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HomeMy WebLinkAboutCC_1987-11-30 Adjourned Meeting MinutesADJOURNED REGULAR MEETING - NOVEMBER 30, 1987 VETERANS MEMORIAL HALL - 6:00 P.M. ROLL CALL PUBLIC COMMENT PERIOD - Members of the audience wishing to address the Council on City business matters (other than Public Hearing items under Section B) may do so by standing. When recognized by the Mayor, please come forward to the podium and state your name and address for the record. Comments should normally be limited to three minutes. A. CONSENT CALENDAR Unless an item is pulled for separate action by the City Council to dis- cuss, the following actions are approved without discussion. A-1 RELEASE OF 1987 ANNUAL WATER REPORT REGARDING THE PIPELINE REPLACEMENT AND WATER RETROFIT PROGRAMS, AND RECOMMENDATIONS FOR THE 1988 WATER ALLOCATION PROGRAM AND OPERATING GUIDELINES A-2 RESOLUTION NO. 127-87 ACCEPTING THE SAN LUIS COASTAL UNIFIED SCHOOL DISTRICT'S QUITCLAIM OF PROPERTY ON DUNES STREET FOR ROAD REALIGNMENT IN THE MORRO BAY COMMUNITY CENTER PROJECT A-3 AUTHORIZATION FOR THE CALIFORNIA CONSERVATION CORPS (CCC) TO DEMOLISH THE MORRO BAY RECREATION HALL FOR SALVAGE PURPOSES ,. A-4 RESOLUTION NO. 128-87 APPROVING A SPECIAL PUBLIC FACILITIES WATER EQUIVALENCY AWARD FOR THE MORRO BAY COMMUNITY CENTER PROJECT B. PUBLIC HEARINGS, REPORTS & APPEARANCES NONE C. UNFINISHED BUSINESS C-1 COUNCIL SELECTION OF MEMBERS TO BLUE-RIBBON COMMITTEE UNDER INTERIM ORDINANCES NO. 301 AND 304 D. NEW BUSINESS D-1 DISCUSSION OF AND AWARD OF CONSTRUCTION CONTRACT FOR THE MORRO BAY COMMUNITY CENTER PROJECT D-2 OUTLINE OF THE PROPOSED FINANCING PACKAGE TO FUND THE MORRO BAY COMMUNITY CENTER PROJECT D-3 DISCUSSION OF MORRO ROCK IMPROVEMENT FUND E. CLOSED SESSION E-1 GOVERNMENT CODE SECTION 54956.9(C); POTENTIAL CITY INITIATED LITIGATION E-2 GOVERNMENT CODE SECTION 54956.9(B)(1); POTENTIAL EXPOSURE TO LITIGA- TION EXISTS 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 ADJOURNED REGULAR MEETING VETERANS MEMORIAL HALL - COUNCIL - NOVEMBER 30, 1987 6:00 P.M. The meeting was called to order at 6:00 p.m. by Mayor Reddell. ROLL CALL PRESENT: Dale Reddell Paul Donnelly John Lemons Jeff Odell Rose Marie Sheetz ABSENT: None STAFF: Gary Napper Judy Skousen Bill Farrel Nick Nichols Steve Wolter Ardith Davis PUBLIC COMMENT Mayor Councilmember Councilmember Councilmember Councilmember City Administrator City Attorney Comm. Development Dir. Public Works Director Recreation & Parks Dir. City Clerk 1. Charles Palmer spoke regarding City water consumption and conservation, and encouraged the City to plan for droughts. 2. Andy Zatko, 225 Main Street, asked when the memorial anchor on the Embarcadero will be painted? Mr. Napper suggested he contact staff to work this out. A. CONSENT CALENDAR A-1 RELEASE OF 1987 ANNUAL WATER REPORT REGARDING THE PIPELINE REPLACEMENT AND WATER RE_TRO_FIT PROGRAMS, AND RECOMMENDATIONS FOR THE 1988 WATER ALLOCATION PROGRAM AND OPERATING GUIDELINES Mr. Napper recommended Council receive the report as an informa- tion item only at this time; it will be forwarded to the Water Advisory Board and Planning Commission for their comments. A-2 RESOLUTIO_N NO. 127-87 ACCEPTING THE SAN LUIS COASTAL UNIFIED SCHOOL DISTRICT'S QUITCLAIM OF PROPERTY ON DUNES STREET FOR ROAD REALIGNMENT IN THE MORRO BAY COMMUNITY CENTER PROJECT Mr. Napper recommended Council adopt Resolution No. 127-87 with appreciation to the San Luis Coastal Unified School District. MINUTES - MORRO BAY _=Y COUNCIL REGULAR MEETING - NOVEMBER 30, 1987 PAGE 2 A-3 AUTHORIZATION FOR THE CALIFORNIA CONSERVATION CORPS (CCC) TO DEMOLISH THE MORRO BAY RECREATION HALL FORSALVAGEPURPOSES Mr. Napper recommended Council authorize the demolition project and salvage rights of the Recreation Hall to the California Con- servation Corps. A-4 RESOLUTION NO. 128-87 APPROVING A SPECIAL PUBLIC FACILITIES WATER EQUIVALENCY AWARD FOR THE MORRO BAY COMMUNITY CENTER PROJECT Mr. Napper recommended Council adopt Resolution No. 128-87. Councilmember Lemons suggested Council withhold approval on Items A-3 and A-4 until after award of the Community Center bid; he be- lieved the City is getting ahead of itself by authorizing demoli- tion of the Recreation Hall and awarding water equivalencies be- fore the project is actually awarded. other Councilmembers felt comfortable with approving the items since they would have to be taken care of whether or not the project is awarded this evening. Mr. Wolter noted demolition of the Recreation Hall will not take place unless the bid is awarded. MOTION: Councilmember Sheetz moved for approval of the Consent Calendar. The motion was seconded by Councilmember Lemons and unanimously carried. Mayor Reddell asked when the Annual Water Report would return to Council; Mr. Napper stated Council will receive advisory board comments by their first or second meeting in January 1988. Councilmember Odell requested an item be scheduled for the Decem- ber 14th meeting for consideration of designating a Council rep- resentative to participate on the Inter -Agency Task Force on Back Bay. There was discussion regarding Item D-1, award of the Community Center construction grant. The Council preferred holding this matter for discussion at the end of the meeting. B. PUBLIC HEARINGS, REPORTS & APPEARANCES None C. UNFINISHED BUSINESS ti C-1 COUNCIL SELECTION OF MEMBERS TO BLUE-RIBBON COMMITTEE UNDER INTERIM ORDINANCES NO. 301 AND 304 Mr. Napper reviewed this item noting Council action this evening is to select 6 members of the 7-member committee, the 7th member is the property owner of the Keyoto-Natalie Corporation. Councilmember Odell suggested the committee be expanded to 9 mem- bers, with 5 members -at -large. He has a number of people inter- MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - NOVEMBER 30, 1987 PAGE 3 ested in serving on the committee and believed a 9-member commit- tee will not hinder the process. Council discussed the selection the specific categories first, large candidates. process and decided to appoint and then discuss the member-at- Councilmember Odell nominated Phil Persons as the Local Environ- mental Organization Representative; Councilmember Donnelly nomi- nated Paul Ritchie as the Atascadero Beach Tract Resident; and Councilmember Lemons nominated Steve Semas as the North Main Street Commercial Businessperson. MOTION: Councilmember Lemons moved Council appoint Phil Persons, Paul Ritchie, and Steve Semas by acclamation. The motion was seconded by Councilmember Sheetz and unanimously carried. (5-0) MOTION: Councilmember Odell moved the committee be expanded to include 5 members -at -large, for a total committee com- position of 9 members. The motion was seconded by Councilmember Donnelly and unanimously carried. (5-0) Mayor Reddell nominated Warren Dorn and Peter Diffley to the Mem- bers -at -Large category. Councilmember Sheetz nominated Jane Bailey; Councilmember Donnelly nominated Craig Beecham. Mayor Reddell nominated Chuck Clarke; Councilmember Odell nomi- nated Cheryl McCarty; Councilmember Sheetz nominated Jim Maul; Councilmember Lemons nominated Dale Mitchell; Councilmember Lemons nominated Bruce Elster; and Councilmember Sheetz nominated Ed McCracken. Council spent time discussing the various nominations; Coun- cilmember Sheetz objected to placing Warren Dorn and Peter Diffley on the committee. She stated Council would be creating a political faction which would be disruptive to the process. Mayor Reddell noted the nominees which most Councilmembers seemed to agree; Warren Dorn, Chuck Clarke, Peter Diffley, Cheryl McCarty, and Ed McCracken. MOTION: Councilmember Lemon Peter Diffley, Cher pointed to the Bli Large. The motion and carried, with ( 4-1 ) s moved Warren Dorn, Chuck Clarke, yl McCarty, and Ed McCracken be ap- e Ribbon Committee as Members -at - was seconded by Councilmember Odell Councilmember Sheetz voting no. Mr. Napper stated the Committee will be contacted by the Commu- nity Development Department in the near future regarding a meet- ing date. Councilmember Lemons questioned if the committee will have their duties and responsibilities outlined to them; Mr. Napper stated Council previously approved their parameters as outlined by MINUTES - MORRO BAY -ITY COUNCIL REGULAR MEETING - NOVEMBER 30, 1987 PAGE 4 staff. The Committee will work with the consultants to formulate a recommendation to Council; if there are role problems, Council will be consulted. D. NEW BUSINESS D-1 DISCUSSION AND AWARD OF CONSTRUCTION CONTRACT FOR THE MORRO BAY COMMUNITY CENTER PROJECT D-2 OUTLINE OF THE PROPOSED FINANCING PACKAGE TO FUND THE MORRO BAY COMMUNITY CENTER PROJECT Council agreed these two items be considered last. D-3 DISCUSSION OF MORRO ROCK IMPROVEMENT FUND Mr. Napper stated this item is on the agenda, at the request of Mayor Reddell, to consider allocating these funds toward lobbying efforts to improve safety at Morro Bay Harbor. The current bal- ance in the fund is $8,752, and derives from the Harbor Festivals in 1985 and 1986. Councilmember Odell noted there is approximately $50,000 in the dredging reserve fund, and these funds might be appropriate for this purpose. Mr. Napper stated the funds were set aside for lo- cal dredging operations outside of the Corps of Engineers juris- diction, plus any local match requirements on Federal dredge projects. Councilmember Sheetz asked about the appropriateness of allocat- ing these funds without a public hearing. Mr. Napper stated Council could not spend the money tonight since that is not specifically agendized; however, Council can re -allocate monies without a public hearing. Councilmember Sheetz suggested waiting until the mid -year budget review before approving the re -alloca- tion of these funds. Mayor Reddell stated the Morro Rock Improvement Fund was gener- ated by Harbor Festivals, and he cannot think of a better purpose for the funds than to improve the safety of the harbor. He indi- cated the funds could be used for lobbying efforts in Washington to obtain Federal Government assistance. Mr. Napper noted staff would have to return for Council approval of specific expendi- tures from a reserve account. MOTION: Councilmember Donnelly moved Council create a special reserve for harbor entrance safety, and the Morro Rock Improvement Fund balance of $8,752 be transferred into it. The motion was seconded by Councilmember Lemons and unanimously carried by roll call vote. (5-0) Councilmember Odell noted a Resolution similar to that passed by Council at their last meeting petitioning support for Corps of Engineers assistance to make Morro Bay Harbor safe will be pre- sented to the San Luis Obispo Area Coordinating Council for their support on December 3rd. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - NOVEMBER 30, 1987 PAGE 5 D-1 DISCUSSION OF AND AWARD OF CONSTRUCTION CONTRACT FOR THE MORRO BAY COMMUNITY CENTER PROJECT Mr. Napper reviewed the sequence of events concerning the bids for the Community Center. It is questionable whether or not the low bid of Bunnell Construction was actually 1 minute late in de- livery to City Hall. The City has received a formal written protest from the next lowest bidder, Maino Construction, to the Cityls acceptance of the Bunnell Construction bid. Mr. Napper noted Bunnell Construction's request to withdraw their bid, and their subsequent letter to accept the bid if all Alternates were awarded. He stated the City Attorney has recommended Council ad- journ to Closed Session to discuss the matter. Mayor Reddell asked if any contractors wished to address the Council before they adjourned to Closed Session; no comments were received . MOTION: Councilmember Sheetz moved Council adjourn to Closed session. The motion was seconded by Councilmember Lemons and unanimously carried. (5-0) Mayor Reddell announced Council is adjourning to Closed Session in accordance with Government Code Section 54956.9(b)(1) to dis- cuss potential litigation. Council adjourned to Closed Session at 7:11 p.m. and returned to regular session at 8:01 p.m. Mr. Napper reviewed the bids received for the Community Center and announced Council's intention to award the contract to Bunnell Construction. Mayor Reddell opened the meeting for public comment; there were no comments and the issue was closed to the public. MOTION: Councilmember Sheetz moved for the adoption of Resolu- tion No. 130-87. The motion was seconded by Coun- cilmember Lemons. City Attorney Skousen read Resolution No. 130-87 in its entirety; A Resolution Finding a Bid Submitted by Bunnell Construction, Inc. to be Submitted on Time and Awarding the Construction Con- tract for the Morro Bay Community Center Project to Bunnell Con- struction, Inc. in the Amount of $1,727,500. The Resolution recited the fact Bunnell's bid was received at 2:01 p.m. by the City Hall Conference Room clock, but 1:59 P.M. by the time service of Pacific Bell; therefore, Council declared the bid to be received at the true time of 1:59 P.M. It also states the omission of $23,369 for on -site concrete did not make the bid materially different, and Council rejected the request of Bunnell to withdraw its bid for that stated reason. MINUTES - MORRO BAY -ITY COUNCIL REGULAR MEETING - NOVEMBER 30, 1987 PAGE 6 The motion to adopt Resolution No. 130-87 was unani- mously carried. (5-0) D-.2- OUTLINE OF THE _PROPOSED _FINANCING PACKAGE TO FUND THE MORRO BAY COMMUNITY CENTER PROJECT s Louise Burt reviewed various programs offered by financial insti- tutions to financing the Community Center. Her recommendation is to lease -purchase the project over 10 years and finance $1,365,000 from Security Pacific Bank at an interest rate of 8.5%. Resolution No. 129-87, A Resolution Authorizing Execution of a Municipal Lease and Option Agreement with Security Pacific National Bank for Community Center Financing is recommended for adoption. This would establish an annual debt service of approx- imately $107,000. Councilmember Sheetz commended the Finance Director for her ex- pert handling of the City's finances. MOTION: Councilmember Donnelly moved for adoption of Resolution No. 129-87 with approval for the 10 year amortization plan. The motion was seconded by Councilmember Sheetz and unanimously carried. (5-0) E. CLOSED SESSION MOTION: Councilmember Sheetz moved the meeting be adjourned to Closed Session. The motion was seconded by Councilmem- ber Donnelly and unanimously carried. (5-0) Mayor Reddell announced Council is adjourned to Closed Session to discuss potential City -initiated litigation in accordance with Government Code Section 54956.9(c); potential exposure to litiga- tion in accordance with Government Code Section 54956.9(b)(1); and pending litigation, City of Morro Bay vs. Hittle, in accor- dance with Government Code Section 54956.9(a). The meeting adjourned to Closed Session at 8:14 p.m. and returned to regular session at 9:12 p.m. MOTION: Councilmember Sheetz moved the meeting be adjourned. The motion was seconded by Councilmember Odell and unanimously carried. (5-0) The meeting adjourned at 9:12 p.m. Recorded by: b� ARDITH DAVIS City Clerk