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HomeMy WebLinkAboutMin - CC - 1976.11.10 A G E N D A STUDY MEETING f November 10 , 1976 8: 00 P . M. 1 . Progress Report of Peat , Marwick , Mitchell including filling Finance Director Position 2 . Convention Center/Golf Course Report and Layout 3 . Next Undergrounding Project 4 . Sludge Handling Project Report 5 . Planning Commission a. Resolutions regarding Zoning Boundaries b . Problems in Completing Commission Minutes for Council 6 . Sign Code Political Signs 7 . Ox Mountin Land Purchase by County 8 . Civil Defense Organizational Structure 9 . Other BURLINGAME CITY COUNCIL STUDY MEETING - November 10 , 1976 COUNCILMEN PRESENT : AMSTRUP , CROSBY , HARRISON , MANGINI , MARTIN STAFF PRESENT : SCHWALM , COLEMAN , KIRKUP , SWAN , HILL , SOMMERS I . PROGRESS REPORT OF PEAT , MARWICK, MITCHELL & CO . - FINANCE DEPARTMENT SURVEY William D . Gage and Bill Gochnauer presented an oral progress report of the survey of the Finance Department supplemented by model sets of management reports and financial statements they felt followed good accounting principles and were appropriate for use by this city . Mr . Gage stated that the purpose of the progress report was to inform Council of what has been done to get a broad understanding of current procedures and potential areas for improvement . From their study to date they would recommend use of a general ledger , especially because it would establish control accounts essential to internal interim reporting needs and audit reports . They explained the effect of lack of control accounts for the expenditure and encum- brance phase of the Finance Department in reporting to Council and Staff . It was pointed out that the Burroughs machine is capable of writing warrants and automatically making journal entries . The payroll handling had several sensitive areas so far as transfer of time data from employee entries to payroll . One recommendation is use of a common form which is employee generated and moves directly to the payroll de- partment . No change of the payroll processing system to overall automation is indicated at the present time . The Treasurer ' s functions are outside of their engagement but had been looked into so far as it interrelates with the Finance Department . They would recommend the pooled cash concept of banking , except for certain trust funds and treasury funds which by their nature or for legal reasons should be segregated . Accountability can be maintained by fund reporting . In dis- cussion Mr . Sommers had concurred with their recommendation . They understood Mr . Maddux favored the current system , but , after speaking with him , they believed the system outlined by them was acceptable to him . Mayor Mangini asked for an illustration of the pooled cash concept . Councilmen Martin and Crosby noted that the reason for many accounts was to spread the City ' s banking business to many banks in the community . Mr . Sommer pointed out that the size of accounts in many banks doesn ' t do any of then{ a great deal of good . Mr. Schwalm said a general ledger has been recommended for many years but not accepted because of limitation of the number of staff . He asked if other recommendations would result in efficient use of time so that employees would have time for maintaining a general ledger without increasing staff . Mr . Gage said that the first decision is what system should be used and the second how to do it . If a data processing system is used it will save some staff time . In further answer Mr . Gochnauer said that model forms combining time saving functions had already been drafted . i Councilman Martin asked if Council wished to proceed on this basis , and Councilman { Crosby pointed out that he had heard no objections . Councilman Martin said he was interested in a general ledger and accrual basis rather than cash basis ; he would rather look at a purchase order list than a warrant list about which he could no nothing . Mayor Mangini said he thought the study was on the right track and that his concerns seemed to be answered . Mr. Gage then discussed model forms of management reports setting forth current data on a regular basis , for the purpose of identifying problems in a timely manner among other advantages . He pointed out that auditing systems should be kept on a current basis so that answers are readily available . Councilmen Amstrup , Harrison and Martin approved the objectives states as the basis for the model financial statement and commented on the need for current information concerning specific expenditures and revenues available and its advantage in responding to taxpayer inquiries . Councilman Harrison said he assumed there was some idea about the staffing of the Finance Department . Mr . Gage indicated that they did not think it is appropriate to discuss that matter at this meeting , or until procedures to be used are identified . s i With respect to recruitment of a finance director Mr. Gage said that though .� they wished to be helpful they felt it appropriate for Mr. Schwalm to under- take this, but they would comment on the matter as requested in the process of select ion. Mr. Schwalm explained that there are several ways to go about recruiting a finance director. ''We could get an organization like ;Corn-Ferry & Associates in San Francisco whose fee would be around $5,000; Ralph Anderson Associates in Sacramento go out and seek people - they do all the work, advertise, interview, etc. - and their fee would be anywhere between $3,500 and $5,000; or we could ask Peat, Marwick,Mitchell to recommend someone from their firm or who they know about; or we could recruit by advertising ourselves. Mr. Gage said they are not actively engaged in this area, but could look within the firm and to other people they were aware of and recommend someone to the City informally. Mayor Mangini asked whether Peat, Marwick, Mitchell could operate the Finance Department until we find someone, and Mr. Schwalm added that we need direction on an interim basis. Mr. Gage said they could not do so; they could make recommendations but not in terms of actually doing the implementation. Councilman Harrison asked what the advantage would be of using a firm like Korn-Ferry and Mr. Schwalm said the advantage would be their expertise and experience. Mayor Mangini and Councilman Crosby commented that the City's experience in recruiting would make the use of a service worth the cost. Councilman Martin pointed out that it might be well to contact other cities; frequently cities interview a number of people and there are three or four who are qualified applicants, but only one is chosen. Mr. Kirkup suggested the League of California Cities as a source for applicants. Mr. Gage said they felt the City needs a fairly strong individual to manage the revised and improved finance department systems - "you need someone to make this happen; it won't by itself." Councilman Harrison asked if Peat, Marwick, Mitchellwould be available to talk with a recruit and indicate our concerns ane what we are looking for. Mr. Gage said they would also be willing .� to assist the City in interviewing and looking at resumes. Councilman Martin suggested we let Peat, Marwick Mitchell look for a couple of weeks before we go further into recruiting. Councilman Harrison suggested Peat,Marwick, Mitchell attempt to come up with a recommendation by the December 6th meeting, and,if they have not been successful by that time in recommending somebody,we could go in another direction. Mr. Gage summarized that they felt we have a fairly good agreement that the survey is going in the right direction, and based on that they will continue and will also look around for possible candidates for the finance director position. II. CONVENTION CENTER/GOLF COURSE - REPORT AND LAYOUT Mr. Schwalm outlined the sequence of matters to be considered in moving this project forward. Mr. Ken Jones was asked to comment on the status of the selection of an organization to prepare the economic feasibility report. He indicated that National Feasibility Corporation had reduced its fee for the study from $36,500 to $22,000. Mr. Paul Dinkelspiel reported that all the people who responded to the request for proposals represented reputable firms. Some have more experience with hotel and convention centers. National Feasibility Corporation recently did the study for the Sheraton and Hyatt Hotels in this area. Mr. Barry Silverton had talked to them after which they reduced their fee quotation to $22,000. Mr. Dinkespiel assured Council that the firm would be responsible to the City, and that an independant feasibility study must be had to market bonds. National had represented hotels and people all over the country and their reputa- tion could be destroyed by a bad report and by modifying their fee they would not do a study that would injure their reputation. Keyser/Marston Associates recently did a study for the Brisbane proposed con- vention center. They are excellent and Mr. Dinkelspiel has worked with them. Larry Smith and Company has the lowest bid of $12,000. Their experience isn't as well directed toward hotel and convention centers. The other firm checks -2- out well and has good credentials, but their fee is higher. Councilman Harrison commented that he seemed to have narrowed the choice to National Feasibility and Keyser/Marston. Mr. Dinkelspiel said Keyser/Marston has done a tremendous amount of auditing of hotels and a greal deal of work for public agencies. Mr. Harrison pointed out that there was about $5,000 difference in price, to which Mr. Dinkelspiel responded that somebody could approach Keyser/Marston about price and might negotiate with them. He com- mented that they wanted the best study possible, and that the amount of the difference was insignificant when one considered the amount involved in the entire project. Mr. Barry Silverton addressed the meeting. He said he read all the proposals carefully and, after getting permission from Mr. Jones and Mr. Dinkelspiel , he called National Feasibility because, although he considered all four were good and had good credibility, he thought National Feasibility were the best of the group. They did the studies for sixteen hotel-convention centers of which four or five were joint ones. They did 80 per cent of IT&T's work and all of Marriott's work. He said he told National Feasibility he thought their price was way out of line and suggested somebody come out here because a good deal of the ground work had already been done. The president sent an executive vice president of the agency who spent two days and found sufficient background work had been done so they could cut their bid down. Mr. Silverton has a 34-page memo of what would be included in their study. Keyser/Marston is also qualified although they did the Brisbane study and he questioned whether there would be some sort of conflict if they did this one also.. He thinks the Larry Smith firm is good, but they have principally done shopping centers. Mayor Mangini questioned National's credibility. Mr. Silverton said they were perhaps the biggest, their reports get a high rating and their credibility is impecable. Mayor Mangini questioned their credibility in the bond market and Mr. Dinkelspiel assured the meeting that there would be no trouble with any one of the companies which had submitted proposals. Councilman Amstrup commented that he would �. rather do business with some local firm. Councilman Martin asked Mr. Jones' opinion. Mr. Jones said he thought all the comments by Mr. Dinkelspiel and Mr. Silverton were in order and well thought out, and that National Feasibility would be a good choice. Councilman Martin stated it would cost us about $28,000 - $22,000 and $6,000 for Sherman. Councilman Amstrup questioned whether the statement had not been made that they would know by the expenditure of $5,000 whether or not the project would go. Mr. Coleman asked whether Sherman could be put off until after it was determined whether the feasibility report would be positive. Councilman Crosby said that Mr. Keyston had said no. The question was asked whether we are commited for $5,000 or $11 ,000. Mr. McMillan stated that it would appear that it could be done for $5,000 and that would appear to be the first step. He thinks the agreement should be worked up that Mr. Silverton pay for the feasibility study if it is not favorable, and if it develops favorably certain procedures which should be j followed so the matter can proceed. I Mr. Silverton stated that the economics of the project is that the golf course i is an important part of it. Economically it can be determined that the City might well want the Sherman report, but it isn't needed to determine the convention center is a go situation. The City needs only the feasibility study to know that it is a no-go. Mr. Dinkelspiel said that he agreed with Mr. Silverton that the overall convention center with golf course would produce a better convention center, and it would be better to have the Sherman study than have someone chosen from Florida. He said he thought that after three weeks and the expenditure of $5,000 it would be known whether the project is feasible and that he felt Sherman doesn't need to be called in unless the feasibility report is favorable. Councilman Martin commented that we then don't need Sherman now. Councilman Harrison observed that we started out to build a golf course, Mr. Silverton approached Council with the convention `- center idea, and now what we want to know is whether the convention center is feasible without the golf course. Councilman Amstrup agreed and said he ! suggested that the golf course go ahead whether or not the convention center does. -3- Mr. Kirkup asked where the EIR comes in on this. If after three weeks "N the feasibility study is favorable and the EIR recommends that we don't want to go ahead with . it. How far do we want to go? Mr. Schwalm called attention to Mr. Swan's report on EIR proposals and asked how that fit in. Can the feasibility study go on without the EIR? Councilman Martin observed that things could stop on the EIR, and asked who pays for it if the feasi- bility study is go and the EIR is no. Mr. Coleman commented that was a good legal point; theoretically you can't go on a project where the EIR indicates it has negative effects. Mr. Silverton questioned what constituted a good or bad EIR from a practical point of view. Anza Airport Park has the equivalent. Almost every area that would go into the EIR has been covered with the exception of additional traffic and the relationship of buildings to the bird refuge area. Those were the only two points not available to the City at the present time. There was an EIR done on the hotel . He thought the EIR really wouldn't be a problem, if it could be determined what is good and bad. It was stated that the developer pays for the rough draft and the City pays for the formal draft, and Mr. Silverton said he would go along with that. Mayor Mangini asked if he was making the point that we didn't need an EIR. Mr. Silverton replied that this particular Property has been worked on; it has been done and all you need is somebody to correlate it. On the traffic report the EIR will say there will be 650 more bedrooms per day as a result of the convention center times 220 days per year. The convention bureau will then tell them what percentage of cars will be local , from Southern California and from Eastern sources. As to how this affects the area which will remain open space area of the Bay will be the principal determination of the EIR. He pointed out that Mr. Blunk had the material available at the meeting. Mr. Blunk commented that there was some simplification to what Mr. Silverton was saying. There are a lot of problems and there will be somewhat more work to it. Councilman Amstrup asked where we stand with BCDC on this project. Mr. Swan replied that any project within 100 feet of the shoreline would need approval . Mr. Keyston commented that there were two ways to approach BCDC: one is to go to see them and the other is to stay more than 100 feet from shore. He said he understood they don't jump up and down with enthusiasm about golf courses. Mayor Mangini commented that National Feasibility or whoever was retained would have to consider it. Mr. Jones said there is a revised time schedule with BCDC mentioned for the making of a formal application sometime around March 1st after the feasibility report. Mayor Mangini questioned if it wouldn't be prudent for BCDC to be approached first. Mr. Jones replied that there is no reason why that can't be done informally. Councilman Martin said he felt Mr. Silverton's comments about the EIR were an over-simplification and asked Mr. Jones how the City would save its $28,000 if the project is stopped some- where along the line. Mr. Jones replied that there were two steps to be taken: one is to identify a feasibility and an EIR developer; and between now and December 6th their assignment would be to negotiate a financial agreement with both of those. Staff would be working on the EIR and they would with r, the feasibility end. The question of who was going to be left with "the dead horse" would have to be worked out between now and December 6th. Councilman Martin pointed out that the Council is committed not to cost the City any money. Mr. Jones said Mr. Silverton is going to pay for the feasibility study and the EIR. The problem that hasn't been faced yet is what happens if the feasibility study comes in positive and the EIR comes through so negative the project can't go forward. He said he didn't have an answer for that. Councilman Martin commented that was the part he 'boesn't buy." Mr. Swan pointed out to the Council they might wish to consider that they were wearing two hats: as City Council and as a redevelopment agency. Perhaps the amount of money that the applicant deposits with the City can be the amount of money required to develop an EIR. It was suggested that the EIR should be proceeding right along with the feasibility report. Mr. Kirkup stated there could be a preliminary study to highlight any impacts. Councilman -4- Martin pointed out that a limit of $5,000 had been set and suggested that an EIR be done that should be able to come up, for a limited amount of money, with a highlight of any major impact so that it would be a go or no-go situation on the EIR. Mr. Dinkelspiel asked if he would have them done concurrently and Councilman Martin replied yes, because either could flag the other. Mr. Jones indicated it would seem sound to go along with that. Mr. Swan concurred that a preliminary study might be worked out. Mr. Martin added that he was still trying to find out if Mr. Silverton is going to pay for it. Mr. Jones stated that Sharon White just told him that apparently the procedure suggested is built into the proposed guideline changes as of January 1st. Ms. White explained that the guidelines of the Secretary of The Resources i Agency are changed effective January 1st when they require an initial study and then an environmental impact report on those items pointed out which show an environmental impact. Mr. Keyston pointed out that so far as BCDC is concerned, the convention area is not an area under their jurisdiction, but the golf course is. Therefore he would consider this two projects and go to BCDC with only the golf course because if they are put together BCDC will go into everything. Councilman Martin said he thought the most crucial thing on the EIR is air polution because of the combination of the Airport and more cars; that was what worried him about the EIR - air polution. Mayor Mangini. asked Mr. Coleman what was needed now. Mr. Coleman said Council should decide on an EIR outfit. It had Mr. Swan's recommentation, and he gathered Council had decided on somebody for the feasibility study. Councilman Martin felt that we had to go back and negotiate to work out between now and December 6th "how the City won't have to pay for anything." Mr. Silverton pointed out that Larry Smith made a bid of $6,000 for the EIR as a special report in connection with his feasibility study. Mr. Dinkelspiel explained that in the blue binder originally they had asked all the bidders if they wanted to do it. Larry Smith is the only one who responded. Mr. Silverton explained that Larry Smith is a San Francisco company. Councilman Martin suggested that the Council negotiate with Mr. Swan's recommendation, H.K.S. , Inc. fair. Swan said the time period would be similar to the $5,000 preliminary feasibility study. Councilman Martin commented that no one is going to go with anyone until Ken Jones works out an agreement and Councilman Amstrup added that no one is going to spend anything until we know this thing is going to work. Councilman Martin suggested that Mr. Coleman and Ken Jones get together with Cy McMillan and work out a draft of agreement so that Council can go over it and get any objections in well before December 6th. Mr. Silverman suggested that he show the preliminary site plans to the meeting so everyone could determine where the project was and he then discussed the latest site plan at great length. Mayor Mangini asked,if the project is undertaken, who is going to pay for the golf course. Mr. Jones replied that they had talked in vague terms about the arrangements. The way it has shaped up, Barry Silverton and his advisors feel the only way it can be done is with a basic owner's lease - a joint owners' agency. That agency is going to lease the complex to the City, and there will be a sublease by the City to Silverton who will manage the whole complex under a sublease. Mr. Silverton added that everything has to be under one manage- ment, whether there are one, two or three subleases; one management and one sublessor who will guarantee the payment of the bonds. The project has to be run as a public facility. Mr. Jones explained that the signfiicance of this is putting the whole thing into one operation so far as the IRS is concerned. He said this has to be an exempt situation so far as tax laws are concerned: it has to go as an exempt facility sublease. In order for the arrangement to work so that interest on the bonds is tax exempt, it has to be set up with a sublease to the Silverton organization. Mr. Coleman asked if the lease goes to competitive bidding. Mr. Jones said it would. -5- _L In answer to a question about the interest rate on the bonds Mr. Dinkelspiel stated that bonds today go for around 7 per cent. Councilman Amstrup asked if the golf course is for Burlingame people and stated there was 'no way he was going to approve this if the citizens of this town lose their land and the golf course too. Mr. Silverton stated that this is basically a public golf course and Mr. Jones added emphasis by stating it was a requirement of state law. Councilman Crosby asked if citizens from other towns play on it by payment of greens fees. Mr. Jones reiterated that it is a public golf course. Councilman Harrison asked Mr. Graves if, with this plan, it is possible to proceed on the driving range even assuming the whole project doesn't go. Mr. Graves responded that it is possible to start because he had assumed he was to but he had several considerations to raise. There are some steep embankments that don't show on the site plan and he had to start all over again. He could get his specs and detail drawings about three-quarters completed so they could be worked both ways if the location of the driving range were changed should entire pro- ject not ba undertaken. However he would have to know exactly where the driving range would be situated. Councilman Harrison asked about the time element and Mr. Graves said the soonest he could be ready would be two weeks or so, or a month if he were diverted. He had talked with the soils people and they told him that if they were given word to go ahead it would be two weeks before they could get on the job with drills. By that time he would reach a stopping point and he can be told whether he can go ahead because the City would have its preliminary EIR. He commented that if the driving range were moved it would mean the soil test for the driving range would have been made in what would be the parking area. lie said he could design a driving range that has twenty tees or so; all that would be lost is some turf. Councilman Amstrup asked Councilman Martin if he saw anything wrong with that from a con- tractor's point of view. Councilman Martin said he thought the soils portion should be started. Mr. Kirkup pointedout that if the City proceeded with it, -� whatever the cost, the City would be funding it now. They could acquire the Anza property through the Redevelopment Agency. Mr. Kirkup observed that the consensus is for the job of the golf course to go on and to get the soils engineer in. Mr. Graves concurred that the area should be stabilized and the turf gotten underway and said that he is not going to do anything he would have to re-do unless he was asked to. Councilman Martin suggested that he go as far as he could. Mr. Kirkup asked Mr. Dinkelspiel if he was going to go ahead with the contract with the feasibility people and Mr. Dinkelspiel answered yes. III. CETA PROGRAM Mr. Schwalm presented a memorandum recommending participation in the CETA program by requesting funds for the hiring of six employees under the program. There was discussion of the need for a landscape architect and the advisability of substituting a park laborer instead. Councilman Amstrup question the cost to the City above the $151 mentioned in the memorandum for staff time connected with the employment of CETA employees. Mr. Coleman explained that the program encouraged employment for the purpose of training with the ultimate goal of retention of trained employees as permanent staff. Mr. Schwalm was direct to substitute a park laborer for the requested park employee in the application to be submitted for CETA employee funding. IV. There was a short discussion of the key ring memento to be given to visitors. Councilman Harrison suggested that it could be used for the young people participating in the Youth in Government program. There was general approval of the sample key ring displayed. V. COMMISSION VACANCIES Councilman Amstrup reported that he had received an inquiry from a commissioner -6- who had not been asked if he would like to be reappointed. Mr. Schwalm reported that letters had not yet gone out on the commission vacancies but would shortly. VI. CIVIL DEFENSE ORGANIZATIONAL STRUCTURE Mr. Schwalm referred to Council information regarding this item and recom- mended that Council not go along with Chief Moorby's suggestion at this time. The two former Civil Defense positions have been combined into the position of Civil Defense Assistant, which position is currently held by Ms. Lynn Farrario. For the present at least Ms. Farrario will be under the general supervision of Chief Fricke of the Fire Department as Mr. Schwalm felt the Fire Department should have this responsibility as they have common problems. Mayor Mangini and Councilman Martin concurred after an affi-rmative response from Chief Fricke as to whether this was his understanding and recommendation. VII. POLITICAL SIGNS Mr. Coleman called attention to his memorandum concerning the appeal of the recent political sign case involving Redwood City, and particularly the re- quest that the City participate to the extent of $100 in the cost of the amicus brief which would be filed in the appeal of the lower court's I decision by interested cities. Councilman Martin questioned our interest in the appeal , and Councilman Amstrup observed that it seemed to him in our interest to protect the City's privilege to decide how political signs are displayed within the City. Mr. Coleman informed the Council that there are funds in his budget for associate council from which the $100 could be paid.' Mayor Mangini, Councilman Amstrup and Councilman Crosby assented to the use Of $100 for participation in the amicus brief. VIII. ZONING BOUNDARIES Mr. Coleman called the Council 's attention to the Planning Commission resolution regarding zoning boundaries, and in answer to Council 's questions explained the need for code revisions on this phase of zoning. He was directed to present an ordinance to Council at . its regular meeting November 15th for first reading. IX. Mr. Kirkup advised Council that the sludge study has been completed. In p answer to a question about other cities' handling of the problem of sludge disposal he said South San Francisco and Daly City still have a commercial compost product made by use of sludge, rice hulls and coffee grounds. He said the City has entered into a joint powers agreement. The meeting adjourned at 11 :50 p.m.