1 BURLINGAME CITY COUNCIL
Approved Minutes
Regular City Council Meeting on June 20, 2022
1. CALL TO ORDER
A duly noticed meeting of the Burlingame City Council was held on the above date via Zoom Webinar at 7:00 p.m.
2. PLEDGE OF ALLEGIANCE TO THE FLAG
The pledge of allegiance was led by Councilmember Colson.
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 Ortiz reviewed upcoming events in the city.
6. PRESENTATIONS
There were no presentations.
7. PUBLIC COMMENTS, NON-AGENDA
There were no public comments.
2 8. APPROVAL OF CONSENT CALENDAR
Mayor Ortiz asked the Councilmembers and the public if they wished to remove any item from the Consent Calendar. Councilmember O’Brien Keighran pulled item 8b.
Councilmember Beach made a motion to adopt items 8a, 8c, 8d, 8e, 8f, 8g, 8h, and 8i from the Consent Calendar; seconded by Councilmember Colson. The motion passed unanimously by roll call vote, 5-0.
a. APPROVAL OF CIY COUNCIL MEETING MINUTES FOR THE June 6, 2022 REGULAR
MEETING
City Clerk Hassel-Shearer requested Council approve the City Council Meeting Minutes for the June 6, 2022 Regular Meeting.
b. ADOPTION OF A RESOLUTION APPROVING THE SUBMISSION OF GRANT
APPLICATIONS FOR A MULTIJURISDICTIONAL BICYCLE SHARING PROGRAM, A
TRANSPORTATION DEMAND MANAGEMENT PLAN, AND THE CALIFORNIA DRIVE
CONGESTION MANAGEMENT VIDEO DETECTION PROGRAM UNDER THE
ALTERNATIVE CONGESTION RELIEF AND TRANSPORTATION DEMAND PROGRAM; AUTHORIZING THE CITY MANAGER TO EXECUTE FUNDING
AGREEMENTS WITH THE SAN MATE COUNTY TRANSPORTATION AUTHORITY IF FUNDS ARE AWARDED; AND AUTHORIZING CONTRIBUTION OF MATCHING FUNDS
Councilmember O’Brien Keighran asked if she was correct that Burlingame and Millbrae would have separate proposals. City Manager Goldman stated that the RFP (request for proposals) is joint. City Attorney Guina added that each city is separately applying for a grant.
Councilmember O’Brien Keighran asked if she was correct that if each city was granted funds, each city would pay $20,000 as its match. City Attorney Guina replied in the affirmative.
Mayor Ortiz opened the item up for public comment.
Manito Velasco asked how bicycle detection is improved by the project and how the intersections were selected. (comment submitted via [email protected]).
DPW Murtuza stated that California Drive improvements were outlined in the Bicycle Pedestrian Master Plan.
Sandra Lang voiced her support for the project.
Mayor Ortiz closed public comment.
3 Councilmember Colson made a motion to adopt Resolution Number 070-2022, Resolution Number 071- 2022, and Resolution Number 072-2022; seconded by Councilmember O’Brien Keighran.
Councilmember Beach voiced her appreciation for staff putting forth bicycle improvements projects in order to obtain grants.
The motion passed unanimously by roll call vote, 5-0.
c. ADOPTION OF A RESOLUTION ACCEPTING A DONATION IN THE AMOUNT OF $5,000 FROM VEOLIA NORTH AMERICA FOR THE SUMMER CONCERT SERIES
Parks and Recreation Director Glomstad requested Council adopt Resolution Number 073-2022.
d. ADOPTION OF A RESOLUTION ACCEPTING A GRANT FROM THE COUNTY OF SAN MATEO DISTRICT-DISCRETIONARY MEASURE k FUNDS IN AN AMOUNT NOT TO EXCEED $30,000 FOR APPLIANCES AND EQUIPMENT FOR THE KITCHEN IN THE
NEW COMMUNITY CENTER AND AUTHORIZING THE CITY MANAGER TO
EXECUTE A MEASURE K GRANT AGREEMENT WITH THE COUNTY
Parks and Recreation Director Glomstad requested Council adopt Resolution Number 074-2022.
e. ADOPTION OF A RESOLUTION ACCEPTING THE WASTEWATER TREATMENT FACILITY PROCESS PIPING IMPROVEMENTS, CITY PROJECT NO. 86150, BY TRINET CONSTRUCTION, INC.
DPW Murtuza requested Council adopt Resolution Number 075-2022.
f. ADOPTION OF A RESOLUTION APPROVING A PROFESSIONAL SERVICES
AGREEMENT WITH SCS ENGINEERS FOR ENGINEERING AND REGULATORY
COMPLIANCE SERVICES RELATED TO THE CLOSED BURLINGAME LANDFILL IN THE AMOUNT OF $136,500 AND AUTHORIZING THE CITY MANAGER TO EXECUTE
THE AGREEMENT
DPW Murtuza requested Council adopt Resolution Number 076-2022.
g. ADOPTION OF A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE
A PROFESSIONAL SERVICES AGREEMENT WITH THE PENINSULA CONFLICT
RESOLUTION CENTER FOR DISPUTE RESOLUTION SERVICES IN THE AMOUNT OF $21,478.91
City Manager Goldman requested Council adopt Resolution Number 077-2022.
4 h. ADOPTION OF A RESOLUTION TO CONTINUE CONDUCTING CITY COUNCIL AND
COMMISSION MEETINGS REMOTELY DUE TO HEALTH AND SAFETY CONCERNS
FOR THE PUBLIC
City Clerk Hassel-Shearer requested Council adopt Resolution Number 078-2022.
i. OUT-OF-STATE TRAVEL FOR ALA CONFERENCE
City Librarian McCulley requested Council approve out-of-state travel for the Adult Services Librarian to attend the American Library Association annual conference.
9. PUBLIC HEARINGS
a. PUBLIC HEARING AND INTRODUCTION OF AN ORDINANCE TO PLACE A REVENUE MEASURE ON THE NOVEMBER 2022 BALLOT TO INCREASE AND MODERNIZE THE BUSINESS LICENSE TAX ON THE NOVEMBER 2022 BALLOT AND/OR
INTRODUCTION OF AN ORDINANCE TO PLACE A REVENUE MEASURE ON THE NOVEMBER 2022 BALLOT TO IMPOSE A GROSS RECEIPTS TAX ON CANNABIS
BUSINESSES THAT OPERATE OR PROVIDE SERVICES WITHIN BURLINGAME CEQA DETERMINATION: EXEMPT PURSUANT TO STATE CEQA GUIDELINES SECTION 15378, 15601(B)(3)
City Manager Goldman stated that staff is presenting three different revenue measure options to determine which, if any, the Council would like to place on the November 2022 ballot.
City Manager Goldman stated that the first measure, Option A, would increase the business license tax from the flat $100 annual rate to an annual rate ranging from $200 to $750. She explained that Option A is a tiered structure determined by gross receipts:
Smallest businesses - $200
Medium businesses - $300
Large businesses - $750
City Manager Goldman stated that the second measure, Option B, would increase the business license tax as described above and levy a 5% gross receipts tax on commercial cannabis businesses operating in Burlingame.
City Manager Goldman stated that the third measure, Option C, levies the 5% gross receipts tax on cannabis businesses.
City Manager Goldman discussed the background on this item. She explained that like every other city across the country, Burlingame is facing economic challenges brought on by the pandemic and the current national downturn. She noted that previously, the City made approximately $29 million in annual TOT revenue. However, in the middle year of the pandemic the City brought in $5.7 million in TOT.
5 City Manager Goldman stated that the City has a proven track record of fiscal responsibility, making the most efficient use of limited resources. Therefore, Burlingame has weathered the current economic recession better than most cities, even providing help to small businesses to keep them afloat during a difficult time.
City Manager Goldman stated the City’s current business license tax structure has been in place since 1978.
She added that it was last increased from $75 to $100 on July 1, 1993.
City Manager Goldman explained that the Council has held a number of discussions about tax measure options. She stated that at the February 22, 2022 study session and at the April 4, 2022 Council meeting, the Council reviewed possible business license tax structures, with an eye toward making the tax more equitable as small mom-and-pop stores pay the same business license tax as larger businesses such as the Apple store, Meta, and the auto-dealers.
City Manager Goldman stated that at the February 2022 study session, the Council reviewed business license tax structures based on gross receipts. However, Councilmembers wrestled with this concept and the impact it would have on smaller businesses. She explained that based on that discussion, staff asked the City’s sales tax and business license tax consultant, HdL, to analyze the City’s business license structure and suggest possible alternative models. She stated that through that analysis, HdL assigned the City’s businesses into one of three tiers based on their estimated annual gross receipts:
Those making less than $250,000
Those making between $250,000 and $999,9999
Those making $1,000,000 or more
City Manager Goldman discussed the following table that indicates the estimated number of businesses in each tier as well as the estimated revenue yield if the voters were to approve the three-tiered structure.
Estimated Revenue Yield from Increase in Business License Tax Business Estimated Gross
Receipts
Estimated
Number of
Businesses
Annual Rate Total Estimated Projected
Revenue
Small Business
(less than $250,000)
3,712 $200 $742,400
Medium Business
($250,000-$999,000)
1,769 $300 $530,700
Large Business
($1,000,000 and above)
355 $750 $266,250
TOTAL $1,539,350
City Manager Goldman stated that after the April 2022 Council meeting, staff engaged the services of a professional polling company, Godbe Research, to conduct independent public opinion research to determine the community’s top priorities. She explained that the consultant came up with a list of the public’s top priorities for the use of public funds. The top priorities include:
6 Maintaining and repairing City streets and sidewalks before they become more expensive to repair Enhancing neighborhood police patrols and crime prevention programs Undergrounding overhead powerlines and supporting fire prevention programs Supporting other general city services
City Manager Goldman stated that after analyzing the information received from the Godbe Research survey, staff recommends that the Council consider proceeding with the placement of a business license tax measure on the November 2022 ballot. She noted that this would be a general tax, and therefore the threshold for passage is 50% + 1. She added that if the measure is approved by the voters, it would modernize the business license tax structure to make it fairer for smaller businesses. She stated that it would also help the City fund the top priorities identified by the community with revenue that is locally controlled.
City Manager Goldman stated that Option A modernizes the business license tax.
City Manager Goldman stated that in February 2021, the Council adopted an ordinance allowing non- storefront cannabis retail delivery from up to four businesses located within the city limits. She explained that during that meeting, as well as an earlier discussion of cannabis retail delivery, the Council expressed interest in levying a cannabis business tax, which a representative for one company noted could bring in approximately $1 million annually from his company alone. She noted that as of the writing of the staff report, one business has received a cannabis Operator Permit and had its Conditional Use Permit (CUP) approved. She added that another business has its Operator Permit under review and has yet to submit its CUP application.
City Manager Goldman explained that Option B modernizes the business license tax and includes levying a 5% gross receipts tax on all commercial cannabis activity in Burlingame, thereby avoiding the need for a separate tax measure. She noted that the Council can elect to decrease the 5% gross receipts tax by resolution and later increase it to the cap, which is 5%.
City Manager Goldman stated that Option C is a standalone cannabis tax measure that leaves the existing business license tax structure in place.
City Manager Goldman stated that page four of the staff report includes three ballot measure questions that correlate with the three options.
City Manager Goldman did not read the three ballot measure questions, however Councilmembers later asked questions about the wording of the three questions. Therefore, the three questions are included below for the reader’s ease:
Option A:
To support city services such as fixing potholes, streets, and sidewalks: enhancing police patrols and crime prevention; undergrounding power lines and supporting fire prevention programs; and for general government use, shall an ordinance updating Burlingame’s business licensing be adopted with rates ranging from $200 to $750, treating all businesses fairly, with the highest rate on large
7 businesses, providing approximately $1.5 million annually, until ended by voters, requiring audits and all funds staying in Burlingame?
Option B:
To support city services such as fixing streets/sidewalks; enhancing police patrols and crime prevention; undergrounding power lines; and for general government use, shall an ordinance updating Burlingame’s business licensing be adopted with rates ranging from $200 to $750 for most businesses, with the highest rate on large businesses, and 5% of gross receipts for cannabis (marijuana) businesses, providing approximately $2.5 million annually, until ended by voters, requiring audits and all funds staying in Burlingame?
Option C:
To support city services such as enhancing police patrols, crime prevention, and safe routes to schools; fixing potholes, streets, and sidewalks; undergrounding power lines and supporting fire prevention programs; and for general government use, shall the City of Burlingame’s measure to tax cannabis (marijuana) be adopted with rates at 5% of gross receipts, providing approximately $1 million annually, until ended by voters, requiring audits and all funds staying in Burlingame?
City Manager Goldman noted that each ballot measure question meets the 75-word limit as imposed by the California Elections Code. She added that Godbe Research helped staff draft the questions to ensure that voters understand what they are voting on.
City Manager Goldman reviewed the next steps if the Council chooses to move forward with placing a measure on the ballot:
June 20 – Introduction of ordinance(s)
July 5 – Adoption of ordinance(s) and resolution
August 12 – Last day to file Measure(s) with the County August 19 – Last day to file arguments for and against a Measure August 29 – Last day to file rebuttal arguments related to the Measure(s) August 29 – Impartial Analysis for a Measure due
November 8 – Election Day
City Manager Goldman stated that the City’s current business license tax is estimated to raise $800,000 in FY 2022-23. She noted that if approved by the voters in November, the business license tax measure would raise an estimated $1.5 million, for an increase of approximately $700,000 per year if the number of businesses remains relatively constant. She added that a representative for one non-retail cannabis delivery operator estimated that a 5% gross receipts tax would yield $1 million. Staff has not been able to independently verify this amount.
Councilmember O’Brien Keighran stated that she was concerned about the following line in the Option B ballot measure question: “5% of gross receipts for cannabis (marijuana) businesses, providing approximately $2.5 million annually”. She explained that she was worried that voters reading this wouldn’t understand that the City doesn’t have retail cannabis. She thought it should be made clear that it is non-retail. City Manager
8 Goldman stated that right now the City only allows non-retail delivery. However, in the future the Council could allow for nurseries and therefore this would allow for that type of business to be taxed.
Bryan Godbe stated that non-retail could be added to the Option B ballot measure question. He added that non-retail could be added in front of “cannabis (marijuana) businesses”.
Vice Mayor Brownrigg asked about the choice of a combined measure like Option B versus putting both Option A and Option C on the ballot. Mr. Godbe replied that keeping it simple is always the best rule, so Option B is the best choice if the Council wants to move forward with both modernizing the business license tax and a cannabis tax.
Vice Mayor Brownrigg stated that one of the advantages of doing two measures is that the City would be able to make the questions clearer to the public.
Councilmember Colson stated that having worked on measures in the past, she thought the persuasion of voters doesn’t happen in reading the measures. Instead, she explained that voters are persuaded through advocacy, mailers, and meetings.
Councilmember Beach asked if she was correct that under Option B and Option C, the City capped the cannabis gross receipts tax at 5% but could tax at a lower rate. City Manager Goldman replied in the affirmative.
Vice Mayor Brownrigg asked if under the proposed modernization of the business license tax, companies would be required to report their gross receipts. Additionally, he asked how it is validated. He explained that even though his company is based in Washington DC, he has a business license in Burlingame. City Manager Goldman stated that it is the value of the work done in Burlingame. She noted that under Vice Mayor Brownrigg’s example, it sounded like most of his work done is not actually in Burlingame.
City Manager Goldman stated that HdL would assist the City with implementing the new business license tax structure if it is adopted by the voters. She added that most other cities base business license tax on gross receipts.
Councilmember Colson asked if remote workers would need to get a business license. Finance Director replied in the negative.
City Manager Goldman stated that the City Clerk let her know that non-retail is two words.
Vice Mayor Brownrigg asked if under the proposed business license tax, everyone with a business license would need to report their gross receipts. City Manager Goldman replied in the affirmative.
Vice Mayor Brownrigg asked if it is the honor system to accurately report one’s gross receipts. Finance Director Yu-Scott replied in the affirmative.
City Manager Goldman stated that Foster City, Menlo Park, Millbrae, San Bruno, and San Mateo utilize gross receipts when determining business license tax.
9 Mayor Ortiz asked the City Clerk to read the titles of the three proposed ordinances. City Clerk Hassel- Shearer read the titles of the three proposed ordinances.
Councilmember O’Brien Keighran made a motion to waive further reading and introduce the three proposed ordinances; seconded by Vice Mayor Brownrigg. The motion passed unanimously by roll call vote, 5-0.
Mayor Ortiz opened the public hearing.
John Pivirotto stated that the 100% increase in business license tax was too much considering businesses are recovering from the pandemic. (comment submitted via [email protected]).
Sarah Hadjimehdi stated that businesses are struggling to recover from the pandemic and therefore didn’t think their license fee should be increased. (comment submitted via [email protected]).
John Kevranian, President of the Broadway BID, stated that the Broadway BID voted to endorse and support the proposed business license tax structure. (comment submitted via [email protected]).
Gerald stated that he was not in favor of increasing the business license tax by gross receipts and thought instead it should be done by number of employees. (comment submitted via [email protected]).
John Martos stated that the business license tax seemed fair and equitable. However, he thought a lot of clarification was needed on the cannabis tax and therefore thought the City should place Option A and Option C on the ballot.
Mayor Ortiz closed the public hearing.
Mayor Ortiz stated that he was in favor of Option B.
Councilmember Colson stated that the City is trying to fix the inequity in its current business license tax by creating tiers. She noted that under the proposed structure, a small business and a large business will no longer pay the same amount. Additionally, she explained that she was in favor of Option B. She thought that it made more sense to combine the two questions as it would create less work for those advocating for the measures.
Councilmember Beach stated that she appreciated staff’s hard work on this item. She noted that she continues to reflect on Council’s discussion regarding the fairness and equity aspect of the tiered system.
She explained that she knows the proposed tiers are better than what the City currently has, but it doesn’t solve the problem of making it truly fair and equitable. She thought instead the Council should delay the proposed business tax structure to further study this item. She discussed how under the proposed tiered system, Meta, a billion-dollar company, will only pay $750, while a small mom and pop will pay $200.
Councilmember Beach discussed how the larger companies like Meta have a large impact on the City’s infrastructure and therefore should pay a higher rate in business license taxes. She didn’t believe that a $500
10 difference between a small business and a large business was enough to account for the impact on infrastructure.
Councilmember Beach stated that she was in favor of moving forward with Option C but thought the City should further review how to make the business license tax equitable.
Councilmember O’Brien Keighran stated that she was in favor of Option B. She explained that Council had been discussing this item for quite some time and had buy-in from Broadway BID. She added that she would like the ballot measure question language to be reviewed.
Vice Mayor Brownrigg stated that he thought Councilmember Beach’s comments were compelling to go forward with the cannabis tax now and wait on the business license tax. He added that if the City does go forward with the business license tax, he would like to see the words “last increased in 1993” added to the ballot measure question. He explained that he thought this was compelling for why the City was raising rates.
Vice Mayor Brownrigg stated that he did believe that the cannabis tax needed to be put on the ballot.
Vice Mayor Brownrigg stated that he could go with Option B or Option C.
Councilmember Colson stated that the Council raised minimum wage during the pandemic, which had a large impact on small businesses. She explained that the proposed tiered system would have a much smaller impact. She discussed the work that the City does to keep the business districts clean and safe. Therefore, she thought it was only right to increase the business license tax.
Councilmember Colson stated that one of the reasons that the Broadway BID endorsed the proposed business license tax is because it wasn’t a gross receipts tax.
Councilmember Colson stated that she was in favor of Option B.
Mayor Ortiz stated that the Council previously discussed a gross receipts tax. He explained that one of the concerns with utilizing a gross receipts tax is that some of the businesses have very low margins, and therefore the Council decided not to go forward with that option. He noted that the Council spent time thinking about what would work best for the City and as a group decided to go forward with a tiered system.
Vice Mayor Brownrigg concurred with Mayor Ortiz. He added that going with Option B doesn’t preclude the City from further reviewing the business license tax in the future. He added that he was mostly concerned with the reporting versus the actual structure.
Councilmember Beach stated that she thought the Council would get one bite at the apple in regard to increasing the business license tax in the near future. Therefore, she’d rather delay it until the Council had more time to study the issue.
The Council discussed the ballot measure question for Option B. It was determined that staff would review the language and come back with new language at the next meeting.
11 Mayor Ortiz stated that the two concerns that the Council had about the ballot measure question for Option B were:
Adding in non-retail
Adding in last increased in 1993
Vice Mayor Brownrigg made a motion to bring back Option B ordinance for a second reading; seconded by Councilmember O’Brien Keighran. The motion passed by roll call, 4-1 (Councilmember Beach voted against).
10. STAFF REPORTS
a. CONSIDERATION OF APPOINTMENTS TO THE LIBRARY BOARD OF TRUSTEES
City Manager Goldman stated that staff recommends that the Council make appoints to fill two impending vacancies on the Library Board of Trustees. She explained that the impending vacancies are due to the expiring terms of Trustees Elizabeth Ostrow and Danielle Garcia. She stated that after publicizing the vacancies and sending notification letters to past Commission applicants, the City received six applications as of the deadline of May 20, 2022. The Council interviewed the following six applicants via Zoom on June 13, 2022: Danielle Garcia, Jill Goldsmith, Denise Kenski, Marisa McGinnis, Elisabeth Ostrow, and Robin Montoya.
City Manager Goldman noted that Robin Montoya’s name was accidentally left off of the staff report that was published with the agenda.
Mayor Ortiz opened the item up for public comment. No one spoke.
The City Council texted their votes to the City Clerk.
City Clerk Hassel-Shearer read the City Council votes.
Congratulations to Danielle Garcia and Elisabeth Ostrow on their re-appointment.
The Council thanked all the candidates who applied for the Library Board of Trustees.
11. COUNCIL COMMITTEE AND ACTIVITIES REPORTS AND ANNOUNCEMENTS
a. VICE MAYOR MICHAEL BROWNRIGG’S COMMITTEE REPORT
12. FUTURE AGENDA ITEMS
There were no future agenda items.
12 13. ACKNOWLEDGMENTS
The agendas, packets, and meeting minutes for the Planning Commission, Traffic, Safety & Parking Commission, Beautification Commission, Parks & Recreation Commission, and Library Board of Trustees are available online at www.burlingame.org.
14. ADJOURNMENT
Mayor Ortiz adjourned the meeting at 8:31 p.m.
Respectfully submitted,
/ s /
Meaghan Hassel-Shearer
City Clerk