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HomeMy WebLinkAboutMin - CC - 1977.01.12 A G E N D A STUDY MEETING January 12 , 1977 8 : 00 P . M. 1 . Plan for Fire Station No . 3 Addition - Al Kahl 2 . Peat , Marwick & MItchell - Finance Recommendations 3 . Title II Antirecession Funds 4 . Bike/Pedestrian Bridge on Bayfront 5 . Economic Feasibility Report on Parking/Retail Stores 6 . Civic Arts Use of Burlingame Avenue Building with American Legion 7 . Business Licenses 8 . Discussion with Silverton or Representative regarding H . K. S . Request for Additional Compensation , 9 . Other I BURLINGAME CITY COUNCIL _ STUDY MEETING - January 12 , 1977 COUNCILMEN PRESENT : AMSTRUP , CROSBY , HARRISON , MANGINI , MARTIN STAFF PRESENT : SCHWALM , COLEMAN , KIRKUP , SWAN , MILLICAN , HOFFMAN , WAGNER , FRICKE and SOMMER 1 . PLAN FOR FIRE STATION NO . 3 ADDITION Mr. Schwalm presented the current drawings for the proposed alterations to Fire Station No . 3 and the kitchen renovation at Fire Station No . 1 . Mr . Al Kahl was invited to comment on the project . He stated that the drawings were not complete but , based on the schematics presented at an earlier date , were improved . It was estimated that the cost of the work on both stations would be between $ 125 , 000 and $ 130 , 000 , but it was explained that an effort was made to salvage whatever could be used at Fire Station No . 3 to bring down the costs . It is hoped the job could be bid either as a combined project , or each fire house separately , and it was hoped we could take whichever was better - a combined bid or separate bids for each fire station . In answer to Councilman Amstrup ' s quiry whether the project was the same as had previously been discussed Mr . Kahl indicated it was but that the new set of drawings were presented for Council ' s review . He said there is a slight soil condition that is being resolved . Councilman Crosby asked Chief Fricke if he approved . He responded that he did , and that the presentation was merely a progress report . Councilman Crosby asked Mr . Kahl his opinion of current escalation of building costs . Mr. Kahl estimated it at about 10 percent per year . There being no further comments , Mr . Kahl said he would present the final plans as soon as they are ready . 2 . FINANCE RECOMMENDATIONS BY PEAT , MARWICK & MITCHELL Mr . William D . Gage and Bill Gochnauer of Peat , Marwick , Mitchell & Co . pre- sented a discussion of the Review of Finance Department dated January 12th which had been distributed to Council members . Mr . Gage said that in the area of data processing they had identified requirements of the City and considered five possible alternatives . He explained two methods of implementing data processing - batch service involving the delivery of information to the data processor and receiving the entered and processed information five days later , and on - line computer services involving communication directly with the computer utilizing a machine resembling a typewriter . In the latter method processed information would be sent back over the same machine , or a print out prepared on the bank ' s facility would be returned to the City the next day . Both data processing services are available through the Bank of America . He said there is also the possibility of having the City ' s processing done by a similar local organiza- tion , such as the City of San Mateo . 1 After looking at each alternative they felt that none really provides a coverage of benefits against costs which would warrant making a change at the present time from the City ' s Burroughs machine . They felt it is capable or producing the information which is required to implement the reports their preliminary presentation indicated should be available to Council and Staff . Council questioned whether Mr . Millican agreed with the recommendation . Mr . Millican said he had looked at the report , discussed it with Peat , Marwick personnel , and that he understood the procedures they recommended . Mr . Gage said that at some time in the future the City might wish to consider one of the other alternatives , but in the relative future this seemed the best approach . Mr . Gage said that in the area of utility billing they wished to recommend utilization of batch servicing as an alternative to the present method . A cost analysis is set forth on page 10 of their report . The current cost of utility billing , including machine rental , salaries , supplies and postage is approximately $4 , 800 a month . Based upon Millbrae ' s experience , using batch processing through the Bank of America ( 6 , 000 customers at $ 1 , 300 cost ) com- parable costs for 8 , 000 bimonthly billings would be approximately $1 , 800 per month . Two people would be required to organize the processing work and to check receipts . The result would be to free two people for other assignment . Councilman Harrison asked if two employees would be retained in the department and the other two reassigned . Mr . Gage said that was their recommendation . Councilman Crosby observed that at an additional cost to the City of $800 a month the services of two employees could be utilized elsewhere . Councilman Amstrup asked if all banks offer this type of service . Mr . Gage replied that Bank of America seems to be the only bank that is used , although Crocker T National also offers batch services to private and public sector clients . Mr . Gage reported that in the second area of their study they looked at the staffing of the Finance Department to determine necessary levels to support and implement their recommendations for City accounting procedures and fiscal reporting . He said they had analyzed present utilization of staff and had made recommendations for allocation of staff to make the transition from the old procedures to the new . There was discussion of the relation of duties of the City Clerk and City Treasurer and the allocation of employees ' time to their functions . Mr . Millican said he had discussed the recommendations with the City Clerk and Treasurer and he thought that there would be accord . Mr . Gage indicated that if there were no serious objections to the report , they would proceed to prepare the final report . Mr . Millican , in answer to Mr . Kirkup ' s inquiry , said he would start implementing the recommendations as soon as pos - sible and attempt to get the batch processing of utility billings under way . Councilman Martin observed that there is going to be concern by City employees . He thought it should be made clear that the purpose of the survey was not to reduce staff , but to increase efficiency . Mr . Gage said he agreed totally , and that he felt is sufficient work that has already been identified so that time of all employees will be very effectively used . Mr . Millican said he had a staff meeting on Tuesday and will have another one at which the situation would be clarified to the Finance Department employees . 2 3. TITLE II ANTI-RECESSION FUNDS Mr. Schwalm explained that Title II Anti -Recession Funds will be available from Federal funds to cities on the basis of revenue .sharing moneys for the purpose of hiring people to provide better basic services . He said staff had come up with a program which it hoped Council will accept. He commented on the use of some of the employees at the Library where it will be necessary to conduct a complete inventory of books so that the new security system can be put into effect. There is also a request from the Park Department for more employee time for tree maintenance. The amount of money that would be avail - able during the year was estimated at about $27 ,000. Mayor Mangini asked what were the requirements for qualification for funds . Mr. Schwalm explained the funds must be used for people who would be employed in basic services , not to begin new projects . Councilmen Harrison and Martin questioned whether pro- posals by the Manager included the cost of all fringes . Mr. Schwalm said he would check that item. Councilman Amstrup questioned the period for which work would have to be guaranteed for an employee. Mr. Schwalm replied that only temporary jobs would be involved which would not result in civil service status, and under this program there would not be necessity to assist employees to find other jobs . Councilman Crosby asked how a determination of the amount of Federal Government funds allocated is made. Mr. Millican said that basically there is an allocation based upon the County unemployment rate. Councilman Harrison said that if Mr.. Schwalm would find out how much the program covers , he is basically in favor of it. There were no objections to program partici- pation voiced on Mayor Mangini 's question. 4. CIVIC ARTS COUNCIL USE OF BURLINGAME AVENUE BUILDING LEASED TO AMERICAN LEGION Mr. Coleman indicated that after his memorandum to Council was prepared it developed that there was some confusion as to what the proposed agreement between the Civic Arts Council and the American Legion is . He suggested that the matter be put over until the proposal can be clarified in writing by both organizations . The City ' s lease of the building to the American Legion termin- ates in June, at which time the City will own the building . The Civic Arts Council proposed buying out the Legion ' s six months ' remaining interest in the lease. There is a problem with insurance still to be discussed with Art Samuels ; but Mr. Coleman wants concurrence for this type of arrangmeent before he prepares an agreement with the Civic Arts Council . Mr. Don Spencer confirmed the Civic Arts Council ' s wish to enter into such an arrangement. He explained to Council that the Arts Council is anxious to get its properties out of Coolidge School , which is to be sold , and settle into a permanent building so they would be in a position to apply for supporting grants available to the Arts Council only when they are so established. He said the Arts Council expects to take over the lease at $1 a month rental payable to the City until June 7th, and in addition pay the American Legion $100 a month until January 1 , 1978, and assure the Legion a meeting place until thattime in the building. He said the Civic Arts Council wants to move in as soon as possible and fix the building up - not up to Code as the City would do , but better than it is now. Councilman Amstrup questioned the $100 a month payment to the American Legion and Councilman \.. Harrison asked where the monthly rental would come from. Mr. Spencer explained 3 that the American Legion had been generating money from rental of the building for dances and other functions until that use was stopped , and the organization needs money to continue its projects . Rental is an item of the Civic Arts Council budget submitted to City Council quarterly . Councilman Martin questioned rental payments until the end of the year if the Legion ' s lease of the building expires in June . Mr . Wagner was asked if the Legion could not meet at the Recreation Center . He explained that it is difficult to assign a room for only one evening a month because occupancy of the room is lost for that night of the remaining three weeks of the month . Councilman Amstrup objected to leasing the building to the Arts Council unless it is brought up to code . The Building Inspector had found rafters are loose , there is no handicap ramp , and the kitchen facilities need work . Councilman Martin pointed out that there are two problems ; one is the lease , and the other is bringing the building up to meet City codes , estimated to cost $9 , 500 . He asked Mr . Kirkup to prepare his estimate of what it would cost to bring the building to Code . Mr . Spencer was requested to obtain a written proposal from the American Legion and to inform Council in writing of the Art Council -pl-an, so the City Attorney will be able to advise Council . Mr . Kirkup stated he will have the cost figures for Council ' s study meeting of February 2nd . Mr . Spencer asked for assurance that the Council will rent the Building to the Civic Arts Council in June when the Legion lease terminates. Councilman Martin indicated this could not be given until repair figures are received and they know all the facts of the proposal . The item was continued to the next study meeting . 5 . REQUEST OF HKS FOR ADDITIONAL COMPENSATION FOR CONVENTION CENTER ENVIRONMENTAL IMPACT REPORT Mr. Schwalm explained that with respect to the EIR being prepared by HKS , the scope of the work was increased and HKS is asking for increased compensation in the amount of $ 1 , 000 for Phase I and $1 , 800 for Phase II . Mr . John Buss of HKS was present because there is a question of who pays the extra compen- sation if it is fair and equitable . Mr. Buss said that the proposal for the EIR had been worked up early in November . At that time he talked with everyone who was available . He did not have a site plan by the day the proposal was delivered . He was aware that the critical problem would be traffic . As the program developed the issue of 10 . 7 acres of parking came up , and that neces - sitated considerably more work for his firm and its consultant . He had estimated* the additional cost at X1 , 200 and $1 , 800 for the two phases . Those figures , when rechecked today , appeared to be correct , which means that the total costs would go from $9 , 000 to $12 , 000 . He stated it had been difficult to nail down the program . The accepted proposal was dated November 5th , but it was weeks later before they were advised of the inclusion of the ten acres of parking area , as a result of which a significantly greater amount of work in the analysis of traffic on Airport Boulevard and at the interesection is required . He said it is still not clear whether the additional parking area is new parking or a relocation of a pre-existing parking facility . He assumed it is a new facility , and now is told there is some question whether it is a relocation . Councilman Martin questioned whether the preliminary EIR and feasibility report contemplated the same scope of project . Mayor Mangini invited Mr . Silverton ' s comments . Mr . Silverton felt there was no controversy ; that it is clear that the parking lot is the Anza Par!:ing lot which will just shift slightly to the north . Mr . Buss interjected that the information which came from Otis Young of National Feasibility in the initial assessment was that there are 1274 spaces related to a new parking facility . If that is not so and it is , as Mr . Silverton says , to be a relocation of an existing parking lot , then the traffic will be con - siderably less . He questioned why they had been asked to include it as part 4 of the project description if the parking lot was already there . The map shows the parking area is now part of the project . The original map he received shows just the convention center , the hotel , associated parking , and the golf course . if the parking lot is merely a relocation , traffic will not be as serious an additional consideration as appears in the preliminary EIR . Councilman Martin questioned the reliability of the EIR and asked the City Attorney if the contract could not be terminated on the basis that HKS had completed the preliminary report and the contract is for two phases . Mr . Coleman indicated that the contract could be cancelled if there is a breach of its terms . Mayor Mangini asked for clarification as to whether HKS is requesting an additional fee for part of a project which hadn ' t been bid upon . He asked Mr . Coleman if the parking lot was in the original plans . Mr . Coleman said that in his opinion it was not . Mayor Mangini asked what options are open to Council in a situation when a bid was made on a proposal that did not include the entire project . Mr . McMillian interjected that Mr . Silverton will pay the $1 , 000 for the additional work on Phase I of the EIR . Mayor Mangini observed that the extra compensation is allotted for both phases and asked if the City wanted to pay for the second phase portion . Ken Jones observed that a private parking facility is going to be converted to a public parking area , and that certainly the EIR is going to have to cover it in one way or another . Sharon White said that the project will be included in the environmental setting and there will be required EIR work to meeting State Guidelines . Mr . Coleman said there is more work on the second phase , and Ccuncil should decide if the City is• going to pay for it . Councilman Amstrup questioned whose responsibility it was to inform everyone there had been an addition to the project - that appeared to be the basis of the confusion . Mr . Buss , in response to Councilman Harrison ' s question about the amount of increased work on Phase II , explained that it would be necessary to analyze the parking facility , and its effect must appear in the EIR . The principal problem is the increased traffic ' s bearing on the inter- section , and that will take considerably more time . Councilman Martin stated that he felt HKS ' s proposal could have been revised at any time between November 5th and December 20th when the contract was signed , or the proposal could have been withdrawn at any time . He asked whether HKS would accept the $ 1 , 000 . Councilman Harrison said he was willing to recommend the $1 ,800 additional fee for the second phase . Councilman Amstrup said he would like to have the Council determine that we get the complete EIR and suggested that a vote be taken on the question . Mayor Mangini convened a meeting of the Burlingame Redevelopement Agency , and called the meeting to order . Councilman Harrison stated that , taking into consideration the offer of $ 1 , 000 of Mr . McMillan on behalf of Mr . Silverton for additional work on Phase I of the Environmental Impact Report being prepared by HKS , he moved that , if it is de- cided to proceed with Phase II of the project , the City pay the additional $ 1 , 800 fee proposed by Mr . Buss for preparation of Phase II of the Environmental Impact Report for the Convention Center Project . The motion was seconded by Councilman Amstrup and passed by the following roll - call vote : 5 AYES : COUNCILMEN : MANGINI , AMSTRUP , CROSBY , HARRISON NAYES : COUNCILMEN : MARTIN The meeting of the Redevelopment Agency was adjourned . Mr . Buss called Council ' s attention to the necessity for HKS to be authorized to proceed with the second phase of the EIR . Mr . Coleman advised that such authorization need not be given until February 7th . There was discussion between Council , Mr . Buss and counsel concerning the three elements needed before Phase II would be authorized : the preliminary EIR , the preliminary feasibility study and the financial disclosure . Mr . McMillan stated that until Mr . Silverton knows whether or not the project is going to go ahead based on the preliminary reports that there is no serious impediment , it is difficult for him to approach his financial people . When he is so informed he will , before February 7th , present the financial data . Councilman Harrison commented that he found nothing that was monumental as an obstruction so far as the two preliminary reports are concerned . He stated that if that is the consensus , then Council approval can be given before February 7th . -Mr . Jones reported that he had checked the language of the feasibility report against the language of the contract , and the former is acceptable . Councilman Martin said that he had received the reports on Monday and was not prepared to approve them on Wednesday night . He felt he would like to have the figures checked by someone else . He did not wish to imply there was something wrong , but rather that he would feel more comfortable if it were confirmed that the reports are correct . He suggested there an an opinion from Council ' s financial consultant . The representative of Hornblower-Weeks confirmed that 1 . 6 is a good ratio . He commented that 1 . 25 is acceptable to buyers on the bond market , and that was the extent of the comments he could make about the figures in the feasibility report . Councilman Martin also questioned the $38 million dollar figure . Mr . Silverton stated that if cost and return figures were run out , the project would support a venture twice the amount that is being proposed . He explained that the purpose of the feasibility report was to run comparable costs . If the bond issue is 19 million and it costs 50 million there would be problems . He said be believes that is what the feasibility report means . The entire project has a value of 38 million and , if the project cost more than 38 million you would have to take another look . Councilman Harrison questioned whether the City would be responsible for only 16 . 9 million , or 19 million when the parking lot is added . Councilman Crosby asked an explanation of financial figures in - a memorandum prepared for a previous meeting by Mr . Coleman . Mr . Silverton explained the increased cost reflected a change from one year ' s funded interest having originally been taken into account and a later determination to consider a reserve of two years ' funded interest because of Councilman Martin ' s concern . Mayor Mangini asked Mr . Millican if he had any opinion on the matter . Mr . Millican said he had just gotten into it , but some of his experience has been in audits of savings and loans that have made large project loans , and he was going to address a memorandum to Mr . Schwalm about some questions . Mayor Mangini observed that he did not think Council is prepared to give its approval to proceeding at this time . Mr . Jones said Council has thirty days to evaluate the reports and he does not see that Council is called upon to take any action at this time . Councilman Martin said that some of the projections 6 concern hotel room rentals and what the parking facility and golf course are going to bring in five years from now. He said he felt someone else should look at the feasibility report and comment on the reliability of the figures . Councilman Crosby observed that National Feasibility and HKS had been hired to do the work and Council should be able to rely upon them. Councilman Martin declared that he was not comfortable about the feasibility report. Mr. Silverton said that people at John Hancock told him there were about 300 pages of material in support of the report and suggested National Feasibility should be called about any questions . Mr. Millican said that it would be difficult for anyone else to give an opinion on the validity of the projections without doing just about the same amount of work. Councilman Crosby questioned the parking lot figures as compared with Mr. Keyston ' s projections , and Mr. Keyston replied that the figures were very close to those of Anza. Mayor Mangini and Mr. Crosby asked whether the financial data would be avail - able on Monday night so that action could be taken at that time. Mr. Silverton responded that he would not have the financial disclosure information available by that time. There was discussion about the time within which Council must act after receipt of the financial disclosure data . Councilman Martin said he wanted to have the full thirty days after receipt of Mr. Silverton ' s data as provided in the contract. Mr. Silverton said that it was his opinion Council would not require thirty days , but, if they wished it, he would go along with it. Mr. Kirkup suggested that Staff review the reports and comment upon them, and that Council would have Staff reaction by the February 2nd study meeting . Mayor Manginni summed up the matter by stating that Council would have Staff �— memoranda by February 2nd , and that after the financial disclosure information is received there will be thirty days within which Council may act, but it would act before that time if it were ready. 6. PROPOSED BUSINESS LICENSE ORDINANCE Mr. Coleman stated that he had examined the Ordinance Code relating to business licenses and attempted to modernize it as it relates to today ' s economy and its fee structure. Councilman Martin indicated that he had a number of questions and suggested that the new Finance Director research the matter and advise whether license fees should be fixed on the basis of gross receipts or a flat fee, Mr. Millican said he would study the proposed ordinance and make his recommendation. Mr. Keyston expressed interest in the proposed ordinance if it contemplates fees based upon gross receipts and asked if he might give Council his thoughts on it after he studied it. 7. BIKE/PEDESTRIAN BRIDGE AT BAYFRONT Mr. Swan presented Council with pictures of the area where a bridge crossing Mills creek was proposed to link the bike/pedestrian pathway from the property owned by National Brulingame Associates with the lands of Anza, thereby 7 connecting by bridge the area of the Fisherman's Restaurant and proposed Benihana of Tokyo Restaurant with the area of the Charley Brown Restaurant. He explained that the Benihana people would go up to a $15,000 contribution toward the cost of construction if the bridge were designed in harmony with the architecture of their structure. Mayor Mangini asked if the bridge would interfere with the bird sanctuary. Mr. Swan replied that he did not think it would. He said the California Conservation Corps has asked for a project and might be willing to work on the bridge. Councilman Martin asked how much the project would cost the City. Mr. Swan said that of the estimated $65,000 cast he believed $20,000 would be shared by the County by matching.it with City funds, $15,000 would be contributed by Benihana, and we have a residual in the bike path fund which has not been committed. Mayor Mangini asked if there were any objections to going ahead, and, there being none, asked what action would be required. Mr. Swan said Benihana would design a bridge compatible with the design of their restaurant and they would commit up to $15,000 for bridge piling conditioned upon use of such a design. Mr. Swan was directed to obtain more information for Council. 8. ECONOMIC FEASIBILITY REPORT ON PARKING/RETAIL STORES Mr. Schwalm suggested that with respect to a feasibility report on the pro- posed projects Council not request proposals which would include the Post Office building site in view of his memorandum concerning the time element before the property would become available to the City if it were abandoned. He asked what he should request be included in proposals. Councilman Crosby noted that the proposal estimates go from $4,000 to $55,000. Councilman Harrison suggested that the entire matter be gone into at the special meeting scheduled for Saturday, January 22nd. There was discussion of the need for a feasibility report, the cost of obtaining a report, and the scope of coverages. Councilman Martin commented that it seemed to him that Council is going to go ahead with Carolan Avenue, he felt a feasibility study would not be required in that event, and he saw no point of an extra study meeting. The City Manager was directed to place the subject of the new police station on the agenda for the January 17th regular Council meeting. 9. PROPOSED SIGN ORDINANCE Councilman Amstrup said he had a copy of a letter from the Burlingame Business Association suggesting that under the new ordinance 50% of the signs on Burlingame Avenue are illegal, and asked if that is so. He was told they are non-conforming, not illegal. Mr. Coleman said that only eight of the signs would be non-conforming. He was asked whether it is true that if more than 50% of a roof sign is in dis- repair it cannot be put up again. He answered that that ordinance was passed in 1974 and it is still in effect; that aspect pre-dates 1974. The meeting adjourned at 12:10 a.m. 8