HomeMy WebLinkAboutTC Minutes 2015-07-01TOWN COUNCIL
MINUTES
CALL TO ORDER
Mayor Doyle called the regular meeting of the Tiburon Town Council to order at 7:30 p.m.
on Wednesday, July 1, 2015, in Town Council Chambers, 1505 Tiburon Boulevard, Tiburon,
California.
ROLL CALL
PRESENT: COUNCILMEMBERS: Doyle, Fraser, Fredericks, O'Donnell, Tollini
PRESENT: EX OFFICIO: Town Manager Curran, Town Attorney Stock,
Director of Administrative Services Bigall, Director
of Public Works/Town Engineer Barnes, Director of
Community Development Anderson, Town Clerk
Crane Iacopi
Prior to the regular meeting, the Council interviewed a candidate (Victoria Fong) for the Heritage &
Arts Commission, and also met briefly with a previous candidate, Kenna Norris.
INTERVIEWS - 7:15 p.m.
(Heritage & Arts Commission)
• Victoria Fong
ANNOUNCEMENT OF ACTION TAKEN IN CLOSED SESSION, IF ANY
There was no closed session.
ORAL COMMUNICATIONS
Maria Bordeleau, St. Hilary School Principal, told the Council about the recycling programs and
"green initiatives" being undertaken by the school. She said that their Ecology Council and
parent volunteers were working hard on these initiatives, such as trash reduction and composting.
She said that additional funds were needed to purchase recycling cans for classrooms and lunch
areas, and she asked that the Town consider giving a portion of its Zero Waste Grant Funding to
the school to support these efforts.
Following Ms. Bordeleau's speech, three children addressed the Council and asked for their
support.
Town Council Minutes #14 -2015 July 1, 2015 Page 1
Mayor Doyle thanked the speakers for bringing the matter forward to the Council.
On another matter, Sara Klein, coordinator and one of the organizers of the Hawthorne Terrace
undergrounding effort, informed the Council that they had 70 signatures on their petition which
represents 62% of the property owners in the proposed district, and had raised $145,500. She
said that the undergrounding effort would remove poles on Rock Hill Drive, as well as other area
streets, and would include five poles on the Town's multi -use path.
Ms. Klein said that the organizers had met with Town staff several times and the current
direction to the neighbors was to raise $300,000 in order to fund full engineering plans. She said
that fundraising was seen by some in the district as "risky" because of previous efforts that had
not come to fruition. She asked how the Town might make this easier for the homeowners, in
order to proceed.
Town Manager Curran complimented the Hawthorne organizers and said that they had
approached the task with intelligence and diligence. She acknowledged that fundraising was a
tough task and that undergrounding was an expensive undertaking. She said that it was prudent
to go into a district vote with really good information. Curran said that one of two courses, under
Town policy, was to have a vote based on a preliminary assessment rather than final engineered
plans. She said that full plans would minimize the risk undertaken by the homeowners. Curran
said that staff would continue to work with the organizers on a course of action.
Curran noted that Ms. Klein had also raised the question of whether there was a way for the
Town to participate in the undergrounding project.
CONSENT CALENDAR
1. Town Council Minutes — Adopt minutes of June 3, 2015 regular meeting (Town Clerk
Crane Iacopi)
2. Town Council Minutes — Adopt minutes of June 17, 2015 regular meeting (Town Clerk
Crane Iacopi)
3. Commendation for Tarun Sanghvi — Adopt resolution commending Building Permit
Technician Tarun Sanghvi for his years of service to the Town upon the occasion of his
retirement on June 30, 2015 (Director of Community Development Anderson)
4. Stewart Drive Storm Drain Project — Award of contract for Stewart Drive Storm Drain
Rehabilitation Project to Cratus Inc., and construction management contract to Green Valley
Consulting Engineers (Director of Public Works/Town Engineer Barnes)
5. Tiburon Police Association Contract — Approve Memorandum of Understanding with
Tiburon Police Association, dated July 1, 2015 through June 30, 2018, and authorize Town
Manager to execute the agreement (Director of Administrative Services Bigall)
Town Council Minutes #14 -2015 July 1, 2015 Page 2
6. Service Employees International Contract — Approve Memorandum of Understanding
with Service Employees International Union, dated July 1, 2015 through June 2018, and to
authorize the Town Manager to execute the agreement (Director of Administrative Services
Bigall)
7. Management and Unrepresented Employee Contracts — Adopt resolutions a) adopting an
amended Management Recognition and Incentive Compensation Program for FY 2015-16;
and b) adopting an amended Unrepresented Employees Recognition and Incentive
Compensation Program for FY 2015-16 (Director of Administrative Services Bigall)
Councilmember O'Donnell said that he would abstain from voting on the June 3 minutes (Consent
Calendar Item No. 1).
Vice Mayor Tollini made a correction to Item No. 2 (June 17, 2015 minutes); page 3, paragraph 4,
noting that the City of Sausalito said that they would participate "in the community outreach project"
(and delete previous sentence).
MOTION: To adopt Consent Calendar Item Nos. 1 through 7, as amended.
Moved: Fraser, seconded by Fredericks
Vote: AYES: Unanimous
ABSTAIN: O'Donnell, Item No. 1
ACTION ITEMS
1. Appointments to Town Boards and Commissions — Consider appointments to fill
vacancies on Heritage & Arts Commission (Town Clerk Crane Iacopi)
Council said that both candidates — Victoria Fong and previous applicant, Kenna Norris — would
make terrific additions to the commission. Councilmember Fredericks noted that they brought
unique talents and experience to the job, as well.
MOTION: To appoint Victoria Fong and Kenna Norris to the Heritage & Arts Commission.
Moved: O'Donnell, seconded by Fredericks
Vote: AYES: Unanimous
Councilmember Fraser said that now that the vacancies on the commission were closed to being
filled, it would be a good time to schedule a workshop with the commissioners to talk about
future projects and community events.
2. Mill Valley Refuse Service Rate Increase Application — Consider approval of rate increase
application (Director of Administrative Services Bigall)
Town Council Minutes #14 -2015 July 1, 2015 Page 3
Director Bigall provided the background for the rate application more fully stated in the written
staff report. She also distributed a rate sheet comparison with other communities in Southern
Marin served by Mill Valley Refuse Service (MVRS).
Bigall said that on April 1, 2015, MVRS submitted an application for a base rate increase of
3.84% covering the period July 1, 2015 through June 30, 2016. She said the reasons stated in the
application for the increase were a projected decrease in revenue from the sale of recyclable
materials, coupled with increases in depreciation and interest expenses, worker's compensation,
liability and auto insurances, JPA fees, and pension and health benefits. A subsequent submittal
revised the rate increase application which lowered the projected insurance and pension expenses
resulted in the requested increase of 3.47%, according to Bigall.
Ms. Bigall said that every three years, at the expense of MVRS, the agencies served by the
company (Belvedere, Tiburon, Mill Valley, Corte Madera and unincorporated areas of Southern
Marin) can retain the services of an outside consultant to review the application to determine the
accuracy of the calculations used by MVRS to justify the rate increase. She said the cities hired
R3 Consulting Group, Inc. (R3) to review the base rate change application and related financial
information for each agency. Based on this review, she said that R3 had determined the
appropriate rate increase for Tiburon is 3.09%. She said that staff thinks this is consistent with
what is allowed under the contract.
In her report, Director Bigall also discussed some issues that have arisen since last year when the
last rate increase application was approved. She discussed the new premium rate service of
either $5 or $15 per month to have a can that is not at curbside (previously called "backyard
service) picked up and returned to its non -curb location. She said this is a one-way charge.
Bigall also noted that residents over age 70 or handicapped receive an exemption from the
additional charges when the can is placed in a location that is visible from the street. She said
that since the service was instituted last October, she had received a number of calls and noted
that MVRS had worked hard and diligently to locate mutually agreeable areas for people in this
category to locate their cans. She said the calls had tapered off and she had not received any in
the last few months.
The second issue raised over the past year by two residents, according to Bigall, was why the
Town did not blend the hills v. flat area rates like the City of Belvedere did in December 2014.
She said that if the Council wished to consider this, a new public rate hearing should be
scheduled. She said it would be cost neutral to the Town.
Bigall said that in Belvedere's case, those customers who were paying for a 32 -gallon can in the
flat area saw their rates increase by 12.9% ($4.56/month) and those in the hilly areas saw their
rates decrease by 11% (or $4.37/month). She said that MVRS would need time to calculate rates
for Tiburon, if Council directed them to do so.
Town Council Minutes #19 -2015 July 1, 2015 Page 4
In conclusion, Director Bigall said that there is no cost to the Town in approving the requested
[3.09%] rate increase. She said the Town would realize an increase of approximately $12,900 in
franchise fees from the proposed rate increase.
Jim lavarone of Mill Valley Refuse Service said that Bigall had given a very comprehensive
report and that he was there to answer any questions of Council.
Council discussion and questions
Councilmember O'Donnell asked about the lower rates proposed for Corte Madera and
Strawberry. Iavarone said Corte Madera's smaller increase had to do with the anticipated
revenue received from the new apartment complex. He said that Strawberry was lower because,
like Corte Madera, it included a shopping center. He explained that commercial businesses, with
trash pick-ups 2-3 times per week, went a long way in subsidizing residential services because
they "dump quickly and easily" and have relatively low labor costs.
O'Donnell also asked some questions about how depreciation and interest was stated in the
application. He said that the purchase of 14 new trucks and depreciation of those trucks should
work in favor of the company on its balance sheet.
Iavarone argued that it was still a loss because the bond payments had to be made and the
expenses recouped by the company; he likened it to the purchase of a new car which depreciates
as soon as you drive it off the lot.
Councilmember Fraser agreed with O'Donnell that depreciation was a "paper expense".
Claudia Hays, MVRS finance representative, agreed with Iavarone that the depreciation must be
taken over the life of the truck; O'Donnell continued to assert that it was not a cash expense, and
therefore should not be used as a justification of a rate increase based on costs. Ms. Hays agreed
that it was not a cash expense. But she said that accounting rules require the company to
recognize the depreciation as an expense over 10 years.
Town Manager Curran said that depreciation might be looked at as the "cost" of the trucks.
Councilmember Fredericks added that while the company did not "buy" the trucks outright, and
had fmanced them through bonds, it still had to pay for them. She said that the expenses stated
in the report seemed reasonable to pay the cost of having our garbage collected.
O'Donnell concluded that while the company can argue that the interest (on the bonds) is driving
up its costs, the way it is stated in the rate application is incorrect.
Fredericks asked if the independent auditor (R3) had reviewed this. Director Bigall said they had
and that they had found the expense acceptable. Bigall noted that the Town expenses its
acquisitions in the same manner, and said that the Town was only allowed to expense a capital
cost over the life of the improvement, for example.
Town Council Minutes #14 -2015 July 1, 2015 Page 5
Councilmember Fraser said that the financial statements still seemed a little "foggy". Overall, he
said that MVRS did a great job for the community but there were a few issues with the proposal:
1) the elderly [and people who cannot move their trash cans to the curb] now have to pay extra
for trash service; 2) there are no cost-saving features listed in the proposal; and 3) the company
should communicate better with the community about these changes and how to address them.
As way of illustration, Councilmember Fraser said that his wife was injured trying to move a
heavy can to the street. Fraser suggested that the added charge for backyard pick-up might be
blended into the overall rates.
Iavarone addressed these issues. First, he expressed sympathy with Councilmember Fraser about
the regrettable injury to his wife. But he said he was somewhat baffled by the public surprise
(over having to pay extra for backyard garbage can service) because curbside service was the
norm for recycling cans for 20-30 years. He said he had never heard a word [of protest] about the
change to curbside service until the garbage cans had to be moved to the street. He said he
thought that maybe it had something to do with the aging demographic, as pointed out by
Councilmember Fraser. However, Iavarone said that the company had assisted people with
getting their cans to the curb for years; he said, for recycling services, they go out to the residence
and look for a reasonable distance that will work for the parties — for instance, whether to leave
the cans just outside a gate, or the like. He said they had done the same for trash cans since
instituting the curbside service for garbage.
As for cost -savings (Item No. 2 raised by Councilmember Fraser), he said that the answer to the
question, why don't we offer something cheaper, is curbside service. He said that this is the most
economical way to provide service and that his company was almost the last to institute it in
Marin (he said that Sausalito still offers backyard pick-ups).
Other cost savings had been accomplished by the company through consolidation of routes,
according to Iavarone, but curbside service is what allows them to consolidate the routes. If the
company has to reverse that, he said, it would be a step backwards.
Iavarone also said that the company had instituted the exemption program as a way to address the
issues of elderly or disabled customers, and that the only thing required by them was that the can
be visible and within 25 feet of the streets.
Councilmember Fraser asked him to double the efforts in education, to get the word out.
Iavarone said that the rate and service changes were announced in the company's newsletters, in
the bill inserts, and on their website. He asked whether there was an expectation that they go
door-to-door. But on another note, he said that the traditional way to cut costs were through
reducing costs by recycling and composting more. He said that this had been successful and that
many customers are now using 35 or even 20 -gallon cans as opposed to 45 -gallon cans, which
used to be the norm.
Town Council Minutes #14 -2015 July 1, 2015 Page 6
Iavarone also said that the company had recently received a Zero Waste Grant and had hired R3
to do a study on what more could be done in this area [waste reduction]. He said they would
learn from this and apply the knowledge to the franchise.
Mr. Iavarone went on to describe the rate structure for "on premise" and "on premise plus"
service to the Council. He noted that blending these premiums would result in higher rates for all
customers.
Vice Mayor Tollini asked Iavarone to consider more outreach to those who don't fall under the
exemptions category (disabled and over 70 years of age).
Mayor Doyle said that there was a perception in the community that rates had gone up but service
had gone down. He, too, said how difficult it was to get cans up and down steep driveways in his
neighborhood. He asked how a rate increase could be rationalized when nothing else [service -
wise] was changing.
Iavarone said that if the company reverted to its old pick-up model, that is, picking up all three
types of cans, without curbside service, it would change the game and the rates.
Councilmember Fredericks pointed out that there were 2700 customers in the Tiburon
community and of these, only 48 paid for the extra service, according to the report. She asked if
there was a "silent majority" that was not represented.
Councilmember Fraser said that for some customers, the increase represented a lot of money; for
others, they were not even aware of the increases.
Mr. Iavarone said that every situation was unique and that they had come up with solutions on a
case-by-case basis. Fraser asked him to try to be as inclusive as possible.
Councilmember O'Donnell said that this was a great business to be in, whereby you can total up
your costs, add your profit margin, and have no competition. Iavarone said the latter was not
true; he said if the company really had a monopoly, they would have six more guys working in
Tiburon. He also said that they had many times consolidated routes to cut costs, along with other
measures.
Councilmember Fraser said that he would like to see clearly what the company was doing to take
costs out of the system and quantify them; and to hear more about getting costs in line through
the use of technology, and the like, in order to make the service more cost effective. He
acknowledged that this is difficult to address in a labor-intensive business; but he said he would
like to hear more about this, in future.
Councilmember Fredericks said that she had recently observed the weekly pick-up on her street,
and that she had timed the pick-up by MVRS workers for six houses to 169 seconds, including
taking time to talk to one of the residents. She said that the workers were amazing.
Town Council Minutes #14 -2015
July 1, 2015 Page 7
Councilmember Fraser agreed that they did good work.
Vice Mayor Tollini again asked for increased outreach efforts. Mayor Doyle said their brochure
stated that "we're here to help".
Councilmember O'Donnell said that he wished there was more competitiveness, which he said
results in keeping costs in line. He mentioned the success of Marin Clean Energy as an example
of using competition to moderate rates.
Councilmember Fredericks asked staff whether the R3 audit was an audit of internal accounting,
or an audit of the reasonability of the rate increase. Town Manager Curran said it was both; that
the audit looked at industry comps and indicators, as well as internal numbers.
O'Donnell said it would be better if there was an index used in negotiating, such as the CPI, or
the like, to create more certainty for the ratepayer. He said that evergreen contracts are a mistake;
that a price structure should accompany a contract.
Fredericks asked for a summary of the evergreen clause, and whether there were non -predicable
regulatory controls that could play a role in contract costs. Director Bigall said that the 2011
contract with Mill Valley Refuse Service was for a 10 -year term, with two five-year renewals.
She said the reasoning for an evergreen clause is that the franchisee needs assurances of a
revenue stream (in order to be viable).
Councilmember O'Donnell and company representatives entered into a brief discussion about
whether more recycling actually lowers costs or if the company makes a profit in increased
volume (minus labor costs).
Public Comment
Mayor Doyle opened the hearing to the public. There was no public comment. Mayor Doyle
closed the public hearing.
MOTION: To adopt the resolution approving the MVRS rate increase of 3.09% for FY 2015-16.
Moved: Fredericks, seconded by Tollini
Vote: AYES: Doyle, Fredericks, Tollini
NAYES: Fraser, O'Donnell
3. Downtown Revitalization — Discussion and direction regarding approval of, and funding
for, mid-day closures of Main Street on four consecutive Wednesdays this July and August
for "Summer Days on Main" (Vice Mayor Tollini/Councilmember Fraser/ Town Manager
Curran)
Town Council Minutes #14 -2015 July 1, 2015 Page 8
Vice Mayor Tollini led the discussion and said that the idea had been conceived in talking with
merchants to help increase foot traffic in downtown on weekdays. She said she hoped that
"Summer Days on Main" would bring more locals downtown to lunch and shop, and that the
businesses would have coordinated promotions. She said that there would be music and
activities for children, as well.
Councilmember Fraser said that the proposal was backed by the Chamber and that logistical
support would be provided by The Ranch, with assistance from Town staff.
Councilmember Fredericks said it was a great idea and that she was glad it was supported by the
merchants. Councilmember O'Donnell also expressed his endorsement.
Mayor Doyle opened the item to public comment.
Roger Felton, Parking Manager for Zelinksy Properties, said that Friday Nights on Main
(FNOM) "kills" the parking at the Main Street lot. He asked that the Council take this into
consideration, and perhaps put out signage directing traffic to the lot, while the street is closed.
He said the events would not do anything for Ark Row, either.
Councilmember Fraser said that the logistical details were still being worked out. Vice Mayor
Tollini said that they were trying to get Ark Row involved in the four Wednesdays, as well.
Councilmember O'Donnell said that he noted a full parking lot during the last FNOM.
O'Donnell also said that the Town might be supportive of a new entrance to that lot, from Juanita
Lane. He said this would provide a more integrated feeling to Main Street and Ark Row. Fraser
concurred and expressed his support of the idea, as did the Mayor.
There being no further comment, Mayor Doyle closed the item to public comment.
MOTION: To approve the proposal and funding for Summer Days on Main.
Moved: Fredericks, seconded by Doyle
Vote: AYES: Unanimous
PUBLIC HEARINGS
1. Cypress Hollow Landscape & Lighting District (LLD) — Hold annual protest hearing and
consider adoption of resolution to continue the LLD assessment for fiscal year 2015-16
(Director of Public Works Barnes/Director of Administrative Services Bigall)
Director of Public Works/Town Engineer Barnes gave the staff report and described the
improvements that are funded by the annual homeowner's assessment. He said that based on the
1998 joint resolution transferring the jurisdiction of the Cypress Hollow Landscape and Lighting
Town Council Minutes #14 -2015 July 1, 2015 Page 9
District (LLD) to the Town, the Town has maintenance responsibility for three sites within the
district:
1. The 25 -foot sanitary sewer easement landscape and irrigation on the east boundary;
2. Entry landscaping and the 30 -foot storm drainage easement on the southwesterly boundary
and irrigation system; and
3. Ownership and maintenance of the park site.
He said that has been no change in the amount of the assessment since 1998, which is $378 per
year. He also noted that the assessment was used to bank funds for the next capital project that
might be needed, but he said he did not anticipate a need to raise the assessment for 10 years.
Councilmember O'Donnell said that someone who spoke at last year's hearing said that the
district was supposed to sunset in 25 years. Engineer Barnes said that yes, the property owner
had been told that by someone but that it was not, in fact, the case.
O'Donnell said that since Cypress Hollow had been annexed, and was part of the Town, was it
fair to continue to assess that neighborhood. Town Manager Curran said that continuation of the
agreed-upon property assessment was prudent policy, but that if the Town Council wished to
reconsider it, it could do so. She said that if this action was taken, other homeowner's groups
might come to the Town for funding for private amenities, such as medians or roadways, within
their neighborhoods, as well.
Councilmember Fredericks said that if the LLD were to sunset, would it create a precedent for
maintenance of private roadways, for instance. The Town Manager said it would not bind the
Council.
O'Donnell said that in the absence of any protests, there did not seem to be a need to debate or
discuss the continuation of the district.
Vice Mayor Tollini said that the assessment was similar to a homeowner's association fee and
did not seem to be problematic.
Mayor Doyle opened the public hearing. There was no public comment, or protests received.
Mayor Doyle closed the public hearing.
MOTION: To adopt the resolution approving continuation of the district for FY 2015-16.
Moved: Tollini, seconded by Fraser
Vote: AYES: Unanimous
Town Council Minutes #14 -2015
July 1, 2015 Page 10
TOWN COUNCIL REPORTS
Councilmember Fredericks said that State funding of transportation funds for infrastructure
maintenance and operation of transit systems continues to face shortfalls. She said that
previously, cap and trade agreement dollars seemed a likely source but no money was allocated
in the current State budget from this source. She said that government continues to emphasize
the need for generating funding at the local level and she described local projects which could be
leveraged to receive funds.
At a June 22 workshop, Fredericks said that many had identified the need for better bus service,
and that it would be useful to communicate the importance of the Yellow Bus school bus service.
She also noted that relieving congestion in the 580 corridor was a priority. Fredericks suggested
that everyone go to the TAM website and take the "wish list" survey on allocation of
transportation dollars.
On another matter, Councilmember O'Donnell asked whether the monthly sire test could be
rescheduled from the 4`h of July so as not to alarm residents on a national holiday. Town Manager
Curran and Chief Cronin said they were in communication with Fire Chief Pearce about this.
TOWN MANAGER REPORT
Town Manager Curran said that the next step in recruitment of the new Town Manager was to send
out an RFP for a search firm and review the responses. Council directed her to move ahead with the
recruitment, as stated.
WEEKLY DIGESTS
• Town Council Weekly Digests — June 19 & June 26, 2015
Accepted.
ADJOURNMENT
There being no further business before the Town Council of the Town of Tiburon, Mayor Doyle
adjourned the meeting at 9:24 p.m.
ATTEST:' (.>
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DIANE CRANE IACD -I; "TOWN CLERK
Town Council Minutes #14 -2015
FRANK X. DOYLE, MAYOR
July 1, 2015 Page 11