[1:44] Good afternoon, good evening everyone. Thank you for joining us.
[1:49] For this regular City Council meeting Tuesday, August 25th. I
[1:54] will ask the City clerk to do a roll call
[1:56] vote. Bidding Mayor call. Thank you. Council Member Edwards. Here,
[2:05] Council Member Landrum. Here, Councilmember Le Fay. Here. Mayor Pro
[2:11] Time Eccles. Here. And Mayor Wixon. Here. Council Member Edwards.
[2:17] Thank you, Mayor. I will be participating remotely under Usb
[2:22] 707 Just Cause. Provisions due to medical condition, which limits
[2:28] my ability to participate in person. Thank you. With that,
[2:37] we will begin with the Pledge of Allegiance. Mrs. Armin
[2:41] is my favorite part. Many, begin. I pledge allegiance to
[2:46] the flag of the United States of America and to
[2:50] the Republic. For which it stands one nation under God.
[2:55] In the best visible and justice for all. Just like
[3:04] the paper to it. You are. City Attorney, Mr. Stack,
[3:11] Close Session Report, please. Good evening, Mayor Council members and
[3:15] members of the Public. The City Council did meet this
[3:17] afternoon in closed session to discuss three items. The first
[3:21] of which was a real property negotiation matter regarding the
[3:25] Morro Dunes RV Park at the Address Commonly known as
[3:28] 1, 700 Barcadero. The second item was a potential litigation
[3:33] item. And the third was a Public Employee performance evaluation
[3:36] for the City Manager and no reportable action was taken
[3:39] under the Brown Act on any item. Thank you, Mr.
[3:43] Stack. With that, we will move on to reports and
[3:46] announcements from City Council Member Edwards. All I want to
[3:56] include this evening is that I wish I could be
[3:59] there with all of you tonight, unfortunately. I thought I
[4:03] was going to be able to, but I'm just not
[4:04] there yet. So be there soon. Thank you. Mayor Pro
[4:10] Tim. Thank you, Madam Mayor. Thank you all for being
[4:17] here. It's good to see so many people out in
[4:18] the audience. Last Saturday, let me get the date for
[4:24] you. Yeah, actually it was a week ago Saturday on
[4:28] the 15th. I hosted office hours in the form of
[4:31] a town hall at City Park. That's the park between
[4:34] the fire station and the police station. It was great.
[4:38] I got more people there than I expected. So we
[4:40] had about 20 people show up. Wonderful discussion. It was
[4:43] open topic, round table. And then what was really fun
[4:48] and neat is at the end of it, I brought
[4:50] some plastic gloves and some bags. And we went around
[4:54] the park. And when we left, there wasn't a piece
[4:56] of trash nor cigarette, but in the park. So it
[4:59] looked beautiful when we left. So it works so well.
[5:02] This coming Saturday, I'm going to have office hours at
[5:04] the park from 10 to 12. If you're on my
[5:08] mailing list, I'll send that out. The next day or
[5:09] two as well as a reminder. And if you are
[5:13] so inclined, we'll pick up trash and cigarette, but then
[5:16] as many now, but I've been to many of the
[5:20] meetings that I'm sure my colleagues are going to discuss
[5:23] here. Thank you. Council Member Landon. Oh, I get to
[5:31] announce all the meetings. Test my memory. Well, I'm so
[5:35] glad to be in Morel Bay. I had reason to
[5:38] go to San Lewis today. And, you know, Cal Poly
[5:42] started this week. And San Luis Coastal. And San Lewis
[5:47] found it a good time to start striping their streets,
[5:51] especially right around the Cal Poly entrance. And so the
[5:53] traffic was awful. So I'm just glad we live here.
[5:59] I attended the CFAC meeting, the Planning Commission meeting. The
[6:06] Public Works Advisory Board meeting. And also the home builders
[6:12] Public Officials Night. I attended the National Estuary Program meeting
[6:20] board meeting that I learned at that meeting that some
[6:23] interesting things diesel prices have made Albacor fishing for our
[6:28] local fishermen almost impossible. Um, let's see.
[6:40] The levels of. What is it called? The kelp in
[6:44] the Bay are a little bit lower, but they're still
[6:48] really high. Um, there's lots of concern about the El
[6:54] Nino. Supposa del Nino that's going to be here this
[6:56] winter and whether the creeks are ready for that. Um,
[7:00] the eel grass. Sorry. It's not the kelp. Um, they're
[7:04] not seeing, um, they're seeing not a large scale die
[7:07] off of eel grass, but some has disappeared at higher
[7:09] levels and they think this has to do with, um,
[7:12] the heat. And I think that's it. Good evening,
[7:22] everyone. I also attended the Planning Commission meeting, the CFAC
[7:26] and the Public Works last week. But I also attended
[7:31] a discussion at the pickleball court to Del Mar Park.
[7:35] We met with the seniors down there. And there is
[7:38] them discussion of adding pickleball courts. And I believe it
[7:42] will be agenda dyes on the October 13th City Council
[7:48] meeting to look at, uh, some options to add some
[7:52] pickleball courts for the pickleball players. Um, I also wanted
[7:57] to announce that I was, I'm under the impression. And
[8:02] I was told that we are replacing the playground equipment
[8:05] at LISIKES or park. And it will be done by
[8:07] the end of the year. So those are two announcements
[8:11] to improve our City parks. And I wanted to announce
[8:15] them to the public here. Welcome. Thank you. Um, as
[8:20] was shared, we've attended a lot of the meetings jointly
[8:23] sitting separately just so everybody knows our City Attorney keeps
[8:26] a good eye on us. Um, public works in which
[8:29] I'm the liaison for during Public Works. They had a
[8:33] lengthy discussion about the, um, quarterly report. The Wharf Quarterly
[8:41] Report, which is on tonight's agenda. So for those of
[8:43] you who haven't had an opportunity to see that you
[8:47] can follow that on the Public Works Advisory Meeting from
[8:50] last week, it was just an update on all the
[8:53] activities over the last three months. And, um, comments and
[8:57] recommendations from them. Along with some of my fellow council
[9:03] members attended the Public Officials night, uh, hosted by the
[9:07] home builders association, uh, council member landrough myself had a
[9:11] subcommittee meeting with our new Public Works director and staff
[9:15] on the Water Reclamation Facility. And, uh, I met with
[9:21] Supervisor elect D'Antona. We had an opportunity to just network
[9:26] and talk about, uh, interactions for the City and County
[9:29] in regards to emergency preparedness. And how best to support
[9:33] each other. And the county's rolling that. And also had
[9:36] an opportunity to talk to him, uh, briefly about some
[9:40] of the library programs that have recently been cut in
[9:43] Moral Bay.
[9:53] Meeting for mayors and city managers. This is all seven
[9:56] cities that participate in that. And, um, just to give
[10:00] an update and get a report card from them. So
[10:03] far, we're looking good. We haven't heard anything from them.
[10:05] That's always good news. And I attended the mayor's meeting.
[10:09] We meet once a month of seven cities. And during
[10:12] that, the liaison, not the liaison, the staff, um, from
[10:17] the Sanlos County homeless services gave us an update from
[10:23] the point in time. And just to share the countywide
[10:26] report that was done January 26, 2026, they identified 1,
[10:32] 118 individuals experiencing homelessness in Santas Vespo County. Of that
[10:38] number, three percent are on the coast. That's Morbay, La
[10:44] Sosa's, Cayucas, and Cambria. So we are very fortunate out
[10:47] here that, uh, we've had this port we do. And
[10:52] that, um, that our unhouse population is very minimal compared
[10:55] to the rest of the county. With that, I will
[10:59] move on to the City Managers Report. Thank you, Mayor
[11:05] Council. Uh, for the managed report tonight, I attended many
[11:08] of the meetings which you've already discussed in - house
[11:11] as well as, uh, one important meeting that we discussed,
[11:14] that we attended was the, uh, department, the commission of
[11:18] fishing wildlife discussion about, um, marine protection areas off the
[11:23] coast of not only Morbay, but several other areas around
[11:26] the state, three of which directly impact our fishermen. It
[11:29] was an all day meeting. Uh, which Harbor staff and
[11:32] I were on. And we're able to give our comments
[11:34] about how that might affect our, uh, not only our
[11:37] community, but also our commercial fishermen and residential fishermen. And
[11:41] we are opposed to that. The commission took no action
[11:44] on the August meeting. They're planning to come back in
[11:46] October and take action on the items they heard. But
[11:48] it was a well, uh, it was a good turnout
[11:51] of people and the speakers offered good comments. Uh, most
[11:55] of which were, uh, against, uh, MPA that was planned
[12:00] for his petitioned for officer off of Moro Bay basically
[12:04] from the rock up towards Cayucas. And so, uh, wait
[12:08] to see on that. Also attended with our staff, uh,
[12:12] our monthly meeting with the coastal commission staff had a
[12:14] lot of conversations with them about ways in which we
[12:17] might ensure that we're doing, um, good by them, uh,
[12:21] do, uh, the proper protocols in each of our issues.
[12:26] One item we discussed was the potential of volleyball, uh,
[12:29] on the beach. Council Luffe is interested in that. And
[12:33] so we did discuss with them the ins and outs
[12:35] about how that might work. Uh, and so, uh, I
[12:38] think that, uh, that's a go. And we actually have
[12:41] a conversation with him about that. And good, good feedback
[12:44] on how we might go about doing that and allow
[12:45] for volleyball courts down on our area. Uh, as well
[12:49] as many other items that really affect the city. So,
[12:53] um, this month seemed to be reaching out to, uh,
[12:57] state commissions and committees and a lot of work with
[12:59] not only our elected officials, but also state government advocating
[13:03] on behalf of the city and the citizens here. So
[13:07] with that, I'll answer any questions that you may have
[13:08] on any of the issues. Thank you. Um, I just
[13:12] want you to know that I'm in favor of volleyball
[13:14] courts on the beach too. I saw you look at
[13:16] that. I'm sorry for saying, no name counselor fake. Thank
[13:22] you. With that, we will move into no subcommittee reports.
[13:27] So, um, I have one proclamation this evening. We will
[13:33] be recognizing Hunger Action Month. Whereas each September, the nationwide
[13:41] hunger action month campaign Unites millions of people across the
[13:44] country to raise awareness and provide nutritious food to neighbors
[13:49] facing hunger. And whereas the region's high cost of living
[13:52] frequently forces many of our neighbors and San Luis Biscouny
[13:56] to make impossible choices between pain for essential needs such
[14:00] as rent and buying groceries. And whereas the San Lozo
[14:05] Food Bank provides food for 50, 000 neighbors every month,
[14:10] a 58 percent increased over the past five years. And
[14:14] whereas the San Luis Bispo Food Banks Hunger Relief Network
[14:18] reaches more than one in six county residents, including over
[14:22] 3, 700 neighbors each month along the North Coast. And
[14:27] whereas this work is made possible by a collaborative network
[14:30] of 70 nonprofit partners who distribute food directly within their
[14:34] own neighborhoods, including a sterile bay kindness coalition. Coastland's vineyard
[14:40] church, Mor Bay Lyons Foundation and ROC Harbor Fellowship and
[14:43] Morro Bay. Whereas the slow food bank's mission is to
[14:47] make, where the slow food bank's mission is made possible
[14:51] by the profound generosity of our community with more than
[14:55] 70 percent of the organizations funding coming directly from local
[14:58] individuals, businesses and nonprofits. Whereas the expansive reach and daily
[15:04] operations of the slow food bank are sustained by the
[15:08] dedication of over 1, 300 active volunteers who generously give
[15:13] their time to nourish their community. And whereas hunger action
[15:19] month serves as a countywide call to action inviting all
[15:22] residents to learn, raise awareness and contribute their time and
[15:26] resources to help feed as subtle low county together. Now
[15:31] therefore be it resolved that the Mor Bay City Council
[15:34] does hereby proclaim September, 2026 as hunger action month in
[15:40] Moro Bay. And I would like to invite their director
[15:46] up. Thank you. Thank you, Sean. Thank you so much
[15:53] for having me. My name is Savannah Kolevins. I'm the
[15:56] director of community engagement at the Slow Food Bank. Um,
[16:00] Mayor Wixom and council members, thank you for shining a
[16:02] light on this vital issue, food insecurity is something that
[16:06] happens behind closed doors. Um, there's no way to know
[16:10] if your colleague, your child's friend, or even the person
[16:14] bagging your groceries is experiencing food insecurity. During hunger action
[16:19] month, we open those doors to make sure that thousands
[16:22] of our neighbors know that they are not alone. And
[16:27] that the entire county is working to alleviate hunger and
[16:30] build a healthy community. As you shared in this proclamation,
[16:35] our community is experiencing food insecurity at a level we
[16:39] have not seen in our 36 year history. Um, for
[16:44] some context prior to this year, the most people that
[16:46] we had ever served in a single month was 47,
[16:51] 000 during the COVID - 19 pandemic. We are now
[16:54] regularly serving 50, 000 or more each month. We are
[17:00] honored to provide compassionate nutritious, hunger relief to the tens
[17:04] of thousands of slow county neighbors. Through our direct Hunger
[17:08] relief efforts and a network of more than 70 independent
[17:11] nonprofits whose kitchens and pantries we stock. While hunger is
[17:16] a challenge that is very much part of our local
[17:18] community in Moro Bay and across So County, the solution
[17:22] is local. In the compassionate hearts of our agency partners,
[17:28] the hard work of hundreds of volunteers, the support of
[17:31] thousands of donors, large and small. We are so grateful
[17:35] to be this community's food bank. Thank you again for
[17:39] your kindness for helping us share our story and supporting
[17:42] our mission on hunger action month and throughout the year.
[17:48] If you are ever interested in learning more, invite you
[17:51] or anyone in the community to come and take a
[17:53] tour at our warehouse volunteer and see firsthand, uh, the
[17:58] difference in nutritious meal can make. Thank you so much.
[18:13] Thank you. We appreciate your advocacy and hard work. What
[18:19] that will move into Public comment is for items not
[18:23] on the agenda. I have some speaker slips to start
[18:26] out with. Sugar cliff followed by Linda Winters followed by
[18:31] Linda Merrill. Thank you.
[18:42] Hi, my name is Sugar Cliff and I'm the owner
[18:44] of grandma's Mercantile on Maine on Main Street. I wanted
[18:48] to talk about our farmer's market. Recently there has been
[18:51] a rumor going around that our farmers market is going
[18:54] to be moved to the city park. And so I
[18:58] was inundated with not only vendors, but other business people.
[19:03] And they told me go find out if it's true.
[19:06] Do we need to get a coalition together? Do we
[19:08] need to argue? Do we need to do what? So
[19:10] I'm here to tell you that the farmers market where
[19:13] it's at is wonderful. It has kept my business and
[19:16] other business going. That's one of the biggest things that
[19:18] we count on to keep our downtown businesses. So, um,
[19:23] basically I just instead of walking around and asking other
[19:26] people and rumors, I thought I'd come to the horse's
[19:28] mouth and find out if this is something that is
[19:31] truly being considered or if this is just something that
[19:34] we can rest on. So that's really all I had
[19:37] to say. I just wanted to let you guys know
[19:39] how much the farmer's market means to not just that
[19:43] one, the two blocks that covers, even just the whole
[19:47] downtown area. You know, that's where we get a majority
[19:51] of our business. And right now the way things are,
[19:55] I know my business open last year. So, um, thank
[19:59] you for being letting me know if that's real or
[20:02] not so I can tell all my friends on the
[20:03] street whether or not we need to get petitions together.
[20:07] Because I don't want to tune into that if I
[20:08] don't have to. All right. Thank you very much.
[24:18] There was an old studio building out in front of
[24:22] the community center. If anybody remembers this studio room, was
[24:30] studio building. It was like falling down. And so we
[24:34] just met there for our art group. I mean, it
[24:37] was covered with paint and all of that. So we
[24:42] met there and it had been used like for 10
[24:46] years before that. And so I'm hoping what happened was
[24:53] when the new building was built, the seniors were promised
[24:58] the senior area because they eliminated. They used to have
[25:02] a trailer that they met in. So they eliminated that
[25:07] trailer. So they were promised the senior center area. We
[25:12] were promised a studio room in the new building. So
[25:18] it's been a long time and everybody that I know
[25:22] that would have known this story isn't around anymore. So
[25:28] if there's anybody else in the audience that knows this
[25:33] and can support me, please let me know. And thank
[25:38] you all for everything you do.
[25:54] Good evening. I would like to ask if the City
[25:57] of Morro Bay would consider lowering the flag in honor
[26:00] of Dolly Barton. Thank you.
[26:17] Hello, Mayor Wixim and Council. I'm Sidney Ramos of 40
[26:20] plus year Moro Bay residents. Since the last council meeting,
[26:25] I've continued to look into Motorola's automated license plate readers.
[26:30] The company itself and they're associated database learn, which is
[26:34] an acronym for law enforcement archival reporting network. I found
[26:39] dramatic stories of misread license plates leading to innocent people
[26:44] being held at gunpoint arrested and handcuffed before they were
[26:47] able to straighten anything out. While I'd like to believe
[26:51] that these positive outcomes, oh wait. Okay, I also looked
[26:56] for positive outcomes to balance any bias that I may
[26:59] have. And while I'd like to believe the positive outcomes
[27:02] outweigh the instances of abuse or error, I just don't
[27:05] believe that they do. My concern is much less about
[27:08] this tool being in law enforcement hands, but it is
[27:11] also in the hands of Motorola. Specifically Motorola gives direct
[27:17] databates access to the federal government and other third parties.
[27:21] And what this means is that they are enabled to
[27:24] directly search databases without needing local intermediaries or warrants. And
[27:30] some studies are already facing backlash and repercussions from illegal
[27:34] data sharing. In addition, Motorola acknowledges flaws, which allow unauthorized
[27:40] parties to view feeds in real time, along with vulnerabilities
[27:45] to hacker tampering. There's currently a class action suit against
[27:51] Motorola for violating state privacy laws. The gist of the
[27:57] suit is that the methods used for collecting and storing
[28:00] data need laws to be put in a safeguard. New
[28:05] Hampshire is starting to enact laws requiring purging within specific
[28:10] timeframes. And this is probably more of a state issue.
[28:13] Finally, Motorola is participating in unmonitored mass tracking. The recordings
[28:20] of our movements and patterns and location and histories can
[28:23] be used to predict our future whereabouts. And while I
[28:27] thought of that, this, it reminded me of being on
[28:30] Instagram and the algorithm finding just that cute thing for
[28:33] me to order. But in this case, you and I
[28:36] are the product. So I'm urging the City of Morro
[28:40] Bay to take a stand against a nationwide video surveillance
[28:45] system, which is contrary to the guarantees of our Constitution.
[28:49] So I would ask the council to please put it
[28:52] on an agenda so our concern citizens. Can talk about
[28:56] it. Thank you. I have no more speaker slips, Public
[29:00] Common is open for items not on the agenda.
[29:10] Good evening, Council. On Lee. I just wanted to mention
[29:15] and experience I had a week ago Sunday. I was
[29:19] at the ROC bathroom. And it was locked, you know.
[29:24] So they had three port - a - potties or
[29:26] more. And then there was a sign that said you
[29:29] could use those or you could walk a half a
[29:31] mile down the road to the new ones. And my
[29:33] mind did a quick assessment thinking, because it's after sunset,
[29:37] maybe those are locked. I don't know. I didn't know,
[29:39] I didn't care. Well, anyway, so fortunately I had some
[29:45] tissue paper with me because they were empty. And when
[29:50] I got out, there were some maintenance workers there. And
[29:55] I asked them if they wouldn't mind putting some toilet
[29:58] paper in the bathrooms. And I just wanted to say
[30:01] thank you to them just because, you know, they were
[30:04] there. They actually had, I guess it was their job.
[30:08] I don't know, to carry toilet paper around. But there
[30:12] were people gathering. So, you know, but are those bathrooms
[30:17] down the road? That's one of the other questions. It's
[30:19] like, is there a time when it closed them? You
[30:23] know? But I just want to say, he didn't know
[30:25] if I was a tourist. Or if I was a
[30:28] citizen and that I would thank them. So whatever, whoever
[30:32] that person was, um, on a Sunday night, he was
[30:36] needed because there were others gathering. Thank you. Anyone else
[30:46] for Public comment for items not on the agenda. Betty
[30:56] Winholtz, I'd like to read something to you as chairman
[31:00] of the Recreation and Parks Commission. It's email that came
[31:04] from Cambria in light of one of our programs. It
[31:08] was actually a very long letter that came to Mr.
[31:11] Carmichael. But I did grab the last paragraph because I
[31:14] thought it was, um, a pertinent that we, um, like
[31:19] just did, uh, honor our workers. So it says you
[31:23] have been tremendous partners for the Cambria Youth Athletic Association
[31:27] and the Cambria Community at Lage. As such, a small
[31:31] community, we rely on partnerships with our friends and neighbors.
[31:36] So our kids can participate in youth sports. And this
[31:39] one has been tremendous. Our kids never had the opportunity
[31:44] to play flag football locally until we started playing with
[31:48] the league three years ago. All the kids ages K
[31:52] through six have had such a great experience. And we
[31:56] hope to add seventh and eighth grade next year. It
[31:59] has been such a privilege to watch these kids grow
[32:02] and learn to play the game together over these past
[32:06] three years. Cheers to the Moro Bay Reck League team
[32:10] that helped make it possible. We took, we look forward
[32:14] to playing with you again next year and in the
[32:16] years ahead from Lex. And this was to our, um,
[32:21] Ken who works in the parks and rec department and
[32:25] coordinates all that. So I thought it was just really,
[32:28] uh, glowing report and that rather than just keep that
[32:32] among the Parks and Rec and the, and the staff,
[32:36] I thought the whole community should know that we're doing
[32:38] such a fine job. Anyone else for Public comment
[32:48] for items not on the agenda. I. Didn't. Stay. That's
[32:56] fine. Please come forward then. If you can't stay.
[33:14] My name is Marley Nowens and I'm an old timer
[33:17] in Morel Bay. I can remember sitting here and speaking
[33:21] here when Lila Kaiser was sitting up there on that
[33:24] bench. And she lila Kaiser was a person I'm talking
[33:28] about in that day because she has to do with
[33:31] moral elementary. A whole bunch to do with Moral Elementary.
[33:37] Lila Kaiser was of all things she loved parks recreation
[33:42] and kids. And she wanted them a place to play
[33:46] and a place to be. There is only one place
[33:49] in Morel Bay for kids to play on a flat
[33:53] ground and play soccer. Most of the parks are sloped.
[33:58] More obey is sloped. But kids can play soccer at
[34:03] Morrow Elementary. And it's very important. And I remember when
[34:07] Lila was, was working with Lila to put in the
[34:10] playground at Harbor Street Park. And she would be very
[34:14] much impressed if you put in a playground at Moro
[34:18] Mountain. And there's room. And it's a place where kids
[34:22] can hit a baseball. Or a softball. And let it
[34:27] roll and say, wow, did you see how far that
[34:31] role? And I remember days like that, I can remember
[34:34] them because we, my husband and I coached little league.
[34:38] And there were four teams in the minor league in
[34:42] that day. And there were at least four teams in
[34:44] the major league. And some of those kids went on
[34:48] to college scholarships. And so on. Because they could play
[34:53] at Morrow Elementary. And you know that for a fact.
[34:57] So in Lila's memory, we need to make sure that
[35:01] the kids have a safe place to play with a
[35:06] ball roll into the street. And where they can kick
[35:10] a soccer ball and it won't just keep rolling because
[35:14] to the bay, because it's downhill, it's flat. It's set
[35:19] up for that. Thank you. Thank you, Marlene. Anyone else
[35:24] for Public Combat for Items not on the agenda. Hi,
[35:30] I'm Margaret Carmen. And thank you Mayor Wixom for mentioning
[35:33] the library. And so I'm going to continue the theme
[35:36] of talking about children because I want whoever's listening and
[35:41] whoever's in here to realize what just happened that the,
[35:45] uh, library director decided to, uh, cut our children's librarian.
[35:51] And we only get her for one day one, what
[35:56] do you call it? The reading where they do the
[35:58] help me out. Storytelling, storytelling, yes. And she's being sent
[36:03] to San Luis Obispo. It's not where she wants to
[36:06] be. And we, I mean, I could just cry because
[36:09] I worked in the library in elementary school. It was
[36:12] my school, my campus job in college. And any kids
[36:16] who want to be in the library and not on
[36:19] their phone doing nothing. We need to support that. And
[36:23] I don't know who we write letters to or what
[36:26] we do. And I just really appreciate that you mentioned
[36:28] it at that meeting where you were. But we need
[36:30] to get that director on our side to say, we
[36:36] need the full - time children's librarian. And we're down
[36:39] to only four days a week of the library because
[36:44] it's closed on Friday mornings. And it's closed on Saturday
[36:47] afternoons now when a lot of families would come in
[36:51] after they've done their chords in the morning. And they
[36:53] come to the library. So we need help keeping our
[36:57] library open for adults and children. Thank you very much.
[37:07] Anyone else for Public Comit for Items Nut on the
[37:09] Agenda. Rare, are there any raised hands in the queue.
[37:13] Yes, there is one raised hand. Layla Fabians, go ahead.
[37:19] Yes, I wanted to say that I support the City
[37:22] purchasing the property of Moral Elementary. I think it's very
[37:26] important for the community as a historic site for City
[37:29] offices and especially for the school. And the sports field,
[37:33] as was mentioned before. Thank you. Thank you. Any more
[37:36] raised hands, Ray. There are no more raised hands in
[37:40] the queue. Thank you. With that, I have a close
[37:41] Public comment and bring it back. Um, I would just
[37:46] share with the community as a whole Board of Supervisors
[37:49] reach out to them in regards to the library programs
[37:52] or anything regarding the library. Supervisor Gibson is District 2
[37:56] supervisor. And I would encourage you to, um, write or
[38:00] call. You can watch their meeting, I believe two weeks
[38:03] ago. They addressed library funding. And, uh, I would just
[38:07] encourage you to use that avenue. Bathroom sun up to
[38:14] sun up to sundown. Is that the bathroom howers? Sounds
[38:17] good. Thank you. I believe it's, uh, you know. Our
[38:25] three week into his job's Public Work Director, Dave Laccaro,
[38:28] may have an update on it. Uh, yes, Mayor, members
[38:33] of the Council, David Lacaro Public Works Director. So yeah,
[38:36] I leaned over a little bit to our utilities Division
[38:39] Manager got a little bit of a, uh, background on
[38:42] this. So the locked restroom was due to, uh, a
[38:46] couple of weekends ago. We had, so we're backup. So
[38:50] we needed to make sure that that was locked for
[38:51] the safety of the Public, uh, especially with exposure and
[38:54] so forth. We're also in the meantime banking those fixes
[38:58] and doing the cleanup necessary to get that restroom back
[39:01] in order. I believe it's open now. Uh, so there
[39:04] is accessibility. Um, and then for future, uh, I will
[39:08] be working with D'Ames to make sure that we can,
[39:11] uh, make sure that this doesn't happen again. It's a
[39:16] very difficult bathroom. Thank you. Mayor, I just add that,
[39:22] uh, the President Trump, I believe this afternoon ordered flags
[39:24] at half staff for one week, American flags at half
[39:27] stat for one week on behalf of the dolly pardon's
[39:29] death. So to answer that. Yes. For those who didn't
[39:33] know. Thank you. With that, we will move on to
[39:37] the consent agenda. Um, Public Common is open. On items
[39:42] on the consent agenda. Betty
[39:51] Windholtz, just want to briefly ask a couple of questions.
[39:56] One's on 6E clarifying our hydro geological investigations. Are those
[40:01] ongoing or is it a different kind of investigation that's
[40:04] happening now? It was in the report that went to
[40:07] PWAP last week and is in your report this week.
[40:10] Um, also, um, in particular, uh, on items 6B and
[40:16] 6F, it affects board communication, advisory boards, commissions to the
[40:22] council. And at what point will you all be clarifying
[40:26] that so we know that what we talk about comes
[40:28] to you in an official way? And then finally, um,
[40:34] I was hoping that on 6D, um, where it talks
[40:38] about your goals, um, that you would ask that the
[40:43] Reserve discussion come back sooner than later. Um, that we
[40:47] can make that part of the discussion regarding financing or
[40:52] not financing of the elementary school. Anyone else for comment
[40:58] on items on the consent agenda. Where are there any
[41:03] raised hands in the queue? There are no raised hands
[41:05] in the queue. Thank you. With that, I will close
[41:06] public comment on the consent agenda and bring it back
[41:09] to council. Are there to my left. Anything to pull?
[41:15] Council Member Edwards. I'm good Mayor. Thank you. Thank you.
[41:21] Council Member Landrum. Um, I think we have to pull
[41:29] six C. And. I guess six, maybe there could be
[41:36] more clarity for six B and six. Is it six
[41:39] at F. Sorry. I need to know what you're asking.
[41:45] Six B and six F. Six C and six F.
[41:48] Six B C and F. Six B C and F.
[41:55] Yes. Okay. Council Member Lafay anything? I'm done. Thank you.
[41:59] I'll ask for a motion to approve the other items
[42:02] on the consent. And a second. You have a motion
[42:07] and a second. Roll call vote, please. Council Member Eccles.
[42:11] Yes. Council Member Le Fay. Yes. Council Member Edwards. Yes.
[42:16] Council Member Landry. Yes. And Mayor Wixon. Yes. Motion carries
[42:20] five. Oh. Thank you. Council Member Landrum 6B. 6B. I
[42:26] just wonder if we could get a little, a little
[42:28] more. Just an update, or not an update. Just a
[42:34] quick. My question about that was that is, they're doing,
[42:41] the cities doing an archaeological review in that area. Who
[42:44] am I talking to. Public Works Director? Yeah, where is
[42:49] he? He's over there. Oh, I can't see him, but
[42:52] it's awkward. Um, so I'm not, I'm unclear since there
[42:57] was an archaeological investigation that was negative. Does that mean
[43:02] that no further archaeological, um, work needs to be done.
[43:07] In that like development phase or any future. Thank you.
[43:12] I believe we're going to have our utilities manager.
[43:21] Evening's Division Manager. Um, I believe you're talking about further
[43:26] wells that we did archaeological studies for that. And they
[43:29] came back. Yes, that there was no, um, no findings
[43:31] or anything there for those locations. Okay. So that's all
[43:34] clear in that whole area. And then, um, since we're
[43:37] nearing the end of a new quarter, will there be
[43:40] much change or an increase in costs or anything? For
[43:46] the whole program or for. Yeah. That we're still working
[43:50] on other parts of the program that, um, part of
[43:53] it is a ASR permit that we discussed before that
[43:57] we'll have to, um, do some more work on that
[43:59] one as well. But I think you're asking if there's
[44:03] going to be changes with it? Yeah. I mean, because
[44:05] we're already approaching the end of a new quarter, right?
[44:08] Yeah. Yeah. Is it going to be much different than
[44:13] this one? I'm just wondering if it's looking to be
[44:16] much different than this one. There may be some changes
[44:19] due to the ASR permit because the regional board asked
[44:22] for more requirements on this ASR permit than they did
[44:25] the previous ASR permit. So we're still working through it
[44:28] all though. Okay. Thank you. Demaris quick question. Um, on
[44:35] the mitigation effort that we're working with with the, um,
[44:40] Chorro Valley, uh, it's stated in here that, uh, we're
[44:44] requested to give between 200, 000 and 250, 000. Would
[44:48] that be the total amount that we will be obligated
[44:51] for the mitigation for the, um, farmland in that area?
[44:58] That is the amount that the coastal commission has put
[45:01] on the value of the land, um, but we're still
[45:04] working through a lot of details on where we're going
[45:06] to land with that whole project. So. Oh, that could
[45:09] be more money that's involved in that. Or other negotiations
[45:13] with it. Maybe property and other things. Thank you. Um,
[45:22] why don't we move on and do the other two?
[45:23] I'm going to do one motion then. Okay. Then, um,
[45:26] on six C. That one, it seems like it's not
[45:32] complete. Like there is no, there has to be a
[45:36] voting delegate. And I don't think one has been, it
[45:38] doesn't appear to me in this item that that has
[45:41] been determined. And I think we should determine that. City
[45:46] manager. Thank you, council. This is regard to the, uh,
[45:50] business meaning of the California League of Cities, which is
[45:52] coming up where I believe Councillor Landron, the mayor Artinian,
[45:55] as well as myself. And so, uh, the request from
[45:58] the League of Cities, we are voting body of, uh,
[46:02] Voting member of that body. And so, uh, they, they
[46:05] need an official motion by the, uh, council to select
[46:10] the voting delegate and up to two alternates for that
[46:13] conference. And so that's the council's purview tonight to a
[46:17] point one of the three of us as the Voting
[46:19] Delegate and two, as alternates. Do they need a name
[46:24] for who the person is or just that two of
[46:27] us are alternates and one's a voting member. My understanding
[46:30] is they need the name of the Voting Delegate. So,
[46:33] so that's why I thought we should pull it. There's
[46:35] only one vote. Yes. Council Member Lafayette. Yes. I'd like
[46:38] to make a motion to appoint Mayor Wixtrum as our
[46:42] voting delegate for the California League of Cities meeting in
[46:46] Anaheim and the two alternatives would be council member Landrum
[46:51] and City Manager. John Craig. I'll second that. That's fine.
[47:00] I have a motion and a second. Any discussion. Thank
[47:04] you. I'll go back to the other one. Sorry, Dana.
[47:08] Roll call vote, please. I was trying to do all
[47:09] three of ones. Council Member Le Fay. Yes. Council Member
[47:13] Landry. Yes. Council Member Edwards. Yes. Council Member Eccles. Yes.
[47:18] And Mayor Wixom. Yes. Motion carries five. Six F. Yeah.
[47:25] Um, six F. I guess I would ask. Is this
[47:29] Mr. Heimel? I'm asking. Um, I guess I would ask
[47:35] the same kind of question as far as, um, will
[47:39] there be, does this look like the future more changes
[47:43] to this? More additions. Oh, okay. Trevors. Mr. Evers. There
[47:52] you go. Evening Matty versus Utilities Project Manager. The question
[48:00] that was asked earlier, are there additional archaeological investigations required
[48:04] for the extraction well? No, that was completed with the,
[48:08] um, already, um, sonic coring. The amendment is for additional
[48:13] hydrogeological, um, services. So that includes finalizing the design of
[48:19] the well, not further investigations. And to answer the question
[48:23] about whether future costs are expected to change, we foresee
[48:30] currently. Okay. Thank you.
[48:41] Any other questions, Council Member Edwards? No, I'm good. Thank
[48:46] you, Mayor. Thank you. So Councillor. Okay. I move that
[48:49] we approve item 6B and 6F. I'll second that. Thank
[48:53] you. I have a motion and a second. Roll call
[48:55] vote, please. Council Member Landry. Yes. Council Member Le Fay.
[49:00] Yes. Council Member Edwards. Yes. Council Member at Eccles. Yes.
[49:04] And Mayor Wixon. Yes. Mosh carries 5 - 0. Thank
[49:07] you. With that, we will move on to our business
[49:13] item of the evening. 8A, Acceptance of Moreau Elementary Site
[49:17] due diligence report, determination regarding the City's intent to purchase
[49:21] a property and direction to staff regarding close of escrow.
[49:25] And with that, I will turn it over to Mr.
[49:28] Craig. Thank you, Mayor, before say that Council of Faith
[49:32] and mayor may want to have word with you in
[49:33] the parking lot after the meeting, it sounds like. It's
[49:36] voting delegate and your motion to appoint her as voting
[49:39] delegate. I'm just, I'm not sure. I just want to
[49:41] make sure you take care of yourself on the way
[49:43] home. Yeah, I know. I'm parking next door in the
[49:48] council. Tonight, uh, the item in front of us is
[49:51] discussion of the due diligence report and the more elementary
[49:55] purchase that is. The council was currently agreed to with
[49:59] the unified school district. So tonight's discussion concerns, uh, the
[50:03] city's potential acquisition of the Moro Elementary School site at
[50:06] 1130 in 1330 Napa Avenue from the St. Louis Coastal
[50:11] Unified School District. On March 10th of this year, the
[50:14] City Council approved a purchase and sale agreement established in
[50:16] a 5. 3 million dollar purchase price. And initiating a
[50:20] due diligence period to investigate the properties physical, environmental title,
[50:24] historic and regulatory condition. Over the following months, city staff
[50:29] and the coordinated consultant team, uh, led by Michael Godrin
[50:33] at the EMBC Planning Strategies conductedtion and engage the community
[50:37] through two Public meetings, uh, in written comments. The due
[50:40] diligence period closes on October on August 31st. And under
[50:45] the agreement, the council has with the school district, the
[50:48] council must now determine in its sole discretion whether the
[50:51] property is suitable for the city's intended purposes and whether
[50:54] to proceed towards closing on October 31st. Tonight's action is
[51:00] to help council determine that suitability determination inform the due
[51:04] diligence report informed by the due diligence report before you.
[51:09] And the Public and Public receives night as well as
[51:10] the recommendation of the City manager. Tonight's discussion was not
[51:13] built to be a referendum on the merits of the
[51:15] purchase. Uh, the council has already agreed to the purchase
[51:18] of the property. This is also not a decision of
[51:20] what the council would like to do with the property,
[51:23] how much housing will or not be approved on the
[51:25] site or any other questions. Really, the discussion tonight is
[51:29] solely for the council to receive the information. Listen to
[51:32] Public comment and decide whether they find the property suitable
[51:35] for the city's needs. Uh, as part of that, obviously
[51:38] there are a lot of questions and dynamics around that.
[51:41] And I think that what our discussion will play out
[51:43] with tonight. So part of the suitability question is whether
[51:46] or not cost associated with using the site for city
[51:49] purposes, including as a new City Hall or some other
[51:52] purpose coupled with any potential revenues that might be created
[51:55] from the site for housing parcels or any other purpose.
[51:58] Makes the property suitable for the city. With that, we
[52:02] have a short slideshow to present on the findings on
[52:05] behalf of our due diligence team. And after that, we'll
[52:08] be happy to discuss any questions. Councillors have regarding that.
[52:11] So I'll turn it over to Michael Codrin who head
[52:14] up, held up, are headed up our staff due diligence
[52:18] team to go through a short presentation. All right. Well,
[52:21] thank you City Manager Craig. Good evening. Madam Mayor, members
[52:24] of the City Council. My name is Michael Codran. I've
[52:27] been hired by the city to serve as the due
[52:28] diligence manager for this project. Uh, tonight is an important
[52:32] milestone in the due diligence process. And I'm happy to
[52:35] present to you the final due diligence report for your
[52:39] consideration. Let me start by providing an overview of the
[52:45] due diligence effort. The PSA or purchase and sale agreement
[52:50] with the school district has provided the city with an
[52:53] extended period for due diligence to look carefully at the
[52:56] property. And not just its condition, but its suitability for
[53:00] future uses. In order for the, to properly frame and
[53:08] answer the question of suitability. We began the process of
[53:11] engaging with the public and conducting site investigations. The City
[53:16] hired an array of consultants who contributed really important information
[53:20] about the condition of the property as well as its
[53:22] historic status. Ultimately, this process has led to a detailed
[53:27] and lengthy report that was published and made available to
[53:29] the Public on August 12th. I'm going to summarize the
[53:33] report in this presentation, but want to be clear that
[53:36] the intent is to support cancel discussion. The report itself
[53:40] doesn't include any recommendations. My hope is that the council
[53:43] will find the information helpful and that the report will
[53:45] continue to be useful reference document well into the future.
[53:51] So the entire report is centered on the question of
[53:54] whether or not the property is suitable for the city's
[53:57] use, which is the City Council's call to make. If
[54:01] the council decides that the site is inacceptable condition and
[54:04] suitable for future city use, then the acquisition process can
[54:08] proceed. However, if the council does not want to move
[54:11] forward, tonight is the night to say so, because after
[54:14] August 31st, the city won't be able to recover its
[54:18] due diligence to positive 500, 000 dollars except under very
[54:22] limited circumstances. The report is organized around six dimensions of
[54:30] suitability and present information relative to each of these topics.
[54:35] This is how the report defines suitability based on the
[54:39] site's physical, environmental, title and boundary. Historic and regulatory and
[54:46] cost and value characteristics. And the report uses a working
[54:54] scenario as one lens through which we can assess its
[54:58] suitability. It considers rehabilitation of the schoolhouse building for a
[55:02] future City Hall. It looks at housing across multiple properties
[55:06] and considers what the process would look like if the
[55:09] council wants to pursue a public - private partnership to
[55:12] accomplish its vision. It is important to know, however, that
[55:16] the scenario used in this report to evaluate suitability is
[55:19] not a council commitment to any particular use. Ultimately, the
[55:23] council may choose to do something completely different with the
[55:26] property. One important point to make about the working scenario
[55:33] is that it was shaped by Public Input. Community meetings
[55:37] were held on April 22nd in June 24th. The purpose
[55:40] of the first meeting was to share the plan for
[55:43] evaluating the building and to hear feedback from the community
[55:46] on those concepts that were shared. During the second meeting,
[55:50] we were able to provide some of the results from
[55:52] the consultant studies that had been concluded at that point.
[55:56] And overall, the community expressed broad support for the acquisition
[55:59] itself. There was consistent feedback about the value of preserving
[56:04] the historic buildings. There is community support for housing on
[56:08] this site and potentially off - site on the current
[56:10] City Hall campus. And there is definite interest in preserving
[56:14] open space for sports fields. These themes helped inform the
[56:18] working scenario evaluated in this report and confirm that we
[56:21] were on the right path with our study. So let's
[56:28] jump into the question of physical suitability. Much of this
[56:32] information was reported during the Second Community meeting. Consultant reports
[56:36] allow us to conclude that the buildings are fundamentally sound
[56:40] for their age. Spectre Company was the architect that evaluated
[56:44] the building condition and their report includes a structural analysis
[56:48] from T. Y. Lynn and engineering firm. Their conclusions are
[56:53] that the rehabilitation scope can be targeted, not wholesale, which
[56:56] is great news. Another consultant net positive consulting engineers evaluated
[57:02] the mechanical, electrical, and plumbing requirements, as well as fire
[57:06] sprinklers. They recommended modernization of systems that are at the
[57:11] end of their useful life and the installation of fire
[57:14] sprinklers, which becomes an important part of the historic preservation
[57:17] process as well. Hunter Smith is another architectural firm that
[57:23] performed an evaluation to determine if the functions of the
[57:26] city's current City Hall could fit in the building, and
[57:30] they concluded that it could. Uh, the report concludes that
[57:34] no physical condition of the property or the primary schoolhouse
[57:39] buildings was discovered that would preclude an adaptive reuse. Regarding
[57:49] environmental suitability, Earthsystem - specific conducted a phase one environmental
[57:54] site assessment and identified no recognized environmental conditions. Padre Associates
[58:00] surveyed identified asbestos containing materials, survey, and identified, asbestos containing
[58:06] materials and lead surface codings. They found that the amount
[58:11] of material and abatement required was normal for a building
[58:14] of this age requiring standard debatement management during renovation. As
[58:20] a result, there are no environmental conditions on the property
[58:23] that would preclude an adaptive reuse. Another important consideration is
[58:33] tile and boundary. The City needs to be sure that
[58:35] the property they are buying is exactly as it has
[58:38] been described and that there are no surprises such as
[58:41] easements or other encumbrances that surface later. And alta survey
[58:45] was prepared by MBS land surveys, which also gives the
[58:49] City the ability to obtain tidal insurance to cover any
[58:51] surprises that do emerge. During the Second Community meeting, it
[58:55] was noted that there may be a reversion clause to
[58:58] a previous owner if the school used discontinued. However, the
[59:01] City Attorney directly reviewed the 1936 Herrera deed to the
[59:06] Moro Union School District and confirmed that there is no
[59:09] reversion clause. Therefore, we've concluded that the property is suitable
[59:13] relative to Title and Boundary Concerns. Regulatory and historic suitability
[59:21] are considered together. First, I'll discuss the zoning and its
[59:25] suitability for potential future uses. The property is currently zone
[59:30] RH or high - density residential. So is natural for
[59:33] the report to consider housing development on a portion of
[59:36] the site. However, the current zoning would require a general
[59:40] plan amendment and rezone to chain some of the residential
[59:44] land to Public Facility if the historic schoolhouse buildings are
[59:48] rehabilitated for a new City Hall. Similarly, the current City
[59:52] Hall would need to be rezoned to residential to allow
[59:56] housing at that location for that to be developed on
[59:59] that site. This process would also include a local coastal
[1:00:05] plan amendment, subject to coastal commission review and approval. So
[1:00:08] from a regulatory standpoint, there is a defined and manageable
[1:00:12] pathway. But that will add time to the process.
[1:00:22] Regarding historic suitability, there are four buildings on the property
[1:00:26] that contribute to its historic significance. Two separate architectural historians,
[1:00:32] Robert Chattel and LSA Associates have concluded that the four
[1:00:37] buildings are eligible for the national register of historic places.
[1:00:40] And there is a nomination pending state review. This report
[1:00:45] assumes that the building, that the property is a historic
[1:00:48] resource that would be eligible to employ the California Historic
[1:00:52] Building Code and earn federal historic tax credits. Both of
[1:00:56] these regulatory features would help with the financial feasibility of
[1:00:59] a future rehabilitation. Through the due diligence process, we also
[1:01:03] were able to determine that rehabilitation of the school for
[1:01:07] use as a city hall could be accomplished consistent with
[1:01:11] the Secretary of the Interior's standards for the treatment of
[1:01:13] historic properties, which would ensure a good outcome on the
[1:01:17] CECLA front. To highlight the historic work covered by the
[1:01:22] report in a little more detail. I want to note
[1:01:25] that the city hired LSA Associates to conduct a peer
[1:01:28] review of the complete historic resource assessment that was prepared
[1:01:33] for the Friends of Mora Elementary by Robert Chattel. The
[1:01:36] LSA work confirms chattel's conclusions and recommends a preservation framework
[1:01:41] based on avoidance and minimization to preserve the building's character
[1:01:46] - defining features as much as possible. LSA also prepared
[1:01:50] a follow - up memo recently published on the City's
[1:01:53] website, which includes their opinion that the interior modifications identified
[1:01:57] in the Hunter Smith test fit. And these include cloak
[1:02:02] group partition modifications, the chalkboard treatments, and classroom door adjustments,
[1:02:09] that those can be designed to comply with the Secretary
[1:02:13] of the Interior Standards for rehabilitation, which is abbreviated as
[1:02:17] SOI on this slide. Now on to value, the report
[1:02:27] discusses four value streams, but only one of those has
[1:02:31] a calculated value. For example, there is intrinsic value to
[1:02:35] the community of preserving a historic asset. There is also
[1:02:38] value in having a single civic campus where residents can
[1:02:41] go to get the services they need and consolidating operations
[1:02:45] will have some efficiencies for the city. Um, also along
[1:02:49] these lines, the fields currently provide open space and recreational
[1:02:53] value to the community. Those items are difficult to calculate
[1:02:57] the value of, and we have not attempted to do
[1:03:00] so. But to the extent that there is a future
[1:03:04] housing development on the property or on the current City
[1:03:08] Hall site, we have calculated value, and we've used a
[1:03:11] method called residual land value, or RLV as it's abbreviated.
[1:03:18] Um, to make that calculation. This is discussed in chapter
[1:03:22] 10 of the report in detail. Residual land value is
[1:03:26] essentially the amount of money that a home builder will
[1:03:29] be able to pay for the land after taking into
[1:03:31] consideration home values, construction costs, and profit, and it is
[1:03:36] very different from what the appraisal says is the market
[1:03:39] value of the property. It is a conservative estimate, but
[1:03:43] one that gives the City more control over the final
[1:03:46] development scenario than would occur if the city just decided
[1:03:50] to sell the land to the highest bidder. There are
[1:03:54] also additional sources of revenue for the city. Some of
[1:03:57] these are noted in the report, and some include placeholder
[1:03:59] amounts. For example, there is the potential for historic tax
[1:04:03] credits to help offset certain rehabilitation costs. Uh, there could
[1:04:08] be grants available for some of this work. And there
[1:04:10] are other city properties, uh, such as the teen center
[1:04:14] site, uh, that the city could use to support the
[1:04:17] cost of acquisition of the property. All of this cost
[1:04:27] and value information is pulled together in chapter 10. Of
[1:04:31] the report to highlight a total city investment. Of purchase
[1:04:36] price and rehabilitation cost of approximately 14. 7 million dollars.
[1:04:42] And I think I got off. Did I get off.
[1:04:47] Okay. All right. All of the cost information, all the
[1:04:57] cost and value of information is. Yeah. Okay.
[1:05:11] This is. Going to get, um.
[1:05:23] I'm sorry. Okay, I'm going back to, um. Slide 13,
[1:05:29] and, uh, to talk about, uh, cost, because I think
[1:05:31] I jumped, I captured slide 13 and 14, John. What's
[1:05:38] that? Word from here. Okay. Thanks. Okay, sorry. So I
[1:05:42] just concluded the, um, the second slide on historic preservation
[1:05:47] more in depth. And now instead of jumping a value,
[1:05:49] I wanted to talk about cost. Um, so obviously cost
[1:05:52] is an important consideration and no doubt on everyone's mind.
[1:05:56] The report looks at this in two ways. First of
[1:06:00] all, the purchase price is below the appraised value of
[1:06:02] the property. So that is an important starting point. Next,
[1:06:07] the report looks at the cost of rehabilitation of the
[1:06:09] primary schoolhouse building and annex for a future City Hall.
[1:06:13] The rough order of magnitude estimate for this work is
[1:06:17] eight and a half million dollars, which is covered in
[1:06:19] detail on the report. Some of the major cost items
[1:06:22] identified in the estimate include fire sprinklers, millwork and lighting
[1:06:27] requirements to name a few. The decision about whether the
[1:06:31] cost of the property and the rehabilitation project are suitable
[1:06:34] to the city is a determination for the City Council.
[1:06:38] The report supports the council's decision by also looking at
[1:06:41] the value that could be created to help offset these
[1:06:45] costs. But before discussing what the report says about value
[1:06:52] generation again, sorry. I want to spend a little more
[1:06:55] time discussing the rough order of magnitude cost estimate what
[1:06:59] it is and what it isn't. Um, so the ROM
[1:07:02] is a, it's a pre - designed pricing exercise. It's
[1:07:07] not a bid. This is a price prepared by qualified
[1:07:11] and experienced architects and engineers before architectural and engineering design
[1:07:16] has been completed. It is a certainty that the actual
[1:07:19] cost will differ up or down depending on the final
[1:07:22] project design. The ROM builds in a contingency of 30
[1:07:27] percent that specifically covers costs associated with design, inflation and
[1:07:32] construction. All of this is to say that the ROM
[1:07:36] is not a menu of costs. Um, in order to
[1:07:38] arrive at a more accurate cost estimate, the City would
[1:07:41] have to move forward with additional design work and studies.
[1:07:45] Um, so this information in terms of the cost is
[1:07:47] essentially the best information that we could develop at this
[1:07:50] time. Um, and now onto value, we did cover this
[1:07:56] slide. And sorry, I went out of order. It's been
[1:07:58] a challenge to work with reading glasses at the same
[1:08:03] time. It's looking at the City Council at Distance. So
[1:08:06] I appreciate you hanging with me on that. Um, but
[1:08:09] just to summarize this slide, as I mentioned, some of
[1:08:12] these streams are qualitative. Others are quantitative. Um, the rehabilitation
[1:08:16] value, the operational consolidation, the fields. Those are intrinsic values
[1:08:21] that weren't quantified. But the, uh, the report does quantify
[1:08:26] the residential land sale and proceeds that the city might
[1:08:30] receive, uh, from a development partner. And that was what
[1:08:35] I was discussing about residual land value. Um, and so,
[1:08:39] uh, the next slide then gets into what the details
[1:08:45] of those revenues are. So all of the cost and
[1:08:49] value information is pulled together in chapter 10 of the
[1:08:53] report to highlight a total city investment and purchase of
[1:08:56] purchase price and rehabilitation cost of approximately 14. 7 million
[1:09:03] and considers three different development scenarios to show what the
[1:09:06] long - term remaining funding requirement would be for each
[1:09:10] scenario. Each of these scenarios includes 50 Affordable housing units
[1:09:14] generating 2. 25 million dollars in value for the market
[1:09:19] rate units, the residual land value is 52, 800 dollars
[1:09:23] per unit so you can see that in this model,
[1:09:25] the more units you build, the lower the remaining funding
[1:09:28] requirement. Based on this scenario, which is just an exercise,
[1:09:33] not a plan of any sort. The remaining funding requirement
[1:09:37] would range from 7. 8 million to 2. 5 million,
[1:09:41] depending on the number of market rate units constructed. The
[1:09:45] report also highlights that these units could be located on
[1:09:49] any city - owned property. The scenario isn't specific as
[1:09:52] to how many units are constructed on the Moral Elementary
[1:09:55] property versus the current City Hall property, for example. On
[1:10:01] another note is that these numbers do include a placeholder
[1:10:04] of 2 million dollars for the Teen Center property, which
[1:10:07] has been discussed as a potential funding source for the
[1:10:10] acquisition. Items not factored in, but mentioned in the report,
[1:10:15] include the value from the historic tax credits, achieving a
[1:10:19] higher residual land value. Creating a CFD to support infrastructure
[1:10:25] costs, as well as grants. So there are important caveats
[1:10:34] that are detailed in the report. The revenue model is
[1:10:39] based on a study completed by Deloitte of this actual
[1:10:43] site in 2020. The analysis is similar to the ROF
[1:10:48] order of magnitude cost estimate in that this is a
[1:10:50] model, not an actual bid. The model uses the residual
[1:10:54] LAN value, which is a conservative measure of value that
[1:10:57] the City might receive for the land. Developer Prophet is
[1:11:02] assumed at 22 percent if the city chooses to go
[1:11:07] down that path. In the model, home sale prices are
[1:11:12] escalated 30 percent from 2020 values, which is lower than
[1:11:15] what we have actually seen in the market. But we
[1:11:18] thought it was reasonable as it keeps houses, the home
[1:11:21] prices below 1 million dollars in today's money based on,
[1:11:26] and that's based on preferences expressed by the community. Construction
[1:11:30] costs are escalated to their current levels according to the
[1:11:33] California Construction Cost Index. The Report highlights in chapter 10
[1:11:38] that the calculated remaining funding requirement is very sensitive to
[1:11:42] all of these factors. Construction costs, home values, developer. So
[1:11:46] it is important to note that the actual values the
[1:11:49] City will experience in the future will certainly be different
[1:11:52] from what these numbers are today. Uh, and as we
[1:11:56] all know, the market can go up and it can
[1:11:57] go down. As a result, these numbers and the remaining
[1:12:01] funding requirements should be thought of as a snapshot of
[1:12:04] a point in time. One assumption included in the report
[1:12:12] is that if the city moves forward with the purchase
[1:12:14] and ultimately pursues a project like the working scenario described
[1:12:18] in the report, execution through a Public - private partnership
[1:12:21] is assumed. This is because a multifaceted project that involves
[1:12:25] historic rehabilitation, uh, with housing development, um, that span specialties
[1:12:32] that are beyond city staff's capability to perform while also
[1:12:35] doing their normal work. In addition, a partner is needed
[1:12:39] to take advantage of any historic tax credits that may
[1:12:42] be earned through the rehabilitation of historic buildings. Since the
[1:12:45] City is not a taxable entity, you are not eligible
[1:12:48] to earn those tax credits directly. The visioning process pursued
[1:12:53] by the council would help shape the terms of selection
[1:12:57] of a partner, and that could be accomplished through a
[1:13:00] competitive qualifications process for example. If the city decides to
[1:13:09] move forward and closes escrow to acquire the property, there
[1:13:11] is no commitment to any future use. The City would
[1:13:15] have time to re - engage the community and enlist
[1:13:17] technical experts to help inform what is possible. The visioning
[1:13:21] process that the City pursues could be designed to help
[1:13:26] shape the development program and the search for a development
[1:13:28] partner. Most importantly, council retains full discretion over the next
[1:13:33] steps. So this is the next - to - final
[1:13:38] slide and it highlights the findings included in the report
[1:13:41] across each of the six dimensions of suitability, the physical,
[1:13:45] environmental, title and boundary, historical and regulatory, as well as
[1:13:50] cost and value. And to conclude, uh, the report indicates
[1:13:56] that no condition that we found on the property obviously
[1:14:00] disqualifies from acquisition and consideration of the rehabilitation and development
[1:14:06] scenarios that we evaluated. The working scenario is feasible under
[1:14:10] identified regulations and processes. There is a remaining funding requirement
[1:14:15] present that the city would have to address and some
[1:14:18] sources of potential additional revenue are identified. The determination of
[1:14:23] whether or not the property is suitable for the city's
[1:14:25] use under the current purchase and sale agreement is a
[1:14:28] decision that only the City Council can make. If the
[1:14:31] city chooses to move forward, pass this due diligence period,
[1:14:34] close of escrow is scheduled for October 31st. So again,
[1:14:39] I'd like to thank you. I'm Michael Codrin, the due
[1:14:41] diligence manager for the project. And, uh, this final slide
[1:14:44] lists all the consultants who contributed to the report. I'm
[1:14:48] available for any questions you have, but I think first
[1:14:50] I'll turn it back to City Manager, Craig. Thanks, Michael
[1:14:54] Counsel. Um, uh, that's our report. Obviously, the due diligence
[1:14:58] report. We've released it. Wanted to release it early from
[1:15:00] this meeting as opposed to the normal timeframe. We did
[1:15:02] that about two weeks ago. Uh, and so the community
[1:15:06] and the council, you had time to review that report.
[1:15:08] It's a lot of information. Uh, I certainly understand that
[1:15:11] there are rules of procedure in this meeting because it
[1:15:14] is more of a formal setting as it is a
[1:15:17] council meeting. But we certainly stand available to have back
[1:15:20] and forth with a council with answering any questions, providing
[1:15:23] any input. We can on any comments you hear tonight
[1:15:26] that you would like clarify or some answers on. So,
[1:15:29] uh, I'll leave that up to you to respond to
[1:15:31] us with questions. We have several different items in each
[1:15:35] of the areas in which we gave a brief overview
[1:15:37] tonight financing use, potential, uh, for revenue off the site.
[1:15:44] We've got a lot of information in each of those
[1:15:45] categories. And so we'd be willing to offer you up
[1:15:49] any back and forth you'd like as a council as
[1:15:51] you go through the meeting. Thank you, Mr. Craig. Thank
[1:15:55] you, Mr. Caldron for the report and for everyone who
[1:15:58] participated staff, Mr. Singwald and Ms. Conrad. Questions starting on
[1:16:05] my left. Thank you, Madam Mayor. The report generally answered
[1:16:12] all my questions. So, uh, so that the Public may
[1:16:16] be aware, however, uh, Mr. Cawdren, could you estimate approximately,
[1:16:21] well, can you tell us, um, how much time it
[1:16:24] took to compile the report and maybe approximately the hours
[1:16:28] that went into it just so that we have an
[1:16:30] awareness of, uh, the level of depth of this report.
[1:16:37] Well, your city manager drives a tough bargain. So I
[1:16:40] did not bill hourly for this project. There were a
[1:16:45] lot of hours. We met weekly, um, as a team,
[1:16:48] uh, you know, there were a lot of visits to
[1:16:50] the property, uh, working with the consultants to oversee the
[1:16:53] work that they were doing. Um, and to understand the
[1:16:56] property. So I can't give you an estimate of how
[1:16:58] much time, but every week we were, you know, putting
[1:17:01] in 10, 15, 20 hours at least, uh, of my
[1:17:06] time. But everybody contributed. And yeah, it's been consistent efforts
[1:17:12] into March to get to this point. I'll just add
[1:17:15] to that appreciation of, uh, subcommittee from the council, counselors
[1:17:19] Luffay and Landrum, um, were a big part of this
[1:17:22] and received updates regularly from us throughout the process. Uh,
[1:17:25] and gave their input. So thanks to them for being
[1:17:27] involved as well. Any other questions. Councilmember Edwards questions.
[1:17:37] Yeah. Thank you, Mayor. I just wanted to also express,
[1:17:41] um, my gratitude for all the work that went into
[1:17:44] the due diligence report. Thank you, Mr. Codran. And you
[1:17:49] working with the support of staff, um, that's greatly appreciated.
[1:17:58] I would also like to express, um, thank you to,
[1:18:02] um, council members, Landrum and Le Fay for working alongside
[1:18:07] all the parties and stakeholders as that was very informative
[1:18:12] as well. Everything that they brought to us, um, all
[1:18:16] the previous council meetings and other meetings. I'm going to
[1:18:22] pass on questions right now. Mayor, I'm looking forward to
[1:18:25] hearing some of what the community has to say, um,
[1:18:29] and all of you as well. And so I will
[1:18:32] reserve my questions. Um, I don't, I don't really have
[1:18:41] any questions either. I just really want to thank, um,
[1:18:43] Mr. Caudrin and the City team for this such an
[1:18:48] extensive report and so much information here. I think we're
[1:18:55] really going into this with our eyes wide open. Thank
[1:19:03] you very much. Um, we're going to move into Public
[1:19:07] comment. I have some speaker slips to start out with.
[1:19:10] And I asked the City clerk, but I didn't announce
[1:19:12] it at the beginning. I was hoping to keep everybody
[1:19:15] at two minutes so that we have enough time to
[1:19:17] deliberate and we're not doing this at 9. 30 tonight.
[1:19:20] Um, so, uh, I will use the speaker slips in
[1:19:24] just a minute. And I will ask for those few
[1:19:25] of you who signed up for three minutes. If you
[1:19:27] can just be a succinct and quick as possible. But
[1:19:30] before we move into that, because I expect this to
[1:19:33] be, um, a little time consuming for the Public comment.
[1:19:36] We're going to take a really quick break.
[1:30:49] Thank you everyone. We're ready to resume the meeting. I
[1:30:59] know.
[1:31:19] Everyone. Before we get started on Public Comment, I want
[1:31:25] to turn it back over to City Manager Craig real
[1:31:28] briefly. Thank you, council. One item I wanted to share
[1:31:32] with you is regarded to the financing of the purchase
[1:31:36] and or a conversation that I have been having with
[1:31:41] the personnel from the school district about three weeks ago.
[1:31:46] I contacted the business manager, I believe it's a business
[1:31:49] manager's time. Ryan Pickerton with the Unified School District and
[1:31:53] asked him if we could meet to talk about the
[1:31:55] 5. 3 million that we may owe them, or the
[1:31:57] 4. 8 remaining. We met together and have met for
[1:32:01] a couple times, and they have agreed to, if the
[1:32:06] city is interested, they have agreed to carry the debt
[1:32:09] of the 5. 3, again, 4. 8 remaining, because we've
[1:32:12] put 500, 000 dollars. If the council chooses to continue
[1:32:20] with the process this evening, they have agreed to a
[1:32:24] scenario under which they would carry the debt for our
[1:32:27] remaining purpose. We would take ownership of it by the,
[1:32:31] as the purchase in sale agreement details by October 31st.
[1:32:35] We would own it outright. We would also enter into
[1:32:40] a binding contract with them that we would owe them
[1:32:42] the remaining 4. 8 million over the next three years.
[1:32:47] That would be no payment. Three years. That would be
[1:32:50] no payment, further payment this year. And a 500, 000
[1:32:54] dollar payment in one year. And then that would leave
[1:32:58] us with a 4. 3 million deficit. After one year,
[1:33:03] when we give the first 500, 000 of the principal
[1:33:08] remaining, interest with start. One
[1:33:18] year from then, but two years from now, we would
[1:33:19] pay a balance of 2 million dollars. And then in
[1:33:23] the third year from this fall 2029, we would pay
[1:33:26] the remaining 2. 3 million of principle, and any accumulated
[1:33:31] interest that would begin on the 4. 3 and a
[1:33:34] year from now. So that'd be no interest accruing and
[1:33:37] no payments until one year from now. And then in
[1:33:42] one year we would pay them 500, 000 dollars and
[1:33:45] they would begin accruing interest on the remaining balance. That
[1:33:51] interest amount would be. Our student finance directors less than
[1:33:55] 200, 000 dollars, as I believe what we calculated to
[1:33:58] be over that, over the final two years of that
[1:34:01] agreement. There was some discussion that if we were to
[1:34:04] pay off early with selling property or coming up with
[1:34:06] a large sum, uh, that they would forgo that interest
[1:34:10] that had been accumulated over that time. And so, uh,
[1:34:13] that's a long way of saying that the school district
[1:34:16] has agreed to be our carrier of our debt payments
[1:34:21] would be 500, 000 in one year. Give us two
[1:34:24] years then to come up with another two million to
[1:34:26] pay them. And three years to pay the balance of
[1:34:30] 2. 3 final payment and then any accrued interest that
[1:34:33] would be still outstanding in three years from now. So
[1:34:36] that is one scenario, another scenario that the finance director
[1:34:40] and I looked at was borrowing from different area USDA
[1:34:47] loans or EDA loans or other instruments that the state
[1:34:50] may offer interest rates are very high on those, certainly
[1:34:53] more than two percent that would be willing to do.
[1:34:56] I think that, um, we have done some preliminary looking
[1:35:00] about how the City might come up with, uh, the
[1:35:03] 4. 8 additional money's. And with this added two years
[1:35:08] to come up with the main portion of what would
[1:35:10] be due, I think we could enter into some other
[1:35:13] sort of agreement if we, at that time, hadn't sold
[1:35:15] property or didn't have any, uh, additional revenue coming in
[1:35:18] that we could borrow the money from somewhere else at
[1:35:20] that time, uh, to repay them. And so that, uh,
[1:35:24] that ended yesterday afternoon in discussions with the school district
[1:35:27] personnel, uh, they, uh, he gave me a green light
[1:35:31] to discuss this. He had discussed it previously with the
[1:35:34] school district board. And they, uh, again, reiterated that their
[1:35:38] goal was to have the City own this site and
[1:35:40] they would be willing to work with us. And I
[1:35:41] think this is proof. They have worked very well with
[1:35:44] me as we've gone through this process. And so I
[1:35:47] just want to let you know that that is an
[1:35:49] option that the city has. Should we end up continue
[1:35:52] with this and pushing it as of October 31st. Thank
[1:35:56] you for sharing that update. Yes, ma'am. Appreciate that. And
[1:35:59] apologize for the late notice in getting that to you.
[1:36:02] It has been an ongoing discussion over the past three
[1:36:04] weeks. And again, we just confirmed that in dealt with
[1:36:06] get that deal yesterday. So. Thank you. With that, I
[1:36:10] will open public comment, um, again, reminder, um, that we're
[1:36:15] doing two minutes. Thank you very much, everybody. Um, I'm
[1:36:18] going to read three at a time. Tina Wiener followed
[1:36:21] by Barry Brannon followed by Pat Mangioni. Ma'am, Manginia, I
[1:36:27] hope I'm saying I'm right. Sorry. Bull, am
[1:36:37] I? Cause sitting in the cheap seats, I don't always
[1:36:39] hear everyone. Um, thank you, uh, City Manager Craig. Uh,
[1:36:43] he addressed some of my questions. So I'm not even
[1:36:45] going to use the two minutes that I was allocated.
[1:36:49] I look forward to hearing and seeing more detail about
[1:36:54] how we're going to put a plan together for that
[1:36:56] property and what those details may look like and what
[1:37:01] properties we may be considering for sale and subsequent development.
[1:37:06] And, uh, thank you for letting the city manager present
[1:37:10] that information and do away with my last minute and
[1:37:13] a half. City manager mayor council.
[1:37:23] Thank you for that news. Uh, this obviously is a
[1:37:26] legacy property. And if you look at the pictures, you
[1:37:28] can see how it Kaiser Community Center, which will be
[1:37:31] the future City Hall with the, all the opportunities there.
[1:37:35] Uh, 20 years now. Thumbnail got saved. Wow. Those guys
[1:37:38] really had it figured out. Look what we got here.
[1:37:41] Look what we got here. So I want to say
[1:37:44] thank you for all your efforts. I did read the
[1:37:47] due diligence report. Oh, what a pain. And that's a,
[1:37:51] that was tough. But, uh, we could pay for it.
[1:37:53] We could pay for it with properties we have. The
[1:37:55] Teen Center. And if you look at the plot plan
[1:37:58] we had this parcel is actually three parcels. We have
[1:38:01] the green space. Then we have the part on the
[1:38:04] other side of Surf Street. So basically my vision is
[1:38:08] to sell the piece on the other side of Surf
[1:38:09] Street for someone to put in the proper number of
[1:38:12] houses. That's high density already. That satisfies some housing requirements
[1:38:17] generate some revenue. So I think that we can finally,
[1:38:20] the rest of the money. And then facetiously, um, the
[1:38:23] Montessori schools have agreed to increase their monthly payment to
[1:38:27] cover the rest of it. Uh, Pat Manjoni, my letter
[1:38:37] got a little outdated just by his speech also. But
[1:38:40] I do feel that the city has to consider other
[1:38:43] things that need to be done here, especially street repair,
[1:38:47] um, a lot of us would probably vote for street
[1:38:50] repair, um, over a new City Hall. Sorry. Um, I
[1:38:55] felt that you were maybe a little bit in a
[1:38:57] hurry to get all of this completed. I come from
[1:39:00] South Pasadena where we are the little city that has
[1:39:02] fought the 710 freeway forever. Moving a library is a
[1:39:06] big deal. And especially a beloved library. And I think
[1:39:09] that's what kind of doomed the 710 freeway in South
[1:39:12] Pasadena at that time. Um, so I would like you
[1:39:16] to consider that. Um, the city is having a hard
[1:39:19] time meeting other expenses. And we all need to be
[1:39:22] aware of budget deficits. We need more revenue generating things
[1:39:26] and property in the city to help us out. Um,
[1:39:29] all of us want to see old buildings, um, reserved
[1:39:34] preserved. Um, so I am for that, but I want
[1:39:37] it to be used in a good way. And maybe
[1:39:40] a revenue generating idea. Thank you. Thank you. Tim Crawley
[1:39:45] followed by Courtney Schepler followed by Janice Peters.
[1:39:59] Good evening City Council. Everybody else, including the guy who
[1:40:02] just ripped up about half of my presentation here. Um,
[1:40:06] I'm not a friend of the Mortal Elementary, but I
[1:40:09] have fond memories of it. Like that first day of
[1:40:12] kindergarten for my kids or the great staff and the
[1:40:16] teachers that live there and the fierce protective dedicated PTA
[1:40:22] moms. And I don't know. I'm just, um, concerned about
[1:40:27] the funding. I said he put a he alleviated a
[1:40:30] lot of my fears, but there are still some serious
[1:40:32] concerns. I mean, right now, according to the budget, Public
[1:40:35] Works doesn't have enough money to go clean effectively the
[1:40:39] community center every day. And now we're going to give
[1:40:41] them a nine acre campus to take care of. How
[1:40:44] are we going to pay for that? I'm also worried
[1:40:46] about where all the money's going to come from. I
[1:40:49] mean, I've read some people are talking about going into
[1:40:52] the tapping entire reserve fund. And that doesn't seem like
[1:40:54] a wise thing to do with a monster Elninia supposedly
[1:40:58] approaching us this winner and with homeless populated Tinder dry
[1:41:03] state park on the east side of our city. I
[1:41:05] mean, it's a big concern. I live right near there.
[1:41:08] Um, I'm pretty sure I know how this vote's going
[1:41:11] to go tonight. But the question is ultimately, are we
[1:41:14] going to end up spending 500, 000 or 14 million
[1:41:17] dollars still is an unessential, unfunded, unbudgeted property that's going
[1:41:23] to generate an unknown amount of revenue from an unknown
[1:41:26] source. It's your decision tonight. I've seen this happen. 40
[1:41:30] over the last 40 years, I've seen something like this
[1:41:32] happen numerous times. Some passion group comes in, you know,
[1:41:36] representing the majority while the majority's out there distracted just
[1:41:40] by life. Um, and then when it hits the fan,
[1:41:44] it hits the fan. I mean, it's your choice tonight,
[1:41:47] but there are going to be consequences, especially if you
[1:41:49] mess with our library. Thank you very much. Good evening.
[1:41:59] Courtney Schepler, I think I'll just keep it short and
[1:42:02] say I agree with most of what Tim just said.
[1:42:04] And I really do appreciate the work that, um, Mr.
[1:42:07] Craig has done on the, uh, short term financing arrangement
[1:42:11] with the district. So it's, it's one thing to think
[1:42:13] about this as the current five million dollar proposal, but
[1:42:17] I feel like the conversation always gets lumped in with
[1:42:20] and we're going to have this new City Hall. And
[1:42:22] that's going to cost this extra, you know, eight plus
[1:42:25] million, um, and I think it would really help the
[1:42:28] Public to have clear heads about this. If you can
[1:42:31] put some bookmarks around what we're really talking about tonight,
[1:42:35] what you're committing to and what you're absolutely not committing
[1:42:37] to yet until you've got more information that pencils out.
[1:42:41] And that's what's been missing. We have this huge potential
[1:42:44] expenditure, but we're not seeing how you actually pay for
[1:42:47] it and what the rest of that plan look like.
[1:42:49] Thank you. Hello, I'm
[1:42:59] Janice Peters. I have a different viewpoint on all of
[1:43:02] this. I think there is a lot of things that
[1:43:05] we, well, first of all, I took the tour the
[1:43:07] other day. And I was impressed with the condition of
[1:43:11] the property. I thought it was going to be, you
[1:43:13] know, moldy and all that stuff. It's in really good
[1:43:15] shape. I know the stuff behind the walls that needs
[1:43:18] fixing. But we can do that. And eight million dollars
[1:43:22] extra, City Hall for a million dollars. It's actually cheap.
[1:43:28] And this is a good property already that people love
[1:43:31] and could be a wonderful civic center. Which I've hoped
[1:43:36] for 10 years on now, I think. Anyway, I think
[1:43:39] that what can happen, having seen the condition of the
[1:43:42] building, there are certain rental opportunities there, offices could be
[1:43:48] rented their. Montessori is already there still paying rent. And
[1:43:53] once the consolidation of the city offices, you could have
[1:44:00] your police department there, everything. It could save money in
[1:44:04] the long run to consolidate all of that together. Um,
[1:44:09] what else? We also would have this room available for
[1:44:14] rental again. If we use the auditorium over there for
[1:44:18] the meetings, this one would now be available for more
[1:44:21] activities. We always need conference space. We always need office
[1:44:25] space. I've personally looked for both of those things. And
[1:44:29] it's a challenge with what we have now available. So
[1:44:33] this could be a win - win. I think we
[1:44:34] could make enough money on renting things. To cover our
[1:44:39] costs as we go along improving everything and end up
[1:44:43] with a beautiful Civic center. Thank you.
[1:44:55] Sorry Glenn Sellaway followed by Marlus, Mike Pearson.
[1:45:05] Good evening, Mayor and Council and staff. Uh, my name
[1:45:09] is Glenn Sillaway. I am 25 year resident of Morel
[1:45:13] Bay and I'm the president of the Historical Society of
[1:45:16] Morro Bay. I want to say we started looking at
[1:45:19] the historical society started looking at these buildings seriously, maybe
[1:45:24] six years ago whenever the school district first started talking
[1:45:28] about redeveloping that property. And the report that came out
[1:45:32] of Deloitte that Mr. Cogwin has talked about in his
[1:45:36] paper was in the works then. At that time, we
[1:45:41] were arguing with them that they should preserve the buildings.
[1:45:44] And our interests in doing that has, is long set.
[1:45:47] One of the reasons that we developed a historic preservation
[1:45:52] ordinance draft for the city six years ago was to
[1:45:57] partly preserve these buildings. So we're glad, I'm glad we're
[1:46:00] finally getting to it. And I appreciate the effort that
[1:46:03] Mr. Cottern has put into putting that process in paper
[1:46:08] and to the friends for starting it. The fact is
[1:46:11] tonight you are going to make a decision. If you
[1:46:14] think about this as kind of like an environmental, uh,
[1:46:17] review process, you typically have alternatives. You have two alternatives
[1:46:22] in front of you tonight. One is no change. That
[1:46:25] would be no. Give us back our 500, 000 dollars
[1:46:28] The other one is yes. We're going to have a
[1:46:30] change. The thing is that we don't know what that
[1:46:33] change is going to be. There is no real plan.
[1:46:37] We have a working scenario. It's valuable for a framework,
[1:46:40] but you're going to have a lot of work to
[1:46:41] do. Luckily, uh, because of our good news on financing
[1:46:45] tonight, you have some time. You probably are going to
[1:46:48] need quite a bit of it two or three years.
[1:46:52] It wouldn't be surprised. I would like to see several
[1:46:57] things happen in that planning process. The first one would
[1:47:00] be, and I hope this would be fairly simple for
[1:47:04] you to do. Put together some kind of document that
[1:47:10] would show. Set three minutes. We're doing two minutes. So
[1:47:15] I go ahead and finish your comment. Just real quick.
[1:47:18] I document that you could produce that would show us
[1:47:20] the capital expenditures overall. This plan, this project being part
[1:47:26] of many. And let the Public see that as soon
[1:47:30] as possible. Because these are opportunity costs. You're going to
[1:47:33] have to consider. The second thing is you need a
[1:47:36] process going forward that would be acceptable to the community,
[1:47:39] uh, in a neutral way to evaluate as we go
[1:47:42] forward and learn more about it to the point where
[1:47:44] you get to a process or plan that can be
[1:47:47] priced. When you can do that, put it to a
[1:47:51] vote of the people. Thank you. Thank you. Okay. Good
[1:47:59] evening. Madam Mayor City Council Member staff. Well, I'm here
[1:48:06] as the fiscal conservative because I really care about how
[1:48:10] we're going to pay for the property. And while I
[1:48:14] really appreciate and thank Mr. Craig for the work he's
[1:48:17] done to get a good deal with the school district.
[1:48:19] I still have questions about how that deal fits in
[1:48:23] with our current budget year and with our future, the
[1:48:26] forecast. Because I know I've seen the budget forecast and
[1:48:30] it's forecasting, um, deficits. And so you've got to find
[1:48:35] a way to pay that money. The other thing I
[1:48:38] want to say is that I don't think the City
[1:48:40] has to own this property to control it. And if
[1:48:44] you think about it, um, historic preservation ordinance application goes
[1:48:50] through. It'll be preserved. And that's going to limit the
[1:48:54] amount of development and what kind of development can be
[1:48:56] done there because that property, and I'd like to know
[1:48:58] what the boundaries of that are so that we know
[1:49:01] how much more land is available for housing and what
[1:49:04] the value of that property is. Because it's going to
[1:49:08] decline once we do, uh, get that designation. And it
[1:49:13] seems to me that if we worked with the, if
[1:49:16] we let the school district. Just keep the property, they
[1:49:21] run the risk of finding that developer that you have
[1:49:23] to work with because they're still going to be interested
[1:49:26] in selling it. And you're still in control because you
[1:49:28] control zoning. You control the entitlement process. You control the
[1:49:32] final decision of what will go there. And it would
[1:49:35] be to me, it would make sense because they're accepting
[1:49:38] the risk because you can't really move forward until you
[1:49:40] have that, uh, partner. So I do want to thank
[1:49:44] everybody who works so hard on the report and the
[1:49:46] staff and I'm grateful to have it. And thank you
[1:49:48] very much. I have no more speaker slips, public comment
[1:49:54] is open on this item. Please come forward. Line up
[1:50:01] if you need to. Or whatever we can do to
[1:50:03] move it. Good evening, distinguished council staff. Shirley Frazier 30
[1:50:07] year resident. I guess the way I'm seeing it as
[1:50:10] we're getting this property, which is a valuable piece that's
[1:50:14] right in the middle of town, um, for almost half
[1:50:17] the cost. And if we go ahead and acquire this,
[1:50:20] I believe there precludes us in the future from selling
[1:50:23] this property and even making a profit on it, um,
[1:50:27] to a developer. We hold the ultimate control on it
[1:50:29] that way. Um, more so than what we could do
[1:50:32] even with a historic designation, which may preclude development to
[1:50:36] one or two buildings, but not the entire site. And
[1:50:39] then the site that the city seems, um, again, a
[1:50:41] lot of the residents seem very, um, concerned about keeping
[1:50:45] the fields and things could easily be developed away. So
[1:50:48] it seems like the ultimate control, um, would lie with
[1:50:51] us in purchasing it, even though money is tight for
[1:50:54] everyone these days, I believe, um, but we're getting absolutely
[1:50:58] amazing favorable financial terms for this. And even buying it
[1:51:04] at a discount. So I would just ask you to
[1:51:05] consider that. And perhaps the, again, I understand fiduciary responsibilities
[1:51:12] and being conservative financially. But the total amount of renovations
[1:51:17] seems like really a lot, again, considering what is in
[1:51:21] there already and what need to be upgraded. So maybe
[1:51:24] there is a compromise there too. So you have a
[1:51:27] lot to think about, but I think it is a,
[1:51:29] um, potentially a very good deal. And we're under the
[1:51:31] most favorable terms for it. So thank you for your
[1:51:34] diligence and careful consideration.
[1:51:50] Good evening council staff and residence in Mor Bay. My
[1:51:54] name is Mike Gerson candidate for Mor Obesi City Council.
[1:52:00] I had a really hard time wrapping my head around
[1:52:03] this deal financially. At first. You know, I like to
[1:52:07] see a spreadsheet with data and, uh, return on investment
[1:52:11] at the bottom and all that stuff. And I really
[1:52:14] wanted to get behind the project. So I picked up
[1:52:17] the phone and started calling other members of the community.
[1:52:21] And between that and the favorable financing that Mr. Craig
[1:52:27] has presented to us tonight, I do see a path
[1:52:30] for making the deal work with minimal impact. To our
[1:52:35] city's financial reserves. I want to say that my vision
[1:52:39] for the Moro Elementary property is to lean into, um,
[1:52:44] preserving the open space and making it a great public
[1:52:47] park. I'd love to see this City hold a special
[1:52:51] meeting specifically to ask the community what they want that
[1:52:54] space to become. And personally, I envision a dog park
[1:53:02] there. And this is always too low for me. I
[1:53:07] envision like a dog park preserving the fields. Um, and
[1:53:11] even like a walkway that connects the community center to
[1:53:15] the new city hall and creating, uh, civic plaza, something,
[1:53:20] I mean, like look at what a task it arrows
[1:53:23] done with their City Hall. It's amazing. Um, I don't
[1:53:29] believe that sports fields are where the housing belongs. There's
[1:53:32] already two potential housing opportunities. Um, we've talked about the
[1:53:36] northern parcel at the elementary school for workforce housing. And
[1:53:41] if City Hall relocates, uh, using the existing City Hall
[1:53:45] property for senior housing. And between those and the favorable
[1:53:50] financing, um, I think we can really make this happen.
[1:53:55] Thank you very much.
[1:54:08] Things always ridiculously high. Okay. All right. Well, you must
[1:54:12] have you know me. I'm DRC Castro. I'm a resident
[1:54:15] here in Morro Bay. I live here. I work here.
[1:54:18] I raise my four kids here and I love living
[1:54:20] here. Um, and I'm here to talk on behalf of
[1:54:23] Friends of Mor Elementary, which you all know I belong
[1:54:26] to. We encourage the City to approve the purchase and
[1:54:29] sale agreement of the Mora Elementary site. We believe it
[1:54:33] is in the city's best interest to maintain control of
[1:54:35] such an important piece of land that sits at the
[1:54:38] heart of the community. Converting the use of the 1936
[1:54:42] building into a city hall addresses the current City Hall
[1:54:45] building that needs additional space and repair. The savings to
[1:54:49] Retrofit Moral Elementary versus building a new City Hall alone
[1:54:53] could be worth acquiring the site. I would like to
[1:54:55] thank the City for their extensive due diligence, the report
[1:54:59] tonight and publicly posting the reports. Um, along with the
[1:55:04] tours of the site. I feel like the due diligence
[1:55:06] reports establishes confidence in the buildings conditions. Um, Moreau Elementary
[1:55:12] was first built. 1936 issue of the sun stated one
[1:55:18] of my favorite quotes. Citizens will pride themselves and their
[1:55:22] foresight. This site is celebrating 90 years of serving the
[1:55:25] community in November. And I have no doubt it can
[1:55:28] serve our community for the next 90 as well. Thank
[1:55:32] you, council, for your consideration in supporting this valuable purchase.
[1:55:36] And we urge you to proceed in escrow. So thank
[1:55:38] you. Anyone else for Public Common on this item?
[1:55:51] I'll be fast. Um, same with Taurus. I'm here to
[1:55:56] give my support for 8A and say thank you to
[1:56:00] everybody who's worked on this for so long. I've been
[1:56:03] paying attention. Um, for quite a while. And it has
[1:56:07] been a lot of work. And I think the, many
[1:56:10] people in the community that appreciate it. I agree with
[1:56:14] many people that it's a once in a lifetime opportunity
[1:56:17] for a city, especially when you separate. I know right
[1:56:21] now a lot of people are putting together the moving
[1:56:23] of City Hall and the property. But when the decision
[1:56:26] is just about the property, it's really a no brainer.
[1:56:29] I mean, if you bought it one day, the next
[1:56:31] day the city already has a lot more value. Um,
[1:56:35] when you consider the value of that property in that.
[1:56:39] So thank you very much. That's it. Yeah. Mall for
[1:56:43] it. Thank you.
[1:56:59] Hello counsel staff. May I request three minutes since we're
[1:57:04] doing so well? Okay. I'm Judy setting a very grateful
[1:57:09] 59 year resident of Moral Bay. It is encouraging to
[1:57:13] see the amount of community participation, the Moral L site
[1:57:17] acquisition is generating. The very thought of acquiring our very
[1:57:21] own community civic center is exciting, inspiring and symbolizes and
[1:57:27] investment in the growth, unity and future of our community.
[1:57:32] I believe in each of you. And your ability to
[1:57:35] make this sound real estate venture happen. The historic site
[1:57:40] is valuable. I also believe in the value of remaining
[1:57:44] debt - free. We have the means to make this
[1:57:47] purchase independently while it was generous of the school district
[1:57:51] to offer five years of salary financing. We can essentially
[1:57:55] lend the money to ourselves and preserve the interest savings
[1:57:59] for a rainy day. Moving our library has been of
[1:58:02] concern. I personally would like to keep the library land
[1:58:07] and mural intact. I need to say that I'm speaking
[1:58:12] independently of friends of moral and mentary. Regarding housing after
[1:58:18] discussions with a successful retired developer, I have changed my
[1:58:23] stand. We suggested that the he suggested that the entire
[1:58:27] site be dedicated to community service. As that would create
[1:58:33] a fair scenario. I now believe that new housing development
[1:58:37] can be located on other city - owned properties. To
[1:58:41] maintain control of building codes, the city should consider 99
[1:58:46] - year leases for these future housing properties. It has
[1:58:50] been said that many community members are basing this purchase
[1:58:55] decision on emotions. They are correct. We love this historic
[1:59:02] site and we will go to the ends of the
[1:59:04] earth to keep it as our own. Thank you to
[1:59:07] everyone who has worked to move this valuable project forward
[1:59:11] and a special thanks to Mr. Cauldron for his hard
[1:59:14] work. And if you did put in time that gave
[1:59:17] us the benefit of a break in price, thank you
[1:59:20] so much.
[1:59:36] Good evening. Um, Debbie High Phil. I've lived here 25
[1:59:40] years. Um, I think this land is a good deal.
[1:59:44] I think we've got lots of options. If worst case
[1:59:48] scenarios happen, um, we're getting it below cost. And we
[1:59:56] can always sell if, you know, it was the worst
[1:59:59] case scenario. I would like to also talk about the
[2:00:03] programs that are presently at the site. It is the
[2:00:07] only Montessori that is a public Montessori, which in the
[2:00:12] whole county. That I'm aware of. And as an education
[2:00:19] who has gone through the monastery training as well as
[2:00:22] Public School, it's exceptional. And I just would really love
[2:00:27] to see the programs that are there right now. Stay
[2:00:31] there. And I definitely would like to see that beautiful
[2:00:35] field preserved, at least for the most part, because it's
[2:00:39] well used. Thank you.
[2:00:53] I'll talk fast. Well, we think about buying, when we
[2:00:58] think about proceeding with buying the property, we should ask
[2:01:01] ourselves the questions. What consequences are there from not buying
[2:01:05] the property? For instance, replace our only, how much would
[2:01:11] it cost to replace our only soccer fields in Morro
[2:01:14] Bay. What is the cost of repairing deferred maintenance mentioned
[2:01:22] in the due diligence report on the current City Hall
[2:01:25] or to create additional space for. Outgrown city offices and
[2:01:31] departments? What is the cost of a housing developer building
[2:01:35] high density housing in which state overrides local. Decisions on
[2:01:41] development in which 20 percent of wave parking requirements? What
[2:01:48] is the cost of the strain of Public Services such
[2:01:51] as fire and police. Street congestion and parking nightmare. What
[2:01:59] is the cost of losing tuition fee from the Montessori
[2:02:04] School that serves approximately 60 families? So tonight I ask
[2:02:09] you. To please approve moving forward with this purchase. Thank
[2:02:14] you very much.
[2:02:24] Anyone else for Public comment on this item. Ray, are
[2:02:28] there any raised hands in the queue. Yes, sir. Raised
[2:02:32] hands in the queue. Let's see, we have Jamie Motley.
[2:02:36] Go ahead.
[2:02:46] Hello. Um. I'm actually Jamie Motley's husband. This is Nicholas
[2:02:51] Cueva. Resident of Morro Bay, father of a student at
[2:02:56] the Montessori School there. And hopefully a father of multiple
[2:03:01] more children that go there. So we support the City
[2:03:05] purchasing the property and we think it's important for the
[2:03:08] community as a historical site. For City offices for the
[2:03:11] school and for the sports fields. Um, thank you very
[2:03:16] much for your time. And I second that Jamie Motley,
[2:03:20] thank you so much. Okay. We have another person under
[2:03:27] the name Zoom user. Go ahead. Hello. My name
[2:03:37] is Tondi Bansi Stapleton and I am a longtime resident.
[2:03:41] Of Morbe currently raising my three children here. And I
[2:03:45] very much want to think City Council for recognizing the
[2:03:49] community's desire to keep in utilize this property. I strongly
[2:03:54] support the City acquiring the property. I feel it's important
[2:03:57] as a historical site and that it would be great
[2:04:01] for city offices. Um, I would love to see the
[2:04:04] sports fields continue to be available for use by our
[2:04:07] community. And for the school to remain there as well.
[2:04:11] Um, please continue to move forward with the purchase. Thank
[2:04:14] you. There are no more raised hands in the queue.
[2:04:20] Thank you, right. Anyone else before Close Public comment. Seeing
[2:04:25] none, our close public comment and bring it back to
[2:04:28] council, Mr. Kreg, is there anything you want to address
[2:04:31] from Public comment. Either one. I don't believe so. We'll
[2:04:39] answer any questions. Um, so before we move into deliberations,
[2:04:42] I'll see if the other questions from council. Council Member
[2:04:46] Edwards. Yes. Thank you, Mayor. If I may, for Mr.
[2:04:51] Singwald, um, can you please just clarify that we don't
[2:04:56] need to own the property in order to control it
[2:05:00] with regard to zoning land use, et cetera. Thank you.
[2:05:07] So good evening, Mayor Council. I'm Ehrliching Wald, community development
[2:05:10] director, study of Mor Bay. So if the city does
[2:05:15] not purchase the property, a private developer, um, seeking to
[2:05:20] develop the property and or, um, potentially demolished or significantly
[2:05:25] alter. The schoolhouse building, um, would have to obtain a
[2:05:29] coastal development permit. And very likely a conditional use permit
[2:05:33] from the City of Morro Bay. Those entitlements would trigger
[2:05:38] environmental review. Under the California of our reminder quality Act.
[2:05:43] Or CEQA. One of the questions that CEQA asks is
[2:05:47] whether the proposed development would impact a historic resource on
[2:05:52] a state or federal registry. Or a resource that is
[2:05:56] eligible for listing as a historic resource. We know from
[2:05:59] the chattel report that the schoolhouse is eligible for listing.
[2:06:04] Therefore, under SEQA, this development would require an environmental impact
[2:06:09] report. The planning commission would be the review authority, um,
[2:06:14] to evaluate and review a discretionary coastal development permit and
[2:06:19] also to certify the environmental impact report. Um, and then
[2:06:22] of course the Planning Commission's decision will be appealable to
[2:06:26] the City Council. Since, um, in this scenario, uh, EIR
[2:06:33] would be required in order for the City to approve
[2:06:39] a development project that would impact a historic resource or
[2:06:43] resource eligible for listing as an eligible for listing. Would
[2:06:48] require the City, again, the planning commission or the council
[2:06:51] on appeal to make findings overwriting consideration that the, uh,
[2:06:56] benefits of the project outweigh the historic significance of the
[2:07:01] schoolhouse building. So that's the long wind and answer. There's
[2:07:04] short answer is, um, there would be a process available.
[2:07:12] For potentially for, um, demolition or altering the Schoolhouse building,
[2:07:18] but it would require an EIR. And it would be
[2:07:19] up to the city would have full discretion of that
[2:07:21] process. Thank you, Mr. Singwald. Um, if I
[2:07:31] may, uh, get some clarification from Mr. Caudran. We're, we're
[2:07:38] having multiple, uh, pieces of property and parcels, uh, in
[2:07:42] this working scenario equation, uh, with regard to the housing
[2:07:48] component mentioned, even there was mentioned, uh, the library parcel.
[2:07:56] I am hearing this evening that there is, uh, both
[2:08:00] through correspondence and this evening there is concern, obviously over
[2:08:04] the library and being mentioned in the report. Although I
[2:08:07] understand why it was in terms of available parcels that
[2:08:11] we own. But I think if you could just give
[2:08:16] clarification more to as where the housing, the 100 to
[2:08:24] 200 units that were mentioned in the scenario, um, could
[2:08:29] be placed. That might be helpful. Sure. And, uh, the
[2:08:35] process did not involve a site planning exercise to fully
[2:08:40] program the property in terms of, um, how many units
[2:08:44] could be developed in any particular location? Um, however, based
[2:08:49] on the zoning and the acreage, um, the number of
[2:08:52] units, uh, included in the study is allowable. Um, the
[2:08:59] idea of using the City Hall property and then the
[2:09:02] library property is mentioned as well. Um, really came out
[2:09:07] of the community meetings. And I think that, um, after
[2:09:14] the, in the second community, meaning what we proposed were
[2:09:17] alternatives that showed, um, different levels of preservation of the
[2:09:23] sports fields because the community had expressed that concern. And
[2:09:27] then, um, you'll notice that the final report doesn't really
[2:09:32] hazard a guess as to, it doesn't suggest exactly where
[2:09:36] those units should go or how much of the fields
[2:09:39] would or would not be preserved. Um, but the, um,
[2:09:45] ability to develop 200 units on the moral elementary property
[2:09:50] and on the City Hall site would necessitate, you know,
[2:09:54] would make less sports fields, less open space available in
[2:09:58] the future. That space would be needed for those 200
[2:10:01] units. And so, um, there would have to be other
[2:10:05] properties where those units would be located. And please let
[2:10:14] me know if that answers your question or if I
[2:10:16] can provide. No, it does. Thank you, Mr. Caudran, because
[2:10:22] I think that, uh, it speaks to just one concern
[2:10:26] that I'm having this evening, um, that I all get
[2:10:30] to. Also, uh, City manager Craig really appreciate you giving
[2:10:38] us this information tonight. It's a lot to digest. Um,
[2:10:43] I have to say, um, and I am concerned how
[2:10:46] this or any loan, um, that pertains to a project
[2:10:51] of any kind that has not been put into our
[2:10:55] fiscal 26, 27 budget. Would at all or how it
[2:11:00] would affect us moving forward with our other, um, projects
[2:11:05] and things that we have going on in the city
[2:11:07] of which is a lot. Um, but I want to
[2:11:10] say that that's a, that seems to be a much
[2:11:12] more favorable, um, idea than some that I've heard floating
[2:11:17] out there. Um, but I'll speak to that in a
[2:11:20] second. Um, just to clarification, I, I know we are
[2:11:23] saying that this would be uniting our, our, our, um,
[2:11:30] our departments, but I think somebody mentioned, and I may
[2:11:33] have heard it wrong. So I apologize. Was the police
[2:11:36] department mentioned because I did not believe that was something
[2:11:39] that would fit into this, um, frame. Counselor. That was
[2:11:49] not considered in our, uh, scenario under which we asked
[2:11:52] just for if the possible, um, Departments that are currently
[2:11:56] in City Hall and the annex building next door, uh,
[2:12:00] HR that is temporary located in the Chamber of Commerce
[2:12:04] building and visit Mor Bay Building. That is not include
[2:12:08] any movement of the, um, recreation division, uh, the police
[2:12:13] department or the fire department staff or the Harbor Department
[2:12:16] staff. All other staff. Or the, uh, maintenance division that's
[2:12:21] currently in the courtyard down on 41. So it's only
[2:12:25] City Hall staff that are located in the main buildings
[2:12:27] of City Hall and environs around there. I hope that
[2:12:31] makes sense. It does. I appreciate clarification because I think
[2:12:35] this is being framed as it's all under one roof.
[2:12:41] And that's not really the case in my opinion. So
[2:12:44] I just wanted to have that clarify. Um, thank you.
[2:12:47] That's, that's my questions for now. Questions. I'm just Councilmember
[2:12:55] Lefay. No more questions. Um. We will begin comments and
[2:13:05] deliberation. I'm going to just start off with a few
[2:13:07] couple things. Difficult to have capital expenditures. Scenario when we
[2:13:16] don't know yet what the plan is. I think as
[2:13:19] far as that goes for me, I'm not interested in
[2:13:23] the library building being any part of change in use
[2:13:27] there and being factored in. What I would consider is
[2:13:32] the, um, modular that our fire department used to be
[2:13:36] housed in temporarily while we built our fire station, um,
[2:13:40] that we've just recently moved one of our departments into
[2:13:43] because we've outgrown the space at City Hall as a
[2:13:46] potential piece of the element. And potentially, maybe you take
[2:13:51] a few parking spots or something from that side of
[2:13:53] the library. That would be about the extent of a
[2:13:56] library impact for me personally that I would see. But
[2:13:59] that could, um, open up an opportunity for some housing
[2:14:04] structures there too. We didn't really factor that in. But
[2:14:07] I look at it as a district kind of in
[2:14:10] that whole area and what do we own and what
[2:14:12] can we fit in? That being said, um, funding. I
[2:14:17] see revenue stream potential from the teen center, which is
[2:14:23] for sale. And I believe we're getting our commercial realtor
[2:14:25] here shortly that'll be looking at our city properties. That
[2:14:29] piece of property where the modular is from the old
[2:14:31] fire station that's currently housing a few business, the chambered
[2:14:36] a few things. Also our market street property. We've been
[2:14:39] waiting for the waterfront master plan to move into its
[2:14:41] final phases. Um, and kind of paused that, but there's
[2:14:45] an opportunity to move forward with the sale of that.
[2:14:47] So if you parlay those together, um, we get pretty
[2:14:50] close to that purchase price. I think having it out
[2:14:56] three years allows us to have an opportunity to look
[2:15:00] at other revenue streams. If the potential grants, we can
[2:15:04] apply for. I personally have zero desire to touch our
[2:15:08] reserves at all, um, as someone said, we have to
[2:15:12] be diligent about what the weather could be this year
[2:15:14] with the potential El Nino and what that could incur.
[2:15:19] So, so the, I see this project as phases, to
[2:15:27] council member Edwards comment about the police department. It was
[2:15:31] not factored in nor was the maintenance or the other
[2:15:33] departments, but I do see the potential on a 10
[2:15:36] acre site to have a future in a phase where
[2:15:40] there might be the police department located, relocated out of
[2:15:43] that little tiny building they're in that they're bursting at
[2:15:46] the seams also. But I think that this is a
[2:15:49] phased approach to what all those things will be with
[2:15:52] community input and hopefully, you know, maybe a blue ribbon
[2:15:57] committee or something put together with, um. Semi - professional,
[2:16:02] professional people who, who have experience in these things, um,
[2:16:06] that can, can shed some light on how to move
[2:16:09] that project forward with some scenarios for community use. This
[2:16:14] is not, and correct me if I'm saying it wrong,
[2:16:18] Mr. Craig, this is not taking any money from any
[2:16:20] capital projects whatsoever that we have currently funded. I know
[2:16:23] we have approximately four million dollars going to streets. It's
[2:16:26] still going to streets. This doesn't detract from that as
[2:16:32] far as I'm concerned. It might not add funding, but
[2:16:36] this is, um, is spread out at two percent, which
[2:16:40] is pretty favorable. So I'm going to stop right there
[2:16:42] and let my colleagues, um, have their comments and then
[2:16:45] I'll finish up later and I'll start down on my
[2:16:47] right with council member Lefe. Yes. Uh, thank you Mayor.
[2:16:54] You know, this is a pretty simple decision for me.
[2:16:56] I started working on this with Council Member Landrom about
[2:17:00] a year and a half ago. We're on the subcommittee.
[2:17:04] And we've met with developers. We've met wood. People self
[2:17:08] help. Um, I'm looking at it as a purchase of
[2:17:11] 5. 3 million dollars period right now. And with the
[2:17:16] favorable financing, um, this is a no brainer. I mean,
[2:17:20] this is an opportunity, a legacy that we would be
[2:17:24] foolish to pass up as far as I'm concerned. I
[2:17:27] bought, you know, probably eight pieces of property here in
[2:17:30] Moral Bay. And I buy my properties based on really
[2:17:34] what the universe tells me on that particular site. I
[2:17:37] know you're probably being a little weird, but I've walked
[2:17:40] that site many times. And the first time I did
[2:17:43] walk on it, which was just a year and a
[2:17:45] half ago, it just had a special meaning, a special
[2:17:48] place. And that's what we could achieve here. We have
[2:17:52] a blank sheet of paper. Weather City Hall moves in
[2:17:55] there or not. Um, I'm not going to tell you
[2:17:57] that it's going to happen. I think the, um, due
[2:18:02] diligence report was really just to tell us that what
[2:18:05] we're buying here and to give us up here an
[2:18:09] opportunity to make sure that if we do purchase this
[2:18:13] property tonight, that it's really a no risk on us.
[2:18:17] And it's not a financial burden for the city or
[2:18:20] the citizens. So, I mean, it's pretty simple for me.
[2:18:24] I mean, I'm already in favor of making that decision
[2:18:28] to purchase this site for 5. 3 million. Yes. Um,
[2:18:37] council member Le Fay and I started, when we started
[2:18:41] working on this, um, I want to thank friends and
[2:18:45] Morro Elementary for all their work on this project. And
[2:18:48] when we first started this, they weren't even created yet.
[2:18:50] They weren't even a nonprofit. And, um, the trajectory to
[2:18:56] get them there, we were looking for, um, support in
[2:19:00] trying to get the building because we felt, as council
[2:19:04] member Le Fay said when he viewed the property, um,
[2:19:08] he felt that it was, you know, it's just gives
[2:19:12] you such a sense of place when you're on the
[2:19:15] property and you're looking at the school. And I think
[2:19:18] he saw, I'm speaking for you, but I think he
[2:19:22] can, he can tell me if I'm wrong. But I
[2:19:25] think he just realized that that needed to be protected
[2:19:28] and saved. And so, um, to get that property, um,
[2:19:33] deemed historic, um, we naturally went to the historical society
[2:19:39] of Morel Bay and asked them if they would sponsor
[2:19:41] this to, to be, you know, deemed historic. And, um,
[2:19:47] unfortunately they were unable to do that. But it was
[2:19:50] a blessing in disguise because then Friends of Morro Elementary
[2:19:54] formed, um, in a really quick way. And, um, got
[2:19:58] to work. And they are moving towards having that property
[2:20:03] certified historic, which as we see in the due diligence
[2:20:06] report saves money on, on the property on any renovations
[2:20:12] and work done on the property. So I think, um,
[2:20:16] I really want to thank them. And I call out
[2:20:19] the enormous effort that they have put in into all
[2:20:21] of this. And, you know, we're, we're always, you know,
[2:20:27] people travel, I'm sure many of us in this room
[2:20:30] go to Europe and to, um, countries like that, that
[2:20:34] value old, old buildings. And, um, I, I think that
[2:20:38] this is such a step in the right direction for
[2:20:42] Morbay in a really big deal. Um, I, I, um,
[2:20:46] I know that there's, you know, if we buy the
[2:20:49] property and we still have time to assess what we
[2:20:54] can do there, but there's just tonight I've heard all
[2:20:56] different kinds of options for revenue creation. And the brainstorming
[2:21:03] as a community, I think we can come up with
[2:21:05] ways to make this happen. I think that the, you
[2:21:08] know, I hear really loudly that the, uh, the open
[2:21:11] space is important to the community. I know that housing
[2:21:15] is important. I think that there can be a mix
[2:21:18] of all of those things within this project. And I
[2:21:21] think the way I see it is that it can
[2:21:25] be a project and something that we can all be
[2:21:29] proud of here in Moro Bay. Thank you, Council Member.
[2:21:35] Pro Tim. Thank you, Madam Mayor. I have to say,
[2:21:43] um. I am, I'm just humbled to be sitting up
[2:21:48] here tonight. And Bill privileged to be part of making
[2:21:54] this decision. One of five council members on behalf of
[2:21:58] all the residents. It's a big decision and it's not
[2:22:02] something that I've taken lightly. It's not something that staff,
[2:22:06] uh, has taken lightly. I don't think anyone in the
[2:22:08] community has taken this decision lightly. We put a lot
[2:22:11] of, uh, effort and thought and passion into it. Um,
[2:22:16] that said, I can tell you, uh, easily and I
[2:22:20] echo a lot of what my colleagues have said. I
[2:22:22] support moving forward with the purchase of the property. And
[2:22:27] I wrote down a few comments to make sure that
[2:22:29] I'm conveying what I want to acquiring this site is
[2:22:33] already an adopted city goal. And the purpose of the
[2:22:36] due diligence process was to answer really a straightforward question.
[2:22:41] Is there anything about the condition title environmental status historic
[2:22:46] constraints or regulatory framework that should cause us to walk
[2:22:50] away. Based on the work that has been completed. I
[2:22:54] did not believe there is. The buildings are fundamentally sound.
[2:22:59] No recognized environmental conditions were identified no title issue has
[2:23:03] been found that would prevent the cities use of the
[2:23:05] property and no regulatory obstacle has been identified that would
[2:23:10] preclude moving forward. We have done our due diligence and
[2:23:14] the report did exactly what it was set out to
[2:23:16] do. Just as importantly today is not a decision on
[2:23:21] a final City Hall plan housing density open space configuration
[2:23:26] library plans or any other specific future use. Those decisions
[2:23:31] come later with robust public input. The financial questions, of
[2:23:37] course, are important, our paramount. Staff has been clear that
[2:23:41] funding options will come back to the council before closing.
[2:23:45] They've been working on it consistently ever since we gave
[2:23:51] them this direction as a city goal. And tonight was
[2:23:53] more evidence of that hard and diligent work. So for
[2:23:57] me, the due diligence has done what it was intended
[2:23:59] to do. It has shown that this is a viable
[2:24:03] property and a significant long - term opportunity for more
[2:24:07] obey. I believe the responsible decision today is to preserve
[2:24:11] that opportunity and move forward with the acquisition. This obviously
[2:24:19] is a once in, well, we say once in a
[2:24:21] lifetime, it's once an eternity, because if we don't seeze
[2:24:24] this opportunity, it's gone and it's gone forever. So I'm
[2:24:30] proud. I believe I know the direction or I hope
[2:24:33] the direction that this vote is going to go tonight,
[2:24:37] uh, if we decide to acquire the property, I want
[2:24:39] to say that I am proud to be sitting on
[2:24:42] a council that has the courage and the vision to
[2:24:46] move this acquisition forward. Thank you. Thank you. Council Member
[2:24:52] Edwards. Yeah. Anybody that knows me knows that I'm a
[2:24:58] creative person. I'm a lover of, um, old buildings reuse
[2:25:04] repurposing the creative aspect of this project is absolutely exciting.
[2:25:09] The idea, even if it's the working scenario, a civic
[2:25:13] center that is inclusive of everyone, um, staff wise, that
[2:25:18] is brilliant. I just want to give a little bit
[2:25:21] of peppering here tonight of just some thoughts that I'd
[2:25:25] like everybody to go away with. Um, my eyes are
[2:25:29] wide open on this. And for me, it actually isn't
[2:25:33] that simple of a decision. Um, we were here, brought
[2:25:37] here tonight to determine whether or not we continue to
[2:25:41] perceive with the closing escrow and completing the purchase of
[2:25:44] Moreau Bay Elementary. By accepting the due diligence report, it's
[2:25:49] suitability findings. We're presented with the following. As Re mentioned,
[2:25:53] um, by ProTem Eccles. The one that stands out to
[2:25:58] me is totally investment that significant and partially offset by
[2:26:04] value streams identified leaving remaining funding requirements. This leaves me
[2:26:09] with questions and concerns. Is the balance of consideration a
[2:26:15] suitable moving forward. Part of my job as an elected
[2:26:19] is to approve our annual budget. This project or this
[2:26:25] working scenario was not budgeted in. Our annual budget and
[2:26:29] represent the community and its best interests, both establishing goals,
[2:26:34] long and short term and being fiscally responsible in delivering
[2:26:38] upon them with the help of our staff. This council's
[2:26:41] goals that were set forth were three, not just this
[2:26:45] one. One economic vitality, two infrastructure resiliency three, Morro Bay
[2:26:52] Elementary. It's important that I refer to this because nowhere
[2:27:00] in our goals set forth should we necessarily have to
[2:27:05] forgo one for another. It jeopardizes the ability potentially for
[2:27:10] us to pursue, um, other things that we need to
[2:27:15] finance with regard to our economic vitality and infrastructure resiliency
[2:27:19] goals. Perhaps we may be asked to prioritize those. Base
[2:27:26] our decisions on the economic climate and our budget balancing
[2:27:30] reality. I think it seems clear that most of us
[2:27:34] don't want to dip into our reserves, which are our
[2:27:38] emergency funds. And this is in reality not an emergency.
[2:27:44] Can we rationalize tonight with little time to digest the
[2:27:49] questions that we were given through correspondence and new financing
[2:27:53] information and only one site plan alternative to opine on.
[2:27:59] We've been unable to identify significant new revenue streams to
[2:28:04] compensate for our increased expenses and flattening out revenues. A
[2:28:10] seriously critical component of our first goal of economic vitality.
[2:28:15] We've looked at our reserve policy, as I said before,
[2:28:18] and to my knowledge, um, there was no, uh, desire
[2:28:22] to, to lower those and use that money. Although I'm
[2:28:28] happy we're getting to our five year capital improvement plan
[2:28:33] soon, very soon. I'm very happy about that. How does
[2:28:36] the purchase of this school affect our second goal of
[2:28:40] infrastructure resiliency? There is a component of this goal that
[2:28:44] I want to read here to include regular maintenance to
[2:28:48] prolong the life of existing infrastructure while implementing and prioritizing
[2:28:54] new ones. Staff has worked incredibly hard to get us
[2:28:58] here tonight to assist in our being able to deliver
[2:29:01] on our goals. This one being more obey elementary. The
[2:29:06] status update attached to consent agenda item 60 confirms this.
[2:29:11] I applaud them. Before I could deliver a vote on
[2:29:14] tonight's item, I needed to state all of this for
[2:29:18] the record and for the Public to hear. Because I've
[2:29:21] been struggling with this fiduciary obligation. And of course this
[2:29:26] is a wonderful opportunity that may come to fruition if
[2:29:31] we moved with a swift timeline with all the moving
[2:29:35] parts in play and being confident that this community can
[2:29:39] come together in agreement that the housing element is needed
[2:29:44] and necessary for this to happen. Thank you. Can I
[2:29:50] make a motion. Can I finish? Oh yeah. Thank you.
[2:29:56] I was just starting. I wanted to be the last.
[2:30:00] Thank you, council member Edwards. Um, I want to, um,
[2:30:04] share my gratitude also for Council Member Landerman Le Fay
[2:30:08] for their diligent work over this in the last year.
[2:30:11] And our city manager, um, who brought this project, this
[2:30:15] goal home in the first place, uh, in a short
[2:30:17] time that he was here moved this forward, um, and
[2:30:21] was able to negotiate a deal with the district that
[2:30:24] the council and the community found acceptable and has gone
[2:30:27] to the next step to find an option for funding.
[2:30:31] Without touching our city funds right now, um, someone talked
[2:30:37] about being a fiscal conservative. I think I consider myself
[2:30:41] a fiscal conservative. I'm self - employed. The others up
[2:30:44] here, we work very hard and are very cognitive of
[2:30:49] what our Reserve Funds are. They're the highest they've ever
[2:30:52] been. And we watch that piggy bank because it's your
[2:30:55] money. The decisions we make, we always weigh that in.
[2:30:59] It's your money. We're residents also when it costs you.
[2:31:03] It costs us. So, so we're very conscious and very
[2:31:06] cognitive. I think of it every time that I look
[2:31:09] at 120 million dollar sewer that was funded that's now
[2:31:13] at 100, almost 70 million that was done by our
[2:31:16] predecessor. So I'm very aware of what that can be
[2:31:21] and that cost and that burden to the community we
[2:31:24] see it constantly as the Project can't even close out
[2:31:28] at this point. Um, so, so I take it very
[2:31:31] seriously. I look at a task at Arrow City Hall
[2:31:35] when I go over there for meetings or to visit.
[2:31:38] And it's the most beautiful building. And it connects that
[2:31:42] downtown area with their park and the opportunity for moral
[2:31:46] elementary to be that space. To be that building for
[2:31:50] us is huge. I didn't go to school there. But
[2:31:55] my husband did. My kids did. So yeah, I have
[2:31:58] an emotional attachment and I'm not making this vote based
[2:32:01] on those emotions. I make in it based on this
[2:32:04] legacy idea of what that property can be for this
[2:32:07] community and what it means to the community moving forward,
[2:32:11] the opportunities are endless. And what we can do there.
[2:32:13] And I agree. I hope we can coalesce and come
[2:32:16] to decisions that we can all agree on or best
[2:32:19] we can do to agree on. And move forward. And
[2:32:23] the opportunity and the considerations, which again, are all conversations
[2:32:27] about City Hall being there is because that's allowed us
[2:32:29] an opportunity to utilize that space. For housing. It allows
[2:32:35] us the opportunity to not spend the money that would
[2:32:37] need to be reinvested into those buildings. Public works for
[2:32:40] people who don't know is in part of modular. I
[2:32:43] mean, it's, it's not even a real complete building. Sorry,
[2:32:47] Irland. But to maintain those and to consider upgrading those
[2:32:54] will cost millions of dollars. So that offsets some of
[2:32:58] what it's going to cost us to make that move.
[2:33:00] So I see those things as finding a balance as
[2:33:03] you move forward to weigh those out. The grants and
[2:33:05] the other opportunities. But, um, I feel that this opportunity
[2:33:10] will rival any other city hall. And that's my comments.
[2:33:15] We will, um, certainly be back soon. What future meetings
[2:33:21] for financial planning and discussions so that the community can
[2:33:24] be part of that. I think we're very fortunate to
[2:33:27] have this opportunity. And I would just say that, um,
[2:33:31] there's a comment about not having this in the budget
[2:33:35] based on what the city manager is telling me we
[2:33:37] don't have to address it for the next year because
[2:33:39] they're not requesting any funding. So, um, it gives us
[2:33:42] time to move forward and how to manage that and
[2:33:44] what that looks like. But it's not putting us at
[2:33:47] a deficit of our budget that we've already approved this
[2:33:49] year. So, um, any other comments before we move into
[2:33:53] a motion. Member Landry clarification on the motion or do
[2:33:58] you know? Is it the second? I need to do
[2:34:05] all three of them. Well, the motion's going to be
[2:34:08] one, two, and you have to do three A. Okay.
[2:34:10] And then I move that we receive and accept the
[2:34:13] Morro Elementary School site due diligence report and make a
[2:34:17] determination pursuant to Section 1. 5 of the purchase and
[2:34:21] sale agreement, whether to find the property suitable for city
[2:34:24] purposes and confirm the city's intent to purchase the property
[2:34:28] and proceed through the due diligence period. And based on
[2:34:32] the determination provide direction to staff on next steps, which
[2:34:36] are proceed to close of escrow and return to the
[2:34:40] city council in October with the final terms of the
[2:34:43] purchase, including the potential for seller financing. Do I have
[2:34:47] a second? I'll second that. I'm emotional. Second. Mr. Steck.
[2:34:51] NFA may real quickly Bryce Axety attorney here to confirm
[2:34:55] that item two we should delete the word weather. And
[2:34:59] it will make, it said, if you make a determinant,
[2:35:01] determination pursuant to Section 1. 5. Of the purchase and
[2:35:05] zero agreement to find. Can you strike that weather? Just
[2:35:08] wanted it clear for the record. Yep. You agree. I'm
[2:35:12] the second degree. I'll second. I agree. Okay. Thank you.
[2:35:16] Council Member Landrum. Yes. Councilmember Le Fay. Yes. Council Member
[2:35:22] Edwards. No. Council member Eccles. Yes. And Mayor Wixom. Yes.
[2:35:27] Motion carries 4 - 1.
[2:35:37] Thank you everyone. And we look forward to the continued
[2:35:40] participation as we move into the next phases. And, uh,
[2:35:44] I know Mr. Craig will have some information available on
[2:35:48] what that looks like any future agenda items. With that,
[2:35:55] we are adjourned. Thank you.