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HomeMy WebLinkAboutMin - CC - 2020.04.06CITY O BURLINGAME $AarEo � xE � BURLINGAME CITY COUNCIL Approved Minutes Regular Meeting on April 6, 2020 1. CALL TO ORDER A duly noticed meeting of the Burlingame City Council was held on the above date online at 7:04 p.m. 2. PLEDGE OF ALLEGIANCE TO THE FLAG The pledge of allegiance was led by Mayor Beach. 3. ROLL CALL MEMBERS PRESENT: Beach, Brownrigg, Colson, O'Brien Keighran, Ortiz MEMBERS ABSENT: None 4. REPORT OUT FROM CLOSED SESSION There was no closed session. 5. UPCOMING EVENTS Mayor Beach reviewed the upcoming events taking place in the city. 6. PRESENTATIONS a. COVID-19 UPDATE City Manager Goldman stated that the County has issued a new, more restrictive shelter -in -place order that extends through 11:59 p.m. on May 3. She explained that under the original shelter -in -place order, housing construction and remodels were allowed. However, under the new order, only affordable housing projects can go forward. She noted that this includes mixed -income projects with at least 10% affordable units. She stated that there are exceptions to this rule including if an individual has emergency repairs that need to be made. Burlingame City Council April 6, 2020 Approved Minutes City Manager Goldman stated that the new order has further restricted recreation. She explained that the order now denies the public access to dog parks, sports courts (tennis, basketball courts, etc.), and picnic areas. She noted that staff has locked up these areas and put up signs to acknowledge their closure. City Manager Goldman stated that the order continues to prohibit commercial gardening and landscaping. City Manager Goldman stated that under the order, some businesses may remain open including grocery stores, pharmacies, restaurants that provide takeout, and a few others. She explained that these businesses are required to have social distancing policies in place that are posted in their facilities. City Manager Goldman stated that the City offices continue to be closed to the public. She explained that staff that can work from home are doing so, and for those that can't, the City is implementing social distancing protocols and providing PPE. She stated that the City has furloughed casual (temporary/part- time) employees. The City is paying these employees a severance, and they can apply for unemployment insurance. She added that hopefully the City will be able to recall these employees when the shelter is lifted. City Manager Goldman stated that the City is continuing to conduct public outreach about the order and COVID-19 through the e-newsletter, social media, and the City's website. She noted that the County's website includes a detailed FAQ on the latest shelter -in -place order and what is considered essential versus non -essential. The County's website also has information about the SMC Strong Fund and how individuals can volunteer and donate PPE. City Manager Goldman stated that Finance Director Augustine updated the City's financial projections for FY 2019-20. She explained that on March 11, 2020, the City was projected to have $1.3 million in surplus. However, now the City is projecting a deficit of $10.1 million. She stated that the City had about $18 million in unassigned fund balance, and therefore this new projection leaves the City with approximately $9.9 million in unassigned funds. City Manager Goldman stated that the City is continuing to review expenditures carefully, and staff is being very judicious in their budget requests. Councilmember Brownrigg thanked the City staff for their hard work. He asked when Council should regroup to review the City's financial forecast. City Manager Goldman stated that Finance Director Augustine would be bringing a budget amendment at the May 6, 2020 meeting. Therefore, she didn't know if there was a need to regroup before that date. Mayor Beach stated that she was impressed with the collaboration that was occurring within the County. 7. PUBLIC COMMENT Burlingame resident Michael Rau asked if anything could be done about the noise of leaf blowers and other devices during the shelter -in -place order. (comment received via publiccomment(&burlin ag me.org). 2 Burlingame City Council April 6, 2020 Approved Minutes City Manager Goldman stated that commercial gardening is not allowed and that the households are responsible for telling their garden that they can't work. She explained that if the public sees commercial gardening, they should call the Police Department's non -emergency line: 650-777-4100. Burlingame resident Madeline Frechette asked that the City assist pedestrians and cyclists during the pandemic by automating walk signals in the city. (comment received via publiccommentgburlin a�g). DPW Murtuza stated that the City has implemented this change where it can be done. However, he noted that there are a lot of factors that go into automating the pedestrian signal, and that it isn't always feasible. A resident asked what the status is of the Broadway Grade Separation project during the shelter -in -place order. (comment received via Zoom chat). City Manager Goldman stated that the Mayor and staff went to Washington D.C. prior to the shelter -in -place order to ask for $125 million in federal grants for the Broadway Grade Separation project. She explained that the City is waiting to hear if they won any of the grants and noted that the City is looking into other grant sources to assist with the project. A resident asked if the Police Department is conducting night patrols in order to deter break-ins during the shelter -in -place order. (comment received via Zoom chat). Police Chief Matteucci replied in the affirmative. He added that there has only been one overnight commercial burglary since the shelter -in -place order went into effect. 8. CONSENT CALENDAR Mayor Beach asked the Councilmembers and the public if they wished to remove any item from the Consent Calendar. Burlingame resident Manito Velasco pulled item 8d. Councilmember Brownrigg made a motion to adopt items 8a, 8b, 8c, 8e, and 8f; seconded by Councilmember Colson. The motion passed unanimously by roll call vote, 5-0. Later in the meeting, ACA Spansail through City Attorney Kane noted that the Council had neglected to approve items 8g and 8h. Councilmember Ortiz made a motion to approve items 8g and 8h; seconded by Councilmember Brownrigg. The motion passed unanimously by roll call vote, 5-0. a. APPROVAL OF CITY COUNCIL MEETING MINUTES FOR MARCH 11, 2020 City Clerk Hassel -Shearer requested Council approve the Meeting Minutes for March 11, 2020. Burlingame City Council April 6, 2020 Approved Minutes b. APPROVAL OF CITY COUNCIL MEETING MINUTES FOR REGULAR MEETING ON MARCH 16, 2020 City Clerk Hassel -Shearer requested Council approve the Meeting Minutes for the Regular Meeting on March 16, 2020. c. APPROVAL OF CITY COUNCIL MEETING MINUTES FOR SPECIAL MEETING ON MARCH 16, 2020 City Clerk Hassel -Shearer requested Council approve the Meeting Minutes for the Special Meeting on March 16, 2020. d. ADOPTION OF A RESOLUTION APPROVING THE STREET RESURFACING PROJECT TO COMPLY WITH SENATE BILL NO. 1 FOR FISCAL YEAR 2020-2021 DPW Murtuza stated that the State requires cities to submit a list of projects that are included in SB 1 funding. He explained that the staff report outlines the streets that need to be resurfaced utilizing SB 1 funds. Mayor Beach opened the item up for public comment. Burlingame resident Manito Velasco asked how the City intends to comply with the SB 1 mandate to consider bicycle and pedestrian improvements as part of all projects consistent with the goals of SB 1. (comment submitted via publiccomment(&burlin ag me.org). DPW Murtuza explained that once the City's Bicycle and Pedestrian Master Plan is completed, these projects would be included when the street is resurfaced. Mayor Beach asked if Complete Streets is applied to street resurfacing projects. DPW Murtuza stated that where feasible, those improvements are incorporated in the project. Mayor Beach closed public comment. Councilmember Ortiz made a motion to adopt Resolution Number 035-2020; seconded by Vice Mayor O'Brien Keighran. The motion passed unanimously by roll call vote, 5-0. e. ADOPTION OF A RESOLUTION AWARDING A CONTRCT TO IPS GROUP, INC., FOR THE PROCUREMENT AND INSTALLATION OF SMART PARKING METERS IN THE DOWNTOWN AREA AND CITY PARKING LOTS IN THE AMOUNT OF $355,000 DPW Murtuza requested Council adopt Resolution Number 036-2020. 4 Burlingame City Council April 6, 2020 Approved Minutes f. ADOPTION OF A RESOLUTION APPROVING THE TENTATIVE AND FINAL PARCEL MAP (PM 18-07), LOT MERGER OF PORTIONS OF PARCEL C (PARCELS 2 AND 3) AS FILED IN THE OFFICE OF THE COUNTY RECORDER OF SAN MATEO COUNTY IN BOOK 13 OF PARCEL MAPS, PAGE 18, AT 1095 ROLLINS ROAD DPW Murtuza requested Council adopt Resolution Number 037-2020. g. ADOPTION OF A RESOLUTION OF INTENT TO AMEND THE CITY OF BURLINGAME MASTER FEE SCHEDULE FOR THE 2020-21 FISCAL YEAR; SET THE PUBLIC HEARING FOR SUCH AMENDMENT FOR MAY 4, 2020; AND APPROVE REVISIONS TO THE CITY'S USER FEE COST RECOVERY POLICY Finance Director Augustine requested Council adopt Resolution Number 038-2020. h. NOTICE OF DECISION BY THE BROADWAY AVENUE BUSINESS IMPROVEMENT DISTRICT BOARD OF DIRECTORS TO FOREGO ASSESSMENTS TO BUSINESSES WITHIN THE DISTRICT FOR FISCAL YEAR 2020-21 Finance Director Augustine requested Council accept the Broadway Avenue Business Improvement District Board's decision to forego assessments to businesses within the District for Fiscal Year 2020-21. 9. PUBLIC HEARINGS a. PUBLIC HEARING AND RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BURLINGAME ADJUSTING THE STORM DRAINAGE FEE FOR FISCAL YEAR 2020-21 BY 2.0% BASED ON THE CPI — SAN FRANCISCO AREA AS PUBLISHED ON MARCH 11, 2020 Finance Director Augustine stated that in 2010, Burlingame voters approved a storm drainage fee measure. She explained that under this measure, the storm drainage fee can be increased annually by an amount equal to the CPI up to a maximum of 2%. She stated that this year's CPI is 2.9%, and therefore the proposed fee increase will be limited to 2%. Councilmember Colson asked if the City deferred the fee increase, could they roll it into next year's increase. Finance Director Augustine replied in the affirmative. She noted that the fee is attached to the property tax bill. Mayor Beach opened the public hearing. No one spoke. Vice Mayor O'Brien Keighran stated that considering everything the community is currently experiencing, she thought the Council should defer the 2% increase to next year. 5 Burlingame City Council April 6, 2020 Approved Minutes Mayor Beach asked what the 2% equates to for an average homeowner. DPW Murtuza stated that the average residential parcel size in the City is 6,000 square feet. The current average storm drainage fee is approximately $305. Therefore, the increase would equate to an additional $6. Mayor Beach stated that her gut instinct is that the City needs to keep the storm drain projects going, and the fee increase is minimal. Therefore, she explained that she thought the Council should approve the 2% increase. Councilmember Ortiz stated that he agreed with Mayor Beach. Councilmember Brownrigg stated that it won't be a large hit to homeowners, but it also wouldn't be a large hit to the City. He explained that he believed it seemed a little tone deaf to mechanically pass on rate increases at this point. He stated that he didn't feel strongly but would probably vote against a rate increase at this time. Councilmember Colson asked if there is a drop -dead date by which the Council would have to pass this rate increase. She noted that she agreed with Councilmember Brownrigg that although it is a small amount, that the Council should wait to increase the rate. Finance Director Augustine stated that she wasn't quite sure of the deadline but noted that it would appear on the County's July roll. DPW Murtuza stated the increase needs to be sent to the County by June. Councilmember Brownrigg made a motion that the Council not pass a rate increase for the next fiscal year and that the City reconsider it in the third or fourth quarter of this calendar year; seconded by Vice Mayor O'Brien Keighran. The motion passed by roll call vote, 3-2 (Councilmember Ortiz and Mayor Beach voted against). b. INTRODUCTION OF AN ORDINANCE TO AMEND TITLE 17 OF THE BURLINGAME MUNICIPAL CODE AND ADOPTION BY REFERENCE OF THE 2019 CALIFORNIA FIRE CODE AND THE 2018 EDITION OF THE INTERNATIONAL FIRE CODE Assistant City Attorney Spansail stated that at the October 1, 2019 Council meeting, CDD Gardiner introduced Ordinance 1969. He explained that CDD Gardiner gave an overview of the ordinance, which was intended to do a routine update on Chapter 17 and Chapter 18 of the municipal code. He stated that the updates are required every three years and comply with the tri-annual State updates. He noted that Council was briefed on the major changes to both the building and fire codes. Unfortunately, it was later learned that due to a technical oversight, the ordinance before Council that evening didn't include the Chapter 17 updates. ACA Spansail stated that to remedy this situation, staff is presenting a new ordinance for the fire code update. He noted that the update only includes the changes outlined in October. 6 Burlingame City Council April 6, 2020 Approved Minutes Vice Mayor O'Brien Keighran asked if the requirement for key boxes for electric gates was just for commercial properties, or was it also for residential properties. Fire Marshall Christine Reed stated that it is for any gate in order to give CCFD access to the building. Mayor Beach asked the City Clerk to read the title of the proposed ordinance. City Clerk Hassel -Shearer read the title. Vice Mayor O'Brien Keighran made a motion to waive further reading and introduce the ordinance; seconded by Councilmember Brownrigg. The motion passed unanimously by roll call vote, 5-0. Mayor Beach opened the public hearing. No one spoke. Mayor Beach asked the City Clerk to publish a summary of the ordinance at least five days prior to its adoption. c. INTRODUCTION OF AN ORDINANCE AMENDING THE CITY'S MUNICIPAL CODE CHAPTER 18.07 — PERMIT EXPIRATION AND PERMIT EXEMPT STRUCTURES CDD Gardiner stated that the proposed ordinance would amend Chapter 18.07 of the City's Municipal Code to be consistent with Assembly Bill 2913. He explained that AB 2913 imposed a 180-day limit for each permit extension granted by the Building Official and required that all approved permits remain valid for 12 months, so long as work on the project has commenced. CDD Gardiner stated for Burlingame, this would make all permits valid for at least one year but that extensions could be no longer than 180 days. Furthermore, justifications would be required for any extensions. He stated that additional extensions would also be subject to the doubling of fees. CDD Gardiner explained that Chapter 18.07 provides guidance on what is required for a permit to be considered active and not abandoned. The building or work shall be considered abandoned or suspended if a substantial inspection has not been conducted within a 120-day time frame. He noted that the code provides a list of what is considered substantial inspections. CDD Gardiner stated that separately as a clean up item, the proposed ordinance would also amend Chapter 18.07.050 to change the maximum floor area square footage of permit -exempt buildings from 100 square feet to 120 square feet. This change would bring the code in line with the maximum square footage for similar structures in the California Residential Code. Vice Mayor O'Brien Keighran stated that the staff report mentions that San Mateo and Belmont exempt structures under 120 square feet. She asked if most cities on the Peninsula follow this rule. CDD Gardiner replied in the affirmative. Mayor Beach stated that it seemed like the new State code allows for indefinite extensions. She asked if the City's process will keep construction projects moving so that they do not stall. CDD Gardiner replied in the affirmative. 7 Burlingame City Council April 6, 2020 Approved Minutes Mayor Beach asked the City Clerk to read the title of the proposed ordinance. City Clerk Hassel -Shearer read the title. Vice Mayor O'Brien Keighran made a motion to waive further reading and introduce the ordinance; seconded by Councilmember Colson. The motion passed unanimously by roll call vote, 5-0. Mayor Beach opened the public hearing. No one spoke. Mayor Beach asked the City Clerk to publish a summary of the ordinance at least five days prior to its adoption. 10. STAFF REPORTS a. CONSIDERATION OF APPOINTMENT TO THE PLANNING COMMISSION Councilmember Ortiz recused himself from this item. Mayor Beach noted that normally the Council votes by ballot. She asked the City Clerk to explain how the Council would be voting in the Zoom meeting. City Clerk Hassel -Shearer asked that each of the Councilmembers send her a Zoom chat message that included who they were voting for. Mayor Beach opened the item up for public comment. No one spoke. City Manager Goldman stated that the following individuals were interviewed via Zoom on March 25, 2020: Raymond Larios, Peter Roddy, Phyllis Mayer Mittler, and Richard Sargent. City Clerk Hassel -Shearer read the Zoom chat ballots. Congratulations to Richard Sargent, who was reappointed to the Planning Commission. The Council thanked all the candidates for applying. b. DISCUSSION AND DIRECTION ON POTENTIAL BUSINESS SUPPORT PROGRAMS IN RESPONSE TO COVID-19 PUBLIC HEALTH EMERGENCY Mayor Beach thanked the subcommittee of Councilmember Brownrigg and Councilmember Colson for their creativity and hard work drafting the list of potential business support programs. City Manager Goldman stated that at the March 25, 2020 meeting, the Council discussed COVID-19 and agreed to provide an initial $30,000 in funding to assist individuals struggling due to the emergency. She noted that Council directed that the funds be distributed in the amount of $10,000 to CALL Primrose and $20,000 to Samaritan House. City Manager Goldman discussed the SMC Strong Fund that received $3 million in initial funding from the County's Measure K. She stated that $1 million would go to nonprofits, $1 million to families and individuals, and $1 million to businesses. For more information on the available programs and to donate, people can go to: www.smcstrong.org. 8 Burlingame City Council April 6, 2020 Approved Minutes City Manager Goldman stated that at the March 25 meeting, the Council agreed to form a subcommittee to assist the City's small businesses. She noted that Councilmember Brownrigg and Councilmember Colson were chosen to serve on this subcommittee in part because they are the liaisons to the Chamber of Commerce. She explained that the two Councilmembers consulted with local and regional businesses and business associations, and from these conversations developed a list of proposed programs to help small businesses. Councilmember Brownrigg stated that the health emergency is going to have a tremendous impact on City revenues. He explained that previously, he thought that the current situation's economic impact would be similar to 9/11, where the City saw a 25% decrease in revenues. However, he now expects this situation to be much worse. Councilmember Brownrigg stated that he and Councilmember Colson wouldn't be suggesting the programs attached to the staff report if they didn't believe that the City's budget could handle it, while also taking care of the City and its employees. He explained that their suggestions were a mix of both direct support to businesses and a proposal to assist lower income residents in the community with a modest revenue supplement. Councilmember Colson stated that after reaching out to several businesses and members of the community, the subcommittee created a list of eight potential programs. She noted that the Council could adopt all eight programs, or the Council could focus on some of the programs. She added that their memo, attached to the staff report, included the estimated cost of each program. The Council began by reviewing the first proposal, which was to provide advisory assistance to Burlingame businesses to secure County, State, and Federal relief. Councilmember Brownrigg discussed the various programs that were being formed at the County, State, and Federal level to assist businesses during this health emergency. He explained that what the subcommittee heard loud and clear from the business community was a need for assistance in reviewing and filing for these different programs. He stated that this proposal asks the City's Economic Development Specialist to turn his focus solely on helping businesses navigate as best they can these different programs. He added that the proposal also suggests having the City provide a moderate amount of funding to SAMCEDA. He explained that SAMCEDA was assisting businesses throughout the County navigate these programs. Councilmember Colson added that in speaking to SAMCEDA President Rosanne Foust, she learned that the organization has several lawyers and accountants that have volunteered to assist small businesses. She stated that she and Councilmember Brownrigg are suggesting a $5,000 City donation to SAMCEDA. Vice Mayor O'Brien Keighran asked if she was correct that businesses going through SAMCEDA for assistance would be given information for City, County, State, and Federal programs. Councilmember Brownrigg replied in the affirmative. Vice Mayor O'Brien Keighran asked if the City was utilizing SAMCEDA in case the City's Economic Development Specialist is unable to answer questions. She explained that she believed it is a good idea but 9 Burlingame City Council April 6, 2020 Approved Minutes thought there was going to be a ton of questions as the State and Federal programs are not easy to navigate. Councilmember Colson replied in the affirmative. Councilmember Ortiz stated that he spent the past week dealing with the payroll protection program. He noted that it is very generous, and once an individual gets through the basic questions, it is fairly simple to complete. He added that he believed this first proposal was easy, and the sooner the City assisted businesses with this program, the better. Mayor Beach opened the item up for public comment. There were no comments. The Council discussed the best approach to reviewing the different program options that the subcommittee created. Mayor Beach asked what the total cost was of the eight proposed programs. Councilmember Brownrigg stated that if the Council selected all programs, the total cost would be approximately $900,000. Councilmember Colson noted that the most expensive program is the loan/grant program with an estimated cost of $500,000. Councilmember Colson outlined the eight programs that the subcommittee created: 1. Provide advisory assistance to Burlingame businesses to secure County, State, and Federal relief 2. Create a small business support fund, either through a loan or grant program 3. Kickstart Burlingame debit card for qualified residents 4. Cover Downtown and Broadway Business Improvement District fees 5. Waive parking meter fees for one month after re -opening 6. "Buy Local, Act Local" marketing campaign 7. Support local media 8. Commercial eviction protection program Councilmember Brownrigg stated that they talked with several businesses and cities about creating a small business support fund. He explained that it was suggested that $10,000 would be the correct amount to allocate to a successful applicant. He stated that he and Councilmember Colson proposed establishing a range for successful applicants of $5,000 to $20,000. This is because expenses in Burlingame are higher than in many other cities. He added that included in their memo was suggested criteria for this program. Councilmember Brownrigg stated that their proposal to provide $250 per household in store value cards or debit cards to shop in Burlingame would use Peninsula Clean Energy's established means test. He explained that these debit cards could only be spent in storefronts in the City's zip code. Councilmember Brownrigg stated that the proposal to waive the Downtown and Broadway Business Improvement Districts' fees would cost the City approximately $125,000. 10 Burlingame City Council April 6, 2020 Approved Minutes Councilmember Brownrigg suggested tabling the commercial eviction protection program proposal until after the County acts on their commercial eviction moratorium on April 7. He noted that the County's moratorium would only affect businesses in unincorporated San Mateo County. Mayor Beach opened the item up for public comment. Juan Loredo stated that the business community supported a grant program as it would help small merchants with short-term cash flow issues. He asked that the grant program include requirements to review the business's budget to ensure that the funding is used correctly. (comment received via Zoom chat). Mayor Beach closed public comment. Mayor Beach asked that the Council discuss the proposal for the City to cover the Downtown and Broadway Business Improvement Districts' fees. Councilmember Colson explained that these fees go to assist with the Holiday Tree Lighting, Pet Parade, Burlingame trolleys, and other events. She stated that these fees are critical community -oriented contributions that the businesses make. Therefore, the City backfilling these fees would benefit the merchants and the residents. Mayor Beach stated that she believed this sounded reasonable. Councilmember Brownrigg stated that the Council would make it clear to the two business districts that this is a one-time deal. Councilmember Ortiz stated that he believed this was a great idea but that it needed to be stressed that it is a one-time deal. Vice Mayor O'Brien Keighran stated that she agreed with her colleagues. Councilmember Brownrigg suggested wrapping the following three proposals together into one discussion: waiving parking meter fees for an additional month after re -opening; "Buy Local, Act Local" marketing campaign; and support local media. Councilmember Colson stated that to show their support for the community and to support local media, elected officials could use their campaign accounts to take out advertisements in the local newspapers. She explained that this would be a great way to advertise the programs that the County and various cities are putting together for individuals and businesses. Councilmember Ortiz asked if the subcommittee had talked to the merchants about extending the parking meter fee waiver for an additional month. He noted that this waiver wouldn't encourage turnover. 11 Burlingame City Council April 6, 2020 Approved Minutes Councilmember Colson stated that if the City decided to waive the parking meter fee for an additional month, she would want a commitment from the merchants that their employees would park in the distant lots. City Manager Goldman stated that normally the City gets about $200,000 a month from parking meter fees. Therefore, the proposed waiver is not an insignificant amount of funding that the City would lose. Councilmember Colson asked if all the parking enforcement officers are working. Police Chief Matteucci explained that at the beginning of the shelter -in -place order, the parking enforcement officers' hours were reduced. However, on April 7, these officers will be brought back full-time and used to conduct school and park checks. Councilmember Colson suggested reducing the length of the waiver to two weeks. Vice Mayor O'Brien Keighran stated that she would be in favor of two weeks of free parking. She explained that she believed it was better to start with a shorter time frame. Mayor Beach concurred with Vice Mayor O'Brien Keighran. City Manager Goldman noted that at the March 16 meeting, when the Council discussed waiving meter fees, it was for the initial shelter -in -place order. She explained that staff was going to assume that Council wanted to waive parking meter fees through the length of the shelter -in -place order and its extensions with an additional two weeks. Mayor Beach agreed. Vice Mayor O'Brien Keighran asked if the Police Department could chalk tires and waive the parking meter fee for the just the first two hours during that additional two -week period. This way the City would still encourage turnover. Police Chief Matteucci stated that it is feasible. However, he stated that he wondered if the City would need to adopt an ordinance to do that. Mayor Beach opened the item up for public comment. A resident stated that they believed the extended waiver of parking fees was a great idea, but there needed to be monitoring of the amount of time that a car utilized a meter. (comment submitted via Zoom chat). John Kevranian suggested allowing two-hour free parking, with chalking thereafter. (comment submitted via Zoom chat). Mayor Beach closed public comment. Councilmember Colson discussed their proposal to create a small business fund. She explained that in talking to the businesses, they heard about a lot of different needs. Therefore, they decided that the small 12 Burlingame City Council April 6, 2020 Approved Minutes business fund needed to be flexible. She noted that in their memo, they outlined two options: loans or a grant program. Councilmember Brownrigg reviewed the loan program options. He explained that they came up with two different loan structures: 1. Business Loan Program — a soft loan program for qualified merchants with a one-year holiday from any repayment. Thereafter, the merchant would be paying back the loan amount plus a 2% processing fee over the next 24 months. He noted that the City could allow for loan forgiveness through sales tax. 2. Rent Stabilization Loan Program — City lends merchants 50% of a merchant's monthly rent (maximum $5,000) for up to three months, provided that the landlord agrees to roll over the 50% balance to the future for repayment. Six months later, the merchant shall begin repaying the City/landlord the outstanding balance in 12 equal payments over the following 12 months. Councilmember Colson reviewed the small business grant program. She explained that both options are not only concerned with the City's sales tax but also about putting Burlingame residents back to work. Councilmember Colson stated that after talking with Rosanne Foust, SAMCEDA has agreed to administer a Burlingame -based grant program that would augment what businesses receive from the SMC Strong fund. She stated that by having SAMCEDA administer the program, the Council would be removed from the decision -making process. She explained that under the program, recipients of the grant would need to follow an implementation timeline, and there would be metrics to measure the success of the program. Councilmember Colson stated that after the subcommittee hears from Council on which of the two options it would like to pursue (loan or grant based program), they will come back to Council with a more detailed plan. Councilmember Brownrigg stated that they envisioned this being a retail -oriented program in order to support the vibrancy of the two business districts. He noted that one of the suggested qualifications would be that the business has a Burlingame address with a retail storefront open to the public. Mayor Beach asked if retail included restaurants. Councilmember Brownrigg replied in the affirmative. Councilmember Ortiz stated that the administration of the loan program would be difficult and would consume funds that could instead go to the merchants. Therefore, he explained that he was leaning towards the grant program. He noted that he would add to the criteria that the merchants have to certify that they applied for State and County programs. Councilmember Colson explained that the subcommittee suggested the following business qualification criteria: local Burlingame business license for at least the last year, Burlingame address, credible business plan to re -open and succeed, other financial support that has been applied for or received, and any demonstrable evidence of commitment to remain in Burlingame. 13 Burlingame City Council April 6, 2020 Approved Minutes Vice Mayor O'Brien Keighran stated that she agreed with Councilmember Ortiz about the grant program. She noted that the City is not in the loan business. She thought the grant program would assist both the merchants and property owners. She suggested creating tiers in the grant programs so that the funds could be further spread out amongst the businesses to meet their needs. She stated that she thought there should be a weekly report on how the funds are going to be distributed and how much each merchant receives. She added that it was important that the merchants also apply for other grants. City Manager Goldman stated that working through SAMCEDA was an idea that they came up with to minimize the burden on staff. She explained that she believed that loans would be complicated for the City to administer. She noted that because SAMCEDA is doing the City a huge favor by administering the program, the City needed to be careful about its requests for weekly reports. However, she believed that the City could come to some agreement with SAMCEDA about reporting. Councilmember Brownrigg stated that the Council should discuss the total amount of the grant program and how much each applicant could be awarded. He noted that the Vice Mayor had discussed creating a tier system for the grant program. He stated that if the City was to allocate $500,000 for the program and allow up to $20,000 per successful applicant, the City may have as few as 25 applicants. He noted that every other grant program in the Bay Area has been quickly oversubscribed. Mayor Beach asked if the grant program's funding would come from the Catastrophic Reserve or the Economic Stability Reserve. Councilmember Brownrigg stated that they recommended utilizing the Economic Stability Reserve. Mayor Beach asked if the Economic Stability Reserve could also be used if the City doesn't have the revenue it needs to provide basic services. City Manager Goldman replied in the affirmative. She explained that the City would first use the unassigned fund balance and then the reserve. Finance Director Augustine stated that if the City utilized the Economic Stability Reserve, it would then be replenished from the unassigned fund balance so that it could be back up to 24% of revenues (funding level). Mayor Beach opened the item up for public comment. John Kevranian voiced concern about the loan program for businesses that don't generate sales tax for the City. (comment submitted via Zoom chat). Scott voiced his support for the grant program. (comment submitted via Zoom chat). Stephanie Lee voiced her support for the grant program. (comment submitted via Zoom chat). Mayor Beach closed public comment. Mayor Beach stated that there seemed to be consensus amongst the Council to move forward with the grant program over a loan program. She asked that the Council now discuss the total funding level for the grant program and how much each business could be allocated. 14 Burlingame City Council April 6, 2020 Approved Minutes Mayor Beach asked if there was any consideration to make the grant program a needs -based program. She also wondered if there was a way to give businesses bonus points on their applications if they had managed to keep their employees paid during the shelter -in -place order. She added that she liked the tiered approach that the Vice Mayor had discussed. Councilmember Ortiz stated that his first thought was that the City should focus on the businesses that were not deemed essential during the shelter -in -place order. He stated that he would set the tiers based on number of employees or have the businesses certify what their monthly overhead is. Councilmember Brownrigg stated that it needed to be acknowledged that the grant program would be oversubscribed. He noted that he believed this program should be treated differently than when the City assists families and individuals. He explained that when the City assists families and individuals, it first assists those who have the least income. However, in this case what the City is trying to do is help businesses survive. Therefore, the City shouldn't give money to a business that is so weak that it will fails even with support, as this wouldn't be a good use of public resources. He stated that it was important that the businesses that receive the grant funds are ones that the City believes will survive. Mayor Beach agreed that there were some businesses that were struggling prior to the shelter, and therefore the City doesn't want to put funds into businesses that aren't going to survive. She explained that her point was that there are some business owners whose business is struggling while the owner is independently wealthy. She asked if there was a way to factor this into the equation. Councilmember Colson noted that SAMCEDA President Rosanne Foust stated that the SMC Strong fund is going to focus on businesses with the greatest chance of success. She stated that they reviewed San Francisco's fund, which gave allocations up to $10,000, and the fund was immediately oversubscribed in three days. She explained that it could get tricky to tier the program based on employee size. She gave the example of restaurants where they might have three full-time employees and 80 part-time employees. She suggested tiering based on gross revenues and the number of full-time employees. Vice Mayor O'Brien Keighran asked when businesses apply for the grant, will they need to specify what they are using the funds for. Councilmember Brownrigg stated that they haven't developed the application yet; however they will be including that question. Vice Mayor O'Brien Keighran noted that the SMC Strong fund requires individuals who are applying to state how they will use the money. For example, if the money is for rent and the application is successful, SMC Strong will write out a check to the landlord. She suggested reviewing SMC Strong's process. Vice Mayor O'Brien Keighran asked if it would be a requirement that businesses have a certain amount of time left on their lease. Councilmember Brownrigg stated this would be something considered. Mayor Beach suggested giving businesses credit if they had been in Burlingame for a long time. Councilmember Colson stressed that the grant program is not only about supporting local businesses but also about getting residents back to work. She noted that some of the restaurants in Burlingame employee 90 15 Burlingame City Council April 6, 2020 Approved Minutes people. She explained that if these people get back to work, they can pay for their groceries, their rent, and other costs. Therefore, the small business grant program ends up assisting the community in totality. Vice Mayor O'Brien Keighran stated that the City should be careful to not have the allocation amount too low as then it wouldn't provide adequate assistance. She explained that she was in favor of a tiered system as restaurants would probably need more funds than some of the small retailers. Councilmember Brownrigg asked if his colleagues agreed that $500,000 was the right funding level for the program. He noted that from there the subcommittee could then determine the tier levels. Mayor Beach asked if staff felt that $500,000 was the right amount. City Manager Goldman stated that it was a policy decision. Mayor Beach asked if her colleagues were comfortable with $500,000. Council agreed. Mayor Beach asked if there was any additional public comment on this discussion. Benjamin Boren asked if there would be any consideration for non -essential versus essential businesses. (comment submitted via publiccomment(&burlin ag me.org). Mayor Beach closed public comment. Councilmember Brownrigg discussed the subcommittee's proposal to give gift cards/debit cards to qualified residents. He noted that this proposal came from the business community. He stated that the idea would be to provide debit cards/or stored value cards of $250 to need -based families. He noted that individuals would have to apply for the gift cards. Councilmember Colson stated that the program would be modeled off of the $3.1 million grant program at Peninsula Clean Energy. She explained that PCE focused on the countywide CARE and FERA customers. She stated that 5.58% of Burlingame residents qualify for this program (approximately 600 households). She explained that the issue with this program would be figuring out how to set up the debit cards so that they could only be used in the City's zip code. She added that the program would cost the City approximately $150,000. Councilmember Brownrigg stated that this program would support residents and the business community. City Manager Goldman stated that it seemed like it would be tough to restrict the debit card geographically. She asked if Councilmember Ortiz had some thoughts on how this could work. Councilmember Ortiz stated that he thought it was a great idea. However, mechanically, he didn't know how it would work. He suggested approaching the vendors directly and purchasing gift cards from them. Mayor Beach stated that she had a lead that she would send to the subcommittee for this program. 16 Burlingame City Council April 6, 2020 Approved Minutes Mayor Beach opened the item up for public comment. Stephanie Lee stated that she believed that this was an insufficient way to transfer funds as 10% to 17% of card values never get used. (comment submitted via Zoom chat). An individual asked how the City would guarantee that the funds are spent in the City's zip code. (comment submitted via Zoom chat). Mayor Beach closed public comment. Councilmember Brownrigg stated that there is no guarantee that all of the funds would be spent. However, the advantage of this program is that it would limit the funds to Burlingame. Vice Mayor O'Brien Keighran stated that she thought there was some issue with the merchants where they couldn't count the gift cards towards their revenue upfront. Councilmember Brownrigg stated that this was correct. He noted that if businesses issue gift cards, they don't get to spend the revenue until they deliver the service. Therefore, these gift cards would have to be issued for fast -consuming items like groceries and products from drugstores. He noted that this moves the City away from the purpose. Mayor Beach stated that she felt there was value in exploring this concept. Council agreed. Councilmember Colson asked that because of the expediency required and the amount of work, would it be possible to bifurcate the subcommittee with Councilmember Brownrigg and Councilmember Colson working on the grant program and Councilmember Ortiz and Councilmember Brownrigg taking the lead on the debit card. City Attorney Kane stated that it creates a bit of a Brown Act problem to the degree that the issues are not clearly separated. She stated that if there is a clear and narrow mandate for the newly created ad hoc subcommittee, then it would be okay. Mayor Beach stated that the $250 gift cards for lower income families are essentially a subsidy. She explained that maybe this is a bigger discussion about creating a subcommittee to assist residents. She discussed utilizing housing impact fees to assist residents with paying their rent. City Attorney Kane stated that from a procedural perspective, the gift card straddles both residential and commercial lines. She noted that she believed the gift cards should live in this subcommittee since it was mostly connected to business aid. Councilmember Colson suggested talking with the business community to see what their idea is regarding gift cards. 17 Burlingame City Council April 6, 2020 Approved Minutes Mayor Beach thanked the subcommittee for their hard work. Councilmember Brownrigg asked if it was okay to have two subcommittees. City Attorney Kane replied in the affirmative. She explained that as long as the gift card subcommittee is regulated to the narrow issue of the implementation of the gift card, it is acceptable. 11. COUNCIL COMMITTEE AND ACTIVITIES REPORTS AND ANNOUNCEMENTS a. MAYOR BEACH'S COMMITTEE REPORT b. COUNCILMEMBER COLSON'S COMMITTEE REPORT 12. FUTURE AGENDA ITEMS There were no future agenda items. 13. ACKNOWLEDGEMENTS The agendas, packets, and meeting minutes for the Planning Commission, Traffic, Safety & Parking Commission, Beautification Commission, Parks and Recreation Commission, and Library Board of Trustees are available online at www.burlingame.org. 14. ADJOURNMENT Mayor Beach adjourned the meeting at 10:24 p.m. Respectfully submitted, /s/ Meaghan Hassel -Shearer City Clerk 18 Burlingame City Council April 6, 2020 Approved Minutes