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HomeMy WebLinkAboutCC_1987-10-12 Regular Meeting Minutesm m mORRO CITY COUNCIL AGENDA REGULAR MEETING - OCTOBER 12, 1987 VETERANS MEMORIAL HALL - 6:00 P.M. ROLL CALL INVOCATION PLEDGE OF ALLEGIANCE 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. PRESENTATIONS 1. MOST VALUABLE EMPLOYEE AWARD - JULY-SEPTEMBER, 1987 QUARTER (MARTHA GROVE) 2. CERTIFICATES OF APPRECIATION TO POLICE EXPLORERS POST 3. AMERICAN RED CROSS PRESENTATION TO CITY FOR CONTRIBUTION TO LOCAL BUILDING FUND DRIVE 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 SEPTEMBER 28, 1987, AND THE ADJOURNED REGULAR MEETING OF SEPTEMBER 30, 1987 A-2 RESOLUTION NO. 112-87 AWARDING 30-YEAR LEASE ON LEASE SITE 51/51W TO ASSOCIATED PACIFIC CONSTRUCTORS, INC. A-3 NOTICE OF COMPLETION, WATERLINE REPLACEMENT PROJECT PW 84-36-02 A-4 REJECTION OF LIABILITY CLAIMS AGAINST THE CITY (HAUNGS; MORTIMER; TWEDT) A-5 SET MEETING DATE TO INTERVIEW APPLICANTS FOR VARIOUS ADVISORY BOARD VACANCIES (21 OCTOBER 1987, 6 PM, CITY HALL CONFERENCE ROOM) A-6 PROCLAMATION DECLARING OCTOBER '25-31, 1987 "DRUG ABUSE PREVENTION AWARENESS WEEK" AND "RED RIBBON WEEK" 1 B. PUBLIC HEARINGS, REPORTS & APPEARANCES B-1 ORDINANCE NO. 313 AMENDING CITY UTILITY BILLING PROCEDURES (FIRST READING) B-2 PARTNERS PROGRAM OVER -ENROLLMENT, AND CONSIDERATION OF SUPPLEMENTAL PROGRAM FUNDING AND PROGRAM FEES B-3 CONTINUED HEARING ON CHAPTER E (PARKING) OF THE PROPOSED CIRCULATION ELEMENT REVISION (1-HOUR DISCUSSION TIME LIMIT) C. UNFINISHED BUSINESS C-1 ORDINANCE NO. 307 AMENDING SECTION 17.49.070 OF THE MORRO BAY MUNICI- PAL CODE REGULATING CONDOMINIUM CONVERSION PROJECTS (SECOND READING AND ADOPTION) C-2 ORDINANCE NO. 308 MODIFYING THE STATE SPEED LIMIT ON CERTAIN CITY STREETS OR PORTIONS THEREOF (SECOND READING AND ADOPTION) C-3 ORDINANCE NO. 310 AMENDING CERTAIN PROVISIONS OF TITLE 16 (SUBDIVISIONS) OF THE MUNICIPAL CODE CONCERNING SUBDIVISION REVIEW BOARD AND SUBDIVISION MAP PROCEDURES (SECOND READING AND ADOPTION) C-4 ORDINANCE NO. 311 REVISING MUNICIPAL CODE PROVISIONS FOR ZONING AND CODE ENFORCEMENT, AND ASSOCIATED VIOLATION PENALTIES (SECOND READING AND ADOPTION) D. NEW BUSINESS D-1 RESIGNATION OF HARBOR ADVISORY BOARD MEMBER (BARHAM) AND DISPOSITION OF REPLACEMENT D-2 UNAUDITED FINANCIAL STATEMENTS FOR FY 86-87,, AND ENCUMBRANCE OF CAPI- TAL PROJECT MONIES FROM FY 86-87 E. CLOSED SESSION E-1 GOVERNMENT CODE SECTION 54956.9(A), PENDING LITIGATION (KEYOTO-NATALIE V. CITY OF MORRO BAY) 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 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - OCTOBER 12, 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 Paul Donnelly Jeff Odell Rose Marie Sheetz ABSENT: John Lemons STAFF: Gary Napper Judy Skousen Louise Burt Bill Farrel Forrest Henderson Dave Howell Nick Nichols Steve Wolter Ardith Davis Mayor Councilmember Councilmember Councilmember Councilmember City Administrator City Attorney Finance Director Community Dev. Dir. Asst. to City Admin. Police Chief Public Works Dir. 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. Mayor Reddell announced a public workshop to be held on October 15th at 7:00 p.m. in the Library Community Room to discuss alter- natives for zoning and future development of the properties adja- cent to and including what is commonly known as the "VRM" prop- erty (the property directly north of Morro Bay High School). The public is invited to attend and participate in discussion. PRESENTATIONS 1 . MOST VALUABLE EMPLOYEE _AWARD - JULY-SEPTEMBER, 1987 QUARTER (MARTHA GROVE) Mayor Reddell presented Martha Grove, City Switchboard Operator/ Receptionist Clerk, with the Most Valuable Employee Award for the July -September quarter. He noted she is often the first contact the public has with the City, and continually makes a good im- pression on the public with her attitude and cheerfulness. Ms. Grove was selected Most Valuable Employee by the City's Employee Relations Committee. MINUTES - MORRO BAY CITY -OUNCIL REGULAR MEETING - OCTOBER 12, 1987 PAGE 2 2. CERTIFICAT_ES OF APPRECIATION TO MORRO BAY POLICE EXPLORERS POST Mayor Reddell presented Certificates of Appreciation to Police Explorers Aaron Donovan, Steve Butler, Sue Sue Pagent, Laura Olson, Christy Rowell, Suzi Baggs, Jamie Baggs, Kevin Stead, and Jerome Tushbant. He thanked them for their volunteer services in the City's downtown parking control program, and the Harbor Festival. 3. AMERICAN RED CROSS PRESENTATION TO CITY FOR CONTRIBUTION TO LOCAL BUILDING FUND DRIVE Earl Cornwall, representing the American Red Cross, thanked the City for their contribution to the American Red Cross building fund drive, and presented Mayor Reddell with a commemorative lim- ited edition plate depicting the Red Cross. He also thanked Councilmember Sheetz for her leadership in the fund drive, and presented a certificate to her. PUBLIC COMMENT 1. Mary Phillips suggested the "Public Comment" portion of the agenda be listed in the Tentative Agenda published in the newspaper, so the public is aware of this opportunity to speak. DECLARATION OF FUTURE AGENDA ITEMS None A. CONSENT CALENDAR A-1 CITY COUNCIL MINUTES OF THE REGULAR MEETING OF SEPTEMBER 28,_ 1987, AND THE ADJOURNED REGULAR MEETING OF SEPTEMBER 30, 1987 � __._. Mr. Napper recommended Council approve the minutes as submitted. A-2 RESOLUTION NO. 112-87 AWARDING 30-_YEAR LEASE ON LEASE SITE 51 51W TO ASSOCIATED PACIFIC CONSTRUCTORS, INC. Mr. Napper recommended Council adopt Resolution No. 112-87. A-3 NOTICE OF COMPLETION, WATERLINE REPLACEMENT PROJECT PW 84- 36-02---- Mr. Napper recommended Council accept Project No. PW 84-36-02 as complete, and authorize the City Clerk to sign and record the No- tice of Completion. MINUTES - MORRO BAY CITY-OUNCIL REGULAR MEETING - OCTOBER 12, 1987 PAGE 3 A-4 REJECTION OF LIABILITY CLAIMS AGAINST THE CITY (HAUNGS MORTIMER; TWEDT) Mr. Napper recommended Council deny the claims of Stanley Haungs, David Twedt, and Rick Mortimer, and authorize the City Clerk to send the appropriate rejection notices. A-5 SET MEETING DATE TO INTERVIEW APPLICANTS FOR VARIOUS ADVI- SORY BOARD VACANCIES (21 OCTOBER 1987E 6 PM.,_CITY HALL CON- FERENCE ROOM Mr. Napper recommended Council set Wednesday, October 21st at 6 PM in the City Hall Conference Room to interview candidates and select replacements for the various citizen advisory board vacancies. A-6 PROCLAMATION DECLARING OCTOBER 25-31, 1987 "DRUG ABUSE PRE- VENTION AWARENESS WEEK" AND "RED RIBBON WEEK" Mr. Napper recommended Council authorize the Mayor to sign the Proclamation. Councilmember Odell requested an amendment to the minutes on page 11, second paragraph, changing the word "master" to "major" in reference to the shopping center. MOTION: Councilmember Odell moved for approval of the Consent Calendar with the amendment to the minutes. The motion was seconded by Councilmember Sheetz and unanimously carried. (4-0) B. PUBLIC HEARINGS,_REPORTS & APPEARANCES B-1 ORDINANCE NO. 313 AMENDING CITY UTILITY BILLING PROCEDURES (FIRST READING) Louise Burt reviewed the proposed change in the ordinance which implements a monthly utility billing cycle, and changes the delinquent date on bills. She noted the City has implemented the program on a trail basis, and has met some objection from citizens. Mayor Reddell opened the hearing to the public for comments. Charles Palmer, 485 Estero, believed the new billing program, which estimates a bill one month and sends out an actual bill the next, could result in a hardship for the customer if there is a catastrophic loss of water due to pipe breakage, etc. He dis- tributed written information on how this could affect an individual. Ms. Burt explained the process the City uses to help the public locate/solve leaks, and possibilities for bill -adjustments for huge water leaks on the sewer rate portion. She stated the City MINUTES - MORRO BAY CITY OUNCIL REGULAR MEETING - OCTOBER 12, 1987 PAGE 4 calculates an individual's bill on their actual use for 2 months (since the meter is actually read bi-monthly). The first bill is an estimate based on year-round average usage; and the second is calculated on actual usage with the customer paying the balance, or receiving a credit depending on usage for the 2-month period. Mr. Palmer said Ms. Burt's explanation answers his concerns, and said to disregard his comments if the bills are still figured on a bi-monthly rate. Mary Phillips believed the customer is paying double under the new system. Mayor Reddell closed the hearing to the public. Councilmember Sheetz stated she voted against the increase in wa- ter rates when approved by Council and had requested at that time Council wait until January to implement the increase if it was necessary after review the mid -year budget. She is not in favor of the new monthly billing procedure either, stating she has re- ceived more phone calls on this matter than on any other subject; she thought the procedure is a creative form of bookkeeping. MOTION: Councilmember Sheetz moved Council rescind the water rate increase, and go back to billing utilities the way it was. The motion was seconded by Councilmember Odell. Mr. Napper advised Council not to take action on water rates this evening since that subject is not specifically agendized. MOTION: Councilmember Sheetz amended her motion to Council take no action on this item until a public hearing is held on rescinding the water rate increase. The amendment was accepted by Councilmember Odell. Mayor Reddell commented he and all Councilmembers were against increasing water and sewer rates, but the majority of the Council also felt it necessary to raise funds for water projects. He said he received comments from the public it would be easier to pay the water bill if it was received monthly rather than bi- monthly; he noted other utilities bill monthly. He believed the monthly billing process should be used for a trial period and re- evaluated at a later date. There was discussion relative to inserting a sunset clause in the Ordinance for the monthly billing system to automatically expire at a certain date. Councilmember Sheetz withdrew her motion and Coun- cilmember Odell his second. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - OCTOBER 12, 1987 PAGE 5 MOTION: Councilmember Sheetz moved Ordinance No. 313 be amended by inserting a sunset clause for the Ordinance to ex- pire February 1988. The motion was seconded by Coun- cilmember Odell. There was further discussion on the ordinance, with Mr. Napper noting Council action will cause the ordinance to automatically expire February 1988. Staff must then return with a report 45 days before that in order for the ordinance to be extended in time to continue the monthly billing process, if that was Council decision. He suggested adopting the ordinance as is, with in- struction to staff to return with a report in February 1988 for .re-evaluation of the monthly billing procedure. Councilmember Sheetz withdrew her motion, and Coun- cilmember Odell his second. MOTION: Councilmember Sheetz moved Ordinance No. 313 be read by title and number only. The motion was seconded by Councilmember Odell and unanimously carried. (4-0) Mr. Napper read Ordinance No. 313 by title and number. MOTION: Councilmember Sheetz moved for approval of Ordinance No. 313 as first reading. The motion was seconded by Councilmember Odell and unanimously carried. (4-0) MOTION: Councilmember Sheetz moved staff be instructed to re- turn with this ordinance no later than February 1988 with a report as to the viability of it, and for Coun- cil consideration of returning to the bi-monthly billing procedure. The motion was seconded by Mayor Reddell and unanimously carried. (4-0) MOTION: Councilmember Sheetz moved an agenda item be scheduled for the next meeting to discuss rescission of the re- cent water rate increase. The motion was seconded by Councilmember Odell. Mayor Reddell indicated he is not in favor of re -opening water rates for discussion. The motion carried on the following roll call vote: AYES: Donnelly, Odell, Sheetz NOES: Reddell ABSENT: Lemons B-2 PARTNERS PROGRAM OVER -ENROLLMENT, AND CONSIDERATION OF SUP- PLEMENTAL PROGRAM FUNDING AND PROGRAM FEES Steve Wolter reviewed the history of the PARTNERS Program which has been in effect for 7 years providing after -school care for elementary age children. The problem this year is attendance has MINUTES - MORRO BAY CITY -OUNCIL REGULAR MEETING - OCTOBER 12, 1987 PAGE 6 increased from 36 average last year to 72 demand this year. The Recreation Department is not equipped financially or staff -wise, to handle this number. He noted last year Council implemented a .25 cost recovery rate charging $6.00 per month for each child which equates to $.10/hour fee. The Recreation and Parks Commission, in reviewing this matter, recommends Council approve a .50 cost recovery rate of $12 per child per month. This, along with a $9,060 appropriation from FY87-88 General Fund Contingencies, will augment the budget to meet the demand for additional personnel and supplies for FY87-88. Mr. Wolter also discussed site restrictions and plans to bus some children to Del Mar School if necessary for more room. He also reviewed costs of other programs throughout the County(e.g., City of San Luis Obispo; YMCA) which charge considerably higher rates than Morro Bay for the same program. Mr. Wolter outlined a scholarship program being developed by the Recreation and Parks Commission to supplement the fee for fami- lies unable to afford the $12 per month. Council asked a number of questions to which Mr. Wolter re- sponded. In discussing staffing levels, Mr. Wolter noted ideally there should be 3 staff people for every 12 children; currently, there are 3 staff people for 50 children. The supplemental monies would be used to hire more staff to supervise. Mayor Reddell opened the hearing to the public for comments. Lois Roark, Frank Gutierrez, Deborah Edwards, Linda Campeggia, and Steve Underwood spoke in favor of the increased PARTNERS Pro- gram, and commended the City on the manner in which the program is operated by the Recreation and Parks Department. Charles Palmer suggested staff approach service clubs for dona- tions to the scholarship fund. Carol Gutierrez suggested a pro- gram be established to allow those who regularly register their children to be given priority for succeeding months. The program currently operates on a first -come, first -served basis. In some cases, parents are able to register one, but not both, of their children. Councilmember Sheetz was in favor of approving the staff recom- mendation; she believed the Program a very important one for the City to support. Councilmember Donnelly wondered if volunteers could help the program. MOTION: Councilmember Sheetz moved Council authorize fiscal ex- pansion of the PARTNERS Program by $15,560 for the re- mainder of FY87-88; allocate $9,060 from FY87-88 Gen- eral Fund Contingencies to the Program; and approve in- creased Program fees to a 50% cost recovery ratio MINUTES - MORRO BAY CITY ..OUNCIL REGULAR MEETING - OCTOBER 12, 1987 PAGE 7 ($12/month) for revenue augmentation of $6,500. The motion was seconded by Mayor Reddell. Mayor Reddell asked about priority registration for regular at- tendees; Mr. Wolter stated he believed it an excellent suggestion and would work something out right away. The motion was unanimously carried. (4-0) B-3 CONTINUED HEARING ON CHAPTER CIRCULATION ELEMENT REVISION 1 E (PARKING) OF THE PROPOSED -HOUR DISCUSSION TIME LIMIT) Mr. Farrel reviewed the significant aspects of the Parking Compo- nent including parking space requirements for new development, future parking locations, and parking management districts. Mayor Reddell asked how staff would go about implementing the policies contained in the Element once it is approved by Council. Mr. Farrel stated certain ordinances will have to be amended ini- tially, and new requirements imposed on developments. Mr. Napper stated the document consists of policies for long-range planning. It will be implemented over a period of time through ordinances, development, and budget allocations. Councilmember Sheetz indicated hearings on the Transportation the Morro Rock Plan. She also for RV -only parking where they safely and comfortably. she was anxious to conclude the Element, so work could begin on suggested an area be designated would have enough room to park Mayor Reddell opened the hearing to the public for comments. Mary Phillips stated the Council is discriminating against RV's in making them park in a separate place. Mayor Reddell explained the Council was suggesting a place be designed for RV parking only for their convenience; no one is going to make them park in a designated spot. Councilmember Donnelly referred to Figure 32 in the Traffic Cir- culation Element; he was concerned the "Future" parking desig- nated on Coleman Drive might be construed as endorsing that item. Council discussed this and decided that portion of Figure 32 should be eliminated. Councilmember Sheetz was in favor of elim- inating the whole page which included a designation of "potential temporary parking", but Council consensus was to eliminate only the "future" portion. Mayor Reddell asked if there is a way to limit the amount of cars which can be parked on one residential lot. Mr. Napper stated staff will investigate this as a code enforcement item and report back to Council. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - OCTOBER 12, 1987 PAGE 8 Councilmember Sheetz stated handicapped parking needs to be ad- dressed, and Mr. Farrel responded staff is requiring additional handicapped parking on any new development. Mayor Reddell suggested the City again negotiate with Mr. Gunther to obtain the parking area on Embarcadero across from his lease site. Councilmember Sheetz noted a previous suggestion by Mayor Reddell to designate compact car parking on street intersections where there is a sight distance problem. Councilmember Donnelly suggested rewording on Policy C-24, Pro- gram C-24.1, page 100 to read, "Parking areas shall be paved and striped. Alternative paving materials suek-aa--b-r4.-ck--pa-v-er-s will be encouraged. suek-materials-must-be-durable-keeFRparable-to-as- phalt-ever-stab-base-}. Council concurred in the recommendation. Councilmember Odell asked about an agreement regarding Coleman Drive as relates to the Den -bulk property interests. Mr. Napper stated there is a deed restriction on Coleman Drive which states if Coleman Drive is realigned, the property will revert to the previous property owner. This item and answers to other previous questions will return under final review of the entire document. Mr. Napper stated staff will research questions posed by Council and make the appropriate changes in the Plan as indicated. The next hearing will be on the Harbor and Transit components of the Element; 1 or 2 other hearings will probably be required to bring the matter to a conclusion and adoption by Council. C. UNFINISHED BUSINESS C-1 ORDINANCE NO. 307 AMENDING SECTION 17.49.070 OF THE MORRO _BAY MUNICIPAL CODE REGULATING CONDOMINIUM CONVERSIONS PRO- JECTS (SECOND READING AND ADOPTION) Mr. Napper stated this amendment constitutes the second and final reading of the ordinance regulating apartment dwellings converted to condominium units, and noted the ordinance will take effect in 30 days. MOTION: Councilmember Odell moved Ordinance No. 307 be read by title and number only. The motion was seconded by Councilmember Sheetz and unanimously carried. (4-0) Mr. Napper read Ordinance No. 307 by title and number only. MOTION: Councilmember Sheetz moved Ordinance No. 307 be adopted as second and final reading. The motion was seconded by Councilmember Odell and unanimously carried. (4-0) MINUTES - MORRO BAY CITY _OUNCIL REGULAR MEETING - OCTOBER 12, 1987 PAGE 9 C-2 ORDINANCE NO. 308 MODIFYING THE STATE SPEED LIMIT ON CERTAIN CITY STREETS OR PORTIONS THEREOF (SECOND READING AND ADOPTION) Mr. Napper stated this ordinance modifies and establishes higher speed limits on certain streets in accordance with a recent speed survey conducted by the Public Works Department. MOTION: Councilmember Odell moved to read Ordinance No. 308 by title and number only. The motion was seconded by Councilmember Sheetz and unanimously carried. (4-0) Mr. Napper read Ordinance No. 308 by title and number only. MOTION: Councilmember Sheetz moved Ordinance No. 308 be adopted as second and final reading. The motion was seconded by Councilmember Odell and unanimously carried. (4-0) C-3 ORDINANCE NO. 310 AMENDING CERTAIN PROVISIONS OF TITLE 16 (SUBDIVISIONS) OF THE !MUNICIPAL CODE CONCERNING SUBDIVISION REVIEW BOARD AND SUBDIVISION MAP PROCEDURES (SECOND READING AND ADOPTION) Mr. Napper stated this ordinance revises the City's subdivision map procedures and modifies the Subdivision Review Board to elim- inate Planning Commissioners from the Board. He noted this will establish a purely technical body to make recommendations to the Planning Commission and City Council. MOTION: Councilmember Sheetz moved to read Ordinance No. 310 by title and number only. The motion was seconded by Councilmember Odell and unanimously carried. (4-0) Mr. Napper read Ordinance No. 310 by title and number only. MOTION: Councilmember Sheetz moved Ordinance No. 310 be adopted as second and final reading. The motion was seconded by Councilmember Donnelly and unanimously carried. (4-0) C-4 ORDINANCE NO. 311 REVISING MUNICIPAL CODE PROVISIONS FOR ZONING AND CODE ENFORCEMENT, AND ASSOCIATED VIOLATION PENAL- TIES (SECOND READING AND ADOPTION) Mr. Napper reviewed the Ordinance which provides for consistent code enforcement procedures. This ordinance will go into effect November 12, 1987. MOTION: Councilmember Sheetz moved to read Ordinance No. 311 by title and number only. The motion was seconded by Councilmember Donnelly and unanimously carried. (4-0) Mr. Napper read Ordinance No. 311 by title and number only. MINUTES - MORRO BAY CITY _6UNCIL REGULAR MEETING - OCTOBER 12, 1987 PAGE 10 MOTION: Councilmember Sheetz moved Ordinance No. 311 be adopted as second and final reading. The motion was seconded by Councilmember Donnelly and unanimously carried. (4-0) D. NEW BUSINESS D-1 RESIGNATION OF HARBOR ADVISORY BOARD MEMBER (BARHAM) AND DISPOSITION OF REPLACEMENT Mr. Henderson stated Mr. Barham, the Los Osos representative on the Harbor Advisory Board, has recently resigned. Since Supervi- sor Coy suggests the nominees for this position, contact was made to determine if he had other people he would like to suggest for Council consideration. He requested Council select from the ap- plicants submitted previously. Council has the option of select- ing from those applicants this evening, or re -interviewing them on October 21st along with the other advisory board interviews. Councilmember Donnelly requested Council interview the appli- cants, since he had not been on the Council when they were ini- tially interviewed. MOTION: Councilmember Odell moved Council interview those ap- plicants still interested in the position on October 21st along with the other advisory board applicants. The motion was seconded by Councilmember Sheetz. Mr. Napper stated Council should also accept Mr. Barham's resignation. Councilmember Odell amended his motion to include ac- ceptance of Mr. Barham's resignation. The amendment was accepted by Councilmember Sheetz and the motion was unanimously carried. (4-0) D-2 UNAUDITED FINANCIAL_ STATEMENTS FOR FY 86-871 AND ENCUMBRANCE OF CAPITAL PROJECT MONIES FROM FY 86-87 Louise Burt reviewed the unaudited financial statements and en- cumbrances noting the actual revenues exceeded estimated revenues by $407,455. She said all departments are operating within the budget except Recreation and City Attorney. The Capital Expendi- tures have many projects underway and yet to be started, and there are recommended encumbrances for portions of these funds. Ms. Burt reviewed the "Department Profit Sharing Program" which allows departments to retain 1/2 of their operating savings to be used in the following year's budget. Employee input and City Ad- ministrator approval is part of this Program. MOTION: Councilmember Sheetz moved Council approve the Unau- dited Financial Statements for FY86-87, approve the En- cumbrance List from FY86-87, and authorize the alloca- MINUTES - MORRO BAY CITY -OUNCIL REGULAR MEETING - OCTOBER 12, 1987 PAGE 11 tion of 50% Departmental Savings monies for FY86-87. The motion was seconded by Mayor Reddell. Mayor Reddell asked how the variance in revenue compared with last year. Ms. Burt stated it is about even given the number of changes; last year, there was more building activity than this year, but this year there is additional property tax and user fees. The figures also increased by inflation, but reduced by reductions in Revenue Sharing and State Transit Funds. The motion was unanimously carried. (4-0) E. CLOSED SESSION MOTION: Councilmember Sheetz moved Council adjourn to Closed Session. The motion was seconded by Councilmember Odell and unanimously carried. (4-0) Mayor Reddell announced Council is adjourning to Closed Session to consider litigation in accordance with Government Code Section 54956.9(a), Keyoto-Natalie vs. City of Morro Bay. The meeting adjourned to Closed Session at 8:42 p.m. and returned to regular session at 8:50 p.m. MOTION: Councilmember Donnelly moved the meeting be adjourned. The motion was seconded by Councilmember Sheetz and unanimously carried. (4-0) The meeting adjourned at 8:50 p.m. Recorded by: ARDITH DAVIS City Clerk