HomeMy WebLinkAboutMin - CC - 2017.10.16
Burlingame City Council October 16, 2017
Approved Minutes
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BURLINGAME CITY COUNCIL
Approved Minutes
Regular Meeting on October 16, 2017
1. CALL TO ORDER
A duly noticed regular meeting of the Burlingame City Council was held on the above date in the City Hall
Council Chambers.
2. PLEDGE OF ALLEGIANCE TO THE FLAG
The pledge of allegiance was led by Mike Horwitz.
3. ROLL CALL
MEMBERS PRESENT: Beach, Brownrigg, Colson, Keighran, Ortiz
MEMBERS ABSENT: None
4. STUDY SESSION
A study session was held at 6:00 pm in Conference Room A to discuss short-term rentals.
5. UPCOMING EVENTS
Mayor Ortiz reviewed the upcoming events taking place in the city.
6. PRESENTATIONS
a. HOME FIRE SAFETY INSPECTION CONTEST
Deputy Fire Marshall Christine Reed explained that October is National Fire Prevention Month. She stated
that the National Fire Protection Association’s theme this year is “Every second counts: Plan 2 ways out!”
She explained that using this theme, CCFD worked with the local schools to teach students about fire safety
concepts. The students were given a safety checklist and asked to go home and review the concepts with
their families. The students subsequently were entered into a Home Fire Safety Inspection Contest.
Deputy Fire Marshall Reed congratulated this year’s Fire Safety Inspection Contest grand prize winner: Ella
Grace Knight, a second grader from Hoover Elementary School. Congratulations to Ella!
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b. BUSINESS LANDSCAPE AWARD
Beautification Commissioner Kirchner began the presentation for the Business Landscape Award by
reviewing the past nine winners. He explained that the award recognizes the efforts of businesses in
Burlingame to beautify the city and encourage attractive landscapes in the community.
Commissioner Kirchner announced that this year’s winner of the Business Landscape Award is Coldwell
Banker Residential Brokerage; a slideshow showcased the building’s attractive landscape. Mike Horwitz
owner of Coldwell Banker was presented with a plaque and a Dale Perkins’ watercolor rendering of his
property. Thank you to Dale Perkins for your painting, and congratulations to Mike Horwitz.
7. PUBLIC COMMENT
There were no public comments.
8. CONSENT CALENDAR
Mayor Ortiz asked the Councilmembers and the public if they wished to remove any item from the Consent
Calendar. No items were pulled.
Councilmember Keighran made a motion to adopt the Consent Calendar; seconded by Vice Mayor
Brownrigg. The motion passed unanimously by voice vote, 5-0.
a. ADOPTION OF CITY COUNCIL MEETING MINUTES OCTOBER 2, 2017
City Clerk Hassel-Shearer requested Council adopt the City Council Meeting Minutes of October 2, 2017.
b. ADOPTION OF AN ORDINANCE ADDING SECTION 18.07.140 TO THE BURLINGAME
MUNICIPAL CODE REGARDING THE IMPLEMENTATION OF STATEWIDE
STANDARDS FOR THE INSTALLATION OF ELECTRIC VEHICLE CHARGING
STATIONS
CDD Meeker requested Council adopt Ordinance 1946.
c. ADOPTION OF AN ORDINANCE AMENDING CHAPTER 3.40.010 OF THE
BURLINGAME MUNICIPAL CODE REGARDING PLANNING COMMISSION
COMPENSATION
City Attorney Kane requested Council adopt Ordinance 1947.
9. PUBLIC HEARINGS
There were no public hearings.
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10. STAFF REPORTS AND COMMUNICATIONS
a. POTENTIAL USES OF HOUSING IMPACT AND COMMERCIAL LINKAGE FEES
Planning Manager Kevin Gardiner gave an overview of the staff report concerning the potential uses of
housing impact and commercial linkage fees. He explained that the City Council identified housing as one
of its four key priorities to focus on in 2017. In establishing housing as one of its key priorities, Council
indicated interest in updating the City’s housing policies to promote development of affordable housing for
lower-income individuals and members of the local workforce.
Mr. Gardiner explained that earlier this year, the City Council adopted an ordinance establishing commercial
linkage fees. He stated that over time, these fees will provide a dedicated source of funding for programs
supporting workforce housing in Burlingame. Additionally, he explained that staff will be asking Council to
consider a housing impact fee program. He asked that Council provide initial thoughts regarding the
appropriate “per square foot” fee amounts under the housing impact fee program so that staff can prepare for
later discussion of the housing impact fees.
Mr. Gardiner explained that the staff report provides an overview of potential uses of impact fees. He stated
that this is intended to provide a sampling of options but is not meant to be exhaustive. He noted that the
City received a letter from “Housing for all Burlingame” that outlined additional options. Accordingly, he
stated that staff is looking for Council’s direction on whether further possible uses of the fees warrant
research.
Mr. Gardiner introduced Armando Sanchez from HEART (Housing Endowment and Regional Trust) to
discuss the nonprofit organization’s mission to meet critical housing needs in San Mateo County by raising
both public and private funds. Mr. Sanchez explained that HEART has a dual status as both a JPA (19
member cities and County of San Mateo) and as a 501(c)(3) nonprofit. He stated that HEART’s JPA status
allows the organization to have access to public funds, and HEART’s 501(c)(3) status allows them access to
private donations and foundation grants.
Mr. Sanchez stated that to date, HEART has invested over $18.5 million and helped to create over 1,126
affordable units. He stated that the organization’s main focus is its loan program to housing developers. He
explained that HEART provides short-term, quick turn-around loans to assist with the early stages of project
development for nonprofit organizations like Mid-Peninsula Housing. He then reviewed a map that
displayed the projects that HEART had helped to fund up and down the Peninsula.
Mr. Sanchez discussed the $5 million loan the County of San Mateo provided HEART. He stated HEART
hoped that the County’s actions would encourage cities to lend their idle housing money to HEART so that it
could be invested in affordable housing. He explained that if cities were interested in loaning funds, the
loans would be short term to jump start projects. Cities would then be repaid their funds when they were
ready to develop their own housing project.
Additionally, Mr. Sanchez discussed HEART’s first-time homebuyer loan program. He explained that to
date, HEART has invested $4.3 million and assisted 75 families.
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Vice Mayor Brownrigg asked how the first-time homebuyer loan program worked. Mr. Sanchez explained
that HEART works in conjunction with Meriwest Mortgage to offer a combined loan amount of up to
$781,875.
Vice Mayor Brownrigg stated that one of the proposals in the staff report was for the City to loan its impact
fees to HEART until the City is ready to use them. He stated he wanted to understand the risks and the
returns if the City chose this option. Mr. Sanchez stated that HEART secures a majority of their loans
against property.
Vice Mayor Brownrigg asked if the loan was secured against the land, meaning that the developer already
owned the land, why the developer needed HEART’s loan. Mr. Sanchez stated that the loan was for pre-
development costs, and that these costs can be upwards of $2 million.
Vice Mayor Brownrigg asked if there was a rate of return to the City on the loan. Mr. Sanchez replied in the
affirmative, stating that HEART would be paying the interest rate of the County housing pool to cities on a
quarterly basis.
Councilmember Colson asked if the normal term for a HEART loan was three years. Mr. Sanchez replied in
the affirmative, stating that it can roll up to five years.
Councilmember Colson stated that after three to five years, the City would receive its funds back plus
interest. She asked if there was a callback provision to the loan. Mr. Sanchez stated that this would be a
negotiating point. However, he stated that ideally HEART intends the money to be a pool from various
cities, and therefore the money could be returned if necessary.
Mayor Ortiz opened the item up for public comment.
Burlingame resident Berta Schultz thanked Council and staff for the report and undertaking impact fees. She
stated that she felt impact fees should be used for purchase of current affordable units in Burlingame.
Burlingame resident Cynthia Cornell asked that Council look into using City lands for affordable housing
developments and developer incentives to create affordable units.
Burlingame resident Jennifer Pfaff talked about the need for traffic mitigation with the creation of these new
housing developments.
Mayor Ortiz closed the public comment.
Vice Mayor Brownrigg stated that the impact fees fund should be managed to maximize affordable housing.
He discussed the idea that the funds needed to be leveraged to have the biggest impact. For example, if the
City decided to use the funds to buy a building, it could take ten years and only help a few. Instead of that
option, he stated he was in favor of parking the impact fees at HEART, while the City increases funds and
finds projects. He stated that he was not in favor of using the money for rent subsidies because the funds
would end up in the pockets of for-profit landlords. Therefore, he didn’t believe this was the best use of the
funds.
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Additionally, Vice Mayor Brownrigg talked about using the money to help the non-profit sector acquire
affordable housing and ensure it remains affordable. He stated that he was in favor of the options that looked
to retain and maintain the housing stock.
Councilmember Beach asked Vice Mayor Brownrigg to elaborate on his idea that he wouldn’t want the City
to wait 10 years to buy a building and only assist a few people. Vice Mayor Brownrigg stated that he
thought the best use of the money would be to use it to assist organizations like Mid-Peninsula to obtain the
capital necessary to purchase a building. He discussed the idea that real estate was moving quickly and it
was difficult for nonprofits to amass the necessary capital to purchase a building. Therefore, he believed that
investing the money into non-profit affordable housing organizations would enable these organizations to
stretch City funds further to provide far more housing than if the City chose to save the funds until it could
buy an apartment complex.
Mayor Ortiz stated that Vice Mayor Brownrigg’s idea was to provide short-term bridge capital until the
nonprofit is able to stabilize the funding.
Councilmember Beach asked if Vice Mayor Brownrigg would envision this leveraging to be limited to
within the city limits. He replied in the affirmative.
Councilmember Beach stated that she agreed that the City needs to prioritize long-term solutions like below
market rate workforce housing using either city owned property or acquiring new property. She added that
she liked the idea of the City investing funds into HEART and bridge-capital. However, she stated that she
would like to see the City explore short-term solutions to assist community members. She stated that in
talking to housing experts, she believed that there should be need-based rent subsidies for those that are
vulnerable. She stated that if the City could help keep even 150 families from being displaced, she would be
interested in exploring rent subsidy options. She explained that she had reason to believe that there may be
resources outside of city staff, either at the County, or via non-profits or for-profits, that could administer a
rent subsidy program for the City.
Councilmember Beach stated that she would also be interested in using the funds as loans to developers to
bring their buildings in line with safety regulations in exchange for keeping rents at an affordable level.
Additionally, she asked staff to analyze and report back to the Council on what impact the new State housing
legislation will have on the City.
Councilmember Keighran stated that in looking at the RHNA (Regional Housing Needs Allocation)
numbers, the greatest need is the “very low” category of income. As a result of this need, she explained that
she would like to focus on short-term goals that would assist this group. She stated that she believed that
rent subsidies could work if the City focused on assisting those in the “very low” category. Additionally, she
discussed using rent subsidies for instances of extraordinary circumstances (health issues, divorce, etc) and
for the displacement of renters whose buildings were purchased.
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Councilmember Keighran stated that she liked the idea of leveraging the impact funds into a non-profit
organization’s housing project. She also suggested loan programs for landlords to bring their buildings up to
standards, with the condition that they maintain affordable units.
Councilmember Keighran stated that in regards to setting housing impact fees, she needed a little more
information. She discussed using a tiered system where fees increased with the size of the development/
number of units. She said she would also like to see how adopting housing impact fees in neighboring cities
has affected their development of housing. She asked if developers could be presented with the option of
either paying the housing impact fee or providing below market rate apartments. She also asked if a
prevailing wage discount would be included in the housing impact fees like it was for the commercial
linkage fees.
Councilmember Colson stated that in the staff report, table 5 is a list of proposed projects subject to
commercial linkage fees. She stated that currently, based on two projects in the pipeline, the total impact
fees range from $3.3 to $3.9 million, and that this is the start of the fund. She discussed approaching the use
of these funds like a pension fund and that Council needed to decide if funds would be expended as received
or saved and invested. She also discussed the new General Plan and how the amendments could create new
communities and areas for affordable housing.
Councilmember Colson stated that she agreed with Councilmembers Beach and Keighran about rental
subsidies for emergency situations. She stated that she was in favor of this because it allowed the City to
help those in the “very low” income category. She stated that she believed Council would be assisting those
in the “low” and “moderate” RHNA categories through the development planned for Lots F and N.
Councilmember Colson stated that she has worked with Armando Sanchez for the past few years and has full
faith in the work that HEART does. She stated that loaning funds to HEART for affordable housing
development would be great public policy. Additionally, she stated that the Council should think of first-
time home buyers. She stated that it is hard for individuals to purchase homes in the current market and
thought the City should consider working with HEART to create an affordable first-time homebuyer
program in the city.
Mayor Ortiz stated that as a lender who has been in the area for many years, one of his frustrations with the
first-time homebuyer programs is that the conforming loan limit has never allowed him to participate in
them. He stated that the loans are way too low for the Peninsula. He stated that first-time homebuyer
programs in the area would not be servicing low and very low income people; instead, they would be serving
moderate income people. Therefore, he didn’t think this was something the Council should pursue.
Mayor Ortiz stated that he liked the idea of providing funding to HEART to assist with affordable
developments even outside of the city. He stated that if the Peninsula cities pooled their funds together for
housing projects, they would be able to make a difference. He explained that if the City tried to just focus on
projects within the limits of Burlingame, the Council might lose out on good opportunities.
Mayor Ortiz stated that he liked the idea of emergency rent subsidies with a clear time limit. He explained
that his one concern with rent subsidies was who would administer the program.
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Mayor Ortiz stated that he liked Vice Mayor Brownrigg’s idea of bridge financing to assist nonprofits in
purchasing land for development. Additionally, he stated that he liked Councilmember Keighran’s idea of
using the funds to assist in refurbishing buildings with the commitment to keep rents affordable.
In regards to housing impact fees, Mayor Ortiz stated he liked the idea of a tiered system.
Vice Mayor Brownrigg stated that what he was hearing from Council is that his colleagues were interested in
rent subsidies for extraordinary instances. He stated that what Council needed to consider is how much the
City should spend a year for rent subsidies versus loaning money to nonprofits to build/repair affordable
housing. He stated that he didn’t have a number to throw out but that he did believe in curative solutions
versus palliative. He asked if any of his colleagues had considered how large the potential rent subsidy fund
should be.
Councilmember Colson responded that she had been thinking about this. She stated that if the City had a $4
million fund and assumed they were going to earn 5%, they would be earning $200,000 a year. Therefore,
the fund could have $200,000 a year for rent subsidies so as to not eat into the principal and allow the City to
invest in non-profit housing projects.
Councilmember Beach stated that if 50 families could be helped by $200,000 a year through an emergency
rent subsidy program, it would be worth it.
Councilmember Beach stated that as far as long-term goals, in talking with housing experts, she was told that
the City needed $3-6 million in seed money to acquire property and build units.
Councilmember Beach asked about Burlingame’s below market rate units where the affordability covenant is
expiring. CDD Meeker stated that most of those units that are currently in the program were designated
when the City had an inclusionary housing ordinance that only required units to be maintained for a period of
10 years at the moderate level of affordability. He stated that what the City has found is that most of those
units that are soon expiring are in higher-end developments where the cost of acquisition would be quite
high.
Vice Mayor Brownrigg stated that he appreciated Councilmembers Keighran and Colson focusing the
Council on the very low end RHNA numbers. However, he stated that he didn’t know exactly what this
meant and what kind of units they are and how to address the issue. He stated that he was adverse to long-
term subsidies because fundamentally you are just putting money into the landlords’ pockets.
Vice Mayor Brownrigg stated that on the idea of a displacement fund, he explained that he had a hard time
saying that public money ought to solve what is a private problem. He discussed the possibility of requiring
the buyer to assist displaced individuals by building in a cost to the sale of the building.
Councilmember Colson stated that if the fees coming in for the first year are $2 million, the City should set
aside two or three years of short-term operational funds to meet the rent subsidy needs. She stated that the
City could then invest money into HEART, while sorting out the new State housing legislation and looking
for additional funding.
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Vice Mayor Brownrigg stated that if Council chose to loan money to HEART, the City would be able to
regain those funds when Council identifies a use or project.
Councilmember Colson stressed the need to think creatively about how to finance projects and what they
might be able to do with the funds.
Vice Mayor Brownrigg discussed the fact that with the creation of an endowment for rent subsidies it would
necessitate the hiring of management, which would create an additional cost.
Mayor Ortiz asked if there was a nonprofit that could handle the endowment. City Manager Goldman
replied that the SF Chronicle’s Season of Sharing Fund could provide a model for the City.
Councilmember Beach stated that the Council would be foolish to make any steadfast plans tonight. Instead,
she thought that Council should wait to hear back from staff based on further research and analysis.
Councilmember Beach stated that she didn’t want to lose sight of the missing middle where household
income is $70,000 - $120,000. She stated that these individuals are spending a lot of their salaries on
housing and traveling two to three hours a day for work. Additionally, she stated that in talking with the
School District, she found that a family of four can qualify for free lunch if they make approximately
$32,000, and they qualify for reduced lunch if they make up to $45,000. She stated that this is one in ten
kids in the School District right now.
Councilmember Beach stated that HEART does a great job with the first-time homebuyer program but that
she didn’t believe that this was the best usage of City money as it would only help a handful of people.
In regards to housing impact fees, Councilmember Beach stated that she would like to explore setting fees at
a rate where it would be attractive for a developer to consider building below market rate unit(s) instead of
paying the fee.
Councilmember Colson stated that if they do give the public an option of either housing impact fees or below
market rate unit(s), she thought that the City should develop a specific menu from which the developer could
choose, whether it be very low priced units or moderate units, etc.
Vice Mayor Brownrigg asked why a couple cities had higher housing impact fees for apartments versus other
types of housing. Planning Manager Gardiner stated that he would have to get back to Council with more
information on this matter.
Vice Mayor Brownrigg asked if the City could require either below market rate units or housing impact fees.
Planning Manager Gardiner stated that this was a policy decision that other cities had made.
Vice Mayor Brownrigg stated that if he is asked to choose between requiring new developments to have
below market rate units or housing impact fees, he is not sure what he would require. He stated that he
would like to see Council discuss this further, as he believed that the stock of below market rate housing
would accumulate faster by giving developers the option.
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Mayor Ortiz stated that he would like to know how Measure T limits the City requesting below market rate
units. City Attorney Kane stated that pursuant to Measure T, the City can’t require developers to have below
market rate units.
Councilmember Colson asked if the City provided the developer the option of below market rate units or
housing impact fees, would it require a change in legislation (Measure T). City Attorney Kane stated that
staff would need to review how they are setting the fees, etc to ensure that they aren’t creating a situation
which is a compulsion versus an option. She stated that she would need to do further review to see if this
was a possibility.
Mayor Ortiz asked staff to make recommendations based on Council’s discussions and to bring back housing
impact fees for further discussion.
11. COUNCIL COMMITTEE AND ACTIVITIES REPORTS AND ANNOUNCEMENTS
Council reported on various events and committee meetings they each attended on behalf of the City.
12. FUTURE AGENDA ITEMS
Vice Mayor Brownrigg discussed extending the application deadline for the Traffic, Safety and Parking
Commission as one of the incumbents decided not to reapply.
Councilmember Colson stated that she believed this had happened with other commissions. Therefore she
advised that the Council should discuss extending for all commissions if an incumbent doesn’t reapply.
Vice Mayor Brownrigg asked that Council discuss suspending the requirement that to apply for a
commission seat, you must attend a meeting.
Council agreed to discuss both questions at the next meeting.
13. ACKNOWLEDGEMENTS
The agendas, packets, and meeting minutes for the Planning Commission, Traffic, Parking & Safety
Commission, Beautification Commission, Parks and Recreation Commission and Library Board of Trustees
are available online at www.burlingame.org.
14. ADJOURNMENT
Mayor Ortiz adjourned the meeting at 9:14 p.m.
Respectfully submitted,
/s/
Meaghan Hassel-Shearer
City Clerk
Burlingame City Council October 16, 2017
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