNING 8 BUILDING DEPARTMENT 65,000.00 5,733.28 97,363.38 32,363.38- 149.8 • WASTEWATER COLLECTION SYS ACCU 65,000.00 5,733.28 97,363.38 32,363.38- 149.8 953-1111 UNDISTRIBUTED NON -DEPARTMENTAL .00 .00 .00 .00 953-6510 HARBOR DEPARTMENT .00 .00 .00 .00 953-7710 INTERFUND TRANSACTIONS .00 .00 10,500.00 10,500.00- ••• • HARBOR CAPITAL ACCUM FUND .00 .00 10,500.00 10,500.00- "• 960-7110 RISK MANAGEMENT/INSURANCE .00 .00 .00 .00 GRAND TOTALS 13,533,225.00 1,694,797.86 7,472,421.48 6,060,803.52 55.2 0 EXHIBIT C (PAGE 1 OF 3) Page 1 • City of Morro Bay - Finance Department Summary of Mid -Year Budget Adjustment Requests Fiscal Year 199798 Ref No. BY FUNQ Departments Manager City Council Reouest Recommends Aaaraves 001 3520 4110 11 Regular Salaries Frr Computer Svcs Coord. 4,200 4,200 001 3110 4110 ( 1 ) Regular Salaries (Accrued Vacation - Howell) 21,B00 21,800 001 3140 4310 13 Part -Time Pa increase hrs of Adm Tech to 3/4 2,889 0 001 6140 4310 ( 7 Part-time Pay (Interim Rec Supv) 5,000 5,000 001 3110 4910 2 Employer Paid Benefits 3,450 3,450 001 3520 4910 ( 11 ) Employer Benefits (F/T Computer Svcs Coord) 1,700 1,700 001 3140 4910 13 Employer Pd Ben incr hrs of Adm Tech to 3/4 646 0 001 3520 5175 11 Computer operating Supplies Uninter Power Suppl 1,100 550 001 4210 5199 34 Misc Oper Supplies (Phone Upgrade/Supplies-EOC 3,540 3,540 001 5210 6104 17 Engineering Services Develo mt Plan Cks 13,0001 13,000 001 5110 6106 ( 4 Contractual Services (Contract Plan Check 8 Insp.) 76,000 72,517 001 5270 6106 22 Contractual Services RALCCO - incr # of Customer 3,700 3,700 001 5230 6106 ( 31 Contractual Services (Monterey 2 way traffic conver 4,000 0 001 7230 6199 30 Professional Services (Spay/Neuter supplement) 500 0 001 2110 6199 ( 20) Other Professional Services(AGP Contract -Video) 3.995 3,995 001 6160 6601 ( 9 ) Outside Equip Repair (Trucks 8 Mowers) 2,000 2.000 001 6160 6602 9 Outside Struct Repairs Keiser BBO/Del Mar Hshoe 2,000 2,000 001 5230 6603 ( 21 Outside Grounds Repair (removal of dead trees) 40,000 20,000 001 5210 6640 17 Maintenance Contracts Xerox 8 Fax machines 700 700 001 3140 6760 ( 13) Recruitment (Employee Recruitment Expense) 1.000 1,000 001 6130 6812 6 Space Rental SLCUSD Fees Pool 8 Gym) 4,000 4.000 001 5265 7204 ( 19) Oth Vehicle Acquisition (Local Matching ShareTroll ) 20,000 0 001 4210 7302 ( 34 Equipment Acquisition (Emergency Generator-EOC 35,000 0 001 4110 7302 15 Equipment Auisition reveller Advis Radio 10000 10000 001 6160 7302 ( 8 ) Equipment Acquisition (Concrete Picnic Tables) 3,174 3,174 001 3520 7310 11 Office Furniture(Comp, Svc Coord Desk 8 Books 1,150 500 001 7710 8540 ( 33 ) Transfer to CIP Fund (Cardiac Monitor/Defib) 10,000 10,000 001 7710 8540 24 Transfer to Capital Fund Mimosa Close -Out 5.000 5,000 001 7710 8540 27 ) Transfer to CIP 9"7 sidewalk replacement) 35,000 15,000 001 7710 8540 ( 3 Transfer To CIP Fund(CIP 98-23 R/UDAT Poster) 3,500 0 001 001 7710 7710 8540 8540 28 ( 18) Transfer to CIP Fund CIP 98-12 Yerba Buena Li h Transfer To Enterprise Fund (DAR Local Share) 95,700 95,700 20,000 10,000 001 7710 SW 26 1 Transfer to CIP 98-10 residential street overlay) 50,000 30.000 001 7710 8590 ( 10 ) Transfer to Trust 8 Agency Fd (No. Point A.D.) 645 645 001 4110 8721 14 Payments to Oth Agcy (CLETS Computer System) 3,300 3,300 001 4210 8999 ( 35 ) Budget cut (Non -Specific) 12,000 0 001 5110 8999 ( 4 Budget Cut (Non -Specific) Eliminate Budget Cut 9,500 0 001 Various Various 48 City Council Resolution No. 05-98 46,150 46,150 001 5210 6106 49 ) Contractual Services (Buske Group - Cable Trfr) 1,500 1,500 556,839 394,121 0 001 3510 3017 ( 42 ) Property Tax - Homeowners Exemptions 6,000 6,000 001 3510 3061 ( 43 ) Property Transfer Tax 5,000 5,000 001 3510 3064 47 Transient Occupancy Tax 25,000 25,000 001 3510 3101 ( 36 ) General Business License 6,000 6,000 001 3510 3220 44 1 Motor Vehicle In -Lieu 22,803 22,803 001 4110 3229 ( 37 ) Ca COPS Program (190) (190 001 5230 3301 1 28 1 State/Federal Grant Cap Im rovemt erba Buena 95,700 95,700 001 4110 3391 ( 37 ) Other Grants Public Services Grant not Funded) (9,000 (9,000 001 6140 3391 ( 7 ) Other Grant For Public Svc. (CSAP Grant Fund 515 5,000 5,000 001 4210 3393 40 1 Nuclear Panning Assistance DCNPP 3,000 3000 001 5210 3420 ( 17 ) Design Review Fees (Developmt Plan Cks) 13,000 13,000 001 4210 3426 39 Plan Checking Fees 4,560 4 5W 001 5110 3426 ( 4 ) Plan Checking Fees 95,0001 95,000 001 5110 3427 4 Building Inspection Fees 45,000 45000 001 3520 3499 11 ) Revenue Current Services (Corn Svc Coord Arroyo) 3,200 3,200 001 3510 3730 ( 45) Rental Income 5,000 5,000 001 7710 3820 32 Transfer From Spec Rev Fund Gas Tax 12,374 12,374 3860 15) Transfer From Ente rise Ftl Harbor - Tray. Adv 2,000 2,000 3880 8 Transfer from Fund 565 North Point AD Reimb 3,174 3,174 V35 3905 ( 46) Bad Debts Written Off 5,000 6,500 3913 38 Sale of Discarded Assets Haz Mat Vehicle 45 000 45 000 392,621 394,121 0 mdyrbyfd.WK4 0211ail 998 02:38:03 PM EXHIBIT C (PAGE 2 OF 3) Page 2 • City o1 Morro Bay - Finance Department Summary of Mid -Year Budget Adjustment Requests Fiscal Year 1997-98 Ref No. BY FUND Department's Manager City Council Request Reo rnmends Aoornves 201 7710 8540 ( 5 ) CIP 98-01 (LCP/Gen Plan Update) From Fund 201 45,000 45,000 45000 45,000 0 250 7710 8510 32 Transfer to Gen Fund Gas Tax 12,374 12,374 12,374 12,374 0 250 5230 3211 ( 32 Gas Tax Section 2105 (Correction from State ) 1 12,374 12,374 12,374 12,374 0 301 5261 6105 29 Consulting Services Sustainable Transit Study Gai 10,000 10,000 301 5261 7204 ( 18 Oth Vehicle Acquisition (Local Matching Share DAR 20,000 10,000 30,000 20.000 0 301 5261 3810 18 Transfer From Gen Fund (DAR Local Share 20,000 10,000 301 5261 3371 ( 29 ) State Grant Pub Svc (Sloceg sustain trans stud 10,000 10,000 30,000 20 000 0 311 5240 6106 23 Contractual Services Office Renovation-0 er Mgr.) 7,000 7,000 311 5240 6106 ( 16 ) Contractual Services (Pars Svc Credit - Ramos) 34,226 34,226 311 5240 7311 23 Office E ui merit Com uter Control System SCADO 6,750 6,750 47,976 47,976 0 311 5240 3454 ( 41 ) Water Services Elimination of Spec Rates) 16,250 16.250 311 311 1111 1111 1 3860 3860 25 ( 23) Transfer From Enterprise Fund Bal of 96-36 Com I 8,160 8.160 Transfer From Enterprise Fund(Water-Kings Tank) 13,750 13,750 38.160 38160 0 321 5251 7311 ( 23) Office Equipment(Computer Control System SCAD) 5,700 5,700 5,700 5,700 0 321 7710 3830 23 Transfer From CIP Fund 952 SCADA Computer C n 5 700 5,700 5,700 5,700 0 331 6510 8510 ( 12J Transfer to Gen Fund mvelefs Advisory Radio 2,000 2,000 331 6510 7302 12 Equipment uisition Handheld Radios 2,500 2,500 4,500 4,500 0 331 6510 3990 12 Misc Revenues PG 8 E Refund of Lease Payment) 4,500 4,500 4,500 4,5001 0 565 6162 8510 ( 8 Transfer to General Fund From No. Pt. A.D. 3,174 3,174 3174 3174 0 565 6162 3018 ( 10 Property Taxes (Council reduction of Assessment) (645 645 565 6162 3810 ( 10 Transfer From Gen Fund (Make-up for Reduced 645 645 01 0 0 902 7230 6106 ( 24 ) Contractual Services(District Close -Out Expenses) 5,000 5,000 5,000 5,000 0 mdyrbyfd.WK4 02/17/1998 02:01:45 PM EXHIBIT C (PAGE 3 OF 3) -Page 3 • City of Morro Bay - Finance Department Summary of Mid -Year Budget Adjustment Requests Fiscal Year 1997-98 Ref No. BYFUND Department's Manager City Council Reauest Recommends Aoeroves 902 7710 3810 24 Transfer From General Fund Dist Close -Out 5,000 5,000 5,000 5,000 0 911 9823 3810 3 Transfer from General Fund R/UDAT 3,500 0 911 9801 3371 ( 5 CIP 98-01 (LCP/Gen Plan Update) Grant from State 65,000 65,000 911 9812 3810 33 Transfer From Gen Fund Cardiac Monitor 10,000 10,000 911 9801 3820 5 CIP 98-01 (LCP/Gen Plan Update) From Fund 201 45,000 45,000 911 9812 3810 ( 28 Transfer From GF CIP 98-12 Yerba Buena Light 95,700 95,700 911 9810 3810 26 Transfer From GF 98-10 residential street overlay) 50,000 30,000 911 9807 3810 ( 27 Transfer to CIP (98-07 sidewalk replacement) 35,000 15,000 304 200 260,700 0 911 9810 6106 ( 26 Read Street Overlay 50,000 30,000 911 9807 6106 ( 27) Sidewalk Replacement Program 35,0D0 15,000 911 9812 6106 28 Contractual Services(CIP 98-12 Yerba Buena Light) 95,700 95,700 911 9801 6106 ( 5 CIP 98-01 Update Gen Plan/L.C.P. 110,0()0 110,0D0 911 9823 6107 3 CIP 98-23 R/UDAT Posters/Concrete Dis 3,5001 0 911 9822 7302 ( 33 Equipment Acquisition (Cardiac Montor/Defib) 10,0001 10,000 911 9636 8570 25 Transfer to Enterprise Fund Bal 96-36 Pres Red Va 8,1601 8,160 911 9602 8570 ( 23 Transfer to Enterprise Fund(King's Tank 2 Water Fill 13,750 13,750 326,110 282,610 0 952 7710 8540 23 Transfer to Enterprise Fund SCADA Computer Con 5,700 5,700 5,700 5,700 0 1,834,928 1,566,7101 0 Ll mdyrbyfd.WK4 02/17/1998 02:01:45 PM GRAPH C J O & Ip 17 m N g m n N I/ III a�aa ► I II I ►II a n aaO.a I.=► ►►► ►II I ►I 4 m m ry yn n N 17 Y m LL m m n n r ry R ,aa %` ;I Q A •(D4/ ' N n n 7S r s 10 ... (D 44 .�LLo LN V-F2uyn� 7 0 1(pOr 1, N m n O �• � ry ry v 1i1 N O O O O O O O O O O O O O N O W COD to N Y m N spuesnoyl < Wry WN cl } } } ♦ m I m [1 y M �i GRAPH 2 C" • O o (h 0) CD ,• ,•♦ M V W O i�•• . •`• T (0 rn ` .y40, o) N r.• r�•`� a co N r�- •rr ,/ N 0 • ,all, in'n In CC� O Nco 0 ♦♦ ♦ o Na) OD 0 4-0 CLr■r.■ woo ,was N •� "■rr• . wall ems— r- LL .10) n• • c 1111 n•• •r, � O O c- C9 / ♦♦ is p N N (D O O N Z to N f M 4�(D L CO C • ♦ •. •�♦ .•�•• Ow c r m U� 0 ; L m N N (N : .� • (D 0 00 a LO LI) N N Ln N (D Q AL c O K1 0 (O N (7 p- ■■■ ,goal ■....... wommowm N N woo woo 7 O O O � � a O r (D Lf) IT M N O spuesnoyl 'n rn cn rn I,- rn OD m v ui (o r! m m rn rn �• l}i l}i I}i Ili 3 4 m 8 RESOLUTION NO. 16-98 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA DECLARING THE EXISTENCE OF A LOCAL EMERGENCY THE CITY COUNCIL City of Morro Bay, California WHEREAS, storm conditions during the day of February 2, 1998 and threatening to occur subsequently represent conditions of clear and imminent danger, extreme peril and disaster to the safety of persons and property within the City of Morro Bay; and WHEREAS, these conditions are beyond the control of the services, personnel, equipment and facilities of the City; and WHEREAS, Morro Bay Municipal Code Chapter 8.08 provides for the City Council to declare the existence of a local emergency upon request of the Director of Emergency Services; and WHEREAS, said director made such a request; and • WHEREAS, immediate action by the City of Morro Bay is required to protect life and public property from imminent danger or to restore, repair, or maintain public works, utilities, or services destroyed, damaged, or interrupted by this natural disaster and said action is exempt from the California Environmental Quality Act pursuant to Public resources Code Section 21080.b.(2)-(4). NOW, THEREFORE , BE IT RESOLVED by the City Council of the City of Morro Bay, California that storm conditions commencing on February 2, 1998 and resultant damage to persons and property constitute the existence of a "local emergency"; and BE IT FURTHER RESOLVED this constitutes a sudden unexpected occurrence, involving a clear and imminent danger, demanding immediate action to prevent or mitigate loss of, or damage to, life, health, property, or essential public services; and BE IT FURTHER RESOLVED said director is directed to mobilize any and all resources necessary and available to mitigate said emergency in accordance with the powers and authorities provided in said Chapter 8.08, the City's emergency plan and other measures as deemed necessary and appropriate. PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regularly scheduled meeting thereof held on the 9th day of February, 1998 on the following vote: • Resolution No. 16-98 Page Two • AYES: Anderson, Elliott, Peirce, Peters, Novak NOES: None ABSENT: None CA �lJ���.. N ry L CATHY NOVAX, Mayor _ is REVISED, PASSED AND ADOPTED by the City Council of the City of Morro Bay, with revisions, reflected in italic, at a regularly scheduled meeting thereof held on the 23rd day of February, 1998 on the following vote: 0 AYES: Anderson, Elliott, Peirce, Peters, Novak NOES: None ABSENT: None 0 �, a CATHY NOVAK, Mayor • RESOLUTION NO. 15-98 A RESOLUTION APPROVING AGREEMENT TO EXTEND TIME TO CONSIDER TRANSFER REQUESTS, AND PROVIDING FOR DENIAL OF THE TRANSFER REQUESTS IF THE AGREEMENT IS NOT TIMELY SIGNED THE CITY COUNCIL City of Morro Bay, California WHEREAS, on February 27, 1986, the City of Morro Bay entered into an agreement with Sonic Cable Television of Northern California, pursuant to which the City of Morro Bay granted Sonic Cable Television of Northern California ("Sonic") a franchise to operated a cable television system in the City of Morro Bay; and WHEREAS, Sonic is wholly owned by Sonic Communications, Inc. ("SCI") which is in turn wholly owned by Sonic Enterprises, Inc. ("SEI"); and WHEREAS, Sonic, Sonicvest and CCP (the "Requesting Parties") have asked the City of Morro Bay to approve (1) a transaction that will ultimately result in an assignment of SEI's shares • to Sonicvest, and (2) an additional transaction that will result in a sale of assets from Sonicvest to Charter Communications, L.L.P. ("CCP"), and thereby result in a change of control to the franchise from the Sonic to CCP more fully described in FCC Form 394s submitted to the City of Morro Bay on or about September 29, 1997 (collectively, the transactions are referred to as the "Transfer"); and WHEREAS, as of the date of this Resolution, the City of Morro Bay does not have sufficient information before it that would enable it to act favorably on the request to approve the Transfer and there are outstanding issues that would need to be resolved in order to ensure that the City of Morro Bay and the public are not adversely affected by the Transfer; and WHEREAS, on January 12, 1998 the City Council, upon the request of the Requesting Parties, authorized the City Manager to enter into an agreement which extended the time for the City to act upon the Transfer until February 20, 1998; and WHEREAS, the Requesting Parties and the City of Morro Bay believe that it is appropriate to provide additional time for the City of Morro Bay to act upon the Transfer beyond that date, and it is therefore appropriate to provide for such extension. NOW, THEREFORE BE IT RESOLVED, by the City Council of the City of Morro Bay: Section 1: The City Manager is authorized to enter into an agreement substantially in the • form of Exhibit A to this Resolution. • • • Section 2: If Sonic, Sonicvest, or CCP fails to sign the agreement by noon on February 20, 1998, the requests for approval of the transactions that constitute the Transfer shall be deemed denied as of the date of this Resolution. PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting thereof held on the 9th day of February, 1998 by the following vote: AYES: Anderson, Elliott, Peirce, Peters, Novak NOES: None ABSENT: None ABSTAIN: None CATHY N AK, Mayor ATTEST: BRIDGETT tAUER, City Clerk Resolution No. 15-98 Approving Agreement to Extend Time to Consider Transfer Requests, and Providing for Denial of the Transfer Requests if the Agreement is not Timely Signed • EXHIBIT A AGREEMENT FOR EXTENSION OF TIME Extension Agreement Number Two The City of Morro Bay, Sonic Cable Television of Northern California ("Sonic"), Sonicvest and Charter Communications, L.L.P. ("CCP") hereby agree as follows: Sonic, Sonicvest and CCP and the City of Morro Bay agree that the time for acting upon the transfer requests that were submitted to the City of Morro Bay shall be extended through and including March 10, 1998. Sonic, Sonicvest and CCP represent and warrant that they are each authorized to enter into this agreement and to extend the time for acting on the transfer, without the action or approval of any other party. This document may be executed in multiple counterparts, and by the parties hereto on separate counterparts, and each counterpart, when executed and delivered, shall constitute an original agreement enforceable against all who signed it without production of, or accounting for, any other counterpart, and all separate counterparts shall constitute the same agreement. Eix City of M no ay a io 48 David J. Co , ty Manager Date Approved as to Form For Sonic Cable Television of San Luis Obispo By: Its: Date For Sonicvest By: David Hunt, City Attorney Date Its: Date For Charter Communications, L.L.P. By: Its: 0 Date Cri•. Fwo�t3 Department of Public Works MEMORANDUM TO: Bill Boucher, Public Works Director FROM: Janeen Burlingame, Administrative Assistant�g�_ CC: City Manager and City Council DATE: January 29, 1998 SUBJECP: Recent PEG Access Events Regarding the County Office of Education (COE) Yesterday, I spoke with Alexandra Robin of the COE who inquired if she could get a copy of our franchise agreement with Sonic. She is particularly interested in what provisions there might be with regards to PEG access. In talking with Ms. Robin, I learned that the COE is meeting with Sonic and Falcon next week to discuss plans of developing a public and educational access program based on certain provisions the COE has in its cable agreement with the two cable operators for PEG access: As you remember, last year during the time the Consortium for Community Media was discussing a regional PEG program, Ellen Sturtz was trying to develop an agreement • with the COE and Cuesta College to be the insertion point and studio facilities for such a regional program. Although the project stalled last year and the Consortium never renewed its MOU, the idea for the project did not die and Ms. Robin indicated that the project is back on track with the COE very interested in moving forward. The COE wants to contract with a non-profit organization to do public and educational access and act as the central hub, so to speak, with its own channel(s), playback and studio capability. In asking if the local jurisdictions, with regards to government access, had been considered yet, she indicated they had not as this was just beginning - meeting with the cable operators and getting them to provide what is in the COE franchise agreement (channels, equipment etc...); however, she was very excited that the City was interested in what the COE was doing and noted that this would be a "wonderful opportunity for partnerships with everyone" as there would be enough air time for all. In addition, she will keep me informed on project developments as they happen. As you know, staff has held numerous discussions internally, with the Consortium, the Public Works Advisory Board and the City Council regarding PEG access for the community and believes that a regionalist approach is the most logical, beneficial and cost-effective long term policy goal. As such, staff has previously recommended that Council pursue a regional approach to • PEG access in order to capitalize on the many benefits from such a joint venture with regards to taking advantage of emerging technologies that are not available to an individual entity (due to size or financial constraints), the ability to provide cost-effective fjbjave N.&Iev\M\19MOO — regional programming because alone ertch jurisdiction would have to come up with anywhere from $50,000 to $100,000 to set up an origination studio for PEG access, in addition to annually budgeting from $100,000 to $200,000 for the operating and staffing the studio (depending on the scope of the program), the ability to locate PEG access facilities in one place so everyone would share the cost to pay for a regional program rather than paying 100% of the cost alone, and the ability to bring a broader range of programming and public issues that would be of higher quality and lower cost to the individual jurisdiction. The single most important conclusion derived from the work done by the Consortium is that a strategy of cooperation and collaboration on a county -wide, intersegmental basis will result in a more cost effective, equitable deployment of technology and will help each agency achieve its goals for lifelong leaming and improved communications." In essence, coordination is key to developing a successful regional PEG access program that provides for more diversified programming while not being a drain on an individual agency's finances. If this COE project is attainable within a reasonable time frame, the reality of a regional PEG access program would be right around the corner and the City should consider taking full advantage of becoming involved with this project as it is being developed since the City could potentially benefit greatly from participating in a regional PEG • program while retaining the ability to locally broadcast City Brown Act meetings. ff you have any questions, comments or concerns, just let me know, otherwise, I will just keep in contact with Ms. Robin about the progress of this project. is • RESOLUTION NO. 14-98 RESOLUTION APPROVING AN AGREEMENT WITH SAN LUIS COASTAL UNIFIED SCHOOL DISTRICT TO PURSUE VACATION OF PORTION OF THE NAPA AVENUE RIGHT-OF-WAY TO FACILITATE EXPANSION AND IMPROVEMENTS TO MORRO ELEMENTARY SCHOOL the CITY COUNCIL, City of Morro Bay, California WHEREAS, the expansion, modernization and improvement of Morro Elementary School is critical for the education of the community's children; and WHEREAS, the San Luis Coastal Unified School District ("District") has submitted a proposed project for said improvements to Morro Elementary which includes the permanent vacation of portion of the Napa Avenue right-of-way; and WHEREAS, the District currently occupies a portion of Napa Avenue under a temporary Agreement approved by the City Council on August 29, 1988 via adoption of Resolution No. 79- 88; and • WHEREAS, the under the terms and conditions of said Agreement, the District provides the City, at no cost, the use of two (2) elementary school classrooms at Del Mar Elementary School year-round as selected by the District and bus transportation from Morro Elementary School to Del Mar School during the academic year for all children enrolled in the City Recreation and Parks Department Partners program; and WHEREAS, the City and the District are committed to providing a necessary and enriching child care program for the children of Morro Bay; and WHEREAS, the vacation of the Napa Avenue right-of-way to the District to facilitate improvements to Morro Elementary and the retention of no -cost facilities and transportation for the existing child care program are important components to this commitment; and WHEREAS, on August 1, 1988 the Morro Bay Planning Commission, via it's adoption of Resolution No. 50-88, determined the vacation of the subject portion of Napa Avenue to be in conformance to the adopted General Plan; and WHEREAS, time is of the essence to meet scheduling constraints for construction to be commenced and completed at the earliest possible time in accord with the Conditions of Approval for the project as approved by the Planning Commission; and WHEREAS, an Agreement has been prepared to facilitate the District's construction • schedule and to assure retention of the needed after school care program, agreeable to both parties. Resolution No. 14-98 Page Two • NOW, THEREFORE, BE IT RESOLVED by the City Council, City of Morro Bay, that the vacation of the referenced portions of Napa Avenue right-of-way is consistent with the General Plan and that the City commits to timely pursuit and completion of vacation procedures of the subject portion of Napa Avenue, pursuant to the California Streets & Highways Code, upon execution by the District, of the Agreement for retention of no -cost transportation and no - cost facilities for a child care program; and • 0 BE IT FURTHER RESOLVED, that the Agreement for retention of said program's transportation and facilities, attached hereto as Exhibit "A" is hereby approved; and BE IT FURTHER RESOLVED, that upon receipt of a fully executed Agreement from the District, the City will adopt a Resolution vacating the referenced portions of the Napa Avenue right-of-way at the next City Council meeting feasible; and BE IT FURTHER RESOLVED, the Mayor is hereby authorized to execute said Agreement on behalf of the City and the City Manager is hereby authorized to execute documents appurtenant to this approval. PASSED AND ADOPTED by the City Council, City of Morro Bay at a regular meeting thereof held on the 23rd day of February, 1998 by the following vote: AYES: Anderson, Elliott, Peirce, Peters, Novak NOES: None ABSENT: None ABSTAIN: None ATTEST: 19161 Ulu 0 +• CATHY NO AK, Mayor • AGREEMENT BETWEEN THE CITY OF MORRO BAY AND THE SAN LUIS COASTAL UNIFIED SCHOOL DISTRICT FOR RETENTION OF CHILD CARE PROGRAM TRANSPORTATION AND FACILITIES TO FACILITATE EXPANSION AND MODERNIZATION OF MORRO ELEMENTARY SCHOOL This Agreement is made and entered into this 23rd day of February 1998 by and between the CITY OF MORRO BAY, a municipal corporation, hereinafter referred to as "City" and the SAN LUIS COASTAL UNIFIED SCHOOL DISTRICT, a school district located within the County of San Luis Obispo, hereinafter referred to as "District". WHEREAS, District is the owner of that certain real property commonly known as 1130 Napa Avenue, Morro Bay, California (hereinafter referred to as "District Property"); and WHEREAS, the District operates Mono Elementary School on said District Property and for which District plans to undertake a construction project including, but not limited to, construction of a new library/media facility; and WHEREAS, the City and District entered into a temporary Agreement on August 29, 1988 relative to Morro Elementary which included terms that the District agreed to provide, at no cost, two rooms at Del Mar Elementary School and transportation for Mono Elementary School children for the City Recreation & Parks Department Partners program; and • WHEREAS, with expiration of said temporary Agreement, the provision of transportation and facilities for said program ceases; and • WHEREAS, the retention of no -cost transportation and facilities for City -sponsored elementary school -age children care programs is critical for the well-being of Mono Elementary students and their families; and WHEREAS, it is not necessary to have two (2) rooms for said programs but rather one (1) room is adequate; and WHEREAS, both parties desire to continue said program for the benefit of the children of the community. 1 of NOW, THEREFORE, the City and District agree as follows: • L Partners Program: The District shall provide, at no cost to the City, the use of one (1) elementary school classroom year-round, selected by District, at Del Mar Elementary School and transportation from Morro Elementary to Del Mar Elementary School during the academic year for all children enrolled in City Partners, or it's successor, program so long as the City offers the program. The City shall have this right until the end of the current temporary Agreement between the City and the District, August 29, 1998, and for an additional five (5) year term commencing at the end of the current term. The right to this use will then renew automatically for an additional five (5) year period at the end of each term unless either party gives notice of its intent to terminate the Agreement. Notice of intent to terminate must be given in writing not more than three (3) calendar months, nor less than two (2) calendar months, before the expiration of a current term. This Agreement to use may be terminated upon written mutual consent of the City and the District at any time. 2. Breach of Agreement: This Agreement is made on the condition both parties conform to the obligations as set forth in Paragraph 1 above. In any action to enforce or interpret any of the terms and conditions of this Agreement, the prevailing party shall be entitled to an award of reasonable attorneys fees and costs incurred. IN WITNESS WHEREOF, this Agreement has been executed as of the day and year first set forth. • CITY OF MORRO BAY SAN LUIS COASTAL UNIFIED //1 \\ SCHOOL DISTRICT By: l �u N N` — By: Title: Mayor Title: Attest: Attest: By. By. - Title: City Clerk Title: APPROVED AS TO FORM: David R. Hunt, Esq., City Attorney • 2of2 • RESOLUTION NO. 13-98 RESOLUTION CALLING A PUBLIC HEARING TO DETERMINE WHETHER PUBLIC NECESSITY, HEALTH, SAFETY, OR WELFARE REQUIRES THE FORMATION OF AN UNDERGROUND UTILITY DISTRICT THE CITY COUNCIL City of Morro Bay, California BE IT RESOLVED by the City of Morro Bay as follows: WHEREAS, Section 13.16 of the Morro Bay Municipal Code establishes a procedure for the creation of underground utility districts and requires as the initial step in such procedure the holding of a public hearing to ascertain whether public necessity, health, safety, or welfare requires the removal of poles, overhead wires and associated structures, and the underground installation of wires and facilities for supplying electric, communications, or similar or associated service in any such district; and WHEREAS, its has been recommended that such an underground utility district, hereinafter called District, be formed within the following area: • All that real property located in the City of Morro Bay, County of San Luis Obispo, State of California, described as follows: Beginning at the northeast comer of Block 2, Morro Heights, as shown on a map recorded May 11, 1922, in Volume 3, of Maps, Page 4, said point being the True Point of Beginning; thence, S89"05'W, 1884.0% thence, NO.10'W, 222.4', along the easterly right-of-way line of Main Street; thence, N89°05'E, 1354.0', to the easterly right-of-way line of Piney Way; thence, SOO]O'E, 142.0', to the northerly right-of-way line of Morro Bay Boulevard; thence, N89'05'E, 530', more or less, along said right-of-way line to its intersection with the westerly right-of-way line of Bernardo Avenue extended; thence, SO"24'E, along said right-of-way line returning to the True Point of Beginning. NOW, THEREFORE, LET IT BE RESOLVED AS FOLLOWS: 1. NOTICE IS HEREBY GIVEN that a public hearing shall be held by the City Council of the City of Morro Bay on April 13, 1998, at 6:OOpm in the Veterans Hall, to ascertain whether public necessity, health, safety, or welfare requires the removal of poles, overhead wires, and associated overhead structures, and the underground installation of wires and facilities for suppling electric, communication, or similar • associated service in the District described above. • 2. At such hearing all persons interested shall be given an opportunity to be heard. Said hearing may be continued from time to time as may be determined by the City Council. • 3. The City Clerk shall notify all affected property owners as shown on the last equalized assessment roll, lease holders, and utilities concerned of the time and place of such hearing by mailing a copy of this resolution to such property owners and utilities concerned at least thirty (30) days prior to the date thereof. 4. The area proposed to be included in the District is shown on that certain map entitled Underground Utility District No. 6, which is on file in the office of the City Clerk of the City of Morro Bay. PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting held on the 9th day of February, 1998, by the following vote: AYES: Anderson, Elliott, Peirce, Peters, Novak NOES: None ATTEST: BRIDGETT JAUER, City Clerk r.),r CATHY NOVAK, MAYOR • CD Q =_ CM 9= M_ MEX � v C20 Cox -- dFOOM O O I J 1— t MAIN BERNARDO LAVE RESOLUTION NO. 11-98 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA, APPROVING THE 1997 ANNUAL WATER PROGRESS REPORT AND ADOPTING A WATER ALLOCATION PROGRAM FOR 1998 THE CITY COUNCIL City of Morro Bay, California WHEREAS, Chapter 13.20 of the Morro Bay Municipal Code, calls for the City Council of the City of Morro Bay to adopt a yearly Water Allocation Program based on a report by the Planning and Building and Public Works Directors after review by the City of Morro Bay Planning Commission and Public Works Advisory Board; and WHEREAS, the Local Coastal Program Land Use Plan and Ordinance Number 266, also known as Measure 7", and adopted by the voters in 1984, requires the City Council to set an annual limit on new residential units and to prescribe the mix of multi -family and single family • residences allowed within that limit; and WHEREAS, on the 15th day of December, 1997 the Planning Commission held a duly noticed public hearing and following its review of the report made its recommendations to the City Council; and WHEREAS, on the 14th day of January, 1998 the Public Works Advisory Board reviewed the report and made its recommendations to the City Council; and WHEREAS, on the 26th day of January, 1998, the City Council did hold a duly noticed PUBLIC HEARING on the 1997 Annual Water Progress Report and the proposed 1998 Water Allocation Program; NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Morro Bay, California, as follows: The City Council of the City of Morro Bay hereby receives and accepts the 1997 Annual Progress Water Report as submitted by Planning and Building and Public Works Directors and incorporated herein as if attached hereto; and A Water Allocation Program for the 1998 fiscal year is hereby adopted by the City Council of . the City of Morro Bay containing the following elements: City Council Resolution No. 11-98 • 1. Modify the 1997/98 Fiscal Allocation Year to end on December 31, 1997 and commence the 1998 Calendar Allocation Year on January 1, 1998; 2. Set the mix of residential units to be allocated at 50 single-family and 27 multi- family units; 3. Process Residential Allocations within Measure F limits on a first -come/ first -serve basis, based on the priorities contained in the current General Plan and Local Coastal Plan policies; 4. Allocate 130% of the residential water equivalency units to commercial and industrial projects within the priority categories consistent with the current Local Coastal Plan and General Plan policies; 5. Allocation periods shall be consistent with the current General Plan and Local Coastal Plan policies; and 6. Implement the revised allocation program as soon as the City has received certification of the amendments from the Coastal Commission. • PASSED, APPROVED, AND ADOPTED, by the City of Morro Bay City Council, at a regular meeting held on this 26th day of January, 1998 by the following vote: AYES: Anderson, Elliott, Peirce, Peters, Novak NOES: None ABSENT: None ATTEST: CATHY NOAA K, Mayor ml:1/15/98\S:\MSOFFICE\W iN WORD\PLAN&BLD\RES-ORD\RES I 1-98.DOC • 2 • RECORDING REQUESTED BY, AND WHEN RECORDED RETURN TO: CITY OF MORRO BAY 595 HARBOR STREET MORRO BAY, CA. 93442 RESOLUTION NO. 10-98 A RESOLUTION ACCEPTING THE PUBLIC IMPROVEMENTS OF TRACT 1996 AND THE OFFERS OF DEDICATION BY OWNER OF TRACT 1996 TO THE CITY OF MORRO BAY AS MADE UPON THE TRACT MAP RECORDED IN BOOK 17 OF MAPS AT PAGE 83. THIS RESOLUTION IS ALSO ACCEPTING OFFERS OF LOT 121 RECORDED AS DOCUMENT NO. 1996-050340 CONSISTING OF 164 PAGES; PARCEL I (FORMERLY LOT 122) OF MBAL 97-240 DOCUMENT NO. 1998-001581 6 PAGES; LOT 124 DOCUMENT NO. 1996- 050338 13 PAGES; AND A DRAINAGE EASEMENT AT REAR OF LOTS 66, 67, 68 DOCUMENT NO. 1997-051232 5 PAGES, AS REPRESENTED BY THE FOLLOWING ASSESSOR PARCEL NUMBERS AND AS SHOWN AT THE EXHIBITS ATTACHED • HEREWITH. APN 065-386-005: lot 121 APN 065-386-007: Parcel 1 of MBAL 97-240 (formerly lot 122) APN 065-386-006: lot 124 APN 065-386-008: Coral Ave. APN 065-387-046: Coral Ave., Indigo Cir., 10' strip on Azure St. APN 065-388-076: Coral Ave., Emerald Cir. portion APN 065-388-021, 022, 023: drainage easement rear portion of lots 66, 67, 68 THE CITY COUNCIL City of Morro Bay, California WHEREAS, on September 23, 1996, the Morro Bay City Council did, by the adoption of Resolution No. 69-96, approve the final map for Tract 1996, the subdivision improvement agreement, and lots 121, 122 and 124 and offers of dedication subject to acceptance of the public improvements; and • RESOLUTION 10-98 WHEREAS, on December 29, 1997, the Subdivision Review Board did approve MBAL 97- 270, a lot line adjustment correcting a misdescribed boundary between lots 122 and 123, whereby the former offered lot 122 to the City is now Parcel 1 of said MBAL 97-270, and former lot 123 offered to the State of California is now Parcel 2; and WHEREAS, being that the owner has constructed the public improvements and the owner's engineer of work having certified that said improvements substantially conform to the approved plans, the City Engineer finds that said improvements have been completed in accordance therewith.: and NOW, THEREFORE, BE IT RESOLVED, that the City Council, City of Morro Bay, California does hereby approve and accept Tract 1996 public improvements and offer of dedication of lot 121, Parcel 1 of MBAL 97-240 (formerly lot 122), lot 124, Coral Ave., Indigo Cir., Emerald Cir., a 10' strip along Azure St., and an easement for drainage purposes across the rear portions of Lots 66, 67, 68, on behalf of the public; and • BE IT FURTHER RESOLVED, that pursuant to the improvement agreement with Tract 1996, the City will release 90% of the performance security bonding amount, and retain 10% ($476,161.32) as a maintenance security which will be released one year from the adoption date of this resolution minus any and all appropriate reductions. PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting held on the 26th day of January, 1998 by the following vote: AYES: Anderson, Elliott, Peirce,.Peters, Novak NOES: None ABSENT: None ABSTAIN: None CATHY NO AK, Mayor ATTEST: BRIDGETt�BAUER, City Clerk CENTRAL COAST ENGINEERING 396 BUCKLEY ROAD SAN LUIS OBISPO AAAMMUMM04 0 g o 0 N V 1" = 400' fI BAL 97-240 Being a Lot Line Adjustment between Lots 122 and 923 In Tract 1996 in the City of Morro Bay County of San Luis Obispo, State of California December, 1997 Sheet 1 of 1 E 1422 yW uclrrtu Sri 00 vERvo�• • I' 8 AZURE ST. OOO a N U N Oy,W • LLP � ram+ � A _ J t. g 1 F •' 1 •i / � /J �T'(' � th It m \ 1�-- �aAk 4 r F • II go Ad ® SVf'IBS'ICCL9I-990 • " I .YUMfI iY (Mry�� VJ 00 LO I � o gig r • • 00 Oo g L C) C�J h rol A 1p `+♦� u q ITa x H r ,d� Q,. n 'a'aIQ e < Rlr ./vi�GN I I C�J ARAI 0 25 50 �I 1" = 50' ILn�IJ W 69 �Oo 122 677 OFFERED EASEMENT PER DOCUMENT NO. 1997-051232 66 EXISTING20' WIDE DRAINAGE EASEMENT 65 • • RECORDING REQUESTED BY: City of Morro Bay WHEN RECORDED RETURN TO: City of Morro Bay 595 Harbor Street Morro Bay, CA 93442 AGREEMENT CORRECTING LEGAL DESCRIPTION IN IRREVOCABLE OFFER TO DEDICATE This Agreement Correcting Legal Descri tion In Irrevocable Offer To Dedicate is made this /5-K day of q y. 1998, by Keyoto-Morro Bay, Inc., a California corporation, and Morro Bay - Natalie, Inc., a California corporation (hereinafter collectively referred to as the "Grantors"), and the City of Morro Bay ("Grantee"), with regard to the following facts: I. WHEREAS, Grantors have executed that certain "Irrevocable Offer to Dedicate Land and Improvements and Declaration of isRestrictions" dated September 10, 1996, and recorded in the Official Records of t County of San Luis Obispo on October 8, 1996, as Document No. 996-050339, pursuant to which the Grantors offered to dedicate o the California Department of Parks and Recreation a portion o Grantors' property described as Lot 123 of Tract Map 1996, recorde on October 8, 1996, in Book 17, Page 83 of Map, in the Office of th County Recorder of the County of San Luis Obispo (hereinafter "Final Map of Tract 1996"), said Lot 123, being more particularly described in Exhibit F to said Irrevocable Offer to Dedicate; and II. WHEREAS, Grantors have executed that certain "Irrevocable Offer to Dedicate Land, Scenic View Easements and Improvements and Declaration of Restrictions and Reservations," dated September 10, 1996, and recorded in the Official Records of the County of San Luis Obispo on October 8, 1996, as Document No. 1996-050340, pursuant to which the Grantors offered to dedicate to the City of Morro Bay Grantors' property, including Lot 122 as set forth on Final Map of Tract 1996; and III. WHEREAS, the common boundary line between Lots 122 and 123 was misdescribed on the Final Map of Tract 1996, as well as in the above -referenced Exhibit to the Irrevocable Offer to Dedicate; and • IV. WHEREAS, said Irrevocable Offers to Dedicate have not been accepted by either the State of California, California Department of Parks and Recreation, or the City of Morro Bay; and V. WHEREAS, Grantors have applied to the City of Morro Bay for a lot line adjustment to correct the boundary discrepancy between Lots 122 and 123, which was approved by the City of Morro Bay on December 29, 1997, which adjustment represents the correct boundary between Lots 122 and 123; and VI. WHEREAS, this correction of the legal description of the boundary between Lots 122 and 123 is consistent with the conditions of the Project approval as described in the Irrevocable Offers to Dedicate; and VII. WHEREAS, the corrected legal description will effectuate the intent of the Irrevocable Offers to Dedicate by assuring that everything westerly, of the "as built" Environmentally Sensitive Habitat ("ESHA") fencing will be offered for dedication to the State of California, Department of Parks and Recreation, while the ESHA fencing and everything easterly of the adjusted boundary is offered for dedication to the City of Morro Bay. NOW, THEREFORE, for valuable consideration, the receipt of which is hereby acknowledged, the parties hereto agree as follows: 1.. The undersigned Grantors and Grantee hereby consent to the modification of the legal description as shown on lot line adjustment MBAL-97-240, recorded in the Official Records of the County of San Luis Obispo as Document No. 1998-001582, and more • particularly described as Parcel 2 on Exhibit A attached hereto and incorporated by this reference. The legal description of Parcel 2 set forth in Exhibit A attached hereto is hereby expressly substituted for Exhibit F (former Lot 123) in the "Irrevocable Offer to Dedicate Land and Improvements and Declaration of Restrictions" to the State of California, California Department of Parks and Recreation. 2. The legal description of Lot 122 as set forth in the Final Map of Tract 1996 shall be amended by lot line adjustment MBAL-97-240, recorded in the Official Records of the County of San Luis Obispo as Document No. 1998-001581, and the "Irrevocable Offer to Dedicate Land, Scenic View Easements and Improvements and Declaration of Restrictions" in favor of the City of Morro Bay, and more particularly, the description in Paragraph la of Irrevocable Offer to Dedicate is hereby amended to substitute for "Lot 122" the property more particularly described as Parcel 1 on Exhibit A hereto. 3. Any acceptance of said Irrevocable Offers to Dedicate shall contain and refer to the corrected legal descriptions for Lots 122 (Parcel 1, Exhibit A) and 123 (Parcel 2, Exhibit A), respectively. 4. All other terms and conditions of said Irrevocable Offers to Dedicate shall remain unchanged and in full force and effect. • 2 GRANTORS KEYOTO-MORRO BAY, INC., a California corporation By FRANCE MERAT, Pr sident By: BRUNO BOSIO as Attorney -In -Fact MOR BAY-NATALIE,,, INC., a California corporation By 1 /1 PIERRE MERAT, President By: BRUNO BOSIO as Attorney -In -Fact GRANTEE CITY OF MORRO BAY By Qom_. Cathy'Novak, Mayor • APPROVED AS TO FORM: DATE: zc!p, 1(3R8 David Hunt, City'Attorney City of Morro Bay 0 • STATE OF CALIFORNIA ) Be. COUNTY OF SAN LUIS OBISPO ) • 0 On : r4lcn £ />-1 /199t-, before me, _7 /ta 'clI c Notary Public, personally red /6o-•)e'. personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by hie/her/their signatures on the instrument the person(B) or the capacity(ies) upon behalf the person(s) acted, executed the instrument. WITNESS my hand and Official Seal. r Signature - STATE OF CALIFORNIA ) ) Be. COUNTY OF SAN LUIS OBISPO ) CORA G. POLLICK N COMM. f1128725 ate' a- Notary Public -California Obispo County f►� San Luis My Comm. Exp. Mar. 5, 2001 On 1998, before me, Notary Public, personally appeared Cathy Novak, personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signatures on the instrument the person(s) or the capacity(ies) upon behalf the person(s) acted, executed the instrument. WITNESS my hand and Official Seal. Signature • EaIIIBIT "A" LEGAL DESCRIPTION - PARCEL 1 OF MBAL 97-240 All that real property situate in the City of Morro Bay, County of San Luis Obispo, State of California being a portion of Lots 122 and 123 of Tract 1996, a map of said Tract 1996 being recorded in Book 17 of Maps at page 83 in the office of the County Recorder of said County; said portion of said Lots being more particularly described as follows: Beginning at the most northerly comer of said Lot 122, as shown on said Map, said point being the True Point of Beginning; Thence, along the boundary of said Lot 122, as shown on said Map, along the following courses: S 8° 49' 00" E 240.00 feet; S 37° 36' 16" E 81.92 feet; S 560 57' 13" E 260.00 feet; S 880 22' 59" E 105.48 feet; N 65° 30' 20" E 123.49 feet; N 33° 44' 45" E 521.77 feet to a curve concave westerly which is tangent to a line which bears S 32° 49' 43" E; along said curve, said curve having a radius of 916.00 feet, a central angle of 33° 36' 33", and an arc length of 537.32 feet to a tangent curve concave easterly; along said curve, said curve having a radius of 1484.00 feet, a central angle of 30° 56' 24", and an arc length of 801.37 feet to a tangent curve concave westerly; along said curve, said curve having a radius of 416.00 feet, a central angle of 24° 35' 45", and an arc length of 178.58 feet to a tangent curve concave westerly; along said curve, said curve having a radius of 125.00 feet, a central angle of 39° 04' 07, and an arc length of 85.23 feet to a tangent curve concave easterly; along said curve, said curve having a • radius of 60.00 feet, a central angle of 50° 00' 43", and an arc length of 52.37 feet to a tangent curve concave westerly; along said curve, said curve having a radius of 125.00 feet, a central angle of 41° 53' 36", and an arc length of 91.40 feet; N 590 03' 45" W 246.61 feet; S 880 55' 56" W 94.34 feet; S 61° 23' 37" W 120.93 feet; S 26° 06' 46" W 430.96 feet; S 29° 57' 03" E 20.00 feet to a tangent curve concave westerly; along said curve, said curve having a radius of 200.00 feet, a central angle of 46° 52' 24", and an arc length of 163.62 feet; S 16° 55' 21" W 56.31 feet to a tangent curve concave easterly; along said curve, said curve having a radius of 100.00 feet, a central angle of 480 10' 34", and an arc length of 84.08 feet; S 31° 15' 13" E 53.68 feet to a tangent curve concave westerly; along said curve, said curve having a radius of 400.00 feet, a central angle of 27° 26' 23", and an arc length of 191.57 feet; S 3° 48' 50" E 74.68 feet to a point on the southerly line of said Tract 1996, as shown on said Map; Thence, along said southerly line, S 81° 11' 10" W 134.44 feet to a point which is N 81° 11' 10" E 285.75 feet along said southerly line from the southwesterly corner of said Tract 1996, as shown on said Map; Thence, leaving said southerly line and along the following courses: N 16° 35' 2T' W 48.39 feet; N 12° 49' 49" E 43.38 feet; N 45° 45' 24" E 85.13 feet; N 37° 12' 08" E 46.63 feet; N 8° 47' 04" W 22.15 feet; N 42° 38' 24" W 32.08 feet; N 49° 50' 04" W 40.34 feet; N 780 26' 58" W 69.92 feet; N 68° 13' 31" W 14.82 feet; N 56° 06' 12" W 16.47 feet; N 19° 13' 31" W 16.21 feet; N 40 20' 37 E 15.46 feet; N 4° 00' 37W 64.52 feet; N 180 54' 37 E 72.73 feet; N 23° 15' 19" W 52.90 feet; N 120 32' 22" E 53.87 feet; N 60 32' 34" W 60.81 feet; N 30 15' 42" E 79.18 feet; N 620 29' 13" E 3.16 feet; N 12° 53' 32" W 76.70 feet; N 290 30' 53" E 61.25 feet; N 5° 25' 21" E 81.64 feet; • N 220 35' 29" E 84.96 feet; N 100 00' 42" E 51.21 feet; N 00 21' 57" E 193.14 feet; N 200 34' 50" E 142.13 feet; N 8° 43' 08" E 43.87 feet; N 30 27' 13" W 77.22 feet; N 4° E1422\1221231d.dw 06' 09" W 115.49 feet; N 7° 25' 26" W 30.35 feet; N 11° 42' 06" W 85.74 feet; N 21° 50' 1T' W 92.35 feet; N 32° 02' 13" W 99.45 feet; N 26° 57' 05" W 33.23 feet; N 20° 15' 09" W 21.91 feet; N 0° 47' 48" E 22.65 feet; N 18° 24' 11" E 27.37 feet; N 39° 51' 05" E 21.55 feet; N 54° 22' 42" E 23.33 feet; N 35° 17' 28" E 16.26 feet; N 280 07' 2T' W 39.97 feet; N 63° 01' 05" W 74.88 feet; N 72° 28' 25" W 30.06 feet; N 880 10' 31" W 15.17 feet; S 78° 04' 59" W 22.75 feet; S 68° 56' 01" W 22.89 feet; S 83° 48' 08" W 16.02 feet; N 83° 53' 21" W 15.59 feet; N 720 31' 40" W 22.96 feet; N 530 36' 12" W 15.40 feet; N 53° 58' 19" W 31.07 feet; N 68' 25' 22" W 63.74 feet; N 630 01' 02" W 39.70 feet; N 720 08' 58" W 53.76 feet; N 580 36' 2T' W 23.11 feet; N 430 26' 14" W 59.37 feet; S 740 57' 43" W 4.05 feet; N 460 10' 39" W 48.04 feet; N 130 38' 00" W 30.98 feet; N 25° 36' 13" W 47.04 feet; N 17' 59' 54" W 10.79 feet; N 60 38' 41" W 72.40 feet; N 1° 10' 00" W 43.47 feet; N 47° 03' 22" W 10.14 feet to a corner common to said Lots 122 and 123, as shown on said Map; Thence, along the northerly line of said Lot 122, as shown on said Map, N li 03' 16" E 114.59 feet to the True Point of Beginning. Containing 19.63 acres is E E1422\1221271ddoc EXHIBrr "A" LEGAL DESCRIPTION - PARCEL 2 OF M 3AL 97-240 All that real property situate in the City of Morro Bay, County of San Luis Obispo, State of California being a portion of Lots 122 and 123 of Tract 1996, a map of said Tract 1996 being recorded in Book 17 of Maps at page 83 in the office of the County Recorder of said County; said portion of said Lots being more particularly described as follows: Beginning at the most northerly corner of said Lot 122, as shown on said Map; Thence, along the northerly line of said Lot 122, as shown on said Map, S 17° 03' 16" W 114.59 feet to a comer common to said Lots 122 and 123, as shown on said Map, said point being the True Point of Beginning; Thence, along the boundary of said Lot 123, as shown on said Map, along the following courses: N 8° 49' 00" W 360.23 feet; S 810 11' 00" W 83.94 feet; S 8° 52' 24" E 2889.66 feet to the southwesterly comer of said Tract 1996, as shown on said Map; Thence, along the southerly line of said Tract 1996, as shown on said Map, N 81° 11' 10" E 285.75 feet; Thence, leaving said southerly line and along the following courses: N 16° 35' 2T' W 48.39 feet; N 12° 49' 49" E 43.38 feet; N 45° 45' 24" E 85.13 feet; N 370 12' 08" E 46.63 feet; N 8047' 04" W 22.15 feet; N 42' 38' 24" W 32.08 feet; N 49' 50' 04" W 40.34 feet; N 78° 26' 58" W 69.92 feet; N 68° 13' 31" W 14.82 feet; N 560 06' 12" W 16.47 feet; N 19° 13' 31" W 16.21 feet; N 4° 20' 37" E 15.46 feet; N 4° 00' 37" W 64.52 feet; N 18' 54' 3T' E 72.73 feet; N 23' 15' 19" W • 52.90 feet; N 12' 32' 22" E 53.87 feet; N 6° 32' 34" W 60.81 feet; N 3° 15' 42" E 79.18 feet ; N 6V 29' 13" E 3.16 feet; N 120 53' 32" W 76.70 feet; N 290 30' 53" E 61.25 feet; N 50 25' 21" E 81.64 feet; N 220 35' 29" E 84.96 feet; N 10° 00' 42" E 51.21 feet; N 0° 21' ST' E 193.14 feet; N 20° 34' 50" E 142.13 feet N 8° 43' 08" E 43.87 feet; N 30 27' 13" W 77.22 feet; N 4" 06' 09" W 115.49 feet; N V 25' 26" W 30.35 feet; N 110 42' 06" W 85.74 feet; N 210 50' 1T' W 92.35 feet; N 320 02' 13" W 99.45 feet; N 260 57' 05" W 33.23 feet; N 200 15' 09" W 21.91 feet; N 0° 47' 48" E 22.65 feet; N 18° 24' 11" E 27.37 feet; N 39° 51' 05" E 21.55 feet; N 540 22' 42" E 23.33 feet; N 350 17' 28" E 16.26 feet; N 280 07' 2T' W 39.97 feet; N 630 01' 05" W 74.88 feet; N 72' 28' 25" W 30.06 feet; N 880 10' 31" W 15.17 feet; S 780 04' 59" W 22.75 feet; S 680 56' 01" W 22.89 feet; S 83° 48' 08" W 16.02 feet; N 830 53' 21" W 15.59 feet; N 720 31' 40" W 22.96 feet; N 530 36' 12" W 15.40 feet; N 53° 58' 19" W 31.07 feet; N 680 25' 22" W 63.74 feet; N 63° 01' 02" W 39.70 feet; N 720 08' 58" W 53.76 feet; N 580 36' 27" W 23.11 feet; N 430 26' 14" W 59.37 feet; S 74' 57' 43" W 4.05 feet; N 460 10' 39" W 48.04 feet; N 13' 38' 00" W 30.98 feet; N 25' 36' 13" W 47.04 feet; N 17' 59' 54" W 10.79 feet; N 60 38' 41" W 72.40 feet; N 1° 10' 00" W 43.47 feet; N 4r 03' 22" W 10.14 feet to the True Point of Beginning. Except therefrom Lot 35 of Block 19H, Lot 1 of Block 19G, and Lot 32 of Block 19f of Atascadero Beach as shown on said Map. Containing 22.83 acres • E1422\1221231ddw TPOB PARCEL 1 Most northerly corner of Lot 122 of Tract 1996 Faw6mpmo� 1' = 400' CQ .a w U a a a m o Q a. F n11� �SVVnn ICJ a 1 / EI'll< H U 5 l J A r RESOLUTION NO. 09-98 RESOLUTION ESTABLISHING A TWO HOUR PARKING LIMITATION: MORRO BAY BOULEVARD FROM MAIN STREET TO MARKET AVENUE the City Council City of Morro Bay, California WHEREAS, Morro Bay Municipal Code Section 10.36.050 provides City Council authority to designate limited time parking on any street in the City; and WHEREAS, it has been requested by affected business owners that a two hour parking limitation be placed along Morro Bay Boulevard between Main Street and Market Avenue; and WHEREAS, it is determined to be in the interest of public well-being to place such a limit. NOW, THEREFORE, BE IT RESOLVED by the City Council, City of Morro Bay that Morro Bay Boulevard from Main Street to Market Avenue is hereby designated for a two hour parking limitation; and BE IT FURTHER RESOLVED this limitation shall become effective upon the installation of • signage reflecting this action. PASSED AND ADOPTED by the City Council at a regular meeting thereof held on the 26th day of January, 1998 by the following vote: AYES: Anderson, Elliott, Peirce, Peters, Novak NOES: None ABSENT: None ABSTAIN: None ATTEST: CATHY NOVAK, Mayor 1 BRIDGET% r m LA W- RESOLUTION NO. 08-98 RESOLUTION RESCINDING SEVERELY RESTRICTED WATER SUPPLY CONDITIONS AND RESTORING NORMAL WATER SUPPLY CONDITIONS THE CITY COUNCIL, City of Morro Bay, California WHEREAS, Pursuant to Morro Bay Municipal Code Section 13.04.320, et. seq., the City Council has the power and authority to declare the level of potable water low in the community, based upon findings, and implement measures to conserve water; and WHEREAS, via Resolution No. 76-92 adopted on June 22, 1992 the City Council declared a Level 3 Severely Restricted Water Supply condition based upon water quality concerns related to the lingering drought -related impacts of elevated nitrate concentrations in City wells; and WHEREAS, nitrate concentrations in the delivered water supply continued to be seasonally elevated in the intervening time, making it appropriate to continue mandatory conservation measures; and WHEREAS, the commencement of deliveries from the State Water Project have resulted in substantial reductions in the concentrations of nitrates and other constituents to the extent that water quality concerns are alleviated; and WHEREAS, the community's conservation of water resources is such that the annual average • personal water use allows for a lifting of the mandatory measures of the Level 3 Severely Restricted Water Supply condition to a Normal Water Supply Condition in accord with the Water Management Plan. NOW, THEREFORE, BE IT RESOLVED by the City Council, City of Morro Bay that the Level 3 Severely Restricted Water Supply condition is hereby rescinded and further that it is determined and declared that a Normal Water Supply condition exists. PASSED AND ADOPTED by the City Council, City of Morro Bay at a regular meeting thereof held on the 26th day of January, 1998 by the following vote: AYES: Anderson, Elliott, Peirce, Peters, Novak NOES: None ABSENT: None ABSTAIN: None ATTEST: CATHY NOVAK, Mayor i�BAUER, City Clerk RESOLUTION NO. 07 -98 AUTHORIZING THE MAYOR TO EXECUTE EASEMENT AND LICENSE AGREEMENTS WITH PACIFIC GAS AND ELECTRIC COMPANY TO COVER SEVERAL EXISTING AND PROPOSED CITY USES AT THE MORRO BAY POWER PLANT SITE. THE CITY COUNCIL City of Morro Bay, California WHEREAS, the Pacific Gas and Electric Company (PG&E) holds title to certain property located in the City of Morro Bay and known as the Morro Bay Power Plant Site; and, WHEREAS, the City of Morro bay (City) and PG&E over the years have entered into both formal and informal agreements whereby the City has had the permission of PG&E to use certain portions of PG&E property. The City's existing and/or proposed uses on the Morro Bay Power Plant Site consist of bike paths, Lila Keiser Park, a gear storage facility shed, and water wells.; and WHEREAS, PG&E and the City now wish to enter into formal written easement • and license agreements for the City's existing and proposed uses of said property. NOW, THEREFOR, BE IT RESOLVED by the City Council of the City of Morro Bay that the Mayor is hereby authorized to execute the easement and license agreements to formalize the existing and proposed uses at the Morro Bay Power Plant Site. PASSED AND ADOPTED by the City Council of the City of Morro Bay at the regular meeting held thereof on the 12th day of January, 1998, by the following vote; AYES: Anderson, Peirce, Peters, Novak NOES: Elliott ABSENT: None nr.kk-/ CATHY NO AK, MAYOR BRIDGEIT B UER, CFFY CLERK • RWS/jlb h:ImbayladmcnI a Iule.mm . RESOLUTION NO. 06-98 A RESOLUTION APPROVING AGREEMENT TO EXTEND TIME TO CONSIDER CHARTER COMMUNICATIONS TRANSFER REQUESTS AND PROVIDE FOR DENIAL OF THE TRANSFER REQUESTS IF THE AGREEMENT IS NOT TIMELY SIGNED WHEREAS, on February 27, 1986, the City of Morro Bay entered into an agreement with Sonic Cable Television of San Luis Obispo, pursuant to which the City of Morro Bay granted Sonic Cable Television of San Luis Obispo ("Sonic") a franchise to operate a cable television system in the City of Morro Bay; and WHEREAS, Sonic is wholly owned by Sonic Communications, Inc. ("SCP') which is in turn wholly owned by Sonic Enterprises, Inc. ("SEI"); and WHEREAS, Sonic, Sonicvest and CCP (the "Requesting Parties") have asked the City of Morro Bay to approve (1) a transaction that will ultimately result in an assignment of SEI's shares to Sonicvest, and (2) an additional transaction that will result in a sale of assets from Sonicvest to Charter Communications, L.L.P. ("CCP"), and thereby result in a change of control of the franchise from Sonic to CCP more fully described in FCC Form 394s submitted to the City of Morro Bay on • or about September 29, 1997 (collectively, the transactions are referred to as the "Transfer"); and WHEREAS, as of the date of this Resolution, the City of Morro Bay does not have sufficient information before it that would enable it to act favorably on the request to approve the Transfer and there are outstanding issues that would need to be resolved in order to ensure that the City of Morro Bay and the public are not adversely affected by the Transfer; and WHEREAS, it is the position of the requesting parties that, absent an extension of time, the City of Morro Bay would be required to act upon the transfer requests by January 27, 1998; and WHEREAS, the Requesting Parties and the City of Morro Bay believe that it is appropriate to provide additional time for the City of Morro Bay to act upon the Transfer beyond that date, and it is therefore appropriate to provide for such extension. NOW, THEREFORE BE IT RESOLVED by the City Council of the City of Morro Bay the following: 1. The City Manager is authorized to enter into an agreement substantially in the form of Exhibit A to this Resolution. 2. If Sonic, Sonicvest, or CCP fails to sign the agreement by noon on January 27, 1998, the . requests for approval of the transactions that constitute the Transfer shall be deemed denied as of the date of this Resolution. • PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting thereof held on the 12th day of January, 1998 by the following vote: AYES: Anderson, Elliott, Peirce, Peters, Novak NOES: None ABSENT: None ABSTAIN: None CATHY NOVAK, Mayor ATTEST: BRIDGETUAUER, City Clerk • 0 CITY COUNCIL RESOLUTION NO. 05-98 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, AMENDING THE OPERATING AND CAPITAL IMPROVEMENT BUDGETS AND MAKING SUPPLEMENTAL APPROPRIATIONS FOR FISCAL YEAR 1997-98 FOR THE CITY OF MORRO BAY THE CITY COUNCIL City of Morro Bay, California WHEREAS, the City of Morro Bay is required to appropriate and expend public funds to conduct its business activities on a day-to-day basis; and WHEREAS, the City Council fords and determines that the efficiency, economy and effectiveness of City government operations would be substantially impaired if such appropriation were not made; and WHEREAS, Section 37208 of the California Government Code provides that payments or demands conforming to a budget approved by ordinance or resolution need not be audited by the City Council prior to payment; and WHEREAS, the City Council adopted the original Operating and Capital Improvement Budgets on June 9, 1997 by adoption of Resolution No. 42-97; and WHEREAS, the City Council finds it necessary to amend said budgets. NOW THEREFORE, BE IT RESOLVED that the operating budgets of the City of Morro Bay are amended by modifying appropriations as shown on the attached summary schedule. PASSED, APPROVED, AND ADOPTED, by the City Council of the City of Morro Bay, on the 12th day of January, 1998, by the following vote to wit: AYES: Anderson, Elliott, Peirce, Peters, Novak NOES: None ABSENT: None CATHY NOVAK, Mayor 0 0 O Q aD co a o d a d ci m E E E E E E E r rr rr Ir � rn rn rn CD rn rn a a a co N N N N N 0 O f0 00 aD OD a a7 0 000 J O O O O O O O O 10 II N O a O O O O O II N V O J O f0 O O O O N O n II -- O O r ! -n N 6 H N i p II CO N M E 1A 69 ` O W f9 i N II � J I I C to i I I J w O J J I I I I J J � J II 11 11 i J I I i C C LL A LL? • a� a0i c 5 7 LL U U 'a d Vy O N C= LL ` gLL C Cca C C C i C p y t1 C LL C LL 4) > C LL LL IL a p IL > C O > c d > m r N CD rn > — v m Q «' 0) 0) aoi E w aoi aa) a�i ca LL m m U (7 C9 F to O jj�o c CD _ m a7 V) _ V) c r O x cmV! � N a a1 a U .w U o 'n a) N E N o N F rn E 'a n m 0 c Q a a) m 9 U cnWp m cOi ai `� m _ F"i W A> S Q a� L c W L a) E O 1.� Y O N V O U a)w J m LL N O Ocm o f t o '� n Q c 0 U LL O O j W v ,� O a7 a7 W U LL ~ o o iMrno m m cc p aN O oVo'1 a) 4. `a c d j U • � v � Q � W U � ao rn a a Q a U) RESOLUTION NO.04-98 • A RESOLUTION APPROVING A VIDEO PRODUCTION AND NUTMEG INSERTION POINT MANAGEMENT SERVICES AGREEMENT BETWEEN THE CITY OF MORRO BAY AND AGP VIDEO FOR THE PERIOD JANUARY 12,1998 THROUGH APRIL 11, 1998 T H E C I T Y C O U N C I L City of Morro Bay, California WHEREAS, the City of Morro Bay, hereinafter referred to as "City," entered into an agreement with Alpha Video to provide video production services to tape City Council meetings for broadcast on Sonic Channel 54 July 1, 1997 and terminating December 31, 1997; and WHEREAS, the City Council has determined it is in the public interest to enter into a Video Production and Nutmeg Insertion Point Management Services Agreement with AGP Video hereinafter referred to as "Contractor," for the period January 12, 1998 through April 11, 1998 to continue taping City Council meetings for broadcast on Sonic Channel 54 and to manage the Nutmeg insertion point; and WHEREAS, Contractor has the management and technicalpersonnel and other assets necessary to provide such video production and insertion point management services; and WHEREAS, City desires to retain Contractor to provide such video production and insertion point management services; and • WHEREAS, Contractor desires to provide such video production and insertion point management services to City during the term of the Video Production and Nutmeg Insertion Point Management Services Agreement. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay as follows: The Video Production and Nutmeg Insertion Point Management Services Agreement with AGP Video for the period January 12, 1998 through April 11, 1998 with an option at the City's sole discretion to extend said Agreement for an additional period, attached hereto and incorporated herein by reference, is hereby approved. 2. The City Manager is hereby authorized to execute said Agreement on behalf of the City. PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting thereof held on the 26th day of January, 1998 by the following vote: AYES: Anderson, Elliott, Peirce, Peters, Novak NOES: None ABSENT: None ABSTAIN: None CAW, � W-q� CATHY NO AK, Mayor . 1 / 0 I 1 �I.YI)_QI1lIl[IJ►��G7�17�EI3 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA ADOPTING GUIDELINES FOR SELECTION AND QUALIFICATIONS OF ADVISORY BOARD MEMBERS THE CITY COUNCIL City of Morro Bay, California WHEREAS, the City Council adopted a Policy Statement for Selection of Advisory Board Members on January 25, 1995; and WHEREAS, the City Council now wishes to amend said policy to conform to past practices to allow non-residents to serve on certain Advisory Boards. • NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Mono Bay, California, does hereby adopt the attached amended City Council Policy Statement for Selection and Qualifications of Advisory Board Members. PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting thereof held on the 9th day of February, 1998 on the following vote: AYES: Anderson, Elliott, Peirce, Novak NOES: Peters ABSENT: None ATTEST: BRIDGETT 6�UER', City Clerk 'a CATHY NOVA C, Mayor • CITY COUNCIL POLICY STATEMENT SUBJECT: Guidelines for Selection of Advisory Board Members BACKGROUND The City Council has established and may continue to establish advisory bodies to perform specific tasks for the City. This process furthers the goal of a participatory government, and encourages open communications between the City Council and its citizens. Advisory Board and Commission members provide advice and input to the City Council and serve as proactive and reactionary sounding boards on various issues and problems confronting the City. Citizens appointed by the City Council to serve on advisory bodies render valuable service to their community and to the City. POLICY The City Council will set a specified date and time to interview every candidate for appointment to an Advisory Board or Commission. Interviews before the Council are required of incumbents seeking re -appointment as well as first-time applicants. • 2. Candidates unable or unwilling to appear for the scheduled interview before the City Council shall not be considered for appointment. 3. Members shall not hold any other public office in the City, or employment in the City government 4. Advisory Board and Commission members shall be a qualified voter of the City of Morro Bay, except as provided in this document. 5. Absence of a duly -appointed Advisory Board or Commission member from three consecutive meetings of their respective Board or Commission during the calendar year, without formal consent of the Board or Commission recorded in its official minutes, constitutes the voluntary resignation of such absent member and the position shall automatically be declared vacant. 6. January 31st is hereby established as the month and day all terms expire in the year specified when members are appointed. Length of terms shall be determined by the City Council. 7. The City shall write a letter to organizations encouraging recommendations for Board and Commission positions that are open for selected categories. This Policy Statement shall be attached to all Applications for Appointment to inform prospective candidates of its content and applicable City policies. Advisory Board by- laws shall be amended to conform with this policy. • CITY OF MORRO BAY ADVISORY BOARDS AND COMMISSIONS The following is a summary of the various permanent Advisory Boards and Commissions appointed by the City Council: COMMUNITY PROMOTIONS COMMITTEE The Community Promotions Committee consists of seven (7) members, four of which must be qualified electors of the City of Morro Bay. The City Council will attempt to select members from the following categories: Morro Bay Chamber of Commerce one member Morro Bay Merchants Association one member Morro Bay Motel & Restaurant Association one member Embarcadero Business Person one member Members -at -Large three members ** ** (The City Council will add emphasis to selecting a person representing special events for one Member -at -Large position). The purpose of the Committee is to provide input and recommendations to the City Council on policies and expenditure programs to advertise and promote Morro Bay as a tourists • destination point. The City Manager and Executive Manager of the Chamber of Commerce serve as non -voting staff liaison to the Committee. The Community Promotions Committee meets the first Wednesday of each month at 8:30 a.m. in the City Hall Conference Room. HARBOR ADVISORY BOARD The Harbor Advisory Board consists of seven (7) members, four of which must be qualified electors of the City of Morro Bay. The City Council will attempt to select members from the following categories: Morro Bay Commercial Fishermen's Association; Waterfront Leaseholders Association; Marine -oriented Business; Recreational Boating; and Three (3) Members -at -Large. The Harbor Advisory Board is charged to review, advise and recommend to the City Council on items pertaining to the City's harbor. These include, but are not limited to use, control, promotion and operation of vessels and watercraft within the harbor; docks, piers, slips, utilities and publicly -owned facilities as part of the City's harbor; and water commerce • navigation, or fishery in the harbor. The Board meets on the first Thursday of each month at 7:00 p.m. in the Library Program Room. • PLANNING COMMISSION The Planning Commission is established under the provision of Government Code Section 65100 et seq. It is the only City Board with legal status and decision making authority. The Planning Commission consists of five (5) members which are qualified electors of the City. They are responsible for developing a general plan and recommending its adoption; developing specific plans as necessary to implement the general plan; and other functions as Council may direct. The Planning Commission meets the first and third Mondays of each month at 7:00 p.m. in the Veterans Memorial Building. RECREATION AND PARKS COMMISSION The Recreation and Parks Commission consists of seven (7) members, five of which must be qualified electors of the City of Morro Bay. Two (2) of the members shall represent special groups: one shall represent a youth -serving organization, and one member shall represent a senior adult service organization. The Commission advises the City Council on matters pertaining to parks and public recreation operations, planning and programming. • The Recreation and Parks Commission meets the second Thursday of each month at 6:30 p.m. in the Community Center Multi -Purpose Room. PUBLIC WORKS ADVISORY BOARD The Public Works Advisory Board consists of seven (7) members, five of which must be qualified electors of the City of Morro Bay. The purpose of the Public Works Advisory Board is to advise the City Council on matters pertaining to Franchise Services, Waste Management, Transportation, Water, and City infrastructure needs. The Board meets on the second Wednesday of each month at 7:00 p.m. in the Community Center Multi -Purpose Room. 0 0 CITY COUNCIL RESOLUTION NO. 01-98 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, ADOPTING THE CITY OF MORRO BAY INVESTMENT POLICY AND DELEGATING AUTHORITY TO THE CITY TREASURER TO INVEST IDLE FUNDS WHEREAS, the City Council of the City of Morro Bay desires to prudently invest idle funds of the city to maximize use of taxpayer funds; and WHEREAS, the California Government Code Section 53600.3 states that "all governing bodies of local agencies or persons authorized to make investment decisions on behalf of those local agencies investing public funds pursuant to this chapter are trustees and therefore fiduciaries subject to the prudent investor standard.'; and WHEREAS, the California government Code Section 53646 requires all local agency governing boards to annually adopt an investment policy and requires the Treasurer or Chief Financial Officer to provide an investment report to the legislative body at least quarterly; and WHEREAS, the California Government Code Section 53607 authorizes the legislative body to delegate investment authority and responsibility to the Treasurer for a period not to exceed one year but renewable annually, upon review; and • WHEREAS, the City of Morro Bay first adopted its current investment policy in 1996 and that policy has been further refined during 1997. 11 NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay that the Statement of Investment Policy, attached hereto, is adopted and that the City Treasurer is hereby authorized to carry out this policy, on behalf of the City Council. PASSED, APPROVED, AND ADOPTED, by the City Council of the City of Morro Bay, on the 12th day of January, 1998, by the following vote to wit: AYES: Anderson, Elliott, Peirce, Peters, Novak NOES: None ABSENT: None CATHV NOVAK Mayor BRIDGETTAUER, City Clerk uuvfswraxtwum I .m u WI,. M 0 CITY OF MORRO BAY Monies not required for immediate expenditure by the City of Morro Bay shall be invested in compliance with governing provisions of law (including Section 53600 of the Government Code) and this Investment Policy. ., It is the policy of the City of Morro Bay to invest funds in a manner which will provide the highest investment return with the maximum security while meeting the daily cash flow demands of the city and conforming to all federal, state and local statutes governing the investment of public funds. W.• This investment policy applies to all financial assets of the City of Morro Bay. These funds are accounted for in the City's Comprehensive Annual Financial Report and include: • Funds: General Fund Special Revenue Funds Enterprise Funds Capital Project Funds Trust and Agency Funds Internal Service Funds And any other fund maintained by the City, unless specifically exempted. Investments shall be made with judgment and care, under circumstances then prevailing, which persons of prudence, discretion and intelligence exercise in the management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as their probable income to be derived. The standard of prudence to be used by investment officials shall be the "prudent person" standard and shall be applied in the context of managing an overall portfolio. Investment officers acting in accordance with the investment policy and exercising due diligence shall be relieved of personal Ov4� t4 Page 1 • Statement of Investment Policy City of Morro Bay, California January, 1998 responsibility for an individual security's credit risk or market price changes, provided deviations from expectations are reported in a timely fashion and appropriate action is taken to control adverse developments. The primary objectives, in priority order, of the City of Morro Bay's investment activities shall be: Safety: Safety of principal is the foremost objective of the investment program. Investments of the City of Morro Bay shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. To attain this objective, diversification is required in order that potential losses on individual securities do not exceed the income generated from the remainder of the portfolio. Liquidity: The City of Morro Bay's investment portfolio will remain sufficiently liquid to enable the city to meet all operating requirements which might be reasonably anticipated. Return on Investments: The City of Morro Bay's investment portfolio shall be designed with the • objective of attaining a rate of return throughout the budgetary and economic cycles, commensurate with the city's investment risk constraints and the cash flow characteristics of the portfolio. Pursuant to Section 53607 of the Government Code, the Treasurer of the City of Morro Bay shall be delegated authority and assume full responsibility for investing and reinvesting idle funds of the city. In accordance with SB109, Chapter 749, 1996 statutes, the City Council shall annually delegate such authority and responsibility, subject to review. In further accordance with SB 109, the City Council is trustee and therefore fiduciary subject to the prudent investor standard and, delegation of authority to the Treasurer does not relieve the City Council of that trustee role. Officers and employees involved in the investment process shall refrain from personal business activity that could conflict with proper execution of the investment program, or which could impair their ability to make impartial investment decisions. Employees and investment officials shall disclose to the City Manager any material financial interests in financial institutions that conduct business within this jurisdiction, and they shall further disclose any large personal financial/investment positions that could be related to the performance of the City of Morro Bay, particularly with regard to the time of purchases and sales. °"�"""' Page 2 • Statement of Investment Policy City of Morro Bay, California January, 1998 The Treasurer will maintain a list of investment brokers/dealers and financial institutions authorized to provide investment and safekeeping services for the city. All broker/dealers and financial institutions who desire to become qualified bidders for investment transactions and related services shall supply the Treasurer with the following: Current audited financial statements Proof of registration with the National Association of Security Dealers (NASD)(Broker/Dealers) and Small Investors Protection Corporation (SIPC) Certification of having read the City of Morro Bay's Investment Policy Certification of authorization to do business in the State of California Governing laws of the State of California permit local agencies to invest in a range of investment instruments that vary in complexity and sophistication, as well as risk and reward. Due to the limited size of the City of Morro Bay's portfolio, the city does not require frequent entry into the investment marketplace. Under these circumstances, it would be prudent for the city to limit the range of • investment instruments to a subset of those allowable, in order to provide for diversification and at the same time limit the risk associated with limited entry into the marketplace. Suitable investment instruments shall include the following and all transactions shall be on a delivery versus payment (DVP) basis: Securities of the U. S. Government, or its agencies. California Local Agency Investment Fund Demand Deposits FDIC Insured Certificates of Deposit Bankers' Acceptances Money Market funds whose portfolios consist of the foregoing Passbook savings accounts Except for securities of the U.S. Government, or its agencies, and for the LAIF fund, maturities on each investment shall not exceed three (3) years from date of purchase. The City of Morro Bay will diversify its investments by security type and institution to the greatest extent practicable. With the exception of securities of the U.S. Government, or its agencies and the California Local Agency Investment Fund, no more than 40% of the city's total investment pool will OavW16.I9V] Page 3 . Statement of Investment Policy City of Morro Bay, California January, 1998 be invested in a single security type or with a single financial institution. Repadin The Treasurer is charged with the responsibility of making a monthly investment portfolio report to the City Council of the City of Morro Bay. The monthly report shall include an accounting for all cash and investments in the portfolio and shall include both cost and marked -to -market value as of the end of the monthly reporting period. . Investment Policy Adoption The city's investment policy shall be adopted by resolution of the City Council. The policy shall be reviewed annually by the City Council and any modifications made thereto must be approved by the City Council. The City Council shall also delegate authority to make investments by resolution on an annual basis. • V:49h1\'N]blVFinP1'PoLCYINtl Ool� If, 1991 Page 4 Statement of Investment Policy City of Morro Bay, California January, 1998 Glossary of Terms Bankers' Acceptance: A draft or bill or exchange accepted by a bank or trust company. The accepting institution guarantees payment of the bill, as well as the issuer. Broker: A broker brings buyers and sellers together for a commission. Certificate of Deposit: A time deposit with a specific maturity evidenced by a certificate. Comprehensive Annual Financial Report (CAFR): The official annual report of the City of Morro Bay. It includes combined statements of each individual fund and account group prepared in conformity with GAAP. It also includes supporting schedules necessary to demonstrate compliance with finance -related and contractual provisions, introductory material and a detailed statistical section. • Delivery Versus Payment: One of two methods of delivery of securities. Similar to an escrow for a home loan, where a third party holds both the payment and the security and exchanges them after all specifications have been met. Diversification: A method for reducing investment risk by using a variety of investment instruments and financial institutions to avoid a single catastrophic failure. FDIC: Federal Deposit Insurance Corporation is a federal agency that insures bank deposits up to $100,000 per deposit. Liquidity: A liquid asset is one that can be quickly and easily converted into cash without a substantial loss in value. LAIF: California Local Agency Investment Fund is an investment pool which aggregates all funds from political subdivisions and invests them under the custody of the State Treasurer. Market Value: The price at which a security is trading and could presumably be sold or purchased. Maturity: The date upon which the principal or stated value of an investment becomes due and payable. Page 5 Statement of Investment Policy City of Morro Bay, California January, 1998 Money Market: The market in which short-term debt instruments are issued and traded. Portfolio: The collection of securities held by an investor. Safekeeping: A service rendered by banks for a fee whereby securities and valuables of all types are held in the bank's vault for protection. • I� V:49D1WPPIVE4IblVNLCYJHV Page 6