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HomeMy WebLinkAboutCC_1987-07-27 Regular Meeting MinutesREGULAR MEETING - JULY 27, 1987 VETERANS MEMORIAL HALL - 6:00 P.M. ROLL CALL INVOCATION PLEDGE OF ALLEGIANCE PRESENTATIONS 1. Resolution commending the Chamber of Commerce, John Baker, and the White Caps Band for the 4th of July Fireworks Show. 2. "Most Valuable Employee" for April -June 1987. PUBLIC COMMENT PERIOD - Members of the audience wishing to address the Council on matters other than scheduled hearing items may do so when recog- nized by the Mayor, by standing and stating their name and address. Com- ments 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 13 JULY 1987 A-2 ADOPTION OF GUIDELINES FOR THE COMMUNITY DEVELOPMENT BLOCK GRANT HOUSING REHABILITATION PROGRAM IN MORRO BAY BY PEOPLES' SELF-HELP HOUSING CORPORATION A-3 EXPENDITURE REPORT - JUNE 1987 A-4 STATEMENT OF INVESTMENTS - JUNE 1987 A-5 REJECTION OF TWO LIABILITY CLAIMS AGAINST THE CITY (RUSH; ECCLES) A-6 AWARD OF CONTRACT PW 87-01, ANNUAL STREET RESTRIPING PROJECT A-7 COMPLETION OF PROJECT NO. PW 86-07 BY JAMISON CONSTRUCTION CO. (HWY 41/MAIN STREET WATER TRANSMISSION LINE) A-8 RESOLUTION COMMENDING THE MORRO BAY CHAMBER OF COMMERCE, JOHN BAKER, AND THE WHITE CAPS BAND FOR THEIR DEVELOPMENT OF AND PARTICIPATION IN THE FIRST ANNUAL 4TH OF JULY FIREWORKS CELEBRATION A-9 SET 10 AUGUST 1987 AS THE HEARING DATE FOR THE APPEAL OF THE PLANNING COMMISSION'S DENIAL OF CUP 17-87 (GUEST HOUSE AT 115 EASTER; PIERCE, APPELLANT) A-10 RESOLUTION ESTABLISHING REFUNDABLE DEPOSITS FOR CITY SLIP/MOORING WAITING LISTS A-11 RESOLUTION SETTING ACTUAL CHARGES INCURRED FOR THE 1987 CITY WEED ABATEMENT/CLEARANCE PROGRAM, AND AUTHORIZATION OF PROGRAM BUDGET AUGMENTATION A-12 RESOLUTION 90-87 COMMENDING SAN LUIS OBISPO POLICE CHIEF DON ENGLERT UPON HIS RETIREMENT B. PUBLIC HEARINGS, REPORTS & APPEARANCES B-1 HARBOR ADVISORY BOARD RECOMMENDATION AND CONSIDERATION OF IMPLEMENTING AN ACTIVE COMMERCIAL FISHING INDUSTRY RENT REDUCTION IN LEASES OF PUBLIC TIDELANDS B-2 INTRODUCTION AND CONSIDERATION OF DRAFT REVISION TO CITY'S CIRCULATION ELEMENT OF THE GENERAL PLAN C. UNFINISHED BUSINESS C-1 REPORTS ON STATUS OF SITE CONDITIONS AND PUNCHLISTS FOR LEASE SITE 93- 95W (DENNIS), AND ESTABLISHMENT OF DATE FOR OPENING OF ON -SITE RESTAURANT OPERATIONS D. NEW BUSINESS D-1 APPROVAL OF CONSENT TO SUBLEASE RESTAURANT OPERATIONS TO RICHARD L. HOBBS ON LEASE SITE 93-95W (DENNIS) D-2 APPROVAL OF ASSIGNMENT AND ASSUMPTION OF LEASE SITE 93-95W FROM MILDRED GRAHAM DENNIS TO MR. & MRS. JIM GEORGE D-3 FORMALIZATION OF CONSENT TO SUBLEASE (DeGARIMORE), AND CHANGE IN SUBLEASE USE TO ALLOW PHOTO STUDIO AND RELATED SALES ON LEASE SITE 67/67W (PARKHURST GALLERY; VIOLE) D-4 DISCUSSION OF LEAGUE OF CALIFORNIA CITIES DRAFT WATER POLICY STATEMENT E. CLOSED SESSION E-1 GOVERNMENT CODE SECTION 54956.9(A) - LOPERENA VS. CITY OF MORRO BAY E-2 GOVERNMENT CODE SECTION 54957.6(A) - LABOR RELATIONS 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. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JULY 27, 1987 VETERANS MEMORIAL HALL - 6:00 P.M. Mayor Reddell called the meeting to order at 6:05 p.m. ROLL CALL PRESENT: Dale Reddell John Lemons Jim Miller Jeff Odell Rose Marie Sheetz ABSENT: None STAFF: Gary Napper Judy Skousen Alan Davis Bill Farrel Nick Nichols Steve Wolter Ardith Davis Mayor Councilmember Councilmember Councilmember Councilmember City Administrator City Attorney Harbor Director Comm. Development Dir. Public Works Director Recreation & Parks Dir. City Clerk Reverend Jim Kennemur of the First Christian Church gave the in- vocation, and Horace Strong led the Pledge of Allegiance. PRESENTATIONS 1. Mayor Reddell presented Resolutions of commendation to the Chamber of Commerce and White Caps Band for their part in the 4th of July Fireworks Celebration. John Baker was not present to receive his commendation. Mayor Reddell read the Resolution which encouraged the Chamber to make this an annual event. Chris Thompson thanked the Council for their support, and commended City staff for their help in conducting the event. 2. Mayor Reddell presented the quarterly "Most Valuable Employee" award to Darrell Richards, Wastewater Treatment Plant Superintendent. Mayor Reddell reviewed various achievements made by Mr. Richards, and noted he has been with the City over 22 years. 3. Councilmember Miller stated he wished to distribute surplus campaign funds to Barbara Guerrero and Melvin Souza of the Morro Bay High School Future Farmers of America, and Wanda Strassberg, Executive Director of Hospice. He then indicated State law does not permit him to distribute surplus campaign funds in this manner unless he resigns from his Council seat; consequently, Councilmember Miller announced his resignation effective August 1, 1987. He stated he is taking this step for health reasons, on recommendation of his doctor, MINUTES - MORRO BA CITY COUNCIL REGULAR MEETING - JULY 27, 1987 PAGE 2 and after many hours of soul searching. He then asked to be ex- cused because of illness, and left the meeting. PUBLIC COMMENT 1. Ross Blakely, Sunset Street, made comments on the at- tributes of Councilmember Jim Miller. He noted while Councilmem- ber Miller may not be a politician, he is a public servant. He also requested Council again establish community policing poli- cies with its staff. DECLARATION OF FUTURE AGENDA ITEMS 1. Councilmember Sheetz requested an item be scheduled to consider a skateboard prohibition ordinance. A. CONSENT CALENDAR A-1 CITY COUNCIL MINUTES OF THE REGULAR_ MEETING OF 13 JULY 1987 Mr. Napper recommended Council approve the minutes as submitted. A-2 ADOPTION OF GUIDELINES FOR THE COMMUNITY DEVELOPMENT BLOCK GRANT HOUSING REHABILITATION PROGRAM IN MORRO BAYBY PEOPLES' SELF-HELP HOUSING CORPORATION Mr. Napper recommended Council adopt the Program Guidelines as submitted. A-3 EXPENDITURE REPORT - JUNE 1987 Mr. Napper recommended Council approve the Report as submitted. A-4 STATEMENT OF INVESTMENTS - JUNE 1987 Mr. Napper recommended Council accept the report for file. A-5 REJECTION OF TWO LIABILITY CLAIMS AGAINST THE CITY (RUSH; ECCLES) Mr. Napper recommended Council deny the two claims, and authorize the City Clerk to send the rejection letters. A-6 AWARD OF CONTRACT PW87-01 ANNUAL STREET RESTRIPING PROJECT Mr. Napper recommended Council award the contract to Safety Striping Service, Inc., in the amount of $22,613.52. A-7 COMPLETION OF PROJECT NO. PW86-97 BY JAMISON CONSTRUCTION CO. (HWY 41/MAIN STREET WATER TRANSMISSION LINE) Mr. Napper recommended Council accept the Project as complete, and authorize the City Clerk to sign and record the Notice of Completion. MINUTES - MORRO BA CITY COUNCIL REGULAR MEETING - JULY 27, 1987 PAGE 3 A-8 RESOLUTION NO. 88-87 _COM_MENDING THE MORRO _BAY CHAMBER OF _COMMERCE, THE WHITE CAPS _ BAND, AND JOHN BAKER FOR THEIR DEVELOPMENT OF AND PARTICIPATION IN THE FIRST ANNUAL 4TH OF JULY FIREWORKS CELEBRATION-� Mr. Napper recommended Council adopt Resolution No. 88-87. A-9 SET 10 AUGUST 1987 AS THE HEARING DATE _FOR -THE APPEAL OF THE PLANNING COMMISSION'S DENIAL OF CUP 17-87�(GUEST HOUSE AT 115 EASTER; PIERCES APPELLANT) Mr. Napper recommended Council set August 10th as the hearing date, and instruct the Planning Director to prepare the appropri- ate notices and reports. A-10 RESOLUTION NO. 85-87 ESTABLISHING REFUNDABLE DEPOSITS FOR CITY SLIP/MOORING WAITING LISTS Mr. Napper recommended Council adopt Resolution No. 85-87. A-11 RESOLUTION NO. 89-87 SETTING ACTUALCHARGES INCURRED FOR THE 1987 WEED ABATEMENT CLEARANCE PROGRAMS AND -AUTHORIZATION OF PROGRAM BUDGET AUGMENTATION Mr. Napper recommended Council adopt Resolution No. 89-87, in- crease the FY87-88 Weed Abatement Fee Revenues by $16,477.09 and the Weed Abatement Program Account by $16,477.09, and authorize the allocation of $330.25 from FY87-88 Street Division Repair/ Maintenance Account to pay for services on City property rendered by the Weed Abatement contractor. A-12 RESOLUTION NO. 90-87 COMMENDING SAN LUIS OBISPO POLICE CHIEF DON _ENGLERT UPON HIS RETIREMENT Mr. Napper recommended Council adopt Resolution No. 98-87. Councilmember Lemons requested Item A-2 be pulled for discussion under New Business. Mayor Reddell stated he did not wish to pull Item A-11 regarding weed abatement; however, he did request an agenda item be scheduled to consider whether the Public Works De- partment or the Fire Department should be responsible for admin- istering this program. MOTION: Councilmember Sheetz moved for approval of the Consent Calendar with the exception of Item A-2. The motion was seconded by Councilmember Lemons and unanimously carried. (4-0) MINUTES - MORRO BA1 CITY COUNCIL REGULAR MEETING - JULY 27, 1987 PAGE 4 B. PUBLIC HEARINGS, REPORTS &_ APPEARANCES B-1 HARBOR ADVISORY BOARD RECOMMENDATION AND CONSIDERATION OF IM_PLE_MENTING AN_ACTIVE COMMERCIAL FISHING INDUSTRY RENT REDUCTION IN LEASES OF PUBLIC TIDELANDS Councilmember Sheetz excused herself from discussion on this item due to a conflict of interest; she handles the accounting books for one of the leaseholders who potentially could benefit from this proposal. Alan Davis reviewed this item noting Morro Bay Fuel Dock's re- quest for rent reduction after receiving a rent increase for the first time in 16 years. The former City Council directed staff to assess this matter and make recommendations for rent reduc- tions for active commercial fishing industry lease sites. He reviewed a proposal that would provide a lease would have to derive 60% of their business from a commercial fishing related activity to qualify for a rent reduction. The rent reduction would be 1 /2 of each 1 % of gross sales derived from the commer- cial fishing industry; Mr. Davis listed the types of businesses qualifying for the discount. He also reviewed the potential loss of revenues to the City based on 30%, 40%, and 50% reductions over a 20 year period ($778,995 at 50% reduction over 20 years). Mr. Davis noted the Waterfront Leaseholders Association has re- viewed this proposal, but has not taken a position on it. The Harbor Advisory Board liked the general concept, but could not agree on the specific methods of relief or amounts of reduction. Mayor Reddell opened the hearing to the public for comments. Al Hall, 945 Embarcadero, the Whale's Tail Restaurant, stated his lease rents increased from $5,300 per to to $25,000 per year. He said he is supporting the fishing industry by purchasing local fish for his restaurant. He does not believe it is equitable to allow rent reductions for the commercial fishing industry, and not for other leaseholders on the Embarcadero. Ray Biering, attorney representing the Waterfront Leaseholders Association, stated the Association has discussed this proposal and while they recognize the needs of the commercial fishing in- dustry, there are other leaseholders who also deserve rent reduc- tions or evaluations based on economic needs. He stated the ba- sic problem is the entire rent structure. Mayor Reddell closed the public hearing. Councilmember Lemons asked questions regarding comparable figures on other leases, and the amount of savings the Fuel Dock has al- ready realized over the years the City neglected to appraise and increase their rents. Mr. Davis explained the difficulty in com- MINUTES - MORRO BA, CITY COUNCIL REGULAR MEETING - JULY 27, 1987 PAGE 5 puting these figures, but agreed savings had occurred to the Fuel Dock. Mayor Reddell was not in favor of reducing rents just for the commercial fishing industry; he believed everybody should be treated the same and the City should not take one little group and given them a benefit. Councilmember Lemons indicated he was unable to accept the proposal as -is; one problem he has with it is the possible loss of revenue to the City of $800,000 over the next 20 years to an enterprise fund. MOTION: Councilmember Lemons moved this item be referred to the Harbor Advisory Board to see if they recommend pursing this concept. The motion was seconded by Councilmember Odell and carried, with Councilmember Sheetz abstain- ing. ( 4-0-1 ) Councilmember Sheetz resumed her seat. B-2 INTRODUCTION AND CONSIDERATION OF DRAFT REVISION TO-CITY'S CIRCULATION ELEMENT OF THE GENERAL PLAN - Mr. Napper suggested Council consider this Plan in several seg- ments; tonight, the pedestrian and bikepath portions. He also suggested if there were any portions of the Plan Council wished to delete or amend at this time because of public input at previ- ous advisory board meetings, they may do so and possibly avoid lengthy public commentary. Council discussed several of these items, and Mayor Reddell an- nounced Council will delete the Bolton/Prescott Drive access to the Williams Brothers property, and the Alder Street re-route of North Main Street. Bill Farrel reviewed the bicycle and pedestrian path proposals in the Plan. He also discussed a proposal submitted by Al Jorge of the Street Advisory Committee regarding a pedestrian path on Coleman Drive which had been favorably received by staff, as well as recommendations by the various advisory boards. Mayor Reddell asked several questions regarding installing tempo- rary sidewalks to avoid the expense of permanent sidewalks. Mr. Nichols reviewed liability and maintenance concerns. Councilmember Lemons asked if there is a provision that a certain percentage of gas tax monies has to be spent for bicycle paths; Mr. Nichols stated he did not know, but would look into the matter. Councilmember Lemons requested information regarding pedestrian counts before setting priorities for sidewalk installation. Council indicated they were not in favor of the recommendation for a pedestrian over -crossing of Highway 1 in the North Main MINUTES - MORRO BA, CITY COUNCIL REGULAR MEETING - JULY 27, 1987 PAGE 6 Street area; they believed the signal light at Yerba Buena and Main Street will satisfy this need and others in one project. Councilmember Lemons asked if it was the City' s or the adjacent property owners responsibility to maintain sidewalks; Mr. Napper stated staff is currently examining this issue and an ordinance is being developed to establish a policy. Council discussed the bicycle and pedestrian paths through the VRM property, and decided to leave them in the Plan so it is clear if the property is ever developed, installation of a bicy- cle and pedestrian path will be required somewhere by a developer. Mayor Reddell opened the hearing to the public. Mary Wooten, 2728 Alder, thanked the Council for removing the Alder Street re-route from the Plan, and presented Council with a petition from residents in the area protesting that portion of the Plan. Mayor Phillips, Ironwood, believed North Main Street is too nar- row to support a bicycle and pedestrian path, and its widening should be the highest priority. Mayor Reddell closed the hearing to the public. Councilmember Lemons requested staff contact the school district to determine if they have an established "safe route to school" for school children. He also suggested removing the use of the word "shall" where appropriate in the Plan to make it discre- tionary actions. Councilmember Lemons asked if the City incurred liability by a statement in the Plan for the City to encourage motels to provide bicycles for their guests. Ms. Skousen said there is always a possibility, however, it is remote since the City is not requir- inc. motels to provide the bicycles. He also requested staff con- tact local bicycle clubs to determine their support of Class III bicycle paths as a City standard. Mr. Napper stated staff would make note of the questions and changes suggested by Council, and return with answers at the fi- nal hearing. The hearing on August 10th will focus on the traf- fic component of the Circulation Plan. C. UNFINISHED BUSINESS C-1 REPORT ON STATUS OF SITE _CONDI_TIONS AND PUNCH -LIST FOR LEASE SITE 93-95W (DENNES IS),� AND�TABLISHMENT OF DATE FOR OPENING OF_ON-SITC!rESTAURANT OPERATIONS Mr. Davis reviewed the status of returning this lease site to op- eration based on reports from Bruce Elster of Mid -State Engineers MINUTES - MORRO BA1 CITY COUNCIL REGULAR MEETING - JULY 27, 1987 PAGE 7 on the revetment repairs, and a punch -list from Pierce Construc- tion for repairs needed prior to opening the restaurant. The re- ports indicate revetment repairs can be accomplished within one to two weeks after permits are received; and the repairs required to open the restaurant should be completed by September 1, 1987 and no later that October 1, 1987. It was noted neither Mr. Elster nor City Engineer Nick Nichols are willing to certify the building safe for occupancy until after the revetment repairs are completed. The complicated permit process may hold the restau- rant opening in abeyance. Staff recommends Council receive the reports, authorize amendment of the Master Lease to require restaurant operations be open for public business within 30 days of completing the revetment re- pairs, said revetment repairs commencing within 30 days of is- suance of required permits. Council asked if anything could be done to accelerate the permit process; Mr. Davis said the project should qualify as "minor in scope and the process could take as little as two weeks. How- ever, if the Coastal Commission decides full permit review is re- quired, it could be months. MOTION: Councilmember Sheetz moved for approval of the staff recommendation to accept the punchlists; and that the Master Lease be amended to require restaurant opera- tions be open for public business within 30 days of completing the revetment repairs, said revetment re- pairs commencing within 30 days of issuance of required permits. The motion was seconded by Councilmember Lemons and unanimously carried. (4-0) D. NEW BUSINESS D-1 APPROVAL OF CONSENT TO SUBLEASE RESTAURANT OPERATIONS TO RICHARD L. HOBBS ON LEASE SITE 93-95W (DENNIS) Mr. Davis stated Ms. Dennis has requested permission to sublease the restaurant on Lease Site 93-95W to Richard Hobbs. He re- viewed Mr. Hobbs' qualifications to conduct a restaurant business and stated his financial statement indicates sufficient fiscal resources. He recommended Council approve Resolution No. 86-87. Councilmember Lemons asked if the approval of the assignment of this lease should precede approval of the sublease. Ms. Skousen stated either way would be correct; the prospective assignee (Jim George) of this lease is required to accept the sublease agree- ments of the Master Lease. Mr. George is aware of and concurs in this sublease. Mr. Davis stated approval of the sublease should occur before approval of the assignment so the sublease agreement regarding operation of the restaurant can be effective and pro- ceed even if something fails during escrow procedures on the as- signment of the lease. MINUTES - MORRO BA'y CITY COUNCIL REGULAR MEETING - JULY 27, 1987 PAGE 8 MOTION: Councilmember Sheetz moved for adoption of Resolution No. 86-87. The motion was seconded by Councilmember Lemons and unanimously carried. (4-0) D-2 APPROVAL OF ASSIGNMENT AND ASSUMPTION OF LEASE SITE 93-95W FROM MILDRED GRAHAM DENNIS TO MR. & MRS. JIM GEORGE Mr. Davis noted the past problems associated with this lease site, and stated progress is finally being made to make it a vi- able revenue -producing lease site. Ms. Dennis has entered into escrow to assign her interest in the lease to James F. and Margie R. George, subject to Council approval. The City is in receipt of a CPA financial statement and qualification statement outlin- ing their experience. The Finance Director has found the Georges' economic position acceptable, and noted Mr. George has considerable experience dealing with distressed property situa- tions and property management. Council asked numerous questions to determine the lease would not end up in the same position it has with previous tenants. Mr. Napper believed the Master Lease contains sufficient restrictions to prevent the same problems, however, there is no guarantee a tenant will not default on those provisions. Councilmember Sheetz asked if those prospective subtenants who were involved in the lease when Ted Brown was leaseholder would have any opportunity to be involved in sub -leasing from Mr. George. Mr. Davis stated Mr. George was aware of the individuals involved; however, it would be up to him whether or not he sub- leases to them. Mr. Napper stated every protection possible has been taken in the lease to protect the City from the situation that evolved when Mr. Brown was leaseholder. He noted there is only so much the City can do to protect people from themselves, and it is a re- quirement in this lease, as it was in the Ted Brown lease, for prospective sub -lessees to receive City approval prior to subleasing. MOTION: Councilmember Lemons moved for the adoption of Resolu- tion No. 87-87. The motion was seconded by Councilmem- ber Sheetz and unanimously carried by roll call vote. (4-0) D-3 FORMALIZATION OF CONSENT_ TO SUBLEASE (DE GARI_MORE), AND CHANGE IN SUBLEASE USE TO ALLOW PHOTO STUDIO AND RELATED SALES ON LEASE SITE 67/67W (PARKHURST GALLERY; VIOLE) Mr. Davis reviewed this matter which is a request for a use change from an art and gift shop to an old time photo studio. He noted when initial Council approval was given in 1984 for the sublease to the DeGarimores, consent to sublease documents were not signed. The proposed resolution corrects this oversight along with approving the change in use. He noted lease viola- MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - JULY 27, 1987 PAGE 9 tions outstanding are minor, and repairs are in the permit pro- cess. The Master Lessee is required to effectuate repairs within 30 days of issuance of appropriate permits. MOTION: Councilmember Sheetz moved for the adoption of Resolu- tion No. 83-87. The motion was seconded by Councilmem- ber Lemons and unanimously carried. (4-0) D-4 DISCUSSION OF LEAGUE OF CALIFORNIA CITIES DRAFT WATER POLICY STATEMENT Mr. Napper reviewed the Water Policy Statement as submitted by a Water Policy Subcommittee of the League of California Cities. Each City in the State, through their League Divisions, is to re- view the statements and provide input for final policy statement at the Environmental Quality Committee meeting on September 3rd. He suggested Council review the statement, provide input tonight and at their August 10th meeting. The city's Water Advisory Board will be holding a special meeting to consider the statement and provide input to Council. He said the objective is to pro- vide guidance to League lobbyists in Sacramento on State legisla- tion affecting municipal water matters. Councilmember Lemons made the following comments on the Policy Statement: 1. Page 1, I.7, add "when feasible" after the first word, "Protect". 2. Page 1, I.8, does not agree with statement; does not believe solvingthe problems in the Sacramento -San Joaquin Delta is a precondition on to implementing any plan to meet the state's water needs. 3. Page 1, I.9, not 100% in favor but willing to let it go. 4. Page 2, III.A.1, no problem as long as the word contam- ination is strictly interpreted in accordance with Glossary; in- clude definition in statement. 5. Page 5, VI.B.3, needs language to get around impasse if one of the agencies refuses to enter into an agreement. 6. Page 5, VIII.1, does not support as a policy statement; "highest possible quality" too restrictive. Mr. Napper stated he would forward these comments to the Water Advisory Board for inclusion in their consideration of the Policy Statement. MOTION: Councilmember Lemons moved this item be continued to the August 10th meeting to receive Water Advisory Board recommendations. The motion was seconded by Coun- cilmember Sheetz and unanimously carried. (4-0) MINUTES - MORRO BA =ITY COUNCIL REGULAR MEETING - JULY 27, 1987 PAGE 10 A-2 ADOPTION OF GUIDELINES FOR THE COMMUNITY DEVELOPMENT BLOCK _GRANT _ HOUSING REHABILITATIONPROGRAM IN MORRO BAY BY PEOPLES' SELF-HELP HOUSING CORPORATION Councilmember Odell removed himself from consideration and dis- cussion on this matter because of a possible conflict of interest. Councilmember Lemons referred to the Program Guidelines, page 1, item I.C.1. He believed included in the paragraph should be the property and eligibility guidelines referenced. Councilmember Lemons asked several other questions to which Scott Smith of People's Self -Help Housing Corporation (PSHHC) re- sponded. Councilmember Lemons had concerns as to what happens to the loans and Rent Limitation Agreements if the property changes hands after 3 years. Mr. Napper noted the City could not pro- hibit the sale of the property, but the rent limitation agreement would have to be assumed on the transfer of title. Mr. Napper suggested staff obtain clarification on some of the issues raised and bring the matter back to Council at their next meeting. Mayor Reddell asked what portion of a $20,000 loan PSHHC receives for their administration of the grant. Mr. Napper stated limits are set by the Department of Housing and Community Development and PSHHC are not allowed to exceed those administrative limits. Staff was directed to return at the next meeting with additional clarification. Councilmember Odell resumed his seat. E. CLOSED SESSION Mayor Reddell announced Council would be adjourning to Closed Session to consider litigation, Loperena vs. City of Morro Bay, in accordance with Government Code Section 54956.9(a); and labor relations in accordance with Government Code Section 54957.6(a). MOTION: Councilmember Sheetz moved the meeting adjourn to Closed Session. The motion was seconded by Councilmem- ber Lemons and unanimously carried. (4-0) The meeting adjourned to Closed Session at 9:08 p.m. and returned to regular session at 11:32 p.m. MINUTES - MORRO BAi CITY COUNCIL REGULAR MEETING - JULY 27, 1987 PAGE 11 F. ADJOURNMENT MOTION: Councilmember Sheetz moved the meeting be adjourned. The motion was seconded by Mayor Reddell and unani- mously carried. (4-0) The meeting adjourned at 11:32 p.m. Recorded by: ARDITH DAVIS City Clerk