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
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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 .
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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 .
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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
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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
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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 :
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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
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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
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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.
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