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HomeMy WebLinkAboutMin - CC - 1977.02.02 A G E N D A STUDY MEETING February 2, 1977 8:00 P.M. 1. Redevelopment for Golf Course/Convention Center/Hotel Complex Phase I Feasibility Report - Initial Assessment EIR and Other Reports 2. S.B. 174 Fund Grant Project Washington Park 3. Finance ,Department Personnel Complement Change 4. Annual Auditing Services 5. Use of 990 Burlingame Avenue Building American Legion and Civic Arts.; 6. , Business Licenses 7. Reevaluation of Parking Program 8. Other BURLINGAME CITY COUNCIL STUDY MEETING - February 2, 1977 COUNCILMEN PRESENT: MANGINI, AMSTRUP, CROSBY, HARRISON, MARTIN STAFF PRESENT: SCHWALM, COLEMAN, KIRKUP, MILLICAN, HOFFMAN, WAGNER, YOST 1. SB 174 FUND GRANT - WASHINGTON PARK PROJECT Mr. Schwalm explained that the City is eligible to apply for a $19,171 grant from the State with the provision that the City add at least 2510 more of the cost for a designated project. Proposed improvements for Washington Park are explained in a memorandum submitted by Park Director Hoffman, who was present to answer questions. Approximately $6,400 of City funds would be needed to meet the estimated cost of the improvements, which would more than meet the 25% test. Mr. Hoffman reported the estimated cost of paving included in the proposal was the cost of materials and labor because that work could not be done by City employees. Councilmen Harrison and Crosby approved contract work for the project because of the backlog of park work. Councilman Amstrup questioned new lawns and shrubs at a time when water for irrigation was a problem. Mr. Kirkup pointed out there are three years for completion of the project so that planting could be delayed. Councilman Martin suggested bids might go up to $40,000, so the invitation for bids should be for alternatives. Mr. Coleman observed that the State is not concerned with project scope as much as that the City contribute at least 25% of the project cost. The City Attorney was directed to prepare a resolution authorizing filing of the application for the block grant, however Council directed Staff to provide for bid flexibility so that alternatives may be selected for the project. 2. FINANCE DEPARTMENT PERSONNEL COMPLEMENT CHANGE Mr. Millican referred to his memorandum requesting substitution of a half-time Account Clerk II position for a Typist Clerk II. He explained that the payroll clerk is attending San Francisco State half time and the present typist clerk wishes to transfer to the Police Department. It is his conclusion there is a greater need for an account clerk in the department. The proposal, if approved, would effect a savings of approximately $400 a month. There was discussion of use of Water Department Office personnel and office space. Mr. Millican said the present plan is to move one person out of the Water Department Office, but to move two machines into it in the redistribution of the data processing function. There was no Council objection to the proposed personnel change. 3. ANNUAL AUDITING SERVICES Mr. Schwalm informed Council that because of Mr. Maddox' retirement it would be necessary to select a new auditing firm to perform the 1976-1977 audit. It is his recommendation that Council accept the offer of Peat,Marwick, Mitchell re- ceived some time ago so they would have timely notice. He expressed confidence 1 in their expertise and the fairness of the charge. Mayor Mangini questioned whether Mr. Millican ' s former association with the firm would be the cause for embarrassment. Councilman Martin questioned Mr. Maddox ' charge for the former year and said that as a public agency he recommended another bid be obtained. Mayor Mangini directed Mr. Schwalm to obtain another bid before the next meeting . 4. USE OF 990 BURLINGAME AVENUE BUILDING BY AMERICAN LEGION AND CIVICS ARTS COUNCIL Mayor Mangini observed that although the organizations interested in the lease were asked to submit their proposals in writing they had received com- munication from only the American Legion. He explained the Legion ' s proposal that the lease to it be renewed and the Legion , in turn , would release to the Civic Arts Council and thereby a large expense to repair the building would not be incurred. Mr. Kirkup reported inspection of the building by his department, a termite company and roofers revealed the necessary work was much more extensive than had been anticipated. There is considerable fungus , termite and wood beetle infestation ( immediate fumigation was recommended) which would cost dnuble the original estimate, or in excess of $4,000. Structural work to make the building safe was estimated at about $9,000, and roof replacement instead of repair was recommended. The total cost would be at least between $18,000 or $20 ,000. Councilman Martin observed that the actual cost might go up to $30,000 , and in his opinion a building in that condition should not be saved. Mr. Spencer representing the Civic Arts Council arrived and distributed a pro- posal prepared by the Arts Council after its meeting of the previous evening. He noted that the estimated cost for necessary repairs was double the amount considered in their memorandum and , after further discussion , determined it would be impossible for the Arts Council to undertake the repair program to make the building safe for use. There was discussion of insurance. Mr. Fick of the American Legion reported the liability insurance premium was due. It was decided that since the building cannot be used the lease should be terminated as quickly as possible, the building secured and it should come under the City ' s self-insurance program. The matter of lease termination was placed upon the agenda for the Council meeting of February 7th. Councilman Harrison commented on the amount of good work the Legion does for the community and expressed his hope that the good work continue. Councilman Crosby questioned where the legion would meet when the lease expires . Mr. Wagner said he would find a room where the organization could meet once a nonth. Mr. Rudy Rausch said the Sheraton would be willing to provide a meeting place for the Legion. 5. REDEVELOPMENT FOR GOLF COURSE/CONVENTION CENTER/HOTEL COMPLEX - PHASE I FEASIBILITY REPORT - INITIAL ASSESSMENT, EIR AND OTHER REPORTS Mayor Mangini stated Council has received numerous communications from Staff and other people involved in the Convention Center/Golf Course project. Council - man Amstrup said he was concerned because there is not a universal dissemination 2 of information. He found it disconcertingto read a report of information in the newspapers which should primarily have been directed to the City Council . Councilman Crosby agreed. He said after reading the newspaper reports he had called the City Manager. The only information which had been received by that office was that Hornblower, Weeks had written to various sources requesting financial recommendations concerning people listed. Mr. Dinkelspiel said they had started with letters to the references named by Mr. Silverton , and Mr. Sollers had telephoned so they would have a report on responses for this meeting. Mayor Mangini stated that because of the questions raised .by staff memoranda he suggested Council study the reports and pose questions councilmen wished discussed. Councilman Martin said he had spent considerable time studying submitted memoranda and reports and he is not yet ready to consider the matter. He suggested it be put aside for a few weeks . Mr. Coleman observed that Council had not yet received all the information it required. Councilman Martin called attention to the letter from National Feasibility which he had received at 6 :30 this evening which referred to non-compliance with the contract. He could find nothing in the Hornblower, Weeks letter nor any communications from the City upon which that statement could be based. He said they were quoting from a written communication , apparently. Mr. Dinkelspiel said he had talked with National Feasibility by telephone so the supplement to the initial report would be received promptly. Councilman Martin said he felt National Feasibility should be told they were to take direction from the City ' s representatives , only . That would be Mr. Schwalm, Mr. Coleman , Mr. Dinkelspiel or Mr. Jones . Councilman Harrison noted there were three particular sentences which refer to lack of documentation . He said that if these people are concerned about documentation he did not see how Council could do anything but wait and take another look. Councilman Amstrup expressed concern about the statement that they were not claiming additional compensation, but were not waiving a right to same , and the mention of two trips . He questioned who had asked them to come out for Council had not. Councilman Martin said he wanted to know the basis for the letter. Councilman Crosby commented on the request for $5 ,000 on completion of Phase I and their not having received any money. Mr. Millican responded that the bill was received two weeks ago, and as soon as the amended report was received the funds were released Mayor Mangini observed Council certainly isn ' t ready to take any action . Councilman Martin said he wanted to talk to Staff concerning questions raised by their memoranda and definition of the project. Councilman Crosby asked Mr. Dinkelspiel whether in his opinion National Feasibility had come up with what was required by the contract. Mr. Dinkelspiel commented on the ratio and said that was what they were supposed to come up with. He said at first they had a misconception of the size of the bond issue. Hornblower, Weeks attempted to make the earnings test hard , and assumed the mortgage was treated as an expense in the ratio. Mr. Millican raised the question of whether it was included. Mr. Sollers checked it out and the supplemental report was prepared. The report is right. He thinks they lived up to the agreement. Hornblower, Weeks is basically satisfied and felt all the documentation will be in the Phase II report. The project has met the test and bettered the test. 3 Councilman Crosby asked Mr. Jones about the persons named as financial backers . Mr. Jones said he had read the material , recognizes some of the names and the financial institutions , but that he had not gone beyond that in the matter. Mr. Dinkelspiel said Mr. Sollers had talked to all the references by phone. They have all agreed to respond in writing and their responses will be on file and available to Coucil . Mr. Sollers explained they were trying to determine if there are any glaring negatives that would affect lending institution conclusions . Mr. Dinkespiel commented on two unnamed persons on the board. Mr. Silverton has been negotiating for mortgage money and it was felt the lending institutions would want to name people to the board. In response to Councilman Crosby ' s question about Mr. Sommer ' s memorandum, Mr. Dinkelspiel said he felt the problems would be answered by the Phase II report. Councilman Crosby commented that he felt that, having hired consultants , Council should feel confident in relying upon their reports , but that he would like to have them see Staff' s memoranda. He asked Mr. Millican whether he had talked with National Feasibility. Mr. Millican said he had not; he had looked at the documents and talked with Mr. Dinkelspiel . He discussed the items raised in his memorandum. The figures looked too good to be true so he raised the question of mortgage debt service and discovered, probably through misunderstanding, it had not been included. That had been taken care of in the supplemental report. He thought there were negative feelings about National Feasibility ' s report because it wasn ' t well organized in that it broke down numbers related to several years and it should be clearer to readers. The numbers look good if they are accurate, but they don' t commit themselves to judge construction costs until after Phase I . They have taken debt service amounts based on construction estimates . Councilman Harrison asked Mr. Jones whether he thought Council now has sufficient reports to proceed to the second phase. Mr. Jones indicated he was relying upon Hornblower, Weeks ' investigation of the financial responsibility of the developers . Mr. Coleman called attention to the need for identification of two people. Mr. Silverton said he did not want that to cause a problem; that they did not have to be involved. Mayor Mangini called attention to Mr. Kirkup ' s suggestion that the entire project should be restated in detail . Councilman Martin said it would help him if he knew more definitely the scope of the project. He didn ' t know how many acres of land are involved or how many acres were to be purchased from Anza. He reminded Council that once the City is committed to the bonds , if they ultimately fail , the taxpayers are going to have to pay for them. He said he saw no need to hurry. Mayor Mangini pointed out that when Council gets all the information , under the terms of the contract, there is a month to act. Mr. Jones said the City is not legally compelled to act on the time schedule at this meeting . Mr. Silverton has not completed submission of all the information he is to supply. Councilman Harrison said he thought to satisfy everyone a delay is in order to look into questions raised by Staff memoranda. Councilman Amstrup suggested a time limit of two weeks within which Councilmen could satisfy themselves regarding any ques- tions in their minds. Councilman Martin requested another meeting, and Councilman Crosby requested that a meeting be set sometime before the second February meeting of Council . A special meeting was set for Tuesday, February 15th. Council requested a definition of the project, preferably by February 8th. Mr. Silverton asked when the time will begin to run. Mr. Coleman replied on February 21st if all required information has been received. 4 Mr. Kirkup called attention of Council to the golf course situation . The architect is proceeding with the driving range. Also the city is getting some soil at no charge which will be used to surface. There will be about 40 ,000 yards of dirt, so that matter should be cleared by Council because there will be large mounds when it is delivered. There was no objection. Councilman Amstrup stated that he would like to suggest for Council ' s con- sideration the possibility of turning the lagoon into a fresh water lagoon , using rainwater in the winter months and water from the wastewater treatment plant in the summer. It could be used for irrigation purposes , and perhaps planted with trout. Mayor Mangini questioned Mr. Kirkup who suggested that it was a possible plan , especially since it was planned to use the reclaimed water for golf course irrigation . He commented that it would have to be taken up with BCDC and a method devised to keep the fresh water in. 6 . BUSINESS LICENSE ORDINANCE Mr. Coleman stated that there have been several suggestions with respect to the proposed revision of the business license ordinance and Staff requires some direction. Mr. Schwalm commented that the basic problem is that there are inequities with the flat fee. Mr. Millican proposed in his memorandum that like many cities we have a flat fee but relieve the inequities by charging by the number of employees . His memorandum has a breakdown on revenue based on the number of employees in the city if you charged a flat fee and $3 per employee. Mr. Millican explained that Burlingame is getting about $3 per capita under pre- sent ordinance, whereas the State average is $6 per capita. Ten years ago the League of Cities study showed it was $3 statewide. Mr. Coleman pointed out that the present $25 flat fee was set in 1947 . Mayor Mangini questioned the inclusion of rental units . Mr. Millican stated that while we don ' t charge for rental units presently, 89 to 90% of the cities levy some charge on them. His idea is that we could broaden the tax base. Councilman Martin observed that whatever the charge it will be passed on to the renter and he felt that a rental unit charge should be based on the number of baths so that senior citizens won ' t bear the brunt. Mayor Mangini asked if the proposed ordinance would be presented to the Chamber of Commerce before it is introduced. Mr. Keyston said that he has not heard that there will be a violent reaction to doubling the fee or to an employee charge , but there were negative responses to a possible gross receipts tax . Mr. Coleman said he intended to do some research and that he would come to Council again before anything is presented to the Chamber of Commerce. Council agreed he should look into inclusion of rental units under the business tax ordinance. 7 . RE-EVALUATION OF PARKING PROGRAM Mr. Schwalm pointed out that the Delieu , Cather report of 1972 recommended that there be a re-evaluation of the parking program in not less than five years with respect to off-street parking. . Two suggestions were a second deck on Lot A next to the library, and long-term parking more distant from Burlingame Avenue for those who are willing to walk. Mr. Kirkup agreed that his department would \. present a report and re-evaluation of short and long-term parking by about June. 5 8. WATER CONSERVATION Staff were complimented on the excellent memoranda which had been circulated to City Departments . It was announced that a resolution would be introduced at Monday night' s meeting urging cooperation by residents in outlined methods of water conservation. Letters are to be sent to business and industrial users . Mr. Kirkup requested permission for mailings to all residents , and asked direction, as to give-away shower restrictors . Mr. Kirkup was asked to obtained more information on the cost of shower restrictors and report to Monday night' s meeting. 9. LIBRARIAN APPOINTMENT Mr. Schwalm reported that the Librarian is retiring . As stated in his memorandum to Council , Mrs . Bersing is well qualified for appointment as Librarian and it is his recommendation that this be done. There was no objection. Councilman Amstrup questioned what would happen if Hillsborough elects to participate in the County Library System and residents are able to use our library without fee. It was suggested that Burlingame pull out of the County system in that event. Councilman Amstrup suggested that Hillsborough be advised of the City ' s position . Mr. Schwalm asked if there is any objection to changing the position of Chief Fire Inspector from classified to unclassified . There was no objection . Mr. Kirkup was compliment on the excellent public meeting held for discussion of the proposed Broadway interchange. Councilman Crosby commented it was pro- bably the finest public meeting he had attended and said he had found it very constructive and well chaired. Comment was made about the suggestion that Southern Pacific be asked to have the train stop farther north of Broadway so the intersection is not blocked. Mr. Kirkup said Southern Pacific has been contacted to see if it can be done. The meeting adjourned at 11 : 15 p .m. 6