Morro Bay, California

provisions due to medical condition which limits my ability to participate on camera please also let the minutes reflect there are no other adults present in the remote location thank you councilmember edwards with that we will do the pledge of allegiance and uh mr la hey councilmember okay okay i pledge allegiance to the flag of the united states of america feel like i'm writing thank you with that we will move into a closed session report i'll turn over to our city attorney good evening mayor council members and members of the public the city council did meet in closed session this afternoon on three matters two of which were real property negotiations regarding a lease site located at 1205 on embarcadero the second lease site is on 1001 front street and then the third item was a um public employee performance evaluation for the city manager and no reportable action was taken under the brown act for any item thank you very much mr stack with that we'll move into city uh city mayor and council member reports i'll kick off real quick um i think that probably will be shared by council member lafay our upcoming events for the third and fourth of july but i want to remind everyone out there we do have a drone show this year on the third along with music from the molly ringwald project and several other activities and i want to thank the staff and i want to thank council member lafay for all his work he has put in so much effort to um make the third of july happen so thank you for that uh council member lafay i had an opportunity to meet with a group of chamber members to discuss economic development last week also had a san luis council of governments meeting this was a special meeting to approve the um funding source from slow cog for the ballot initiative just to clarify that it would be coming from that organization and not passed on to the municipalities uh i attended a great fundraiser a lot of fun for project surf camp a wonderful opportunity for funding for the programs and projects that they do which is going on right now and i want to do a shout out to the maritime museum they started their stem classes and i hear a lot of kids i know my grandson and a lot of his friends have been going and just absolutely loving it as well as moral bay library library's summer programs and lastly i had an opportunity to meet with the new store manager sal garcia from walgreens and he will be introducing himself in a few minutes to us all with that i will pass it to my left mayor pro tem thank you madam mayor thank you all for being here tonight in the last couple of weeks i attended as you're representative the apcd the air pollution control district meeting which i do every month for you sometimes every other month i also attended the chamber group meeting with the mayor and did one of my business walks this past saturday as well it's good to see so many uh a number of new businesses in downtown and a couple on the waterfront so uh things are looking vibrant and there's a lot of color in town now with uh with the pride flags out with uh with american flags out for the fourth of july the businesses are really doing their best to put their their best foot forward so it's it's just nice to see that vibrancy in in our town uh a couple of comments uh we've had a few issues going on and i it's been a while since i've done a town hall so i'm going to announce two town halls i don't have the dates yet for them but if you would like to be put on my mailing list for those town halls uh feel free to um to send me an email and you'll get on the the mailing list you can find my email on the city website under city council one is going to be with regard to city park which is the triangular park right across from the police station we've had discussions at the council level and at the resident level i think at every level with regard to the restrooms that are there and those have been temporarily closed because of some misuse with those restrooms and we also have some park funds available and i know we have a lot of residents with great visions and enthusiasm of what can happen there at city park so i'll be hosting a town hall to talk about what we can do there as a community the second one that i'll be having is working with your city government it'll be sort of a combination of a listening session along with um how we can as res residents best work with our local city government one of the wonderful things about having local city government is uh you know we see each other at alberson's or spencer's or walking the streets and so we're here to serve you all of the staff is is committed as civil servants to serve each resident and they have a passion for that so we want to enhance that as much as possible and i'll close by saying uh we've got the fourth of july coming up a big one 250 years uh i was thinking back at the i've got some gray hairs now so i was thinking back of the 200th one i was in the sixth grade and that was a big deal back then and that's when i started my career in public service i was the president of the elementary school in the sixth grade and we did lots of celebrations so we're having lots of celebrations this year as well we hold these truths to be self-evident the declaration of independence says and there's a word their hold that i've been thinking a lot about the last couple of weeks we hold these truths it means that they're not past it's it's not future we're holding them in the present and it's each of our obligation to maintain the liberty the freedom that was handed down to us by our forefathers and it's important for us to remember that blood was shed that flag right there the the red white and blue represents the blood that was shed to ensure our freedoms so as we move forward in local government here i want to express my gratitude for being able to serve you i want to express my gratitude for being in such a wonderful community of folks that that hold these truths daily we do it daily in our expressions of care and love and service to each other so it's an honor honor for me to be a part of this community and to celebrate our nation's 250th uh celebration of that signing of that declaration of independence thank you thank you councilmember landrum semi-quincentennial that's what it's called 250. i couldn't pronounce that word so um no i i really don't have any announcements i um i look forward to the 250th anniversary i remember that 17 1976 yeah that i don't remember what grade i was in but that was such a big deal and um i'm still living in morro bay and very grateful to be here and think there are so many beautiful places all over the world but i live in the best place ever councilmember lafay thank you uh jeff that was um elegant um i just want to um announce that uh this saturday from eight to one uh there will be the marine swap meet uh it's free admission come on out if you're in need of any marine orientated uh fishing rods uh boats there'll be a couple boats for sale canoes surfboards anything marine related um at the triangle lot or the maritime museum is from eight to one on saturday free admission again i want to um announce on july 4th i've uh have a special treat for all the audience i hope it's a special treat i'm still working out a little bit logistics but we're going to be um lighting up the stacks in red white and blue and um so we're going to be able to see that from all over morro bay and i i i'm really kind of excited about this um and um i hope everyone here in the audience is also going to be excited about it it could be the first step for a permanent installation to always have the stack slide so stay tuned um the i went to the planning commission meeting um and i um saw a house being approved on kern street so we have a new um remodeled um addition to to to our neighborhood here and then i also um went to the libertine and i toured for potential bidders last thursday so we have a couple people that are interested in uh taking over the lease of the libertine too so i got a chance to uh meet with them also so that's all i have today and thank you very much for being here tonight um council member edward yes thank you mayor i just want to say um you know thank you to council members and to the staff for all the hard work that they've been doing leading us up to the point of fourth of july and all the festivities it's really appreciated i'm only sorry that i'm not going to be walking around to be able to see it all but hopefully i'll get out there a little bit um it sounds wonderful and to council member lafay i've always wanted to see those stacks lit up so i i think that would be amazing if if we can make that happen that'd be absolutely incredible and to all of you i hope to see you soon and have a happy and safe fourth thank you with that i will turn it over to the city manager for updates thank you mayor council um reiterate that we will have a july 3rd ceremony uh here in moral bay as well as the fourth but this the third as you heard will be down on the embarcadero and we will have a lot of exciting events during uh that weekend so we look forward to it uh counselor echoes i i remember i think i was in first grade uh and i remember i grew up in tennessee and so i remember i was uh featured on the stage in downtown by city hall doing a square dance uh in my tricorn hat so uh that's my memories of the 200th so uh i i i was younger though i just wanted to point that out um uh also want to note that tomorrow night we will have the um second community meeting for the moral elementary uh due diligence report it'll be here in this meeting room at 6 p.m to 8 p.m tomorrow uh where we will staff will go over uh the due diligence that we have found regarding uh the site as you know we entered the council entered into a purchase agreement with the school district to purchase that site we're currently in due diligence and that due diligence period runs through october 31st uh tomorrow night we will be uh giving some findings that we've seen uh to community and then hearing again community um comments on what they envision that site to be so look forward to hearing from the community again tomorrow night and sharing our our findings in that so staff has been very busy uh keeping up with things switching over from spring to summer and events are in full swing and vacations are happening all around throughout the city not only with the residents but also with staff and so we are continuing to hold down the fort here and make the city as best as we can for all of its residents so thanks for your uh time thank you mr craig mr craig do we have any uh subcommittee reports this evening i don't believe we do we will be talking about uh one of the uh the subcommittee on the reclamation facility later in the agenda and more elementary school we'll have the community meeting tomorrow night thank you very much appreciate that with that i will move into public comment i have two speaker slips this evening to start out with after that public comment is open for items not on the agenda uh first up is going to be sal garcia mr garcia is the new store manager from uh walgreens and after that's linda winters please hello good evening everybody chamber mayor um everyone in attendance my name is sal garcia i am the emerging store manager for the moral bay that will be opening its doors here um our soft opening i came to announce would be this coming tuesday june 30th soft opening allows us to let the public come in you know get a feel for the store allows the team that's been trained very diligently give them a little bit of practice the grand opening will be next month july 31st and that will we're looking to make that a big deal we want to invite everybody to the community invite everybody the residents and the neighboring residents um neighboring communities and we'll be doing giveaways raffles a whole fun whole fun fair and i look forward and walgreens looks forward to not just to be there for a grand opening for the community but i look forward to building long lasting relationships myself as a resident of moral bay i want to do my best to hold walgreens accountable to take care of this community so that said i look forward to meeting all each and every one of you guys and working with you and thank you thank you and welcome to morrow bay i was not in first grade hi my name is linda winters 32 year resident in the same mobile home park right here in morrow bay seems like i was just here oh yeah i was um we had our monday night dinner for 62 folks in this in this building for came to this building for a trip to the food bank then to the tables that have all the clothes and the toiletries and of course the grand finale dinner which was graciously labeled as chef's surprise because we we weren't quite sure what it was uh but what i really want to talk about tonight was how i went out and about here in morrow bay this last tuesday wednesday and thursday i got to play tourist my granddaughter and her great big giant guy and i mean giant because he weighs four hundred and fifty pounds stay we stayed right here in morrow bay and and i was in the passenger seat i got to see things that i don't normally get to see when i'm driving around so we went and saw the natural history museum the maritime museum of course the otters hiked around the boardwalk down by the museum it was grand fun and being with a guy that's that big of course we ate at lots of different restaurants in those three days and our very last meal in morrow bay before we headed back to fresno before they headed back to fresno was in one of our really marvelous breakfast places and i shamelessly made mention that i happened to know our waiter's boss yeah you guessed it we had breakfast at carla's country kitchen and thanks mayor it was really great now i'm looking forward to the fourth of july celebration right here in morrow bay and one more thing before i sign off we are starting the monday night dinners another program with the fitness works we're going to be collecting clothing items for men to to supplement our clothing giveaway we've done this before and we always are grateful to the ladies that clean out their husbands closets and tell them about it later after their clothes clothes are all gone and just like before we're not giving those clothes back okay i think that's all for now i'll see you at the next meeting and happy fourth of july um public comment is open for items not on the agenda hi betsy godet cross north moral bay citizen a lot of citizens in moral bay are on the older side even though i don't know the specifics of the or the the breakdown but from what i the people that i see and um generally people who didn't grow up with computers are a little technologically challenged fortunately i'm not i used to teach it in the high school and that's what i got my masters in so i i am usually um capable of getting around on the district website but um to say this lovingly i think there are better designs out there and um if anybody has any time i i would i think it would do the citizens of moral bay a service by looking at ways of making it more user friendly there are times when i have time a trouble navigating around it and if i do i can totally understand how other people can't um let's see items on the agenda i'm i'm not saying it when they come up because there are three seven b seven c seven d our items that are marked public works and as a member of the public works advisory board i was a little caught off guard because none of these things were brought before us and as i said at the last meeting i understand that everything can't be brought in front of the public works advisory board but um there were things on there that another member and i felt we had we could contribute to the conversation and the last thing i want to say is about the bathrooms at the triangle park um i know that they were vandalized and that's why you have them closed but i appreciate having public restrooms available and and it's right between the fire station and the police station um it seems bizarre that they can't maybe even put up a camera that's wireless and and be able to that is motion sensor that would go off if somebody comes or even just a motion sensor light that would let somebody know that you know and see even a fake camera there um i i just really feel it's important that we have bathrooms there and if you don't have bathrooms um i think that the fire station and the police station should open theirs for public use thank you betty winholz i would just add um i was on the harbor street leafleting the other day and the people are saying with the bathrooms closed that those who would normally be using the bathroom are using the cement wall so people are still going to the bathroom there but it's not being collected in the sewer system um michelle esther kattery morrow bay um we have a big fourth of july celebration coming up with the 250th anniversary um the county of san luis obispo prohibits fireworks the city of morrow bay does not i have grave concerns about people inundating our city with legal and illegal which happens every single year it is dry out there our home insurance uh premiums have gone up because of the fire issues i was going to la and i noticed that some cities and fire departments have posted fireworks especially those that are illegal in their city that they've posted the fines they've posted who to contact if they see fireworks being uh you know used within the city i'm kind of curious if our fire department or police department is capable of posting something next to the art in the park signs coming into our city and we're going to be advising people of the rules and regulations as well as the fines and who to contact because of this um i just it's concerning because we are going to have a mass influx of people this year with the temperatures and of course with the you know the fact that a lot of people do go on the beach and release fireworks because the following day i am on those beaches for four hours a day raking up the little bits of legal and illegal plus trash so i'm just hoping the fire department um and the city of moro bay will be diligent thank you anyone else for public comment for items not on the agenda ray are there any raised hands in the queue there are no raised hands in the queue thank you with that i will close public comment and bring it back to council uh deputy fire marshal vieira can you briefly address the um question on fireworks and the uh city's position on that thank you evening mayor council staff um coming into this year i i believe that obviously we have illegal fireworks that are in the city we do go out and um do out flyers to all the mobile home parks hotels we go out and try to get out there we do have the boards coming into the city the police um digital boards that come in and we kind of advise people with that i i can see put maybe putting up more signs on the park in triangle park and advising people on who to call but right now if there is illegal fireworks the number is 9 1 1 to call so with that i know the fire department's up staffed i can't say for the police department but i know we're up staff and ready for this year because this year is dry and it's on a saturday so fireworks is a concern for us as well thank you chief and mr craig um i know uh we have a future agenda item addressing the restroom facilities at city park can you please remind me what the was 188 calls for service last year was that what it was i believe just i believe it was 187 or 188 187 calls to service so at that individual those restrooms at that rest room yeah thank you okay thank you mayor is public comment closed yes it is i was coming up i was trying to come up but i was behind that tall young man back there and you didn't see me so could i do public comment i will open public comment for you miss merrill i announced it twice thank you please well i was on my way um good evening mayor council and city staff and people at home my name is linda merrill and i've lived in moral bay for 40 years i want to give a big shout out to everyone who ran in the midterms and the people who worked so hard to on these campaigns all of us who have done this know what a big job it is and anyway i wanted to give a shout out to all of those people who worked and this is democracy at its best and so i you know i'd like to recognize everyone who participates and cares about democracy also um i'd like to say i hope that council member uh edwards gets well real soon i hope it's nothing horribly serious um so anyway thank you all for being up there and letting me speak thank you anyone else for public comment for items not on the agenda seeing none i will close public comment and bring it back thank you i would also um share that there is a public restroom open at the city library right next to the um park why we are addressing those um needs there with that we'll move into the consent agenda i have no speaker slips public comment is open for items on the consent agenda betty winholz i'm wondering if you could clarify on item 6c could you identify um the total amount of money that's being spent this year for paving and how many miles that is thank you anyone else for public comment for items on the consent agenda ray are there any raised hands in the queue there are no raised hands in the queue i have a motion then to approve i move that we approve all items on consent except for 6c second i have a motion and a second roll call vote please council member landrum yes mayor pro tem echols yes council member edwards yes council member lefay yes and mayor wixom yes motion carries 5-0 and i'm pulling 6c i had asked a question unfortunately i was not i did not receive an answer prior to the council meeting and i do know that as per the question that was just asked what streets and that's yet to be identified but i had a question about the funding and if i could get an answer on the discrepancy of the funding from the budget versus what's listed in the staff report i would appreciate it yes mayor thank you apologize for not getting back to your question that was on me we had a lot of internal debate and discussion about that uh in essence the budget that the council just passed includes approximately 4 million and 68 000 for paving for this coming year that includes an encumbered amount for items that will be charged to that line item in the budget that it has currently undergoing consultant work etc and so with those encumbrances uh anticipated but not yet paid it it could fall anywhere to 3.7 million or so that we are uh hoping to pave um because those outstanding bills are currently they haven't come in yet once they do um then we will pay those off and then every other amount um available in that budget line will be used to support paving so it is somewhere between 3.8 and 4 million dollars that the council had budgeted uh is what we will go out we are currently um preparing the documents i don't believe they've gone to bid us our city engineer mr stong to come up if he has any more information but we've uh asked for bids uh of 2.5 million and then add alternates of up to five hundred thousand dollars each add-ons that we can add on for different streets but i'll let our city engineer take over from there thanks mr craig and uh council nate stong city engineer uh to the question about how many miles uh the base bid that john referenced of 2.9 million engineers estimate is for 5.5 miles of roadway and the other additive alternates that we're hoping to use for flexibility in in the bid if the prices come in low we can authorize those or we have additional funding those half million dollar chunks are about a mile and a half each of additional roadway we're finalizing we have the 90 percent plans and specs currently and we're hoping to be out to bid uh for the paving season after the tourist season uh starts so thank you for clarification is the dig out that's being done on hill street right now part of this new budget or part of last year's money i believe that's a maintenance item okay yeah okay thank you thank you for clarification on that i appreciate it i did notice that you know the difference in the two figures was about uh uh 950 000 that's why i was wondering just for clarification so thank you so thank you nate madame mayor um well city engineer is up at the podium i have a question on the same item and this is mostly for the for the residents to hear throughout the year we receive several constituent emails about different streets that are in really bad condition um in particularly we've heard from some folks in uh north morro bay over on the beach track side and they've sent us pictures and i've walked there and some of them are really bad and then the other one that we've heard about quite a bit is um a little morro creek um heading out uh toward the county road there that one's in really bad disrepair so could you describe a little bit how the selection process happens and um so that the so that the residents understand that eventually their street will everybody wants their street done first right we understand that also but some of them do seem worse than others and if you could just expound upon that selection process thank you yeah i'd be happy to it's a good question um the city utilizes a a model an algorithmic model called street saver so that all the streets are surveyed for their pavement condition uh to establish you know existing conditions and where where those pavements are in their life uh the goal with limited funding resources in in pavement management is to preserve as best you can there are a number of critical points in a pavement's life where you know if it drops below a certain critical point it gets into the next category of more expensive rehabilitation versus slurry seal you know would be the goal is to keep preserving good pavements that's that's money well spent and most efficient but those streets that have fallen down into the lower tiers they're getting close to the next critical point and so we're identifying those that are just above that critical point and hoping to keep them from falling down into the next category there is also the consideration of utilities beachcomber is a good example there's a design in progress for sewer system rehabilitation in that neighborhood so we want to complete the the sewer work and perhaps pave in conjunction with the completion of of the sewer trenching we wouldn't want to go do the paving and then cut up the streets after so that's a consideration for arrow as well and i haven't directly received a request for a little more creek i've heard some rumblings but that's going to be a challenge it's a lot of pavement um out there so be a costly one does that answer your question well yes it does thank you any other questions for the city engineer while you set the podium thank you mr stonk thank you appreciate it i do believe we did do some repairs mr craig thank you mayor counselor um to your point a citizen came in several a couple months ago and asked for the city's help in looking at the condition of little moore creek road uh after that point the city staff did go up and uh do some limited repairs on that uh it was four tons of asphalt that we put down uh repairing some of the worst sites uh on that hole i did uh communicate several times with that citizen afterwards and uh seemed very pleased with our efforts to go up there and help out so we did at least start on that thank you any other comments oh council member edwards any other comments on six c i'm good mayor thank you thank you with that i move approval last for a second a motion and a second mayor wickson yes council member lefe yes council member edwards yes council member landrum yes and mayor pro tem eckles yes motion carries five oh thank you uh with that we will move into our public hearing items for this evening and first item 7a is development impact fee study and i will turn it over to mr singwald and our finance director thank you good evening mayor and council i'm erilyn singwald your community development director i'm joined by emily conrad finance director we also have our consultant with the dta uh lenny zarath available on zoom to answer questions and speak to the methodology and the nexus study that i'm about to present and the powerpoint is ready to pull up it looks like ray so i'm going to start off with again the item is the nexus study um to justify the city's development impact fees so just beginning with what are impact fees so as we see new development projects they result in additional residents visitors and employees in the city and the additional population impacts our public facilities so the impact fees are a way the city is able to charge development to pay their fair share costs towards providing those facilities so the existing residents of morro bay aren't left bearing that cost the city may use impact fees to finance capital improvement projects to serve new growth so projects that are providing additional capacity to serve new growth from development but impact fees cannot be used to address existing deficiencies impact fees are collected with building permits on any development project that increases square footage with the exception of single family residential additions less than 500 square feet to give you some context of the the scope of impact fees so in a typical year the city processes and issues about 500 building permits in the past year we collected development impact fees on 20 of those permits so about four percent of the permits actually trigger impact fees based on the nature of those development projects so again the purpose of this uh hearing is to review the the nexus study so ab1600 it's called the mitigation fee act it requires agencies to prepare a study to justify development impact fees to so to really document that connection between development and impacts on public facilities and then calculating what the correct fair share costs would be for development to pay to offset those impacts on public facilities more recently so in 2022 a law ab602 took effect in california requiring agencies to update a nexus study every eight years ab602 also strengthened the requirements of ab1600 really establishing a strict methodology for agencies to document their support of their impact fees in a nexus study so really that ab602 was the main driver for preparing this updated nexus study to justify our development impact fees the last nexus study was completed in 2007 and we hired a dta to conduct the nexus study again per ab602 so i'm going to start off with the key findings of the nexus study so first of the the main objective of nexus study is to determine what are the maximum fees that could be justified for development impact fees so the study found that the city's current development impact fees are well below those maximum justifiable levels with one exception and that's the residential police fee which exceeds the maximum level by about three cents so that fee will have to come down so it's at the maximum and not exceeding the maximum another key finding so we did a comparables analysis we compared the city of morro bay with five other jurisdictions to determine how our current residential non-residential development impact fees compare with other jurisdictions and we found that currently the city of morro bay ranks number uh five out of six so just a tad over uh impact fees for uh a low sosos of course los sosos is unincorporated but we were able to calculate what the fees would be to build a typical house in los sosos and then we're significantly below um pismo beach in in terms of our impact fees for a typical 2300 square foot house also of note is you know i mentioned that our current fees are well below the maximum levels identified in the nexus study we did uh do an analysis to show if the city were to raise development impact fees to those maximum levels that were identified in the nexus study the amount of impact fees for a 2300 square foot house would be 143 000. which would be major increase about 100 000 more than the current fee levels an increase of that extent would begin to really hinder housing construction and economic development in morro bay so of course staff is not recommending increasing fees to those levels or anywhere near those levels so our approach on this study was really to view the nexus study as the tool to validate our current impact fees and to basically comply with with ab602 um naturally it is an opportunity to review our development impact fees and see if the city would like to make adjustments but the intent really isn't to increase fees to those maximum levels it's just to verify that our current fees are below the maximum levels and make a few other changes that were necessary per more recent uh state law and so along those lines we reviewed the nexus study and came up with the minimum changes that we can make to our current fee schedule in terms of the structure and the fee levels to be in compliance with the nexus study and ab602 and those are incorporated into the staff recommendation it's also important to remember that we would continue to do that and to remember that we would continue to adjust fees annually for inflation uh following the california construction cost uh index as we've done in the past and would recommend continuing to do now a reason why the maximum impact fees identified in the nexus study the new development costs are significantly higher than the current fees is it was based on um assumptions around a general plan build out because the city does not have a uh currently like a comprehensive long-term capital improvement plan so i know that's a goal of the city to develop a long-term capital improvement plan and once we have that that would be a better time to revisit the fees because we would have a more accurate understanding of the actual costs of the public facilities needed to serve new development so some of the key changes that are reflected in the staff recommendation this evening i already mentioned the police fee would need to be reduced from 62 cents to 59 cents per square foot for residential development we are recommending increasing the single-family fees by 20 percent let me explain the the reasoning behind that so the current city fee schedule applies impact fees to garages and uninhabitable space under new state laws that's no longer allowed so to keep the fees around what they are today and also the corresponding you know revenue that the city collects from residential development the recommendation is to increase those residential fees by 20 percent and that's assuming that typically 20 percent of a house is the floor area is represented by by the garage the next major change that was recommended in the nexus study and that staff is also recommending is currently the fee schedule has a separate multi-family and single-family development category the recommendation is to merge those categories into a single just a residential category that would apply to both multi-family development and single-family development however the current multi-family impact fees are about 38 percent higher than the single-family development impact fees so by combining those and using the lower single-family fee as the base for the residential fee it would effectively reduce development impact fees for multi-family residential development additionally the nexus study recommends removing the parks fee for non-residential development as the consultant didn't have data to quantify the impact of non-residential development on on city parks the actual fiscal impact of that is minimal since the current non-residential parks fee is only three cents per per square foot so i think a million square feet of commercial development would bring in thirty thousand dollars impact fees so it's a very um a very um a small small uh uh uh impact um and then of course staff is recommending to continue to increase uh fees based on inflation with the california construction cost index and in 2025 that was 3.9 percent so that's what's reflected in the revised fee schedule now one point that can be a little confusing with impact fees is for how fees are calculated for adus so i really wanted to take a moment to clarify so state law does uh determine that adus less than 750 square feet cannot be required to pay development impact fees the state law further states that adus of 750 square feet or more fees shall be proportional to the square footage of the primary dwelling and different jurisdictions take different approaches to accomplish that that second part again no jurisdiction including mora bay uh does or can apply impact fees to adus below 750 square feet but for those larger ones we can apply impact fees but they have to be proportional to the square footage of the the primary dwelling and so the city accomplishes that by having significantly lower impact fee rates for adus so and i'll get into the numbers in a minute here but it works out to about 80 percent lower impact fee rates for adus compared to a single-family house that's actually lower than proportional if you think a typical single-family house primary is 2 000 square feet and typical adu paying impact fees is a thousand square feet that's 50 percent proportion butter 80 you fees are 80 below and this is just showing a calculation of the the different um methodologies and um if there's questions later i can come back to this slide but it's basically an example of what i just explained on the previous slide there is one change to the proposed fee schedule in your agenda packet that staff is making that's demonstrated on this slide so um the information on your packet for the revisions to the master fee schedule had this line here that's now crossed out which said the first 749 square feet of floor area of adus are exempt and that would be replaced with a new red line stating adus less than 750 square feet are exempt from development impact fees so that's really to make it more clear that any adu under 750 square feet is exempt from paying fees but larger adus are subject to fees but they pay that reduced rate in the 80 percent lower rate per state law now i'm not going to spend too much time on this but this is an illustration of the the red lines with the exact numbers you know i mentioned earlier that the nexus study recommended fees the police fee are significantly higher than the current fee so you can see that second column over if you look at um you know residential uh general administration the maximum fee is three dollars and sixty-five cents current fees a dollar eighty seven and the proposed fees two dollars and 32 cents so that increase from 187 to 232 these are all per square footage fees that represents that 20 percent increase to account for the fact that we can no longer apply impact fees to garages and also accounts for that 3.9 percent adjustment for inflation then you can see the multi-family fees below are all a strike stricken out and that's again to reflect that we are now consolidating our residential fees into a single residential category but using that lower single family base fee and here's what i was talking about with the 80 percent lower fees for adu so if you compare these adu fees with the standard residential fees on the previous slide they're on average 80 percent 80 percent lower and then now we are into our non-residential fees non-residential commercial and office on this slide you know i mentioned earlier that we're recommending to remove the parks fee you can see that stricken and the only fee increases for non-residential is the again the ccci adjustment i don't think i mentioned earlier but we also did a comparables analysis for our non-residential fees and found that were just about the in the middle compared to other jurisdictions and then same for industrial just increased by inflation removing the parks fee the reason why i'm changing the reason why staff recommends changing a general government to administration is just to be consistent with the terminology in the nexus study that better connect the dots back to that nexus study justifying the city's impact fees and then the city also has separate water and wastewater impact fees that are determined based on the size of the water meter these fees are added to a new development proposing a new water meter in addition to the residential or non-residential impact fees on the previous slides and here staff is recommending only an increase per an inflation adjustment with that staff recommends the council adopt the resolution approving the development impact fee study and nexus report establishing development impact fees for the city of moro bay and adopting the fiscal year 2026 a master fee schedule and that also again the staff recommendation is to also include that change that i showed on the slide regarding adu fees and that concludes the staff presentation thank you mr singwald miss conrad uh questions to my right council member lafay questions um real quick question of the 1.5 million dollars they um that is in the impact fees as of july uh june 11th um are you able to use uh the fires portion for any other um capital projects that has to be fire related um so the impact fee accounts have to stay within that that impact area so it would have to be fire related let's remember landrum questions can you um i can't remember what you said the adus that are over 750 square feet it's required that they be less than 80 percent so what's required is that they are proportional uh based on square footage to to a primary what i explained on what i showed on the screen there is really of all the state law says i know different jurisdictions have interpreted that differently um i think one way jurisdictions interpret it is you look at what is the average square footage of a primary dwelling what's the average square footage of an adu and the fees that you apply to those larger adus have to be within that that same proportion so the example i gave earlier is the average primary is 2 000 square feet an average adu is 1 000 square feet it's a 50 percent proportion so that means your adu fees can be no no more than 50 percent of your standard residential fees and ours are 80 percent lower okay and why are they lower what's the i'm just curious what the reasoning is so i wasn't here at the time that those fees were set i do know when the state passed that law um jurisdictions brought their impact fees to their legislative bodies and amended them to be consistent with that law i would imagine some type of study was done like i mentioned to identify what the proportion is of a primary on an adu and lowered the fees accordingly or of course the jurisdiction can choose to lower the fees even more but in general it's to encourage density and to encourage more building is that is that why they're lower or more building of adus or so the the state's the state's goal is to um encourage uh housing affordable housing adu development that so that is the one of the driving purposes behind that yes and do we have any data that shows us whether these adus are being used as affordable housing do we know that they are or are they i'm just curious whether that's actually happening so there have been different studies prepared for that when the city of morrow bay updated our housing element um last in uh 2020 there was an analysis that was done at that time that showed adus of a certain size i believe it was below 500 square feet tend on average to fall with the within the affordability ranges and in fact something that we've been working with the state housing and community development department on recently is updating that study they're actually asking jurisdictions to update those studies so that's something we're working on currently thank you our program questions thank you director singwald could you bring the slide up uh that had the adus on it please thank you so this the adu fees here or the uh the other one uh that one um i'm a i'm a little confused so i'd like you to walk let me let me walk walk yeah um because it it and i don't know if it's maybe because the way it was written in the staff report but it it's contradictory to what is written in the staff report where the staff report indicates that the first 749 square feet are exempt and so you went over sort of briefly about an alternative methodology if you could expound on that please no that that is that is correct the the the way it's worded in the staff report is is contradictory um and so this language here is to uh resolve resolve that and clarify but let me help explain that better by walking through these examples on the previous slide so the nexus study originally uh and we'll think currently the nexus study recommends the adu fee is calculated based on our standard residential rate which the total residential rate is ten dollars per square foot times the square footage of the adu but subtracting out 749 square feet so for a 1000 square foot adu that'd be ten dollars times 251 square feet for about 2500 in impact fees so that is a uh that is a methodology that some jurisdictions use it's a methodology that dta recommended staff is not proposing this methodology because it results in higher impact fees on adus which we we support adus and don't want to increase fees on them um so the proposed is the alter alternate method that staff is recommending um which is to continue to have those 80 percent lower fees for adus of a dollar 90 per square foot but apply that to the entire square footage of the adu which we are allowed to do because our adu rate is so much lower than our standard rate which results in 1900 impact fee for that same 1000 square foot adu and you're correct the footnote you you referenced in the staff report i think a literal interpretation of that would imply kind of doing doing both so subtracting the 749 and using and using the lower rate of course that's within the council's discretion if you wanted to further lower impact fees for for adus but that that wasn't exactly what staff meant to recommend okay thank you that makes more sense now i have a question about the current balances in our impact fee funds so administrative facilities which i think we're calling was it government now um 779 833 could that potentially be used in um um or what what what are what are the intended uses for that so i'll i'll start and director conrad may want to to add so it's for general government facilities so i can imagine there may be a question about whether that could be used towards a city hall acquisition or renovation project and the answer is probably we just have to make sure we're connecting the dots showing that it's needed for expanded facilities and not to address an existing deficiency so we would probably need to document that if we wanted to use impact fees for that type of project excellent that's good news thank you and then the the parks fund um the 207 207 631 dollars how can that be used so as it is a similar answer we have to connect the dots to additional capacity to serve a new development i believe a good recent example is um with the coleman park um although that was primarily funded through state grants a portion of it was funded through development impact fees to be some of the design costs that we're able to use to leverage those state grants so um redevelopment of uh parks that's adding capacity to serve new growth could be an eligible use of those funds potentially if we were able to connect those dots that you were referring to some a portion of that might be able to be used for city park if we were to renovate city park potentially yes okay great and then the thank you um i'll bring this up now it's actually i'm going to bring it up during the future agenda items because that's when it would be appropriate but i can preface it with the question now what does the council have in its ability to um create an incentive within the fee structure the the diff development impact fee structure to incentivize uh smaller units uh often referred to as workforce units or affordable by design units through reduced fees uh so i'm hearing our nexus study consultant in the back of my mind saying yes but the nexus we would need some type of documentation to show that those smaller um units different types of units have a lesser lesser impact um again with ab602 there are really strict requirements for um you know for a nexus study documenting the fee so we probably would have to provide some evidence to support that um but i i may i would invite our consultant i'm lenny to to add to that answer no excellent job arlen i i think you you answered it very well you just the the question becomes is the benefit any different just because it's smaller we're already charging based on a square footage basis so inherently those fees for um affordable housing is typically less than square footage than that of a single family so um if we could come up with a way to determine how they benefit differently then we would be able to look at that as an option uh okay thank you thank you and the last item i have is just a housekeeping item i think there's a typo in the resolution in the one two three four five six and the six whereas it talks about dta prepared a draft study in june 2006 i think that's i think we mean june 2026 yeah yes we do thank you and then at the very in section 17 that just needs to be cleaned up a little bit as well um it says the resolution shall take effect 60 on august or actually aust 24 2026 so just um just just needs to be cleaned up thank you i appreciate that yep thank you all right thank you thank you thank you council member edwards questions yeah thank you mayor i had uh one question uh mr singwald um there's an area that says the maximum fees estimated in the study are based on costs needed to maintain existing service levels through 2040 and then it is predicated on correct me if i'm wrong the belief that the city will have growth and then it mentions 516 additional housing units um does that include our 300 some odd arena numbers in that so that growth projection is really separate from from arena that comes from the the general plan and it is a assumption of future growth um the the arena is a whole whole separate process so it could be the same units as the units to satisfy arena but it's a it's really separate um thank you thank you thank you yes i didn't i can't find maybe i didn't read it closely enough but what does it say in this staff report what can be done with the the different funds like it can can it be used for salaries or is it just used for um no so only for capital costs only for capital costs okay and all right and there's no information in here on how large these funds are it's just in general it's or how much accumulation is in each fund that oh that's in that's that's the total okay and this is the current balance of course the city allocates these funds the projects you know on a on an annual basis this is the current balance as of june 11th and is that like the gent the average balance or how quickly are we using these funds we produce a report um the ab1600 report and resolution every november um and so you could look at last year's and see what those balances were i think the rate at which we use them has varied over time depending on the projects that we had okay thank you thank you there's no further questions i will open public comment on this public hearing item i have no speaker slips so those wishing to speak to this item um thank you mr singhwal for your wonderful report as usual barry brandon citizen of morro bay every day i hear on the radio that young people can't buy houses housing's too expensive why is housing too expensive because the costs keep going up and here we are taking pride that we're not the most expensive per square foot to get a building permit in the county we're second dismal beach is higher i think it's totally inappropriate totally inappropriate to increase building fees permit fees at this time the direction you you make an accumulative thing well we're only going to go up a little bit and the next more a little bit a little bit then you got a cpi or cc ccci cost on top of that and i personally feel that one of the reasons that my kids can't buy houses is because these accumulated costs and government is the one that is the basis there's a gentleman in this town that had a piece of property north morrow bay he owned for a long time had curbs and gutters in and sewers this is five years ago he said it was 63 000 and i said for what the streets in curbs are in you own the lot you're paying property taxes on it this doesn't make sense so i think i've personally if i had a decision to make i'd say let's see if we can move our our costs our permit fees down let's see if we cannot be number two let's be number three most expensive building permits it's totally inappropriate thank you betty winholz i'm glad mr brandon went first because i only halfway agree with him but it it is true you know if we can maintain rather than increasing i certainly would not lower because we need those dollars to help with our capital projects um i i'm wondering um or i'm not wondering i i would not combine the multi-family with the single family and make it the same rate they with more people they use more parks they use more police they use more streets and everything so i would keep those as separate funds and and not recommend they be the same um also i'm shocked that um adus are average or at least the example is a thousand square feet in in my scene around my neighborhood and other places eight a thousand my house is smaller than a thousand square feet so you're like putting two houses on the same lot but you can't really do that in north moore bay because that the lots up there consume one house so i'm not sure where these adus that are over 700 square feet are going and so it seems to me that anything above the 700 should be taxed at the normal rate at adus and and not i mean they're already getting the free at 700 i'm not sure why an adu should be more than 700 square feet so then the person wouldn't be paying any impact fees so if it's above that and you want smaller units then you would tax them at the same rate of impact that you would a normal house or at least not go up a penny i think they should go up the same rate as as the others and i'm glad that you're adding the water and the sewer to the adus and that they're no longer i think this is correct that currently water and sewer are not being applied to the adu the impact fees but that they will be nope they're not being applied so i think they should because again here's an additional family or a couple or someone that's using our sewer using our water but their impacts aren't there they're not paying for it so i'm not sure how that's fair to the rest of us and then my final statement would be um why did this not go to pweb that's why you have a public works advisory board is to give you advice and you're not letting them have a public works project to give you advice about thanks anyone else for public comment on this item ray are there any raised hands in the queue there are no raised hands in the queue thank you oh i'm sorry someone raised their hand right as i said that judy lynn go ahead good evening council can you hear me yes hello thank you as far as these fees the fee increase goes i would ask that our council be the council and the city that does not raise fees at this time put your residents first give them a break and let us be last with the lowest fees thank you um all jurisdictions have very of course we tried to find similar jurisdictions but jurisdictions have different different different needs um coastal jurisdictions particular tend to have more expensive impact fees especially ones like mora bay that have had to relocate a wastewater treatment plant and um have you know complex and strict regulatory requirements to comply with and often those um unique circumstances play out in in higher fees so there's a whole range of factors that could um you know affect that that that range of fees thank you mr singwald um any other questions before we move into yes i was okay based on what you just said about coastal cities and the impact due to wastewater treatment systems moving if i'm not i was trying to find it on here but those are some of the lowest fees collected right wastewater systems i mean compared to administrative facilities and you referring to the table on page two the fund balance yeah yeah so well i guess i should look at the the dollar amount which is what page is that on oh so if you want the square footage amounts for water wastewater i don't really see that i see like storm drains that's the closest i can come or eight cents right now which is one of the smaller if not the smallest number there so they're on on page 30 of the staff report there are of the agenda page 30 of the agenda there are separate uh impact fees for water and wastewater that are set based on the size of the water meter so a single-family house with fire sprinklers is going to require one inch water meter so it's a flat rate fee based on the water meter the water meter so it's a flat rate fee based on the water meter so it's a flat rate fee based on the water meter so it's a flat rate fee based on the water meter so it's a flat rate fee based on the water meter so it's a flat rate fee based on the water meter so it's a flat rate fee based on the water meter so it's a flat rate fee based on the water meter so it's a flat rate fee based on the water meter so i guess as far as questions that's all i have thank you councilmember leffay any other questions no thank you pro tem councilmember edwards any other questions no i'm good thank you moving into deliberations mayor pro tem you want to kick it off thank you madam mayor um thank you to staff for your good work on this i know it's been on the table for a while uh i i appreciate the fact that the multi-family fees went down i think when we talk and i'm very sympathetic and agreeable to some of the comments about that were made by the public about reducing fees and i'll be bringing that up as a future agenda item at the end of the night tonight uh generally speaking um from a policy standpoint uh to disincentivize something you tax it or increase fees and to incentivize something you reduce the fees or reduce taxes so in terms of multi-family the fact that those fees are going down it serves as an incentive to multi-family which directly speaks to the type of housing that we need in this community i hear it all the time from constituents and i tend to agree the last thing we need is another 3 800 square foot mcmansion up on the side of the hill what we do need is workforce housing affordable by design housing we need to fill in the part of the the housing ladder toward the bottom that is frankly absent and broken multi-family is is a significant part of that i also appreciate the fact that there's the 500 square foot exemption for remodels that helps our residents and is is kind to our residents and accommodating as well as the uh adu exemption for 700 and below 750 feet so uh there there are some good things in in here i don't in terms of um containing fees or even reducing fees i don't believe it goes far enough i'm fine with with passing this tonight but again i'll be bringing up a future agenda item uh hopefully in getting consensus to direct staff to look at um at other ways that we can reduce that and i'll i'll address that at that time um so thank you thank you council member landrum um i i am kind of troubled by the the reduction for adus that are over um a thousand square feet or is it 750 square feet um because i think that that is moving away from affordable because the bigger the unit i mean just kind of obviously they are more more expensive and so why give that reduction unless you just want to have a dense community um as far as the multi-family housing i understand the that that could be an incentive and i appreciate that but then i feel like it's a little loose maybe and we should i mean because in theory a multi-family what is the definition of a multi-family housing it could be a a high-end um condo you know you complex or something that is not helping the workforce housing it seems like it should be a little more nuanced um perhaps i i would like to see it a little more nuanced i i i like that that we're moving in that direction but i feel like we should have you know the incentive should be a little more obvious councilman any comments i have no other comments thank you very much for this um comprehensive report aaron and um emily thank you council member upworth comments yeah i just i want to say how much i appreciate staff's work on this mr singwald and ms conrad um i i'm sure you knew from our user fee um discussion that we were going to get to this point and i think you took all of that into account when looking at these fees as well um and that's appreciated um i'm for trying this approach um that you've presented to us tonight um uh but i i do want to also state that i would like to see us take a look at it maybe five years um and and to try to keep with the best practice like that to know that uh it's been since 2007 uh that we've taken a look at this is um quite incredible um and i recognize that a lot of that has to do with something that we're going to be embarking on which is the capital improvement plan which i know myself and my colleagues are very much looking forward to getting to so thank you thank you for um all the comments uh thank you to the community and to the team um i i uh would echo what uh council member edwards just said i think that when we start talking about the capital improvements plan um that is in great need to be discussed um we have the opportunity to really take a deep dive into some of these um diverse housing and policy and pricing it's just so complex there's so much to it we we definitely to be continued um i appreciate the approach last year council did take a stance on um on these fees um as far as where we were going and holding the line uh as best we can and i feel like we did a really good job with that and doing the 3.9 percent um ccc i adjustment is just to offset the increased costs and stays kind of in tune with where we had directed step to go where we did not want to increase fees um a few went up a few went down and um i appreciate you wanting to bring a future agenda item and definitely when we get there i will support that and with that i will be looking for a motion from i'm happy to make the motion uh thank you madam mayor i move that uh morrow bay city council adopt resolution number 38-26 approving the development impact fee study and nexus report establishing development impact fees for the city of morrow bay and adopting the fiscal year 2026 dash 2 master fee schedule and i'll just add with those corrections with those corrections as noted earlier thank you do you have a second i'll second that a motion and a second any other discussion um i guess i would just ask if you would consider adding or including the um adu or taking away the the advantage to the adus that are over a thousand square feet in that as a 750 i keep saying that yeah i i would prefer that that's addressed um in the next step looking at the incentive program that's with your your future agenda item okay and would that be like an one that's going to happen before this the five years yes yeah okay okay i have a roll call vote please have a motion and a second thank you fingers crossed mayor pro tem eckles yes council member lefay yes council member edwards yes council member landrum yes and mayor wixom yes motion carries five oh thank you thank you thank you thank you again to your team mr singwell and miss conrad we appreciate it and to the consultant moving on to the next item uh approving the urban 2025 urban water management plan water storage public works thank you you you you you you you you you good evening mayor and council uh damaris hansen um utilities division manager um tonight we're going to be bringing the 2025 urban water management plan first i will say that this plan usually does go to pwab um we do not have it quite ready yet for the may meeting and uh the june meeting was cancelled due to not having a quorum so we weren't able to bring it to them it does have to be turned into the state by july 1st next i would like to introduce deb skeleton she is our utilities compliance specialist and she worked really closely with confluence here to write the urban water management plan so i'll pass it on to good evening mayor council and staff so um the urban water management plan agenda will be going over the background the chapters included in the urban water management plan the water reuse water supply water reliability the demand management measures the water shortage contingency plan as well as the conclusion urban water management plans are required by the california water code and urban water management plans must be updated every five years and submitted to the department of water resources the goal is to support long-term water supply and drought planning it's coordinated with local land use planning agencies and again the goal is to ensure supplies meet existing and projected demands over a 20-year horizon through 2045 with an optional five-year 2050 the plan the urban water management plan provides framework for conservation as well as a drought response it is often a prerequisite for certain types of loans and grants that the city may future seek the chapters in the urban water management plan start out with an introduction and a lay description of the plan it goes over the plan preparation chapter three we talk about the service area description in chapter four the water use characterization is discussed in chapter five we go over some uh tables sbx seven seven baselines we look back at the 2020 targets and at the 2025 reporting and offer a comparison of the water supply supply chapter six goes over normal year water supply characterization and then we move into chapter seven which covers water service reliability and a drought risk assessment included with every urban water management plan is a chapter on water shortage contingency plans along with demand management measures and then chapter 10 covers the plan adoption submittal and implementation this report can be pretty technical and talks about things that folks don't normally use in their common everyday discussion one of which is acre feet the acre foot is a unit of volume commonly used in the u.s. in reference to large-scale water resources If you see the diagram on the right, you'll notice there's a football field with a drawing of an acre foot of water superimposed over it and you can see that an acre foot of water is basically an acre one foot deep of water. It doesn't quite cover the football field, but it gives a good visual representation of what we're talking about when we talk about an acre foot of water. Acre feet per year is the acre foot unit of volume commonly used in the U.S. in reference to large scale water resources and it looks at that usage over a year's time. For the purpose of a year, we are talking about a calendar year unless otherwise specified. Another metric that you'll see in this report is gallons per capita per day. Per capita water use is a metric representing an individual share of a community's average daily water needs. One of the conversions that will come up in the plan is gallons per capita per day multiplied by the population times the number of days in the year. And that will give you your gallons. If you further divide that by the representation of an acre foot in gallons, which is 325,851 gallons, that will give you your acre feet per year. I'm going to turn over the rest of this discussion to Dan from Confluence to go over some more of the technical details. Yeah. Thank you, Deb. Yeah. Thank you, Deb. Yeah, I think Deb provided a really good overview of what's in an urban water management plan and some really helpful unit descriptions that hopefully will service as I go through my portion of the presentation. As you'll notice from the sort of the outline of the chapters, there are a number of prescribed components of an urban water management plan. This is a regulatory required document. So there's quite a bit to weed through in the beginning, but I do want to say that it's worth it. As you get to the later chapters, chapter 6, 7, 8, you really get into the heart of what this document is trying to do. And this document really by state mandate is to require water utilities to do long-term water supply planning. And it has somewhat prescribed methodologies for how agencies are supposed to do that. But those methodologies are really useful and actually aligned really well with the water supply planning work that the city has done over the last five years. So we're looking at a water supply portfolio through a single year and a multi-year drought, for example. So to jump into it, the first thing that we start off when we were doing sort of the, what I call the meat of the water supply planning for the urban water management plan is we start with population projections. You know, water use is, our total water use is proportional to population. And so we have population projections shown here that were used as the basis of predicting future demands for the city. And the references for these different populations came from a number of sources. The population for 2025 came from the California Department of Finance. And we actually used some California Department of Finance population estimates from 2020 to 2025 for the purposes of calculated gallons per capita per day for city water usage. So for 2030 and 2040, the population projections are from the plan Morro Bay or the city's current adopted general plan. And then for the period of time extending past the general plan, we used San Luis Council of Governments or SLOCOG regional growth forecast populations for the city. And so these population projections get embedded into the demand projections that I'll cover here. But first we had to establish an estimate of the average amount of water a person in the city of Morro Bay uses or a gallons per capita per day value. And so we have a graph here that shows historic water usage rates going back to 2015 or 2016 specifically. And as you can see, there's been sort of an increase overall in gallons per capita per day water usage from 2016. Now we'll have to remember that 2016 we were in the midst of a four year drought. And so, you know, conservation was at very high levels. And so it's not abnormal that we would see potential increases in water usage rates in the city. For however, as you can see on the green line, that was our, the city's target under SBX 7-7. And that was a state mandated initiative for agencies to establish a water usage target and then to achieve water usage rates below that target by 2020. And you can see the city met and exceeded their target through a variety of conservation and other measures. For the purposes of projecting future demands, we had to establish an average gallons per capita per day. And so we used the average of the last five years. So 2021 through 2025 and approximately 98 gallons per capita per day was used for all the future forecasts. So that usage rate was then applied to the population projections that I showed you on the previous slide to develop the water usage projections that are shown on this slide. So again, we were showing the historical. Now we're looking at water usage total for the city, not just on a per capita basis, but still there's a similar trend because population doesn't change much over a five year period. You can see water usage as we described early increased from 2016 drop down in 2021 2022 as we entered another drought and then rebounded a little bit here in 2024 and 2025. To get the projections of future water usage for the 2025 urban water management plan. Those are the lines shown in blue. We applied the gallons per capita per day average by those population projections as I described previously. One of the most important things to note on this slide is we included in green the future water use projections from the 2020 urban water management plan. So the last iteration that was completed and you can see that the water use projections for the city have dropped significantly from that plan to this plan. And that largely is tied not necessarily to changes in anticipated future populations, but it changes in the assumptions of the amount of water that a average user is using. So the state had some incentives when the 2020 plans were planned, were prepared to account for rebounds in water usage rates that they were anticipated to see, you know, coming out of the drought. We're seeing some evidence of that, but obviously not nearly the evidence that the state wanted the city to conservatively plan for in the last urban water management plan. So we're seeing that, you know, that this projection really has a better representation on what the city may see in the future with respect to total water demand, you know, based on not accounting for significant rebound in water usage rate and also accounting for average water usage rates over the last five years. So those blue numbers will become important as we dig into the future slides and look into the assessment of the city's water supplies ability to meet those future demand conditions. So this is a table that shows reasonably available water supply for the city. This is a required table in the urban water management plan. This is intended to represent how much water the city might have on an average year. And as you can see, under average conditions, the city is projected to have a very, you know, large supply of water associated with a reasonably healthy state water allocation. And that's largely bolstered by the fact that the city has 1,313 acre feet of water service amount, as well as 2,290 acre feet of drought buffer. So in an average year, when you've got a 40% state water allocation, the city has over 1,300 acre feet just in state water available to it. Additionally, we did some analysis to try to estimate how much stored state water the city would have in an average year. And the estimate from the water supply modeling that was completed projected a value of 1,800 acre feet per year. And then additionally, the city has water supply available from the Moro Valley groundwater basin. And it's included in an estimate of 436 acre feet per year that accounts for losses through the brackish water reverse osmosis treatment system. And the city's water supply permit for the Moro Basin. And then finally included is the recycled water component. So the 412 and a half of recycled water that the city is planning for as part of the WARF program. And so that's the projected reasonable amount of water that the city is expected to have over the next 25 years. Now, when we're doing water supply planning, we don't plan around average years. It's really planning around drought years. And so this table, while interesting, doesn't really tell the whole story. As we move into table 7.2 from the report, this is where we start to dig into the impacts of drought on the city's water supply portfolio. So we have a table here that is just looking at state water allocations. And the reason we're looking at state water allocations is they are highly variable. City's groundwater supply, the recycled water supply, those are much more stable water supplies that the city can anticipate to have. But state water, as we have observed, has extreme variability in the amount of water supply that can be available. So in an average year, as we saw before, 1,313 acre feet, that's basically the city's, more than the city's current demand, and actually more than the city's demand at build out. So in an average year, state water would be enough. However, if you go to a single dry year, that amount of state water available to the city could drop by an order of magnitude, almost, to 180 acre feet per year. And that's the amount of state water the city could have associated with a 5% allocation from the state water project. And then the real stress test for a water supply portfolio is a multi-year consecutive drought. And so that's what we're illustrating on the last five lines is showing anticipated amounts of state water that could be available over a multi-year consecutive drought. And this is a drought that represents annual allocations from 2018 through 2022. And incorporates the three lowest state water allocation years that we have on record with a 20% allocation in 2020, a 5% allocation in 2021, and a 5% allocation in 2022. And you can see the corresponding amounts available under those years. They're a little bit higher if you look at percent of average supply, and that's because it factors in the city's drought buffer. But you can see that the amount of state water available in the city can range from 1,300 to 180 acre feet. And that's the variability that is challenging to meet and plan around. And that's really where this plan helps the city assess its water supply reliability in those extreme drought conditions. And so we've pulled a couple of charts from the urban water management plan. So these are the visualizations of how the city could anticipate meeting its demands under a multi-year drought scenario. So just to orientate, this first chart is the water, water, or sorry, this is the drought risk assessment chart. This is looking at what if we entered a five-year, multi-year drought in 2026 that mimicked the drought or the five-year period that we had from 2018 through 2022. And what supplies could the city have available to it to meet those projected demands? So the demands are shown as the black line. And then the available supplies that the model estimates could be available to the city are shown as the colored stacked columns. And so under the first two years with relatively ample state water supplies, the city could rely on state water and a little bit of groundwater as it normally does and has done over the last decade or two decades plus. However, when we start to hit those low state water allocation years estimated in this scenario to hit in 2028, 2029, 2030, you can see the amount of state water that is available starts to decrease significantly. The city starts to have to rely on stored state water. That's the hatched blue color. And needs to utilize the IPR system to ensure that there's enough stored state water to get through the duration of that drought. If you were to not include the recycled water supply in this scenario, you would see a deficit occurring in 2030 as the city would use up its available stored state water and would not be able to have a sufficient supply to the water. And that would not be able to have sufficient supply to meet its demands at the end of that five year consecutive drought. So that's kind of a near term look. So that's kind of a near term look. The drought risk assessment kind of asks the city to look five years in advance from now. The water reliability analysis asks the city to look far out into the future. So now we're looking at a similar scenario, but instead of looking at demands that are projected for the city for 2026 through 2030. We're looking at demands that the city could see at, let's just call it build out or at 2050. And so now we're up to that, that projected demand of 1,301 acre feet. The story's similar in that, you know, during the first two years of the drought, when state water is available, there's sufficient allocations to meet the demands with the city's water service amount and drought buffer. And as those allocations from the state water project start to decline, the city has to start relying on stored state water, recycled water supplies to meet its demands at the end of that drought. And one thing I didn't mention, but the blue polygon in the background represents the amount of stored state water the city has over this five year period. And as you can see, by year five, it has utilized almost all of its stored state water, but it would have projected to have a sufficient supply to meet demands in those scenarios. And so that's one of the key takeaways and I'll get to that. I'll reiterate that back at the end. So the supply demand analysis is a critical component. Another critical component of the urban water management plan and the city's water supply strategy is its water shortage contingency plan. And the water shortage contingency plan is a plan that's intended to guide city staff and the public on how the city would respond to the city. And the city would respond to potential water shortages. And it actually is a very sort of structured framework for how the city would respond to reductions in supply. And when we talk about water shortages, you know, the number one shortage that really comes to mind, people think about drought. But it really could be a water supply shortage of any type. It could be a water supply shortage associated with some sort of disruption in the state water system and the city's ability to access its imported water supply. It could be a water supply shortage associated with the brackish water reverse osmosis facility and some sort of production limitation there. And so the water shortage contingency plan is helpful for droughts, but it also can be utilized to respond or address potential other sort of shorter term water shortage conditions. And the state has prescribed stages for the water shortage contingency plan. And the city had a framework that differed slightly from the state's framework. And so this is a just a crosswalk that shows how the city's water shortage contingency plan matches up with the state requirements for a water shortage with two of the city stages corresponding. Or sorry, one of the state's, or sorry, one of the city stages corresponding to two of the state's required stages. And so what's in one of the components of the water shortage contingency plan are the response actions. So if the city were to see a reduction in water supply availability, what sort of actions would the city take in response to that reduction? And they're broken into stages. And I won't go through all of these. I know there's a lot of them on there. They're included in the report, obviously. But, you know, under normal conditions, you know, there's certain limitations on outdoor water use for vehicle washing and others. Irrigation, excessive irrigation with runoff. And then they, water shortage response actions build upon each other as you go further into the stages. So they don't go away. They just add additional response actions as you get into the deeper stages, you know, culminating with stage five and the city council potential to impose water rationing if such an extreme scenario were reached. Another component of the urban water management plan is descriptions of the city's demand management measures. You know, these are sort of ongoing water conservation activities. They're not the, well, I would characterize the response actions as more reactive or sort of transient, I guess. You know, they're really respective to a certain condition. These are really ongoing programs to help encourage water conservation and limit water usage within the city. And so there are certain water waste prevention ordinances. The city has water meters, which seems odd these days that, you know, water meters. But, you know, they're not the two distant past were cities within California that did not have water meters. And it was just a flat rate for water usage. There's conservation pricing to encourage incentivizing using less water, public education and outreach, water loss management, and then water conservation programs and rebates to encourage installation of water saving devices. And then other various demand management measures. And so in conclusion, you know, the key finding that, you know, I think sometimes gets lost in the urban water management plan because there is just so much that it gets, it is required to put in there is that the city's supplies expected to be able to meet current and projected demands through 2050 through, you know, continued water use efficiently, but also through a diversified water supply portfolio that incorporates future recycled water use. And then that the urban water management plan is anticipated to meet all of the Department of Water Resources requirements. And we just included a couple or credit Damaris for including a couple of water photos. We got the California Aqueduct, the control center at the city's water resources center, and then the RO membranes at the advanced treatment facility also at the water resources center. And just a couple more slides. So the schedule for the preparation of urban water management plan in late April notices of preparation and notices of public hearing were sent out to stakeholders in compliance with state requirements. And then the plan was announced on June 4th, the draft urban water management plan was released. That release was noticed in the newspaper, as well as noticing this public hearing. And then tonight we have the public hearing for adoption consideration of the city's urban water management plan and water shortage continuity plan. So the plan was announced that the state has to be submitted to the state by July 1st. And if the city's not in compliance with that deadline, there could be impacts to grant or other low interest financing. And then finally, you know, after submission, there is a three week period where the UWMP needs to be recorded at a California State Library and with local jurisdictions. And that concludes our presentation of the 2025 urban water management plan. Thank you, Dan. Questions to my right? Councilmember Le Fay. Thank you very much for the information. Very hard to understand, very complex, but I'm relying on your expertise to know what you're talking about. One of the things that I'm having a hard time and I have followed state water and understand the we only get allocated a certain amount. The thing that I'm troubled by that I I'm trying to grasp is this stored water from the state. In other words, let's say we get our 1300 acre feet, which is normal, I believe the next year we only get 180. But we need to get more, but we can take it from the stored water. So where where is that stored water from? You know, I just don't quite understand that. So how does that come into? How does that work? That's the thing I'm having a hard time grasping. I don't know if that makes any sense. Sure. Yeah, I mean, yeah, that's a great question. And there was a lot more we could dig into here in terms of the different and various components of the city's water supply and the nuances specifically around state water. State water tends to be more complicated than many of the other supplies that make up the portfolios of Central Coast agencies. But yeah, that's great question stored state water. The Department of Water Resources that runs the state water project has a storage reservoir in San Luis Reservoir off Highway 152 near Los Banos. And so unused water or a portion of unused water can be stored in San Luis Reservoir during a, say, let's just say a surplus year or a year when the city and or other state water contractors, subcontractors have excess water for potential use in a future dry year. And that is a critical mitigating strategy for state water users because of the really high variability of state water on an annual basis. Okay, I understand that. And then and the only reason being is that, you know, your green figures of the recycled water, which doesn't work yet, and you're assuming that it will. I'm just I just want to make sure that I keep this in my mind so that if we ever do get into a two, three, four year drought, I know where all our water is for Morro Bay. So so but but but the recycled, we're assuming that we're going to get 413. Is that correct? Yeah, so that that estimate was based around the the the current strategy that the city has for the scale of implementation of the recycled water program, the water supply needs, but also the requirements of the funding and financing agreements that the city obtained for the work program specifically in several cases because of the inclusion of recycled water. So that's the. So. To. Go further than Council member Le Fay. That 413 acre feet if that's not available, if it doesn't work for for some reason, is that so you would just take that off of the graph there and. And that's what it would look like with just out that green spot. The. Yes. So the recycled water supply is not available to the city. Obviously, you can't count on it in in a drought scenario. I would say that the the way the model works if if you were to take away the recycled water supply the city city still has some allocation of groundwater that it could pump in those scenarios. And so you'll see that the the brown section does not equal the four 436 acre feet that the city is entitled and that's just it. So the city would have other waters to turn to in that scenario. But that there that that water supply is vulnerable as well to see water intrusion. And so historically, when the city is pumped lots of groundwater without some sort of supplemental recharge source, you know, there could be implications there. And you said a lot, so I apologize if I'm answering asking something you already answered, but does that five year graph or chart show is that showing? You know, conservation efforts or is it just showing? Right. Yeah, it is showing. Sorry, I mean, to jump in there early. It is not showing conservation associated with implementation of further stages of the water shortage contingency plan. So it's that those demands, you know, of one thousand three hundred one. Those are what are projected under sort of average demand conditions. If the city were to find itself in a condition where it's in a multi year drought and recycles water is not available. There are a variety of strategies the city could implement that to to be able to supply reliable amount of water. That is to reduce demand by implementing further stages of the water shortage contingency plan. So that's another tool in the toolbox that the city could use in that scenario. Another tool, as I mentioned briefly, was, you know, the city does have access to some additional groundwater under its permit for the Morro Basin that's not being fully utilized in that scenario. So there's there's a source of supply there. So back to Council Member LaFay's questions about storage. There are other ways to store water. And so that is something the city could look at is other places to store state water than just San Luis Reservoir. San Luis Reservoir has certain limitations around spills that causes the amount of stored water to reset periodically. And so there's groundwater banks and other storage facilities that could add diversity to its storage portfolio. And that could be another strategy. So the city has quite a few tools in its tool chest to respond to a multi year drought if that were to occur. Okay. And just to still focus in on the conservation, it's really easy to take the green bar off of the chart. But how would you adapt the chart to show conservation efforts? Yeah, great question. So yeah, if you wanted to show conservation efforts, you could basically you would lower that black line by 10%, 20%, 30%. How you know, so basically, instead of trying to find those additional supplies to meet your sort of average demands, you can lower those demands. And so you need less supplies to meet them. Right. And what have we done in the past? How far would it be lowered? Because you said we've done that in the past. We have in the past lowered the state mandated some some lowering of it and we've, we've lowered it was at least about 20%. 20% When we were pretty high usage. Okay, thank you. And one more question to follow that the line of thought there. 95 gallons per capita per day is, I'm presuming a fairly conservative number to use because I know that in the past, this community has, has what it needed to conserve, did an excellent job of lowering that number. Yeah, the 95 is what we are current right now. That's our current. Oh, that's that. So that's our actual. That's our actual. Oh, very good. Okay. And that has, is it fair to say that's trended down over the last 20 years or so? I mean, in general, it's, it's actually gone up a little bit in the last few years. Um, from when we were in the drought, we were a lot, we were a bit lower than we are now. Okay. Um, any, is there anything else that you can attribute the, the slight increase in the last few years to other than the dramatic conservation efforts during the drought? Um, yeah, I mean, I think there's, um, you know, when we were in a drought, a lot of people were conserving and then when you come out of a drought, people tend to go back to their old behaviors and stuff. Um, it could be, you know, an influx of populations or, or in tourists and stuff like that, you know, more people we have in town using water. Mm-hmm. Great. Thank you. Um, this is a really minor thing, but I think I saw on the slide, the build out number was, um, can you go back to that, that number? Uh, the, the water usage projection of the, the, the population. Well, two 30. Measure F is 12, 200, I believe. So we would, it's very, very small number, but, uh, difference, but we would never, under, under current ordinance, we'd never go to 12, 230. Because we have, uh, measure F in place. Okay. Okay. And so I don't know if you'll need to amend that some way or, or. As you, as you'll note there in the, the, the bottom, the, the reference, uh, that's from the San Luis Obispo Council of Government's estimates from 45, 2045, 2050. Hmm. So that's where that starts. Well, they, yeah. So they may not be aware that we have, um, a, a growth limitation ordinance, measure F that was passed. Um, and then my last question for you is. In chapter four, uh, there were some comments about the distribution, distribution system losses. Uh, there's been a trend of increasing losses, uh, and the report mentions, uh, likely from aging mains, meters, possible inaccuracies in state water. Supply volume reporting, uh, mentions the city's investigating. 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Um, so we, you know, what we, what we used as kind of a baseline was the 2020 census. I mean, that's the best population data we have, but that's a single data point for a year. So from 2020 to 2025, we had to use the Department of Finance estimates as the next best available. And then from there, we want, it make, you want to transition to the local agency's planning document. So the general plan plan Morro Bay is the adopted planning document for the city of Morro Bay. And so the most applicable, but it ends its population projections end at 2040. So then to project to 2045, which is a requirement of the urban water management plan. And then the city went another five years beyond that as an optional, uh, we had to use some other source. And so the, the best available source that we have here locally is the slow cog population estimates. Oh, okay. Okay. Thank you. And then I'm glad you brought that up council member Echols because obviously they don't under, they don't know about that measure app. So. Okay. Thank you. Thank you. If there's no further questions, this public hearing item, public comment is open on this item. Betty Winholtz. Betty Winholtz. Just a couple of comments. Um, I'm glad that you all elicited that in the past, what we've done is conservation, bring the requirement down and actually borrow money from other agencies like, um, San Luis. Um, Cayucas, the other agencies in the area that we have always met the need of the community either through conservation or otherwise. And this is even before, uh, the injection wells were in our minds. And so that brings me to my question. We've promised the state that we would produce some 800 plus acreage out of the injection wells. And yet this report's only counting on 400 of those. And is the state willing to receive the 400 as opposed to the 800? And, um, I know in the past when we've had water reports, they've reported on the percentage of loss in the town. And I do remember the figure 10%, and that was a few years ago. So I don't know if that's gone up or if it's still at 10%. And again, um, it's a 2025 study. So I'm wondering why maybe there wasn't better planning. So P web could have had input into this for you. Anyone else for public comment on this hearing item? Betsy got it cross. Um, I was going to bring up what Betty just said. This was, we didn't talk about it because it was stated that we didn't have a May and June meeting, but this started, this was a draft for 2025. So obviously it's been in the works for a while. Um, uh, just a little side note page. I think it was page eight. I'm thinking of bringing binoculars now to meetings because the, the type is so tiny. If you really want us to read it, we can't. And, um, one more thing, um, that we've talked about. I've asked this question at, uh, Public Works Advisory Board. How are you doing on the wells finding locations? And when is that going to start being implemented? Thank you. Anyone else for public comment for this item? I was just going to say, I, I don't want to sound like I'm not appreciating all the hard work that everybody does. Cause I know you guys do an awesome job. So thank you. Thank you. That's it. Anyone else for public comment on this item? Ray, are there any raised hands in the queue? Yes, there is one raised hand. Judy Lynn. Go ahead. Hello. Yes, we can hear you. Thank you. High Council, Judy setting 59 year resident of moral Bay. And, um, I just wanted to say in 85, we had a drought and we had a moratorium on bay. And we had a moratorium on building. And fortunately we built our, our desal plan about the time we got it done. I think it just started raining quite a bit and we didn't need it, need it anymore. But, um, I'm just really happy and proud of moral Bay because we've always been able to manage our water woes. And we have lots of options. We can always build our own desal plant again, if we wanted to. Um, I, something I didn't hear in the report, I heard a little bit of doom and gloom. Um, something I didn't hear was the fact that California is, um, working on a new sites reservoir project. And it's a new off stream storage project that will capture stormwater and provide reliable water supplies during dry periods for communities, farms and the environment. And, um, it's designed to be integrated with the California state water project, which will help improve water supply reliability and management during droughts and floods. So I feel like the outlook is looking really well. I know the county is pushing hard for moral Bay to host a big desal plant because other communities around us Paso and Cambria and some others have not planned as well as we have. And so they want us to host this plant to help them. And I think it's time they stepped up and help themselves and we protect our little area. Thank you. Bye. Bye. Are there any more raised hands in the queue? There are no more raised hands in the queue. Thank you. If there's no more comment, I will close this public hearing item and bring it back to council. Um, the state did mandate 825 acre feet. We were able to negotiate it down a year to a while ago. I don't remember exactly. I'm sure Dan or Demarestan could chime in to 413 acre feet. And right now we're challenged to see if we can meet that with these other two test wells. Once we start addressing that, we have one well that's producing, Demarest what's the well number one approximately? A hundred gallons a minute we can inject. A hundred gallons. So, um, so we only need 313 more to meet the state mandate and, you know, um, stay tuned as the, the two wells come in. So, um, did, did I miss something on that? That was, uh, they accepted that reduction, correct? Thank you. Comments? Deliberations? Motion? Okay. Uh, I move approval of. Let me pull it up unless somebody has it up. I got it. Thank you. Um, I'd like to move and adopt resolution numbers 39 dash 26 and 40 dash 26 approving the 2025 urban water management plan. And water storage contingency plan. I think I have a motion. Do I have a motion? Do I have a second? Second. I have a motion and a second. Roll call vote, please. Council member Le Fay. Yes. Mayor Potem-Echols. Yes. Council member Edwards. Yes. Council member Edwards. Yes. Council member Edwards. Yes. Council member Edwards. Yes. Yes. Council member Edwards. Yes. Yes. Council member Edwards. Yes. Yes. Council member Edwards. Yes. Yes. Yes. Yes. I am. Motion carries 5-0. Thank you. Five minute break. Thank you. Oh, all right. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Mr. Mayor, I'm sorry. Thank you. Thank you, Mr. Mayor. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Madam Mayor and members of the council. Nate Stong, city engineer. This public hearing item before us tonight is twofold related to the Cloisters subdivision and specifically the Landscaping Lighting Assessment Maintenance District and or we'll call it the LLMAD for short if that is short. This was a subdivision that was recorded in 1996 with 34 acres of public lands including parks, open space, wetlands, and right of way landscaping that were conditioned on the development to be maintained and funded by an annex assessment of the subdivided parcels. We had 120 lots in the original Cloisters, single family homes that is, and then there were four lots for public spaces and one the subject of tonight, lot 124 was envisioned as a fire station but over time that plan changed and it was subsequently sold and the developer subdivided that lot. Just last year, the map recorded five lot subdivision at the corner of Coral and San Jacinto. That's track 2859. And leading up to tonight's meeting, there were two meetings, one in April to initiate the annual levy of the assessment district. That didn't discuss the annexation of lot 124. In May, there were two resolutions that the council adopted. One was to approve the engineer's report which summarizes the costs in the maintenance district and the projected costs and the activities performed under that maintenance activity. And so the council approved the engineer's report and they established this date for this public hearing to order the levy for the upcoming fiscal year. And by separate resolution, there was the intent to annex track 2859 into the district. So I don't have a presentation for this item. I'm happy to take any questions. And I'll keep it brief. And that's an overall summary. I think one thing I should mention is that the assessment amount has been fixed since the time of subdivision in 1996. There were no ties to consumer cost index or escalation provisions. So the purchasing power of that assessment revenue has been eroded over the decades, the 30 years since that was enacted. So, yeah, with that I'll take any questions. The recommendation is one to approve the annexation of track 2859 into cloisters, landscape lighting and maintenance district. And the other is to order the levy for upcoming fiscal year of the assessment amount as described in the staff report. Thank you, Mr. Strong. Questions? I don't have any questions, but my member of the committee, I think, but my memory serves me correct. I thought we already approved this. It's several hearing items. Oh, I'm sorry. Apologize. Several hearing items for it. It's probably . Get used to, every year you're going to see this three times. So there's a, the first meeting is initiate proceedings in April, and then there's the intent to levy in May, and now here we are at the order to levy. So this, and we have this extra item of the annexation on top with this. Got it. Okay. I have no questions. Thank you. Questions? Thank you. I know this is mostly procedural, but could staff, we've received a lot of constituent concern about just maintenance issues out at cloisters. So could staff just comment to maintenance out there? And I'm looking forward to the, I think some of the folks in the public are here to talk about that as well. So I'm looking forward to that public comment also. I'll take a stab and interim director, public director Hanson can join in if she, I think that. Yes. Following the initial discussions with, with residents out there, staff did meet on site and discuss not only the general maintenance overall, but also the water retention area. And, and subject, subsequently to that maintenance did go out and clear out some of the paths. I understand that they cleared out some of the cutting that needed to be there. So staff has had an internal discussion about making sure that we are up to date in, in, in doing the work out there that's required to be done due to the assessment. There has been some discussion back and forth about the numbers that were assigned to that work. And I think it's currently a public records request for that information that we're, I think still working on, but, but staff is aware of the requirements out there and is, is, addressing any concerns that residents have as we go through. Great. Thank you for that information. Council Member Edwards, any questions? Not at this point. No. Thank you. This is a public hearing item. I have, uh, two speaker slips, Steve Stevens, and then I believe Don Beatty left. So Steve. Steve. Hi. My name is, uh, Steve Stevens and I reside in the Cloisters. Uh, respectfully, I wish the city council to request the city attorney to please address the specific questions as to what is the special benefit in the assessment district. And is the, is not the allocation of the collected funds in the assessment limited to that special benefit. Uh, California constitution defines special benefit as quote, a particular and distinct benefit over and above general benefits conferred on rural property located in the district or to the public at large unquote. Uh, in the last 20 years case law has only reinforced that special benefit must be particular and distinct over and above the general benefits conferred on the public general benefits are assets or benefits of the entire community, such as a general public park use, the walking trails, etc. Now let's examine and spotlight the proximity issue. For example, on Azure street, a homeowner pays annually $1,241 as their proportionate share of the Cloister special assessment of $148,944 while directly across the street on Azure 40ish feet away, a homeowner pays nothing with a similar sidewalk and neither having a parkway. Also please clarify the previous city, uh, attorney, uh, opined at the one acre fire station lot previously dedicated to the city of Moira Bay. Uh, and part of the, uh, and part of the Cloisters and subject to the CC and ours and design guidelines, etc. Uh, would be part of the current assessment district if ever built upon. And which. Uh, and which. Uh, as is the case was the genesis of the hammerhead designed and approved five lot development. Given the aggregate $148,944 assessment being capped subject to California's prop 218. Uh, and, uh, it's a good thing. Uh, it's a good thing. Uh, it's a good thing. Uh, it's a good thing. Uh, it's a good thing. Uh, it's a good thing. Uh, it's a good thing. Uh, it's a good thing. Uh, it's a good thing. Uh, it's a good thing. Uh, it's a good thing. Uh, it's a good thing. Uh, it's a good thing. Uh, it's a good thing. Uh, it's a good thing. Uh, it's a good thing. Uh, it's a good thing. Uh, it's a good thing. Uh, it's a good thing. Uh, it's a good thing. Uh, it's a good thing. Uh, it's a good thing. Uh, it's a good thing. Uh, it's a good thing. Uh, it's a good thing. Uh, it's a good thing. Uh, it's a good thing. Uh, it's a good thing. Uh, it's a good thing. Uh, it's a good thing. Uh, it's a good thing. Uh, it's a good thing. Uh, it's a good thing. Uh, it's a good thing. Uh, it's a good thing. Uh, it's a good thing. Uh, it's a good thing. Uh, it's a good thing. Uh, it's a good thing. Uh, it's a good thing. Uh, it's a good thing. Uh, it's a good thing. Uh, it's a good thing. I think we showed that on our last budget, um, that there was maybe a hundred thousand dollars. Not that much. So something in there. Um, but I, it, the lawns are kept really beautiful. The walkways, the, you know, the, along the sidewalk, all the greenery. And as you drive in through that boulevard area. But what I notice is not being kept up is that in a sense is the infrastructure, which is the bike path, walking path, back against the dunes. It's just deteriorating and much like our streets, it needs to be kept up or it's not going to be any good with a foundation. And so those kinds of things and, and even a sign at the front that says, this is the bike lane. This is the, um, walking lane has never been posted in 25 years. And so maybe just a sign to let the bicyclists know not to be in the street, but up on there where they're supposed to be. Um, so just some little things like that. Thank you. Anyone else for public comment on this hearing item? Meredith Goodman, Cloyster's resident. Um, I was given a figure that, um, based on the assessment that we have that 98,000 was gone, went towards payroll. And for 2025. And I was just wondering. What payroll? I'm assuming that at 98,000, that would mean that someone is at the cloisters doing work eight hours, five days a week. And there isn't anybody. And yes, you know, every couple of weeks things are mowed. Um, but there's weeds everywhere. There's a lot of maintenance issues that are happening. And I don't see $95,000 worth of payroll people there. Is there any kind of supervision? And then we went for a walk and we saw, um, one of the maintenance guys weed whacking weeds on the sidewalk. And he was not, didn't seem to have a lot of pride in his job because the weeds were still this big and the sidewalk cracks after he weed whacked it. So I, you know, I'm just wondering what that $95,000 is being spent on. Is it administration? Where is it going? Thank you. Anyone else for public comment on this item? Ray, are there any raised hands in the queue? Yes, there are two raised hands. Judy Lin, go ahead. Thank you, council. Um, Judy setting resident of the cloisters. And I just want to say thank you to, um, public works for the work that they have gotten done. And they did go out and visit after our last, um, council meeting and assess things. I would like to encourage the city to please, um, be urgent about getting the storm drainage canals and the pond cleared of the reeds that are covered. And they're, um, the reeds that are preventing proper and safe, um, drainage from the hill streets east of the highway. And then my really big concern right now, I mean, yes, there are weeds. Yes, the maintenance has taken a downturn since, oh, about 2021, 22. Um, but the kids playground structure has been cautioned. An area of it has been cautioned off. And it, it needs, it just needs attention. And I'm not, I'm not sure why that structure that's getting so much extra money and there's extra money in the, you know, in the account, $200,000. Why can't that be fixed? Why can't it be, the wood be cleaned up and, you know, um, refurbished? And it seems like when something breaks, they just take it out of there or they rope off a section and the kids can't play on it. And I'm not talking about a section that's been roped off for a week. It's been roped off for months, maybe even a year. And one of the little toys that, you know, kids hop on and they, you know, ride back and forth, you know, one was broken, which things like that happen. But there's no reason why a new one can't be ordered and installed. So now there's, that's just not there anymore. And I'm just looking, looking towards the day where our public works takes pride in our playgrounds and wants our kids to have good, safe equipment. Thank you. Okay. Next is Dawn Beattie. Dawn, go ahead. I'm reminded I have a great quote by some example: "A mind is like a parachute. It doesn't work if it's not okay." I'm not here to deny my support for the N11. I do want to ensure the assessment funds being collected are being spent on things that benefit the homeowner, not just the general public. Things like the pond and its coal, as you heard others speak of, although they can arguably be the responsibility of public work as they're part of the city, somewhat efficient. And the fencing along the environment's places and habitat areas, which haven't been tended to in the years. And then, of course, just the general maintenance systems such as new planting or the itching of the media. And most importantly, we'd like to again recommend the state to go with a potential ecosystem manager to vary in a wayland and provide growth and long-term maintenance recommendations. As others have said, he is new at the beginning of the city has done since he broke up two weeks ago. But there are still withers in the public that desperately need clean life. The general maintenance has been a real challenge for over 20 years, not for a full year. I've lived there for over 20 years. Lots of action always takes place around this annual event. And big damage will drop. You know, please let's try to change that scenario. One thing I want to say. When our party neighbors got gathered every day, we agreed that bringing back the closest quarrel to the city, which both a member of the council and our final structure is 10 equals 3. We have them, they will be really, really, really good. I'm a bit confused as to why the annexation of the new five laws is being combined with the annual social level. The other thing is that the state is being combined with the new five laws. The other thing is that the state is being combined with the new five laws. The state is being combined with the new five laws. The state is being combined with the new five laws. The state is being combined with the new five laws. The state is being combined with the new five laws. The state is being combined with the new five laws. The state is being combined with the new five laws. The state is being combined with the new five laws. The state is being combined with the new five laws. The state is being combined with the new five laws. The state is being combined with the new five laws. have been used to guess. Why would the overall $140,944 that was associated with maintaining purchase property, not divide by the new $125,000, like Scott Graham promised us, if the level of responsibility in Hudson's State is fair to go against working employment. So join me in working to make that community something we can all be sure about. Thank you for listening. Are there any more raised hands in the queue? There are no more raised hands in the queue. Thank you. With that, I will bring it back to Council on closest public hearing item. Mr. Stong, is there any opportunity you could address if there's a work plan discussion in place regarding the cloisters area, what the paths, the playgrounds, the drainage, and those things? I know you've met out there, but is there any work plan in place at this point? Or is this a... I haven't actually met. Our public works director and maintenance manager met with the residents out there. Mr. Craig? I haven't received up to the staff on any future work that needs to be done out there, but I would note that we are currently without a permanent director, and once the new director is on board, I think that's one of the orders of business to have them tackle and talk about the maintenance out there and any future work. I haven't heard any discussion about the infrastructure out there as the citizen was discussing the trails and or the roads, but we'll certainly take a look at it and see what the plan needs to be out there. So the playground structure, because I walk out there, has been cautioned off, and I think something broke there, so for safety reasons, but I wasn't sure. Is that public works addressing that or parks and recreation addressing that for replacement or repair? Given other discussions around the city, I believe it would be public works will be taking care of that, so I'll make sure we get some follow-up on that. We'll follow-up on that and see where we're at. And yeah, thank you. I appreciate that. And make sure we have a work plan in place. Ms. Swanson, were there any votes cast in protest? Thank you, Mayor. The affected property owner submitted an assessment ballot in favor of the assessment. No written protests were received. Thank you, Ms. Swanson. Yes, we're going to move into -- I just have one question. The speaker that came up mentioned an assessment on Azar, I believe the street was. Azure. And then the house across the street got no assessment. On Azure Street, the houses on the site he was referring to are part of the Cloisters track. On the other side of the street, that's the old part of Morro Bay Beach track and is not part of the Cloisters development. Unless there's something Mr. Stong wants to add to that? No, and I think -- I don't know, Brian, I saw him doing some research. If you want to talk about the definition of special benefit in response to the comment. Yeah, just in response to the questions and comments about the special benefit specific to the assessment district and the parcels assessed. The special benefits are identified in the engineer's report. So that would be the basis for which the city is finding a special benefit in imposing those assessment amounts. And I think just to back up a little bit, this is a subdivision that was conditioned to provide some additional public benefit because it was going to be -- it was a subdivision in a sensitive area and there was previous disturbances that needed to be restored. So the wetland, the walkways, the park, that was all imposed and agreed to and/or voluntarily proposed by the subdivider in order to get approval from both the city and ultimately Coastal Commission. So those work efforts are required by conditions of approval. The mechanism to implement that work currently used is the assessment district. And so that's why we have to go through this process because the city is, in effect, providing the work to satisfy those conditions of approval. If -- that is always an option that the city step back and someone else step forward. But those are conditions of approval that need to be complied with for the life of that subdivision. And if I can ask, is there -- there was a comment made about an adjustment to the assessment amount based on bringing these other five homes in? Is there some documentation to that or -- I'm not familiar with -- with whether there was a statement by a previous city attorney. But I can say that we could not impose assessments that total more than what's been identified in the engineer's report. And so the fact that the assessment for the 120 parcels has never been increased, you know, given that the passage of time, the engineer's report would indicate adding those five parcels at that same assessment amount would not exceed the amounts identified in the engineer's report. So it's okay from a Prop 218 standpoint. And then the assessment amounts should be identical or very similar for the new parcels or the -- for the old parcels. And so it's certainly within the council's discretion to implement a lower assessment amount. But the -- the information presented would support imposing that same per parcel amount on the new five parcels. MS. Would we, Mr. Craig, would we assume then that some of that funding that is in excess is going to be used for replacing that playground equipment or working on what I'm sure will be expensive for the drainage and the pond and those things? MR. I think that's an adequate use for those funds and will certainly be legality. But we'll come back with a plan about using those funds and updating all those equipments out there. MS. Thank you. Any questions before comments? MS. Yes? MR. Yeah. A follow-up question for our city attorney. City attorney Steck, you mentioned the district -- those were -- forming this district was a condition of of the creation of those properties. Is there a path forward to -- for dissolution of the district? MR. That is certainly an option. If -- the city could step back if someone else is going to step forward. So we wouldn't want to step back and not have anyone step forward to create a non-compliance issue. But if -- if -- if -- if someone's willing to step forward and implement an appropriate mechanism that would satisfy those conditions of approval, that -- that is always an option. The assessment district was what was identified at the time by the subdivider and agreed to by the city. MR. Would the -- do you know if there's any -- and this may require more research -- but any way to just to dissolve the district altogether? In other words, if the residents out there voted on it or if the city voted on it or -- MR. My recommendation would be, again, not to do something that would leave a gap in who would take care of it. So before the city would step -- I would advise before the city steps back that there should be a successor put in place. That's satisfactory. MR. Yeah, I don't -- I'm not asking correctly. Because if someone else stepped in, they're stepping into the district, correct, to manage the -- the maintenance assessment district? MR. Another common way that this could have been handled was through an HOA. This -- this subdivision did not propose an HOA. There was a design review committee, but it's not an HOA and there's not, to my knowledge, HOA assessments. That could be a mechanism. Like these five parcels do have an HOA and they are creating an assessment for common areas specific to that parcel. So that would be -- could have been a mechanism and could in the future be a mechanism. MR. So it was -- MR. So is there a mechanism just for eliminating the assessment district altogether? MR. By itself, I would -- in theory, it's an action the council could take, but then you're -- then we would be creating a non-compliance issue. So I would advise against it. MR. Okay. Thank you. MS. Councilmember Edwards? Any comments? MS. No, not at this time. MS. Thank you. MS. No further -- MS. I'll just comment that I remember when that subdivision was put in and it was very, very, very, very, very, very controversial. And yeah, I think it took whatever it has to get that put through all the assessment district and all of, you know, the park and the walkway. It -- it -- it was very controversial. MS. If there's no further comment, I'll move recommendation to adopt resolution 4126, lots 1 through 5, tract 2859 into the Cloisters Landscaping and Lighting Maintenance Assessment District and directing the levy of the annual assessment and ask for a second. MS. I'll second that. MS. I have a motion and a second. Roll call vote, please. MS. Mayor Wixom? MS. Yes. MS. Councilmember Landrum? MS. Yes. MS. Councilmember Edwards? MS. Yes. MS. Councilmember LaVey? MS. Yes. MS. And Mayor Pro Tem Eccles? MS. Yes. MS. The motion carries by Bill. MS. Thank you. Mr. Stong? MR. Thank you. A very similar item to follow on the heels, the annual assessment for the North Point natural area. This is an 11-lot subdivision, track 2110, and a smaller natural area at the North Point of Toro Lane. And in -- again, it went parallel with Cloisters in April. We came to the council for the initial assessment proceedings. In May, the engineer's report was approved, and this public hearing date was set to order the levy. So this is a procedural item, public hearing. Happy to answer any questions on that. MS. Thank you, Mr. Stong. MS. But I'll keep it brief. MS. Thank you. Any questions? MR. No. MS. Councilmember Edwards, any questions? MS. No. MS. Public comment is open on this public hearing item. MS. I move that we adopt resolution number 4226, directing the levy of the annual assessment for the North Point natural landscaping and lighting maintenance assessment district. MS. I have a motion. Do I have a second? MS. Second. MS. I have a motion and a second. MS. I have a motion and a second. MS. I have a motion and a second. MS. I have a motion and a second. MS. I have a motion and a second. MS. Roll call vote, please. MS. Okay. MS. Councilmember Landrum. MS. Aye. MS. Mayor Pro Tem Echols. MS. Yes. MS. Councilmember Edwards. MS. Yes. MS. Councilmember Le Fay. MS. Yes. MS. And Mayor Wixom. MS. Yes. MS. Motion carries 5-0. MS. Thank you, Mr. Stong. Thank you, Ms. Hanson. Appreciate it. And thank you to those who came out to speak from the Cloisters this evening. MS. We will definitely make sure to follow up on a work plan with you. MS. Moving on to our last item. MS. I'm going to turn this over to the City Manager and City Attorney. Our Business Item 8A is Due Diligence Report and Consider Recommendation to Proceed with Closing Under the Purchase and Sale Agreement with Cayucos Sanitary District with Jointly Owned Wastewater Treatment Plant Property Located 160180 Atascadero Road. MR. Thank you, Mayor. MR. Respectfully, I'd ask for you to reintroduce that item with the City Attorney and City Manager after that. MR. So he's forced to take the lead on this one. MR. I'm going to turn it over and let Mr. Stack go through this for us. MR. Yes. MR. I'll try and end the evening on what hopefully will be a high note. MR. Good evening, Mayor and Council Members. MR. The purpose of this item is to provide a report on due diligence conducted under the Purchase and Sale Agreement, previously approved by this Council, to purchase the joint interests of Cayucos Sanitary District and the wastewater treatment plant properties and other related assets. MR. Next slide, please. MR. This Purchase and Sale Agreement was approved by our Council on March 24th, 2026. MR. It was fully executed and became effective on April 2nd, 2026. MR. Under the agreement, the City would purchase the District's interest in all jointly owned JPA assets or joint assets under the Joint Powers Agreement, including 40% of real property and 35% MR. The purchase price is $3,867,800, which represents 40% of the appraised price for the real property assets. MR. A budget amendment was previously approved by our Council along with the agreement on March 24th. MR. Because the City would be buying the property as is, the parties agreed to a 90-day due diligence period where, MR. In addition to standard inspections and title review, the City could obtain a qualified environmental assessment to evaluate potential hazardous material related concerns that will be discussed in later slides. MR. Next slide, please. MR. Under the agreement, the City would purchase, again, the CSD's interest in all jointly owned assets, MR. Including the real property identified on this slide, as well as the jointly owned infrastructure. MR. To expand on what you can hopefully see on the slide, the portion to the east outlined in yellow was the site of the former concrete plant demolished in 2025. MR. The portions outlined in red, green, and blue to the west in the figure covered the wastewater plant, MR. A portion of the Morro Dunes RV park, a portion of public right-of-way, and a portion of public beach. MR. The portion outlined what looks like an upside-down L is outlined in orange, is wholly owned by the City already and currently used as a maintenance yard. MR. Next slide, please. MR. So, moving on to the due diligence report and specifically the qualitative environmental assessment, MR. The City retained environmental firm Rue Associates to perform the assessment and evaluate potential hazardous waste issues that may be implicated during future, any future redevelopment of the property. MR. The assessment was performed in two phases. MR. The first phase consisted of a site inspection and document review. MR. This first phase, the purpose of it is to identify whether there was any further investigation recommended. MR. Next slide, please. MR. So, this site investigation and document review, the first phase, identified four potential environmental concerns. MR. There was a previously reported release of 50 gallons of diesel fuel at the concrete plant and also a previously reported removal of an underground storage tank from the same concrete plant back in the 90s. MR. No testing was recommended, only a soil management plan for future earth-moving activity MR. So, this was a very important part of the study, which would be standard practice. MR. Subsurface testing was recommended for the two other potential environmental concerns related to oil staining observed in the maintenance building on the wastewater treatment site and previously reported detection low-level detections of PFAS in previous wastewater and biosolids, MR. So, this was a very important part of the study. MR. So, this is a very important part of the study that was conducted in the past. MR. So, this is a very important part of the study that was conducted in the past. MR. So, this is a very important part of the study that was conducted in the past. MR. So, this is a very important part of the study that was conducted in the past. MR. So, this is a very important part of the study that was conducted in the past. MR. So, this is a very important part of the study that was conducted in the past. MR. So, this is a very important part of the study that was conducted in the past. MR. Soil testing was conducted in the past. MR. Soil testing was performed for PFAS on the southern part of the site where there's three rows of orange dots. MR. Soil testing was conducted in the past. MR. Soil testing was conducted in the past. MR. Soil testing was conducted in the past. MR. Soil testing was conducted in the past. MR. Soil testing was conducted in the past. MR. Soil testing was conducted in the past. MR. Soil testing was conducted in the past. MR. Soil testing was conducted in the past. MR. Soil testing was conducted in the past. MR. Soil testing was conducted in the past. MR. Soil testing was conducted in the past. MR. Soil testing was conducted in the past. MR. Soil testing was conducted in the past. MR. Soil testing was conducted in the past. MR. Soil testing was conducted in the past. MR. 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Soil testing was conducted in the past. MR. Soil testing was conducted in the past. MR. Soil testing was conducted in the past. MR. Soil testing was conducted in the past. MR. Soil testing was conducted in the past. MR. Soil testing was conducted in the past. MR. Thank you. MR. Then I'm going to open public comment. MR. I'm going to invite Mr. Enns up first. MR. Excuse me. MR. President Enns, Cayucos CSD Board. MR. Thank you. MR. My name is Robert Enns, and I've been that president for quite a while. MR. So, so much for term limits. MR. First, we've been at this for just this deal for, MR. For a period of about five years and three different Morro Bay mayors. MR. So I'd personally like to thank three people. MR. Former and interim city manager Andrea Luker. MR. Former and interim city attorney Rob Schultz, who sat in, MR. And good friend, your mayor, Carla Wixom. MR. Those three people made this happen. MR. With that, I'd like to thank you. MR. Without these three people, we'd probably spend another five years. MR. And, and maybe three more mayors. MR. Who knows? MR. I'd also like to special thanks to Brian Stack, who worked with our attorney, MR. Tim Schultz, to work out, iron out the details on this. MR. And thank you, Brian. MR. Thank you, Brian. MR. And with that, I'd like to introduce our new district manager, David Athe. MR. He just came to work with us in January and he was able to keep this moving right along. MR. David. MR. Thank you, President Enns. MR. My name is David Athe. MR. I'm the general manager of the Cayucca Sanitary District. MR. I just, you know, I have a lot of words tonight, other than, you know, a big thank you to your staff. MR. Thank you to you, Mayor Wixom. MR. Everybody's done a great job, I think, of pushing this to the end. MR. We stand ready to assist any way we can to make this, you know, to close escrow so that Morro Bay can be successful in its redevelopment efforts and really have the best. MR. And really have a super project in the future. MR. So with that, just thank you. MR. That's all my words. MS. Thank you, David. MR. Public comment is open on this item. MS. Betty Winholz, I just have a question. Will you maintain the HAZMAT site and if so, for how long? MS. Any other questions? Excuse me, any other public comment on this item? Are there any raised hands in the queue? MR. There are no raised hands in the queue. MS. Thank you. If there's no further public comment, I'll close it and bring it back to Council. Ms. Winholz, that question was answered, I think, a few times by Council Member Edwards that they're moving the site. It's not our site, it's Integrative Waste Management site. And I believe, and Council Member Edwards, you could correct me, it's moving to Camp San Luis. Is that correct? MS. Yes, Mayor. We're in the process. Integrative Waste Management Agency is in the process of moving the site to Camp Slow. They're looking at a July 31st kind of closing down the one in Morro Bay and doing some education and getting out marketing materials to educate people of the change and how to get into the new site, etc. So that's underway. MS. Thank you. Thank you. Mr. Craig? MR. Council Mayor, I'd just like to add that they have made a request of the city to allow them to stay for another month. So we're currently working with them. It looks like September 1st might be the closeout date there. We don't have any plans even after this action tonight. So we're still working with them and giving them a little extra time to clear out of that site. And I think they will have another drop off at some point during them. So that's in process and we'll let you know next council, which is end of July. Currently, they've asked for extension through July 31st. That's been granted. And they've asked for another month now. And so we're working with them to make sure we can be as flexible as we can. MS. Thank you for that information. Comments? MR. I think really I'd like to reiterate President Enns' comments. Thank you, Carla. Thank you for everything that you've done, your council and Zara on the subcommittee to make this happen. Because without you, Robert Schultz and Andrea Luker, I think you are absolutely right. We would be talking about this five years from now. So thank you very much, Carla. MS. Yep. I would just like to add thank you, Mayor Wixom, for getting this done. I think it's really -- this is -- I can't even believe it's going to be behind us. I'm looking forward to it. MR. Yes. I echo those words by my colleagues. There's going to be some champagne flowing. So this has been a long time coming. So I'm really pleased to see this consummating. It's Tuesday, so I'm not sure I'm going to drink champagne tonight, but maybe on the weekend. So thank you. MS. Councilmember Edwards, comments? MS. Yes. Thank you, Mayor. I appreciate actually meeting you, Mr. Athey. And to Robert, it's good to see you. It's been a minute since our integrated waste time. And I just want to say I really view this as a win-win for our communities. It's going to be -- there's other things, other exciting things in our path, no pun intended. We've got that pathway going in between our communities, and I think there's a lot of wonderful opportunity and strengthening of relationship from here on out. So I think this is a great thing. And again, I thank Mayor Wixom and Mr. Stack and everybody who got us to this point. Thank you very much. MS. Thank you. Yeah, I'm going to do a shout-out here. It's Councilmember Landrum and I started down this path when we got elected three and a half years ago, meeting with Mr. Enns and looking for that path forward for both communities and just staying the course. And our first meeting was out at your wastewater treatment facility right when we got elected. So it's been three and a half years for us. But I would share that this relationship -- you know, I looked it back up -- started in 1954. And then there was a new JPA done in 1982. And in 2023, Morro Bay ceased using that plant three years ago. Cayucas had already cut ties with us for many reasons and built their plant successfully. And here we are now, 72 years later. So it's been a long -- sometimes happy and sometimes not so happy -- tumultuous relationship. And I look forward to the opportunities for both communities as we move to our next phase. And I thank you, Robert, for staying the course. I know there was a lot of ebb and flow getting to this point with the past directions of the city. So thank you for staying the course. And I'd love to make a motion to receive the due diligence report and recommend to proceed with closing under the purchase and sale agreement with Cayucas Sanitary District for the jointly owned wastewater treatment plant property located at 160 and 180 at Tascadero Road and 1700 in Barcadero. I'll second that. A motion and a second. Mayor Wixom? Yes. Councilmember Landrum? Yes. Councilmember Edwards? Yes. Councilmember Le Fay? Yes. And Mayor Pro Tem Ethos? Yes. Motion carries 5-0. Thank you. I also want to thank your board, Shirley Lyons specifically, who served on that committee with you and the rest of your team. Thank you. And David, thank you. I wish you the best and look forward to our relationship working in other capacities. Future agenda items. Yes. Yes. Thank you, Madam Mayor. I am proposing a future agenda item to direct staff to bring back some type of incentive program in the shape of a fee reduction or fee rebate program for specific workforce housing, most likely based on the size of the housing. So the intent is that we, staff finds a way to reduce the development impact fees for smaller housing, which would be affordable or attainable by design. I support that. Yeah. Will we also talk about the big ADUs and -- Yes. And to include an examination of ADUs in excess of 750 feet square feet. Okay. Thank you. I like that. Perfect. Any other -- no? Reminder to everyone, July 3rd, Molly Ringwald project and the drone show. July 4th, bike parade and Tideland's family fun day. And tomorrow. Thank you. And tomorrow, we'll see you all for the Morrow Elementary workshop. Thank you. With that word adjourned. Happy Fourth of July to everyone. Thank you. With that word adjourned. Happy Fourth of July to everyone.

Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Good evening. Two items and one led into the other. I was curious about the 416 Main Street project that's going on right now. I remember when it came before Planning Commission and I thought that the garage was supposed to stay and be turned into an ADU or something like that. But it got knocked down. The front house got knocked down. So my question is how do I find an update about that which led me to look into the old minutes for the Planning Commission. And I would like to make the suggestion that the recent minutes for 2026 only list the case number but not like an address so you know what the items about. But if you go back to when Mr. Seenwald first came on in the 2004 or 2005 you had both the case number and the address so you could reference what it is you're looking for. And so I would just like to ask that maybe we go back to including addresses in our minutes so we know how to find items. Thank you. Thank you. Ray do we have any raised hands online? There are no raised hands in the queue. Okay. I will see no further people coming forward. I'll close public comment and ask Erlin do you have any response? Yes. So that is correct that the project that came before the Planning Commission for 416 Main was for an addition to the existing single family house. If you look at the demo plan for that project it did show 90% of the existing residents actually proposed for demol ition in a small percentage of the building to be retained. So the contractor when they started the work the plans called for moving the house off the foundation rebuilding the foundation and putting the house back. As the contractor was attempting that the house did collapse. And so they are still going to build the exact same project that was presented to the Planning Commission. But they had to and the house collapsed. And so they have to just build it up from the ground up now . And as to the addresses being added to future planning minutes. We can do that. Great. Thank you. Thank you. Thank you. We have the first item on the agenda is the well a sixth item actually but the consent agenda talks about the approval of the minutes from the meeting of May 5th 26. Does anybody have any corrections to make to those minutes. Then we would need. Do it. Are we all in favor of approving the minutes. So all in favor say aye aye. Aye. Any opposed. and by the way I should note that we're all here did I note that earlier I don't know that I actually noted that but we do have a quorum but having said that we have a quorum for public hearing item number seven which is next up on the agenda case number coastal development permit CDP 26-007 and design review permit Dr 25-007 two of us are actually conflicted out myself because I live very near the project and Mary because it's her home and so we both have to step down and and we have to have the remaining three commissioners debate while Mary and I are outside the room so with that I'll leave it to Joe and I just I'll turn it over to the development office to to make their presentation Ray if you could pull up the PowerPoint presentation please all right good evening commissioners the case before you tonight is coastal development permit CDP 26-007 and design review permit dr 25-007 for the demol ition of an existing single-story single-family home and the construction of a new two-story 4835 square foot home at 200 kern avenue the project site is located directly west of the morrow bay golf course between louisita street and bradley avenue in the morrow heights neighborhood the surrounding the parcel and the surrounding neighborhood is zoned residential single-unit and the golf course to the east is zoned park and recreation the neighborhood surrounding 200 kern avenue is mainly populated with two-story homes and the existing home is one of the only single family or single-story homes left in the neighborhood it sits on a lot that is eleven thousand eight hundred and forty four square feet with an average slope of eighteen percent as you can see in the images here that slope is mainly in the front of the lot and the proposed home will be sitting on the same foundation as the existing home there here are some renderings provided by the applicant of a front view of the home from two different angles and here are some views of the side profiles of the proposed home as seen from the rear of the lot the zoning code also contains supplemental regulations for residential development the first requires that the maximum amount of paved area in the required front setback be no more than 50% the zoning code also contains supplemental regulations for residential development the first requires that the maximum amount of paved area in the required front setback be no more than 50% and the project meets and exceeds the standard the following supplemental regulations apply only to lots that are over 5,000 square feet in size the first requires that a minimum of 60% of the second story front elevation be set back a minimum of three feet from the first floor wall as you can see in the image here 100% of the second story is set back from the first floor wall which is the wall directly beneath the second story balcony 51% of the second story is set back exactly three feet with the remaining 49% being set back 10 feet and 4 inches the other supplemental regulation offers designers one of two options the applicant has opted for the second of these criteria which requires that a minimum of 25% of each building elevation be set back at least three feet from the remainder of the building elevation so the applicant has met this criteria on all four building elevations these two illustrations show the front elevation and the rear elevation and the setbacks are highlighted and these illustrations show the two side elevations of the two side elevations of the building as you can see this criteria has been met on all four building elevations so the zoning code also contains additional standards for lots that have a slope of over 15% prior to grading the project is located on a site with 18% average slope so it must meet these criteria the first calls for the downhill facing building elevation to be no more than 20 feet and the project as proposed has a downhill facing building elevation of exactly 18 feet as measured from grade to the top of the first story wall the project also contains sufficient articulation on all four sides of the building and the project also contains sufficient articulation on all four sides of the building which breaks up the mass to minimize the visual impacts the next criteria states that multi-level foundations that step down the hill are the standard unless an alternative alternative design is approved through the design review process if the proposed design were to follow the requirements of multi-level foundations then the home would need to be much closer to the design review process the design review process is approved through the design review process to be much closer to the right-of-way and require a significant amount of grading so as proposed the design utilizes the existing foundation of the existing home and is much farther away from the right-of-way and requires less grading for the additional square footage so staff recommends that the planning commission approve the design as proposed the final two criteria of the sloping lot section don't apply to this project apart from the zoning code residential development is also reviewed under the city's residential design guidelines which were approved in 2015 these guidelines work in tandem with the zoning code and the proposed design has been reviewed as such and there are more details on this in the staff report so tonight staff recommends that the planning commission approve coastal development cdp 26-007 and design review permit dr25-007 by adopting planning commission resolution number pc05-26 which includes the attached findings and conditions thank you so tonight we'll be in the right-of-way and the other one is a very comprehensive presentation um is there is there a representative from the applicant would like to say anything Thank you. And do we have three minutes, five? What's our standard? I believe it's three minutes, but I'm not sure for the applicant's representative. For an applicant, you can grant additional time. We'll certainly do. I'll go quick. Thank you. My name is Greg Nguyen, I'm an architect out of San Luis Obispo here representing the applicant tonight. I just want to start off by saying thank you for hearing this item and we certainly have been appreciated by all the work that staff has done. It's actually been really great working in Morro Bay again. The project at hand, as staff has provided to you, is a relatively straightforward construction taking out an existing single story home that was built in the roughly 1950s. It's relatively small. We're replacing it in about the same place with a larger structure. We agree with staff that the project is consistent with the form, scale, massing, landscape, etc. of the Morro Heights neighborhood. It's one of those things when you drive down the road, it's definitely the odd house of the neighborhood. And so I think we're just bringing it back into conformance with all the pieces that are on Morro Heights on the upper side of Kern now. It is a larger than normal lot because it was the kind of intersection of the end of one track, the beginning of another track. So it's larger than most parcels already. In fact, when we started this project, there was a telephone pole right in the middle of the lot that was at the edge of one track. And when the pole got in , the applicant has already removed that pole, making the lot much more usable now. So that's been a benefit also. It wasn't power, it was telephone. And the other benefit of this, the other aspect of this house is that there's really no homes behind that it's getting blocked by this home. It's the golf course behind. So we're worried a little bit about golf balls, but we're less than worried about view being taken away from somebody behind. We've reviewed the findings and conditions and accept all the conditions. There was a, I had some discussions with staff. There was a proposed deferral, or we would like to request a deferral of the public improvement plans or the public improvements as is done much along Kern Avenue there until such time as the city decides to require those improvements to happen on that side of Kern Avenue. So I'd like to make that formal request here. And it's my understanding that it's both supported by planning and by public works that that be allowed. And with that, I'm happy to take any questions that you have. We'll just be sitting over here and I just want to, the last thing I just want to comment on is this is the first project that I've ever had to do where the junior ADU or an ADU was a requirement of the project. It's, this is a new thing that Morrill Bay has. And we were kind of surprised by it, but it all worked out in the end. We're actually kind of happy that it happened. So three minutes. Thank you so much. I'm here for questions. Do either of you have any questions at this point? I have a couple questions. I'm looking at the survey that MBS provided. And it shows the existing five foot wide utility easement. And I'm assuming that that utility easement was specific to the telephone infrastructure that the applicants removed at some point? Correct. And the applicant has a quick claim deed from AT&T. The survey was done prior to the pole removal. Okay. Because then when I go down to sheet A1-2, it has documentation on there, again, from MBS showing the, if I look at the bottom right hand corner, it is showing notations that say existing five foot wide public utility easement to be removed. And then to the left of that it's showing existing four foot wide portion to remain. So did the, the entire utility easement get removed from the property? There was, thank you. There's a portion of it that is for the replacement pole and guy wires. That's right there by the fire hydrant that is to remain. Okay. So, but it's right up front. And so it, I don't see it on the site plan, the utility eas ement. I'm assuming the structure is not over that utility? Correct. The structure is approximately 34 feet back from the property line. It's about 34 foot front setback. And that all that eas ement stuff happens within the first 12 feet. Okay. Questions? I guess at this time, if it's any member of the public attending that would like to make a comment on the project, this would be the time to do it. Betty Winholz. Um, this neighborhood's a little bit up from where I live and I know the lots are pretty good size and I know that this is basically a double lot, yet the house is really, really, imposing. And I, I think the massing is huge. Um, when you consider the ADU, well, which is already included in the 4,800 square feet, this becomes the second largest house on this block on the uphill side, which is just really, I think massive. And I'm sure you all have driven by there. And there's a couple of houses to the south that kind of stand up as well. What makes this house different, I think, is that it's on a more of a raised hill. So not only are you going to have 25 feet in height, but from the road up to the foundation of the, of the vertical distance from the road up, it, I don't know how much that is, but it's got to be at least 12 or more 15 feet. But so it's going to look really high and really imposing. Um, along with that, this piece that sticks out in front, um, even though it has quote, the three foot setback, it has a overhang that makes it look like there's no setback. And, um, it seems to me the whole point of our three foot setback was to make it look like the second floor setback. So I'm wondering if there's a different way to articulate the front. So we don't have that. Um, and I think it's a permanent awning over the first floor as well as over the second floor balcony. And so it seems to me that that's really making it even more of a massive building. Um, and it's hard to compare because when they had the old house up here, you could see the neighbors houses in comparison, but whenever the renditions were for this house, you couldn't see anything around it. So you had no comparison to see what this house will look like compared to the two houses on either side of it. So it's, it's hard to picture the mass, but, uh, you can, you can kind of feel the mass and by finding out the square footages of the houses on that same block, you can see by the numbers being the math person, how this house is going to go from being one of the smaller houses to the second largest house on that street. Um, with 15 houses on the upper side, there will only be four of them that are greater than 3000 feet. So there'll only be one house bigger than what this one is. And so it's, it's just for me, it's really imposing and I don't think it matches neighborhood compatibility, frankly, because it's way above, it's twice the size of the average house on the upper side. And then when you bring in the lower side, you know, that would reduce it, but not talking about that. Um, I think I've talked about that, that, um, so if there's something that you could do to, make it look like there's a more of a setback, that would be great. Thank you. Do we have anyone else in the audience who care to speak? Uh, Ray, do we have anyone online who might have a comment or two? There are no raised hands in the queue. All right. Then I'll bring it back to the commission. Is Tony, you want to start? There we go. In the staff's presentation, there was the dimension that was provided on the north side of the structure, showing 18 feet to the top of the ground level wall. That was, so, uh, uh, can you please clarify, that requirement from average or I'm sorry, from finished grade, uh, that code requirement is specific to the top of the first story wall, not to the roof or not to the top of the plate of the second story wall? Yeah. So it's the, um, downhill, downhill facing building elevations. So we consider that the front most wall. Um, so we measured it from grade to the top of that wall. Okay. And I guess my other question is I do understand the, um, the concern of the, the massing on that lot, but as Betty stated, it is essentially a double lot. Are the other lots on that side of the street on Kern also double lots, or is that one of the largest, if not the largest lot on that side of Kern? There are lots similar in size to it. I believe, um, north of 200 Kern, they get smaller, but south, they're about the same size. Okay. And then my only other question is I know in, in staff's report, one of the design strategies to minimize grading on the east side of the lot would be to keep it in the same location as the existing structure. I'm just curious though, from a, from a structural point of view, is the existing house slab on grade or is that on a raised foundation? We'd have to ask that you do. Okay. The existing house is a raised foundation. Okay. And so it 's, it's early in the process. So I would assume you guys haven't brought structural on board yet, but are we pretty confident that you're going to be able to use the existing foundation? Well, we're, we 're not using this at the existing, um, perimeter footing and joisting. We're going to put a slab in that location, but in the exact same space, same floor level, same sand underneath, but we're going to put a slab there with new footings in it because the existing joisting is not able to support. If I might, the other existing condition is that the current house is too close to the northerly property line by about a foot. And so we're also having to move that line in to make it in compliance. So that's, that 's another reason to. So the new foundation will essentially be in the same footprint as the existing. Same. I don't have that. I don't have a number for you, but it's very close. And in fact, the original intent was to keep it. And then when we started looking at it, we couldn't. So we kept the majority of it and the garage is in the exact same place, the perimeter that we had to pull it in, again, on the north side and extend it out a little bit on the south side. But generally, it's in the exact same place, the exact same level. Okay. And just to add to that, Ray, could you bring up the presentation again? We've made a diagram and Lee can explain it. So the red outline shows the rough area of where the existing home is overlaid on the proposed site plan. Okay. And the chimney on the north side can protrude into that required side yard setback. What is it? Two feet? Three feet? Yes. Yeah. Yes. Two feet? Two feet. Two feet. Two feet. That's all I've got for now. I really don't have any questions to the applicant. But finally, somebody that's younger than me decided to invest in Morro Bay. So I appreciate that. And I appreciate public comment that was made in regards to the size and so forth. But all the rules, you know, all the dots are dotted and approved and there's no exception being asked for. So I really don't have any other comments besides that. All right. So I suppose at this time, I'll bring it back to the commission for their discussion. Tony, do you want to sort of begin the discussion? I don't have any other questions. I've reviewed the requirements, the zoning requirements, and I've reviewed the project as it's proposed. And as John just mentioned, it does comply. It does in fact comply. I guess you have a similar opinion, John, in terms of, yeah . I would say one more thing that having it kind of back up on that lot, on the flat part of the lot at the top where it's not brought closer down to the street , it's about what, 38 or 34 feet away from the front yard setback. So seeing that mound as you're driving up Kern or you're walking up Kern, that's kind of, to me, it creates a little bit of a buffer with the house being further back. I would have more concern if it was maxed out at the minimum of the front yard setback. But I think that keeping it back there on the hill is going to ease that sense of massing from the street level. And, yeah, I'm essentially the same opinion. It's one of the larger lots in Morrill Bay. And I do find it, for the most part, compatible with the houses that are on that side of the street. And it does seem to meet or exceed the design requirements in terms of the lot setback, the foundation setback, and second floor setback, and all the efforts made to break up the massing. So I don't have a problem with any of that. And, in fact, I suspect if we were to decide otherwise, we would, in fact, be, you know, making a decision based on personal taste rather than what the law actually said. And that would probably be arbitrary and capricious. I will say, in my experience over the years of the planning commission, in terms of the renderings, very often the renderings, particularly in terms of colors used in the renderings, in contrast to the stark white paper of the papers in which the files occur, doesn't always make it terribly realistic in terms of its compatibility in the neighborhood. But I think when you see the house in the environment of the neighboring houses, and when you see it with its landscaping in front, I think the argument about not being compatible really doesn't, it isn't, it isn't sustained or it isn't, it isn't reached. So I'm in favor of the project as well. Vice Chair in Graffia, before the commission moves to a motion, you'll recall that the applicant's agent did mention during his comments that they would like to request a deferral of the frontage improvements. So currently the resolution and conditions that are before you this evening do require full frontage improvements to be installed. That's the standard requirement. However, the planning commission does have the authority to defer frontage improvements and has on past projects, to my understanding. So if that's something that the commission wants to entertain, we do have a draft language that we can pull up and show you for deferral of the frontage improvements. And the applicant's correct that we discussed it with the public works department staff and engineering and also our staff. We are supportive of the deferral because on Kern street, there are no other parcels with curb gutter and sidewalks. So if we were to require that of this project, it's unlikely that it would connect to a larger sidewalk system at any point in the foreseeable future. Oh, very good. You're paying Tony on that deferral. What is the duration of the deferral? Or what is the length of the deferral before it kicks in? I don't believe there's a specified time. I think it's until the larger project come or not like citywide project comes to do curb gutter sidewalk. Kern is considered or is characterized as a categorized as a collector street. So on all collector streets, improvements, a project like this one would require curb gutter sidewalk. As Erlen mentioned, there's no curb gutter sidewalk along this block or in the surrounding area. So it would be a deferral. The frontage improvements that they would be required to still do frontage as far as repairing the repairing and putting in the asphalt berm, putting in the asphalt. So some frontage improvements would still be required, but it wouldn't be the full curb gutter sidewalk. And if Ray could pull up the PowerPoint presentation, we have the language that we would, if the, again, the commission wants to entertain a deferral, this is the language that we would recommend incorporating in to the resolution per the engineering division's recommendations. Okay. Very good. Um, John? So I'm just trying to understand if, if 2050 comes and she 's still living there, they're living there as a family and the city decides to put a curb and gutter sidewalk. Is that what's required of that property owner at that time? Is that what you're saying when you say deferral? That's my understanding that there would be some type of deferral agreement that could be actuated by the city at some point or effectuated by the city at some point in the future to require that. You know, I did see this in my neighborhood recently where one of my neighbors built an ADU on the back of his property and there are no other curb, curbs, gutters, sidewalks on the street. And in my opinion, it actually ends up making the property look odd and disjuncted. So, uh, the fact that there are no other curb, gutters, sidewalk up there in front of those other resid ences, I personally have no problem with deferring it. Yeah, I would agree. And again, relying on sort of past experiences on the border, I sometimes think that it's actually becomes a safety hazard of sorts when only one, uh, residence on the street has those and none of the others do. And at the very least confusing and aesthetically, uh, not the best choice. So I would, I would be in favor of the, of the amendment, which, you know, defers this. I guess I have one more question about the request to defer that. Um, is there, is that a, I'm sorry, you probably said this already. Is that a separate application that they have to apply for to defer it or is it just built into the conditions of the approval? It would be built into the conditions of this approval. Um, so the, the resolution as it was in the agenda packet currently requires curb gutter sidewalks. So, um, we would add in this condition that's, it's on the screen, that's up on the screen, um, to , into the resolution to kind of reflect the deferral being approved by planning commission. Okay. And let's say a neighbor down the street decided in a year or two, they wanted to tear down their existing home and build a brand new home. And they requested the same deferral. Would they be just as likely to receive approval on that? Or would that be up to the planning commission at that time? It'd be up to the planning commission at that time. Okay. Well, it looks like, um, we're at the point of decision making. Um, uh, does anyone care to make a motion? I'll make a motion to approve it. I suppose we, uh, now have a vote. So commissioner Defazio. Yes. Commissioner Solu. Vice chair and Graffia. Yes. Motion passes three zero. Um, do we, um, do we, um, do we bring, do we bring back our commissioners at this point? Yes. So it looks like, uh, council member Echols will find them. Thank you all. Thank you, sir. Thank you. We're watching delayed version in the car. So the delay is ... Does that lead us to business items? Alan? Future agenda items? Director comments? So I, so if there are no future commission agenda items, I can give director updates. So I'm going to start by announcing that we do have our survey available for the waterfront master plan update. We have a flyer with a QR code available, uh, all around the room on the dais and in the back. Um, We're also sending a flyer with a QR code in all of the, uh , utility bills. Um, so we expect a pretty good response. We 're really getting the word out on the survey. Um, also, uh, don't be surprised if you see, um, one foot by one foot square sidewalk decals that look just like this, um, in various locations throughout the city. Um, we actually have, I think, 20 different, um, locations throughout the city, um, mostly in the waterfront area, but other places as well, like the downtown, um, where people can just snap a picture of the QR code from their phone while walking down the sidewalk and complete the waterfront master plan survey. Um, that'll be open until July 17th. Also next Wednesday here at the vets hall, the city is hosting another community workshop for the, uh, moro elementary, um, uh, due diligence process. So staff is going to report out on the, um, conclusions so far and the findings of the due diligence process and listen to, um, community input on that. That's from six to eight here at the vets hall next Wednesday, June 24th. Also, we had a couple, uh, city of moro bay, uh, projects on the coastal commission agenda, um, last week on June 11 th. So coastal commission approved the coastal development. Permit for the bayside landing redevelopment project where the associated Pacific contractors building is at four nine five Embarcadero road. Also coastal commission approved our . Our proposed, uh, local coastal program amendment. I'm establishing that bluff top, uh, height limit down on, on front street between, uh, surf and beach. And the sloping lot adjustment that planning commission, um , uh, recommended approval of a while back. In addition. So just to let you know, we don't currently have any items scheduled for the July 7th planning commission meeting. Um, and it doesn't look like we're going to have any items ready for that meeting. So it's not official yet, but you can expect the July 7th meeting to likely be canceled. Um, and that concludes my updates. Okay. Well, that concludes the meeting. I guess we are adjourned. Not, not, I guess we are adjourned. Thank you all. Thank you. Thank you.

Good evening everyone. Thank you for joining us for the Tuesday June 9th City Council meeting. Let the minutes reflect. All council members are present. Call the meeting to order. We'll begin with the Pledge of Allegiance. Council Member LaFayette. Thank you. I pledge allegiance to the flag of the United States of America and to the republic for which it stands, one nation, under God, indivisible, with liberty and justice for all. Thank you everyone. What a beautiful day in Morro Bay. A little blustery but still gorgeous. We will begin with the closed session report from Mr. Stack. Good evening, Mayor, council members, and members of the public. The city council met in closed session this afternoon to discuss two matters. One was a real property negotiation matter involving the property at 231 Atascadero Road, also known as the Teen Center. And the other item was a potential litigation item. No reportable action was taken for either item under the Brown Act. Thank you very much, Mr. Stack. With that, we will move into the mayor and council member reports, announcements, presentations. I'll kick off real quick. I want to start by recognizing the class of 2026, Morro Bay High School, graduating seniors last week. I had the opportunity to attend senior tribute night along with council member LaFay. Our future looks bright. What a great group of graduates and kids. We had the opportunity to recognize 16 of them who had done anywhere from 80 to 211 hours of community service. And the other night, we were attending senior tribute where scholarships were given out over $230,000, I believe? $236,000. $236,000. So just speaks volumes for the quality of young adults coming out of our schools. So we're very thankful for that. I had two San Luis Council government meetings, also known as SLOCOG. One of them was North Coast Transit meetings. We're now meeting to discuss future changes for transportation loops for San Simi and Cambria, Cayucos, all the way down the North Coast. And I'm representing our district on that. And we also had our general board meeting. During that meeting, we voted a 10-2 vote to place local roads first on the ballot. That will be on the November ballot. And that is a half-cent sales tax that would be countywide. And we voted unanimously to send a letter to the Housing Authority and a letter of opposition to the RHNA numbers that they are requesting from San Luis County that they are just way too high. So we will see where that goes. I had a two-day workshop I attended along with Harbor Director Munson, myself, and two other representatives, Lori French from this area, for the Chumash National Marine Sanctuary down in San Ynez. A lot of information to cover. And it's just still in its formation, getting up and going. So a lot of good things coming that way. And then lastly, Visit Slocal meeting, which is part of Visit Morro Bay. Promoting, but Morro Bay, Visit Slocal made the front label, Three Stacks and a Rock, on a collaboration they did with Firestone. And it's available up in Paso. And it's just phenomenal, the graphics and the artwork. And it represented all the cities in the county. But Morro Bay got front and center. So it was pretty cool. With that, I will go to my left. Mayor Pro Tem. Thank you, Madam Mayor. Speaking of Visit Slocal, I met with them this morning. And they're meeting with the various representatives from the seven cities within our county. And the good news is that tourism numbers have stabilized. Obviously, when the pandemic hit, there was a disruption in numbers. Things were trending upward. Before the pandemic, being a beach town in San Luis Obispo County, we actually, in terms of tourism and business numbers, largely benefited from the pandemic. Because if you remember, town was packed with all kinds of folks here during the pandemic. That number was oversized or outsized. And then it went down a little bit. And we've been, both the county and Morro Bay, have been finding our footing ever since then. With Highway 1 opening up, it's produced more business both here in the city as well as the county. So things have stabilized and we're back on that upward trend. So good news there. A week ago, last weekend, the Morro Bay Yacht Club celebrated their 70th anniversary, which is older than this city. So congrats to the Morro Bay Yacht Club. And we did provide a resolution for them. Also, congratulations to all our Morro Bay High School grads. Both my kids graduated from there. And it's great to see another class graduating from Morro Bay High. And lastly, I did another business walk this past weekend. I do a business walk pretty much every weekend. It was busy. So business is good. The concerns that I heard about from business owners were cost inputs, basically inflation. But a lot of optimism because we've got a lot of foot traffic in town. So I think that some of the adjustments that we made with the budget in terms of increasing slightly the sales tax and the TOT was an accurate and good move, given what's going on out there with our business community. So I thank you all for being here. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Mayor Pro Tem for that. Also, I know we do have Walgreens, I believe is still set to open June 18th. So that's coming really quick. I had the pleasure of meeting the pharmacist there. And I think you're all going to really like him. So a couple things for me with the IWMA, which is the Integrated Waste Management Agency. They currently have their hazardous household waste drop here in Morro Bay at the old wastewater treatment plant. As many of you may know, we're going to be going through the decommissioning of that property. And therefore, the agency was looking to find a new home for it. I was hoping that it would be someplace close to all of us because it is one of the highest usage locations. And I mentioned at the last meeting they were looking at Camp Slow. It looks like it is moving in that direction. There's been no contract signed, but they reached out to us and the city manager was able to talk to the executive director. And hopefully we will be getting that extended through August for the drop off to be there for us. And hopefully for them to also extend some sort of marketing plan and educating people on the change of the address and location there. And how that's going to work as well in terms of getting into Camp Slow for the purpose of dumping things. And I also, speaking of the high school graduates, many of our Morro Bay graduates do move on to go to Cuesta College. And I've done some work over the years with the foundation there. And I was able to go to the ribbon cutting and opening of the Slow Campus Center last week. It is absolutely amazing. I mean, talk about such an entry and such a -- it speaks volumes to what hard work of people who have a vision can do with each other. This was Measure L, which went out to the Slow County voters in 2014 and part of infrastructure improvements and technology improvements of our education spaces, this center was built. And it is basically the mission center. It's their financial services. It's -- there's a beautiful little cafe in there that you can get something to drink, everything from coffee to energy drinks, all the things that kids like. And then it opens up into this beautiful little patio for them. So it's just a real central hub. I think the kids are excited. And I know that our Morro Bay High School and kids that end up going there, now they really have something to be proud of when they get there to the campus. And that's it for me. Thank you. Councilmember? Good evening. I -- I will keep this short. I've attended a subcommittee -- two subcommittee meetings with Councilmember Le Fay. The first one was -- actually three -- was with People's Self-Help Housing, where we met with the director there and talked about all different kinds of possibilities for city-owned property, for housing development, affordable -- it could be -- it could be anything from just all affordable housing or it could be a mix of affordable and market rate. There's just so many different ways they can go. And that was exciting to hear about that. We also met with the staff, city staff, for the -- to hear about the updates on the due diligence, which sounded like it was coming along really in a positive way. There was some concern, I know, about potential environmental hazards there. And it sounds like those fears are really minimal, if at all. And, yeah, it sounds like that's going along really well. We also went to our standing meeting with Friends of Morro Elementary. And I had also attended the Morro Creek watershed meeting in Morro Bay here -- I think it was here -- or was it at the community center -- which was interesting as well. Thank you. Yes, I think all four of us attended it. Thank you. Yeah, the Waterfront Master -- you know, it's good that they're doing this, but, you know, anyway, I attended it also, too. So one of the things we forgot to highlight was the grand opening of Coleman Park two weeks ago. I wanted to thank Nate, Stong, and Damaris. I've been down there probably about ten times. We had some issues with the restrooms, but as of yesterday, they were all open. I've talked to the patrons and their kids. Very excited. A lot of activity. There's a couple recommendations that we might want to improve on, but I think that we did a great job, and it's a welcome addition to Coleman Park and to the city of Morro Bay. So thank you very much, Public Works. Two other things that are happening at the end of the month is we're doing a marine swap meet at the Triangle Lot, which is where the Maritime Museum is, and anyone who wants to be a vendor, you can go -- there's a flyer in the back there, and the mission is free, and that's the last Saturday of June. And then also there's some flyers back there on our 4th of July activities. The city of Morro Bay is going to be highlighting Tidelines Park on July 3rd, which is Friday night. We're going to have Molly Ringwald as a band from 6 to 9, and we're going to do a drone show off of Tidelines Park in the Bay at 9 o'clock, July 3rd. So please look out for that and come on down to the Embarcadero and join the activities. And that's about it. Welcome, everyone. Thank you, everyone. And one other note I forgot, just for those of you who use Amtrak, letting you know that Amtrak has added a third trip into San Luis Obispo now. So the trains now run 6 a.m., 12 noon, and 4 p.m. So take advantage of that new time slot at noon. Really nice to have that coming in and out of the county. With that, I will turn it over to the city manager. Thank you very much, Mayor, Council. I do want to note that Molly Ringwald herself will not be singing on July 3rd, but Molly Ringwald Project, which is the band named after the individual, will be performing there. So Molly Ringwald, forgot the project. It's the name of the band. So it's a very popular 80s band that performs around. So they'll be there on July 3rd. So speaking of that, we do have a July 3rd celebration here in Morro Bay. Wanted to make sure everyone is aware of that. Planning on a drone show to be performed over the harbor in the bay and an entire day of activities. As Councilor Le Fay said, there is a flyer in the back detailing all of those activities. And look forward to a great weekend of that. Before that, on June the 24th, right here in this room, we will have our second Morrill Elementary School due diligence meeting, where we listen to community members talking about their ideas and thoughts about the purchase and/or use of that facility. As Councilor Landrum said, that we will be giving update on our due diligence process. We have received many, many reports back from various group, various consultants that are doing work to ensure that that site is indeed what we believe it to be. And the secret's out that the reports do seem very good. We don't see any information right now that would lead us down the path of saying it's a difficult process. But we'll update that more on June the 24th here, 6 to 8 p.m. You'll start seeing the flyers and information out in the community about that meeting as we move forward that. It is the day after the next Council meeting, so it's two weeks from tomorrow night is when we'll have that Morrill Elementary meeting. I do also want to note that we have two vacancies currently on advisory boards. We have a vacancy in our CFAC board, Citizens Finance Advisory Committee. The applications are now being taken at the city, at City Hall. And those will be open through June 19th. And we will see what interest we have in that at that time. And also we have an opening on Public Works Advisory Board. That is open currently and will be open through July the 10th. And then we hope we'll have interviews later in July for those positions with the Council for them to choose those candidates for, to serve on those two bodies and boards. If you are interested, please see the city's website or contact the clerk's office. The information is found on the city's website to that. And as Councilor Dufay mentioned, Coleman Park is open. We did not have our grand open ribbon cutting yet. When we have Council come down and take a tour and see that, we are planning that for when the final updates are done. But it is open. Restrooms are open. And they are working well. We still are waiting on a couple parts in order to put the outdoor showers to have them on full time so that they can be operational. But it looks wonderful. We are very pleased with the work that was done out there. And again, thanks to Public Works staff for taking care of that. So with that, I'll stand for any questions, Councilor, you have or anything I can mention. Mr. Craig, one of the situations that we have, and I'll give you and in public, we need to put COIN operated showers in those showers. We can't have free water. Thank you. We will certainly look into that. You did mention that. Thank you. And we will talk about ways in which we can go about ensuring that water is not used in any extra capacity than what is needed. Thank you very much, Mr. Craig. Appreciate that. And Mr. Craig, are there any subcommittee reports this evening? We do have two. No really reports. The water reclamation facility subcommittee has not met, but we do hope to continue on with the discussion on the purchase of our portion of the portion of that site from Cayucos Sanitary District. As you aware, that discussion is ongoing and we hope to finalize that at the next meeting for council action. Additionally, more elementary school subcommittee met. Councilor Landrum mentioned that as well. And we continue to meet and talk about due diligence and look forward to talking to the community more in a couple weeks. Thank you, Mr. Craig. With that, we'll move into public comment this evening. I have four speaker slips to start with. After that, public comment will be open without speaker slips. First up, Linda Winters, followed by Peggy Rice, followed by Audrey Gendron. Linda Winters: Good evening to the mayor, council members, city staff, and the chiefs. My name is Linda Winters, 32-year resident in the same mobile home park right here in Morro Bay. I had a lot to report about my doings since the last council meeting. I'll start with the last council meeting of May 26th when we had all those wonderful graduates graduating seniors from Morro Bay High School receiving community service awards. Weren't they incredible? I'm not sure how many hours they put in, but I know it was a lot. I also had the opportunity to manage another Monday night dinner here for 70 on May 26th and then again on June 7th. And on election day, yes, I voted, I was honored to attend another awards ceremony for the seniors at the high school, numbering $36,000, $100,000 in scholarships. That was $1,900 a minute, so say it's the principal. As a member of the Morro Bay Lions Club, we were part of those groups that gave deserving grads lots of money. And then the following evening in this very same room, an incredibly important meeting about the Morro Bay Creek watershed and developing programs to reduce potential flooding risks. It was well attended and well organized by Nate Strawn and the group known as the Coastal San Luis Resource Conservation District. I know it's a real mouthful and many of you, the council, also attended. Hey, wait a minute, are you guys following me? I'm looking forward to the future summer meetings and events, concerts, 4th of July, which is now the 3rd of July, etc. And seeing most of you at those events, feel free to follow me. We're all in this wonderful city together. I hope to see you all at the next meeting. Thank you. Thank you, Linda. How's that sound? Good. Good. Okay. Good evening. My name is Peggy Rice and I lived here in Morro Bay. Thank you for allowing me to address the council this evening. I'm here representing a group of Cloisters neighborhood residents who are concerned with the current lack of maintenance of the Cloisters pond and adjacent wetlands. And I think, yes, I have some people out there in the audience there. As I think you know, when the Cloisters Park and open space were deeded to the city in 1996, the wetlands was designated to collect runoff from four culverts, which cross Highway 1. And they carry the water from the east side of Highway 1 to the west side. Then it goes into drainage channels that lead to the Cloisters pond. From there, the pond overflows into an extensive culvert system within the Cloisters development. According to the 1996 deed, when the park and open space was deeded to the city, there were specific requirements for the city to maintain the wetlands. One was to monitor the inflows and outflows for blockages and other irregular conditions on a regular basis. The second one was that if there was sediment accumulation that becomes greater than one foot, the area is to be carefully dredged to remove the accumulated sediments down to the original grade. However, these guidelines haven't been followed. And there is a significant overgrowth in both the pond and the drainage culvert system. As you may know, meteorologists predict a 96% chance of an El Nino developing in the summer of this year with conditions likely to persist through the winter. This could potentially advance to a super El Nino status. This could result in a lot of rainfall and flooding. Some of the cities already experienced that, I think, in 2023. And that might affect our residents because the system of drainage has not been maintained. It might also affect the high school, which is at a lower elevation than the cloisters. And we all know where water flows, right? Flows downhill. So this isn't a new issue. It's been brought to the city's attention a number of times. We believe that now during the dry season is the time for the pond to be either drained or dredged, assessed somehow to assess the blockages and the sediment accumulation in the pond. And the drainage culverts need to be cleared from the extensive overgrowth to prevent flooding during the rainy season. We strongly encourage the city to act now. This is the dry season. You all know that if you have a roof leak, it's better to fix it early, right? And while it's not raining, we have sort of a similar situation here. So please get the required maintenance done in order to prevent potential flooding in our neighborhood and beyond. Thank you. Good evening. I'm Audrey Gendron, a resident of Morro Bay, and I live in the cloisters. Better? I'd like to thank Dana for organizing the photos that I'm going to share tonight. And I also wanted to thank Damaris and Carlos for coming over yesterday to do a little walkthrough with me and look at some of the areas firsthand. So going to the photos, this first one is a photo of the cloisters' development about 1998, 1999, showing the pond and one of our neighbors' first homes in Indigo Circle. Emerald Circle hadn't been developed yet. The second one is an aerial photo taken last week of the cloisters' pond, showing extensive overgrowth of willows and weeds around the perimeter of the pond. It also shows the inflow culvert that's been overgrown with reeds and willows that carries the water from the east side of Highway 1 into the pond. The third photo is that same shot, but looking more directly, and it shows the outflow culvert, which would be on top, that carries the overflow from the pond under the bridge during the rainy season and hopefully out to the ocean. The fourth photo is a picture of the pond from the viewing dock off of the park that has since become quite overgrown with reeds. I used to take my grandchildren here to look at the ducks. Unfortunately, there was a lot more water and a lot more ducks. No ducks anymore. The fifth one is a closer picture of that pond looking directly down from the viewing station next to the park. In the past, you could not see the bottom of the pond. Here you can, and it appears to be filled with the water. The water is filled with silt, sediment, and certainly encroachment of reeds and willows. This is a photo from the bridge near Indigo Circle of the outflow culvert that exits the pond. This culvert was originally lined with a thick metal lining called a gabion. I'm learning a lot of new words doing this. This is a photo of the pond. It's a natural plant that's been a natural plant. It's a natural plant to allow small native plants like willows and cattails to grow through. But over time, this lining has broken down and allowed other plants to dominate. The light green plants that we see are not native to our area, but to South America. And none of these plants were intended to grow through the mesh and block the drainage. This next photo is the same culvert. But in the background, you can see a large willow and the circumference of that, of the trunk of that, I think... So I'm done. Thank you. Thank you. And we do have the slides were sent to us. Thank you. I have one more speaker slip for Dawn Beatty. Dawn? Thank you. Thank you. Thank you. My chair didn't want to cooperate. Greetings. My name is Dawn Beatty and I live in the Cloisters. Many of you have heard me speak year after year about the need to dredge the Cloisters' pond. In fact, my squawking on the subject got this activity on the Public Works Capital Improvement Plan list by number 35 out of 37. Despite what you may have heard over the years, this is not a cosmetic issue. Yes, it would provide a quality environment for wetland animal and plant species, but it also would allow stormwater runoff from East Royal Bay, like you guys have been hearing, the opportunity to be cleansed prior to entering the Pacific Ocean. That's the intent of this stormwater system is to cleanse the water before it goes in the ocean. After hearing from a neighbor who knows more about this issue than I do about the seriousness of overgrowth in our culverts to the overall effectiveness of the stormwater system that runs through our development, I knew I had to speak up yet again. So, these culverts need to be cleaned or cleaned up. Since money is scarce in the city whose responsibility it is to maintain the stormwater system, again, as you heard. Another neighbor who works for RRM, the company who designed the stormwater system back in the 90s, suggested an interim step. Drain the pond to take a look at the sediment on the floor of the pond to see what the next house should be. Now, drain, drain, drain, drain, drain, drain, it's kind of going back and forth within our own community right now. But drain is a less expensive option. But again, maybe we should just bring in an expert to kind of break the tie, if there's a tie, and decide what the right thing to do is. Anyway, food for thought. Thank you for your consideration. Thank you, Dawn. I have no more speaker slips. Public comment is open for items not on the agenda. Betty Winholz. I would just add to the presentation by the Cloristers people that I've owned. That's been in existence for about 30 years, the pond, and I've only known of once that it's been drained. And I do believe that they had to get permits from Fish and Game, Fish and Wildlife now, because it is a designated wetland. So if it's only been once in 30 years, you can see the evidence that it really needs attention. So I would support those people. Hello, good evening. Nicole Dorfman of Morro Bay. Despite our best intentions, it seems like our city often takes two steps forward and one step back. Our parks and public bathrooms for example. Congratulations on the successful completion of phase one of Coleman Park. The playground equipment is great and is being well used and of course the bathroom after a brief snafu is working as it should. Thank you for that. But now mysteriously the playground equipment at City Park has disappeared without any public notice. What is the plan for the empty area now covered in wood chips? This park is one of the first things visitors see when entering our city and right now it is in sorry state. Including the bathroom which is out of order. I understand it was shut down due to repeated vandalism and destruction of public property. I also heard there is a suggestion that the bathroom be removed completely due to that criminal activity. I sure hope this is a false rumor and that the toilets will be available again very soon. Capitulation to criminal behavior cannot be the answer. If the problem is a few bad actors perhaps there could be regular oversight and patrolling of the city park. I also suggest cameras and signs alerting the public that this location is under 24 hour surveillance and the destruction of public property will be prosecuted to the full extent of the law. And speaking of the law. The council recently went through a detailed process to revise regulations for massage establishments. Specifically to address potential prostitution and human trafficking. Yet months later it seems that the new rules are not being implemented or enforced. Especially along Main Street and Morro Bay Boulevard. Please update the public as to the status of the new rules and any enforcement actions taken to bring massage establishments into compliance. And finally we get to traffic. Which thankfully barely exists in Morro Bay except in a couple of locations. The worst being on the Embarcadero from the Rock to Beach Street during busy days. In reading through the Waterfront Master Plan Workshop 3 Roundtable packet I see absolutely nothing that addresses this issue. There is talk of rerouting the Embarcadero. Of removing parking on dead end streets and other beautification ideas. But the congestion that keeps cars locked up for an hour or more is not even a footnote as far as I can tell. A simple solution to this would be for someone to direct traffic at Embarcadero and Beach and perhaps at Beach and Main. Can we consider doing a pilot program over the busy 4th of July weekend please? So much energy and resources have been spent with more to come on alleviating predictable and minor congestion at the 41 Highway 1 Main Street intersection. And yet nothing on the Embarcadero where the real traffic jams exist. Please make it make sense. Thanks for listening. I hope you can answer some of my questions. Onan Champi. I wanted to thank the Council and the Public Works Department for having the open forum for the Morro Bay watershed. It was a good opportunity for my neighbor Linda and some of the other folks down in the creek area to be able to share some of our views and experiences. And I really appreciate the opportunity to do that. Secondly, I want to thank the Public Works Department and Matt Evers for visiting with me regarding the Waterline Project and how it pertains to Errol Street. He came out of his way and visited with me and got me up to date on what's going to happen. And I really appreciate that. So thank you very much. Hi, counsel. Sean Green, Morro Bay. I just wanted to shout a few thank yous. Some of them are long overdue, or it can't hurt to repeat them. First off, Linda Winters does a remarkable amount of work for the city, for the community that she lives in, for people that she knows not at all. And again, Linda keeps several areas of town afloat single-handedly, and I think that is worth repeating. Next up, I want to thank Nate Stong. His addition to the Public Works Department and his ability to articulate some of these capital projects, most recently being the Bayshore Bluffs erosion control effort that he put together. I think it's really added a boost of confidence in our Public Works Department and his capacity as senior engineer. I think it reduces potential costs in a number of areas where we might otherwise outsource some of our studies. And then moving from that to another Public Works item, or mostly Public Works item, thank you to Public Works. Thank you to Council, City Management, really all the departments that had a hand in Coleman Park. We've talked about it a lot, but the success at Coleman Park is a five or six year process, long overdue, some say, most say, all of us say. But we got it done. Along the way, some of the plans got a little ambitious, maybe a little bit ahead of us, which is not inherently problematic. I think we scaled back to a reasonable level. And what you see is a real win for the city. So when you're going through budgets, annual budgets, we also have TBID being renewed here today. I would encourage you to look for a significant capital project that is public facing, that feels like a win, in addition to the normal streets, sidewalks, utilities that might not grab headlines. So again, thank you to all those folks and everyone who had a hand in Coleman Park. I really enjoyed being there. Thank you. Thank you. Thank you. Good evening, Mayor, Council, and staff. I would like to thank everyone who got the Coleman Park restrooms built. For those of you who don't know, it's been five or six years of waiting for these to be built. Our restrooms are overused, and we need to start, I hate to say that, but we need to start now to plan to expand the rock restrooms. Because people, they are overused, our population of tourists is increasing, and we really need to plan for the future. So for all of you who made it happen, we need to plan for the future. So for all of you who made it happen, we need to plan for the future. So for all of you, we need to be able to do that. We need to be able to do that. So for all of you, we need to be able to do that. So for all of you, we need to be able to do that. So for all of you, we need to be able to do that. So for all of you, we need to be able to do that. So for all of you, we need to be able to do that. We need to be able to do that. So for all of you, we need to be able to do that. So for all of you, we need to be able to do that. And there's quite a bit of money in that. And I would say 80% of all these discussions of where's money going to come from, it's covered in the BRICS program. And not to mention a few other grant programs, even related to the school. And there's a part, I think a good use and the person mentioned the public facing project. So I've put together just randomly on my own, a disaster preparedness plan, and it involved converting the elementary school to a resiliency hub, which would then allow grant money to be applied to the school, because there's probably 10 or $15 million of code upgrades, ADA, and HVAC, electrical systems, all would need to be upgraded. So that's an additional cost that the city will incur at some point on top of the $5 million. But there's federal money that is available. And I don't know if anybody's working on it. And I would, I would suggest a motion to get a grant writer on board to start going after these grants before they expire. Thank you. Thank you. - Hi, my name is Somas Nagash and I would like to speak on the appeal for the, - Excuse me. This is public comment for items not on the agenda. - Okay. I wanted to do one on the agenda. Is it too late? - That'll be coming up in a few minutes. - Oh, okay. No problem. - Thank you very much. Anyone else for public comment for items not on the agenda? - Good evening, council and staff. My name is Betsy Gaudet-Cross. Um, I have a couple of things I'd like to talk about. Um, I know somebody wants to, I think it was you, Bill. - I think it was, you want to put a meter on the water. And a lot of people think I'm a bleeding heart. But I am thinking of the people who you're probably wanting to not use the water, which would be the homeless. - And yet I feel strongly that they should have the availability to clean themselves if they need to. And maybe an, uh, an option would to be to provide vouchers or coins or something that they could, you could give them a certain amount every month. And they could therefore use the water. And they could use the water. On another issue, the Morrill Creek, um, bed. I was at the meeting the other day. And I have a couple of things to say. I must be sleeping at my, um, public works advisory board meetings. Um, because I don't remember PWAP ever discussing Coleman Park and the bluffs. And some of these, and the, the creek bed that everybody's been saying, oh, public works is taking care of these things. But I'm on the advisory board and I, I don't, I don't remember discussing it. But then again, um, maybe I was sleeping. I don't know. Um, but yes, a couple of days ago, I took my bike and I was riding around the, um, RV park. And, um, they've done a beautiful job. I took pictures. I did a beautiful job of reinforcing the wall with stones. And then they've, um, put really nice succulents and stuff there. Oh, by the way, if I weren't on the public works advisory board, I probably never would have done this. But since I am, I wanted to be, um, to educate myself. Um, but I did take pictures of how incredibly overgrown this. Overgrown that creek is. Oh my God. It's, it's amazing. You can't hardly see the creek. So going back to the meeting that we had on the, uh, the creek bed the other day, I, I think it's really, um, something that needs to be addressed sooner than later. Thank you. Hello, council, staff, audience. Judy setting. Um, first of all, I, I feel like there needs to be a public record of the council's support for moral elementary being, um, added to the national historic designation or list. And I would like to council members to please put it on the agenda for our next meeting. We are going to be having a meeting with the state and we would, we would like to know the community who's behind preserving moral elementary would like to know how the council feels about that status of historic. designation. And then, um, and then, um, I just want to reaffirm what my cloister's neighbors have put forth. And we do have an urgent need to know that you are going to take the steps to contact the businesses or the entities that will be helping with getting the pond and the, um, channels ready for any possible rainstorms and whatnot. They are very overgrown. Um, so I just want to encourage you to please help us with that. Um, so I just want to encourage you to please help us with that. And, um, there was something else that somebody brought up. Oh, the parking. Um, oh, I'm forgetting. Anyway, thank you. Oh, I know what I wanted to say. Um, thank you so much for all of the work for, um, the upcoming 4th of July celebrations. The fact that you're having something for us on Friday night is exciting. Um, doing a drone show. We're, we're just thrilled about that. And it's fun to see Morro Bay doing celebrations that will attract people from other cities and stuff. Thank you. Hi, my name is Rich Robb. I'm the pickleball coordinator for Morro Bay active adults. And, uh, a while back we, uh, proposed, uh, new courts to the parks and rec commission. And that was set forward to you guys several months ago. And I would just ask that you put it on the agenda so we could, uh, talk about it and find out where it might go. Because people are anxious to get into the fundraising, but I told them that we're not going to do anything until we have approval. And so I would just like you to think about putting it on your next agenda to talk about the four additional pickleball courts down at Delmar Park. Is there anything else? Um, I think that's it for now. Thank you. Thank you. Anyone else for public comment for items not on the agenda? Where are there any raised hands in the queue? There are no raised hands in the queue. Thank you. If there's no further public comment, I will bring it back, close it. And, um, Mr. Craig, um, a couple of these things, um, city park. Any comments to share on the, I w I would say that, you know, for some of these things, it's a little challenging for us right now, not to make an excuse, but where we are, we have an interim public works director and public works director who left and then are in the process. So some of these things, um, are on hold right now, just for lack of, uh, opportunity to move some things forward. But please. Thank you. Thank you. Thank you. Thank you. Thank you. I believe that the playground equipment at city hall, city park was, uh, roped off as unusable. Uh, talked with the public works director at the time and, um, it had been, it had been deemed unsafe. Uh, I'm not sure if it was closed off or it just had been deemed safe, unsafe. Uh, that was a decision by public works, uh, to remove those pieces and, and, uh, clear them out so that would not be an attractive nuisance so that people could get injured on. At the same time, there was, uh, debate and discussion within the staff about, uh, the restrooms at city park and the fact that there was, um, much vandalism there and there were, were, um, the restroom facilities were very rarely used for their intended purpose and were, had been used for various other purposes. So within consultation with the police department and public works, we decided to close them until such time that we could make it, um, make it more usable and, uh, stop the destruction frankly of, of the restrooms there. So our proposal would be to have a discussion moving forward about how to, um, look at city park in a way in which makes it, uh, more attractive for residents to use. There's been a lot of different discussions about having festivals or events, uh, to be held there. Uh, in, uh, we have the, um, the, the art club coming up with a, with a festival there. Uh, we're planning on hopefully again, if we can get the restrooms repaired by then have them open for that, uh, event. Uh, but frankly, it was just, it was more overwhelming than we were getting use out of by the community. Uh, and so we made the decision to close them because, uh, of the destruction. Uh, of the destruction and the unused. So the proposal, the thought would be that we don't, um, sooner rather than later, we come back to council for a discussion item on how we want to approach city park. Whether we want to have more events there and whether we want to have festivals there. What plans basically, um, that, that council would like to do for that. I've met with several of you and discussed the current situation. Uh, I think counselor, uh, Eccles was very clear that, uh, that should be a continuation of our downtown. It's an entryway on one end and it's, it leads to our downtown on the other end. And so it should be, uh, well constructed and well taken care of. At this time, it's simply not able to be done that at the back end, the, the, the western end at the bottom of the hill. Uh, it's a bit, we take care of it as much as we can. The grass is mowed, uh, saw a group out there enjoying it yesterday. Um, and, and having, um, having fun playing in the park there. And so I think at this time, we're really looking for an opportunity to make it more usable and, and, uh, user friendly. I'm not sure exactly, uh, what the plan would be moving forward. I do know that from a staff's perspective, it is becoming more of a nuisance than it is a benefit. Uh, and that is unfortunate and it's not something that we're, um, we're happy about, but it is something that is, it is indeed happening. And so, uh, our plan would be to keep them shut until such time. We're able to make a longer term plan, uh, with council's direction and support and, and address it that way. Any specific questions? No, thank you. I think I just wanted an update and I know that we've had an opportunity to talk with the police chief or that was shared the, uh, that was shared that there was over a hundred plus calls for service there. Um, so we are, uh, our city staff is giving it the attention. Unfortunately, um, there was 188 calls for service there in the last 12 months. So, yeah, so it's excessive. Um, and then, uh, the comment about the grants, I would share that, uh, FEMA grants and grants in general, our staff addresses and works on every day. Uh, someone in our departments in our city is, is working towards goals of grants for funding and FEMA grants. We apply for, we lobby for Memorial in Washington, DC, and they are a lot of work and take a long time because they are very competitive. But we, that is part of our, uh, vast portfolio of outreach and, and looking for funding for projects. Uh, the cloisters, Mr. Craig, any, uh, update or would that be, uh, Miss, uh, would Damaris? Council would like, we can have an update by, uh, Inderim Public Works Director Hanson. And then, uh, I know that she was out on site yesterday and there were some of the residents were happy with the discussion that they had while they were out there. But I'll let her, uh, sort of speak to, uh, where we are in that. Thank you. Thank you. Evening, Mayor, Council. Um, I did meet, uh, yesterday out there with, um, Audrey and Carlos. She kind of showed us some of the areas that they're having some concerns with out there. Um, and then also the pond and the outlet of the pond. The outlet of the pond does have a lot of, um, vegetation growth in it and it needs to be cleaned out. So Carlos is going to start to get to get together a plan for that. Most likely we'll take some permits to do that. So it's going to take a little time and effort to get that done. Um, but it's something we're looking into and some of the other areas that she discussed as well. Um, we're going to focus some tension out there and try and get some of that done for them. Thank you. Appreciate that. We'll get some updates on that. And I know that, uh, as we're moving into this concern with the El Nino, our public safety departments are doing with all of them, the Office of Emergency Services, OES. Um, we'll all be working on preventative measures and I'm sure the fire chief along with the other staff in the city. I already know, uh, every year they, they start addressing this. This year will probably be a little sooner because of the, um, pending El Nino's coming. And, uh, Chief Watkins, any comments on the, uh, massage ordinance and, uh, enforcements on those main street and Moral Bay Boulevard? Uh, thank you. Thank you. Good evening. Thank you for the question and the opportunity to provide an update. Uh, so the massage ordinance, uh, I've been personally working on, uh, as far as getting the permits out to all of our, uh, currently 14 massage establishments. That consists of making contact with the business owners, going through the application process and also doing inspections of each of the business, uh, locations. So during that inspections, one of the things that I've made note of are things that need to be addressed, things that need to be corrected. Uh, much of that is window covering signage, things that our community development department has more experience with. So what I've done is I have identified, uh, during this process, those establishments that need to be recontacted and addressed with some of the code violations that are mentioned in that ordinance. The ordinance actually gave 90 days for these establishments to come into compliance or complete the application process with me. And I'm happy to say that we are on track for that. I have two businesses that, uh, um, are still at this point come June 12th. We'll have a different conversation with and, uh, see if they can within the next few days reach that compliance, but the communication has been stalled. So other than that, all of our local businesses have, uh, done well through this process. And after June 12th is when we will begin, uh, our compliance checks with the enforcement period of the process. So, but we had to give the businesses at least 90 days to come into, um, compliance. So I will be referring much of my notes and needs as far as the code sections that community development can assist me on. Cause they're a better partner for that. Thank you. Thanks for that update. I appreciate that. Mr. Craig, anything else from a public comment? Not anything that I noticed, anything that council remembers they'd like an update on? Thank you. Sorry. Yes, sir. Thank you for that. Uh, appreciate the, um, pickleball, uh, aficionados. Uh, continue to be patient. Uh, I will, um, I will agree that we can get out there and meet with them and talk about that, uh, possibly being, uh, brought before the council for decision and discussion, um, on what areas of the park we currently own. Um, then we may want to offer that up, uh, as a solution. Uh, as a solution. And so, um, I'll commit to speaking with, uh, Bob, uh, this week and scheduling something to go out there and talk about it. Thank you, Mr. Craig. And also there was a comment about the, um, showers. I think council member Lafay brought up too, um, down at the cloisters. Those, those outdoor showers are for beach hose off. They're not for bathing per se. We have the 805 street showers that are available. Um, and there are also showers down in, uh, off of the, uh, Embarcadero in the, um, public bathrooms. So those, that shower was intended to be a beach beach shower hose off. And I, and I see the concern with it being endless where it wouldn't have a turnoff. So, um, thank you for that. With that, we will move to the consent agenda. I have no speaker slips. Public comment is open on the consent agenda. Betty Winholz. I made a couple of, uh, comments with regard to our, um, elections. Um, and, uh, not the elections. Um, help me again. Yes. And just would be looking forward to, um, answers to some of my questions. Thank you. Thank you. Anyone else for public comment for the consent agenda? Are there any raised hands in the queue? There are no raised hands in the queue. Going, going. I'll close consent agenda, public comment. Bring it back to council. I'm going to pull two items 6 C and 6 E just for housekeeping. Anyone else? Um, I will pull. Um, I will pull. Um, I will pull 6 F. Okay. I think that's it. Thank you. So we have 6 A, B. Did you do, did you do D? No. For the elections? No. Okay. Well, actually I would like to pull that. Okay. Motion to approve 6 A and B. I'll second that. I have a motion and a second. All in favor. Aye. Opposed? Motion carries. Thank you. 6 C. I just pulled that, um, for just a housekeeping. Um, and Ms. Winholz did bring it up in that. Can we have an addition or correction on, um, who's required to, um, do that training for the conflict of interest code resolution, the new part with the finance, uh, finance training or fiscal training. Uh, you listed some specific department heads and things, but it didn't, and one specific manager, but then not another. So I just want to make sure that the burbage for that is a little different. We have a, uh, recreation manager. So you listed one manager, but not that one. So I just want to know that it's inclusive. Thank you for the question. Um, with regard to the ethics training and the fiscal training, um, the resolution before you re establishes the requirements that are set by state law. Um, so, um, with the ethics side, um, our finance manager is responsible for investment and therefore subject to that ethics training. That's the only management level position that's required to be included. On the fiscal and financial training, we included both finance managers, the, um, accounting manager and the fiscal analyst, um, because of their fiscal oversight duties. The other 17 managers certainly have high level of responsibility, but that would be discretionary to include any or all of those as a training requirement. Uh, I'll, I'll just add that as, as, uh, the clerk said, um, this law came down from the state and it required training in certain areas and all of the required positions we've included in this item for council approval. Uh, the item, the, the, the positions that we did not include include in level of, um, of categories that are optional at the state level. Uh, recreation manager was one of them that was brought up. That is a, as a level of employee that there are 17 others that are, are part of that. Uh, and, and, uh, for that training, we deemed that it, it should, it's, it can be optional. We can include the, that as a recommendation with any of the staff they want, but for council to require that it would have required 17 additional, uh, staff positions to be included in that level of training, which, uh, didn't really seem to apply to the majority of them. So for the fiscal part, correct. So they all have, they all do contracts. Correct. The, the, the, and I'll just use, just use the recreation manager. The recreation manager has the authority to do contracts. I don't believe that he does. No. Okay. Okay. And that was my mistake. He reports directly to city manager. And so I would, uh, affirm those categories, those contracts and do approve those contracts, uh, as the department head over that. Okay. Thank you. Any other questions on that? I move approval of item six C. I've gotten that. A motion and a second. All in favor. Aye. 60 council member. Um, I just wanted to get a little clarification on just a quick, um, on the financial, um, aspect to the city of that. Mayor, you may have the more information than I do regarding the, the, the share of the election on slow cog. Um, there, there, there is, there is no allocated share at this time to any of the municipalities. The financial responsibility of the ballot initiative is that of slow cog. Um, there could be a consideration, uh, them reaching out to see if the cities were going to participate in that. There's still a lot of questions surrounding what that amount is. And I think until they see what other ballot initiatives go on the ballot as that'll change the price, but it does not affect us. I do have that clarification. Um, thank you. That's all I wanted to know. And I move that we approve measure, um, consent item 60. I'll second that. I have a motion and a second. All in favor. Aye. Opposed motion carries. Thank you. Uh, the next item was, um, uh, item six E. I meant F. Sorry. We already did D and we're on E. I didn't mean, oh, you pulled it. Oh, okay. Good. Again, I just wanted to bring this up as a reminder, um, before we approve this contract with visit Morrill Bay in the city. Um, I saw that the director was here. Um, thank you for that, that when we did this, uh, it was brought to our attention just as a reminder that we had asked, uh, visit Morrill Bay to move forward over the next year to begin bringing the RV parks into, um, the T bid. And I just want to reiterate that publicly that that was a direction that this council gave. Um, I know we have a new director now, so I'm not sure how much was, um, shared in that regard. So that was the only reason I pulled that. And if there's no other comments, I will move approval of item six E. And I'll second that. I'm a motion and a second. All in favor. Aye. Opposed. 6F, Councilmember Landrum. Yeah, 6F I just thought maybe warranted a little bit of a look since you and I, Mayor, are on that subcommittee for the Wharf subcommittee and we never saw that quarterly report. And I know it was brought before PWAB, but there's no reporting on really what the outcome of the PWAB review was, and I just thought maybe we could get that information. Thank you, Mayor, Council. Councilmember, is your interest in discussing that specific report or the mechanism by which Council received reports in general? Well, we didn't receive the report, so I don't really know. I mean, I don't think that unless you went to the PWAB meeting, you wouldn't know what they said. So, you know, if they were what questions they had or anything like that. So, I just... You have the reports here. I mean, this is us presenting the report to you. Right, but there's not very much information on the PWAB. It just says it went before PWAB. It didn't say what the outcome of that was. I think that's fair. I think that's accurate. From my perspective as a new manager here, I think we should have the discussion about how Council wants to receive that information from all of the advisory boards, whether you feel as though when staff completes a quarterly report or an annual report for any of the committee reports and presents it to them, when they receive feedback, is staff to take that feedback and present it back to Council, or is it more the Council has a role in discussing that with the PWAB or the advisory board members, CFAC members, whatever that may be. I'm unclear on what that process is for Council to get that feedback from those advisory boards. So, I think our plan on staff is to help sort of re-look at the advisory board process and how we go about running and operating those boards, and so clearing up some questions from Council to offer your policy directive and understanding about how we operate that. But I think you're exactly right. Right now, there's no mechanism by which any board offers comments back to staff and how that is to be brought forth back to Council, whether staff is to digest that information, interpret it as we will, and then re-bring it back to Council, or whether there's some mechanism for those boards to present to Council the information that they have once that's presented, if that makes sense how we want to go about doing that. And I believe we do have that coming. Yeah. Yeah, that makes sense. And just since we didn't, the subcommittee didn't see it, we weren't able to share that either. So, and I hope that in the future, we will be able to have that ability to get a report as well. Certainly. I think that's fair, and I think we should really, from a staff level, ensure that when those reports are prepared and given out to the advisory board committee and commissions, that the subcommittee at a minimum gets those, but also that staff, that Council as a whole, either gets them prior to them going to the boards. The plan in general is they go to the boards, and then they come to the Council after that, but we're missing that sort of discussion in between, and I think that's what we hope to clear up sometime this summer. And we'll make sure that as staff reports are completed and presented to the boards, they get to Council before they come to the Council in the meeting, or when they go out to the boards, we'll send them along to Council as well. If that's the interest. I just know what we have been doing in the past, besides this meeting, and we had had a subcommittee meeting for the quarterly reports and prior to the agenda item. Okay. As well as PWAB, and we were there for, because we were able to report that to the public. Got it. So let's discuss how we want to go about doing it, how we've done it in the past, so I'm better familiar, and we can make sure we accomplish that goal. Okay. Thank you. So then I, well, I don't, is there anything else on that? Then I move that we approve item 6F. I'll second. I have a motion and a second. All in favor? Aye. Opposed? Motion carries. Thank you. We have a public hearing item coming up. This will be an appeal for planning commission approval from April 7th for CDP, coastal development permit for conditional use and modification requests for demolition of an existing single story for 460 Bonita Street fire station. And we're going to take a five minute break before we start on that. Thank you. Okay. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. themselves like to use that curbside parking spot themselves when they come to pick up stuff. So you can see that it's vacant and available. And removing that would actually be a benefit because we would then be able to park the three cars in front of the building, the single-story building, and we would enable them to have their fire department. And the benefits are that we could build this fire department sooner because it would be lower cost. $1.5 million versus $2.5 million could get the funding sooner. And that would give the north side their fire station that they've been wanting so badly. And I think that's really important to the people of Morro Bay north side. I really strongly feel that. And on top of everything, I want to talk about when I went to Planning Commission, two out of the five planning commissioners actually questioned the cost of this project. They were quite concerned. And they brought it up as in, you know, where is the money coming from? And I'll tell you something, the Harbor Street fire station itself was built up to scale because it was supposed to take care of the whole entire city of Morro Bay. But since we had that flooding that in the roundabout area, that one flooding that since then, Caltrans has come and I have seen them working out there, clearing things up and getting into the gutters and fixing that problem. And since then, we have had floods and we have had rain and it has not flooded. And yeah, that's basically everything I want to tell you. And also all the benefits as far as faster turnout rates, earthquake resiliency. These are all in my report. And also my report also has an expert fire chief that came to the site and looked at it himself and gave his expertise. And I also have his resume in there so you could see how expert he is because I am not an expert, obviously, but I did hire an expert to take a look at everything. And he did put in his report. Thank you so much. Thank you very much. Public comment is open on this item. Betty Winholz. For me, the awkwardness of this appeal is that it's coming back to you, who are the ones that said we need the two-story. It seems to me like you have a conflict of interest in even trying to make this decision. Hopefully, you've somehow figured that out ethically in your head how you're doing this. I saw her experts report. It looked very nice, made some good points. The point that she made that when the Harbor Fire Department was built, it was overbuilt because that was going to be the only station that we needed, which is why we sold the property out at Cloisters. Now, we've come back with this other one. I know it was a three to two vote in the beginning when you decide whether to go with the two or the one story. I think she makes some good points about the finances. Of course, Planning Commission did not talk about finances because that's not their realm, but it is your realm. Whether you're willing to re-examine that or not tonight, I think is on you. In terms of saying that a greater cost now will save costs in the future, in light of looking at the city's population and how we've been pretty steady for the last 40 years, and that North Morro Bay is pretty well built out except for the little panorama place. And I don't know that that's really going to see the need to be larger, is what I'm trying to say. That it should be a two-person station. But, because I don't see us coming up with the money for four people in North Morro Bay and four people in South Morro Bay. But, that's my comments and good luck. Hello again, Judy Setty. Gosh, I just want to say that Morro Bay is a community that was built on the love of this whole area. Our rock, our water, our small town, and that love spreads out to our neighbors and we give consideration to how we treat our neighbors. And my problem with this proposal is, you know, we want our firemen to have a nice abode and it should be fixed up. It should be nice. But we also want to make sure that we don't negatively impact our neighborhoods. This is a massive building that they're proposing. And it's expensive and we have an alternate that will meet the needs of what we have right now. And I believe that you can remodel the existing building and make it such that a second story can be added when the time comes that we really, really need it. And right now we need to think about that neighborhood. This is going to change the dynamics of the neighborhood. And it's, we love our people, we love our neighborhoods. Let's think about them. Thank you. Thank you, Mr. Chair. Hello. Um, I just want to comment that, uh, there should be a master plan because again, this fire department upgrade should be part of the disaster preparedness. And I will say, I don't, I wouldn't worry so much about keeping Morro Bay just like it is because we are so behind in terms of utilizing technology. And I'm going to say AI to enhance every emergency operation in this town, in this entire coastline. There are things that should be connected and it's already built. It's not like we got to create it. It's in existence. There are a fire department in San Bernardino. There's police department over here. They're kind of piecemealing it. But we should be looking at an end to end solution for the future. And I'm sorry for the people that are afraid of technology, but it's going to change and it's already changed. And the little cell phones you have carrying around in your hands is probably the most dangerous technology that we're walking around with. We can use technology for good. The robots are coming. We don't need to resist it. Figure out how to use it, how to integrate it, how to use it on a firefighting team, how to use drones, how to use autonomous driving vehicles. It's all there. And yeah, I get we want to keep Morro Bay quaint, but let's keep it safe and quaint. We don't have to lose the quaintness to upgrade. Thanks. Betsy Godet Cross North Morro Bay. As a person who lost her house when she was 12 years old in a forest fire in Santa Rosa, I know what losing a house is like. And obviously being in North Morro Bay, I don't ever want to lose my house. That said, I also appreciate what Judy had to say as far as being respectful and thinking of your neighbor, the neighbors who live next to this fire station that is proposed. I can get from my house to downtown or probably to the fire station, especially if I had a siren and I could go through red lights in five minutes. I don't know if all the money that's going to be spent on this firehouse and the structure and the the blocking the views of the neighbors and all that is really worth it. Anyway, thank you. Oh, by the way, I want to say I really appreciate the fact that we can come up and express our views to you guys. It's just it. I just really appreciate that. Thank you. Thank you, Betsy. Anyone else for public comment on this item? Michelle Esther Cattery North Morro Bay. I mean, the structure is far too big. We have a fire department that's useful, that can be used. I've watched two houses, one go up on Orchid and one go up on Trinidad Street. And you cannot tell me that you would get there any quicker because those houses were pretty much gone. So having a second fire department and now that you won't have additional people out in Los Osos, why do we need to spend such a mass amount of money on a city that is not growing? It has remained the same for 30 years. If we were putting in a whole new subdivision, I could I could justify that. But I think less is more. Thank you. Thank you. Anyone else for public comment on this item? Ray, are there any raised hands in the queue? Yes, there is one raised hand. Courtney Shepherd. Go ahead or Sheppler. Sorry. Hello, Courtney Sheppler. I live less than a block away from the proposed updated fire station, and I just wanted to I can see the fire station from my deck. And what strikes me is that the plan proposed a has been very responsive to neighbor feedback, adjusting the setbacks adjusting to maintain as much view as possible. And in fact, the footprint of this upgraded fire station is less intrusive to the neighbors than what zoning would allow for a single family home. For example, if the city said, you know, we're not going to do this, we're not going to have this additional fire station, we're going to sell off that lot and rezone it as single family home. They could build something much larger and much more obstructive of neighbors views than what the fire department has proposed in this. So I think we've got to be real about what what's been presented and how accommodative the fire department has been in this. Personally, I see their updated design as being an improvement over what is there now, which is, you know, dated and a bit commercial looking and they've really made efforts to make this a design that will fit in well with a residential community. To the extent that this improves our ISO ratings and potentially improves our insurance insurability and insurance rates. Obviously, that's welcome for any of us in North Morro Bay. So it feels like we're kind of going all the way back to last year of, you know, what should this design be? And it's a lot of resources that have already been expended to get to this point. And I just don't know that the current appeal and objections are are worthy given where we've come from already. Thank you. Thank you, Courtney. Ray, are there any more raised hands? There are no more raised hands in the queue. Thank you. With that, I will bring it back to Council and close this public hearing. Chief, would you like to take a few minutes to discuss? There was a comment about emergency services, but a lot of this was brought because of the standards of coverage. So if you could just remind everybody of what that. Thank you. Yes. So there's been a couple different reports over the years. Back in 2004, there was a standards of cover report that recommended a two station option or two station model for Morro Bay. In 2007, the city moved forward and remodeled the apparatus bay at Bonita Street. But the economic downturn in 2008, they never continued the project and the living quarters was never rebuilt. It's been a long standing need and known that the residents of North Morro Bay are underserved because of the distance that it takes to get from Station One on Harbor Street to the residents in North Morro Bay. Depending on the year, it averages about 40% of our responses are in North Morro Bay and they are exceeding the standard five minute response time. So with that, we are looking at, you know, building a living quarters and moving staffing over there to improve that level of service. So with this design, we did work with the architect. We're building a 2,400 square foot two story house, the same as any other house in that neighborhood. They designed it to look similar in scope and appearance to the house, even the house of the appellant. So that was intentional to try to make it fit in with the aesthetics of the neighborhood and not stick out like a sore thumb other than the large garage because of the size of the fire engines, which is not part of this project because that's existing. After we brought this back to City Council in June to get the approval, we worked. We heard the neighbors concerns regarding privacy concerns and blocking of the view shed. We were able to remove one of the bedroom windows from the east side of the street. We were able to remove the floor plan. We were able to remove the floor plan. We were able to remove the floor plan. We were able to remove the floor plan. We were able to remove the floor plan. We were able to remove the floor plan. We were able to remove the floor plan. We were able to remove the floor plan. We were able to remove the floor plan. We were able to remove the floor plan. We were able to remove the floor plan. We were able to remove the floor plan. 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So starting with the GAN appropriations limit. This is an annual review required by state law. The intent of it is to limit the appropriation of tax proceeds to limit the growth of tax funded programs. This figure is based on a 1979 base year limit. It has been adjusted for inflation since then. After completing these calculations, the city is still nearly 50% below this limit and consistent with state law. The legal limit for taxes we can collect and spend in Morro Bay is $39.5 million and our projected tax revenues for the upcoming fiscal year are $18.8 million. Next, to readopt the city's investment policy. Again, this is an annual review required by state law. And this is to bring our policy into compliance or ensure we are still in compliance with state law. We did make a few minor changes to the language. And now the policy would be consistent with state law and industry best practices. This policy will outline safety, liquidity, and yield as key objectives for investment. It identifies the positions that are permitted to invest funds. It identifies the internal controls and the standards of care and outlines allowable investment types as governed by state law. The changes we made to align with the 2026 guidelines include -- thank you. We're going back -- include actions that we would take if the portfolio did become non-compliant with the investment policy. That change is made in the portfolio adjustment section. As recommended by state guidelines, we added the specific city funds to which the policy applies. That's in the scope of policy section. And lastly, we deleted outdated language related to the submission of the investment reports to the CDIAC or the California Debt and Investment Advisory Commission. That's in the reporting methods section. Otherwise, no material changes were made. So that takes care of that business. And then we can jump into the revised proposed 2627 budget. So we'll be comparing what we brought to you in the budget workshop, those numbers, compared to what the numbers now look like after implementing the changes discussed and some other issues that staff identified. So the draft proposed revenue budget was $63 million, $53.4 was for operations, $9.6 was for capital projects. After implementing the changes discussed, the revised proposed revenue budget is $58.4 million, $53.5 for operations, and $4.9 million for capital projects. That's a net decrease of $4.6 million from the draft proposed version. The revenue budget changed in four funds, the general fund, the sewer operating fund, the governmental capital improvement fund, and the harbor capital improvement fund. And we'll get into that in more detail as we go. On the expenditure side, the draft proposed expenditures budget was $58.7 million, $49.1 for operations, and $9.6 for capital projects. In the revised proposed version, the expenditure budget is $52.4 million, and that is $47.5 for operations, and $4.9 for capital. That's a net decrease of $6.3 million from the draft proposed version. The expenditure budget's changed in six funds, general fund, Q&E, governmental capital improvement fund, harbor capital improvement fund, the economic development fund, and the affordable housing in lieu fund. And we'll look at these changes in more detail now, beginning with the changes in the general fund. So here I wanted to detail for you the different revenue categories in the general fund and highlight the changes. This change was the recommendation to increase sales and use tax and transient occupancy tax up to a 2% increase over the fiscal year '25-'26 adopted budget. So that increased sales and use tax by $20,912 and transient occupancy tax by $81,800 for a total revenue increase in the general fund of $102,712. And that results in a revised revenue budget of $21.6 million. On the expenditure side, looking at it by category, we have personnel services decreasing by $147,000 and debt service decreasing by $664,000. For a total reduction in the general fund of $811,495. So to get into that detail, this is the assistant city manager position being removed in the general fund. That was a $93,000 net change. We'll see later in the economic development fund, the reduction on that fund as well. We also had the reduction of the homeless outreach case manager part-time temporary position. That decreased the general fund by $54,000. That was in the police department. And also the police department had an increase of $26,000 to increase the three-quarter time permanent support services technician position to full-time or 1.0 FTE. And lastly, we made an adjustment to the vacancy factor, which was initially budgeted at the same flat $500,000 amount as last year, but adjusted it to 3%, which is the same factor as last year, but results in a higher dollar amount savings. So you see there that the expenditure budget adjusted is $21.6 million. And these changes result in a balanced budget where total budget expenditures equal total budgeted revenues at $21.6 million. Any questions here before we proceed? Thank you. All right. So next we have the changes in the measure Q&E fund. We had one change recommended per direction at the budget workshop. The $1 million contribution to the annual payment management program was reduced by $600,000 to a $400,000 contribution. That makes the total investment in infrastructure and equipment out of measure Q&E just over $1 million for the fiscal year 26-27. So that reduced the expenditure budget from $5.2 million to $4.6 million. And we see here compared to revenues of $4.5 million and expenditures of $4.6 million that results in a much smaller shortfall of $107,000 down from $707,000. And with an estimated ending fund balance or beginning fund balance for the fiscal year of $2 million, that shortfall could easily be covered by that available fund balance if that is the council's desire. Next we will take a look at the change in affordable housing in lieu fund. One change here on the one budgeted item. Per comments received at the budget workshop, the budget for the state mandated housing element update has been decreased to $100,000, which is the amount staff estimated could be spent in year one of the two year update. And just to be really clear on this, the remaining cost of $135,000 will need to be budgeted in the following fiscal year 27-28. So that results in a $100,000 expenditure budget. Moving on to the economic development fund. One change in this fund where we had 33% of the assistant to the city manager position budgeted. After removing that, the savings of $55,000 in this budget, that leaves an expenditure budget of $82,500. Speeding right along to the sewer operating fund. We had a change in this fund. I think I mentioned this at the budget workshop. We inadvertently kept in $20,000 of rental income from the rental of the concrete plant. Since there's no tenant, there will be no revenue. So we pulled that out, meet a corrective change there. So after pulling that out, there's a very small change down to $10.827 million for the fiscal year. And the final changes were related to the capital improvement problem. Uh-oh. Capital improvement program budget is what I said. So we had a few changes here. The first two projects were adjusted at city council direction. The Morrill Elementary School site acquisition was taken out of the draft budget at this time to be revisited once the purchase is finalized. I also want to note here that its revenues and expenditures will mirror each other. So the revenues and expenditures are decreasing at these rates. Next, the annual pavement management program was reduced. The contribution from Q&E was reduced by $600,000. So the total new funding for the pavement management program is 2627. We'll total about $696,000. The remaining project balance, I took a look today and it's about $3.5 million today. That'll, we'll see where we end after all of the costs are paid through the end of the fiscal year. But any unspent balance will be carried forward and added to the $700,000 for 2627 programming. Now there's one more change here that was recommended by staff and it relates to the North T Pier Renovations Project. So in conversations with the Harbor Director following the May budget workshop, it was realized that the Harbor Capital Budget was never amended to recognize that $1.5 million grant that the city has been awarded through the Department of Housing and Urban Development. That was awarded back in August of 2024. So this is just housekeeping to recognize that grant on our books and both revenue and expenditures. And the Harbor Department anticipates spending approximately $300,000, which is where that initial budget amount came from. Questions? I apologize. Can I have, so was this the $1.2 million that we got from Carbohal? Okay. I don't believe so, sir. It was a grant award that was before Chris Munson came on board. This is awarded back in August of 2024. It's a total of $1.5 million through Housing and Urban Development. So the $1.2 million is only there to get us to $1.5 million because we started with $300 million. So -- Let's check on that. I believe it was that same -- it's the same money you're thinking of. Yeah. Okay. But the total award is $1.5 million. Can I get a little clarity on that, too? Sure. So before, with the last meeting, that money wasn't shown. Where was it in that -- like, where would we find it on -- in that last meeting? Like, it wasn't -- It's coming -- Right. It's coming to you now because we realized it was never recognized back in 2024 when it was awarded. So we don't have the money -- So it wasn't ever in any budget. Okay. Got it. Thank you. Right. So we're doing some housekeeping, cleaning up our books, and making sure we get that recorded now. So these changes altogether result in a net decrease of $4.7 million, reducing the city's capital improvement program budget from $9.6 million to $4.9 million. And with that, the presentation is concluded. And we'll just look at the recommendations on this item, and then staff can take questions and comments. So staff recommends the city council adopt resolution number 3226, adopting the fiscal year 2026-27 operating and capital budget. Adopt resolution number 33-26, re-adopting the city's investment policy. And adopt resolution number 3426, setting the fiscal year 2026-27 GAN appropriations limit. So staff's available for comments or questions, after which the chair of the CFAC committee, Steve Peck, will present comments on the Q&E budget. Thank you. Thank you, Ms. Conrad. Any questions at this point? I have a question, but you don't have to answer it if you don't want to. But only because I just don't quite understand. What is this GAN? What is GAN? I mean, I don't want a half an hour dissertation, but I didn't quite understand the whole thing. I should probably ask you. I'll ask you offline. Thank you. Bye. No, settle in, please. I'm prepared with it. No, just kidding. So what is the GAN? I just -- The last name of the individual who presented the legislation. So his name was Paul GAN, and it was back in 1979, or at least that's when it went into effect. And it limits the amount of money a city can spend on taxable -- tax funded programs. Based on a percentage of population? Percentage of population growth or change, because sometimes it constricts rather than grows. And the cost of living for a particular population. There's more information in the staff report. Can I get a little clarity on that, too? So would there be a difference -- you showed that it really didn't matter that, you know -- would there be a difference if we were using the city's percentages of population versus the county's? Yes, it would be a very nominal change. The city's -- No. It still wouldn't -- It still wouldn't affect it. Yeah, that's what I thought. The city -- both populations declined in the last January to January measurement. So the city's population declined to a greater extent than the county. So the county's decrease was smaller, making it the larger number, and we can choose -- Right. It still would have been -- wouldn't have affected it. No. Thank you. We're still well below. And you'll see down the bottom of the chart there, just bring this up, that over time this limit has grown as it's been -- 47 years. So the legal limit for taxes we can collect and spend under this state law is 39.5 million. We're only bringing in 18.8 million. So we're nowhere near this. This is pretty much perfunctory that we need to do because of the state law. So I hope that clears it up, that it's not really -- it's not really anything that really affects us on an operating basis. Councilmember Le Fay, any other questions? No, I'm fine. Thank you. Councilmember Le Fay: Yes. Councilmember Le Fay: Yes. Councilmember Le Fay: Yes. Councilmember Le Fay: Yes. Councilmember Le Fay: Yes. Councilmember Le Fay: Yes. Councilmember Le Fay: Let's see. First of all, I guess -- let's see. I'll ask -- what's involved with the money that's being used for the housing in Luffy? Councilmember Le Fay: Like what -- it's for -- Councilmember Le Fay: Oh, the state mandated housing element update? Councilmember Le Fay: Yes. Councilmember Le Fay: I'm just going to -- Councilmember Le Fay: Yeah. Councilmember Le Fay: -- give the director time to get to the microphone. Councilmember Le Fay: So good evening, Mayor and Council. Councilmember Le Fay: So the city is required to update our housing element. Councilmember Le Fay: It's one of the seven mandated elements of our general plan. Councilmember Le Fay: It's the only element of the general plan that's required by state law to be updated every eight years. Councilmember Le Fay: We have until December 31st, 2028 to complete what's called the seventh cycle housing element update. Councilmember Le Fay: It's going to be the city's roadmap for showing how we can accomplish our next regional housing needs allocation that Mayor Wixom spoke to during Councilmember updates at the beginning of tonight's meeting. Councilmember Le Fay: I can answer any more specific questions you have, but -- Councilmember Le Fay: I guess what I'm -- when I hear the word update, I think that eight years ago we already did this. Councilmember Le Fay: So we're updating it and like if it was at my house, I would just update something and it wouldn't cost very much money. Councilmember Le Fay: And so I'm just wondering the -- what is involved in that cost? Councilmember Le Fay: So good question. Councilmember Le Fay: So again, you know, we currently have a housing housing element that goes through the end of 2028, which shows how we're going to meet what's -- the sixth cycle arena of 391 units within -- Councilmember Le Fay: We're going to get another number from the state for the next housing element cycle and arena cycle. Councilmember Le Fay: So we're going to have to go through a process to identify and potentially identify sites that may have to be rezoned in order for the city to meet our next arena cycle requirements. Councilmember Le Fay: Also, there are some pretty labor-intensive aspects to that. Councilmember Le Fay: So we're going to have to go through a process to that. Councilmember Le Fay: So we're going to have to go through a process to that. Councilmember Le Fay: So we're going to have to go through a process to that. Councilmember Le Fay: So we're going to have to go through a process to that. Councilmember Le Fay: So we're going to have to go through a process to that. Councilmember Le Fay: So we're going to have to go through a process to that. Councilmember Le Fay: So we're going to have to go through a process to that. Councilmember Le Fay: So we're going to have to go through a process to that. Councilmember Le Fay: So we're going to have to go through a process to that. Councilmember Le Fay: So we're going to have to go through a process to that. furthering fair housing is a legal requirement that we have to comply with which requires a survey. So it's a pretty extensive process this time around. Okay. Thank you. Thank you, Director Shingwell. And I wanted to know if in this budget, I'm just kind of a little bit confused by it. Are we adding staff? We are not adding any bodies. We're increasing an existing position from three-quarter time to 100% time. Okay. And did we talk about that at the last meeting? We did. We did. Okay. Yeah. We talked about it in the presentation, but it was, it came after the staff report was released. The request came in or the discussion came up after the staff report. So you won't find it in the staff report and you won't find it in the proposed budget because it occurred afterwards. So we did get to include it in the presentation. Okay. And that was something to do with the high school? No. Oh, okay. No, it's, it's a need that the police department feels is essential for providing services to increase that position to full-time. And it is more than offset by the elimination of the part-time homeless outreach case manager, part-time temporary position. And is it a position for homeless outreach or is it has nothing to do with that? No. Okay. So we're eliminating the homeless outreach and we're adding what, and what does it do again? Support services technician is the title. What is that? I might need to call on chief Watkins for specific duties. Chief Watkins, when you address that going from three quarter time to full-time on that position as council member Landrum's request, do you want to just very briefly discuss the 54,411 change in the district attorney's office? Yes. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. So the support services technician is essentially our records technician. So they have a number of tasks throughout the day. One most important task is they assemble reports in cases that go to the district attorney's office. And this particular position also because we brought our cost recovery back in house, which saved the city money and is actually increasing our revenue on cost recovery. This particular position is solely responsible for that. And we have increased our cost recovery by 50% over this year. And we expect for that to increase because we've now we have direct oversight over the cost recovery. This position also handles life scans, which is a revenue generator for the department. This the budget savings does help the department offset the expense to increase this position from a point seven five to a full time. It helps to improve the efficiency and gain additional revenue, as I just mentioned. It also we just had a change in demand from our district attorney's office. So if we are to make arrests on a Friday evening after 5 p.m., we used to have until Wednesday morning to submit that report for arraignment. That has now been reduced by a full 24 hours and the current point seven five position does not work on Mondays. So this will add in this obviously come Monday. We have arrests that need to be processed and currently the one records technician is solely responsible for getting all of the in custody is over the weekend to now push that to to Tuesdays. So this is absolutely essential for us to meet the demand that we did not expect. It just came about in early May. Okay. And then could you please address the the loss of the homeless outreach position? Because when I was involved in HSOC, I, you know, we spoke and that seemed to me like at that time that was a critical position for you. And so I'm just curious. I haven't been as involved in that, but I'm curious why now we don't seem to need that. Yeah, I appreciate that question and the opportunity to explain. So over the past four years, this department and this city, this community has increased our services and outreach by 100 percent in this community as it relates to our unhoused population. We certainly remain committed to outreach and providing avenues for service to continue that strong partnership and being a liaison between our unhoused community and services that are provided in Sloe County. So the police department is concluding to reassess our homeless outreach case manager, and there was a few things that contributed to this decision. So this position was created in June of 2022. So that's four years ago. And over the last four years, a lot has changed in our community, a lot at the direction of council and at the efforts of the police department. Since June of 2022, outreach and service offerings have increased in this community, providing networking and resources during a time when homeless and mental health programs were unstable in June of 2022, up and through probably the last, you know, through the end of 2024. The police department, the initial thought behind bringing on the homeless outreach case manager was to, that was a small part of completing a cat team, if you will, a community action team to really reach out to deal with some of the instability within our field outreach and also the services that we could provide as a community and as a county. I have applied for three federal grants since June of 2024 and have been denied on those three grants to be able to complete that cat team. So the intent of the position was to have homeless outreach case manager work, working with a uniformed officer. And that's just not been possible because of our limited staffing and our staffing needs. So there's been not as much oversight as I would have wanted. But we've, the resource was very important, certainly to me, as we were developing an approach within the community to assist our unhoused. Over the last year, we've seen an increase in responsiveness and service from SLO County Behavioral Health with their sobering center, crisis stabilization services, mobile crisis services. And, you know, with our recent signing of our compact, we have began, I think, a more comprehensive partnership with behavioral health. The police department is now working. This is a new program that we just started in the last couple months. We are now working closely with SLO County Probation to bring outreach service to Morro Bay on Mondays. This addresses a void in their service to assist those individuals who are on probation and can't possibly make it to San Luis Obispo. But it's a void that they've identified in our coastal communities. So they are now joining us on Mondays. So that's an increase in service there. So based on the increase of these services over the last four years, what I've evaluated and what I've seen is a redundancy in service with continuing to have this homeless outreach case manager and the service that he provides. And so for me, it's really efficiency in service. I never want to be redundant in my services, especially if we are paying for this service. And so really, this approach is to pull back, reassess, see what the future holds for Morro Bay and the services that we can continue to receive through our partnerships at a lesser cost or no cost to the city. And so I think that that's one of the things that in this decision that I evaluated. And so we're not necessarily saying goodbye, but I think it's important for us to kind of reevaluate what the future looks like for the police department, being that outreach and being that liaison to our in-house community. So currently we have the homeless outreach position. Right now that's being filled until we approve the budget. Until the end of this month, if it's... So I'm curious with the problem that we heard about earlier today at the city park, for instance, does... Are we having that homeless outreach person go to deal to work at city park or... So the homeless outreach case manager is not a sworn position. He is there to provide service. He's there to begin case management through programs. And so the activity that we address at city park is not appropriate for him to contact by himself. Because we're generally responding for crimes. And he is not a police officer. That was one of the objectives was to have him partner with a police officer so that we could have the enforcement or have maybe the services presented in lieu of enforcement. And try to connect in that way. The officers do a wonderful job. Like I said, a lot of change. The officers have been certainly a part of the last four years. And our work through the ordinances and training and crisis training. We're also seeing more of a response from our MET team or our crisis intervention team. And that's something that they are able to do if we were to see somebody who is in need of help or going through a crisis. So the type of activity that we're seeing at the city park is criminal. And it is not something that's appropriate for our outreach case manager to handle. Thank you. That's all I needed. Okay. And then just back to I wanted to I just noticed that we're at 52% of our reserve. Say, you know, reserve funds. And then is it normal that we go over? Is that do we tend to do that to go over the reserve? No, I don't think it's occurred often enough to consider it normal. Okay. And also on the revenue and expenditure policy. It says on page four that the fiscal policies that city council has reviewed recently but do not require changes at this time include the following. And one of them is the reserve and expenditure policy. And if I remember right, we had that as a future agenda item. And so I'm just a little bit confused by the wording of that because it says that we've reviewed it recently and it doesn't require changes at this time. But I don't think we have reviewed it. So I'm just curious about that. If I may, can you tell us where you're reading from? Page four of the staff report. Staff report. Okay. Thank you. Okay. Thank you. Madam Mayor. Director Conrad, could you expound a little bit on our reserve balance? I had highlighted that as well. You mentioned in your staff report that the city maintains a robust total reserved or unassigned fund balance estimated at about 52% of budgeted operating expenditures. And that exceeds the target of 50%. And if my memory serves me right, we have a range, I think, like 35% or 33% up to 50%. Do you know that range off the top of your head? I do. The minimum is 33% of budgeted operating expenditures in general fund and Q&E fund with the target of 50% of the same budgeted expenditures. All right. All right. So 32% to 50%. And we're currently, if everything goes as planned, at 52%, which equates to $12.9 million, according to your report. And so the last sentence that you have in that paragraph, the unassigned fund balance in excess of the target reserve may be allocated per city council discretion, keeping in mind that best practice dictates allocating excess unassigned balance to one-time costs and not to ongoing costs. In other words, we don't want to institutionalize an expense based on a one-time overage. But if I'm reading that correctly and if my math comes out correctly, it's about a half million dollars. The 2% equates to approximately a half million dollars in excess reserves above our target. I'd have to do a quick calculation. I don't have that number in front of me. Okay. I'm pretty sure that number is right. So, but the importance of what I'm asking is that we are above, by 2%, our target reserve balance. It does appear that way based on the budget. Yes. Great. Thank you. Anything else? Okay. Questions? Council Member Edwards? Thank you. Mr. Peck, I'd love to invite you up and give us an update from CFAC as Citizens Finance Advisory Committee as chair. Thank you for joining us. We appreciate it. Thank you. Oh, boy. Honorable Mayor, members of the City Council, I'm Stephen Peck, this year's chair of the Citizens Finance Advisory Committee. Thank you for the invitation. We've given an opportunity to address you this evening on Moral Bay's 2026-27 fiscal year budget, and in particular, the planned uses of funds from measures Q&E. Combined, these measures provide the city with four and a half to five million dollars annually for essential city services and improvements. Although CFAC did not meet in May, as we usually do, we did have a substantive conversation with council in late April during the joint work session. The city's handbook only requires that CFAC review the proposed annual budget prior to or in conjunction with the presentation of the City Council and make recommendations. I think the meeting in April and this meeting today probably satisfy that requirement. My comments this evening are based on the CFAC's comments at the meeting in April, as well as the official comments and reports that we've been providing for you over the last several years. It's fair to say that CFAC has had substantive input on Q&E expenditures. And though all know we have not officially collectively approved to disapprove them, we have some observations and recommendations. First, the expenditure policies and priorities in the budget are based on priorities established in 2021. Just as we are emerging from COVID, it's time for a comprehensive relook at the budget priorities and reconcile those, how those line up with activities identified in the ballot measures and current priorities. As the budget notes, revenues have been relatively flat over the past years. You know, we've rejected to grow for 2% to 3% over the next 2% to 10 years. Excuse me. Barely keeping up with inflation for the next 5 to 10 years. In effect, there will be no real growth in purchasing power. And measure Q&E cannot be relied upon for new long-term positions, services or expenses, or major capital projects without sacrificing other services and improvements that are currently being funded. We look forward to Council aggressively implementing the revenue enhancement recommendations that CFAC provided for the Council last year. We also want to commend the staff for reinstituting the 10-year projections that have been helpful in providing us with a better perspective on expenditure policies. Certainly, CFAC and its regular meetings and deliberations identified public safety as a high priority for the use of Q&E funds. This year, with the explicit addition of the fire department and police department dispatch services, the combined cost of these services funded out of Q&E has increased over $400,000 to $2.55 million, a 20% increase. Not including capital expenses like police department radios. It is assumed that these will be ongoing expenses, not one time. And we'll need to displace other possible expenditures that we could have considered in the future. There are other new expenses that have been -- that have the potential to turn into longer term annual expenses. And as noted above, there's limited ability to take on new expenses. CFAC normally considers the conformance of the proposed expenditures with the activities identified in the ballot measures as required by the handbook. There are a number of new expense items, and we'd like to suggest the following. First, that the dispatch expenses certainly conform with Measure E's requirements and activity to maintain 911 emergency response activities. Further, that the new $125,000 street sweeping expense conforms to Measure Q's street maintenance and Measure E's keeping public area safe activity. The new $40,000 item to maintain the waterfront area conforms to Measure E's keeping beaches and public area safe activity. But it is unknown the other two activities conform with the activities without further description. We'd also like to ask that the actual explanation of the activities be included in future budgets. It's always been helpful for us to understand, for example, how the additional cleanliness and maintenance of the waterfront is to be achieved. Or in the case of those items that we weren't familiar with, what facility maintenance might include and that sort of thing. Are these services, are they currently provided in the in the general fund budget or the additional enhancements or otherwise? The reduction of the pavement management contribution appears to be appropriate given the existing reserves for payment projects and the overall backlog. The $200,000 that is in the budget for additional street repair money will be adequate. And finally, we look forward to continuing our joint meetings with other advisory bodies and with the City Council. These have been very helpful and we look forward to the Council's review of the handbook to apply CFAC efforts in the areas where it thinks it might be most productive. And finally, I'd like to thank Director Conrad and her staff for their support over the past year. I think the constructive relationship between CFAC and the staff has improved because of that. I'd be glad to answer any questions you might have. Thank you. Thank you, Chair Peck. Any questions for Mr. Peck? Yes. Thank you, Madam Mayor. Thank you, Mr. Peck. The Council has discussed quite a bit with CFAC the idea of simplifying Q&E expenditures. Do you believe we've made some progress in that direction and are heading in the right direction with regard to that? Yes, I think we've had the right discussions about what that would look like. I think the simplification of the description of the Q&E expenditures this year probably went a little too far in the other direction. We kind of struggled with what those expenses really were. Some additional background material would be helpful. But certainly the CFAC's work program to work with staff over the next year to come up with a longer term projection and to simplify it, as you say, Council Member, will certainly be helpful. We're looking forward to simplifying that activity and looking at ways we can work on other elements of the budget. Any further questions? Any questions for Mr. Peck? Any questions for? Thank you so much. We appreciate it. Thank you for the report out. Are there any other questions at this time before I open public comment? Public comment is open on this item. Betty Winholz. I appreciate Mr. Peck being here. I do not consider it a substitute for the review before the CFAC as a whole board. Because what they reviewed earlier was not what was presented to Council at two weeks ago. And so I still considered it unreviewed. Well, I appreciate his opinion and what he looks forward to doing. I also asked a few questions in my written comment to you. And I hope that some of those will be commented on. In particular, I'm concerned about Cerrito Peak. I'm concerned about our tree budget. I can't figure out how to decipher that out. I could probably make an appointment with Ms. Conrad. But it's not clear how much is being spent on streets, how much is being spent on trees, how much is being sent on cutting trees down, let alone planting trees. And/or in finding people that are cutting trees when they shouldn't be cutting trees. And so I would just like a little more clarity in that respect. And I think there were some other comments in there if you could figure out how to answer them. Thank you. Anyone else for public comment on the budget? Ray, are there any raised hands in the queue? Yes, there is one raised hand. Courtney Schepler, go ahead. Hello. Can you hear me now? Yes. Okay, thank you. My comment is simply around the capital planning. That is not one of the city's strengths. It hasn't been. And I offered these comments last year. And this budget is even more lean in terms of the capital planning and capital expenses needed in the future. So equating this to being a homeowner, we've got a plan to keep the lights on right now. But when we need a new roof in three years, we don't have a plan for that right now. And that's an area that I would really encourage the city to devote energy and priority to because that's what, you know, keeps us steady over the years and keeps our infrastructure well maintained and providing the services needed. And setting us up for success in terms of being able to make, you know, the right investments in our infrastructure and our city services at the time it's needed. So I know that we've got however much room we have in this budget, which wasn't much. But I think to be sustainable in the long term, we really need to focus on building that capacity for robust capital plan and one that, you know, can be planned for well in advance and that all of the departments are able to focus their planning and energies around so that it's a little less scattershot and just more planful. And obviously the ability to create capital plans depends on your revenues being greater than your expenses. And it's that difference that funds long term capital plans. So that is where I would encourage the city to put a robust amount of effort into in the in the coming year. So that hopefully we have a more mature capital plan included in next year's budget. Thank you. Thank you. Are there any more raised hands? There are no more raised hands in the queue. Thank you. With that, I will bring it back. There's no further public comment. I will close and come back to staff. Is there any further questions before we move into deliberations? Starting on my left, council member Edwards, deliberations, comments? Yeah, thank you, mayor. I just wanted to take a moment to thank all of staff with regard to the budget process. It takes all of you in this process to help Ms. Conrad and her staff put this together and find areas that we can clip and areas that we can curb. And you know, you all matter in that process. So thank you so much. I just want to say that we we got there. We got to a balanced budget. I know that's what, you know, we all want to see. But I would still have to say, per the caller's point, you know, we're going from 9.6 million toward capital projects and down to 4.9. And I think we know the obvious thing is we have to figure out how to get us back up and make sure that we have a very good plan plan for what projects we're going to be budgeting for in the future. And so I do look forward to that work. I know it's coming. I know it's coming, Mr. Craig. I know it's coming to you. But I think we have to do that. And I think for the most part we had a very good discussion at our prior meeting. And I feel confident that we turned over every stone. I was going to have you put the slide back up of capital improvement programs. But I think we touched upon those before. And I also want to say I appreciate the staff looking for the grant money. I know that takes a lot of effort and a lot of resources on your part. And I know that you, the department heads, do that. And I think we have to do that. So I just want to say thank you so much for those efforts as well. Okay. Thank you, Madam Mayor. Just a couple of comments. I'll be brief. The first one is with regard to our capital improvement expenditures. I know that everyone up on the dais here is keenly aware of the challenge there. As a matter of fact, it's one of our city goals that we decided on last year when we put our city goals together. The second one, infrastructure resiliency. And underneath that, creating a five-year capital improvement plan and how to pay for it. So we hear you. And we are not taking our eye off that ball. Thank you to Director Conrad and staff for working with the council between the last meeting and this meeting and coming up with the balanced budget. I think it was very collaborative and good work on everybody's part. There's one thing, however, that I would, that I strongly want to see changed. And that goes back to the affordable housing in lieu fund to pay for our housing element update. I don't believe that is within the spirit of the housing in lieu funds, their use. I know it's an allowable use under the law. But to have the affordable housing in lieu fund bear the entire burden of the city's housing element update just doesn't make sense to me. Particularly in light that we've, we've, we're hopefully are going to close on Morro Bay Elementary. We've talked extensively, the community has talked extensively about the need for additional housing. And then part of that being either senior affordable housing or just plain old affordable housing. To me, that's what those funds should be used for. That's how historically we've used them in the past. As a matter of fact, the, the senior, um, uh, low income senior housing on main street, the, the house low development on 41 as well. Uh, and that said, I, I asked specific questions about that little overage that we had in reserves. Um, my suggestion for the council is that, um, the $100,000 for the current year expenditure for the housing element update simply be taken out of the general fund. We would still be, um, almost at 52%. We'd just be above 51% at that point in time. Uh, unless staff has, I did, I did email staff, um, yesterday on this. If staff has any other ideas, uh, happy to entertain that. But this seems like a very simple substitution. Um, and again, my, my objective is just to protect the affordable housing in lieu fund for affordable housing. Thank you. Great. Thank you, uh, mayor, counselor, uh, counselor Eccles. Um, congratulations. That is exactly how a budget process should work. Staff makes recommendations. Council reviews those recommendations and, uh, comes up with questions and or ask for alternatives. Uh, I think upon your email yesterday, we had already previously discussed it after our last meeting, uh, both on staff level and with you. I think our recommendation would be simply to pull that from general fund, fund balance, uh, instead of the in lieu, um, fund as, uh, as you just requested. So that, that'd be our, uh, option if you wanted to do that. Okay. Thank you, Mr. Cree. Uh, comments, deliberation? Um, yeah, I agree with you that, um, the, I, I forgot to mention when I, when, um, council member Lafay and I met with people self-help housing and asked like, how can we as a city help to get one of these projects in, in the city? Um, one of the comments, actually really the only comment that, um, we heard was in lieu funding is a big deal. Um, so that money is just a huge, huge asset to if we want to try and meet our, our housing goals. Um, so I, I, I agree. I think that should be swapped out. And I, I question why we have a 51% or 52%, maybe 51% in our, um, reserve budget. And I don't, that seems like, you know, it's, we have a overly, um, generous reserve fund and we're, we're at the, it's, it's a range and we're at the high end of it. And actually we're not even at the high end, we're over that. So I feel like we might want to look at that and, and, um, at least have some idea of where, what the concept is of having more than we are required to have. And, um, and one of our goals was, um, financial under financial sustainability was to reevaluate the reserve policies. And, and I think that's coming up pretty soon, I hope. Um, so maybe within that conversation that could be addressed. Um, and, um, did I have anything else? Oh, and I, yeah, I guess that's it. Council Member LaFay. I have really, um, no comments. Um, I, I, I approved the balance budget and I, um, concur with, um, Councilman Echols. But I do want to address the Bayshore Bluffs, um, um, capital project for $300,000 that Betty did, um, mention. I did talk to Nate and this is not just what I was, uh, proposing, which was the buildup of the, um, the actual, uh, shoreline and the, uh, erosion that's happening in the stairs. They're going to have to actually engineer the whole block area. Apparently that is from what my understanding. So I, that, that's my explanation that I wanted at least to share with the public and, and yourself, Betty. But thank you very much for the staff report and, um, look forward to, um, getting it budget and approved next week, two weeks. Yeah. I just wanted to add to that, um, I would, it would be really great. I, I, I too appreciate all the hard work that went into the budget and, um, I, I would love it just because I'm kind of like, I like things to be accurate. If we could change the language in that one paragraph to be reflect reality and, you know, just like, because we haven't, um, we haven't reviewed those policies. So if we could just change the language in that too. On page, on page four. Language in the staff report. Yeah. Oh, that's just in the staff report. Okay. Sorry. I'm tired. Thank you. Um, yeah, I, I just want to recognize, uh, the finance department, but all the departments for all your work on this, uh, you know, it's definitely teamwork and, uh, you heard our voices took that back and, uh, made those adjustments, found a way to make that happen. We have a balanced budget, uh, general fund budget, which, um, yes, we're required, but, you know, we did it without, you know, spending reserves. We have a healthy reserve fund over healthy reserve fund. And, um, um, you know, it's, uh, it protects our essential services, which is what we should be always thinking about, um, and, and allows us to plan for future obligations as we shared, you know, what we will be addressing our capital pro, uh, uh, uh, yes, capital projects. I can't even get there right now. I'm getting like you, but, um, you know, we're going to continue to see increased costs, uh, as the state and federal government is shifting how they're, uh, allocating funds and the unfunded mandates. So we definitely have our work ahead of us. And I think that, you know, just, just, um, paying attention to unplanned expenses will be part of our due diligence. So thank you for all your work on this and to the community for participating in the, and the questions that are asked and answered and, and, uh, it makes us do better. And staff is hearing these comments, concerns, and questions. And so as we move forward, working with, uh, the, uh, CFAC committee, I think we'll just continue to improve the process. And, and I think that's all our goals, uh, with that, um, and I support your, your, um, recommendation also, would you like to make a motion, including that recommendation? Yes. Thank you, Madam Mayor. I'll start off with adopting resolution number 3226, adopting the fiscal year 2026-27 operating in capital budget as amended for, as amended, as we discussed, um, for the expense for the housing element update coming from general fund. I have a motion. Do I have a second? I'll second that. I'll second that. I'll second that. She's asking to repeat just so make sure she captures exactly what she said. I believe. Go ahead. I wanted to make sure we covered all three resolutions. I heard the budget resolution. Are you just doing one at a time? Yep. Thank you very much. I can do this. I can do the. All three. The next two. Sure. Then, uh, in addition, adopt a resolution number 33-26, readopting the city's investment policy. In addition, adopt a resolution number 34-26, setting the fiscal year 2026-27 GAN appropriations limit at $18,802,003. I'll second that. Thank you. So I have a motion and a second. Do a voice vote. All in favor? Aye. Opposed? Motion carries 5-0. Future agenda items? I go, you go ahead. I've got one. I propose for a future agenda item, uh, city park renovation. So we've had, we've talked about the bathrooms there. Um, uh, so I'm submitting that for a future agenda item, the city park renovation, the whole thing. So a holistic approach. Good thing. Staff was already. It would include the bathrooms. Staff was going to bring forward already. Yeah, I support that. I support that. I definitely support that. Sure. Okay. Anything else? Nope. Nope. Nope. Um, I do. I, I was wanting to get support for, um, in the general plan, there were properties that were down zoned and that's become an issue for some residents. And I was wondering if we could have a conversation about it, because if they, if they were down zoned, they weren't noticed in the general plan. And though there was time, you know, to have public comment, they may not have known about that or been involved and then found out that their properties were down zoned. And it would be nice if there was some kind of mechanism so that they could, um, appeal that process that wasn't, uh, wasn't so prohibitive and, you know, costly. Do you want to, do you want to, sorry to interrupt. Uh, do you want to address that now or do you want to wait until the future? Well, I, I don't know if it's an, if it's an issue to bring back because I don't know that we can change the general plan. I don't know if it's an issue to be a general plan. So I'm maybe. I just have a few comments by Mr. General without any action. Mr. Seuss. Are we referring to properties on like Alessandro? Yeah. So familiar with the situation. Um, I've talked with, uh, effective landowners and that you may be alluding to. Um, of course I wasn't here at the time of our zoning code update when the, that area was, uh, rezoned. Um, I don't know that that, that an additional, a future agenda item would be the best, uh, forum for that. I think we can, uh, city attorney and I could do some, some research, um, on what noticing process was or was not followed for that and report back. Well, yeah. And then if there is, if they weren't noticed, it seems that there should be some kind of, I know that we have fees involved in appealing or, or modifying things like that. And it seems like maybe we could create another, um, category if someone has been down zoned without their notice, without being noticed. And I don't, would that involve the general plan or is that just like a policy? So we're referring to the zoning, which is the zoning code and the zoning map. I'm not necessarily within the general plan. Um, I think the situation you're, you're talking about, um, I think the most productive way to address that moving forward is actually through the housing element update. Um, that could be an opportunity to look at areas such as the area we're referring to, to see if that might be a spot that would make sense to rezone, to allow for, um, additional housing development. Right. But that's like two years from now. And, you know, if people want to sell their property or, or, you know, what different things they might want to do, they're limited. And so if they wanted to modify that or address that, they, they're faced with these high costs. And it seems like there should be some kind of channel. Yeah. Yeah. That's correct. I've, I have discussed this with those property owners. They would have to go through the, the rezoning process to request them. Well, that's just what I'm saying is that we talk about possibly changing the rezoning process for those particular cases. Can I suggest that you perhaps get with the community development director and the city attorney? And if you're not satisfied, bring it back because we're probably getting into too much discussion. I would defer to the city attorney. Well, I have talked to, um, director Singwald about it and, um, manager Craig, I guess I could talk to, um, the city attorney. I think, yep. Brian Sachs, the attorney, given it seems that it's a specific number of properties, it's probably best that we, uh, discuss it at a staff level offline. And then depending on, on the results of that, we, you know, we can work through the council member Landrum or we can bring it back. Okay. So I could know before the next meeting whether I would bring it back. Okay. And, um, I think that's all, that's all for now. Thank you. With that, we will move adjournment. I told you that's one. You have to see. Yeah. Yeah. Yeah. Yeah. Yeah. Yeah. Yeah. Yeah. Yeah. Yeah.

Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. I wanted to thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Yeah. and also installing trails so it would be more of an active use kind of situation. Okay yeah that was my question so basically the habitat restoration is probably limited to no use by the public whereas the wet land restoration is more. That was meant to be kind of one of the differentiators yeah. Perfect and then another question the Marine Science Institute, love the concept, and it's probably way too soon to ask this question I think I already know the answer but there's no indication that any is there an indication that anybody is interested in that particular concept or it's just it's sound it does sound great is do we have any interest in that from anybody outside the fine city of Moraway? No we're not currently talking with any organization who's interested at this point. Okay thank you. Oh wait I have one more sorry last one. The boat the travel hoist it is what I thought the picture was of in this in this focus area too there was a hoist to remove and is there an identified area that that travel hoist is going to travel to to take the vessels? Is that the boat storage yard? That makes sense? So if we're pulling vessels out okay but you've got it. Yes okay so okay. Thanks helpful. I had a question on area two focus area two and it made me think about it we've got some agenda correspondence referring to some of these concepts as massive. Is there any indication of the footprint that you 're showing on the well I guess both for the market plaza property and for the the uh mr property how big of a hotel are we looking at there is that 500 rooms is it 50 rooms is it bigger than a bread box and smaller than a blank hanger how big is it? Yeah great question so for the market plaza hotel option it would be about 50 to 65 rooms um 30 to 40 000 square square feet um with two levels of parking underneath the hotel at the power plant site would be larger with about 150 to 165 rooms with 60 to 75 000 gross square feet okay so on the power plant site compared to the footprint of the existing building it's a much much smaller building like a tenth of it the power plant building the turbine building yeah yeah it 's not meant to utilize that building okay all right thank you since we're still on area two um both of these exhibits it shows the on the left hand side r v camping several years ago the citizens petitioned the city council uh one more thing as far as the uh concept bb1 on the wetlands it doesn't seem to me that there's enough of water water table to support a wetland in that location so for that to occur you'd have to excavate and the problem with this area is that this is extremely rich and cultural resources at this location so to disturb that area and try to obtain a wetland area and sustain it seems unlikely any other clarifying questions on the presentation before we move on to public comment yes mary i had a question for focus area four the report said the staff at the coastal commission had commented that the long-term plan must relocate all the street and parking spaces um is there a timeline for the long-term plan is that just it must be within the 25-year vision correct any other questions as a committee okay um on the um so in focus area four was the staff's recommendation to re remove the reorient re orienting of the centennial stairway is that what i saw or that's still a stat no that that proposal is um was strongly supported at the workshop and so we are proposing to include that okay in the preferred alternative would a discussion item be why should i wait okay just so you know that i'm gonna ask seeing no other questions from the committee we'll now open it up for public comment on the recommendations for the prepared alternative as always committee members are encouraged to submit agenda correspondence prior to the meeting and because of the breadth of the issues we're going to be having one five minute comment period this afternoon anybody who would like to speak on the matter today thank you one pack and staff for the thoughtful report here um the first thing i want to say just generally um i would love if this uh if this committee could uh recommend as part of their larger recommendation that we focus a little bit more on connectivity rather than standalone structures that then we that then serve as kind of obstacles i know much of the pedestrian unfriendliness on the waterfront is a direct result of us focusing on structures and not uh connectivity between them in fork in focus area one uh i i support the uh the glamp ing direction assuming uh we can get all the approvals to do so i also think uh commissioner peck brought a a good point up about getting everything on the same schedule uh and having a clean site there rather than uh three uh competing glamping facilities for example um in the uh concrete spot b2 perhaps that's that's glamping or a parking gathering area for uh lila kaiser and what i uh uh lightly support would be expansion of fields uh on the other side of morrow creek i know fields are a major revenue generator for tbid and the opportunities that are in place if we can support out of town tournaments in different sports uh there's just tons of upside there um we have um in focus area two sorry my tablet's going a little slow focus area two like i mentioned i think uh sports fields options in area a1 um i also i've seen this mentioned once or twice in agenda correspondence i very much support some sort of continuous 5k running route that doesn't require street closures that's not something that we have to design too much around but we can have meandering paths that connect um and uh and events can come in there again a revenue generator that means uh pedestrian connections through pacific wildlife care uh to surf street to front street um also along morrow creek perhaps on both sides and embarcadero um and sort of previewing where uh what i wanted to mention regarding uh the morrow time maritime maritime maritime museum which i very much uh support the folks over there and their ambitious plans to expand i think one thing that was lacking in their plans um a couple months ago when they were presented was again that that notion of connectivity and pathways between different uh different focus areas here uh one thing that i i i'm not sure uh why this hasn't happened yet perhaps it's a cost uh issue i think that the opportunity for the low cost opportunity to have a 10 or 12 foot wide raised maybe 8 to 24 inches meandering wood path on the east side of embarcadero from morrow bay maritime museum to the crosswalk which may or may not serve as a a future uh parking gateway into morrow morrow rock and that was again on the east side of embarcadero in focus area too that could be through the trees and wouldn't need to remove any trees to do that sorry scrolling a little bit slow here focus area three focus area three i think is a really important one i've spoken about this many times to council and planning commission the triangle lot the dirt lot underutilized spaces the boat storage is not the highest and best use of that dirt lot and in fact if we consider a parking structure as an as a kind of necessary eyesore i think the the dirt lot is a great location for that if we can pull that off i i'm happy to see that the surf street stairs made it onto this map as a foregone conclusion i can't wait until the connection returns to that area a bayside lateral access remains a priority of mine and that needs to be reinstated at giovanni's giovanni's represents a really important juncture just like the triangle and dirt lots in that lots of stuff happens around and through those properties we need to make sure that people can go through and around them um i i don't really have an opinion on reorienting the embarcadero there one way or the other in terms of market market plaza i think uh smaller is is better i'm very excited about the humble nature yet effective nature of what they've done at coleman park and i think it represents the scale that morrow bay is comfortable with so less is more at market plaza i also think that it may uh it may be unwise to uh automatically assume that more hotel like a 38th hotel is more important than a first conference and event center uh here in morrow bay and lastly in focus area five which doesn't exist in today's agenda i think we uh need to reiterate that bayside lateral access in front of the aquarium the yacht club and kayak horizons needs to be restored thank you hello my name is cal myers i many of you know me here i have my hab hat on right now one of the topics i did could make it to the workshop and i apologize for that one of my concerns about reading through the hab plan and a lot of the issues revolves mostly about revenue and uh steve peck you should probably appreciate this one is to make sure that you know we talk about revenue opportunities and stuff one of the gems of harbor moral bay is the harbor and there's a giant hole almost nine figures of repairs that need to happen in there you know sea walls and revetments and all that stuff is you know we're talking about revenue generation you know does that go to the general fund does it go to thailand's trust i don't know if there's an opportunity in the waterfront master plan to address how to continue to make you know we want to make all these things and draw tourists here but we also want to make sure that the sea walls don't collapse the embarcadero doesn't end up underwater all those types of things it doesn't burn to the ground like it did back in the 80s so you know a lot of these revenue ideas are great but should they go to the general fund so we can hire more people or should it go to capital investment to make sure the harbor survives the next 60 years thank you hi shirley frazier i appreciate all the work that went into this for the workshop after what i just heard i'm not sure i attended the same workshop given that and i mean that in all sincerity um the hotels in general were just not accepted period i there was one and i took pictures of all of the um boards and i have it all the meetings i don't know why i just do that um and refer back to things and one board had it on there what we were tasked with and maybe it was just my group but we were supposed to put pictures up of what we liked um things that needed work or clarification and then the things that we wanted removed and there was only one board that had the large resort style hotel in anywhere near the like it was actually between like and needed um more definition i'll try to briefly go through this because i'm going to pivot there and go back through the four areas again the overriding i felt like overarching thing that people said was they wanted to take this element and this element and it was more presented as you have to have plan a or you have to have plan b and i think that for you guys it would beho ove you to really look at the things and try to put something together maybe even if it's deviating a little bit pivoting from what the consultants have done one of the things that focus area one maybe it was my misinterpretation but i thought wouldn't it be great if the city could own the rv park and get more revenue from that because it tends to be a higher payout than hotels and the glamping was well received but noted with the land use maybe it could be adjusted in some way for the actual pant plant property again from previous meetings and this one everybody seemed to want less is more less development lower structures it's the most beautiful part of the embarcadero as far as the views that the public has and the visitors that come the the multi-level even if it isn't as big a footprint as what the plant building is would still be huge large in comparison to what we have anything else here and it just seems out of character with the area and i would hope we could have a better use of that land especially for more public access one of the things was mentioned about moving the maritime museum off of their what i think is a prime location right now out on the embarcadero that seems silly just to put parking in there i mean it didn't make sense to me plus they had to raise all the funds for that so i think you're dealing with an area that has a lot of beauty and to put up structures which by the way the parking structure was not mentioned at all that night to go in that area i know we need revenue and we need sustainability but i would hope there could be other things i mean if you think about the conference center or something for sports teams or you know you think about the monterey bay aquarium all of those things generate revenue so i would hope we could do something rather than just another hotel even at the the focus area um down where the city-owned property is at the end of morrow bay boulevard um i didn't hear that the staircase was supposed to be changed i i heard in fact the opposite but in that area again people were concerned about losing parking and and less was more you know smaller and keeping the the charm and i think that was brought up that it's not keeping exactly with the the character of what we have um here um i'm kind of thinking on the fly here i don't think there 's anything else i don't want to just stand up here and waste your time but again i would hope that with this area of the city and we have an opportunity to take down something that's very large and very industrialized and there are still people which i won't say where i'm at on it with the stacks they 're very iconic but if the idea is to reduce things down now even though this is for the future i would hope that we could do things that are more minimally impactful to such a beautiful area i appreciate the connectivity idea i think having the walkway some kind of pathway right in front of where the maritime museum is going along that side of the plant and having some kind of functional crossover would be great because it's very congested on the other side of the street over near the parking and and the restaurants so i know you guys can look through all of this but i would urge you to maybe pivot from some of the things here and do some incorporation of things and really go through those boards as far as the pictures a lot of us did not write comments on little post-it notes this time but have in the past so i would encourage you to just look at all of that information and maybe do a microcosm of things thank you hello seychelle can and i thought the workshop was very valuable there was so much information that we really couldn't get through it all so i agree with paul that we're a little premature to cement this right now if this is the last meeting before it's really the big wow we we got to take a better look um our group the person that represented our group uh didn't hit on everything because there was just so much here nobody liked the hotel and over in the glamping area by uh uh the park perhaps have a swimming pool that would keep those people happy in their their little um area and it might also be able to facilitate you know the park um in area two um area no hotel um no hotel um and nobody liked the residential area either um we love the marine science center and you know perhaps have some meeting rooms there like um over at the centennial park they said that perhaps that smaller hotel could have some meeting rooms because we really don't have any um at this workshop it was so echoey in the community center that it was really hard to hear so not only was this difficult to follow but we couldn't hear what people were saying and it just so happened that the stickers for the pictures and the post-it notes didn't work so everything kept falling off the board so you know it was hard to follow along um you know people like the boat pull out i'm not quite sure how i can visualize that but i think that needs more work and to have some type of like pikes market there along with the seafood is not a bad idea you know whether people would go down there and you know buy you know the fruit cups or whatever but that's that's nice and um area three access to the rock was a big one for our group uh we really support the realignment of the embarcadero because people get snagged in there for an hour and a half so a good trip down is a terrible trip back and it's going to leave a lasting memory on our our visitors and the maritime museum um we thought about relocating it but i agree that probably that would not be the best use of our monies or time but uh to have access it kind of hides back there you're not even quite sure where the entrance is and if it's going to expand perhaps we can think of a like a an opening into that area we thought expanding the otter viewing was a good idea where every other table in the room did not you know perhaps they're really protective of the little ot ters and i am too i have concerns about over motoring and uh boats in our harbor and that's not something we're discussing today but i think that that's a very big issue about protecting our wildlife um and i'll bring it up with the council um the those are the main things that i remember from our conversation on area number three number four we only like the small hotel if anything because it's always been a big idea of how to get all the people flowing up moral bay boulevard to our our businesses up there and like we liked opening up the staircase but we wanted to keep the wood we didn't like the cement slab or anything um but anything low is going to open up moral bay boulevard so you know low the park down below a beautiful staircase and um i'm for keeping the libertine you know the structure as is it's a beautiful building i don't know what repair it would need but the block one that got past it was so ugly and it's right there in the our center of town that was my opinion um yeah the little pedestrian oriented you know parkways they 're cute this one's a little bold for me as far as the blue and the red and the yellow um the street concepts yeah definitely keep the libertine access open and so people can sit down have some shade you know maybe you know drink lemonade or whatever with all the little uh bushwa hotels going second story along the embarcadero it really creates a parking problem so yes everyone at my table agreed that the sidewalks need to be parking except for that one area thank you hello my name is margaret carmen and i have a question i know we're not going to answer it but you know there were only 38 people at this meeting and we know it's because there are all kinds of other meetings going on and yet you're being tasked with you're going to make your mind up today and we've been told that the public's going to get to fill out a survey but yet you're being tasked with making up your mind when only 38 people came to a meeting where we were given a lot of times two choices neither of which we wanted and there are people at my table we were just so frustrated we didn't write on those sticky notes and they fell off anyway and so i just kind of i'm upset that we're being told that we all wanted this when all of us sitting at different tables or know that that's not what we were saying so i don't see how you can make a decision tonight without having the results of that survey that hasn't even started yet okay so what would i want to say the glamping idea when you look at where glamping is it's not on top of cement slabs and and you have those little computer drawings with trees around them and it's not a beautiful setting right now so it's going to be a long time before you make that a glamping experience so i think you should expand the campground and maybe the pool like people were saying and i don't know how the ball fields fit in but that all sounds like a really good idea that people coming from the valley for for tournaments might be in their rv and their kids are playing in the pool that sounds like a really good idea i don't know why we're spending so much time on focus area two because vistra owns the property there's toxic waste on it and i don't think we're going to do anything time soon with that area so probably shouldn't spend a lot of time arguing about that one and it just seems a crazy expense and for what reason to realign the embarcadero road it's like it's going to cost money when are you going to do it how much tourists are going to not be there i saw where you put cement things in front of the businesses for people to sit on but those are a lot of places that people run in and out to get coffee get their croissant and if they've got mobility issues and you push them down to park way down below they 're just not going to come and so those people are going to be able to do it how much food is in business i am in favor of restripping to create more spaces and i've been told by other people i've only been here six years that they've looked at the boat hall before and they've been told that that there's not enough room and that it's not a good idea so throwing that out and i'm wondering where there's parking for the fishermen in boat storage because they've been asking for that and i hear you saying that the coastal commission says we can't have those dead-end streets and i want to say i thought it was local control we made up our minds and then we took an idea to the coastal commission and what's wrong with the centennial staircase we know if we start rebuilding things just like they took out the surf street stairs and now it's like uber duber expensive because there are all kinds of new requirements so i want to throw that out of have we really looked at the dollars and cents of changing that staircase because please please please don't vote for the big mega i love that that there was a picture of a staircase that's like in urban city i was like no we got to remember that we're moral bay um we've done studies in this town before where the develop there they said we just aren't going to support full service hotel we need to keep moral bay the beautiful place it is and get people to come here because they come here now we just need to get more people to come here with how beautiful it is don't make it orange county and disneyland okay we're not talking about five so i guess we're not talking about uh tidelands hotels but wherever you can put in there that when you build new hotels they have to provide their own parking means you can have more people coming to spend money and enjoy the embarcadero and let's see if i have anything else to say um i think that's all thank you good afternoon uh wampac staff my name is mike gerson i'd like to talk about focus area number one i think that both ideas are great expansion of the rv park would be great depending on if there's a need for it if there's a demand i'd like to know a little more information what the occupancy rate is over there and what kind of revenue it could bring in if we do expand that the glamping i think is a new up-and-coming thing that's gaining a lot of popularity and that would be a really novel thing for moro bay to have but at the same time i'd like to know what the demand is for that and what our return on investment is going to be how long will it take to make it back what will it cost to set that up so i think really we need some financial data to back up our decision making thank you hello judy setting um thank you for the hard work thank you consultants so i have a question about area one um and my question i think is for arlen are i'm just pict uring moro dunes and the historical value that moro dunes has been it has been well kept it has provided a consistent income for the city and i'm not really clear on how moro dunes is fitting in with this new glamping proposal so i'd like to suggest that we keep moro dunes and we work with them and about expanding and we use some of their ideas that have been successful throughout the years i like the idea of adding a pool i i like the idea of having just a few of the glamping offerings you know maybe a little east of um uh where moral dunes is like by flippos you know towards that way um so anyway i like that but and then um as far as wetlands i i i like the idea of the wetlands area with trails nature trails and whatnot and i would also like to see a selenium and chumash cultural center in that area i'm thrilled that your drawings do not show the industrial buildings or the stacks although i would like to propose that for stack um the northernmost stack that is the first stack that was built it is 100 brick with a covering of concrete it has an architectural value that i think people would be interested in seeing i would like to propose that it is cut down because i'm not in favor of all the heights and it is cut in half where there is the brick showing and some type of memorial maybe to all the pgne workers or i don't know anyway um a part of it is kept um i do agree with other speakers who have said that we need to keep heights down and um that goes in line with our small town character i like the idea of a marine institute i definitely feel that we need to build on what the maritime museum has already worked so hard to create for us it is popular with the tourists and keeping it there is a good idea um i love the idea of a boat haul out but i believe it belongs down south of tidelands i um one of the reasons is i don't want it to interfere with the whole otter thing i don't think that works it's pretty busy all in there so the boat haul out south would just be better um i like what avila did with their parking they did not build a big structure they did put in a little area of paid parking and that seems to work with them they get a lot of um visitors and i would like to see the in street parking remain it's important it's important for loading it's important for handicap it's important for those businesses and libertine was mentioned i think sharice has some good ideas on libertine i do think it needs to be beautified um i'm trying to think what else the large hotel my husband and i did a you know just a scenario to try to figure out how many rooms you would need and we figured that you would make quite a good income if you had a hundred rooms that's a lot though that's a big impact on all our other hotels so i don't know if that's an answer i think a small boutique would work parking on the embarcadero shared with retail rooms up above and even a conference room that that bridges over market street with park is parking on the other side definitely an elevator definitely beautify the staircase um keep the historic chests you know and a public restroom there and um i think that's it and i like the whole connectivity that was mentioned with our first speaker it's important and going through the trees in front of where the stacks are now in a parkway setting is a wonderful idea thank you betty winholz the focus of my comments are really about practicality you know what can we actually accomplish in the next couple of decades and so that's why i made the comments that i did to you in my email i i would like to add to that and um the moral dun es has been said is a historic place it's a destination for the valley people now it shouldn't be changed at all but if you're going to add new camping or glamping if you think that is even appropriate that that could be around the corner on a tascadero road but i like this idea of expanding um our recreational and athletic fields around lilac heiser and i did make the suggestion about checking out something like boomers like in down santa maria which is very popular with young people families would be attracted to that they have different kinds of activities in that area and i think our space is big enough to look at this that so um i think a boomers type place would be um congen ial with uh expanding athletic fields and that's all in that area one and in area two um like a previous speaker i'm not big on designing that i don't know that we're going to have control of that in the next 10 years let alone 20 years and and there's a number of plans on the shelf that have already made suggestions and so there's lots of ideas out there that i don't know that we need to focus on i would ask that you eliminate the housing i think it's an inappropriate place for permanent housing um area three um is about the tea piers and the fishermen and that would be my focus there they have come to a couple of planning meetings commission meetings and said you know we want you to add some parking places for us so we can take our gear from the storage area down by the creek and bring it up so we can work with our boats and so i think this is the time to identify those areas i think that they were offered two slots but maybe they need more than two and i think we need to engage them in what should be done in this area if there's to be some change um i am against the realignment of the embarcadero i think that's too expensive i think what's the point let's redo the strip you know paving and striping and whatever that's about um what else we haven't talked about coleman or the rock and i guess that's not on the table at this point um and then in area four which gets me into my big thing is do not remove any more parking from the embarcadero whether it's on the dead ends whether it's on the street we've already lost parking because of the red striping demanded by the state um it's it's just inappropriate and i know some hotels have gotten permission to use our public spaces for their um parking required for their boutique hotels and i think that's inappropriate and um i think we need to go back to when the anderson inn was first proposed that they had to put parking on their site and that did not then impose upon the general tourist or parking people who were coming in for the day or were staying at another hotel or whatever um i i also object to the coastal commission trying to help us design this i think that's inappropriate this is our city this is our plan and they can look at it later and say whether they think it uh matches our general plan uh and implementation plan or not but but we need to say what we want so their desire for us to eliminate parking forget it at least that's my strong feeling um anything else about that i think that's pretty much it i don't think wider sidewalks create more people shelling out dollars to buy things um we've got two sidewalks the boardwalk on the west side of the buildings we've got the street sidewalk on the east side um and then for most of the way on the east side of the embarcadero there is part walking also so that's not a biggie for me okay thank you i do want to remind us that um in terms of that hotel up on the bluff and um you know we do have uh rules and maybe it doesn't cover this block in in um our general plan but we're supposed to be one story for a certain distance and then you can go two story whereas the hotels that we images that we've been suggested are all two or more stories tall right at the edge of the bluff anybody else in the room wishing to provide public comment is anybody online in the queue there are no raised hands in the queue thank you we'll close the public comment and bring it back to the committee for discussion and action uh director singwald any follow-up on the oral or written comments that you'd like to make before we bring it back to the committee yes i'd like to um address the comment uh or a question asking how the survey results would fit into this process i think that 's a very good question so we're going to launch the online survey next week and it 'll be up for about four or five weeks once we have the survey results we will present those to w ampac in august along with the preferred alternative and that will be an opportunity for the wampac to use the survey results to help refine that preferred alternative thank you and i have no other um responses at this time available for questions so bringing back to the committee for the discussion of the preferred alternative we have a little extra time today because the hab meeting was cancelled so we have a few extra minutes but we still do have a hard stop in order to tackle the material in the most productive way i'd suggest we work through each focus area provide individual comments committee comments and see where there may be agreement or where modifications are needed in discussing this with staff uh perhaps the three things we need to categorize is do the items do are the which items appear to specifically or generally be agreeable to us and not require much more uh discussion or are there items that require some refinement and where we can provide some sort of policy direction to move it forward again sort of from a narrative standpoint simply modifying the proposal or to identify those items that require further study and refinements to consult and identify the idea of the subcommittees this may be an appropriate part of that where we need to do some deeper dives any questions on that before we proceed i'm going to go through each focus area we're going to discuss each one of those come to an agreement move on to the next one otherwise i don't think we'll ever get get through that on focus area number one the old wastewater treatment plant and moro dunes rv park the staff recommendations are to maintain rv camping at the current location the moro dunes establish a glamping facility at the former wastewater treatment plant maintenance yard and current rv storage area uh in establishing the glamping facilities would diversify the overnight offerings there may be other comments that the the committee wants to refine but those are the staff recommendations um comments from the committee on the start to my right mary for me it's important to start uh work backwards from our goals so my goals for this area would be revenue generation low impact development and i think an opportunity to meet additional customer segment needs for our tourism industry so i'm aligned with a glamping use and continuation of the existing rv facilities my note for glamping would be that um just to respond some i don't think we need development of restaurants or shops or entertainment along with glamping so i would recommend that we do it in a lightweight way and i'm excited about the opportunity for glamping to serve our missing luxury high- end hotel segment as was recommended initially by the consultants i see no need for additional hotels when we look at our hotel occupancy rates to me the data doesn't show that we need additional hotels but we are missing a luxury high-end hotel which glamping would serve and then additionally i do think our campgrounds are impacted and show need to continue the rv campgrounds also for focus area one or this could be two i i'm excited about the discussion around potential for a community pool since we don't have a community pool in mo ora bay or los sosos and also excited about the opportunity to install additional fields and uh potentially that's for focus area two okay so um i wanted to say for area one um and you know as you just mentioned um area two it could affect them as as well but for like at least the last three years i've been looking into like different sports complexes visiting because my son's in a travel ball team um for like 10 years now um so i've gone all over the place and it's just amazing the revenue generation that these um larger scale sports complexes can create as long as they have three to five you know well they can have a ton so even more but um right now we have like two baseball fields with lilac he iser and having the ability to have a tournament where you have three or four different team or eight different teams all playing at the same time it it creates um just really a cool atmosphere as well as revenue generating because they're going to shop in our shops they're going to eat at our restaurants they're going to stay in our hotels um it does happen during the weekdays i mean weekends a little bit more but um they're getting more broad to go into like thursdays and mondays um i did talk to some hoteliers about that and they said well we're already busy on the weekends but um our occupancy still is like at 60 average so anything i think would be great and if we're talking about increasing more hotel rooms by 100 then i think that that would be a benefit um glamping versus camping i i just wish that we could change the name from glamping i can't imagine saying hey architect design a glamping complex um is part of the reason why you're referring to glamping is because they're semi-permanent fixtures and so if that's the case um could we open it up to like non-plumbing non-electrical um cabins type of thing because that could generate more revenue for whoever whatever business goes in there because there's so much cost that goes into like taking over a space and if you want a pool in there or jacuzzi or you want bathrooms they need to pay for themselves and so an rv space can make so much money and a campsite can make so much money but a cabin can make a little bit more which means that the owner has the ability to have more fixtures and then therefore more tot and so i just think that that could be part of that glamping part if we can actually put it into an architectural term um and and for that area um i'll just say that as far as doing a sports complex our city already has the infrastructure with our parks and rec department so it would be an easy um win for the city of morrow bay to be able to take that over um and so i'm saying build it they will come yeah and i guess i'm still considering like how close development goes to morrow creek in that area it does look like in focus area two there might be room to kind of move some of the floodplain um further south and so maybe you can get um more capacity like moving south if you're going to develop more onto the can you hear me now okay sorry about that um yeah i was just talking about the consider like the floodplain buffer along morrow creek it's a pretty sensitive area given sea level rise and flooding in that area you might want to consider um the width of that buffer of the riparian area and the uses that are there when you do have floods um but you might be able to get some of that in focus area too if that becomes more of a habitat or wetland area maybe you can morrow creek used to drain through that area and come directly to the estuary you know and it got pushed north um so it's possible that you could yeah reconnect some of that area and focus area too if there's no space in focus area one you know i already earlier mentioned about the coastal hazards associated with this location so that if anything goes in there it should be conditioned to have some sort of evacuation plan ready for the safety of the people that might be camping there or whatever it might be the other thing is is that being that it's in a hundred year flood plain you can't place fill there because that causes the fill causes the area to spread and flood in areas that didn 't flood before so you can't do that either so there's very limited low key uh uses that could be put there um the idea of using it for sports activities like another pickleball area or whatever it would work where you don't have to worry about people being there in the midst of the flood so those are the things that you have to keep in mind when this area develops that's what i have um just overall for the whole the whole all the focus areas i would say maintain character of morrow bay and unindust rial is unindustrialized when we can specifically for focus area one glamping comes in all forms safari tents airstreams yurts so i think i like that idea i think this entire area in focus one can be incorporated probably through a phase development based on the the current lease with morrow dun es and some other issues but i think it could all be an area where there's camping of all different kinds i would like to also see an addition of some tent and bicycle camping areas just some kind of rustic areas not big but so you have opportunities for all income types um i don't like the idea of a hotel i really don't like the idea of a concert venue um and i think and sports complex i'd rather if we're going to talk about that move that focus area too that's it thank you i agree with most of the comments from my colleagues um cfac actually looked at this area last year for revenue generating opportunity and made this exact recommendation so i would support that the expansion that's shown just doing a little data goes from about 9.4 acres for the existing morrow dunes park to 27 acres almost three times so it creates a great opportunity and i support the idea of uh looking at ways to provide uh lodging opportunities that we don't have now and i think we we've got some great examples about how we can address a market niche that we're not getting now whether it's the half a million dollar diesel pusher that goes to paso robles now because there's no place for them here or whether it's the tent camp whether it's a yurt or something like this i think provides us a lot of opportunity i think it also gives us an opportunity to provide something of scale that can can support amenities like a pool a laundry something more centralized where everybody has access to those and can still have their either rustic or luxurious accommodation opportunity i don't have any heartburn about the the proposed hotel just looking on that street there's probably room for another two or three hundred rooms just along at ascadero road if you look at all the vacant bsc property there not including anything across the creek under the area one so i'm not i'm not concerned about being you know putting a hotel on that site um i i think there also needs to be some some feedback from our consultant about what what demand is there i think one of our commentators said so what do we need i think that's a question we've been asking from the beginning is that you know we can wish all we want but um what is that we really what's the the mix that we need and i guess i'm going to trust the staff and consultant uh and in the council to say why don't we just you know do that economic analysis later on have a big enough site that'll support a centralized amenity that and we're going to sort of program that in a way that meets the market i think that there was a comment about the existing morrow dunes park its time for redevelopment has come i think there's a general acknowledgement of that uh there's an acknowledgement i think that those those serve a certain demographic price point and the other price points and experiences are the ones we're mixed missing so let's let's combine those um also we've kind of thrown around the idea of glamping um i think that's just a fancy contraction of glamorous camping um i i i think that the document itself ought to be a little maybe just a little less glib about that what are we what are we expecting there so when we get a development proposal what is it that we're hoping for um is it a year is it a what what is it so i think i guess i'm asking staffing it's also do a little work on that so that translate that into words that we can implement five years from now with that i'm uh i'm hearing there's general concurrence on this matter and to exclude the hotel no um no major retail commercial facilities uh adequate circulation um i didn't hear that we probably it's one of those items where we need some special design guidance of them we've talked about and this is is it one that we'd have to form a subcommittee for further analysis that sound about right that emotion okay there's a second so moved okay all those in favor all right so just to confirm chair peck so that was um a vote to support your your summary of the the wampat comments on that yes and just maybe for for the record i have some notes here just want to confirm a few a few items based on individual comments that i heard so that would be no to the sports complex in focus area one that wasn't part of the the summary and then the sports complex in my mind is outside the area it's it's in lila kaiser it's not on this property okay thank you and then um is there does the direction include the larger uh buffer from morrow creek as we heard from conno rigarity or is that not i think that uh yes i think that's going to come up during the entitlement we're going to provide an appropriate setback for a repairing setback so i i'm not do you want to include that in the motion carolyn yeah well i guess yeah i i don't know if um the consultant looked at i know some of the solarized and flooding so i don't have that here to look at that but i think it's you know like a 30-foot buffer helps water quality if you're looking at like migration corridors um i think it's just good to kind of think about what that buffer looks like because now's the time to at least think about there or have a use that like could transition to that over time you know so maybe not the next 20 years but um obviously not like a hotel like right up against the creek which is not in this plan but and then also for sea level rise as well like those dunes will migrate inland as sea level rise increases dunes also move inland so um but again that's in time so i think just like thinking about that now as you think about those uses like having a buffer on both this the ocean side and the riparian side would be a little bit more than that but i think that's a little bit more than that but i think that's a little bit more than that but i think that's a little bit more than that but i think that's a little bit of a little bit more than that but i think that's a little bit more than that but i think that's a little bit more than that but i think that's a little bit more than that but i think that's a little bit more than that but i think that's a little bit more than that but i think that's a little bit more than that um i think that's a little bit more than that but i think that's a little bit more than that but i think that's a little bit more than that but i think that's a little bit more than that but i think that's a little bit more than that but i think that's a little bit more than that but i think that's a little bit more than that i think that's a little bit more than that but i think that 's a little bit more than that the range of uses was when i heard about bicycle camping i think we need to create opportunities for those things so i can't tell you what the proportions are i don't think anybody can tell what that is but a range of opportunities that meet your recommendations andrea yeah i think that's perfect just something for everybody super helpful isn't it um cool again we we have to um go back and craft this alternative so i just want to make sure we have the the details um and then i do want to address uh chair peck's um comment about the economics of uh hotel somewhere on the waterfront so similar to what i said earlier about the results from the survey we also will have a more economic analysis or economics consultant is working on a um a hotel market analysis and we'll present the results of that in august to the wanpak with the preferred alternative that's all i have thank you i have i have a question um and i'll ask you um as far as because you guys are saying no to a sports complex or an expansion of the sports complex but actually an expansion of the rv park and you're talking about riparian areas around there knowing that we might discuss it um sports complex for area two what would you see as a more sensitive area because if you did do a sports complex on area two that would require going over the riverbed to me that's a more sensitive to the park and i think we're going to be able to do that probably analyzing area two before we're there i think the decision i guess i'm i'm wanting to know because you're making a decision on saying no to that area for that so that's why i'm bringing it up now i think the motion was that the area one was for rv park gl amping that concept without the hotel so there was there was i think where the hotel is that could become a sports field that's what some of the other things like if we say no to sorry if we say no to focus area one b2 hotel could that be um another sports complex so that we would um another sports field so that we'd have more fields and draw in these tournaments i think was what we were hearing over here i don't have any strong opinion about that um but i think that that has been addressed whether we we support that or i i think the summary i put together did not include that including eliminating the hotel because i think there was a version a version b which was uh with and without the hotel and so the motion did not include um putting sports park in sort of an isolated area between those two things i would also be aligned with instead of the hotel doing a field expansion and then uh supportive of saying that we like camping i think primarily glamping but also including tent camping and rv camping options as well do you want to do you want to resummarize that motion then yeah i would make a motion that for focus area one we replace the hotel with a sports field expansion and we maintain rv camping and establish a glamping area that also includes a tent camping so the the motion is there a second on the motion okay so the motion would override the previous motion to vote there's a motion and second any discussion on that second the only comment i'll say is i won't support it not because i don't support fields but but because i don't think it's the right place so just so you know and i agree with that i think we're going to sandwich a field in between two different uses needs to be aggregated in with the other sports parks just to add just think more thinking on that it's essentially a like very close to both the high school fields and lila kaiser fields so in terms of where sports happen in morro bay today and for los osos kids it's much closer to the existing sports fields than anything else let me let me suggest this let me suggest a motion that we we act on the the glamping piece exclusive of the hotel site and take a separate action on just the hotel site where i think we have some divergent opinion that acceptable i think where we work we have some disagreement on what that what the hotel site ought to be used for should we vote on the motion that's on the table i really feel like it's the same i mean it's i appreciate your your efforts there but i think it's the same thing um i mean i i think if we vote on this motion you'll have some yays and some nays which is okay yeah you don't always have to all agree okay uh motion and second a second all those in favor aye no no no no moving on to focus area number two i think susanna might need some wait so sorry i'll do a roll call vote on this if that's all right chair peck yes just so it's clear for the record so can committee member wachowski yes committee member hanson yes many member donnelly yes committee member garrity no committee member luker no chair peck no so conveniently have an even number of that minute fails it fails i have a question with the with the online survey it seems like um we didn't really talk about a lot of different options that could be like people talk about the pool or the boomers activities or like now we have an open space people want some type of activity there it sounds like more than the hotel but it doesn't seem like we've really talked a lot about what that activity what makes sense like what isn't available in morro bay or the fields i'm not really perhaps a motion where we're not so prescriptive about that that one piece of property i get the feeling which we're kind of aligned on 99 of this that the glamping and rv piece of it is in agreement we are in agreement as far as the glamping and rv camping i think that you know including the possibility of a sports field is not necessarily saying that's what's going to happen there because we don't have an interested party in either one of well we actually do have an interested party in the rv which i get that and with the design it doesn't necessarily have to mean that that section is the one that goes for a field so um if we can come to the understanding that it could be used for recreational activities and overnight stays perhaps we can get to agree on that what i'm suggesting is that we not be so overly prescript ive about that and leave the opportunity for exactly what you're talking about i think there's agreement at least i think there's agreement that a hotel on on that piece of area one that we're talking about is is not supported period we'll fill in the blanks later on yeah is it right that the debate is saying whether we use b 1 or b2 to expand sports fields or use that for uh campaign expansion as well right so we could potentially table that and maybe that's one of the things that we use the additional survey data to kind of seek additional community feedback on so uh chair peck and committee so i think that's a good idea i think with the preferred alternative it's fine to have certain kind of blank spots or white holes for us to fill in later based on the survey results so when we come back to wampak in august okay so we're going to categorize this one under further study uh correct and i thought that was the easy one on focus area two uh the recommendations are wetland restor ations with trails visitors serving marine science institution resort style hotel direction on the mixed use overlay area instead of residential development and also some direction on the use of the intake building instead of use as opposed to a seafood hall one option being reserving this area for harbor and or u.s coast guard facilities i'm going to start to my left with paul as i said before in area two concept b1 seems unlikely okay so i wouldn't even consider that but what a1 shows in area two i think is what actually the coastal commission has envisioned for that area again this is all private property so we really can't dictate what may happen in the future and what may kick around but it seems like a1 would be a good area for dune restoration uh uh the the marine science institute actually got a lot of favor of the table i was at i don't know something cal pollock or do or not but that seems like it would be you know acceptable thing that would bring people here as opposed to the power plant that's there right now the residential area that never got any favor because one of the things that shows on that is the new access road and where that comes out onto um i guess quintana or wherever that's just it's not a good location in its proximity to highway one off ramp so um when the construction was going on with the pipeline for the sewer that was a that was a mess right there so that's not a good place to have an access road the intake area which really isn't called out as far as what we do there sea hall seafood hall would be for the intake area because i'm like pike's place in seattle or something like that i don't know what it would be but um it's really hard to say what would would replace that other than maybe some more docks in that location um the art installation that didn't get too much favor in our table than what we looked at and certainly the interim reuse of the power plant certainly is not something that anybody was in favor and certainly no hotel that's those are my comments andrea that's gonna be really easy for me because i agree with um i agree with everything paul said the only um additional add is that if the in terms of the intake building if that was reserved for harbor act harbor or coast guard activities that could potentially include a haul out located in that area and um you know not specifically for a haul out but it would fit in that description so other than that i'm happy mary um i felt that we had clear community feedback to not have a hotel there not have a residential area there not have the seafood hall there and then also um not strong consensus around the temporary art institution or installation so um my priorities for focus area two would be the less is more leaning into natural trails and habitat restoration i love the idea of the marine institute and i think that moribay already has great local relationships with um and i think that um i think that um i think that um some folks may know about or may not moribay yacht club hosts the cow poly sailing team and many cow poly professors live in moribay i think as part of the marine institute it also could be an interesting place um to partner with a cultural institute to recognize the local tribes and maybe you know do art installations there um and i love i would propose that we reclaim the intake building um just to have waterfront views um and get rid of the in old industrial and building okay so there's a lot of parts to this one but um area two my preference was towards concept b um as far as b2 absolutely agree with marine institute that sounds awesome um and wetlands restoration um taking in the new comments as far as like actually being able to have wetlands there that's new on me so i'll have to look into that um a long time ago for coleman park workshop we met and everybody brainstormed different ideas and somebody brought up the jack lalane exercise kind of track so if you think about like the bob jones trail um in avila how cool would it be to have like little spots for jack lalane you know sit in the chair do your sit-ups or whatever anyway a circuit that goes along and then continues on to coleman park into the rock i think that would be awesome um and then for the b5 area housing um i used to actually live really close to the river and you could hear the buzzing of of all of the um the circuit area it's kind of weird um but i could be amenable if it's just a small little strip that borders other houses absolutely a road that somewhere on this property there needs to be a good access road and as far as input about the fishermen um from the about the food hall so um we've talked about it especially during covid um talked to different fishermen about how they would want to get their fish to from the boats to the um sales and a lot of them just aren't people people people persons um and you know if you put together a food hall where they have to be there you know from nine to to five it's just going to sit there vacant um that's my concern um what they did bring up a lot to me is a distribution facility so in other words take it pack it distribute it um so a larger facility is is a possibility um that i would be open to uh and then i did talk to um munson chris munson our harbor director and he talked about possibly the coast guard going to the outtake intake building and then them moving into the coast guard and i think that that sounds great um i do know that this would not revenue generate any revenue but because we've always wanted a haul out and it's never happened because it's not a viable thing perhaps if we give the coast guard because they only pay a dollar um give them that property and part of the construction of them moving into that other area is to create a haul out i think that's a win-win um other than that if none of those um pan out um i would definitely say any kind of company business that can actually utilize that area for packing light industrial or you know really take take anything from more of an industry but not like a giant industry so i'd just still be open open to utilizing it that way um hotel and housing is there new information that i don't know about regarding pg needs um deed restrictions um about a year ago i asked eric who is the community uh spokesperson and his response is that it was never going to get lifted so i don 't know how we can plan um based on i want to i want to plan on something that's actually achie vable so um and then i'm really negative on the the resorts they tend to be their own ecosystem if that happens it will be mostly benefit to that business yes the city will get tot but will not add a bunch to existing businesses who will who could benefit from a day use activity in the area like a museum sports complex or aquarium let's get our occupancy up before we started start adding more beds with no heads for this area um i agree that it seemed like all the tables were saying sort of not a large-scale hotel there that would be better to do um i agree with uh like an environmental focus type center building off of um the beautiful area that we're at here cultural center um day use activities i think we really need to think about families whether it's the center or all throughout the whole project like how do we make it more family friendly so people spend more time here um i like the idea of you know some type of habitat or wetland restoration um i think it doesn't have to be like exactly one or the other i think maybe more leaning towards uh b1 but yeah it doesn't have to have like a bunch of like lagoons everywhere like in terms of like the water i think it could be an overflow um area for moro creek to provide flood protection for the our fee parking clamping area i like the idea of trails like for families it offers a lot of like safety to allow their kids like run around on trails like the mercadero like they still have to stay on the sidewalk and it's nice for kids to have areas where they can kind of um not have a vehicle access close by so they can have a more enjoyable experience on the trails and it does seem like an access road would be helpful like just it just gets like jammed up right there like it would be nice but yeah i haven't thought about that too hard but it does seem like if it's possible to get a road that might be helpful unless we think that that would like draw people just to like that one area and like away from the main and mercadero for businesses thank you agree with much of what's been commented on I guess one of the pieces I want to do you know think about is that some of the property that we're designing is the city's property this is somebody else's property a concern I have about the the Vistra property the developed part of the Vista property is that it's uncertain when that might become available I know the city has a MOU that at some point it's going to be demolished but is one of the comments that I heard at the workshop was that's 30 to 50 years off that's that thing's only going to come down when it starts falling down and they're required to take it down so I have a hesitation to put a key part of our plan on somebody else's property that requires substantial expense and demolition in reading some of the background information the the footing in the in the foundation for the power hall is 10 to 15 feet deep it's a lot of concrete and for the stacks it's probably above 70 feet of depth so there's some work to do there I noted the staff's recommendation and comment that the the old tank farm site I think it's 25 30 acres the tank farm site was kind of an Esha property all the biological information from the Vist ra EIR doesn't say that and I think that's a little bit of a stretch to just simply say because coastal commission made an offhand comment comment in a comment letter it's all of a sudden 25 acres of Esha it's not unfortunately we have a general plan that designates that for visitors serving commercial that's been affirmed by a 24 and I think we're gonna have to have just deal with the difficult issue so how do we implement that that within all those constraints that there's some areas there that ought to be simply converted back into low density maybe we have some bungalows back there I've heard comments about maybe that's a tent area maybe it's but but from my standpoint I can't see where we should just assume that it's going to be turned back to nature I also think it's it's presumptuous to assume that we're gonna have public trails back there when that would require somebody the city acquiring that if that's part of the program let's just say so but that's what would be required on the power plant on the intake building that's zone CF I think it's much too big for the what I conceived as the seafood market in my mind that seafood market was a way for fishermen to get a bigger percentage of the consumers dollar comment that Charisse made about for those who want to sell directly to the public like they've been doing with crab and salmon fairly recently we have some fishermen that go all the way to Santa Barbara to get a bigger share that the consumers dollar how do we do that and how big is that it may be only as big as a what you might have before a small-scale farmers market where they have tables and a drain and they're they're not there most of the time it can be reprogrammed for something else but it gives them an opportunity to do that what's unclear to me is whether we should simply be facilitating the off-boat sales do we we have an area where these guys can pull in sell their crab like like they've done over the past couple weeks or their salmon and not create a building so in that piece it's kind of unclear to me but with respect regard with area number two I think the the intake building is is better used for I think the kinds of things that Paul talked about maybe it is the haul out facility maybe it is an additional dock I don't think unless there is some other initiative that we don't know about I don't think presuming that the city in the heart and the coast guard are going to go there is part of our plan again that's own commercial fishing and not quite sure where that one stands so with regards to the resort hotel where the power plant is currently located it from what the consultant says you know their indication is that's maybe 125 150 room facility which would be a speck in the middle of that it's very small maybe it belongs someplace else but if that's a lot of people are going to be a small group of people who are going to go to the hospital but if that's something we need to fill a gap in our hospitality offerings it ain't gonna happen there I support the the idea of a marine science institute or something like that and maybe we just need to be creative about how we allow something like that that is waterfront oriented Marine Science Institute or something like that. And maybe we just need to be creative about how we allow something like that that is waterfront-oriented. It's employment-generating. It's not commercial. So how do we make those two things work? With regards to the mixed-use area off Scott Street, I think there is a plan that we can put together that would be compatible with the other side of the street. I think there's a way we can sort of mirror the development on the opposite side of Scott. I don't think we can do that at 15 units to the acre. And maybe that's a zoning ordinance amendment we can look at so that maybe it's simply a mirror image. Maybe it's duplexes and triplexes. But I think what I saw on the plans scared me away because they look like three- and four-story apartment buildings that probably are out of character with that specific area. So what scares me more than that is putting a sensorial type of development in that area and just impacting that as people come to view that at night while people are trying to go to bed and get some sleep. Personally, I don't support that concept, that art installation concept, because I think it attracts people. That's the reason it's there, so people can go and look at it. And Sensoria was tremendously successful beyond their wild est dreams because people want to go and see that. Maybe there's a spot for that that we can identify, but I don't think that's the spot for it. But I understand the pushback on the residential development because it appeared to be, I'll use the word, massive relative to the neighborhood. It didn't fit. Nevertheless, the frontage of Scott is identified in the zoning ordinance as a mixed-use area if it can be done with the visitor-ser ving commercial. So that one, to me, is, I've got some, it's unclear how we proceed with that. I'll be interested in my colleagues' comments on a motion. To me, this one is a subcommittee further study item, unless others see it more clearly than I do. I think that we got maybe some clarity that we could vote on. I thought that I potentially heard consensus on not including a resort-style hotel and including a wetlands restoration with trails and including a marine science institute as well as a cultural institute. I concur with that. In the intake building, any thoughts on that? What I heard about the intake building was primarily interest in potential fishing slash haul-out facilities or just reclaiming that space for waterfront views and access. That seems good. I mean, for a start. I mean, the fact that we don't own it is obviously a big deal, but I also don't, we don't want to leave it as a blank in the plan. Mm-hmm. Because who knows, maybe they'll give it to us tomorrow. Is that in the form of a motion, Mary? Yes. Should I do that again? Yes. Should I do that again? Yes. Should I do that again? Sure. So I motion to move forward with, for focus area two, including wetlands restoration and trails for consideration, including marine sciences institute as well as a cultural institute, removing a resort-style hotel from consideration and including for the intake area, a fishing haul-out or reclamation for waterfront access for consideration? I'll second that. Any discussion on the motion? Therese? Do we want to say anything about an access road? Good point. The access road that you're referring to is the one that sort of goes behind and connects back to Quintana, Maine. Quintana, Maine. Yeah. I think that's a good point as part of a global discussion, I think, on circulation. We need more than one access. We need more than Beach Street to get in and out of there. I believe it's also on the plans for that property right now, or a requirement from any development on that property , is to have an access road right now. So how would we modify the motion if we wanted to, to address that question? Just say include access road. Or the potential of? Potential of an access road. Okay. Just, Chair Peck, one other consideration or thought is when we get to the street-end parking topic, we anticipate there could be a subcommittee form to review circulation and parking, and this question of access to the power plant property might be looked at by that subcommittee. So just another idea to consider. Okay. That's helpful. Since we're in discussion, I'll also say that this area just has a wealth of parking, you know, more than you'd ever want. So there needs to be some restructuring of it, but, you know, that recommendation really helps. So we've got a motion and a second. Did you accept that amendment as a potential of an access? Are we leaving? Yes. Okay. Perfect. Motion and second as amended. Further discussion? All those in favor? Aye. Aye. Aye. Aye. Focus area number three, T Pierce Fisherman work area. The staff recommendations are to expand the Maritime Museum in its current location, realign Embarcadero Road as shown in concept B. Expand Ot ter Viewing Area. Expand the vessel to consumer sales. New pedestrian order in public space. And include the boat haul out. Why don't we start with Paul again? Yeah. You know, the expanding the Maritime Museum is my understanding. It's kind of already in the works. It would be silly to try to really put it like in the concept B. But the thing that we've always kicked around about is the parking situation down there. And anything that would eliminate parking would not be a good idea. One of the things that came up at our table was the entrance to Front Street off of Beach Street. And they said something about closing that off. I use that all the time to get in that area. I'd like to go to the bakery or whatnot. And then if that was closed off and then the way they showed the parking out in Ohio, you would back into these spots if you can't get in like you do right now. And so the only thing that I really agree with on focus area three is the expanded Maritime Museum. All these other things, I'm not in favor of it all. In fact, the realignment in Embarcadero, you know, years ago it was a four lane board. And then we eliminated the two lanes on each side to allow parking. And now with the alignment under B2, it eliminates that. So again, we're losing parking where we need it most. So again, the only thing I can agree with is expand the Mar itime Museum. Andrea? Definitely no relocation of the Maritime Museum. They came forward with a plan a couple meetings ago that looked wonderful. So certainly leave them where they are and let them expand. Again, if there's a boat haul out that doesn't fall through or go through with focus area three, two, I think it's indicated on focus area three. So at some point, some boat haul out somewhere. And then I just had a note to myself why I realigned the Embarcadero. And I'm generally not in favor of that. And I think just real quickly for clarity, when I'm talking about a boat haul out, I'm also talking about a corresponding boat yard, not just boat storage, a boat yard. If you go down to Port San Luis, their boat yard is backed up months and months and months because people can't haul out. So I think it's a combination. And I think that definitely in past years we've looked at that. And I think it is a viable option, but it has to go all together. So those are my comments. Thanks. Thank you. Mary? I'm not in favor of relocating the Maritime Museum, but am in favor of expanding it per their plan. I do not think we should include a plan to realign the Emb arcadero. I don't hear residents complaining about that. And I think it's a waste of money. I don't think that we should expand the otter viewing area. I think there's plenty of existing space to see the otters and don't think we need to spend money on that. I'm supportive of expanding vessel to consumer sales. I think that's a good question. I think that's a good question. I think that's a good question. I think that's a good question. I think that's a good question. I think that's a good question. I think that's a good question. I think that's a good question. I think that's a good question. I think that's a good question. I think that's a good question. I think that's a good question. I think that's a good question. I think that's a good question. I think that's a good question. I think that's a good question. I think that's a good question. I think that's a good question. I think that's a good question. I think that's a good question. I think that's a good question. I think that's a good question. I think that's a good question. I think that's a good question. I think that's a good question. I think that's a good question. 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My particular thing is that if you could just get closer to this, that sounds good and kind of truncate where the parking goes in and parking goes out because a lot of in lets and a lot of exits is also the thing that affects pedestrian flow. So if we keep the same amount of parking but increase pedestrian flow as well as less turns there, there's five different ways that you can go on that intersection, which causes confusion and delay like Thomas. And so who's going to pay for all of that and how long is it going to take? That's a whole nother story. So I'm not super specific either way. Boat haul out. I would not suggest it for this area. I did talk with Kathy Novak a lot and she always advocated for the outtake building just because of the type of habitat that is around there. There's really limited lower concentration of eel grass in that area and it's a direct pathway across the street. There's also if you move the boat haul out area over there, you're going to have to like change the actual base that the boats go on because boats can be extremely heavy. And so to have them go out and turn and then go again and then what about power lines. So the intake building to me, if you're going to talk boat haul out, I would say in the other area. And that's what I have for that area. Thank you. Carolyn? Carolyn? I would just, I don't, in terms of where the road is, I think, again, just going back to circulation with like families and things like that, like trying to improve that, but I'm not sure that necessarily needs to happen. I think Surf Street drainage, there's a importance of having like stormwater treatment, sort of like there's a lot of pipes that go straight from, you know, these communities and just go straight out to the bay, especially like during a rain event, there's just like polluted water going straight out to the bay. So there's a number of key areas that need to be addressed and Surf Street, I know is one of them. And there's conceptual plans that the city had a few years ago to do that, kind of where Surf Street connects with the Maritime Museum. I support expansion of the Maritime Museum in general, just to kind of, I think that's, yeah, a key area that people visit. And in terms of the otter viewing area, my only concern was like, you know, maybe talking to like the Sea Otter Savvy folks, that nonprofit, making sure that we don't create sort of like, some type of disturbance for the otters in not meaning to, you know, like trying to appreciate them. But like, if we somehow make it into like a park or like a key gathering area, and then that could like, maybe make all the otters go away and it's not an otter viewing area anymore. So just something to consider. Thank you. My comments are, I support the expansion of the Maritime Museum in its current location. I think being closer to the street is better. There are some, we need to also redesign that parking lot to get better yield. I agree with some previous comments and some written comments that, that should include gaining better, better utilization out of what we call the boat storage lot right now. At times we've used that for event parking. It's been really, really helpful. I think in terms of the, you know, the spillover from area two for me is that the best area for a road between Highway one, Quintana, Maine to Embarcadero is to land right in front of Harbor hut. Just because of the depth of the access piece there. And to me, um, I have a hard time sort of figuring out where to kind of put all those things until I see how that connection would land. Um, making that connection requires Vistra's participation or city condemnation. So getting that secondary connection out of the area requires the cooperation of, uh, them as well as any extension over Park street in that area. The only one that doesn't is the extension of the Embarcad ero across the existing pedestrian bridge that was designed to handle vehicles. Uh, handle vehicles. So, you know, to me, we need to plan for that because I don 't think we know whether we need one more connection or two more connections. So let's figure out where it is and let the, uh, let the, the maritime museum sort of adapt to that. But, but to me, I don't want to make a commitment that we need to put it right here and then finally find out that was the better place for a road or circulation. So I don't want to prejudge how all that works out because I think more work needs to be done on that. I think realigning the Embarcadero, um, don't quite know where that came from, but, uh, designing roads is a, is a, is a, is a science. They're heavy restrictions. What we need to know is what that intersection of beach and Embarcadero looks like. How many left turn lanes we need, how many right turn lanes we need. The three of those legs of that intersect, the corners are constrained one by a tall hill and other by improvements. And how do we sort of squeeze everything in there? And, um, having the access roads, the, uh, um, the front street access that close to an intersection couldn't be done, uh, if you were to build it new today. So to me, the, uh, uh, the realignment of the Embarcadero is probably a red herring. What we need to focus on, what does that intersection need to look like to support the traffic that's going to go through there and make better connections for the, for pedestrians and bicyclists? There's a bicycle route that comes through there. And then once we sort of figured that out, how do we get them through beach and main that was identified as a constraint and impacted intersection in the general plan. So let's figure out how we're going to get people in and out of all these facilities that we're going to be putting in there. Um, I think it's also helpful to understand and sort of builds on what Paul said about the, uh, the cross section for the Embarcadero. It's unclear to me, you know, how all these things are going to, are we going to keep a parallel parking on the Embarcadero? Where do we put the bike path? Where do we put the pedestrian? If you're on the east side of the Embarcadero near the power plant, there's parking there, but there's no sidewalk to get off onto. And we heard from a previous commentator that, uh, handic apped people in their wheelchairs, they, they, they're in the traffic lane. They're trying to book it on the traffic lane. And so we need a really clear cross section of what that's going to look like. And so once we figure that out and figure out what the intersection looks like, I think the rest of it sort of falls together, but we're not dealing with a blank canvas here. So in terms of the realignment of the Embarcadero, I think that's maybe answering a question that isn't a question, but let's focus on those circulation things that, uh, that we really need to answer. Um, I agree with the, my colleagues comments about, about the, the boat haul out facility. I think we've made some decisions to push it farther down. Uh, I think that, uh, I do support the expansion of the outer viewing area just because there's a lot of activity there. I think where it's identified on these graphics is incorrect. It is closer to the, the, the, the South T pier itself, what they call the nursery area. That's, that's where they congregate. And that sidewalk may need to be expanded a little bit to accommodate the traffic that's, that's there. Um, also in terms of the vessel, the community, the consumer sales, I think that's a great location for it. The little piece of property in between the South T pier and the Barkadero, that's actually zone VSC. You could actually do something there that sort of builds on that without getting just some commercial fishing issues . Um, so, you know, for me also for parking, there is lots of parking in this area. Some of it is mismanaged. We have longterm parkers parking right in front of businesses that require short term parking. Uh, whether that's the people who go out on day boats or commercial fishermen, they need to come in and service their boats. Um, I think there needs to be some understanding of where the, where the longterm parkers need to go. And where the short term parkers need to go because if Mark was here, he'd say that he gets people parking in front of his store for six hours because they're out catching fish. Um, we need to do a better job of sort of managing that supply, but there is plenty of supply out there. Uh, so for me, this is one that, uh, really would benefit from getting a subcommittee together. These folks, uh, like I said, I think a lot of the pieces are there. Um, I think there's a comment about the boat haul out being in conflict with the outer viewing area is probably correct , but we could actually look at opportunities to maybe expand some outdoor seating for stacks into the beach street street end and provide some opportunity for that. But certainly that street end needs to go. But I think that this is one where I think all the ideas are sort of floating around that, that in the ether, but they need to sort of be put down on paper. So we can figure that out. Um, so for me, this is one that where I'd suggest that we, uh, take the comments that committee has made so far and appoint, uh, uh, uh, three or four people, three people to, to work on it with staff and it's a consultant. Uh, I just have one question for staff. In either concept a or concept beef, is there a net loss and parking from what's there right now? So we've not done those calculations at this point. Um, I just want to put a question on the staff and the consultant. Um, I just want to flag Steve. I unfortunately have to leave at 525. So, um, if we're going to do a subcommittee on that one, I 'm just wondering if I could share thoughts on focus area for potentially first, because I have, unfortunately have a hard stop. Fair. So my recommendation on this is that we, we actually form a subcommittee. That would be the motion I'd make. And Cherie sounds like you have an interest in this. I do too. Anybody else? I would be wondering if we could do a motion for the things where I think we have alignment. I thought I heard a line. I thought I heard alignment on, uh, support for not reloc ating the maritime museum, but supporting, expanding it, expanding it alignment on, uh, not prioritizing, realigning the Embarcadero. And I thought I also heard, uh, support for expanding vessel to consumer sales. If that's right, then maybe we give that guidance and then create a subcommittee to explore, uh, the boat haul out and whether focus area two or three potentially makes more sense for prioritization, as well as, um, prioritizing exploration of traffic, neat traffic and pedestrian needs in the area and the impacts of expanding otter viewing on the otter population. So come up with the items that we've agreed upon and appoint the committee to work on that. That's fine. Okay. I make a motion to, uh, provide guidance that the committee supports expansion of the maritime museum, but not reloc ation. The committee doesn't want the real realignment of the Emb arcadero and the committee supports expanding vessel to consumer sales. And the committee also recommends forming a subcommittee to explore a vehicle and pedestrian traffic needs, the best place for the boat haul out and the impact of expanding ot ter viewing on the otter population. I'll second that. Any discussion on the motion? I'll do. Stormwater or is that something else? Can we add some sort of, since that is like one of the only area on the Embarcadero that's identified with a conceptual plan for stormwater? Is that something that we can add there? Is that like something that you would do later with that space where surf street goes into the, surf street goes into the Embarcadero? So first any, any future development or, um, changes to the circulation, circulation system there would, um, trigger stormwater requirements. Um, per the state that would have to be complied with. Um, with that said, if there's interest on the WAMPAC at looking at other stormwater concepts, that's something that could be, um, definitely directed to the subcommittee. Um, I like, I like, I like the question. Um, is there any, any, any, any, any, any, any future development or, um, uh, changes to the circulation, circulation system there would, um, trigger stormwater requirements, um, per the state that would have to be compl ied with. Um, with that said, if there's interest on the WAMPAC at looking at other stormwater concepts, that's something that could be, um, definitely directed to the subcommittee. Um, I like, I liked all your motion. That was just something that maybe that's the committee can just look at and see if there's space. It's a very small space, but it was public seating with like a stormwater management right at the end of surf street. Um, it wouldn't take up a lot of space, but it would be nice to like. I'd amend the motion to add that the subcommittee also discussed, uh, stormwater management. And I feel like it goes without saying, but since it's on this plan, if we can also say that we are pro new pedestrian. Connection from surf street to just. Yeah. I agree. Modified motion modified sec second on the modified motion. All those in favor. Aye. Aye. Aye. And, uh, next item appointment of a subcommittee to work out the details. I'd be interested in doing that myself. Uh, Sharice. Others. Paul. Paul. Sure. Okay. You need a motion on that too. Who were the, who were the members on the subcommittee? Charice, me. No, thank you. No, no, no subcommittee for you. Another one. Not this one. Okay. Paul me, anybody else. No, Mary's gonna be gone. I'm happy to share on that stormwater one. That's the only thing I can really contribute, but I'm happy to share the designs for that. All right. Okay. And no motion is needed on that. We have a subcommittee. We just can't have four. Yep. Focus area number three, four rather. And we have a subcommittee. We have a subcommittee. We have a subcommittee. We have a subcommittee. So we have a subcommittee. So we have a subcommittee. So we do. We have a subcommittee. So we have a subcommittee. So we have a subcommittee. So we have a subcommittee. And we have a subcommittee. And we have a subcommittee. And we have a subcommittee. And we have a subcommittee. And we have a subcommittee. And we have a subcommittee. So we have a subcommittee. And we have a subcommittee. And we have a subcommittee. or four rather. Staff recommendations are for small-scale redevelopment, reorient Centennial Parkway stairs, relocate public restroom into new development, and pedestrian-oriented public spaces at street ends. Start with Mary's and she's got to go. Thank you. For focus area for, based on community feedback, I think I would not like a redevelopment of Centennial Parkway and would just like to focus on keeping, sorry, Market Plaza clean and safe. And in terms of the street end parking, I would recommend that we don't remove any street end parking and make the Coastal Commission overrule what local residents want. If that's what they choose to do. And for the question regarding if there was a parking structure, where would you want it? If we were forced to add a parking structure, I do think focus area to B5 would be my preferred location. Sorry, I'm just trying to find out where B5 is. It was where the residential, it was the residential place for, yeah. Okay, I'll look for it. Okay. So, the first thing that, as far as, oh, thank you. I believe that this area would be prime need for a parking structure with small street front shops and possibly a convention center on the top. If you go every block of the Embarcadero and you look at parking spaces per block, this is like number two of the lowest percentage of parking spaces. It's the highest concentration of businesses. And if this, if the current parking area goes away, even if it's two floors, those two floors would be utilized by whatever business was built on that space. So, I have deep concerns about that not actually matching the amount that is already there because it would increase the need for it by the businesses that are on it. If you look at all my outreach, going to the highest producing restaurants, coincidentally, on the Embarcadero, coincidentally, have the highest concentration of parking spaces within 100 feet. And even those businesses, owners of those businesses, vigilantly protect every single parking space. So, to me, I think it would be a good thing to more or less have the skeleton of the building be a garage with the exterior being retail. It would, and then if they could be a hotel version or a small hotel in that area, the most lucrative rooms are the ones with views. So, I wouldn't want any hotel to go in there and have 50 to 100 rooms, but 80, you know, 40 to 80 of them are windowless or don't have a view of the rock. So, if there is a way to do a small scale hotel that maximized the location and the views from that location, I think you could have a win-win situation with parking and nice hotel rooms that would benefit the owner. And that's what I have for area four. Okay, yeah, I don't have much area for, or we are also talking about the street at the same time. Are you going to have a separate section for that? We can go ahead and talk about them concurrently. Okay. Okay. It seems like most of the comments I've heard at like the public meeting was to not do too many changes. I think we can keep the stairway as is. I agree, kind of keeping it clean, maybe like spruce it up, but not like overhaul it. In terms of like the park ends, I think, I think parking is important. I would say if we do take over like one of the spaces and make it more of like a family nature-based play space, something that like people are getting like takeout and like going to and like their kids can like play and have time to like sit, enjoy the bay and eat there, would be nice and make it like a pilot. You know, like our residents were like food, food trucks or something like that, where you like, maybe residents are coming down and maybe that's like on non-weekend days or something like that. So, um, I think that'd be nice, but I think it seems like piloting something before you like do something to like all the different street ends. Cause I think it's still unclear on like what the public wants for those areas. If, if they are converted to public spaces, what, what exactly, um, does that look like? So maybe piloting something and then, um, taking that feedback before there's more changes. So, um, that's all I have. Paul? As far as the Centennial Stairway, I believe the city already has a plan for that. And I don't know if that's supposed to be incorporated with what the Libertine is supposed to do with this new request for proposals that's out. This is like what the third time we request for proposals for the redevelopment of the Libertine. And so I don't know if they're supposed to incorporate part of that design into it, the Centennial Stairway. So there was a concept that was prepared several years ago for redeveloping the stairway. That concept was never officially adopted into any type of plan. Okay. It was really just a rendering of what that could look like . And again, it wasn't incorporated into any planning documents. Okay. That's good to know. Um, one of the things that it did show on that plan was that the front street would have, going south, would have terminated and somehow turn around. And I don't know how that's possible. Rather than coming out to the Embarcadero like it does right now. Um, the idea of this, I don't know how this, uh, full service hotel idea got thrown in there other than they say that the other one's better than that. But it seems to me that, um, the flat roof is not a good fit. I think when we do our design guidelines in October, we can talk about that where the A2 version, which has the type of roof designs that you normally see down in Embarcadero would be better. And then as far as the street ends, I know that the plan Morro Bay document, the general plan speaks about, uh, the city shall conduct a study to consolidate parking in essence, to mitigate the loss. For placing these, uh, plazas or whatever it is that you plan for these locations. Uh, but under the coastal act, it says that it has to be, to be considered coastal dependent, uh, dependent. It has to be near the sea to be able to function. They don't need to be near the sea, but the parking can be argued that it's necessary for the businesses that are there. So this idea of the street end parkings and why we keep talking about it, it just doesn't fly with me. I don't know what the coastal commission thinks about it, but it's the coastal act that says that it to be coastal dependent. It has to be near the sea to function. They don't need to be near the sea to function. Those are my comments. Um, definitely not in favor of a large scale hotel, maybe a small scale, depending on what small scale means. Um, concerned about the centennial stairway. There's a lot of history there was that was built out of a redwood tank, uh, redwood tank wood from the water tanks back in the day in Morro Bay. If you flip those treads around there, they were engraved with or routed with names of people that gave money for that stairway. So that's going to be hard to see that go. If it goes, it's pretty iconic. Um, I am not in favor of a parking garage. Really, I'm not in favor of a parking garage anywhere in Morro Bay. I think that just flies in the face of our character. Even though San Luis has made a beautiful parking garage is kind of an oxymoron in my opinion. Um, they're all pretty ugly. Um, the same. Uh, and then I hate to see more, um, loss of parking for, on the street ends of the Embarcadero. Um, I think that's it. Okay. I think from my standpoint, uh, I think that's it. From my standpoint, uh, I too support the small scale rede velopment. Uh, the larger scale, I think looked larger than it really was because there's a topography in there. That's actually, you can build that into a hill. Um, because the, uh, the, the top elevation doesn't need, need to be any higher than the existing building on Market Street. Uh, nevertheless, um, I think that, uh, the concept for small scale redevelopment that was shown in the packet actually showed what I would consider more of a suburban style development with the parking in front and the, um, the retail in the back. Uh, and the concern I'd have for that is that it'd be better to push the retail to the street. Uh, but, uh, also that at some point, if you ever wanted to put a parking deck, you couldn't put it on the parking lot in between the Embarcadero and the units. Uh, and it's, I think there's a feasible alternative longer term when that such project comes in is you could have parking behind the small scale redevelopment and then provide a parking deck that would have, have access from Pacific onto the deck. So essentially the deck would be hidden. You wouldn't be worried about the, uh, uh, it's viewing, but, um, and to, you know, amplify the idea that the reason we're talking about this is because we, we don't have enough, uh, meeting room, meeting space rooms. And I think what I saw on the small scale redevelopment was maybe simply a mirror image of what's across the street, whether it's, uh, your building, Cherise, or if that's what we're talking about, I don't think that's part of what I propose. And maybe that's just the way the building's been skinned in the architecture is that maybe it looks like it's individual buildings. Maybe it's a, it's one big building. Um, but I think the massing that was shown in there was acceptable to me. The parking needs to be worked out. I'd say in, in terms of, uh, I think from day one, we've talked about no net loss of parking. I think this came up on street ends. The, the 781, uh, Embarcadero piece or the, the market street piece that has two buildings on it that should have come down a long time ago. And just doing my own layout for that parking space. If we took those out, we could pick up 26 parking spaces with just sort of a conventional herringbone diagonal parking design. So I think whatever, what we can do in the short term, if we want to implement some of the street ends and provide better lateral access, which is the direction from the general plan. It's not eliminate all parking is provide lateral access. Coastal commission may be interpreting that as that we don 't want any parking close to the water, but we can provide better lateral access and we can probably lose a few spaces there, but we can pick them up on the other side of the street. Or we can pick them up in diagonal parking on some of the approach streets and we can pick them up on market. So, uh, I don't want to be backed into a corner and say, well, if you don't like that, we have to build a parking structure someplace. I don't think we do. Uh, I think we can have a net gain, uh, by just doing some low cost re-striping, some demolition in the existing lot. You know, one of those is a laundry from the RV park that used to be there a long time ago, but you know, that's, that's pretty low hanging fruit to increase the parking supply significantly. Uh, I don't disagree with Sharice's comment that, uh, it's, it's difficult there and, uh, parking up on market street doesn't substitute for parking down at the barcadero level. I think that's where we want to park. Um, I think in general, what I see is we've kind of given up on the idea that maybe some one way diagonal parking on, uh, Embarcadero won't work. I don't believe that widening the sidewalk will result in, uh, less parking, but until we get into the weeds about here, here's the parking supply and here's where we're going to pick. We're going to expand parking spaces before we lose them over here. I don't think we have a useful discussion on that. So I guess from my standpoint, I think it sounds like everybody's sort of okay with the small scale redevelopment . Um, I don't think there's any support for reorienting Cent ennial Plaza stairs. Why do it? Um, we didn't talk about the public restroom being, uh, relocated. Um, Pullman Park has proven that that's a pretty expensive, uh, that's pretty expensive stuff. Uh, let's take what we have and improve it if we can and then deal with the, uh, uh, public oriented spaces at the street end. So, you know, for me, I think we've got some areas that we can agree upon. Um, the street ends and how that comes out. I think that's something for another discussion, but be glad to hear if there's a motion from the committee members about those, those few items, a small scale redevelopment, not or not modifying Centennial Plaza, keeping the rest rooms where they are. Um, those three items is there. Can I do a so moved on that? Yes. That was lovely. Yes. That was lovely. Your second. I second ahead. Okay. All those in favor. No. Aye. Aye. Can I hear the motion again? We're supporting small scale redevelopment. We're not reorienting Centennial Plaza and we're not reloc ating the public restrooms. I agree with that. Aye. So, four to one, right? Okay. Last item is -- Sorry, Mr. -- Yeah. Staying is that -- or go ahead. Just to, um, to confirm. So, the motion was not to reorient, reorient the stairs. Was it also not to change the plaza, Centennial Plaza? Keep -- I think there's -- there's support for -- yes. I think that's right. I think that's right. Okay. Thank you. Um, as far as discussing that, um, uh, as far as circulation and parking, can we -- just to move forward, I know we can talk about it after, but can we, um, look at the fact that we should start a subcommittee for those things? Okay. I think where I was going to put that one, Charisse, is that the street ends is going to sort of trigger a parking discussion and a circulation discussion, and the director has said maybe that's just a subcommittee in itself. Is that correct? Yes. Yep. So, we can look at streets and parking sort of comprehensively and find the folks that want to work on that. Um, area four, uh, street ends. I guess I'll just ask, is there anything else we need to say about that? Uh, from -- from my standpoint, I'm kind of okay with a couple or three -- a couple of them being converted into plazas. Um, you know, the area over by Giovanni's is just impacted. Expanding Tidelands Park would be a good idea. Uh, the, uh, Beach Street, uh, some conversion there. But I don't want to say, well, we're okay with that and sort of move that along without talking about the parking discussion in detail. I think, I'm real clear, we need to make sure that before we lose this parking space, we have a replacement already. So, I think that, for me, that's important. So, we're not going to take any action on that tonight, but we are going to, um, um, have a committee. Yes, we have a committee. Okay. Thank you. And who would like to be on that committee? We just don't want to do it. So, the motion would be, if you work for Charisse and I and Paul to work with staff on parking analysis and the circulation analysis, um, and I suppose that'll be over the next four to six weeks or what's your expectation on that? Yes, that's correct. Um, next four to six weeks. Okay. Well, it would be through, let's see, um, probably second half of, well, the month of July. Okay. So, yeah. Okay. Four to six weeks. All right. You'll let us know. And I would like to request that that be staff attended. And if we could possibly have Joe, who is the circulation person be present, that would be. I missed the first half of your sentence. I'm so sorry. Oh, I would like, I would like to request that this sub committee be staff assisted, um, and, um, request that Joe, who is our contractor for circulation be present. Um, I think that was kind of the expectation is we would work with staff and staff would provide the, the technical analysis. We wouldn't be coming up with a parallel plan. So if I may, we will have to, um, do some thinking about the timing on that because if we're coming back to WAMPAC, um, first week of, of August, that doesn't give place works a lot of time to, um, incorporate what the subcommittee comes up with into a preferred alternative. Um, my recommendation would be that we, we have our first subcommittee meeting, um, as soon as soon as possible probably in the next, next week or two. Um, so just, uh, I guess set expectations. Um, Amy just reminded me that we're gonna, it's gonna be a tight turnaround for that. So we'll just get that started as soon as possible. Um, and of course staff will be in those meetings. I would even recommend having some in-person meetings at city hall to, um, get everything out on the table together. Do we need a motion on that? No, we have the direction, thanks. Thank you. Um, I think that's about it. And before we adjourn, any final words of-- I just think that was a very productive meeting. So thank you very much for working through all these difficult, um, questions. Okay, thank you. Motion to adjourn? Second. Second. All those in favor, aye. Aye. All right. Okay. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you.

Thank you. Thank you. Thank you. Thank you. Good evening, everyone. Thank you for joining us for the city council meeting, city of Morro Bay. Let the minutes reflect. All council members are present. And we will start with the Pledge of Allegiance. And I'll ask our city clerk to lead us, please. I pledge allegiance to the flag of the United States of America and to the republic for which it stands, one nation, under God, indivisible, with liberty and justice for all. Thank you, everyone, again, for joining us. We will move into our report. And I will turn it over to the city attorney. Thank you, Mr. Stack. Good evening, mayor, council members, and members of the public. The city council did not meet in closed session since the last regular meeting. Thank you, Mr. Stack. Thank you, Mr. Stack. With that, we will move on to mayor and council member reports, announcements, and presentations. I'm going to kick off tonight and then pass it down. A lot that was going on the last two weeks since I saw you all. We, myself, the city manager and council member Lafay, attended a conference down in Newport Beach. It's the same one similar to what we go to Washington, D.C. for every year, lobbying for our dredging funds. This one wasn't as much lobbying as it was understanding the infrastructure, the budgeting, and where the federal government is on our budgeting right now with our harbor needs. So it was very informative. I'm sure that there will be some more shared from the city manager and council member Lafay. We had a lot of activities going on the last few weeks. I was able to pop into some of them. There was safe boating day that was done with the harbor department, the friends of the harbor department and the coast guard, and council member Lafay was down there. It was a little blustery, but it looked like it was going good. The fire department, Moral Bay fire department, hosted an open house. I saw a lot of faces there, so hopefully you were able to make it by. And also Public Works was there showcasing some of their new items and equipment. Pirate and Mermaid Parade. I want to do a shout-out to Dockside for being a sponsor every year and the rec department. And I had the opportunity to attend Armed Forces Day down at the Maritime Museum. We had a waterfront master plan workshop that was very well attended. I know there was a lot of conflicting things going on, but that was last Monday night. And I had about 40 people show up to be a part of that. I think all of the council met with visits, Slocal, or is meeting with them just to get an update on the tourism in California and what the projections are with Highway 1 open now and the World Cup coming. So a lot of things going on in that realm. Also attended the Lost at Sea Memorial on Memorial Day yesterday up in Cayucos. And Trudy O'Brien from our Morro Bay Commercial Fishermen's Association is part of that, along with Cayucos and Morro Bay Rotary and Lions Clubs. A beautiful day up there and very moving to remember those who served and gave for us. Lastly, I want to remind everyone we have an opening right now on our Citizens Finance Committee. If you're interested in volunteering and being a part of the advisory boards, please go to the city website and look at the information and turn in an application. With that, I will go to my right to Council Member Landrum. Well, I think you covered it, everything that there possibly could be. Although I did attend the Public Works Advisory Board meeting last week, as well as the standing meeting with Friends of Morro Elementary, and I'll keep it short. Council Member Le Fay. Yes, thank you, Mayor. I also attended C-Mac, and what I gained out of it is the logistics that it takes to dredge our harbor. And we're going up against Port of Long Beach, San Pedro, Oakland, San Diego, that has staffs of 10 to 20 people doing their budgeting and their lobbying to get their ports dredged. And we here at Little City of Morro Bay have, you know, a very limited staff, and we still have to do the same type of due diligence. And I also learned a lot from the vendors on cubic yards. And one of the projects that I'm working on is the Back Bay Marina dredge. And we made some pretty good progress, and I learned a lot about that, too. So hopefully some good news will come in the future. But I was very appreciative to attend that with the city manager and the mayor. Two events that I want to highlight. I put some flyers in the back. We're going to hold the Marine Swap Meet at the Triangle Lot near the Maritime Museum on June 27th of this year. So stay tuned if you have any marine-orientated items, surfboards, anything to do with nautical equipment. The vendor spaces are only $40, and the emission is free. And then the other thing I do want to make sure that everyone's aware of in the audience, we are going to be doing a drone show on July 3rd. I'm actually in the process of preparing just a drone flyer so that the public will know that we're going to hold that at Tidelands Park on July 3rd after tunes at Tidelands from 6 to 9, and the drone show will be at 9 over our bay. So I'm really looking forward to that, and that could be an annual event that the city of Morro Bay has. And I attended a lot of the meetings that the mayor stated. I did go to the Homeless Coalition meeting. But the one thing, too, I want to shout out is that I went to the Parks and Rec meeting, and we're going to hold a joint Parks and Rec and PWAC public works meeting to look at the future of City Park. We're having some issues with the restrooms there, and we actually just pulled out the playground equipment at City Park. So we need the public, and we need to figure out what we want to do there. So more in due time. So that's all I have. Thank you. Mayor Pro Tem Echols. Thank you, Madam Mayor, and thank you, everyone, for being here tonight. I attended many of the same meetings that my colleagues did. One that I did attend on your behalf is for the APCD, the Air Pollution Control District. And we are blessed here on the coast with fresh breezes and clean air. But the good news is, over the last two decades, the air in the county in general has become much cleaner due to some of the efforts that we've done on your behalf at the APCD. And I'm looking forward to our budget discussion tonight. Thank you. Member Edwards. Actually, thank you, Council Member Echols, Mayor Pro Tem Echols, I should say. That's a great segue to something that I was able to do this past week. I had the opportunity to meet with a high school student, Morro Bay High School, with regard to the seal of civil engagement. I don't know how I was selected, but I was very honored to do this. I believe that our youth and civic engagement are really the key to our future and future government. And this opportunity, basically, I met with him at the high school. He presented his concern with climate with regard to gray water matter and having it be a part of new building, new commercial building and new residential building. And his project was actually incredible. He had some really good points as to, I mean, he was convincing me anyway, of the importance of taking a look at the option at least, specifically looking at shower water and laundry water. And so just a really great kid who's on a mission. And for those of you who don't know what it is, basically it's the state recognition awarded to a graduating student. It'll be a seal placed on his certificate and demonstrating his excellence in civic education under the U.S. and California constitution and participation in the community action project, of which was the gray water project. And I'm wishing him luck. So put that out there. I also wanted to give a very big thank you. Budget discussion is a tough one. It is a large binder that we have to go through and there's a lot of information. And it's greatly, from me to you, greatly appreciated the correspondence that came through via email, to those of you who are here tonight who I'm sure will have some questions or thoughts. So I just want to say thank you for your commitment on this. Yes. I forgot to also add that I was able to, over the weekend, my grandchildren were visiting, and we were able to go to the new opening. Well, we didn't go to the opening, but we were able to experience the amazing Coleman Park new redesign. And it was, I have to confess, it was really fun. There's a double swing there that's super fun and goes really high if you want it to. And it's beautiful. It looks really great. There's the new bathroom and the swing set. And I think there's like a toddler playground there, too. Thank you. At that, I'll turn it over to the city manager, Mr. Craig. Thank you, Mayor. I thought I was going to go unscathed and have one item to announce that no one else spoke of, but then Councilor Landrum spoke of Coleman Park. So I went to many of the meetings that you went to. As you mentioned, Mayor and Councilor Le Fay, we went to CMAC conference. It was very, very informative. It was great information. There was a lot to learn and to talk about the ins and outs of dredging. We took a trip out into the harbor of Newport Beach and saw the dredging operations going on there. Obviously, the Aquina is in town dredging now. We'll be here for another couple weeks. Continue to dredge the entrance to our harbor here. And so that was a very informative and great conference. As you mentioned, Councilor Landrum mentioned, Coleman Park is open. Construction was open, was finished last week. And we took the fencing down the end of last week. It was open this weekend. P&M, P, P, P, G and E came in this weekend. Today, actually, and turned on the electricity to the restroom. So now they are operating and are able to be used. And so that Coleman Park is up and running now. And it's so many visitors this weekend. It was really amazing to see all the different people down there enjoying the new and improved Coleman Park. So shout out to Public Works Department for getting that done. Nate Stong, City Engineer, sort of helped overrun that. And so thanks to Nate and his team for really pushing that through and making a great progress on that project. Speaking of Public Works, I do want to note that our Public Works Director has left. And we currently have a vacancy for which we are advertising. That ad is on the City's website. It's Public Works Director for the City of Morrill Bay. The ads, the applications are being taken by our consultant through May 31st. So any interested parties, I talked to her late last week about we've gotten around 30 applications so far. And so we are continually go through them. They will bring us candidates that they believe will be a match here. We will then take those over and interview them and talk about that in the coming weeks. And so in the interim, we have Damaris Hansen has agreed to work as the interim Public Works Director. So Damaris is doing double duty as the Utilities Division Manager as well as the interim Public Works Director. With help from our City Engineer, Nate Stong. And so we are continually to work on that and make sure we continue the projects that we're doing. And with that, I just want to say what a great weekend it was. And really good to see everybody come into town and visit. It was really fun to see what's going on. Look forward to the meeting tonight to talk about our budget and where we are for the coming year. Thank you very much, Mr. Craig. And do we have any subcommittee reports this evening at all? No reports, but the Moore Elementary School due diligence work continues. Our subcommittee, Councilors Landry and Le Fay, came to our last meeting a week and half ago or so and got an update and talked about that. And so we continue to do due diligence. I hope to, we're planning to have our second community forum on the purchase of Moore Elementary on June the 24th. That is a Wednesday evening here in the Vets Hall. Unless we are able to clean up the auditorium at the site. There are some logistics about insurance provision because we don't actually own it yet. So I think that we are going to have the meeting here again. And we may take a tour over and walk over and walk around. But more updates on that as we go forward. But that's going to be June the 24th for a public meeting on the Moore Elementary potential purchase. Thank you very much. And Mr. Stack, are we still moving forward with due diligence on the wastewater treatment facility? Yes, and we anticipate having a due diligence report, for lack of a better word, to the council in June to get confirmation on whether to close. And we'll have updates on the information we've received and still coming in. So more to come on that. And the tentative close date would be July 1st or the end of June. Thank you. In regards to the decommissioning of the sewer plant. Thank you. Appreciate that. And also I think there was one meeting we missed. A date of June 3rd, I believe. Is that correct, Mr. Craig? For Stillwater Workshop for the flood resiliency. Is that correct? I'll check that date. I believe it is the 3rd. But I'll double check and get back to you if it's not. Here at the Vets Hall. Yes, ma'am. So we want to make sure that everybody has an opportunity to participate in that also. Thank you. 530 June 3rd. So I would encourage, I see our local resident advocate for the mobile home park. So hopefully all that information will go out to those residents too. Thank you. With that, we get to move into the fun part of the meeting and have the honor of recognizing several Morabay High School students who have completed 80 plus hours of community service. This is the part that we really enjoy having a partnership with the school and the city. And we really appreciate your commitment, your compassion, and your willingness to give back. It reflects certainly exemplary character and leadership from all of you. And we commend you for your positive impact and celebrate this achievement as you're getting ready to prepare for graduation next week. And in recognition of your outstanding dedication to serving the Morabay community and successful completion of more than 80 hours of community service, we thank you for joining us this evening. And I'm going to call out the names and the hours that you served. And when we're done with that, we'll invite you all up. So I will start with, and please forgive me if I say your name wrong. Krishna Patel, 211 hours of community service. Beatrice Appel, who's unable to attend this evening, 192 hours. Margaret Appel, 192 hours. Quinn Height, 155 hours. Lucy Dupre, 146 hours. Edward Liu, 123 hours. Cassandra Biscay, 100 hours. Gabriel Pascual, hopefully I said that right, Gabriel, 100 hours. Liana Gomez, 99 hours. Abigail Ryan, 95 hours. David Zatt, 86 hours. Colum Mill, 82 hours. Elizabeth Kanis, 81 hours. Willa Turton, 80 hours. And she was unable to join us this evening. Ashan Patel, 80 hours. And Asa Vidadi, 80 hours. That's just amazing, the hours that you have all put in. We thank you for that, and we'd like to invite you all to come up. Thank you. Thank you. They just did all different things. There's a variety of participation. You guys will come down and stand. Keep coming. Keep coming. Keep coming. Just back in a little bit more. I don't want to... That looks much better. Thank you. Thank you. I am lucky and blessed to be around kids like this all the time. I think that the general public sometimes underestimates the power of adolescents, especially on the coast community. There are many more like you who didn't document their hours as properly, but as the city raises the bar on how we recognize kids, I predict that the class of 27 will be like, wait a minute. I'm going to make sure I'm going to make sure I'm going to make sure I'm going to make sure I turn in my hours. I thank you to each of you for all you've done for our school and for our community. We are lucky to have you, and I'm going to miss you in, what is it, nine days? Thank you. Thank you. Thank you. Thank you. Thank you all for being here this evening. And please, if you need to exit, we understand. Thank you again. Thank you, Mr. Scaldi. And Principal Scaldi will be leaving with that class also this year, retiring sadly. Happily for him, but sadly for all of us. With that, we will move into public comment. And I have two speaker slips to start with. First up is Jack DePue, followed by Linda Winters. I'm sorry to whoever is following me. You'll have to lower the mic just a little bit. Good evening, Mayor and City Council members. My name is Jack DePue. I'm the board secretary for the Gala Pride and Diversity Center. And I wanted to just take a brief moment of your time to thank you so much for the proclamation presented tonight in the agenda and right here. We deeply appreciate it on behalf of the Gala Pride and Diversity Center and the NAACP San Luis Obispo's LGBTQIA+ subcommittee. And I want to thank you so much for joining us today. Thank you so much for joining us today. Thank you so much for joining us today. Thank you so much for joining us today. Thank you so much for joining us today. Thank you so much for joining us today. Thank you so much for joining us today. Thank you so much for joining us today. Thank you so much for joining us today. Thank you so much for joining us today. Thank you so much for joining us today. Thank you so much for joining us today. Thank you so much for joining us today. Thank you so much for joining us today. Thank you so much for joining us today. Thank you so much for joining us today. Thank you so much for joining us today. Thank you so much for joining us today. Thank you so much for joining us today. Thank you so much for joining us today. Thank you so much for joining us today. Thank you so much for joining us today. Thank you so much for joining us today. Thank you so much for joining us today. Thank you so much for joining us today. Thank you so much for joining us today. Thank you so much for joining us today. Thank you so much for joining us today. Thank you so much for joining us today. Thank you so much for joining us today. Thank you so much for joining us today. Thank you so much for joining us today. Thank you so much for joining us today. Thank you so much for joining us today. Thank you so much for joining us today. Thank you so much for joining us today. Thank you so much for joining us today. Thank you so much for joining us today. Thank you so much for joining us today. Thank you. Good evening. My name is Linda Winters. I am a 32 year resident to mobile, in the same mobile home park here in Morro Bay. Greetings to the mayor, council, city staff, and the chiefs. I hope all of you had a wonderful Memorial Day honoring the people that served us so well, so that we could be here tonight and speak freely. I spent the holiday right here in this very room, making ready to serve all that came through the door. Dinner, clothing, food, the food bank, the Monday night dinner, all staffed by volunteers. I wish those kids were still here. Our attendance was lower than usual. We believe it was due to the holiday and the fact that so many people weren't, were thinking we weren't going to be even serving, even though we told them last week that we would. But those that did attend were treated to a sumptuous meal from the Presbyterian church that, that had planned to serve 100 meals. So the 42 people that were here were told that they could have seconds, thirds, and even four poles if they wanted them. One thing I did do later last week was attend the Parks and Rec Advisory Committee meeting. I had the chance to speak to one of the staff members, along with listening to the advisory committee members. I had asked about the bike park on Main Street and who had control of it. And he said, "No, Parks and Rec did not have control of it. They, they, he believed that it belonged to another group. Maybe it was perhaps the police department. I voiced my concern about something that I've been seeing now for some time involving electric bikes. There are many kids that are underage as far as driving cars is concerned, but are still old enough to own these or have these electric bikes. There are some very irresponsible e-bike riders. Most of them are underage to drive, so they indulge in wild things riding on these e-bikes. This includes two, three, or even four kids on one bike. Yes, I said four. I have witnessed it. Once again, I'm not sure who I should be talking to, but I know this is a very dangerous situation. It should be a really hard issue. It would be a very hard issue to enforce. My first instinct is to say to the parents that are, that have provided these bikes for these kids, to have some serious talks about what it is to be responsible. That's all I have to say for now on this issue. No wait, I lied. With this summer coming very, very soon, we're going to be inundated with more visitors filling our streets and our parks as well. It should be because it's summer. And one more thing. I don't want to see anybody getting hurt. I think that's all for now. I'll see you all on June 9th after Election Day and Morro Bay Graduation. Thank you. Public comment is open for items not on the agenda. I'll see you all on the agenda. I'll see you all on the agenda. I'll see you all on the agenda. I'll see you all on the agenda. I'll see you all on the agenda. I'll see you all on the agenda. I'll see you all on the agenda. I'll see you all on the agenda. I'll see you all on the agenda. I'll see you all on the agenda. I'll see you all on the agenda. I'll see you all on the agenda. I'll see you all on the agenda. I'll see you all on the agenda. I'll see you all on the agenda. I'll see you all on the agenda. I'll see you all on the agenda. I'll see you all on the agenda. I'll see you all on the agenda. I'll see you all on the agenda. I'll see you all on the agenda. I'll see you all on the agenda. I'll see you all on the agenda. I'll see you all on the agenda. I'll see you all on the agenda. I'll see you all on the agenda. I'll see you all on the agenda. I'll see you all on the agenda. I'll see you all on the agenda. I'll see you all on the agenda. I'll see you all on the agenda. I'll see you all on the agenda. I'll see you all on the agenda. I'll see you all on the agenda. I'll see you all on the agenda. I'll see you all on the agenda. I'll see you all on the agenda. I'll see you all on the agenda. I'll see you all on the agenda. I'll see you all on the agenda. I'll see you all on the agenda. I'll see you all on the agenda. I'll see you all on the agenda. I'll see you all on the agenda. I'll see you all on the agenda. I'll see you all on the agenda. I'll see you all on the agenda. I'll see you all on the agenda. I'll see you all on the agenda. I'll see you all on the agenda. I'll see you all on the agenda. I'll see you all on the agenda. I'll see you all on the agenda. I'll see you all on the agenda. I'll see you all on the agenda. I'll see you all on the agenda. I'll see you all on the agenda. I'll see you all on the agenda. I'll see you all on the agenda. I'll see you all on the agenda. I'll see you all on the agenda. I'll see you all on the agenda. I'll see you all on the agenda. I'll see you all on the agenda. I'll see you all on the agenda. I'll see you all on the agenda. I'll see you all on the agenda. I'll see you all on the agenda. I'll see you all on the agenda. I'll see you all on the agenda. I'll see you all on the agenda. I'll see you all on the agenda. I'll see you all on the agenda. Good evening, Mayor, Council members, City team and community. I'd like to introduce myself. I'm Krista Rupp, the new Executive Director of Visit Morro Bay. I am thrilled to be taking on this role as well as returning to my hometown to serve in this capacity. I'm grateful to our board of directors for bearing with me as I get my sea legs and supporting through this transition. And I look forward to meeting with each of you, building an even stronger relationship between the city and Visit Morro Bay, and continuing to represent our great lodging activity and event stakeholders. So thank you so much and looking forward to our working relationship. Good evening. I'm Betsy Godet-Cross. And I want to tag on to something that Margaret said. I went to that meeting and beside the fact that we couldn't hear, I think one of the biggest problems with these meetings, and I've been attending them because I am interested in what's going on and I want to be an active participant of the city. I want to be able to ask questions rather than submit a question and then they go through and pull the questions that they want to answer. And often I don't get my questions answered. You know, when you're very selective about which question you answer, you can kind of direct the conversation. I just wanted to tag on to what Margaret was saying. And as I said, I enjoy being part of this city and what's going on and I wish that meeting was -- I kind of felt like it's a way of checking off, yes, we've got input, but you didn't really get our input as she was saying. A lot of it was repetitious. Anyway, that's all I had to say. So thank you. Anyone else for public comment for items not on the agenda? Are there any raised hands? There are no raised hands in the queue. Thank you. With that, I will close public comment and bring it back to council. Krista, thank you. Welcome to Morro Bay. Welcome home. Chief Watkins, do you have a second to address the bike park? Good evening. Thank you, Mayor. Good evening, council and the community. One thing we are currently working on with our school resource officer is a three-phased e-bike plan. First phase was completed last week. He reached out, made flyers, and contacted all parents from Morro Bay High School as well as Del Mar to address some of the questions about what class is appropriate for e-bikes for kids of all ages. And it also included the electric motorcycles that are illegal for anyone under the age of 18 and does not have a motorcycle license -- excuse me, 16 and does not have a motorcycle license. So we are in the process of enforcement. One of that is going to be the bike park. And we are looking to set up an enforcement detail, one in June, one in July, and one in August. And that will be some targeted enforcement for primary education and then enforcement. We are also working on some data collection for anyone who is seen riding and operating these electric bikes, either illegally or in an unsafe manner. So we are working on it. We've completed the first phase. And so there'll be more information. Our next phase, phase two, is some social media that we're working on. So we are right in the middle of it. Thank you, Linda, for bringing that to our attention. But we are in the process. And that was certainly something that Council Member Edwards had requested. And that's why this is in progress. Thank you. I did see there's some assembly bills, I think, right now that are going to be addressing the speeds and that with the e-bikes and the miners. There are some special bills that are coming forward to increase the laws. But currently under our vehicle code, we have necessary laws that we need to enforce these e-bikes to operate safely on our roadways. So we do believe that we have all the laws in place currently. And those laws are going to be specialty laws to discuss sales, acquisition, and then maybe some responsibility on the parents. But we've also seen through certain recent cases that some of the parents are already being held accountable. So, but a lot of that has to do with contact first and awareness, education, and then collecting that data so that when we continue to have enforcement issues with the same individuals, we have a little more information to objectively and reasonably enforce the law. Thank you. You're welcome. Appreciate that. And I believe that there's a bike park committee group that runs the park. It's a nonprofit organization. And they work through the city somewhat in conjunction and I believe usually through public works, not rec. And as the comments about the one-pack workshop, the attendance, I think, was a little challenge because there was several other events that ended up that evening. And I think there was something apparently at the school that night, I'm not sure if it was an open house or something that pulled a lot of families there. And then people who might have participated from the maritime museum and a lot of people supporting that were at a fundraising event for that also. But I know the city manager and the community development director heard your comments and we'll take notes on that. So thank you for that. So thank you for that. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. And with that, we'll move to the consent agenda. Does anyone -- whoops. Hang on. Stop. Let me open public comment on the consent agenda before we pull anything or move on. Public comments open on the consent agenda. Betty Winholz: Betty Winholz, I'd like to speak to 6C and 6D. 6C is about the water equivalency units and it's based on a citizens initiative. And it's based on a citizens initiative. And it's based on a city initiative. And it's based on a city initiative. And it's based on a city initiative. And it's based on a city initiative. And it's based on a city initiative. And it's based on a city initiative. And it's based on a city initiative. And it's based on a city initiative. And it's based on a city initiative. And it's based on a city initiative. And it's based on a city initiative. And it's based on a city initiative. And it's based on a city initiative. And it's based on a city initiative. And it's based on a city initiative. And it's based on a city initiative. And it's based on a city initiative. And it's based on a city initiative. And it's based on a city initiative. And it's based on a city initiative. And it's based on a city initiative. And it's based on a city initiative. And it's based on a city initiative. And it's based on a city initiative. And it's based on a city initiative. And it's based on a city initiative. And it's based on a city initiative. And it's based on a city initiative. And it's based on a city initiative. And it's based on a city initiative. And it's based on a city initiative. And it's based on a city initiative. And it's based on a city initiative. And it's based on a city initiative. And it's based on a city initiative. And it's based on a city initiative. And it's based on a city initiative. And it's based on a city initiative. And it's based on a city initiative. And it's based on a city initiative. And it's based on a city initiative. And it's based on a city initiative. And it's based on a city initiative. And it's based on a city initiative. And it's based on a city initiative. And it's based on a city initiative. And it's based on a city initiative. And it's based on a city initiative. And it's based on a city initiative. And it's based on a city initiative. And it's based on a city initiative. And it's based on a city initiative. And it's based on a city initiative. And it's based on a city initiative. And it's based on a city initiative. And moving on to 6D. Which is about the housing. And how we participate with the county. And this will be a broken record on my part. Because I have for several times suggested. That we need to separate from the county. And do our own homeless projects. Much like Grover Beach does. Who I see as one of the more successful communities in our county. And that we can maybe do a more effective job. Than giving to the county. And having services over there. Which doesn't necessarily meet the needs of our people. And so just again. Encouraging you to look at that. You know fine to sign the document. But it's a platitudes. It's not action. Anyone else for public comment on the consent agenda? Ray are there any raised hands in the queue? There are no raised hands in the queue. There are no raised hands in the queue. Thank you. With that I will bring it back. And close public comment on the consent agenda. Does anyone want to pull any items? No? I'll pull 6C. 6C. Okay. Anybody else? No? I'll move approval of the consent agenda. Less items 6C. And ask for a second. I'll second that. All in favor? Aye. Opposed? Motion carries. Thank you. Council Member Landrum 6C. Yeah. I was curious. I attended the PWAB meeting and was surprised to find out that our ADUs are not included in the water equivalency units. I would just like more clarity on that maybe. Director Singwald? It does seem important to know what our actual water usage is. You know? So I do kind of agree with the comments. So first of all, to my understanding, measure F and the WEU system dates back to before the city had access to state water. And it was a much more sensitive status as far as water supply availability. And the reason that ADUs are not included, that they do not require a WEU allocation is because under state law, their local agencies are prohibited from imposing growth limitations on ADUs. Maybe you could say that again. I don't think Council Member Le Fay. I didn't quite understand. Yeah. So under state law, California cities and counties cannot impose growth limitations on ADUs. The WEU system is effectively a growth management tool to limit the rate of growth in new residential units in the community. And under state law, we cannot impose that restriction on ADUs. Well, I would think at some point if everyone had an ADU plus a JADU and, you know, so forth, then if you're not at you're not including those in the number, then do you get to the point where you're using too much water? So we currently have adequate water supply to meet build out of the general plan, which is another about 800 or so homes. And that analysis was done with the plan Morabay when that was updated in 2021. So since we're, you're saying since we're well under 800 homes, we're okay, even though we're not really tracking the ADUs in relationship to the WEUs. Yeah. So then currently there's adequate water supply for build out of the general plan. What the WEU system does is limits the number of units that can be issued on an annual basis. But overall, there is adequate water for build out. It just controls that the rate of growth and how quickly we get to build out. Okay. All right. Thank you. Thank you. Director Singhold, any other questions? Okay. Then I move that we approve measure or item 6C. I'll second that. A motion and a second. All in favor? Aye. Opposed? Motion carries. Thank you very much. We're going to move into our budget session. And I think, why don't we take a five minute break real quick before we get started into that. Thank you. Thank you. So that's Russell over there. Yeah. Yeah. I have a... Okay. Okay. Okay. So, that's all... Yeah. Yeah. Basically, the one... Butterfly bill. All right. I'll try to remember that. Yeah. Yeah. Yeah. Yeah. That's fine. I get to go pick them up. Where are they? They're at the other grandparents. Oh. Oh. Okay. Yeah. I just got the thing with Cal. So, I'll have a meeting with... It's all right now. Thank you. Yeah. Yeah. Yeah. I just got the thing with Cal. So, I'll have a meeting with... It's all right now. That's fine. I got the... That's fine. Yeah. Yeah. I just got the thing with Cal. So, I'll have a meeting with... It's all right now. That's fine. That's fine. I'm not sure. That's fine. You're not sure. I'm not sure. Thank you. Yeah. Yeah. You're welcome. Fall apart. Yeah. There are no... There's no... There's no... There's no... There's no... There's no... There's no... There's no... There's no... There's no... There's no... There's no... I know. Well, I mean... So, just... We're gonna have to... There's no... There's no... Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. different departments. After years of high vacancy rates, the city, sort of, reversed course. We've dropped the vacancy rate down to just four percent in early 2025. That means police, fire, water, harbor, and other essential services are being fully staffed and functioning as we go through the day-to-day operations. And fifth, we have strong reserves, but we can't rest on those reserves. We head into this fiscal year with reserves at about 41 percent of operating costs. It's above the minimum required of 33 percent. That's a cushion most small cities would envy. But the city is clear-eyed. We have those reserves, but they're not a long-term solution. If revenue growth doesn't keep pace with rising costs, Morro Bay will need to find new revenue streams to maintain the level of services that residents depend on. As we go through, I think we as a team have talked about it, it would be great if council, if you have questions or comments. If something's not clear as we go through, please let us know. Maybe we'll stop at the end of each section and see if there's any questions about that as we go in. Tonight, the agenda is looking at the proposed operating budget. It's guided by the goals of the city council. We have an overview of the citywide budget and then a discussion of the major funds, revenues and expenditures, CFAC input on measure Q&E budget, capital projects budget, and then physical outlook and action items. The goals for the city that the city council adopted first is economic vitality and physical health. We've tried to tie each of our expenditures to achieving one of these three goals that the council set forth. Second goal is infrastructure resiliency. A five-year CIP is in process. We didn't complete that this year, but the goal is going forward. We will have a longer range CIP plan that we will put forth all of the needs that we have in the city as well as ways to fund them or not fund them if we don't have enough revenue for that. Maintenance on our infrastructure and then maintenance on our harbor. And third, Morrill Elementary School site. The goal statement was work with the district to acquire the Morrill Elementary School site or assist in development for the purchase of preserving community access, preservation, and or housing development consistent with the city's general plan. Our budget timeline on February 17th, CFAC had a meeting on the mid-year Q&E budget. On the 24th, mid-year budget and physical update was brought to council where council adopted our changes to our budget of 2025-26. On April 21st, there was a scheduled joint CFAC and council meeting. On May 8th, we posted the proposed draft, the draft proposed budget was posted. Tonight, May 26th, we're presenting the study session. Again, it's a study session to understand the things that are in there and ask questions so that we can clarify anything that you need to know as you go through the adoption process. And again, we'll come back on June 9th for the budget adoption consideration and if we need to, we'll bring it back on the 23rd if we can't answer all the questions on the 9th. So, one thing that we're going to discuss is the fact that the city has a lot of funds. The main operating fund is called the general fund. We'll get into that. But this is a proposed budget that's showing all of the funds in the city. We'll talk more about that in a little bit. Our revenue budget is about 63 million, 53.4 million for operations. Again, 9.6 million for capital projects. That's an increase in revenue of 5% from the current year. Expenditure budget, 58.7 million. That's 49.1 million for operations and 9.6 million for capital projects. A decrease of about 12% from the current budget. This is our operating revenues. So, our revenues by our major funds. You'll see that of that 53, I'm sorry, 63 million revenue budget, 21.4 of that is for the general fund. The sewer fund is about 10.8 million. Water operating fund, 8.4 million. Measure Q&E are measures that help support the operations of the city. 1% and a half percent on our tax is about 4.5 million. We have a harbor operating fund, just under 3 million at 2.9. We operate a risk fund and an IT fund. For the current year, for the proposed year coming up, we are recommending no added positions in city government. We have a total of 117.5. We currently have four vacancies. The public works director position that I had discussed earlier that we are currently advertising for. We have a senior civil engineer position that we've been unable to fill for quite some time. We recently signed a contract as an on-call contract with an engineer that if we needed to, to use those engineers because we were unable to fill that position to date. We have a vacant police officer position that we're in the process of filling. And there's an assistant to the city manager position that we are recommending to continue in the budget, but are not filling at this time. You can see there the history of our funded positions citywide. We also have personnel changes in our part-time or temporary staff. These are smaller positions that are budgeted, mostly without benefits in several different areas. We have a 26.7 total FTEs or full-time equivalent for those staff. We're recommending adding 1.6 FTEs, which again are mostly unbenefited support positions, IT support tech, clerk finance intern, and additional hours in recreation, community development, and harbor as those are needed. I talked a little bit about the major funds the city has. A lot of times it's really confusing about governments and what different types of funding we're talking about. We have 41 funds in the city in which we segregate our operations. A lot of that is due to laws that we have operating funds. We also have enterprise funds that are able to solely take the revenues and have expenditures for the purposes stated in that fund. We have 31 funds that have budgeted activity for 26.27. Again, that's 10 funds that are relatively inactive. That could be a debt service fund. It could be a reserve fund that we keep in in place as a requirement for certain debt operations that we have. But really we have five major funds. Those five funds represent 90% of the budget here. So that's what really we're going to talk about tonight are those five funds. The general fund, the measure Q&E fund, the two utility funds, the water operations, the sewer operations, and then the harbor operating fund. So again, those five funds make up the majority of our entire city budgets. The general fund, I'll turn it over to Emily Conrad, our finance director, to talk about the rest of the different funds that we have going through. So this is a look at our general fund revenues for 26.27. The big takeaway from this graph is that 73% of the general fund revenues come from property taxes, TOT, sales and use tax, and revenues from current services. The remaining 27% is from interfund transfers, which in this year are cost allocation transfers in from enterprise funds and the state gas tax transferred in. Also franchise fees, other revenues, which this year is largely the recognition of $770,000 in mutual aid reimbursement fund balance for the replacement of a wildland fire engine. Also intergovernmental revenues, largely the coastal commission grant for the waterfront master plan update, cannabis city tax, rental income, interest income, and that tiny revenue from fines and forfeitures make up the difference. If you look at it year over year, and we're looking at a net 2% increase from 25-26, you can see that in property tax income, which is based on county estimates, interest income, which is increasing to be on par with what we're actually receiving. Franchise fees, sales tax, and cannabis tax are projected to increase slightly. Other revenues are increasing to recognize the mentioned use of mutual aid reimbursement fund balance. Revenues from current services are decreasing, same as last year, until mutual aid reimbursements are received, at which point we'll adjust at mid-year based on actuals. Maybe we'll take a break right there to see if there's any questions, councils, on the revenues in the general fund. Any questions? Could you explain the risk fund to me, please? The risk fund, sure. The risk fund is where we budget and pay for all of the insurance for the city. There's a lot of different types of insurance that we have and are required to have. Okay, sure. Thank you. Could you go? Yeah, thank you. I'm curious why the rental income would go down. It's only, it's a small percentage, but I'm just, just, I'm curious. I can answer off the top of my head. I can attempt to answer off the top of my head. I think that's due to not having a tenant at the concrete plant. We had different tenants over the last few years and now we no longer do. Thank you. Thank you. Could you give us a little bit more information on the projection, the 1.3% increase projection for sales and use tax? The reason that I ask is it seems, I know that we're conservative in our budgeting. That seems very conservative, extremely conservative. We've talked about inflation, inflating prices, but inflation also inflates the cost of goods that are taxed, that we receive as sales and use tax on. So if you could just give us a little bit more background on how you came up with that number. Sure. That number is partially influenced by the projections that we receive from the sales tax consultant HDL companies. And then I also look back over time to see what growth we've had in recent years and come up with kind of a hybrid or average of the two estimates. And admittedly, it is conservative. And if my memory serves me right from last year, we take to be conservative, I think we take a percentage of the HDL, something like three fourths or two thirds or. Last year we did 95 percent. 95 percent. Yeah. Okay. And so this year, are we doing a similar number? 95 percent of what? Why I remember last year what we did and not this year, I can't tell you. But it is less than their projection. Thank you. I'll follow up on that. That is one area that we welcome feedback from you. Obviously, as professionals running the city, we want to take a conservative note because we don't want to find ourselves over budgeting revenues that don't come in. And so, but as council goes through deliberations and discussion, that may be some point that you want to talk about further. Question. Thank you, Mayor. I was wondering if you could clarify a little bit more for us the interest income and why on several of the funds we're going to see that exponentially high. Sure. So interest, as we all are aware, right, interest income has grown so much in the last few years. But what we have not done is increase the budget to match that. And so we were under budgeting for this big chunk of cash we receive in the year. So this year we went ahead and budgeted what we anticipate to actually receive across all funds that receive interest. Okay. Thank you. Oh, one more thing. Sorry. And typically this is interest earned on the city doing two-year CDs. Is that usually our customary investment strategy? We have a range. We try to have a range so they don't all, so they're staggered in when they earn and when they mature. So we have one year to, I think, four-year. We also have the interest earned, which is sizable, from LEIF, the local agency investment fund, and also at Mechanics, our money market account. Also, the other striking change is the one, obviously, with other revenue. And could you explain that? Absolutely. So that $770,000 of that is for recognizing the fund balance we're going to use for replacing the wildland engine. Thank you. Any other questions? Thank you. So here we are taking a look at the general fund expenditures. This is a look by department. So the operating budget by department or division, I should say. So like every annual budget, safety services and public works are at the top. The three budgets at 23%, 17%, and 16% of the total expenditure budget. Community development makes up 10%, and the remaining departments or divisions are each less than 10%, with city council being the smallest sliver of the pie. Here we can see a year-over-year comparison, so for 25-26 compared to our proposed budget. We see a half percent net decrease, while personnel costs are up 4% and supplies increasing 2%. Both other expenses and services decrease substantially because of transferring some safety services over to the Q&E budget. We see a lot of the cost allocation as opposed to reduction in cost. The capital outlay and capital contributions through interfund transfers were eliminated in the general fund for this proposed budget due to budget constraints. The use of mutual aid fund balance to replace that wildland fire engine is an exception. The debt service we can see increasing by that whopping 1900%. That's for an estimated potential annual loan payment for the purchase of the Morro Elementary School site. This cost is based on the $5.3 million purchase price spread over 10 years, with a $4.33 interest applied. That was the federal rate at the time of budget adoption for a 10-year period. Interfund transfers are decreased due to no contributions to capital projects except for that wildland engine. I just would add about that debt service that we are in the midst of due diligence. We're in the midst of this purchase. So it's simply there to demonstrate what a cost might be should we finance it. That's something that we could eliminate from this budget or keep in depending on council's discretion. I'll follow up to say, unfortunately, we can't eliminate that expenditure altogether. But what that means is if the city continues with the due diligence period and decides to indeed finalize that contract with the school district, we would not make that first year's debt service payment during this current year. We would wait and do that a year after we close on that and borrow that money or whatever. And so that $678? Sorry? Sorry? $664. $664.221. Thank you. That amount is if we decided to make the first year's debt service payment on that purchase before next June 30th, that's in there. Council could choose not to do that, fund that first year this year, but hold off until next year, which might be more efficient. And we'll talk about that more when we get into options that we have for the council to talk about. Are there any questions on any of the other categories before we move on? All righty. So here we're looking at the general fund in summary, looking at revenues at $21.5 million, just under, and the expenditures at $22.3 million, $22.4 million, resulting in a shortfall of $914,000. And as a reminder, $664,221 of that is for the estimated Morrow Elementary School site purchase loan payment. If we adjusted that out, it would leave us at about a $250,000 difference. That's all we had for general fund. Is everybody good to move on? Okay, so on to measure Q&E. For 26-27, we're estimating a $4.5 million revenue budget, plus $5,000 estimated interest income, which is a 2.4% increase over prior year. The revenue that's allocated, measure Q&E use, the revenue is allocated to four activities per the city council decision on April 13, 2021. That is to maintain public safety services by funding staff positions that are most closely aligned with the purposes of measures Q&E. Expenses include costs associated with Morro Bay Fire Department, Morro Bay Police Department, and Morro Bay Harbor Department personnel and equipment, and fire headquarter debt service, which is paid off, and fire engine loan repayment, which is paid off. It's also to maintain or enhance the cleanliness and safety of public spaces, such as parks, waterfront, and the beach, by funding personnel, supplies, expenses, and equipment to support city operations in departments, including public works, consolidated maintenance, and the harbor department. It's also to be used as an investment in infrastructure and equipment, such as street paving, storm drains, and vehicle replacements that support city services. This priority may include increasing capacity to implement the backlog of unfunded capital projects. Lastly, it should be used to ensure the financial health of the city by maintaining appropriate reserves to protect against economic downturns, natural or health emergencies, and other unforeseen challenges or opportunities. I'll note at this point that for 26-27, we don't have anything budgeted for that fourth bullet. The first category or activity is to maintain public safety services. The total budget under that category is $2.5 million. $1 million is for fire personnel. $817,000 is for police personnel. Safety equipment upkeep at $52,000. Crime reporting and communication software at $46,000. And the county contributions to community safety services at $76,000. And fire and dispatch services combined at $533,000. This is unchanged from when you saw it at the April meeting with CFAC. Now the next activity, maintain or enhance cleanliness of safety and safety of public spaces. It's just shy of $1 million. $380,000 for maintenance personnel. $125,000 for the street sweeping contract. $25,000 for facility maintenance. $25,000 for the facility maintenance. $25,000 for the facility maintenance. Which is in this case for repainting city facilities. Cerrito Peak fire risk reduction at $100,000. There's also waterfront safety for the harbor lifeguard program at $88,000 and the harbor patrol reserve program $85,000. And lastly in this activity, waterfront maintenance. We have a new addition this year, $40,000 for maintenance of the waterfront areas and the same old disposal contract for multiple sites and dozens and dozens of pickup sites across the Embarcadero at $145,000. And the final budgeted activity in measure QE is the investment in infrastructure and equipment. This is just under $1.7 million. To maintain and replace infrastructure and equipment, we have budgeted part of an engineer technician at $158,000. Pavement management contribution at $1 million. That's for the annual pavement management project. And street repairs for on-call services at $200,000. And we have the second of five estimated payments or contributions to the police radio communications upgrade project. So if you look at that all in summary, by each of those activities, it totals $5.2 million. For each of those activities in total. Could you go to the next slide? So for those of us who are tracking revenues versus expenditures, that also results in a shortfall. In this fund, it's a shortfall of $707,000. So looking at these two general funds in combination, we have a, just to summarize again, the general fund sees a shortfall of $914,000 or $250,000 if we pull out that adjustment for debt service. And measure QE has a $4.5 million with $5.2 in expenditures for a shortfall of $707,000. So some options for your consideration is to adopt these two fund budgets with revenue shortfall, which would mean spending from available fund balance in both funds, or reduce or eliminate parts of expenditure budgets. Some options would be to reduce or eliminate the estimated loan payment, reduce or eliminate that $1 million in annual paving contribution, same $317,000 for the PD radio communications upgrade project, and/or the $200,000 for on-call street repairs. Those are ideas if you wanted to have a structurally balanced budget adopted. The total combined shortfall is $1.6 million. If we eliminated those capital contributions from QE, the $1 million for paving and the $300,000 for the PD communication upgrade, and eliminate the $200,000 for street repair, and eliminate the on-call services are part of them, then we could get down to a balanced budget. We'll stop there and see if there's any questions on the general or Q&A funds. Questions? Two questions. This pertains to Chief McCrane. The Cerritos Peak risk reduction, I know that we chatted about it in the past. What exactly is the $100,000? I thought we had a grant where we were going to not have to spend any of our money, is my first question. Thank you for the question. So the Cerrito Peak Fuels project is something we've been working with the FireSafe Council to do. We've tried over the last couple years to coordinate with them, and while they had funding, we are going to attempt to do that again this year, but the funding isn't guaranteed with them, and we've had difficulty lining up the availability of their crew in the short window that we have between butterfly season and bird nesting season. So we've been working on it. We do have to do some fuels thinning in there, remove some dead branches and things like that. So this was a placeholder in coordination with Public Works if we needed to fund that ourselves. Thank you. And then the second question. I noticed that we had a contract for the Radio Tower Project, Chief Amy Watkins. Could you explain where we are with that? Because I know that we, you asked for $1.5 million, and I think we chatted about maybe re-scoping it. Could you kind of give me an update now? Yes, of course. Thank you for the question. The update is we just closed our RFP process on Friday, so we received two bids in that process, and I'm in the process of reviewing those bids now. Now, can you share what those bids were? Not at this time. I can tell you that there's some more questions for each vendor in that process. So there's still a lot more questions to be ironed out before we really make any determination on bids or anything else. So basically, is the $1.5 million still within your scope, or do you feel that that's too much? I mean, just curious. What's too much? You think that it's... No, $1.5 million is what you requested, and is that what the bids are coming in at, or I'm just trying to get a feel? I can tell you that since our last presentation, which was exactly a year ago, we have faced inflation in all regards. So at this point, I can't really say. I can tell you that we are not even prepared to even answer that question. I can't tell you. It's too soon. Can I follow up on Council Member Le Fay since you're here, Chief Watkins? If I remember right, it was a year ago. There were two different phases, like two different parts to that. One was more critical maybe than the other. And is there... Because one was for the towers, and one was for equipment or something like that. Is there... Because it sounds like it's going to be more expensive than you had budgeted. Is there a way to discern, you know, maybe some of it isn't as imperative right now, or... Well, the biggest price of all this, there's one phase. And I think what your question is, is there's the infrastructure. The infrastructure has not been dealt with or handled in probably 30 years. So that is a large portion of the cost, is rebuilding that infrastructure, because we are so critical at this point on the infrastructure. The second piece to the radio system is the requirement through California State Department of Justice that requires the encryption capability, which adds the requirement of digital encryption, which those... That system is more expensive than your typical analog radio system. So the encryption also requires... So the encryption also requires... And the digital format requires additional tower locations. Through this process, we have been able to identify two current city-owned locations that are relatively new builds, which provide us a lot of options with less infrastructure building. So that's a good thing. But the Black Hill radio tower is in dire need of repair, and there's a lot that goes with that. So maybe that's the phase you're talking about, is one is that infrastructure, the other one is the DOJ mandate. And so that's where we are currently. And that digital encryption format does increase the price of the equipment itself, including the additional two towers that gets us the coverage that we need. So that's where we need to be. It's difficult in Morro Bay because of our topography. And we are small, but we have a lot of hills in Morro Bay. So that increases our price as well. Okay. I had another question, but it flew out of my brain. I'll be here all night. Okay. Thank you. I'll just follow up on that. That police radio communications was a projected 1.5 million in change cost that was funded in the current year, or the one that we did a year ago at 1/5 or 317,000. This would be the second of five contributions to that capital project, which as Chief said, bids were out. They've been received. We're currently undergoing review of those and seeing how much they were and where to go with that. So no updates to the budget number at this time. But at any time, if those costs go down or go up, we would come back to Council for any change, if this is adopted in two weeks. Thank you, Mr. Craig. Questions? Yes. Thank you. And of course, during that time, relative to the communications expenses, we were informed last year that we'll, on an ongoing basis, be looking for grant money as well, which could potentially be found money. So fingers crossed for that as we move forward. This question is for Director Conrad. And it's a bit higher elevation and more on process, particularly with Q&E. So two questions with regard to that. You've got an estimate there of an increase of 2.3%. But on the sales tax, we estimated an increase of 1.3%. So why is the estimate 2.3% for this sales and use tax as opposed to 1.3% for the general fund sales and use tax? Fantastic question. It's because those taxes are applied differently to purchases. And I don't have the whole, all the rules in memory, but the local sales tax applies more broadly to purchases. So we do get more from those taxes. I anticipated that answer. It's confusing to me, I'll be honest. I know that we get a higher percentage of the Q&E sales tax. We're able to capture close to 100% of that. Whereas the Bradley Burns, I think it's called, we get a portion of it. But it still seems to me that an increase in both would result in a commensurate amount in both accounts. So I am curious about that. The other item is looking at the breakdown that you have on expenses for Q&E. You know, and pretty much everybody knows that I've been advocating for simplification of this, of our Q&E expenditures. And I love the way that fire personnel is expensed there with one line item. Looking at the PD, the police department, we have a personnel line item and then three additional line items. My hope and prayer is that someday that would be one line item for police as well. And that those other three items would be compensated for over on the general fund side. Because it's essentially, and I don't mean this disparagingly, but it's a bit of a shell game between Q&E funds and our general fund sales tax revenues. So you were able to, my question for you Director Conrad is that if my memory serves me right, you were able to narrow down these categories for Q&E expenditures significantly. And is there still room to do that? And were there challenges that you faced doing that? And if so, what? So I'm asking that in the spirit of my advocacy toward continued simplification and transparency of Q&E expenditures. Sure. Well, first, absolutely there's room to change how we do this. And the challenge is mostly what's acceptable or desired by our community and the city council. What do they want to see there? What's the sweet spot level of detail? So I'm open to suggestions and opinions, of course. With fire costs there, it's easier to simplify fire because they have only personnel costs and dispatch services. That's it. So PD has a few more non-personnel costs. We can roll it up to just department or division or roll it up just, we can roll it up any way we'd like to. But I do think it's important to have, to be able to communicate how we're spending it. And what would your observation be just in terms of rolling up, for instance, if we look at the police department expenses, and I'm not suggesting this, this is just for conversation point at this point. I'm just exploring. What would your response be to the ability for us to roll up, let's say those three items into personnel expense, and then compensate for that on the general fund side? In other words, if we took away from safety equipment, upkeep, crime reporting, and county contributions, it's not going to change the expense here, the total expense, but we would need to make up for that on the general fund side. Is that a potentiality? I'm trying to follow what you're saying. Can you say it one more time? Do you mean only use this fund for personnel costs? Yes. Sure. Sure. We could do that. We could increase personnel and move out the other supplies and services. And my-- Does that make sense? Just switch them? Yes. Yes, it does. I was going to start deliberating, but I'll wait to make deliberative comments later, since this is the question time. Thank you. Okay, sure. I'll just wrap up your question by saying we would not use the term "shell game." I think what you meant to say is that those funds are fungible. They're local taxes. They're taxes that are brought about in the same way, generally the same way. They're taxes that we collect here in the city. Q&E, without the Q&E funds that were coming in, that were voter approved, we would not be able to sustain the city government operations that we currently have. So those are very vital to where we are. As you say, the general fund and the Q&E fund are similar expenditures because they're similar revenues. And so if you would rather see only personnel cost here, we would then--we could add up those three non-personnel police costs and transfer them back and show them in the general fund and then bring over, say, one officer, perhaps, that was around that amount and add that in only in personnel. And so in that way, we are able to choose which fund you want to fund operations costs and personnel costs. And so that's certainly open for discussion. And to clarify, I heard some gasps from the audience relative to 100% personnel expenses, but the overall cost to the city, those funds being fungible, would be exactly the same. Correct. I think that's something that we've been discussing. We discussed at the CFAC joint meeting the fact that in general, the government has funds to spend that they have in revenues and they have expenditures that match up to those revenues. And so, again, those taxes that are brought in either to the general fund side for one portion of those use taxes are very similar to the funds that are brought into the Q&E fund. And so if we are able to--if we eliminate cost in the Q&E fund, that would reduce the use of that Q&E, but we would need, therefore, then to raise the expenditures in the general fund and find revenues that would match that, if that makes sense. Yes, it does. Thank you. Council member Eccles, would you also want to include the things like the radio towers into that as well? Or is that--would that be--so--the police radio towers? Council member Eccles, would you like to ask questions? The idea that I'm getting at or the point that I'm making through the questions right now is that it's up to Council to make those expenditure decisions. I just don't want us to get too hung up on the Q&E versus general fund delineation. Council member Eccles, would you like to ask questions? Right. 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Council member Eccles, would you like to ask questions? Council member Eccles, would you like to ask questions? Council member Eccles, would you like to ask questions? Council member Eccles, would you like to ask questions? Council member Eccles, would you like to ask questions? Council member Eccles, would you like to ask questions? Council member Eccles, would you like to ask questions? Council member Eccles, would you like to ask questions? Council member Eccles, would you like to ask questions? Council member Eccles, would you like to ask questions? debate for some time what the intent behind the language that we put on the ballot, both for Q a while ago and for E most recently. I will say that there was intent and there was deliberations for each of those ballot initiatives. And then there was language that was actually voted on. The language that is voted on, city attorney can discuss if he'd like the language that was voted on is what is legally required to be spent on. And that language is broader than, say, the general discussion of the times and the deliberations that were going on. Is that fair, city attorney? Brian Stacks, city attorney. I would just add, you know, high level, they were passed as general taxes. So their general fund or their general revenues with a statement of these are the things that we think this is why us, the population voting for it is, you know, approving this, this increases so that we want greater services. And so you build in, even though it's not a legal limit on the use of the funds, you build a reporting requirement so that then that keeps the, you know, citizens informed. And then if they're not happy with how the money's being spent, you know, there's, there's various ways they can do it either through, you know, representatives or amending the ballot measure and, and, you know, terminating it. So it is a general tax. So it's not subject to any legal restrictions per se, but there are, you know, you know, statements of intent and, and oversight that, that is, you know, the, the oversight is the additional legal obligation that, that there needs to be some annual reporting and oversight by a citizens committee. So. Could you expand, pardon me, could you, this is a follow-up to your question. Could you expand on the, the difference between the special use tax and the general tax and the threshold to, to get there in terms of the voting and the difference in how those funds can be used? Sure. I mean, so it started with prop 13 and then some successive propositions. General taxes are subject to majority approval. So 50 plus 1% approval. And there's no restrictions on those additional revenues, a special tax, which are legally limited to specific uses. Those require, you know, two thirds or super majority approval, kind of counterintuitively. But I think the intent is that those special taxes might have more support. So let's make them harder to pass versus general tax are less likely to have support because they are in some respects unlimited. Uh, but, uh, you know, they have a lower threshold. So, yeah. Any other questions? Councilman Bertholdt. Can I ask a question? I, I think that, I mean, having served as the liaison to CFAC, I'm just, the job that they have at hand for the purposes of ease of their job. Um, and for the community's ease of understanding. I just, I could see where, where mayor pro tem is going, but I just wanted to clarify whether or not that would make sense for them and their job. Or would it complicate things on that side, I guess is what I'm saying when we are keeping track of the activities. I'll ask the finance director to talk a little bit in my, since I've arrived, uh, my discussions with the chair of CFAC, uh, where that the desire was to simplify, uh, what, what, what was being charged to or expended from that Q and E measure. Uh, I think that conversation predates me with the, with both the committee as well and the finance director about looking to make sure that we, uh, we understand what's going towards those expenditures, uh, and make them clear to understand. And that was our attempt this year, uh, to more show that or move towards that more than we have in the past. I think that as long as the costs are in line with what city council adopted in 2021, what we choose to put there or city council ops to have paid out of there, um, it can really vary just as long as they're in line with those four activities. That's the job of CFAC. I think, I think council member was looking at it for continuity more than anything. So, um, that makes sense. You had another question. Council member Lundgren. I didn't have, this would be, I didn't have a turn. Um, I just was wondering if you could expand on the fact that we're not budgeting for the reserve fund. Is that what you said? No, I, I did not say that. Oh, I thought you did. Uh oh, what did I say? When you were going over this. I think it was the four activities per city council and the last one was their insurance financial health. The city by maintaining appropriate reserves. Yes, I did say that. We do not have anything budgeted to, um, specifically to go into our reserves. No. Ensuring the financial health of the city by maintaining appropriate reserves. We have in, I think in one year since I've been here, we did do a transfer from Q&E into the general fund emergency reserve. Um, to make sure it met that minimum 33% of operating costs. Okay. Okay. Thank you. To highlight that question, just for my own clarity and my, my, um, information purposes, the operating revenue is 53 million, uh, you know, uh, 456. And then the operating expenditures is 49. So that 4.3, three gain. Where does that money go? Just, I, I'm trying to piece, you know, I'm not following me. It sounds like a 4.3 short. It sounds like a shortfall. Not again, what are you looking at? No, that's a gain because of. Let me see what you're looking at. Okay. I'm looking at. The, the all funds, I have it up on the slide there. Is that right? And council of the pay that for all funds total. Yeah. Revenue budget of 63 million and. And then it's finishes of only 58.7. And then 58.7. So where does that surplus go? So I can follow this whole budget. It's very confusing for me. Um, okay. Um, so this is citywide across all of the 31. budgeted funds, right? Yeah. So anything that we receive in excess of what we are spending will go into the fund balance. And that fund balance is all the various fund balances or is it a reserve fund balance? That, that's what my question is. We have one fund that's set up specifically for our general fund emergency reserve. So we're not, we have nothing budgeted to add to that since it's already healthy where it is. Um, so, um, anything in excess of. Any revenues in excess of expenditures would go into the individual funds fund balance. And, um, I've just been told that that's largely the sewer fund. Okay. Gotcha. So, all right. Gotcha. You know, it's difficult to tell. It stays in there. Okay. And, and, and, and, sorry to interrupt you. In, in talking about all funds to combine, it's, it's really difficult because we're talking about the sewer, the water, the harbor, everything. Uh, and so we just wanted to sort of frame that. But you're exactly right. That if we're bringing in more money than we're spending, what's happening to that extra? And, and, and from, from a financial standpoint, it's going to the funds that create that, that extra. Gotcha. The sewer fund, the water fund are very, have very healthy balances right now in anticipation of, uh, the furthering and the ending of the capital projects. And then mostly it's because of the debt service that we will get in pain, uh, uh, very soon. And so, uh, that's where that, that extra, it's not extra, it's just more revenues that go to, to, in that fund balance to be used for that specific fund. Gotcha. Understand. Thank you. Turning it back to you. Okay. Before we leave Q and E, um, this great discussion gave us time to research how we budget revenues in comparison to HDL's estimates. So for Bradley Burns, which you were right, that is the title of the general sales tax. We're basically budgeting their estimate. We're budgeting 99.4% of what they're estimating for 2627 in the general fund. And for Q and E, and for Q and E, we're budgeting 98% of their estimate. Now in case that was going to keep any of you up at night, there you go. The second number was 98%. And what was the first one? 99.4. And I think the difference is brand's tax city attorney. I think the local sales tax, uh, does not exempt fuel or motor vehicle fuel sales. Whereas the state portion of the sales tax does. That was a change they made back in the, you know, the 2010s. Um, so I think that might be the driver, the difference between Q and E's increase versus, um, general fund sales tax. I suspect. No, that's the one big difference I'm aware of between the two, the state portion and the local portion. Yeah. I understand the difference in proportions. I'm still not a hundred percent convinced on the end results. So in other words, let's say sales taxes just doubled over the next year. Um, that doesn't change how Q and E is calculated and it doesn't change how the Bradley Burns is calculated. And if sales tax doubled over the next year on the surface, it would seem that the increase would be consistent or equivalent on, on both of those. Yeah. I don't know. And not knowing what the consultant, uh, analyzed, but I wonder if they thought maybe there's a greater chance of inflation on the fuel as a specific category, maybe. But I agree. I would hope that's it. Yeah. I think, Councilor, we have all those, uh, those numbers. So we'll certainly get that prepared and distribute them before I come back for the vote. Thank you. Okay. Leaving the general funds and moving on to the water operating fund. The water fund revenues are, except for interest, are consistent with prior year. This is because it's based on set rates and based on usage, which is difficult to predict, um, with rainfall and other variables. So those, uh, revenues from current services remain, remain flat as do fines and forfeitures. Interest income is increased greatly, but that's to bring it in line with what we anticipate receiving, have received in the last few years and anticipate for 26, 27. And the interfund transfers are the same as last year. It's an estimate based on, um, the amount of penalties we receive. Any penalty revenue we receive gets transferred to fund the utility discount program, which is a 10% discount for qualified customers. I'll jump in and just sort of use this as an example. You see the revenue on the screen, there are revenues from current services. We're budgeting the same amount that we budgeted in the previous year. And, and the reason for that is that a budget is simply an estimate of what we think is going to happen over the next 14 months, beginning july 1, going through june 30th. So we believe, uh, this is what the revenues, uh, will be from current services. It's, it's not going to be exact. It's going to go up from there. It may go down from there and we're going to adjust accordingly as we go through. But once the council adopts a budget, uh, any changes to that budget by law has to come back to council to adjust. And so we do that at mid year each year, we do that, uh, budget adjustments throughout the year. But, uh, this is a prime example of what we, we simply anticipate what we believe the revenues will be. And then we base our expenditures, what we believe the expenditures will be based on that and make adjustments accordingly throughout the year. Moving on to the expenditure side, we see personnel costs increasing and supplies increasing, services increasing. It's largely due to costs increasing, not to any particular items or services. Capital outlay costs are increasing. I believe that's for potential vehicle replacement that will be split between the water and sewer funds. The debt service is for the WIFIA sewer portion of the WIFIA loan, and that is flat, same as last year. And the interfund transfers have decreased because there's not a plan to contribute much to capital projects for 26-27, as staff is focusing on existing funding and existing projects. Moving on to sewer. The sewer fund revenues are very similarly reflected compared to the water fund. Those revenues for current services are remaining the same as the 25-26 estimates, same for fines and forfeitures, same for those interfund transfers, the same purpose to fund the utility discount program. And also the same, the interest income has been increased commensurate with what we anticipate receiving for this fund. The one thing I have to point out is an error I caught after publishing the budget. Those are the things that keep me up at night. The rental income there is the sewer portion of the rental income for the concrete plant, which we had discussed before related to the general fund. That won't be received. So when this budget comes back to you in June, it will be reduced by that 20,000 in this fund. The sewer fund expenditures, unlike the water fund, we do see a decrease in personnel costs, relatively flat. This is because we had a council approved reclassification in 25-26 of one sewer lead operator position. It was 100% funded in this fund. It was reclassed to a water resources compliance specialist and that is split funded between water and sewer. Additionally, the utilities coordinator position was underfilled as an administrative technician. And lastly, the two vacant positions that are partially budgeted in this fund, public works director position and senior civil engineer positions. When they're vacant, we budget them at mid-range, which in this case is less of the cost than when the positions were filled in 25-26. So, moving on to Harbor. Can I ask a question on that? I didn't see anywhere in there an expense for the purchase of the wastewater treatment plant, the old one? Great question. So due to the due diligence period for that purchase, we anticipate closing on June 30th, I think we determined. So that would come from the 25-26 budget and that's why we don't see it in the 26-27 proposed budget. Hmm. There's very clear rules that anything that happens on midnight by June 30th, it goes to this current year budget. And it doesn't occur, if we bought a vehicle perhaps on June 26th, then it wasn't delivered until July 5th, we couldn't pay for it out of the June, the last year's budget. We would have to transfer that expenditure when we actually take ownership of it into the following year. So the due diligence period for the treatment plant purchase, we believe will be ended and will come back to council for adoption prior to June 30th. So that expense will happen in the current year and not in the next year, if that makes sense. Well, it does, but what if there's a hiccup? I mean, is there a, is there, I mean, that's pretty, pretty close. So I, are we sure it's going to go smoothly? I would hesitate to agree with that statement. But we're always hopeful. If, if, if it doesn't happen, we'll adjust the budget. I mean, we'll adjust the current year budget and then, and come in and adjust the phone ones. Again, the budget is simply a document that, that we, we, we, we think this is what's going to happen. And if anything changes, we'll come back and show it to you. Have you vote in as we go forward. Okay. Thank you. Okay. All right. Harbor fund operating, harbor operating fund. Looking at the revenues, we see increase in the revenues from current services that are mostly leases and other fees. The leases are set to increase by inflation as are those other user fees that we discussed in the master fee schedule discussions. Okay. Interest income is increasing to be closer to what we think will be actually received. And overall, it's a net increase of 5% for the harbor fund revenues. Looking at the expenditure side, we see that it's increasing just barely, just about half a percent, as expected with personnel costs and the supplies and supplies, which are offset by decreases to budgeted services and capital outlay. And there's no capital outlay budgeted out of operating in this year. Anything before we launch into capital improvement? I'm sorry to interrupt again. I'll, I'll just follow up that capital outlay is not currently budgeted as an expenditure in the harbor fund. There is currently a couple of capital outlay items that are funded for the harbor, but not to be paid for by that enterprise fund. So we'll see that as we go forward. Okay. It depends on the dollar amount. If it's 50,000 or more, it's a capital improvement project comes out of the capital fund. So a little disclaimer before we get into this, this is not a full capital projects discussion. This is simply what we are budgeting in the coming year in a one year CIP plan, capital improvement plan. So we have a total of $9.6 million budgeted in this 2627. Some is new funding, some is reallocated funding from existing projects. There are six new projects which are listed here. And then I think it's in better detail on the next slide. We can move on to the next slide. Thank you. So I wanted to show the, the new projects and which fund it serves and the amounts and if there is any project carry forward. So it's probably obvious, but with a new capital project, there would be nothing to carry forward from 2526. So we're looking at $300,000 for Bayshore bluffs landing improvements. The 5.3 million we've discussed for the Morrow Elementary School site acquisition. $300,000 for updating engineering standard drawings and specs. And actually this one is split in equal parts between water sewer and general fund. Wild on fire engine replacement for $770,000. That's 100% funded through the mutual aid reimbursement reserves that we've been saving up for. And the supplemental harbor dredging, $150,000. And a Quintana water line replacement from the water fund for $300,000. We have some budget contributions to existing or continuing projects. $1.2 million or $3 million for the annual pavement management program. We discussed the $1 million in the Q&E fund. The remaining $296, $214,000 contribution is estimated road maintenance and rehabilitation act funding that we're anticipating. SB1 funding. $317,000 for the PD radio communications upgrade project. $30,000 for trash and recycling cans, the second phase. And $300,000 for the North T peers. Can you go to the next slide, Sean? That's what we'll see the carry forward added in. So the $1.296 would be added to estimated $3.6 million that will carry forward from 2526. That would give a nearly $5 million project budget for the annual paving program that is set to occur in 2627. The PD communications upgrade had last year's allocation plus this year's giving it $635,000. The trash enclosures project phase two has a fund balance of $20,000. So we'd end up with $50,000. And the North T peer renovations has $1.5 million. And that is a federal grant. All right. Thank you. And for a total of $1.8 million. We have two vessel or equipment replacements that, because of their costs, qualify as capital improvements. So one is to replace the asphalt sealer. This was a truck. And staffs determined it's best to purchase a trailer. It would result in the best, most efficient work. So that's $90,000. And the harbor vessel repower. The estimated cost to replace this vessel was $1 million. So doing a repower is a substantial savings of over half a million dollars. And those projects, I would say all these projects are spoken of more generally, more specifically in the large budget that you all have a copy of. This is an overview tonight. And we can also answer any questions about any of these capital projects as well. Maybe that's a good place to stop to talk about either the water, sewer, harbor, or capital improvement programs. If you have any questions. Thank you. Questions? A couple questions. Just for clarification purposes. The $300,000 for the North T pier. I know we had a $1.5 million for replacement of the T pier. Chris Munson, could you explain what you're planning on doing with the $300,000 for the North T pier? If you could, please. Thank you, Council Member LePay. Yes, with the $300,000, we were originally looking at $150,000 to do repair plans. But then this last, during this last fiscal year, we've had some ruptures on the fire suppression system. And so we're now prioritizing those repairs and the plans. We're hoping that it will be less than that. But this will also help for at least partial part of the funding of replacing that fire suppression system. And $150,000 for the dredging. What exactly is that? So the $150,000 for the dredging. Again, this is just, hopefully we won't need it. But this is to piggyback off of the federal dredging project that will be coming in later in this year. There's often times when there's areas that we would like dredge, but it's not really under the scope of the federal project. And so this will give us the opportunity to act fast and be able to piggyback onto that dredge contract and be able to dredge some of the areas that we really need dredged for the sake of Morro Bay. Since we're on budget, I'll just clarify that currently the dredging vessel is in the opening to our harbor dredging there. That is one dredge that we typically do each year. In addition to dredging our main channel in our harbor, which is scheduled to be done every five years, we're on about seven years currently that we haven't dredged. That is currently planned for this coming year entirely with federal funds. And as that dredging happens within our main channel in our harbor, this $150,000 that the director spoke of would allow us to add on to, while the boat's there, we want to do a high spot over on this side that's not covered. They would then be able to, we could direct them to do those high points within our own harbor. Any other questions, Council Member Lefe? Member Lefe? Member Lefe? Any other questions? Yeah. One question is regarding the vehicles and things on wheels or floating. When regular people go and buy something, they often trade something in or sell it and then repurchase, use that funding to purchase something. I don't see anywhere in here where there's that offset on anything. I'm sure that there is that somewhere, but I just don't see it. I'm wondering how that is factored in. Yeah, that is a great point. As far as I know, we do not trade in. What we do is we hand off, other departments or divisions adopt the vehicle that's no longer in use. So police and fire have given vehicles to, transfer vehicles to recreation and to harbor, I think. Our IT, Public Works transferred one to IT so they could drive equipment around the city. I'll say by and large those vehicles are not worth much by the time we get done using them. They are not anything special that we could get much money out of if we sold them to reduce the purchase cost. So we traditionally try to make more use of them throughout the city. So Chief can talk about sort of what they do with theirs. Yeah. Just to help my friend Emily out on this, because I think the police department is one of the bigger contributors to this type of asset transfer. And so in law enforcement, police, public safety vehicles, there's a requirement and a term of life on our vehicles because of the emergency operations. Fire goes through the same thing. But when we are complete with our patrol cars, what you see and what you've seen over the years is we will actually take those vehicles that are no longer an option for emergency response pursuits, things like that. And we will transfer that asset to Harbor. Harbor is currently operating several of our vehicles, whether they are emergency police vehicles or detective vehicles. Another department that uses many of our vehicles is Water Public Works. We transferred an asset of our Kubota that wasn't the proper use and reasonable purpose for the police department on an operational scale. So now that asset exists with the water department at the new water reclamation facility. So we in law enforcement tend to pass down assets on a regular basis, excuse me, on a regular basis to other city departments. So that saves that department from having to actually purchase any kind of vehicles. And those vehicles can continue to operate long into their 100 to 200,000 mile range and in excess of 15, 20 years. So, no wonder Morro Bay has a parking problem. Okay. Let's see. What else did I want to ask? In addition to that, while you're looking for your next one, we do auction off vehicles. I recall that now. So we have auction property. We get some small proceeds from auctioning vehicles at the end of their life. Right. Okay. Okay. Okay. So let's see. Lost my train of thought. Well, I did want to know about, I have a question about the Quintana water line repair. I guess I don't really understand that. Is that maybe? Thank you. Okay. Okay. Okay. Good evening. Oh, you. Can you, yeah. Could you describe that a little bit better for me? So in October, there was a leak that caused a slope failure. You might still see the plastic covering slope there off Quintana. And this project would be to replace an old undersized section of the pipe that would be in danger of rupture if we're working nearby with a slope repair. So it's in conjunction with that slope repair. Okay. So it's old. To replace approximately 200 feet of asbestos cement pipe that's subject to, you know, rapid, you know, bursting if there's disturbance nearby vibration. And I just, because we did all of that work on Quintana with the sewer plant, the new sewer plant. And I just thought maybe it was something there failing or it's not that. It's not related to the conveyance pipelines that go to and from the water resources facility. There's a water line that's actually off of the street by the channel. It's in the dirt. So it's outside of the pavement. And it's on city property because, and then it goes down into the ditch, which is not city property. The property line is further away from it. So the water line is within city right of way, but the slope failure is on private property. Okay. So the, the, and is that due to the, all of the trespassing that was happening there or that the slope failed? Undetermined the cause of the slope failure. It was saturated. It was the rainy season. There were, there were rains. So I attribute it to saturated from the rain. Okay. I have a question. Nate, I have a question while you're there. Can you talk about base shore stairs? Sure. Thank you. Oh, just an overview? Hundred thousand. I mean, is there any alternative to that? I mean, it seems like it's, I know it's public property, but it seems like a very private use. The, the project that was envisioned when I started in October was a revetment type riprap. And I thought that the users of that facility would benefit from something a little more easy to get from the kayaks down to the, to the water. And I was, the revetment would be like an ankle twisting environment. And so I'm exploring a bulkhead, you know, like a four foot timber pile with timber lagging, a short wall to armor the base of the stairs. And the cost is largely, you know, two thirds of that might be construction, like 200,000. But we need a topographic survey. We need geotechnical information to support the structural design. So there's, you know, element soft costs before you get to, to construction of approximately $100,000. All right. Within that budget. Can I add on? I am, you know, got involved in this project a while ago. And we got a bid from Associated Pacific, as you well know, for $100,000 to just do the, the bottom part, the revetments. And then I was told by Greg that there was some structural damage on the bluff area, water sliding and stuff like that. And so that's what I figured why it was going to be so much more expensive. And so, you know, I think that's a good thing. And I think that's a good thing. I think that's a good thing. I think that's a good thing. I think that's a good thing. I think that's a good thing. I think that's a good thing. I think that's a good thing. I think that's a good thing. I think that's a good thing. I think that's a good thing. I think that's a good thing. I think that's a good thing. I think that's a good thing. I think that's a good thing. And they have expressed interest. Now, they didn't guarantee it, but I had a meeting and then I was told to stand, stand back. And so if you would like me to do that for the city or, you know, you can do it. They, they, I think, would be willing to fund some of that. Councilmember Leffrey, can we just, you're getting off on, on a different topic as far as that would be something to direct with the. I apologize. I think it's a great idea. Again, this is a budget. If this is in, including the budget, we then have to go through the actual process of completing the project. And that due diligence will be part of that. The actual expenditures is part of a conduit we brought back. No, that's a great, great point. Good question. Just need to be directed to the city manager. So as far as the structural part, if you could address that, yeah. So the upper part is also structurally unsound from, from what I understand, you found some water leakage and stuff that the stairs is going to be. Um, um, compromised. One of the things that I observed is that there's one drain inlet in Bayshore Drive, Bayshore Drive that, unless it's swept clear of leaves or it could be inundated and blocked by leaves or, or other debris, um, spills over. And I looked at the original subdivision plans for the bay shore. And, um, they had a berm along the top of the bluffs. They were concerned about water flowing down the bluff and causing erosion. And, um, the overwhelmed drain inlet on, on Bayshore spilling over, I think was a direct cause of a lot of the, you see, erosion around the stair pilings. So we did complete a project recently to add a second drain inlet next door. So, and it has a larger curb face opening. So the leaves can block the grate, but then the water can flow even if the grate is blocked by leaves. Uh, so we're hopeful that that resolved the issue of erosion coming from rain, uh, down over the bluff. Uh, the erosion from the harbor still poses a concern. Um, so that's where the, the armoring at the base is, is this project before you. I think that if we don't get the, uh, um, revetment, um, um, the erosion settled sooner than later, we're gonna lose those stairs. Seriously. I mean, I, I. We share your concern. Yes. Also. Thank you, Nate. Um, while you're there, I don't know if this is for you, but, um, I think it might be. I just am curious how many trash cans that is. Is that you? Not for me. Not for you. Okay. Damaris. That's Mr. Mendoza. Oh, Carlos. Let me see if while you're here, what about the, um, the trailer? Would that be Carlos too? I think it is. Engineering standards? Specs? No, you're free. No, asphalt. Thank you, Mr. Mendoza. I'm curious how many trash cans you get for $50,000. Yeah, that's a, that's a good question. So we had a very successful phase one, uh, trash can project. And if you, uh, walk down or drive down, uh, Embarcadero, you'll see the exact same trash cans that we're proposing. Uh, they're the duplex trash recycle with the planner, uh, box on top. And each one of those, uh, is about $2,700, uh, for each one of those trash cans. I think we're estimating off the top of my head, uh, we're trying to install them on Morro Bay Boulevard and Main Street. I think it's about 25 to 30 trash cans. Okay. Thank you. And then as far as the trailer, the asphalt trailer, um, I, I thought in the budget there was a cost for, um, on-call pavement. And so could you talk a little bit about the difference between, I mean, it sounds to me like we have that as a ability, an ability to call and have on-call pavement versus now it sounds like we're trying to do it ourselves. Is that, am I right? Um, so I would say there's kind of three faces to, um, street repairs. So we have what we can do in-house, uh, and then we have what our engineers do like once a year, every couple of years, where they do major street rehab, slurries, chip seal. In between that, there's a sweet spot where, uh, our workforce can't handle certain projects and it's not cost effective for our engineers. So there's some areas where it requires more than about four tons of asphalt to be brought in, maybe some specialized, um, equipment. And so that's what the on-call paving, um, contracts for. Um, as far as maintenance, we, we receive multiple requests every, every day for, um, uh, pothole repairs, small dig outs, curb repairs. And so the patch trailer is what we're, um, looking to do that work with. Okay. Thank you. Sure. That helps. Okay. Left. Thank you. I have a question for our harbor director, Director Munson, with regard to the vessel repower of one of the harbor patrol boats. Thank you, harbor director Munson. Have I told you how much I like your title lately? Uh, my question for you is, uh, you list as one of the benefits of the repower is improving fuel efficiency and reducing emissions. You probably checked into this, but it's, it's worth asking there, there are some grants available through, um, I believe, uh, carb and, and APCD may, may not be for municipalities, but certainly through carb, um, for repowerings that, that result in reduced emissions. Have we explored that opportunity? Uh, thank you, council member Echols. Yes, we did. I did reach out to, um, Andy Mutzker, um, from APCD regarding these, uh, grants. Unfortunately, we won't be able to, um, get those just because ours are still, um, the tier three engines. And, um, but we are, we have submitted an application for, uh, Division of Boating Waterways, and we're hoping to get about 160,000, um, from them. So, um, and we are keeping our eyes open for other ones. Uh, another example was, um, the Diablo Canyon has, um, an emergency services, um, grant that they do once a year. And so we've been reaching out to them to see if we can possibly get some funding from that as well. Thank you. And I'm pleased to hear that we explored the emissions grants. Thank you. Thank you. Can I ask one, one, you one question about that? Um, I forgot to ask this. How, so I like, I love the fact that it's, you're repurposing, you know, a vehicle. I think that's, uh, efficient way of doing things. Um, but I would wonder if it, is it warrantied the work? Is it? So some of the, some of the work will be warranted. Um, once it's done, but unfortunately, a lot of the things that you, uh, what, one of the issues that we're running into right now is, is corrosion. And we, we just can't, that's not something that's normally, um, covered under warranties, but as far as like the engine and the, the, the quality of the work, that's all warrantied. Thank you. Thank you, Mr. Manson. Council member, I have some questions. No, thank you. Turning it back over to you. I just know, I, uh, we talked about grants. I've reminded that, that, uh, the chief and I have worked together on applying for two different grants for, or, or, um, earmarks for the radio towers. Both of those were come back denied and, and not funded. And so we, we do continue to, to look out for grant opportunities and we'll do so more as we go forward. Just want to note that. Can I ask one more question? Um, what, is there like a criteria for these projects, these capital projects? Is there like how, I'm, I'm curious how they show up in this, in the budget and what the vetting process is? Um, being this is my first budget, I'm really unfamiliar with how we have brought projects in the past. Uh, my goal for the team, uh, as we move forward is to, uh, what are, we talked about as, in the finance team was, let's, let's look at the most crucial projects we have for capital funding for the coming year. Uh, talked to the executive team, talked about, uh, things that they needed for their, individual departments to be successful. Uh, um, as you are, as you saw, the revenues are extremely limited. Uh, and so we tried to focus only on those high priority projects, uh, for this year. Uh, because again, uh, we were new to the budget creation process, two thirds of us anyway. Uh, we focused on one year capital plan. The goal is to come back next year with not just a one year plan, but a five or a 10 year plan to talk about, um, items within our departments that we know will be failing. There may not be failing now, but we anticipate in three years, we may need to replace a certain piece of equipment or a, uh, HVAC unit, et cetera. We need to do that analysis with all of our departments to ensure that, uh, we are not surprised by maintenance and upkeep, uh, divisions because, uh, experiences because, uh, we have not maintained them moving forward. And so the goal here longterm is to come up with a comprehensive capital improvement plan that shows, uh, everything that we own and, and how we might need to, uh, replace or repair that moving forward. Uh, and so, uh, this year we're trying to just highlight the, the main items that we really feel like, uh, our priorities for where we are. Ask the division, ask the department directors to, uh, focus on those items they really need in order to do their work day to day. Come back next year with a more comprehensive plan, if that makes sense. Yeah, it does. Um, and, and, and, and it's also, you make sure that they, they absolutely need, like, all of these things, like the boat repair and, like, they can't wait another year or anything like that. That's vetted, that's in the process of. It is, you'll notice that, um, we, we. Sorry to pick on the boat repair. I don't mean to pick on that one. No, no, no. I, I think it's a good point in that, in this year you'll notice that the, the budget that is brought forward, um, uh, by us, uh, um, shows that the general fund is overspending, uh, by 900,000 and the, um, Q&E fund is overspending by 700,000. Rough numbers. Uh, the goal was to present all of these projects to the council for consideration and then have you, uh, perhaps, uh, we, again, we have, our last slide talks about how you wanna move forward with this. Perhaps you want to, to ensure that our annual operating budget, uh, is balanced. Uh, is balanced and so we would look for that 1.6 million or so of cuts in order to bring both Q&E as well budget fund to balance year over year. Uh, that would be made up of the projects that we're talking about tonight and, in deciding whether to fund them or not to fund them. Uh, I would encourage you not to just listen to what we have tonight, but to go through the budget books for each of those projects, 'cause they're talked about in depth or ask questions as we go through. Uh, but, uh, especially for this year, I didn't wanna come in and make the call of whether we, uh, we're funding, uh, uh, harbor boat or a, uh, police radio tower. I think those are needs that are equal across the city and, and, and not just needs, but extreme needs. And so, uh, things that have been, uh, been on the shelf for a while now. And so, uh, the goal really is to have that conversation with you, allow you as a council to deliberate on these items, uh, to hear about them, so that you understand what it is that they are made up of, and then move forward with your, your, um, instructions back to us to come back either with a balanced budget or use fund balance to make those and continue with all of these projects. So, you know, sneaking ahead, that was the last slide that we have is, uh, uh, asking you for your comments. Okay. And the city has no shortage of immediate needs of, of projects that are, you know, and one of them, um, is the storm drains. And I'm wondering, I might need, uh, Mr. Stong up here again, but with that ditch drainage thing, the water leaking, is that affecting the, that, I would assume that water is going into the storm drains and like. Uh, on Quintana? Uh huh. Oh, there's no more water leaking. Uh huh. Oh, there's no more water leaking. It was just a saturated slope at the time. Oh. It's, uh, the, the water department has managed to, to, to shut off their, or clamp the, uh, the leaking portion. Oh, that's good. So the water line is not leaking. And there's no further, uh, water going into the, the creek. Oh, that's good. So it's just unsightly and. It's a fragile pipeline that's close to the work zone where we would be doing, you know, heavy equipment, slope repair. And the first order of work would be to relocate, relocate the water line under the pavement away from the work zone so that it wouldn't, um, burst during our construction. Okay. So construct a new water line consistent with the, uh, the one water plan. So, um, you, you've seen that, that project to transmit, you know, our storage on the south side of the city, not to get into the whole, the water plan, but, um, a 16 inch, uh, water main, uh, transmission line going from the, the south side of town to, to deliver water to the north. So this project would do, uh, two things. One is replace an old, um, fragile section of eight inch line with a larger 16 inch line. So avoid the, the slope failure and also be consistent with future, uh, water projects. Okay. Thank you. Sure. Okay. So moving into the forecasts we are sharing tonight, um, mostly for the sake of time, just the general fund forecast, the forecast for the other four major funds are included as part of the staff report. And if desired, we could bring them back to a subsequent meeting to discuss more fully. Um, for tonight we'll look at the general fund. Um, the assumptions have been refined last year and in continuing this year to more closely align with actual revenue expenditures. In other words, be less conservative than perhaps we have been in the past. So current services and revenues, um, and other operating and maintenance expenditures are increasing by 3% or estimated CPI, similar to, um, sales tax in the forecast. Property tax 4% which is, um, pretty close to what SLO County has been projecting. Harbor leases are projected at 3% and personnel for the current year only 26, 27, I should say, future current year. Um, 6 to 8% increases according to the current MOU, which, um, as we're aware that ends at the end of, uh, June, the coming fiscal year. June 30, 2027. Um, after that in 27, 28 and forward, it's a modest COLA. And then the personnel costs for pension, the, and the personnel costs for the unfunded accrued liability. These are both based on the numbers that CalPERS has provided. So the normal costs, pension costs going out 10 years, they average about 1.05% over the 10 years of an increase. However, the UAL, that's a little different. And then the average of a friend, it increases annually through 2031, 32 up as high as 8% and then decreases thereafter. So, um, you're probably used to seeing more of the kind of rainbow huge ton of data forecast that's attached to the staff report. So, um, last year I tried this out, so I brought this back again for a little easier consumption on the spot. So this shows 2526 estimated, 2027 proposed numbers, and then the 10 years out, with the first blue bar being the beginning fund balance. The orange bar being the anticipated revenues, the gray is the expenditures, yellow is the Indian total available fund balance, and that compares to the green minimum reserve. So this shows that ongoing expenditures exceed ongoing revenues for the next six fiscal years, from 2026, 27 through 2031, 32. Although revenues are projected in the forecast to keep pace with estimated inflation, the CalPERS projects the UAL cost to rise each year during that period, peaking at 3.8 or nearly $4 million in 2031, 32. Those costs then are projected to decline gradually through 2032, 33, followed by a 25% drop out in 36, 37 to 2.7 million, which is the final year of the forecast. This also shows operating revenues returning to a surplus in 32, 33, which would allow the city to make the modest investments again in capital infrastructure within the current year revenues. From 33 to 34 through 36, 37, the surplus is forecasted to increase year over year as the UAL costs decrease. This will allow for some flexibility for council in budgetary decision making. I want to jump in and say council has a good understanding of what UAL is. Do we need to understand an explanation of that? Those costs are showing to increase, as we mentioned, 8% annually to 2031, 32, at which point we are hoping that they will decrease, allowing us to have revenues over anticipated expenditures at that time. Just wanted to note that. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. I'll ask our finance team to- Well, CalPERS is our retirement system, and us, like other California cities in their system, they had generous retirement packages for folks who came before us. And basically, the unfunded accrued liability is them not being able to pay for it. And so, we're paying for it now for those who have or will be retiring under those plans. So, basically, the city is on the hook for- the state is on the hook for retirement of employees that have come before, as well as current employees and future employees. And there is a current deficit in that liability that- a change was made several years ago that require governments to show what that unfunded liability is. And so, in doing so, there is an attempt by the state to make sure that those retirement funds remain whole and therefore passing those costs down to local governments. And one last follow-up question on that for Director Conrad. You know, it was 10 years ago or so that we heard about the unfunded pension liabilities in the public sector to a shrill degree. It was a crisis. And there have been reforms done since then. So, as a matter of fact, our forecast for longer term show that we're eliminating the liability. So, have there been reforms done over the last decade and have those been effective in reducing the outstanding liabilities? Okay. I'm going to attempt this, but I'm not going to be able to speak perfectly fluently to it. But one change that occurred is the Tier 3 or what's called PEPRA. And those employees hired now under PEPRA, they're responsible for 50% of their pension contributions as opposed to much lesser percentage contributions from employees in the higher tier plans. Several years ago, 10, 12 years ago, the state changed the retirement plans that employees were able to get into. Current employees that were under a certain plan, they couldn't change legally, so they were still in that plan. But as new employees came in, they went into a different tier of programs and now they've introduced a third round now doing that. So, the state and they make adjustments, the retirement system makes adjustments to those that hopefully leads to a more robust retirement program and better funding, if that makes sense. Thank you. I will add that we have these same charts for all the other funds. We chose not to display them here. We can talk about them as we move forward either outside of the meetings or somehow that you would like. But we have these forecasts for 10 years for each of the major funds. We chose not to put them in tonight due to time constraints. And so, that brings us to our recommendations for us. Again, we have presented this information to you tonight. We are not expecting action to be taken tonight. Action will come in two weeks when the council chooses to adopt the budget during that time or the following meeting if you need. But we recommend approve an increase of a support services technician from .75 FTEs to one FTE, which will be funded by eliminating a part-time and temporary position. It is -- we can get into specifics of that. But because that is an FTE change, we're asking for the council to consider that in the formal budget adoption. And then mostly, we want council to look at the general fund and measure Q&E proposed budgets and give us feedback that you'd like them as they are, you would like to change this or that, during an interstructural balance or talk about specific projects if you want more information on that. Obviously, this is an ongoing discussion that council -- each individual member can have as we go through and work with you over the coming weeks to ensure that we bring forth a budget that is what you want it to be. You obviously, when we come back, can make changes to our proposed -- revised proposed budget. And then that will be the adopted budget that council brings forth. So we'll open it up for any comments you want to share with us. Thank you, Mr. Craig. And thank you to Ms. Conrad both and all your team for the work and the executive team. Thank you for being here to answer our questions. Before we go to public comment, does anyone else have any questions right now? Are you ready to have public comment? All right. With that, I will open public comment on this item. We're all looking at you, Betty. We're a little stiff, Betty Winholz. I reduced my two pages down to half a page. So I do want to say I hope you will go for the balanced budget, that you won't let us be in the red. I also want to bring to your attention, as the chair of the Rec and Parks Commission, my appreciation for Mr. Carmichael putting in a frustration that we have expressed regarding our organizational structure and how it fits into the division department approach for Rec and Parks. And so I just want to bring that to your attention since it is part of the budget and expanded beyond just numbers but intent of the departments. I do, as you know, am very much of a tree hugger and I want to know where the tree cutting is occurring, where the money is coming from. There's a tree division with zero next to it, so are we cutting and not trimming any trees or what's going on with that? I'd like to know if under the public works as we move forward with our capital projects, are we using design bid build approach or is it a design build and do we know which one is more efficient for us to get on our projects done but to be cheaper? I mean, I think we're not a fan of the way to do that. I think we're going to be able to do that. I think we're going to be able to do that. I think we're going to be able to do that. I think we're going to be able to do that. I think we're going to be able to do that. I think we're going to be able to do that. I think we're going to be able to do that. I think we're going to be able to do that. I think we're going to be able to do that. I think we're going to be able to do that. I think we're going to be able to do that. I think we're going to be able to do that. I think we're going to be able to do that. I think we're going to be able to do that. I think we're going to be able to do that. I think we're going to be able to do that. I think we're going to be able to do that. I think we're going to be able to do that. I think we're going to be able to do that. I think we're going to be able to do that. I think we're going to be able to do that. I think we're going to be able to do that. I think we're going to be able to do that. I think we're going to be able to do that. I think we're going to be able to do that. I think we're going to be able to do that. I think we're going to be able to do that. I think we're going to be able to do that. I think we're going to be able to do that. I think we're going to be able to do that. I think we're going to be able to do that. We talked about this updated current budget. The Morrow Elementary absolutely should not be part of this. That's a separate discussion. You should be getting your money. We've talked about selling property. That's not in there. So it seems to me that's drawing part of the red into our budget. I I'm curious and no one has mentioned, what is this update for the engineering standard drawings and specifications? I don't know why and what that means. Let's see. I if the school district is not interested in a full time police officer, I'm wondering why the city is. They have two vice principals to take care of discipline. And so is there another way to do that than have the city spend $150,000 on school property? I object to that. I strongly object, of course, to the Cerrito Peak clearing. It's an Esha. We have deer living up there. I don't think it should be touched. And then real quickly, the utility discount and the housing and move funds were both in the red. How does that happen? Because it comes out from other places. And then just real quickly, Cloisters seems to have a little bit of extra money. Why has the path at the back next to the dunes not been paved again? again. It's really rough. Betsy Gaudette Cross, North Morrill Bay. I'm just wondering if you would consider this idea as a former Union officer and Morrill Bay resident. I understand the importance of accountability. The city should be interested in timesheets to justify the work being accomplished for them. Departments should be interested because they pay interfund transfers for work done for them by other offices. Employees should be interested because it guarantees them their breaks and it keeps us more informed on how our tax money is being spent. Other industries document their work. City employees should also. I don't know if this, if the city council or the city managers who's responsible for this, but I just wanted to bring the idea of timesheets up as a way of keeping everybody accountable. And in the spirit of efficiency, efficiency, and this really doesn't have anything to do with this, as a member of the audience, it seems less efficient having members of the staff in the back of the room where they have to walk up front to come to the microphone and answer questions and it's kind of, it's just efficiency kind of thing. and I know I'm going to be known as the person who keeps pastoring you about acronyms. And you are getting better, but there are a few things that maybe could even be put on like PowerPoints like UAL or Measure Q&E. I was not here when that was happening, so I don't know what those things are. So just a reminder, thank you. Hello, everybody. Natalia Merzoyan. Thank you all for all your hard work and the staff as well. I pretty much agree with everything Betty said and also Betsy and especially Betsy's comment about the acronyms because I'm kind of a linguist. I studied a lot of languages and this is a language that puts a wall between you and your audience. And I can understand it to a certain extent, but as Betsy said, it would be helpful to have a key for people to look and see what FTE means and stuff like that because, you know, I'm pretty good at languages, but I'm not here enough. I have to confess to learn all your lingo. So if you want to break down that wall a little bit, you can do something about it. And as far as the school is concerned, I, yeah, I don't know why we're not selling things so we can pay for it because that would solve a lot of problems with the need for different kinds of housing and infrastructure if those properties could be used for something else and we could still have the school property. Thank you. Good evening. My name is Courtney Schepler. I wanted to comment briefly not only on this year's fiscal budget, but I looked out about five years. I did this last year as well and I sent you guys a summary last year. But when I look out over a five-year period, what feels kind of pinchy and uncomfortable this year gets a lot more painful in these coming years. There are assumptions in this five-year budget that we're going to increase revenues over 3% a year in these out years. And I think we've had, there's been a lot of different conversations, but we're not seeing those tangible activities that would actually drive those revenue increases. There's a lot of potential out there, but those things are also not likely to come to fruition in a 12 or 24-month period. A lot of them are things that would require several years before they come to fruition, maybe four or five years or longer. So those revenue projections are kind of already fairly optimistic and I also don't know that we really have plans to deliver on those as they are. In addition to that, you've got the structural budget deficit that's occurring. So we're running a deficit for quite a few years. The projections year over year for things like personnel costs, if we look out at 28, 29, 30, they're higher now in this year's budget than they were in last year's budget. So a lot of these costs, when we look out, seem to be higher. The capital projections in the general fund, that's what I'm talking about is the general fund. Last year we said over the next five years we're going to spend $8 million. This year when I look out over five years we're only spending $770,000 and we're even talking about needing to make cuts for that to balance this year's budget. So there's a lot of difficult financial squeezes ahead and I would really ask that you, not only in making your decision about this year's budget, but in the future really ask yourself, are you setting the city up for success to have a sustainable long-term budget to provide us with the services that the residents are looking for? We don't want to see our pavement maintenance cut. We don't want to see our storm drain maintenance cut and things like that. These are all important things. So think about the revenue side. Think about how do we, how do we meet our needs with what we've got? Thank you. Hello, I'm Margaret Carman. Thank you for all the work you guys did. And I just, I know that the CFAC meeting got canceled in May and I would guess that you didn't have this budget to show them in April because it took a lot of work to get to this point. So I just want to make sure that we have a CFAC meeting before this is brought back to you guys so that we can follow our rules about having them look over things before you approve it. And I very much want to go along with what we've said that it feels like we're being boxed into you're going to take out a loan to do more elementary school instead of looking at the other possibilities. I don't know if that's true or not, but when we put it in the budget that we're going to have a loan with interest, we're not, are we, is it then eliminating the possibility of selling properties, building houses on that property rather than giving away our sacred soccer fields and land in the middle of town? I'm just going to go through my little list. We tend to use the word now services and, you know, we like to change language so it doesn't really make it sound as what it is. And I think we should continue to use the word contractors so that people know that we are, we always, it seems like every project we do, it costs so much money because we're always giving, consultants, consultants, consultants, so there, I say that. And it's like, I really would rather you not take, eliminate street paving and repairs and do $100,000 fire mitigation that the state fire marshal isn't requiring on Cerritos Peak. and isn't it a lot of, a lot of rock and there's got a lot of deer and Esha and all that so I think we could save $100,000 with that. And I totally agree with, the school system should provide any kind of, you know, all that for the school system. And this is just something I've dealt with for decades now because it is in some of the staff report about having a water smart meter. Smart meter doesn't save one bit of energy any more than an electric smart meter does. And I would love for the, for the council to have a breakdown of how much money does it cost to buy a new meter. you, you won't even be able to find out the energy costs and the money it costs to make that new meter. So, to look at like, oh, you say, well, I'm not gonna like hire anybody to read it but we have so little control over the EMFs that we are barraged with and I would like our council to take a stance and say, I don't want to put wireless smart meters on our water tank. So, that's what I want to say about that. And if you want to know any more, I'm a wealth of information on that topic. And, we talked about measure Q&E, the parks and I think our parks have been neglected and they need help. Good evening, Mayor, Council and staff. We talked about a capital project and I know we're gonna have capital projects in the future. But, one of the obvious to me because I watch I walk Beachcomber every day, twice a day with my dog and there is in the one water plan was requirement because of a leaking infiltration and exfiltration of the main sewer line on Beachcomber. Now, that project, I've been walking it and I don't know if you know about how sewer lines are built but a manhole, when it's built, it's on a concrete base and it sticks up and the sewer pipes run into it. But, if you walk up Beachcomber, you'll see that the manholes are growing. And, you say, that's impossible. How does manhole grow? Well, what's happening, obviously, because the sewer line is in the curb on the west side of the street, that whole hillside is settling. It's been settling for some time. So, this week, I was walking down in the campground around the kiosk. There's actually moisture, water running on the edge of the parking area and the hillside there is starting to slide down. I know the hillside is not our responsibility but the state parks is our neighbor and so that capital project needs to be looked at it. I think that clearly, it's enumerated clearly in the One Water Plan but I'm afraid it's going to be just like the erosion on Quintana where all of a sudden it leaked and whooshed out. But, if we lost 2,000, 3,000 feet of the sewer line on Beachcomber because of the exfiltration problem, this budget we have wouldn't even cover the problem. Thank you. Anyone else for public comment on this agenda item? Are there any raised hands in the queue? There are no raised hands in the queue. There's no other public comment. I will close it and bring it back to council. FTEs are full-time equivalent. Just throw that out there. I would ask a question. Community development, I agree. What is DRA? That's short for developer reimbursement agreements. Thank you. Yes. And just on the note of acronyms, this of course is a problem for many entities and our budget includes a glossary which attempts to include all of the acronyms that we use. And if you find any missing, email me and I'll throw them in. Thank you. There was a question and I had that question too when Nate was talking about the $300,000 for the, or sorry, Mr. Craig, you were for, I think the engineer, somebody was, engineer drawings, but then it said it was times three that it was from three different accounts. So is it $900,000? Divided by three. Oh, divided by three. Yes, $100,000 each from general fund, water fund, sewer fund, or not general fund, excuse me. $100,000 each from that. And what is that? Is that a mandate, update required? I'll invite Mr. Stong up, but from what I recall from our conversations, the current standards are a few decades old and so it's time to update. Four decades. Four decades. Thank you. But yes, woefully out of date and in need of a comprehensive update and there have been attempts to piecemeal it over the years with using either staff resources or a little civil engineer shop, but not a full-blown project with a deliverable of a new set of specifications and standards at the end. Sorry to interrupt, do you have an example perhaps of an outdated spec from 40 years ago off the top of your head? Sorry to throw that out at you. We just constantly run into one off. Our public works inspector will be in the field and the old spec is not what we currently want so we have to describe it to every contractor. No, we actually want this other box or material. So it causes daily problems. Thank you for the clarification. I appreciate that. Sure. Thank you. And then, Chief Watkins, can you address the comment on the SRO, please? Oh, school resource officer. See if we can talk in all acronyms. So, yes, thank you for the question on the school resource officer. It's important to clarify a few things and hopefully I can do that. The police department has allocated 18 full-time positions and have been at that number for many, many years. In 2019, when the school district committed to a contract of funding 100% of an officer's position for a school resource officer, that is when the police department took one of those 18 sworn positions and committed that to the school on a full-time contract. As an SRO, the position handles not just the presence and the security and safety on campus, but they also handle suspected child abuse reports that come in daily. They handle all crimes investigations involving juveniles. They handle traffic safety enforcement around both schools. They also handle special safety and assignments involving the youth in our community. The officers assigned to the school resource officer position is by definition a juvenile detective and we use them as such. The operational plan for the officer as we move forward is to continue as a juvenile detective, but bringing them back within the police department to be able to continue the demand that the youth in our community is deserving of. as juvenile detective, it is no longer a school resource officer, meaning the officer is no longer assigned to the school, not Moravey High School nor are they Del Mar. It's important to note that the funding is in question for reimbursement to the city. However, the work for officers and the need for the in-depth investigations is required and not a possibility for our limited patrol staff. So essentially what is happening is the school is no longer reimbursing for that 18th committed position. So that position will no longer be a part of the school and it will be brought back in-house to support our youth community and all the things that that juvenile detective does on a regular basis. Thank you for clarification. I appreciate it. And then there was another question Ms. Conrad about the housing in lieu and the utility discount being in the red. Sure. So the starting with the utility discount, those amounts are based on actuals. So it's funded through penalties paid into the water and sewer funds and then we make the at the end of the year we transfer into the utility discount fund 100% of the penalty revenue received and then we do an analysis of what does what is the 10% discount equate to in dollars and we transfer that amount out of that fund back into the water fund to make it whole and to the sewer fund to make it whole. So they just tend to be different amounts. Thank you. Thank you for clarification. And the other one. Yes. The housing in lieu. Housing in lieu. It's not expected to receive funding this year but we are budgeting the required plan update. Housing. Thank you, Mr. Singwald. Housing element update which is an allowable use of those funds. Thank you. Question? Thank you, Madam Mayor. Yes, I have a question for Director Singwald with regard to the expense for the housing element update. I'll preface my question just by saying I do have some concerns that we're using a majority of the housing in lieu fund for the element update as opposed to another allowable use that would be for affordable the development of affordable housing particularly with the fact that we've had so much discussion about potentially adding affordable housing as a component of some of the properties that we're looking at acquiring. So here's my question for you with that preface. The expense is requested is $235,000 for the housing element plan update and I'm familiar with the plan updates process but is that what proportion of the plan update expense is that? In other words does the $235,000 cover all of the housing plan or all of the housing element plan update or a portion of it and if it's a portion approximately what portion? So in speaking with some consultants and other community development directors in the county I estimated that would be the full cost of updating the housing element approximately $235,000. Okay. Thank you for that. Can you explain a little bit more than if we were not to use the housing in lieu fund balance to pay for that how would that be paid for otherwise and also if you could just explain and I'm sorry I didn't get a chance to ask you this before the meeting tonight but if you could explain a little bit your desire or logic behind using the affordable housing in lieu fund to pay for the housing element. So knowing that we have to update the housing element and that can be a fairly expensive process I wasn't looking forward to submitting a budget request for a general fund to pay for that cost and then I realized looking at our budget that there is this affordable housing fund that has a positive balance very close to the amount that we estimate we need to update the housing element so I thought that was an opportunity to use that fund and not have to make a request for a general fund for that amount. Thank you. Thank you. Thank you, Mr. Singelwald. Well, pardon? Everything was on the front. Any other questions before we move into deliberations? Questions for staff? Mayor, may I speak to the category of services? Yes. I definitely don't want it to appear as though we're cloaking contractual or consulting services under the term services. That is not the case as spelled out in detail in the staff report. So let me go down just a couple major categories of what's included in services. Number one is insurance coverage for the city. It's $3.4 million. Their state water contract is a service at $2.1 million. Then we get into some consultant services like financial audits and sales tax specialists and actuarial services for pension and other post-employment benefits, cost allocation plan study, outside legal counsel, on-call services. Here would be some services for engineering and inspections and surveyors. They're federal and state lobbying firms, short-term rental compliance, the housing element update is falling under services. Contractual services are on-call services for plumbing, electrical, locksmith, and roofer, though if you read my staff report it says rumor. It means roofer. Pardon that. Tree maintenance. May as well speak to that at the same time. We don't have a tree division budget called out separately anymore. It's been folded into the streets budget. So you'll see tree services in the streets budget. Police and fire dispatch services, waterfront maintenance and cleaning. I don't know if I need to go on, but electricity costs, software and digital services, disposal costs, maintenance and service repair for equipment and vehicles and vessels and machinery, animal services, security monitoring. So it's much more than just consultants and contracts. Thank you, thank you, Ms. Conrad. I appreciate that. Actually, before we move into deliberations, I do have one more question. Chief McCrane, can I ask you about Cerrito Peak, about that? What happens if we don't allocate the money? What are the pros and cons of that? And I know we're concerned always about our fire safety loads, but I would. Mr. Mendoza also has an arm in that, so I think he has some information as well. Thank you, Mr. Mendoza. I appreciate it. As Chief McCrane explained earlier, it's been a partnership now for about two and a half years between the fire department and public works to try to get some work done at Cerrito Peak. Part of it is the Municipal Code, Chapter 8.12, requires that open space parcels have a hundred foot clearance from homes. And so if you look at Cerrito Peak, it's surrounded by homes. Also looking at what's allowed on the property, so the conservation easement on that property allows the city to perform fuel reduction and tree work. Like I said, we've been working on this for a couple of years, and I know that one of the concerns is the environmental impact of doing fuel reduction there. And so we've tried to do our due diligence by reaching out to the Circe Society, who is a well-known environmental group, that protects butterflies. There's a monarch butterfly grove in that area. They provided us with recommendations on how to avoid certain clusters of trees. They've seen monarchs there. We've also had our master arborist write up a fire reduction program for us to conduct that fuel reduction. and we also have biologists that will be doing bird and mammal surveys before any work starts. Thank you. If I may just add on to that, what we're talking about is cleaning up the ground litter. The eucalyptus up there creates a pretty substantial amount of ground litter, which is ripe for fire. And then just the dead branches and the trees. We're not talking about removing live trees or anything like that. We're talking about removing the things that are hazard to the people that do hike and go up and enjoy that open space is taking out those dead snags and dead branches and then removing the ground litter and the brush that contributes the latter fuel that would go from a ground fire up to the treetops. So you thin that out a little bit to prevent that spread, which could be catastrophic in that area. Thank you. And is this, I don't recall seeing this funding budgeted last year. So how was it? Was it in there? And I'm just not remembering. So this is the first round of funding that we're doing? No, we've been trying to work with Fire Safe Council to get this done. And we're putting this in there because it's getting to the point where we do need to thin this out for fire safety. We will continue to work for funding opportunities for reimbursement or for them to fund the work directly. Thank you. Thank you for clarification. I appreciate it. Both of you. Madam Mayor, while the chief is up there in Carlos, we've got the Conservation Corps. Is there opportunity for any assistance from any groups such as the Conservation Corps to help with the effort? Typically, that comes through Fire Safe Council. And they are really effective at getting federal and state funding to do these types of projects. They were the group that we were able to connect with to clean out the ditch a couple years ago. They brought in a crew to do that. And so they would coordinate with their own hired contract crews as well as 3C crews and sometimes CAL FIRE crews to come in and do this work. It depends on which pot of money that they're able to get for those projects. Thank you. Thank you both. Appreciate it. Okay. Moving into deliberations. I guess I'm going to start just by I wouldn't go down and kind of do a survey of where everybody's at. But I, for simplicity's sake, would want to just start overall with Morrow Elementary and see if we have consensus on that before we move on to the other things. I'm just guessing maybe we might be in agreement on that. So are we in agreement on removing that from this year's budget? I have a yes. I have a yes. I have a yes. So that's all five of us. We'd like that removed. The Morrow Elementary purchase. Can you discuss that a little bit further? If we do end up, council votes to purchase the property later in the year, what do you envision that to be? A budget adjustment at that time or a funding mechanism? Budget adjustment at that time. And I think that, you know, to address some of the comments that, you know, about that, we've had discussion around options and opportunities for some of the revenue for that. We currently have the teen center surplused and hopefully listed, I hope, with the idea that that potential $2 million would go towards us, which would certainly change what that debt service would look like on the loan. But we haven't taken an action on that yet and we haven't discussed that that is where that money's going, you know, specifically voted and said, yes, that's going there because we don't know how much we'll get for it. The intent is that, but until we make the purchase and until we sell the teen center and what other properties, so I think we're kind of the cart ahead of the horse. We know it's coming, but we also know we have real estate that we are selling to use towards that. so I feel comfortable with that and I think that I'm hearing that consensus from council. We'll take anything related to Moore Elementary School out of the projected budget for next year and then if and when that sale goes through, we'll come back with a funding plan and an explanation at that time. That would be suitable to everybody, yes? So that includes the $5.3 million? Clarification, when you say take it out, you mean you're going to take out the capital outlay of $5.3 million or are you just going to take the $644,000 and defer it for one year? I understood the mayor to say that we're taking out the entire $5.3 million. Okay. At this point in time. Okay, that's fine. The budget is a living document so it's always going to be ebbing and flowing. Okay, so that was... I just want to... That one's there. Check that box. So I guess I will start down here on my left and see deliberations here. Council Member Edwards. Yeah, I would say thank you, Mayor. I mean, that changes a bit here as far as what we were looking at in terms of possibly reducing some of the capital improvement work that we would be doing. Is there any way that you could put that card up that had some of the suggestions? I can't remember where it was. And also, I know that we have... We've got that extra carryover, too, on the... On the... From that measure Q&E as well. So we've got, what, 4.6 or something million in total? In total. The estimated ending fund balance for Q&E for current year, 25-26, in a few weeks now, is about $2 million estimate. Okay. Are you talking the paving fund? Yeah, sorry. Oh, excuse me. What is the total fund? We're estimating about 3.5 million. Thank you. I don't... It's in here. It was on a table somewhere. Okay. Yes, it was. Let's see. Whoa. And you go the other way to the capital. Close your eyes. Yeah. I know. No, currently 3.5 million before any future money is allocated. Yeah, I think I had 3.6 in there. There it is. So just for the audience and those people at home perspective as well, you can see that carry forward of the 3.6, giving us a total budget of 26, 27, almost $5 million. So if we're removing, I guess I'm saying, if we're removing the idea of budgeting for the elementary school, then I'm not wanting to personally pursue a 20-some-odd-year safety, important public safety measure on the PD radio communications. I also am in good faith that I hope and I trust that the Chief Watkins and the City Manager and anyone else helping in that situation will be looking for grant funding to help us out there. And then there was another one. It was very helpful. Thank you. It sounded like the engineering standard drawings and specs was also something that's long overdue. It doesn't sound efficient. Listening to Mr. Stong having to explain some of those things to people, that's just inefficient. We need to update that. I know those would be my initial comments. So can we flip back to the last slide with the paving on it? I'd like to talk about the paving then and talk about a consideration of reduction of that. Yeah, I could see that. We've been very diligent about our paving and I know to walk around on some of our streets in town, you wouldn't know it because they're so bad. But we did put $4 million over the last couple years and we have another, you know, $3.6 million plus whatever that allocation is. So I would be interested in a consideration of making a reduction this year to what that allocation is if that's something we could look at. maybe cutting it in half or reducing it by $500,000 or somewhere along the line there. It's still going to give us over $4 million which is the investment we made last time. I'm looking forward to that asphalt hitting the ground as I know our residents are. So there's an opportunity for consideration there and I would ask to see what councils... Yes. I would like to recommend... I would like to recommend that we decrease it by half, $600,000. Just for consideration as you all deliberate I want to clarify that looking at that first amount $1.296214 that $296214 is expected from the RMRA funding and so we can just count that as in and just deal with the $1 million from Q&E. So the $1 million from Q&E. Perfect. Okay. So and you talked about reducing it. How much? $600,000. $600,000. So that would leave $400,000 from Q&E still going in then? Yeah. Which would give us $4.2 million and I believe we've spent $3.8 million on... Last year. Yeah. And we could in theory adjust it when... Yes. Yeah. I could live with that. Yeah. That sounds good to me. My understanding too is that we wouldn't have the ability to spend the entire $4.913 million in one fiscal year. That's my assumption too and then public works told me no we can spend it. No. But on that point prior to the paving being undertaken you'll see we have $3.6 million or so currently in fund and then whatever you add to it in the current year we would bring that back to council to discuss the actual process how much it is and the plan was to come up with say a $3 million amount and then $500,000 increments after that and 1A, 1B, 1C, 1D something like that. And that is coming to us. Yes ma'am. Yes. That's what I thought it was coming. So any action taken here tonight you will see again when we actually go through the process of paving. Again a living document. So there's a recommendation to reduce that by $600,000 which would leave $400,000 for Q&E transferring and I'm good with that council member Edwards. Yep. So you have consensus on that. What else to do? Carla? Yes. My other recommendation is to unfund the assistant city manager's position. If we want to take that back in the future we can discuss it at that point in time but I would like to save $150,000 on that particular position. On the ACM? On the assistant city manager's position. Mr. Craig you want to weigh in on that? Or not? That position has gone through up and down over the past several years. My impression coming in was certainly not to fill that position with somebody to come sit in the city manager's suite and talk about policies all day. that position as I envision it is to meet the needs of the city in certain areas. my thought was to come back with a proposal from you to talk about filling that position with a type of worker that can help out departments that they need. Perhaps Harbor Defined needs a certain expertise that an extra hand would help in planning or applying for grants. Grant management was another aspect of that. So if, again, as the mayor just mentioned, it's a living document. If you want to defund that position and I feel strongly in the future that's something that I would like, I'll simply bring it back and have further deliberation about it. Right. Yeah, I think that's what I would like to do. And just a little back side on that, City Manager Craig, is that, you know, we've had three ACM and an assistant to the city manager and none of it was very successful starting when, you know, City Manager Buckingham was here and, you know, a few different iterations as the city clerk could attest to of, you know, that. And so I think that probably once you have some time here and have an opportunity to see how best to support your needs, you can bring that back and address it and what that would look like. So I would support that as a cut. Yes? Yes? Yes? There's five. So that's a 108,000 savings from the general fund because it's split between the general fund and the economic development fund. Yes. And then on speaking of that too, I'd like to, for the offset which is $234,000, I'd like to put the sales tax at 2% instead of 1.3% and put the TOT at 2% instead of 0.2% and we'll have a balanced budget. Thank you. Thank you, Councilmember Le Fay. So just a general comment, as we approach the budget, I think our finance director has approached it extremely conservatively. So conservative in budgeting means that we underestimate income and overestimate expenses. So I think there is some room for adjustment in terms of the top line of the income side of it. I would, Director Conrad would love to see a little bit more detail with regard to the sales tax estimate as well as the disparity between the measure Q and measure E estimate and then the Bradley Burns and see why that exists because that could help us with that endeavor significantly. Well, I think that when you are doing your 10-year forecast and the general funds, you are making the assumption of 3 percent. So if you are making that assumption at 3 percent and you are making it at 1.3 in this current budget, I just cannot follow the logic myself personally. Yeah, I think it's wise to be conservative, but we don't want to be overly conservative. So I will let the discussion continue on that and then I have a couple of other ideas as well. I hear what you are saying too with that, with the TOT and the sales tax. You know, we added 15 rooms. We have another 10 rooms coming at some point in time, most likely down on Front Street, whatever that will look like. The 15 rooms we added are, you know, $300 a night up rooms, you know, higher end. We're in the third year plus, I think, of the Hampton Inn being there and, you know, being a franchise, I can't think of the word I'm looking for, you know, people seek out that when they're looking for hotels and things. And so there's the consistency there. And I, and also, uh, fuel prices are up. So sales taxes up on our gas. Um, you have Walgreens coming back in, uh, replacing Rite Aid, which, you know, I, I project those revenues will be tenfold. And those are, those are here now. I, I, you know, respect the, the comment about, um, what will or won't be here in the next 12 months or 24 months. And, you know, again, the, the projections or assumptions for the, um, outer line years, but for me, the outer line years, and we're a month away from, uh, changing guard at the wastewater treatment plant decommissioning it over the next year. And during that process, we'll be looking for revenue enhancement opportunities with some sort of partnership or business. And, and just for conversation sake, if it was another RV park, just for simplicity sake, because we haven't had those conversations, you know, there's another half a million to a million dollars a year in TOT sales tax leases and all those things. So I, I try and look at that positive side of it because those are all the outlying years too. So, so I see that the definitely support that, um, modest increase and being in business in town, I know what my costs are and what, how my sales tax has escalated to keep up with the cost of the goods and services. So, um, comments. One council member lander. Um, and I think that's the, the, the, the, the, the projection that you're talking about. I think that's really accurate. I mean, something's going to happen with that property. And, and even more elementary, when we talk about housing, um, or housing opportunities on the more elementary side or on the current city site, city property sites, those are property taxes and things too. And those are the outer line years. Those aren't going to be the here and now as we shared, but you know, if we're going to project out and, and you know, our responsibility is to address it now. And I feel that, um, that, that we are, we're being cautious and, and let us not forget our reserves. I believe Ms. Conrad said are at 44% still. So, um, thank you. All right. That's a, that's a, uh, far exceeding many other municipalities that I know that would love to have that kind of emergency reserves. So, um, I, I appreciate the diligence that the staff has done along with the council on that. So, so to recap that proposal, Councillor LaFay, um, I, I heard 2% growth estimate on sales and use tax as opposed to 1.3%. And then you. You said COC instead of 0.2%. That's great. I understand that. Uh, if, if, if, the plan is to take these recommendations, go back and rework the budget and bring them back for your further discussion in two weeks. Um, with council's permission, we'll take a look at our estimates, both from the, um, the sales tax consultants that came in as well as our estimates, bring forth a little more information about what a 1, 1% increase and a 1.5% and a 2%. That way you're a little more informed with the knowledge that we have and that we've received. Not that we're trying to sway you at all. It's certainly up to you. Just want to make sure you, um, you're not just picking a number that, that's there. So we can inform that as well. So, or, or not, we can just put those two, two percents in. Thank you. I think, um, and we, we all want to make sure we're structurally balanced. And so hopefully with those, um, cuts and reductions, uh, adjustments to, um, some of the decreases, and then the offset of, uh, a slightly higher projection. I think that the, the sales tax is modest and, you know, I'm sure that you can have some more information on what the TO look like. Again, you know, when we have new rooms that we've added, so they haven't been calculated in yet to that revenue. Comments? I have, uh, an additional item. This one unfortunately goes the other direction and will, uh, add to the challenge of balancing the budget, but I would, uh, if I get consensus from the council, I would, uh, like to direct staff, our community development director to take a look at alternative sources of funding for the, uh, housing element update, um, as opposed to using the, the in lieu fee. Uh, the fact is there's, there's no gentle way to put this. The fact of the matter is, is that the in lieu fund is there, uh, in the spirit of financing affordable housing development. Uh, and I could, I think there is an argument to be made for a portion of the housing, the expense for the housing element plan update, but I just don't feel comfortable taking essentially the entire affordable housing and lieu fund and using it for the element update. Uh, council member Echols, could you explain the housing and lieu fund really to me and how it's used and as a city, have we used it and given it? So, I mean, just for my clarification, please. With the, with the indulgence of the chair. Yeah, please. Thank you. Thank you. Um, it's a, it's a great question, council member. Uh, actually, yes, it's better to have staff. Thank you. I'll, I'll get, I'll get too excited to explain it. Thank you. Yes. Take your other hat off. Thank you. Okay. So we have two separate, two separate funds and fee types that go into potentially affordable housing. So we have our inclusionary housing in lieu fee that certain development projects trigger and have to pay an amount of like $25 per square foot on certain development projects that trigger it. That goes into one fund. And that fund is available to assist affordable housing projects. And for example, the rock, the rock view at sunset, uh, has low project that received, I don't remember the exact amount. Emily may know. Um, but that received some funds from the affordable housing in lieu fund. Um, also, uh, planning projects like the housing element update are eligible. Um, there's an eligible use for that, that fund as well. And if there are other state funds available out there, free money available out there for the city to use to update the housing element, I will find those funds, um, and not have to tap into the in lieu fund or, or the general fund. Um, I have heard, uh, that there, I wouldn't bet on this, but I have heard that the state could be making some funds available, um, for local agencies that could assist, um, with the housing element update. And again, I'm going to track that closely. And if I can access those funds, I absolutely will. Um, Marilyn, um, is this housing update mandated to be done by fiscal year next year? Or, uh, when is it due? And is this a state mandate without any funding attached to it? Just curiosity. Yes. So it is due on December 31st, 2027. Um, it is a, uh, rather long, long process. Um, that's why, why we want to get started, uh, next year on it. Um, previous housing element cycle, there was a couple rounds of state funding. It was like the leap grant and the reap grant that a lot of agencies, you know, the county and a lot of other agencies within our county use those state funds to update their housing element. This time around, that's not a guarantee, but that was what I was alluding to earlier that I have, I have heard the potential for like a reap 2.0, um, that we could possibly apply for. But I think that's still, and that's not a sure thing that we can bet on right now. Are these RHNA numbers? Is that what you're, you're. Exactly. Yeah. So the housing elements basically are our roadmap for achieving the city's RHNA allocation. Can I ask, are these like, so communities where they don't have enough water and they're not allowed, there's a, there's a moratorium. Are they exempt from even having to like they're, they get to not only have to not have to build, but they get, don't have to pay to have their housing element done? No, every city and county. No matter what, even if you can't build. That's, that's correct. Okay. Thank you. And council member Lafay to put a finer point on the in lieu fund. In many instances, market rate developers are charged the in lieu fund to help with affordable housing development. So the reason I'm bringing it up as an issue, I just, I have a challenge, uh, relying on the in lieu fund entirely to pay entirely for the element update. Thank you, Mr. And then just again, the temporary expectations, if there's other funding out there, we'll, we'll find it. But there's, there's no guarantee of that. Yeah. And that's, that's what I would look for would be, uh, when this comes back before us, if you can provide us some options or you can come back and with the request again, um, if, if you're unable to find any other options, but I would just like that to be explored. All right. Thank you. Anybody else? I just would say similarly, we could think about with the negotiations with the elementary, I mean, yeah, the elementary school, the school district. Um, and the fact that we're not, we're being asked now to pay for their school resource officer. Could that not be a negotiating, um, point in, in that process? Well, we're no longer providing the school resource officer though. That's where, uh, the chief said that that job description will be redefined where there'll be a juvenile detective and no longer on the school site. They were on the school site before. Oh, okay. I didn't, I didn't. We, we're currently discussing the process for this, sorry to interrupt, uh, with the chief about how we might utilize that position, whether they're, they're, they're, they're in the school some the time and on the streets, some other time discussion with the, uh, the school district about whether they can come up with any funds at all for that position. So that is currently in process. Like we said, uh, many times tonight, this is simply a plan. And if that plan needs adjusting, we'll come back with any changes to that. Uh, and so that, but those discussions are ongoing right now, not only with the school district, but also, uh, uh, with the chief about how we, they want best use that 18th position. So we're going to be able to do that. And so we're going to be able to do that. So we're going to be able to do that. So we're going to be able to do that. So we're going to be able to do that. And we're going to be able to do that. And we're going to be able to do that. And we're going to be able to do that. And we're going to be able to do that. And we're going to be able to do that. And we're going to be able to do that. And we're going to be able to do that. And we're going to be able to do that. And we're going to be able to do that. And we're going to be able to do that. And we're going to be able to do that. And we're going to be able to do that. And we're going to be able to do that. And we're going to be able to do that. And we're going to be able to do that. And we're going to be able to do that. And we're going to be able to do that. And we're going to be able to do that. And we're going to be able to do that. And we're going to be able to do that. And we're going to be able to do that. And we're going to be able to do that. If there are options. If there are options. It is mandated. And I know that SLOCOG they're working on actually going to file because of the RENA numbers. And so there's going to be, I think, a lot of legal action going on. But in the meantime, we still have to do the housing element. Ms. Conrad, thank you so much. Thank you to your team. Thank you to the executive team for all the work. A few weeks from now, we'll hopefully be able to move this forward. And I really appreciate everyone's time. I know we all do. I want to move into the next time. Or take a short break. Can I add one more thing? Is there a chance that, I know that they, because of certain situations, CFAC wasn't able to review Q&E. And is there a way within that two weeks that that could potentially happen? The staff has met with both the chair, the chair of that committee about the budget, obviously, beforehand. We presented the Q&E budget to the CFAC. I want to clear up the fact that the meeting didn't happen this month. It's a five-member committee. The chair was out of town. One of the members informed us when he was put on the board in January. He was unable to make this meeting. And then we had the unfortunate passing of Gene Johnson. So there were three members were not around. And so we could not meet because there was no quorum. There were only two members present that could attend that meeting. And so talked about that quite frequently with the chair and how we wanted to go about doing that. And the fact was that they were just out of town and not available. So that was nothing on staff's part. It was just a function of three of the members not being available. And so we can certainly invite them to come back at the next meeting if you want CFAC to weigh in on anything. The chair, I believe, is still out. I don't recall exactly when he's returning, but we're open to anything that you want us to do. Perhaps you could send Mr. Peck an email upon his return. They have presented their recommendations before at the council meeting. And I know because of him being out of the area, he wasn't available to do that. So perhaps that he can come in at the June 9th meeting when we adopt the budget and present. Thank you. Certainly. Five-minute break? Yep. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. haven't we been here long enough? I forgot a napkin. Thank you everyone. We're on our last item this evening before we get to our witching hour which is coming up. Discussion on resources for economic development related efforts. Mr. Craig. Thank you, Council, Mayor. I was going to say don't worry about it. It's going to be funded by the assistant to the city manager position. Just kidding. The history of this item most recently was back in November under interim city manager Luecker. A discussion was had about the assistant city manager position and have that position focused primarily on economic development. At that council meeting the council had a discussion and decided let's wait on economic development in that position until the new manager is here. And so the new manager is now here. And so before bringing back economic development solutions to you for consideration whatever that may look like. I just wanted to pose the question to you all about what your understanding and definition of economic development is. And so if council can have a general discussion on that I think that would help me better inform a solution whether that be asking the Chamber of Commerce to take on some efforts in that regard, talking about an economic development council made up of community members, looking at staff to add on some positions in that. And so that's why I wanted to bring this item on, not for any decision tonight but just more of a discussion in informing myself and the staff how we can look to the solution to the problem that you are going to now talk about. Thank you, Mr. Craig. Questions? To my right. Questions to my left. Okay. Public comment is opened on this item. I'll just repeat what I put in my email that I don't believe economic development is part of a full-service city item. It's not their job. It's your job is streets. It's trees. It's sewer. It's because we have chosen to do sewer and water in this particular town. It's police and fire. That's a full-service city. And economic development does belong in the Chamber of Commerce. It does belong with Visit Morro Bay. You've got that great person that just left and whose position has been refilled. And that's where you need to focus. And they're getting their TOT money. And so why isn't it their job to do economic development along with the Chamber? Thank you. Anyone else for public comment on this item? Hi, Susan Stewart. I actually wasn't going to get up and say anything. But I feel like our last number of hours was about what the city needs to focus on, which is saving some money, but it's also generating revenue. So I don't see -- I think all the services that the city provides are part of economic development. It's part of creating the environment, the atmosphere, the community that supports and encourages businesses. And I think we have a very small chamber. And it has no -- it has a part-time CEO now. And very little in the way of support staff. So I don't think looking to them to create the climate of the kind of vibrancy and encouragement that is needed to get businesses to come in and invest in the community. And that's not going to happen through that chamber without some help. And maybe down the road in some years with some growth it will. But I think all of those services have to be paid for by something. And they are paid for by sales tax, by property tax, by people's investment in our community. And people will invest in the community if they feel that the city is a nurturing place to be. So that -- you know, there's lots of business retention and expansion and all those buzzwords that Cindy and I have heard for years as we've -- explored these things. But I think the bottom line is the city needs more revenue if it's going to be successful. And economic development is part of the responsibility of the city to help create that revenue. So -- Anyone else for public comment on this item? 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Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? Ray, are there any raised hands in the queue? 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Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. This next Friday, Thank you. Thank you. We have a large, They're a very, you know, And then, you know, normal barbecue, you know, I believe that's it, you know, I know I had mentioned it to you before that we had kind of thrown the idea out. Both Dean and I are definitely on board. We have agreed to do a quarterly recreation guide. It will come out four times in the year. We haven't decided dates yet. That's something that between Dean and then our group, we'll have to make a schedule when it's appropriate for registration openings, activities, our larger events. So we are in that process now. When we talked about price, it's going to cost somewhere between $10,000 and $11,000 for the whole entire year. So that's for the four quarterly guides that we'll put out. It'll look really neat. It's the middle page of the newspaper. So it'll have the insert and it'll be a four-page guide. It will come out. They'll also be printing 100 extra. And Dean actually and his team will go and distribute those at other places. And then what's nice about it is you'll be able to pull the guide right out. I actually have an example if you guys would like to see. It's kind of neat. This was for the bird festival. That is. And so then you'll just be able to take it out. And then you can keep it forever until the next one comes up. Okay. That's my update. May I ask you a question about that in relationship to all the great summer activities and sports that you've talked about? Will there be one coming out before this summer? Then if not, then the flyers that you have shown us will be , I'm sure, on the city website. Where else will they be? We do put a monthly newsletter out in Estero Bay News already with all of our events that are going on. So they'll be in the newspaper, but they'll be as part of the regular newspaper? Yes. Yeah, you'll find it in the Estero Bay News. Okay. Yeah. Okay. This month it is just our flyer for 4th of July. Okay. So. And these flyer, program flyers are also available at the community center and the lobby? Mm-hmm. So if we wanted to take a few and put them in stores around town that hasn't been done yet, we could do that? Sure. We could pick some up from the lobby and library, blah, blah. Mm-hmm. Okay. Yeah. Great. Thank you. I'm so looking forward to the insert. Anybody else have comments or questions about the announcements and presentations? I had a question about 4th at Tidelands. Do we know anything about parking yet, if that's going to be changed or affected? Mainly the boat launch parking lot? Yeah. The boat launch ramp will be affected as it is every year. We will have our police volunteers monitoring and pat rolling the street. And it's going to be a closed street, allowing only those who are liveaboards or those who are launching a boat or those that require ADA parking will be allowed through. Okay. So the rest of that parking lot will not be available. So yeah, we won't have to worry about people being confused about paid parking that week? No. Okay. A follow-up question then. Will the vendors, the food trucks, be in that parking lot or somewhere else? The vendors will be on the park. What about the truck vendors? Are you saying they'll be maybe along the road? Yes. They'll be parked along the road. That whole road will be closed. Okay. We will not be able to enter in that road. Okay. Thank you. It'll all be foot traffic. Okay. From what point down? From the stairs down? From the start of the park, we'll go ahead and reduce that down to a one-lane road, which will be monitored by the volunteers. We might have, Friday night we'll have a food truck parked along that road there, but there's also going to be a pedestrian path there. And then Friday night also, the first parking lot on the west side of Tylan's Park will be closed for the drone show . So that whole parking lot needs to be secured for the safety of the drones and the people below it. So if people want to come down and watch, they either need to come down the stairs and park up above? Correct. Or further up the Embarcadero and walk down? Correct. Got it. Or you'll be able to view that in most areas of town. Because it's going to be that high. It's going to be 400 feet up in the air. Mm-hmm. Okay. Great. And thank you. That's what we had for announcements and presentations. Great. Thank you. That moves us on to Commissioner Liaison Reports. Okay. Commissioner Costanzo. Anything from the previous regular meeting of the WOMPAC? And I can report on last Monday nights if you want. So the last meeting that was in May we talked about the upcoming workshop that was presented on the 18th. I hear it was well attended. So they'll compile all that information taken from that meeting and they'll present it at our next meeting, which is June 4th. And so we'll see the results of that. Okay. And your regular meetings are at 3 o'clock? Our regular meetings are at 3 o'clock. You know, you need to go to the website. Don't take your word for it or anybody else. We've got a great website that the WOMPAC, or I should say they have all the information on there. I mean, so you can see all the past meetings and everything . So it's all well documented. I recommend you go there. But if you want to attend, you would show up June 4th, Thursday at 3 o'clock in this room. Very good. Okay. Just checking. And then with regard to the workshop itself that was on Monday night, they basically broke up into groups and had people. I'm sorry, I didn't bring a brochure with me. It's kind of like a six-page brochure. Where they had the attendees talk in circles of anywhere from three to eight people. And vote on which kinds of options for the different four sections or five sections of the Embarcadero. And those items will be posted on the website that Commissioner Costanzo mentioned. And again, will be reviewed on June 4th as well. What else? What else? Commissioner? Commissioner? That was it. Mm-hmm. It's very focused. And that packet is actually posted already. I viewed it today. Okay. So everyone should check it out. Thank you. Report on the seniors? Well, thank you. The seniors are still just interested in getting eight more pickleball courts over Del Mar. So they're working on that. I think they're going to talk to the city council, see if they can move that forward. And of course, you can go to their website and you see all the things they're doing. If you go between the seniors' website, Morro Bay Recre ation Services website in the city, you'll find that there's something happening all the time in Morro Bay, especially since summer's coming up. But really, that's all they had for me was they're still interested in more pickleball courts. Thank you. Thank you. It's now time for public comment. If anyone in the audience would like to comment on something that's been said or will be said or not said. Just got listeners tonight. Okay. Thank you, audience. Closed public comment. Now we're going to move to our consent agenda. Oh, thank you. Is there anyone online that would like to make public comment? There are no raised hands in the queue. Thank you so much. Thank you so much. Thank you so much. Okay. Consent agenda is approval of the last minutes. If anybody has a comment to change or if they want to approve that. All motion to approve. Okay. I'll second that motion. Okay. All in favor say aye. Aye. Aye. Thank you. That passed. We're now ready for our status report. Or have we done that? That is part of the consent agenda. And it should have been reviewed. And we just go ahead and move forward with the receiving file. Okay. That item. I make a motion we receive and file. Status report. All second. All in favor say aye. Aye. Aye. Aye. Thank you. Next we have our recreational services division participation reports. And may I say based on the graphs, every one of those red lines was above the blue line from the previous last year. So not only are things progressing, but you have more attendance in almost every category. That was just wonderful to see. Thank you. Yeah. Does anyone want to go through those? Or do you want us just to approve them? Okay. Then I would make one more comment. Kids club in particular. Now I don't know if that's because of the TK program. But that was like elevated. It wasn't just a little bit above. Do you have a justification for that? I do. I think that it's because of the partnership with the San Luis Coastal School District. Not only the TK and the kindergarten, but just the fact that they financially support so many of our families. I want to say it's about 95% of our families are supported 100% by the district. Wow. And then I would assume that also means you've increased your employment. We have. So how does that look? Is it doubled or just a little bit more? I believe we have added more hours to these people. So that is, you know, a lot of them have meet their max of about 25 hours a week. Okay. And I would say we probably have added on four more employees. Of course. Yeah. And then with the addition, we have a full-time youth services specialist. So that is really helpful because she does have to work her 40 hours. And the majority of those hours are in the classroom. Okay. So we're also increasing employment for the city. Yeah, we are. Besides offering lovely services. Yeah. Okay. And introducing them to our programs. You know, that is our main group. It's the kids who do our sports, the kids who go to our family dances and participate in our summer camps. So I know for families when they're not spending on childcare during the school year, they have hopefully some money saved to be able to do all of these other things. And we're hiring high school students? We do. We have high school students and college students. Good. Because I see that entry-level jobs like this are few and far between nowadays. Yeah. And it's good that they have something good to do. Yeah, I agree. And it's nice to see a majority of them are children who are now high school students who attended our programs. Yeah. And, you know, whether they are referees or played one of our sports or attended kids' club, they just want to come back and give back. So, yeah. That's great. Excellent. Thank you. Thank you. Any other comments? Okay. Then we will receive and file this. We don't really need to vote on it. So, thank you. We're ready for our business items. Excused absence. Thank you, Madam Chair. This was a request from Commissioner Fazio. I neglected to... First of all, I had a typo in the staff report and neglected to put down the correct May 21st, 2026 meeting, which was in the paragraph directly above conclusion. So, for the record on that one. And then we did not attach Ms. Fazio's email she sent to me requesting the excuse and it was basically that she will be out of town this week and she was not able to attend. Okay. So, we have this in front of you to approve her excused absence. Okay. I move we approve that. All second. Okay. All in favor, aye. Aye. Passes. And then update on our parks, three parks. Thank you very much. You will see a staff report in front of you with just a couple of blurbs on park projects that are taking place now . One that I wasn't aware of was the Bayshore Bluffs. There was a construction completed of a new drain inlet off of Bayshore Drive. And apparently that's been some water flowing and eroding the bluff underneath the stairway there. So, there was some repair work done to that. And then with this drain inlet, it should help with the problem there. So, that is one park project. The other, the Lila Kaiser Playground Replacement Project is, and this is to speak to your questions, Madam Chair. The Lila Kaiser Playground Replacement Project, which we discussed last year, is still on the books. Due to staff shortages, they had to put that on hold. And then due to the acceleration of the Coleman Park Project, those two items combined put that project on hold. So, it's still on their project list. It's still funded. And that's what I have with regard to Lila Kaiser Play ground. And then regarding Coleman, I understand that the restroom was put in place, I think, earlier this week or last week. One of the two I've been out. And then it's supposed to finish up tomorrow morning. They're going to open up the park. At this time, there is no power to the park. PG&E needs to connect the power back up. And when that happens, there'll be a ribbon-cutting grand opening for the park. And that's, they don't have a timeline on that one. And then on the, just off of my staff report, I did want to speak to Skate Park. We had questions about Skate Park. I've heard nothing back from Public Works with regards to Skate Park. I'm sorry. And that wraps up the update to park projects, unless you have questions. Thank you for asking about the Skate Park. I think Commissioner Sedaris has something. I do have a question. You know, the red house over by the Bluffs was sold. And I think there's always been some debate about the property line or something. Is that going to affect the park? Have you heard anything? Or we just got to wait and find out? Yeah, I've heard people talking about it. But I'm not, I didn't look at the property line, the parcel maps, anything like that. So I don't know specifically on that. Okay. And I'm not sure how much of space they're talking about encroaching into the park. Okay. Yeah. I'm just afraid they might try to block the walkway or something. But I'm sure the city is on that since it is an issue. Okay. Thank you. For clarification for me, are you talking about the red house that sits behind the fence on the Embarcadero? Down by Tidlands? Up on the hill. The one that just sold up on the bluff? Yeah. And that's against the Bluff Park? Yeah. It's by the Bluff Park. Okay. But I think for years there's been some debate exactly where the property line was from some 1800s grant or something. Because the street used to go down there. Right. The street used to go down there and then it ended. But I just hope they don't encroach on the park or the access to it. It appears that maybe our city council member has some information on that. Is that true? I would open the discussion up for you. City Councilman. Yes. The house was sold 485 Moro. That was the red house over there in Moro next to Franklin Riley Park. There is some discussion and some confusion over where that property line is. The owner of the property, 485, is trying to state that he owns the property including some in Franklin Riley Park. He's put stakes up there and he's put a no trespassing sign and he's intending to put a fence up. Now, I have talked to Erlen, our planning commissioner, and he has assured me they are on it. This is an illegal battle now. He is apparently a very aggressive developer. But we're all aware of it at the city level and hopefully it can be resolved. That is a paper street from South Street. If you look at the old maps, there is access going down to the Embarcadero. So, hopefully, our in-house lawyer, Brian, is aware of this too. And this will get resolved. But you never know. So, thank you. Thank you for the information. Has anyone from the city just gone down there and said hello to the fella? Well, I can't answer for that. Okay. It's a very aggressive developer. So, you know, he thinks he knows everything. So, do you think he's planning to knock that house down and build something there? Well, there's, you know, again, I don't know what the plans are. I mean, I've been in the house. And so, I'm not going to tell you here what can be done or what can't be done or what his plans are. All I know is that he's trying to encroach, I feel, on city -owned property. Okay. Okay. Thank you for the update. Thank you for the question. Makes it known in the community. Any other comments about any of the parks? I want to, well, I'll do it, I guess, under future agenda items. So, Mr. Carmichael, could we ask that when a date has sent for the ribbon cutting that you would notify the commission ers? Yes, I'd be happy to do that. For Coleman. For Coleman. Yeah. And also, should we ask about when we're going to get the, Lila Kaiser playground equipment? Well, he just said that they are not giving us a date because they put their emphasis on Coleman. Okay. And then I think maybe he will. Well. Okay. Yeah. But I think we won't let up on our concern because of the poor status of the equipment that that needs to be a priority. It's a health and safety issue. Plus, it's a very highly traffic park. So, yeah. But I will say, I did go by City Park today and they got ready for it. The parking looks beautiful. The staff, the maintenance people are doing a great job. They really are. So, thank them. Thank you. And maybe we need to say about City Park that the children 's equipment has been taken out. Yeah. I just heard about that today. I forgot to mention that, too. So, I was unaware it was coming out. And that's what I understand now. Yeah. It's out. And the bathrooms are locked due to problems. Locked during the day? Yes. Oh, that's not good. Well. Well. Because that park is in a particular place where. Well, I understand. You know, we want to. You know, kids can't. It's tough for the kids to play there. That's why they took the equipment out. Besides being unsafe. Yeah, the equipment was. Unsafe. Again, another health and safety issue was old. All right. They're doing what they can do on that. All right. I appreciate it. Okay. Talk. Well, I'm going to bring that back as a future agenda item. And so, we'll talk about. Well, I don't know that we'll talk about it. But. Public Works, actually. Well, Public Works at their meeting last night. Asked for a joint meeting with the Recreation and Parks Commission. To talk about City Park. And what to do there next. In light of the play area. And anything else that we would see as development along there. So, I'm going to ask that. Let that be agendized when we get to the end of our meeting . And maybe you would agree to a joint meeting with the PWeb. Okay. Great. Thanks. And where does that leave us? So, that's the update on our Parks projects. And we are receiving and going to file that. Next, we have our program evaluations. And thank you very much again. We will go ahead and let Angelica Jepsen take it away from here with the number one item. The March 2026 holiday hangout. Okay. Okay. Okay. We, oops. Let me find my report. Sorry. Okay. We held our holiday hangouts brick camp over the spring break of 2026. That was the week of March 23rd to March 27th. We held it at Delmar Park, or Delmar Elementary. There were 37 campers a day. And the, all the activities were based around bricks, Legos . We also went swimming at the aquatic, Morabay Aquatic Center, and also enjoyed a space exploration at Delmar Park. We, let's see. Revenue, we brought in about $6,500. We, expenses, always major, majorly staffing. And then we had a little snack expense as well. We came out at 115% recovery, cost recovery, which was good . And we'll continue to offer these at all of these San Luis Coastal breaks. So this one will be spring break. We also offer one during winter break. Excellent. Does that move us on to aquatics? Unless you had questions about the holiday hangout. This program, along with all the others, we're at 70% or above recovery. You guys are doing great with the recovery as well as attendance. Thank you. So progress this year. Yes. I think the attendance speaks for itself. It's so well attended because it's a good program. And people in this community like it. So thank you. Aquatics then. With that, let's move on. Ken, Zink is going to take the rest of these. These are the rest of yours. Right, Ken? Thank you. Don't mind me. I'm going to mumble along tonight. Thank you very much, Ken. Thank you. Okay. Yeah. So we'll start off with the aquatics for August through December of 25. So kind of wrapped up the year. I would say this was regular programming for us. We have, during our non-summer aquatics hours, we have, you know, typical lap swim, aqua aerobics, master swim in the morning. And if you guys haven't been to the pool, it's an oasis out there. Great place to do some lap swimming. The staff is wonderful. I can say that my child just started swim lessons there. And he's absolutely loving it. They do a great job. I would say we're still waiting on the final bill from the San Luis Coastal Unified School District at the time of this report. So the cost recovery may have come in a little bit higher than, you know, what it would be at the end when we figure out how much the cost from San Luis Coastal will be. But I think we did good on revenue and staffing. Happy to answer any questions the commission may have about the aquatics in that cycle. I think we're good. Great. We'll move on to basketball from this last season. I was really pleased with the growth of our league, especially at the younger age groups. I think when I started, we didn't have first grade. And we had co-ed for second and third. I don't know if you guys recall that. But now we're doing first and second for girls, first and second for boys. So the first and second grade girls division has completely taken off. And we filled out, I think we had five teams this year where we were struggling to get a full four teams in the first couple of years that we started it. So that felt like a win for us. We also had pretty much growth across the board. We have Cambria in our league, too. So we extend the opportunity for Cambria Youth Athletic Association to join in. And we have games at Baywood, Los Osos Middle School, Del Mar. And this year we added an extra special championship weekend tournament and championship game at the high school . So we basically threw an event-style championship day at Mo orabay High School on the last Sunday of the season where the teams that had played in the end-of-season tournament and kept winning their games got to play in front of a big audience and get their names announced in front of the crowd. Yeah, so it felt like it was a great year of basketball. The St. Louis Coastal Bill was a little bit more than it had been in previous years. We had some hefty kind of custodial coverage charges. So that was a little bit more challenging on the cost recovery side of things. I would also say, like, through my own admission, we probably, you know, we have sports officials and then we have coordinators for our sports programs. We probably relied a little bit too heavily on the coordinator side of things. Whereas, you know, that can help bring an element of control to the program. I don't know how many times you guys have been around youth sports and basketball games, but tempers can flare when it's inside and, you know, the games are getting close and, you know, the players are starting to get more competitive. Parents? Yeah, yeah. So, you know, although, you know, that was our attempt at, you know, establishing more control, I think we can probably take a look at what's going to be most effective moving into the next season with the coordinator coverage. So that was basketball for us. Yeah, overall, great season. Happy to answer any questions the commission may have. That's great. Thank you. All right. Then we had one of our near and dear to our hearts favorite program for the rec team here, their kickball program from spring. You know, we played games, you know, February through April . Although I will say this was the, yeah, this was the first time our rec team did not compete in the kickball league. So it was a new four teams that we had. It's turned into its own little fun culture out there. They have an end of the season potluck that they all contribute a lot of good food in for the end of the season tournament. It's just really a social, fun program. People take it just seriously enough. Sometimes they'll give the officials a little bit of a hassle. But for the most part, it's all fun and games out there. We have some teams that dress up in different themes each night. So just a fun atmosphere and truly a recreational sport. And yeah, we're within our bounds for the cost recovery. We have a scorekeeper and official out there every night. And then, yeah, four teams playing in the league. Happy to answer any questions the commission may have. We're all good. Thumbs up. And lastly, our co-ed softball program. Pretty straightforward here. Typical for our co-ed softball season. I think we had five teams in this season. We're hovering, you know, four to five teams for each of our seasons here. So we were at five for this season, which meant that teams got to buy, which can be a challenge because that means that you have to miss a few weeks. And it's hard to reflect that in the registration fee at the time for the missed games because you don't know how many teams are going to fully sign up. So I think that probably showed in our cost recovery and, you know, made it a higher percentage of cost recovery. But yeah, people enjoy our softball league. For the teams that do, they like to come back and play with us. And happy to answer any questions the commission may have about the program. Thank you. Thank you. Oh. The Monsters. Oh, Monster. Yeah, this one's definitely one of my favorites, as you can see just by the crowd. And that doesn't show, this picture doesn't show all of the fans that came out from our local community just to watch the skateboarders. So essentially when Monster was started, I think Monster was started back, I think it's been 23 years ago. And the city of Morro Bay was a participant in the first Monster Skate contest series that was ever, you know, when it founded. And so when we lost our park, there was a unique opportunity because the county decided that they would only want to administer one contest out of their two skate parks. So they have a county skate park in Los Osos and a county skate park in Napomo as well. And so as I was talking to the committee members, it didn't , you know, I wanted to find some way for us to stay involved and support the skateboarding community. So because we serve so many of the population of, you know, the Los Osos area, it's our population we serve for our youth sports programs. Our idea was to have the Morro Bay Recreation Services be the host for the Los Osos skate park contest. So yeah, we went out there and we had 22 skateboarders. You know, it's a great contest. If you guys have never been out to Monster, it's very unique. It's not like any other youth sports event. You know, everybody like truly cheers each other on. And it's a bunch of individuals that band together to form a community. So yeah, it's great to be part of Monster. Happy to answer any questions the commission may have about the Monster Skate Contest. Just glad it's happening. Is there a class for old guys? You know what? We actually, they did have a mom and dad jam age group and the prizes for that were an ibuprofen packet. And a knee brace. And an ice pack. Yeah. Yeah. All right. I'm not joking. They actually did that. It was starting this year. It was pretty fun. Yeah. You got to be inclusive here. Thank you. Thank you. Thank you. I think that wraps it up for. That's all we have for our program evaluations. We appreciate that. So keep those people active and healthy. That brings us to our last agenda item, which is future agenda items. For other, I would ask that the commission would be willing to support a meeting with the P-Web to talk about City Park. Yeah. Yeah. Are we allowed to meet as a commission with them? Sure. Okay. I'm all for it. Let's do it. Okay. Do I have consensus down here as well? Yeah. Okay. Great. Then we would ask Mr. Carmichael that if you would, I don't know if it's Ms. Hanson now who's in charge of the P-Web. If you would ask her for, we would be glad to meet the next P-Web meeting in June. If that's, yes. And the purpose of the meeting is to discuss the City Park only? And just a second. Yes. My thing would be to discuss City Park in terms of what we 're going to do with the kids' play area. And if we're going to go beyond that and just look at the whole outlay of the park, I think we can go beyond just that. Council Member Le Fay, did you want to offer a comment? It's been directed upon myself to direct you folks to take a look at holistically the whole park. Right now we have a serious, serious issue with the rest rooms. There has been some talk of taking them down. I really kind of disagree with that. That's my own personal opinion. So we need some input from you folks and the public. What do we really want to see at City Park, which is the entrance to our city? And there's been talk, skateboard park there. I'm not, you know, again, there's so many different ideas. We need your expertise and P-Web's help into shaping that because, you know, we want to do it sooner than later too. So that's really what the intent is. We need some public input and you folks are our ears and eyes so that we can make some decisions on what directions to go. Myself, personally, I'm going to be working with the chief of police to really kind of get an idea of really what happened to those restrooms and why. I mean, I know and I think everyone does know, but, you know, how can we ever prevent it? Because I hate to just take them away. That would be a shame. Were they heavily vandalized? I didn't hear. More than heavily vandalized and to the extent that they're probably unfixable. So I won't really go into that right now, but that's the reality of the situation. So, and it's unsatisfactory. So we need some help and so hopefully we can resolve this issue. Yeah, perhaps we need to have some cameras at all the parks to make sure that for vandalism. And that's, I think, one idea too. We can't have cameras, of course, inside. No, no. But to make sure people aren't spray painting them and all that kind of nonsense. Okay. Okay. Yeah. Okay. Thank you. Thank you. So my desire would be that we meet in June with P-Web at their regular meeting, which is the third Wednesday of the month at 530. Are you all available that Mr. Carmichael could pass that on? I do not know the date. Is that the 17th we're looking at? Is that the third Thursday? I believe so. Wednesday. Third Wednesday. Thank you. Third Wednesday? Third Wednesday. That should be the 17th. Okay. Yes, the 17th. Okay. Yeah. I'm available. Okay. You're available? I'm not for sure yet. Okay. Okay. Check it out. If I'll try to make it. Okay. It should be. Okay. Okay. And we'll check with Commissioner Fazio when she's back. And I'm not available, but that doesn't mean that you can't carry on without me. Okay. Well, then I think that our second choice would be. And I don't think they meet in July, actually. No. No. No. So I think maybe we need to push for June because it is City Park. It's sooner than later is our goal. Okay. So we'll miss maybe two of you, maybe one of you. Okay. Okay. Are there other future agenda items? This isn't an agenda item, but maybe I would press Mr. Le Fay to bring to council that at our last meeting, we did talk about sending you a letter as to prioritizing the play equipment at Kaiser because of its heavy use in the summer. So maybe you could somehow press for upping that on the agenda for public works. Okay. Okay. I think that's it. I think we're adjourned. Thank you all very much. Thank you. Thank you. Anything for me? Well, if you want to get involved in that, I will probably it's going to be and I can. Aren't you? Thank you. Thank you.

Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. We got a screen. All right, well, good evening, everyone, to the regular meeting of our Public Works Advisory Board meeting. It's May 20th, 5.30 p.m. And as vice chair, I'm sitting in for the chairman, Robert Nava, tonight. And if I can ask Jeannine to take a roll call for us, please. Board Member Dahlgren? Here. Board Member Godet-Cross? Here. Board Member Hill? Here. Vice Chair Donnelly? Here. Chair Nava? If there is a quorum, present 4-1. Okay, thank you. So with that, I'd like to, if you could follow me in the P ledge of Allegiance. I pledge allegiance to the flag of the United States of America and to the Republic for which it stands for a nation of liberty and liberty. Not too fast, huh? So with that, do any of the board members have any announcements to make? Just a quick one. Okay. It may not be public works related, but I had attended the firehouse open house on Saturday. There was representatives from the ham radio emergency response, the friends of Morrill Bay Fire Department, the CERP people. Also, Carlos and his team members were there showing off some of their new equipment. And they had a lot of things for the kids to do, and it was a pretty nice time. Great. Thank you. I'd like to report that I went to the Waterfront Master Plan Workshop the other night, and it wasn't as well attended as the first one. They had some beautiful brochures that who knows how much they cost, but some of my, if I were to critique it, I wonder, well, first of all, we couldn't hear very well. That was a little frustrating. I also wonder what information they're learning from this and if they're going to share it and how they're going to share. Because I'd like to, I'd like to learn. I mean, they, they want to hear from the community and I'd, I'd love to get feedback from what they're hearing and what they're going to do with that information. And I also went by the, um, creek bed that was recently repaired and, um, looks lovely. And I'm, I just have a couple of questions. How long are, is it projected to last? Um, what about the cost associated with the, um, repair? You know, if we're going to get some information about that and that's, that's about it. So, Nate, do we happen to have any idea how much that creek restoration cost us? It's been a while, uh, Nate Stong, city engineer. It's been a while since I looked at that information, but the, um, the elements that were involved was a construction contract of approximately $330,000 to Dave Cry and, um, $125,000 for, uh, the permitting, the environmental, the design and the five- year monitoring, um, with, uh, with Kevin Merck. Um, we had earth systems do the geotechnical, uh, analysis and size the, uh, rock slope protection and with the basis of design for, for Cry to work from. And they performed, uh, uh, let's see, it was about $30,000 for, for them. So, all told, I think it was about $700,000. If you, if you add up all the archaeological monitoring, we had to have that. We had environmental monitoring. We had geotech observation, testing, um, and... So, it came in under budget. It did come in under budget. Yeah, the estimate for... Almost $900,000 was allocated. Right. The estimate for construction was $500,000, so that was significantly lower than our estimate. Okay. All right. Thank you. So, this next item has to do with, uh, an update on the, uh , Waterfront Master Plan Advisory Committee, which I'm a member. And like Betsy was reporting, there was a workshop on Monday that we had. It was the third workshop we've had. But we meet the first Thursday of every month, and we've been meeting since June of last year. We have a real good group of people. There's eight of us. There's, uh, James Costanzo from the Rex and Park Commission. Myself. Um, there's, uh, Andrea Luker from the Harbor Advisory Board who took the place of, uh, Jean Dowdy, who didn't get reappointed. Um, Mark, uh, Tognazini, who represents the commercial fishermen. Um, Steve Peck, who's the chairman. He's with the, uh, Citizens Finance Advisory Committee. And then we have, um, uh, Charisse Hanson, who represents the, the leaseholders down on the Embarcadero. Um, we have, uh, Carolyn, uh, Garrity, who represents the National Estuary Program. And, uh, Mary Wyskowski from the Planning Commission. Um, we, uh, are going to have several more meetings remaining and conclude in November. The next meeting will be June 4th. And then what it is, is to receive and re- file report on the workshop we just had. So that would answer your question. Um, there will be no meeting in June, in July. But then there's August and September, as they're going to review these draft alternatives. And I, I guess, you know, they're throwing things out there to see what people would like. Unfortunately, they didn't really ask what we wanted. So it's kind of nebulous in a way. Um, on October 1st, which I think is very important, is when they talk about the design guidelines for the, uh, waterfront. And I think that's important. And it's only on one meeting, but it seems like it's going to say a lot about what, what we see down there. And then on November 5th will be the last, our last meeting for the one pack. And then there'll be one more workshop in November. And then they'll have a, uh, public hearings. It'll go to the city council. And then eventually it'll go to the California coastal commission. So, um, I don't know if anybody can make it down here on the first Thursday. It's at three o'clock in the afternoon, just before the higher advisory board. But that's when we meet. So, uh, that's my update for that. And the next item is the, uh, director announcements. So if, uh, oh, uh, I guess I should just congratulate Dam aris for her promotion to interim public works director. So if you have an update for us, thank you. We do. Um, I will actually let Nate Stong city engineer give an update on Coleman park. Okay. So as many of you have seen out at the, at the Harbor, uh, Coleman park is, uh, nearing completion. And it will actually be open to the public, uh, this Friday . So two days, the fence will be removed. The pre-manufactured, uh, restroom building was installed with a large crane last Thursday. And after it was set in place, the, uh, the plumbing and electrical hookups were made. Um, so the, the reason that the building will not receive, uh, electrical hookup, uh, it's undetermined because PG&E's process unfortunately requires a, uh, inspection, uh, a successful inspection of the panel and the conduit prior to them scheduling, even scheduling the, um, energization of the, of the building. So that's happening tomorrow, the, uh, PG&E inspection. And then after that, we'll know when they schedule, uh, the , the hookup. So in the meantime, the park is open. The playground is, uh, it's pretty exciting. A new swing set, a new slide and, uh, the picnic tables. There's a kayak wash station, a drinking fountain, bike racks, um, and some seat walls, some cobblestone seat walls around for, uh, for parents to sit on while their kids are playing and enjoy the harbor. Um, if there, I don't know if there's any questions on, on the status of that or or the project itself, but happy to do that. But when will the fence be removed? Friday morning. On, when? This Friday morning. This Friday, there will be completely finished and open and ready for the public. Great. Thank you so much. Not completely. The restroom will be locked. Oh. Until we have power. Okay. Gotcha. Unfortunately. So when is the PG&E tie-in plan that once they go through the inspection process? They don't schedule the tie-in until they have a complete inspection. And that process, we've tried back channels and asking for favors, um, but their process is, is their process. They, they won't schedule the work until, um, the final inspection has occurred. So we won't know until tomorrow. We'll pass the inspection first and then we can schedule the energizing. I fully understand. I've worked with them before in the past for projects. I just want to comment that I went by a couple of days ago on my bike and it really looks nice. It is. You have to hand it to the designer, RRM, um, the, the color selection, you know, they really pop, um, the blues and the greens and, and, and yeah, it's a nice aesthetic and it looks like it'll be a fun place for people. With that, um, it's time for a public comment. So for anybody in the public that wishes to speak on items that are not on the agenda tonight, or if you can't stay for an item, you can speak now. Michelle Lester Cattery, Morro Bay. Um, it's awesome news about Coleman being finished. That's great. Uh, it'll be nice when there's electricity. Um, the question, uh, a couple of questions. Will there be a ceremony, like a, any kind of opening for the community to come and, you know, break the bottle of champagne on it and hurrah? And second, is the park or the area going to be dedicated to, um, any community entity? You know, sometimes there's a plaque commemorative is, I don't know if that was something that was ever considered. Uh, you know, so many give to our community. I didn't, I didn't know if there was going to dedicate, dedicated ceremony of some sorts. Anyway, thank you. Are there any other members that will speak? Bill? Uh, Chairman and members, uh, my name is Bill LaFay and I'm representing the Friends of the Morro Bay Harbor Department tonight. I want to announce that we're holding our, probably 10th annual Marine Swap Meet on June 27th of 2026 in the Triangle Lot next to the Maritime Museum. Uh, go online to the friends of the morrobayharvardep artment.org and I hope to, um, register if you're a vendor. It's only $ 40. If you have any nautical equipment, boating, kayaks, anything to do with the Marine. And the mission is free. So I hope to see everyone, um, out there. Thank you. Thanks, Bill. Are there any other members of the public, which to speak? Ray, do we have anybody that wants to, uh, call in for a comment? There are no raised hands in the queue. All right. Thanks, Ray. Um, just to follow up on some of the questions that were asked, will there be some sort of ribbon cutting ceremony down there? Yeah, sorry. I should have mentioned that. And that is waiting for the bathroom to be open. So we're waiting on electricity. So as soon as we have that scheduled, we'll schedule the, um, opening ceremony. And will there be, be a dedication plaque of some sort too? Um, no discussion of a dedication plaque. It's been, okay. It's been happening now. Just something else. How will the community be notified of that? Well, we have, um, a Facebook page. There's a hot, what's it called? Uh, Hot Topics. Hot Topics. Um, PR channels. I'm not super involved with those yet. So I don't know. It's been a council meeting. All right. Thank you. So we move on to consent calendar. We have two, three items on here. No, actually, there's actually two items for minutes. And then the, uh, the excuse absence of two members. So, um , like to start with the approval of minutes. So if anybody has any, uh, the members have any questions about the minutes? Do you see none and entertain a motion to approve? Second. Second. Everyone in favor say aye. Aye. Aye. Aye. Aye. Opp osed? Okay. It, uh, passes 4, 4, 0, 1. Um, the other two items have to do with the excuse accidents of, uh, Derek D ahlgren. And then the other one for Robert Nava. Does anybody have any concern about that? Or any reason why we shouldn't excuse them? Um, I have a concern because, um, um, I've also put in for an absence. I just did it today. Um, on the same day as, as Derek. So we're going to be hard pressed for a quorum on June 17th. So we should pay attention to that. Um, yes, I got, I received your email about your request for June. And so that will be brought to the board for the June meeting. Um, should we have a quorum present? Okay. With that, do we have, uh, approval of those two excused absences? Motion. I move that we approve those, their absences. Second. Everyone in favor say aye. Aye. Aye. Opposed? There are none. So we move on to our business item. And the first one has to do with the Morrill Creek watershed management plan. And so I believe there'll be a presentation for that item. Thank you, acting chair Donnelly and members of the board. Again, Nate Stong, city engineer, um, pleased to bring a project update and have an opportunity for you to provide some input on, the initial stages of our analysis and, uh, in this project , which is the, the Morrill Creek watershed management plan. Uh, this is looking at the, the flooding conditions in the Morrill Creek watershed. And it's a holistic look at the entire watershed, a reevaluation of, uh, the hydraulics and the hydrology and, um, areas that, uh, have historically flooded in, you know, the lower areas of main street, Preston, um, Prescott, excuse me, um, Errol . And, and those low lying areas, um, as Morrill Creek goes under main street and 101 and out to pass the wastewater plant and the, uh, water treatment building. So this project is actually comprised of, of two elements. Um, one is a flood proofing of the, uh, water treatment building, the reverse osmosis building. Um, and we'll get into more of the details, um, later. And then a holistic look of the watershed itself and opportunities for projects to mitigate flood risk, uh, in the lower areas, as I mentioned, along main street. The project stems from the storms and flooding that we had in 2023. Staff reached out and obtained a FEMA hazard mitigation grant of approximately $1.4 million to perform this study and develop plans up to a 60% level and perform environmental analysis. So with that grant money in hand, staff contracted with Coastal San Luis Resource Conservation District to help administer the grant. So we're working with Hallie Richard over there. And then we went out with a request for proposals for the scope of work for those two projects that I mentioned. And we hired Stillwater Sciences. And we have Ethan Bell here in the audience that will be making a presentation on their scope. And if I could invite him up to the podium, he could potentially transition. And he will provide comments on this PowerPoint, if that sounds good. Thank you. Yeah, I'm Ethan Bell. I'm with Stillwater Sciences, which is an environmental consulting firm. Our office is on the corner of Surf and Main, so just up the street here. And we're really excited to be collaborating with the city and working on this project. I'm not sure exactly how I advance the slide. Is that a... That's a U. Yeah. Oh, wonderful. Yeah. Yeah. Yeah. Yeah. So this project, essentially, I think... I'm not sure to agree to it. You have a familiarity, but I definitely want to be responsive to any questions that you have, feedback. But our overall purpose of this project is to really identify opportunities to reduce flood risk in the watershed. And when we say that, really, our main concern with flooding, based on what's occurred in the past, is the area around Main Street Bridge, the 101, or I 'm sorry, the one there, and Silver City, and that zone. And that's the area that's really the response reach for increased water surface elevation that occurs in the watershed in response to precipitation events . So, and in addition to that, one of the primary city facilities that was really impacted was the RO facility. So one of the specific objectives of this project is to essentially flood proof, or to the extent that's possible and feasible, to flood proof that facility. So in order to do this, we formed a team. It takes a lot of different talents to do a project like this. So we're working, of course, with the city and with Nate, and we're also working with the resource conservation district with Haley. So the resource conservation district is doing a lot of the landowner outreach. There's a lot of time that's just spent on being in the watershed and working directly with the landowners that are out there, in addition to just kind of coordinating the overall effort. And then Stillwater Sciences, which is my firm, is involved . We're doing a lot of the biological resources stuff, and we 're also taking the lead on developing this hydrologic model for the whole watershed. We're working with Wallace Group, which is another local firm. They're doing a lot of the civil infrastructure engineering and stormwater infrastructure in the project. Ashley and Vance, another local firm, is focused on structural engineering. So basically, specifically flood proofing the RO facility. And then Rincon Consultants, which is another local firm, is also assisting with a lot of the environmental permitting. And you might be familiar with their work from the water front plan. So essentially, this kind of gives an overview of the approach. But basically, we are brainstorming and receiving input on a variety of just approaches to reducing projects that may reduce flooding in the watershed. And we're developing this hydrologic model of the watershed , which basically includes getting really detailed topography of the whole watershed, which we do with LIDAR. And then also combining that with the very long record of flows in the watershed that's available from county gauges and also a lot of detailed precipitation data. And we build that all together. So we have a surface of the watershed and then all the water that goes into the watershed, all these different inputs. And then we model that so that we can say, OK, in 2023, which is like a 50-year flood, the water surface elevation is at this location. So we can kind of say, OK, here's where it'd be within the hardware store or within these different locations within the watershed. Or the 69, which appears to be about a 100-year event. We can go, OK, where would that exactly what that water surface elevation would be? But once we have that really established for existing conditions, then we can start to look at opportunities to reduce flood risk. What would happen if we widen the bridge at Main Street? What would happen if we put in a really large side channel upstream of the confluence with Morrow Creek? What would happen if we can kind of start to play with different alternatives? Just for grins, what would a big bypass channel look like? Would we even get any type of benefit from a project like that? So we can kind of look at the influence of these different types of projects on water surface elevation during these precipitation events or during these large flood events. And then in particular, establish what is the exact elevation that the 2023 flood, for example, would be in the RO facility. So then we know, OK, it's four feet higher than the electrical systems in there. We know we need to have a flood wall or something that can address that specific elevation. So we have actually collected that LIDAR, the detailed top ography for the watershed. That's an image of it there in that slide. And now we're building this model for the watershed. And the main focus of that model will actually be a two- dimensional model. So we'll be able to look at water depth and water velocity in multiple dimensions. So different directions, not just heading down the creek, but also off to the sides. And the primary response reach for that model will be within the FEMA floodway, which is essentially-- it's upstream of the confluence with Moro Creek and Little Moro Creek, and then down through the city boundary, through that area. So we're working on developing that model right now. So we've got the topography. We've got all the hydrologic data organized and summarized. And now we're putting that all together. So over the next four to six weeks, we'll be really focused on developing the model. We're also talking directly with landowners in the watershed. We have a public meeting that's been announced and is coming up in the first week of June to continue to communicate what our goals are and to listen and receive feedback, everything from ideas to concerns and that. What we'll be doing kind of in that process of communication, but also in that process of developing our model, is start to identifying some flood reduction concepts and then using the model to evaluate what the relative effectiveness of those concepts will be. And then meanwhile, we're moving forward with developing conceptual alternatives for ways to flood-proof the RO facility. We've been communications with the city and with the maintenance staff that are down there on site to kind of get a read on, well, you know, sure you can build a flood wall around this whole thing, but if, you know, if we can't get our trucks in and out in a practical way, then it's not useful to us. So we've been in communications with the city and have a long lifespan. And so really what's next for us is to continue to advance forward the RO facility design and to continue to develop this model and start to identify opportunities using that model. And then hopefully advance some designs and get them permitted and funded and on the ground. And so that's, that summarizes, that summarizes kind of where we're at and what's next. You guys have any questions, input? Thanks, Ethan. Thanks, Ethan. And I will just jump back in. I really appreciate the presentation and it, I just say it 's early in the process. So what we're doing now is presenting the fact that we have a project that we're starting. They've been working on the existing conditions modeling, the survey, the topography, and they've started looking at the hydraulic models. But we're to the point now where we're going to be starting some public workshops. And Ethan mentioned June 3rd is one workshop in this building, 5:30 PM. So stay tuned for that. And that purpose will be, you know, to get more of people's experiences during flooding events, ideas, and open up the channels for communication. And one way to stay in tune is with our notify me page. I found the best way is just Google Morro Bay notify me. It'll take you to where you can sign up for either text messages or emails about project announcements. So just scroll down, there's a, you know, you can search, you can get sign up for city council, planning commission, public works advisory board, but there's one entry for the Morro Creek watershed management plan updates. So again, that's Morro Bay notify me. It's a fairly long schedule. We're looking out to October of 2027 to complete the project, which completion is a development of a 60% level design for the RO facility. And some, some projects in the watershed that would help reduce flooding that are yet to be determined. So again, just providing a status update on the project and , and seeking input and letting everyone know how to get more information. All right. Thanks, Ethan. Let me see if any of the board members have any questions for you. So Doug. Yeah, I have a few questions. Um, this is probably a question for Damaris that the RO system, the buildings there, they didn't flood in 23. Am I correct? They are above the floodplain. Correct. They did not flood. Um, there was some water, but nothing like what was around in the other areas. Yeah. Yeah. Okay. Because it sits a little higher, was built a little higher than the surrounding. Part of it does. Part of it doesn't. So there is some thought that, that some of the water that was in that area was going into the emergency storage tanks of the pump station there. Because those, um, manhole lids were not on there. So that kind of drained some of that water in that area. Mm-hmm. If that wasn't there, it could be, could have been a little different. Um, I'll just say that it is in the mapped, uh, floodplain. It's in the 100 year floodplain as mapped by FEMA. So, um, I, I think what we experienced in 23 was 50 year potentially. And then I, there is a theory that, uh, that the water was lowered that in that area by, uh, some of the wastewater construction facilities. So, um, but no, the building itself did not flood at that event. And this is a question, general question for, for whoever wants to answer it. The, the, the farmland that, that it's adjacent to the creek up, up, up, you know, inland, is that part of this study as well? Will that be a part of this study? It is. It's within the topography that we're, that we're modeling. So, and it, the whole watershed is included. It's inclusive. Yeah. So is it possible to use that as a floodplain? It's, it is possible. Yes, it is possible. And at, uh, we are not evaluating, closely evaluating options for which we don't have landowner, some sort of landowner approval or agreement or communication. So we're trying to stay away from, from modeling, you know, the construction of a large reservoir. We're trying to make sure that we're looking at a flood plain. We're trying to save the floodplain. And we're trying to keep the floodplain. And we're trying to save the floodplain. And we're trying to save the floodplain. And we're trying to save the floodplain. And we're trying to save the floodplain. And we're trying to save the floodplain. And we're trying to save the floodplain. And we're trying to save the floodplain. And we're trying to save the floodplain. And we're trying to save the floodplain. And we're trying to save the floodplain. And we're trying to save the floodplain. And we're trying to save the floodplain. And we're trying to save the floodplain. And we're trying to save the floodplain. And we're trying to save the floodplain. And we're trying to save the floodplain. And we're trying to save the floodplain. And we're trying to save the floodplain. And we're trying to save the floodplain. And we're trying to save the floodplain. And we're trying to save the floodplain. And we're trying to save the floodplain. And we're trying to save the floodplain. And we're trying to save the floodplain. And we're trying to save the floodplain. And we're trying to save the floodplain. And I think that's a lot of the floodplain. And I think that's a lot of the floodplain. And I think that's a lot of the floodplain. And I think that's a lot of the floodplain. And I think that's a lot of the floodplain. And I think that's a lot of the floodplain. 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And I think that's a lot of the floodplain. And I think that's a lot of the floodplain. And I think that's a lot of the floodplain. And part of your scope is to also come up with some grant eligibility? Yes. Okay. And also, given the flood events of 2023, there's a high possibility of another heavy storm season this coming winter. And what near-term actions can we implement before the 2026 rains come in? They're predicting maybe a 100-year event or could be nothing. Yeah. Yeah, the super El Nino. You know, that's a good question. I think that in terms of, you know, we have been looking at this to develop approaches to reducing flooding. And most of these are projects that would be fairly substantial. And so the idea of what of those could be implemented in the short term, you know, I think there's a lot of perm itting that's involved in this. And, you know, the idea of, you know, trying to find some emergency permitting, that's an interesting question that we could kind of follow up on. So I think that's worth kind of considering if there's, if there are identifiable actions and permitting approaches. So maybe that's something we could follow up on. I think that's a good question. I think that's a good question. I think that's a good question. I think that's a good question. I think that's a good question. I think that's a good question. I think that's a good question. I think that's a good question. I think that's a good question. I think that's a good question. I think that's a good question. I think that's a good question. I think that's a good question. I think that's a good question. I think that's a good question. I think that's a good question. I think that's a good question. I think that's a good question. I think that's a good question. I think that's a good question. I think that's a good question. 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I think that's a good question. I think that's a good question. I think that's a good question. I think that's a good question. I think that's a good question. I think that's a good question. But as far as the scope of this project, this is this is longer. This is beyond 2027 even for and we don't have construction funding. So your first question, are we looking for additional grants? So yes, construction funding through a grant program would be, you know, happening toward the end of the project as we have projects identified. But he could probably if he's far enough along with the model, he could at least give you some directions to try to mitigate some of these actions that could happen at the end of the year. I mean, I think you could we could easily come up with five things that would reduce flooding in 2027 and then see if you could get permits to do them. Well, you know, basically it comes down to, you know, models don't stop flooding projects do. So we need to, you know, we're only three years past 2023. They're predicting a super El Nino and we're still here studying it. That's it. Yeah. Thanks, Derek. You wanted to go last. Go ahead. Go ahead. If you have your comments. Well, I just have two things for item 7A. Please clarify if this is just planning money or is it actual as actual work going to be performed. And I would assume there would be money from FEMA for something like this. Although I don't know. Yeah, it was a FEMA grant. The city went out and was successful in acquiring a FEMA grant, which was a planning grant. Okay. Yeah. Okay. So it's just planning and it has nothing to do with actually performing or. That's correct. Yeah, that's correct. Okay. Okay. And on the workshop for June 3rd, this was the first that I heard about it when I was reading the men, the staff report and the minutes and all that kind of stuff. And I'm wondering the people who would be interested in this, how are they being contacted or are they being contacted? Because I think especially people who live in that area would be really interested in what's going on. And are there flyers at the mobile home park or I don't know. Yeah. Yeah, no, that's a great question. And in the team that we, that we have for this project, the resource conservation district is the lead for public outreach and communications. And they have made a flyer and that's been posted and they 've had communications like with Silver City and other land owners in the watershed. So there's been a lot of direct outreach and also posting of, of information for that workshop. Is that accurate name? Yes. Yeah. Um, and we've had interest walking into our, our front counter from Silver City, making sure, you know, old school methods. So post a flyer and, and mailers. So yes, the word will be get out to those folks. And most of those people are old school. So I would think that old school methods would work well. And we have, and I should say we, uh, Hallie, uh, RCD has also sent out a lot of mailers directly to, um, to people in the watershed. So they're speaking, you know, speaking of old school things in mailboxes. Thank you. Yeah, I have a few questions. It's also my understanding that the building itself, the RO building itself needs the exterior and the roof replaced. Is that part of what you're going to do with the flood proofing? That was done within the last six months, the reskin, s iding and a new roof was completed already. It's been done? Yeah. Okay. So, you mentioned the Main Street Bridge and it seems to me , and I talked to you about this, Nate, the other day, that you can get bridge replacement money, federal bridge replacement money to replace that bridge, take the center vent out, clear span it, and that would help a lot of this debris and whatnot that gets hung up on that, that backs up into the trailer park. So, I don't think that's something in your scope, but it's something that we obviously, the city should pursue, is a replacement of that Main Street Bridge. Where are we with that? The bridge is not eligible for inclusion as a replacement. There's three categories that Caltrans, Caltrans inspects all of our bridges that are over 20 feet in span. And for this bridge, it's not structurally deficient, which is one category. It's not functionally obsolete. So, it's got the right number of lanes on the deck. It is, however, scour critical. So, they identified that and it's in the highway bridge program for mitigation of the scour risk. And we're working with a consultant on the scour plan of action for that. But I share your opinion and I've talked with Caltrans local assistants about what the future might look like as far as including that bridge as a replacement, not just a rehab. I would argue that it's functionally obsolete. Would you mind defining scour? Good question. Scour is the process when water is flowing. It actually mobilizes the soil particles. And depending on the type of soils, the depth, you know, it could mobilize. If it's sand, it could be very deep. And so, it's, you felt it if you stand in the ocean, the water flows past your feet and then you sink in. That's scouring around, lightly around your feet. So, that happens below a bridge and there's foundations that get undermined and it's a critical element to protect against. So, the footings go deeper than the scour depth, much deeper to withstand that. Does anybody do cloud seeding in this watershed that would exacerbate the problem or does that not happen here? There is cloud seeding, I believe, in the county. I'm not sure if it occurs in this watershed. So, that's not to my knowledge. Do you know if it's occurring in this watershed? I don't. I don't know if it's occurring in this watershed. Also, as far as the history or the nature of that watershed , the city's water right decision, 1633, describes what has happened over time with that creek in particular. It used to meander down the valley, but the farmers have moved all the way over to Highway 41 where it is now. And because of it, it's scouring down, it's incised, it's actually cutting into bedrock. So, all the flow comes down and it isn't meandering through and percolating and it's coming straight down the channel to the area floods. And then also, the creek at the ocean was redirected years ago, as we know about that. And I don't know if those two features have caused some of the problems that we see today, because of the redirection of the creek and what it's doing today. Yeah. I think that's a really good point. Part of the way we're going to be organizing this information is in a watershed management plan. And part of that will be to describe the historical context of, you know, kind of how we got to this point. So, we're looking at like the underlying geologic terrains in the watershed. And we'll also be looking at the historical land use. That said, we're mostly focused on existing conditions as they are now and approaches to reducing flooding. But it is, you know, very helpful to understand how we got to this point in order to explore potential, you know, options and solutions. But you said, you said, did you cite a document that you said you were, or? The water rights decision the city has for its taking of water in Moro and Shore Valley. Okay. And all that stuff in there. Okay. It's found at the State Water Resource Control Board Division of Water Rights. Okay. It's 1633 is the number. One of the things, and I don't know how we can control this , but if the farmland is fallow and all that soil is exposed and we have a big El Nino event, is there any way that we could control that or mitigate that or do anything to keep that from adding to the problem? Yeah. You mean just like the scour and loss of soil that occurs in those events? Or you mean, is that what you're referring to? Well, for instance, when they built the Dairy Creek Golf Course and they exposed 200 acres to dirt. Yeah. And then it rained and it was a nightmare. And all the creeks, Dairy Creek in particular, chocolate soup. If they had just not exposed all that soil or kept it under control, it wasn't until they blow straw all over the area that it's finally pot the, it 's the coefficient of runoff that's increased. And now you've got a battleship on your hand and so all that stuff will just run off. It won't stop. Whereas if there was something growing there or something that was on the surface to prevent that, that would really help a lot. Yeah. I agree. Yeah. Impervious surface increases the, you know, the flooding. And exposed soil is a problem. And so as much as I would, you know, might agree that there 's, that there's some land management, you know, influence on, on flood risk, I will say it's definitely out of our scope to, to tell, you know, the, the, the farmers what to do. But I'm not sure if Nate wants to go do that. That's. Well, it's obviously outside the city. Yeah. So there's not much you could probably do about it. The other question I had is that you only get your task only to take you to the 60%. Why is that? Why are we going to the final on preparing plans? Yeah. Specifications and awarding the contract to somebody to do the work. Yeah. And this is a, was a FEMA grant and the, the FEMA grant that was, specifies what was funded and they fund up through 60. I think that the reason they do that is that if you take it to 60%, then that's, that gets you permits. It gets you pretty advanced design and it puts it into a, into a state that is very funded. So there's a lot of different sources of funding for implementing a project. And if you have 60% designs, you can, you can get those funds. That's, that would be my guess as to why they stopped at that level of design. All right. I think that's all the questions we have. I'd like to open up to the public if the public has any questions on this item. Got it. Oh. If you could put the slide back up that shows the conf luence of the two creeks, I'd appreciate it. If you could put the slide back up that you'd like to ask for a question. If you could put the slide back up, you'd like to ask for a question. If you could put the slide back up, you'd like to ask for a question. If you could put the slide back up, you'd like to ask for a question. If you could put the slide back up, you'd like to ask for a question. If you could put the slide back up, you'd like to ask for a question. If you could put the slide back up, you'd like to ask for a question. If you could put the slide back up, you'd like to ask for a question. If you could put the slide back up, you'd like to ask for a question. If you could put the slide back up, you'd like to ask for a question. I'm a property owner on Arrow Street. I am the easternmost APN owner where the confluence of the rivers comes together and Morro Creek is entirely encaps ulated in my property from bank to bank. And just to go back a little bit, my property was used to evacuate, collect, and dispatch all of the garbage that came into Silver City. And our property was used as a garbage dump for about six months. And it took quite a while to get everything cleaned up. And then we got a permitted project and then we had arche ological reviews and biological reviews and got permits and are building our project on that property. But all the damage from the heavy equipment from removing the thousands of tons of debris that was accumulated on our parcel did a lot of damage to the road. And Arrow Street is granulated. I almost brought you in a ziplock bag of what's left of the street in front of my property. But there's no point doing that. If I tell you the street's granulated, you'll believe me. So I think that what we need to do is also include whatever mitigation issues and whatever remediation needed to happen from the original flood to get those items completed first. I like to see Arrow Street repaved to the condition it was before the heavy equipment came through and all the soil, the debris, the trash, and everything else was removed. I believe Preston Lane's in about the same condition. I don't think either one of those streets was either rep aved. Well, they weren't even seal coated. There's very little street left at the furthest decent ends of both those properties. Secondly, talking to my neighbors who also own, whose parc els also completely cover Morro Creek. Back in the 80s and 90s, according to them, there used to be a program where they got to clear the surplus debris in the bottom of the creek to keep it from breaking loose, accumulating, and then using the bridge as a dam when the water flows downhill. If the water's flowing, it doesn't seem like it's as big of an issue. When the water drives the debris to the bridge or the series of bridges, that's when the big issues start. So, if there was a way to get permitting to allow property owners to work within guidelines to help clear some of the debris, it would help. When the second major flood came through after the wood debris was done, then we got silt. My property, the finished grade was approximately 22 inches higher than when we purchased the property after the second flood. That's where a lot of your farm soil and sediment ended up was on my lot. So, the water was free to move at that point, but now we were in the condition where the creek was flushed. So, all the wood debris from higher up basically chopped everything out. But now it's all regrown again. So, it's kind of like a double-edged sword. It went through, but now we're going to be in the same condition of all those trees re-collapsing over time and causing this event again. So, we had power poles washed out from scouring. We just got done getting PG&E onto our site last year. We had to come reset two power poles. They had to reset anchorages and guy wires. It's been a long process. And this is from the 2023 flood. So, I would like to see that come full circle while we're considering moving forward with the 26 and 27 plan. And then it is nice that San Luis Obispo County has a remote read on the bridge so we can monitor the creek level and flow lines. But it can be startling when you're not at the property and you slowly watch the footage raise, raise, raise, raise, and you're just crossing your fingers and hoping it's all going to go on down the line. But I do appreciate you giving me a few minutes to mention that and if you would consider any of the completion of the remediation from the previous floods. All right. Thank you. Thank you. Are there any other members of the public who want to speak on this item? Betty Winholz. Betty Winholz. My question was one of curiosity because I know or I assume the city got FEMA money earlier and maybe we and so what was that spent on? Because this sounds like a new grant and that it's not addressing the repairs that were reported earlier. So I guess I and maybe it's because I came in late. I didn't hear the progression of where we were in 23, 24, 25 to 26 and what has been done. And is this a continuation of that or is or is that ignored or not part of this project? And then the previous speaker reminded me that, you know, we need to be addressing people on the other side that are on Little Morrill Creek Road like Nancy Castle's house and those other people. It's not just about Arrow or Preston. It's also about Little Morrill Creek. So I is the scope of this project going to encompass how much how many parcels? Thanks. Thanks, Betty. Michelle Esther Cattery, Morrill Bay. In 1995, Morrill Bay flooded extensively. We're we allocated any FEMA funds from that flood, which took out, I mean, the bottom area of Radcliffe under Highway one. I mean, it was a disaster. I still remember that. And with the impending possibility of a super El Nino, can we apply for emergency permitting to have to work with farmers, you know, to trim out some branches that will cause, you know, issues in the creek bed. The other thing is, you know, I'm being that I, you know, I hike a lot of the trails and do a lot of, you know, excurs ions through the Morrill Creek area. Over the last 20 plus years, I know that there, I'm sure there's aerial imagery of farmers who dump agricultural waste into the creek bed, which changes the, the creek and debris flowing downwards. You know, it has changed so significantly and you can see when there is fresh dumping of trimmings of, of dirt that they've excavated off of their property, which does need to be addressed. I mean, there's no two ways about it. The other thing is, the other thing was how far up the creek is the city working or the, the firms working? The other thing is, is that we're working with the farmers to help prevent flooding down below. Other than that, I think that's it. Thank you. Are there any other members of the public? Let's just speak. Ray, is there anybody in the queue that would like to comment? There are no raised hands in the queue. All right. Thanks. I'll close public comment. You know, there's a couple interesting things here in particular with what may be forecast this winter. Are we prepared? Is the city prepared? Nate? Demeris? Is the city prepared for a hundred year storm? That's a hard question to answer. I mean, we can do our best, but a hundred year storm is going to be pretty difficult to prepare for. I think what Nate is doing is, with his project there, is trying to get prepared for stuff like, for a larger storm like that. My thoughts are, is that if there's debris that is picked up out of there and then it's dumped on somebody's property and then left there, there should be a plan of action that says, we're going to take this material that we find out and put it in a designated area, have that already figured out. And if there's any way you can get in there and trim all the vegetation that has regrown in that creek to help the situation. I know that requires a lot of permitting to do, but is any of that considered? So, I wasn't involved in a lot of it last year, last couple years, last flood that happened. But I know that the permitting for it is difficult for the city because the city doesn't own that property. So to get a permit for it, it really is the property owners that can get the permit to clear the creek. And then as far as dumping, I don't know if that's like outside of the city in the farmlands and how we regulate. Well, the city owns property over there by the bike path. And I know that was a little lake too, but it seems that would be, at least it wouldn't be on private property necessarily if you had a place to put that stuff there. Now, the other question came up that Betty brought up about the FEMA money from the event itself, which I guess went to help a lot of the private property owners. Did the city get money for that? Or is this part of that FEMA money from then? This is not the same pot of money. This is a planning grant, hazard mitigation planning grant. The money that was provided in response to the emergency and the work that was done to clear out and respond. There were many individual projects. Each location had its own project number. Managing that money was actually probably more expensive than getting the money. There was so much staff time spent on all those individual projects. But that was, yes, a different pot of money to respond to the event versus this is planning for the future. There were other questions I'd be happy to respond to. Yes, please. Ethan alluded to Hallie Richard with the RCD reaching out to landowners in the county. We've already made contact through the process of obtaining rights of entry for survey work that we've done. We've had surveyors on properties. So we've been talking, or she has, with those owners and sharing the project scope and seeing if there's any interest in them participating. So that kind of initial outreach is being conducted. Because, yeah, you sit from here and say, well, what if there was a side channel in it? If this farmland were lower and it could be used as flood storage in the winter? If they had the right crop, if it was orchards that might work, you know, vegetables destroy the crops. So we'd have to work with the farmers on different project proposals. But that is happening. It is, you know, outside the scope of, like, designing a project. Unless it really pencils out. If we did a large reservoir that could potentially, you know, store enough water to reduce peak flows to the degree that it really helps us out, then maybe that's the project. But it'll shake out of the process as we get into it. So, one of the things that I'm looking at is, and the reason we're calling this project the Watershed Management Plan, is it's somewhat emulating the City of San Luis Obispo's Watershed Management Plan. It acts as a programmatic EIR to facilitate permitting. So, to the degree we can put best practices for vegetation management, restoration, stream bed restoration techniques, if there's, you know, root wads. And maybe Ethan could speak, he's more on the biology side than I am. But rather than, you know, just hacking out all the vegetation, perhaps there's, you know, methods that's spelled out in our watershed management plan on, you know, trimming multi-branch willows, or, you know, focusing on the types of vegetation that's really blocking the flow. And while you're doing it, it's not a clear cut. It's keeping habitat and the environment. So, the permitters are happy. And I just wanted to thank the property owner there at Arrow and the confluence of the two creeks. That's an example of what we're looking for. We want to hear of the experiences so we can learn from them and address kind of the problems that we've seen. Okay. Thank you. Any of the board members have any comments to make? Doug? I think. Sure. All right. Well, thank you very much, Ethan and Nate, for that. I believe the item in here is to receive the update and we gave the input, so we're on to the next item. This is the item as the allocation of water equivalency units for the next fiscal year. I'm up again. All right. This item has to do with the annual request for your recommendation to go to council on the amount of water equivalency units for the upcoming fiscal year. And what is a water equivalency unit? Nancy? As summarized in the staff report, the issue stems from a citizen ballot initiative, 1984, to address the concern that there was potentially inadequate water supply to meet the fast-growing in the '80s Morro Bay was growing fast and water was groundwater. This was before state water. So the measure passed and it's a growth management system that looks at a target population of 12,200 people and attempts to control the growth and not exceed that amount. And concerns, like I said, for reliability of water supply. I'll start referring to them as WEUs so we can get through this. WEU is a measurement. It's to make one unit so that the base unit is a single- family home with, you know, assumed to have 1.9 people in it . And using each person using 90 gallons per capita per day, which equates to about 0.2 acre-feet. So the city's urban water management plan looks at water supply and the demands and includes contingencies for consideration of a potential long-term drought of five years. So it's the worst case. And our 2020 urban water management plan includes enough water supply for current and future growth, including the project, you know, the model worst five-year drought period on record. Last fiscal year we used, so the allocation is typically we ask for 115. So you see 50 residential, 30 single-family and 20 multif amily and 65 commercial WEUs. We rarely see many used. It's been a period of, you know, relatively slow growth in Morro Bay. So last year there were only three single-family residences that used the allocation. And it doesn't apply, it's not allowed to, state law for developments such as ADUs. So those are not allowed to be considered as a WEU or restricted based on that. So they're not accounted for in that. So we're seeing, it's not a comprehensive list of all building activity is the point. Just one. And the latest census, date of 2020 census, 10,700 people. So we're still well below the cap that it was identified in measure F of 12,200 people. And so with that we're still maintaining the recommendation to move forward with the 115 WEUs, 50 residential and 65 commercial. And with that I'll take any questions. Thanks Nate. Do members have any questions for this? Doug? No questions. As I was reading this, one question I have is, does -- oh God. I asked what the Planning Commission's discussion and recommendation was, does it carry over from previous years? Does that make sense? Yeah. No, that's a good question. No, we go back to the Planning Commission each year. So a week or two ago we went to the Planning Commission and they concurred with the staff recommendation that you see before you hear. Is that your question? I'm sorry. Yeah, I'm kind of confused now what I was thinking. I think you're asking if the number of WEUs get continued each year, get -- like if we only use three this year, are those getting added to next year? No, they don't. You reissue them each year. Okay. Yes. That was it. Thank you for -- Derek, do you have any questions? The conservation is, you know, based on 2016 numbers and since like we have ADUs out there that's not being counted, are they using stale assumption data to maintain this? So the WEUs based on 90 gallons per capita per day and that is about average of what the city uses currently for the entire city. Residential is a lot less than that but the entire city is about 90 gallons per capita per day. So it's pretty accurate for where we're at now. Okay. That's about it. Yeah, I was going to ask the same question that Betsy had as whether or not there was a carryover from a previous year. Apparently not. And obviously we never really utilize all of the WEs in any given year. But I was kind of curious, what is the current overall demand of water for this city right now? How much water do we use in a year? About 1,000 to 1,100 acre feet a year. Okay, that's what I thought. So this was totally insignificant. It would not affect our demand at all. Okay. With that, I'll open it up to the public for any comments on this item. Betty Winholz again. I understand that this is, as it was explained, that this is here because it's a city, citizens approved rule. But you're saying that the state says that we can't count ADUs and other things like that. So could you explain that a little bit? Because that, if we've made the rule, how is it that the state's telling us how to do that? Or are they defining what the WEU is? And even though we can't technically include that, it seems to me we want to know that. I mean, we've had quite a bit of construction and remod eling done since COVID. And there's, you know, a lot more that's living here and we 've see houses go up periodically. And it seems to me this definition is not helping us to understand what we're really doing here in terms of water, in terms of usage. And I don't know what, how much water we're getting this year from state water, but if you could maybe talk about that and say we're at 86% or we're at 10%, how much are we actually getting from the state right now? And how that fits with the bigger picture. Thanks. Are there any other members of the public wish to speak? Ray, do we have anybody in the queue who would make a comment? There are no raised hands in the queue. All right. Thanks, Ray. I'll bring it back to the board. As far as the question about the water from the state, just last week the State Department of Water Resources issued a notification that they would supply 45%, which was would equate to about over 1600 acre feet for us, which is well above the 1100 that you said. So we have adequate water supply from the state of California, that's for sure. So that's not a problem. With that, I don't have any other comments to make. Does anybody on the board have any comments more on this item? Okay. Entertain a motion to recommend that we have the city council allocate the 50 WEUs for residential and 65 for commercial development for a total 115 WEUs for the next fiscal year. I move. I second. All in favor say aye. Aye. Opposed? Motion carries. Okay, we're on to our last item, which is the quarterly report for the water reclamation facility. Yes, good evening. We have the War Quarterly Report, which we have Confluence here who will be presenting on this item. So you can give us just a second and move things around here. We will be giving the quarterly report. This is January through March report. Okay. Okay. Okay. Okay. Thank you. My name is Jamie Girard. I work at Confluence Engineering Solutions and I'm a water resource engineer. And I've been working on this project for a few years. So I'm excited to give you guys the quarterly report update . I'm excited to give you guys the opportunity to give you guys the opportunity to give you a little overview of the project. We have projects in four phases. The water resource center is phase one, which has already been constructed. Conveyance was phase two, and that has also already been completed. And right now the report's mostly on phase three, the recycled water facilities, which will soon be constructed. And last phase is the wastewater treatment plant decomm issioning, which will begin this summer. So this quarterly report is from January 1st through March 31st of this year. And we have some of the highlights here. 225,754 dollars are spent this quarter on the project. And some of the main activities to highlight were that we completed the environmental compliance for the Bureau of Reclamation. The Bureau of Reclamation issued us the Title 16 grant, the $9.3 million grant. And they had to comply with NEPA, the National Environmental Policy Act, which means we needed to provide some sort of compliance for that. And we ended up having the Bureau become an added signatory to the EPA and the city's programmatic agreement. And they used their EA to comply with their environmental compliance needs. And they issued us the kind of paperwork that we need, including the finding of no significant impacts, meaning that the project is not anticipated to have archaeological environmental impacts. As well as they issued us the determination of NEPA adequ acy, which means that they concur with the EA that was developed under the programmatic agreement. And with all that, with all that, like compliance wrapped up, they issued us the notice to proceed with construction. So we are, we're all set on that. So that's a, it's an exciting milestone for us. Another item that we've been working on this quarter was the engineering report and the grip permit. We met with DDW and the Regional Water Quality Control Board to discuss kind of just the next steps on how to get there. And critical path was we needed to issue or be issued a new ASR permit for the injection tests that we're planning to do for this next like phase of injection wells. And then lastly, we continued preparing the bid docs. So we have our summary of funding sources. This is in the quarterly report. And it shows kind of like what the, it shows like that we haven't spent any money of our title 16 grant yet or our IWRM grant and all the funding we have left from WIFIA and all that. So we have our project schedule. Critical path right now is getting that grip permit. We'll talk about that a little bit more later. As well as the release of the bid docs will be coming up. Right now the project team is reviewing the bid docs and you know, getting those all finalized. Yeah. So on the injection wells design, mostly completely wrapping up kind of the bid docs like I said. And right now we're working with kind of finalizing locations, mostly coordination with the property owners. The kind of initial phase, let me actually skip to the map. Yeah, the initial kind of phase wells all shown here on the map are on Visture property. So we need to just get an easement to be able to drill these. And so we, we issued them an appraisal recently and have been negotiating kind of the terms of what an easement agreement might be. So don't have that, that wrapped up quite yet, but that is getting there. As you can see on the map here, the green one, that's injection one that's already drilled. And we've done some initial testing on that. And then we're planning to do in two or three more injection wells here. And then we'll do the tracer studies to make sure that they meet the travel time and that we can get kind of an estimate on how much capacity we can inject into those wells as well. And this is just a more detailed kind of map of the siding. So this shows kind of the easements for the pipelines and the injection wells and the footprints and all that. So we have the monitoring wells, the city plans to drill the initial injection wells and do some initial testing. And then once the well locations are finalized, we, we can get approval from DDW of the monitoring well locations. They have given us some preliminary approval that the sites look good, but they would like to see the final injection well locations before kind of a final approval. And the plan is to install those injection wells prior to equipping or install the monitoring wells prior to equ ipping the injection wells so we can use them for testing. And this is just a map of the kind of proposed easements for the monitoring wells also on investor property. And so kind of some upcoming and ongoing items here, continued coordination with DDW on getting that grip permit . The, a few months ago back in February, we brought an item to council and PWAB for an amendment to GSI's contract for $48,000 to prepare the ASR permit application for this upcoming injection test, as well as to prepare the reports associated with that injection test. And GSI has completed and submitted the permit application. And we have heard back from DDW and the regional water quality court that they have received it and they are reviewing it. So let's move along. And then we also continued working with the RCD and coastal commission to kind of work on a path forward for special position five, which is the agricultural mitigation. No, no big updates on that at this point, but just that we 've kind of continued making some progress on them. And the archeological investigations of the wastewater treatment plant are expected to occur this summer. The closeout with Cayucos on the wastewater treatment plant is still in escrow. So we're waiting for that to close. But anticipate doing that as soon as possible because that is the next step in moving forward with the decommissioning and demo, the phase four. And also another critical path item that we touched on earlier a little bit is that we need to release the bid docs for the initial phase injection wells. And that should be coming up soon. Like I said, we're finalizing the bid packages right now. A quick update on the extraction well project. We provided the property owner an offer package. We did an appraisal and they have a right to complete their own appraisal if they don't agree with it or they just want to check it. They're welcome to do that. So they are in that process right now. So we will kind of continue with negotiations on an eas ement once they complete that. And then lastly, we have the wastewater treatment plant dec ommissioning. This is phase four of the project and it was anticipated to be completed back in the archaeological investigations were anticipated to be completed back in August. But they were not able to move forward due to the kind of negotiations with the Cayucos and the closeout. And so once escrow ends, we'll be able to do the testing and then we can move forward on that. And the decommissioning activities are anticipated to start in December. We have a little update on the schedule. The again, the main highlight is that archaeological investigations, that's the next step here. And then that's the end of the presentation. Thank you. Do the board members have any questions? Doug? This is through Q1. That's a calendar year, correct? So this is a question for Dan, I think. What's the status of the construction at this point? Are we doing anything out there? There's no current active construction. There are three competing critical paths to getting to the construction activities for the initial phase of the recycled water implementation. The first, as Jamie describes, is obtaining the easement swap for injection wells four and five. The other is getting the ASR permit approval. So that once the wells are constructed, we can do the pot able water injection testing and tracer studies. That's part of the phased implementation plan. And then the third is completion of the design and bid documents for the project. And so all three are progressing. We've had some recent hit some good milestones with the V ISTRA easements. And in that, VISTRA has agreed to the appraisal price for the easement swap. And so we're looking to finalize those agreement documents. And then that'll be brought forth to council for approval consideration. The design is progressing. The technical specs for the monitoring wells are complete. The technical specs and designs for the injection wells are progressing at a good pace. And sort of critical path for design right now, at least for the first package, is getting the front end documents finalized. So the program team is working with city staff as well as the design team for the decommissioning and putting together a comprehensive set of front end documents that can be used to support bidding and then the first package of the recycling and the second package. So we're looking at the bidding of all three packages of the recycled water program as well as the wastewater treatment plant decommissioning. And then, as Jamie mentioned, the ASR permit has been submitted to the regional board and is currently actively under review. So with those three items moving forward to completion, we can go out to bid and initiate construction. So are we working on the construction bid documents now? Yes, actively. Yeah. Multiple meetings a week, reviewing, discussing, making changes, developing final drafts. So we're moving that forward as we can. Yep. Okay. Thank you. Betsy, do you have any? I really only have one question. I usually work best if I have an end date when I want something to be finished. Is there such a thing? Or are we just kind of like going along? Yeah. So we have the program schedule as Jamie showed. And yeah, so the current end is initiating program operations in 2028. And that timeline has been extended if the PWAB will recall . We brought last June an implementation strategy to PWAB and City Council that included drilling and testing the injection wells, then proceeding with equ ipping and construction of the pipelines once the injection wells had been demonstrated to provide sufficient travel time. So that did extend the schedule, but we still have that target and are working actively to meet that. Thank you. I'm still new at all learning about all of this. So I appreciate the explanation. Derek, do you have any questions? Oh yeah. What is your current biggest risk in meeting your projected early 2028 completion? I would say that property acquisition, I think has been one of the biggest risk factors. However, with the recent agreement from Vistra on the eas ement swap, that risk factor has been reduced. I think moving forward, biggest risk factor and really I think the largest risk factor for the program and has been not necessarily scheduled, but just successful implementation is travel time. And that's one that we have been actively trying to mitigate against with a number of different strategies, including the potable water injection test at injection well one, where we were able to demonstrate sufficient travel time of over four months. And then with the phased implementation strategy, again, drilling but not equipping and constructing pipelines until we've completed a potable water injection test and tracer study for injection wells four or five and potentially three. So I would say that's the biggest schedule. I mean, there are other schedule risks, you know, obviously in any entire project like this, that the risks could be associated with not getting, you know, responsive or, you know, responsible bids. There's obviously construction delays, you know, potential for biological or other restrictions. But I mean, having an EIR in place and the necessary permits are, well, we're still working on the grip permit as was described, but we're trying to actively move this forward as fast as we can. Ah, travel time. It kind of almost reminds me of wine making has to age. The reason I'm asking about that is because since we've already extended out the schedule, do you anticipate a cost escalation risk due to extended time related to the injection well drilling pipeline, specialty materials contractors? Because, you know, because, you know, because, you know, as we, you know, it sits here, we keep studying and looking at it. We have a yearly escalation. And then currently the country is entering the largest infrastructure build out due to all these data farmers being installed. So you're going to be competing for copper conduit pipe welders, electricians, concrete workers. So that's all out there. And so as farther we get this extended beyond the first quarter of 2028, you may run into some big issues with just implementing it. So do you anticipate any cost increase, creases since we're on a tight budget? Yeah, I mean, anytime you extend the schedule, you run the risk of cost increases just associated with inflation. I mean, I think we've all seen the increase in costs for, you know, household goods and other commodities. You know, there are other external factors, as you described, you're competing for certain construction resources and materials that could impact that, like overall cost of the project. So yeah, that's something we're mitigating against. You know, a couple of, I think, things to comment related to that. There's also have been some benefits to extending the schedule. One of the biggest ones this last quarter was finalizing and receiving the notice to proceed on the $9.3 million EUR OS Bureau of Reclamation Title 16 grant. There was uncertainty around project cost eligibility for that grant until we reached that milestone for the grant. And so with that notice to proceed, we've been given the green light that all the recycled water program costs are eligible for reimbursement, or at least those that haven't been reimbursed through other funding and financing programs. And so now the city can move forward with full confidence that it can get access to that funding. And so, I think, we're going to be able to do that. And so, I think, we're going to be able to do that. And so, I think, we're going to be able to do that. And so, I think, we're going to be able to do that. And so, I think, we're going to be able to do that. And so, I think, we're going to be able to do that. And so, I think, we're going to be able to do that. And so, I think, we're going to be able to do that. And so, I think, we're going to be able to do that. And so, I think, we're going to be able to do that. And so, I think, we're going to be able to do that. And so, I think, we're going to be able to do that. And so, I think, we're going to be able to do that. And so, we're going to be able to do that. And so, we're going to be able to do that. And so, we're going to be able to do that. And so, we're going to be able to do that. And so, we're going to be able to do that. And so, we're going to be able to do that. And so, we're going to be able to do that. And so, we're going to be able to do that. And so, we're going to be able to do that. And so, we're going to be able to do that. And so, we're going to be able to do that. And so, we're going to be able to do that. And so, we're going to be able to do that. And so, we're going to be able to do that. So, once we implement these wells, what if we don't obtain the injection rates as we needed to? We have to add, let's say, an extra well. Do you have contingency built into your plan to mitigate that? Yeah. So, I think it's helpful to go back to the -- I don't know if we can pull up slides. Well, if you go back to the table, the funding and financing sources for the program, you know, the current project budget shows about $12 million of remaining costs. But if you look at the fifth column, there is $48 million of low interest funding and financing and grant funding available to complete the program. And so, that, I think, provides a bit of a cost contingency . You know, in the event that costs come in higher than, you know, the budgeted estimates that were within the latest adopted budget, the city would have resources available to it in the $1.6 million of remaining SRF construction loan. The $21.1 million in remaining SRF construction loan amendment funding. The $15 million of remaining EPA WIFIA funding. And then, you know, which will be the first priority to use in paying for future costs is the $9.3 and the $1.2 million in grant funding through the Title 16 and IRWM grants. So, I guess that would be my response that, yeah, if costs do increase, if it's required to drill an additional well, that the city would preserve funding, low interest financing and/or grant funding to help pay for that. With all your studies currently, what is the risk for maybe a future well? I think, I, to achieve the four 12 and a half acre foot requirement of the SRF loan, there is the risk that an additional well could be required to achieve the necessary injection rates and/or injection capacity. I think the strategy has been to implement the minimum number of wells that we think can achieve that requirement, but plan for the worst. And so, so there are, there's contingencies that an additional well would need to be constructed. The timeline for that construction in the SRF is, is says that within five years of project operations, you need to achieve the four 12 and a half. So the city would have five years from completion of the construction of the initial phase, initiating operations, identifying potentially an injection capacity constraint, and then would have time to evaluate and design and construct an additional injection well to meet that funding and financing requirement. So basically, you could pull it across the finish line at the first quarter of 2028. And if we do run into a problem, we at least got it finished. Yeah, I mean, the goal is to bring the, the injection infrastructure of the initial phase all up to operating in January 2028, and then operate as maximum capacity and determine what that rate is and then adjust from there. So, there, there are, there are a number of factors that we 've modeled, but we really won't know until we actually initiate the project. And there, those uncertainties are, you know, I think, as you pointed out in injection rate capacity, you know, you can, you develop a groundwater model, you can do geophysics , you can do test holes. And all of those will help you better estimate your injection capacity. But until you drill the well and try to shove water down there, you will not know its actual capacity. So we've, we've analyzed and planned around that. There's also some constraints on the treatment side. The city has, you know, when I think in the early, you know , estimates of this program's capacity were around full build out wastewater flows. And as I think we know, the city is not at a full build out condition. So there are lower flows. And there are diurnal demands or, I'm sorry, diurnal contributions, I guess. You know, not all the waste water comes at once. And so the treatment system is going to have to ramp up and ramp down to adjust to varying flow rates. And that may limit the city's ability to say capture every last drop. And that could have an impact on overall program capacity and overall injection rate. So, yeah, again, the program team has modeled these components and developed a strategy that we think can achieve the target initially. However, if there are reduced injection capacities or constraints associated with treatment or incoming flow to the wastewater plant, then the program would need to reevaluate that and would have probably a couple options. One is drill more wells or, you know, look at infrastructure process modifications at the treatment plant to increase production capacity or reach back out to the funding and financing agencies and say, hey, we've implemented this phase with this infrastructure. We have these constraints. We've hit this target. You know, is that sufficient to meet your requirements for the program and move on from there? The other piece of this that, you know, gets lost a lot of times is, I mean, this project is a critical part of the city's long-term water supply strategy. It's modeled in the 2020 Urban Water Management Plan as allowing the city to provide a reliable source of water in that five-year drought that city engineer Stong had referenced in the previous item. And so it's important that the project delivers on that component too in providing the city a local, reliable water supply source as it is currently heavily dependent on imported state water. And so it's important that the city's long-term water supply is not going to be able to do that. And so it's important to know that the city is not going to be able to do that. And so it's important to know that the city is not going to be able to do that. So, I think that's a good question. I think that's a good question. I think that's a good question. I think that's a good question. I think that's a good question. I think that's a good question. I think that's a good question. I think that's a good question. I think that's a good question. I think that's a good question. I think that's a good question. I think that's a good question. I think that's a good question. I think that's a good question. I think that's a good question. I think that's a good question. I think that's a good question. I think that's a good question. I think that's a good question. I think that's a good question. I think that's a good question. I think that's a good question. I think that's a good question. I think that's a good question. I think that's a good question. I think that's a good question. I think that's a good question. I think that's a good question. I think that's a good question. I think that's a good question. I think that's a good question. I think that's a good question. I think that's a good question. I think that's a good question. I think that's a good question. I think that's a good question. Is it possible to put that slide up again that shows the injection well locations? Yeah, that one. Injection wells number four and five, which this seems to be moved over into the fishermen storage area and talking to the representative of the fishermen, you know, they rent those spaces out. So I don't know how they're going to be compensated for their loss in those two locations. Is there any discussions about that with the group? We have had discussions with them. We are trying to minimize the amount of area that we are disturbing of them there. And they've been really cooperative with us as well. Is there any way to demonstrate to them on the ground the area that you will be then fencing around those injection well locations so they can see what they'll be losing? Yeah, we have. We've shown them this image here, which really shows where the construction, you know, easement will be and where the permanent structures will be and all that kind of stuff. So we've been out there with them on the ground showing them where it is. And then as I understand it, to get from injection number one over to four and five, you're going to do some horizontal drawing and drilling through that area to get to that area with pipes. Correct. Speaking with the tribal monitor out there when they're doing the creek restoration, she said over her dead body. I mean, this is a sacred burial ground in this location. And if you dig underground like that, you will probably encounter burials. What then? I mean, this would be a showstopper. You'll have to stop and talk about your risk. That would be a big risk if you run into something. Yeah. So the city has a programmatic agreement with the EPA and the State Historic Preservation Office that has very stringent pre-construction testing requirements. And those pre-construction testing activities have been completed. They have been demonstrated to be sufficient for the EPA and the SHPO to have that identified that there aren't archaeological resources in the areas that will be impacted . A majority of the HDD will be going at a depth that, according to the archaeologists, is unlikely or potentially impossible to have human remains just given geologic time and patterns. And so there's been an extensive amount of testing and analysis done relative to this. Every pipeline alignment in the entire project has been pre -construction tested to determine that there aren't resources there and that the city can proceed with the project. You know, for the past 9,000 years, this is where they buried the remains of their ancient ones. It's the shadow of the rock in the winter solstice is the burial grounds. And in my knowledge, they've already discovered at least 60 burials out there. There's still some remaining out there. There's still some remaining out there. There's still some remaining out there. There's still some remaining out there. There's still some remaining out there. There's still some remaining out there. There's still some remaining out there. There's still some remaining out there. There's still some remaining out there. There's still some remaining out there. There's still some remaining out there. There's still some remaining out there. There's still some remaining out there. There's still some remaining out there. There's still some remaining out there. There's still some remaining out there. There's still some remaining out there. There's still some remaining out there. There's still some remaining out there. There's still some remaining out there. There's still some remaining out there. There's still some remaining out there. There's still some remaining out there. There's been, as I said, we don't have that figure. We've shown it previously. Hundreds, probably borderline, like potentially borderline, thousands of holes punched along the different alignments to test for the potential presence of archeological resources. I also, I think the last time you recorded a report, you're talking that you were still doing some tracer tests. Are those all been concluded? Are you done with doing tracer tests? The tracer tests that were referred to in the previous quarterly meeting are the tests that will be completed at injection of wells four and five. So no, those have not been completed. They need to be constructed and then performed. Okay. And then as far as the travel time concern, because I remember reading something from the State Water Board about if you go into full production of your extraction wells, that may disrupt your modeling because it'll draw everything in there much quicker when you go into full production. Is that been taken into consideration? Yes. That's been incorporated into the modeling analysis and has been reviewed by the Division of Drinking Waters recycled water unit. And then, of course, you give the 2028 time period, and I guess you got five years after that, but at what point in time does the State issue its groundwater replenishment and reuse permit to allow us to put it into our system? At the end of the five years? No, no, no. The permit gets issued prior to initiation of the program. So the permit gets issued sometime either in 2026 or 2027. How will we know that we're getting 412.5 acre-feet to existing uniters coming out of our faucets? How will we quantify that? How do we know that? There's several ways that we could quantify that. That could be quantified through injection amounts. It could be quantified through extracted amounts. It could be potentially quantified through advanced pur ified recycled water production amounts. The funding and financing agreement, to my knowledge, is not detailedly specific to exactly how you quantify it. I think the approach would be for the city to observe and measure production, injection, extraction, and develop a justifiable quantification and submit that to the State Water Resource Control Board as demonstration of compliance with the requirements. On each step of the process, starting from the advanced pur ification of the new plant, and then going down through all the -- in fact, the final -- I have to go through the VR, RO, before it goes into the system, there's losses, you know. So how much permeate do you actually get at the end of all of that train? You -- you lose the majority of the loss -- Is there sufficient of effluent being released at the plant that would get you after all those processes and losses to get you to that 412.5? Yes. So the modeling that's been done has -- there's, well, multiple levels of modeling. There's groundwater modeling, which we've talked about, but there's also production modeling that's been done that accounts for the losses associated with the MF and the -- sorry -- micro filtration and reverse osmosis processes. The biggest losses occur in the reverse osmosis processes, but that's been factored into the production modeling that was done for the project. So how much is lost in the concentrate each time? I think -- I don't know, Demeris, you might have a better sense of -- Yeah, it's roughly 20% as a loss. 20%, okay. One of the items you talked about is the last contract amendment we had with Kevin Merck, but it only goes to the end of this year. Won't we need him beyond that time? Will we expect another amendment with Kevin Merck? Yes. That contract amendment, there was a request from the War Subcommittee to have it -- have a termination date. So it would need to come back to the PWAB and the board to extend that. So that's the way it was structured. At the burn rate that we're seeing right now, I don't know that it will use the budget at that point. But at the point that the project goes into construction, then the number of the program contractors, the program costs will increase, specifically biological monitoring, you know, pre-construction surveys and education and other things. So at some point we may need to bring back a contract amendment to allow biological support services for the completion of the project. You're now characterizing the demolition of the old plan as phase four, but you're saying that that's not considered in the WRF budget. However, it was made a special condition of the coastal development permit. So why is it not being funded under the WRF program? Those are historical decisions that predate my and I think many of the program teams' involvement in this project. It was considered phase four, but since I've been involved, which is the last four and a half years, it has never been part of the program budget. So I don't know the answer to that. Well, you're saying it was made a special condition of the permit for the project. It's not a line item in the budget. So at some point, city -- The same thing is said about the new extraction wells that you want to put in, that that's not covered under the WRF program budget. But to me, it seems like it's essential to make the whole thing work. Is that not true? Yeah, it's not part of the WRF budget. It's a capital project on its own. Final question, and I don't think anybody can answer this one, is do we know what it'll cost per acre foot when we receive that water in our system? How much per acre foot that will cost? We don't have an estimate of that right now. Yeah. Will it be more expensive than the state water we receive, which is about $1,100 an acre foot? That cost would need to be estimated. It's -- and we've talked about this, but it's probably good to bring back up, you know. But incorporating recycled water into the WRF program overall allowed the city to access over $100 million in low interest financing. So that reduced the cost to the citizens for the wastewater plant relocation and new construction significantly. So you could calculate the cost specifically to the water, but I think it's important to keep it in perspective of the whole program. And as the recycled water incorporation allowed access to low interest financing and grant funding that wouldn't have been there if it had been a simple -- it's not simple -- solely limited to a wastewater plant relocation and construction project. Well, there's also all the power expenses and pumping it one way, pumping it back, pumping it into the ground, pumping it back out again, running it through RO unit one more time. So all those are pivotal to the cost per acre foot of that water? Yeah. Yeah. Yeah. Yeah. I mean, I think even without recycled water, you know, you would have to pump it to the water resources center and back. So, you know, you'd want to think about what you wanted to consider in that cost estimate. But yeah, no, advanced treatment recycled water programs do require RO and UVAOP processes, which are energy intensive. But there is no cheap water anymore in California. And so this is what many other communities are moving towards. Monterey has a very similar program. It's been online six or seven years. So-called Creek Water District in Santa Cruz recently just came online with an advanced -- an IPR program. Carpenteria is in the middle of constructing an IPR program . And then programs of this type have been in operation for decades down in Southern California, specifically in Orange County and other areas. Do we know what their costs are? There are estimates out there. Yeah. range somewhere in the $2,000 to $3,000 an acre foot range. Okay. With that I'd be happy to open up to the public for any comments that people might have on this item. Michelle Esther Catery, Morro Bay. I have a question regarding the agreed upon purchase price of the Vista property, the easement swap, and is it a full purchase price at the time of the swap, or is this like an installment over X amount of years while the wells are being investigated? Is there anybody else from the public that wants to comment ? Ray, do we have anybody in the queue that we'd like to comment? There are no raised hands in the queue. Thanks Ray. So is it possible to answer Michelle's question? I am a little reluctant. I'm not sure what limitations we may have related to you know property negotiations with private property owners , so I would maybe defer to the city staff on that. Yeah, I think we haven't quite yet brought all of this to the work subcommittee and daylighted it to council yet, so I think we'll probably reserve that until I let them get out. Okay. Thank you. So with that I'll bring it back to the board. Does anybody have any more comments? Do it? I have one more question. Do it? When do we anticipate the design package to be implemented for review? This summer is where we're at. Like I said, the monitoring well design package is nearly done. We have target of getting that out to bid in a matter of weeks. That will then be followed by the injection well design package, which should probably another month or so until that is complete and and ready to go out to bid. That 's been intentional. As Jamie mentioned, it's the you want to have the monitoring wells in place when you drill and test the injection wells. So it's been staged in that order. But yeah, the design documents are nearing completion. They, you know, they've been not fully complete because we did not want to put the cart in front of the horse until we were had more confidence that the easement swap was going to go through as obviously the certain design elements are tied to the exact location of the well. But I, you know, with confidence, I can say that we're nearing the the finish line on that easement swap finalization. And then that will allow for the finalization of the injection well design packages. And what about your pipeline modifications, uh, pump modifications and so forth, uh, that's required at the, at the wharf? Yeah, so those are, um, also sort of staged as part of the phased implementation, um, program. Um, the, the design of, uh, the pipeline and the injection well equ ipping, uh, I look back at the schedule is, is intended for later this year, early 2027. There's, there 's time because we have to do, you know, according to our implementation strategy, we're going to drill the wells, we're going to test the wells, we're going to demonstrate travel time, then proceed with, uh, construction of the additional program components. Uh, so those are not going to come out this summer, but we'll follow subsequent to successful demonstration of, uh, travel time with the additional injection wells. Okay. Thank you. Any more comments from the board? No, without this is a receiving file. So thank you very much for your presentation. You're welcome. With that, we'll go on to, um, any, um, board members have any items for future agenda? The last, uh, city council meeting, we were, we were tasked , well, they asked that the P web be, um, comment on the one water project. Um, I'd like to see that on the, on the agenda. I agree with that. There was also a couple other things that are still outstanding. Yeah. Go for it. Yeah. Um, so I was looking at the on page. Microphone, please. I thought I pushed it. I'm sorry. Um, I was looking at the, the packet of the agenda and everything. And on page four, it says future agenda items. And I noticed that not all of these things have been addressed. So my question is, um, are we going to see follow up? For example, we, um, not on that page, but, um, we've talked about the, um, prog. I want to know the progress on the bike lane markers. Uh, oh, that's something different. Uh, oh, that's something different. The bike path to Cayucos. I'd like to know about, um, what's happening at the intersection of Maine and Quintana. Um, um, I, um, I, um, I mentioned when I was, um, interviewing for this job that, um, I, I ride my bike a lot . And I, um, um, by the cloisters, there's a bike path and there is a pedestrian sidewalk. And people, and same with going out to the rock. Um, that's not quite as bad. People do tend to walk on the sidewalk going out to the rock, um, because it's closer to the water. But when I'm riding by the cloisters, people are always in the bike path. And I, I had mentioned that it would be lovely if there would be some, you know, the signage on the, the path, like you do, like you have on the streets. And, um, so I, I'm wondering if that's ever going to be addressed. Um, and let's see, what else do I have? Um, it's not, well, what, I'm just going to read what I wrote. Since I'm still learning, if a citizen's request to, oh, I know what it was on, um, it's on page seven, um, from February 18th. So someone re, um, spoke about the erosion at the bottom of Bay Shore bluffs. And I'm wondering what kind of followup do you do when someone has a request that that's looked into? Does that make sense? Anybody? Yeah. Sorry. Yes, it does. Um, so there's, there's a lot of these items that staff's working on, but there, there's a lot of projects that we're working on. So there's not always the availability of, there's not enough of an update to bring to you guys just yet. So once we get further on projects, then we can bring these things in for an update. Okay. Um, so that's why there's, there's kind of kind of continuous ones on there that we are working on them, but, um, they're working on a lot of projects. Okay. So, um, so like the bike path to Cayucas, I know, is that, that, is that something that we're working on or? I'm not sure where that project is right now. Um, I, I, I'm not. We spent a whole, over an hour talking about that. And I was just kind of confused why we spent time talking about it if we have no control over it. I'm not, I'm not sure on the update on that project. I have to find out and get back to you on it. Okay. Well, part of it does occur in the city. So I know it's a county project, but some of it does occur in the city. Okay. Well, I just love to have some updates. Thank you. Derek, do you have any items for future? Um, there was something brought up a few months ago about the Los Osos waterline tie-in. Um, we were supposed to be getting some information since, since it seems to be rather vague of where that information is coming from, what's being done, what the project is. Um, and I, and we were concerned about it just sneaking up on us all of a sudden. So I think we were supposed to have some follow up, you know, either represented from the county or somebody to let us know on how that system, what they're proposing for that system. Okay. Okay. Again, I'm not sure if there just hasn't been progress on it and we, we haven't been involved, but I can look into it and see. I'm not sure where we're at with it. Okay. Okay. Okay. Okay. Okay. Okay. Okay. Okay. Okay. Okay. Okay. Okay. Okay. Okay. And, uh, believe it or not, as we speak today, at the Los Osos Community Services District, their item on there is the water resiliency intertied pipeline project. And what they're saying is that they anticipated, um, coordinating with the county to put the pipe in the new bridge that they're building out there. So it's moving along. We just like to know how that might affect the city of Moab ay, how it would affect our deliveries and how it would affect us as far as what sort of reimburse ment or credits we might get in our, our cut, we paid for that last nine miles of pipe and they're going to share it. So it seems to me we should get some credit for that. Okay. I can look and see what an update we have. I'm not aware of one right now. And one last item I have, I don't know if it's possible, but maybe it would be good to have a joint meeting with the Rex and Park Commission, talk about our interrelationship between the parks. It seems like public works has taken over most of that. It'd be nice to know what's going on. And like for instance, at city park, all the play equipment 's been removed. It'd be nice to know if maybe we can have a joint meeting with them one day. Is that possible? Okay. I can take note of it and see if we can schedule something. If there's no other items, then I motion for adjourn. I move that we adjourn. Second. All in favor say aye. Aye. We adjourn. Yes, a little in. Thank you.

Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Thank you. Fantastic. The first item tonight is board member announcements, and I'll start to my right with Marshall. Thank you. I have a few. I think some others are going to speak to some of them, so I'll keep it kind of brief. The marine swap meet is slated for June 27th at 8 a.m. We have that coming up. We have sailing lessons, so there's youth sailing camp through the Yacht Club. That runs from June 8th to August 13th for children ages 8 to 18. Those are four-day camps at a time. They last about a week. There's also adult sailing lessons, which happen about every month. There's also the Little and Junior Guards programs. Junior Guards run through the city, and then Little Guards is run separately, but it's a well-run program you can check out online for younger children, ages 5 to 9, I believe. There's also the Mermaid, Sea Creature, and Pirate Parade on May 16th coming up at 10.30 a.m. It starts out at Target Rock and comes into town. Then it's also Waterfront Market and Art in the Park season . If you are interested in either of those, you can learn more online. Thank you. Thank you. Cherise. Hi. I have a couple chamber announcements. This month on May 20th, we're doing the Breakfast on the Bay. This time I'm pretty much the large part of it. It's a subject that's near and dear to me. As an employer on the Embarcadero, I'm always looking for a large pool of applicants. We are doing a forum on May 20th that has career center staff from Cal Poly, from Cuesta, and from Morro Bay. They're also going to be talking about internships. There's flyers. If anybody's interested, I can send them the link to that to get tickets for that. Also, the Avocado Margarita Festival is in its planning stages. It's coming back. It took a hiatus because of COVID and because of other reasons. It's going to be a one-day event this year on September 12 th. So, any stakeholders, outreach to anyone who wants to make any comments to the chamber. And hopefully it will be a really awesome thing for everybody involved, participants and local businesses. So, and then my last announcement is this year I did the same thing where in with Friends of Morro Bay. They always do an annual Morro Bay Boat Safety Week. And every year they've done like one day right in front of the harbor office. And they have different activities. They'll have vehicles out there. And I know the Coast Guard is getting involved. So, you'll see a couple different kinds of flyers. The flyer that I helped with was going to Del Mar Elementary and getting the fourth and fifth grade students to draw art that has to do with boat safety. And so, we had four winners this last time. And the first place got put on the poster. And so, our fourth runner-up, I just wanted to say on TV for them so they get their notice. We have Grace. And that was hers. And so, she got some gift certificates to an Embarcadero business. And then, let's see. We got to go to number three, which is Kat. She did an awesome. And all of these have different little parts that have to do with flares and boat safety. The Harbor Patrol sent out two patrolmen. And they talked about boat safety with the fourth and fifth grade classes. And here's our second winner, which is Penny. And our first winner, which is Riley. And so, you'll see hers on all of the giant posters that are around Morro Bay. So, hopefully, we'll see you on May 16th. It starts at 10. And you can come in. There's going to be a raffle. There's going to be a bunch of fun stuff to do and activities. Thanks, Cherise. Jeremiah. Yeah, thank you very much, Andrea. Last Sunday, we had the blessing of the fleet. It went off very nicely. And there was a fair crowd there. We were very happy. It was catered by Mark Tognizini at the Vets Hall after the blessing. And all of the residual food went to the Coast Guard, as it usually does. It's a good place to park your food. Bunch of young guys. Salmon season opened here, as hopefully a lot of people know. And there's been a few fish around. The price is good. It's $11 to $12 a pound. At the moment, probably go down because Washington, Oregon, and California now are all open at the same time. And of course, one of the tough factors for the fishermen, all the fishermen, right now is the cost of fuel. And a lot of people never think about that as an expense in the fishing industry. But it's our biggest expense. And I can only tell you that everybody knows the boat that I had was only a 50-foot boat. But it held 1,500 gallons of fuel. So when you multiply that by $7, you better catch some fish . If not, you're probably going to not be in the business too long. So anyways, another thing I'd like to mention here, while I get the chance, is the Morro Bay Maritime Museum is doing a program for kids. We did it last year. It was very, very successful. And this year, we're doubling the size of the program. And if the ages are usually, oh, 5 or 6 to 12 or 13. But anybody who would like to spend a couple hours at the Maritime Museum with their children, please go on the website, Morro Bay Maritime Museum, and there's sign-ups on that. And let's see. We have just finished dressing up the Alma, in case anybody hasn't been down there in the last little bit. The Alma is going to be 100 years old next year. And as everybody knows, she participated in World War II in the rescue of a tanker full of men, including the captain rescued 36 members of the Montebello. So we're very proud of her. And she's looking pretty ship-shape right now, and she'll be 100 years old. So sorry to take up so much time. That's okay. That's okay. One of my favorite parts is the announcements. We'll move on to the next item, which is the Waterfront Master Plan pointy announcement, and that would be mine. We had a great meeting this afternoon. Two things to announce from that meeting. There is going to be the third community workshop held at the Morro Bay Community Center, and that's going to be Monday, May 18th from 6 to 8 p.m. At that meeting, you'll learn more about the project, also review and provide feedback on draft concepts, and obviously take part in shaping the future. Six to 8 p.m. As I said, also kids' activities and refreshments will be provided, which should bring all sorts of people in. So don't miss that one. And then there is also, the other thing that we discussed was an online survey, and the online survey is being formulated right now, again, for input on the Waterfront Master Plan. That will probably be released in June, run for probably about 30 months, 30 months, 30 days, one month, 30 days. And really looking for input that people want to provide for the Waterfront Master Plan that aren't able to attend the meeting or the workshop on the 18th. So those are the two items that we spoke about today. Let's see, we don't have any presentations tonight, so our next item is public comment. Members of the audience wishing to address the board on city business. Matters that are not on the agenda may do so at this time. For those desiring to speak on items on the agenda but are unable to stay, you can also speak at this time. So I'll open it up for public comment. You have three minutes. Thank you, Chair and Harper members here. My name is Bill LaFay, and I just want to announce that I'm part of the Fourth of July activities that we're going to— What are you doing, Lori? I know you don't want me to say anything, but no. I just want to announce that we are putting on a drone show on July 3rd at Tidelands Park. It will be going over the bay, and this will be the first introduction since we have had fireworks to bring back some people during that Fourth of July weekend. We're going to start it off at Tidelands Park with a Tunes at Tidelands on July 3rd, and then we'll have the drone show over the bay. It will be launched from Tidelands Park parking lot, and you'll hear more about it as we get closer to July 3rd. So I just want to let everyone know, and we're really looking forward to it because this is really one of the first on the coast, and so hopefully it goes over very well . So thank you. Thank you. Is there anybody else here in the audience that would like to make public comment? And Ray, do we have anybody in the queue? There are no raised hands in the queue. Thank you. The next item that we have this evening is the consent agenda. And I think my first question is, are there any items on the consent agenda that the board would like to pull for separate discussion? I just had a couple questions about the staff report. So maybe we should pull it. Let's pull it. Okay, let's pull it. That's just cleaner. Anybody else? We will approve item 6A, which is minutes, and 6C, which is approval of an excused absence for Chair Board Myers. But first, is there any public comment on those two items from the audience? Ray, is there any public comment for the consent items in the queue? There are no raised hands in the queue. Perfect. Do I have a motion for approval of items 6A and 6C? I'll move that we approve. All in favor? Perfect. Thank you. Cherise, I'm going to hand over 6B to you. Okay. So I think I have like three questions for Chris. Right at the beginning, it talks about Morro Bay National Estuary Program doing mitigation for eelgrass. I know that the Harbor Advisory Board had a committee. Wow. The year that I joined. And just wondering if that would be a possibility or maybe you think about if you want to include one HAB member to be on that committee that talks about eelgrass mitigation. And then I wanted to ask about the dredging. So I think it's like zero, like no money whatsoever. And we did ask for the back bay this year, correct? So is it not the front bay, not the back bay, not anything? What was the final on that? So, and thank you, Board Member Hanson. So just to go through your first part. So we have just had initial discussions so far with the consulting group regarding this eelgrass mitigation program . And in concept, what we're trying to do is come up with a plan where rather than right now the sort of status quo is to, if somebody wants to do a project where it contains eel grass, they have to go out and serve, hire survey crew to survey the amount of eelgrass, then based on the amount of eel grass found or even just the potential to have eelgrass, they have to mitigate for that. And a lot of times it's offsite or in a different area repl anting eelgrass and then also replanting eelgrass that could have been disturbed. This is very costly and time consuming. A lot of times the replantings don't hold and they have to keep trying for a number of years until they finally sign it off. And what we thought would be a more productive way of doing this would be if somebody who wants, whether it be the Harbor Department or a lease front property, they could just pay an in lieu fee, especially if we already are at the carrying capacity for eelgrass. And so that would save costs, save time, save money. And once that area is mitigated, it wouldn't need to be mitigated again. So that is it in concept. In regards to having a HAB member on that, I think that that's definitely a possibility we could look into. But right now we haven't even signed a contract for it. So we don't even know what it's going to look like. But that's definitely a good recommendation. Regarding the dredging, yeah, that's very unfortunate news that we've heard. They've pulled funding for dredging for many California har bors. This happened with Santa Barbara last year, which was kind of a shock. Luckily, our congressman, Salud Carbajal, was able to get not only Santa Barbara's funding back, but even more so. The money that has been put on hold is for next season. So this does not affect the dredge, which is coming in this Sunday, I believe, or it might even be Saturday. It won't affect that, and it won't affect our interchannel dredging. That's the one that happens every seven years or so. This would be for our annual maintenance dredging that would take place. There's still more opportunities. We've talked with the Army Corps of Engineers, project managers, and they've said that they're still going to include us on the work plan. And we've been working extensively with both our federal lobbying group and also Salud Carbajal's office to try and secure that funding. So we're not in panic mode yet. There's still a lot of opportunities to get it restored. And we also have our delegation of the city manager, Councilmember Le Fay, and Mayor Wexham going to the CMAC meeting next week to hopefully talk to some of the Army Corps members as well and make the case for more dredging. All right. Good answer. I like that. That's way better than what I was like. Oh, no. And the contract for facilities and maintenance of the harbor, you're talking about mooring engineering services, evaluation, planning. Do you see any possibility of maybe a more efficient mo oring setting that would perhaps increase the moorings for the harbor department? Just looking at revenue possibilities. Is that something that that contract might have an outcome of? Thank you once again. We were hoping that we would be able to tackle that. But we've had to keep the scope limited to just looking at evaluating our current design and coming up with new specifications and also guidelines for a mooring contractor . Gene, who currently does a lot of our moorings, he's already expressed that he would like to move on from it. And so we are actively looking at other potential contractors who could perform the work. But right now, our specifications are from 1974, and they 're pretty crude. And so this is to get better specifications. And the hope is that right now our scope is three to one, which is for the depth, you multiply it by three for the length of the mooring. And so we're hoping to shorten that. As you are probably aware, we shortened the scope on a few of them, and that seems to be going well. And so we're hoping that through this process, the engineer will sign off on that and allow us to change the scope on other moorings. That won't necessarily give us more spaces, but it will hopefully prevent boats from hitting each other, which would be great. Thank you. That concludes my questions. Thank you. Do we have anyone in the audience that would like to make public comment on the Harbor Department status report? And Ray, do we have anybody in the queue? There are no raised hands in the queue. Thank you. Lori, I see this is a receive and file. Do we still need to... Do we have a motion to approve this report? I'll make the motion to approve. I'll second. Perfect. All in favor? Aye. And Lori, do you need a roll call? You don't need a roll call. Is perfect. Okay. I see my notes here. So I want to make sure we're on the up and up here. Excellent. The next section is business items. And we'll start with item 7A, which is an update for the replacement program for the Clean Marina Ad Hoc Committee on the committee's recent activities. Mr. Munson, do you want to add anything to this or turn it right over to the committee members? Thank you, Chair Luker. I think we can just go ahead and turn it over to the committee. Thanks. Thanks. We're continuing to make progress reviewing what exists, collecting stakeholder input and other points of contact throughout the nation who have been part of the program in the past, but want to gather their input and local input as well as we're continuing to refine that. Thank you. Thank you. Thank you. Thank you. Thank you. I would just like to also add that at two weeks ago, I went to the Pacific Coast Congress up in Emeryville. And I did get the chance to speak to one of the creators of the California Clean Marina program. And they have offered to help us with our program as well. And there's quite a few other marinas out there who are very excited that we're pursuing this. So that's all I had to add. Fantastic. Board members, any questions? I will reach out to the audience. Do we have any public comment on this item? Ray, do we have anybody in the queue? There are no raised hands in the queue. Perfect. Any board discussion on this item? Then I will ask for a motion to approve. I motion to approve as stated. Second. All in favor? Perfect. All right. Our next item is 7B, update from the loading zones in the newly red-marked areas on the Embarcadero Ad Hoc Committee. It's a long title for an Ad Hoc Committee. And a committee's recent activities. Mr. Munson, do you have anything to add to this before we turn it over to the committee? I do not. Thank you. And I'll turn it back to the committee members. Okay. So, it is myself, Sharice Hansen, and Cal Myers that is on this group. He has been otherwise engaged with things, and he's not here today. And I wasn't able to connect with him prior to this meeting . But knowing what he and I have talked about in the past, I 'm not sure if we want to just wait until the next meeting to have any actual voted on things that we want to send to council. But as far as my work on this committee, I've been reading a lot of public correspondence as well as going out to different stakeholders. And absolutely zero people have been in objection to this. So, my recommendation at this time with all of the different people that I have talked to that are stakeholders and just community members, people who may want to use parking spaces or want more parking spaces, that my recommendation would be to follow the suit of other coastal towns after they have made these changes from red marked curbs to loading zones. It seems like a win-win for space, for circulation, and that there's no objections that I've heard from any community members. So, at this time, we can either decide that we want to wait for Cal to have his input since he's half of the committee, or we can decide as the Harbor Advisory Board if we want to send out, and Chris, maybe you can make that judgment call, if we want to give the stamp of approval for the Harbor Advisory Board to, say, move forward with these coastal, other city coastals, turning them into loading zones. Yes, I think that that's a good idea, and I think we can just come up with a list of those spaces, and then we'll just want to ensure with the police department that they're okay with that, that they haven't had any incidents of car versus pedestrian incidents in those locations, and then I think we can refer that to the board, or sorry, the council. So, does that mean that you want us to create the spaces that we want to turn into loading zones, and then turn that over to the police department before it comes back to us, or is there any kind of time crunch as far as getting it to council to make their decision? I don't think that there's any time crunch to get it to council, but I think we do have to come up with a comprehensive list of the locations that we're planning on converting to loading zones, and then we can have PD review that, and then I think at that, if they're fine with it, I think at that time we can submit it to council for review , unless the advisory board would like to see it again, but it sounds like... Okay, I think that Cal, with everything, I think we could meet within this month and have that sent over to Chief Watkins in the next two weeks, and then hopefully we can have that actual diagram of those spaces for the next Harbor Advisory Board meeting. Perfect. Okay. Do the board members have any questions on that presentation? Wonderful. Let's open it up to the public comment. Are there any public comments on this item? And Ray, do we have anybody in the queue? There are no raised hands in the queue. Perfect. So let's turn it back to board discussion and make sure we 're all on the same page about the next steps on this. Charisse, I'll probably turn it back over to you to just clarify what we're going to do next. Okay, we plan to look at the maps, decide which ones are worthy of being loading zones, turn it over to Chief Watkins for them to make their markings on the map, and then we'll come back to the advisory board in June. Any other discussion on this? No. No. No. No. No. No. No. So I'm thinking that we need a motion to accept that direction, but not the specifics. And I'm looking to, I think, Lori and Charisse. Okay. All right. I think we're clear. All right. We'll move ahead. Thank you. Thank you for walking me through that. Very helpful. Next is item 7C, which is consider establishing an ad hoc committee to require vessels in the Morro Bay Harbor to carry liability insurance with the city as an additional insured. Mr. Munson, I'm going to turn that over to you for a presentation. Thank you, Chair Luger. So at the January 13th city council meeting, Mayor Wick strom had requested that the Harbor Advisory Board look into additional insurance. requirements for vessels that are mooring in Morro Bay Harbor. Most other harbors include some insurance requirements. And I know at Morro Bay and Port San Luis, there are some other things that are mooring in Morro Bay Harbor. And I know that we're going to be able to do that. And I'm going to turn that over to you. And I'm going to turn that over to you. And I know that we're going to be looking at liability only as a requirement. And so that wouldn't necessarily prohibit certain vessels from being insured because you're not insuring the vessel. Some other strategies that other ports have used is rather than using an insurance, doing an in-luffy. And this in-luffy would be put into a reserve account that if a vessel did break loose, they could then use the money from that pool to pay for the damages. We definitely have some liability in the harbor. This is always a concern. Just recovering a sunk vessel can cost over $100,000. There's also the damage to the boat. We damage to other boats and other facilities. Just this last year, we had a boat back up into the Mariner dock. And there was about $70,000 worth of damage. Luckily, that boat was insured. So we were able to get it completely rebuilt. But that is definitely always a concern. And so the task of this ad hoc committee would be to look at what other ports have been doing. I know in the past, Harbor Advisory Board has looked into this a little bit. So it'd be reviewing the old discussions from the Harbor Advisory Board. And then just adding to that and hopefully coming up with the recommendation for if the Morro Bay to Harbor Department. Sorry, Morro Bay is going to work towards the requirement of having insurance for boaters. Thank you. Mr. Munson, are there any questions on this item before we put it out to public comment? I do. Yes, go ahead. Yeah, thank you very much, Chris. So you mentioned the boats that were not insurable. So what are we going to do with those? So with the boats that are uninsurable, it would be for liability only. So it would be if they're causing damage to some other facility. And my understanding is that even with liability only, it will also cover the cost of recovering the vessel if it's in like, if it's in navigable waters. So it wouldn't be to restore, to pay for the boat, it would just be to remove the boat from the harbor and demolish it. And so, yeah, it wouldn't be for boats that are insurable. It wouldn't necessarily be a factor. Okay, so there is a lot of boats. Most, in this day and age, wooden boats are no longer ins urable. Not all, most. So some of the other harbors are, they have their own insurance. So when an uninsurable boat comes in, they charge him a fee that hopefully at the end of the year will cover the cost of the insurance. So that while they are tied to the boards, they're insured. As soon as they untie the boat, there's no longer insurance . It doesn't apply to them. But the harbor in that way is covered. And it seems to be an equitable way to do it. What you had mentioned is establishing a fund is another way to do it. Because I don't think it happens too often. I think the fund would grow. Hopefully grow. And I think that those are all great points. And I think that that would be definitely one of the things that the ad hoc committee would want to look into. Are there any other questions? Is there a public comment on this item from the audience? Quiet out there. Okay. Okay. Ray, do we have anybody in the queue for this item? There are no raised hands in the queue. All right. Let's bring it back to the board for discussion and discuss whether or not we are going to appoint a couple of members for this ad hoc committee. To my right, to my left. Do we have interest? Do we have interest? Do we have interest? Do we have interest? this was to make a recommendation to the city council whether we would require insurance or some other form of payment right if this wasn't to design an insurance plan for these both correct it wouldn't be to design an insurance plan per se it would be just to identify what the insurance requirements should be do we have mr o'brien are you interested in this committee yeah if there is no interest this one isn't necessarily a fun one um if there isn't any interest um we can definitely come up the staff can definitely come up with um some ideas as a framework for our insurance requirements and bring it back to the advisory board for consideration i think that's a good call all right so it sounds like there's no motion made on this item we'll just move forward thank you staff we appreciate that um we will move forward item 7 d is review of the harbor department's fiscal year 26 27 capital and q a budget requests and i'll turn that back over to mr munson thank you once again and um this one's a bit of a fun one we've got a little bit of a presentation um i thought um the advisory board would um it would serve the advisory board well to kind of see where we're targeting for our capital and q a budget requests as its budget time which is everybody's favorite time of year um so just kicking it off um out of the q e um budget requests a lot of these requests we've already had before um we fund our lifeguard program our reserve program and um the disposal contract for um all of the garbage disposal up and down uh the embarcad ero and in the tidal ends and what we have knew is um we've um budgeted forty thousand dollars um for maintenance of the waterfront areas um this would be this came up when um we had cleaned out um the the libertine um property we were able to contract a crew and just do a one-time um clean out of that area and it was very effective we we had the the weeds weeds done uh out the front we had some painting done and um you know it wasn't cheap but it wasn't expensive and so the intent of this forty thousand dollars would be to do many of these one-off um tasks where we we hire a contractor to do things such as weed abatement painting um power washing minor repairs we could a powder coat um some of the things that are running off of sorry losing their paint um we're looking at replacing some railing that's section that's r usted and so um in hindsight you know that forty thousand might go fast but this is just an initial take on it and um some of the things that you know last year we didn't have it in the budget you can see the sign the entry sign to our harbor that fell over we replaced that this last year um and that that was a long time coming and i think it looks great right now but then um those first two images you see the these signs that are dilapidated and then the harbor walk there's just um you know there's some weed issues there's some areas where the planks are coming up uh this would be for us to be able to um do those that you know we do have uh maintenance people in public works but they've already got hands full with a lot of other tasks so this would just be able to get us to really focus on the waterfront areas um this is just kind of an overview of the q e budget um you know we're relatively a small bite out of that um we're down at the bottom i have the totals of what um the harbor has requested we're seven percent of the q e budget if you take out disposal which is you know i don't think that that's necessarily a harbor department um thing then we're only four percent of the q e budget so um we're really trying to make the most out of what we have and the lifeguard program and the reserve program have been really uh critical to our ongoing operations um onto capital projects um we've got a few good ones in there this year we're adding 20 000 to the boat launch replacement um as we were getting into um getting that repaired we realized that we needed um to develop some more advanced plans it wasn't just an easy um you know break out the concrete and put in more concrete we wanted to get it right as far as the rebar and making sure that we're not not getting into the water when we're doing it and so we've developed those engineered plans and so this is to offset that money that we put it into the engineering and um we're we're through the engineering part and so we're hoping to get um a bit out here soon once we get the funding from the uh from the new fiscal year and hopefully get that upper section of the um boat launch replaced and i'll show a picture of that here in a second um we're also like um i'll go into each one of these individually um after this but um for our main harbor patrol vessel uh the 3864 uh we're looking at a complete repower and refit of that one it will basically look like a brand new vessel while that price tag looks high those were based off of the initial estimates we've been told that for a complete replacement of the vessel it would be about a million dollars so um you know that's the cost for boats have just skyrocketed um since uh coveted and um there's just not many boat builders right now that are able to do these um boats but this would be taken down to santa barbara a lot of the work would be done by radden who originally built the boat um so that that's all good um and here i'll just uh i've got some slides here so um the boat launch replacement there's the section at the top you can't really see the second section that's going to be phase two the phase two section is going to be a lot more expensive because they're going to have to dam up um the whole lower area and they might have to do a modular system of of uh putting them in sections um so that's going to be a much bigger project and we're going to be looking at grant funds for that um here's the boat the boat that we were looking at repowering um and then um so the capital uh sorry the the t pier project um last year we had um requested 150 000 to go to develop some repair plans for it um that 150 000 isn't included in this um so we're looking at a repair plan for the complete pier and now that the whole offshore wind study has has um kind of moved on we can now really focus on this and really focus our energy on repairing it rather than hoping for a replacement and so um we'll be working towards that the other part um on that picture on the left side we've had the water system for both the pier and the wharf area is all connected and um just in the last year we've had two ruptures of that water system and it's all the same age um that's really concerning because not only are our facility is not protected when the the fire suppression system is is out but um it also causes us to be on fire watch and so we have to for 24 hours a day we have to have somebody keeping their eyes on this facility making sure it doesn't burn down so we're looking at um getting a redesign of the um the fire suppression system and and the pier so that's the amount of the 300 000. we're hoping to have a bit of funding left over to start some of the critical repairs to the fire suppression system and then um we've got this 150 000 for harbor dredging um this is hopefully we won't have to be using this but this is to keep in our back pocket for that um interchannel dredging at the end of the year um we can often in the past we've piggyback ed onto the federal contract to be able to do some extra dredging and if the we get through the we will work with um the army corps of engineers to get some of the high points that we want but there's a good chance that they're going to get through the contract and not all of the issues have been resolved and so um this picture that you see here this is taken out of low tide you can see some of those higher areas um off the sand spit um that's really what we're targeting there's quite a few of them inland as well or closer to shore i should say um and we've got a lot of high points where um boats are getting stuck or they're not able to get close enough to land but the hope is again that we won't have to use that but um we've got it there just in case um good news is we got um quite a bit of um fema funding um back from the storms in 2023 um so we're able to continue some of our storm recovery um the main areas that are um remaining are our circle there and i mean squared there in red um there's two gangways um one one to the north and one to the south um the one on sorry the western side uh or the left side of this picture um it was done at a time when it was thought that we had to maintain a certain percentage slope for ada purposes or at least that's why i'm under my understanding of it and um it's a bit overkill though what has happened is that to support that massive gangway structure it's putting a huge load on um on the piers there and it's actually we're having to replace sections of um the dock where where that pressure is occurring and so for the ada requirements have been since modified for marinas where for marinas that have less or sorry i should say gangways that serve less than 26 vessels you do not have to have an 80 foot gangway or maintain a certain percentage slope you'll only have to have a 30 foot gangway so the idea would be to get rid of this massive structure and just go to a simple design which will um help with ongoing maintenance costs and also alleviate some of that stress on the docks on the right side those docks still need to be replaced and that gangway is also a need of replacement too so we're hoping to tackle all of these with that 200 250 000. and finally this is not in the capital projects budget but we thought we should mention it just because it is one of those bigger projects the reason it's not is um this is coming out of a reserve account specifically set aside for the state park marina and um we're right now we 're doing a feasibility study to figure out where we can put this the sediment for um that marina um the last time we had dredged the marina this was a big issue because about half of it was all finer sediment which um we couldn't just um reuse at our normal uh beach nourishment location which is where the um the army corps puts it right off of the sand spit and so um we've been talking to a lot of different um regulatory agencies so far the discussions have been very positive as far as um uh utilizing different areas we're looking at um things like building up the the um salt marsh neighboring for um for sea level rise adaptation um we've been working with the national estuary program and we're also looking at other areas like um shell beach or the the bay shore bluffs beach as a beach nourishment location and um a couple different areas and so the hope is that we can find a way to do that uh cost effectively and in some way that's gonna not have minimal environmental damage um or even benefit and um i went through the eel grass mitigation program as well um there is a component um of eelgrass within the state park marina and we've already even though it's going to be a harbor-wide effort we've already received um authorization from state parks to pursue that effort um i just wanted to go through some of the limitations that we're having that aren't being resolved with this with our capital projects or our operations budget um the primary things that we're limited on are staffing and funding um we don't have any dedicated um waterfront maintenance workers um and we don't even if we uh had funding for more office space i mean for more office workers we don't have the space for them even for maintenance workers we don 't have them if they were to be within the harbor department um and for funding um i think one of my prede cessors had uh said that we had about 800 000 in deferred maintenance a year in just doing you know some rough cocktail napkin math i think our it's likely even double that um likely even double that um because of uh what was found with that rev revetment study that was done a couple years ago that just alone um to do the public areas just the public areas it's 50 million dollars to repair their events and so i i think when you're looking you know from 100 miles up at the harbor budget and from year to year we're it looks like we're in a good shape because we're we're we're our um revenue is exceeding our expenditures but what goes unseen is the these things that we aren't filling the the staffing and uh the deferred maintenance and so we're definitely in need of um finding more sources of revenue um some potential solutions for staffing that we've identified is um expanding the current office there's the potential to we had looked into adding um a second floor a number of years ago or um relocating some of the harbor staff to another location um more room um would allow for more support staff or interns i mean right now a lot of it uh there's a lot of tasks that we do on a day-to-day basis that um are menial tasks but need to get done and um we're just we're just overrun by them them right now where it prevents us from really doing some of the um the projects that i think most people would like to see um and then additional maintenance staff within the harbor department or the public works that are dedicated to the waterfront um that that's another thing that we would hope to um see happen at some point um with funding um it's been mentioned a few times that you know we don't receive any of the transient occupancy tax even for um the properties that are within the tidelands and um we have talked with the coastal the coastal um conservancy or sorry state lands commission thank you the state lands commission has confirmed that that is allowable url it is a tax so it is acceptable to go towards the general fund but in general transient occupancy tax is used the the defense of the tot is that the people who are visiting do put um do put a strain on resources and um infrastructure in the places where the tourists go and especially for the ones staying on the waterfront they are putting a strain on um harbor department um facilities and resources and so um that is one thing that um i know has been looked at and um but that is something that we are that we currently don't have um there's also um additional q e funding um as i showed before our comparable percentage of it is relatively low further occupancy and development of lee sites um we we got it looks like um what is it bayside landing will be hopefully be going to the coastal commission here soon so um they've they've at least tentatively worked out an agreement um to move forward so we're hopeful that that's going to happen and then um libertine hopefully is coming up here soon so that should hopefully um backfill some of that and then with things like the eelgrass mitigation plan um that will hopefully um stoke more development on the waterfront um as it will become easier and i'm also looking at doing an operations and maintenance um what's called operations and maintenance permit for development on the waterfront too which would be usable not only for the harbor department but also all the lease sites so that when we're doing um projects on the waterfront instead of each project having to go and get a coastal development permit this would all be covered under that and so that will hopefully help with development of the lease sites grants which we're going to be talking about here in a minute i'll pass on and then streamlining processes we've got yard y right now we're also looking at enforcement software that should help with some of that parking revenue right now we've just started our pilot program down at the launch ramp we have talked about rock parking that we're still a ways from that and that's going to be more of a city-wide effort not just harbor department so that's being worked on and then um we also have um our our cost allocation to the general fund so the harbor department does pay i think is about 450 000 this year is it's more than that so last year i think it was 450 000 or around there and um that goes towards um the the general fund for um you know the harbor's uh use of um administration and while it's defensible it it's definitely um something that prevents us from doing um other things that we could uh do within the harbor department um sorry that i think this is just a repeat and so with that um i'll end with the the picture of the equina that's coming in here this weekend um and um open it up to any questions and that um concludes my presentation uh thank you i'm going to start to my left jeremiah do you have any questions i think you've already answered it chris we will be getting the inside of the harvard reg this year yes um they 'll be coming in i believe it's in september it could be november though but um yes they'll be coming in later um this year to my right marshall sharif any questions at this time just one um so for the phase two of the boat ramp repair do we know how long that will take and what impact that might have on revenue to the department if that's closed for an extended period of time yeah so that's a very good question um the main early i think is going to be um funding i i think it could easily cost about a million dollars to replace that luckily there are some grant opportunities available for it um i know in the past we did get one from division of bo ating and waterways the issue with those types of grants is a lot of times they have so many requirements that you end up spending more than what you are getting grant funding for but there are some other there's some other um public access grants that could be targeted as well as i believe there's also a boating facility grant through it's either parks and rec or fish and wildlife now but we we can definitely look into those all right all right i have some questions um all the picks that you had for your presentation were they current like fresh new from the drone footage that you got or were some of those older or some of them are older and yeah i i had to scramble and get get a few of them but um yeah and i apologize there was one that was kind of foggy there but uh yeah a lot of them are relatively new but um some of them are older yeah i didn't see the sea lion dock out there i'm like i can't zoom into that picture okay um i wanted to talk about uh the costs that go into the maintenance of areas that are on the harbor that are heavily used by everyone um so tidelands because you were talking about using harbor funds 145 000 to do a cleanup of tidelands so i'm just i'm looking at all the the things that are down there and the revenue that you get from parking and the revenue possibly from liveaboards which is minor compared to some of the things that are over there you know um what things do we what things does the harbor pay for like do you do we pay for the grass to be maintained is it a hundred percent everything that's on that side is taken from the harbor department and put into the general fund for into for in lieu of of maintenance i'm unclear exactly what your question so so tidelands the cost what is what parts of that does the city fund pay for and what parts does the harbor fund pay for so generally so all of the capital projects which i've listed those are all paid for out of the harbor fund okay i'm really just talking about like uh i understand like the the projects that are possible to come up i'm thinking about like daily maintenance like everything that's going into tidelands is it 100 covered by the harbor or is does the city pay for some of it like the playground the equipment the mowing of the lawns the trash pickup the bathrooms the fish cleaning out station what is paid for by harbor and what is paid for by city that's a great question and i don't know the exact divide um laurie do you have any insight into that as part of the cost allocation we pay for a little bit of the maintenance portion so it will come out of their budget to mow the lawn we pay for the water the general maintenance comes through public works but we also pay into the cost allocation to pay for that if that's equal we don't know like i don't know but like say the bathroom at thailand's water heater goes out that will come from my budget i'll get a bill for it i'll pay for it maintenance will install it that will be paid for public works so it's it's a mutual um i would say okay we pay all the water electricity anything down there water to you know the grass don't pay for the equipment um playground equipment and be public works okay all right um i'm just looking at the the cost allocation of the 145 to clean up and i know that there's different activities that go on down there that's through the the city and um so i don't know if you guys ever look into it and and see that there's a discrepancy or an off balance of of what is actually utilized by you know what what can the the city cover because this is not a lease site where you're receiving revenue from and you might you know you're trying to get out um some parking fees and when i went out and asked people about the loading zones this last month um that came up constantly of like oh they 're part they're charging for parking when are they going to start charging in front of my business and so um and i try to explain that you need to pay for the maintenance of the road you need to pay for the maintenance of of of the um the docks and and the ramp so uh you guys are not getting anywhere near what it is to actually maintain these areas so um seeing if there's any other possibilities for the city to to give revenue um to for this maintenance i think is a possibility at least for the cleanup and things since it's not just a lease site that you're managing um and then uh you talked about parking i am an advocate for a simple parking small feed for going to the rock because there's so many things that we could have out there that are sitting make it safer cleaner uh and so if that um decision or things the committee has made parking at the rocks for your for the harbor to get revenue for all of the things that you need to do there's so much maintenance out there both tidelands and the rock are public benefit amenities that don't make you any money and so if there's a way that we can have the people who use it pay a small amount in order to benefit everyone here i'm i'm a huge advocate for that so as far as budget goes if that can be a priority of finding that um revenue source to create a better rock experience that's it for my questions i have a couple questions um probably the easiest one is when was the last time the cost allocation was done was renewed and i i want to say it was two or three years ago um and we 've definitely looked into it quite a bit but it's kind of difficult after the fact um to go back and find out how they were doing specific things because they they get a consultant um to come up with you know a defensible um cost allocation and the the reasoning why has been kind of lost in the sands of time and so one of one of the things that we um we've been working with finance um on is being more engaged as that process happens again and so um i i believe it's coming up maybe next year so um at that time we we will definitely be keeping an eye on it um and working with them to um see if we can make it more more defensible in our favor perfect it's a little bit of a double-edged sword because there is a also a chance that it's there's a bigger allocation that's going to be taken from the harbor fund but hopefully not um the other question i have and um i it it's probably a longer story but that's um the u.s car u.s corps of engineers may or may not be responsible for the public revetments were we still working on that puzzle yes um so it's going to be a long process so the the army corps of engineers has given their initial i don't want to say that they're taking ownership of it but they've acknowledged that it might be their responsibility and so what the next step is is that they're they need to do an army corps of engineer led study and they have to get that approved and so um they're hoping to put that in the work plan that they're also going to add in our dredging for 2027 and so if they get that in there then they can get the ball rolling and that's still going to probably be a couple years while they do that study and then a couple more years before we can get it actually funded and so um we had recently had a fema request denied which was regarding the revetments and um i in our appeal i i said that you know it's not our responsibility and that's kind of given a bit more traction on the army corps of engineer side to say you needed to tell us if it's our responsibility or not because we're not able to submit our fema fund our fema claim if it if it is not our responsibility so we're working on that but again this is probably going to work at a glacial pace uh to get anything um done just thank you though at least the ball is running it um marsh all can i build on that question actually so um you mentioned that the core of engineers might have a study as part of the 2027 dredging efforts here but then i think earlier today you also mentioned that there is no funding for the dredging efforts next year right so um thank you for the question uh so just to clarify so um what happens in i'm still learning the whole process of how because there's all of these different budget um milestones that they go through so at some point army corps of engineers will in response to the the budget that's been released they'll release what's called a work plan that says here's what we're going to do this year and it i don't know why it's done this way but um a lot of times that then gets just approved and even though the president's budget has said to exclude it and so what they're hoping to do is to include the california dredging projects that have been removed in their work plan and then also add in this revetment study in their work plan and hopefully get that um approved and and that probably wouldn't happen until uh the beginning of of next year and now jeremy oh jeremiah okay um is there anybody in the audience that would like to make public comment on this item and seeing none uh ray is there anybody in the queue there are no raised hands in the queue it was quiet um board discussion on this item do we have any further discussion um i i think the only and it's maybe a question that you can't answer tonight but i think that you know first i'm happy to see additional maintenance dollars out of q e i think that's really important and i hope that's a um something that continues on and gets a slightly larger but i also would hope that and i know you've done it already before but think about how as a harbor advisory board we can help you and advocate for you especially in terms of your budget and your maintenance efforts so i don't that's really not a question for you to answer tonight but i think it's um something that we could potentially be helpful with and because we're on the harbor advisory board so that's our you know number one um our number one thing here for us so just keep that in mind and and perhaps we can discuss at a later point one more thing um i really like the inclusion of the 40 000 for maintenance i think it speaks to city council goals as well and i think a lot of the areas that you're looking at as um as beautifying uh uh are much needed and usually overlooked by by maintenance crews so it's nice that you're bringing attention to it and that um hopefully knock on wood that it gets done all right oh go ahead i was just going to say thank you i'm getting a hang of it this is a report in file so no action is necessary and we'll move on to our final item of the business in the business section of the agenda and that is consider establishing an ad hoc committee to identify and assist with grant applications for the harbor department mr munson you're up again thank you um so yes this one this one hopefully is a bit of a fun one um so as we just discussed we definitely have um some inadequacies in funding and um there's a lot we want to do and so um a couple of the types of projects we've identified that might be eligible um for grants include um the north tv peer rehabilitation and improvement as you you probably heard that's about eight eight point five million dollars we've got that 1.5 million in a grant already but that's not going to go far enough so that's one of the areas that we're looking for funding um there's the tp the restrooms by the tp and the rock um which are both in need of improvements there's the uh boat rate ramp phase two which we had talked about um this one's kind of a a fun one um we've been rehabil itating the um three-hour docks up and down um the embarcadero and but the there's on each of them there's a little pier above them and then there's also two little finger piers as well um scattered amongst the the boat slips or just along the embarcadero and the idea would be to um to refurbish uh these piers and do do a little package of them and i i don't think it will it won't cost as much of course as um you know replacing them entirely but um i think that um there's we've definitely seen signs for like coastal conservancy out there and so i think that they'd have a vested interest in in wanting to preserve their um their ass or what they had originally granted for and um the terms of those grants have already expired so um we're we're not under any obligation to continue maintaining them for those grants but that would open the door up for more grant opportunities um commercial fishing improvements um we have we're lucky to have the joint cable fisheries liaison committee um that has funded a lot of these improvements but there's also additional um grant opportunities uh above and beyond that we've got the morro bay community quota fund and there's also some federal grants that are available and so we would be looking at trying to find what commercial fishing improvements are needed and going after grant funding for that and then um we've heard quite a bit about the need for a launch specific to kayaks right now a lot of kayak users use um the the launch ramp fingers which um can kind of cause some conflict uh when people are trying to um put in their boat or haul it out and they've got people getting on kayaks as well and so looking at um identifying locations and um opportunities for for grants for that um some of the potential ones i've already mentioned was a joint cable fisheries uh division of boating and waterways wildlife conservation uh coastal conservancy uh coastal conservancy state parks um community quota fund and federal funding and so the idea of this ad hoc committee would be to um identify some projects that we think would be a good fit and then also identify some opportunities and hopefully um help with with the application process and so with that i'll turn it back over to you um thank you mr munson do i have any questions jeremiah i want to start on this side this time no questions any questions over here um i will turn it out to the public audience and see if there's any public comment for this item your last chance um ray anybody in the queue there are no raised hands in the queue perfect i am gonna uh i'm gonna take a little chair privilege on this um and just because when i saw this on the agenda i was really excited it's probably really weird and nerdy um but we do have some great opportunities for grants and it's just one more thing that staff has to do so sometimes it gets ignored and i can understand that we also have the city also has a couple of lobbyists a state lobbyist and a federal lobbyist and they provide information as well on grant opportunities so um i think this committee is going to be super fun and i will just say that i am very interested in being on this and i will turn to the side to see if we've got any other people that want to join me i will join your you on that committee unless someone else wants it but and i think we probably need to make a motion to a point so does somebody want i'll make a motion that that the two of you are on this committee having fun i'll second that all in favor perfect all right and we still have plenty of room on the license ad hoc committee for those who feel left out uh just joking yeah as well as the uh other ad hoc committee the insurance hat and company so just in case people are lonely um all right for our item eight a little bit different on the agenda this time so we have a list of future agenda items that are listed on our agenda but we also have an item tonight a review and prioritize declared future agenda items um so at this point i will turn it over to you mr munson for your last staff report of the evening yes thank you um sorry one second so um one one second um okay so the the main we we've had um a lot of these um ongoing um agenda items and um a lot of the um we haven't really gone through and reviewed and updated them um really focused on doing them they've just kind of been left there and um in general um the the city council often um will have the advisory boards um discuss certain items and so we we want to acknowledge that and also include items that they would like to discuss on there as well not just what you know we we think of um you know on our own side and so this is just um an opportunity for us to review the existing items um that are declared and then add on any additional items that we think are pertinent do we have any questions from the board i'll start on my right this time um my only question is are there do we know if there are items on this list that are not generated by the city council do we have the ability to delete any i mean i don't wait i clearly we clearly don't want to delete something that the city council's interested in or as directed staff to look at but i don't know if there are any like that the only one that i'm aware of that we've been instructed to by city council was the insurance requirements um that we we had had and we can still keep that on there we won't have an we won't have an ad hoc committee but we can have it as a staff item okay um there is one more chance for public comment from the audience and it's on this item do we have anybody interested ray last chance anybody in the queue there are no raised hands in the queue thank you i'm going to bring it back to the board for discussion who's going to start out well um as we've done it previously we talked about which ones you know we just went down and said keep don't keep um the first one the tot derived from waterfront to be used by the harbor fund that's kind of a revenue opportunity i don't i don't ever see the city council actually asking for that um i would definitely the things that i know that i would 100 keep is the parking ad hoc the harbor vitality the budget one was something that that was a running um committee so we could meet with the harbor director and discuss budget needs which i would keep that one as well so anyway those those three i would keep i guess the re-ex amining the commercial slip fees i don't know who originated that but i need to know a little bit more about that before i said keep it or take it away and then as you said the ad hoc committee for insurance was city council approved so i would keep that so just to i make i'll just keep a tab of this so sharice i have you as keeping parking harbor vitality the budget and the insurance correct yeah perfect marshall i should also add that um the council members have discussed um wanting to um assess um slip slip fee or just fees in general so um that that that is um an option and not specific to commercial but just slip fees in general so potentially um board we could we could change the title potentially of that to just re-examine slip fees or slip fee review marshall do you have some beyond that no i don't think so unless the city council asked for us to review it okay so you're fine with the list that um we've talked about perfect thank you jeremiah yeah pretty much mentioned uh parking uh the morrow bay commercial fishermen's organization delivered our offered some funding i don't know what those considerations were but uh in going through this we would have to get people who were part of that transaction that's it so it looks like the it looks like the only action that we're suggesting at this point is to remove the goals work planning process reform ad hoc committee getting rid of that one am i reading that right and we're leaving everything else i have a question lori about the tot i know it was something that you were looking into do you think that this is something that we should keep as a future agenda item or is it just something that we should look at um later as far as um harbor vital ity improve opportunities or revenue generating ideas or should we leave it as is stated or what is your take on that i think they're two two separate items i think to t and then vitality i think it's two separate okay um there is still discussion on tot okay definitely um if it's going to come to have i don't know i mean i don't know but i mean that's up to you if you want to keep it on there i mean i don't i don't see why not okay keeping it all right then um with that i would i'll make a motion um that we keep all of the listed ones except for the goals work planning which happens once the city council sets their new goals and that will happen regularly and then um and then we edit out the commercial from the flip fee one do i have a second i'll second it great all in favor aye any opposed that's the first time i asked that one um all right that concludes our agenda anything else from the board this evening our next meeting is june 4 th and do i have a motion to adjourn a second second all in favor thank you