HomeMy WebLinkAboutMin - CC - 1977.06.01 S /v7
STUDY MEETING
A G E N D A
June 1 , 1977
8 : 00 p .m .
1 . San Mateo County Convention & Visitors Bureau Report
John Steen
2 . PRISM Joint Powers Agreement
3 . Kohlenberg Ford
a . New Addition to Building
b . Bayswater Undergrounding
4 . Utilities - Sewer Service Charges
Water Rates during Drought
Water Rationing Clerical Help
5 . Convention Center - Jerry Coleman ' s Report
6 . Changes in Banking Procedures - City Treasurer ' s Report
7 . Traffic Analysis for Anza Pacific Development
8 . Clearing of 1008 Carolan Avenue Site
9 . Insurance Report from Mund , McLaurin & Company
10 . Budget Rules and Regulations
11 . Other
a . Rodent Control Service
b . Executive Session - Westbay Litigation
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BURLINGAME CITY COUNCIL
STUDY MEETING
June 1 , 1977
PRESENT: COUNCILMEN AMSTRUP , HARRISON , CROSBY . and MARTIN
CITY TREASURER SOMMER
STAFF : SCHWALM , COLEMAN , MILLICAN , KIRKUP , YOST , FRICKE
Mayor Harrison convened the meeting at 8 : 05 p . m.
1 . SAN MATEO COUNTY CONVENTION AND VISITORS BUREAU REPORT
Mayor Harrison introduced John Steen , Director of the Bureau . Councilman Martin
requested justification for the increase requested from Burlingame of approxi -
mately 37% - from $127 ,000 to $175 ,000 . Mr. Steen explained that though San Mateo
County is fifth in number of roomsthe Bureau ' s budget is tenth in size in the
State ; spending power has decreased and costs are going up ; only 38% of budget
is for salaries as compared with 60% for like organizations ; competition from
natural garden areas such as Monterey and Palm Springs requires increased ad- s
vertising and other promotion . Councilman Martin reported one of the Bureau
members stated that employees fly first class and take meals in hotel rooms .
Mr. Steen responded that Bureau employees never fly first class , and it is
possible ,when there is an early morning meeting , that breakfast will be ordered
in the room to save time . Councilman Martin pointed out that the budget is up
37% of which Burlingame pays 30% . The National Feasibility report indicates j
our hotels generate income from industrial and commercial sources and other hotels
have most of convention and tourist trade . Mr. Steen responded one result of
commercial people is that hotels have low periods over the weekends . One of
Bureau ' s sales thrusts has been to generate weekend business to remove high and
low periods . Councilman Amstrup stated he thought the Convention Bureau is doing ;
an excellent job for the City . Councilman Crosby pointed out Mr. Steen ' s comment j
that Bureau is working on bringing conventions to the area two or three years from
_ now and in the long run their efforts are beneficial . He also pointed out other
cities think the operations of the Bureau are worthwhile . Mayor Harrison thanked r
Mr. Steen for - his presentation and directed the matter be placed on the agenda
for the next regular council meeting .
2 . PRISM JOINT POWERS AGREEMENT
Mayor Harrison introduced Deputy District Attorney Douglas Gray . He asked Mr.
Gray whether , having already paid $502 for participation during the remainder 4
of the year , Council may elect to have the City withdraw from the program if �
not satisfied at the end of the year? Mr. Gray said that is correct . In answer : 1
to Councilman Amstrup ' s question about future County participation , Mr. Gray said
he was not sure what the County ' s future posture will be . He said he decided to
investigate the cities ' positions first and then go to the County . Councilman 1
Martin questioned the proposed activities of the agency and Mr . Gray responded
that he did not know. Councilman Martin continued that 1 /4 of a million dollars
has already been spent , and it is contemplated $650 ,000 more will be spent in the
coming year and apparently no program of activities is available . Mr. Gray said
it appeared the solution is to obtain a decision making body capable of formulating ,.
a program for the handling of criminal justice information . Councilman Martin
stated that he wanted information about the purpose of the expenditure of $650 ,000 '
and $200 ,000 a year after federal moneys are exhausted . Mayor Harrison pointed
out that if Council agrees to remain in the program for ' this year the City is not
committed for $2 , 158 next year and 3 . 33% in the second year . Mr . Gray confirmed
that was his legal opinion . Mr . Coleman stated that there is a 120-day prior
notice requirement if the City does not wish to participate in the ensuing year.
Mr. Gray said the 120-day period , which could be shortened to 90 days , was intended
to be a period of time when agencies could not withdraw immediately prior to the
end of the fiscal year . Councilman Martin questioned the possibility of PRISM `'
Council appropriating funds and cities would be responsible for them without being
able to get out? Councilman Amstrup suggested that Burlingame indicate they
wished to look at the operation of PRISM for six months , and give notice that we
may wish to mall rn rt at the end of that time . Mr . Gray said San Mateo had raised
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the same questions , however they nad been raised by the Police Uepartment
and the matter had not yet been considered by their council . Mr . Gray said he
would like a resolution of intent for presentation to the Board of Supervisors .
Mr. Coleman suggested a resolution of intent including Council ' s requested
notice that Burlingame may wish to withdraw in six months . Mr . Gray re-emphasized
that he wishes an indication of the cities ' intentions and that his purpose is
to organize representatives who can make decisions so the money will not go by
default. Mayor Harrison thanked Mr. Gray for coming to the meeting .
3 . KOHLENBERG FORD
A. NEW ADDITION TO - BUILDING
cMayor Harrison referred to correspondence regarding the requirement for sprinkler
system installation in the resulting 21 ,000 square foot building after construction
of a new building joined with two existing buildings on the Kohlenberg Ford
property . Mr . Kohlenberg said he had come to Council for relief from code require-
ments because , among other things , he believed the new building would result- in
a better traffic flow which would benefit the City . Mr. Bert Rowe of Wong &
Bocchini , architects , stated they had been informed of the need to conform to
seismic controls in addition to installation of sprinklers . Mr . Kohlenberg esti - 1
mated the 7 ,000 square feet of construction would cost about $245 ,000 at $35 per
square foot , but the cost of conforming to the Fire , Mechanical and Electrical
Codes with respect to the two other buildings would bring the cost to $352 ,000 .
Chief Fricke pointed out that Auto Row is in Fire Zone No . 1 where a building
without sprinklers was lost several years ago . He stated that cities are now
protecting by sprinkler requirements at 7 ,500 and 10 ,000 square feet. Mr. Coleman #
affirmed that the sprinkler requirement is specifically stated in the City Code ,
but the seismic problems could be considered by the Planning Commission . There !
was discussion of the structural alterations required to bring the building up
to seismic requirements . Councilman Martin concurred that the sprinkler require-
ments must be met but said he felt the seismic requirements might be a matter of -
discretion with the building inspector . Mayor Harrison directed Mr. Coleman to i
research the seismic requirements . Councilman Martin suggested efforts to made
to reduce the area of the building to below 20 ,000 square feet.
B . BAYSWATER UNDERGROUNDING
Mr. Kirkup reported that he had contacted Pacific Gas & Electric and met with
their engineers at the site of the proposed undergrounding . Their current
policy is not to have two risers on one pole , and not to install new poles in
undergrounding districts . The existing pole easterly of California Drive would
be moved back 40 feet . There is no fire alarm system involved , so the only cost
to the city would be two electroleers . PG&E indicated we would save $30 ,000 by
not going under the railroad , leaving $80 ,000 to be committed out of our fund .
PG&E engineers indicated they could not recommend the smaller project to their j
San Francisco office . A response was supposed to have arrived today but had
not yet been received . If Council wishes to proceed it should adopt a resolution
of intention , set it for hearing , and then adopt a resolution establishing the i
undergrounding district . Mayor Harrison reminded Mr. Kohlenberg he would get 3t
consents from property owners affected by the undergrounding and he responded
that he had and saw no reason why consent would not be given . The Mayor questioned
his present feeling about a contribution to the project. Mr . Kohlenberg said he
realizes that an equal amount or lesser amount of money would cover a greater j
square footage in another area , but these poles carry four telephone wires and
and heavy power lines and transformers , adding to the congestion in the area .
Therefore he feels even though it is a shorter distance more will be accomplished .
He said he is willing to undertake part of the cost to get the project to the top a :
of the priority list . Councilman Martin stated that he thought $30 ,000 was a
low figure for the cost of going under the railroad . Mr. Kirkup agreed it was and
said he would obtain the cost estimate figures . He added it would be necessary
to establish the boundaries . Councilman Martin suggested that boundaries be
adopted but to indicate we may not go the whole way . Mayor Harrison directed
that we proceed with the shorter district and inform PG&E and the Telephone
Company.
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4. CONVENTION CENTER PROJECT
Mr. Coleman reported that in putting together the submission for the Internal
Revenue Service there was apprehension about the problem of the guest rooms at
the convention center falling within the public financing. While this was going
on Barry Silverton was able to establish a loan to put the guest rooms on the
hotel land by adding a wing to the Sheraton. What is before Council is a request
for approval of this modification. He stated he would check with the City's
consultants. He was informed that the change would require an additional week
for the preparation of the EIR and a probable additional charge of $1 ,000. He
is informed the National Feasibility report recently received considers this
possibility. The matter will have to go through the Planning Commission. Mayor I.
Harrison asked if the $1 ,000 fee for the EIR would be paid by Mr. Silverton.
Mr. Silverton said he would pay it but would like to negotiate it with HKS.
Mayor Harrison stated that although it sounded good, he was concerned that when
the project goes to bid and lease, since the additional rooms are not on public
property, the lease could be broken. Mr. Silverton stated that the deed for 1
ownership of the hotel will be part of the trust agreement. Councilman Amstrup
said he was concerned that with the hotel having all the rooms the time may come
when the operator will let the convention center go. Mr. Coleman pointed out
that the bond consultants will have to approve. Mr. Silverton said the operating
company will have a lease from the City and the payment on the lease is the bond
payment which is guaranteed by the hotel . If the operator pulls out the City could
immediately foreclose on the hotel . The original loan commitment on the hotel
was $12,000,000, but by addition of 212 new rooms the loan will be $16,000,000,
so the City has picked up $8,000 per room equity. Metropolitan is the company
that is going to make the loan. If payments are not made, the City would end
up with the hotel .
Councilman Martin expressed concern because when the project was first suggested
it seemed evident the promoters could build the project themselves, except there
was no parking space. Now a year later, they are back where they started- wanting
to build more rooms on the hotel without parking. He is also concerned because
the IRS problem was apparent for almost a year and should have been considered
before this time. He suggested the city take bids on a golf course and forget
the convention center. Councilman Crosby disagreed. Mr. Silverton explained
that bond council is concerned because regulations are being passed and the IRS
-- may delay everything for six months or a year. The bond council thought it
would be better if the rooms were, not a part of the bond issue, he said, and
the City's equity will be greated. He pointed out that the feasibility report
covers the possiblity and on pages 7 and 8 it addresses the parking situation. .
He stated that with this modification we would be breaking ground before the end
of the year, the amount of the bond issue will be reduced, equity would be greater
and there will be more income.
Mr. Jones arrived at the meeting (9:45 p.m.) and was asked by the Mayor to explain
the IRS situation to Council . Mr. Jones stated that from the point of the tax
exempt status of the bonds he thinks the modification is a substantial improvement.
It removes from the project the portion that is purely private and puts it into
private financing and greatly improves the legality and tax aspects of the project.
He said he feels more comfortable with the project; it removes the need for going
to the IRS because it will be a tax exempt project. Mayor Harrison questioned
the situation if the lessee decided to break the lease and just maintain the hotel .
Mr. Jones responded that it is possible that intermixing of rooms with the con-
vention center might prove an incentive to hang onto the lease that would not be
there with the rooms as part of the hotel . He said that it is- his general under- y
standing that the convention center standing alone is not a money gatherer, so
switching from a convention center with rooms might encourage the breakage of the
lease if things got tough, but he felt that is a minor consideration.
Councilman Martin questioned Mr. Coleman. He called attention to the need for
a parking variance and the bid nature of the project, and asked if it would be
reasonable as a bid proposition that an equal parking variance be granted to other
hotels in the area, in order to equalize the bidding. There was discussion of
necessary Planning Commission consideration. Mr. Coleman said that although i
National Feasibility Corporation indicated they felt they had covered such a
i situation, he would like to discuss it with the City's consultants, but it was
necessary to have Council advised of the current proposals. Council and Mr.
Coleman expressed the need for in-depth study of the National Feasibility Report
received several days prior, and Councilman Amstrup stated that he hoped that there
would be no further revisions in the proposed project. Mr. Silverton assured him
there would be no further changes. Mayor Harrison and Mr. Amstrup summed up
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uouncii - s position that time would be required for study of the feasibility
report and for the submission of supplemental information from bond council
and consultants and HKS about the altered proposal and guarantees firmly
protecting the City. Mr . Silverton asked , assuming all the consultants and
attorneys decide this proposal is more desirable for the City , if he could assume
Council will be in favor of it . Mayor Harrison and Councilman Crosby indicated
if all reports were favorable they would approve the change . Councilman Amstrup
felt he could not assume anything and would await further information . Councilman
Martin indicated there is a major parking problem to be resolved through the
Planning Commission so he could not commit his response . Mayor Harrison thanked
Mr. Jones and Mr. Silverton for their presentations to the meeting .
5 . CHANGES IN BANKING PROCEDURES
Mr. Sommer stated that he felt his memorandum presented to Council all his recom-
mendations and reasons for the proposed change of banking procedures , but he had
one addition ; that is , that he would like banks who submit proposals to indicate !
average daily balance requirements and/or charges , if any. He feels it may be
advantageous not to keep any deposit other than normal cash flow so revenue on
funds can be increased . Mayor Harrison said he thought the recommendations are
excellent. Councilman Crosby commented that the original intent of Council was
to spread the banking around to all local banks . Mr . Sommer explained there isn ' t I
enough in any of the accounts to do the banks any good when they are spread around .
6 . INSURANCE REPORT FROM MUND , McLAURIN & COMPANY �
Councilman Martin questioned whether we may be running out of time on the
insurance matter . Mr . Coleman said he plans to question the broker about
several items . Councilman Martin said he thinks the report is excellent and
the recommendations are worth looking into .
7 . TRAFFIC ANALYSIS FOR ANZA PACIFIC DEVELOPMENT
Mr. Yost reported that projects proposed over the past six months by property
owners in the C-4 and M-1 Districts indicate a need for an updated traffic
and land use study of the bayfront areas . He described the several large 4
buildings which are planned , and confirmed that an EIR will be prepared for
each ; however , the cumulative effect will be greater than reflected in the t
individual EIR ' s . He suggested a traffic study should cover properties between 1
the Millbrae Avenue freeway interchange and the Peninsula Avenue interchange .
The study could probably be financed by gas tax funds and would take four to
six months . Councilman Martin suggested that what is needed is an analysis
which will show the effect of density in the whole area east of the freeway
with regard to traffic and utilities . He said we need to know the number of
cars , facilities and what buildings fit into that pattern . Mr . Yost said the
Planning Commission several years ago considered capacities and what would be
required in Anza ' s projected development . Mr . Kirkup stated that the conclusion
of the JHK report is that existing facilities can ' t handle development from
Millbrae to Poplar Avenue .
Councilman Amstrup questioned whether the CETA employees who have been re-
quested might be used to gather some of the data on the waterfront develop- ]
ment. Mr . Kirkup agreed that money could be saved by gathering the data with 2
our employees . He said the traffic consultant will be able to draw upon that
information .
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7 . CLEARING OF 1008 CAROLAN AVENUE SITE
Mayor Harrison announced there are two recommendations and a letter from Mr .
Ehrlich regarding demolition of the buildings at 1008 Carolan Avenue . Since
there was not a full council present he suggested putting the matter over to
the regular council meeting . Councilman Amstrup asked that the matter be
discussed since it is obvious there is a referendum on the issue . He pointed
out that demoliton of the building will reduce the value of the property if it
is decided it should be sold . He also called attention to the need to pay a
relocation fee of $5 ,000 to Camper Sales if they are given notice to vacate , and
he questioned whether relocation fees need be paid to the other lessees . Mr .
Kirkup said only Camper Sales would be paid the fee . Mayor Harrison stated
the matter would be held over.
8. PUBLIC WORKS EDA FUNDS
Mr . Kirkup reported that he had met on May 31st with the Regional Director of
EDA and some of his staff . He stated that a point system has been worked out
whereby each state will receive a tax quota fund , the amount to be based on an y
overall of round one and round two . Approximately 467 million dollars will
come to the State of California . The breakdown within the state is ( 1 ) cities
of 50 ,000 or more , ( 2 ) the balance of counties , and ( 3 ) counties without any '
primary units . Distribution to states is based upon a 65/35 proportion ; total
number of unemployed ( 65% ) and the state ' s relative severity of unemployment ( 35% ) . Y
The amount available to each state on this formula is to be published in Washington
on June 3rd . Burlingame will compete with other cities in San Mateo County ( 16 ) '
for portion of funds allocated to the County , and the money allocated in the first
round will be deducted . Once Burlingame ' s. allocation is determined we must ? {
prioritize the two projects we would like funded . Mr . Kirkup stated that the
City should be advised of its allocation of funds by June 6th : Supplemental
information will have to be submitted to EDA by the end of July , which should E
contain details of any revised project . He was confident that Burlingame will d
receive an allocation of EDA funds , whether or not sufficient money comes to San
Mateo County , but he could not estimate how much would be received .
9 . BUDGET RULES AND REGULATIONS
Mayor Harrison referred to Mr . Millican ' s memorandum of May 5th and stated that
though it looks fine , he prefers a policy statement instead of a resolution .
Councilman Martin agreed and added he feels Council should have control over
budget changes ; that he would prefer to have the statement that all authority ►.
not reserved to Council shall be exercised by the City Manager turned around to
read that all authority not delegated to the City Manager shall be reserved to 1
Council . Councilman Crosby said he agreed . Mayor Harrison questioned City
Manager transfers within a department to regulate salaries and to increase part-
time help . Mr . Millican gave the example of the Finance Department where an
employee was transferred to the Police Department and it required two months to
fill the position through civil service so part-time help was required . Councilmani
Martin suggested authority for thirty days , and then the requisite for Council ;
approval . Mr . Millican explained the purpose of controls being spelled out was
that in the past individual department budget accounts have been overrun and
others under-expended with the tacit understanding that the total budget of the
department not be exceeded . Councilman Martin said he was concerned about the ? ,
same matter because , if a large fund is moved within a department , its entire 1
thrust may be changed without Council approval . Councilman Amstrup objected to f
possible diversion of a capital outlay allocation not used within a year to another
purpose within the department . Mr. Schwalm pointed out that nothing of a major
nature has ever been done without consulting Council . Councilman Amstrup said he I
understands matters have to be straightened out for the Finance Department , but he r 1
has concerns about too much structuring . Councilman Martin asked if the matter '
could be rewritten with controls but not so many specifics . Mr. Millican said
he would do so .
10. MISCELLANEOUS e
( a) Rodent Control . It was suggested that the rodent control program be
continued .
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( b) Planning Commission . Mayor Harrison called attention to the Planning
Commission communcation requesting a meeting with Council to discuss the Anza area
development , traffic and environmental impact reports . It was agreed that a
breakfast meeting would be productive . The City Manager was directed to arrange
such a meeting for Saturday , June 4th , if possible .
( c) Sofas Property. In response to Council ' s questions about Mr. Sofas '
activities , Mr . Coleman stated that he keeps just within the law . Mr . Yost and
he have been watching the activities . He suggested a possible approach might be
to prohibit trucks over a certain size in an R-1 district . Councilman Martin
pointed out that recreational vehicles use commercial licenses , and Mayor Harrison
added that pick-up trucks do also . Councilman Amstrup approved the idea and j
asked if commercially licensed vehicles over three tons might be prohibited .
Councilman Martin suggested a three or five day limit to accommodate home owners j
who might bring in a dump truck to use themselves . Mr. Yost stated that there
were also complaints about the amount of concrete on the property ; that the h
property does not look like residence property but rather like a contractor ' s yard .
Mr. Kirkup questioned whether his scap might not constitute a fire hazard . Mr . r
Coleman stated that the neighbors complained because the fence was too high ; and
now they are complaining because they can see into his yard .
The meeting adjourned to executive session to consider litigation at 11 : 00 p .m .
Notes : A. Keating
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