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HomeMy WebLinkAboutMin - CC - 2016.08.15 Burlingame City Council August 15, 2016 Approved Minutes 1 BURLINGAME CITY COUNCIL Approved Minutes Regular Meeting on August 15, 2016 STUDY SESSION a. WATER AND SEWER UTILITIES RATES USE STUDY DPW Murtuza introduced Alex Handlers from Bartle Wells Associates to present their water and sewer rate study for the City of Burlingame. In reviewing the City’s water and sewer rates, Mr. Handlers stated that BWA developed a 10 year financial projection that looked at how the City should set rates to maintain financial health. He explained that BWA’s goal was to recommend water and sewer rates that equitably recover the cost of providing service and position utilities for long-term financial health. Mr. Handlers gave a brief background of the study stating that the City has not completed a water or sewer rate study since 2012. He stated that the last rate increase for water occurred in January, 2015 and the last rate increase for sewer was in July, 2012. He explained that financial projections indicate that the City can hold off on any sewer rate increases for another year. Assistant Public Works Director Morimoto reviewed the City’s water system. He stated that the City has 107 miles of pipeline, 7 storage tanks/reservoirs and 2 pump systems. As well, he explained that 100% of the City’s water is purchased from SFPUC. He stated that although the City’s wholesale purchase of water has declined, that SPFUC’s rates have continuously increased. In looking at the City’s water system, he explained that the facilities are aging and much of the system is 70 to over 100 years old. He stated that as a result; there were ruptured water pipes; constant maintenance requirements; corroded water pipes causing inadequate pressure; and an inadequate emergency storage. Mr. Morimoto further explained that under the water system capital improvement program, the City performed studies to assess the 107 mile water system. He stated that the CIP master plan prioritized over $120 million of necessary improvements. At the time, Council approved rate increases to fund accelerated improvements through the issuance of bonds. Accordingly, the City completed $38 million of work including; replacing 22 miles of old deteriorated transmission and distribution pipelines, installing 1,600 water services and rehabilitating 1,200 linear feet of fire services. However, he stated that there was still $88 million of work that needed to be done. Moreover, he explained that the City reduced capital funding from $4.5 million to $2.5 million per year to soften the impact of the SFPUC wholesale rate increases. He stated that by completing $2.5 million of work on the water system a year, the backlog would be addressed in 30+ years. But if the City returned to $4.5 million a year, the backlog would be addressed in 15+ years. Burlingame City Council August 15, 2016 Approved Minutes 2 Next, Mr. Handlers compared water and sewer rates throughout the County of San Mateo. While Burlingame was in the upper middle range for water rates (average single family residential monthly water bill for Burlingame is $75.80), the City was in the lower range for sewer rates (average single family residential monthly bill for Burlingame is $55.13). Looking at the combined monthly water and sewer bills, the City was in the middle range for the County. Mayor Keighran asked how many of the cities listed received their water from SFPUC. Mr. Handlers responded that all but Montara. In reviewing water financials, Mr. Handlers stated that water rates are the main source of revenue and therefore they need to be set at adequate levels to fund operating and capital needs. In the past, he explained that the City maintained good financial stewardship by gradually raising water rates each year. These rate increases spared the City from needing to take emergency action to raise rates in response to drought and reduced water sales. However, because the City has not increased rates since 2015, rates have fallen behind the cost of providing service and the water enterprise faces a number of manageable financial challenges. Mr. Handlers stated that the four main financial challenges the City is facing in water rates are: (1) SFPUC wholesale water rate increases; (2) reduced water sales = reduced revenues; (3) capital improvement needs and rehabilitation of aging infrastructure; and (4) ongoing operating cost inflation. He discussed each challenge explaining its impact on the water rates. He focused on the SFPUC rate increases stating that since 2010, SFPUC wholesale rates have more than doubled. Mr. Handlers explained that a big part of the study was developing financial projections to evaluate annual revenue requirements and rate increases. He stated that based on the best information available and slightly conservative assumptions that the City should undertake rate increases over the next three years. He explained that projected rate increases while maintaining the $2.5 million minimum level of Capital funding would look like: 2016 2017 2018 2019 0% 9% 6% 6% And thereafter, the City would need to increase water rates by 3% annually. However, he stated that if the City wishes to restore the $4.5 million level of capital funding, the City would need to increase rates by an additional 10%. For example: 9%, 9%, 9%, 5% and 5%. In looking at the water rate structures, he stated that the City currently has tiered rates which residents pay on a bimonthly basis. He stated that while he is not recommending modifications to the rate structure, he is recommending reduction of fixed charges coupled with increases to water consumption charges and charging for each unit of water. Mr. Handlers showed examples of what the predicted impact would be on single family dwellings. He stated that families would most likely see an increase between 5-7 dollars a month (because the City bills on a bimonthly basis it would mean an increase of 10-14 dollars a bill), each year for the next three years. Lastly, he explained the next steps including notice, public hearing and establishing the new water rate to start in the new year. Burlingame City Council August 15, 2016 Approved Minutes 3 Councilmember Colson asked if in any of the scenarios the City will be able to pay off the necessary infrastructure or if the water system would require continuous maintenance like the golden gate bridge. Mr. Handlers stated that there is catchup to do but once it is completed the City will have minimal maintenance. DPW Murtuza agreed with Mr. Handlers. Councilmember Beach thanked Mr. Handlers for his explanation of the SFPUC rate increases and the situation it put the City in to decrease the allotted CIP funds. She discussed the fact that the City is not recouping its costs and asked what the cost was to the General Fund. Mr. Handlers stated that it was a few hundred thousand dollars. Councilmember Beach asked if the CIP funding was restored to $4.5 million could public works manage the increased amount of work. DPW Murtuza stated that staff would need to assess whether they could handle the increased work as it would essentially double the workload. Mayor Keighran asked if other cities are considering rate increases. DPW Murtuza stated that San Mateo is looking at increases to sewer rates. Mr. Handlers stated that both Redwood City and San Bruno were moving forward with rate increase studies. Vice Mayor Ortiz asked if the majority of the water utility expenses was paying for SFPUC water. Mr. Handlers replied in the affirmative. Vice Mayor Ortiz followed up by stating that the City does not have a choice but to buy their water from SFPUC. Mr. Handlers replied in the affirmative. Mayor Keighran echoed Vice Mayor Ortiz’s point and stated it was the job of the City and the Council to educate the community on the fact that the increase was due mostly to SFPUC. Councilmember Brownrigg asked if the other cities bill on a bimonthly basis like Burlingame. Mr. Handlers stated that it is different in each city. Councilmember Brownrigg asked that the City consider changing their billing to a monthly basis so that the rate increase was messaged better to the community. Councilmember Brownrigg asked what the justification was for the tiered rates. Mr. Handlers stated that the justification was the costs that the water system requires like the conservation program and peaking. Councilmember Brownrigg asked for the City to create bullet points on why some pay more than others. Mayor Keighran opened the item up for public comment. Former Mayor Rosalie O’Mahony, former Councilmember John Root, Burlingame residents Joe Lamariana, Pat Giorni spoke about the necessity of protecting the water and improving the water system. Councilmember Brownrigg stated that based on the presentation he supported the more aggressive rate increase of 9%, 9%, 9% over the next three years. He said this was based on the understanding that the City would be reinvesting in its own system. Burlingame City Council August 15, 2016 Approved Minutes 4 Vice Mayor Ortiz discussed the $4.5 million in capital funding and DPW Murtuza’s response that the workload may be too much for the City. Accordingly, he agreed with Councilmember Brownrigg’s accelerated schedule but for an increase that would result in a number between $2.5 and $4.5 million. Councilmember Beach stated her opinion that this was the right time for rate increases and thought that the City should establish the more aggressive rate schedule with an annual CIP of $4.5 million. Councilmember Colson stated that she was concerned about the rate increases being too high at 9%, 9%, 9%. She also discussed that because the infrastructure was going to last for 100 years, she believed that extending the payments over 30 years made more sense than 15 years. Mayor Keighran stated that the 9%, 9%, 9% was a little too high. She thought there should be a compromise in the middle. She asked that DPW Murtuza come back to Council with what he thought was reasonable for the City to increase the CIP funding as she didn’t want to overextend the public works department. 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 Tom Marriscolo. 3. ROLL CALL MEMBERS PRESENT: Beach, Brownrigg, Colson, Keighran, Ortiz MEMBERS ABSENT: None 4. REPORT OUT FROM CLOSED SESSION There was no closed session 5. UPCOMING EVENTS Mayor Keighran reviewed the upcoming events taking place in the City. 6. PRESENTATIONS There were no presentations. 7. PUBLIC COMMENTS Burlingame residents Julie Baird and Laurie Siminson came to wish the City a fond farewell. Burlingame City Council August 15, 2016 Approved Minutes 5 8. CONSENT CALENDAR Mayor Keighran asked the Councilmembers and the public if they wished to remove any items from the Consent Calendar. Mayor Keighran pulled item 8a, Councilmember Colson pulled item 8f and Councilmember Beach pulled item 8g. Vice Mayor Ortiz made a motion to adopt items 8b, 8c, 8d, 8e, 8h, 8i, 8j, 8k, and 8l; seconded by Councilmember Brownrigg. The motion passed unanimously by voice vote, 5-0. a. APPROVAL OF CITY COUNCIL MEETING MINUTES JULY 5, 2016 City Clerk Hassel-Shearer requested Council’s approval of City Council Meeting Minutes July 5, 2016. Mayor Keighran asked that on page 7, first paragraph, holidays be amended to federal holidays. Councilmember Colson made a motion to approve City Council Meeting Minutes of July 5, 2016; seconded by Vice Mayor Ortiz. The motion passed unanimously by voice vote, 5-0. b. APPROVAL OF CITY COUNCIL MEETING MINUTES AUGUST 1, 2016 City Hassel-Shearer requested Council’s approval of City Council Meeting Minutes August 1, 2016. c. OPEN NOMINATION PERIOD TO FILL TWO VACANCIES ON THE BEAUTIFICATION COMMISSION City Manager Goldman requested Council open up the nomination period to fill two vacancies on the Beautification Commission. d. OPEN NOMINATION PERIOT TO FILL TWO VACANCIES ON THE PARKS & RECREATION COMMISSION City Manager Goldman requested Council open up the nomination period to fill two vacancies on the Parks & Recreation Commission. e. OPEN NOMINATION PERIOT TO FILL TWO VACANCIES ON THE PARKS & RECREATION COMMISSION DPW Murtuza requested Council call for applications to fill an impending vacancy on the storm drain measure oversight committee. f. ADOPTION OF A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE AN AGREEMENT FOR PROFESSIONAL SERVICES WITH VERDE DESIGN, INC. FOR DESIGN SERVICES FOR MURRAY FIELD Parks and Recreation Director Glomstad requested Council adopt Resolution Number 82-2016. Burlingame City Council August 15, 2016 Approved Minutes 6 Councilmember Colson stated that one of the great things about installing a synthetic turf on Murray Field is that it uses less water thereby helping with conservation efforts. As well, she explained that currently the only turf fields in Burlingame are owned by the Burlingame School District and therefore it would be great to have a city owned turf field that also had lights. This would extend usage into the winter. Councilmember Colson asked about the responsibility of the City to inform Verde Design, Inc. about the different user groups of the turf field. Parks and Recreation Director Glomstad explained that this referred to setting up lines on the field. She stated that unlike a grass field where you can routinely reline the field, you can’t continuously reline a turf field. She explained that the decision on how to line the field would be done through the Parks and Recreation Commission assessing the needs of different user groups. Councilmember Colson stated that she believed it to be critical to get citizen input on how the fields are used in order to maximize their use. Mayor Keighran opened up the item for public comment. No one spoke. Councilmember Brownrigg made a motion to adopt Resolution Number 82-2016; seconded by Vice Mayor Ortiz. The motion passed unanimously by voice vote, 5-0. g. ADOPTION OF A RESOLUTION APPROVING THE APPLICATION FOR GRANT FUNDS FROM THE HABITAT CONSERVATION FUND PROGRAM Parks and Recreation Director Glomstad requested Council adopt Resolution Number 83-2016. Councilmember Beach thanked the Parks and Recreation Department for applying for the grant, as she explained it was a creative way to find funds to take care of Mills Canyon, a place that the community loves. Councilmember Brownrigg asked about the status of rebuilding the bridge that would provide access from Adeline. Parks and Recreation Director Glomstad replied that there were no current plans. Councilmember Brownrigg stated that it does cut off access to the park and he would like to find some way to make the park accessible to the public from Adeline. Parks and Recreation Director Glomstad and Public Works Director Murtuza both acknowledged the many difficulties with creating access to the park from Adeline. Mayor Keighran opened the item up for public comment. No one spoke. Councilmember Brownrigg made a motion to adopt Resolution Number 83-2016; seconded by Councilmember Beach. The motion passed unanimously by voice vote, 5-0. h. ADOPTION OF A RESOLUTION ACCEPTING THE NEIGHBORHOOD STORM DRAIN PROJECT #8, CITY PROJECT NO. 84320 DPW Murtuza requested Council adopt Resolution Number 84-2016. Burlingame City Council August 15, 2016 Approved Minutes 7 i. ADOPTION OF A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE A PROFESSIONAL SERVICES AGREEMENT WITH ESA TO PERFORM ENVIRONMENTAL REVIEW SERVICES RELATED TO THE PROPOSED COMMERCIAL DEVELOPMENT AT 1300 BAYSHORE HIGHWAY (SFO @ TECHNOLOGY CENTER) CDD Meeker requested Council adopt Resolution Number 85-2016. j. REJECTION OF ALL BIDS AND AUTHORIZATION FOR STAFF TO RE-BID THE VILLAGE PARK PLAYGROUND RENOVATION – CITY PROJECT #84430 Parks and Recreation Director Glomstad asked Council to approve of the rejection of all bids and authorize the staff to re-bid the village park playground renovation. k. ANNUAL RENEWAL OF THE BURLINGAME AVENUE AREA BUSINESS IMPROVEMENT DISTRICT (DBID): ADOPTION OF A RESOLUTION APPROVING THE 2015-16 ANNUAL REPORT, DECLARING THE CITY’S INTENTION TO ESTABLISH AND LEVY ASSESSMENTS FOR FISCAL YEAR 2016-17, AND SETTING THE REQUIRED PUBLIC HEARING FOR SEPTEMBER 19, 2016 Finance Director Augustine requested Council adopt Resolution Number 86-2016. l. QUARTERLY INVESTMENT REPORT, PERIOD ENDING JUNE 30, 2016 Finance Director Augustine requested Council approve of the quarterly investment report, period ending June 30, 2016. 9. PUBLIC HEARINGS There were no public hearings. 10. STAFF REPORTS AND COMMUNICATIONS a. INFORMATIONAL REPORT REGARDING REGULATION OF CIVILIAN DRONES City Attorney Kane presented the informational report regarding the regulation of civilian drones - unmanned aircraft systems. She stated that the FAA will be releasing new information about the regulation of civilian drones in December. She explained that there are varying layers of regulations on drone use from the federal layer of the FAA and its particularly stringent rules when you are within five miles of an airport (which Burlingame is) to the state layer where there are a number of bills the state legislature has placed or placed in the hopper on drones and their usage. As well, she stated that many municipalities are now establishing regulations concerning privacy and drones. She gave the example of Beverly Hills that passed an ordinance protecting an individual’s right to privacy on their property. She stated currently the FAA requires drone operators to register with the FAA and that the number they receive be displayed on the drone. Burlingame City Council August 15, 2016 Approved Minutes 8 City Attorney Kane went on to explain that the FAA has explicitly stated that its rules are not designed to preempt local regulation of drones, especially community-based safety standards. She gave the examples of using drones during fires, natural disasters or car collisions in order to assess the situations. However, she stated the FAA would be further clarifying regulations on this matter later in the year. She stated that Council did not need to wait for the FAA’s new regulations if they wished to pass more stringent regulations. City Attorney Kane asked Council for direction on how to proceed. Mayor Keighran asked if the City had received many complaints on the use of drones in Burlingame. City Attorney Kane stated that the code compliance officer has not received a complaint but that she knew the Council had received a complaint. Mayor Keighran asked if the City had noticed drone usage in the parks. Parks and Recreation Director Glomstad replied that drones were rarely seen. Vice Mayor Ortiz suggested waiting until the FAA and state release further regulations. Councilmember Beach agreed with Vice Mayor Ortiz. Mayor Keighran opened the item up for public comment. No one spoke. Mayor Keighran summarized the Council’s opinion that the City should wait to hear further from the FAA on what their new regulations would be prior to discussing any legislation. 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 Councilmember Brownrigg discussed the desire to promote public art and that this is an area that the Beautification Commission could take on. He stated that he would like the City and the Council to have a discussion about adding an art component to Beautification Commission’s mandate. Councilmember Beach seconded this idea. 13. ACKNOWLEDGEMENTS a. JULY, 2016 PERMIT ACTIVITY 14. ADJOURNMENT Mayor Keighran adjourned the meeting at 8:10 p.m. Respectfully submitted, /s/ Meaghan Hassel-Shearer City Clerk Burlingame City Council August 15, 2016 Approved Minutes 9