Loading...
HomeMy WebLinkAboutCC_1985-03-11 Regular Meeting MinutesMORRO BAY CITY COUNCIL REGULAR MEETING -MARCH 11, 1985 RECREATION HALL -7:30 P.M. ROLL CALL PLEDGE OF ALLEGIANCE AGENDA INVOCATION -CHARLES ERICKSON, ST. PETERS EPISCOPAL CHURCH Members of the public wishing to address the Council are requested to limit their comments to a 5 minute time period. PRESENTATION: Presentation of 20-year pin and resolution of commen- dation to Nellie C. Cecil A. PUBLIC HEARINGS, REPORTS & APPEARANCES A-1 PRESENTATION BY APPELLANT ON COUNCIL DENIAL OF APPEAL TO CUP 38-84 -TRAVELODGE MOTEL (JERRY HEMPENIUS) A-2 CONSIDERATION OF ASSIGNMENT OF LEASE SITES NO. 102, 102W, AND 105.1W, 105.2 -BREBES B. UNFINISHED BUSINESS NONE C. NEW BUSINESS C-1 RENEWAL OF CITY LEASE, MOORING ZONE A1-4 (MORRO BAY MARINA) C-2 DISCUSSION OF POLICY REGARDING LEASE ASSIGNMENT C-3 LEASE CODE INSPECTION SERVICES PROPOSAL CODE VIOLATIONS UPON C-4 FUNDING AUTHORIZATION, PHOTOGRAPHY PROMOTIONAL OF CHESS LIVE! D. CONSENT CALENDAR D-1 CITY COUNCIL MINUTES OF THE REGULAR MEETING OF FEBRUARY 25, 1985 D-2 RESOLUTION NO. 18-85 APPROVING CITY SPONSORSHIP FOR CALIFORNIA ARTS COUNCIL ARTISTS' GRANT D-3 RESOLUTION NO. 15-85 COMMENDING NELLIE C. CECIL FOR HER 20 YEARS OF SERVICE TO THE CITY D-4 QUITCLAIM OF EASEMENT, LOTS 3 & 4, BLOCK 6 OF TRACT NO. 81 - JANZEN (RESOLUTION NO. 14-85) AGENDA -MORRO BAY CITY COUNCIL MEETING OF MARCH 11 , 1985 PAGE TWO D-5 DECLARATION OF SURPLUS PROPERTY D-6 FIRE MUTUAL AID AGREEMENTS WITH CAYUCOS FIRE DISTRICT AND SOUTH BAY FIRE DEPARTMENT -GSA 9-B D-7 SET HEARING DATE TO CONSIDER APPEAL OF PLANNING COMMISSION DENIAL OF CASE NOS . TENTATIVE TRACT MAP 1262, CUP 03-85 AND DDP 01 -85r (SET APRIL 8 , 1985) E . INDIVIDUAL DETERMINATION AND/OR ACTION E-1 CITY COUNCIL E-2 CITY ADMINISTRATOR E-3 CITY ATTORNEY F . ADJOURNMENT To March 12th Joint Meeting with Cayucos Sanitary District in Cayucos at 7 P .M. *NEXT MEETING : MARCH 25TH , 7 P .M. MINUTES -MORRO BAY CITY COUNCIL REGULAR MEETING -MARCH 11, 1985 RECREATION HALL -7:30 P .M. Mayor Zeuschne r called the meeting to order at 7:30 p .m. ROLL CALL PRESENT: STAFF: Bud Zeuschner Ray Kaltenbach Jim Miller Bruce Risley Rose Marie Sheetz Gary Napper Michael Lesage Forrest Henderson Mike Mu ltari Nick Nichols Jack Wallace Steve Wolter Elane Novak Mayor Councilmember Councilmember Councilmember Councilmember City Adm inistrator City At torney Asst. to the City Adrnin . Comm. Development Dir. Public Works Director Property Manager Recreation Director Deputy City Clerk The Pledge of Allegiance Charles Erickson of st. invocation . was led by Horace Strong, and Reverend Peters Episcopal Church gave the PRESENTATION: Mayor Zeuschner presented Nellie Cecil with a resolution of commendation for her 20 years of City. 20 year pin and service to the The Mayor then commended Councilmember Sheetz on her Outstanding Woman of the Year Award for this Supervisorial District in the County of San Luis Obispo. May or Zeuschner announced $300,000 from the State to Center . He thanked Steve proposal. that the City has been granted build the Morro Bay Community Wo lter and staff for writing the A. PUBLIC HEARINGS, REPORTS & APPEARANCES A-1 PRESENTATION BY APPELLANT ON COUNCIL DENIAL OF APPEAL TO CUP 38-84 -TRAVELODGE MOTEL (JERRY HEMPENIUS) Mike Multari gave the report on this matter indicating that a Conditional Use Permit had been granted and no further action was necessary. Mr. Don West, who represents Mr . Hempenius indicated that Mr . Hempenius is proposing to make improvements to the property and has no quarrel with the recommendations made by staff. The one MINUTES -MORRO BAY CITY COUNCIL REGULAR MEETING -MARCH 11, 1985 PAGE TWO problem they have encountered is removal of There are utility lines running under the pole of the sign would not be advantageous. They Council take this one request under consideration the sign would jeopardize the business . one pole sign. and any lowering asked that City as removal of MOTION: Councilmember Risley asked for background and data and next Council seconded by (5-0) asked that this matter be brought to the meeting for Public Hearing . The motion was Councilmember Miller and unanimously carried. A-2 CONSIDERATION OF ASSIGNMENT OF LEASE SITES NO . 102, 105 .1W , 105 .2 -BREBE S 102, AND Mr. Henderson reviewed the City Administrato r's report on this matter reviewing the recent history of this case . He advised that the Harbor Commission had voted 3-2 to deny the transfer of the lease sites to Mr . Gunther . Councilmember Risley asked Jack Wallace, Property Manager, about a report that the City had made in 1983 on violations of main- tenance of the property; he wanted to know if notification had been given to the lease holders regarding the violations . Mr . Wallace stated that the files give no indication that notifica- tion had been made to the lease holder . Councilmember Risley asked if the public hearings where these code violations were publicly d i scussed could be considered notice and Mr. Wallace said that the public meetings could constitute notice. Councilmember Risley said he understood from the report that went to the Harbor Commission that neither the repairs needed in 1983 or current ones have been made . He investigated the site himself and found diesel oil leaking out onto the property . Mayor Zeuschner opened the matter to public hearing. Mr. Edward Huto, represe n ting Frank Brebes , explained that he was representing Mr. Brebes in the litigation between the partners in Brebes Ocean House , Inc . In October of 1984 the Brebes, Inc . people met and agreed they would set aside their differences and sell the property and that would resolve some of their problems . Mr . Huto said that Mr. Gunther was the only buyer who came forth and offered a price they could accept. He said he also had heard the rumor that there was another buyer but that buyer had not come forward, so they had gone ahead with Mr. Gunther . Mr . Huto stated that Mr . Gunther has agreed to provide the City with a performance bond which is now part of the escrow instructions ; also the Brebes, Inc . shareholders have provided a hold harmless indemnity agreement for the City. Brebes will try to take care of some of the minor violations before the sale is accomplished . MINUTES -MORRO BAY CITY COUNCIL REGULAR MEETING -MARCH 11, 1985 PAGE THREE Councilmember Risley asked Mr . Huto what percentage of the value of the proper t y is constituted in City leases, since part of the property is privately owned . Mr. Huto said that it would be difficult to estimate since water leases are not of much value without the landside property , however, enhancement of the real property depends on the water area. Councilmember Miller asked what would happen if the sale for this lease site falls through . Mr . Huto stated that the share- holders have been investing cash into the business for the past 5 years and that there will be creditors coming due within the next few months; he does not believe that Brebes, Inc . can keep their doors open more than a month or so . Comments in opposition to assigning the leasehold interests to Mr . Gunther were heard from Cliff Smith, Jody Giannini, Howard Gaines, Nelson Sullivan and Nancy Bast. Ms . Bast reviewed Mr. Gunther's past performance on current lease sites and also compared prices for boat haul out and storage charged by Mr . Gunther that were excessive compared to Port San Luis. Comments supporting the transfer were heard from Cal Gunther, Ron Baker, Ray Gallo and Ed Ewing. Mr . Ewing stated that he had spoken to several of the fishermen who had signed the petition circulated by Nelson Sullivan and a number of them had changed their mind s stating that they had not seen the whole picture and were under the impression they were helping the fishermen . He presented their statements to Council . Comments and suggestions were also heard from Robert Lane, Steve Sweetwood, Dick Weiss, Reverend Erickson and Jeff Odell . Mr. Lesage reminded Council that the question before them is whether or not there is some reasonable basis for denying the request; is the proposed lessee qualified to run this business? Ralph Gunther stated that he leases 2 sites on the Embarcadero and at no time have they been in default; he has been engaged in a systematic upgrading of the lease sites. He noted his letter addressed to Mr. Napper which outlines his intentions for the lease sites, a guarantee of a performance bond , and a letter from his CPA stating that he is financially able to conduct the business . MOTION: Councilmember Kaltenbach moved the hearing be closed to the public. The motion was seconded by Councilmember Risley and unanimously carried . (5-0) Councilmember Sheetz stated that she could not vote in favor of the lease transfer because it would not be in the best interests of the City. MINUTES -MORRO BAY CITY COUNCIL REGULAR MEETING -MARCH 11, 1985 PAGE FOUR Mayor Zeuschner stated that he would rather see th e lease go to someone who would make the improvements than not to assign the lease and let it fall into disrepair. Councilmember Miller was in favor of assigning the lease to Mr. Gunther stating th at he has the experience to run the operation and will make the necessary repairs. * Councilmember Kaltenbach felt that something should have been done year s ago about making the lessee comply with the terms of the lease; this Council should enforce the leases . MOTION : Councilmember Risley moved that Council deny the assignment of Lease Sites 102, 102W and 105.1W, 105.2 to Ralph and Shirley Gunther and proceed immediately under the t erms of the leases to carry out default proceedings so as to recover the l ea se sites for the public. The motion was seconded by Councilmember Sheetz. Councilmember Risley stated that he had spent considerable time and research on lease sites. He quoted sections from various types of leases which show the righ t of the City to take control of leases and manage them for the public; he also read sections wh ich obligates the tenant of the property to operate the businesses on the premises with due diligence and efficiency and to keep and maintain the premises and all improvements in good and sanitary order and condition, al l at his sole cost. Tenants signing leases have agreed to these conditions. Councilmember Risley agreed that the core question is whether or not the Assignee is qualified to operate the lease. In his opinion, Mr . Gunther is not and listed a number of reasons for denying the assignment including, substantial pub lic opposition and especially that of fishermen, failure of the proposed as si g nees to operate a boat yard on another City lease in a satisfactory manner , lack of experience with some phase s of the Brebes lease sites, use of boat haul out for long term dry- do cking of personal boat, use of boat haul out yard for storage of cement and other items limiting ability to carry out public trust, the signatures of 7 boat owners claiming refusal of boat hau l outs, lack of aggressive efforts to maintain or i mprove boat yard, the claimed reduction in boat haul outs from average of one per day to one per week, forcing Morro Bay fishermen to seek haul outs in other areas thus harming commerce and business in Morro Bay, parking of personal boat next to a waterfront restaurant and involvement with sub-lessee in lawsuits and counter lawsuits, uncooperative attitude, dumping washing boat scaling and toxic debris into the harbor. * See Attached. Councilmember Miller stated if Mr. Gunther does not get the lease, he would serve as a witness in his court trial because Mr. Gunther should sue the City. Councilmember Miller said that every time he comes to a Council meeting there is a certain group of Councilmembers that already knows what they're going to do, how they're going to vote and how things are going to go. He stated that the Brown Act does not apply only to 3 people getting together as violation of the Act. At the League of California Cities meeting he heard about what is referred to as "onesies and twosies" where one Council- member calls other Councilmembers and asks them how they are going to vote and decisions are made ahead of the meeting; this is still a violation of the Brown Act. He felt that it should be investigated. *Correction of minutes made at the meeting of March 25, 1985. MINUTES -MORRO BAY CITY COUNCIL REGULAR MEETING -MARCH 11, 1985 PAGE FIVE Mr. Napper suggested that staff be directed to come back to Council with a resolution denying the assignment and incor- porating those items outlined by Councilmember Risley . AYES: NOES: Councilmember Risley amended his motion to include that staff be directed to come back with a Resolution deny- ing the assignment as outlined and any additional items that are pertinent. The amendment was accepted by Councilmember Sheetz and carried on the following roll call vote: Kaltenbach, Risley, Sheetz Miller, Zeuschner Council recessed from 10:01 p.m . to 10:09 p.m. B . UNFINISHED BUSINESS None C. NEW BUSINESS C-1 RENEWAL OF CITY LEASE, MOORING ZONE A1-4 (MORRO BAY MARINA) Mr. Henderson reviewed the staff report on this item stating that Council needs to decide whether to extend the lease for an additional 5 years or place the moorings to bid. The Harbor Commission had recommended approval of the 5-year term with no increase in rent payments; staff was recommending the 5-year term with a 15% increase in rent payments . Nancy Bast, Harbor Commissioner, stated that she had voted against the 5-year term extension. She felt that there should be a 1-year renewal with a cost analysis study. Councilmember Risley felt that the appraisal date should be changed from January 1, 1988 to 1986. He would also like staff to bring back another report at the next meeting regarding the rates and how they compare with other areas. He was in favor of the current lessee continuing in the site. Mayor Zeuschner suggested that the lease be extended for 90 days initially to give staff the time to collect the data needed. MOTION: Councilmember Risley moved that the lease be extended for 90 days to al low staff the time to come back to Council with addi tional data. The motion was seconded by Councilmember Sheetz. MINUTES -MORRO BAY CITY COUNCIL REGULAR MEETING -MARCH 1 1 , 1985 PAGE SIX Mr . Napper stated that the information Council is looking for cannot be prepared by staff; it would have to be done by a professional appraiser. Mr . Wallace stated that the 15% increase on the lease site would bring the City an additional $1,419 per year . He noted for Council that there are no comparisons for water lease sites and he is currently contracting for a water appraisal to be done. This should be accomplished in under a year . The motion failed . (0-5) MOTION: Councilmember Risley moved to extend the life of Mooring Zone A1-4 to Morro Bay Marina for an additional 1-year with an earlier appraisal date to January 1986, periodic code inspections and report to the City, lessee to keep a current tenant list and map to City and a rent payment increase of 15%. The motion was seconded by Councilmember Kaltenbach and unanimously carried. (5-0) C-2 DISCUSSION OF POLICY REGARDING LEASE CODE VIOLATIONS UPON ASSIGNMENT Mr . Henderson reviewed the staff report which outlined suggeste d policy statements . Mayor Zeuschner suggested that a check-list be established to be given to lease holders outlining the improvements needed on their sites. MOTION: Councilmember Sheetz moved that Council establish a policy that any and all lease maintenance obligations be corrected and up to code before the City will consider processing an application for lease changes . The motion was seconded by Councilmember Risley and unanimously carried . (5-0) C-3 LEASE CODE INSPECTION SERVICES PROPOSAL Mr. Henderson reviewed the staff report which recommended that Council allocate the remaining $6,062 from FY 84-85 Harbor Fund Contingencies to contract with a building inspector to inspect and prepare reports of code violations on the Harbor leases. MOTION: Councilmember Kaltenbach moved that Council approve the staff recommendation to allocate $6,062 from FY 84-85 Harbor Fund Contingencies to contract for a building inspector, but that the inspector initially concentrate MINUTES -MORRO BAY CITY COUNCIL REGULAR MEETING -MARCH 11, 1985 PAGE SEVEN on those sites that have potential violations ra ther than those that seem to be in obvious compliance. The motion was seconded by Councilmember Risley and unanimously carried. (5-0) C-4 FUNDING AUTHORIZATION, PHOTOGRAPHY PROMOTIONAL OF CHESS LIVE Mr . Henderson reviewed the proposal by the Community Promotions Committee to hire a photographer to t ake pictures of CHESS LIVE! and the Embarcadero for a worldwid e chess magazine . The Committee is requesting approval of $300 for this City promotional effort . MOTION : Councilmember Sheetz moved t hat Council authorize up to $300 for approval of the Community Promotions Committee recommendation . The motion was seconded by Council- member Kaltenbach and carried with Councilmember Miller voting no. ( 4-1) D. CONSENT CALENDAR D-1 CITY COUNCIL MINUTES OF THE REGULAR MEETING OF FEBRUARY 25, 1985 Mr . Henderson recommended that the minutes be approved as submitted . D-2 RESOLUTION NO. 18-85 APPROVING CITY SPONSORSHIP OF A CALIFORNIA ARTS COUNCIL ARTISTS' GRANT Mr . Henderson recommended authorizing the encumbrance Community Promotions Fund . approval of of $4,000 Resolution No . from FY 84-85 18-85 Local D-3 RESOLUTION NO. 1 5-85 COMMENDING NELLIE C. CECIL FOR HER 20 YEARS OF SERVICE TO THE CITY Mr. Henderson recommended that Council adopt Resolution No . 15-85. D-4 QUITCLAIM OF EASEMENT, LOTS 3 & 4, BLOCK 6 OF TRACT NO . 81 - JANZEN -RESOLUTION NO. 14-85 Mr. Henderson recommended that Council adopt Resolution No. 14-85. D-5 DECLARATION OF SURPLUS PROPERTY Mr. Henderson recommended that this item be pulled. MINUTES -MORRO BAY CITY COUNCIL REGULAR MEETING -MARCH 11, 1985 PAGE EIGHT D-6 FIRE MUTUAL AID AGREEMENTS WITH CAYUCOS FIRE DISTRICT AND SOUTH BAY FIRE DEPARTMENT -GAS 9-B Mr. Henderson recommended that Council approve the Agreements and authorize the Mayor to sign. Councilmember Miller asked that item D-2 be pulled from the Consent Calendar. MOTION : Councilmember Risley moved for the approval of the Consent Calendar with the exception of items D-2 and D-5. The motion was seconded by Councilmember Miller and unanimously carried. (5-0) Councilmember Miller stated this item; he feels that enterprise . that he could not vote in favor of it would be supporting private MOTION: Councilmember Risley Resolution No. 18-85. Councilmember Kaltenbach Miller voting no. ( 4-1) moved for the approval of The motion was seconded by and carried with Councilmernber E . INDIVIDUAL DETERMINATION AND/OR ACTION E-1 CITY COUNCIL A. Councilrnember Sheetz asked that staff check into a report she had received that the Domenghini Dairy was dumping manure into the Jones pond. Mr . Nichols stated that the proper authority to notify would be the Water Quality Control Board and the Department of Fish and Game. He said that he would notify these agencies and report to Council. B. Councilrnember Miller asked Mr. Napper to write a letter to Mary Phillips about a spring that was cemented over. E-2 CITY ADMINISTRATOR A. Mr . Napper reminded Council and the public that at the next Council meeting, March 25th, the meeting would start at 7:00 p.m. and on that agenda would be a public comment period. B. Mr . Napper requested a closed session to discuss a personnel matter. C. Mr . Napper asked Nick waiver. Mr. Nichols reviewed Water Quality Control Board in for the City of Morro Bay's discharger. Nichols to discuss the 301 (h) a hearing by the EPA and Regional which they had approved a waiver wastewater treatment plant MINUTES -MORRO BAY CITY COUNCIL REGULAR MEETING -MARCH 11, 1985 PAGE NINE E-3 CITY ATTORNEY A. Mr. Lesage requested a closed sessio n regarding the Brebes lease . F. ADJOURNMENT MOTION: Councilmember Risley moved that the meeting adjourn to closed session . The motion was seconded by Councilmember Kaltenbach and unanimously carried . (5-0) The meeting adjourned to closed session at 11 :00 p .m. and returned to regular session at 11 :58 p .m. MOTION: Councilmember Risley moved that staff be directed to advertise for a new City Attorney for FY 85-86 and invite the present City Attorney to stay on through the transition on a consulting basis . The motion was seconded by Councilmember Kaltenbach and carried with Councilmember Miller and Mayor Zeuschner voting no. (3-2) Councilmembers Miller and Risley were selected to serve on the sub-committee to set criteria for a new City Attorney . MOTION: Councilmember Miller moved that the meeting be adjourned to 7:00 p.m. on March 12, 1985 at the Cayucos Fire Station to meet with the Cayucos Sanitary District. The motion was seconded by Councilmember Risley and unanimously carried. (5-0) The meeting adjourned at 12:09 a.m . Recorded by: ELANE NOVAK Deputy City Clerk