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HomeMy WebLinkAboutCC_1987-05-26 Adjourned Meeting MinutesMINUTES - MORRO BAY CITY COUNCIL ADJOURNED REGULAR MEETING - MAY 26, 1987 CITY HALL CONFERENCE ROOM - 6:30 P.M. Mayor Reddell called the meeting to order at 6:42 p.m. PRESENT: Lemons, Odell, Sheetz, Reddell ABSENT: Miller It was noted the meeting was called for the purpose of in- terviewing applicants for the Community Promotions Commit- tee, Tourist Related Business representative. only one ap- plicant, Deborah Linker, has applied for the position and she was not present for an interview. MOTION: Councilmember Sheetz moved Deborah Linker be ap- pointed to the Community Promotions Committee as the Tourist Related Business representative, pro- vided she wants the position. The motion was sec- onded by Councilmember Lemons and unanimously carried. (4-0) MOTION: Councilmember Sheetz moved the meeting be ad- journed. The motion was seconded by Councilmember Odell and unanimously carried. (4-0) The meeting adjourned at 6:50 p.m. GARY A. NAP R City C1 rk City of Morro IES Ay 595 Harbor St. Morro Bay, CA 93442 805-772-1214 NOTICE OF ADJOURNMENT The regular City Council meeting scheduled for tonight was called to order by the Deputy City Clerk pursuant to Government Code Section 36811, because all Councilmembers were absent, the meeting adjourned to the Veteran's Memorial Hall immediately. The regular adjourned meeting will be held at 7:00 p.m. tonight, May 26, 1987 at the Veteran's Memorial Hall, 209 Surf Street, Morro Bay, CA. The agenda for said regular adjourned meeting is attached. attachment CITY HALL 595 Harbor Street Elane Novak, Deputy City Clerk FIRE DEPARTMENT 715 Harbor Street PUBLIC WORKS 695 Harbor Street HARBOR DEPARTMENT POLICE DEPARTMENT RECREATION AND PARKS 1275 Embarcadero 850 Morro Bay Blvd. 535 Harbor Street uT�CC� Cp 1 CITY COUNCIL REGULAR MEETING - MAY 26, 1987 VETERANS MEMORIAL HALL - 7:00 P.M. ROLL CALL r INVOCATION - REVEREND CHARLES ERICKSON, ST. PETERS EPISCOPAL CHURCH PLEDGE OF ALLEGIANCE PRESENTATION: CERTIFICATE OF APPRECIATION TO WILSON MARKS FOR RESCUE PUBLIC COMMENT PERIOD - Members of the audience wishing to address the Council on matters other than scheduled hearer items may do so when recog- nized by the Mayor, by standing and stating their name and address. Comments should normally be limited to three minutes. DECLARATION OF FUTURE AGENDA ITEMS A. CONSENT CALENDAR Unless an item is pulled for separate action by the City Council to discuss under New Business, the following actions are approved without discussion. A-1 CITY COUNCIL MINUTES OF THE REGULAR MEETING OF MAY 11, 1987 A-2 RESOLUTION NO. 61-87 AWARDING CONTRACT FOR BID NO. PW 87-133, PURCHASE OF PORTABLE AIR COMPRESSOR (DIESEL ENGINE) A-3 RESOLUTION NO. 62-87 REJECTING LOW BID AND AWARDING CONTRACT FOR PRO- JECT NO. PW 86-07; PUMPING LINE REALIGNMENT/REPLACEMENT (HIGHWAY 1 AND ATASCADERO ROAD) A-4 EXPENDITURE REPORT - APRIL 1987 A-5 STATEMENT OF INVESTMENTS - APRIL 1987 A-6 REJECTION OF LIABILITY CLAIM (WALKER) A-7 PROCLAMATION DECLARING JUNE 7-13, 1987 AS "NATIONAL SAFE BOATING WEEK" A-8 RESIGNATION OF BUSINESS REPRESENTATIVE ON TRANSIT AD -HOC COMMITTEE, AND AUTHORIZATION TO ADVERTISE VACANCY A-9 PROCLAMATION DECLARING MAY 24-30, 1987 AS "SOIL AND WATER STEWARDSHIP WEEK" (over) B. PUBLIC HEARINGS, REPORTS & APPEARANCES B-1 CERTIFICATION OF INITIATIVE PETITION TO ENACT AN ORDINANCE TO AMEND THE MORRO BAY LAND USE PLAN (LUP) AND APPLICABLE ZONING ORDINANCE IN ORDER TO ESTABLISH AND PROMOTE AFFORDABLE HOUSING FOR MORRO BAY'S SENIOR CITIZENS B-2 INTRODUCTION OF RECOMMENDED FISCAL YEAR 1987-88 CITY BUDGET B-3 PUBLIC HEARING ON PROPOSED REVENUE SHARING ALLOCATIONS B-4 CONSIDERATION OF CITY MASTER LEASE WITH MORRO BAY MARINA FOR CITY MOORING ZONE Al-4 B-5 IMPASSE IN NEGOTIATIONS OF A CITY LONG-TERM LEASE FOR LEASE SITE NO. 51/51W (REG WHIBLEY, ASSOCIATED PACIFIC CONSTRUCTORS) C. UNFINISHED BUSINESS C-1 CONSIDERATION OF CONVENIENCE OF PUBLIC TRANSPORTATION LICENSE FOR TAXI CAB OPERATION (ASHMAN, APPLICANT) C-2 DISCUSSION OF CODE PROVISIONS REGULATING CONVERSION OF APARTMENTS TO CONDOMINIUMS C-3 PROGRESS REPORT ON STUDY OF ZONING AND USE OF VRM AND ADJOINING PROP- ERTIES (INTERIM ORDINANCE NO. 301) D. NEW BUSINESS D-1 STREET ADVISORY COMMITTEE RECOMMENDATIONS FOR STREET IMPROVEMENT PRO- JECTS USING SB 300 AND GENERAL FUND MONIES E. CLOSED SESSION E-1 GOVERNMENT CODE SECTION 54956.9(A) - LITIGATION A. LOPERENA VS. CITY OF MORRO BAY B. CABRILLO VS. CITY OF MORRO BAY C. CITY OF MORRO BAY VS. BROWN E-2 GOVERNMENT CODE SECTION 54947 - PERSONNEL F. ADJOURNMENT COPIES OF STAFF REPORTS OR OTHER WRITTEN DOCUMENTATION RELATING TO EACH ITEM OF BUSINESS REFERRED TO ON THIS AGENDA ARE ON FILE IN THE OFFICE OF THE CITY CLERK AND AVAILABLE FOR PUBLIC INSPECTION AND REPRODUCTION AT COST. -2- CITY OF MORRO BAY BUDGET WORKSHOPS The Morro Bay City Council will meet at the following times to study the proposed budget for the 1987-88 fiscal year, The meetings will be held in the Recreation Hall, located at the corner of Shasta and Dunes Streets, in Morro Bay, A copy of the proposed budget will be available for public review in City Hall and the Morro Bay Library, June 8, 1987 - Monday 8:30 - 11:30 a,m, June 9, 1987 - Tuesday 8:30 - 11:30 a,m, June 10, 1987 - Wednesday 8:30 - 11:30 a,m, June 11, 1987 - Thursday 8:30 - 11:30 a,m, - Revenue - Administration - Finance - Non -Departmental (Includes Aid to Agencies and Community Promotions) - Recreation &. Parks - Community Development - Police - Fire - Engineering'& Administration - Property Maintenance - Transit - Streets - Water - Sewer - Harbor MINUTES - MORRO BAY CITY COUNCIL ADJOURNED REGULAR MEETING - MAY 26, 1987 VETERANS MEMORIAL HALL - 7:00 P.M. Elane Novak, Deputy City Clerk, called the meeting to order at the Morro Bay Recreation Hall. Since all•Councilmembers were ab- sent, she adjourned the meeting to the Veteran's Memorial Hall to commence the business of the regular meeting. Since this was the first City Council meeting held in the newly remodeled Veterans Memorial building, Mayor Reddell introduced Tom Gray, Architect, and commended Steve Wolter on coordinating the renovation. A brief ribbon cutting ceremony followed. Mayor Reddell called the meeting to order at 7:20 p.m. RnT.T, CATJ, PRESENT: Dale Reddell John Lemons Jeff Odell Rose Marie Sheetz ABSENT: Jim Miller STAFF: Gary Napper Judy Skousen Bill Farrel Forrest Henderson Dave Howell Steve Wolter Louise Burt Alan Davis Nick Nichols Elane Novak Mayor Councilmember Councilmember Councilmember Councilmember City Administrator City Attorney Community Dev. Dir. Assistant to City Adm. Police Chief Rec. & Parks Director Finance Director Harbor Director Public Works Director Deputy City Clerk Reverend Charles Erickson of St. Peters Episcopal Church gave the invocation; Horace Strong led the Pledge of Allegiance. PUBLIC COMMENT PERIOD 1. Reverend Erickson requested City Council consider having a statement similar to the Pledge of Allegiance read at the open- ing of City Council meetings. This statement could include word- ing expressing a sense of responsibility to the community and thanksgiving for living in the community. He believed this might be quite effective as there were many religions represented and also those who had no religion. 2. Mary Phillips expressed her displeasure of a letter written on May 11, 1987 by Steve Wolter to Joyce ellen lippman of the Area Agency on Aging in which he had quoted, or "misquoted", MINUTES - MORRO B1. CITY COUNCIL ADJOURNED REGULAR MEETING - MAY 26, 1987 PAGE 2 something she had said. She wanted this correspondence investi- gated by City Council, and demanded a public apology for "character assassination". Mayor Reddell assured Mrs. Phillips of a response. 3. Dale Evers exhibited one of his bronze sculptures, and expressed his desire to detail life-sized whales, similar to the one displayed, for location with a salt -water fountain on the Embarcadero. He is currently in the process of exploring ways to raise funding and is seeking City support for his public art project. Councilmember Lemons asked Mr. Evers to prepare an information package for City Council review. Mr. Evers indicated he would do so for a meeting in the near future. 4. John Renaldi, an architect from Atascadero representing the owners of the property adjacent to the Catholic Church and Safeway, stated he has extensive experience in senior housing. He did not want to speak on the item on the agenda regarding the initiative to effect rezoning of this area (B-1 ) , but wanted to say the property owners are ready to build the senior housing needed and wanted by the community and asked for City coopera- tion. He requested City staff assistance in moving the project through the City process. The owners are willing to work hard, invest their capital to give the community what it wants, but be- lieve they need community -wide effort so the project will not fail. DECLARATION OF' FUTURE AGENDA ITEMS 1. Councilmember Lemons requested an item be agendized to discuss redesign of the intersection at Napa and Harbor Streets (in front of the Post office). He wanted staff to have a suffi- cient amount of time to work on this item before it is agendized. 2. Councilmember Lemons commented on Mr. Renaldi's state- ment regarding senior housing; he suggested the Mayor appoint an ad -hoc committee to meet with the owners of the property regard- ing senior housing. He asked that each of the Councilmembers give the Mayor two or three names and from that list the Mayor could appoint a membership of perhaps six people. 3. Councilmember Lemons asked when Council would be dis- cussing Police Department matters. Mr. Napper indicated the P.O.S.T. report would be on the June 8th City Council agenda. Councilmember Lemons said he would like to discuss other police complaints and not just the P.O.S.T. report at that time; Mr. Napper said the wording on the agenda could be such that other questions and comments regarding the Police Department could be addressed along with the P.O.S.T. report. MINUTES - MORRO BA. `CITY COUNCIL ADJOURNED REGULAR MEETING - MAY 26, 1987 PAGE 3 Mr. Napper informed Council that Mr. Miller was ill and would not attend tonight's meeting. A. CONSENT CALENDAR A-1 CITY COUNCIL MINUTES OF THE REGULAR MEETING OF MAY 11, 1987 Mr. Napper recommended the minutes be approved as submitted. A-2 RESOLUTION NO. 61-87 AWARDING CONTRACT FOR BID NO. PW 87-- 133, PURCHASE OF PORTABLE AIR COMPRESSOR (DIESEL ENGINE) Mr. Napper recommended that Council adopt Resolution No. 61-87 purchasing an air compressor from Ingersoll-Rand Equipment Sales in the amount of $11,250.10, declare the 1966 air compressor sur- plus property, and authorize the transfer of $1 , 074 . 1 0 from the Water Department's Public Utilities account to the capital pro- ject account to gap -fund the equipment purchase. A-3 RESOLUTION NO. 62-87 REJECTING LOW BID AND AWARDING CONTRACT FOR PROJECT NO. PW 86-07; PUMPING LINE REALIGNMENT/REPLACE- MENT (HIGHWAY 1 AND ATASCADERO ROAD) Mr. Napper recommended that Council adopt Resolution No. 62-87. A-4 EXPENDITURE REPORT - APRIL 1987 Mr. Napper recommended that Council receive and accept the report for file. A-5 STATEMENT OF INVESTMENTS - APRIL 1987 Mr. Napper recommended that Council receive and accept the report for file. A-6 REJECTION OF LIABILITY CLAIM (WALKER) Mr. Napper recommended that Council deny the liability claim of Ms. Walter, and authorize the City Clerk to send the appropriate rejection letter. A-7 PROCLAMATION DECLARING JUNE 7-13,_1987 AS "NATIONAL SAFE BOATING WEEK"���� Mr. Napper recommended that Council authorize the Mayor to sign the Proclamation. A-8 RESIGNATIO_N OF BUSINESS REPRESENTATIVE ON TRANSIT AD -HOC COMMITTEE, AND AUTHORIZATION TO ADVERTISE VACANCY Mr. Napper recommended that Council accept with regret the resig- nation of Kathy Muhs from the Transportation Ad -hoc Committee, and instruct staff on the vacancy accordingly. MINUTES - MORRO BA_ CITY COUNCIL ADJOURNED REGULAR MEETING - MAY 26, 1987 PAGE 4 A-9 PROCLAMATION DECLARING MAY_24-_3O, 1987 AS "SOIL ANDWATER STEWARDSHIP WEEK" Mr. Napper recommended Council authorize the Mayor to sign the Proclamation. Councilmember Lemons asked that Item A-8 be pulled. MOTION: Councilmember Lemons moved the Consent Calendar be ap- proved with the exception of A-8. The motion was sec- onded by Mayor Reddell and unanimously carried. (4-0) A-8 RESIGNATION OF BUSINESS REPRESENTATIVE ON TRANSIT AD -HOC COMMITTEE, AND AUTHORIZATION TO ADVERTISE VACANCY MOTION: Councilmember Lemons moved that Council appoint Jim Olson to replace Kathy Muhs on the Transportation Ad - hoc Committee. The motion was seconded by Councilmem- ber Sheetz and unanimously carried. (4-0) B. PUBLIC HEARINGS, REPORTS & APPEARANCES B-1 CERTIFICATION OF INITIATIVE PETITION TO ENACT AN ORDINANCE TO AMEND THE MORRO BAY LAND USE PLAN (LUP) AND APPLICABLE ZONING ORDINANCE IN ORDER TO ESTABLISH AND PROMOTE AFFORD- ABLE HOUSING FOR MORRO BAY'S-SENIOR CITIZENS Mr. Napper stated the initiative petition was filed in the City Clerk's office on April 29, 1987 petitioning the City to enact amendments to certain land use/zoning policies for purposes of promoting affordable senior housing projects. Although the peti- tion failed to qualify with enough valid signatures to be placed on the November ballot as a special election, it did qualify for placement on the ballot at the next general municipal election in November 1988. Mr. Napper said Council must either adopt the initiative as -is, or order it placed on the ballot in November 1988. Councilmember Sheetz asked how senior housing and water equiva- lencies interfaced with Measure F and what the long-range ramifi- cations would be. Mr. Farrel indicated while Measure F limits number of units built each year, it does not directly limit water; however, when Coun- cil allocates water each year it has to fit the water allocation to Measure F's limitations . If Council allotted a large portion of the water to one project it would have to spread the remaining amount among commercial and residential units. Mayor Reddell opened the subject to public hearing. Jim Rodgers expressed the opinion many people are looking for housing. He believed there needs to be some means for developing housing for seniors and handicapped. He also stated the initia- MINUTES - MORRO BA CITY COUNCIL ADJOURNED REGULAR MEETING - MAY 26, 1987 PAGE 5 tive would in no way infringe on the forty (40) units proposed near Del Mar Park by People's Self -Help Housing. MOTION: Councilmember Lemons moved the public hearing be closed. The motion was seconded by Councilmember Sheetz and unanimously carried. (4-0) Council discussed the initiative's rezoning provisions and its incentives for senior -housing developments; they believed it would be worthwhile for the Mayor to appoint a committee to work with this property owner on a senior housing project. They also agreed more could be done to promote senior housing. There was further discussion to hold public hearings on the ordi- nance in anticipation of Council adoption; Ms. Skousen cautioned the Council they needed to act in a timely manner on the initia- tive, but it was not necessary to act tonight. Mayor Reddell stated since it was such a popular issue, it is not necessary to go to the time and expense of a special election; he suggested it might be in the best interests of the people in- volved to adopt the ordinance. MOTION: Councilmember Lemons moved the necessary public hear- ings be scheduled before the Planning Commission and the City Council in order to enact the ordinance at the conclusion of the process. The motion was seconded by Mayor Reddell. Councilmember Odell stated he wanted the two weeks to consider the matter. Councilmember Sheetz asked if the ordinance as pre- sented could be changed? Mr. Napper said no. There was further discussion on the motion. Mayor Reddell withdrew his second to the motion; the original motion died for lack of the second. MOTION: Councilmember Lemons moved the item be reagendized for the June 8th meeting. The motion was seconded by Coun- cilmember Odell and unanimously carried. (4-0) B-2 INTRODUCTION OF RECOMMENDED FISCAL YEAR 1987-88 BUDGET Mr. Napper reviewed the recommended budget noting staff is proposing water and sewer rates each be increased by 10%. He pointed out a slight increase in Dial -A -Ride fares and briefly discussed other items in the budget. He explained budget work- shops will take place the week of June 8th and Council can sched- ule more workshops if they desire. Mayor Reddell opened the item to public hearing. Paul Donnelly of the Street Advisory Committee requested Council appropriate additional funds for street improvements. MINUTES - MORRO BAY CITY COUNCIL ADJOURNED REGULAR MEETING - MAY 26, 1987 PAGE 6 MOTION: Councilmember Sheetz moved for acceptance of the Recom- mended Budget and action be deferred to the June 8 workshops. The motion was seconded by Councilmember Lemons and unanimously carried. (4-0) B-3 PUBLIC HEARING ON PROPOSED REVENUE SHARING ALLOCATIONS Louise Burt, Finance Director, stated prior to expenditure of Revenue Sharing funds a public hearing is required to accept pub- lic input on how these funds should be spent. She indicated there are $10,000 of interest -earning funds, and $115,832 previ- ously targeted for the Community Center. She recommended Council hold a public hearing, but defer decisions on actual projects un- til the budget workshops. Mayor Reddell opened the public hearing. Mary Phillips protested the proposed increase in Dial -a -Ride fares. She said some of the people who use Dial -a -Ride could not afford the increase, and suggested the Revenue Sharing Funds be contributed to offset fares for elderly people to take the "Runabout", a transit system which takes people from one end of the County to the other. Council briefly discussed the item and deferred action to the budget sessions in June. B-4 CONSIDERATION OF CITY MASTER LEASE WITH MORRO BAY MARINA FOR C_ITY MOORING ZONE A1-4 Alan Davis, Harbor Director, explained Morro Bay Marina has re- quested a reduction in their rents on their mooring lease because they say it is operating at a net loss. They had submitted a profit -loss statement to support this contention. Mr. Davis re- viewed the formula used by the City to arrive at the charges made on the lease sites. He indicated that Stan Trapp was present representing Morro Bay Marina. Council questioned vacancy rates for harbor moorings; Mr. Davis indicated there is always a waiting list. Mayor Reddell opened the public hearing on this item. Ray Biering, representing Morro Bay Marina, outlined some of the problems they are experiencing and the reason they are requesting a rate reduction. He remarked that Mr. Trapp has been a good tenant who has invested substantially in the lease; the central issue is the reasonableness of the City's rent schedule. Stan Trapp indicated the City's rents account for 41% of their potential income, 50% of their actual income. With a $14,000 a year net loss, the only alternatives are City rent reductions or intensification of moorings. MINUTES - MORRO BP j,,CITY COUNCIL ADJOURNED REGULAR MEETING - MAY 26, 1987 PAGE 7 Council asked various questions about the operation to which Mr. Trapp and his marina manager, Gene Sanger, responded. Mr. Biering suggested an audited accounting may be appropriate, and proposed an interim lease to work this out. The tenants also cited replacement of gear for the moorings as a constant and expensive process, and loss of funds through tran- sient boaters as reasons for losing money on the operation. Reg Whibley, a lease -holder on the Embarcadero, stated he also loses money each year on his moorings and explained some of the problems both he and the Morro Bay Marina are experiencing. City Council raised numerous questions concerning the unaudited profit/loss statement; Mr. Trapp said he wants a 50% reduction in City rents (to $5,156). MOTION: Councilmember Sheetz moved a comprehensive study be initiated with the Finance Department to look at rents on this lease, with Morro Bay Marina to provide a 3- year history of audited profit and loss statements and depreciation schedules. The motion was seconded by Councilmember Lemons and unanimously carried. (4-0) Mr. Napper asked if the lease should be extended during this fi- nancial review period. MOTION: Councilmember Sheetz moved the Morro Bay Marina interim lease be continued on a month -to -month basis until such time as a determination can be made regarding the fi- nancial matters in question. The motion was seconded by Councilmember Lemons and unanimously carried. (4-0) as IMPASSE SITE CONSTRU IN NEGOTIATIONS OF A CITY LONG-TERM LEASE FOR LEASE NO. 51/51W 7 (REG WHIBLEY ASSOCIATED -_YA,(- I Mr. Davis reviewed the complications in the negotiations on this lease site as outlined in his staff report, and also offered sug- gested options to resolve the problems. He noted initially the Lessee was to remove the buildings on the lease site and public access would be provided through a new development. Now, the Lessee does not wish to remove the buildings, and public access as required is not available through the present structures. The interim lease expires May 31st. Mayor Reddell opened the public hearing. Reg Whibley of Associated Pacific Constructors discussed some of his plans for the lease site, and stated the only option proposed by staff he is in favor of is to request review of the present development proposal to see if public access should be handled administratively or through the Council and Planning Commission. MINUTES - MORRO BF ',,CITY COUNCIL ADJOURNED REGULAR i,,EETING - MAY 26, 1987 PAGE 8 City Council discussed some of the plans and asked Mr. Whibley if he was still interested in putting up a new building. He said basically he was not; he would just have to start again as this phase of plan had been dropped after not being approved by the City some years ago. He said now he was just interested in building the wharf all along his lease sites. The public safety factor was discussed at some length. Mr. Whibley said it has been his experience when tourists are allowed to walk on a work- ing dock they are quite cautious and seem to stay away if it looks very busy. There was discussion as to the disposition of the duplex on the lease site. Mr. Whibley said they do need some improvements and when he actually begins remodeling, he will know whether it is economically feasible to make the repairs or if the buildings will have to be demolished. He said if they can be restored, he would like the rents from them for a few more years to help de- fray costs. Mr. Whibley expressed serious concern about the requirement to buy title of the buildings from the City; he also disliked the increase in rents for the temporary lease from $250 to $500/ month. He said the City is pricing him off the waterfront. MOTION: Councilmember Lemons moved the public hearing be closed. It was seconded by Councilmember Sheetz and unanimously carried. (4-0) MOTION: Councilmember Sheetz moved to approve a 120-day interim lease to work out the problems cited. The motion was seconded by Councilmember Odell. Councilmember Odell questioned the increase of $250 for the addi- tional lease period. Mr. Davis reviewed how he arrived at this figure amortizing the incremental value of the buildings over the extended lease term of 4 months. SUBSTITUTE Councilmember Lemons offered a substitute motion MOTION: to approve Resolution No. 64-87, incorporating the alternative of administratively evaluate changes to the public access requirements as contained in the approved CUP; and to adjust the monthly in- terim -lease rents to the change in CPI since August 1985, the last date of rent adjustment. The motion was seconded by Mayor Reddell, and the substitute motion was unanimously approved by roll call vote. (4-0) MINUTES - MORRO BI .CITY COUNCIL ADJOURNED REGULAR MEETING - MAY 26, 1987 PAGE 9 C. UNFINISHED BUSINESS C-1 CONSIDERATION OF CONVENIENCE OF PUBLIC TRANSPORTATION LI- CENSE FOR TAXI CAB OPERATION (ASHMAN, APPLICANT) Mr. Napper stated he met with a representative of the applicant and discussed the City's requirements for liability insurance and indemnification. Mr. Napper recited some insurance quotes sup- plied by the applicant, noting the figures have not been verified by staff. Mr. Napper urged Council to require a $500,000/ $1,000,000 insurance policy indemnifying the City from this operation. Mr. Ashman indicated the Hayes Co. out of Camarillo has provided him with a quote for $500,000 policy, provided he gets a letter from the City requiring it. MOTION: Councilmember Odell moved for the adoption of Resolu- tion No. 63-87 as amended to require $500,000 single occurrence and $1,000,000 aggregate liability. The mo- tion was seconded by Councilmember Sheetz and unani- mously carried. (4-0) There was discussion regarding the requirements for vehicle in- spections; Mr. Napper said staff will prepare a vehicle inspec- tion schedule to be followed. C-2 DISCUSSION OF CODE PROVISIONS REGULATING CONVERSION OF APARTMENTS TO CONDOMINIUMS Bill Farrel, Community Development Director, reviewed this item and reiterated the Council's concerns on the loss of affordable housing due to condo conversion. Also there is the possibility people might be building apartments while the real intent is to convert to condos. Mr. Farrel reviewed options to strengthen the existing ordinance. There was discussion regarding parking requirements for apart- ments as opposed to condominiums. Councilmember Lemons believed it should be illegal to obtain a variance for parking on condo- minium conversions. Council also discussed what percentage of apartment buildings should be allowed to convert to condominiums. Judy Skousen, City Attorney, said she could research this and advise Council how to legally set these guidelines. Mr. Napper indicated it is unknown what consequences a stricter ratio of apartments to conversions might produce, but the City could always place a sunset clause on the provision to evaluate its effectiveness in retaining affordable housing. MINUTES - MORRO BF CITY COUNCIL ADJOURNED REGULAR i,�ETING - MAY 26, 1987 PAGE 11 D. NEW BUSINESS D-1 STREET ADVISORY COMMITTEE RECOMMENDATIONS FOR STREET IM- PROVEMENT PROJECTS USING SB 300 AND GENERAL FUND MONIES Nick Nichols, Public Works Director, reviewed the recommendations of the Street Advisory Committee for allocation of funds for street projects. Councilmember Lemons was concerned about the time limits sug- gested and wondered if some of the residential work could be ac- complished before September. Mr. Nichols said he believed it was possible. Mayor Reddell suggested they might contract more of the Ironwood Street road work, and delete a portion of Market Avenue by stop- ping at Beach Street. Mr. Nichols indicated that would save $7,500 in chip seal work, but additional contract work on Iron- wood could not be done for that minimal price. Mr. Donnelly, a member of the Street Advisory Committee, also re- sponded to Mayor Reddell's question regarding Ironwood. He stated the street in question needs total reconstruction as there really was no base under that road; if a contract overlay was done, it would be throwing good money after bad. He said a con- tract overlay would not last any longer than a job performed by City crews. MOTION: Councilmember Lemons moved to accept the recommenda- tions as outlined in the staff report; and commended the Street Committee for acting so promptly. The motion was seconded by Councilmember Odell and unanimously carried. (4-0) E. CLOSED SESSION MOTION: Councilmember Lemon moved the meeting adjourn to Closed Session. The motion was seconded by Councilmember Sheetz and unanimously carried. (4-0) Mayor Reddell announced Council was adjourning to Closed Session in accordance with Government Code Section 54947, Personnel, and Section 54956.9(a), litigation on the following cases: Loperena vs. City of Morro Bay Cabrillo vs. City of Marro Bay C of Morro B vs. Brown Meeting adjourned to closed session at 12:05 a.m. and returned to regular session at 12:40 a.m. MINUTES - MORRO B1 CITY COUNCIL ADJOURNED REGULAR ...ZETING - MAY 26, 1987 PAGE 12 F. ADJOURNMENT MOTION: Councilmember Sheetz moved the meeting be adjourned. The motion was seconded by Councilmember Odell and unanimously carried. (4-0) The meeting adjourned at 12:40 a.m. Recorded by: ELANE NOVAK Deputy City Clerk