1 BURLINGAME CITY COUNCIL
Approved Minutes
Regular City Council Meeting on February 18, 2025
1. CALL TO ORDER
A duly noticed meeting of the Burlingame City Council was held on the above date in person and via Zoom at 7:08 p.m.
2. PLEDGE OF ALLEGIANCE TO THE FLAG
The pledge of allegiance was led by former Councilmember Lee.
3. ROLL CALL
MEMBERS PRESENT: Brownrigg, Colson, Pappajohn, and Thayer MEMBERS ABSENT: Stevenson
4. REQUEST FOR AB 2249 REMOTE PARTICIPATION
There was no request.
5. REPORT OUT FROM CLOSED SESSION
a. CONFERENCE WITH REAL PROPERTY NEGOTIATORS PURSUANT TO GOVERNMENT CODE SECTION 54958.8
PROPERTY: 1440 CHAPIN AVENUE, BURLINGAME, CA; 255 EL CAMINO REAL, BURLINGAME, CA AGENCY NEGOTIATORS: CITY MANAGER LISA K. GOLDMAN, CITY ATTORNEY MICHAEL GUINA NEGOTIATING PARTIES: CITY OF BURLINGAME; 1440 CHAPIN OWNER, LLC; 1440 CHAPIN INVESTOR HOLDINGS, LLC, PCCP CS VI 1440 CHAPIN, LLC
UNDER NEGOTIATIONS: PRICE AND TERMS OF PAYMENT FOR LEASE AND PURCHASE OF
PROPERTY
City Attorney Guina reported that direction was given, but no reportable action was taken.
6. UPCOMING EVENTS
Vice Mayor Brownrigg reviewed upcoming events in the city.
2 7. PRESENTATIONS
a. RECOGNIZING FEBRUARY 2025 AS BLACK HISTORY MONTH
Carolyn Hoskins, owner of Domini Hoskins Black History Museum, accepted the proclamation. She spoke on the importance of recognizing February as Black History Month.
Vice Mayor Brownrigg read the proclamation. Each Councilmember spoke on the importance of Black History Month and what it meant to them.
8. PUBLIC COMMENTS
There were no comments.
9. APPROVAL OF CONSENT CALENDAR
Vice Mayor Brownrigg asked the Councilmembers and the public if they wished to remove any item from the Consent Calendar. No items were pulled.
Councilmember Pappajohn made a motion to adopt the Consent Calendar; seconded by Councilmember Thayer. The motion passed by roll call vote, 4-0-1 (Mayor Stevenson was absent).
a. APPROVAL OF CITY COUNCIL MEETING MINUTES FOR THE FEBRUARY 3, 2025 STUDY SESSION
City Clerk Hassel-Shearer requested Council approval of the City Council meeting minutes for the February 3, 2025, Study Session.
b. APPROVAL OF CITY COUNCIL MEETING MINUTES FOR THE FEBRUARY 3, 2025 REGULAR CITY
COUNCIL MEETING
City Clerk Hassel-Shearer requested Council approval of the City Council meeting minutes for the February 3, 2025 Regular City Council Meeting.
c. ADOPTION OF A RESOLUTION AWARDING A $107,800 CONSTRUCTION CONTRACT TO C2R ENGINEERING, INC. FOR THE BURLINGAME AVENUE INTERSECTIONS REHABILITATION PROJECT, PHASE 1, AND AUTHORIZING THE CITY MANAGER TO EXECUTE THE CONSTRUCTION CONTRACT
DPW Murtuza requested Council adopt Resolution Number 011-2025.
d. ADOPTION OF A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE AMENDMENT NO. 1 TO EXTEND THE TERM OF THE PROFESSIONAL SERVICES AGREEMENT WITH MATRIX
3 CONSULTING GROUP, LTD. TO DECEMBER 31, 2026, FOR PREPARATION OF COST ALLOCATION
PLAN, A COMPREHENSIVE COST OF SERVICES STUDY, AND AN IMPACT FEE STUDY
CDD Zayer requested Council adopt Resolution Number 012-2025.
e. ADOPTION OF A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE A FIRST AMENDMENT TO THE PROFESSIONAL SERVICES AGREEMENT WITH GROUP 4 ARCHITECTURE TO
PROVIDE PRELIMINARY ARCHITECTURAL SERVICES FOR A NEW CITY HALL, TO EXTEND THE TERM AND INCREASE THE NOT-TO-EXCEED AMOUNT BY $5,000 FOR A TOTAL OF $23,489.45 AND
AUTHORIZING THE CITY MANAGER TO NEGOTIATE AND EXECUTE ADDITIONAL AMENDMENTS
City Manager Goldman requested Council adopt Resolution Number 013-2025.
f. APPROVAL OF QUARTERLY INVESTMENT REPORT PERIOD ENDING DECEMBER 31, 2024
Finance Director Yu-Scott requested Council approve the Quarterly Investment Report for the period ending December 31, 2024.
g. OPEN NOMINATION PERIOD TO FILL TWO PLANNING COMMISSION VACANCIES
City Manager Goldman requested Council open the nomination period to fill two Planning Commission vacancies.
10. PUBLIC HEARINGS
a. ADOPTION OF A RESOLUTION REVIEWING THE DEVELOPMENT AGREEMENT FOR THE 1200 – 1340 OLD BAYSHORE HIGHWAY (DIVCO) PROJECT FOR THE PERIOD BEGINNING APRIL 24, 2024, AND
CONFIRMING DEVELOPER COMPLIANCE
CDD Zayer explained that in April 2024, the City Council adopted Ordinance 2027 approving a development agreement between Divco and the City of Burlingame. She stated that the term of the agreement is 20 years. She noted that the agreement sets forth the rights and obligations of the developer and the City with respect to development of three new 11-story office/research and development buildings, and two new 10 to 10.5-story parking garages on an approximately 12-acre site located at 1200-1340 Old Bayshore Highway. She added that the developer has submitted the 2024 Annual Review Form in compliance with the development agreement and has complied in good faith.
CDD Zayer stated that the developer submitted building and grading permit applications for Phase I of the project that are currently under review.
Vice Mayor Brownrigg asked about the status of any third-party approvals. Divco representative Seth Bland explained that they have six or seven federal agencies to work through for approvals. He stated that no
4 one had granted final approval yet. However, he was optimistic they would get everything they needed by the end of the calendar year.
Vice Mayor Brownrigg opened the item up for public comment. No one spoke.
Councilmember Colson made a motion to adopt a Resolution Number 014-2025; seconded by Councilmember Pappajohn. The motion passed by roll call vote, 4-0-1 (Mayor Stevenson was absent).
11. STAFF REPORTS AND COMMUNICATIONS
a. ADOPTION OF A RESOLUTION AUTHORIZING THE CITY MANAGER TO NEGOTIATE AND EXECUTE A
LEASE AGREEMENT, PURCHASE AND SALE AGREEMENT, AND TENANT IMPROVEMENT AGREEMENT WITH 1440 CHAPIN OWNER LLC FOR 1440 CHAPIN AVENUE FOR USE AS THE CITY'S
NEW CITY HALL
City Manager Goldman began by discussing the growing community discussion on this project via Nextdoor.
She explained that the item before the Council was the purchase of 1440 Chapin to be utilized as a new City Hall. However, she made it clear that no decision had been made about what to do with the City’s current City Hall property. She added that staff would conduct a thorough public outreach campaign regarding how best to utilize the current City Hall space and confirmed that staff and the City Council understand the importance of maintaining green space on the property.
City Manager Goldman discussed the background of this item and noted that the Council had been briefed during City Council meetings over the last two years regarding the condition of the current City Hall. She added that the City was under a non-disclosure agreement with respect to 1440 Chapin and therefore couldn’t talk publicly about the potential purchase until this meeting.
Assistant to the City Manager Jeremy Kirshner reviewed staff’s concerns with the current City Hall:
• 26,000 square feet with much wasted space.
• A conservative estimate of staff growth is 20%, which would require 32,400 to 40,500 square feet of space in the future
• City Hall is almost 55 years old, and an earthquake could cause substantial structural damage and moderate risk to life
• Annual maintenance costs of $313,000
• Structural, electrical, HVAC, and plumbing repairs and upgrades are required to keep the building running
o $16,000,000 in the next 5 years
o $35,000,000 in the next 10 years
o These repairs do not get us any additional staff and community meeting space or new facilities
Mr. Kirshner explained that the cost of repairs to the existing City Hall is extremely high, and repairs do not address the issue of City Hall being too small.
5 Mr. Kirshner reviewed the City’s discussions about building a new City Hall on a City-owned parking lot.
However, he noted that the only feasible lots were Lot J, Lot W, and the existing City Hall site.
Mr. Kirshner stated that the costs for building a brand-new City Hall on a City-owned parking lot or 501 Primrose range from $73.4 million to $90 million.
Mr. Kirshner explained that after discussions about the cost of a brand-new City Hall, the City hired CBRE to look at existing commercial real estate. He stated that the commercial real estate market is currently depressed, which allows the City to get a better deal. He added that this also would help save significant taxpayer money compared to building a new City Hall.
Mr. Kirshner explained that CBRE reviewed commercial real estate and found 24 potential sites, which staff narrowed down to five sites. The sites were: 1440 Chapin, 220 Park Road, 1430 Chapin, 555 Airport Blvd, and 1290 Howard. After reviewing the size, age, location within the building, and purchasing options, the City Hall ad-hoc subcommittee and the full City Council directed staff to pursue 1440 Chapin.
Mr. Kirshner stated that a survey about a new City Hall was released to the public on February 10 in order to find out what people wanted in a new building. The survey found that:
• The most important thing to the public is a central location • The new City Hall project should be fiscally responsible and cost-effective • It should be easy to navigate to find the services offered (easy service counters)
Mr. Kirshner reviewed 1440 Chapin:
• 49,590 square feet
• Located approximately two blocks from the current City Hall • In the downtown area
• More parking than at the current City Hall (150 spots; City would be entitled to 82) • Solar panels
• Building in good condition
Mr. Kirshner reviewed the details of the City’s footprint if 1440 Chapin became the new City Hall:
• the entire third floor
• one suite on the second floor for meeting space
• one suite on the first floor to be utilized as the Council Chambers
Mr. Kirshner reviewed the terms of the agreement:
• Lease to purchase agreement
• Lease term of 126 months (will not complete entire lease) o Free rent for first six months
o $6.35 per square foot for months 7 through 12 (roughly $168,000 per month) o Annual increase of 3%
6 o Tenant improvement allowance of $4,105,760 (must be repaid to landlord with interest once City purchases the building)
o 26,522 square feet of leased space
• Purchase price of $34,500,000 (less than the cost of estimated repairs to the current City Hall) o Must complete purchase by June 30, 2027
This gives the City time to explore financing options, including bonds, the General Fund, sale of City owned lots, etc.
o Once the City takes ownership, the City will begin to receive lease revenue from tenants.
With current tenants, the estimated revenue is $1.6 million per year
Mr. Kirshner noted that the City would be staying in the old City Hall through at least August 1, 2026, as tenant improvements would take at least that long.
Mr. Kirshner stated that the City will begin to occupy roughly 26,000 square feet of 1440 Chapin Ave. and won’t have control over the other leased space in the building. He noted that once the City closes on the purchase, the City can begin to alter the remaining space to fit its needs if necessary.
Vice Mayor Brownrigg thanked Mr. Kirshner, City Manager Goldman, Councilmember Colson, and staff for working to find alternatives over the past two years. He understood how difficult a challenge this is to tackle and emphasized the importance of fiscal responsibility.
Councilmember Thayer asked for more information on the physical age versus the actual age of the new building. Mr. Kirshner replied that construction on 1440 Chapin started in 1987. He explained that due to building materials and maintenance cycles, buildings can age at different rates. He stated that based on an appraisal that the City had done, the effective age of the building is 15 years old.
Councilmember Thayer asked if there would be the opportunity for public space on the first floor. Mr.
Kirshner replied in the affirmative.
Councilmember Thayer asked for a breakdown of the price of a new building versus the price of acquiring this building. Mr. Kirshner replied that the $90 million price tag is for a new building on the current City Hall site, but that it didn’t include the demolition of the building. He noted that the numbers quoted are now over a year old and will be higher.
Councilmember Pappajohn asked about finding space in the short term, with no lease to purchase option, while staff continues to review options. City Manager Goldman replied that lease rates are expensive. She noted that the first year of leasing 1440 Chapin would be roughly $1.68 million, year two would be $2.08 million, year three would be $2.14 million, and year four would be $2.20 million. She explained that the City could enter into a short term lease, but it wouldn’t get any say in the building and might not have the funds to purchase a new building while leasing a different building.
Councilmember Pappajohn stated that leasing would keep the option of other places open, and there might be better locations in the future. City Manager Goldman replied that the City did a thorough search
7 for space, and there did not seem to be a better option currently or in the near future. She noted that the documents work together, and that there is not a lot of time to lease and not commit to purchase the building. She didn’t think it wise to lease and hope for something better.
Councilmember Colson added that the City has been around for 118 years, and that in order to be around for another 118, the City will have to make some smart decisions. She noted that the $2 million per year lease is less than half of the cost to run the Police Department. She added that $3 million for 17 years would be the cost of a building, and that every dollar after 17 years is wasted. She stated that the economics make it better to own and operate our own building.
Councilmember Colson stated that the City created a Chapin Avenue Streetscape Plan a few years ago that could be used to revitalize the new City Hall area. She noted that the estimated cost for a new building would be between $800 and $1,000 per square foot, not including any soft costs or tariff increases. She added that the new Community Center was roughly $1,200 per square foot.
Vice Mayor Brownrigg stated that the purchase price is roughly $800 per square foot, which is well below construction costs.
Vice Mayor Brownrigg opened public comment.
Mr. Duncan was concerned about the financing for the new City Hall.
Mr. Galloway was concerned about the numbers surrounding the office space.
Mr. Paul asked about earthquake safety at 1440 Chapin.
Former Councilmember Lee was in favor of moving forward with 1440 Chapin and noted the many significant health and safety problems with the current building.
Mr. Baleix voiced concern over the potential layout of the new building and worried about the loss of green space at the old City Hall.
A member of the public asked about the earthquake seismic retrofit components as 1440 Chapin was built before the 1989 earthquake.
Vice Mayor Brownrigg closed public comment.
CBRE representative Brian Hutcherson explained some of the due diligence done on 1440 Chapin and some of the proposed tenant improvements. He stated that the building was seismically compliant and conforms with the standards and regulations. He added that CBRE did a full property condition assessment and found that nothing stood out from a maintenance perspective.
8 City Manager Goldman stated that the City is working with an architect to figure out the configuration of the new space. She noted the third floor has 21,118 square feet of space; the second floor will have 3,116 square feet; and the first floor will have 2,288 square feet of space for City use. She noted that the City will receive approximately $1.6 million in revenue from the space the City is not occupying once the City owns the building.
Vice Mayor Brownrigg discussed the need to make the building look more civic and less corporate. He noted that change is hard, and this will not be an easy process. He explained that in the General Plan update, the City planned for growth, and with that growth comes more work for the City. He added that the City will have to grow in order to support the services needed.
City Manager Goldman stated that the City would be using money from the General Fund, as well as selling Parking Lot H (across El Camino Real), which will bring the price down by an estimated $10 million or $11 million. She explained that the City would do a lease revenue bond, and to pay the debt service on that, General Fund money will be used. She noted that the Building Division is an Enterprise Fund, so they will essentially be leasing space from the City. She stated that the lease revenue will also go towards the debt service of the lease revenue bond.
Councilmember Colson stated that the hope is to eventually move the tree lighting to the new town square. She noted that this is a difficult decision, and that the Council is working with the data and information they have at this time.
City Manager Goldman read a letter from Mayor Stevenson supporting the item.
Councilmember Colson made a motion to adopt Resolution Number 015-2025; seconded by Vice Mayor Brownrigg. The motion passed by roll call vote, 4-0-1 (Mayor Stevenson was absent).
Vice Mayor Brownrigg thanked staff and the consultants for all their hard work.
12. COUNCIL COMMITTEE AND ACTIVITIES REPORTS AND ANNOUNCEMENTS
There were none.
13. FUTURE AGENDA ITEMS
Councilmember Colson suggested the City Council work on a letter of values that encapsulates what Council believes in. Council supported the idea.
14. 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
.
9 15. ADJOURNMENT
Vice Mayor Brownrigg adjourned the meeting at 9:00 p.m.
Respectfully submitted,
/s/
Meaghan Hassel-Shearer
City Clerk