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Home My WebLink AboutAgenda Packet - CC - 2006.09.05 BURLINGAME CITY COUNCIL AGENDA City of Burlingame Regular Meeting—Tuesday,September 5, 2006 501 Primrose Road Burlingame,CA 94010 650 558-7200 Page 1 of 3 STUDY SESSION 6:15 p.m. Council Chambers a. Peninsula Avenue/Highway 101 Interchange traffic study scope of work 1. CALL TO ORDER 7:00 p. m. Council Chambers 2. PLEDGE OF ALLEGIANCE TO THE FLAG 3. ROLL CALL 4. MINUTES —Regular Council Meeting of August 21, 2006 Approve 5. PRESENTATION a. Presentation of Proclamation—One Book/One Community Presentation b. Present Life Saving Award to Local Citizen Presentation 6. PUBLIC HEARING The Mayor may limit speakers to three minutes each. a. Appeal of Beautification Commission denial of street tree Hearing/Action removal at 1812 Easton Drive b. Adopt Ordinance clarifying, updating, and making Adopt consistent various provisions of the Municipal Code 7. PUBLIC COMMENTS — At this time,persons in the audience may speak on any item on the agenda or any other matter within the jurisdiction of the Council. The Ralph M. Brown Act(the State local agency open meeting law)prohibits Council from acting on any matter that is not on the agenda. Speakers are requested to fill out a"request to speak"card located on the table by the door and hand it to staff. The Mayor may limit speakers to three minutes each. 8. STAFF REPORTS AND COMMUNICATIONS a. Sheriffs Work Program Direct b. Resolution approving the bond purchase agreement and Approve official statement in connection with pension obligation bonds and authorizing other related matters c. Parks and Recreation Commission vacancy and Discuss Beautification Commission vacancy d. Introduce an Ordinance to amend the definition of holidays Introduce for parking enforcement BURLINGAME CITY COUNCIL AGENDA City of Burlingame Regular Meeting—Tuesday, September 5,2006 501 Primrose Road Burlingame,CA 94010 650 558-7200 Page 2 of 3 9. CONSENT CALENDAR Approve a. Resolution approving traffic study scope of work for Peninsula Avenue interchange at U. S. Highway 101 and a cost sharing agreement with the City of San Mateo b. Adoption of Resolution urging support for the adoption of the Parks for the Future (Measure A) at the November 7, 2006 election c. Tentative Condominium map for a 45 unit condominium at 1840 Ogden Drive, - 0.89 acre portion of Block 7, Map of Mills Estate,No. 3 Subdivision d. Approve responses to 2005-06 Grand Jury Report and authorize the Mayor to sign them on behalf of the City Council e. Resolution approving professional services agreement for parking citation processing f. Resolution awarding an emergency contract to Hillside Drilling Co., Inc. for repairs at Mills Canyon Slide 10. COUNCIL COMMITTEE REPORTS 11. PUBLIC COMMENTS—At this time,persons in the audience may speak on any item on the agenda or any other matter within the jurisdiction of the Council. The Ralph M.Brown Act(the State local agency open meeting law)prohibits council from acting on any matter that is not on the agenda. Speakers are requested to fill out a"request to speak"card located on the table by the door and hand it to staff. The Mayor may limit speakers to three minutes each. 12. OLD BUSINESS 13. NEW BUSINESS a. Set hearing date for appeal of the Planning Commission's Set Hearing decision at 1520 Arc Way 14. ACKNOWLEDGMENTS a. Commission Minutes: Beautification, August 3, 2006; Parks& Recreation, August 17, 2006; Planning, August 28, 2006 BURLINGAME CITY COUNCIL AGENDA City of Burlingame Regular Meeting—Tuesday,September 5, 2006 501 Primrose Road Burlingame,CA 94010 650 558-7200 Page 3 of 3 b. Letter from Comcast concerning programming adjustment c. Memorandum to Council from City Manager concerning potential civic engagement efforts to be considered for resource grant 15. ADJOURN TO CLOSED SESSION CLOSED SESSION a. Conference with Labor Negotiator pursuant to Government Code § 54957.6: City Negotiators: Deirdre Dolan and Jim Nantell Labor Organizations: AFSCME, Locals 2190 and 829; BAMM; Teamsters Local 856; and Department Heads 16. ADJOURNMENT Notice: Any attendees wishing accommodations for disabilities please contact the City Clerk at 650 558-7203 at least 24 hours before the meeting. A copy of the Agenda Packet is available for public review at the City Clerk's office,City Hall 501 Primrose Road,from 8:00 a.m.to 5:00 p.m.before the meeting and at the meeting. Visit the City's website at www.burlingame.org. Agendas and minutes are available at this site. NEXT MEETING—Monday, September 18, 2006 CITiY016 BURLINGAME yq BURLINGAME CITY COUNCIL Unapproved Minutes Regular Meeting of August 21, 2006 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. Mayor Cathy Baylock called the meeting to order at 7:00 p.m. 2. PLEDGE OF ALLEGIANCE TO THE FLAG Led by Jean Silveira. 3. ROLL CALL COUNCILMEMBERS PRESENT: Baylock, Cohen, Keighran, Nagel, O'Mahony COUNCILMEMBERS ABSENT: None 4. MINUTES Councilman Cohen made a motion to approve the minutes of the July 17, 2006 regular Council meeting; seconded by Vice Mayor Nagel. The motion was approved by voice vote, 3-0-1 (Keighran and O'Mahony abstained). Councilwoman O'Mahony made a motion to approve the minutes of the July 19, 2006 adjourned regular Council meeting; seconded by Councilman Cohen. The motion was approved unanimously by voice vote, 5-0. 5. PRESENTATIONS a. PRESENT THE WINNER OF THE CHARRETTE LOGO CONTEST Mayor Baylock presented the following awards for the Charrette Logo Contest: First Place went to Councilman Russ Cohen who entered under a nom de plume. The two Runners Up were Don Donoughe and Maryam Refahi. Congratulations to all. All contest entries will be displayed in the City Hall foyer through September 30th, the date the Charrette will be held at the Recreation Center. b. PRESENTATION BY SUPERINTENDENT SAM JOHNSON ON THE HIGH SCHOOL DISTRICT BOND ISSUE Superintendent Johnson offered highlights of San Mateo Union High School District's Bond Measure M, which would provide continuation of the renovation and rehabilitation of older buildings and facilities. 6. PUBLIC HEARINGS 1 Burlingame City Council August 21, 2006 Unapproved Minutes a. ACTION ON AN AMENDMENT TO THE GENERAL PLAN AND BAYFRONT SPECIFIC PLAN IN ORDER TO COMPLETE IMPLEMENTATION OF SPECIFIC PLAN CP Monroe reviewed the staff report and requested Council hold a public hearing and approve a resolution amending the Bayfront Specific Plan. Mayor Baylock opened the public hearing. Pat Giorni, 1445 Balboa Avenue, spoke against some of the uses for the bayfront area. There were no further comments from the floor, and the hearing was closed. Councilwoman O'Mahony made a motion to adopt Resolution No. 58-2006 adopting an amendment to the Bayfront Specific Plan of the Burlingame General Plan to complete implementation of the planning process for the Bayfront Specific Plan Area; seconded by Vice Mayor Nagel. The motion was unanimously approved by voice vote, 5-0. 7. PUBLIC COMMENTS Beverly Fujitani of ThyssenKrupp Elevator Co. spoke on their bid for the City Hall elevator. Charles Voltz, 725 Vernon Way, advised that the next roundtable meeting discussion would be about charrettes on September 5 at Copenhagen Bakery. He also spoke on the use of potential revenue from the proposed Parks of the Future bond measure. Pat Giomi, 1445 Balboa Avenue, spoke on the Peninsula Interchange study session. There were no further comments from the floor. Mayor Baylock advised that there will be a televised Study Session on the Peninsula Interchange on September 5 at 6:15 p.m. in the Council Chambers. DPW Bagdon advised that notices inviting the public to attend are being sent out. 8. STAFF REPORTS AND COMMUNICATIONS a. ADOPT RESOLUTION NO. 59-2006 ESTABLISHING CITY COUNCIL'S INTENT REGARDING PROJECTS TO BE FUNDED FROM PROPOSED FLOOR PROTECTION AND PUBLIC SAFETY BOND MEASURE DPW Bagdon reviewed the staff report listing the improvements needed that are covered by the measure and requested Council adopt a resolution that describes the Council's intent with regard to the projects to be funded from the November 2006 ballot Bond Measure H. Councilwoman O'Mahony made a motion to adopt Resolution No. 59-2006 establishing the City Council's intent regarding projects to be funded from the proposed flood protection and public safety bond measure; seconded by Councilman Cohen. The motion was unanimously approved by voice vote, 5-0. b. PROVIDE DIRECTION ON PREPARATION OF SCOPE OF WORK INCLUDING REQUEST FOR PROPOSAL AND SELECTION OF A CONSULTANT TO PREPARE THE SPECIFIC PLAN FOR DOWNTOWN AREA CP Monroe reviewed the staff report and requested Council confirm staff plans to have the Mayor appoint two City Council members and two Planning Commissioners to a working group to assist the consultant in preparing the scope of work for the Downtown Specific Plan. 2 Burlingame City Council August 21, 2006 Unapproved Minutes Mayor Baylock stated that she would ask Planning Commission Chair Brownrigg to recommend two Planning Commissioners to the committee and requested interested Council members to contact her. Thus far, Councilmembers Keighran and Cohen have expressed interest. C. CONSIDER APPOINTMENT TO THE LIBRARY BOARD Mayor Baylock and Vice Mayor Nagel interviewed three candidates for the Library Board position. Vice Mayor Nagel made a motion to appoint incumbent Nancy Brock to the Library Board position for the full 3- year term; seconded by Mayor Baylock. The motion was approved unanimously by voice vote, 5-0. d. UPDATE ON BURLINGAME'S CENTENNIAL CELEBRATION P&RD Schwartz reviewed the staff report providing an update on the events planned for Burlingame's Centennial Celebration starting with a parade and kickoff ceremony on June 2, 2007, and ending with a Centennial Ball and fireworks on the City's 100th birthday, June 6, 2008. He stated that every event would provide opportunities to learn about Burlingame's history. The Marketing Committee is working on centennial merchandize and a commemorative magazine. A project is in the early planning stages to place a commemorative fountain on the west side of the Burlingame Train Station. Citizens who want to volunteer or have suggestions for events or for the commemorative fountain design should contact the City Clerk. e. INTRODUCE ORDINANCE MAKING, CLARIFYING, UPDATING AND MAKING CONSISTENT VARIOUS PROVISIONS OF THE MUNICIPAL CODE CA Anderson reviewed the staff report and requested Council introduce an ordinance making changes in the Municipal Code to update and clarify various provisions and to make provisions consistent with recent changes in the Zoning Code. Mayor Baylock requested CC Mortensen read the title of the proposed ordinance making clarifying and consistency amendments to various code sections of the Municipal Code and uncodified ordinances. Councilwoman O'Mahony made a motion to waive further reading of the proposed ordinance; seconded by Councilman Cohen. The motion was approved unanimously by voice vote, 5-0. Vice Mayor Nagel made a motion to introduce the proposed ordinance; seconded by Councilwoman O'Mahony. The motion was approved unanimously by voice vote, 5-0. Mayor Baylock requested CC Mortensen publish a summary of the proposed ordinance at least five days before proposed adoption. f. PARKS FOR THE FUTURE PROPOSAL TO FUND PARKS AGENCIES WITHIN SAN MATEO COUNTY P&RD Schwartz reviewed the staff report and requested Council determine whether or not to support the Parks for the Future bond measure to be placed on the November 2006 ballot. This measure would increase county sales tax to 8.375%. If the bond is passed by San Mateo County voters, anticipated revenues to Burlingame would be $300,681. Julia Bott, Executive Director of the San Mateo County Parks Foundation, responded to Council's questions and urged endorsement of Parks for the Future, Bond Measure A. 3 Burlingame City Council August 21,2006 Unapproved Minutes Mayor Baylock opened the floor for comments. Ron Weaver and Linda Dyson-Weaver, 1545 Burlingame Avenue, recommended Council support of this measure. There were no further comments from the floor. After Council discussion, CM Nantell advised that based on Council's feedback, a resolution to formalize support of this measure would be presented to Council at the September 5th Council meeting. 9. CONSENT CALENDAR Councilwoman Keighran requested removal of Item Nos. b., g. and k. from the Consent Calendar for further discussion. a. ADOPT A RESOLUTION NO. 60-2006 DESIGNATING VOTING DELEGATE FOR 2006 LEAGUE OF CALIFORNIA CITIES ANNUAL CONFERENCE CC Mortensen requested Council approve Resolution No. 60-2006 designating Vice Mayor Nagel as Burlingame's voting delegate to the 2006 League of California Cities Annual Conference. C. TENTATIVE CONDOMINIUM MAP AND TENTATIVE AND FINAL PARCEL MAP FOR LOT COMBINATION OF PORTIONS OF LOT 5, BLOCK 7, BURLINGAME LAND CO. MAP NO. 2 SUBDIVISION, 1512-1516 FLORIBUNDA AVENUE DPW Bagdon requested Council approve the Tentative Condominium Map and Final Parcel Map for a lot combination of portions of 1512-1516 Floribunda Avenue. d. FINAL CONDOMINIUM MAP FOR A 5-UNIT COMMERCIAL CONDOMINIUM AT 821 COWAN ROAD, PARCEL B-93, BLOCK 2, MAP OF EAST MILLSDALE INDUSTRIAL PARK UNIT NO. 1 SUBDIVISION DPW Bagdon requested Council approve the Final Condominium Map for a 5-unit commercial condominium at 821 Cowan Road. e. RESOLUTION NO. 62-2006 ACCEPTING THE MARSTEN OUTFALL PIPELINE PROJECT, PHASE 2, BY ANDERSON PACIFIC ENGINEERING CONSTRUCTION INC. DPW Bagdon requested Council approve Resolution No. 62-2006 accepting improvements of the Marsten Outfall Pipeline Project, Phase 2 by Anderson Pacific Engineering Construction, Inc. f. RESOLUTION NO. 63-2006 ACCEPTING EASTON CREEK SEWER REHABILITATION PROJECT BY J. HOWARD ENGINEERING DPW Bagdon requested Council approve Resolution No. 63-2006 accepting improvements of the Easton Creek Sewer Rehabilitation Project by J. Howard Engineering, Inc. h. RESOLUTION NO. 65-2006 ACCEPTING CHULA VISTA STORM DRAIN PIPELINE PROJECT BY CASEY CONSTRUCTION COMPANY DPW Bagdon requested Council approve Resolution No. 65-2006 accepting improvements of the Chula Vista Storm Drain Pump Improvements by Casey Construction Company. 4 Burlingame City Council August 21,2006 Unapproved Minutes i. RESOLUTION NO. 66-2006 TO REJECT ALL BIDS AND AUTHORIZE STAFF TO READVERTISE THE REPLACEMENT OF CITY HALL ELEVATOR PROJECT DPW Bagdon requested Council approve Resolution No. 66-2006 rejecting all bids for the City Hall Elevator Replacement Project. j. RESOLUTION NO. 67-2006 APPOINTING BAY AREA WATER SUPPLY AND CONSERVATION AGENCY TO REPRESENT BURLINGAME IN NEGOTIATIONS WITH SAN FRANCISCO PUBLIC UTILITY COMMISSION (SFPUC) FOR WATER PURCHASE AGREEMENT DPW Bagdon requested Council approve Resolution No. 67-2006 appointing the Bay Area Water Supply and Conservation Agency as the authorized representative of the City in discussions/negotiations with San Francisco for an agreement to provide a reliable supply of high quality water at a fair price. 1. ADOPT BUDGET AMENDMENT NO. 1 TO INCREASE FUNDING FOR CITY CLERK'S OFFICE FinDir Nava requested Council approve Resolution No. 69-2006 approving transfer of funds for Fiscal Year 2006-07 to cover the special municipal election expenses for the 2006 General Obligation Bond. M. APPROVAL FOR CHIEF BUILDING OFFICIAL TO ATTEND AN OUT OF STATE CONFERENCE DPW Bagdon requested Council approve out of state travel for the Chief Building Office to Orlando, Florida to attend the International Code Conference annual business meeting and code adoption final hearings in September 2006. n. APPROVE OUT OF STATE TRAVEL FOR FINANCE DIRECTOR FinDir Nava requested Council approve out of state travel for the Finance Director to San Antonio, Texas to attend the 92nd Annual Conference of the International City-County Management Association in September 2006. o. WARRANTS AND PAYROLL FinDir Nava requested approval for payment of Warrants #19843-20636 duly audited, in the amount of $2,043,073.52 (excluding Library checks#19843-19867 &20495-20526), Payroll checks #166041-166316 in the amount of$2,725,447.31 for the month of July 2006. Councilwoman O'Mahony made a motion to approve Item Nos. a., c. through f, h. through j., and 1. through o. of the Consent Calendar; seconded by Vice Mayor Nagel. The motion was approved unanimously by voice vote, 5-0. b. ADOPT A RESOLUTION NO. 61-2006 CORRECTING FEES FOR FIRE INSPECTION OF MULTIFAMILY DWELLINGS AND POLICE REPOSESSION OF VEHICLES; AND REVISING MASTER FEE SCHEDULE FOR PARKS & RECREATION DEPARTMENT FACILITY USAGE 5 Burlingame City Council August 21, 2006 Unapproved Minutes CA Anderson requested Council approve Resolution No. 61-2006 amending the Master Fee Schedule for Fire multifamily inspections, Police repossession charges, and Parks & Recreation facilities. Councilwoman Keighran asked about the fee changes for use of the playing fields. P&RD Schwartz advised that the rental rates of the large fields would be increased, and rates for the small fields would be decreased as opposed to charging the same rate without regard to size. The increased rates also reflect the high quality of Burlingame's playing fields. Councilwoman Keighran made a motion to approve Resolution No. 61-2006 amending the Master Fee Schedule for Fire multifamily inspections, Police repossession charges, and Parks & Recreation facilities; seconded by Councilwoman O'Mahony. The motion was approved unanimously by voice vote, 5-0. g. RESOLUTION NO. 64-2006 AWARDING STREET RESURFACING PROGRAM 2006 TO INTERSTATE GRADING AND PAVING, INC. AND APPROVE AN INCREASE IN FUNDING FROM PROPOSITION 42 FUNDS DPW Bagdon requested Council approve Resolution No. 64-2006 awarding the contract for the Street Resurfacing program 2006 to Interstate Grading and Paving, Inc. and amending the 2006-07 Capital Improvement Plan by adding Proposition 42 monies to the resurfacing program. Councilwoman Keighran asked about the bid amounts being higher than the engineer's estimate for the project. DPW Bagdon advised that the estimate was produced during the design phase of the project, and the largest bid item is for asphalt which is dictated by petroleum prices. Therefore, when the bids were received, they reflected the current higher cost of petroleum and the potential for increased costs. Also, the amount of asphalt actually used might be more than the estimate due to unforeseen needs to complete the project to City standards. Vice Mayor Nagel made a motion to approve Resolution No. 64-2006 awarding the contract for the Street Resurfacing Program 2006 to Interstate Grading and Paving, Inc. and amending the 2006-07 Capital Improvement Plan by adding Proposition 42 monies to the resurfacing program; seconded by Councilwoman O'Mahony. The motion was approved unanimously by voice vote, 5-0. k. RESOLUTION NO. 68-2006 AWARDING TREE PRUNING AND STUMP REMOVAL, 2006- 07 TO TIMBERLINE TREE SERVICE, INC. P&RD Schwartz requested Council approve Resolution No. 68-2006 awarding the contract for Tree Pruning & Stump Removal 2006-07 to Timberline Tree Service, Inc. Councilwoman Keighran asked about the locations for tree pruning and stump removals. P&RD Schwartz advised that the areas selected for this contract have tree trimming needs that require special equipment. Timberline has the equipment needed to manage the taller trees in those areas. Councilwoman Keighran made a motion to approve Resolution No. 68-2006 awarding the contract for Tree Pruning & Stump Removal 2006-07 to Timberline Tree Service, Inc.; seconded by Vice Mayor Nagel. The motion was approved unanimously by voice vote, 5-0. 10. COUNCIL COMMITTEE REPORTS Council reported on various events and committee meetings each of them attended on behalf of the City. 6 Burlingame City Council August 21,2006 Unapproved Minutes Mayor Baylock asked Council's input on formatting the Joint City Council/Chamber of Commerce meeting scheduled for September 18 in the Council Chambers at 6:15 p.m. After Council discussion, the consensus was to proceed with the meeting as a study session which would be open to the public. 11. PUBLIC COMMENTS John Root, 728 Crossway Road, spoke on Parks for the Future. Pat Giorni, 1445 Balboa Avenue, spoke about the current mail-in hospital ballot. There were no further comments from the floor. 12. OLD BUSINESS a. DIRECT STAFF ON POSSIBLE STUDY SESSION FOR CAMPAIGN FINANCE REGULATIONS AND SET DATE FOR STUDY SESSION CA Anderson reviewed the staff report and requested Council discuss whether to schedule a study session on possible campaign finance regulations and to direct staff with regard to specific aspects to be researched for the study session. After Council discussion, issues of interest included a limit on contributions, a limit on loans, and placing campaign disclosures online. Council agreed to hold the study session after the November election. b. SUBCOMMITTEE UPDATE ON SAFEWAY NEXT STEP Councilwoman Keighran met with Safeway's consultants for a tour of the site. Safeway consultants are open to suggestions and plan to attend the Charrette on September 30`h. The Council subcommittee plans to meet with Safeway after September 30`h and provide Council with an update at their regular meeting on October 16. c. WORK FURLOUGH PROGRAM Councilwoman Keighran asked for an update on the County's Work Furlough Program. CA Anderson advised that an update would be provided to Council at their regular meeting on September 5. 13. NEW BUSINESS a. REQUEST TO SET HEARING DATE FOR APPEAL OF TREE REMOVAL AT 1812 EASTON DRIVE Council set September 5, 2006, as the hearing date for the Beautification Commission appeal of tree removal at 1812 Easton Drive. b. UPDATE ON COMMISSIONERS ATTENDANCE AT MEETINGS After discussion, Council directed staff to prepare a letter for the Mayor's signature directed to all commissioners reminding them of the City's attendance standards, including the issue of tardiness, and to remind commission chairs of their responsibility to discuss absenteeism and tardiness with their commissioners. 7 Burlingame City Council August 21,2006 Unapproved Minutes c. PENINSULA INTERCHANGE STUDY SESSION Mayor Baylock reminded the audience of the televised Study Session on the Peninsula Interchange to be held on Tuesday, September 5, at 6:15 p.m. in the Council Chambers. 14. ACKNOWLEDGMENTS a. Commission Minutes: Traffic, Safety&Parking, June 8, 2006; Library, June 20, 2006; Beautification, July 13, 2006; Planning, July 24 & August 14, 2006 b. Department Reports: Police, June &July 2006; Finance, June &July 2006; Building, July 2006 c. Three letters from Comcast concerning programming adjustment d. Letters from Samaritan House; Sustainable San Mateo County; Jobs for Youth; Call Primrose; Parca; Ombudsman Services of San Mateo County; Community Gatepath; Youth and Family Enrichment Services; Burlingame Historical Society; Community Overcoming Relationship Abuse; and Mission Hospice gratefully acknowledging the City's donation to their organizations e. Letters from Comcast and RCN advising the finance Director that they do not offer senior citizen discounts Vice Mayor Nagel reminded staff that Mel Feldman had requested this information. 15. ADJOURNMENT TO CLOSED SESSION Mayor Baylock adjourned the meeting to the Closed Session at 10:25 p.m. in memory of Sister Diane Grassilli of the Sisters of Mercy. CLOSED SESSION CA Anderson advised that Council met in closed session and directed staff regarding the following: a. Threatened Litigation (Government Code §54956.9(B)(1),(3)(C))—Claim of Angela Ostini 16. ADJOURNMENT Mayor Baylock adjourned the meeting at 10:42 p.m. Respectfully submitted, Doris J. Mortensen City Clerk 8 Burlingame City Council August 21,2006 Unapproved Minutes Item 5.a. Mtg: 9/5/06 Cathy, The following is per Al Escoffier: The proclamation recipient will be Trustee 4�WJJ I w (Al Escoffier will be here also.) Additionally, Kris Cannon may wish to speak; her brother is Stephen Olsson, the Emmy award-winning filmmaker of Last Images of War- a presentation at the Library on October 11th. Doris yd- BU LINGAME PROCLAMATION One Boob One CommunitN:Burlingame Reads "The Kite Runner" October 2oo6 Wbereas, One Boob One CommunitN reading programs have success f ut(N united communities tbrougbout the United States;and Whereas, reading and discussing great literature can builb common ground between neighbors;and Whereas, Afghani pbNsician and BaN Area resident,Kbaleb Hossein has written a novel that incorporates the theme of immigration to the United States and illustrates the culture and traditions of the people of A f ghanistan;and Whereas, The Kite Runner is a coming of age novel encompassing the universal themes of f rienbship and redemption;and Whereas, the Peninsula Libraq sNstem's San Mateo CountN Libraries have partnered to produce the One Boob One CommunitN: San Mateo CountN Reads, communitN wide program throughout the CountN of San Mateo;anb Whereas, the communitN is encourages to read The Kite Runner and attend various scbebuleb events being bels at all of the public libraries in San Mateo CountN buying the month of October, wbich will provibe opportunities to share personal stories,biscuss the books themes anb abbress its relevance to Burlingame resibents; anb Wbereas, Kbaleb Hosseini will appear at the San Mateo Performing Arts Center on October r9tb,2oo6. NOW, THEREFORE, BE IT RESOLVED, that I, CatbN BaNlock Mallor of the CitN of Burlingame,bo bereb-N proclaim October 2oo6 as "One Boob One CommunitN:Burlingame Reads The Rite Runner." In witness wbereo f,I have hereunto set mN banb anb causeb the seal of the CitN of Burlingame to be a f f ixeb this 0 baN of September 2oo6 CatbN BaNlock Mallor ciTY p STAFF REPORT AGENDA B4iRLINGAME ITEM# 6a MTG. DATE 9/5/06 Ani w,JIIK� TO: HONORABLE MAYOR AND CITY COUNCIL SUB ED BY ) Q DATE: August 3, 2006 APPR D FROM: Parks &Recreation Director (558-7307) BY SUBJECT: TREE REMOVAL AT 1812 EASTON DR. RECOMMENDATION: It is recommended that Council conduct a public hearing and determine whether or not to uphold the recommendation of the Beautification Commission denying the removal of the City street tree at 1812 Easton Dr. BACKGROUND: In December 2005, Ms. Schneider, the property owner at 1812 Easton Drive, requested the removal of the City owned Cypress in the front parking strip of their house because it has uplifted the driveway, sidewalk and fence. In the December 2004 evaluation of all the trees on Easton as part of the Park Division's routine maintenance, certified arborist Kevin Kielty of Mayne Tree Expert Company rated this particular tree in "fair" condition. Staff performed a Hazardous Tree Evaluation and rated the tree"medium" and determined that shaping, and pruning was sufficient enough to save the tree for an additional few years. In April of 2006, Mr. Kielty again evaluated the tree and reported that the tree is over-mature, in decline, and has caused property damage. Mr. Keilty also reports that the tree does not appear to be an immediate hazard, diseased or in immediate need of removal. The request was neither denied nor approved by staff but was forwarded to the Beautification Commission since they were working on a reforestation plan for Easton Drive. During the July 13th Beautification Commission meeting, staff presented three options to the Commission. 1. Allow removal in Fiscal Year 2006-07 based on Kielty's most recent findings 2. Deny current removal based on Kielty's most recent findings. 3. Withhold a ruling until the Easton Drive Reforestation Recommendation has been presented to Council. The Commission determined that the tree was healthy and removal was denied. "Commissioner Grandcolas asked how long the life span of this tree might be. Mr. Kielty stated anywhere from 5 to 25 years;that the foliar condition is good,but the tree has some decay issues at the top. Commissioner Grandcolas confirmed with Kevin Kielty that the tree is not posing a danger. Mr. Kielty stated that the tree is in a lousy spot, but not bad. Following the discussion, Commissioner Grandcolas stated that he believed there was no compelling reason to approve removal of the Cypress tree at this time. Commissioner O'Connor then moved that the appeal for the removal of the Cypress tree be denied because the tree is a healthy tree, seconded (Grandcolas). Motion carried 6—0—I (absentlEahey)." At staff's request and in an attempt to alleviate the problem with the uplifted driveway, the past homeowner removed a portion of the driveway and replaced it with gravel. Root pruning was not an option since the driveway is within or close to root flair. The cypress was appraised by Mr. Kielty of Mayne Tree Co. for a value of$19,548.00 in April of 2006. Council should consider these options: 1.Deny removal based on Mayne Tree Co. report that tree does not pose immediate danger. 2. Uphold appeal and allow removal at home owner's expense based upon report that tree does not pose immediate danger. 3. Uphold appeal and allow removal at City expense based on reports that tree is in decline and causing damage to property. 4. Withhold decision until the Beautification Commission report of Easton Reforestation plan is adopted. BUDGET IMPACT: Cost for removal of tree and stump by City contractor is estimated at $3,200. ATTACHMENTS: Beautification Commission Minutes Hazardous Tree Evaluation Mayne Tree Co. Evaluation Mayne Tree Co. Appraisal report Letter of appeal from Judy Schneider dated July 31, 2006 3eautification Cammission Ifeeting Minutes— Juiv 13 2006 fExcervtl Reguest for the Removai of a C-3ty-owned Cygress at 1312 Easton Ld nuc Yo Damage to Drivewav and Private Brick Fencing— The Commission reviewed Arborist Report from Kevin Kielty (Mayne Tree) and a Hazardous Tree Evaivation from Supervisor Disco. 3ased on mallet and drill testing as indicated in i4r. Kielty's report, the Cypress tree leas been given a 55 rating, which fails in the 50-69 "Fair" category anddoes not pose an apparent immediate hazard. The driveway has had a 3 foot section removed and replaced with pea gravel to help reduce root damage and asphalt has been placed in areas to relieve tripping hazards. Supervisor Disco's Hazardous Tree fvaivation gave the Cypress tree a hazard rating of 8 (medium), but that the hazard can be abated by thinning and shaping (reducing the end weight) which would save the tree for an additional few years; noting that root pruning could not be done because the hardscape is next to the root buttress of the tree. Supervisor Disco stated that he met with the previous property owner with the same issues over a year ago and the cuts to the driveway and placement of pea gravel were conducted to change the elevation. He noted that because of the Easton Drive reforestation still being considered he denied the request for removal and referred the applicant to the Beautification Commission for further consideration. Chairperson McQuaide asked if the iron gate could be putting stress on the brick and causing the damage. N[r. Kielty and Supervisor Disco both agreed that it was the roots that are causing damage to the back fence. Commissioner Grandcolas asked how long the life span of this tree might be. Mr. Kielty stated anywhere from 5 to 25 years; that the foliar condition is good, but the tree has some decay issues at the top. Commissioner Grandcolas confirmed with Kevin Kielty that the tree is not posing a danger. Mr. Kielty stated that "the tree is in a lousy spot, but not bad". Following the discussion, Commissioner Grandcolas stated that he 'believed there was no compelling reason to approve removal of the Cypress tree at this time. Commissioner 0-,6nnor then moved that the .appeal jor the removal of the Cypress -tree he denied because the tree is a ,healthy tree seconded (Grandcolas). Motion carried S — 0 — 1 (absent/Eahey). City of Burlingame - Parks & Recreation Dept. 850 Burlingame Ave., Burlingame, CA 94010 �4 BURLINGAME phone: (650) 558-7300 • fax: (650) 696-7216 3 recreation@,burlingame.org HAZARDOUS TREE EVALUATION Date: .= 1a Site: f Evaluated by: . 7>t Species: .` Owner: V' City _Private Unknown Tree Health Foliage color: _Normal +o,chlorotic dead Foliage density: _normal /sparse Annual shoot growth: _excellent _average moor Twig Dieback: )Y)N Woundwood development: _excellent average ___poor none Vigor: _excellent _average fair _poor Major pests/diseases: Site Site character: t-�residence _commercial _park _easement Landscape type: _mulch pavement _lawn marking strip shrub border Irrigation: 'none _automated _excessive _inadequate Recent site disturbance? Y L Nva _construction _soil disturbance _rade change _sidewalk replacement 00>- Pavement lifted: N % dripline paved: _0% _10-25% _50-75% 75-100% Soil: V'compacted moor drainage _clay —sandy/loam fill good Obstructions: _overhead lines underground utilities _adjacent veg. —Signs/poles ;none Exposure to wind: _single tree art of a grove _recently exposed windward. canopy edge Prevailing wind direction ',f. -e S-+- s, Taraet Use under tree: V'house _building _�6arking _traffic pedestrian _recreation Y,'fandscape oardscape _utility lines Occupancy:_occasional use _intermittent use _frequent useconstant use Tree defects: Root defects: Suspect root rot: Y& Mushroom/conk/bracket present:Y N ID Exposed roots: _severe _moderate Vellow Root pruned: tA,04distance from trunk Root area affected % Buttress wounded: YON When Restricted root area: severe °"moderate low Potential for root failure: sever t-`moderate low Lean: _deg.from vertical: _natural _unnatural elf corrected _severe moderate _low Soil uplifting/cracking Roots: _girdled _kinked _circling _broken i""unknown Crown defects: Defect Root Crown Trunk Scaffolds Branches Poor taper Bow,sweep condominants Multiple attachments Included bark Excessive end weight ✓ Cracks/splits ,r Hangers Girdling Wounds/seam yr Decay Cavity Conks/Mushrooms Bleeding/sap flow Loose/cracked bads Nesting hole/bee hive Deadwood/stubs Bores/termites/ants Cankers/galls/burls Previous failure 9A F Hazard Rating 0 Tree part most likely to fail: ,, ' Inspection period: annual biannual other Failure Potential + Size of Part + Target Rating = Hazard Rating + + Failure Potential: 1 —low; 2 —medium; 3—high; 4— severe Size of part: 1-<6"; 2—6-18"; 3— 18-30"; 4-a30" Target rating: 1-occasional use; 2- intermittent use; 3-frequent use; 4- constant Ratings: 3-12 3=10w hazard; 12 significant hazard o Hazard Abatement Prune: remove defective part educe end weight own clean \o-o-thin _raise canopy crown reduce restructure "_shape Inspect further: root crown _decay aerial _monitor Remove tree:;Y) N Rep lace? N Move target: Y ``N Other Comments: rt // 1 40 i � /J �L,., ,. `-i'' f t 6 Adopted from: Evaluation of Hazard trees in Urban Areas: second edition; by Nelda Mathenv &James Clark: c.1994 i+ Mav,jae Trele Expert C01-11]- ESTABLISHED 1931 STATE CONTRACTOR"S LICENSE NO.276793 GRADUATE FORESTER CERTIFIED ARBORISTS PEST CONTROL ADVISORS AND OPERATORS RICHARD L.HUNTINGTON 535 3RAGATO ROAD,STE.A PRESIDENT SAN CARLOS,CA 94070-6228 KEVIN R.KIELTY April 25, 2006 TELEPHONE: (650)593-4400 OPERATIONS MANAGER FACSIMILE: (650)593-4443 EMAIL: infonmaynetree.-Com Attn: Robert Disko Parks and Recreation Dept. City of Burlingame 850 Burlingame Avenue Burlingame, CA 94010 Re: 1812 Easton Avenue Dear Mr. Disko: At your request, on Friday, April 7 and again on Tuesday, April 18, 2006, I visited the above site. The purpose of my visits was to inspect and comment on the large cypress tree in front on the City planting strip. Observations: The Monterey cypress, Cupressus macrocarpa, has a diameter at breast height of 49.8 inches. The tree is approximately 45 feet tall, with a spread of 50 feet and is 6 inches from the driveway. The foliar color is good but the shoot growth is below normal. Several scars on the trunk exhibit exposed xylem (sapwood). Pruning History: The cypress has been well maintained in the past and is well balanced. The tree was topped in the past; this may have been done to remove a dead top. In addition, the limbs were shortened to reduce the chance of limb drop. Damages Caused By This Tree: The sidewalk was repaved in 1992 and has since been lifted by the tree. Asphalt has been placed in areas to relieve the trip-hazard. The driveway has had a 3 foot section removed and replaced with pea gravel to help reduce root damage. Brick pillars which hold the gates have been lifted and are no longer plumb. The remainder of the drive- way has been lifted. Burlingame Parks & Rec. Dept/Disko 4-25-06, Pg. 2 Tests: A mallet test was performed to hear any hollow spaces in this tree. This is a test which helps identify cavities in a tree and, in this case, no cavities were detected. A drill test was performed in the area approximately 4 feet above ground where xylem has been exposed due to cankers or injury by equipment. The test results were that a solid, dead core was found approximately 6 inches below the live bark edge. This is the location of the exposed xylem and the wood at that point is solid, but dry (common with this species). Root crowns were inspected by cutting into the bark with a chisel and inspecting the tissue beneath. Some decay was noted, but most tissue was alive and solid. Summary: This large Monterey cypress is an over-mature tree. This tree will continue to decline and is a good candidate for replacement as a reforestation project. This cypress has caused property damage for years on this site. However, it is a part of the tree-lined street which gives Easton Drive its distinction. The tree does not appear to be an immediate hazard as it is large-bottomed and has a fairly small foliar canopy. Surface roots do have decay; however, I believe this is an equipment injury and not a disease- caused problem. Location of the tree is also problematical. Removal is not an immediate need, but this should be one of the first trees removed. I believe this report is accurate and based on sound arboricultural principles and practices. Please call if you have any questions. Sincerely, f �a�1ETY OF q Kevin R. Kielty Certified Arborist E #0476A °�.► � ��'��'�� KRK:dcr z m ��9TTIED AA��P-'� � S` � ate: a�� '=r'.i'�� *♦ '� '� .S� � � � - ', e. t�:q• n ,x�. ,� �?'+'t�4 art+ i^`' �:r 1 R J YM1 {{ r J �- ..•" _ . pu` r Driveway damage from roots and pea gravel used to help relieve it. $ � s �, � t a.�vr ♦� 4 too I ,4 Ot e 4 k Lot AI A d¢ b- a - � - . . « { . , . , . COXQ#: - »_. »: y : ^ � a \ { « m � « - \ . . . . . ; . . Re flags mai locations fordq| t kS TREE HAZARD EVALUATION FORM All sections of this form must be fully completed by a certified arborist. Site/Address: I Map/Location: HAZARD RATINGS - Owner: public�nvate❑ unknown❑ other❑ Failure + Size + Target = Hazard Potential of part Rating Rating Date: Arborist: Kevin R.Kielty-ISA#:WE#0476A ❑Immediate action needed ❑Needs further inspection ❑ Arborist's Signature: Dead tree TREE CHARACTERISTICS Tree#:_ Species: u ` DBH:�nches #oftmnks:� Height:/ feet Spramt:50 feet Form: a 7generallysymmetrk Ominorasymmetry Omajor asymmetry pstump sprout Ostag-headed Crown Class: dominant Oco-dominant ❑intermediate []suppressed Live crown ratio:Ji0 % Aga Class: 0yo�ung Osemi-mature Omature mature/senescent Pruning History. crownc�leaned[]excessively thinned propped Ocrown raised Opollarded cmwn reduced[]gush cuts ocabled/braced ❑none amu�lboe pruning events Approx dates: Special Value:[]specimen Jpnenizge/historic Owildlife[]unusual Ostmettree Oscmen Canada[]indigenous Oprotected by gov.agency TREE HEALTH Foliage Cover. orrial Ochl�orottc Onecrotic Epicormks? N Growth obstructions: FoOage Density:Onormal gparse Learsize:[]normalmall 12stakes Owire/ies Osigns Ocables. Annual shoot growth:[]excellent Oawmge Opoor Twig Dleback?Y N OcurNpavemerd []guards Woundwood development:[]excellent rage Opoor Onone []other Vigor class:[]excellent[]average JErfair Opoor Major pestsldleeases: SITE CONDITIONS Sha Character. reside []commercial[]industrial Opark[]open space[]natural Owcodlandtforest Landscape type: parkway Oraisedbed Ocuntainer[]mound Olawn Oshmbborder Owindbreak Irrigatlon: one Oadequate[]inadequate[]excessive Ctmnkwettled Recent site disturbance?Y N []construction Osod disturbance0g�rade change Oline clearing[]site clearing %dripline paved: C❑�,0O%:: 010-25% 025-50% 090-75% 075-100% pavement lMed-Y N %dripnne wMM soil: 0��6% 010-25% 025-50% 050-75% 075-100% %dripldnegradaiovimed: Jam% 010-25% 025-50% 050-75% 075-100% Soil problems:0drainage[]shallow Ocompacted[]droughty[]saline Oalkaline Oacidic Osmallvolume[]diseasecenter Ohistoryoffail Oclay pexpansive Oslope o aspect_ Obstructions:plights[]signageOlin f-site Oview[]ovemeadlines Oundergroundutilibes Otraffic Oadjacentwg.0_ Exposureto wind:Osingle tree low canopy[]above canopy❑recently exposed[]windward,canopy edge Oarea prone to windthrow prevailing wind direction: Occurrent.ofsnowfiice stones:J ver[]seldom pregularly TARGET DSe Dnder Tree:building Sparking Iptrafic ppedesMan Omcreabon Ofedri.p. {d1iardscape psmalifeatures Outilitylines Can target be moved?Y0 Can use be restricted?Y& Occupancy:[]octasi.naluse ❑intermittentuse Ofrequentuse onstantuse TREE DEFECTS ROOT DEFECTS: Suspect root rot: YCN Mushroomlconk/bracket present: Y N ID: Exposed roots: ❑severe moderate Clow Undermined: ❑severe ❑moderate lbw Root pruned: distance from trunk Root area affected: % Buttress wounded N When: Restricted root area: ❑severe ❑moderate ow Potential for root failure: ❑severe ❑moderate ow LEAN: C _deg. from vertical []natural ❑unnatural []self-corrected Soil heaving: YI Decay in plane of lean: Y6 Roots broken: Y& Soil cracking: YO Compounding factors: Lean severity: ❑severe ❑moderate ❑low CROWN DEFECTS: Indicate resence of individual defects and rate their severity (s=severe, m=moderate, 1=low) DEFECT ROOT CROWN TRUNK SCAFFOLDS BRANCHES Poor taper S M L S M L S M L S M L Bow, sweep S M L S M L S M L S M L Codominants/forks S M L S M L S M L S M L Multiple attachments S M L S M L S M L S M L Included bark S M L S M L S M L S M L Excessive end weight S M L S M L S M L S M L Cracks/splits S M L S M L S M L S M L Hangers S M L S M L S M L S M L Girdling S M L S M L S M L S M L Wounds/seam S L S M L S M L Decay S M S -7 CL2 S M L S M L Cavity S M L S M L S M L S M L Conks/mushrooms/bracket S M L S M L S M L S M L Bleeding/sap flow S M L I S M L S M L S M L Loose/cracked bark S M L S M L S M L S M L Nesting hold/bee hive S M L S M L S M L S M L Deadwood/stubs S M L S M L S M L S M L Borers/termites/ants S M L S M L S M L S M L Cankers/galls/buris S M L S M L S M L S M L Previous failure S M L S M L I S M L S M L HAZARD RATING Tree part most likely to fail: 7_ an)t 12eD7or—_ Failure potential: 1-low, 2-medium; 3-high; 4-severe Inspection period: Erannual ❑biannual ❑other Size of part: 1 -<6" (15 cm); 2 - 6-18" (15-45 cm); 3 — 18-30" (45-75 cm), 4 -> 30" (75 cm) Target rating: 1 —occasional use; 2 — intermittent use, 3—frequent use; 4—constant use Failure Potential + Size of Part + Target Rating = Hazard Rating +/- + Y' + _ HAZARD ABATEMENT Prune: ❑remove defective part []reduce end weight ❑crown clean ❑thin ❑raise canopy []crown reduce ❑restructure ❑shape Cable/Brace: Inspectfurther: ❑rootcrown ❑decay ❑aeerrial ❑monitor Remove trees YN ReplaceN Move Target: YN Other: /11i9� %rsOl�/Q f� Effect on adjacent trees: EYnone []evaluate Notification: wrier ❑manager overning agency Date: s�o� COMMENTS 1mg gd6& Burlingame Parks & Recreation Department Robert Disko Trek Formula Summary Tree Num Curessus macrocarpa p rP Cypress, Monterey ; Inspection Date 4.7.2006 y Arborist Kevin R. Kielty Name Region `IVC-NOCal Trunk Formula Notes Meld Data Diameter 49.8 in Species Rating 50 % Site 60 % Condition Rating 55 % Contribution 70 % Circumference in Loss% 0 % Placement 50 % I Location 60 % € 1 Regional Data Replacement Diameter 1.7 In Unit Tree Cost $77.04 >sq in j I Replacement Cost $172.73 Installation CostI $345.46 Total Installed Cost $518.19 i Calculated Values Appraised Tree Value $19,547.68 Loss in Value (before loss) I 1 Appraised Tree Value $19,547.68 Loss in Value(Rounded) i (after loss) 1 A' ne Tree Expert • 535 Braqato Road, Suite A, San Carlos CA 94070 • 550-593-4400 Office page 1 Prepared with Tree Tracker Solution sofvvare by Tree Tech Consuiting _JCO Russell E. Carlson 'gar. Burlingame Parks& Recreation Department f Robert Disko in AIIIIIIIIIII qP *arm Inventory Summary Client Totals Value Total $19,500.00 Project: 1812 Easton Avenue Arborist: Kevin R. Kielty Tree Record Count: 1 Value Total $19,500.00 1 Cypress, Monterey Diameter:49.8 in Apr 7, 2006 00 SpeciesRating: 50 Condition: 55 Location:60 Site:60 Contribution: 70 Placement'. 50 Mayne Tree Expert * 535 Bragato Road, Suite A, San Carlos CA 94070 - 650-593-4400 Office page i-lwpared with Tree Tracker Solution software by Ttee Tech Consulting @'2003 Russell E.Carlson 99ft 1812 Easton Avenue Cupressus macrocarpa Y p .R T4s• �� ?� r� � "- ... 5 � w i .s. .v 3r T Photograph IMG-1 357 April 00. Monterey s ExpertMame Tree • • Road, Suite ' San Carlos ` 94070 650-593-4400 • •.• 1812 Easton Avenue 7X: Cupressus macrocarpa Photograph # 2 IMG_1356 April 7, 2006 Monterey Cypress Mavne Tree Expert • 535 Braqato Road, Suite A, San Carlos CA 94070 650-593-4400 Office page 2 '11812 Easton Cupressus m . 1 j x e J pi r i Photograph • April Monterey Cypress .•. • Road, Sufte A, San Carlos1 94070650-593-4400 page 1812 Easton Avenue Cupressus macrocarpa -1 I ' Lt .F S (Photograph # 4 IMG-1482 April 18, 2006 Monterey Cypress Mayne Tree Expert • 535 3ragato Road, Suite A, San Carlos CA 94070 650-593-4400 Office page 4 Judy Dostal Schneider Garden Consultant 1812 Easton Drive Burlingame,CA 94010 650-347--1993 home 650 773 3821 cell July 31, 2006 Attn:Burlingame City Council 850 Burlingame Ave Burlingame, C.A.94010 Re:Denial of permit to remove tree at 1812 Easton Dr. To Whom It May Concern: Please consider this letter as official notice for an appeal to the councffs denial of my request to have the above mentioned tree removed.This tree has caused extensive damage to both my property and my health as listed below. 1. This tree has made it extremely difficult for me to get in and out of my driveway and garage without causing damage to my vehicle. Due to the fact that this imposing tree was blocking what should be an ordinary exit from my driveway by making it such a tight squeeze, the bumper was dented when I attempted to back out. Please see attached photo.The estimated cost for repair of the bumper exceeds $600.00. 2.The amount of maneuvering to enter and back out of my driveway has aggravated my arthritic wrists and it has also created tension in my neck. 3. This tree has also caused major damage to my fence,which is now leaning so far over that the gates have fallen off. Please see attached photo. I would think this might create liability for the city should the fence fall completely over due to your tree. -76 / 4. The roots of this tree have infiltrated the sewage line into my home causing leakage, which then caused my kitchen hardwood floor to cup due to the dampness underneath the flooring. 5. My driveway had to be cut in order to free up more space for the roots, and the cement has been replaced with gravel which has caused a mess. I would appreciate consideration of my request at your earliest convenience.I would not have purchased this home had I known the removal of this tree was going to cause me so many problems. Sincerely, _ Jude Schnei er CIC: Bobbi 1Vlaniscalco, Senior sales associate,Coldwell Banker ;i 914. 1 x'• fix; �:*.- ,.i� ! I �"" � � 'k- �" >a a7 ,y. Yd i - _.-p eg+ .,Ye.�.• - "' - • .I. .i` to N R whiF r � �J a 4 � 1 s , i 2� �I �•fin. � Vii' , 'i I, 1 =a '`� t � a• 'P,1 t �t zr , — i T .z f k"o 1n� 1%7 -��1S.41�`i��ts.�_•� � _��, .,i. f1 t 111 _ Of tillf{ _ �,k s WIN 5 ; kil I . 1x1 ',� ;`��a,.` i �lZ�i x,.`.'� A 7,• FIs• • iN t ` } 1` 1 7 p dal�kY i'FI'' 1yyj) r4� . j .� /•` � ,. � � s i.,' I `4Av":. , '..�.yaM g,_ �i/ '._� � � i - wr _. .._... ..w. u. Nt Ir 'tgg a 1. ,¢t► ,7 �' �. � �s �..�` `t 4; .tea- u t!b .•�x ' f. 1.� F i ll 1� ;� •fit I{ � x-11 �pi L Fry 'I t� �� t= �• yjax r is `�" _ is •��:' r►' � 4`+. •. -.i i __. __- -._. ,��y� k Sa 'F t— ��- '• s�� _tea.. ..,r3pee• P+ F��W+ � 4y .1.�� -gam '7' s �6 7 ka f L RP.. 14q T l{ Judy Dostal Schneider Garden Consultant 1812 Easton Drive Burlingame,CA 94010 650-347--1993 home 650 773 3821 cell July 31,2006 HONORABLE MAYOR AND CITY COUNCII PLEASE SCHEDULE AN APPEAL HEARING Attn:Burlingame City Council FOR 1812 EASTO N DRIVE ON 850 Burlingame Ave SEPTEMBER 5, 2006. Burlingame,CA 94010 DORIS MORTENSEN, CITY CLERK Re:Denial of permit to remove tree at 1812 Easton Dr. To Whom It May Concern: Please consider this letter as official notice for an appeal to the council's denial of my request to have the above mentioned tree removed.This tree has caused extensive damage to both my property and my health as listed below. 1. This tree has made it extremely difficult for me to get in and out of my driveway and garage without causing damage to my vehicle. Due to the fact that this imposing tree was blocking what should be an ordinary exit from my driveway by making it such a tight squeeze, the bumper was dented when I attempted to back out. Please see attached photo.The estimated cost for repair of the bumper exceeds $600.00. 2.The amount of maneuvering to enter and back out of my driveway has aggravated my arthritic wrists and it has also created tension in my neck. 3.This tree has also caused major damage to my fence,which is now leaning so far over that the gates have fallen off. Please see attached photo. I would think this might create liability for the city should the fence fall completely over due to your tree. -O5-)'- -7p 4. The roots of this tree have infiltrated the sewage line into m0 y home causing leakage,which then caused my kitchen hardwood floor to cup due to the dampness underneath the flooring. 5. My driveway had to be cut in order to free up more space for the roots,and the cement has been replaced with gravel which has caused a mess. I would appreciate consideration of my request at your earliest convenience.I would not have purchased this home had I known the removal of this tree was going to cause me so many problems. Sincerely, J-udft Schnei er Bobbi Maniscalco, Senior sales associate,Coldwell Banker JUDITH W. SQj-INEIDf R 9/1211 16 3 2 1812 EA5TON R. k0 ia�az�o� , BURLINGAMECA- are .- a A � a °r M `t l t Alt ' C r d�y,% 1]'}tj al gf ✓i 1� — h .1 V`1�' `t 1 .f t r• M-3 711 M'm Wt- Al 19r �� eos qq� a j�, s 4 I r A _ a # a G f � 4�1 4� •$� L j x a e' d 1 la ka { a 3 , F � l 4 V' z i 3 e� s y v, a t S l4n f ti : p.vs F ts9 w_ y r h z a, 1 i i 1 s fir`= 2 {S}r!t I� e CITY o CITY OF BURLINGAME BY E PARKS & RECREATION DEPARTMENT 850 Burlingame Avenue,Burlingame, California 94010-2899 m IN r Telephone (650)558-7300 - Parks/Trees (650)558-7330 Fax (650) 696-7216 - E-mail: recreation@burlincame.org — August 2, 2006 Judy Dostal Schneider 1812 Easton Drive Burlingame, CA 94010 RE: APPEAL OF THE DENIAL TO REMOVE THE CITY-OWNED CYPRESS TREE @ 1812 EASTON DRIVE -BURLINGAME We are in receipt of your letter dated July 31, 2006 and a check in the amount of$250 for the Master Fee Schedule. Your appeal of the approval to remove the City-owned Cypress tree at 1812 Easton Drive will be placed on the agenda for the Tuesday, September 5t' City Council meeting. The Council meets at 7:00 p.m. at City Hall, 501 Primrose Road, Burlingame, should you wish to attend and address the Council regarding your appeal. Sincerely, Randy Schwartz Parks &Recreation Director RS/kh CC: City Council, Beautification Commission Arkady &Lia Shusterman A.P. Gouailhardau Francis Lapetina III & Sandra Clewans 1808 Easton Drive 1809 Easton Drive 1815 Easton Drive Burlingame, CA 94010 Burlingame, CA 94010 Burlingame, CA 94010 Piers &Leigh Lingle Rory O'Driscoll & Olive McMahon 1270 Drake Avenue 1340 Drake Avenue Burlingame, CA 94010 Burlingame, CA 94010 Judy Dostal Schneider Garden Consultant 1812 Easton Drive Burlingame,CA 94010 650-347--1993 home 650 773 3821 cell July 31, 2006 HONORABLE MAYOR AND CITY COUNCIL: PLEASE SCHEDULE AN APPEAL HEARING Attn:Burlingame City Council FOR 1812 E A S T O N DRIVE ON 850 Burlingame Ave SEPTEMBER 5, 2006. Burlingame,CA 94010 DORIS MORTENSEN, CITY CLERK Re:Denial of permit to remove tree at 1812 Easton Dr. To Whom It May Concern: Please consider this letter as official notice for an appeal to the council's denial of my request to have the above mentioned tree removed.This tree has caused extensive damage to both my property and my health as listed below. 1. This tree has made it extremely difficult for me to get in and out of my driveway and garage without causing damage to my vehicle. Due to the fact that this imposing tree was blocking what should be an ordinary exit from my driveway by making it such a tight squeeze, the bumper was dented when I attempted to back out. Please see attached photo.The estimated cost for repair of the bumper exceeds $600.00. 2.The amount of maneuvering to enter and back out of my driveway has aggravated my arthritic wrists and it has also created tension in my neck. 3.This tree has also caused major damage to my fence,which is now leaning so far over that the gates have fallen off.Please see attached photo. I would think this might create liability for the city should the fence fall completely over due to your tree. °pS¢ - j Yc2,�)a.CQ, 4. The roots of this tree have infiltrated the sewage line into m0 y home causing leakage,which then caused my kitchen hardwood floor to cup due to the dampness underneath the flooring. 5. My driveway had to be cut in order to free up more space for the roots,and the cement has been replaced with gravel which has caused a mess. I would appreciate consideration of my request at your earliest convenience. I would not have purchased this home had I known the removal of this tree was going to cause me so many problems. Sincerely, Ju Schnei er / :Bobbi aniscalco, Senior sales associate,Coldwell Banker CITY AGENDA 6b °� ITEM# W-- STAFF REPORTMAG. DATE 9/5/2006 .E e`�o TO: Honorable Mayor and Council SUBMITT J BY DATE: August 23, 2006 APPROVED BY FROM: Larry E. Anderson, City Attorney SUBJECT: ADOPT ORDINANCE CLARIFYING, UPDATING, AND MAKING CONSISTENT VARIOUS PROVISIONS OF THE MUNICIPAL CODE RECOMMENDATION: Adopt an ordinance making changes in the Municipal Code to update and clarify various provisions and to make provisions consistent with recent changes in the Zoning Code and direct City Clerk to publish a summary of the ordinance within 15 days of adoption. DISCUSSION: The City Clerk has recently republished the Municipal Code through Quality Code Publishing Company. Staff found a number of unclear provisions and inconsistencies as they proof-read the republished Code. In addition, the recent adoption of new zoning districts in the North Burlingame/Rollius Road and Bayfront areas triggers a need to make other provisions consistent with the districts nomenclature. The zone changes were as follows: C-3 became TW (Trousdale West) C-4 became AA (Anza Area), APN (Anza Point North), and SL (Shoreline) O-M became IB (Inner Bayshore) and APS (Anza Point South) M-1 became RR(Rollins Road) A summary of the proposed changes is attached. Attachment Summary of Changes Proposed Ordinance SUMMARY OF PROPOSED CHANGES Ordinance Code Provision Change Reason Section 2 3.48.030 Allow civil service commission to When the number of commission take action by 3 affirmative votes members was reduced from seven instead of 4 to five in 2002, the requirement for a voting requirement remained at four. Because of the difficulty of having all 5 commissioners present, this has presented an unnecessary burden on the commission by making decisions require unanimity. 3 4.15.010 Add "its officers and employees" to This clarifies that a claim is claim requirements required to be filed before an officer or employee of the City may be subject to suit in State court. 4 6.16.120 Add a violation of a condition on an This clarifies that revocation or entertainment permit as a reason for suspension can be triggered by a revocation or suspension of the violation of a permit condition as permit well as violation of the Municipal Code. 5 13.32.180 Change M-1 wording to RR wording. The M-1 district in the City became the RR district in June 2006. 6 17.04.028 Renumber one section 17.04.028 as The Fire Code has two sections 17.04.029. numbered 17.04.028. The most recently adopted section will be renumbered 17.04.029. 7 22.06.040 Change designations for districts to Responds to new AA, APN, RR, conform to new districts. and SL district designations. 8 22.18 Change title from C-3 to TW C-3 district has become Trousdale West (TW). 9 22.20 Change title to reflect new districts C-4, M-1, and O-M have been replaced by AA, APN, SL; RR; and IB, APS respectively. SUMMARY - 1 Ordinance Code Provision Change Reason Section 10 22.20.010 Change section language to reflect C-4, M-1, and O-M have been new districts replaced by AA, APN, SL; RR; and IB, APS respectively. 1 1 22.20.070 Change C-4 designation to new C-4 has been replaced by AA, districts APN, and SL 12 22.29.010 Change section language to reflect C-3, C-4, M-1, and O-M have new districts been replaced by TW; AA,APN, SL; RR; and IB, APS respectively 13 22.52.020 Change section language to reflect O-M and M-1 districts have been new districts replaced by APS, IB, and RR districts respectively. 14 22.52.030 Change section language to reflect M districts have been replaced by new districts RR district and clarify that C district reasoning applies to AA, APN, APS, IB, and SL district 15 22.58.030 Change section language to reflect M districts have been replaced by new districts APS, IB, RR districts and clarify that C district reasoning applies to AA, APN, and SL district 16 25.08.012 Renumber"arbor"definition to Puts "Arbor"in alphabetical order 25.08.091 in definitions. 17 25.08.022 Replace district name in definition M-1 has become RR 18 25.08.477 Repeals definition of"new Definition no longer used in construction" Zoning Code 19 25.12.010 Eliminates old form of zoning district Simplifies section to current designations designations and usage. 20 25.28.072 Listing of setbacks is made consistent Existing language seemed to omit certain points in setback hierarchy. 21 25.30.071 Listing of setbacks is made consistent Existing language seemed to omit certain points in setback hierarchy. 22 25.32.075 Listing of setbacks is made consistent Existing language seemed to omit certain points in setback hierarchy. SUMMARY - 2 Ordinance Code Provision Change Reason Section 23 25.34.075 Listing of setbacks is made consistent Existing language seemed to omit certain points in setback hierarchy. 24 25.38.031 Eliminate related storage from Existing language caused automobile service uses permitted in confusion by leading to belief that C-1 district automobile storage as a standalone use was permitted. 25 25.38.033 Apply hours limitation on health and Language implies that C-1 limits personal services to C-2 district apply to C-2 uses, but this makes hour limitation clearly applicable 26 25.40.027 Apply hours limitation on health and Carry-over from C-3 limitation personal services to new TW district 27 25.40.070 Listing of setbacks is made consistent Language is made consistent with other setback sections in Zoning Code. 28 25.42.050 Designation of controlling section Correct section designated for made reference. 29 25.43.010 Reference to new districts is made C-4 has become SL in this area and M-1 has become RR 30 25.43.027 Apply hours limitation on personal Carry-over from OM limitation services to new IB district 31 25.44.035 Apply hours limitation on health Carry-over from M-1 district services to new RR district 32 25.48.027 Apply hours limitation on health Carry-over from C-4 district services to new APN district 33 25.55.010 a) Change section language to reflect a) O-M and M-1 districts have new districts been replaced by APS, IB, and RR districts respectively. b) Eliminate outdate allowance of b) 2001 revisions to Sign Code minor modifications to vary total area minimized First Amendment of signage on a property conflicts by only allowing variances for sign height and combination. 34 25.60.010 Change "window"to "glazed Use of various materials and styles opening" has made term "window"too narrow in setback context. SUMMARY - 3 Ordinance Code Provision Change Reason Section 35 25.61.020 Clarify that hillside construction Eliminate contention that the permit process applies to any hillside construction permit structure process would not apply to a commercial structure or deck or similar variation. >6 25.70.030 Change "new construction"to current Makes terminology consistent term"substantial construction" with other Zoning Code provisions. 37 25.70.030 Eliminate use of term"new Makes terminology consistent construction" with other Zoning Code provisions. 38 25.70.050 Change section language to reflect C-4, M-1, and O-M have been new districts replaced by AA, APN, SL; RR; and IB, APS respectively, and adds C-R as well. 39 25.74.010 Change section language to reflect M-1 has become RR district. new district 40 25.76.030 Change section language to reflect C-4 has been replaced by AA, new districts APN, SL. 41 25.78.025 Change section language to reflect M-1 has become RR district, new district which actually has fence requirements. 42 Ordinance No. Require payment of Bayfront Gov't Code section 66007 allows 1151 Development fee in 2 parts: %at a property developer to postpone permit issuance and %2 at final payment of off-site development framing. fees until final inspection if a lien is placed on the property; the City's alternative process allows one-half before permit and one- half at final framing without the burden of lien. SUMMARY - 4 Ordinance Code Provision Change Reason Section 43 Ordinance No. Require payment of North Gov't Code section 66007 allows 1751 Burlingame/Rollins Road a property developer to postpone Development fee in 2 parts: '/z at payment of off-site development permit issuance and '/2 at final fees until final inspection if a lien framing. is placed on the property; the City's alternative process allows one-half before permit and one- half at final framing without the burden of lien. SUMMARY - 5 I ORDINANCE NO. 2 ORDINANCE OF THE CITY OF BURLINGAME MAKING CLARIFYING AND CONSISTENCY AMENDMENTS TO VARIOUS CODE 3 SECTIONS OF THE MUNICIPAL CODE AND UNCODIFIED ORDINANCES 4 5 The CITY COUNCIL of the CITY OF BURLINGAME does hereby ordain as follows: 6 Section 1. The City has recently republished the Municipal Code, and the review 7 involved in the republication has revealed various provisions that are unclear or inconsistent. The 8 recent Zoning Code amendments adopting new zoning districts AA,APN,APS,RR, SL, and TW 9 have created a need to correct reference elsewhere in the Municipal Code. This ordinance is 10 intended to address the unclear and inconsistent provisions that were found at this time. 11 12 Section 2. Section 3.48.030 is amended to read as follows: 13 3.48.030 Meetings—Officers. 14 The commission shall elect one of its members as chair.They shall meet at the city hall,or 15 such other location in the city as designated by the commission, at such time as fixed by the 16 commission. A majority of the commission shall constitute a quorum, and no official action shall 17 be transacted by less than the affirmative vote of at least three (3) members. 18 19 Section 3. Section 4.15.010 is amended to read as follows: 20 4.15.010 Claims for money or damages. 21 (a) Claims against the city, its officers or employees for money or damages which are 22 exempted by Government Code Section 905 from Chapter 1 and Chapter 2 of Part 3 of Division 23 3.6 of Title 1 of the Government Code of the State of California, and which are not governed by 24 any other statutes or regulations expressly related thereto, shall be governed by this section. A 25 claim relating to such a cause of action shall be presented not later than one year after the accrual 26 of the cause of action. Such claims shall be presented and processed as provided by Chapters 1 and 27 2 of Part 3 of Division 3.6 of Title 1 of the Government Code insofar as the provisions are not in 28 conflict with this section. 1 I (b) No suit for money or damages may be brought against the city, its officers or 2 employees until a written claim therefor has been presented to the city council and has been acted 3 upon or has been deemed to have been rejected by the city in accordance with this section.The time 4 within which the city will act on the claim presented will conform to the time requirements set forth 5 in section 912.4 of the Government Code. 6 (c) Pursuant to Chapter 5 of Part 3 of Division 3.6 of Title 1 of the Government Code, 7 written agreements entered into by or in behalf of the city may provide all claims arising out of or 8 related to the agreement must be presented not later than six (6) months after the accrual of the 9 cause of action, and such claims shall be governed by the provisions of this section. 10 11 Section 4. Subsection 6.16.120(b)(2) is amended to read as follows: 12 (2) The permittee, employee, agent, partner, director, stockholder, or manager of an 13 entertainment business has knowingly allowed or permitted, and has failed to make a reasonable 14 effort to prevent the occurrence of any of the following on the premises of the entertainment 15 business, or in the case of a single event entertainment permit, the permittee, employee, agent, 16 partner, director, stockholder, or manager has knowingly allowed or permitted and has failed to 17 make a reasonable effort to prevent the occurrence of any of the following at the single 18 entertainment event: 19 (A)Any conduct prohibited by this chapter; or 20 (B) Any violation of any condition of the entertainment permit. 21 22 Section 5. Section 13.32.180 is amended to read as follows: 23 13.32.180 Overnight parking of recreation vehicles and trailers. 24 No person shall permit any trailer, semitrailer, camper, camp trailer,house car,trailer coach or 25 mobilehome to park or remain upon any street,park or other public place within the city,other than 26 the RR zone, between the hours of 7:00 p.m. of any day and 7:00 a.m. of the following day. 27 28 Section 6. Section 17.04.028 adopted by Ordinance No. 1749, section 4 (2004) is 2 I renumbered as Section 17.04.029. 2 3 Section 7. Section 22.06.040 is amended to read as follows: 4 22.06.040 Frontage and sign area calculations. 5 In the AA, APN, APS, C-1, C-2, IB, RR, and SL districts, where maximum signage is 6 related to frontage,the following procedures shall determine that frontage for purposes of this title: 7 (a) A distinction shall be observed between parcel frontage and building frontage.Parcel 8 frontage shall be used for freestanding signs, or combinations of these signs with any other type. 9 Building frontage shall be used to calculate maximum signage area for signs attached to or wholly 10 supported by a building or major structure. 11 (b) Primary frontage shall be determined and declared by the applicant for the appropriate 12 parcel or building frontage; such declarations shall be approved by the city planner and shall be 13 consistent with Section 22.04.340 or Section 22.04.350. The length of this primary frontage shall 14 be the figure used to calculate maximum permitted signage in the appropriate zoning district, as 15 described in Chapters 22.10 to 22.22 inclusive. 16 (c) Secondary frontage is any additional frontage, consistent with Section 22.04.400 or 17 Section 22.04.410, after determination of the primary frontage. 18 (d) Sign area shall be determined as specified in Section 22.04.440. 19 (e) Any freestanding sign which can be viewed from both a primary and a secondary 20 frontage,and which is so placed that it has equal or nearly equal exposure from each frontage,shall 21 be counted twice, once for each frontage. 22 23 Section 8. Chapter 22.18 is renamed "TROUSDALE WEST (TW) DISTRICT 24 REGULATIONS". 25 26 Section 9. Chapter 22.20 is renamed: "AA, APN, APS, 113, RR, and SL DISTRICT 27 REGULATIONS 28 3 I Section 10. Section 22.20.010 is amended to read as follows: 2 22.20.010 Permitted signs. 3 Any signs permitted by other sections of this title are permitted in the AA,APN,APS,113,RR, 4 and SL districts. 5 6 Section 11. Section 22.20.070 is renamed "Permitted signage in the Shoreline and Anza 7 subareas of the Bayfront zoned AA, APN, and SU. 8 9 Section 12. Section 22.29.010 is amended to read as follows: 10 22.29.010 Changeable copy signs. 11 A changeable copy sign that does not contain any flashing lights or brilliant or reflected 12 light is allowed in AA, APN, APS, C-1, C-2, IB, RR, SL, and TW districts only, so long as the 13 total square footage of all changeable copy signs on the parcel is not more than the following: (a) 14 fifteen (15) square feet or twenty(20)percent of the allowable signage area,whichever is less, if 15 the lettering or graphics are movable only by hand;or(b)six(6)square feet or twenty(20)percent 16 of the allowable signage area, whichever is less, if some or all of the lettering or graphics are 17 movable mechanically or electronically. 18 19 Section 13. Section 22.52.020 is amended to read as follows: 20 22.52.020 Size limitations. 21 Real estate signs shall not exceed seventy-five (75) square feet in total area per parcel in 22 any commercial zoning district, and shall not exceed one hundred (100) square feet in total area 23 in the APS, IB, and RR zoning districts. 24 25 Section 14. Section 22.52.030 is amended to read as follows: 26 22.52.030 Number. 27 Not more than one real estate sign may be placed on any parcel frontage; however, when 28 a building in either a C district or an AA,APN,APS,IB,RR, or SL district, consists of more than 4 I one store,section or office,signs not exceeding nine(9)square feet in area maybe displayed within 2 or upon each such store, section or office, subject to the total signage not exceeding the limit for 3 that district. 4 5 Section 15. Section 22.58.030 is amended to read as follows: 6 22.58.030 "Sale" signs. 7 Window signs which advertise goods or services in a C district or an AA,APN,APS,IB, RR, 8 or SL district,and obscure twenty-five(25)percent or less of any window,maybe allowed without 9 a sign permit, providing such signs are displayed for a period not to exceed fourteen (14) 10 consecutive days. 11 12 Section 16. Section 25.08.012 (Arbor) is renumbered as Section 25.08.091. 13 14 Section 17. Section 25.08.022 is amended to read as follows: 15 25.08.022 Accessory use, RR. 16 "Accessory use,RR District"means a use which is subordinate in area,extent or purpose to the 17 principal permitted or conditional use of land and/or building, does not exceed twenty-five (25) 18 percent of each tenant's floor area within the structure or equivalent of the site, except that when 19 outdoor storage is the primary use of the site such outdoor storage areas may not exceed 20 twenty-five (25) percent of the gross site area; parking must be provided on site as required in 21 Chapter 25.70. 22 23 Section 18. Section 25.08.477 ("New construction") is repealed. 24 25 Section 19. Section 25.12.010 is amended to read as follows: 26 25.12.010 Establishment of districts. 27 The city is divided into the districts shown on the zoning maps attached to Ordinance 539 and 28 the amendments thereto,which maps,with all notations,references,and other information thereon, 5 1 are incorporated herein by reference and are declared to be a part hereof. 2 Whenever the term R district or R zone is used herein, it refers to R-1, R-2, R-3 and R-4 3 districts. Whenever the term C district or C zone is used, it refers to AA,APN,APS,C-1,C-2, C- 4 R, IB, SL, TW, and C-R districts. 5 6 Section 20. Subsection 25.28.072(c)(1) is amended to read as follows: 7 (1) If front and rear lot lines are equal, the minimum side setback shall be based on the 8 front property line dimension; if front and rear lot lines are unequal,the setback shall be based on 9 the width of the lot as measured between the midpoints of the two (2) side lot lines. In either case 10 the setbacks based on lot width shall be as follows: 11 Side Setback Lines (in feet) 12 Lots 42'wide or less ....................................................... 3 13 Lots wider than 42', but less than 51.. ............................. 4 14 Lots 51'wide or more, but less than 54'........................... 5 15 Lots 54'wide or more, but less than 61'........................... 6 16 Lots 61'wide or more ...................................................... 7 17 18 Section 21. Subsection 25.30.071(c)(1) is amended to read as follows: 19 (1) If front and rear lot lines are equal, the minimum side setback shall be based on the 20 front property line dimension; if front and rear lot lines are unequal,the setback shall be based on 21 the width of the lot as measured between the midpoints of the two (2) side lot lines. In either case 22 the setbacks based on lot width shall be as follows: 23 Side Setback Lines (in feet) 24 Lots 42'wide or less ........................................................................ 3 25 Lots wider than 42', but less than 51' .............................................. 4 26 Lots 5 P wide or more, but less than 54' .......................................... 5 27 Lots 54'wide or more, but less than 61' .......................................... 6 28 Lots 61'wide or more ...................................................................... 7 6 I Rear Setback Lines (in feet) 2 1 and 2 story ................................................................................... 15 3 4 Section 22. Subsection 25.32.075(c) is amended to read as follows: 5 (c) The minimum side and rear setback lines shall be as follows; if front and rear lot lines 6 are unequal their average shall be the width at the midpoints of the two (2) side lot lines: 7 Side Setback Lines (in feet) 8 Lots 42'wide or less ...................................................................... 3 9 Lots wider than 42',but less than 51' ............................................... 4 10 Lots 51'wide or more,but less than 54' .......................................... 5 11 Lots 54' wide or more,but less than 61' .......................................... 6 12 Lots 61'wide or more ...................................................................... 7 13 Rear Setback Lines (in feet) 14 1 and 2 story ................................................................................... 15 15 More than 2 stories ........................................................................ 20 16 17 Section 23. Subsection 25.34.075(d) is amended to read as follows: 18 (d)The minimum side and rear setback lines shall be as follows; if front and rear lot lines 19 are unequal their average shall be the width at the midpoints of the two (2) side lot lines: 20 Side Setback Lines (in feet) 21 Lots 42'wide or less ........................................................................ 3 22 Lots wider than 42',but less than 51' ............................................... 4 23 Lots 51' wide or more, but less than 54' ........................................... 5 24 Lots 54'wide or more,but less than 61' .......................................... 6 25 Lots 61'wide or more ...................................................................... 7 26 Rear Setback Lines (in feet) 27 1 and 2 story ................................................................................... 15 28 More than 2 stories ........................................................................ 20 7 I Section 24. Subsection 25.38.031(a)(1)(A) is amended to read as follows: 2 (A) Retail sales of and service of automobiles; 3 4 Section 25. A new Section 25.38.033 is added to read as follows: 5 25.38.033 Health services,beauty shops,barbershop, health studio, tanning facilities. 6 A health service,beauty shop,barbershop,health studio,or tanning facility in any location 7 in any C-2 district shall be limited to the hours of 7 a.m. to 9 p.m. unless a conditional use permit 8 is approved by the planning commission pursuant to chapter 25.52 to allow use outside those hours. 9 This limitation expressly applies to the Burlingame Avenue Commercial Area if the use is 10 otherwise allowed. The hours limitation imposed by this section does not apply to an occasional 11 medical emergency at a health service use. 12 13 Section 26. A new Section 25.40.027 is added to read as follows: 14 25.40.027 Hours for health service uses and conditional use permit. 15 A health service use shall be limited to the hours of 7:00 a.m. to 9:00 p.m. unless a 16 conditional use permit is approved by the planning commission pursuant to Chapter 25.52 to allow 17 use outside those hours. The hours limitation imposed by this subsection does not apply to an 18 occasional medical emergency at a health service use. 19 20 Section 27. Subsection 25.40.070(b)(1) is amended to read as follows: 21 (1) The minimum side setback line shall be as follows: 22 Side Setback Lines (in feet) 23 Lots 42'wide or less......................................................................... 3 24 Lots wider than 42', but less than 51'.................................................4 25 Lots 51'wide or more,but less than 54'............................................ 5 26 Lots 54' wide or more, but less than 61'............................................ 6 27 Lots 61' wide or more ....................................................................... 7 28 8 I Section 28. Subsection 25.42.050(c) is amended to read as follows: 2 (c) On-site parking shall not be required for single story commercial development fronting 3 on California Drive except that second story commercial uses shall require on-site parking 4 accessible from California Drive pursuant to the requirements of Section 25.70.040. 5 6 Section 29. Section25.43.010 is amended to read as follows: 7 25.43.010 Scope and purpose of regulations. 8 It is the purpose and policy of this chapter to designate for the Inner Bayshore (IB) an 9 office/light industrial park area which will serve as a transition between the Shoreline Commercial 10 District(SL)and the Rollins Road(RR)zones. In its uses,this district shall be consistent with the 11 intent of the General Plan and the Bayfront Specific Plan, Inner Bayshore subarea, to provide 12 professional and administrative offices, distribution, service, light industrial and other uses 13 supported by access to San Francisco International Airport. An additional purpose of this district 14 is to create a supportive interface between the adjacent hotel, restaurant and other Shoreline 15 commercial activities and Bay Trail recreation area nearby which front on San Francisco Bay. 16 These proposed uses shall further enhance the economic and aesthetic advantages of the adjacent 17 Shoreline subarea and the economic base of the city. 18 19 Section 30. A new Section 25.43.027 is added to read as follows: 20 25.43.027 Hours for massage,bathing,tanning,or similar establishments and conditional use 21 permit. 22 A massage,bathing, tanning, or similar establishment use shall be limited to the hours of 23 7:00 a.m. to 9:00 p.m. unless a conditional use permit is approved by the planning commission 24 pursuant to Chapter 25.52 to allow use outside those hours. 25 26 Section 31. A new Section 25.44.035 is added to read as follows: 27 25.44.035 Hours for health service uses and conditional use permit. 28 A health service use shall be limited to the hours of 7:00 a.m. to 9:00 p.m. unless a 9 I conditional use permit is approved by the planning commission pursuant to Chapter 25.52 to allow 2 use outside those hours. The hours limitation imposed by this subsection does not apply to an 3 occasional medical emergency at a health service use. 4 5 Section 32. A new Section 25.48.027 is added to read as follows: 6 25.48.027 Hours for health service uses and conditional use permit. 7 A health service use shall be limited to the hours of 7:00 a.m. to 9:00 p.m. unless a 8 conditional use permit is approved by the planning commission pursuant to Chapter 25.52 to allow 9 use outside those hours. The hours limitation imposed by this subsection does not apply to an 10 occasional medical emergency at a health service use. 11 12 Section 33. Subsections 25.55.010(b) and (c) are amended to read as follows: 13 (b) In the C-1 and C-2 zoning districts, including subareas A, B, B-1, and D of the 14 Burlingame Avenue Commercial Area unless noted: 15 (1) A maximum of ten (10) percent reduction in any dimension of aisles, driveways or 16 parking spaces,provided no more than ten(10)percent of the parking spaces in a project may be 17 affected by the dimensional adjustment; 18 (2) Increase in compact parking stalls up to thirty (30) percent for a commercial or 19 industrial building; 20 (3) Classes associated with a retail or service use where classes are held after 5:00 p.m. 21 weekdays and after 12:00 noon on Saturday and Sunday, except in subareas A and B-1; 22 (4) Schools above the first floor which operate outside of the hours of 8:00 a.m. and 5:00 23 p.m. Monday through Friday, except in subarea A; 24 (5) Laundry and dry cleaning establishments without processing plants or machines on 25 site, except in subareas A and B; 26 (6) Residential uses above the first floor; 27 (7) Parking lots for public use; 28 (8) In subareas B and B-1 of the Burlingame Avenue Commercial Area, real estate or 10 I financial institution uses with a maximum of six hundred (600) gross square feet in office area 2 which are unrelated to any other office or use in the building and with a maximum of one proprietor 3 and one employee 4 (c) In the APS, IB, and RR zoning districts: 5 (1) A maximum often (10) percent reduction in any dimension of aisles, driveways or 6 parking spaces,provided no more than twenty(20)percent of the parking spaces in a project may 7 be affected by the dimensional adjustment; 8 (2) Increase in compact parking stalls up to thirty (30) percent for a commercial or 9 industrial building. 10 11 Section 34. Subsection 25.60.010(i) is amended to read as follows: 12 (i) Glazed openings of the accessory structure will be within ten(10) feet of the property 13 line or any portion of a glazed opening will be higher than ten (10) feet above grade; 14 15 Section 35. Section 25.61.020 is amended to read as follows: 16 25.61.020 Hillside area construction permits. 17 No new structure or any addition to all or a portion of an existing structure shall be 18 constructed within the affected area without a hillside area construction permit. 19 20 Section 36. Subsection 25.70.030(a) is amended to read as follows: 21 (a) Parking Space Requirements. There shall be at least one permanently maintained 22 garage or covered carport available to park a car for each single-family dwelling with the following 23 further requirements: 24 (1) A new single-family dwelling shall provide at least two(2)covered off-street parking 25 spaces and one uncovered off-street parking space; 26 (2) Existing single-family dwellings increased in size to three (3) or four (4) bedrooms 27 shall provide off-street parking spaces to current code dimensions for at least two(2)vehicles,one 28 of which must be covered by a garage or carport; 11 1 (3) A single-family dwelling hereafter increased in size to five(5)or more bedrooms shall 2 provide off-street parking to current code dimensions for at least three (3) vehicles, two (2) of 3 which must be covered by a garage or carport; 4 (4) For the purposes of subsections (1) and (2) above, an existing garage not less than 5 eighteen(18)feet wide and twenty(20)feet deep interior dimension shall be considered to provide 6 two (2) covered off-street parking places. 7 8 Section 37. Subsection 25.70.030(c)(4) is amended to read as follows: 9 (4) For an addition to an existing single-family dwelling,required uncovered spaces may 10 be provided in tandem configuration and may extend: 11 (A) In areas with sidewalks, to the inner edge of the sidewalk; 12 (B) In areas without sidewalks to five (5) feet from the inner edge of the curb; 13 (C) In areas without either sidewalks or curbs,to five(5)feet from the edge of pavement. 14 15 Section 38. Section 25.70.050 is amended to read as follows: 16 25.70.050 Exceptions for the AA,APN,APS,C-1,C-2, C-R,IB,RR,and SL districts and for 17 nonconformities. 18 (a) All uses in the AA,APN,APS, C-1, C-2, C-R, IB,RR, and SL districts shall conform 19 to the parking requirements of this Chapter unless specific parking requirements are imposed by 20 the chapter of this Code governing the particular district. 21 (b) Existing uses which become nonconforming as a result of the adoption of parking 22 requirements may be remodeled so long as the gross floor area occupied by the use is not increased. 23 If the gross floor area is increased, parking shall be provided as required for the additional floor 24 area. 25 (c) Any existing parking spaces which form the basis for credit against any parking 26 assessment shall be maintained in a usable operating condition. 27 28 Section 39. Subsection 25.74.010(d) is amended to read as follows: 12 I (d) Where such area adjoins a lot in a C district or the RR district,and such lot is occupied 2 by a building extending to the lot line,the fence will not be required on that portion of the common 3 lot line occupied by the building; 4 5 Section 40. Section 25.76.030 is amended to read as follows: 6 25.76.030 Location requirements. 7 (a) No adult-oriented business shall be established or located in any zone in the city other 8 than the Anza Area(AA), Anza Point North(APN), or Shoreline (SL) zone. 9 (b) Within these designated zones, an adult-oriented business shall not be established or 10 located within the following minimum distances: 11 (1) Within one thousand (1,000) feet of any other adult-oriented business. 12 (2) Within one thousand (1,000) feet of any then-existing church, school, or city athletic 13 facility. 14 (c) The distances set forth above shall be measured as a radius from the primary entrance 15 of the adult-oriented business to the property lines of the property so used without regard to 16 intervening structures. 17 18 Section 41. Section 25.78.025 is amended to read as follows: 19 25.78.025 Fence height in all other districts. 20 In all other districts, except as required or permitted in the RR district in Chapter 25.44, fences 21 seven (7) feet in height shall be permitted, provided the last foot in height is of an open design 22 freely allowing light and air to pass through. 23 24 Section 42. The first two sentences of Section 4 of the provisions of Ordinance No. 1151 25 as amended by Ordinances 1305 and 1739 (Bayfront Fees) are amended to read as follows 26 "Fees are hereby established for all property within the Bayfront Area of Benefit. As an 27 alternative to the development of a development fee contract and recording of lien pursuant to the 28 Government Code,one-half of said fees maybe deposited before issuance of a construction permit 13 I for the project and the remaining one-half paid prior to the approval of final framing of buildings 2 or additions subject to this ordinance. Any project which has submitted a construction permit 3 application prior to the effective date of any amendment to this ordinance but has not received a 4 building permit, shall at the time of receiving the building permit,pay any difference between the 5 amount paid at the submittal of the application and the amount of said fee established by such 6 amendment. " 7 8 Section 43. The first three sentences of Section 4 of the provisions of Ordinance No. 9 1751 (North Burlingame/Rollins Road Fees) are amended to read as follows: 10 "Fees are hereby established for all property within the North Burlingame/Rollins Road 11 Areas of Benefit. As an alternative to the development of a development fee contract and recording 12 of lien pursuant to the Government Code, one-half of said fees may be deposited before issuance 13 of a construction permit for the project and the remaining one-half paid prior to the approval of 14 final framing of buildings or additions subject to this ordinance. In the case of a change of use 15 within a building, the fee shall be paid one-half before issuance of a construction permit for any 16 building or tenant improvements and one-half before scheduling the final inspection of tenant 17 improvements for the change in use; if no building or tenant improvements are contemplated,the 18 fees shall be paid within thirty(30)days of the approval of the conditional use permit. Any project 19 which has submitted a construction permit application prior to the effective date of any amendment 20 to this ordinance but has not received a building permit, shall at the time of receiving the building 21 permit, pay any difference between the amount paid at the submittal of the project assessment or 22 application and the amount of the fee established by that amendment." 23 24 Section 44. This ordinance shall be published as required by law. 25 26 Mayor 27 28 I, DORIS MORTENSEN, City Clerk of the City of Burlingame, do hereby certify that the 14 I foregoing ordinance was introduced at a regular meeting of the City Council held on the 2151 day 2 of August,2006, and adopted thereafter at a regular meeting of the City Council held on the 3 day of , 2006, by the following vote: 4 AYES: COUNCILMEMBERS: 5 NOES: COUNCILMEMBERS: 6 ABSENT: COUNCILMEMBERS: 7 City Clerk 8 U:\FILES\ORDINANC\omniupdate2006.aty.wpd 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 15 Agenda Item # 8a Meeting BURLINGAME STAFF REPORT Date: September 5 2006 _ X11 SUBMITTED BY APPROVED BY TO: HONORABLE MAYOR AND CITY COUNCIL DATE: August 22, 2006 FROM: PUBLIC WORKS SUBJECT: SHERIFFS WORK PROGRAM RECOMMENDATION: It is recommended that Council provide direction on utilizing the Sheriffs Work Program to increase the maintenance in the business districts. BACKGROUND: Council approved a list of goals for 2006-07, one of which included using volunteers for increased maintenance in the business districts. As a result, Staff researched the feasibility of obtaining additional labor through the Sheriffs Work Program (SWP). DISCUSSION: Staff contacted several nearby cities to obtain feedback on their experience with SWP. These included Hillsborough, Millbrae, Redwood City and Foster City. The consensus was that the program worked well as long as there was adequate City supervision, the tasks were simple and no power tools or driving were required. All cities indicated that the workers were very productive. Based on this feedback, Staff proposes to initiate a three month pilot program which would involve four to six SWP people working eight hours on a Saturday to perform the following supervised example tasks: 1. Within the business districts: ■ Cleaning parking lots ■ Painting garbage cans ■ Stenciling parking stall numbers ■ Painting red curbs ■ Labeling storm drain inlets 2. Outside the business districts: ■ Cleaning and painting pump stations ■ Cleaning ditches ■ Filling sand bags SAA Public Works Directory\Staff Reports\Sheriffs Work Program.doc In order to be eligible for the program City Supervisors would need to be certified through a training program by the Sheriffs Department. Staff has been placed on a waiting list for this training. SUMMARY: The SWP provides an opportunity to augment City Staff to perform routine maintenance with a focus on the business districts. Work would be done in locations and at times that are least disruptive to the public. Feedback from other cities in the program is very positive with no reported problems with the laborers. The program can be cancelled at any time and laborers can be dismissed, if any problems were to develop. Staff would evaluate the SWP over a three month period and report back to Council on whether to continue or modify the program. The SWP will start after the completion of the Supervisor training in the Fall. BUDGET IMPACT: There are sufficient funds in the Public Works Streets budget to cover the overtime costs for the supervision. EXHIBITS: None SAA Public Works Directory\Staff Reports\Sheriffs Work Program.doc �� CITY 0 STAFF REPORT BURLINGAME AGENDA ITEM # 8b MTG. DATE September 5, 2006 �RATEG JYNF� TO: HONORABLE MAYOR AND CITY COUNCIL SUBMI BY DATE: September 5, 2006 ,� �+n APL.V ED &J. FROM: Jesus Nava, Finance Director/Treasurer BY SUBJECT: RESOLUTION APPROVING BOND PURCHASE A EMENT AND OFFICIAL STATEMENT IN CONNECTION WITH PENSION OBLIGATION BONDS AND AUTHORIZING OTHER MATTERS RELATING THERETO Recommendation: That the City Council adopt a Resolution of the City Council of the City of Burlingame Approving the Bond Purchase Agreement and Official Statement In Connection with Pension Obligation Bonds and Authorizing Other Matters Relating Thereto. This is the final City Council action required prior to the negotiated sale of the pension obligation bonds. Background: The City provides retirement benefits through the California Public Employees Retirement System (CalPERS). The City currently has three CalPERS plans: Fire (Safety), Police (Safety) and Miscellaneous (Nonsafety). Each plan has its own specific contributions based on the benefits provided. CalPERS calculates the contributions due to each plan on an annual basis. In making the calculation, PERS projects certain future events that affect the annual deposit. They include the retirement age of employees, life expectancy, changes in benefits and the rate at which funds invested will grow (market return). This is referred to as the "normal costs" for the plan. If the City has insufficient assets in the CalPERS portfolio to cover future pension obligations, then the plan is said to have an "unfunded accrued actuarial liability WAAL)". This means that financial resources are currently insufficient to meet the future retirement obligations of the City. The City currently has an unfunded liability in its CalPERS plans due to the investment losses that CalPERS sustained during the most recent recession. To eliminate the UAAL, the City pays an additional amount to CalPERS beyond the annual normal costs payments it makes to fund pensions. The City's UAAL obligation to CalPERS is a legal debt that must be repaid. CalPERS allows the city to repay this debt over time. However interest accrues on the debt in an amount equal to the CalPERS estimated rate of return on its investment portfolio. That rate is 7.75% per annum. The municipal bond market currently provides funds at lower interest rates than those charged by CalPERS. The city will issue Pension Obligation Bonds (POBs) to prepay its entire UAAL and eliminate future annual UAAL payments to CalPERS. This will leave the city's normal costs as the only obligations due to CalPERS. Instead of payments to CalPERS, the City will make debt service payments to the bond holders at a lower interest rate. Actuarial Study A formal, independent actuarial study has been completed by Bartel Associates to determine the most current UAAL for each of the City's CalPERS plans. Bartel Associates has issued a certification letter stating the total UAAL to be $30.5 million. Each plan has its own UAAL amount and repayment term. The proposed pension obligation bonds will not exceed the repayment terms associated with each of the plans. Plan Type UAAL Owed Repayment Term Fire Plan $10.8 million 12 years Police Plan $ 9.8 million 11 years Miscellaneous Plan $9.9 million 30 years Total UAAL $30.5 million Court Validation Process The San Mateo Superior Court of the State of California entered a default judgment on August 17, 2006 validating the CalPERS contract(s), the debenture and the issuance of the POBs as legal binding obligations of the City. A 30-day appeal period is currently in effect. On September 16, 2006, the judgment will become binding and conclusive in accordance with State law. Early Payment of FY06-07 CalPERS Normal Costs The City also will pay the remaining annual normal costs for the 2006-07 fiscal year. The City will prepay the costs due for October 2006 through June 2007. The payments for July through September will have already been made as part of the normal payroll process. The prepayment will produce a one-time budgetary savings of$1.87 million in the current budget. The savings will be carried over into the ensuing fiscal year, FY07-08, and earmarked for capital improvements given that the funds are available just once. Plan Type Nine-Month Prepayment Amount Fire Plan $535,339 Police Plan $601,698 Miscellaneous Plan $733,196 Total Prepayment $1,870,233 Bond Issuance Schedule September 2006 - Council approval of Preliminary Official Statement and Bond Purchase Agreement— September 5 - Print and mail Preliminary Official Statement— September 7 - Court Validation Appeal Process Completed—September 16 - Bond Pricing— September 19 - Execute Bond Documents—September 27 - Pay-off Ca1PERS UAAL— September 28 Negotiated Sale The issuance of pension obligation bonds is a non-traditional financing complicated by the need for actuarially determined bond amounts, a Superior court validation process and market timing. Therefore timely and structural flexibility — the ability to sell the bonds at any time and to change the structure of the issue in response to changing timelines and market conditions — was important. A negotiated sell provides this required flexibility. In addition, because the underwriter(E.J. De La Rosa) is assured the right to purchase the bonds upon Council approval of the purchase agreement, the underwriter plays a critical role in effectively pre-selling the issue — finding and generating investor interest. Potential investors may not be familiar with the City of Burlingame, its Ca1PERS retirement obligations, or the use pension obligation bonds and a competitive sale may result in investors requesting a premium on the bonds adding to the cost of borrowing. Pre-selling the bonds by developing and promulgating information about the debt and its issuer can reduce inventory risk (not being able to resell the bonds) leading to a lower risk premium at pricing. Appropriate market pricing by the underwriter will be ascertained using comparable transactions at the time of the pricing. ATTACHMENTS: A Resolution of the City Council of the City of Burlingame Approving the Bond Purchase Agreement and Official Statement In Connection with Pension Obligation Bonds and Authorizing Other Matters Relating Thereto City of Burlingame Taxable Pension Obligation Bonds, 2006 Series A Bond Purchase Agreement Preliminary Official Statement, City of Burlingame Taxable Pension Obligation Bonds, 2006 Series A Actuarial Certification Letter,Bartel Associates, Inc., dated August 31, 2006 RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BURLINGAME APPROVING THE BOND PURCHASE AGREEMENT AND OFFICIAL STATEMENT IN CONNECTION WITH PENSION OBLIGATION BONDS AND AUTHORIZING OTHER MATTERS RELATING THERETO RESOLVED,by the City Council of the City of Burlingame: WHEREAS,the City Council (the "City Council") of the City of Burlingame (the "City") adopted a retirement plan pursuant to the Public Employees'Retirement Law, commencing with Section 20000 of the Government Code of the State of California, as amended (the "Retirement Law"); and WHEREAS,the Retirement Law obligates the City to (1) make annual contributions to the California Public Employees' Retirement System(the "System")to fund pension benefits for its employees, (2) amortize the unfunded accrued actuarial liability with respect to such pension benefits, and(3) appropriate funds for the purposes described in (1) and(2); and WHEREAS, the obligation of the City to pay its unfunded accrued actuarial liability to the System and its normal annual contribution to the System for its police, fire and miscellaneous pension plans (collectively,the "Pension Obligation")are evidenced by contracts between the City and the System, as heretofore and hereafter amended from time to time (collectively,the "PERS Contract"); and WHEREAS, under and pursuant to Resolution No. 43-2006 (the "POB Resolution") adopted on June 19, 2006, the City Council authorized the issuance of bonds (the "Pension Obligation Bonds") in an aggregate principal amount not to exceed the Pension Obligation, plus an additional amount to pay costs of issuance of the Pension Obligation Bonds, for the purpose of refunding the PERS Contract and thereby providing funds to the System in payment of all or part of the Pension Obligation; and WHEREAS,the City Council determined to supplement the POB Resolution as provided herein; and WHEREAS, there are on file with the City Clerk the proposed forms of Bond Purchase Agreement for the Pension Obligation Bonds (the "Purchase Agreement")between the City and E.J. De La Rosa& Co., Inc. as underwriter(the "Underwriter") and the Preliminary Official Statement relating to the Pension Obligation Bonds, NOW,THEREFORE,IT IS RESOLVED AND ORDERED: 1 Section 1. The proposed form of Purchase Agreement, between the City and the Underwriter, on file with the City Clerk, is hereby approved. The City Manager and the Finance Director/Treasurer(the "Authorized Representatives") are each hereby authorized and directed, severally, or any such officer's designee, for and on behalf of the City,to execute and deliver the Purchase Agreement, substantially in the form on file with the City Clerk, with such changes therein, deletions therefrom and additions thereto as such Authorized Representative shall approve, such approval to be conclusively evidenced by the execution and delivery thereof. Section 2. The proposed form of Preliminary Official Statement relating to the Pension Obligation Bonds (the "Preliminary Official Statement"), on file with the City Clerk, is hereby approved. The Authorized Representatives are each hereby authorized and directed, severally, or any such officer's designee, for and on behalf of the City, to execute the final Official Statement, and to deliver the.Official Statement in substantially said form, with such changes therein, deletions therefrom and additions thereto, as such Authorized Representative shall approve, such approval to be conclusively evidenced by the execution and delivery thereof. Distribution by the Underwriter of a Preliminary Official Statement relating to the Pension Obligation Bonds is hereby approved. Section 3. The Authorized Representatives are each hereby authorized and directed, severally, or any such officer's designee, for and on behalf of the City, to execute a Continuing Disclosure Certificate containing such covenants of the City as shall be necessary to comply with the requirements of Securities and Exchange Commission Rule 15c2-12. The City hereby covenants and agrees that it will comply with and carry out all of the provisions of such Continuing Disclosure Certificate. Section 4. Except as otherwise herein specifically supplemented, all terms and provisions of the POB Resolution shall remain in full force and effect, and all authorizations, provisions and terms of the POB Resolution shall apply to this resolution with the same effect as if set forth herein. The officers and agents of the City are, and each of them hereby is, authorized and directed to do any and all things and to execute and deliver any and all documents which they or any of them deem necessary or advisable in order to consummate the transactions contemplated by this resolution,the Trust Agreement,the Purchase Agreement and the Pension Obligation Bonds and otherwise to carry out, give effect to and comply with the terms and intent of this resolution, including but not limited to investment agreements, forward purchase agreements and a letter of representations and other agreements with The Depository Trust Company, and all such actions heretofore taken by such officers are hereby ratified, confirmed and approved. Section 5. This resolution shall take effect from and after its date of adoption. MAYOR 2 I, DORIS MORTENSEN, City Clerk of the City of Burlingame, do hereby certify that the foregoing resolution was introduced at a regular meeting of the City Council held on the day of , 2006, and was adopted thereafter by the following vote: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: CITY CLERK 3 DRAFT 8/28/06 CITY OF BURLINGAME TAXABLE PENSION OBLIGATION BONDS, 2006 SERIES A BOND PURCHASE AGREEMENT , 2006 City of Burlingame Burlingame, California 94010 Ladies and Gentlemen: E.J. De La Rosa & Co., Inc. (the "Underwriter"), offers to enter into this Bond Purchase Agreement with you, the City of Burlingame, California (the "City"), for the purchase by the Underwriter of the City's Taxable Pension Obligation Bonds, 2006 Series A (the "Bonds"). The Bonds are being issued to refund a portion of the obligation of the City to the California Public Employees' Retirement System (the "System") of its existing unfunded actuarial accrued liability and its normal annual contribution for Fiscal Year 2006-07 evidenced by contracts between the City and the System (collectively, the "PERS Contract"). This offer is made subject to written acceptance by the City at or prior to 11:59 p.m., California time, on the date hereof, and, if not so accepted, will be subject to withdrawal by the Underwriter upon notice delivered to the City at any time prior to the acceptance hereof by the City. Upon such acceptance this Bond Purchase Agreement shall be in full force and effect in accordance with its terms and shall be binding upon the City and the Underwriter. Section 1. Purchase and Sale. Upon the terms and conditions and in reliance on the representations, warranties and agreements herein set forth, the Underwriter hereby agree to purchase, and the City hereby agrees to execute and direct The Bank of New York Trust Company, N.A., as Trustee (the "Trustee"), to authenticate and deliver to the Underwriter, all (but not less than all) of the $ aggregate principal amount of the Bonds at the purchase price of$ (representing the par amount of the Bonds less an Underwriter's discount of$ ) (the "Purchase Price"). The Bonds shall be as described in the Official Statement and shall be executed, delivered and secured under and pursuant to a Trust Agreement dated as of September 1, 2006 (the "Trust Agreement") by and between the City and the Trustee. The principal amount, maturities, interest rates and terms of the Bonds are as set forth in Schedule I attached hereto. The execution and delivery of the Trust Agreement and the Bonds have been authorized by a Resolution of the City adopted on June 19, 2006, as supplemented by a Resolution adopted on September 5, 2006 (collectively, the "Resolution"), and the Bonds shall be as described in, and shall be secured under and pursuant to, the Trust Agreement. US WEST:260070628.2 The Bonds shall be payable and shall be subject to redemption as provided in the Trust Agreement. The Trust Agreement, the Resolution, the PERS Contract, the Continuing Disclosure Certificate dated as of September_, 2006 (the "Continuing Disclosure Certificate"), and this Bond Purchase Agreement are referred to collectively herein as the "Legal Documents." Capitalized terms not otherwise defined herein shall have the meanings as defined in the Trust Agreement. Section 2. Use of Documents. The City hereby ratifies any prior use of and authorizes the future use by the Underwriter, in connection with the offer and sale of the Bonds, of this Bond Purchase Agreement, the Preliminary Official Statement and the Official Statement, the Resolution, the Continuing Disclosure Certificate and the Trust Agreement, and all information contained herein and therein and all of the documents, certificates or statements furnished by the City to the Underwriter in connection with the transactions contemplated by this Bond Purchase Agreement. Section 3. Official Statement. The City by official action of its governing board has approved the form and distribution of the Preliminary Official Statement dated September_, 2006 (the "Preliminary Official Statement") relating to the Bonds and the distribution of an Official Statement (together with any amendment or supplement authorized by the City, the "Official Statement"), consisting of the Preliminary Official Statement with such changes as may be made thereto, with the approval of the City and the Underwriter, from time to time prior to the Closing Date (hereinafter defined). By execution of this Bond Purchase Agreement the City confirms that the City has deemed the Preliminary Official Statement to be final as of its date for purposes of Rule 15c2-12 promulgated under the Securities Exchange Act of 1934 ("Rule 15c2-12"), except for the omission of certain information permitted to be omitted therefrom in accordance with Rule 15c2-12. It is a condition of the offer of the Underwriter made hereby that the City deliver a reasonable number of copies of the Official Statement (but in no event shall the City be obligated to pay for more than copies), in a form deemed to be final for purposes of Rule 15c2-12, within seven business days of the date hereof; and the delivery of a certificate substantially in the form attached hereto as Exhibit A executed by a representative of the City shall conclusively establish that the City deems the document so delivered to be final. Failure of the City to comply with the foregoing sentence shall not be deemed a breach of this agreement or a termination event. The Underwriter shall give notice to the City on the date after which no participating Underwriter, as such term is defined in Rule 15c2-12, remains obligated to deliver the Official Statement pursuant to paragraph (b)(4) of the Rule. Prior to the earlier of(i) such receipt of notice from the Underwriter that the Official Statement is no longer required under the Rule or (ii)twenty-five (25) days after the Closing, the City shall provide the Underwriter with such information regarding the City, its current financial condition and ongoing operations as the Underwriter may reasonably request. Unless otherwise notified in writing by the Underwriter on or prior to the date of the Closing, the City may assume that the "end of the underwriting period" for the Bonds US WEST:260070628.2 2 for all purposes of Rule 15c2-12 under the Securities and Exchange Act of 1934 is the date of the Closing. In the event such notice is given in writing by the Underwriter, the Underwriter agrees to notify the City in writing following the occurrence of the "end of the underwriting period" as defined in Rule 15c2-12 for the Bonds. The "end of the underwriting period" as used in this Bond Purchase Agreement shall mean the date of Closing or such later date as to which notice is given by the Underwriter in accordance with the preceding sentence. Section 4. Closing. (a) At a.m., San Francisco time, on September—, 2006 or at such other time or on such earlier or later date as the parties hereto shall agree upon (the "Closing Date"), the City will deliver or cause to be delivered the Bonds to The Depository Trust Company ("DTC") in New York, New York in accordance with the requirements of paragraph (b) below and subject to the terms and conditions hereof the Underwriter will accept such delivery and pay the purchase price thereof in immediately available funds (by wire transfer or such other manner of payment as the Underwriter and the City shall reasonably agree upon) to the order of the City (such delivery and payment and the other actions contemplated hereby to take place at the time of such delivery and payment referred to herein as the "Closing"). At or prior to the Closing Date, the Underwriter shall receive at the offices of Orrick, Herrington & Sutcliffe LLP, San Francisco, California (or such other place as may be mutually agreed upon) the documents described in Section 9 (c)hereof. (b) The Bonds shall be executed and delivered under and in accordance with the provisions of this Bond Purchase Agreement. The Bonds shall be in definitive form, shall bear CUSIP numbers, and shall be in the form of a fully registered certificate in the name of Cede & Co., as nominee of DTC, for each of the maturities of the Bonds Section 5. jGood Faith Check: Liquidated Damages. Delivered to the Trustee herewith is a corporate check payable to the order of the City in the amount of $ as a good faith deposit for the performance by the Underwriter of its obligation to accept and pay for the Bonds at the Closing (as defined below) in accordance with the provisions of this Bond Purchase Agreement. Such good faith deposit shall be held uncashed by the Trustee and shall be returned to the Underwriter on the Closing Date. If such good faith deposit is not cashed, it shall be returned to the Underwriter on the Closing Date. In the event the City does not accept this offer, such good faith deposit promptly shall be returned to the Underwriter. In the event of the City's inability to deliver the Bonds at the Closing or to satisfy the conditions of the Underwriter's obligations contained herein (unless such obligations are waived by the Underwriter), or in the event the Underwriter's obligations hereunder shall be terminated for any reason permitted herein, the good faith deposit promptly shall be returned to the Underwriter and such return. shall constitute a full release and discharge of all claims by the Underwriter against the City arising out of the transactions contemplated by this Bond Purchase Agreement. In the event that the Underwriter fails (other than for reasons permitted herein) to accept and pay for the Bonds at the Closing as herein provided, the good faith deposit shall be retained and applied by the City in full and complete liquidation and discharge of damages suffered on the part of the City as a result of such US WEST:260070628.2 3 failure. The Underwriter and the City recognize that the City will suffer financial loss in the event the Underwriter defaults in its obligation to purchase the Bonds hereunder, the exact amount of which loss would be impracticable to ascertain, and that the good faith deposit represents a reasonable estimate, made in good faith, of such loss in accordance with California Civil Code Section 1671.] Section 6. City Representations, Warranties and Agreements. The City represents, warrants to, and agrees with the Underwriter that, as of the date hereof and as of the Closing Date: (a) The City is a municipal corporation duly organized and operating pursuant to the Constitution and laws of the State of California and has all necessary power and authority to enter into and perform its duties under the Bonds and the Legal Documents and, when executed and delivered by the respective parties thereto, the Bonds and the Legal Documents will each constitute the legally valid and binding obligation of the City, enforceable against the City in accordance with its respective terms, except as limited by bankruptcy, insolvency, reorganization, moratorium or similar laws or equitable principles relating to or limiting creditors' rights generally and to the effect of general principles of equity including, without limitation, concepts of materiality, reasonableness, good faith and fair dealing and the possible unavailability of specific performance or injunctive relief, regardless of whether considered in a proceeding in equity or at law; (b) The City is, and at the Closing shall, be in compliance in all material respects with the Bonds and the Legal Documents; (c) The Preliminary Official Statement and, as of the date hereof, the Official Statement (excluding the statements and information under the captions "Financial Guaranty Insurance," Appendix D — "DTC and the Book-Entry System," and Appendix G - "Specimen Financial Guaranty Insurance Policy") did not and does not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made,not misleading; (d) There is no action, suit, proceeding, inquiry or investigation by or before any court, governmental agency, public board or body to which the City is a party and has either been served with a summons and complaint or been given written notice thereof, (i) seeking to restrain or enjoin the execution, sale or delivery of the Bonds; (ii) in any way contesting or affecting the validity or enforceability of the Bonds or the Legal Documents; (iii) contesting in any way the completeness or accuracy of the Official Statement; or (iv) contesting the authority of the City with respect to the Bonds or the Legal Documents; (e) The City Council has duly adopted the Resolution and the City has duly authorized and approved the execution and delivery of, and the performance by the City of its obligations contained in, the Bonds and the Legal Documents, and required for US WEST:260070628.2 4 the consummation of all other transactions contemplated by this Bond Purchase Agreement, the Trust Agreement and the Official Statement; (f) The City has, and as of the Closing Date will have, full legal right, power and authority (i) to enter into this Bond Purchase Agreement, (ii) to adopt the Resolution, (iii) to make undertakings of the City as provided for in the Bonds and the Legal Documents, (iv) to authorize the execution, sale and delivery of the Bonds to the Underwriter pursuant to the Trust Agreement and this Bond Purchase Agreement as provided herein and therein, and (v) to carry out and consummate the transactions contemplated by the Resolution and the Trust Agreement and the Official Statement; (g) The City agrees to cooperate with the Underwriter in endeavoring to qualify the Bonds for offering and sale under the securities or blue sky laws of such jurisdictions of the United States as the Underwriter may request; provided, however, that the City shall not be required to execute a special or general consent to service of process in any jurisdiction in which it is not now so subject or to qualify to do business in any jurisdiction where it is not now so qualified; (h) The City is not in breach of or in default under any material applicable law or administrative regulation of the State of California or the United States or any material applicable judgment or decree or any material loan agreement, indenture, bond, agreement or other instrument to which the City is a party or is otherwise subject which breach or default would have a material and adverse impact on the City's ability to perform its obligations the Bonds or the Legal Documents, and no event has occurred and is continuing which, with the passage of time or the giving of notice, or both, would constitute a default or an event of default under any such instrument; (i) If at any time from the date hereof to and including 25 days from the "end of the underwriting period" any event occurs of which the City has knowledge, as a result of which the Official Statement would include an untrue statement of a material fact, or omit to state any material fact necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading, the City will cooperate with the Underwriter in the preparation and furnishing of an amendment or supplement to the Official Statement; 0) If the information contained in the Official Statement is amended or supplemented pursuant to the immediately preceding subparagraph, at the time of each supplement or amendment thereto and (unless subsequently again supplemented or amended pursuant to such subparagraph) at all times subsequent thereto up to and including 25 days from the Closing Date, the portions of the Official Statement so supplemented or amended (including any financial and statistical data contained therein) will be true and correct in all material respects and such information will not contain any untrue or misleading statement of a material fact or omit to state any material fact necessary to make the information therein, in light of the circumstances under which it was made, not misleading, except that no representation is made concerning the statements and information under the captions "Financial Guaranty Insurance," US WEST:260070628.2 5 Appendix D — "DTC and the Book-Entry System," Appendix G - "Specimen Financial Guaranty Insurance Policy"; (k) Pursuant to the Continuing Disclosure Certificate, the City has agreed to provide, or cause to be provided, to each nationally recognized municipal securities information repository and any public or private repository or entity designated by the State as a state repository for purposes of Rule 15c2-12(b)(5) adopted by the Securities and Exchange Commission (each, a "Repository") certain annual financial information and operating data of the type disclosed in the Official Statement, including its audited financial statements, and timely notice of the occurrence of certain material events respecting the Bonds. These covenants have been made in order to assist the Underwriter in complying with SEC Rule 15c2-12(b)(5). The City has never failed to comply in all material respects with any previous undertakings with regard to said Rule to provide such annual financial information and notices of material events; and (1) The default judgment on the validation action has not been appealed or otherwise challenged. Section 7. Underwriter's Representations, Warranties and Agreements. The Underwriter represents, warrants to and agrees with the City that, as of the date of hereof and as of the Closing Date: (a) The execution and delivery hereof and the consummation of the transactions contemplated hereby does not and will not violate any of the prohibitions set forth in Rule G-37 promulgated by the Municipal Securities Rulemaking Board (the "MS"19 (b) All reports required to be submitted to the MSRB pursuant to Rule G-37 have been and will be submitted to the MSRB; and (c) The Underwriter has not paid or agreed to pay, nor will they pay or agree to pay, any entity, company, firm, or person (including, but not limited to any officer, agent or employee of the City), other than a bona fide officer, agent or employee working for the Underwriter, any compensation, fee, gift or other consideration contingent upon or resulting from the award of or entering into this Bond Purchase Agreement. Section 8. Conditions to the Obligation of the City. The City has entered into this Bond Purchase Agreement in reliance upon the representations and warranties of the Underwriter contained herein and upon the performance by the Underwriter of its obligations hereunder at or prior to the Closing Date. Accordingly, the obligation of the City under this Bond Purchase Agreement to deliver the Bonds is subject to the performance by the Underwriter of its obligations to be performed hereunder at or prior to the Closing. Section 9. Conditions to the Obligation of the Underwriter. The obligation of the Underwriter to accept delivery of and pay for the Bonds at the Closing is subject to the accuracy in all material respects of the representations, warranties and agreements on US WEST:260070628.2 6 the part of the City contained herein, as of the date hereof and as of the Closing Date, to the accuracy in all material respects of the statements of the officers and other officials of the City made in any certificates or other documents furnished pursuant to the provisions hereof, the Bonds and the Legal Documents, and to the performance by the City of its obligations to be performed hereunder and under the Bonds and the Legal Documents on or prior to the Closing Date, and to the following additional conditions: (a) As of the Closing Date, the Bonds, the Legal Documents and the Official Statement shall have been duly authorized, executed and delivered by the respective parties thereto, in substantially the forms heretofore submitted to the Underwriter with only such changes as shall have been agreed to by the Underwriter, and said agreements shall not have been amended, modified or supplemented, except as may have been agreed to by the Underwriter. (b) Between the date hereof and the Closing Date, the market price or marketability, at the initial offering prices set forth in the Official Statement, of the Bonds shall not have been materially adversely affected in the reasonable judgment of the Underwriter (evidenced by a written notice to the City terminating the obligation of the Underwriter to accept delivery of and pay for the Bonds) by reason of any of the following: (1) legislation enacted or introduced in the Congress or recommended for passage by the President of the United States, or a decision rendered by a court established under Article III of the Constitution of the United States or by the United States Tax Court, or an order, ruling, regulation (final, temporary or proposed) or official statement issued or made by or on behalf of the Securities and Exchange Commission, or any other governmental agency having jurisdiction over the subject matter thereof, to the effect that the Bonds, or obligations of the general character of the Bonds, including any and all underlying arrangements, are not exempt from registration under the Securities Act of 1933, as amended, or that the Trust Agreement is not exempt from qualification under the Trust Indenture Act of 1939, as amended; (2) the declaration of war or engagement in major military hostilities by the United States or the occurrence of any other national emergency or calamity relating to the effective operation of the government or the financial community in the United States; (3) the declaration of a general banking moratorium by federal, New York or California authorities, or the general suspension of trading on any national securities exchange; (4) the imposition by the New York Stock Exchange, other national securities exchange, or any governmental authority, of any material restrictions not now in force with respect to the Bonds, or obligations of the general character of the Bonds, or securities generally, or the material increase of US WEST:260070628.2 7 any such restrictions now in force, including those relating to the extension of credit by, or the charge to the net capital requirements of, the Underwriter; (5) an order, decree or injunction of any court of competent jurisdiction, or order, filing, regulation or official statement by the Securities and Exchange Commission, or any other governmental agency having jurisdiction over the subject matter thereof, issued or made to the effect that the issuance, offering or sale of obligations of the general character of the Bonds, including any or all underlying obligations, as contemplated hereby or by the Official Statement, is or would be in violation of the Federal securities laws as amended and then in effect; (6) any amendment to the federal or California Constitution or action by any federal or California court, legislative body, regulatory body or other authority materially adversely affecting the validity or enforceability of the Bonds; or (7) any rating of the Bonds shall have been downgraded, suspended, or withdrawn by a national rating service, which, in the Underwriter's reasonable opinion, materially adversely affects the marketability or market price of the Bonds; or (8) any event occurring, or information becoming known which, in the reasonable judgment of the Underwriter, makes untrue in any material adverse respect any statement or information contained in the Official Statement, or has the effect that the Official Statement contains any untrue statement of a material fact or omits to state a material fact required to be stated therein in order to make the statements made therein, in light of the circumstances under which they were made, not misleading, provided that the City, after having received written notice thereof does not cure said defect in the Official Statement as required herein; (c) On or prior to the Closing Date, the Underwriter shall have received copies of the following documents, in each case reasonably satisfactory in form and substance to the Underwriter: (1) this Bond Purchase Agreement; (2) the Resolution, the Trust Agreement and the Continuing Disclosure Certificate; (3) an approving opinion, dated the Closing Date and addressed to the City, of Bond Counsel, in substantially the form attached as Appendix F to the Official Statement, together with a reliance letter of such counsel, dated the Closing Date and addressed to the Underwriter, to the effect that such opinion addressed to the City may be relied upon by the Underwriter to the same extent as if such opinion was addressed to it, together with an additional supplemental opinion, dated the Closing Date and addressed to the Underwriter: US WEST:260070628.2 8 (i) the statements in the Official Statement, under the captions "The 2006 Series A Bonds (but excluding any information about the Depository Trust Company)," "Security and Sources of Payment for the Bonds," "Bond Counsel Opinion" and Appendix E - "Summary of the Trust Agreement" insofar as such statements expressly summarize certain provisions of the Bonds, the Trust Agreement, the Resolution and the opinion of Bond Counsel concerning the exemption of the interest on the Bonds from State of California personal income tax, are accurate in all material respects; and (ii) the Bonds are exempt from registration pursuant to the Securities Act of 1933, as amended, and the Trust Agreement is exempt from qualification pursuant to the Trust Indenture Act of 1939, as amended; (4) the opinion of the City Attorney, reasonably satisfactory to the Underwriter, dated the Closing Date and addressed to the Underwriter in substantially the form of Exhibit B, attached hereto; (5) a certificate, dated the Closing Date and signed by a duly authorized official of the of the City, to the effect that: (i) the representations and warranties of the City contained herein are true and correct in all material respects on and as of the Closing Date with the same effect as if made on the Closing Date; (ii) no event has occurred since the date of the Official Statement which should be disclosed in the Official Statement for the purpose for which it is to be used or which it is necessary to disclose therein in order to make the statements and information therein, in light of the circumstances under which they were made, not misleading in any material respect; (iii) the City has complied with all agreements and satisfied all the conditions on its part to be performed or satisfied under the Legal Documents and the Official Statement at and prior to the Closing Date; (iv) the information contained in the Official Statement (excluding the statements and information under the captions "Financial Guaranty Insurance," Appendix D — DTC and the "Book-Entry System," and Appendix G - "Specimen Financial Guaranty Insurance Policy") is true and correct in all material respects and does not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein in order to make the statements made therein, in light of the circumstances under which they were made, not misleading in any material respect; and US WEST:260070628.2 9 (v) the adoption of the Resolution and the execution and delivery of the Bonds and the Legal Documents and compliance with the provisions thereof, under the circumstances contemplated thereby, do not constitute on the part of the City a material breach of or material default under any material agreement or other material instrument executed by or binding upon the City or any of its properties. (6) an opinion of Orrick, Herrington & Sutcliffe LLP, San Francisco, California, Disclosure Counsel, dated the Closing Date and addressed to the Underwriter, (which opinion may be included in the supplemental opinion referenced in Section 9(c)(3) hereof) in form and substance satisfactory to the Underwriter; (7) a certificate of the Trustee to the effect that: (i) the Trustee is duly organized and existing as a national banking association in good standing under the laws of the United States of America having the full power and authority to enter into and perform its duties under the Trust Agreement and to authenticate and deliver the Bonds to the Underwriter pursuant to the terms of the Trust Agreement; (ii) the execution and delivery by the Trustee of the Trust Agreement and compliance with the terms thereof will not, in any material respect, conflict with, or result in a violation or breach of, or constitute a default under, its articles of incorporation or by-laws, any loan agreement, indenture, bond, note, resolution or any other agreement or instrument to which the Trustee is a party or by which it is bound, or any law or any rule, regulation, order or decree of any court or governmental agency or body having jurisdiction over the Trustee or any of its activities or properties, or (except with respect to the lien of the Trust Agreement) result in the creation or imposition of any lien, charge or other security interest or encumbrance of any nature whatsoever upon any of the property or assets of the Trustee; (iii) no consent, approval, authorization or other action by any governmental or regulatory authority having jurisdiction over the Trustee is or will be required for the execution and delivery by the Trustee of the Trust Agreement or the authentication and delivery of the Bonds; and (iv) there is no litigation pending or threatened against or affecting the Trustee to restrain or enjoin the Trustee's participation in, or in any way contesting the powers of the Trustee with respect to the transactions contemplated by the Bonds or the Trust Agreement. US WEST:260070628.2 10 (8) an opinion of counsel to the Trustee, dated the date of Closing, addressed to the Underwriter, to the effect that: (i) the Trustee has been duly organized and is validly existing in good standing as a national banking association under.the laws of the United States of America with full corporate power to undertake the trust of the Trust Agreement; (ii) the Trustee has duly authorized, executed and delivered the Trust Agreement and by all proper corporate action has authorized the acceptance of the duties and obligations of the Trustee under the Trust Agreement and has authorized in such capacity the authentication and delivery of the Bonds; (iii) assuming due authorization, execution and delivery by the City, the Trust Agreement is the valid, legal and binding agreements of the Trustee, enforceable in accordance with their terms, except as such enforcement may be limited by bankruptcy, insolvency, reorganization or other similar laws affecting the enforcement of creditors' rights in general and by general equity principles (regardless of whether such enforcement is considered in a proceeding in equity or at law); (9) proof of receipt of a rating on the Bonds of"AAA" from Standard&Poor's Ratings Services, and that such rating is then in effect; and (10) a copy of the fully executed Insurance Policy; (11) a certificate of an authorized representative of the Insurer in form and substance satisfactory to Bond Counsel and the City Attorney; (12) an opinion of counsel to the Insurer addressed to the City and the Underwriter in form and substance satisfactory to Bond Counsel and the City Attorney; (13) a copy of the default judgment in the validation action; and (14) such additional legal opinions, certificates, proceedings, instruments and other documents as the Underwriter may reasonably request. Section 10. Expenses. There shall be paid from the proceeds of the Bonds or by the City the following expenses: (a) the cost of preparation, printing, executing and delivering the Bonds; (b) any fees charged by any rating agency for rating the Bonds; (c) the cost of preparing, distributing and delivering the Official Statement; (d) the fees and disbursements of Bond Counsel; and (e) any out-of-pocket disbursements of the City to be paid from the proceeds of the Bonds. The Underwriter shall pay the following expenses: (a) all out-of-pocket expenses of the Underwriter; (b) fees payable to the California Debt and Investment Advisory Commission in connection with the Bonds; (c) fees and expenses of the Municipal Securities Rulemaking Board and the Public US WEST:260070628.2 II Securities Association in connection with the Bonds; (d) all expenses relating to the printing of CUSIP numbers on the Bonds and the CUSIP Service Bureau charge for the assignment of such numbers; and (e) costs of preparation of any blue sky and legal investment memoranda and fees for blue sky qualification, if any. Section 11. Notices. Any notices to be given the Underwriter shall be given in writing to E.J. De La Rosa & Co., Inc., 90 New Montgomery Street, Suite 414, San Francisco, California 94105, Attention: John Kim. Any notices to be given to the City shall be given in writing to the City of Burlingame, City Hall - 501 Primrose Road, Burlingame, California 94010, Attention: Jesus Nava, Finance Director. Section 12. No Third Party Beneficiaries. This Bond Purchase Agreement has been signed on behalf of the City, and the Underwriter, and no person other than the foregoing and their successors shall acquire or have any right under or by virtue of this Bond Purchase Agreement. All of the representations, warranties and agreements contained in this Bond Purchase Agreement shall survive the delivery of and payment for the Bonds and any termination hereof. Section 13. Applicable Law. This Bond Purchase Agreement shall be interpreted, governed and enforced in accordance with the laws of the State of California. Section 14. Effectiveness. This Bond Purchase Agreement shall become effective upon the execution hereof by the Underwriter and the City and shall be valid and enforceable from and after the time of such execution. Section 15. Severability. In the event any provision of this Bond Purchase Agreement shall be held invalid or unenforceable by any court of competent jurisdiction, such holding shall not invalidate or render unenforceable any other provision hereof. Section 16. Nonassignment. Notwithstanding anything stated to the contrary herein, neither party hereto may assign or transfer its interest herein, or delegate or transfer any of its obligations hereunder, without the prior written consent of the other party hereto. Section 17. Entire Agreement. This Bond Purchase Agreement, when executed by the parties hereto, shall constitute the entire agreement of the parties hereto (including their permitted successors and assigns,respectively). US WEST:260070628.2 12 Section 18. Counterparts. This Bond Purchase Agreement may be executed simultaneously in several counterparts, each of which shall be an original and all of which shall constitute one and the same instrument. E.J. DE LA ROSA & CO., INC. By: Accepted: CITY OF BURLINGAME By: US WEST:260070628.2 13 EXHIBIT A CITY OF BURLINGAME TAXABLE PENSION OBLIGATION BONDS, 2006 SERIES A The undersigned hereby certifies and represents to E.J. De La Rosa & Co., Inc. (the "Underwriter") for the above-captioned bonds, that he is the duly appointed representative of the City of Burlingame (the "City"), authorized to execute and deliver this Certificate and further hereby certifies to the Underwriter as follows: (1) This Certificate is delivered to enable the Underwriter to comply with Securities and Exchange Commission Rule 15c2-12 under the Securities Exchange Act of 1934 (the "Rule") in connection with the sale of the City's Taxable Pension Obligation Bonds, 2006 Series A in the aggregate principal amount of$ (the"Bonds")by the Underwriter. (2) In connection with the sale of the Bonds, a Preliminary Official Statement dated , 2006, was prepared by the City, setting forth information concerning the Bonds and the City (the "Preliminary Official Statement"). (3) As used herein, "Permitted Omissions" shall mean the offering price(s), interest rate(s), selling compensation, aggregate principal amount, principal amount per maturity, delivery dates, ratings, and other terms of the Bonds depending on such matters, information as to insurance on the Bonds and the identity of the Underwriter, all with respect to the Bonds being offered. (4) The information included in the Preliminary Official Statement is, as of its date, final within the meaning of the Rule, except for Permitted Omissions and information related to the Insurer. IN WITNESS WHEREOF, I have hereunto set my hand this day of September, 2006. CITY OF BURLINGAME By: Finance Director US WEST:260070628.2 A-1 EXHIBIT B [DRAFT FORM OF CITY ATTORNEY OPINION] [CLOSING DATE] City of Burlingame Burlingame, California E.J. De La Rosa& Co., Inc. San Francisco, California Re: City of Burlingame Taxable Pension Obligation Bonds, 2006 Series A Ladies & Gentlemen: I am the City Attorney for the City of Burlingame (the "City") in connection with the adoption of Resolution No. of the City Council on June 19, 2006, as supplemented by Resolution No. adopted on September , 2006 (the "Resolutions") and the issuance of$ City of Burlingame Taxable Pension Obligation Bonds, 2006 Series A (the "Bonds"). The Bonds are to be issued pursuant to the Trust Agreement, dated as of September 1, 2006, between the City and The Bank of New York Trust Company,N.A., as Trustee (the "Trust Agreement"). I have examined the Resolutions, the Trust Agreement, the Bond Purchase Agreement entered into between the City and the Underwriter of the Bonds (the "Bond Purchase Agreement") and the Continuing Disclosure Certificate dated as of , 2006 (the "Continuing Disclosure Certificate," and together with the Trust Agreement and the Bond Purchase Agreement, the "Legal Documents"), and the Official Statement relating to the Bonds dated 2006 (the "Official Statement"). Based upon the foregoing, I am of the opinion that: 1. The City is a municipal corporation of the State of California, duly organized and validly existing pursuant to the Constitution and the laws of the State of California. 2. The City has full corporate power and authority to execute and deliver the Bonds,the Legal Documents and the Official Statement. 3. The City has duly authorized, executed and delivered the Bonds, the Legal Documents and the Official Statement and the Bonds and each Legal Document are legal, valid, and binding against the City, enforceable against the City in accordance with its terms, except as limited by bankruptcy, insolvency, reorganization, US WEST:260070628.2 B-1 fraudulent conveyance, moratorium or laws relating to or affecting creditors' rights, the application of equitable principles, the exercise of judicial discretion in appropriate areas, and the limitations on legal remedies against cities in the State of California. 4. The Resolutions were duly adopted at meetings of the City Council which were called and held pursuant to law with all public notice required by law and at which a quorum was present and acting when the Resolutions were adopted. 5. The Resolutions are in full force and effect and have not been amended, modified, supplemented or rescinded (except that Resolution No. was supplemented by Resolution No. _). 6. To the best of my knowledge, except as disclosed in the Official Statement, no action, suit, proceeding, inquiry or investigation, at law or in equity, before or by any court, public board or body, is pending or threatened in any way against the City affecting the existence of the City or the titles of its Council members or officers to their respective offices, or seeking to restrain or to enjoin the issuance, sale or delivery of the Bonds, the application of the proceeds thereof in accordance with the Trust Agreement, or in any way contesting or affecting the validity or enforceability of the Bonds, the Resolutions, the Legal Documents or any action of the City contemplated by any of said documents, or in any way contesting the completeness or accuracy of the Official Statement or the powers of the City or its authority with respect to the Bonds, the Resolutions, the Legal Documents or any action on the part of the City contemplated by any of said documents, or in any way seeking to enjoin or restrain the City from paying the Bonds or which if determined adversely to the City would have a material and adverse effect upon the City's ability to pay debt service on the Bonds, nor to my knowledge is there any basis therefor. The default judgment on the validation action has not been appealed or otherwise challenged. 7. Insofar as it would materially adversely affect the City's ability to enter into, carry out and perform its obligations under any or all of the foregoing agreements, or consummate the transactions contemplated by the same, the City is not in breach of or default under any applicable constitutional provision, law or administrative regulation of the State or the United States or any applicable judgment or decree or any loan agreement, indenture, bond, note, resolution, agreement or other instrument to which it is a party or to which it or any of its property or assets is otherwise subject, and, to the best of my knowledge, no event has occurred and is continuing which with the passage of time or the giving of notice, or both, would constitute a default or an event of default under any such instrument, and the adoption of the Resolutions and the execution and delivery by the City of the Legal Documents, and compliance with the provisions thereof, under the circumstances contemplated thereby, do not and will not in any material respect conflict with or constitute on the part of the City a breach of or default under any agreement or other instrument to which the City is a party or by which it is bound or any existing law, regulation, court order or consent decree to which the City is subject. 8. Except as may be required under the "blue sky" and other securities laws of any state, to the best of my knowledge, all approvals, consents, US WEST:260070628.2 B-2 authorizations, elections and orders of or filings or registrations with any governmental authority, board, agency or commission having jurisdiction which would constitute a condition precedent to or the absence of which would materially adversely affect, the performance by the City of its obligations under the Bonds and the Legal Documents, have been obtained and are in full force and effect. 9. The statements contained in the Official Statement under the captions "Introduction," "Pension Plan," "The City," "Litigation," "APPENDIX A— The City of Burlingame" and "APPENDIX C — City of Burlingame Statement of Investment Policy," to the best of my knowledge, do not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading. I am furnishing this letter solely for your benefit. This letter is not to be used, circulated, quoted or otherwise referred to for any other purpose. Very truly yours, Larry Anderson City Attorney By: US WEST:260070628.2 B-3 DRAFT 8/28/06 PRELIMINARY OFFICIAL STATEMENT DATED SEPTEMBER ,2006 NEW ISSUE-BOOK-ENTRY ONLY RATINGS: Taxable(Federal) S&P: Tax-Exempt(State of California) (See"RATINGS"herein) CITY OF BURLINGAME TAXABLE PENSION OBLIGATION BONDS,2006 SERIES A Dated: Date of Delivery Due: June 1,as shown on inside cover page The City of Burlingame (the "City") is issuing its Taxable Pension Obligation Bonds, 2006 Series A (the "2006 Series A Bonds")under a Trust Agreement(the"Trust Agreement"),dated as of September 1,2006,by and between the City and The Bank of New York Trust Company,N.A.,as trustee(the"Trustee"),to refund the City's obligations under the PERS Contract(as described herein)evidencing the City's current unfunded accrued actuarial liability as of the delivery date of the 2006 Series A Bonds and a portion of its annual contribution for the 2006-2007 fiscal year to the California Public Employee's Retirement System("PERS"or the"System")and to pay the costs of the financing. The 2006 Series A Bonds are being issued in fully registered form, and when issued will be registered in the name of Cede & Co., as nominee of The Depository Trust Company ("DTC") in the United States. DTC will act as securities depository for the 2006 Series A Bonds. Individual purchases will be made in book-entry form only in denominations of $5,000 or any integral multiple thereof. Purchasers will not receive certificates representing their beneficial ownership interest in the 2006 Series A Bonds purchased. See APPENDIX D—"DTC AND THE BOOK-ENTRY SYSTEM." Interest on the 2006 Series A Bonds is payable on December 1, 2006 and thereafter semiannually on June 1 and December 1 of each year. Principal and interest on the 2006 Series A Bonds are payable by the Trustee to DTC, which will be responsible for remitting such principal and interest to its Participants, which will be responsible for remitting such principal and interest to the Beneficial Owners of such Bonds. The 2006 Series A Bonds are subject to redemption prior to maturity as described herein. See"THE 2006 SERIES A BONDS." The payment of principal and interest on the 2006 Series A Bonds when due will be insured by a financial guaranty insurance policy to be issued by (the"Insurer"), simultaneously with the delivery of the 2006 Series A Bonds. See"FINANCIAL GUARANTY INSURANCE"herein. [LOGO] THE 2006 SERIES A BONDS DO NOT CONSTITUTE AN OBLIGATION OF THE CITY FOR WHICH THE CITY IS OBLIGATED TO LEVY OR PLEDGE ANY FORM OF TAXATION OR FOR WHICH THE CITY HAS LEVIED OR PLEDGED ANY FORM OF TAXATION. NEITHER THE 2006 SERIES A BONDS NOR THE OBLIGATION OF THE CITY TO MAKE PAYMENT OF THE PRINCIPAL OR REDEMPTION PRICE OF OR THE INTEREST ON THE 2006 SERIES A BONDS CONSTITUTES AN INDEBTEDNESS OF THE CITY, THE STATE OF CALIFORNIA OR ANY OF ITS POLITICAL SUBDIVISIONS WITHIN THE MEANING OF ANY CONSTITUTIONAL OR STATUTORY DEBT LIMITATION OR RESTRICTION. In the opinion of Orrick, Herrington& Sutcliffe LLP,Bond Counsel to the City, under existing law, interest on the 2006 Series A Bonds is exempt from present State of California personal income taxes. Interest on the 2006 Series A Bonds is not excludable from gross income for federal income tax purposes. Bond Counsel expresses no opinion regarding any other tax consequences related to the ownership or disposition of, or the accrual or receipt of interest on, the 2006 Series A Bonds. See"TAX MATTERS"herein. Preliminary,subject to change. US WEST:260046119.5 This cover page contains information for general reference only. It is not intended to be a summary of the security or terms of this issue. Investors are advised to read the entire Official Statement to obtain information essential to the making of an informed investment decision. Capitalized terms used on this cover page not otherwise defined shall have the meanings set forth herein. The 2006 Series A Bonds will be offered when, as and if issued and received by the Underwriter, subject to the approval as to their validity by Orrick, Herrington & Sutcliffe LLP, Bond Counsel, and certain other conditions. Certain legal matters will be passed upon for the City by the City Attorney of the City of Burlingame. Orrick,Herrington&Sutcliffe LLP will serve as Disclosure Counsel. It is anticipated that the 2006 Series A Bonds will be available for delivery through the DTC book-entry system in New York, New York, and through the Euroclear System and Clearstream Luxembourg in Europe on or about September_,2006. E.J.DE LA ROSA&CO.INC. Dated: ,2006 US WEST:260046119.5 MATURITY SCHEDULE $ 2006 Series A Bonds Maturi Principal Amount Interest Rate Yield CUSIP No.* ISIN No.* *CUSIP numbers and ISIN numbers are provided for reference only. Neither the City nor the Underwriter take any responsibility for the accuracy of such numbers. US WEST:260046119.5 This Official Statement does not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the 2006 Series A Bonds by any person in any jurisdiction in which it is unlawful for such person to make such an offer, solicitation or sale. No dealer,broker, salesperson or other person has been authorized to give any information or to make any representations other than those contained in this Official Statement. If given or made, such other information or representations must not be relied upon as having been authorized by the City or the Underwriter. This Official Statement is not to be construed as a contract with the purchasers of the 2006 Series A Bonds. Statements contained in this Official Statement which involve estimates, projections, forecasts or matters of opinion, whether or not expressly so described herein, are intended solely as such and are not to be construed as representations of facts. Certain of the information set forth herein has been obtained from official sources which are believed to be reliable, but is not guaranteed as to accuracy or completeness and is not to be construed as a representation by the Underwriter. The information and expressions of opinion herein are subject to change without notice and neither delivery of this Official Statement nor any sale made hereunder shall, under any circumstances, create any implication that there has been no change in the affairs of the City since the date hereof. This Official Statement is submitted with respect to the sale of the 2006 Series A Bonds referred to herein and may not be reproduced or used, in whole or in part, for any other purpose, unless authorized in writing by the City. All summaries of the documents and laws are made subject to the provisions thereof and do not purport to be complete statements of any or all such provisions. In connection with the offering of the 2006 Series A Bonds, the Underwriter may overallot or effect transactions which stabilize or maintain the market price of the bonds at a level above that which might otherwise prevail in the open market. Such stabilizing, if commenced, may be discontinued at any time. The Underwriter may offer and sell the 2006 Series A Bonds to certain dealers, institutional investors and others at prices lower than the public offering prices stated on the cover page hereof and said public offering prices may be changed from time to time by the Underwriter. The Underwriter has provided the following sentence for inclusion in this Official Statement: The Underwriter has reviewed the information in this Official Statement in accordance with, and as a part of, its responsibilities to investors under the federal securities laws as applied to the facts and circumstances of this transaction,but the Underwriter does not guarantee the accuracy or completeness of such information. Certain statements in this Official Statement, which may be identified by the use of such terms as "plan,""project,""expect,""estimate,""budget"or other similar words,constitute forward-looking statements. Such forward-looking statements refer to the achievement of certain results or other expectation or performance which involve known and unknown risks, uncertainties and other factors. These risks, uncertainties and other factors may cause actual results,performance or achievements to be materially different from any projected results, performance or achievements described or implied by such forward-looking statements. The City does not plan to issue updates or revisions to such forward-looking statements if or when its expectations, or events, conditions or circumstances on which such statements are based, occur, or if actual results, performance or achievements are materially different from any results, performance or achievements described or implied by such forward-looking statements. The 2006 Series A Bonds have not been registered under the Securities Act of 1933, as amended, in reliance upon an exemption from the registration requirements contained in such Act. Other than with respect to information concerning the Insurer contained under the caption "FINANCIAL GUARANTY INSURANCE" and APPENDIX G— "SPECIMEN FINANCIAL GUARANTY INSURANCE POLICY" herein, none of the information in this Official Statement has been supplied or verified by the Insurer and the Insurer makes no representations or warranty, express or implied, as to (i) the accuracy or completeness of such information;or(ii)the validity of the 2006 Series A Bonds. US WEST:260046119.5 CITY OF BURLINGAME Mayor and City Council Cathy Baylock Mayor Terry D.Nagel Rosalie O'Mahony Vice Mayor Russ Cohen Ann Keighran CITY STAFF James Nantell Jesus Nava Larry Anderson City Manager Finance Director CityAttorney BOND COUNSEL AND DISCLOSURE COUNSEL Orrick,Herrington& Sutcliffe LLP San Francisco, California TRUSTEE The Bank of New York Trust Company,N.A. San Francisco, California US WEST:260046119.5 TABLE OF CONTENTS Page INTRODUCTION ........................................................................................................................................... 1 Purpose.................................................................................................................................................. 1 Security and Sources of Payment for the 2006 Series A Bonds............................................................ 1 SummariesNot Definitive.....................................................................................................................2 ContinuingDisclosure...........................................................................................................................2 PLANOF FINANCING.....................................................................................................................................2 General ..................................................................................................................................................2 ESTIMATED SOURCES AND USES OF FUNDS...........................................................................................2 THE2006 SERIES A BONDS............................................................................................................................3 General ..................................................................................................................................................3 Redemption............................................................................................................................................3 RedemptionProcedures.........................................................................................................................4 SECURITY AND SOURCES OF PAYMENT FOR THE BONDS...................................................................5 General ..................................................................................................................................................5 DebtService Schedule...........................................................................................................................6 AdditionalBonds...................................................................................................................................6 FINANCIALGUARANTY INSURANCE........................................................................................................6 RISKFACTORS ...........................................................................................................................................6 NoTax Pledge.......................................................................................................................................7 Limitationof Remedies.........................................................................................................................7 Changesin Law.....................................................................................................................................7 STATE OF CALIFORNIA BUDGET INFORMATION...................................................................................7 CONSTITUTIONAL AND STATUTORY LIMITATIONS ON TAXES AND APPROPRIATIONS.............9 Article XIIIA of the California Constitution.........................................................................................9 Article XIIIB of the California Constitution..........................................................................................9 Proposition62...................................................................................................................................... 10 Proposition218....................................................................................................................................11 FutureLimitations ............................................................................................................................... 12 PENSIONPLAN .........................................................................................................................................12 THECITY ......................................................................................................................................... 15 ERISACONSIDERATIONS............................................................................................................................ 15 TAXMATTERS .........................................................................................................................................16 Tax Status of the 2006 Series A Bonds............................................................................................... 17 Sale and Exchange of 2006 Series A Bonds ....................................................................................... 17 Defeasance...........................................................................................................................................18 ForeignInvestors.................................................................................................................................18 Circular230 Disclaimer....................................................................................................................... 18 VALIDATION .........................................................................................................................................18 CERTAINLEGAL MATTERS........................................................................................................................ 18 CONTINUINGDISCLOSURE........................................................................................................................18 FINANCIALSTATEMENTS ..........................................................................................................................19 LITIGATION ......................................................................................................................................... 19 RATINGS ......................................................................................................................................... 19 UNDERWRITING .........................................................................................................................................19 US WEST:260046119.5 -i- TABLE OF CONTENTS (continued) Page MISCELLANEOUS .........................................................................................................................................20 APPENDIX A THE CITY OF BURLINGAME...................................................................................A-1 APPENDIX B THE CITY OF BURLINGAME AUDITED FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30,2005............................................................B-1 APPENDIX C CITY OF BURLINGAME STATEMENT OF INVESTMENT POLICY...................C-1 APPENDIX D DTC AND THE BOOK-ENTRY ONLY SYSTEM.....................................................D-1 APPENDIX E SUMMARY OF THE TRUST AGREEMENT............................................................E-1 APPENDIX F PROPOSED FORM OF OPINION OF BOND COUNSEL..........................................F-1 APPENDIX G SPECIMEN FINANCIAL GUARANTY INSURANCE POLICY..............................G-1 APPENDIX H FORM OF CONTINUING DISCLOSURE CERTIFICATE.......................................H-1 US WEST260046119.5 -ii- OFFICIAL STATEMENT CITY OF BURLINGAME TAXABLE PENSION OBLIGATION BONDS,2006 SERIES A INTRODUCTION This Introduction is subject in all respects to the more complete information contained elsewhere in this Official Statement, and the offering of the 2006 Series A Bonds to potential investors is made only by means of the entire Official Statement. Terms used in this Introduction and not otherwise defined shall have the respective meanings assigned to them elsewhere in this Official Statement. Purpose The purpose of this Official Statement, which includes the cover page and appendices hereto, is to set forth certain information concerning the issuance and sale by the City of Burlingame (the "City") of its Taxable Pension Obligation Bonds, 2006 Series A in the aggregate principal amount of$ * (the "2006 Series A Bonds"). The 2006 Series A Bonds are being issued pursuant to Articles 10 and 11 (commencing with Section 53570) of Chapter 3 of Division 2 of Title 5 of the Government Code of the State of California (the "State") and a Trust Agreement, dated as of September 1, 2006 (the "Trust Agreement"),by and between the City and The Bank of New York Trust Company,N.A.,as trustee(the"Trustee"). Pursuant to its contract (the "PERS Contract") with the Board of Administration of the California Public Employee's Retirement System ("PERS" or the "System") and Section 20000 et seq. of the California Government Code (the "Retirement Law"), the City is obligated to make payments to PERS arising as a result of retirement benefits accruing to members of PERS. The City's statutory obligation includes, among others, the requirement to amortize the unfunded accrued actuarial liability ("UAAL") and to make annual contributions with respect to such retirement benefits. The 2006 Series A Bonds will be issued pursuant to the Trust Agreement for the purpose of refunding a portion of the City's obligation to PERS evidenced by the PERS Contract and paying costs of issuance of the 2006 Series A Bonds. See "PLAN OF FINANCING" and"ESTIMATED SOURCES AND USES OF FUNDS" herein. Security and Sources of Payment for the 2006 Series A Bonds The obligation of the City to make payments with respect to the 2006 Series A Bonds is an absolute and unconditional obligation of the City, and payment of principal of and interest on the 2006 Series A Bonds is not limited to any special source of funds. Pursuant to the Trust Agreement,the City is required to make certain deposits with the Trustee on or before August 1 of each year. See "SECURITY AND SOURCES OF PAYMENT FOR THE BONDS"herein. THE 2006 SERIES A BONDS DO NOT CONSTITUTE AN OBLIGATION OF THE CITY FOR WHICH THE CITY IS OBLIGATED TO LEVY OR PLEDGE ANY FORM OF TAXATION OR FOR WHICH THE CITY HAS LEVIED OR PLEDGED ANY FORM OF TAXATION. NEITHER THE 2006 SERIES A BONDS NOR THE OBLIGATION OF THE CITY TO MAKE PAYMENT OF THE PRINCIPAL OR REDEMPTION PRICE OF OR THE INTEREST ON THE 2006 SERIES A BONDS CONSTITUTES AN INDEBTEDNESS OF THE CITY, THE STATE OF CALIFORNIA OR ANY OF ITS POLITICAL SUBDIVISIONS WITHIN THE MEANING OF ANY CONSTITUTIONAL OR STATUTORY DEBT LIMITATION OR RESTRICTION. Payment of the principal and interest with respect to the 2006 Series A Bonds when due will be insured by a financial guaranty insurance policy (the "Policy") to be issued by ("the Insurer") concurrently with the delivery of the 2006 Series A Bonds. See"FINANCIAL GUARANTY INSURANCE"and APPENDIX G— "SPECIMEN FINANCIAL GUARANTY INSURANCE POLICY"herein. *Preliminary,subject to change. US WEST:260046119.5 The 2006 Series A Bonds and Trust Agreement were validated by judgment of the Superior Court of the County of San Mateo entered on August 17, 2006. The time period for filing of appeals with respect to the judgment expires on September 16,2006. See"VALIDATION"herein. Summaries Not Definitive Brief descriptions of the 2006 Series A Bonds and the Trust Agreement are included in this Official Statement. Such descriptions do not purport to be comprehensive or definitive. All references herein to the 2006 Series A Bonds and the Trust Agreement are qualified in their entirety by reference to the actual documents, or with respect to the 2006 Series A Bonds, the forms thereof included in the Trust Agreement, copies of all of which are available for inspection by written request mailed to the City of Burlingame, Attn: Jesus Nava, Finance Director, City Hall - 501 Primrose Road, Burlingame CA 94010-3997 and will be available upon request and payment of duplication costs from the Trustee. Continuing Disclosure The City has agreed to provide, or cause to be provided, in accordance with Securities Exchange Commission Rule 15c2-12(b)(5), certain annual financial information and operating data, including the audited financial statements of the City. See "CONTINUING DISCLOSURE" herein. The City has never failed to comply in all material respects with any previous undertakings with regard to the Rule to provide annual reports or notices of material events. PLAN OF FINANCING General The 2006 Series A Bonds are being issued to: (i) refund a portion of the City's obligation to PERS evidenced by the PERS Contract, and(ii)pay the costs of issuance of the 2006 Series A Bonds. See "ESTIMATED SOURCES AND USES OF FUNDS"herein. A portion of the proceeds of the 2006 Series A Bonds will be used to provide funds to allow the City to refund its current UAAL with respect to retirement benefits accruing to members of PERS as evidenced by the PERS Contract and to pay a portion of its contribution to PERS for the 2006-2007 fiscal year. Upon the refunding of the PERS Contract with the proceeds of the 2006 Series A Bonds, the City's obligation with respect to 2006 Series A Bonds will be absolute and unconditional obligation, and will not be limited as to payment to any special source of funds of the City. ESTIMATED SOURCES AND USES OF FUNDS The estimated sources and uses of funds with respect to the 2006 Series A Bonds are set forth below: Estimated Sources of Funds Principal Amount of Bonds $ Estimated Uses of Funds Refunding of PERS Contract $ Cost of Issuance(1) Total Uses $ (1) Includes Underwriter's discount, legal fees, fees of the financial advisor, the Trustee, the actuary, rating agencies fees,bond insurance premium,printing costs and certain miscellaneous expenses. US WEST:260046119.5 2 THE 2006 SERIES A BONDS General The 2006 Series A Bonds will be dated their date of original delivery issued in fully registered form,without coupons, and, when issued, will be registered in the name of Cede & Co., as nominee of The Depository Trust Company, New York, New York ("DTC"). DTC will act as securities depository of the 2006 Series A Bonds. Ownership interests in the 2006 Series A Bonds may be purchased in book-entry form only. Purchasers will not receive securities certificates representing their interests in the 2006 Series A Bonds purchased. Payments of principal of and interest on the 2006 Series A Bonds will be paid by the Trustee to DTC,which is obligated in turn to remit such principal and interest to its DTC Participants for subsequent disbursement to the beneficial owners of the 2006 Series A Bonds. See APPENDIX D—"DTC AND THE BOOK-ENTRY ONLY SYSTEM"herein. The 2006 Series A Bonds will be issued only in fully registered form, in denominations of$5,000 and any integral multiple thereof and shall mature on the dates and in the principal amounts and bear interest at the rates set forth on the inside cover hereof. Interest on the 2006 Series A Bonds shall be payable semiannually on and of each year commencing (each,an"Interest Payment Date"). Redemption [Optional Redemption. The 2006 Series A Bonds will be subject to optional redemption prior to their maturity at the option of the City,in whole or in part on any date,at a redemption price equal to the greater of: • 100%of the principal amount of the 2006 Series A Bonds to be redeemed;or • the sum of the present values of the remaining scheduled payments of principal and interest on the 2006 Series A Bonds to be redeemed(exclusive of interest accrued to the date fixed for redemption) discounted to the date of redemption on a semiannual basis (assuming a 360-day year consisting of twelve 30-day months) at the Treasury Rate(defined below)plus basis points, plus in each case, accrued and unpaid interest on the 2006 Series A Bonds being redeemed to the date fixed for redemption. "Comparable Treasury Issue" means the United States Treasury security or securities selected by which has an actual or interpolated maturity comparable to the remaining average life of the 2006 Series A Bonds to be redeemed, and that would be utilized in accordance with customary financial practice in pricing new issues of debt securities of comparable maturity to the remaining average life of such 2006 Series A Bonds. "Comparable Treasury Price" means, with respect to any redemption date, (1)the average of the Reference Treasury Dealer Quotations for such redemption date,after excluding the highest and lowest Reference Treasury Deal Quotations, or (2)if the Trustee obtains fewer than four such Reference Treasury Dealer Quotations, the average of all such quotations. "Reference Treasury Dealer" means and its successors and three other firms, specified by the City from time to time, that are primary U.S. Government securities dealers in the City of New York (each a "Primary Treasury Dealer");provided,however,that if any of them ceases to be a Primary Treasury Dealer, the City will substitute another Primary Treasury Dealer. "Reference Treasury Dealer Quotations" means, with respect to each Reference Treasury Dealer and any redemption date, the average, as determined by the Trustee, of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount) quoted in writing to the Trustee by such Reference Treasury Dealer at 3:30 p.m., New York City time, on the third business day preceding such redemption date. US WEST:260046119.5 3 "Treasury Rate" means, with respect to any redemption date, the rate per annum equal to the semiannual equivalent yield to maturity or interpolated maturity of the Comparable Treasury Issue,assuming that the Comparable Treasury Issue is purchased on the redemption date for a price equal to the Comparable Treasury Price.] Sinking Fund Redemption. The 2006 Series A Tenn Bonds are subject to mandatory sinking fund redemption on the dates and in the amounts designated below: Redemption Date Principal June 11 Amount Redemption Procedures Selection of Bonds for Redemption. Redemption payments on the 2006 Series A Bonds, being redeemed in part, will be made on a pro rata basis to each holder in whose name such 2006 Series A Bonds are registered at the close of business on the fifteenth day of the calendar month immediately preceding the redemption date(DTC so long as the book-entry System with DTC is in effect). "Pro rata" means, in connection with any mandatory sinking fund redemption or any optional redemption in part, with respect to the allocation of amounts to be redeemed, the application to such amounts of a fraction, the numerator of which is equal to the amount of the specific maturity of 2006 Series A Bonds held by a holder of such 2006 Series A Bonds, and the denominator of which is equal to the total amount of such maturity of 2006 Series A Bonds then Outstanding. So long as there is a securities depository for the 2006 Series A Bonds, there will be only one registered owner and neither the City nor the Trustee will have responsibility for prorating partial redemptions among beneficial owners of the 2006 Series A Bonds. Notice of Redemption. Whenever redemption is authorized under the Trust Agreement, the Trustee is required to mail to affected owners a notice of redemption, containing the information required by the Trust Agreement,by first-class mail not less than thirty(30)days nor more than sixty(60) days before the redemption date of any such 2006 Series A Bonds or portions thereof to the respective Owners thereof. While the 2006 Series A Bonds are held by DTC or its nominee, all such mailed notices shall be sent to DTC,or its nominee, as the registered owner of the 2006 Series A Bonds to be redeemed. Neither the failure of an owner to receive any such notice, nor the failure to give such notice to certain depositories or information services as required by the Trust Agreement shall invalidate any of the proceedings for the redemption of any 2006 Series A Bonds. Effect of Redemption. From and after the date fixed for redemption of any 2006 Series A Bonds or any portions thereof, if notice of such redemption shall have been duly given and funds available for the payment of the redemption price of the 2006 Series A Bonds or such portions thereof so called for redemption shall have been duly provided, no interest shall accrue on such 2006 Series A Bonds or such portions thereof from and after the Redemption Date specified in such notice. US WEST:260046119.5 4 SECURITY AND SOURCES OF PAYMENT FOR THE BONDS General The obligation of the City to make payments with respect to the 2006 Series A Bonds is an absolute and unconditional obligation of the City and payment of principal of and interest on the 2006 Series A Bonds is not limited to any special source of funds. The Trust Agreement provides that the City is obligated to deposit with the Trustee on or before August 1 of each Fiscal Year the amount which is sufficient to pay the City's debt service obligations on the 2006 Series A Bonds payable during such Fiscal Year. THE 2006 SERIES A BONDS DO NOT CONSTITUTE AN OBLIGATION OF THE CITY FOR WHICH THE CITY IS OBLIGATED TO LEVY OR PLEDGE ANY FORM OF TAXATION OR FOR WHICH THE CITY HAS LEVIED OR PLEDGED ANY FORM OF TAXATION. NEITHER THE 2006 SERIES A BONDS NOR THE OBLIGATION OF THE CITY TO MAKE PAYMENT OF THE PRINCIPAL OR REDEMPTION PRICE OF OR THE INTEREST ON THE 2006 SERIES A BONDS CONSTITUTES AN INDEBTEDNESS OF THE CITY, THE STATE OF CALIFORNIA OR ANY OF ITS POLITICAL SUBDIVISIONS WITHIN THE MEANING OF ANY CONSTITUTIONAL OR STATUTORY DEBT LIMITATION OR RESTRICTION. US WEST:260046119.5 5 Debt Service Schedule The following table sets forth the annual debt service schedule for the 2006 Series A Bonds. Date Principal Interest Fiscal Year Total Totals Additional Bonds The City may from time to time issue additional Bonds to defease, retire or refund all or any portion of the 2006 Series A Bonds or to refund any other evidences of indebtedness of the City arising pursuant to the Retirement Law, which such additional Bonds may be issued on a parity with the 2006 Series A Bonds without the consent of any Bondowner. FINANCIAL GUARANTY INSURANCE The following information under this caption "FINANCIAL GUARANTY INSURANCE" has been furnished by the Insurer for use in this Official Statement. No representation is made by the City or the Underwriter as to the accuracy, completeness or adequacy of such information, or as to the absence of material adverse changes in the condition of the Insurer subsequent to the date hereof, including but not limited to a downgrade in the credit ratings of the Insurer. Reference is made to APPENDIX G for a specimen of the Policy. [to come] RISK FACTORS The following information should be considered by potential investors in evaluating the 2006 Series A Bonds. However, it does not purport to be an exhaustive list of the risks or other considerations which may be relevant to an investment in the 2006 Series A Bonds. In addition, the order in which the following information is presented is not intended to reflect the relative importance of any such risks. US WEST:260046119.5 6 No Tax Pledge The 2006 Series A Bonds do not constitute an obligation of the City for which the City is obligated to levy or pledge any form of taxation or for which the City has levied or pledged any form of taxation. Neither the 2006 Series A Bonds nor the obligation of the City to make payment of the principal or redemption price of or the interest on the 2006 Series A Bonds constitutes an indebtedness of the City, the State of California or any of its political subdivisions within the meaning of any constitutional or statutory debt limitation or restriction. Limitation of Remedies The rights of the owners of the 2006 Series A Bonds are subject to the limitations on legal remedies against cities in the State of California, including applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the enforcement of creditors' rights generally, now or hereafter in effect, and to the application of general principles of equity, including without limitation, concepts of materiality, reasonableness, good faith and fair dealing and the possible unavailability of specific performance or injunctive relief, regardless of whether considered in a proceeding in equity or in law. Bankruptcy proceedings, if initiated, could subject the owners of the 2006 Series A Bonds to judicial discretion and interpretation of their rights in bankruptcy proceedings or otherwise, and consequently may entail risks of delay,limitation or modification of their rights. Changes in Law There can be no assurance that the State Legislature will not at some future time enact legislation that will amend or create laws resulting in a reduction of moneys securing or available to pay the 2006 Series A Bonds. Similarly,the State electorate could adopt initiatives or the State Legislature could adopt legislation with the approval of the electorate amending the State Constitution which could have the effect of reducing moneys securing or available to pay the 2006 Series A Bonds. STATE OF CALIFORNIA BUDGET INFORMATION The following information concerning the State of California's budgets has been obtained from publicly available information which the City believes to be reliable; however, the City takes no responsibility as to the accuracy or completeness thereof and has not independently verified such information. Information about the State budget is regularly available at various State-maintained websites. Text of the State budget may be found at the Department of Finance website, www.dof.ca.gov, under the heading "California Budget." An impartial analysis of the State budget is posted by the Office of the Legislative Analyst (the "LAO") at www.lao.ca.gov. In addition, various State of California official statements, many of which contain a summary of the current and past State budgets, may be found at the website of the State Treasurer, www.treasurer.ca.gov. The information referred to is prepared by the respective State agency maintaining each website and not by the City or the Underwriter,and the City and the Underwriter take no responsibility for the continued accuracy of the internet addresses or for the accuracy or timeliness of information posted there,and such information is not incorporated herein by these references. State Budget for Fiscal Year 2005-06 On July 11, 2006, Governor Schwarzenegger signed the 2005-06 Budget Act. The 2005-06 Budget Act projected 2005-06 General Fund revenues of$84.5 billion, expenditures of$90 billion and an ending reserve balance of$1.3 billion(including an allowance for$900 million of tax refunds which the State might be obligated to make). The Governor's original budget identified a budget shortfall of$8.6 billion without implementation of the policy changes identified in the Governor's budget proposal. However, the upward revision in Fiscal Year 2004-05 and 2005-06 projected tax revenues, among other factors, have permitted the Governor to address a smaller budget shortfall of $6 billion and to maintain a $500 million reserve through $6.5 billion of expenditure and savings "solutions," and without tax increases. The 2005-06 Budget Act also eliminated the proposed issuance of additional "Economic Recovery Bonds,"which were to provide$1.7 billion to the General Fund in the original budget proposal. The 2005-06 Budget Act assumed local government revenues would increase during the next few years due in part to increases in property taxes and sales and use tax to local governments. Property taxes and sales and use tax US WEST:260046119.5 7 are major sources of discretionary revenue for local governments, including the City. The 2005-06 Budget Act projected property taxes to local governments to be approximately$22.98 billion, an increase of 14 percent above the amount expected to be received in the Fiscal Year 2004-05, as a result of the strong housing market and increased sales of non-residential real estate. The sales and use tax in Fiscal Year 2005-06 was also expected to increase by approximately 4.5 percent above the amount expected to be received in Fiscal Year 2004-05. The sales and use tax was expected to provide local governments with over$4 billion for discretionary purposes. The 2005-06 Budget Act included funding for local governments to make up the difference between the 0.65-percent rate of the VLF and the previous 2 percent rate through a reallocation of property tax from schools and community colleges to cities and counties. The 2005-06 Budget Act also included the accelerated repayment of all of the VLF revenue that the local governments did not receive in 2003-04 due to the suspension of the VLF backfill, which was not required to be paid until Fiscal Year 2006-07. The City received repayment of the VLF gap loan from the State on July 27, 2005, resulting in an additional $484,639 of additional resources to the City which had not been included in its 2005-06 budget. State Budget for Fiscal Year 2006-07 On June 30, 2006, Governor Schwarzenegger signed the 2006-07 Budget Act. Total spending is set at $127.9 billion, including General Fund expenditures of$101.3 billion. The 2006-07 Budget Act projects General Fund revenues of$94.4 billion. The resulting operating shortfall of$6.9 billion is expected to continue in the range of$4.5 to $5 billion over the next two fiscal years. The 2006-07 shortfall will leave the State General Fund with an ending reserve balance of $2.1 billion (not including the fiscal impacts of future collective bargaining contracts approved by the Legislature). The total revenue forecast by the 2006-07 Budget Act is a 1.7 percent increase over the $92.7 million forecast for the 2005-06 fiscal year. The total expenditures forecast by the 2006-07 Budget Act are 9.2 percent higher than the $92.7 million forecast for the 2005-06 fiscal year. The 2006-07 Budget Act set aside a combined total of more than$4.9 billion,representing 4.7 percent of total General Fund resources available,to address the state's debt. A budget reserve of$2.1 billion and early debt prepayments of$2.8 billion were established. LAO Budget Overview In July 2006,the LAO released a report highlighting major features of the 2006-07 Budget Act. In this report the LAO cautions that,based on the current projections of revenues and expenditures under the 2006-07 Budget Act policies, the state will continue to face operating shortfalls in 2007-08 and 2008-09 of approximately $4.5 billion to $5 billion. It also points out that although the 2006-07 Budget Act ends with a projected reserve of$2.1 billion, the reserve could shrink by $100 million if the tentative agreement between the administration and Service Employees International Union is approved. Publications from the LAO can be read in full by accessing the LAO's website (www.lao.ca.gov) or by contacting the LAO at(916)445-4656. Information on the website is not incorporated herein by reference. Future State Budgets No prediction can be made by the City as to whether the State will continue to encounter budgetary problems in this or in any future Fiscal Years, and if it were to do so,it is not clear what measures would be taken by the State to balance its budget, as required by law. In addition, the City cannot predict the final outcome of fixture State budget negotiations, the impact that such budgets will have on its finances and operations or what actions will be taken in the future by the State Legislature and Governor to deal with changing State revenues and expenditures. Current and future State budgets will be affected by national and State economic conditions and other factors, including the current economic downturn,over which the City has no control. US WEST:260046119.5 8 CONSTITUTIONAL AND STATUTORY LIMITATIONS ON TAXES AND APPROPRIATIONS Article XIIIA of the California Constitution On June 6, 1978, California voters approved Proposition 13 which added Article XIIIA to the California Constitution. Section 1(a) of Article XIIIA of the California Constitution limits the maximum ad valorem tax on real property to one percent of full cash value (as defined in Section 2 of Article XIIIA), to be collected by the counties and apportioned according to law. Section 1(b) of Article XIIIA provides that the one percent limitation does not apply to ad valorem taxes to pay interest or redemption charges on (1) indebtedness approved by the voters prior to July 1, 1978,or(2)any bonded indebtedness for the acquisition or improvement of real property approved on or after July 1, 1978, by two-thirds of the votes cast by the voters voting on the proposition. Section 2 of Article XIIIA defines "full cash value" to mean "the county assessor's valuation of real property as shown on the fiscal year 1975/76 tax bill under full cash value or, thereafter, the appraised value of real property when purchased, newly constructed, or a change in ownership has occurred after the 1975 assessment." The full cash value may be adjusted annually to reflect inflation at a rate not to exceed two percent per year, or reduction in the consumer price index or comparable data for the area under taxing jurisdiction, or reduced in the event of declining property value caused by substantial damage, destruction, or other factors. Legislation enacted by the California Legislature to implement Article XIIIA provides that notwithstanding any other law, local agencies may not levy any ad valorem property tax except to pay debt service on indebtedness approved by the voters as described above. Such legislation further provides that each county will levy the maximum tax permitted by Article XIIIA of$4 per$100 of assessed valuation (based on the traditional practice of using 25 percent of full cash value as the assessed value for tax purposes). Beginning with fiscal year 1981/82, assessors in California no longer record property values on the tax rolls at the assessed value of 25 percent of market value and now record them at full market value. Consequently, the tax of$4 per$100 of assessed value is now expressed as$1 per$100 of taxable value. In the general elections of 1986, 1988 and 1990, the voters of the State approved various measures which further amended Article XIIIA. One such amendment generally provides that the purchase or transfer of (i) real property between spouses or (ii) the principal residence and the first $1,000,000 of the full cash value of other real property between parents and children, do not constitute a "purchase" or "change of ownership" triggering reassessment under Article XIIIA. This amendment has the effect of reducing the property tax revenues of the City. Other amendments permitted the Legislature to allow persons over 55 who sell their residence and on or after November 5, 1986,buy or build another of equal or lesser value within two years in the same county, to transfer the old residence's assessed value to the new residence, and permitted the Legislature to authorize each county under certain circumstances to adopt an ordinance making such transfers of assessed value applicable to situations in which the replacement dwelling purchased or constructed after November 8, 1988, is located within the county and the original property is located in another county within California. In the June 1990 election, the voters approved additional amendments to Article XIIIA permitting the State Legislature to extend the replacement dwelling provisions applicable to persons over 55 to severely disabled homeowners for replacement dwellings purchased or newly constructed on or after June 5, 1990, and to exclude from the definition of "new construction" triggering reassessment improvements to certain dwellings for the purpose of making the dwelling more accessible to severely disabled persons. In the November 1990 election,the voters approved the amendment of Article XIIIA to permit the State Legislature to exclude from the definition of "new construction" seismic retrofitting improvements or improvements utilizing earthquake hazard mitigation technologies constructed or installed in existing buildings after November 6, 1990. Both the California State Supreme Court and the United States Supreme Court have upheld the validity of Article XIIIA. Article XIIIB of the California Constitution Article XIIIB limits the annual appropriation of the State of any city, county, city and county, school district, authority, or other political subdivision of the State to the level of appropriations for the prior year, as adjusted annually for changes in the cost of living,population, and services for which the fiscal responsibility is shifted to or from the governmental entity. The"base year"for establishing such appropriation limit is fiscal year 1978/79. US WEST:260046119.5 9 Appropriations of an entity of local governmental subject to Article XIIIB include generally authorizations to expend during a fiscal year the proceeds of taxes levied by or for the entity and the proceeds of State subventions, refunds of taxes, and benefit payments from retirement, unemployment insurance, and disability insurance funds. "Proceeds of taxes" includes, but is not limited to, all tax revenues, most State subventions, and the proceeds to the local government entity from (i) regulatory licenses, user charges, and user fees to the extent that such proceeds exceed the costs reasonably borne by such entity, and (ii) the investment of tax revenues. Article XIIIB includes a requirement that if a local government entity's revenues in any year exceed the amount permitted to be spent, the excess must be returned by revising tax rates or fee schedules over the subsequent two years. The City established its appropriations level at $51,911,172 for fiscal year 2006/07. Appropriations subject to limitation for fiscal year 2006/07 were$19,715,065. Article XIIIB does not limit the appropriation of moneys to pay debt service on indebtedness existing or authorized as of January 1, 1979, or for bonded indebtedness approved thereafter by a vote of the electors of the issuing entity at an election held for that purpose. In the June 1990 election, the voters approved Proposition 111 amending the method of calculation of state and local appropriations limits. Proposition 111 made several changes to Article XIIIB. First, the term "change in the cost of living" was redefined as the change in the California per capita personal income ("CPCPI") for the preceding year. Previously, the lower of the CPCPI or the United States Consumer Price Index was used. Second, the appropriations limit for the fiscal year was recomputed by adjusting the fiscal year 1986/87 limit by the CPCPI for the three subsequent years. Third and lastly,Proposition 111 excluded appropriations for"qualified capital outlay for fiscal year 1990/91 as defined by the legislature"from proceeds of taxes. Proposition 62 Proposition 62, a statutory initiative that was adopted by the voters voting in the State at the November 4, 1986 general election, (a)requires that any new or higher taxes for general governmental purposes imposed by local governmental entities be approved by a majority vote of the voters of the governmental entity voting in an election on the tax, (b) requires that any special tax (defined as taxes levied for other than general governmental purposes) imposed by a local governmental entity be approved by a two-thirds vote of the voters of the governmental entity voting in an election on the tax, (c) restricts the use of revenues from a special tax to the purposes or for the service for which the special tax was imposed, (d) prohibits the imposition of ad valorem taxes on real property by local governmental entities except as permitted by Article XIIIA of the California Constitution,(e)prohibits the imposition of transaction taxes and sales taxes on the sale of real property by local governmental entities, (f)requires that any tax imposed by a local governmental entity on or after August 1, 1985 be ratified by a majority vote of the voters voting in an election on the tax within two years of November 5, 1986 or be terminated by November 15, 1988, and (g) requires a reduction of ad valorem property taxes allocable to the jurisdiction imposing a tax not in compliance with its provisions equal to one dollar for each dollar of revenue attributable to the invalid tax, for each year that the tax is collected. On September 28, 1995, the California Supreme Court, in Santa Clara County Local Transportation Authority v. Guardino, 11 Cal. 4th 220(1995) (the"Santa Clara Case"),upheld the constitutionality of the portion of Proposition 62 requiring a two-thirds vote by the electorate in order for a local government or district to impose a special tax, and, by implication, upheld a parallel provision requiring a majority vote by the electorate in order for a local government or district to impose any general tax. The decision in the Santa Clara Case did not address the question of whether it should be applied retroactively. On June 4, 2001, the California Supreme Court released Howard Jarvis Taxpayers Association v. City of La Habra, et al. ("La Habra"). In La Habra, the court held that a public agency's continued imposition and collection of a tax is an ongoing violation, upon which the statute of limitations period begins anew with each collection. The court also held that, unless another statute or constitutional rule provided differently, the statute of limitations for challenges to taxes subject to Proposition 62 is three years. Accordingly, a challenge to a tax subject to Proposition 62 may only be made for those taxes received within three years of the date the action is brought. US WEST:260046119.5 10 Proposition 218 On November 5, 1996, the voters of the State approved Proposition 218, the so-called "Right to Vote on Taxes Act." Proposition 218 added Articles XIIIC and XIIID to the State Constitution, which contain a number of provisions affecting the ability of the City to levy and collect both existing and future taxes, assessments, fees and charges. Article XIIIC requires that all new local taxes be submitted to the electorate before they become effective. Taxes for general governmental purposes of the City require a majority vote and taxes for specific purposes, even if deposited in the general fund,require a two-thirds vote. The voter approval requirements of Article XIIIC reduce the City Council's flexibility to deal with fiscal problems by raising revenue through new or extended or increased taxes and no assurance can be given that the City will be able to raise taxes in the future to meet increased expenditure requirements. Article XIIID contains several new provisions making it generally more difficult for local agencies to levy and maintain "assessments" for municipal services and programs. "Assessment" is defined to mean any levy or charge upon real property for a special benefit conferred upon the real property. The provisions of Article XIIID will make it more difficult for the City to establish assessment-based programs in the future. Article XIIID also contains several new provisions affecting "fees" and "charges", defined for purposes of Article XIIID to mean "any levy other than an ad valorem tax, a special tax, or an assessment, imposed by a local government upon a parcel or upon a person as an incident of property ownership, including a user fee or charge for a property related service." All new and existing property related fees and charges must conform to requirements prohibiting,among other things,fees and charges which(i)generate revenues exceeding the funds required to provide the property related service, (ii)are used for any purpose other than those for which the fees and charges are imposed, (iii)with respect to any parcel or person exceed the proportional cost of the service attributable to the parcel, (iv) are for a service not actually used by, or immediately available to, the owner of the property in question, or(v) are used for general governmental services, including police, fire or library services, where the service is available to the public at large in substantially the same manner as it is to property owners. Further,before any property related fee or charge may be imposed or increased,written notice must be given to the record owner of each parcel of land affected by such fee or charge. The City must then hold a hearing upon the proposed imposition or increase, and if written protests against the proposal are presented by a majority of the owners of the identified parcels, the City may not impose or increase the fee or charge. Moreover, except for fees or charges for sewer, water and refuse collection services (or fees for electrical and gas service, which are not treated as "property related" for purposes of Article XIIID), no property related fee or charge may be imposed or increased without majority approval by the property owners subject to the fee or charge or, at the option of the local agency, two-thirds voter approval by the electorate residing in the affected area. The City has enterprise funds which are self supporting from fees and charges that may ultimately be determined to be property related for purposes of Article XIIID. In the event that fees and charges cannot be appropriately increased or are reduced pursuant to exercise of the initiative power, the City may have to decide whether to support any deficiencies in these enterprise funds with moneys from the general fund or to curtail service,or both. In addition to the provisions described above, Article XIIIC removes limitations on the initiative power in matters of local taxes, assessments, fees and charges. Consequently,the voters of the City could,by future initiative, repeal,reduce or prohibit the future imposition or increase of any local tax,assessment, fee or charge. "Assessment," "fee"and"charge,"are not defined in Article XIIIC and it is not clear whether the definitions of these terms in Article XIIID (which are generally property-related as described above) would be applied to Article XIIIC. If the Article XIIID definitions are not held to apply to Article XIIIC, the initiative power could potentially apply to revenue sources which currently constitute a substantial portion of general fund revenues. No assurance can be given that the voters of the City will not, in the future, approve initiatives which repeal, reduce or prohibit the future imposition or increase of local taxes,assessments, fees or charges. The interpretation and application of Proposition 218 will ultimately be determined by the courts with respect to a number of the matters discussed above, and it is not possible at this time to predict with certainly the outcome of such determination. US WEST:260046119.5 11 Proposition IA As part of Governor Schwarzenegger's agreement with local jurisdictions, Senate Constitutional Amendment No. 4 was enacted by the Legislature and subsequently approved by the voters as Proposition IA ("Proposition IA") at the November 2004 election. Proposition IA amended the State Constitution to, among other things, reduce the Legislature's authority over local government revenue sources by placing restrictions on the State's access to local governments' property, sales, and vehicle license fee revenues as of November 3, 2004. Beginning with fiscal year 2008-09, the State will be able to borrow up to 8 percent of local property tax revenues, but only if the Governor proclaims such action is necessary due to a severe State fiscal hardship and two—thirds of both houses of the Legislature approves the borrowing. The amount borrowed is required to be paid back within three years. The State also will not be able to borrow from local property tax revenues for more than 2 fiscal years within a period of 10 fiscal years. In addition, the State cannot reduce the local sales tax rate or restrict the authority of local governments to impose or change the distribution of the statewide local sales tax. Proposition IA also prohibits the State from mandating activities on cities, counties or special districts without providing for the funding needed to comply with the mandates. Beginning in fiscal year 2005-06,if the State does not provide funding for the mandated activity, the requirement on cities, counties or special districts to abide by the mandate would be suspended. In addition,Proposition I expanded the definition of what constitutes a mandate on local governments to encompass State action that transfers to cities, counties and special districts financial responsibility for a required program for which the State previously had partial or complete responsibility. The State mandate provisions of Proposition IA do not apply to schools or community colleges or to mandates relating to employee rights. Future Limitations Article XIIIA, Article XIIIB and Propositions 62, 218 and IA were each adopted as measures that qualified for the ballot pursuant to California's initiative process. From time to time other initiative measures could be adopted which,if constitutional,could further affect the revenues of the City or its ability to expend such revenues. PENSION PLAN General. The following information concerning the California Public Employees' Retirement System ("PERS")is excerpted from publicly available sources,which the City believes to be accurate. PERS is not obligated in any manner for payment of debt service on the 2006 Series A Bonds, and the assets of PERS are not available for such payment. PERS should be contacted directly at Ca1PERS, Lincoln Plaza, 400 P Street Sacramento, California 95814 or (888) 225-7377 for other information, including information relating to its financial position and investments. The City provides retirement benefits to certain of its employees through contracts with PERS, a multiple- employer public sector employee defined benefit pension plan. PERS provides retirement and disability benefits, annual cost-of-living adjustments and death benefits to PERS members and beneficiaries. PERS acts as a common investment and administrative agent for participating public entities within the State. PERS is a contributory plan deriving funds from employee contributions as well as from employer contributions and earnings from investments. PERS maintains more than one pension plan (each, a"PERS Plan") for the City based on type of employee (i.e. the City has a PERS Plan for "Fire Employees," "Police Employees" and "Miscellaneous Employees"). The City contributes to PERS amounts equal to the recommended rates for the PERS Plans multiplied by the payroll of those employees of the City who are eligible under PERS. Actuarial Valuations. The staff actuaries at PERS prepare annually an actuarial valuation which covers a Fiscal Year ending approximately 15 months before the actuarial valuation is prepared (thus, the actuarial valuation delivered to the City in September 2005 covered PERS's Fiscal Year ended June 30,2004). The actuarial valuations express to the City required contribution rates in percentages of payroll, which percentages the City must contribute in the Fiscal Year immediately following the Fiscal Year in which the actuarial valuation is prepared(thus,the City's contribution rate derived from the actuarial valuation as of June 30, 2004, that was prepared in September 2005,will US WEST:260046119.5 12 affect the City's Fiscal Year 2006-07). PERS rules require the PERS local agencies to implement the actuary's recommended rates. In calculating the annual actuarially recommended contribution rates, the PERS actuary calculates on the basis of certain assumptions the actuarial present value of benefits that the City will fund under the PERS Plans, which includes two components, the normal cost and the amortization on the unfunded actuarial accrued liability (UAAL). The normal cost represents the actuarial present value of benefits that the City will fund under the PERS Plans that are attributed to the current year, and the UAAL represents the unfunded actuarial present value of benefits that the Agency will fund that are attributed to past years. The UAAL represents an estimate of the actuarial shortfall between assets on deposit at PERS and the actuarial accrued liability that the City will pay under the PERS Plans to retirees and active employees upon their retirement. The UAAL is based on several assumptions such as, among others,the rate of investment return,average life expectancy,average age of retirement,inflation,salary increases and occurrences of disabilities. In addition, the UAAL includes certain actuarial adjustments such as, among others, the actuarial practice of smoothing losses and gains over multiple years (which is described in more detail below). As a result, the UAAL may be considered an estimate of the unfunded actuarial present value of the benefits that the agency will fund under the PERS Plans to retirees and active employees upon their retirement and not as a fixed expression of the liability the PERS local agencies owe to PERS under their respective PERS Plans. In each actuarial valuation, the PERS actuary estimates the actuarial value of the assets (the "Actuarial Value") of the PERS Plans at the end of the Fiscal Year (which assumes, among other things, that the rate of return during that Fiscal Year equaled the assumed rate of return of 7.75%). The PERS actuary uses a smoothing technique to determine Actuarial Value that is calculated based on certain policies. As described below,these policies changed significantly in April 2005,affecting the Actuarial Value calculation for Fiscal Year 2006-07 and beyond. Actuarial Assumptions and Policies. On April 21, 2004, the PERS Board approved a change in the inflation assumption used in the actuarial valuations that set employer contribution rates. The inflation assumption was changed from 3.5 percent to 3 percent. The change impacted the inflation component of the annual investment return assumption,the long term payroll growth assumption and the individual salary increase assumptions as follows: • The annual assumed investment return has decreased from 8.25 percent to 7.75 percent. • The overall payroll growth assumption has decreased from 3.75 percent to 3.25 percent. • The inflation component of individual salary scales has decreased from 3.75 percent to 3.25 percent. In April 2005, the PERS Board adopted new policies aimed at stabilizing rising employer costs. These policies will be used to set Fiscal Year 2006-07 employer contribution rates for each local agency. These policies include: • Spreading PERS market value asset gains and losses over 15 years rather than three years. • Widening the"corridor"limits for establishing the actuarial value of assets from 90 to 110 percent of market value to 80 to 120 percent of market value. • Establishing a rolling 30-year amortization on all remaining net unamortized gains or losses, instead of amortizing 10%of the net unamortized gain or loss each year. • Requiring a minimum employer contribution rate equal to the employer normal costs minus a 30-year amortization of surplus(but not less than 0%). For complete updated inflation and actuarial assumptions, please contact PERS at the above-referenced address. Risk Pools. The City's fire and police safety plans each have less than 100 active members. PERS requires such pension plans to join a larger risk pool (a "Risk Pool") with other pension plans that have similar members US WEST:260046119.5 13 receiving similar benefits (e.g. other plans for safety employees receiving a 3.0% at age 55 benefits). In a Risk Pool, assets and liabilities across employers are combined to produce large groups where the impact of a catastrophic demographic event is shared among all employers of the same Risk Pool. To equalize funding status across agencies in each Risk Pool, at the time each local agency joined the Risk Pool, a side fund was created to account for the difference between the funded status of the Risk Pool and the funded status of the local agency's pension plan (a "Side Fund"). Risk Pools and Side Funds are subject to the Actuarial Assumptions and Policies described above. PERS performs an actuarial analysis of the Risk Pool, and a separate valuation of the balance (positive or negative) of each Side Fund. Based on the actuarial report for the Risk Pool, PERS calculates the Risk Pool's "Required Base Employer Rate" as a percentage of payroll that each local agency must pay for those employees participating in the plan. The Required Base Employer Rate includes both a "normal cost" component and an "amortization base" component where the unfunded liability of the Risk Pool is amortized, as described under "Actuarial Valuations"above. In addition, each local agency pays a contribution(a percentage of the payroll of participating employees)to the Risk Pool to amortize any balance in the local agency's Side Fund and/or if the local agency provides certain supplemental benefits to participating employees. Burlingame's Miscellaneous Plan. The City's Miscellaneous Plans is a separate, stand-alone pension plan and is not part of a risk pool. The following table lists the estimated accrued liability and actuarial value of assets with PERS for the Miscellaneous Plan: Actuarial Annual Accrued Value of Unfunded Funded Covered UL As a% Valuation Liability Assets Liability Status Payroll of Payroll Date (a) (b) (a)-(b) (b)/(a) (c) [(a)-(b)1/(c) June 30,2002 $53,377,366 $51,811,728 $1,565,638 97.1% $11,394,165 13.7% June 30,2003 60,844,771 52,160,107 8,684,664 85.7 11,872,797 73.1 June 30,2004 64,118,904 54,329,449 9,789,455 84.7 11,114,217 88.1 Source: PERS Annual Actuarial Report—June 30,2004 In addition, the PERS Annual Actuarial Report as of June 30, 2004 indicates a June 30, 2006 rolled forward unfunded liability of$10,255,629. Burlingame's Fire and Police Safety Plans. The City's Fire and Police Safety Plans are part of the Risk Pool described above. The following table lists the City's estimated unfunded liability in its Side Funds: US WEST:260046119.5 14 Side Fund for Fire Safety Plan Projected Negative Balance Negative Balance June 30,2004 June 30,2006 $11,486,741 $10,892,886 Source: PERS Annual Actuarial Report—June 30,2004 Side Fund for Police Safety Plan Projected Negative Balance Negative Balance June 30,2004 June 30,2006 $8,104,495 $7,791,411 Source: PERS Annual Actuarial Report—June 30,2004 In addition to the PERS Annual Actuarial Report as of June 30, 2004,the City received a report from Bartel Associates LLC which certified that,based on various assumptions, the unfunded actuarial liability on an asset value basis as of the date of issuance of the 2006 Series A Bonds is $9.4 million for the Miscellaneous Plan, $10.8 million for the Fire Safety Plan and$7.7 million for the Police Safety Plan. THE CITY Information with respect to the City, including financial information and certain economic and demographic information relating to the City is provided in Appendix A - "THE CITY OF BURLINGAME" attached hereto. A copy of the financial statements of the City for the fiscal year ended June 30, 2005 is attached hereto as Appendix B and should be read in its entirety. ERISA CONSIDERATIONS Section 406 of the Employee Retirement Income Security Act of 1974, as amended ("ERISA") and Section 4975 of the Internal Revenue Code (the "Code"), prohibit employee benefit plans ("Plans") subject to ERISA or Section 4975 of the Code from engaging in certain transactions involving"plan assets" with persons that are"parties in interest"under ERISA or"disqualified persons"under the Code (collectively, "Parties in Interest")with respect to the Plan. ERISA also imposes certain duties on persons who are fiduciaries of Plans subject to ERISA. Under ERISA,any person who exercises any authority or control respecting the management or disposition of the assets of a Plan is considered to be a fiduciary of such Plan(subject to certain exceptions not relevant here). A violation of these "prohibited transaction"rules may generate excise tax and other liabilities under ERISA and the Code for fiduciaries and Parties in Interest. The Underwriter,as a result of its own activities or because of the activities of an affiliate,may be considered Parties in Interest, with respect to certain plans. Prohibited transactions may arise under Section 406 of ERISA and Section 4975 of the Code if 2006 Series A Bonds are acquired by a Plan with respect to which the Underwriter or any of its affiliates are Parties in Interest. Certain exemptions from the prohibited transaction rules could be applicable, however, depending in part upon the type of Plan fiduciary making the decision to acquire a Series 2006 Bond and US WEST:260046119.5 15 the circumstances under which such decision is made. Included among these exemptions are those transactions regarding securities purchased during the existence of an underwriting, investments by insurance company pooled separate accounts, investments by insurance company general accounts, investments by bank collective investment funds, transactions effected by "qualified professional asset managers," and transactions affected by certain "in- house asset managers." Even if the conditions specified in one or more of these exemptions are met,the scope of the relief provided by these exemptions might or might not cover all acts which might be construed as prohibited transactions. In order to ensure that no prohibited transaction under ERISA or Section 4975 of the Code will take place in connection with the acquisition of a Series 2006 Bond by or on behalf of a Plan, each prospective purchaser of a Series 2006 Bond that is a Plan or is acquiring on behalf of a Plan will be required to represent that either(i) no prohibited transactions under ERISA or Section 4975 of the Code will occur in connection with the acquisition of such Series 2006 Bond or (ii) the acquisition of such Series 2006 Bond is subject to a statutory or administrative exemption. Any Plan fiduciary who proposes to cause a Plan to purchase 2006 Series A Bonds should(i)consult with its counsel with respect to the potential applicability of ERISA and the Code to such investments and whether any exemption would be applicable and (ii) determine on its own whether all conditions have been satisfied. Moreover, each Plan fiduciary should determine whether, under the general fiduciary standards of investment prudence and diversification, an investment in the 2006 Series A Bonds is appropriate for the Plan, taking into account the overall investment policy of the Plan and the composition of the Plan's investment portfolio. BOND COUNSEL OPINION Interest on the 2006 Series A Bonds is not excluded from gross income for federal income tax purposes under Section 103 of the Internal Revenue Code of 1986 (the "Code"). In the opinion of Orrick, Herrington & Sutcliffe LLP, Bond Counsel, interest on the 2006 Series A Bonds is exempt from State of California personal income taxes. Bond Counsel expresses no opinion regarding any other federal or state tax consequences relating to the ownership or disposition of,or the accrual or receipt of interest on,the 2006 Series A Bonds. The proposed form of opinion of Bond Counsel is contained in Appendix F—"PROPOSED FORM OF BOND COUNSEL OPINION." TAX MATTERS The following is a summary of certain of the United States federal income tax consequences of the ownership of the 2006 Series A Bonds as of the date hereof. Each prospective investor should consult with its own tax advisor regarding the application of United States federal income tax laws, as well as any state, local, foreign or other tax laws,to its particular situation. This summary is based on the Code, as well as Treasury regulations and administrative and judicial rulings and practice. Legislative,judicial and administrative changes may occur, possibly with retroactive effect, that could alter or modify the continued validity of the statements and conclusions set forth herein. This summary is intended as a general explanatory discussion of the consequences of holding the 2006 Series A Bonds generally and does not purport to furnish information in the level of detail or with the investor's specific tax circumstances that would be provided by an investor's own tax advisor. For example, it generally is addressed only to original purchasers of the 2006 Series A Bonds that are "U.S. holders" (as defined below), deals only with 2006 Series A Bonds held as capital assets within the meaning of Section 1221 of the Code and does not address tax consequences to holders that may be relevant to investors subject to special rules, such as individuals, trusts, estates, tax-exempt investors, foreign investors,cash method taxpayers,dealers in securities,currencies or commodities,banks,thrifts,insurance companies, electing large partnerships, mutual funds, regulated investment companies, real estate investment trusts, FASITs, S corporations,persons that hold 2006 Series A Bonds as part of a straddle,hedge,integrated or conversion transaction, and persons whose "functional currency" is not the U.S. dollar. In addition, this summary does not address alternative minimum tax issues or the indirect consequences to a holder of an equity interest in a holder of 2006 Series A Bonds. As used herein, a "U.S. holder" is a "U.S. person" that is a beneficial owner of a Bond. A "non-U.S. investor" is a holder(or beneficial owner)of a Bond that is not a U.S. Person. For these purposes, a"U.S.person"is a citizen or resident of the United States, a corporation or partnership created or organized in or under the laws of the United States or any political subdivision thereof (except, in the case of a partnership, to the extent otherwise US WEST:260046119.5 16 provided in Treasury regulations), an estate the income of which is subject to United States federal income taxation regardless of its source or a trust if(i) a United States court is able to exercise primary supervision over the trust's administration and (ii) one or more United States persons have the authority to control all of the trust's substantial decisions. Tax Status of the 2006 Series A Bonds The 2006 Series A Bonds will be treated, for federal income tax purposes,as a debt instrument. Accordingly, interest will be included in the income of the holder as it is paid(or, if the holder is an accrual method taxpayer, as it is accrued)as interest. Holders of the 2006 Series A Bonds that allocate a basis in the 2006 Series A Bonds that is greater than the principal amount of the 2006 Series A Bonds should consult their own tax advisors with respect to whether or not they should elect to amortize such premium under section 171 of the Code. If a holder purchases the 2006 Series A Bonds for an amount that is less than the adjusted issue price of the 2006 Series A Bonds, and such difference is not considered to be de minimis, then such discount will represent market discount that ultimately will constitute ordinary income (and not capital gain). Further, absent an election to accrue market discount currently,upon a sale or exchange of a Bond,a portion of any gain will be ordinary income to the extent it represents the amount of any such market discount that was accrued through the date of sale. In addition, absent an election to accrue market discount currently, the portion of any interest expense incurred or continued to carry a market discount bond that does not exceed the accrued market discount for any taxable year,will be deferred. Although the 2006 Series A Bonds are expected to trade "flat," that is, without a specific allocation to accrued interest, for federal income tax purposes, a portion of the amount realized on sale attributed to the 2006 Series A Bonds will be treated as accrued interest and thus will be taxed as ordinary income to the seller(and will not be subject to tax in the hands of the buyer). Some of the 2006 Series A Bonds (the "OID 2006 Series A Bonds") are expected to be issued with original issue discount("OID"). Accordingly, a holder of an OID Bond will be required to include OID in gross income as it accrues under a constant yield method,based on the original yield to maturity of the OID Bond. Thus,the holders of such OID 2006 Series A Bonds will be required to include OID in income as it accrues, prior to the receipt of cash attributable to such income. U.S. holders, however, would be entitled to claim a loss upon maturity or other disposition of such notes with respect to interest amounts accrued and included in gross income for which cash is not received. Such a loss generally would be a capital loss. A holder of an OID Bond that purchases an OID Bond for less than its adjusted issue price (generally its accreted value) will have purchased such OID Bond with market discount. If such difference is not considered to be de minimis,then such discount ultimately will constitute ordinary income (and not capital gain). Further, absent an election to accrue market discount currently, upon a sale or exchange of an OID Bond, a portion of any gain will be ordinary income to the extent it represents the amount of any such market discount that was accrued through the date of sale. In addition, absent an election to accrue market discount currently,the portion of any interest expense incurred or continued to carry a market discount bond that does not exceed the accrued market discount for any taxable year will be deferred. A holder of an OID Bond that has an allocated basis in the OID Bond that is greater than its adjusted issue price (generally its accreted value), but that is less than or equal to its stated redemption price at maturity,will be considered to have purchased the OID Bond with acquisition premium. The amount of OID that such holder of an OID Bond must include in gross income with respect to such OID 2006 Series A Bonds will be reduced in proportion that such excess bears to the OID remaining to be accrued as of the acquisition of the OID Bond. A holder of an OID Bond may have a basis in its pro rata share of the OID 2006 Series A Bonds that is greater than the stated redemption price at maturity of such OID 2006 Series A Bonds. Holders of OID 2006 Series A Bonds should consult their own tax advisors with respect to whether or not they should elect to amortize such premium,if any,with respect to such OID 2006 Series A Bonds under section 171 of the Code. Sale and Exchange of 2006 Series A Bonds Upon a sale or exchange of a Bond, a holder generally will recognize gain or loss on the 2006 Series A Bonds equal to the difference between the amount realized on the sale and its adjusted tax basis in such Bond. Such US WEST:260046119.5 17 gain or loss generally will be capital gain (although any gain attributable to accrued market discount of the Bond not yet taken into income will be ordinary). The adjusted basis of the holder in a Bond will (in general) equal its original purchase price increased by any OID (other than OID reduced due to acquisition premium and decreased by any payments received on the Bond. In general, if the Bond is held for longer than one year, any gain or loss would be long term capital gain or loss,and capital losses are subject to certain limitations. Defeasance Defeasance of any 2006 Series A Bond may result in a reissuance thereof, in which event a holder will recognize taxable gain or loss equal to the difference between the amount realized from the sale, exchange or retirement(less any accrued qualified stated interest which will be taxable as such)and the holder's adjusted tax basis in the Bond. Foreign Investors Distributions on the 2006 Series A Bonds to a non-U.S. holder that has no connection with the United States other than holding its Bond generally will be made free of withholding tax, as long as the holder has complied with certain tax identification and certification requirements. Circular 230 Disclaimer Investors are urged to obtain independent tax advice based upon their particular circumstances. The tax discussion above was not intended or written to be used, and cannot be used, for the purposes of avoiding taxpayer penalties. The advice was written to support the promotion or marketing of the 2006 Series A Bonds. VALIDATION On June 20,2006,the City,acting pursuant to the provisions of Sections 860 et seq. of the California Code of Civil Procedure, filed a complaint in the Superior Court of the County of San Mateo seeking judicial validation of the 2006 Series A Bonds and the Trust Agreement. On August 17, 2006, the court entered a default judgment to the effect, among other things, that the 2006 Series A Bonds and the Trust Agreement are valid, legal and binding obligations of the City and that the 2006 Series A Bonds and the Trust Agreement are valid and in conformity with all applicable provisions of law. The time period for the filing of appeals with respect to the judgment will expire on September 16, 2006. In issuing its opinion as to the validity of the 2006 Series A Bonds, Bond Counsel has relied upon the entry of the foregoing default judgment. CERTAIN LEGAL MATTERS Legal matters incident to the authorization, issuance, sale and delivery by the City of the 2006 Series A Bonds are subject to the approval of Orrick, Herrington & Sutcliffe LLP, Bond Counsel to the City. Certain legal matters will be passed upon for the City by the City Attorney for the City of Burlingame. Orrick, Herrington & Sutcliffe LLP will serve as Disclosure Counsel. Orrick, Herrington& Sutcliffe LLP undertakes no responsibility for the accuracy,completeness or fairness of this Official Statement. CONTINUING DISCLOSURE The City has covenanted for the benefit of 2006 Series A Bond Owners and beneficial owners of the 2006 Series A Bonds to provide certain financial information and operating data relating to the City by not later than seven months following the end of the City's fiscal year (currently ending June 30) (the "Annual Report"), commencing with the report for the fiscal year June 30, 2006, and to provide notices of the occurrence of certain enumerated events, if material. The Annual Report will be filed by the City or by the Trustee on behalf of the City with each Nationally Recognized Municipal Securities Information Repository and with the state information depository,if any. The notices of material events will be filed by the City or by the Trustee on behalf of the City with the Municipal Securities Rulemaking Board (and with state information depository). The specific nature of the information to be contained in the Annual Report or the notices of material events is summarized below under the caption "APPENDIX H—FORM OF CONTINUING DISCLOSURE CERTIFICATE." These covenants have been made in US WEST:260046119.5 18 order to assist the Underwriter in complying with S.E.C.Rule 15c2-12 (b)(5). The City has never failed to comply in all material respects with any previous undertakings with regard to said rule to provide annual reports or notices of material events. FINANCIAL STATEMENTS The City's financial statements for the fiscal year ended June 30, 2005, included in Appendix B hereto, have been audited by Caporicci & Larson, independent auditors, as stated in their report appearing in Appendix B hereto. Caporicci & Larson has not consented to the inclusion of its report as Appendix B and has not undertaken to update its report or to take any action intended or likely to elicit information concerning the accuracy, completeness or fairness of the statements made in this Official Statement, and no opinion is expressed by Caporicci & Larson with respect to any event subsequent to its report dated October 6,2005. LITIGATION At the time of delivery of and payment for the Bonds, officials of the City will certify that to the best of such officials' knowledge there is no action, suit, litigation, inquiry or investigation before or by any court, governmental agency, public board or body served or threatened, against the City, or the titles of their officers to their respective offices or seeking to prohibit,restrain or enjoin the sale,execution or delivery of the Bonds. RATINGS Standard& Poor's Ratings Group, a division of the McGraw Hill Companies, Inc. ("S&P") is expected to assign the 2006 Series A Bonds a rating of"AAA" with the understanding that, upon delivery of the 2006 Series A Bonds, the Policy will be issued by the Insurer. In addition, the City has received underlying ratings of"_" from S&P for the 2006 Series A Bonds based solely on the estimation of S&P of the ability of the City to make payments on the 2006 Series A Bonds when due on a stand-alone basis,without giving effect to the Policy. Such ratings reflect only the views of S&P, and do not constitute a recommendation to buy, sell or hold the 2006 Series A Bonds. Explanation of the significance of such ratings may be obtained only from the respective organizations at: Standard& Poor's Ratings Group, 55 Water Street, New York, New York 10041. There is no assurance that such rating will continue for any given period of time or that it will not be revised downward or withdrawn entirely by the rating agencies, if in the judgment of such rating agency circumstances so warrant. Any such downward revision or withdrawal of such ratings may have an adverse effect on the market price of the 2006 Series A Bonds. UNDERWRITING The 2006 Series A Bonds are being purchased by E.J. De La Rosa & Co. Inc. (the "Underwriter"). The Underwriter has agreed, subject to certain conditions, to purchase the 2006 Series A Bonds at a price of $ (which consists of the principal amount of the 2006 Series A Bonds of $ , less underwriter's discount of$ ). The Purchase Contract relating to the 2006 Series A Bonds(the"Purchase Contract") provides that the Underwriter will purchase all of the 2006 Series A Bonds if any are purchased, the obligation to make such purchase being subject to certain terms and conditions set forth in the Purchase Contract,the approval of certain legal matters by counsel and certain other conditions. The Underwriter may offer and sell the 2006 Series A Bonds to certain dealers and others at prices lower than the offering prices stated on the cover page. The offering prices may be changed from time to time by the Underwriter. US WEST:260046119.5 19 MISCELLANEOUS Included herein are brief summaries of certain documents and reports,which summaries do not purport to be complete or definitive, and reference is made to such documents and reports for full and complete statements of the contents thereof. Any statements in this Official Statement involving matters of opinion,whether or not expressly so stated, are intended as such and not as representations of fact. This Official Statement is not to be construed as a contract or agreement between the City and the purchasers or owners of any of the 2006 Series A Bonds. The execution and delivery of this Official Statement has been duly authorized by the City. CITY OF BURLINGAME By: US WEST:260046119.5 20 APPENDIX A THE CITY OF BURLINGAME General The City of Burlingame is situated in San Mateo County,approximately 10 miles south of San Francisco and 35 miles north of San Jose. The City is approximately three miles south of the San Francisco International Airport and served by two major freeways,north-south U.S. 101 (Bayshore Freeway)and highway Interstate 280. The City was incorporated in 1908. It is a California general law city with a Council-Manager form of government, whereby the policies of the City Council (the "Council") are administered by a City Manager, who is appointed by the Council. The Council consists of five members who are elected at large on a non-partisan basis for four-year staggered terms. The Mayor is selected annually by the Council. For more general information on the City, see"APPENDIX C--CITY OF BURLINGAME DEMOGRAPHIC INFORMATION." City Management The City Manager is Jim Nantell,who has been with the City since 2000. Mr.Nantell received a Bachelor of Arts degree from the University of Wisconsin, Madison and his Masters of Science from San Francisco State University. Prior to being employed by the city,Mr.Nantell was the Deputy City Manager of San Mateo,California. The Finance Director is Jesus Nava, who became Finance Director in January 2003. Mr. Nava has over 20 years of city and financial management experience including service as City Manager of Las Cruces,New Mexico, Deputy City Manager of San Jose, CA and Assistant City Manager of Laredo, TX. Mr. Nava received his Bachelor of Arts degree from the University of Texas, Austin and his Masters of Public Administration from the University of Kansas. Accounting Policies and Financial Reporting The City institutes a fiscal year beginning July 1 and ending June 30 of each year (a "Fiscal Year"). The following financial information has been extracted from the City's audited financial statements for Fiscal Year 2005 (the most recent audited financial statements) and, in some cases, from unaudited information provided by the City's Finance Department. The most recent audited financial statements of the City are included as"APPENDIX B"hereto. See "APPENDIX B--CITY OF BURLINGAME CALIFORNIA AUDITED FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30,2005." The City's accounting records are organized and operated on a "fund" basis, which is the basic fiscal and accounting method in governmental accounting. The three broad fund categories include governmental, proprietary and fiduciary funds. The operations of different funds are accounted for with separate sets of self-balancing accounts with assets, liabilities, fund balance or equity, and revenues and expenses. The basis of accounting for all funds is more fully explained in the Notes to Basic Financial Statements contained in"APPENDIX B". Budgetary Process The City adopts an annual budget for all funds under its control. Major funds include the General Fund, Capital Projects Fund,Water Fund, Sewer Fund and Parking Fund. Annual appropriations for all funds except capital projects lapse at the end of the year. Budgets are prepared on the same basis of accounting as the associated financial statements. The budget process begins each December with the preparation of a short-term financial forecast that projects pay and benefits and other known expenses for the next two fiscal years. The City Council uses the data to set budget strategies that address citizen needs with the resources at hand. US WEST:260046119.5 A-I With Council guidance, the City departments prepare their budget requests during the months of March and April and deliver them to the Finance Department. The City Manager's proposed budget is then formulated and delivered to the City Council in early-May. The Council conducts its review and the budget is adopted in June. Budget amendments that increase department appropriations are approved by City Council Resolution. Changes within departments are approved by the City Manager. Quarterly financial reports are presented to the City Council to help them assess and evaluate budget performance during the year. On June 19,2006,the City adopted its budget for Fiscal Year 2006-07. Comparison of Budget to Actual Performance The following table summarizes the City's adopted budgets for fiscal years 2003-04 through 2006-07, and sets forth actual revenues and expenditures for fiscal year 2004-05 for purposes of comparison. US WEST:260046119.5 A-2 CITY OF BURLINGAME General Fund Comparison of Budgeted and Actual Revenues,Expenditures and Fund Balances For Fiscal Years 2003-04 and 2006-07 Variance Budget Budget Positive Budget Budget 2003-04 2004-05 Actual (Negative) 2005-06 2006-07 Revenues: Property taxes 7,292,950 7,291,582 9,359,960 2,068,378 9,451,680 10,365,147 Sales and use taxes 8,792,150 8,971,000 8,508,127 (462,873) 8,897,903 9,309,291 Transient occupancy taxes 7,519,000 7,474,390 8,066,749 592,359 8,205,609 9,661,826 Othertaxes 1,510,650 1,649,784 1,860,825 211,041 1,807,277 1,977,941 Licenses and permits 603,319 779,199 815,980 36,781 775,475 937,893 Fines,forfeitures and penalties 1,079,000 1,175,000 1,010,894 (164,106) 1,200,000 909,300 Investment Income 1,0109000 6519184 782,599 131,415 730,939 886,985 Motor vehicle in lieu 1,525,000 1,525,000 Intergovernmental revenues 105,600 128,058 4489414 (1,204,644) 457,641 498,179 Charges for services 2,996,874 3,465,449 3,636,987 171,538 3,622,766 4,087,049 Grant revenue 154,000 171,816 174,436 2,620 175,000 170,704 Other revenue 134,730 165,457 159,7415( ,716) 152,693 287,571 Total Revenues 32,723,273 33,447,919 34,824,712 1,376,793 35,476,983 39,091,886 Expenditures: Current: General Government City Attorney 313,858 328,296 287,203 5,193 367,484 392,708 City Clerk 237,678 151,266 175,150 16 232,468 213,520 City Council 96,800 103,152 98,824 4,328 107,218 99,049 City Manager/Human Resource 814,607 795,229 820,286 (57) 854,748 915,406 Finance 762,547 762,860 725,327 10,033 835,914 872,455 Nondepartmental 1,602,523 1,759,623 1,721,449 226 1,883,371 2,091,964 Total General government 3,828,013 3,900,426 3,828,239 19,287 4,281,203 4,585,102 Public Safety: Fire 8,077,697 8,816,577 9,204,372 (58,060) 9,477,621 10,094,426 Police 8,006,966 8,170,860 8,440,6521( 6,292) 8,837,515 9,847,046 Total Public Safety 16,084,663 16,987,437 17,645,024 (74,352 18,380,136 19,941,472 Public Works 3,689,946 4,151,187 3,689,887 53,900 4,006,914 4,361,570 City planning 886,836 779,475 739,132 40,343 870,403 888,226 Parks,recreation,and library Library 2,922,759 3,184,497 3,137,602 49,595 3,398,086 3,559,816 Parks 2,251,418 2,1959937 2,126,390 46,147 2,367,546 2,719,170 Recreation 2,566,820 2,689,625 2,643,123 37,077 2,869,595 3,055,870 Total leisure and culture service 7,740,997 8,070,059 7,907,115 132,819 8,635227 9,334,856 Capital outlay 108,151 118,310 49,632 14,968 57,500 95,377 Total Expenditures 32,338,606 34,006,894 33,859,029 186,965 36,231383 39,206,603 Excess(deficiency)of revenues over expenditures 384,667 (558,975) 965,683 1,563,758 (754,400) (114,717) Other financing sources(uses): Transfers in 258,000 568,000 575,529 7,529 5799000 598,550 Transfers out (1,469,630) (222,000) (1,181,500) 597,234 (2,824,130) (3,788,009) Total other financing sources(uses) (1,211,630) 346,00060( 5,971) 604,763 (2,245,1301 (3,189,459) Net change in fund balance (826,963 (212,975 359,712 2,168,521 (2,264,596) (3,304,1761 Fund balances-beginning 1,855,284 1,028,321 8,634,976 Fund balances-endings $49 Source: City of Burlingame, Finance Department US WEST:260046119.5 A-3 General Fund Financial Summary The information contained in the following tables of audited revenues, expenditures and changes in fund balances, and assets, liabilities and fund equity is summarized from audited financial statements for fiscal years ending June 30, 2002 through 2005. The City's audited General Purpose Financial Statements for the fiscal year ended June 30, 2005 is attached as "APPENDIX B—CITY OF BURLINGAME CALIFORNIA AUDITED FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30,2005"hereto. US WEST:260046119.5 A-4 CITY OF BURLINGAME General Fund Revenue,Expenditures and Fund Balances For Fiscal Years 2001/02 through 2004/05 2001/02 2002/03 2003/04 2004/05 REVENUE: Property Taxes $ 6,845,682 $ 6,844,807 $7,399,455 $9,359,960 Sales and Use Taxes 9,176,631 8,095,185 8,834,316 8,508,127 Transient Occupancy Taxes 7,698,028 6,679,954 7,299,334 8,066,749 Other Taxes 1,517,476 1,444,897 1,728,225 1,860,825 Licenses and Permits 1,498,963 1,679,207 758,368 815,980 Fines,Forfeitures and Penalties 519,679 609,993 1,057,060 1,010,894 Investment Income 1,583,715 884,100 684,190 782,599 Motor vehicle in lieu -- 1,678,733 1,288,940 308,004 Intergovernmental Revenues 1,966,888 136,338 126,691 140,410 Charges for Services 2,309,075 2,775,110 3,316,477 3,636,987 Grant Revenue -- 214,011 214,809 174,436 Other Revenue 212,175 125,512 147,307 159,741 TOTAL REVENUE 33,328,312 31,167,847 32,855,172 34,824,712 EXPENDITURES: General Government 4,097,900 3,618,740 3,782,537 3,828,240 Public Safety 14,408,576 15,589,734 15,756,899 17,645,024 Public Works 3,843,595 3,626,801 3,477,623 3,689,887 City Planning -- 953,826 755,942 739,132 Library,Parks and Recreation 7,871,504 7,985,492 7,676,728 7,907,113 Capital Outlay 21,777 22,761 49,633 TOTAL EXPENDITURES 30,221,575 31,796,370 31,472,490 33,859,029 EXCESS(DEFICIENCY)OF REVENUES OVER(UNDER) 3,106,737 (628,523) 1,382,682 965,683 EXPENDITURES OTHER FINANCING SOURCES(USES) Operating Transfers In 157,683 168,199 559,421 575,529 Operating Transfers Out() (6,776,8521 (5,301,159) (1,991,789) 11,181,500) TOTAL OTHER FINANCING SOURCES (6,619,169) (5,132,960) (1,432,368) (605,971) EXCESS(DEFICIENCY)OF REVENUES AND OTHER FINANCING SOURCES OVER(UNDER) EXPENDITURES AND OTHER (3,512,432) (5,761,483) (49,686) 359,712 FINANCING SOURCES(USES) FUND BALANCE,JULY 1 19,197,400 14,446,145(`) 8.684,662 8,634,976 FUND BALANCE,JUNE 30 $13,204,968(b) $ 8,684,662 $ 8,634,976 8,994,688 dal Operating Transfers Out include transfers to Capital Project Funds. (b) Residual equity transfer out($2,480,000). (0 Cumulative effect of a change in accounting principles: $1,241,177. Source:City of Burlingame Finance Department. US WEST:260046119.5 A-5 CITY OF BURLINGAME General Fund Comparative Balance Sheet For Fiscal Years 2001/02 through 2004/05 2001/02 2002/03 2003/04 2004/05 ASSETS Cash and investments $13,250,723 $9,269,665 $9,790,445 $10,711,176 Receivables: Accounts -- 47,325 105,263 165,675 Due from other governments -- 119,881 -- 3,785 Transient occupancy tax 709,875 667,759 761,232 998,358 Sales Tax 1,473,300 1,225,900 1,432,400 1,052,400 Accrued Interest Receivable 306,747 177,734 201,255 228,038 Litigation Settlement -- 126,000 126,000 126,000 Real Property Transfer Tax -- 22,599 44,502 36,533 Public Safety 10,513 9,590 12,610 10,511 Other Assets 184,570 22,455 36.178 41,592 TOTAL ASSETS 15,935,728 11,688,908 $12,509,885 $13,374,068 LIABILITIES Accounts Payable 351,386 427,800 $591,509 $596,725 Accrued payroll 1,140,443 1,120,819 1,379,137 1,639,955 Liability for compensated 1,230,272 -- -- absences Deposits 5,875 1,441,405 1,904,263 1,968,165 Unearned Revenue 2,784 14,222 -- 174,535 TOTAL LIABILITIES 2,730,760 3,004,246 3,874,909 4,379,380 FUND BALANCES Reserved for Debt Service - 81,923 86,000 -- Reserved for Restricted Purposes -- 18,000 -- Unreserved-Designated 11,056,877 7,820,000 7,330,000 7,948,183 Unreserved-Undesignated 2,148,091 764,739 1,304,976 1.046,505 TOTAL FUND BALANCES 13,204,968 8,684,662 8,634,976 8,994,688 TOTAL LIABILITIES AND FUND BALANCES $15.935.728 $11,688,908 $12,509,885 $13, 74,068 Source: City of Burlingame Finance Department. Tax Receipts Taxes and revenues received by the City include sales and use taxes, property taxes, transient occupancy taxes, licenses and permits revenues, intergovernmental revenues and others. Of such taxes, sales taxes, property taxes and transient occupancy taxes constitute the major sources of General Fund revenues. The following table sets forth tax revenues received by the City,by source: US WEST:260046119.5 A-6 CITY OF BURLINGAME Tax Revenues by Source(a) For Fiscal Years 2001/02 through 2004/05 Fiscal Year Ended June 30, 2001-02 2002-03 2003-04 2004-05 Sales and Use Taxes 9,176,631 8,095,185 8,834,316 8,508,127 Property Taxes 6,845,682 6,844,807 7,399,455 9,359,960 Transient Occupancy Taxes 7,698,028 6,679,954 7,299,334 8,066,749 Licenses,Permits,Fines,Forfeitures and 2,018,642 2,347,399 1,878,849 1,886,403 Penalties Intergovernmental Revenues(b) 1,966,888 4,006,051 3,072,522 1,995,764 Charges for Services 2,309,075 2,806,724 3,316,477 3,636,987 (a) This table includes the General Fund,Capital Projects Fund and other Governmental Funds. (b) Includes motor vehicle in lieu tax and grant revenue. Sales Taxes Sales tax receipts provide one of the largest tax revenue sources for the City, contributing 23% of the total General Fund revenues during Fiscal Year 2004-05. A sales tax is imposed on retail sales or consumption of personal property. The tax rate is established by the State Legislature. The statewide tax rate is 7.25%. An additional 1.00% is collected in San Mateo County for transportation purposes. The State collects and administers the tax, and makes distributions on taxes within the City as follows: CITY OF BURLINGAME Sales Tax Rates State(General Fund): 5.00% State(Fiscal Recovery Fund) 0.25% State (Local Revenue Fund): 0.50% State(Local Public Safety Fund): 0.50% Local: 1.00% County transportation 0.25% City and County Operations 0.75% County(Transportation): 1.00% Total: 8.25% The State's actual administrative costs with respect to the portion of sales taxes allocable to the City are deducted before distribution and are determined on a quarterly basis. A history of taxable sales in the City during calendar years 2001 through 2004 are shown below: US WEST:260046119.5 A-7 CITY OF BURLINGAME Taxable Transactions by Type of Business For Calendar Years 2001 through 2004 (amounts in thousands) Type of Business 2001 2002 2003 2004 Retail Stores Apparel Stores $37,810 $34,655 $35,183 $ 39,562 General Merchandise Stores 18,024 18,187 18,011 20,261 Food Stores 19,645 20,079 18,092 17,389 Eating/Drinking Places 87,267 80,748 78,240 83,098 Home furnishings and appliances 19,612 20,153 20,833 20,677 Bldg.material and farm implements 22,981 22,196 21,591 23,628 Auto dealers,auto supplies 331,015 309,295 327,594 302,579 Service Stations 29,692 25,294 29,412 33,170 Other Retail Stores 97,483 76,240 77,909 80,539 Retail Stores Total $663,529 $606,847 626,865 620,903 All Other Outlets 257,937 196,097 190,037 204,900 TOTAL ALL OUTLETS $921,466 $802,944 $816,902 $825,803 Source: California State Board of Equalization Property Taxes Property tax is currently the City's largest revenue source. It accounts for 25% of all governmental revenue and 27% of the General Fund revenue in fiscal year 2004-05. Property tax revenue grew in fiscal year 2004-05 by 26.5%, an increase of$1.96 million from fiscal year 2003-04. Part of the increase is due to the State of California remitting the Motor Vehicle In Lieu of Taxes(VLF)Payment to the City as property tax. The City received two State payments in fiscal year 2003-04 for a total of$1.5 million. The State withheld $608,000 in property tax from the City in fiscal year 2004-05. This was the City's contribution to the State deficit reduction plan. A final payment of$608,000 was made to the State in fiscal year 2005-06. The revenue will return to the City in fiscal year 2006-07. Property taxes has been the primary revenue source affected by voter initiatives and legislative actions. With approval of Proposition 13,property tax revenues were first curtailed almost 20 years ago when they were reduced by two-thirds and thereafter limited to 2% annual increases or the Consumer Price Index, whichever was less. In 1992- 93 and 1993-94, in response to serious budgetary shortfalls, the State Legislature and administration permanently redirected over $3 billion of property taxes from cities, counties, and special districts to schools and community college districts. The Legislature, however, provided some additional funding sources (such as sales taxes) and reduced certain mandates for local services. Assessed Valuation. The valuation of property in the City is established by the San Mateo County Assessor, except for public utility property, which is assessed by the State Board of Equalization. Assessed valuations are reported at 100% of the full value of the property, as defined in Article XIIIA of the California Constitution. Prior to 1981-82,assessed valuations were reported at 25%of the full value of the property. See"CONSTITUTIONAL AND STATUTORY LIMITATIONS AFFECTING CITY REVENUES AND APPROPRIATIONS"herein. US WEST:260046119.5 A-8 Two types of State-reimbursed exemptions affect the valuation of property. The first currently exempts 100% of the full value of business inventories from taxation. The second exemption currently provides a credit of $7,000 of the full value of an owner-occupied dwelling for which application has been made to the County Assessor. Revenue estimated to be lost to local taxing agencies due to the above exemptions has in the past been reimbursed from State sources. Reimbursement is based upon total taxes due upon such exemption values and therefore is not reduced by any estimated amount of actual delinquencies. CITY OF BURLINGAME State and Locally Assessed Values of Taxable Property Real Property Personal Property Percent of Total Value of Increase or Deduct Property (Decrease) Fiscal State Locally State Locally Property Subject to Over Prior Year Assessed Assessed Assessed Assessed Exemption Tax Rate Year 1997 1,528,056 2,942,994,350 143,756 154,171,590 (160,385,504) 2,938,452,248 2.66% 1998 1,804,097 3,067,510,193 285,268 174,970,949 (170,980,507) 3,073,590,000 4.60% 1999 2,940,169 3,373,390,072 349,640 207,883,019 (179,831,820) 3,404,731,080 10.77% 2000 1,052,948 3,689,204,840 238,884 222,294,256 (232,479,813) 3,680,311,115 8.09% 2001 899,564 4,043,936,359 220,829 212,720,931 (203,641,245) 4,054,136,438 10.16% 2002 984,853 4,423,964,865 241,767 222,064,867 (215,148,037) 4,432,108,315 9.32% 2003 948,199 4,638,600,228 232,768 212,776,662 (226,664,086) 4,625,893,771 4.37% 2004 1,082,852 4,814,937,132 265,825 204,252,210 (240,138,120) 4,780,399,899 3.34% 2005 1,351,186 5,120,090,427 331,696 219,591,888 (234,621,531) 5,106,743,666 6.83% 2006 1,260,335 5,508,189,852 309,393 206,510,607 (260,200,315) 5,456,069,872 6.84% Source: San Mateo County Assessor. Ad Valorem Property Taxes. Taxes are levied for each fiscal year on taxable real and personal property which is situated in the City as of the preceding January 1. For assessment and collection purposes, property is classified either as "secured" or"unsecured," and is listed accordingly on separate parts of the assessment roll. The "secured roll" is that part of the assessment roll containing State-assessed property, the taxes on which are a lien on real property sufficient to secure payment of the taxes. Other property is assessed on the "unsecured roll." See "CONSTITUTIONAL AND STATUTORY LIMITATIONS ON TAXES AND APPROPRIATIONS"herein. US WEST:260046119.5 A-9 The following table summarizes the largest taxpayers located within the City in terms of their assessed value for fiscal year 2004/05. CITY OF BURLINGAME Largest Taxpayers Fiscal Year Ending 2005 Percentage of Percentage of No. Property Taxes Total City Net Assessed Total Assessed Property Owner Parcels Type of Business Paid to City* Property Taxes Valuation Valuation HMC Burlingame Hotel LLC 2 Hotel $122,062 1.82% $83,931,000 1.74% HMH SFO Inc. 1 Hotel 94,531 1.41% 65,000,000 Airport Blvd.Hotel LLC 1 Hotel 64,979 0.97% 44,679,721 0.93% Bay Park Plaza Associates 1 Hotel 56,154 0.84% 38,611,548 0.80% Felcor CSS Holdings LP 2 Hotel 49,417 0.74% 33,979,536 0.71% One Bay Plaza Associates LLC 1 Hotel 41,157 0.61% 28,300,000 0.59% Northpark LLC 2 Apartments 40,836 0.61% 28,079,307 0.58% Glenborough Properties LP 1 Office Building 36,358 0.54% 25,000,000 0.52% Harbor View Hotels,Inc 1 Hotel 35,303 0.53% 24,474,873 0.51% Public Storage Inc 4 Office Building 34,530 0.51% 23.743,283 0.49% TOTAL 16 $.56% $395.799.268 L220 *Burlingame receives an average 14%of the property taxes collected within the City boundaries,after the transfer of taxes to the Educational Reimbursement Augmentation Fund(ERAF). Source: HdL Coren&Cone,San Mateo County Assessor Tax Rates The basic tax rate for all taxing entities within a particular tax code area is$1 per$100 of assessed valuation in accordance with Article XIIIA of the State Constitution. To this may be added whatever tax rates are necessary to meet debt service on indebtedness approved by the voters. Tax Levies,Collections and Delinquencies Property taxes on the secured roll are due in two installments, on January 1st and June 1st of the fiscal year. If unpaid, such taxes become delinquent on December 10th and April 10th, respectively, and a 10 percent penalty attaches to any delinquent payment. On July 1,an additional 1'h percent per month is levied on delinquencies for five years. In addition, property on the secured roll with respect to which taxes are delinquent is sold to the State on or about June 30th five years after the delinquency occurs. Such property may thereafter be redeemed by payment of the delinquent taxes and the delinquency penalty, plus a redemption penalty of one percent per month to the time of redemption. If taxes are unpaid for a period of five years or more, the property is deeded to the State and then is subject to sale by the County Tax Collector. Property taxes on the unsecured roll are due as of the March 1st lien date and become delinquent, if unpaid, on August 31st. A six percent penalty attaches to delinquent taxes on property on the unsecured roll, and an additional penalty of one percent per month begins to accrue beginning November 1 st of the fiscal year. Beginning in fiscal year 1978/79, Proposition 13 and its implementing legislation shifted the function of property taxation primarily to the counties,except for levies to support prior voted debt,and prescribed how levies on US WEST:260046119.5 A-10 countywide property values are to be shared with local taxing entities within each county. The total tax levies and year-end delinquencies for fiscal years 1995-96 through 2003-04 are shown in the following table. CITY OF BURLINGAME Secured Tax Charges and Delinquencies Amount Delinquent Percent Delinquent Fiscal Year Secured Tax Charge(a) June 30 June 30 1995-96 $27,719,300.30 $450,080.86 1.62% 1996-97 28,362,725.08 255,249.53 0.90 1997-98 30,479,936.14 308,875.18 1.01 1998-99 32,964,587.18 299,846.63 0.91 1999-00 35,756,621.74 378,088.94 1.06 2000-01 39,337,279.76 490,915.93 1.25 2001-02 43,575,057.18 611,351.95 1.40 2002-03 46,045,638.42 437,071.65 0.95 2003-04 48,423,984.74 393,202.32 0.81 (a) All taxes collected by the County within the City. Includes special charges. Source:California Municipal Statistics,Inc. Teeter Plan The San Mateo County Board of Supervisors utilizes the Alternative Method of Distribution of Tax Levies and Collections and of Tax Sale Proceeds(the"Teeter Plan"),as provided for in Section 4701 et seq. of the California Revenue and Taxation Code. Generally, the Teeter Plan provides for a tax distribution procedure in which secured roll taxes and assessments are distributed to taxing agencies within the County on the basis of the tax and assessment levy,rather than on the basis of actual tax and assessment collections. The County then receives all future delinquent tax and assessment payments and penalties. Pursuant to the Teeter Plan,the County establishes a tax and assessment losses reserve fund and a tax resources account, and each entity levying or entitled to receipt of property taxes in the County may draw on the amount of uncollected taxes and assessments credited to its fund, in the same manner as if the amount credited had been collected. The County is responsible for determining the amount of tax and assessment levy on each parcel which is entered onto the secured real property tax roll. Upon completion of the secured real property tax roll, the County's Auditor-Controller determines the total amount of taxes and assessments actually extended on the roll for each fund for which a tax levy has been included, and apportions 100 percent of the tax and assessment levies to that fund's credit. Such moneys may thereafter be drawn against by the taxing agency in the same manner as if the amount credited had been collected. The County determines which moneys in the county treasury(including those credited to the tax and assessment losses reserve fund) shall be available to be drawn on to the extent of the amount of uncollected taxes and assessments credited to each fund for which a levy had been included. When amounts are received on the secured tax roll for the current year, or for redemption of tax-defaulted property,Teeter Plan moneys are distributed to the apportioned tax resources funds. California State law has authorized the Teeter Plan for over 40 years; however, until 1993, it had been implemented by only five counties. Legislation signed by the Governor on July 19, 1993 provided a financial inducement to utilize this simplified accounting method. So long as the Teeter Plan is in place,the City is expected to be credited with 100 percent of its property taxes,regardless of any delinquencies in payment of the taxes. However, the County Board of Supervisors may discontinue the Teeter Plan at any time. US WEST:260046119.5 A-11 Transient Occupancy Taxes Because of the City's location near San Francisco International Airport, transient occupancy taxes have historically provided the largest single revenue source for the City's General Fund. Sometimes referred to as a hotel tax, this tax is imposed on occupants for the privilege of occupying rooms in hotels, motels, inns and other taxed properties. The City's transient occupancy tax rate is 10%. In fiscal years 2001, 2002, 2003, 2004 and 2005 the transient occupancy taxes totaled $13,817,516, $7,698,028, $6,679,954, $7,299,334, and $8,066,749 respectively. Transient occupancy taxes are the most economically sensitive for the City. In recent years, revenues from the transient occupancy taxes have declined because of the recession and a decline in business travel. For 2005/06, the City estimates that it will receive $9,280,658 in transient occupancy taxes (approximately 26% of General Fund revenues.) The following table lists as of June 30, 2006, the major hotels located within the City and their room totals: CITY OF BURLINGAME Major Hotel Room Totals Hotel Number of Rooms Hyatt 789 Marriott 685 Sheraton 404 Embassy Suites 340 Crowne Plaza 309 Double Tree 388 Red Roof 213 Holiday Inn Express 144 Hilton Garden 132 Vagabond 91 Hampton Inn 77 Bay Landing 130 Total 3,702 Source: City of Burlingame. Long-Term Obligations The City currently has outstanding lease obligations described below which are secured by General Fund revenues. On March 5, 1998,the City executed and delivered a lease in connection with the issuance of$17,590,000 Burlingame Financing Authority Lease Revenue Bonds (Wastewater Treatment Project) (the "1998 Bonds"). Pursuant to the lease, the City is obligated to make lease payments from the City General Fund in an annual amount of approximately $1.7 million. The final maturity of the 1998 Bonds is October 2011. On August 1, 2001, the City executed and delivered a lease in connection with the issuance of$15,000,000 Burlingame Financing Authority Lease Revenue Bonds, Series 2001 (Corporation Yard Project) (the "2001 Bonds"). Pursuant to the lease, the City is obligated to make lease payments from the City General Fund in an annual amount of approximately $1.17 million. The final maturity of the 2001 Bonds is August 2021. On August 4, 2004,the City executed and delivered a lease in connection with the issuance of $6,705,000 Burlingame Financing Authority Lease Revenue Refunding Bonds, Series 2004 (the "2004 Lease Bonds"), which refinanced certain improvements to the City's library. Pursuant to the lease, the City is obligated to make lease payments from the City's General Fund in an annual amount of approximately$750,000. The final maturity of the 2004 Lease Bonds is December 2016. US WEST:260046119.5 A-12 The City currently has outstanding revenue obligations described below which are secured by the revenues of the Sewer and Water Systems of the City. On February 11, 2003, the City executed and delivered installment sale agreements in connection with the issuance of$8,700,000 Burlingame Financing Authority Water and Wastewater Revenue Bonds,Series 2003(the"2003 Bonds"). Pursuant to the installment sale agreements,the City is obligated to make installment payments from the City's Water and Wastewater Funds in an annual amount of approximately $590,000. The final maturity of the 2003 Bonds is April 1, 2028. On March 11, 2004, the City executed and delivered installment sale agreements in connection with the issuance of $20,320,000 Burlingame Financing Authority Water and Wastewater Revenue Bonds, Series 2004 (the "2004 Bonds"). Pursuant to the installment sale agreements, the City is obligated to make installment payments from the City's Water and Wastewater Funds in an annual amount of approximately$1.3 million. The final maturity of the 2004 Bonds is April 1,2029. The City has never defaulted on the payment of principal or interest on any of its lease or revenue obligations. The City has complied with all significant bond covenants relating to reserve and sinking fund requirements,proofs of insurance,and budgeted revenues and maintenance costs. Direct and Overlapping Bonded Debt The statement of direct and overlapping debt(the"Debt Report")set forth below was prepared by California Municipal Statistics, Inc. as of June 30, 2006. The Debt Report includes only such information as has been reported to California Municipal Statistics, Inc.by the issuers of the debt described therein and by others. The Debt Report is included for general information purposes only. The City takes no responsibility for its completeness or accuracy. US WEST:260046119.5 A-13 CITY OF BURLINGAME Statement of Direct and Overlapping Debt 2005-06 Assessed Valuation: $5,492,611,272 OVERLAPPING TAX AND ASSESSMENT DEBT: %Applicable Debt 6/30/06 San Mateo Community College District 5.309% $17,664,625 San Mateo Union High School District 15.096 19,547,803 Burlingame School District 94.243 15,922,355 Hillsborough School District 0.095 11,353 TOTAL OVERLAPPING TAX AND ASSESSMENT DEBT $53,146,136 DIRECT AND OVERLAPPING GENERAL FUND DEBT: San Mateo County General Fund Obligations 5.309% $21,757,599 San Mateo County Board of Education Certificates of Participation 5.309 743,260 San Mateo Community College District Certificates of Participation 5.309 1,639,685 San Mateo Union High School District Certificates of Participation 15.096 5,283,600 City of Burlingame Wastewater Lease Revenue Bonds 100. 8,775,000 City of Burlingame Lease Revenue Bonds 100. 19,080,000'1 San Mateo County Mosquito Abatement District Certificates of Participation 7.340 93,585 TOTAL GROSS DIRECT AND OVERLAPPING GENERAL FUND DEBT $57,372,729 Less: City of Burlingame Wastewater Lease Revenue Bonds(100%self-supporting) 8,775,000 TOTAL NET DIRECT AND OVERLAPPING GENERAL FUND DEBT $48,597,729 GROSS COMBINED TOTAL DEBT $110,518,865(2) NET COMBINED TOTAL DEBT $101,743,865 (11 Excludes pension obligations to be sold. (2) Excludes tax and revenue anticipation notes,enterprise revenue,mortgage revenue and tax allocation bonds and non-bonded capital lease obligations. Ratios to 2005-06 Assessed Valuation: Gross Combined Direct Debt ($27,855,000) 0.51% Net Combined Direct Debt ($19,080,000) 0.35% Total Overlapping Tax and Assessment Debt 0.97% Gross Combined Total Debt 2.01% Net Combined Total Debt 1.85% STATE SCHOOL BUILDING AID REPAYABLE AS OF 6/30/06: $0 YV:($450) Investment Policies and Procedures Funds held by the City are invested in accordance with the City's Statement of Investment Policy (the "Investment Policy")prepared by the Finance Director/Treasurer as authorized by section 53601 of the Government code of California. A copy of the City's current Investment Policy is attached as "APPENDIX D—CITY OF BURLINGAME STATEMENT OF INVESTMENT POLICY." The Investment Policy is submitted to the Burlingame City Council annually. US WEST:260046119.5 A-14 The Investment Policy allows for the purchase of a variety of securities and provides for limitations as to exposure,maturity and rating which vary with each security type. The composition of the portfolio will change over time as old investments mature, or are sold,and as new investments are made. Invested funds are managed to insure preservation of capital through high quality investments, maintenance of liquidity and then yield. Further, operating funds may not be invested in any investment with a maturity greater than five years. The City has never invested in derivatives or reverse repurchase agreements and such investments and instruments are not allowed by City policy. The market value of the City's investment portfolio as of June 30,2006 was as follows: CITY OF BURLINGAME Market Value of Investments June 30,2006 Market Value Percent of Portfolio Days to Maturity Local Agency Investment Fund&County Pool $18,753,626 55.75% 1 Federal Home Loan Bank 8,435,840 25.25% 405 Federal Home Loan Mortgage Corp. 3,452,540 10.25% 191 Fannie Mae 2,928,186 8.75% 313 TOTAL $33,570,192 Source: The City of Burlingame. The City believes that its funds are prudently invested and that the investments therein are scheduled to mature at the times and in the amounts that are necessary to meet the City's expenditures and other scheduled withdrawals. For additional information concerning the City investments, see "APPENDIX B—CITY OF BURLINGAME CALIFORNIA AUDITED FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2005" and "APPENDIX D—CITY OF BURLINGAME STATEMENT OF INVESTMENT POLICY"hereto. Self-Insurance Program The City's program of self-insurance became effective July 1, 1976 for workers' compensation coverage and December 2, 1976 for general liability coverage. Insurance reserves are shown as a self-insurance fund. As of June 30, 2006, the City was self-insured for losses up to $500,000 and $250,000 for workers' compensation and general liability, respectively. As of June 30, 2005 reserves totaled $5,134,212 for workers' compensation and general liability coverage. As of that date, all current claims had been evaluated and the estimated reserve for future costs recorded as a liability in the self-insurance fund. The City has liability insurance coverage up to $20 million and worker's compensation coverage up to$5 million over its self-insured retention. Pension Benefits For a discussion of pension benefits,see"PENSION PLAN"herein. US WEST:260046119.5 A-15 Other Post-Employment Benefits In addition to pension benefits, the City provides post-employment health benefits for eligible employees. The amount and length of these benefits depends on a variety of factors,including age at retirement, length of service, employee classification or labor union bargaining unit,and contract date. Expenditures for post-employment benefits are recognized on a "pay-as-you-go" basis each year as premiums are paid. In Fiscal Year 2005-06, expenditures were $1.5 million for 219 employees eligible to receive some post-employment health benefits. The City has budgeted Fiscal Year 2006-07 expenditures of$1.6 million for such benefits. In May 2005, the City received the preliminary results of an independent actuarial study regarding other post-employment benefits. The preliminary results estimated that the City's actuarial accrued liability was approximately $52.6 million as of June 30, 2005. The City makes no representation as to the accuracy of this preliminary estimate. This estimate was based on actuarial assumptions including demographic (mortality turnover and retirement) assumptions used by PERS actuary in the annual pension valuation; 4% interest rate and healthcare trend increases of 11%to 12% decreasing to 4%to 5%over 10 years. Certain of these assumptions may differ when the next actuarial valuation is prepared, and the actual accrued liability with respect to other post-retirement benefits could differ materially from this preliminary estimate. In August 2004,the Governmental Accounting Standards Board("GASB")issued Statement No. 45 ("GASB 45"), "Accounting and Financial Reporting by Employers for Post-Employment Benefits Other than Pensions" ("OPEB")which addresses how state and local governments should account for and report the annual cost. GASB 45 generally requires that employers account for and report the annual cost of OPEB and the outstanding obligations and commitments related to OPEB in essentially the same manner as they currently do for pensions. Annual OPEB cost for most employers will be based on actuarially determined amounts that, if paid on an ongoing basis, generally would provide sufficient resources to pay benefits as they come due. The provisions of GASB 45 may be applied prospectively and do not require governments to fund their OPEB plans. An employer may establish its OPEB liability at zero as of the beginning of the initial year of implementation; however, the unfunded actuarial liability is required to be amortized over future periods on the income statement. The City will be required to implement GASB 45 for the Fiscal Year ending June 30,2009. The City anticipates that it will commission in Fiscal Year 2006-07 a report of an independent actuary regarding the City's other post-employment benefit liabilities. Deferred Compensation Plan The City adopted an IRS-approved deferred-compensation plan for its employees in 1976. The plan is fully funded and a separate account is maintained for each participant. Employer-Employee Relations The City employees a total of 277 employees which are represented by a total of eight bargaining units. The City Manager and the Human Resources Director conduct negotiations with each employee unit with assistance of outside negotiators when necessary. The following table lists the existing bargaining units and the respective date for which their contract with the City expires. US WEST:260046119.5 A-16 CITY OF BURLINGAME Bargaining Units Bargain Units Contract Expires Association of Department Heads (a) Burlingame Association of Middle Managers December 24,2007 International Association of Firefighters December 31,2007 Police Officers Associations December 31,2008 Police Administrators December 31,2008 Teamsters(Dispatchers) November 30,2007 AFSCME 829 and 2190 June 30,2007 (a)Annual reopener,no expiration date. Source: City of Burlingame. Population The following table presents population data for the City and County. POPULATION Year City of Burlingame County of San Mateo 1980 26,173 587,329 1990 26,666 649,623 2000 28,158 707,161 2001 28,350 712,400 2002 28,300 714,700 2003 28,259 717,000 2004 28,189 718,993 2005 28,280 723,453 Source: The 1980, 1990 and 2000 totals are U.S.Census figures. The figures for the years 2001,2002,2003,2004 and 2005 are based upon adjusted January 1 estimates provided by the State. Median Effective Buying Income Effective Buying Income(EBI)is defined as personal income less personal income tax and non-tax payments, such as fines, fees or penalties. The County has historically enjoyed a higher Median Household EBI than either the State or the nation. Median Household EBI for the County,State,and the nation from 1999-2005 is shown below. MEDIAN EFFECTIVE BUYING INCOME Year County of San Mateo State of Califomia United States 1999(" $52,452 $37,091 $35,377 US WEST:260046119.5 A-17 2000 56,433 39,492 37,233 2001 65,565 44,464 39,129 2002 64,764 44,050 38,365 2003 60,071 42,484 38,035 2004 60,516 [to come] 38,201 2005 59,703 [to come] 39,324 As of January 1. Source: "Survey of Buying Power",Sales and Marketing Management Magazine. US WEST:260046119.5 A-18 The following table summarizes historical employment and unemployment in San Mateo County. SAN MATEO COUNTY Civilian Labor Force,Employment and Unemployment Annual Averages 1998 1999 2000 2001 2002 Civilian Labor Force(a) Employment 384,400 390,500 393,900 384,000 363,200 Unemployment 9.600 7,800 6,500 11,600 19,200 Total 394,000 398,300 400,400 395,600 382,400 Unemployment Rate(b) 2.4% 2.0% 1.6% 2.9% 5.0% W Based on place of residence;March 2002 Benchmark. W The unemployment rate is calculated using unrounded data. Source: California Employment Development Department,Labor Market Information Division. The following table summarizes historical employment and unemployment in the City. CITY OF BURLINGAME Civilian Labor Force,Employment and Unemployment Annual Averages 2000 2001 2002 2003 2004 2005 Civilian Labor Force0) Employment 17,250 16,930 15,520 14,800 14,700 14,800 Unemployment 180 320 540 600 500 400 Total 17,430 17,250 16,060 15,400 15,200 15,200 Unemployment Rate(b) 1.1% 1.9% 3.4% 4.0% 3.3% 2.9% (') Based on place of residence;March 2002 Benchmark. (b) The unemployment rate is calculated using unrounded data. Source: California Employment Development Department,Labor Market Information Division. Community Facilities The City of Burlingame maintains a main library and a branch library. A daily newspaper and two weeklies serve the community. The City's Park and Recreation Department operates ten parks, four playgrounds and a recreation building with facilities and programs directed to all age groups in the community. Burlingame Country Club, a private facility located in neighboring Hillsborough, is reputed to be the oldest country club in the United States. There are several championship golf courses in the vicinity. Hospitals A full medical services hospital, Peninsula Hospital (part of the Mills-Peninsula Hospital) serves the residents of the City and its surrounding communities. The hospital employs a staff of approximately 2,300 and has a capacity of 403 beds. Peninsula Hospital offers additional special programs including: arthritis, injured worker US WEST:260046119.5 A-19 services, cancer care, open heart surgery, alcohol and drug treatment, mental health, diabetes education, nutrition and weight,parenting,seniors' self care,and support groups. Financial Institutions There are 13 commercial banks, three savings banks, two savings and loan and one credit union located in the City. They include: Bank of America, Bank of the West, California Federal Bank, Pacific Bank, Union Bank, California Savings Bank, First Republic Bank, Washington Mutual, Home Savings of America, Pan American Bank, and Wells Fargo Bank. Education Public education services through high school in the City are provided by the Burlingame School District and the San Mateo Union High School District. Located within the City limits are four elementary schools, an intermediate school and Burlingame High School,which also houses the San Mateo Adult Evening High School. Post secondary public education is available at three community colleges operated by the San Mateo County Community College District. The College of San Mateo located in San Mateo, Canada College located in Redwood City and finally Skyline College located at San Bruno. Transportation North-south U.S. 101 serves the most densely populated areas along the Bayside of the San Francisco Peninsula. Interstate 280 runs near the western city limits of the City, providing an alternate major route to San Francisco and San Jose. California 82 (El Camino Real) parallels these two principal highways, serving the City's commercial corridor. CalTrain provides passenger rail service on the San Francisco Peninsula as well as connections to BART and San Francisco Airport through an intermodel station in Millbrae. City of Burlingame is one of the principal commuter points on this main line. There are two commuter stations in Burlingame for the convenience of those traveling to San Francisco or south to San Jose and intermediate points. Commuter service is also offered by the San Mateo County Transit District(SamTrans),which connects with the Santa Clara County Transit in Menlo Park, San Francisco Municipal Railway in San Francisco and BART in Colma. San Francisco International Airport is three miles northeast of the City and the Mineta San Jose Airport is approximately 30 miles south of the City. The Port of San Francisco is less than twenty miles north. San Francisco and the port are easily accessible from interstate highways. The Port of Oakland is approximately 25 miles northeast of the City. Utilities Natural gas, electric power and telephone service are provided by the Pacific Gas and Electric Company and AT&T. The City supplies water and sewer service. US WEST:260046119.5 A-20 APPENDIX B THE CITY OF BURLINGAME AUDITED FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30,2005 US WEST:260046119.5 B-1 APPENDIX C CITY OF BURLINGAME STATEMENT OF INVESTMENT POLICY JANUARY,2006 Purpose This statement contains guidelines for the prudent investment of the City's temporarily idle cash in accordance with Government Code sections 53600, et. seq. The ultimate goal is to protect the City's pooled cash while producing a reasonable return on investments. Objectives 1. Accurately monitor and forecast expenditures and revenues to insure investment of moneys to the fullest extent. 2. Invest in a range of instruments to insure diversification of the City's portfolio. 3. As a primary objective, safeguard the principal of funds. The secondary objective will be to meet the liquidity needs of the City. The third objective is to achieve a return on the investment of funds. 4. Investments will be in compliance with governing provisions of the law. Acceptable Investment Instruments Acceptable investments authorized for purchase by the finance director/treasurer are: 1. U.S. Government and Agency Securities (notes, bills or bonds of the U.S. Government and its agencies.) 2. Certificates of Deposit(deposits placed with commercial banks, savings and loan companies and/or thrift and loan companies,which meet the financial criteria established by the City.) 3. Bankers'Acceptances 4. Commercial Paper 5. Demand Deposits 6. Money Market Funds/Mutual Funds 7. Repurchase Agreements 8. Passbook Savings Accounts 9. Negotiable Certificates of Deposit (deposits with commercial banks and/or savings and loan companies which meet the financial criteria established by the City.) 10. Local Agency Investment Funds(State Pool) 11. County Investment Fund(San Mateo County Pool) 12. Guaranteed Investment Contracts(collateralized with Government Securities,physically delivered to an acceptable safekeeping account.) US WEST:260046119.5 C-1 The State pool and San Mateo County Pool invests in additonal Government Code authorized investments that are not approved for direct purchase by the finance director/treasurer. These pools shall provide a current investment policy and monthly reports for review by the finance director/treasurer. The finance director/treasurer is authorized to invest in these pools provided they reasonably appear to be in conformance with their investment policies,which are attached for reference to this policy. Repurchase Agreements-Term Limit And Safekeeping The City will require physical delivery of the securities backing the repurchase agreements to an acceptable safekeeping account of a third party in the City's name as stated in Code Section 53601(i). Repurchase agreements will be used solely as short term investments not to exceed 30 days. Maturity Limit State law requires that the maturity of any given instrument should not exceed five years unless specifically approved by City Council. Those over two years will be confined to U.S. Government and Agency securities. Restriction On Investment Policies And City Constraints Section 53600 et. seq. of the State of California Government Code outlines the collateral requirements for certain types of investments and also limits the percentage of total investments which can be placed in certain classifications. Investments must meet the time schedules as indicated by the cash flow projections of the City. Investments will ordinarily be held until maturity unless an advantageous exchange or profit can be made. In such cases,a documented analysis will be prepared and approved by the Finance Director/Treasurer. Investment decisions will not be influenced by forecasts or speculation regarding interest rates. The actual level of interest rates at any given time weighed with the soundness of the institution or investment instrument will be the primary basis of consideration. Certificates Of Deposit: Institution Financial Requirements All institutions must have a minimum of$100 million in assets. Institutions have a demonstrated history of positive earnings and must carry a minimum 3.5% equity ratio and must hold that ratio for at least one year prior to the City's investment. All institutions must be located within the State of California. For collateralized or negotiable certificates of deposit, the institution must have a minimum $1 billion in assets, in addition to meeting the above criteria. The City requires physical delivery of all negotiable securities to an acceptable safekeeping account at a designated depository. US WEST:260046119.5 C-2 Delegation Of Investment Authority Pursuant to Burlingame Municipal Code Section 3.13.040 and Government Code Section 53607,the Finance Director/Treasurer is authorized to invest and reinvest money of the City,to sell or exchange securities so purchased, and to deposit such securities for safekeeping in accordance with and subject to this investment policy. Approved by City Council on January 17,2006. Jim Nantell City Manager Jesus Nava Finance Director/Treasurer ATTEST: Doris Mortensen City Clerk US WEST:260046119.5 C-3 APPENDIX D DTC AND THE BOOK-ENTRY ONLY SYSTEM The information in this Appendix concerning The Depository Trust Company("DTC'), New York, New York, and DTC's book-entry system has been obtained from DTC and the City takes no responsibility for the completeness or accuracy thereof. The City cannot and does not give any assurances that DTC, DTC Participants or Indirect Participants will distribute to the Beneficial Holders (a) payments of interest, principal or premium, if any, with respect to the 2006 Series A Bonds, (b) certificates representing ownership interest in or other confirmation or ownership interest in the 2006 Series A Bonds, or (c) redemption or other notices sent to DTC or Cede & Co., its nominee, as the registered owner of the 2006 Series A Bonds, or that they will so do on a timely basis, or that DTC, DTC Participants or DTC Indirect Participants will act in the manner described in this Appendix. The current "Rules"applicable to DTC are on file with the Securities and Exchange Commission and the current "Procedures" of DTC to be followed in dealing with DTC Participants are on file with DTC. The DTC will act as securities depository for the 2006 Series A Bonds. The 2006 Series A Bonds will be issued as fully-registered securities registered in the name of Cede &Co. (DTC's partnership nominee)or such other name as may be requested by an authorized representative of DTC. One fully-registered security certificate will be issued for each maturity of the 2006 Series A Bonds, each in the aggregate principal amount of such maturity, and will be deposited with DTC. DTC is a limited-purpose trust company organized under the New York Banking Law, a "banking organization" within the meaning of the New York Banking Law, a member of the Federal Reserve System, a "clearing corporation" within the meaning of the New York Uniform Commercial Code, and a "clearing agency" registered pursuant to the provisions of Section 17A of the Securities Exchange Act of 1934. DTC holds and provides asset servicing for over 2 million issues of U.S. and non-U.S. equity issues, corporate and municipal debt issues, and money market instruments from over 85 countries that DTC's participants ("Direct Participants") deposit with DTC. DTC also facilitates the post-trade settlement among Direct Participants of sales and other securities transactions in deposited securities, through electronic computerized book-entry transfers and pledges between Direct Participants' accounts. This eliminates the need for physical movement of securities certificates. Direct Participants include both U.S. and non-U.S. securities brokers and dealers, banks, trust companies, clearing corporations, and certain other organizations. DTC is a wholly-owned subsidiary of The Depository Trust&Clearing Corporation("DTCC"). DTCC, in turn, is owned by a number of Direct Participants of DTC and Members of the National Securities Clearing Corporation, Government Securities Clearing Corporation, MBS Clearing Corporation, and Emerging Markets Clearing Corporation, (respectively, "NSCC," "GSCC," "MBSCC," and "EMCC," also subsidiaries of DTCC), as well as by the New York Stock Exchange, Inc.,the American Stock Exchange LLC, and the National Association of Securities Dealers,Inc.Access to the DTC system is also available to others such as both U.S. and non-U.S. securities brokers and dealers, banks, trust companies, and clearing corporations that clear through or maintain a custodial relationship with a Direct Participant, either directly or indirectly ("Indirect Participants"). DTC has Standard & Poor's highest rating:AAA.The DTC Rules applicable to its Participants are on file with the Securities and Exchange Commission. More information about DTC can be found at www.dtcc.com. Purchases of the 2006 Series A Bonds under the DTC system must be made by or through Direct Participants, which will receive a credit for the 2006 Series A Bonds on DTC's records. The ownership interest of each actual purchaser of each Security (`Beneficial Holder") is in turn to be recorded on the Direct and Indirect Participants' records. Beneficial Holders will not receive written confirmation from DTC of their purchase. Beneficial Holders are, however,expected to receive written confirmations providing details of the transaction,as well as periodic statements of their holdings, from the Direct or Indirect Participant through which the Beneficial Holder entered into the transaction. Transfers of ownership interests in the 2006 Series A Bonds are to be accomplished by entries made on the books of Direct and Indirect Participants acting on behalf of Beneficial Holders. Beneficial Holders will not receive certificates representing their ownership interests in the 2006 Series A Bonds, except in the event that use of the book-entry system for the 2006 Series A Bonds is discontinued. To facilitate subsequent transfers, all 2006 Series A Bonds deposited by Direct Participants with DTC are registered in the name of DTC's partnership nominee, Cede & Co., or such other name as may be requested by an authorized representative of DTC. The deposit of the 2006 Series A Bonds with DTC and their registration in the US WEST:260046119.5 D-1 name of Cede & Co. or such other DTC nominee do not effect any change in beneficial ownership. DTC has no knowledge of the actual Beneficial Holders of the 2006 Series A Bonds; DTC's records reflect only the identity of the Direct Participants to whose accounts such 2006 Series A Bonds are credited, which may or may not be the Beneficial Holders. The Direct and Indirect Participants will remain responsible for keeping account of their holdings on behalf of their customers. Conveyance of notices and other communications by DTC to Direct Participants, by Direct Participants to Indirect Participants, and by Direct Participants and Indirect Participants to Beneficial Holders will be governed by arrangements among them, subject to any statutory or regulatory requirements as may be in effect from time to time. Beneficial Holders of the 2006 Series A Bonds may wish to take certain steps to augment the transmission to them of notices of significant events with respect to the 2006 Series A Bonds, such as redemptions, tenders, defaults, and proposed amendments to the Security documents. For example, Beneficial Holders of the 2006 Series A Bonds may wish to ascertain that the nominee holding the 2006 Series A Bonds for their benefit has agreed to obtain and transmit notices to Beneficial Holders. In the alternative,Beneficial Holders may wish to provide their names and addresses to the registrar and request that copies of notices be provided directly to them. Redemption notices shall be sent to DTC. The conveyance of notices and other communications by DTC to DTC Participants, by DTC Participants to Indirect Participants and by DTC Participants and Indirect Participants to Beneficial Holders will be governed by arrangements among them, subject to any statutory or regulatory requirements as may be in effect from time to time. Any failure of DTC to advise any DTC Participant, or of any DTC Participant or Indirect Participant to notify a Beneficial Holder, of any such notice and its content or effect will not affect the validity of the redemption of the 2006 Series A Bonds called for redemption or of any other action premised on such notice. Redemption of portions of the 2006 Series A Bonds by the City will reduce the outstanding principal amount of 2006 Series A Bonds held by DTC. In such event, DTC will implement, through its book-entry system, a redemption by lot of interests in the 2006 Series A Bonds held for the account of DTC Participants in accordance with its own rules or other agreements with DTC Participants and then DTC Participants and Indirect Participants will implement a redemption of the 2006 Series A Bonds for the Beneficial Holders. Any such selection of 2006 Series A Bonds to be redeemed will not be governed by the Trust Agreement and will not be conducted by the City or the Trustee. Neither DTC nor Cede & Co. (nor any other DTC nominee) will consent or vote with respect to the 2006 Series A Bonds unless authorized by a Direct Participant in accordance with DTC's Procedures. Under its usual procedures,DTC mails an Omnibus Proxy to the issuer as soon as possible after the record date. The Omnibus Proxy assigns Cede & Co.'s consenting or voting rights to those Direct Participants to whose accounts the 2006 Series A Bonds are credited on the record date(identified in a listing attached to the Omnibus Proxy). Payments of principal of, premium, if any, and interest evidenced by the 2006 Series A Bonds will be made to Cede&Co.,or such other nominee as may be requested by an authorized representative of DTC.DTC's practice is to credit Direct Participants' accounts upon DTC's receipt of funds and corresponding detail information from the City or the Trustee, on payable date in accordance with their respective holdings shown on DTC's records. Payments by Participants to Beneficial Holders will be governed by standing instructions and customary practices,as is the case with securities held for the accounts of customers in bearer form or registered in "street name," and will be the responsibility of such Participant and not of DTC (nor its nominee), the Trustee, or the City, subject to any statutory or regulatory requirements as may be in effect from time to time. Payment of principal of, premium, if any, and interest evidenced by the 2006 Series A Bonds to Cede & Co. (or such other nominee as may be requested by an authorized representative of DTC) is the responsibility of the City or the Trustee, disbursement of such payments to Direct Participants will be the responsibility of DTC, and disbursement of such payments to the Beneficial Holders will be the responsibility of Direct and Indirect Participants. NEITHER THE CITY NOR THE TRUSTEE WILL HAVE ANY RESPONSIBILITY OR OBLIGATION TO DTC PARTICIPANTS, INDIRECT PARTICIPANTS OR BENEFICIAL HOLDERS WITH RESPECT TO THE PAYMENTS OR THE PROVIDING OF NOTICE TO DTC PARTICIPANTS, INDIRECT PARTICIPANTS OR BENEFICIAL HOLDERS OR THE SELECTION OF 2006 SERIES A BONDS FOR PREPAYMENT. US WEST:260046119.5 D-2 None of the City or the Trustee can give any assurances that DTC,DTC Participants, Indirect Participants or others will distribute payments of principal of,premium, if any, and interest on the 2006 Series A Bonds paid to DTC or its nominee, as the registered Holder,or any redemption or other notice,to the Beneficial Holders or that they will do so on a timely basis or that DTC will serve and act in a manner described in this Official Statement. DTC may discontinue providing its services as depository with respect to the 2006 Series A Bonds at any time by giving reasonable notice to the City or the Trustee. Under such circumstances, in the event that a successor depository is not obtained,security certificates are required to be printed and delivered. The City may decide to discontinue use of the system of book-entry transfers through DTC (or a successor securities depository). In that event,bond certificates will be printed and delivered. In the event that the book-entry system is discontinued as described above, the requirements of the Trust Agreement will apply. The foregoing information concerning DTC concerning and DTC's book-entry system has been provided by DTC,and none of the City or the Trustee take any responsibility for the accuracy thereof. Neither the City nor the Underwriter can and do not give any assurances that DTC,the Participants or others will distribute payments of principal, interest or premium, if any, evidenced by the 2006 Series A Bonds paid to DTC or its nominee as the registered owner, or will distribute any redemption notices or other notices, to the Beneficial Holders, or that they will do so on a timely basis or will serve and act in the manner described in this Official Statement. Neither of the City nor the Underwriter are responsible or liable for the failure of DTC or any Participant to make any payment or give any notice to a Beneficial Holder with respect to the 2006 Series A Bonds or an error or delay relating thereto. GLOBAL CLEARANCE PROCEDURES The information that follows is based solely on information provided by the Euroclear Operator. No representation is made as to the completeness or the accuracy of such information or as to the absence of material adverse changes in such information subsequent to the date hereof. Clearstream International and Clearstream Clearstream International is the product of the merger of Deutsche Borse and Cedel International, the European international clearing depository founded in 1970, and a number of its subsidiaries including Cedelbank. Clearstream International is registered in Luxembourg and has two subsidiaries: Clearstream Banking and Clearstream Services. Clearstream Banking ("Clearstream") contains the core clearing and settlement business and consists of Clearstream Banking Luxemborg,Clearstream Banking Frankfurt and six regional offices in Dubai, Hong Kong, London, New York, Sao Paulo and Tokyo. Clearstream holds securities for its participating organizations ("Clearstream Participants") and facilitates the clearance and settlement of securities transactions between Clearstream Participants through electronic book-entry changes in accounts of Clearstream Participants, thereby eliminating the need for physical movement of certificates. As a professional depository, Clearstream is subject to regulation by the Luxembourg Monetary Institute. Indirect access to Clearstream is also available to others, such as banks,brokers,dealers and trust companies that clear through or maintain a custodial relationship with a Clearstream Participant,either directly or indirectly. Euroclear System The Euroclear System ("Euroclear") was created in 1968 to hold securities for its participants and to clear and settle transactions between its participants through simultaneous electronic book-entry delivery against payment, thereby eliminating the need for physical movement of certificates and any risk from lack of simultaneous transfers of securities and cash. The Euroclear System is owned Euroclear plc and operated through a license agreement by Euroclear Bank S.A./N.V., a bank incorporated under the laws of the Kingdom of Belgium (the "Euroclear Operator"). US WEST:260046119.5 D-3 The Euroclear Operator holds securities and book-entry interests in securities for participating organizations and facilitates the clearance and settlement of securities transactions between Euroclear Participants, and between Euroclear Participants and Participants of certain other securities intermediaries through electronic book-entry changes in accounts of such Participants or other securities intermediaries. The Euroclear Operator provides Euroclear Participants, among other things, with safekeeping, administration,clearance and settlement, securities lending and borrowing,and related services. Non-Participants of Euroclear may hold and transfer book-entry interests in the Securities through accounts with a direct Participant of Euroclear or any other securities intermediary that holds a book-entry interest in the Securities through one or more securities intermediaries standing between such other securities intermediary and the Euroclear Operator The Euroclear Operator is regulated and examined by the Belgian Banking and Finance Commission and the National Bank of Belgium. Securities clearance accounts and cash accounts with the Euroclear Operator are governed by the Terms and Conditions Governing Use of Euroclear and the related Operating Procedures of the Euroclear System,and applicable Belgian law(collectively, the "Terms and Conditions"). The Terms and Conditions govern transfers of securities and cash within Euroclear, withdrawals of securities and cash from Euroclear, and receipts of payments with respect to securities in Euroclear. All securities in Euroclear are held on a fungible basis without attribution of specific certificates to specific securities clearance accounts. The Euroclear Operator acts under the Terms and Conditions only on behalf of Euroclear participants and has no record of or relationship with Persons holding through Euroclear participants. Distribution of the 2006 Series A Bonds through Clearstream or Euroclear Distributions with respect to the 2006 Series A Bonds held through Clearstream or Euroclear are to be credited to the cash accounts of Clearstream Participants or Euroclear Participants, as applicable, in accordance with the relevant system's rules and procedures, to the extent received by its Depository (as defined below). Such distributions will be subject to tax reporting in accordance with relevant United States tax laws and regulations. Clearstream or the Euroclear Operator, as the case may be, will take any other action permitted to be taken by an Owner of the 2006 Series A Bonds under the Trust Agreement on behalf of a Clearstream Participant or Euroclear Participant only in accordance with the relevant rules and procedures and subject to the relevant Depositary's ability to effect such actions on its behalf through DTC. Owners of the 2006 Series A Bonds may hold their 2006 Series A Bonds through DTC (in the United States) or Clearstream or Euroclear (in Europe) if they are participants of such systems,or indirectly through organizations which are participants in such systems. The 2006 Series A Bonds will initially be registered in the name of Cede & Co., the nominee of DTC. Clearstream and Euroclear may hold omnibus positions on behalf of their participants through customers' securities accounts in Clearstream's and Euroclear's names on the books of their respective depositaries which in turn are to hold such positions in customers' securities accounts in the depositaries' names on the books of DTC. Citibank,N.A. acts as depositary for Clearstream and the Euroclear Operator acts as depositary for Euroclear (in such capacities, individually,the"Depositary"and,collectively,the"Depositaries"). Transfers of the 2006 Series A Bonds between DTC Participants are to occur in accordance with DTC Rules. Transfers between Clearstream Participants and Euroclear Participants are to occur in accordance with their respective rules and operating procedures. Because of time-zone differences, credits of securities received in Clearstream or Euroclear as a result of a transaction with a Participant may be made during subsequent securities settlement processing and dated the business day following the DTC settlement date. Such credits or any transactions in such securities settled during such processing would be reported to the relevant Euroclear or Clearstream Participants on such business day. Cash received in Clearstream or Euroclear as a result of sales of securities by or through a Clearstream Participant or Euroclear Participant to a Participant are to be received with value on the DTC settlement date but will be available in the relevant Clearstream or Euroclear cash account only as of the business day following settlements in DTC. US WEST:260046119.5 D-4 Cross-market transfers between persons holding directly or indirectly through DTC, on the one hand, and directly or indirectly through Clearstream Participants or Euroclear Participants, on the other, are to be effected in DTC in accordance with DTC Rules on behalf of the relevant European international clearing system by its Depositary; however, such cross-market transactions require delivery of instructions to the relevant European international clearing system by the counterparty in such system in accordance with its rules and procedures and within its established deadlines (European time). The relevant European international clearing system if the transaction meets its settlement requirements, is to deliver instructions to its Depositary to take action to effect final settlement on its behalf by delivering or receiving securities in DTC,and making or receiving payment in accordance with normal procedures for same-day funds settlement applicable to DTC. Clearstream Participants and Euroclear Participants may not deliver instructions to the Depositaries. THE CITY AND THE TRUSTEE CANNOT AND DO NOT GIVE ANY ASSURANCES THAT DTC, DIRECT PARTICIPANTS OR INDIRECT PARTICIPANTS OF DTC, CLEARSTREAM, CLEARSTREAM PARTICIPANTS, EUROCLEAR OR EUROCLEAR PARTICIPANTS WILL DISTRIBUTE TO THE BENEFICIAL OWNERS OF THE 2006 SERIES A BONDS (1)PAYMENTS OF PRINCIPAL OF OR INTEREST ON THE 2006 SERIES A BONDS (2)CONFIRMATIONS OF THEIR OWNERSHIP INTERESTS IN THE 2006 SERIES A BONDS OR(3)OTHER NOTICES SENT TO DTC OR CEDE&CO.,ITS PARTNERSHIP NOMINEE, AS THE REGISTERED OWNER OF THE 2006 SERIES A BONDS, OR THAT THEY WILL DO SO ON A TIMELY BASIS,OR THAT DTC,DIRECT PARTICIPANTS OR INDIRECT PARTICIPANTS,CLEARSTREAM, CLEARSTREAM PARTICIPANTS,EUROCLEAR OR EUROCLEAR PARTICIPANTS WILL SERVE AND ACT IN THE MANNER DESCRIBED IN THIS OFFICIAL STATEMENT. NEITHER THE CITY NOR THE TRUSTEE WILL HAVE ANY RESPONSIBILITY OR OBLIGATIONS TO DTC, THE DIRECT PARTICIPANTS, THE INDIRECT PARTICIPANTS OF DTC, CLEARSTREAM, CLEARSTREAM PARTICIPANTS, EUROCLEAR, EUROCLEAR PARTICIPANTS OR THE BENEFICIAL OWNERS WITH RESPECT TO (1) THE ACCURACY OF ANY RECORDS MAINTAINED BY DTC OR ANY DIRECT PARTICIPANTS OR INDIRECT PARTICIPANTS OF DTC, CLEARSTREAM, CLEARSTREAM PARTICIPANTS, EUROCLEAR OR EUROCLEAR PARTICIPANTS; (2) THE PAYMENT BY DTC OR ANY DIRECT PARTICIPANTS OR INDIRECT PARTICIPANTS OF DTC, CLEARSTREAM, CLEARSTREAM PARTICIPANTS, EUROCLEAR OR EUROCLEAR PARTICIPANTS OF ANY AMOUNT DUE TO ANY BENEFICIAL OWNER IN RESPECT OF THE PRINCIPAL AMOUNT OF OR INTEREST ON 2006 SERIES A BONDS;(3)THE DELIVERY BY DTC OR ANY DIRECT PARTICIPANTS OR INDIRECT PARTICIPANTS OF DTC, CLEARSTREAM, CLEARSTREAM PARTICIPANTS, EUROCLEAR OR EUROCLEAR PARTICIPANTS OF ANY NOTICE TO ANY BENEFICIAL OWNER THAT IS REQUIRED OR PERMITTED TO BE GIVEN TO OWNERS UNDER THE TERMS OF THE TRUST AGREEMENT; OR(4)ANY CONSENT GIVEN OR OTHER ACTION TAKEN BY DTC AS OWNER OF THE 2006 SERIES A BONDS. US WEST:260046119.5 D-5 APPENDIX E SUMMARY OF THE TRUST AGREEMENT US WEST:260046119.5 E-1 APPENDIX F PROPOSED FORM OF OPINION OF BOND COUNSEL US WEST:260046119.5 F-1 APPENDIX G SPECIMEN FINANCIAL GUARANTY INSURANCE POLICY US WEST:260046119.5 G-1 APPENDIX H FORM OF CONTINUING DISCLOSURE CERTIFICATE This Continuing Disclosure Certificate(the"Disclosure Certificate")is executed and delivered by the City of Burlingame, California (herein the "City") in connection with the issuance of its Taxable Pension Obligation Bonds, 2006 Series A (the "2006 Series A Bonds"). The Bonds are being issued pursuant to a Trust Agreement, dated as of September 1, 2006 (the "Trust Agreement"), between the City and The Bank of New York Trust Company,N.A., as trustee(the"Trustee"). The City covenants and agrees as follows: SECTION 1. Purpose of this Disclosure Certificate. This Disclosure Certificate is being executed and delivered by the City for the benefit of the Owners and Beneficial Owners of the 2006 Series A Bonds and in order to assist the Participating Underwriters in complying with the Rule (as hereinafter defined). SECTION 2. Definitions. The following capitalized terms shall have the following meanings: "Annual Report" shall mean any Annual Report provided by the City pursuant to, and as described in, Sections 3 and 4 of this Disclosure Certificate. "Beneficial Owner" shall mean any person which has the power, directly or indirectly, to vote or consent with respect to, or to dispose of ownership of, any 2006 Series A Bonds (including persons holding 2006 Series A Bonds through nominees,depositories or other intermediaries). "Dissemination Agent" shall mean the City, or any successor Dissemination Agent designated in writing by the City and which has filed with the City a written acceptance of such designation. "Listed Events"shall mean any of the events listed in Section 5(a)of this Disclosure Certificate. "National Repository" shall mean any Nationally Recognized Municipal Securities Information Repository for purposes of the Rule. The National Repositories currently approved by the Securities and Exchange Commission are set forth in Exhibit B. "Participating Underwriter" shall mean any of the original underwriters of the 2006 Series A Bonds required to comply with the Rule in connection with offering of the 2006 Series A Bonds. "Repository"shall mean each National Repository and the State Repository. "Rule" shall mean Rule 15c2-12(b)(5) adopted by the Securities and Exchange Commission under the Securities Exchange Act of 1934,as the same may be amended from time to time. "State Repository" shall mean any public or private repository or entity designated by the State as the state repository for the purpose of the Rule and recognized as such by the Securities and Exchange Commission. SECTION 3. Provision of Annual Reports. (a) The City shall, or shall cause the Dissemination Agent to, not later than seven months after the end of the City's Fiscal Year(presently June 30),commencing with the report for Fiscal Year 2005-2006,provide to each Repository an Annual Report which is consistent with the requirements of Section 4 of this Disclosure Certificate. The Annual Report may be submitted as a single document or as separate documents comprising a package, and may cross-reference other information as provided in Section 4 of this Disclosure Certificate; provided that the audited financial statements of the System may be submitted separately from the balance of the Annual Report and later than the date required above for the filing of the Annual Report if they are not available by that date. If the City's Fiscal Year changes,it shall give notice of such change in the same manner as for a Listed Event under Section 5(c). (b) Not later than fifteen (15) Business Days prior to the date set forth in paragraph (a) above, the City shall provide the Annual Report to the Dissemination Agent (if other than the City). If the City is unable to provide US WEST:260046119.5 II-I to the Repositories an Annual Report by the date required in subsection (a), the City shall send a notice to the Municipal Securities Rulemaking Board and the State Repository, if any, in substantially the form attached to this Disclosure Certificate as Exhibit A. (c) The Dissemination Agent shall: (i) determine each year prior to the date for providing the Annual Report the name and address of each National Repository and the State Repository,if any; and (ii) (if the Dissemination Agent is other than the City), file a report with the City certifying that the Annual Report has been provided pursuant to this Disclosure Certificate, stating the date it was provided and listing all the Repositories to which it was provided. SECTION 4. Content of Annual Reports. The City's Annual Report shall contain or include by reference the following: 1. The audited financial statements of the City for the prior Fiscal Year, prepared in accordance with generally accepted accounting principles as promulgated to apply to governmental entities from time to time by the Governmental Accounting Standards Board. If the audited financial statements of the City are not available by the time the Annual Report is required to be filed pursuant to Section 3(a), the Annual Report shall contain unaudited financial statements in a format similar to the financial statements contained in the final Official Statement, and the audited financial statements shall be filed in the same manner as the Annual Report when they become available. [Remaining items to come] The City has not undertaken in this Disclosure Certificate to provide all information an investor may want to have in making decisions to hold, sell or buy 2006 Series A Bonds but only to provide the specific information listed above. Any or all of the items listed above may be included by specific reference to other documents, including official statements of debt issues of the City or related public entities, which have been submitted to each of the Repositories or the Securities and Exchange Commission. If the document included by reference is a final official statement, it must be available from the Municipal Securities Rulemaking Board. The City shall clearly identify each such other document so included by reference. SECTION 5. Reporting of Significant Events. (a) Pursuant to the provisions of this Section 5, the City shall give, or cause to be given, notice of the occurrence of any of the following events(a"Listed Event")with respect to the 2006 Series A Bonds,if material: 1. principal and interest payment delinquencies; 2. non-payment related defaults; 3. modifications to rights of holders of the 2006 Series A Bonds; 4. optional,contingent or unscheduled calls; 5. defeasances; 6. rating changes; 7. adverse tax opinions or events affecting the tax-exempt status of the 2006 Series A Bonds; 8. unscheduled draws on the reserves reflecting financial difficulties; US WEST:260046119.5 H-2 9. unscheduled draws on the credit enhancements reflecting financial difficulties; 10. substitution of the credit or liquidity providers or their failure to perform; 11. release, substitution or sale of property securing repayment of the 2006 Series A Bonds. (b) Whenever the City obtains knowledge of the occurrence of a Listed Event, the City shall as soon as possible determine if such event would be material under applicable federal securities laws. (c) If the City determines that knowledge of the occurrence of a Listed Event would be material under applicable federal securities laws, the City shall promptly file a notice of such occurrence with the Municipal Securities Rulemaking Board and the State Repository. Notwithstanding the foregoing, notice of Listed Events described in subsections (a)(4) and (5)need not be given under this subsection any earlier than the notice (if any) of the underlying event is given to Owners of affected 2006 Series A Bonds pursuant to the Trust Agreement. SECTION 6. Termination of Reporting Obli ag tion. The City's obligations under this Disclosure Certificate shall terminate upon the legal defeasance,prior redemption or payment in full of all of the 2006 Series A Bonds. If such termination occurs prior to the final maturity date of the 2006 Series A Bonds, the City shall give notice of such termination in the same manner as for a Listed Event under Section 5(c). SECTION 7. Dissemination Agent. The City may, from time to time, appoint or engage a Dissemination Agent to assist it in carrying out its obligations under this Disclosure Certificate, and may discharge any such Agent, with or without appointing a successor Dissemination Agent. The Dissemination Agent shall not be responsible in any manner for the content of any notice or report prepared by the City pursuant to this Disclosure Certificate. SECTION 8. Amendment; Waiver. Notwithstanding any other provision of this Disclosure Certificate, the City may amend this Disclosure Certificate, and any provision of this Disclosure Certificate may be waived, provided that the following conditions are satisfied: (a) If the amendment or waiver relates to the provisions of Sections 3(a),4,or 5(a),it may only be made in connection with a change in circumstances that arises from a change in legal requirements, change in law, or change in the identity, nature or status of an obligated person with respect to the 2006 Series A Bonds, or the type of business conducted; (b) The undertaking,as amended or taking into account such waiver,would,in the opinion of nationally recognized bond counsel,have complied with the requirements of the Rule at the time of the original issuance of the 2006 Series A Bonds, after taking into account any amendments or interpretations of the Rule, as well as any change in circumstances;and (c) The amendment or waiver either (i) is approved by the Owners of the 2006 Series A Bonds in the same manner as provided in the Trust Agreement for amendments to the Trust Agreement with the consent of Owners, or(ii) does not, in the opinion of nationally recognized bond counsel,materially impair the interests of the Owners or Beneficial Owners of the 2006 Series A Bonds. In the event of any amendment or waiver of a provision of this Disclosure Certificate,the City shall describe such amendment in the next Annual Report, and shall include,as applicable, a narrative explanation of the reason for the amendment or waiver and its impact on the type (or in the case of a change of accounting principles, on the presentation) of financial information or operating data being presented by the City. In addition, if the amendment relates to the accounting principles to be followed in preparing financial statements,(i)notice of such change shall be given in the same manner as for a Listed Event under Section 5(c), and (ii) the Annual Report for the year in which the change is made should present a comparison(in narrative form and also, if feasible, in quantitative form)between the financial statements as prepared on the basis of the new accounting principles and those prepared on the basis of the former accounting principles. SECTION 9. Additional Information. Nothing in this Disclosure Certificate shall be deemed to prevent the City from disseminating any other information, using the means of dissemination set forth in this Disclosure US WEST:260046119.5 II-3 Certificate or any other means of communication, or including any other information in any Annual Report or notice of occurrence of a Listed Event, in addition to that which is required by this Disclosure Certificate. If the City chooses to include any information in any Annual Report or notice of occurrence of a Listed Event in addition to that which is specifically required by this Disclosure Certificate, the City shall have no obligation under this Disclosure Certificate to update such information or include it in any future Annual Report or notice of occurrence of a Listed Event. SECTION 10. Default. In the event of a failure of the City to comply with any provision of this Disclosure Certificate, any Owner or Beneficial Owner of 2006 Series A Bonds may take such actions as may be necessary and appropriate, including seeking mandate or specific performance by court order, to cause the City to comply with its obligations under this Disclosure Certificate. A default under this Disclosure Certificate shall not be deemed an Event of Default under the Trust Agreement,and the sole remedy under this Disclosure Certificate in the event of any failure of the City to comply with this Disclosure Certificate shall be an action to compel performance. SECTION 11. Duties, Immunities and Liabilities of Dissemination Agent. A Dissemination Agent shall have only such duties as are specifically set forth in this Disclosure Certificate, and the City agrees to indemnify and save such Dissemination Agent, its officers, directors, employees and agents,harmless against any loss, expense and liabilities which it may incur arising out of or in the exercise or performance of its powers and duties hereunder, including the costs and expenses (including attorneys fees)of defending against any claim of liability,but excluding liabilities due to the Dissemination Agent's negligence or willful misconduct. The obligations of the City under this Section shall survive resignation or removal of the Dissemination Agent and payment of the 2006 Series A Bonds. US WEST:260046119.5 II-4 SECTION 12. Beneficiaries. This Disclosure Certificate shall inure solely to the benefit of the City, the Dissemination Agent,if any, the Participating Underwriters and Owners and Beneficial Owners from time to time of the 2006 Series A Bonds,and shall create no rights in any other person or entity. Date: ,2006 CITY OF BURLINGAME,CALIFORNIA By City Manager US WEST:260046119.5 H-5 EXHIBIT A NOTICE TO REPOSITORIES OF FAILURE TO FILE ANNUAL REPORT Name of Obligated Person: City of Burlingame,California Name of Bond Issue: City of Burlingame Taxable Pension Obligation Bonds, 2006 Series A Date of Issuance: 12006 NOTICE IS HEREBY GIVEN that the City has not provided an Annual Report with respect to the above- named Bonds as required by Section 8.09 of the Facilities Sublease, dated as of August 1, 2004, between the Burlingame Financing Authority and the City. [The City anticipates that the Annual Report will be filed by Date: CITY OF BURLINGAME,CALIFORNIA By EXHIBIT A-1 US WEST:260046119.5 EXHIBIT B Nationally Recognized Municipal Securities Information Repositories An updated list of Nationally Recognized Municipal Securities Information Repositories approved by the Securities and Exchange Commission may be found at the following internet address: http://www.sec.gov/consumer/NRMSIR.htm EXHIBIT B-1 US WEST:260046119.5 1 € ' r August 31,2006 Jesus Nava Finance Director/Treasurer City of Burlingame 501 Primrose Road Burlingame, CA 94010-3997 Re: City of Burlingame CalPERS Projections Dear Mr.Nava: This letter provides estimated unfunded liabilities at September 21,2006 for the City of Burlingame's CalPERS Miscellaneous and Safety plans. Background The most recent CalPERS actuarial reports provide unfunded liabilities as of the June 30,2004 valuation date and projections as of June 30,2005 and 2006. These projections do not reflect changes since June 30,2004 including(1)actual investment performance(2)City's adoption of the 3.0%@ 50 benefit for Safety Police members and(3)golden handshake agreements. As requested,we have projected September 21,2006 unfunded liabilities based on the actual 12.3%investment return for 2004/05, 11.9%for 2005/06 and CalPERS 7.75%assumed annual rate of return for July 1,2006 through September 21,2006. Our projections also include liability increases for the 3.0%@ 50 amendment and the golden handshake. Miscellaneous Plan Projections On a market value basis,the estimated September 21,2006 unfunded actuarial liability is $6.4 million. On an actuarial asset value basis,the estimated September 21,2006 unfunded actuarial liability is$9.9 million. ---------------------------(amounts in$millions)---------------------- =CaIPERS 2004 Actuarial Report June 30,2004 June 30,2006 Sept.21,2006 Actual Projection Projection ■ Actuarial Liability $ 64.1 $ 71.9 $ 73.1 ■ Market Value of Assets 53.5 n/a 66.7 ■ Actuarial Value of Assets 54.3 61.7 63.2 ■ Unfunded Liability/ (Excess Assets) • Market Value Basis 10.6 n/a 6.4 • Actuarial Value Basis 9.8 10.3 9.9 4"t' �orcl.i iiicSit,, -,1 `<I-H52 1r1G1ZY1: •ZYCb.'a�,•w3..ittlasr Jesus Nava August 31,2006 3 Page 2 Safety Plan Projections Ca1PERS implemented pooling effective with the June 30,2003 actuarial valuation for the City's Safety plans. The estimated unfunded liability as of September 21,2006 for Fire Safety is $10.8 million and for Police Safety is $9.8 million,representing the September 21,2006 balance of the City's Side Fund. Comments Please note the actuarial liabilities are projected assuming no gains or losses due to participant experience (mortality,turnover,pay increases,etc)since June 30,2004. Note that this means the projected liabilities are based on the same actuarial assumptions used in the June 30,2004 valuation. * * * * * Actuarial Certification * * * * * The above September 21,2006 funded status calculations are projections of amounts provided in the City's June 30,2004 Ca1PERS actuarial valuation report. As an Enrolled Actuary under ERISA,an Associate in the Society of Actuaries,a Fellow in the Conference of Consulting Actuaries and a member of the American Academy of Actuaries, I certify these projections are consistent with generally accepted actuarial principles and practices. However,while I have reviewed CalPERS information for reasonableness, I do not make any representation on the accuracy of the Ca1PERS reports. Based on the foregoing assumptions,we certify: ■ the City's Miscellaneous plan September 21,2006 unfunded actuarial liability,is $6.4 million on a market asset value basis,and$9.9 million on a actuarial asset value basis. ■ the City's Safety plans September 21,2006 unfunded actuarial liability,is $10.8 million for Fire Safety,and$9.8 million for Police Safety. Please call me(650/377-1601)with any questions about this information. Sincerely, �t �. &ta John E.Bartel President c: Doug Pryor Bianca Lin OAClients\City of Burlingame\CalPERS\6-30-04\Burlingame POB letter 06-08-3l.doc I1 l 1it�rel:A.c��?�c,.`.i;te n • art 1att-� ( . ifz ua 9 t102 main.- lGtlf_) kol-! OZy/eb., itti-.coln �r Burlingame, California Primary Credit Analysts Paul Dyson San Francisco Credit Profile (1)415-371-5079 paul_dyson@ US$31.66 mil Pension oblig bnds AA standardandpoors.com Sale date:19-SEP-2006 SecondaryCreditAnalysts AFFIRMED Parry Young New York Burlingame,California (1)212-438-2120 parryyouungO $0,000 Burlingame GO AA+ standardandpoors.com Burlingame,California Burlingame Fincg Auth,California $17.665 mil.Burlingame Fin Auth(Burlingame)Ise rev bnds(Wasterwtr Treatment Proj)ser 1998 AA $15.000 mil.Burlingame Fincg Auth Ise rev bnds(Corp Yard Proj)ser 2001 AA Burlingame Fincg Auth,California $6.705 mil.Burlingame Fincg Auth(Burlingame)Ise rev rfdg bnds ser 2004(XL CAP) AAA/AA(SPUR) OUTLOOK. STABLE Rationale Standard&Poor's Ratings Services assigned its`AA'rating to the City of Burlingame,Calif's$31.7 million series 2006A taxable pension obligation bonds(POBs)and affirmed its`AA'raring on all other city appropriation-backed debt.In addition,the city's`AA+'issuer credit rating was affirmed. The ratings reflect the following credit strengths: ■ Strong and diverse local economy with easy access to the greater San Francisco Bay Area,with a convenient location near the San Francisco Airport; ■ Very high wealth and income indicators; ■ Strong and consistent financial performance and reserves,including a diverse revenue stream;and RatingsDirect ' Moderate debt offset by manageable capital requirements. Publication Date A somewhat offsetting credit weakness includes moderate general fund reliance on Sept.5,2006 historically more volatile sales and hotel taxes. r > 3 Burlingame,California The POBs are secured by the city's absolute and unconditional obligation to make debt service payments and are being issued to fund the entire portion of the city's unfunded actuarial accrued liability (UAAL)to the California Public Employees Retirement System(PERS). This is expected to result in present value savings of over$3 million. The outstanding appropriation secured debt is backed by the city's covenant to budget and appropriate lease payments. Outlook The stable outlook reflects our expectation that the city will maintain reserves at or above current levels consistent with the current raring.In addition,the outlook reflects the city's diverse revenue streams,which provide a buffer to economic downturns,and continued strong growth in property values. Diverse Revenues And High Incomes Bolster Local Economy Burlingame has a population of 28,280 and is located on the San Francisco Peninsula,about 10 miles south of San Francisco.Encompassing 5.5 square miles,the city is fully built out.Located on two major highway routes between San Francisco and Silicon Valley,and with easy public transportation access,Burlingame residents have good commuter options to major regional employment centers.The Bay Area Rapid Transit's(BART) recent expansion to San Francisco International Airport further enhances Burlingame's transportation options. Due largely to Burlingame's proximity to the airport and convenient transportation access,the city has a strong hospitality presence,with 12 major hotels and 3,771 hotel rooms.Burlingame is also home to some high-tech firms and light manufacturing.Major employers in the city include Mills Peninsula Health Services(1,485 employees),San Francisco Airport Marriott(550),American Medical Response(300),Burlingame Healthcare Center(300),and security firm Contemporary Services Corp.(300). The community has an established base of specialty retail stores that sets it apart as a destination for shoppers. Per capita retail sales are high at more than three rimes the national average. Wealth levels are very high,with median household and per capita income levels at 1501/o and 193%of the U.S.averages, respectively.The median price of a single-family home in Burlingame was$1.4 million as of July 2006,up from$1.1 million as of December 2003,with per capita market value a high$212,164 in 2007,up from $181,000 in 2005. Overall assessed valuation(AV)increased to$6 billion in fiscal 2007 from$4.4 billion in 2002,an average annual increase of 6.2%,up a gross 35%.About 9%of the tax base is concentrated among the 10 leading property taxpayers,with the leading ten sales taxpayers representing 38%of total sales taxes. Transient occupancy(hotel)tax(TOTs)are very concentrated with the leading 10 hotels(out of just 12) representing 97%of the total.At 3.1%unemployment as of 2005,the local rate was well below the state average of 5.3%and national average of 5.2%. Complementing the strength of the city's economic base is a diverse general fund revenue stream of property taxes(27%),sales tax(24%),and transient occupancy(hotel)tax(23%).The hotel tax enables the city to tap the large number of travelers using San Francisco International Airport. However,general fund revenues softened considerably since hitting a high of$41.3 million in 2001,declining to$33.3 million in 2002 and $31.2 million in 2003,but have begun to rebound,reaching$32.9 million in 2004 and$34.8 million in 2005. Estimates for 2006 and 2007 general fiord revenues show additional increases to$38.6 million and$39.1 million.The recent national and local economic slowdown hit the city's TOT revenues particularly hard,falling more than 50%to$6.7 million,or 25%of revenues in 2003,from$13.8 million,or 33%of revenues,in fiscal 2001.TOT taxes for 2006 are estimated at$9.3 million,up 15%over 2005 levels. Sales taxes show 5%growth Standard&Poor's I ANALYSIS 2 r Burlingame,California in 2006,with property taxes expected to grow 11%. Property taxes have been the most resilient general fund tax revenue stream in recent years as property valuations continue their strong growth. Finances Strong And Stable As a result of the economic softness,the city's general fund declined to$8.7 million,or 24%of expenditures,in fiscal 2003,from$19.2 million,or 52%of expenditures,in fiscal 2001.Virtually all of the general fund balance is unreserved.However,since fiscal 2003,general fund reserves have been quite stable,ranging between$8.6 and$9.1 million or between 23%-26%of expenditures. Audited results for fiscal 2005 indicated a$360,000 general fund surplus,with a slight$104,000 surplus expected for fiscal 2006. As of 2005,the unreserved fund balance totaled$9.0 million or 26%of expenditures. The city expects fiscal 2007 to be virtually balanced. Of the$9.0 million fiscal 2005 general fund balance,$4.5 million represents the unreserved portion designated for contingencies,catastrophes,or economic stability,with another$2.8 million unreserved but designated as a CalPERS reserve and an additional$500,000 designated as a worker's comp reserve. Pension System The city is a member of PERS and makes payments to PERS relating to pension benefits accruing to city police,fire and miscellaneous employees. As of June 30,2006,the UAAL with respect to each plan is expected to be as follows: Fire safety plan at$10.9 million; ■ Police safety plan of$7.8 million;and ■ Miscellaneous plan of$10.3 million. The POBs will fund this total UAAL of$28.9 million and will also fund the city's normal cost for fiscal 2007 of$1.9 million,with this prepayment offering the city savings. The funded ratio as of June 30,2004 for the miscellaneous plan,a separate,stand-alone pension plan,was 84.7%,declining from 97.1%in 2002 mainly due to benefit enhancements while market returns were minimal. The city's fire and police plans,given they each have less than 100 active members,are subject to the PERS requirement to join a larger risk pool with other pension plans with similar members receiving similar benefits. In this case,the city funds a side fund to account for the unfunded status of those plans versus the risk pool's funded status,with those side funds unfunded by the amounts listed above. The identification of the rationale to issue pension bonds was spurred by increases in the UAALs for each plan and by increases in the city's annual contribution rate to each plan. The issuance of POBs to cover the city's UAAL converts the city's pension obligation of payments to PERS to an obligation to pay debt service payments to bondholders,while also increasing the city's direct and overlapping bonded debt burden (relatively neutral to overall city liabilities). Annual savings realized by the issuance of POBs rather than making larger city contributions to the plan are projected to range from$104,000 to$165,000 during 2007- 2016,declining to$4,000-$10,000 during 2020-2036. Debt Including the POBs,the city's overall debt ratios are moderate at$4,717 per capita but a low 2.2%of market value.The city plans to seek authorization in fall 2006 for$41 million in GO bonds which will address storm sewer and seismic projects. www.standardandpoors.com 3 -,... r ` 1 Burlingame, California Financial Management Assessment Burlingame's management practices are considered`standard'under Standard&Poor's Financial Management Assessment(FMA). An FMA of`standard'indicates that the finance department maintains adequate policies in most but not all key areas. The city uses historical trend analysis and various external sources to project revenues and expenditures. Actual results versus budget are reviewed quarterly and the city may amend its budget at any time.The city maintains a 5-year CIP with project funding identified,however financial projections only encompass two years.The city has a formal investment policy and results are reported on a monthly basis to council,yet neither a debt management policy nor a formal reserve policy exists. Standard&Poor's I ANALYSIS 4 Presentation to the � eCity of Burlingame Pension System Financing Update September 5, 2006 Of�, ' ROSA I N V E S T M E N T B A N K E R S 90 New Montgomery St., Ste.414 San Francisco,CA 94105 Tel. (415)495-8863,Fax (415) 495-8864 BURLINGAME fto Update on POB Financing June 19 Council Meeting ➢ Council authorized issuance of POB and approved the form of bond indenture ➢ Council authorized court validation action Status Update on POB Financing • Received actuarial study which confirmed UAAL amounts for each plan ➢ Police - $9. 88 million (term extended by one year to 12 years per Ca1PERS ) ➢ Fire — $ 10. 89 million ( 12 years; no term change) ➢ Miscellaneous - $9. 88 million (30 years ; no term change) ➢ Prepayment of a portion of FY 06-07 "normal cost" contribution - $ 1 . 87 million • Received default judgment from Superior Court • Received "AA" underlying rating on the POB from Standard & Poor 's rating agency (S &P also affirmed the City 's Issuer Credit Rating at "AA+") • Received multiple bids from bond insurers to elevate bonds to "AAA" rating status DE LA�^ RosA I I I I ! I I I I I I I I I I 1 1 '. 1 Basic Terminology Related to Pension Payments • CaIPERS requires cities to make 2 different kinds of pension payments for each retirement plan : "Normal Cost" — Annual cost to fund future pension benefits earned by employees in the current fiscal year "Unfunded Liability (UAAL)" — Total present value of pension benefits already earned less current value of City ' s pension assets • CaIPERS allows cities to payoff any UAAL for any plan over time using a 7.75 % interest rate DE •.._ . Alft I Overview , , ' Pension I / ' Fiscalnts 006 x. . l Normal URAL Normal UAAL Normal URAL Cost (1) Payment Cost (1) Payment Cost ( 1) Payment $551K $ 1 . 18 MM $619K $ 1 .07 MM $754K $665K Fiscal Year , Normal UAAL 2006-07 Cost 1 $ 1 .924 MM $2.91 MM ( ) Payment (1) Based on normal contributions for the period starting September 29, 2006 to June 30, 2007. DE !^ • ~��; Paying Off Your Unfunded Liability (URAL) a II . . Pay 1 Today 0 Pay Off Overtime Cal PERS Assumes It Can Sol Must Charge "Interest" Invest Your $ 100 And Earn (Equal to 7.75 % ) on Your Unpaid Balance 7.75 % Return Over Long Run . . . to Match Its Expected Investment Return �-� DE La ROSA I N V E S T M E N T B A N K E R S A'-n.v r.. �s_ Current Unfunded Liability (URAL) By Plan "Public Safety" Fire Police Miscellaneous Total $ 10.89 MM $9.88 MM $9.88 MM $30.66 MM Term12 Years Interest Rate7 .75 % • FY 2006-07 Payment $ 1 . 18 MM $ 1 . 07 MM $665 K $2 . 91 Side Pool ? Yes Yes DE La ROSA 5 ( I N V E S T M E N T B A N K E R S CITV O T Mechanics of a Pension Obligation Bond (POB) RLINGAME Before i Normal 1 Cal PERS City of � . . Burlingame . . Payment After • POB NormalDebt Cost $ Payment Cal PERS City of POBW Burlingame � 5.76 % ,,f . ,n Bond Proceeds Bond P , Off UAALProceeds "Public Safety" Refunding Analysis "Public Safety" Plans - Level Savings —Current Amortization 3,000,000 - _POB Debt Service 2,500,000 2,000,000 1,500,000 1.000,000 2006 2007 0• 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Avg. Annual Savings • • PV Savings ($) $ 1 .68 PV Savings (%) 8.09% �> DE LA ROSA � I N V E S T M E N T B A N N E R S ; _.BUIRPINGAMEMiscellaneous Refunding Analysis Miscellaneous Plan - Level Savings 1 ,200,000 —Current Amortization 1 ,000,000 �POB Debt Service 800,000 600,000 400,000 200,000 0 2006 2008 2010 2012 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 2034 2036 Avg. Annual Savings PV Savings ($) PV Savings ( % ) 22.04% DE LA ROSA sI N V E S T M E N T B A N K E R S A� � "Public Safety " & Miscellaneous Refunding Analysis 0 "Public Safety" & Miscellaneous Plans - Level Savings 5,000,000 Current Amortization —POB Debt Service 4,000,000 3,000,000 2,000,000 1 ,000,000 0 2006 2008 2010 2012 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 2034 2036 Avg. Annual Savings 1 PV Savin1 $3 . 86 MM PV Savings ( °Io ) HURL AMPublic Refunding& Miscellaneous Qr. Analysis Savings ' "Public Safety" and Miscellaneous Plans - Level Savings Cash Flow PV Savings 2, 133,407 Fiscal Year Combined POB Debt UAAL PV Savings (1 ) 1 ,724,271 Ending UAAL Pymts Service (3) Savings 5.77% 2007 2,912,785 2,747,643 165,142 158,835 PV Savings 398579677 2008 3,001,320 2,766,335 234,985 213,688 PV Savings (%) 12.58% 2009 3,092,638 2,863,015 229,624 197,427 Total Savings (2) 1294319675 2010 3,186,831 2,951,078 235,753 191,645 2011 3,283,988 3,050,323 233,666 179,591 2012 3,384,206 3,154,404 229,802 166,991 2013 3,487,583 3,252,879 234,704 161,253 2014 3,594,219 3,365,434 228,785 148,616 2015 3,704,219 3,474,999 229,220 140,780 2016 3,817,690 3,585,839 231,851 134,632 2017 3,934,745 3,702,455 232,290 127,532 2018 4,055,497 3,816,294 239,203 124,167 2019 880,947 849,145 31,803 15,608 2020 902,233 871,019 31,214 14,484 2021 924,100 890,324 33,776 14,818 2022 946,564 912,060 34,504 14,312 2023 969,643 935,286 34,357 13,474 2024 993,356 960,306 33,050 12,255 2025 1,017,721 986,828 30,893 10,831 2026 487,911 454,561 33,351 11,055 2027 477,926 445,860 32,066 10,049 2028 485,174 451,844 33,330 9,876 2029 492,532 461,660 30,872 8,649 2030 500,001 465,016 34,985 9,267 2031 507,584 472,204 35,380 8,860 2032 515,282 482,932 32,350 7,660 2033 523,096 491,908 31,188 6,982 2034 531,029 499,132 31,897 6,751 2035 539,082 504,604 34,478 6,900 2036 547,258 513,324 33,934 6,420 Totals 53,697,160 50,378,707 3,318,453 2,133,407 (1) Under Ca1PERS payment schedule, the Misc Plan is still projected to accrue a $9.11 MM UAAL in 2036. Under the POB plan, this projected $9.11 MM UAAL will be paid off today from POB proceeds. This action will result in UAAL savings of $1.7 MM in today's dollars. (2) Includes UAAL savings of$9.1 MM and cash flow savings of $3.3 MM. (3) Excludes Normal Cost debt service. DE LARosA s r - r r r _ r E3U.RU. "Public Safety " & Miscellaneous - Current Normal Cost Payment 2,000,000 • 1 ,800,000 2006/07 Normal Cost POB Debt Service 1 ,600,000 1 ,400,000 --- - -- - - -- - - - ---- 1,200,000 -- - - - -- - - a� U t, 1,000,000Con - - U A 800,000 600,000 -- ._ 400,000 - - 200,000 1 OVp- 2007 2009 2011 2013 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 2035 DE LARosA E73 I i AWh Action , BeConsidered " , , / / , , / Council ` /Schedule/ fto • June 19 Meeting — Council Authorized Issuance of POB and Approved the Form of Bond Indenture • Tonight 's Meeting - Council Approval of the Form of the Preliminary Official Statement and Bond Purchase Agreement • Week of September 11 - Print & Mail Preliminary Official Statement • Week of September 18 — Sell Bonds • September 27 — Bond Closing • September 28 — Payoff URAL and Prepay a Portion of the FY 06-07 Normal Cost Contribution DE LARosA CITY AGENDA °� ITEM # 8c BIJRLINGAME STAFF REPORT MAG. DATE SEDfP.fTlbP.f Fi ?nn6 oq m TO: HONORABLE MAYOR AND CITY COUNCIL SUBMITTED BY DATE: August 29, 2006 APPROVE ' � •� FROM : Crystal Duong (558-7204) BY - SUBJECT: Y _SUBJECT: Parks and Rec and Beautification Vacancy RECOMMENDATION It is recommended that Council should call for applications for the following commissions: Commission Filing Deadline Beautification October 7, 2006 Parks and Recreation October 7 , 2006 There will be 3 impending vacancies for the Beautification Commission and 2 in the Parks and Rec Commission . The recommended deadline is September 22 , 2006. This will allow enough time for interviews and an orientation for the new board member. The Mayor and Council should determine two-member committees to perform the interviews. BACKGROUND Our current commissioner appointment procedure calls for any commissioner desiring reappointment to apply in the same manner as all other candidates. The current commissioners will be invited to reapply if they wish to serve again . All past applicants on the two-year waitlist will be informed of the vacancy. In addition , we will send a press release to local newspapers and a notice on the city's list serve. The following Board Member's term will expire as detailed below: Beautification Commissioner Term Expiration Terms Served Mark Grandcolas October 7 , 2006 1 Jill Lauder October 7, 2006 5 Leslie McQuaide October 7, 2006 1 Parks and Rec Commissioner Term Expiration Terms Served Kirkland Heathcote October 7 , 2006 3 Cynthia Schreurs October 7, 2006 1 carr c AGENDA sd A.ry ITEM# E STAFF REPORT MTG. - DATE SwmwmM,S,Zona TO: mHonorable,MavyorandCily-G9u=il __ SUBMITTED c � BY:.Jack Van Etten fA ih of of PaJice V"' DATE: August 28,2006 / APPROVED FROM:Jack Van Etten hi BY:Jim_Nantell,City Manage[_ __.____ SUBJECT:Amendment to change,eliminate and clarify parking meter and metered lot enforcement on certain designated city holidays that fall on Friday and Saturday RECOMMENDATION:Introduce an amendment to existing Burlingame City Ordinance(section 13.04.100)clarifying city holidays falling on Saturday and changing existing language to coincide with meter and parking lot enforcement. A.Request that the City Clerk read the title of the proposed ordinance B.Waive further reading of the proposed ordinance C.Introduce the proposed ordinance D.Direct the City Clerk to publish a summary of the proposed ordinance at least 5 days prior to the proposed adoption BACKGROUND:For the purpose of parking meter and parking lot enforcement,existing city ordinance regulations (section 13.04.100)identifies a total of ten(10)holidays when both the meters and city lots are not enforced.The "holidays"included in this ordinance are: 1)January 1; 2)The third Monday in January; 3)The third Monday in February, 4)The last Monday in May, 5)July 4; 6)The first Monday in September; 7)The second Monday in October, 8)November 11; 9)The fourth Thursday in November;and 10)December 25. The existing city ordinance also indicates,"Whenever a holiday defined above falls on a Sunday,the Monday following is a holiday.Whenever a holiday defined above falls on a Saturday,the Friday preceding is a holiday."Since Saturday is designated as an enforcement day,parking meters and metered lots are enforced.Under the existing code,a city designated holiday falling on a Saturday,but enforced on a Friday,could create some confusion for citizens patronizing the Burlingame Avenue and Broadway business districts,as well as for enforcement staff.When this occurs,BOTH the Saturday AND the preceding Friday are designated holidays. To eliminate confusion,staff is recommending a change to the existing city ordinance(section 13.04.100), the language referencing Friday holiday designations when the holiday falls on a Saturday.Therefore,whenever a city holiday falls on a Saturday,meter and metered lots will not be enforced on either the actual holiday(Saturday)or the city observed holiday on the Friday immediately prior the actual Saturday holiday. Projecting out 10 years,there appears to be only five times when this would become an issue:November 11,2006, July 4,2009;December 25,2010;January 1,2011;and July 4,2016.The fiscal impact to the city is very minor throughout this time period,and eliminating parking meter and lot enforcement would be a gesture of goodwill to both our business community and the citizens patronizing local businesses. FISCAL IMPACT: Average loss of approximately $4,790.00 to $5,200.00 in parking meter and metered lot revenue per day. Average loss of approximately $1,750.00 to $2,100.00 in parking citation revenue per day. ATTACHMENTS: Refer to attached updated City Ordinance, section 13.04.100 1 2 ORDINANCE NO. 3 ORDINANCE OF THE CITY OF BURLINGAME AMENDING CHAPTER 13.04 TO AMEND THE DEFINITION OF HOLIDAYS FOR PARKING ENFORCEMENT 4 5 The CITY COUNCIL of the CITY OF BURLINGAME does hereby ordain as follows: 6 Section 1 . The State and Federal governments have established a variety of holidays 7 for a variety of purposes. Section 13.04.100 is amended in order to make parking enforcement 8 applicable to Fridays and Mondays when holidays fall during the weekend. By reference, this 9 amendment would also change the limitations on hours of leaf blowers and power equipment 10 in residential districts under Section 10.40.037, meaning that regular weekday hours would 11 apply on those Fridays and Mondays. 12 Section 2. Section 13.04.100 is amended to read as follows: 13 13.04. 100 Holidays. 14 For purposes of this title, "holidays" are: 15 (a) January 1; 16 (b) The third Monday in January; 17 (c) The third Monday in February; 18 (d) The last Monday in May; 19 (e) July 4; 20 (f) The first Monday in September; 21 (g) The second Monday in October; 22 (h) November 11 ; 23 (i) The fourth Thursday in November; and 24 0) December 25. 25 Whenever a holiday defined above falls on a Sunday, the Monday following is also a holiday. 26 Whenever a holiday defined above falls on a Saturday, the Friday preceding is also a holiday. 27 28 // I Section 3. This ordinance shall be published as required by law. 2 3 Mayor 4 5 I, , City Clerk of the City of Burlingame, do hereby certify that 6 the foregoing ordinance was introduced at a regular meeting of the City Council held on the_ day of , 2006, and adopted thereafter at a regular meeting of the City 7 Council held on the day of , 2006, by the following vote: 8 9 AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: 10 ABSENT: COUNCILMEMBERS: 11 City Clerk 12 U:\FILES\ORDINANC\holidaydef2006.pol.wpd 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 - 2 - Agenda 100ilh Item # 9a 00 1 Meeting BURLINGAME STAFF REPORT Date: September 5, 2006 SUBMITTED BY APPROVED BY TO: HONORABLE MAYOR AND CITY COUNCIL DATE: August 22, 2006 FROM: PUBLIC WORKS SUBJECT: RESOLUTION APPROVING TRAFFIC STUDY SCOPE OF WORK FOR PENINSULA AVENUE INTERCHANGE AT U.S. HWY 101 AND A COST SHARING AGREEMENT WITH THE CITY OF SAN MATEO RECOMMENDATION: It is recommended that Council approve the attached resolution for a scope of work for the Peninsula Avenue Interchange Traffic Study and a cost sharing agreement with the City of San Mateo in the amount of $25,000. BACKGROUND: The City of San Mateo has been concerned about the hazardous traffic movements at the intersection of Popular Avenue/Amphlett Boulevard/Hwy 101 ramps and is investigating the feasibility of a full interchange project at Peninsula Avenue and Hwy 101 to resolve this problem. The project would involve adding southbound on/off ramps on the west side of the freeway at Peninsula Avenue. Although the new interchange would be entirely in the city limits of San Mateo, changes to the current configuration will affect traffic conditions in Burlingame. In order to determine the impacts of a full interchange, staff is recommending that a traffic study be jointly conducted between Burlingame and San Mateo. The study will provide information which will assist decision makers on determining whether to proceed any further with a project. The results of the study will be discussed at a joint public workshop and at Council hearings in both cities before any decision is reached (see attached flow chart). It should be emphasized that if the project merits consideration beyond this study, there are numerous actions necessary which will take years to complete. A detailed project Environmental Impact Report (EIR) would be required and approved by both Caltrans and Federal Highway Administration. Some of the key issues to be addressed in the EIR are traffic congestion, noise, pollution, impacts to residences/business, construction impacts and right of way acquisition. DISCUSSION: The traffic study will cost of $63,940 of which Burlingame's share is $25,000. The scope of work will include the evaluation of six scenarios as follows: Scenario _ _ _ Poplar Ave. Interchange Peninsula Ave. interchange 1 Existing (no change) Existing (no change) 2 Closure both ramps Existing (no change) 3 Closure both ramps New on/off ramps 4 Closure SB off-ramp Existing (no change) 5 Closure of SB off-ramp New SB off-ramp 6 Closure of SB off-ramp New SB on/off ramps The traffic volumes in each scenario will be projected to year 2020 based on the San Mateo County traffic congestion model as well as City of Burlingame traffic analyzer. The study will include the future projected traffic from new development in the Burlingame bay front area as well as several key intersections and roadway segments in Burlingame as follows: • Humboldt street and Peninsula Avenue • Humboldt Street and Howard Avenue • Dwight Road/Delaware Avenue and Peninsula Avenue • Dwight Road and Burlingame Avenue • Rollins Road and Howard Avenue • EI Camino Real and Peninsula Avenue • California Drive and Peninsula Avenue • EI Camino Real and Burlingame Avenue • California Drive and Burlingame Avenue • Rollins Road and Hwy 101 on-off ramps/Cadillac Way • Rollins Road and Broadway • California Drive and Broadway • EI Camino Real and Broadway • Airport Boulevard and Hwy 101 interchange ramps In addition, the study will provide information on traffic conditions in the residential areas along Rollins Road,Howard Avenue and Bayswater Avenue. It should be pointed out that is a preliminary study designed to obtain information on traffic conditions for each scenario and to identify areas requiring more detailed analysis which would be done as part of the EIR. The City of San Mateo has hired Hexagon Transportation Consultants of San Jose to perform the study. Hexagon has performed similar work successfully and is a well qualified to perform the traffic study(see attachment).The study will take approximately six to eight weeks to complete. PUBLIC OUTREACH: Staff has mailed notifications of the study session to residents of both communities who attended previous meetings on this subject. Newspaper advertisements have been published in three local newspapers that cover both cities. In addition, notices have been sent to citizens on the Burlingame list serve. San Mateo staff has agreed to notify residents of both communities on future meetings covering the traffic study results. BUDGET IMPACT: Burlingame's share of the traffic study is$25,000 which will be funded by Proposition 42 payments received from the State. EXHIBITS:Agreement with scope of services, resolution, map of the study area and flow c of process. Syed u ,P.WE. Assist ublic Works Director S:W Public Works Directory\Staff Reports\Peninsula Interchange traffic study staffreport.doc FUNDING AGREEMENT BETWEEN CITY OF SAN MATEO AND CITY OF BURLINGAME FOR TRAFFIC IMPACT ANALYSIS OF THE PENINSULA AVENUE INTERCHANGE This Agreement, made and entered into this day of , 2006, by and between the CITY OF SAN MATEO, a municipal corporation existing under the laws of the State of California, hereafter "SAN MATEO", and the CITY OF BURLINGAME, a municipal corporation existing under the laws of the State of California, hereafter "BURLINGAME" . RECITALS: A. The U.S. 101 Auxiliary Lane project has been approved. This project will consist of adding an auxiliary lane to U.S. 101 , provide soundwalls in the area, and reconfiguration of the eastern structure ramps. B. In an effort to examine the potential of relocating the U.S. 101 /Poplar ramps to the Peninsula interchange, SAN MATEO has developed a number of ramp scenarios that would allow this interchange to serve both the east and west approach directions. C. SAN MATEO has contracted with Hexagon Transportation Consultants, Inc. , hereinafter "Hexagon," to perform a traffic study of potential Peninsula/U.S. 101 interchange ramp scenarios to determine their impact to the adjacent local street network. As the traffic impacts of the reconfiguration of this interchange falls to streets also within BURLINGAME, it has been requested by BURLINGAME that additional traffic analysis be performed in their City. D. In light of their common interests in conducting a traffic impact analysis, it is agreed that BURLINGAME will contribute $25,000 towards the overall $63,940 cost of the analysis. NOW, THEREFORE, IT IS AGREED as follows: SECTION 1 - SCOPE OF AGREEMENT This agreement is for the purpose of BURLINGAME's cooperating with SAN MATEO in the conduct of the traffic impact analysis, receiving the results of that analysis in a usable, model form, and providing funds to SAN MATEO for the Hexagon traffic impact analysis. CADocuments and Settings\smurtuza\Local Settings\Temporary Internet Files\OLKKFunding Agreeement-Burlingame-SanMateolDOC - 1- SECTION 2 - DUTIES/REPRESENTATIONS OF SAN MATEO a. SAN MATEO shall be responsible for paying the full contract amount for the project. b. SAN MATEO shall require Hexagon to perform the traffic impact analysis in accordance with the Scope of Work contained in Exhibit A to this Agreement. SAN MATEO shall provide BURLINGAME with a copy of the existing agreement between SAN MATEO and Hexagon, and any changes to the agreement that occur in the future. C. SAN MATEO shall require Hexagon to name BURLINGAME, its officers and employees as additional insureds on the general liability and automobile liability insurance policies provided to SAN MATEO in connection with the work to be done by Hexagon on the traffic impact analysis and further require provision of endorsements demonstrating that Hexagon has done so. d. Upon completion of the traffic impact analysis, SAN MATEO shall provide a copy of the traffic impact analysis as well as a usable model of the traffic impact analysis to BURLINGAME as provided in Exhibit A. SECTION 3 - DUTIES/REPRESENTATIONS OF BURLINGAME a. BURLINGAME agrees that funding under this agreement satisfies BURLINGAME's obligations regarding, and is representative of BURLINGAME's fair share of the traffic impact analysis for the interchange ramp options. b. Within thirty (30) days of delivery by SAN MATEO to BURLINGAME of the traffic impact analysis completed pursuant to Section 2 above, BURLINGAME shall pay SAN MATEO the sum of $25,000. SECTION 4 - CHANGES TO SCOPE OF WORK OR COSTS a. If the contract cost billed to SAN MATEO by Hexagon is less than $63,940, then BURLINGAME shall only pay to SAN MATEO an amount equal to the actual contract cost multiplied by a factor of 0.3910 (25,000/63,940). b. No reduction or change in the Scope of Work contained in Exhibit A shall be made without the written consent of BURLINGAME. c. SAN MATEO agrees and understands that BURLINGAME shall not be responsible for any payment greater than $25,000 to SAN MATEO unless BURLINGAME has consented in writing to such a larger payment before any related costs or expenses are incurred. CADocuments and Settings\smurtuza\Local Settings\Temporary Internet Files\OLU Funding Agreeement-Burlingame-SanMateo2.DOC -2- SECTION 5 - TERM The term for performance of this agreement shall extend until such time as SAN MATEO and BURLINGAME have completed their obligations under this Agreement. SECTION 6 - TERMINATION This agreement may be terminated by either party for cause only and otherwise shall be in full force and effect for the term. Cause to terminate this agreement shall be only for a material breach of its terms or obligations and may only take place after providing 30 days written notice of the material breach and a reasonable opportunity to cure. SECTION 7 - RELEASE AND INDEMNITY SAN MATEO agrees to hold harmless and indemnify BURLINGAME, its officers and employees from and against any and all claims, loss, liability, damage, and expense arising from the negligent, or claimed negligent, performance of this agreement by SAN MATEO or its contractor relating to the performance of this agreement. SAN MATEO agrees to defend BURLINGAME, its officers or employees against any such claims. This provision does not apply to claims, loss, liability or damage or expense arising from the sole negligence, willful misconduct, or active negligence of BURLINGAME. BURLINGAME agrees to hold harmless and indemnify SAN MATEO, its officers and employees from and against any and all claims, loss, liability, damage, and expense arising from the negligent, or claimed negligent, performance of this agreement by BURLINGAME. BURLINGAME agrees to defend SAN MATEO, its officers, elected officials or employees against any such claims. This provision does not apply to claims, loss, liability or damage or expense arising from the sole negligence, willful misconduct, or active negligence of SAN MATEO. SECTION 8 - NONASSIGNABILITY Both parties hereto recognize that this agreement cannot be transferred, assigned, or subcontracted by either party without the other party's written consent. SECTION 9 - WAIVERS The waiver by either party of any breach or violation of any term, covenant, or condition of this agreement or of any provisions of any ordinance or law shall not be deemed to be a waiver of such term, covenant, condition, CADocuments and Settings\smurtuza\Local Settings\Temporary Internet Files\OLK8\Funding Agreeement-Burlingame-SanMateolDOC -3- ordinance or law or of any subsequent breach or violation of the same or of any other term, covenant, condition, ordinance or law or of any subsequent breach or violation of the same or of any other term, condition, ordinance, or law. SECTION 10 - COSTS AND ATTORNEYS FEES Attorney fees in an amount not exceeding $85 per hour per attorney, and in total amount not exceeding $5000, shall be recoverable as costs (by the filing of a cost bill) by the prevailing party in any action or actions to enforce the provisions of this agreement. The above $5000 limit is the total of attorneys' fees recoverable whether in the trial court, appellate court, or otherwise, and regardless of the number of attorneys, trials, appeals, or actions. It is the intent of this agreement that neither party shall have to pay the other more than $5000 for attorney's fees arising out of an action, or actions to enforce the provisions of this agreement. SECTION 11 - NON-DISCRIMINATION Each party warrants that it is an Equal Opportunity Employer and shall comply with applicable regulations governing equal employment opportunity. Neither party nor any of its contractors shall discriminate in the employment of any person because of race, color, national origin, ancestry, physical handicap, medical condition, marital status, sex, or age, unless based upon a bona fide occupational qualification pursuant to the California Fair Employment and Housing Act or provisions of the ADA. In addition, SAN MATEO warrants that Hexagon has warranted to SAN MATEO that Hexagon is an Equal Opportunity Employer and shall comply with applicable regulations governing equal employment opportunity. SAN MATEO has further required Hexagon to contractually affirm that neither Hexagon nor any of its subcontractors shall discriminate in the employment of any person because of race, color, national origin, ancestry, physical handicap, medical condition, marital status, sex, or age, unless based upon a bona fide occupational qualification pursuant to the California Fair Employment and Housing Act or provisions of the ADA SECTION 12 - MEDIATION Should any dispute arise out of this Agreement, any party may request that it be submitted to mediation. The parties shall meet in mediation within 30 days of a request. The mediator shall be agreed to by the mediating parties; in the absence of an agreement, the parties shall each submit one name from mediators listed by either the American Arbitration Association, the California State Board of Mediation and Conciliation, or other agreed-upon service. The mediator shall be selected by a "blindfolded" process. The cost of mediation shall be borne equally by the parties. Neither party shall be deemed the prevailing party. No party shall be permitted to file a legal CADocuments and Settings\smurtuza\Local Settings\Temporary Internet Files\OLK8\Funding Agreeement-Burlingame-SanMateolDOC -4- action without first meeting in mediation and making a good faith attempt to reach a mediated settlement. The mediation process, once commenced by a meeting with the mediator, shall last until agreement is reached by the parties but not more than 60 days, unless the maximum time is extended by the parties. SECTION 13 - ARBITRATION After mediation above, and upon agreement of the parties, any dispute or claim arising out of or relating to this agreement may be settled by arbitration in accordance with the Construction Industry Rules of the American Arbitration Association, or any other rules agreed to by the parties and judgment upon the award rendered by the arbitrator may be entered in any court having jurisdiction thereof. The costs of arbitration shall be borne equally by the parties. SECTION 14 - NOTICES All notices hereunder shall be given in writing and mailed, postage prepaid, addressed as follows: To SAN MATEO: Larry Patterson Director or Public Works CITY OF SAN MATEO 330 West 20th Avenue San Mateo, California 94403 To BURLINGAME: Director of Public Works City of Burlingame 501 Primrose Road Burlingame, CA 94010 SECTION 15 - AGREEMENT CONTAINS ALL UNDERSTANDINGS; AMENDMENT This document represents the entire and integrated agreement between SAN MATEO and BURLINGAME and supersedes all prior negotiations, representations, and agreements, either written or oral. This document may be amended only by written instrument, signed by both parties. CADocuments and Settings\smurtuza\Local Settings\Temporary Internet Files\OLK8\Funding Agreeement-Burlingame-SanMateo2.DOC -5- SECTION 16 - GOVERNING LAW This agreement shall be governed by the laws of the State of California. IN WITNESS WHEREOF, SAN MATEO and BURLINGAME have executed this agreement the day and year first above written. CITY OF SAN MATEO CITY OF BURLINGAME Larry Patterson George Bagdon Director of Public Works Director of Public Works APPROVED AS TO FORM: APPROVED AS TO FORM: Assistant City Attorney City Attorney Michael J. Ogaz CADocuments and Settings\smurtuza\Local Settings\Temporary Internet Files\OLK8\Funding Agreeement-Burlingame-SanMateolDOC -6- Exhibit "A" Scope of Work (8/23/2006) Travel Demand Modeling/Forecasting Support for the Peninsula Avenue/US 101 Interchange Improvement Study Task 1 : Develop Future Year Transportation Networks Hexagon will use the San Mateo Citywide travel demand model networks and projected traffic data for City of Burlingame traffic from San Mateo County congestion model for creating future year transportation networks for the Peninsula Avenue Interchange Improvement Study. The networks need to reflect the preliminary alternatives that have been defined by city staff. The transportation networks and basic model data being used for this work consists of a San Mateo citywide travel demand model system that was validated against year 2000 ground counts and utilizes ABAG Projections 2000 for Burlingame. The future networks will reflect up to five individual alternatives defined by City of San Mateo staff, plus a"No Build" Alternative. The future alternatives will all include the RTP Track I project list for the entire nine-county Bay Area. For the future year, both financially constrained and fiscally projected projects will be included in the background transportation networks. The defined alternatives for study are as follows: Scenario Number Poplar Interchange Peninsula Avenue Interchange 1 Existing Existing 2 Closure of both ramps No access to/from SB 101 (existing) 3 Closure of both ramps New SB off-and on-ramp(full i/c) 4 Closure of off-ramp No access to/from SB 101 (existing) 5 Closure of off-ramp New SB off-ramp 6 Closure of off-ramp New SB off-and on-ramp (full i/c) All scenarios will be modeled for year 2020,using the land use data assumpations associated with the 2020 Corridor Plan with Bay Meadows Phase 11 project. The forecast for Scenario 1 has already been developed. Task 2: Develop Year 2020/2030 Travel Demand Forecasts Hexagon will use the San Mateo Citywide travel demand forecast model system to create travel forecast scenarios for the transportation alternatives shown in Task 1. This model will be used as the basis for developing travel forecasts and future intersection link volumes for five future alternatives, plus a No Build option(see Task 1). For each scenario, volumes for the AM and PM peak 3-hour periods will be produced. Hexagon Transportation Consultants, Inc. Scope of Work to Conduct Travel Demand Forecasting Analysis for the Peninsula Interchange Improvement Study 1 Task 3: Evaluate Travel Demand for Alternatives Hexagon will provide a series of model outputs for the six individual alternatives. Hexagon will analyze the AM and PM peak(3-hour) period results of these model runs and provide the following information: • Volume plots, • Difference plots, and • Level of Service (volume-to-capacity) plots. The change in forecast volumes(for each alternative)will be analyzed for 24 individual intersections as follows: 1. Humboldt Street& Third Avenue 2. Humboldt Street& Fourth Avenue 3. Humboldt Street& Peninsula Avenue 4. Humboldt Street& Poplar Avenue 5. Delaware Street& Third Avenue 6. Delaware Street& Fourth Avenue 7. Delaware Street& Peninsula Avenue 8. Delaware Street& Poplar Avenue 9. El Camino Real&Third Avenue 10. El Camino Real& Fourth Avenue 11. El Camino Real & Peninsula Avenue/Park Road 12. El Camino Real & Poplar Avenue 13. El Camino Real & Burlingame Avenue 14. El Camino Real & Broadway Avenue 15. Burlingame Avenue and Dwight Road 16. Broadway Avenue and California Avenue 17. Airport Boulevard and US 101 Interchange ramps 18. Humboldt Street& Howard 19. Rollins Road&Howard 20. California Avenue &Peninsula Avenue 21. Rollins Road & 101/Cadillac Way 22. Rollins Road&Broadway Avenue 23. California Avenue & Burlingame Avenue Although the intersections of Arundel and Howard, Dwight and Howard, Arundel and Peninsula and Dwight and Peninsula are not included in the modeled network, changes in volumes for these four intersections can be inferred from the traffic volume changes at the study intersections shown above. Task 4: Perform Select Link Analysis for Alternatives Hexagon will provide select link analysis for the six individual alternatives shown in Task 1. Hexagon will analyze up to two select link analyses for both the AM and PM peak(3-hour)periods, for a total of 24 possible select link runs. Task 5: Develop Travel Demand for 2020 Alternative without 25th Av Extension Hexagon Transportation Consultants, Inc. Scope of Work to Conduct Travel Demand Forecasting Analysis for the Peninsula Interchange Improvement Study 2 Hexagon will use the San Mateo Citywide travel demand forecast model system to create travel forecast for the scenario that includes extension of 28`h Avenue and 31 S`Avenue and does not include the extension of 25`h Avenue. This model will be used as the basis for developing travel forecasts and future link volumes. For this scenario, volumes for the AM and PM peak 3-hour periods will be produced. Products will include volume plots, difference plots (comparing to the alternative that includes the extension of 25`h Avenue), and level of service (volume-to-capacity) plots. Task 6: Document Analysis and Prepare Traffic Demand Forecasting Model Memorandum Hexagon will prepare draft technical documentation presenting the results of the travel demand forecasts. The evaluation data developed in Task 3, and the change in intersection link volumes resulting from each of the alternatives(compared to the No Build)will be incorporated into the travel demand forecasting technical memorandum. Task 7: Attend Meetings Hexagon will attend up to a total of three meetings with City of San Mateo and Burlingame staff in conjunction with this study. Any results, analyses, model outputs or services not described in the above tasks are considered extra services and would be subject to a supplemental add-on to the initial scope of work. Optional Task 0-1: Attend Burlingame Meetings Hexagon will attend meetings with Burlingame City Council or Planning Commission at the request of Bulingame staff. The number of meetings at which attendance by the Consultant is requested is not known. The cost and time to attend such meetings is defined within this scope on a per meeting basis. Schedule The analysis and the draft memorandum of the forecast results will take approximately 6 weeks to complete. It is anticipated that another two to three weeks will be needed to respond to any remaining questions and concerns by city staff. The analysis will be completed by June 30, 2006 Cost The cost of producing and documenting the travel demand model runs and analysis is estimated at $61,827 ($61,427 in labor costs and $400 in other direct costs). The cost of attending Burlingme Planning Commission or City Council Meetings will cost approximately $2,113 ($2,013 in labor costs and $100 in other direct cost) per meeting. The break down of costs by task is included in the following table. Hexagon Transportation Consultants, Inc. Scope of Work to Conduct Travel Demand Forecasting Analysis for the Peninsula Interchange Improvement Study 3 Cost Estimate(8/23/2006) Travel Demand Forecasting Support for Peninsula Interchange Improvement Feasibility Study Jill Ling Jennifer Jordan Hough Jin Hunter Chan Total Labor Total Labor Sub- Other Total Task \Rate 162 94 85 66 Hours Cost Consultant Direct Cost Cost 0 1.Develop Future Year Transportation Networks(5) 8 32 8 48 4,818 0 4,818 2.Develop 2020/2030 Forecasts for 6 Alternatives 16 40 56 6,336 0 6,336 3.Evaluate Travel Demand for Alternatives 45 113 34 192 20,111 0 20,111 4.Perform Select Link Analysis 24 80 104 11,374 0 11,374 5.Develop and Analyze 2020 without 25th Av connection 8 28 36 3,916 0 3,916 6.Prepare Model Forecast Documentation 28 20 40 88 9,823 0 100 9,923 7.Attend Meetings(3) 20 12 8 40 5,049 0 300 5,349 0-1 Attend Burlingame Meeting(cost per meeting) 8 4 4 16 2,013 100 2,113 Total 157 329 52 42 580 63,440 0.00 500 $63,940 Total Labor Costs are based on a multiplier of 2.75 Hexagon Transportation Consultants,Inc. Scope of Work to Conduct Travel Demand Forecasting Analysis for the Peninsula Interchange Improvement Study 4 RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BURLINGAME APPROVING AGREEMENT BETWEEN THE CITY OF BURLINGAME AND THE CITY OF SAN MATEO FOR TRAFFIC IMPACT ANALYSIS OF THE PENINSULA AVENUE INTERCHANGE RESOLVED, by the City Council of the City of Burlingame: WHEREAS, the Peninsula Avenue interchange is scheduled for reconstruction as part of improvements to U.S. 101; and WHEREAS, the City of San Mateo is beginning a traffic study of the Peninsula Avenue/Poplar Avenue interchange system; and WHEREAS, the City of Burlingame should participate in that study in order to ensure that Burlingame's needs are met and to assist San Mateo in bearing the costs of a full study, NOW, THEREFORE, IT IS RESOLVED AND ORDERED: 1 . The City Manager is authorized and directed to execute the Agreement between the City of San Mateo and the City of Burlingame as contained in Exhibit A hereto. 2. The Clerk is directed to attest to the signature of the Manager. MAYOR I, DORIS MORTENSEN, City Clerk of the City of Burlingame, do hereby certify that the foregoing resolution was introduced at a regular meeting of the City Council held on the day of 2006, and was adopted thereafter by the following vote: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: CITY CLERK ` � v til it Ale.` 00 nt xt w w., ,`^^•°eli�a—+�,a++�.a. -a 1 ♦ter'?..Fy.,:��.. .�. `( } L 7,14 r rt w �r? 7�, p� r '" +t ^�"a. �`ate ':�": ,•.�,� ,YIMF a _ . x a3S � s i * v -#' ,.�,� .a a +► " :app,«� y c +s .� ,. a rn SN, a• :r°� . � , +�k /' e t �.� v.'•aA�`.j *M". �x � y* � M "I�R� {. n `� _ *iR: c s'��' .j �llk+ ,� �.'. _ s a. >. , , a . y a n i ♦ t L � • 2Wi,I�li ,AI a uro a-'TeHG,ftn0 4� J 6 m: " s ,. �� e F a 'a r,Aatec� tR . . ^m. 3U143VA, A-3oamipil K:-tA1K yevjTL 'it-AiAXT womm am= mm' *mum M.r smalo 00040 0001* woom i?11 E �.r ./ .l .� woo 00010 RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BURLINGAME APPROVING AGREEMENT BETWEEN THE CITY OF BURLINGAME AND THE CITY OF SAN MATEO FOR TRAFFIC IMPACT ANALYSIS OF THE PENINSULA AVENUE INTERCHANGE RESOLVED, by the City Council of the City of Burlingame: WHEREAS, the Peninsula Avenue interchange is scheduled for reconstruction as part of improvementS to U.S. 101 ; and WHEREAS, the City of San Mateo is beginning a traffic study of the Peninsula Avenue/Poplar Avenue interchange system; and WHEREAS, the City of Burlingame should participate in that study in order to ensure that Burlingame's needs are met and to assist San Mateo in bearing the costs of a full study, NOW, THEREFORE, IT IS RESOLVED AND ORDERED: 1 . The City Manager is authorized and directed to execute the Agreement between the City of San Mateo and the City of Burlingame as contained in Exhibit A hereto. 2. The Clerk is directed to attest to the signature of the Manager. MAYOR I, DORIS MORTENSEN, City Clerk of the City of Burlingame, do hereby certify that the foregoing resolution was introduced at a regular meeting of the City Council held on the day of , 2006, and was adopted thereafter by the following vote: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: CITY CLERK BURS STAFF REPORT AGENDA ITEM# 9b MTG. DATE 9/5/06 To: HONORABLE MAYOR AND CITY COUNCIL By hrTEnd Q DATE: August 27, 2006 (� APPR D FROM: Parks& Recreation Director(558-7307) BY SUB.IEcr: ADOPTION OF RESOLUTION OF THE CITY COUN IL OF THE CITY OF BURLINGAME URGING SUPPORT FOR THE ADOPTION OF THE PARKS FOR THE FUTURE (MEASURE A)AT THE NOVEMBER 7, 2006,ELECTION RECOMMENDATION: It is recommended that the City Council adopt the Resolution of the City Council of the City of Burlingame Urging Support for the Adoption of the Parks for the Future(Measure A) at the November 7, 2006,Election. BACKGROUND: Parks for the Future is an effort to secure dedicated funding to support parks and recreation agencies within San Mateo County for a period of 25 years by increasing the County sales tax from 8.25%to 8.375%. The measure will be placed on the November 2006 ballot and is anticipated to raise approximately $15 million annually. If the measure is approved by 2/3 of the County's voters,the funds will be shared by the San Mateo County Parks Department, the 20 city Parks and Recreation agencies, the Ladera and Highlands Recreation Districts and the Mid- Peninsula Regional Open Space District. Each agency would be required to maintain their general fund contributions to their Parks and Recreation budgets and would be able to use the funds at their discretion for Parks and Recreation purposes, such as maintenance, operations, activities and programs, capital improvements and acquisition. C/CAG would serve as the administrative board for distribution of funds, auditing and reporting functions. BUDGET IMPACT: If the Parks for the Future initiative is passed by the voters of San Mateo County, it is anticipated the City of Burlingame would receive slightly over $300,000 each year for the next 25 years, adjusted for annual growth of sales tax. ATTACHMENTS: A. Resolution of the City Council of the City of Burlingame Urging Support for the Adoption of the Parks for the Future (Measure A) at the November 7, 2006, Election RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BURLINGAME URGING SUPPORT FOR THE ADOPTION OF THE PARKS FOR THE FUTURE(MEASURE A) AT THE NOVEMBER 7,2006,ELECTION RESOLVED,by the Council of the City of Burlingame,California: WHEREAS,the San Mateo County Park System is an invaluable asset of recreation, open space,and historical resources; and WHEREAS, the Park System serves all of the residents of San Mateo County; and WHEREAS, the mandates of State government and the demands to provide social and medical services have prevented the County from properly funding the Park System,creating a backlog of some$100 million in deferred maintenance and staff shortages throughout the parks; and WHEREAS,city parks and recreation programs have also suffered cutbacks during the past five years of tough economic times, and only through individual bond issues have some cities been able to continue to provide the capital improvements needed for a growing population that is growing younger; and WHEREAS, groups of citizens and government officials have met over a period of months to develop a comprehensive approach to the basic parks and recreational needs of the community; and WHEREAS, these groups have sought and gained support from the State Legislature in authorizing the placement of a small sales tax increase on the ballot to provide this basic support; and WHEREAS, these groups have worked together to create a ballot measure that would provide basic support to the San Mateo County Park System and provide needed revenue to local agencies in the County to support park and recreation facilities and programs; and WHEREAS, the Board of Supervisors of San Mateo County has unanimously placed this measure on the ballot for the November 2006 election; and WHEREAS, the proposed measure would provide the City of Burlingame with an assured source of revenue that could be used to help fund needed improvements and programs, in particular an improved community center, and 1 WHEREAS, the revenues that would be available from this tax would be a significant part of keeping the County and Burlingame an attractive place to live, NOW,THEREFORE,BE IT RESOLVED: 1. The City Council of the City of Burlingame urges support of the adoption of Measure A,Parks for the Future, at the November 7, 2006 election. MAYOR I, DORIS MORTENSEN, City Clerk of the City of Burlingame, do hereby certify that the foregoing resolution was introduced at a regular meeting of the City Council held on the day of ,2006,and was adopted thereafter by the following vote: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: CITY CLERK 2 Agenda Item # 9c Meeting BURLINGAME STAFF REPORT Date: Set ber 5 2006 SUBMITTED BY L_A'/� APPROVED BY TO: HONORABLE MAYOR AND CITY COUNCIL DATE: August 22, 2006 FROM: PUBLIC WORKS SUBJECT: TENTATIVE CONDOMINIUM MAP FOR A 45-UNIT CONDOMINIUM AT 1840 OGDEN DRIVE — 0.89 ACRE PORTION OF BLOCK 7, MAP OF MILLS ESTATE NO. 3 SUBDIVISION, PM 06-05 RECOMMENDATION: It is recommended that Council approve this map subject to the following: • All sidewalk, driveway, curb and gutter shall be replaced as new. • All conditions attached to the condominium permit shall be met. • The conditions, covenants and restrictions for this map shall be approved by the City Attorney and conform to all approval conditions and City codes. • During construction, the project developer shall maintain the existing street in good condition to the satisfaction of the Public Works Director. If the construction activity results in street damage, the developer shall re-pave the street frontage to City standards. The developer shall take photographs of the street condition prior to and after construction to document any damage caused by the project construction. The street reconstruction shall be a minimum of 2 inches of asphalt concrete removal and replacement. BACKGROUND: The condominium map was approved by Planning Commission on July 24, 2006. Staff has reviewed the tentative condominium map and recommends approval subject to the above conditions. EXHIBITS: Tentative Condominium Map, Staff Memorandum, Planning Commission Minutes i ictor Wing Assist nt ngineer c: Doris Mortensen, City Clerk SAA Public Works Directory\Staff Repo rts\06-05Condo.doc PC Item# MEMORANDUM TO: PLANNING DEPARTMENT FROM: ENGINEERING DIVISION DATE: AUGUST 24,2005 RE: CONDOMINIUM PERMIT FOR 45 UNITS,TENTATIVE CONDOMMUM MAP - RESUBDIVISION OF 0.89 ACRE PORTION OF BLOCK 7, MAP OF MILLS ESTATE NO.3 SUBDIVISION- 1840 OGDEN DRIVE CONDOMINIUM PERMIT I have the following comments which need to be addressed prior to any action. I GENERAL: 1. Show proposed drainage system and indicate that all roof and site drainage shall go to street by gravity. Show direction of drainage on adjacent property to confirm that no drainage enters this site or else that drainage needs to be included in the on-site system. 2. Since this whole site is to be developed below street or adjacent grade, approvals will be conditioned upon installation of an emergency generator to power the sump pump,system; and the sump pump system shall be redundant in all mechanical and electrical aspects(i.e., dual pumps,controls,level sensors,etc.). Emergency generators must be so housed that they meet the City's noise requirement - see attached plan check sheet. Proposed pump and generator are to be shown. 3. . If large trees are.to be removed,other plantings shall be shown on plans to help ameliorate the removals with the approval of the Parks Department. 4. Show required seven foot(T)minimum clearances at parking garage floor areas not just floor to floor. Provide room for all pipings,ducts and fire sprinklers.Disabled parking shall have access and parking area at eight feet two inches (82")clear. 5. All utilities to this site must be installed underground. Any transformers needed for this site must be installed underground or behind the front setback on this site. 6. Sanitary sewer analysis is required for this project. The sewer analysis shall identify the project's impact to the City's sewer system and any sewer pump stations and identify mitigation measures. The analysis shall include the anticipated flows from the proposed 1 developments at 1800 Trousdale Drive(28 Unit Condominium)and 1818 Trousdale Drive (79 Unit Assisted Living Facility). If any improvements are required from these three developments,this project shall pay its portion of the costs-. 7. Sewer backwater protection certification is required. Contact Public Works -Engineering` Division at(650) 558-7230 for additional information. II SITE AND LANDSCAPE PLANS: 1 Curb, street elevations and a detailed driveway profile are needed. For flood protection,the driveways to all below-grade parking areas must have a high point either at property line or on site that is 12 inches above proposed flow line of street. Back of sidewalk elevation must be at 2%from projected top of curb through driveway. Transitions both up and then down at the street are required as are transitions at the lower level. Driveway slopeshall not exceed the 15%maximum slope. 2. It appears from plans that a turnaround area is not available at the proposed driveway on the north side of the property. No backing of vehicles will be allowed onto Ogden Drive directly across from Garden Drive. The proposed driveway shall be revised to correct this situation. , 3. Provide calculations to confirm the size of the proposed water service. Indicate the size on the project plans. 4. All irrigation systems and planting shall follow City's water conservation guidelines. 5. Rear landscape area shall drain to street or to a storm drainage system without pumping. 6. Show the location for the fire sprinkler connection that is proposed. All fire system work .shall conform to the City's current procedures for underground water systems. 7. All on site catch basins and drainage inlets shall be stencilled. All catch basins shall be protected during construction so no debris will be dumped into them. The City will provide a stencil. III PARKING: 1. Show underground and at-grade parking slab elevations. Maximum slope in any parking space is 5%. Show drainage pattern. 2. Provide all on site drainage inlets or the sump pump basin for the underground garage with a petroleum absorbent system for treating all drainage flows from the automobile parking areas. 3. Show callbox/intercom system to all units from driveway in front of security gate and at the top of the driveway so guests may have access to guest parking spaces. If no gate is planned, 2 install conduit to all units so that if gate is installed in the future,the system may be easily installed. 4. Show underground garage area vents on the plans. 5 Show which parking spaces belong to which unit. IV ARCHITECTURAL PLANS: 1. Show design of trashroom and indicate size of receptacles,including receptacles for recycling. Confirm sizes needed with BFI. 2. Elevator sump drainage shall go to sanitary sewer and shall be separate from groundwater system which is to go to the storm drainage system. 3. The sewer ejection system shall indicate the pit,ventilation, etc. Sewer ejection system must be on the emergency generator also. 4. Individual unit climate controls as well as separate shutoffs for gas,electric and water are required. VI TENTATIVE MAPS: I. A tentative condominium map is required to be filed prior to issuance of the Building Permit. The map shall conform to the Subdivision Map Act requirements. The latest preliminary title report of the subject parcel shall be submitted with the map. 2. Show exact building setbacks both below and above grade. 3. The CCR's for this map must be approved by the City Attorney and conform to all approval conditions and City Codes. Nam c: Owner,Architect FAWP5ITR ES\CONDOMAPRV W(REVISED 04/9/98) 3 City of Burlingame Planning Commission Unapproved Minutes July 24, 2006 • Clarify what is the logic on which downspouts have ornamental leader heads, should be carried throughout; • Not enough articulation on the right side elevation, elements appear tacked on; and • Concerned about the mass of the two chimneys, two are one too many, it creates an industrial feel; Commissioners requested that the applicant bring in response to these items;the project will be brought back at a time when the items are addressed. C. Terrones moved to continue the item until a time when the applicant has addressed the Commission's comments and there is space on an agenda. The motion was seconded by C. Deal. Chair Brownrigg called for a voice vote on the motion to continue. The motion passed on a 4-0-3 (Cers. Cauchi, Osterling and Vistica absent). Appeal procedures were advised. This item concluded at 8:57 p.m. 8. 1840 OGDEN DRIVE,ZONED TW—APPLICATION FOR MITIGATED NEGATIVE DECLARATION, TENTATIVE CONDOMINIUM MAP,DESIGN REVIEW,CONDOMINIUM PERMIT,SIDE SETBACK VARIANCE AND CONDITIONAL USE PERMIT FOR LOT COVERAGE FOR A NEW,4-STORY,45- UNIT RESIDENTIAL CONDOMINIUM WITH TWO LEVELS OF UNDERGROUND PARKING(ALEX NOVELL,BURLINGAME HILLS MANOR,LLC,APPLICANT AND PROPERTY OWNER AND TOBY LEVY,LEVY DESIGN PARTNERS,ARCHITECT)(36 NOTICED)PROJECT PLANNER: MAUREEN BROOKS Reference staff report July 24, 2006, with attachments. SP Brooks presented the report,reviewed criteria and staff comments.Thirty conditions were suggested for consideration,including the Mitigation Monitoring Plan. There were no questions of staff. Chair Brownrigg opened the public hearing. John Ward, 792 Willborough Road; Toby Levy, project architect, 90 South Park, San Francisco;John Hickey,60 South Market Street, San Jose; and Alex Novell, property owner represented the project, noting that this project provides an opportunity to fulfill the objectives of the North Burlingame/Rollins Road Specific Plan to provide high density housing and transit oriented development within walking distance of the Caltrain and BART station. The project architect reviewed the changes made to the plans to address the Commission's design comments,gave a lot of thought to the issue of the front"build-to" line, revised the front to have a 30"high stoop with a 2'-6" railing,total will be 5'-6"high,working with the intent of the requirement and compatibility with neighboring properties, residential building to the north still has a long life,is set back 15',the office building to the south will most likely be replaced using the TW regulations, this project will provide a transition between the two; living spaces on the first floor need some separation from the street for privacy,the porches will provide a semi- private area for bedrooms that are facing street, the activity at the stoops will enliven the street. She presented a materials board,noting that the design has been revised to incorporated stone rather than brick, will provide more texture and richness,and more vertical elements were added to complement the stone,the copper being used will keep its color,the cedar planks will only be used as railings for the porches,there will be a 6" recess for the windows to give depth, they will be edged with a thicker material, mechanical equipment on the roof will either be in a well or it will be screened;the landscape architect added a sink and bathroom near the courtyard,and the planting was modified to carry the curve of the planting to the front of the street, a bench was incorporated along the street. The architect continued,noting that have incorporated many energy efficient and sustainable elements,will not be full LEEDS compliant, but will embrace the concept where possible, the stone is manufactured in Napa, will use low VOC,non-toxic paints, the transformer will be housed in a Cedar enclosure, increased 10 City of Burlingame Planning Commission Unapproved Minutes July 24, 2006 the guest parking by having only one assigned space for each one bedroom unit,ask that condition No. 11 be modified, it now states that the designate spaces can only be assigned to owner,would like that revised to include"occupants," in case the units are rented. Commissioners asked: The stone finish proposed,will it be stucco stone? Yes. Looking at the fascia detail, note that the top of the fascia will be painted with a vented wood soffit,could that soffit be made of Cedar? Yes, it is not specified but could use Cedar. Like the change from brick to stone, nice palette proposed; where will the kids play, there are nearby schools but would have to cross busy streets to get there, should have some amenities for children on site. Hoping that the courtyard space will be used,there are only a few units facing into it,not meant for activities such as soccer,meant for quiet play,the grass area and the area under the trellis would be likely play areas,hoping residents will use the private decks and porches,on the south the patios extend over to cover the parking area,are fairly large,the courtyard area was not intended to include playground,but as an area for hanging out with kids,usually play yards are provided in projects with more units,the insurance the condominium association would require for the playground makes it infeasible for smaller projects such as this one, see this as an intergenerational project,will be some kids in the three- bedroom units, but generally see a lower number of families with children in this type of project. Commissioner's questions continued: Would the applicant be willing to consider having the affordable units run for 30 years rather than the 10 years required? The applicant noted that the issue of the inclusionary housing is a big one because of the cost, made the decision when application submitted not to propose 30 years because it was not financially viable,understand it is important,would be willing to propose 15 years as an option, it will add to the cost of the project,each suggestion made on its own is great,but they all add up and add to the project cost,willing to have the five units deed-restricted for 15 years,at this point,plan to retain the units as rentals, but want the option to be able to sell as affordable units if market conditions warrant. Appreciate that a restroom was added near the courtyard and the change in materials, could applicant explain the area where the side setback variance is required? The area where there is an encroachment in the side setback is limited to an area over the parking garage,could have left it open and not required a variance, but wanted to add deck to make it more desirable both for the neighbors and the residents. Concerned about the front setback conforming to the plan, Sunrise project was required to bring their building forward to comply. Commissioners noted that there is an opportunity for activity on these decks as well as to provide privacy from being directly on the street for these units,with the three distinct sets of steps, it will provide a connection to Ogden,units will be more desirable because of the buffer,and have two points of access, one from inside and one from outside. There were no further comments and the public hearing was closed. Commissioners noted that the applicant had done a good job addressing the Commission's comments, like the addition of a Cedar soffit under the fascia,would amend condition No. 10 to extend the affordability to 15 years, think the project has addressed the issue of the build-to line,the wall proposed creates a private space for the units,variance is reasonable because if this area were left uncovered,it would be a detriment to both the neighbors and the condominium residents;valid use of conditional use permit for lot coverage,are providing more open space in exchange for the added lot coverage,the environmental document adequately addresses the potential impacts of the project and provides mitigation, would like an amendment to Condition No. 11 that the assigned spaces be for unit owner or occupant,would also like to state that the vehicle shall be registered to the occupant and be operable. C.Deal moved to approve the application,by resolution,with the following amended conditions: 1)that the project shall be built as shown on the plans submitted to the Planning Department date stamped June 22, 11 City of Burlingame Planning Commission Unapproved Minutes July 24, 2006 2006, sheets A0.0 through A6.1,L1,L2,L2.1 and L2.2, and that the soffit material shall be Cedar; 2) that the maximum elevation at the top of the roof ridge shall not exceed elevation 100.93"as measured from the average elevation at the top of the curb along Ogden Drive(54.93')for a maximum height of 46-0",and that the top of each floor and final roof ridge shall be surveyed and approved by the City Engineer as the framing proceeds and prior to final framing and roofing inspections. The second level garage floor finished floor elevation shall be elevation 3 8.10; garage level one finished floor elevation shall be elevation 46.93'; first floor finished floor shall be elevation 57.43';second floor finished floor shall be elevation 67.43';third floor finished floor shall be elevation 77.43'; fourth floor finished floor shall be elevation 88.93'; and the top of ridge elevation shall be no more than 100.93'. Should any framing exceed the stated elevation at anypoint it shall be removed or adjusted so that the final height of the structure with roof shall not exceed the maximum height shown on the approved plans; 3) that any changes to the size or envelope of the building, which would include expanding the footprint or floor area of the structure, replacing or relocating windows or changing the roof height or pitch, shall be subject to Planning Commission review; 4) that the backflow prevention device shall be placed on the side of the courtyard where it will be hidden from both the street and project residents; 5) that the project shall incorporate the following features to comply with general environmental planning principles: a) the glazing on the south side of the building shall be minimized; b) overhangs and recesses shall be provided for the west facing windows; c) the materials for the stone finish shall be manufactured in Napa; d) the paints and interior finishes shall be low VOC;e) native plants shall be used for plant materials to the extent feasible; f) all appliances shall have energy star ratings; 6) that the conditions of the City Engineer's August 24, 2005, memo, the Chief Building Official's July 29, 2005, memo,the Fire Marshal's July 31,2005,memo,the NPDES Coordinator's August 15,2005,memo and the Recycling Specialist's August 1, 2005, memo shall be met; 7) that storage of construction materials and equipment on the street or in the public right-of-way shall be prohibited; 8) that prior to issuance of a building permit for the project,the applicant shall pay the first half of the North Burlingame Rollins Road Development fee in the amount of$14,685.93,made payable to the City of Burlingame and submitted to the Planning Department; 9) that prior to scheduling the final framing inspection for the condominium building,the applicant shall pay the second half of the North Burlingame Rollins Road Development fee in the amount of $14,685.93, made payable to the City of Burlingame and submitted to the Planning Department; 10) that prior to issuance of a building permit for the project,the applicant shall enter into an agreement with the City to establish the affordability of the five below market rate units required as apart of this project; the affordable units shall be retained as affordable for a period of fifteen years; the applicant shall also submit a below market rate housing plan which shall describe in detail the applicant's proposal for meeting the inclusionary housing requirements as required by Chapter 25.63 of the Burlingame Municipal Code;the applicant shall enter into an agreement with a third-party non-profit organization approved by the City to administer the program; 11) that 'guest parking stall' shall be marked on the eight guest parking spaces and designated on the final map and plans,these stalls shall not be assigned to any unit,but shall be owned and maintained by the condominium association, and the guest stalls shall always be accessible for parking and not be separately enclosed or used for resident storage; and that in addition to the eight guest parking stalls, 85 parking spaces shall be available on site for owners,and none of the on-site parking shall be rented,leased or sold to anyone who does not own or occupy a unit on the site;and that the vehicles shall be registered to the occupant of a unit and shall be operable; 12) that the Covenants Conditions and Restrictions(CC&Rs)for the condominium project shall require that the eight guest parking stalls shall be reserved for guests only and shall not be used by condominium residents; 13) that the final inspection shall be completed and a certificate of occupancy issued before the close of escrow on the sale of each unit; 14) that the developer shall provide to the initial purchaser of each unit and to the board of directors of the condominium association, an owner purchaser manual which shall contain the name and address of all contractors who performed work on the project, copies of all warranties or guarantees of appliances and fixtures and the estimated life expectancy of all depreciable component parts of the property,including but 12 City of Burlingame Planning Commission Unapproved Minutes July 24, 2006 not limited to the roof, painting, common area carpets, drapes and furniture; 15) that the trash receptacles, furnaces, and water heaters shall be shown in a legal compartment outside the required parking and landscaping and in conformance with zoning and California Building and Fire Code requirements before a building permit is issued; 16) that any security gate system across the driveway shall be installed a minimum 20'-0' back from the front property line; the security gate system shall include an intercom system connected to each dwelling which allows residents to communicate with guests and to provide guest access to the parking area by pushing a button inside their units; 17) that prior to scheduling the foundation inspection a licensed surveyor shall locate the property corners, set the building envelope; 18) that prior to underfloor frame inspection the surveyor shall certify the first floor elevation of the new structure(s) and the various surveys shall be accepted by the City Engineer; 19) that prior to scheduling the roof deck inspection, a licensed surveyor shall establish the height of the roof ridge and provide certification of that height; 20) that trash enclosures and dumpster areas shall be covered and protected from roof and surface drainage and that if water cannot be diverted from these areas, a self-contained drainage system shall be provided that discharges to an interceptor; 21) that this project,shall comply with the state-mandated water conservation program, and a complete Irrigation Water Management and Conservation Plan together with complete landscape and irrigation plans shall be provided at the time of building permit application; 22) that all site catch basins and drainage inlets flowing to the bay shall be stenciled. All catch basins shall be protected during construction to prevent debris from entering; 23) that project approvals shall be conditioned upon installation of an emergency generator to power the sump pump system; and the sump pump shall be redundant in all mechanical and electrical aspects (i.e., dual pumps, controls, level sensors, etc.). Emergency generators shall be housed so that they meet the City's noise requirement; 24) that demolition or removal of the existing structures and any grading or earth moving on the site shall not occur until a building permit has been issued and such site work shall be required to comply with all the regulations of the Bay Area Air Quality Management District; 25) that the project shall meet all the requirements of the California Building and Uniform Fire Codes, 2001 Edition, as amended by the City of Burlingame; 26) that the applicant shall implement feasible control measures for construction emissions of PMIO. Using the methodology outlined in the BAAQMD CEQA Guidelines, for projects with less than 4 acres per day of ground disturbance during construction, basic control measures such as watering, covering loose materials during transport, and sweeping would be sufficient to reduce PMIo to less-than-significant levels. Implementation of Mitigation Measure E-1 below would reduce potentially significant localized dust emissions to a less-than-significant level; a) water all active construction areas at least twice daily; b) cover all trucks hauling soil, sand, and other loose materials or require all trucks to maintain at least two feet of freeboard; c) pave, apply water three times daily, or apply (non-toxic) soil stabilizers on all unpaved access roads, parking areas and staging areas at construction sites; d) sweep daily (with water sweepers) all paved access roads, parking areas and staging areas at construction sites; e) sweep streets daily (with water sweepers) if visible soil material is carried onto adjacent public streets; 27) that the applicant shall conduct pre-construction surveys for nesting birds and implement protective measures if identified. The removal of trees, shrubs, or weedy vegetation shall be avoided during the February 1 through August 31 bird nesting period to the extent possible. If no vegetation or tree removal is proposed during the nesting period, no surveys shall be required. If it is not feasible to avoid the nesting period, a survey for nesting birds should be conducted by a qualified wildlife biologist no earlier than 14 days prior to the removal of trees, shrubs, grassland vegetation, buildings, grading, or other construction activity. Survey results shall be valid for 21 days following the survey. The area surveyed shall include all construction sites, access roads, and staging areas, as well as areas within 150 feet outside the boundaries of the areas to be cleared or as otherwise determined by the biologist. In the event that an active nest is discovered in the areas to be cleared, or in other habitats within 150 feet of construction boundaries, clearing and construction shall be postponed for at least two weeks or until a wildlife biologist has determined that the young have fledged (left the nest), the nest is vacated, and there is no evidence of second nesting attempts; 28) that the applicant shall implement 13 City of Burlingame Planning Commission Unapproved Minutes July 24, 2006 best management practices to reduce construction noise. The City shall ensure the project applicant incorporates the following practices into the construction documents to be implemented by the project contractor; a) maximize the physical separation between noise generators and noise receptors. Such separation includes, but is not limited to, the following measures: use heavy-duty mufflers for stationary equipment and barriers around particularly noisy areas of the site or around the entire site; use shields, impervious fences, or other physical sound barriers to inhibit transmission of noise to sensitive receptors; locate stationary equipment to minimize noise impacts on the community;and minimize backing movements of equipment;use quiet construction equipment whenever possible;impact equipment(e.g.,jack hammers and pavement breakers) shall be hydraulically or electrically powered wherever possible to avoid noise associated with compressed air exhaust from pneumatically-powered tools. Compressed air exhaust silencers shall be used on other equipment. Other quieter procedures, such as drilling rather than using impact equipment, shall be used whenever feasible; prohibit unnecessary idling of internal combustion engines;select routes for movement of construction-related vehicles and equipment in conjunction with the Burlingame Planning Department so that noise-sensitive areas,including residences and schools,are avoided as much as possible; the project sponsor shall designate a "disturbance coordinator" for construction activities. The coordinator would be responsible for responding to any local complaints regarding construction noise and vibration. The coordinator would determine the cause of the noise or vibration complaint and would implement reasonable measures to correct the problem; the construction contractor shall send advance notice to neighborhood residents within 50 feet of the project site regarding the construction schedule and including the telephone number for the disturbance coordinator at the construction site; 29) that the applicant shall implement measures to reduce construction vibration. The City shall ensure the project applicant incorporates the following practices into the construction documents to be implemented by the project contractor; the project sponsor shall require that loaded trucks and other vibration-generating equipment avoid areas of the project site that are located near existing residential uses to the maximum extent compatible with project construction goals; 30) that the applicant shall conduct protocol and procedures for encountering cultural resources. The following provisions shall be incorporated into the grading and construction contracts to address the potential to encounter currently unknown cultural resources: prior to the initiation of construction or ground-disturbing activities, all construction personnel shall receive environmental training that will include discussion of the possibility of buried cultural and paleontological resources,including training to recognize such possible buried cultural resources,as well as the procedure to follow if such cultural resources are encountered; if potential historical or unique archaeological resources are discovered during construction, all work in the immediate vicinity shall be suspended and alteration of the materials and their context shall be avoided pending site investigation by a qualified archaeological or cultural resources consultant retained by the project applicant. The immediate vicinity wherein work shall be suspended shall be approximately 50 feet from the discovery or within an appropriate distance to be determined by the archaeologist or cultural resources consultant. Construction work shall not commence again until the archaeological or cultural resources consultant has been given an opportunity to examine the findings, assess their significance, and offer proposals for any additional exploratory measures deemed necessary for the further evaluation of and/or mitigation of adverse impacts to any potential historical resources or unique archaeological resources that have been encountered.;if the find is determined to be an historical or unique archaeological resource, and if avoidance of the resource would not be feasible, the archaeological or cultural resources consultant shall prepare a plan for the methodical excavation of those portions of the site that would be adversely affected. The plan shall be designed to result in the extraction of sufficient volumes of non-redundant archaeological data to address important regional research considerations. The work shall be performed by the archaeological or cultural resources consultant, and shall result in detailed technical reports. Such reports shall be submitted to the California Historical Resources Regional Information Center. Construction in the vicinity of the find shall be accomplished in accordance with current professional standards and shall not recommence until this work is completed;the 14 City of Burlingame Planning Commission Unapproved Minutes July 24, 2006 project applicant shall assure that project personnel are informed that collecting significant historical or unique archaeological resources discovered during development of the project is prohibited by law. Prehistoric or Native American resources can include chert or obsidian flakes,projectile points,mortars,and pestles; and dark friable soil containing shell and bone dietary debris,heat-affected rock,or human burials. Historic resources can include nails,bottles,or other items often found in refuse deposits;if human remains are discovered, there shall be no further excavation or disturbance of the discovery site or any nearby area reasonably suspected to overlie adjacent human remains until the project applicant has complied with the provisions of State CEQA Guidelines Section 15064.5(e). In general, these provisions require that the County Coroner shall be notified immediately. If the remains are found to be Native American,the County Coroner shall notify the Native American Heritage Commission within 24 hours. The most likely descendant of the deceased Native American shall be notified by the Commission and given the chance to make recommendations for the remains. If the Commission is unable to identify the most likely descendent, or if no recommendations are made within 24 hours, remains may be re-interred with appropriate dignity elsewhere on the property in a location not subject to further subsurface disturbance. If recommendations are made and not accepted, the Native American Heritage Commission will mediate the problem. The motion was seconded by C. Auran. Chair Brownrigg called for a voice vote on the motion to approve with amended conditions. The motion passed on a 4-0-3 (Cers.Cauchi,Osterling and Vistica absent). Appeal procedures were advised. This item concluded at 9:40 p.m. IX. DESIGN REVIEW STUDY ITEMS There were no design review items for review. 15 CITY AGENDA 9d °� ITEM# BURLINGAME STAFF REPORT MAG. DATE 9/5/2006 r TO: Honorable Mayor and Council SUBMITTP BY DATE: August 28, 2006 APPROVE BY- FROM: Y FROM: Larry E. Anderson, City Attorney SUBJECT: APPROVE RESPONSES TO 2005-2006 GRAND JURY REPORT AND AUTHORIZE THE MAYOR TO SIGN THEM ON BEHALF OF THE CITY COUNCIL RECOMMENDATION: Approve proposed responses and authorize Mayor to sign the responses on behalf of the City Council. DISCUSSION: The July 19,2006, filing of the 2005-2006 San Mateo Grand Jury contained two sets of findings and recommendations that applied to the City of Burlingame. A copy of the sections is attached for the Council's convenience. Pursuant to State law,the City Council has 90 days to respond to the report by filing a written response with Judge Stephen Hall, Grand Jury Judge of the San Mateo County Superior Court. The first section concerns "Disaster Preparedness Training for the Residents of Cities in San Mateo County." The Central Fire Department is the lead agency on disaster preparedness for the City of Burlingame. The proposed response accepts the finding of the Grand Jury,but only accepts the recommendation of City Council training in citizen emergency response teams and not entirely the goal of at least five percent households' being trained. Instead, the Central Fire Department recommends a more inclusive and flexible training program to reach more citizens in the community. The second section concerns "Preparing for FCC-Mandated Changes in County Law Enforcement Radio Networks." The County and cities are working together to meet the 2013 changeover to narrowband equipment. The proposed response accepts the findings and recommendations of the Grand Jury. Attachment Proposed Responses Sections of 2005-2006 Grand Jury Report Distribution Chief of Police Chief, Central Fire Department �� CITY G BURUNGAME AEoge ,00 ORATED JUNE 6 The City of Burlingame CITY HALL—501 PRIMROSE ROAD TEL: (650)558-7204 BURLINGAME,CALIFORNIA 94010-3997 FAX: (650)556-9281 WEB: www.burlingame.org September 6, 2006 Hon. Stephen M. Hall Judge of the Superior Court Hall of Justice 400 County Center, 2nd Floor Redwood City, CA 94063-1655 Re: Disaster Preparedness Training for the Residents of Cities in San Mateo County Dear Judge Hall: Pursuant to Penal Code section 933, the Burlingame City Council provides the following comments to the 2005-2006 Civil Grand Jury report dated July 19, 2006. The City agrees with the finding of the Grand Jury that CERT programs can provide excellent training to citizens and that the Neighborhood Watch programs may be a good source of interested persons. The City also agrees with the recommendation that the City Council participate in CERT training and will implement the recommendation over the coming year. However, the City does not agree with the goal of training 5% of households in the CERT training program. As explained in the attached memorandum from the Central Fire Department, the City believes that a more expansive and flexible training program is needed that would provide meaningful training to even more household members. Sincerely, Cathy Baylock, Mayor cc: City Council Chief, Central Fire Department City of Burlingame Response to Grand Jury Report Re: Disaster Preparedness Training for the Residents of Cities in San Mateo County Issue The San Mateo County Civil Grand Jury questioned whether the cities of San Mateo County have adequately prepared their residents to deal with major disasters. The Grand Jury suggests that Community Emergency Response Teams (CERT) are a critical means of training individuals for an immediate response in a disaster. The Grand Jury also points out that the implementation of CERT training by cities and towns in San Mateo County is mixed, at best. Grand Jury Recommendation The San Mateo County Grand Jury recommends that every city in San Mateo County establish an active and ongoing CERT training program, with the initial goal of training 5% of its households. Using the 2005 census figures, Burlingame would have to train approximately 600 households. Background In the early 1990's after the experience of the 1989 Loma Prieta Earthquake the Burlingame Fire Department developed a CERT training program and trained approximately 180 people. At that time the training was modeled after the City of San Francisco's NERT program. The training was administered in five 2 %hour segments over a period of 5 weeks. There were 5 subjects covered: • Emergency Preparedness, Earthquake Preparedness • Fire Safety, Hazmat • Basic First Aid, Triage • Light Search&Rescue • A Hands on Exercise The initial training was very well received by those who attended but there was no concerted effort to organize those that were trained into neighborhood teams. Many of those trained were living in apartments and rental units; it became very difficult to contact them just a few years after they completed their training. As years passed and apathy set in it became very difficult to get people to sign up for the CERT class. In 1995, the Burlingame Fire Department offered classes in cooperation with San Mateo and Millbrae. Even with that only 2 or 3 people would sign up. At that point the program became inactive. In recent years, the City has put an emphasis on training our City workers as disaster workers to prepare them to respond in non-traditional roles when called upon in an emergency or disaster. The City believes that it is well prepared to respond to any emergency or disaster with a workforce that is well prepared. The City feels that providing basic disaster preparedness training and information to individual families is the first step in the process and can be accomplished in a two to three hour session. Burlingame has offered this class and has had limited attendance. The City does agree that the higher level of training that is provided to CERT teams would be a distinct advantage. There is a greater time commitment(12 to 15 hours) and as described above, keeping CERT team members current and organized by neighborhoods has been problematic. San Mateo County OES has received a grant to provide CERT training at no cost to residents of San Mateo County that can benefit us. Centralizing this training would allow for larger class attendance, standardization of instruction, and a larger pool of experienced instructors. The City believes that centralizing and standardizing CERT training is in the best interest of all of the cities in the county. We know that when a disaster occurs, we will have to rely on our neighboring jurisdictions for assistance. This became very apparent when a team of 75 government workers, representing many of the cities and the county, attended a week long disaster training class sponsored by FEMA at Emmitsburg, MD. During the exercise it became clear that regionalizing resources is necessary to be successful in dealing with large disasters. To mange this regional approach standardization is an extraordinary benefit. Central County Fire Department Recommendations for the City of Burlingame • The Department recommends that the City and the Department continue to offer two to three hour Emergency Preparedness classes to provide residents with the basic information needed to deal with an emergency or disaster and encourage them to attend CERT training. • The department recommends that the two agencies improve our marketing of these classes to encourage as many residents as possible to attend. • We recommend that CERT training be standardized and administered through San Mateo County OES in cooperation with local jurisdictions. • The Department recommends that the two agencies identify neighborhood leaders that would be willing to participate in the training and recruit neighbors to join them. • The Department recommends that once trained the two agencies provide local ongoing training and exercises to keep their skills and knowledge current and maintain their interest. • The Department recommends that the City Council consider attending CERT Training along with their neighbors as recommended in the Grand Jury Report. � CITY ko BURLINGAME I %Lcoq.. 900 ORATED JUNE 0 The City of Burlingame CITY HALL—501 PRIMROSE ROAD TEL: (650)558-7204 BURLINGAME,CALIFORNIA 94010-3997 FAX: (650)556-9281 WEB: www.burlingame.org September 6, 2006 Hon. Stephen M. Hall Judge of the Superior Court Hall of Justice 400 County Center, 2nd Floor Redwood City, CA 94063-1655 Re: Preparing for FCC-Mandated Changes in County Law Enforcement Radio Networks Dear Judge Hall: Pursuant to Penal Code section 933, the Burlingame City Council provides the following comments to the 2005-2006 Civil Grand Jury report dated July 19, 2006. On behalf of the City of Burlingame, we would first like to express my appreciation for the research and recommendations in the recent Grand Jury report, "Preparing for FCC-Mandated Changes in County Law Enforcement Radio Networks."The findings are timely, as many cities continue to prepare and refine future changes insuring that our communities are made as safe as possible when faced with disasters. The City of Burlingame acknowledges the findings of the Grand Jury and agree with both the conclusion and the recommendations of the study. The Grand Jury's research indicates that our public safety departments (police and fire) are currently using an analog radio system. Based on the information provided thus far, the City of Burlingame public safety departments' will be working to comply with the FCC mandated bandwidth with our current analog system by the year 2013. The City of Burlingame will do this by ensuring: 1) That all communications equipment performs satisfactorily in all parts of our city, and we will cooperate with other cities, and 2) We work cooperatively with the Sheriff and the County Information Services Department(ISD)to ensure that communications systems in the County will Judge Stephen M. Hall Re: Preparing for FCC-Mandated Changes in County Law Enforcement Radio Networks September 6, 2006 Page 2 comply with the FCC regulations that take effect in 2013 (and match or exceed the performance of our existing radio systems). As with many cities, Burlingame will need to replace our current mobile and portable radios. The San Mateo County Police Chiefs and Sheriff's Association Technology Committee, is working on a development plan for this radio transition throughout San Mateo County. It is hoped that this plan, along with equipment recommendations, will be completed within the next year. This will insure that new equipment and related programming is in place well prior to the 2013 FCC compliance date. Sincerely, Cathy Baylock, Mayor cc: City Council Chief of Police Issue Background Findings Conclusions Recommendations Responses Attachments Summary of Disaster Preparedness Training for the Residents of Cities in San Mateo County A disaster in the making Issue Are the cities of San Mateo County adequately preparing their residents to deal with major disasters? Summary As Americans learned with Katrina,residents must rely on themselves during the first hours and days of a major disaster. Individual actions can determine whether or not one has food, shelter, medicine, or even life itself. Community Emergency Response Teams (CERT)are a critical means of training individuals for an immediate response in a disaster. Implementation of CERT training by cities and towns in San Mateo County is mixed, at best. The San Mateo County Civil Grand Jury(Grand Jury)recommends that every city in San Mateo County establish an active and ongoing CERT training program, with the initial goal of training 5% of its households. 5 SRT k� M Y4 Y� 6 •�IifRMs� Disaster Preparedness Training for the Residents of Cities in San Mateo County A disaster in the making Issue Are the cities of San Mateo County adequately preparing their residents to deal with major disasters? Background As Americans learned from Katrina,people must rely on themselves during the first hours and days of a major disaster. It takes considerable time for a city, state, or national disaster relief organization to respond to cataclysmic events. Individual actions can determine whether or not one has food, shelter, medicine, or even life itself. Often ignored is the advanced training and preparation that is essential to bridge the gap until help arrives. Investigation The San Mateo County Civil Grand Jury (Grand Jury) contacted 21 cities and towns and interviewed police and fire personnel to ascertain whether they had disaster preparedness programs designed for training individuals. Findings Community Emergency Response Teams (CERT) are highly organized and monitored programs developed to provide specific and coherent disaster preparedness training of individual residents. Various cities use different names and acronyms for their community emergency response programs,but all the programs are based on the original Community Emergency Response Team program that originated in Los Angeles and was adopted as a standard by the Federal Emergency Management Agency(FEMA). Menlo Park has retained the 6 name CERT for its program,while Woodside calls its program CERPP for Citizens Emergency Response and Preparedness Program. Other cities use such acronyms as NEST for Neighborhood Emergency Services Team(La Honda),NERT for Neighborhood Emergency Response Team(San Francisco), and PANDA for Palo Alto Neighborhood Disaster Activity. CERT programs are conducted by fire department personnel and benefit from close cooperation with police departments and coordination support from San Mateo County's Office of Emergency Services (OES). This training is free to citizen participants and consists of several modules usually taught in weekly evening classes. The number and topics of the modules vary from one city to another. For example, Menlo Park's six subjects include: • Emergency Preparedness, Earthquake Preparedness • Fire Safety, Hazmat • Basic First Aid, Triage • Light Search and Rescue • Incident Command System • A Hands-On Exercise A survey of the cities and municipalities in San Mateo County(County) found the following: Number of city CERT Program Individuals Trained Atherton Yes 30 Belmont Yes 38 Brisbane Yes 65 Broadmoor No 0 -Burlingame Inactive 0 Colma No 0 Daly City Yes 40 East Palo Alto Yes 50 Foster City Yes 214 Half Moon Bay No 0 -Hillsborough Yes 50 Menlo Park Yes 300 Millbrae Inactive 0 Pacifica No 0 Redwood City Yes (New In2006) 0 San Bruno Inactive 0 San Carlos Yes 36 San Mateo Yes (New In 2006) 0 South San Francisco Yes (New In2006) 0 Woodside Fire District(Woodside, Yes 300+ Portola Valley, and nearby County) Total 1123 7 The total trained is approximately 0.1% (or 1 in 1,000) of the population of San Mateo County. Expressed another way, only 0.4% of all households in the County have trained residents, ranging from more than 5% in the Woodside Fire District to 0%in many cities. CERT programs often turn to Neighborhood Watch programs (Watch programs)to recruit residents to train in emergency preparedness. Watch programs are coordinated by police departments and are primarily used for crime prevention. These programs have existed for several years and are widespread throughout the County. They take several forms and vary in physical boundaries, membership, organization, goals, and scope. Some Watch Programs have begun limited disaster preparedness training, covering such topics as: • Where to meet in an emergency • Where non-ambulatory residents live • Communications basics Conclusions Community Emergency Response Teams (CERT)programs provide excellent training for local residents and instructs them how to prepare for and respond to local disasters. Very little of this training, however, is actually carried out. Only 1,123 individuals in the County have been trained and, of these, 800 reside in only three communities. Indeed, 10 out of the 21 cities and municipalities in the County have not trained a single individual. The more common Neighborhood Watch programs could provide a greater cadre of people interested in CERT training. Recommendations 1. The San Mateo County Civil Grand Jury recommends that the city council of every city and town in San Mateo County establish and promote an active and ongoing CERT training program with the initial goal of training 5% of its households. 2. Because leadership matters the San Mateo County Civil Grand Jury recommends that: 2.1. All members of the Board of Supervisors become CERT trained as a demonstration of their commitment to this critical individual effort. 2.2. All members of the city council of every city and town in San Mateo County become CERT trained as a demonstration of their commitment to this critical individual effort. 8 �L�uTy� �'sTs►�+� Issue Background Findings Conclusions Recommendations Responses Attachments Summary of Preparing for FCC-Mandated Changes in County Law Enforcement Radio Networks Issue Statement How can San Mateo County best prepare for mandated changes to its public safety radio networks? Summary As part of an inquiry into emergency preparedness,the San Mateo County Civil Grand Jury(Grand Jury) examined the radio communication capabilities of the County Sheriff and local police departments. The Jury interviewed radio technical specialists and a cross-section of law enforcement personnel to ascertain the County's communications capability. During the investigation, the Grand Jury learned of an FCC-mandated bandwidth change that will take effect on January 1, 2013. The Grand Jury found that the existing law enforcement radio communication system functions satisfactorily, but that this system must change prior to January 1, 2013. The report recommends actions needed to prepare for these changes. 28 Preparing for FCC-Mandated Changes in County Law Enforcement Radio Networks Issue Statement How can San Mateo County best prepare for mandated changes to its public safety radio networks? Background As part of an inquiry into emergency preparedness, the San Mateo County Civil Grand Jury(Grand Jury) examined the radio communication capabilities of the Sheriff and local police departments. The pertinent Federal Communications Commission(FCC) regulations apply to law enforcement, fire, and ambulance service,but this report deals only with law enforcement communications. San Mateo County's digital' radio communication network was built in 2001-2004 at a cost of approximately$24 million. The network uses state-of-the-art technology, is resilient in case of hardware failures, and can be expanded to accommodate additional users. A consequence of this technology is the complexity and high cost of the receiving/transmitting stations and the mobile radios. The cost of these stations might be one reason that there are far fewer digital receivers in the populated areas than there are analog receivers. The network is operated by the Information Services Department(ISD) and is used by county departments, the Sheriff, and the Redwood City Police Department. The digital radio network is operated as an enterprise and users pay a service fee. San Mateo County also operates and maintains four analog mutual-aid radio channels, accessible to all law enforcement agencies for large-scale or county-wide operations. Eighteen local police departments in the county rely on the many mature local analog systems that they own. In the last two decades most of these departments have installed multiple analog receivers in their jurisdictions to support the increased use of handheld 1 See Appendix A for a glossary of terms. 2 See Appendix B for a list of cities. 29 radios. This is significant because handheld radios transmit at much lower power than do mobile (car)radios and must be nearer to a receiver to work satisfactorily. The present radio networks will have to change within the next six years to comply with the FCC decision to change the assignment of public safety radio channels. These channels currently are 25 kHz wide (wideband),but since the number of radio users is increasing, the FCC plans to reduce the width of each channel to 12.5 kHz(narrowband) allowing two conversations to take place where only one previously fit. All law enforcement radio users must switch to narrowband equipment by January 1, 2013. Investigation The initial purpose of the investigation was to follow up on media reports that the County's digital radio network had experienced problems due to software changes in 2005. As the investigation progressed, the focus changed to the issue of the impending shift to narrowband radio equipment. In the course of the investigation the Grand Jury interviewed a cross-section of law enforcement personnel and radio technical specialists. Findings • All law enforcement personnel interviewed stated that the county-wide digital radio network does not currently perform as well as expected. The initial trial of digital radios by the Redwood City Police Department was marred by coverage gaps and the poor performance of handheld radios inside buildings. The Redwood City Police Department has subsequently switched to the digital radio network and is working with ISD to optimize its performance in Redwood City. • The proponents of the digital network in ISD believe the following. o The digital system offers capabilities not available with analog equipment, e.g., message encryption and data transmission. o Analog radio equipment will not perform as well as digital equipment with narrowband channels. o Their current efforts to improve system performance will correct both the real and perceived shortcomings. • Most of the local police departments are reluctant to forsake their existing analog radio systems and migrate to the County's digital system because the digital system does not perform as well as their existing systems. • It is critically important that handheld radios function properly in all locations, including within buildings. Most local police departments have installed enough analog receivers to guarantee satisfactory performance of their current systems. 30 • Some local police departments have purchased analog radios that are capable of either wide or narrowband operation, and those agencies have stated that they plan to convert their radios to narrowband channels when necessary, i.e., before 2013. • Local police departments have conducted some experiments with narrowband channels, and the results show that they can expect to successfully convert their existing analog networks to conform to the FCC mandate. • There is a significant difference in the cost of the two types of radio: a mobile radio suitable for use on the county digital network costs roughly three times as much($3500 vs. $1200) as an analog radio used by local police departments. A digital receiving/transmitting station costs more than an analog station. The station recently added atop the Hall of Justice cost approximately $500,000. • When officers from different local police departments communicate by radio, their conversations must travel over the County digital network. The call originates from a handheld or mobile radio and is transmitted as an analog signal to a base station. There the signal is digitized and transmitted over the County digital network to a base station in the second jurisdiction. The signal is then converted back to analog and transmitted to an officer in the field. • The typical life of base station radios is 12 to 15 years. Mobile radios typically last seven to ten years and handheld radios five to seven years. Analog radio technology is mature and will be less commonly used in 20 years. Digital radio technology is much newer and is still evolving. It is expected to become less expensive in the future and it may eventually replace analog technology. Conclusions • It is essential that the acknowledged performance shortcomings of the County's digital radio network be corrected so that the safety of officers in the field is not compromised. • Local police departments are correct to insist that any radio technology they employ must provide excellent performance with both mobile and handheld radios. • The analog radio users that plan to convert their radios to narrowband operation need to know with certainty that narrowband analog equipment will perform satisfactorily and meet future requirements. 31 • The proponents of the digital radio network and the users of the many analog radio networks disagree on whether analog radios will perform satisfactorily with narrowband channels • Given the interdependence of the radio users and the climate of changing radio technology, the parties involved need to manage the evolution of the public safety communication system with minimum disruption and maximum efficiency Recommendations 1. The Grand Jury recommends that the Board of Supervisors ensure the following: 1.1 The Information Services Department vigorously pursues its current efforts to improve the performance of the County's digital radio system. 1.2 The Sheriff and ISD work together with local police departments to ensure that communication systems in the County will comply with the FCC regulations that take effect in 2013 and will match or exceed the performance of existing radio systems. 2. The Grand Jury also recommends that the City Council of every city or town that plans to employ narrowband analog radios in 2013 should ensure that that equipment will perform satisfactorily in all parts of their jurisdiction. 3. The City Council of every city or town should ensure that its city cooperates with other cities and with the Sheriff and ISD to ensure that communication systems in the County will comply with the FCC regulations that take effect in 2013 and will match or exceed the performance of existing radio systems. 32 Appendix A Glossary of Terms Analog An automobile fuel gauge with a needle is an analog device; it displays full, empty, and all points in between. The value displayed is variable and continuous. An analog radio emits a continuous electromagnetic carrier wave, and information is transmitted by modulating (changing) either the amplitude (hence AM) or frequency (FM) of the carrier wave. Digital An automobile fuel warning light is a digital device; it has only two states, on or off. If the light is off there is fuel in the tank; if the light is on the tank is almost empty. The warning light cannot indicate that the tank is one-half or one-quarter full. A digital radio also emits an electromagnetic wave,but instead of the continuous, varying wave used in analog radio, the digital wave is interrupted. Information is transmitted by timing the interruptions or breaks in the carrier wave. FCC-Mandated Changes The FCC requires that Public Safety Radio Pool licensees operating in the 150-174 MHz and 421-512 MHz bands migrate to narrowband (12.5 kHz)technology by January 1, 2013. Additionally, applications for new licenses or expansion of existing licenses using wideband (25 kHz)technology will not be accepted after January 1, 2011. Manufacture or importation of wide- band equipment will be prohibited on January 1, 2011. ISD The Information Services Department provides a variety of information technology and computer application services to County departments. The Communication Services Division of ISD plans, designs, and supports the County digital radio network. (The digital radio network is actually owned by the Joint Powers Authority composed of San Mateo County and all the cities in the county.) Public Safety Radio This term, as used by the FCC, includes law enforcement, fire, ambulance, and other first response services. In San Mateo County, all fire departments use radio frequencies in the 154-155 MHz range, known as high band VHF. The emergency response ambulance service uses the county's digital radio network, as does the Public Works Department. The Sheriff's Department uses the county digital radio network while the local police departments use analog radios, all of which operate in the 470-512 MHz frequency range known as T-band UHF. 33 Appendix 6 Police Department Radio Type Department Radio Type Remarks Town of Atherton analog City of Belmont analog City of Brisbane analog Township of Broadmoor analog City of Burlingame analog Town of Colma analog City of Daly City analog City of East Palo Alto analog City of Foster City analog City of Half Moon Bay analog Town of Hillsborough analog City of Menlo Park analog City of Millbrae analog City of Pacifica analog Town of Portola Valley digital Sheriff provides law enforcement services City of Redwood City digital City of San Bruno analog City of San Carlos analog City of San Mateo analog City of South San Francisco analog Town of Woodside digital Sheriff provides law enforcement services 34 CITY 0 J' J BURUNGAME m X09 �o oFATM 4V ' The City of Burlingame CITY HALL—501 PRIMROSE ROAD TEL: (650)558-7204 BURLINGAME,CALIFORNIA 94010-3997 FAX: (650)556-9281 WEB: www.burlingame.org September 6, 2006 Hon. Stephen M. Hall Judge of the Superior Court Hall of Justice 400 County Center, 2nd Floor Redwood City, CA 94063-1655 Re: Disaster Preparedness Training for the Residents of Cities in San Mateo County Dear Judge Hall: Pursuant to Penal Code section 933, the Burlingame City Council provides the following comments to the 2005-2006 Civil Grand Jury report dated July 19, 2006. The City agrees with the finding of the Grand Jury that CERT programs can provide excellent training to citizens and that the Neighborhood Watch programs may be a good source of interested persons. The City also agrees with the recommendation that the City Council participate in CERT training and will implement the recommendation over the coming year. However, the City does not agree with the goal of training 5% of households in the CERT training program. As explained in the attached memorandum from the Central Fire Department, the City believes that a more expansive and flexible training program is needed that would provide meaningful training to even more household members. Sincerely, Cathy Baylock, Mayor cc: City Council Chief, Central Fire Department Al� CITko^ STAFF REPORT BURLINGAME AGENDA ITEM# 9e coq 90 MTG. �NATEC JUNE 6' DATE September 5,2006 TO: HONORABLE MAYOR AND CITY COUNCIL SUBMI D BY DATE: September 5,2006 / AP OVED ,AY/ FROM: Jesus Nava, Finance Director/Treasurer BY SUBJECT: APPROVAL OF PROFESSIONAL SERVICES AGRE ENT FOR PARKING CITATION PROCESSING Recommendation: That the City Council authorize the City Manager to execute a contract with Turbo Data Systems, Inc. for Parking Citation Processing and Adjudication Services for an initial period of five (5) years with the option to extend the agreement for an additional three (3) years. Turbo Data Systems, Inc. was the successful respondent to the Request for Proposals (RFP) issued by the San Mateo County Finance Officers Group (SAMFOG). Turbo Data Systems is the current provider of parking citation processing services for the City of Burlingame. Background: In 1999, cities in San Mateo County that issue parking citations came together to request proposals for parking citation processing services. A change in State law decriminalized parking citations and the county court system transferred responsibility for processing parking citations and collection of fines to local agencies. SAMFOG took responsibility for coordinating with city police departments to ensure that the RFP addressed all necessary law enforcement requirements. Daly City served as lead agency and prepared and managed the RFP process. Daly City issues the highest volume of parking citations in San Mateo County. Turbo Data Systems Inc. was selected as the best respondent and all agencies within San Mateo County entered into individual contracts with the firm. The contracts expired on June 30, 2005. Turbo Data renewed the contracts under the same terms and conditions for an additional year. Given that the initial contract term had expired, SAMFOG determined that it was in the best interest of member cities to issue a new RFP to be sure they were receiving the best service and pricing. Discussion: The Daly City Finance Director managed the new RFP process. With the approval of SAMFOG, a consultant was hired to update the RFP and to manage the receipt and evaluation of the respondents. Four vendors were identified and initially all expressed interest in responding. Only two vendors submitted proposals. S:\Turbo Data Citation Processing\FY07-New Five Year Agreement\City Council Agenda Report.doc 1 The procurement consultant reviewed the proposals and consulted with cities that produce more than five percent of the parking citation volume within the County. This included Burlingame. The cities determined that entering into a new contract with the current vendor, Turbo Data Inc., would serve their best interests given that there would be no disruption in service or need to convert to a new vendor's technology(software and hardware—handheld devices). The consultant's review showed that service,price and technology were essentially equal between the two respondents. Turbo Data's proposed rates were in aggregate identical to the competing vendor's rates, and significantly below the existing rates that are currently being charged. As an example, per citation processing fees will be reduced from $1.46 to $1.28 per electronic citation, while hand-written citations will decline from $1.54 to $1.40 each. The City of Burlingame processes electronic citations. The services that will be procured from Turbo Data include citation processing, fine collection(payment)by mail,phone or web site, sending multiple payment reminder notices, placing DMV holds for nonpayment, handling violator appeals and administrative adjudication services and pursuing optional advanced delinquency collections. Fiscal Impact: The City of Burlingame's cost for citation processing are anticipated to decline by approximately 12 percent while maintaining the same level and quality of service. In FY05-06, the city paid $87,500 in fees to Turbo Data. Savings of roughly $10,000 are anticipated annually as a result of the new agreement. The initial contract term is five years with no increase in fees during that period other than direct pass- thorough of postal rate increases. The contract can be extended for an additional three years for a total of eight years of service. If the contract is extended, then the contractor has the right to propose an increase of six percent or less to the fee amounts listed in the agreement. Attachments: A Resolution Of The City Of Burlingame Authorizing The City Manager To Execute A Contract With Turbo Data Systems, Inc. For Parking Citation Processing And Adjudication Services For An Initial Period Of Five (5) Years With The Option To Extend The Agreement For An Additional Three (3) Years Agreement for Professional Services—Parking Citation Processing and Adjudication S:\Turbo Data Citation Processing\FY07-New Five Year Agreement\City Council Agenda Report.doc 2 RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BURLINGAME APPROVING AGREEMENT BETWEEN THE CITY AND TURBO DATA SYSTEMS, INC. FOR PARKING CITATION PROCESSING AND ADJUDICATION RESOLVED,by the City Council of the City of Burlingame: WHEREAS, since 1999,the cities in the County have cooperatively worked together and contracted with Turbo Data Systems, Inc. (TDS) for parking citation and adjudication services; and WHEREAS,TDS has provided very good service and the Finance Director has recommended that a new agreement be entered into with TDS, NOW, THEREFORE, IT IS RESOLVED AND ORDERED: 1. The Agreement between the City of Burlingame and Turbo Data Systems, Inc. (TDS) attached as Exhibit A is approved, and the City Manager is authorized and directed to execute the Agreement by and on behalf of the City. 2. The Clerk is directed to attest to the signature of the Manager. MAYOR I,DORIS MORTENSEN,City Clerk of the City of Burlingame,do hereby certify that the foregoing resolution was introduced at a regular meeting of the City Council held on the day of , 2006,and was adopted thereafter by the following vote: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: CITY CLERK AGREEMENT FOR PROFESSIONAL SERVICES— PARKING CITATION PROCESSING AND ADJUDICATION This Agreement is entered into by and between Turbo Data Systems, Inc. (TDS), a California Corporation, and The City of Burlingame (hereinafter "Customer"), a municipal corporation, EFFECTIVE JULY 1, 2006. WHEREAS, TDS and Customer desire to enter into an Agreement whereby TDS will process parking citations for Customer pursuant to the terms and conditions set forth herein, including all applicable State and local laws and regulations in effect now and during the term of this Agreement, and WHEREAS, TDS is a firm specializing in the provision of parking citation processing and related services, with considerable knowledge and experience in the field. NOW, THEREFORE, in consideration of the mutual covenants, conditions, representations, and warranties contained herein the parties hereby agree as follows: 1. PROFESSIONAL SERVICES TO BE PROVIDED. TDS shall be independently responsible for providing the services described in the scope of work attached hereto as Exhibit "A" and incorporated herein by reference. TDS agrees to extend these services to all San Mateo County Cities and Agencies which issue parking citations and wish to receive such services from TDS. Courier and banking services will be negotiated separately with new agencies not a part of the original RFP process. 2. TERM. This Agreement shall become effective July 1, 2006 for a period of five(5) years. 3. OPTION. Upon the expiration of this Agreement, Customer shall have the option, in its sole and absolute discretion, of extending this Agreement for an additional three (3) years on the terms and conditions contained herein, except that TDS may propose an increase of six (6) percent or less to the compensation amounts in Exhibit "A". Customer shall notify TDS in writing at the address listed in the NOTICE section of this Agreement of its intention to extend this Agreement at least one hundred-twenty (120) days prior to the expiration of this Agreement. 4. CONSIDERATION. In consideration for services performed by TDS as provided in this Agreement, Customer shall pay TDS pursuant to the terms set forth in Exhibit "A" which is attached hereto and incorporated herein by this reference. 5. PAYMENT OF FEES. Charges determined on the basis set forth in Exhibit "A" shall be billed on a monthly basis in arrears and payment therefore shall be made within fifteen (15) days after submission of each separate invoice. 6. CALCULATION OF AMOUNTS DUE COUNTY. TDS shall calculate amounts due the County of San Mateo as required by State law and forward the figures (Paid Citation Distribution Report) to Customer in a timely manner so that Customer is able to remit the required funds to the County of San Mateo before the date due. Page 1 of 9 7. ACCOUNTING RECORDS. Records of the citations processed by TDS shall be available for examination by Customer or its authorized representative(s) at a time agreeable to Customer and TDS within one week following a request by Customer to examine such records. Failure by TDS to permit such examination within one (1) week of a request shall permit Customer to withhold all further payments until such examination is completed unless an extension of time for examination is authorized by Customer in writing. 8. TIME OF PERFORMANCE. Time is of the essence, and TDS shall perform the services required by this Agreement in an expeditious and timely manner so as not to unreasonably delay the purpose of this Agreement. 9. INDEPENDENT CONTRACTOR. At all times during the term of this Agreement, TDS shall be an independent contractor and shall not be an employee of Customer. Customer shall have the right to control TDS only insofar as the results of TDS's services rendered pursuant to this Agreement; however, Customer shall not have the right to control the means by which TDS accomplishes the services rendered pursuant to this Agreement. 10. FACILITIES AND EQUIPMENT. TDS shall, at its own cost and expense, provide all facilities and equipment that may be required for performance of the services required by this Agreement. 11. INDEMNIFICATION BY TURBO DATA SYSTEMS, INC. TDS is skilled in the professional calling necessary to perform the services and duties agreed to be performed by TDS under this Agreement, and Customer, not being skilled in such matters, relies upon the skill and knowledge of TDS to perform said services and duties in the most skillful manner. Therefore, TDS agrees to indemnify, defend, and hold harmless Customer, its officers, officials, employees, volunteers and agents harmless from and against any and all liability, claims, suits, actions, damages, and causes of action, including attorney's fees, arising during the term of this agreement out of any personal injury, bodily injury, loss of life, or damage to property, or of any violation of any federal, state, or municipal law or ordinance , or other cause to the extent caused by the negligent acts or omissions of TDS, its employees, subcontractors, or agents, or an account of the performance or character of this work, except for any such claim arising out of the sole negligence or willful misconduct of Customer, its officers, officials, employees, volunteers and agents. Acceptance by Customer of the work performed under this agreement does not operate as a release of TDS from such professional responsibility for the work performed. It is further understood and agreed that TDS is apprised of the scope of the work to be performed under this Agreement and TDS agrees that said work can and shall be performed in a fully competent manner. 12. LIABILITY LIMITATION AND INDEMNIFICATION BY CUSTOMER. TDS shall use due care in processing work of Customer but TDS shall be responsible only to the extent of correcting any errors that are due to the equipment or personnel of TDS, such errors shall he corrected by TDS at no additional charge to Customer. TDS shall be entitled to reimbursement from Customer for any expenses incurred by TDS for the correction of any erroneous information provided by Customer and TDS shall not be responsible for Page 2of 9 Customers' losses and expenses resulting from erroneous source materials provided by Customer. Neither party shall be liable to the other for any indirect or consequential losses or damages. Customer shall indemnify and hold harmless TDS and its officers, directors, shareholders, employees and representatives from any and all claims, demands, liability, damages, and .judgments arising out of erroneous information provided by Customer. 13. INSURANCE. On or before beginning any of the service or work called for by any term of this Agreement, TDS, at its own cost and expense, shall carry, maintain for the duration of the Agreement, and provide proof thereof that is acceptable to Customer the insurance specified in Exhibit `B" to this Agreement under forms of insurance satisfactory in all respects to Customer. TDS shall not allow any subcontractor, professional or otherwise, to commence work on any subcontract until all insurance required of TDS has also been obtained for the subcontractor. 14. FAIR EMPLOYMENT PRACTICES/EQUAL OPPORTUNITY ACTS. In the performance of this Agreement, TDS shall comply with all applicable provisions of the California Fair Employment Practices Act (California Government Code Section 12900) and the applicable equal employment provisions of the Civil Rights Act of 1964, whichever is more restrictive. 15. AGENCY. Except as Customer may specify in writing TDS shall have no authority, expressed or implied, to act on behalf of Customer in any capacity whatsoever as an agent. TDS shall have no authority, expressed or implied, pursuant to this Agreement to bind Customer to any obligation whatsoever. 16. CHANGES IN LAW. Any changes in the processing of parking violations as a result of changes in the law or DMV regulations affecting such violations which do not materially add to the cost of processing such citations by TDS shall be implemented by TDS. Should there be any changes in the law applicable to the processing of parking citations which would require material changes in the method of the processing as contemplated in this Agreement, or materially reduce or eliminate the amount of revenue received by Customer from parking citations, TDS and Customer agree to negotiate in good faith to amend this Agreement to allow for such changes. Otherwise, this Agreement shall terminate on the date such law becomes effective, provided either party gives sixty(60) days notice of termination. 17. OWNERSHIP. Customer acknowledges that the software and software programs used by Customer or used for Customer's benefit which were developed by TDS are the sole property of TDS and Customer obtains no right or interest in the software by virtue of this Agreement. 18. PROPRIETARY INFORMATION. Customer agrees not to reproduce, disclose, or distribute Contractor's proprietary information such as any description of specialized or unique processes, software, or methods that are used in the course of providing the services under this Agreement, including any financial information, that is not considered a public record. 19. FORCE MAJEURE. Neither party shall be responsible for delays or failure in performance resulting from acts beyond the control of such parties. Such acts shall include, but are not limited to, Acts of God, strikes, riots, acts of war, epidemics, fire, communication line failure, earthquakes or other disasters. Page 3of 9 20. ASSIGNABILITY. Because of the necessary expertise required of TDS by this Agreement, TDS shall not assign this Agreement nor any part of it without the prior written consent of Customer. 21. TERMINATION. This Agreement may be terminated by either party upon one hundred twenty(120) days written notice after the end of the third year of the Agreement. 22. TRANSITION TO NEW VENDOR. In the event that TDS and Customer terminate this agreement, TDS agrees to provide all reasonable assistance required to make an orderly and accurate transition to a new citation processor. At the option of Customer, TDS agrees to continue to provide services required under this agreement for each and every citation up to the termination date entered into TDS's processing system until the final determination of each such citation. TDS shall be compensated for each such citation under the same terms as provided for herein. 23. NOTICE. Whenever it shall be necessary for either party to serve notice on the other respecting this Agreement, such notice shall be served by certified mail addressed to: TDS: Roberta J. Rosen President Turbo Data Systems, Inc. 18302 Irvine Blvd, Suite 200 Tustin, CA 92780 CUSTOMER: Jesus Nava Director of Finance/Treasurer City of Burlingame 501 Primrose Road Burlingame, California 94010 unless and until different addresses may be furnished in writing by either party to the other, and such notice shall be deemed to have been served within seventy-two (72) hours after the same has been deposited in the United States Post Office by certified mail. This shall be valid and sufficient service of notice for all purposes. 24. EXTENT OF AGREEMENT. This Agreement represents the entire and integrated Agreement between Customer and TDS and supersedes any and all prior negotiations, representations or agreements, either written or oral. 25. AMENDMENTS. This Agreement may be amended only by written instrument signed by both Customer and TDS, which writing shall expressly state that it is intended by the parties to amend the terms and conditions of this Agreement. 26. SEVERABILITY. Should any part of this Agreement be declared through a final decision by a court or tribunal of competent jurisdiction to be unconstitutional, invalid, or beyond the authority of either party to enter into or to carry out, such decision shall not affect the validity of the remainder of this Agreement, which shall continue in full force and effect, provided that the remainder of this Agreement, absent the unexercised portion, can be reasonably interpreted to give effect to the intentions of the parties. Page 4of 9 27. LITIGATION COSTS. If any legal action or any other proceeding is brought to enforce the terms of this Agreement, or because of an alleged dispute, breach, or misrepresentation in the connection with any of the provisions of this Agreement, the successful or prevailing party or parties shall be entitled to recover their reasonable attorneys' fees and other costs incurred in that action or proceeding, including the costs of appeal in addition to any other relief to which it or they may be entitled. 28. GOVERNING LAW. This Agreement shall be governed by and construed in accordance with the laws of the State of California. Executed on this 5th day of September, 2006. CITY OF BURLINGAME By: Jim Nantell, City Manager TURBO DATA SYSTEMS, INC. By: Roberta J. Rosen President Approved as to Form: Larry Anderson, City Attorney Page 5of 9 AGREEMENT FOR PROFESSIONAL SERVICES — PARKING CITATION PROCESSING AND ADJUDICATION EXHIBIT A SCOPE OF WORK AND COMPENSATION TDS will provide Parking Citation and Processing Services, including independent subcontracted adjudication services, as outlined in this Scope of Work, which includes the Request for Proposals To Provide Parking Citation Processing and Payment Services For the San Mateo County Cities, and the Proposal To Provide Parking Citation Processing and Payment Services For the San Mateo County Cities submitted by TDS and dated March 9, 2006, both of which are hereby incorporated herein by reference as if set out in full as the Scope of Work and Compensation for TDS. Fee Schedule Per Citation/Processing Fee-Electronic (entered within 48 hrs) $1.28 Per Citation/Processing Fee-Electronic(entered after 48 hours) $1.40 Per Citation/Processing Fee-Hand Written $1.40 Out of State Processing: Paid Off Windshield Notice No additional charge Additional Processing Required % of collections 25% Administrative Adjudication Processing- price per citation entering the process $3.60 Administrative Hearings $20 Reminder Notices per notice mailed $0.62 Final Notices,DMV Hold Letters, and Other Mailings $0.62 Credit Card by Phone and Internet Cost to City no charge Credit Card by Phone and Internet Cost to Public $3 Online System Access-City Personnel 1 st workstation no charge Per month for additional stations $40 Online System Access-Public no charge Parking Information Portal and Online Reporting Access no charge Other Fees: Advanced Collections 25%of collected revenue Interagency Offset Program(through FTB): Charge for Notice to be determined Social Security Lookup to be determined Collected Revenue to be determined Page 6of 9 If postal rates change during the term of the Agreement, the compensation to Contractor shall be adjusted effective the same day as the postal rate increase by the same amount as the change in postage. This will affect the per notice prices of all services as well as the Administrative Adjudication Pricing. The formula for determining the amount to be added to the charge for each citation entering the Administrative Adjudication Process shall be: Number of letters sent in the Adjudication Process for the previous three months -------------------------------------------------------------- X Change in Postal Rate Number of individual citations for which those letters were sent, i.e., volume of appeals Should Customer require a performance bond, TDS will prepay such cost and Customer will reimburse TDS within 15 days upon proof of coverage and payment by TDS. Page 7of 9 AGREEMENT FOR PROFESSIONAL SERVICES — PARKING CITATION PROCESSING AND ADJUDICATION EXHIBIT B INSURANCE TDS shall procure and maintain for the duration of the contract insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work hereunder by TDS, its agents, representatives, employees, or subcontractors. Minimum Scope of Insurance Coverage shall be at least as broad as: Insurance Services Office form number GL 0002 (Ed.1 /73) covering Comprehensive General Liability and Insurance Services Office form number GL 0404 covering Broad Form Comprehensive General Liability; or Insurance Services Office Commercial General Liability coverage ("occurrence" form CG 0001). Insurance Services Office form number CA 0001 (Ed.1/78) covering Automobile Liability, code 1 any auto and endorsement Ca 0025. Workers' Compensation insurance as required by the State of California and Employer's Liability Insurance. Minimum Limits of Insurance TDS shall maintain limits no less than: General Liability: $1,000,000 per occurrence for bodily injury, personal injury and property damage. If Commercial General Liability Insurance or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to this project/location or the general aggregate limit shall be twice the required occurrence limit. Automobile Liability: $1,000,000 per accident for bodily injury and property damage. Employer's Liability: $1,000,000 per accident for bodily injury or disease. Deductibles and Self-Insured Retention Any deductibles or self-insured retentions must be declared to and approved by Customer. At the option of Customer, either: the insurer shall reduce or eliminate such deductibles or self-insured retentions as respects Customer, its officers, officials, employees, volunteers and agents; or TDS shall procure a bond guaranteeing payment of losses and related investigations, claim administration and defense expenses. Other Insurance Provisions The general liability and automobile liability policies are to contain, or be endorsed to contain, the following provisions: Customer, its officers, officials, employees, volunteers and agents are to be covered as additional insureds as respects: liability arising out of activities performed by or on behalf of TDS; products and completed operations of TDS; premises owned, occupied or used Page 8of 9 by TDS; or automobiles owned, leased, hired or borrowed by TDS. The coverage shall contain no special limitations on the scope of protection afforded to Customer, its officers, officials, employees, volunteers and agents. For any claims related to this project, TDS's insurance coverage shall be primary insurance as respects Customer, its officers, officials, employees, volunteers and agents. Any insurance or self-insurance maintained by Customer shall be excess of TDS's insurance and shall not contribute with it. Any failure to comply with reporting or other provisions of the policies including breaches of warranties shall not affect coverage provided to Customer, its officers, officials, employees, volunteers and agents. TDS's insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer's liability. Each insurance policy required by this clause shall be endorsed to state that coverage shall not be suspended, voided, canceled by either party, reduced in coverage or in limits except after thirty (30) days (10 days for nonpayment) prior written notice by certified mail, return receipt requested, has been given to Customer. ACCEPTABILITY OF INSURERS Insurance is to be placed with insurers with a current A.M. Best's rating of no less than AXII, unless otherwise acceptable to Customer. Verification of Coverage TDS shall furnish certificates of insurance evidencing all the coverage required above, naming the San Mateo County Cities and Agencies, c/o City of Daly City, 333 — 901h Street, Daly City, CA 94015, that are a party to this Agreement as additional insureds. Should Customer wish an individualized certificate of insurance as an additional insured, TDS will provide such for an annual $50.00 charge. The endorsements for each insurance policy are to be signed by a person authorized by that insurer to bind coverage on its behalf. All endorsements are to be received and approved by Customer before work commences. All required information is to be mailed to the address shown in the NOTICE section of the Agreement. SUBCONTRACTORS TDS shall include all subcontractors as insureds under its policies or shall furnish separate evidence of coverage and endorsements for each subcontractor. All coverage for subcontractors shall be subject to all of the requirements stated herein. FIDELITY BOND In addition to the above, TDS shall provide a $100,000 fidelity bond covering all employees for theft, dishonesty, and faithful performance. Page 9of 9 Agenda Item # 9f Meeting BURLINGAME STAFF REPORT Date: September 5, 2006 /1� SUBMITTED BY APPROVED BY TO: HONORABLE MAYOR AND CITY COUNCIL DATE: AUGUST 28, 2006 FROM: PUBLIC WORKS SUBJECT: RESOLUTION AWARDING AN EMERGENCY CONTRACT TO HILLSIDE DRILLING COMPANY, INC., FOR REPAIRS AT MILLS CANYON SLIDE, CITY PROJECT NO. 81720 RECOMMENDATION: It is recommended that Council approve the attached resolution pursuant to Public Contract Code 22035 awarding an emergency contract to Hillside Drilling Company, Inc., for Mills Canyon Slide repairs in the amount of $150,469.00. It is also recommended that Staff be authorized to issue change orders of up to 30% of the construction award due to the unusually complicated nature of the work as well as the high probability of finding unrecorded soil conditions during excavation. BACKGROUND: Due to heavy rains and an unusually long winter, a mud slide occurred on City property in the Mills Canyon area which damaged a pedestrian trail, blocked the flow of storm water in Mills Creek and deposited debris onto private property below the slide area. In February, City crews installed a temporary pipeline in the creek to facilitate drainage. Over the last six months Staff has worked with geologists and FEMA representatives to develop a project that would stabilize the slide area and prevent further earth movement before next winter. The project includes constructing a 90 foot long and 25 foot high retaining wall at the bottom of the slide. Access for construction equipment is extremely difficult. Consequently Staff has initiated negotiations with residents adjacent to the slide area to obtain permission to cross their properties for making the improvements. DISCUSSION OF THE EMERGENCY ACTION: State regulations require that all construction in the creek area be completed by October 15th, the date established in law as the start of the rainy season. As a result of this time limitation, Staff is recommending that a contract be awarded by Council under the provisions of Section 22035 of the Public Contract Code. The code allows letting contracts without giving a formal notice of bids if approved by a four-fifths vote of the Council. It also requires that the emergency action be reviewed by Council at every scheduled meeting thereafter until the project is completed. S:W Public Works Directory\Staff Repo rts\81720MiIIsCynSlideStaffRprtRev1Aug06.doc DISCUSSION OF BIDS: The project was informally bid to known contractors who have the capability to perform the specialty drilling work necessary to construct a retaining wall in a difficult terrain with minimal access. Three bids were received ranging from $150,469 to $169,850. Hillside Drilling Company, Inc. is the lowest responsive bidder with its bid of $150,469. Hillside Drilling Company, Inc. has successfully completed a similar retaining wall project in Mills Canyon for the City in 2003. The company is qualified in performing work of this size and nature. Construction will begin immediately and can be completed prior to October 151h. BUDGET IMPACT: Construction contract $150,469 Contingency(30%) 45,140 Field Survey 20,000 Staff administration and CM 30,000 Landscape repair in private property 25,000 Total $270,609 Funds are available in the 2006/2007 General Fund Storm Drains CIP.The scope of the Easton Creek Pump Station will be reduced to accommodate this expenditure. Staff will pursue possible reimbursement from FEMA for the project costs. EXHIBITS: Resolution, Public Works Agreement with scope of work, bid summary and map of the area. Sye rtuza Ass ant Public Works Director c: City Clerk,City Attorney, Hillside Drilling Company, Inc. SAH Public Works Directory\Staff Reports\81720MilIsCynSlideStaffRprtRevlAug06.doc RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BURLINGAME DETERMINING THAT AN EMERGENCY EXISTS REQUIRING THE AWARD OF A REPAIR CONTRACT FOR MILLS CANYON WITHOUT FORMAL BIDS AND AWARDING CONTRACT FOR EMERGENCY REPAIRS TO HILLSIDE DRILLING COMPANY RESOLVED, by the City Council of the City of Burlingame: WHEREAS, the winter of 2006 caused damage to the Mills Canyon area; and WHEREAS, after careful examination of the area and preliminary stabilization efforts, it is necessary to proceed with interim repair and stabilization work to protect Mills Creek and adjacent properties; and WHEREAS, the rainy season will shortly arrive, and it is crucial that this work be completed by mid-October; and WHEREAS, the exact nature and extent of the work and the actual soils conditions will only be determined after it is underway; and WHEREAS, the City elected to become subject to the provisions of the Uniform Public Construction Cost Accounting Act to govern public works contracts in Resolution No. 59-93; and WHEREAS, the City has sought informal bids from three qualified companies who have each submitted bids, and Hillside Drilling Company was the lowest, responsible bidder; and WHEREAS, there is a substantial evidence that the current situation constitutes an emergency under the Public Contract Code; and WHEREAS, it is imperative that this work get underway immediately and that a delay in obtaining formal bids is not permitted under the time limitations that exist, NOW, THEREFORE, IT IS RESOLVED AND ORDERED: 1 . An emergency exists that does not permit the delay necessary in seeking formal bids for the work necessary to stabilize the Mills Canyon Area for the coming winter. 2. The City Manager is hereby authorized and directed to enter into a contract with Hillside Drilling Company in an amount not to exceed $150,469.00. In addition, the Director of Public Works with the approval of the City Manager is authorized to execute change orders of up to thirty percent (305) more in light of the complicated nature of the work and possible unforeseen soils conditions that may be found. 1 3. The City Clerk is requested to attest to the signature of the City Manager. 4. Pursuant to Public Contract Code § 22050(c), the City Manager shall provide a report on the emergency action taken at each regular Council meeting until such time as the Council directs otherwise or the emergency situation has been mitigated. MAYOR I,DORIS MORTENSEN,City Clerk of the City of Burlingame,do hereby certify that the foregoing resolution was introduced at a regular meeting of the City Council held on the day of 2006, and was adopted thereafter by the following vote: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: CITY CLERK 2 AGREEMENT FOR PUBLIC IMPROVEMENT CONTRACT TO CONSTRUCT THE MILLS CANYON SLIDE REPAIR PROJECT CITY PROJECT NO. 81720 THIS AGREEMENT, made in duplicate and entered into in the City of Burlingame, County of San Mateo, State of California on , , by and between the CITY OF BURLINGAME, a municipal corporation, hereinafter called "City", and Hillside Drilling Company, Inc., hereinafter called "Contractor," WITNESSETH : WHEREAS, City has taken appropriate proceedings to authorize construction of the public work and improvements herein provided for and to authorize execution of this Contract; and WHEREAS, pursuant to State law and City requirements, City has sought informal bids for the contract for the improvement hereinafter described; and WHEREAS, on September 5, 2006, the City Council of Burlingame awarded the contract for the construction of the improvements hereinafter described to Contractor, which the Council found to be the lowest responsible bidder for these improvements; and WHEREAS, City and Contractor desire to enter into this agreement for the construction of said improvements, NOW, THEREFORE, IT IS AGREED by the parties hereto as follows: 1. Scope of work Contractor shall perform the work described in the Proposal dated August 28, 2006, entitled: Drilling Proposal, Mills Canyon Slide Repair, City Project No. 81720, Attachment Exhibit A. 2. The Contract Documents The complete contract consists of the following documents: this Agreement with attached Proposal (Exhibit A), the prevailing wage rates of the State of California applicable to this project by State law, the accepted Bid Proposal, Special Provisions and all bonds, and are hereinafter referred to as the Contract Documents. All rights and obligations of City and 6/7/06 AGREEMENT-1 Contractor are fully set forth and described in the Contract Documents. All of the above described documents are intended to cooperate so that any work called for in one, and not mentioned in the other, or vice versa, is to be executed the same as if mentioned in all said documents. 3. Contract Price The City shall pay, and the Contractor shall accept, in full, payment of the work above agreed to be done, the sum of One hundred fifty thousand, four hundred sixty nine dollars and no cents ($ 150,469.00). This price is determined by the price contained in Contractor's Proposal. In the event authorized work is performed or materials furnished in addition to those set forth in Contractor's Bid and the Specifications, such work and materials will be paid for at the unit prices therein contained. Said amount shall be paid in progress payments as provided in the Contract Documents. 4. Provisions Cumulative. The provisions of this Agreement are cumulative and in addition to and not in limitation of any other rights or remedies available to the City. 5. Notices. All notices shall be in writing and delivered in person or transmitted by certified mail, postage prepaid. Notices required to be given to the City shall be addressed as follows: George Bagdon Director of Public Works CITY OF BURLINGAME 501 Primrose Road Burlingame, California 94010 Notices required to be given to Contractor shall be addressed as follows: Hillside Drilling Company, Inc. PO Box 70130 Pt. Richmond, Ca. 94807 Attn: Sean Silveira 6. Interpretation. As used herein, any gender includes the other gender and the singular includes the plural and vice versa. 6/7/06 AGREEMENT -2 7. Waiver or Amendment. No modification, waiver, mutual termination, or amendment of this Agreement is effective unless made in writing and signed by the City and the Contractor. IN WITNESS WHEREOF, two identical counterparts of this Agreement, consisting of three (3)pages, including this page, each of which counterparts shall for all purposes be deemed an original of this Agreement, have been duly executed by the parties hereinabove named on the day and year first hereinabove written. CITY OF BURLINGAME, "CONTRACTOR" a Municipal Corporation By By City Manager/Jim Nantell Hillside Drilling Company, Inc. Approved as to form: City Attorney/Larry Anderson ATTEST: City Clerk/Doris Mortensen 6/7/06 AGREEMENT -3 PROPOSAL BID SUMMARY MILLS CANYON SLIDE REPAIR PROJECT CITY PROJECT NO.81720 Construction Proposals Received by City Public Works Engr.Dept.: Proposer Name Proposal Proposal Comments Date Bid Hillside Drilling Company,Inc. 28-Aug-06 $ 150,469 90'long,25'high retaining wall above creek JMB Construction Inc. 25-Aug-06 $ 160,000 60"pipeline in Mills Creek,no retaining wall Malcolm Drilling Co.,Inc. 18-Aug-06 $ 249,850 70'long,12'high retaining wall above creek Engineer's Estimate 18-Aug-06 $ 200,000 70'long,20'high retaining wall above creek FROM : HILLSIDE DRILLING INC FAX N0. : 5102343131 Aug. 28 2006 03: 54PM P1 Exhibit A Page 1 of 5 HILLSIDE DRILLING COMPANY, INC. ENGINEERING CONTRACTORS CONTRACTOR LICEN SE NO. 478991 -A P.O. BOX 70130 - PT. RICHMONll, CA 94807 Phone 510-234-6532 Fax 510-234.3131 I)RILLING PitOPOS . DATE: 8-28-06 TO: CITY OF BURLINGAME AT-'1'N: DOUG BELL PROJECT: MI11S CANYON SLIDE REPAIR SCOPE OF WORK We Hil :reby Quote The Following items In Accordance With 'Fbe Plans Soils Report Arid Specilications For The Subject Job, And The Following Inclusions Exclusions And General Conditions. Addend4 Acknowledgrpd .-Ngne ITEM DESCRIPTION QUANTITY UNI' E)RICE T,QTAL 1. MOBILIZATION & DliS.IGN 1 EA LUMP SL'M $16,269 2 16 k A W 14 X 68 X 25, BEAMS 400 LF +/- $200/LF $80,000 IN 24" CONCRETE SHAFTS 3 REMOVE AND RF,PLACE 1.1NCE I FA LUMP Sl1M $5,000 PROTECT DRIVEWAY AND YARD 4 6' — 8' P.T. TIMBER LACI(i1NG 600 SF $22/SF $13,200 5 EARTHWORK. AT WALL 110 C'Y LUMP sum $36,000 FOR 90 LF 01� WALL TOTAL $150,469 Items 1, 2 & 4 to include: wall engineering and drawings, drilling, hole dewatering, providing; and setting steel soldier pile, provide and place pile concrete, painting soldier piles, stockpiling excess drill spoils, providing; and placing P.T. timber lagging. Item# 5 Earbtwork to include:clear and grub wall area, gradin; creek and hillside for drill rig access, diverting; creek, wall excavation and grading, of baul of drill spoils and. w4ll excavation 110 CY +/-. FROM :HILLSIDE DRILLING INC FAX NO. :5102343131 Rug. 28 2006 03:54PM P2 Exhibit A Page 2 of 5 L'XCi.17SIONS Permits,bond premium(2%),inspection,casing shafts,hard rock coring,replacing damaged landscape or yard area,demolition, soils report,field engineering,site dewatering,submittal or implementation of water pollution control plan,erosion control,water supply at work arca,survey, layout,USA utility location or markings,location/removal of utilities,shoring and protection of existing structures,streets, and utilities,off-haul or removal of water,sediment pond,offhaul of concrete over break,all costs related to any known or unknown hazardous or toxic materials.Traffic control provided by others. Hillside drilling to provide a 45,00 LB Lo-Drill HMT 45 excavator moulted drill rig or similar with a 35'mast 9'wide tracks,4'tail swung and a 13'reach from the tracks to the center of the drilled hole. Bid is based on designing and providing 90 Lf of steel soldier pile and timber lagging retaining wall with a lagging height of 6' 1/-.Bid is based on retaining 8'to 10'of slide debris above the slip plane.24"piles at 6'on center will provide arching between concrete piers to stabilize the sliding soil below the lagging.Bid is based on and active pressure of 55 PCF and a passive pressure of 350 PCF fur still'soil below the slide debris and 500 PCF for bedrock. UENERAL CONDITIONS Hillside Drilling's(IISD)bid is based on ONE move ins to the job with continuous operation until completion of subject move-ins;add $7,000.00 to the contract for each additional move.Contractor will provide 12-foot wide level,unobstructed access adjacent to all pile locations as required for drill rig,R.T. crane,and concrete trucks.Cenerete pour crew may require additional work hours to complete pours. Contractor will provide a clean out area for drilling equipment and concrete pumps and trucks.Bid is based on daywork M-F 8 hours oar day.Contractor to provide three weeks minimum notice of start date. Changes in start date shall be made 48 hours in advance of preliminary start date.IIillside Drilling will he given one working day to verify grade,access, and layout before moving on to the site.If casing or dewatering is needed,Tebar cages shall not block access of casing or sump pumps.If any man-made/man- placed materials are encountered,contractor will provide Hillside Drilling with written authorization to proceed with the work utilizing any required special tools and equipment.A daily log of labor,equipment and material will be maintained and subsequently billed at the rate of$425.00 per hmtr for a 3 man drill set crew with drill rig plus costs of materials,labor and ether equipment plus appropriate markups.All standby time due to delays by others will be billed at the same hourly rate.Rack charges will only be accepted when property documented and acknowledged on a daily basis by our authorized representative. Payments will be rnade with in 30 days of invoice.Retention will not exceed the percentage with held by the owner.Balance of retention will he paid in full within 35 days after completion of Hillside Drilling"s work. For shafts to be drilled deeper then soil borings indicate we have assumed that the materials to be drilled are similar to those indicated on the soil borings lowest depth explored adlneent to the drilled shaft. Conditions differing from those indicated in the borings shall be considered a changed condition. NOTE no borings were provided. Page 2 of 3 FROM : HILLSIDE DRILLING INC FAX NO. : 5102343131 Aug. 28 2006 03: 54PM P3 Exhibit A Page 3 of 5 This quotation includes the fallowing insurance coverage: for PTSD with the general contractor to be named as additional insured. 1. Worker's compensation & Employers Liability -$1,000,000.00 each accident, $1,000,000.00 disease policy limit & $1,000,000.00 disease each employex (excludes waiver subrogation). 2. General Liability - $2,000,000.00 3. Automobile Liability Coverage - $1,000,000.00. This quotation is Subject to acceptance within 30 days and the terms herein will be incorporated into Any subsequent sub-contract agreement. In the event that legal counsel is retained to collect any sums due, HSD will be reimbursed for legal expense incurred. Should any dispute arise out of this Proposal/Agreement; the prevailing party shall be entitled to recover reasonable attorney's fees and cost. Z". Signed: Scan Silveira, Estimator cc M 00 C\i e�--rlv , SRC 5Sv(z AkGYS oVG� N t , m P. T. Yxs �n � � - M L rn M CE LL /p co Q ! f W Q 0 N0 - • 0Descriptipn SEP NOV C> Our Our Start Finish Float 0 1000 Approve Contract City 1d 1d 05SEP06 ;05SEP06 8d ,Approve Contract City o' f 1010 Wall Caics&Drawings 3d 3d 06SEP06 08SEP068d Wail Cafes&Drawings' 1020 City Review and Approve Design 2d 2d 1 tSEP06 12SEP06 8d City Review and Approve Design i 1030 Procure Steel Beams 3d 3d 13SEP06 15SEP06 8d Procure Steel Beams 1050 Mobilize Site id 1d':18:SEP06 18SEP06 8d Mobilize Site 1055 Creek Diversion&Access 1d j 1d 19SEP06 19SEP06 8d Creek Diversion&Access 1060 Clear and Grub 2d• 2d 20SEP06 21 SEP06 8d Clear and Grub I i a 1070 Wall Excavation&Access Bench I 3d 3d 22SEP06 26SEP06 8d EM19 Wall Excavation&Access Bench 1080 Drill&Set Piles 5d 5d 27SEP06 03OCT06 8d Drill&Set Pilescrq r-4 to ... r, � o 11090 Install Lagging 4d 4d 04OCT06 09OCT06 8d Install Lagging .a '1100 Fine Grade&Clean and Offhaul 4d 4d 10OCT06 13OCT06 8d77IDarnobillize Grade&Clean and Offhaul o 1110 Demobilize —_-- -id id 16OCT06 16OCT06 } 8d C•, N O -I ' Ln i 9C W Start date 05SEP06 -- Finish date 16O0T06 Early bar P ogress bar C> Data date 06SEP06 Hillside Drilling OW Critical bar o Run date 29AUG06 Pae number 1A Mills Canyon - Burlingame Summary bar N 0 Prknavera Systems,Inc ® Start milestone point i Finish milestone point 00 — —-- 0 CITY O� BURLINGAME Ae..o„ wEm'9 Agenda Item 13 a. MEMORANDUM Mtg Date: 9/5/06 City of Burlingame Office of the City Clerk To: Honorable Mayor and City Council From: Doris Mortensen ' J Date: September 5, 2006 Re: Agenda Item 13.a. NEW BUSINESS Appellant Victor Anderson of 816 Walnut Avenue has requested that the Appeal Hearing of the Planning Commission's decision at 1520 Arc Way be set for October 3, 2006, as he will be out of town for the September 181h Council meeting. c: City Planner (/ L ; X67 z��o Agenda Item �3 Meeting Date 9 06 August 22, 2006 Burlingame Town Council Re: Appeal of Planning Commission decision I,Victor Anderson,hereby appeal the Planning Commission's 8/14/06 4-3 approval of the plans for a new house at 1520 Arc Way. Regards, Honorable Mayor and City Council: Please schedule an appeal hearing for 1520 Arc Way to be heard at the i September 18, 2006 Council meeting. City C1et-1C Victor T. Anderson 816 Walnut Ave Burlingame, CA 94010 650-558-8395 BURLINGAME BEAUTIFICATION COMMISSION AUGUST 3,2006 The regularly scheduled meeting of the Beautification Commission was called to order at 5:30 p.m. by Chairperson McQuaide. ROLL CALL Present: Chairperson McQuaide, Carney, Ellis, Grandcolas, Lauder, and O'Connor Absent: Commissioner Lahey Staff: Director Schwartz,Parks Superintendent Richmond, and Secretary Harvey MINUTES— The Minutes of the July 13, 2006 Beautification Commission Meeting, were approved as corrected to read under OLD BUSINESS: Request for removal of 6 City-Owned Pittosporums at 2100 Easton Drive . . . . and Chairperson McQuaide adjourned the meeting at 7:50 pm. CORRESPONDENCE Letter to Mr. Thomas Hornblower, 2100 Easton Drive, informing him of the Commissions denial of the appeal to remove 6 City-Owned Pittosporums, with the recommendation that alternative systemic treatment be investigated and/or pruning be conducted to reduce or eliminate the fragrant flowers. Letter to Ms. Judith Schneider, 1812 Easton Drive, informing her of the Commission's denial of the appeal to remove the City-owned Cypress tree, based on the information in the Arborist's report that the Cypress tree is a healthy tree. Letter and pictures from Ms. Judith Dostal Schneider, 1812 Easton Drive, appealing to Council, the Commissions denial of the appeal to remove a City-owned Cypress tree. Letter to Judith Schneider, 1812 Easton Drive, (copied to neighboring properties) informing her that the appeal of the denial to remove a City-owned Cypress tree due to damage to her driveway and brick fence, would be heard at the September 5t' City Council meeting. Notes submitted by Chairperson McQuaide, from a conversation with Arborist Dave Dockter, regarding possible Eucalyptus varieties to be used for the long range reforestation on Easton Drive. FROM THE FLOOR-None OLD BUSINESS— Long RanLFe Reforestation Plan for Easton Drive- Chairperson McQuaide reviewed with the Commission her conversation with Eucalyptus expert and Arborist, Dave Docktor, (employed by the City of Palo Alto). She stated that Mr. Dockter, suggested a list of Eucalyptus varieties that would meet the preferred criteria discussed by those who were in attendance at the forum in April. Chairperson McQuaide submitted a letter drafted by Commissioner Lauder and her that could be used to invite Easton Drive residents to a future forum. The forum would provide information regarding proposed Eucalyptus varieties (suggested by Arborist Dave Dockter) to be used for the long range reforestation on Easton Drive. OLD BUSINESS—Long Range Reforestation Plan for Easton Drive-(Contd.) The Commission reviewed and discussed the suggested list of Eucalyptus varieties. Following the discussion, it was the consensus of the Commission that the forum be the item for the October 5h Commission meeting. Chairperson McQuaide stated she will reserve a space that is handicap accessible at Our Lady of Angels Catholic Church and will invite Dave Dockter to attend. Easton Drive residents and the public will be invited to attend. Superintendent Richmond stated that at any point, if there are any issues beyond the Commission's expertise and/or purview, expert opinion can be sought as well as direction or comments from the Public Works Department and/or Traffic & Safety. Director Schwartz stated that any parking issues or concerns that may surface can also be addressed at a later date. P.G.&E.Pruning Practices in the City of Burlingame The Commission reviewed the memorandum from Director Schwartz regarding the field meeting with P.G.&E.'s representative, Vegetation Manager, Erin Parks. Superintendent Richmond presented a booklet for the Commission to review: Best Management Practices — Utility Pruning of Trees. Superintendent Richmond also stated that the meeting with two P.G.& E. representatives, three Commissioners, Director Schwartz, himself and Supervisor Disco was a very cooperative meeting. He stated that Ms. Parks indicated that: she would be willing to come to a Commission meeting to discuss P.G.&E.'s pruning practices, that P.G.&E. would be willing to participate in a removal/replacement program of selected City trees that were damaged due to past pruning practices, that P.G.&E. would make their pruning schedule available to the City, and that any complaints should be referred to her at(650) 985-5710. The Commission discussed P.G.&E. pruning practices. Commissioner O'Connor stated she would like the goal of the Commission to be to get some kind of agreement with P.G.&E. as to their pruning practices in the City and to also develop a cooperative exercise with the public. Commissioner Carney commented that the public also needs more information with regard to P.G.&E. pruning practices in the City. Commissioner Grandcolas commented that the Commission first needs to convince P.G.&E. that there is a problem with current pruning practices. Superintendent Richmond responded that Ms. Parks agrees that some pruning is problematic; some of that is connected to improper pruning practices in the past. Following the discussion, it was the consensus of the Commission that Erin Parks be invited to the September 7`h Commission meeting to discuss P.G.&E. pruning practices in the City of Burlingame. Director Schwartz instructed the Commission to send specific addresses and pictures of trees that were improperly pruned by P.G.&E.,to the Parks office in advance of the meeting so those particular issues can be discussed at the meeting. (Note: Erin Parks will be out of town on September 7rh, but will attend the Commission's Nov 2"d meeting) City Streets with No Trees Director Schwartz stated that the Council has asked the Commission to address this issue that was brought to its attention earlier in the year. He stated the components that would need to be considered and addressed would be funding, staffing, materials and labor costs, identifying planting sites (areas), speaking with residents, specie selection(s), and a process to meet the goal. The Commission discussed different approaches on how to promote and educate residents with regard to the City's street tree planting program, as well as the individual commitment that is needed to care for the newly planted trees. City Streets with No Trees—(Contd.) Following the discussion, it was the consensus of the Commission that it is interested in beginning a program to add trees in the community and would be willing to look for funding sources in addition to any funds the City Council can appropriate. Director Schwartz stated he would report back to Council the Commission's interest in accomplishing this long range plan. NEW BUSINESS— Nominatinne Committee Appointment for August Election of Officers— Commissioner Carney reported that she and Commissioner Lauder developed a list of nominees for the Commission officers: Chairperson—Commissioner McQuaide Vice Chair—Commissioner Grandcolas Corresponding Secretary—Commissioner O'Connor Commissioner Ellis moved that the slate of officers be accepted; Commissioner Lauder, seconded. Motion carried 5 —0—2(Absent/Grandcolas and Lahey). REPORTS—Superintendent 1. Bids have been received and opened for the Tree Pruning and Stump Grinding Contract for the current Fiscal Year. Timberline Tree Service was the low bidder. Contract will be on the August 21 Council agenda. If approved, Timberline will complete one tree on Easton Drive and then resume work on the Skyline (east side)Eucs between Trousdale and Margarita. It will also begin immediately on a backlog of stumps to be ground. 2. City Tree Crew is side trimming the Eucalyptus row that separates the Crowne Plaza from Bayside Park. 3. City Crew upgraded the landscaping around the Lions Hall in Washington Park. 4. Supervisor Disco has identified five declining Black Locust trees on Costa Rica for removal. He will present pictures which support the need for removal at the September meeting. Removals will occur in September. All property owners where the removals will occur have been contacted, and many have selected replacement trees. 5. An elm with Dutch Elm Disease on Anita by the Putnam Body Shop will be removed in September and replaced in October. 6. Permission granted to enter City property again this year for the Invasive Spartina eradication project in Burlingame estuaries. The Coastal Conservancy sponsors the effort in various locations around the Bay. The chemical application is performed by Mosquito Abatement Board personnel. 7. Denial by the Beautification Commission of the request for removal of the Cypress at 1812 Easton Drive has been appealed to Council. There will be a public hearing at the 9/5 Council meeting. McQuaide—Chairperson McQuaide stated that she and other area residents are very upset about the number of mature trees that are being removed from the Mercy Center on Adeline Drive, noting that the trees on the property are a beautiful urban forest that is going to be lost over time. Administrative Secretary Harvey noted that Mercy Center has gone through the permit process for the removal of several protected size trees over the past year,any trees under the protected size may be removed without a permit. Chairperson McQuaide also stated that she would like to see the entrances to Burlingame beautified. REPORTS—(Contd.) Lauder - Commissioner Lauder stated that she had been asked about the possibility of reinstating the Landscape Award. The item will be placed on the November Agenda for further discussion and consideration. Commissioner Lauder also submitted an article from the San Mateo County Times regarding placement of rubber sidewalks as an alternative to concrete. O'Connor — Commissioner O'Connor reported that the San Francisco Water Department removed a dead Casuarina,behind her house, on the eastside of California Drive. There being no further business, Chairperson McQuaide adjourned the meeting at 7:15 pm. Res ectfully submitted, Kar e3ie Harvey Recording Secretary MEETING MINUTES Regular Meeting of the Burlingame Parks & Recreation Commission August 17, 2006 The regular meeting of the Burlingame Parks &Recreation Commission was called to order by Vice- Chair Dittman at 7:03 pm at Burlingame City Hall, 501 Primrose Road,Burlingame. ROLL CALL Commissioners Present: Dittman,Hesselgren, Larios, Schruers, Shamus Commissioners Absent: Heathcote,Muller Staff Present: Randy Schwartz,Parks &Recreation Director; Joleen Butler,Account Clerk III. Others Present: Rosalie McCloud, 400 Primrose Rd; Charles Voltz, 725 Vernon Way; Susan and Tom Paine, 728 Concord Way; Ann Keighran, 1531 Vancouver Ave. MINUTES The minutes of the June 15, 2006 regular Commission meeting were approved as amended. PUBLIC COMMENTS None OLD BUSINESS Senior Resource Handbook Commissioner Dittman reported that the handbook is partially complete. She hopes to have it finished before the next meeting. Capital Improvement Projects Director Schwartz reported that the Bayside Restroom/Snack Shack project is on schedule. Next month site preparation work will start to place a ready-made building on the site. The facility should be open for use before Thanksgiving. Parks for the Future Schwartz said the 1/8h cent sales tax measure would be on the November ballot. The measure, if passed, would provide about $300,000 on an annual basis to the Parks & Recreation Department for the next 20 _years. The money can be used as a base for CIP projects and for recreation use. CCAG will be the auditing body for the application and use of the monies. The measure is on the City Council's agenda for the upcoming meeting to determine if the Council will support the measure. Parks&Recreation Commission August 17, 2006 Minutes—page 2 NEW BUSINESS Art in the Park Schwartz reported that the recent Art in the Park (AIT'P) was presented with assistance of Pacific Fine Arts (PFA) handling the artists, marketing, security, setup, teardown and cleanup during the event. The City continues to handle the non-profit food and information booths and the entertainment. Profits for the event have risen approximately $9,000 since using a contractor to run the event. This process also saves the City approximately 300 hours in staff time. The addition of 10 sponsor booths in this year's festival received mixed review from the public. The sponsor booths provided the City with $3,000 in new revenue. The next two AITP's will have a different look as we incorporate the City's 99th and 100'b birthdays into the event. Schwartz stated that this might make a good time to consider changes to the event. Such changes could include a children's play area or a wine tasting section on Washington Park's ballfield. This would also open the area to relocate some or all of the sponsors' booths. After a discussion about the events budget, the commissioners discussed the pros and cons of corporate sponsorship and ways to incorporate sponsors without disrupting the intended atmosphere of the event. Schwartz stated that the PFA's revenue is primarily generated from the sponsorships and the elimination of sponsors could force the City to again fully operate the event. He also said that the City can dictate to PFA sponsorship levels and the desire to first seek sponsorships from local businesses. Commissioner Larios stated that before discussing other plans the City needs to decide whether or not to (1) continue working with a vendor and allow sponsors, (2) pay additional funds to have a vendor without sponsors, or(3) have the City run the event solo. Schwartz stated that he would be conducting meetings with Pacific Fine Arts and representatives from the food vendors, artists and general public. Schwartz also suggested a committee of the Commissioners be formed to attend these meetings. This committee could then report the interests of the various groups to the Commission and a recommendation could then be made to Council. The recommendation needs to detail the parameters of sponsorship presence at the event. Commissioners Hesselgren and Shanus volunteered for the committee and staff will send out an email inviting one more commissioner to volunteer. Options and suggestions from .commissioners and members of the public regarding sponsorship included: • Corporate sponsorship could be limited to pamphlets or sponsorship of activity zones at the event • Sponsorship only from Parks &Recreation related businesses • No sponsors at all; ask Council for more money • Keep sponsors, but shift them onto the ball field • Signage for sponsors could be on event items, such as the puppet theater, the stage for musicians blow-up jumper, etc. • Sponsor booths can be placed in smaller clusters mixed in with artist booths • Negotiate sponsor presence with the vendor Parks&Recreation Commission August 17, 2006 Minutes—page 3 The committee will take the options and suggestions to the meetings with Pacific Fine Arts and various other groups and report back to the Parks&Recreation Commission at a future meeting. Recreation Registration Fee Increase Staff is proposing an increase in recreation registration fees from $7 per class to $8 per class. The increase would provide $18,000 in increased revenue for the upcoming year. This revenue will help fund transitioning a part-time recreation coordinator position to full time. MOTION by Schruers (seconded by Larios): Recommend to Council an increase in the registration fee from S7 to $8 per class for the recreation programs Motion accepted 5-0. Master Fee Schedule Schwartz explained the master fee schedule has been updated to reflect an increase in cost for the premier facilities in the City—particularly Murray Field and Washington Park Baseball Field. Commissioner Larios asked how often Murray Field is closed and if it is recovered as synthetic could we get year round use of it. Schwartz, in response to Larios's questions, said that Murray field is closed for 3 months in the winter and all of July. He also said that he recommends that Bayside fields #3 & 4 be recovered in synthetic before Murray field as more user groups would benefit from Bayside 3 & 4 and that field is usually closed much longer each year for rain and maintenance. Motion by Larios (seconded by Hesselaren): Approve fee schedule as recommended by staff. Motion accepted 5-0. REPORTS/HAND-OUTS Staff In addition to the attached monthly Department report, Schwartz reported that the 22 replacement elm trees on El Camino Real are scheduled to be planted by Caltrans in October. Commissioners 1. Commissioner Hesselgren asked why the restrooms at Washington Park were locked and what time are they locked and unlocked. Schwartz said that they are locked to keep vagrants from sleeping in them and that they are locked from 11 pm to 5:30 am. The lock is programmed and can be changed. Hesselgren also asked if the chaser lights on the scoreboard at Bayside 1 are always on. Schwartz said that yes, the scoreboard is digital and the chaser lights are a screen saver of sorts. 2. Commissioner Schreuers noticed that several trees in Washington Park have been lost and was curious if there were any plans to replace them. Schwartz mentioned that yes; there are plans to replace them, however, in a different area of the park. 3. Commissioner Shanus asked when the paths at Bayside were scheduled to be paved. Schwartz said that the paving is scheduled to start in a couple of weeks. Parks&Recreation Commission August 17, 2006 Minutes—page 4 4. Commissioner Larios mentioned that there is graffiti on the backboard at Pershing Park. Schwartz made note of this and will have the Parks Department take care of it. (note:graffiti was painted over by staff on August 1811) NEXT MEETING The next meeting of the Parks & Recreation Commission is scheduled to be held on Thursday, September 21, 2006 at 7:00 p.m. at Burlingame City Hall. ADJOURNMENT There being no further business to come before the Commission,the meeting adjourned at 9:00 pm. Respectfully submitted, Joleen Butler Parks &Recreation Account Clerk III CITY OF BURLINGAME PLANNING COMMISSION UNAPPROVED MINUTES 501 Primrose Road,Burlingame, CA August 28, 2006 Council Chambers I. CALL TO ORDER Chair Brownrigg called the August 28,2006,regular meeting of the Planning Commission to order at 7:02 p.m. II. ROLL CALL Present: Commissioners Auran, Brownrigg, Cauchi, Deal, Osterling, Terrones and Vistica Absent: Commissioners: None Staff Present: City Planner, Margaret Monroe; Planner, Erica Strohmeier; City Attorney,Larry Anderson. III. MINUTES The minutes of the August 14, 2006 regular meeting of the Planning Commission were approved as mailed. IV. APPROVAL OF AGENDA There were no changes to the agenda. V. FROM THE FLOOR Pat Gironi, 1445 Balboa Avenue. Commented on 1548 Newlands,an FYI on tonight's agenda. At last meeting commission expressed concern about the cumulative impact on design of a number of decisions made during construction needing a public hearing, a similar changed project on �-- Occidentalis on tonight's agenda,concerned about the design impacts of the changes to the porch and the removal of the kitchen door creating a blank wall, are these changes the result of an impending sale e.g. new owner changing house to suite after the public hearing? Chair Brownrigg noted that the Commission cannot engage in discussion about FYI items,and that is the reason for no response. VI. STUDY ITEMS Chair Brownrigg noted that before the Commissioners engage in reviewing tonight's agenda,he wanted to confirm that all the commissioners had visited each project site during. All commissioners acknowledged that they had visited each site under discussion. 1. 743 ACACIA DRIVE, ZONED R-1 — APPLICATION FOR SPECIAL PERMIT FOR GARAGE LOCATION FOR CONSTRUCTION OF A NEW DETACHED GARAGE (DAVID MELLOR, APPLICANT AND PROPERTY OWNER; REMY'S QUALITY CONSTRUCTION, DESIGNER) PROJECT PLANNER: RUBEN HURIN ZT Strohmeier presented a summary of the staff report. Commissioner clarified the location of the exit door from the garage into the rear yard. There were no further comments. C.Deal noted that a garage had been at this location on this site since 1942,so the neighbors are adjusted to it so this should not be an issue,he then moved to place this item on the consent calendar. The motion was seconded by C. Auran. Chair Brownrigg called for a voice vote on the motion to place this item on the next City of Burlingame Planning Commission Unapproved Minutes August 28,`7006 ' consent calendar when the submittal is read and there is space.The motion passed on a 7-0 voice vote. This item concluded at 7:10 p.m. 2. 1130 BROADWAY, ZONED C-1, BROADWAY COMMERCIAL AREA — APPLICATION FOR CONDITIONAL USE PERMIT AMENDMENT TO INCREASE THE SEATING AREA, HOURS OF OPERATION AND NUMBER OF EMPLOYEES FOR REPLACEMENT OF AN EXISTING FOOD ESTABLISHMENT (DALE MEYER, APPLICANT AND ARCHITECT; RALPH T. BEHLING, PROPERTY OWNER)PROJECT PLANNER: RUBEN HURIN CP Monroe presented a summary of the staff report. Commissioners asked: ■ Clarify the hours of operation,will the store be open from 10:00 a.m. or 11:00 a.m.? ■ If open until midnight,how will the noise impact on immediately adjacent residential uses from the outdoor patio be managed, especially if the outdoor area is used by a group? ■ How will the change in grade from the patio area into the Walgreen's parking lot be managed at the exit area? Need a safe egress. ■ Does the applicant have an easement to exit onto the Walgreen's parking lot? ■ Provide information on the use permit for Chez Alexander, how will this use affect that business operation and the previous conditions of approval? ■ How will fire safety be addressed,control the location of the tables in the rear patio area,where will the materials now stored in the rear area be placed? ■ Will the exhaust fan and vent be screened from view from Broadway? ■ Will the Walgreen's lot be impacted by parking from this business? How will people be directed where to park? C.Osterling moved to place this item on the action calendar when all the information has been provided,any revisions to plans checked and there is space. The motion was seconded by C. Terrones. Chair Brownrigg called for a voice vote to place this item on the action calendar when the requested information has been provided and checked; and there is space on the agenda. The motion passed on a 7-0 voice vote. The item concluded at 7:20 p.m. 3. 1730 ROLLINS ROAD, ZONED RR—APPLICATION FOR CONDITIONAL USE PERMIT FOR AUTO STORAGE IN A DRAINAGE EASEMENT(MARC ROCHETTE, D &M TOWING, APPLICANT; ARTHUR MICHAEL TRUST,PROPERTY OWNER)PROJECT PLANNER: MAUREEN BROOKS CP Monroe presented a summary of the staff report. Commissioners asked: ■ Access to this site presents a problem, neighbors are in disagreement, and there appears to be a sprinkler riser which impedes the 12 foot driveway access on the 1704 Rollins site which will cause vehicles using this driveway to cross over to the portion of the driveway on 1670 Rollins Road,how is this going to be addressed? How will the applicant define that there is 12 feet clear the length of the driveway access? 2 Chvrf Burlingame Planning Commission Unapproved Minutes August 28, 2006 ■ It is suggested that there be a condition that no car-carriers be allowed on this site,however D&M Towing's letter indicates that they will occasionally have car carriers on the site? Please clarify where car-carriers will unload if not on the drainage easement? ■ Clarify the difference between the regulatory standards for this use in the drainage area in the M-1 zone and in the RR zone. ■ How will inoperable vehicles be moved in the event of a flooding in the drainage easement? ■ For what reason is D&M Towing placing cars in this area,because a vehicle was in an accident or towed for an infraction? ■ Understand the impacts of moving cars in and out at a certain time each day,what will be the traffic impact(number and frequency)of moving towed cars in at any time of day? During what hours of the day,and days of the week will towed cars be removed? How will the standards(times)given be enforced by D&M Towing. ■ There is presently a trailer in the drainage area; how is it being used? Will it be removed? C.Terrones moved to place this item on the action calendar when all the questions have been answered and plans modified as required, including addressing access issues. The motion was seconded by C. Cauchi. Chair Brownrigg called for a voice vote on the motion to place this item on the action calendar when the questions have been answered and the access issues addressed;and there is space on the agenda. The motion passed on a 7-0 voice vote. This item concluded at 7:30 p.m. VII. ACTION ITEMS Consent Calendar-Items on the consent calendar are considered to be routine. They are acted on simultaneously unless separate discussion and/or action is requested by the applicant,a member of the public or a commissioner prior to the time the commission votes on the motion to adopt. Chair Brownrigg asked if anyone in the audience or on the Commission wished to call any item off the consent calendar. There were no requests. 4a. 1400 BROADWAY, ZONED C-1, BROADWAY COMMERCIAL AREA — APPLICATION FOR CONDITIONAL USE PERMIT AMENDMENT AND PARKING VARIANCE TO INCREASE THE SEATING AREA OF AN EXISTING FOOD ESTABLISHMENT (CONNIE MORRIS, BROADWAY GRILL,INC.,APPLICANT;ERIC HOLM,CSS ARCHITECTURE,ARCHITECT;NICK KOROS/TSTN PARTNERSHIP, PROPERTY OWNER) (74 NOTICED)PROJECT PLANNER: RUBEN HURIN 4b. 3 CALIFORNIA DRIVE,ZONED C-2,SUBAREA D—APPLICATION FOR ANTENNA EXCEPTION TO INSTALL WALL MOUNTED ANTENNAS ON AN EXISTING BUILDING (OMNIPOINT/T- MOBILE,APPLICANT;MSA ARCHITECTURE&PLANNING,INC.,ARCHITECT; 3 CALIFORNIA DRIVE LLC, PROPERTY OWNER) (46 NOTICED)PROJECT PLANNER: RUBEN HURIN 4c. 1333 BAYSHORE HIGHWAY, ZONED IB —APPLICATION FOR CONDITIONAL USE PERMIT AND PARKING DIMENSION VARIANCE (NUMBER OF COMPACT SPACES) TO ALLOW AN EXISTING TENT STRUCTURE AND CONDITIONAL USE PERMIT TO OPERATE A PARK AND FLY PROGRAM AT AN EXISTING HOTEL(HYATT REGENCY SFO,APPLICANT AND PROPERTY OWNER) (16 NOTICED) PROJECT PLANNER: MAUREEN BROOKS C.Deal noted that he lives within 500 feet of the project at 1400 Broadway so would abstain from voting on 3 City of Burlingame Planning Commission Unapproved Minutes August 28,'7006 to eliminate the window boxes, also improvement since they would require a lot of maintenance. There were no further comments from the floor. The public hearing was closed. --� Commissioner comments: quite a few changes to this building,am alarmed by the process followed,should have come to the Commission before the inspector saw the problems in the field and put a stop work order on the construction. Agree that a couple of the new windows are out of scale,but over all do not constitute a deal breaker. Support despite the number of changes,overall the project is better,however,currently there is a scratch coat on the exterior of the building,when the surface is finished with a smooth stucco surface all over the building will look stark,especially with these changes;would recommend a shingle exterior finish would look better. Important to note that the materials of the finish are important. C.Cauchi noted that in total the cumulative changes are good,botched the window on the front,out of scale, do not know what the tree will do for the appearance of the side of the house;message here should be' better to ask permission, than forgiveness', but will move for approval of the changes by resolution with amendment to condition one to include the originally approved plans(date stamped May 5,July 26 and July 27,2005 as originally approved)with the corrections shown on sheets 5 and 6 of the plans date stamped July 26, 2006, and with the following conditions in the staff report: 1) that the project shall be built as shown on the plans submitted to the Planning Department date stamped May 5, 2005, sheets 1,2, 2.1, 3-6 and 10-11 and date stamped July 27, 2005, sheet 1.1, as amended by the plans date stamped July 26, 2006, sheets 5 and 6, and that any changes to building materials, exterior finishes, footprint or floor area of the building shall require an amendment to this permit; 2) that a building permit shall not be issued until the revised plans have been stamped and signed by a licensed civil engineer; 3) that any changes to the size or envelope of the basement, first or second floors,or garage,which would include adding or enlarging a dormer(s),moving or changing windows and architectural features or changing the roof height or pitch, shall be subject to Planning Commission review; 4) that prior to scheduling the framing inspection,the project architect, engineer or other licensed professional shall provide architectural certification that the architectural details such as window locations and bays are built as shown on the approved plans;if there is no licensed professional involved in the project,the property owner or contractor shall provide the certification under penalty of perjury. Certifications shall be submitted to the Building Department; 5) that prior to scheduling the roof deck inspection,a licensed surveyor shall shoot the height of the roof ridge and provide certification of that height to the Building Department; 6) that prior to final inspection, Planning Department staff will inspect and note compliance of the architectural details (trim materials,window type,etc.)to verify that the project has been built according to the approved Planning and Building plans; 7) that all air ducts, plumbing vents, and flues shall be combined, where possible, to a single termination and installed on the portions of the roof not visible from the street;and that these venting details shall be included and approved in the construction plans before a Building permit is issued; 8) that the conditions of the City Engineer's and Fire Marshal's May 6,2005,memos,the Chief Building Official's, Recycling Specialist's and NPDES Coordinator's May 9, 2005, memos, shall be met; 9) that the project shall meet all the requirements of the California Building and Uniform Fire Codes, 2001 Edition, as amended by the City of Burlingame; 10) that the project shall comply with the Construction and Demolition Debris Recycling Ordinance which requires affected demolition,new construction and alteration projects to submit a Waste Reduction plan and meet recycling requirements;any partial or full demolition of a structure, interior or exterior, shall require a demolition permit; and 11) that the applicant shall comply with Ordinance 1503,the City of Burlingame Storm Water Management and Discharge Control Ordinance. -� The motion was seconded by C. Vistica. 5 City-f Burlingame Planning Commission Unapproved Minutes August 28, 2006 Chair Brownrigg called for a voice vote on the motion to approve the amendment to the design review with the amended condition to include the July 2006 revisions to pages 5 and 6. The motion passed on a 7-0. Appeal procedures were advised. This item concluded at 7:50 p.m. IX. DESIGN REVIEW STUDY ITEMS 6. 1257 LAGUNA AVENUE, ZONED R-1 — APPLICATION FOR DESIGN REVIEW AND SPECIAL PERMIT FOR ATTACHED GARAGE FOR A FIRST FLOOR ADDITION(VADIM MELIK-KARAMOV, VMK DESIGN GROUP, APPLICANT AND ARCHITECT; ROSTISLAV POLYAK, PROPERTY OWNER) (70 NOTICED)PROJECT PLANNER: RUBEN HURIN C. Deal noted that he lives within 500 feet of this project. He left the dais and chambers. ZT Strohmeier briefly presented the project description. Commissioner asked that the FAR calculations should be reviewed,the total allowed should drop by 400 SF since the garage is attached with the project and not with the existing;with this addition attaching the garage the applicant is giving up 400 SF of FAR for future development on this site. Staff noted that they would make the correction. There were no further questions of staff. Chair Brownrigg opened the public comment. Vadim Melik-Karamov,VMK Design Group,represented the project. Noted that they reduced the second floor plate height, and architecturally tied the garage into the house, feel that the garage better conforms to the code. Commissioners asked that the following be addressed: ■ vinyl windows with wood trim are all right with this project because the existing windows which are the great majority are fairly new and vinyl with wood trim; ■ landscaping on the site is sparse and trees and shrubs which would grow to 12'to 15'to screen the roof and eaves should be added to improve the site and enhance the structure,the applicant should submit a landscape plan showing those existing trees and shrubs which will be retained and the new trees and shrubs to be added,species and sizes of all plants(new and existing)should be noted on the plan; ■ Notes should be added to the plans to accurately document the size of the rafter tails and the match on the corbels at the ridge and eaves; notes should be added regarding the roofing material of the new garage roof; ■ Should consider adding a window on the Laguna side in the dining room,would enhance the interior and break up the blank wall on that side. ■ Should consider up grading the garage door to look more like carriage doors, would enhance the entire side of the house. There were no further comments. The public comment was closed. C.Auran moved to bring this item back on the consent calendar when the recommended changes have been made to the plans,the plans have been checked by the planning staff,and there is space on the agenda. The motion was seconded by C. Osterling. Comment on the motion: Commissioner cautioned that placing this item on the consent calendar does not diminish the importance of the commissioner's comments and the need to make the changes to the plans noted. 6 City of Burlingame Planning Commission Unapproved Minutes August 28,`2006 Chair Brownrigg called for a voice vote on the motion to place this item on the consent calendar after the changes have been made to the plans, checked and when there is space. The motion passed on a 6-0-1 (C. -� Deal abstaining) voice vote. This item is not appealable. The item concluded at 8:05 p.m. XI. PLANNER REPORTS Because the City Attorney was setting up an exhibit for the Commissioner's Reports item on the lap top, Chair Brownrigg with the consensus of the Commission moved on to the Planner's Reports. - City Council regular meeting of August 21, 2006. CP Monroe review the Council's actions regarding planning matters at the August 21, 2006,meeting. She noted that the Council adopted the amendments to the Bayfront Plan and General Plan as recommended by the Commission. Also the Mayor would appoint two council members to the committee to work with the consultant in preparing the scope of work for the Downtown Specific Plan; and she would ask the Chair of the Planning Commission to appoint two commissioners to the committee. The committee would serve through the selection of the consultant to prepare the downtown plan. - FYI: 110 Clarendon Road - changes to a previously approved Design Review project. - FYI: 317 Occidental Avenue - changes to a previously approved Design Review project. - FYI: 1465 Balboa Avenue—update to a previously approved Design Review project. - FYI: 1532 Columbus Avenue - changes to a previously approved Design Review project. FYI items were taken as a group. Commissioners were asked if they wished to carry any item over to the regular action calendar. All of the proposed FYI items were acknowledged as they were,and none were pu' over to the action calendar. X. COMMISSIONER'S REPORTS North Burlingame Subcommittee Report on ECN zoning and plan compliance. CP Monroe presented an overview of the staff report prepared for the subcommittee.The report included 12 items identified by the subcommittee which should be considered for amendment to the Northern Gateway subarea of the North Burlingame/Rollins Road Specific Plan. It was noted that as the subcommittee considered zoning to implement the goals,policies,land use,and design guidelines ofthe plan it became clear that the direction given, in some cases, would not work or did not achieve the 'gateway' objectives of the city for the area. The twelve issues identified in the staff report were the major areas of concern,and the subcommittee was asking for direction from the commission regarding these before completing the work on the zoning district. To help the discussion,C.Auran had prepared photographs of each of the street frontages in the El Camino North zoning district and documented sidewalk widths. The Subcommittee noted that one of the things that drove the proposed plan changes was a realization of the amount of pedestrian activity that would be generated in the area by the new development and the proximity of the area to BART, CalTrain, given the level of pedestrian activity,the sidewalk suddenly became more important both as a path of travel and for activities to spill out to,this concept did not work well with the definition of the street space/street wall described in the design guide lines. The subcommittee is suggesting front setback variations,particularly in the areas with zero percent setback Commissioners noted that sidewalk width is critical to the pedestrian experience, if too narrow feel attached to the wall as cars speed by. Through lots from El Camino to California also appear to be an 7 �;ity-tfBurlingame Planning Commission Unapproved Minutes August 28, 2006 issue,Commissioners ask how the fixed 15 setback on California worked. Subcommittee noted that the 15'would be a front setback,or if development was on a through lot,a rear setback with active vehicular access for the building fronting on El Camino Real. Commissioner noted that California is narrow with �-' a sidewalk on only one side-how would pedestrian activity work there? It was noted that the rear/front setback areas would be required to be landscaped and fences would be set 4 feet into the lot and no more than 4 feet in height to increase the visual perception of a wider pedestrian pathway. Further comments: The Subcommittee noted that in the amendments the image of El Camino development would take precedence over the California Drive frontage with the objective of making the northern two blocks of El Camino reminiscent of the southern part of El Camino; need to look at a feasible sidewalk on the east side of California which would connect to BART. Subcommittee members noted had talked about adding the component of the city's bicycle plan to the California Drive planning. There was some discussion about how on-street parking and a bicycle lane on California would work, staff was directed to look at the bicycle plan. There was discussion about the future role of the frontage roads on El Camino and the development of the adjacent parcels which led to how a 25 foot sidewalk could be achieved on the east side of El Camino. It was noted that additional height allowed would encourage mixed use. A review of the pictures provided resulted in a consensus that wider sidewalks would enhance the area, and there was considerable need to reuse many of the parcels. Concern was expressed that the existing large trees should be integrated into the wider sidewalks to retain the overall appearance of the El Camino corridor though the city and to enhance the pedestrian experience. Rather than removing all the eucalyptus they could be interplanted with the recommended street tree to insure that there would always be a large green element along El Camino and an orderly transition from existing to new canopy. Concerned about proper planning of closure of the slip road in front of the shopping center to avoid angry neighbors. There were no further comments on the proposed amendments to the plan. XI. ADJOURNMENT Chair Brownrigg adjourned the meeting at 8:45 p.m. Respectfully submitted, David Cauchi, Secretary 8 Co 1 1 1 CCS St Comcast Cable � 12647 Alcosta Boulevard Suite 200 San Ramon, CA 94583 August 16, 2006 Oaic925.973.7015 0 wm.comcast.com Mr. Jesus Nava City of Burlingame 501 Primrose Road Burlingame, CA 94010 Dear Mr. Jesus Nava: As you may already know, it is our goal at Comcast to ensure that your office remains informed of the ongoing programming enhancements that affect our customers who reside in your community. In an effort to meet our goal we are sending you this letter. Effective September 20, 2006 Comcast plans to make the following adjustments to the existing programming line-up: Action Channel Name Channel Location Level of Service Drop INHD 2 720 High Definition Add TV One 483 Digital Classic Add TNT HD 726 High Definition Customers will be informed of the adjustment via a message on their Digital Control Terminal. This programming adjustment will not result in a price increase at this time. If you should have any questions or concerns, please feel free to contact your local Government Affairs Director, Lee-Ann Peling at (650) 289-6794. Sincerely, r Mitzi Givens-Russell Government Affairs Manager Franchise Compliance-Bay Market To: Mayor Baylock and City Council From: Jim Nantell Subject: Civic Engagement Resource Grant Date: 8/31/06 Terry Nagel and I attended the League Peninsula Division meeting in July where they featured a panel presentation on"Strategies for Public Involvement: Choosing the Forum to Fit the Fuss". One of the panelists was Terry Amsler, from the Institute for Local Government who unveil their new publication, "Public Involvement Strategies: A Practical Guide for Local Officials". Mr. Amsler also indicated that they would be offering grants to three public agencies for assistance in significant civic engagement projects. Vice Mayor Nagel spoke with Mr. Amsler about the City of Burlingame been one of those three cities to receive the in-kind civic engagement assistance. Mr. Amsler has earmarked one of the three resource grants to us. Vice Mayor Nagel and I brainstormed some potential civic engagement efforts that we might want to submit for consideration for the resource grants. Those are listed below: 1. Involving the public in the downtown specific area planning process; 2. Developing the civic engagement master plan(part of this year's council goals); 3. Working with the community to develop an inventory of neighborhood skills available to assist in emergencies; 4. Work with the city to resolve the issue of where to locate a new/reconstructed community center. In discussing the alternatives we would recommend pursuing the resource grant to assist us with the community center issue after the conclusion of the November election. We felt that the downtown specific area planning process was to larger a project and we felt that items two and three above did not have the element of"fuss" and would probably be less appropriate for the resource available through the Institute for local government. Before Vice Mayor Nagel proceeded on writing up the description of the project we agreed that I would pass it by the Council in case any of you wanted to discuss at the Council meeting.