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HomeMy WebLinkAboutTC Agd Pkt 2005-06-29 . - Revised - TOWN OF TIBURON Town Council Chambers 1505 Tiburon Boulevard Tiburon, CA 94920 )4eJW .~ .(1 June 29, 2005 6:15 P.M. - Closed Session 7:30 P.M. - Adjourned Meeting ASSISTANCE FOR PEOPLE WITH DISABILITIES In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the Town Clerk at (415) 435-7377, Notification 48 hours prior to the meeting will enable the Town to make reasonable arrangements to ensure accessibility to this meeting, AVAILABILITY OF INFORMATION Copies of all agenda reports and supporting data are available for viewing and inspection at Town Hall and at the Belvedere-Tiburon Library located adjacent to Town Hall. Agendas and minutes are posted on the Town's website, www.ci.tiburon.ca.us. . Upon request, the Town will provide written agenda materials in appropriate alternative formats, or disability-related modification or accommodation, including auxiliary aids or services, to enable individuals with disabilities to participate in public meetings, Please send a written request, including your name, mailing address, phone number and brief description of the requested materials and preferred alternative format or auxiliary aid or service at least 5 days before the meeting, Requests should be sent to the Office of the Town Clerk at the above address, PUBLIC HEARINGS Public Hearings provide the general public and interested parties an opportunity to provide testimony on these items, If you challenge any proposed action(s) in court, you may be limited to raising only those issues you or someone else raised at the Public Hearing(s) described later in this agenda, or in written correspondence delivered to the Town Council at, or prior to, the Public Hearing(s), TIMING OF ITEMS ON AGENDA While the Town Council attempts to hear all items in order as stated on the agenda, it reserves the right to take items out of order. No set times are assigned to items appearing on the Town Council agenda, . \ Agenda - Town Council Meeting ''). June 29, 2005 Page 2 of 4 . AGENDA CLOSED SESSION CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION (Section 54956,9(a)) Zimmerman v, Morphew et al Bonander & Mulberg v, Town of Tiburon CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION (Section 54956,9(b)) Threat of litigation received from Reed Union School District CONFERENCE WITH LABOR NEGOTIATOR (Section 54957,6) Bargaining Unit: Negotiator: MAPE Town Manager and Administrative Services Director CALL TO ORDER AND ROLL CALL . Councilmember Fredericks, Councilmember Gram, Councilmember Slavitz, Vice Mayor Smith, Mayor Berger ANNOUNCEMENT OF ACTION TAKEN IN CLOSED SESSION. IF ANY ORAL COMMUNICATIONS Persons wishing to address the Town Council on any subject not on the agenda may do so now, Please note however, that the Town Council is not able to undertake extended discussion or action tonight on items not on the agenda, Matters requiring action will be referred to the appropriate Commission, Board, Committee or staff for consideration and/or placed on a future Town Council meeting agenda, Please limit your comments to no more than three (3) minutes, CONSENT CALENDAR All items on the Consent Calendar may be approved by one motion of the Town Council unless a request is made by a member of the public, staff or Town Council that an item be transferred to the Regular Agenda for separate discussion and consideration, Likewise, any item on the Regular Agenda may be moved to the Consent Calendar. If you would like to speak on any of these items on the Consent Calendar below, please do so now, 1, Approval of Town Council Minutes - June 15, 2005 2, Recommendation by Director of Administrative Service - Accept Investment Summary - May 2005 . / ; . . . / Agenda - Town Council Meeting June 29, 2005 Page 3 of 4 3, Recommendation by Director of Administrative Services - Authorize Town Manager to Negotiate Sale of Town-Owned Real Estate at 32 Marsh Road a) A Resolution of the Town Council of the Town of Tiburon Authorizing the Town Manager to Execute Documents Related to the Sale of 32 Marsh Road, Tiburon, California and the Conveyance of the Property 4, Recommendation by Director of Public WorkslTown Engineer - Authorize Execution of Cooperative Funding Agreement with Cal/TRANS and County of Marin for Highway 101-East BlithedalelTiburon Boulevard Interchange Safety Improvements a) A Resolution of the Town Council of the Town of Tiburon Authorizing the Town Manager to Execute a Contribution Agreement with the State of California Department of Transportation To Initiate Construction of, and Cost Sharing Agreement for, Safety Improvements to the U,S, Highway 101 Southbound Offramp to East Blithedale AvenuelTiburon Boulevard, and Appropriating Funds Therefor 5, Recommendation by Assistant Planner - Application for Irrigation Well Permit Address: 121 Barn Road Applicant: Kurcher Assessor Parcel No, 038-162-44 6, Recommendation by Town Clerk - Reappointment of Allan Bortel to Marin Commission on Aging REGULAR AGENDA 7, Recommendation by Town Manager - Adoption of FY 2005-06 Municipal Budget and Related Resolutions a) A Resolution of the Town Council of the Town of Tiburon Adopting a Municipal Budget for the Town of Tiburon and the Tiburon Redevelopment Agency for the Fiscal Year _ Ending June 30, 2006 b) A Resolution of the Town Council of the Town of Tiburon Repealing Resolution No, 24-2003 and Adopting an Amended Management Recognition and Incentive Compensation Program c) A Resolution of the Town Council of the Town of Tiburon Repealing Resolution No, 25-2003 and Adopting an Amended Mid-Management, Professional & Confidential Employees Recognition and Incentive Compensation Program d) A Resolution of the Town Council of the Town of Tiburon Establishing an Appropriations Limit for the Fiscal Year 2005-2006 Pursuant to Article XIII B of the Constitution of the State of California (Gann Limit) \ Agenda - Town Council Meeting June 29, 2005 Page 4 of 4 "\ . 8, Recommendation by Town Manager - Authorize Sale of Bonds - Del Mar Valley Underground Utilities Assessment District a) A Resolution of the Town Council of the Town of Tiburon Authorizing Issuance of Limited Obligation Improvement Bonds PUBLIC HEARING 9, Recommendation by Town Manager -Mill Valley Refuse 18th Amendment to Franchise Agreement 10, Report by Planning Manager - Appeal of Design Review Board Approval of addition of Second Story at 689 Hilary Drive Assessor Parcel Number: Applicant: Appellants: 055-211-07 Ignatius Tsang Jocelyn McDonnell, Andy Garde & Joe Keller 11, Recommendation by Town Attorney & Director of Community Development - Economic Exception Ordinance (continued from June 15, 2005) Introduction & First Reading of Ordinance a) An Ordinance of the Town Council of the Town of Tiburon Adding a new Article VII to Title IV, Chapter 16 of the Tiburon Municipal Code regarding Economic Exceptions . , COUNCIL AND COMMITTEE REPORTS WRITTEN COMMUNICATIONS Town Council Weekly Digest - June 17, 2005 Town Council Weekly Digest - June 24, 2005 ADJOURNMENT FUTURE MEETINGS July 6, 2005 - Regular Meeting - CANCELLED July 20, 2005 - Regular Town Council Meeting August 3,2005 - Regular Town Council Meeting August 17,2005 - Regular Town Council Meeting FUTURE AGENDA ITEMS - Note: These items are tentative until thev aDDear on the final aaenda . Risk Management Presentation . Lyford Cove Utility Undergrounding Assessment District Award of Contract . Funding Agreement for Downtown Plaza Fountain . Commission Agreement for Downtown Plaza Fountain . Tiburon Glen Precise Development Plan . Drainage Improvements - Notice of Completion . :; ~ -0- - "'""" .0.- Diane Crane lacopi From: Councilmember Alice Fredericks Sent: Sunday, June 26, 2005 4:22 PM To: Diane Crane lacopi Subject: Minutes June 15 corrections TOWN COUNCIL DIANE! LA TEMAIL #...L MEETING DATE ~ - L e; - d r- Welcome back A few errors in the Minutes of June15: Line 1 Mayor Berger not Fredericks Closed Session Announcment: Line 3: subcommittee is Councilmember Slavitz and Smith (not Gram) Oral Communications: Check with Alex: I thought Dave Matheson spoke in favor of the cities running the public access channel. That position would be congruent with his comments during the MTA item # 4, Page 6 parag 5 Regular Agenda - pg 2 Paragraph 3: Clarify that Pat had said the $925K available for roads this year was a one year revenue windfall. (Then Paragraph 4, about long term funding policy makes sense) Paragraph 5:Pat Echols reported that Fire Chief Pierce is interested in seeing restoration of vehicle access to many of the fire roads in Tiburon, including Gilmartin, Pg 4 Paragraph 4: Councilmember Fredericks commented that it would be prudent to lock in franchise fees with Comcast in anticipation of legislative changes to the state and federal changes in telecommunications law that might give them the exemptions they are seeking, Page 5 item 4: There should be a summary about what direction the Council gave Tom after the public hearing was closed, Check with Alex, I believe it was keep on keeping on negotiating Page 8: Paragraph 5: She said that statutory construction rules could interpret the listing of significant ridgelines to preclude other environmental resources if ordinance were challenged, She recommended substituting ''''minimizes damage to the environment and significant environmental resources Thnx Alice {D) ~ ~ ~ ~'~ ~ fro m1 JUN 2 7 Z005 \W TOWN CLERK TOWN OF TIBURON 06/27/2005 .:. . . . I~ ;00. I .r- TOWN COUNCIL MINUTES ... CALL TO ORDER Mayor Fredericks called the regular meeting ofthe Tiburon Town Council to order at 7:37 p.m. on Wednesday, June 15,2005, in Town Council Chambers, 1505 Tiburon Boulevard, Tiburon, California. ROLL CALL PRESENT: COUNCILMEMBERS: Berger, Fred~ricks, Gram, and Slavitz ABSENT: COUNCILMEMBERS: Smith PRESENT: EX OFFICIO: Town Manager McIntyre, Town Attorney Danforth, Director of Community Development Anderson, Director of Public Works/Town Engineer Echols, Chief of Police Odetto, Director of Administrative Services Bigall, Financial Analyst Stott, Meeting Recorder Creekmore ANNOUNCEMENT OF ACTION TAKEN IN CLOSED SESSION. IF ANY Mayor'Berger announced that direction was given to the Town to execute an agreement regarding litigation with the school district. He said that a subcommittee, whose members include Councilmembers Slavitz and Gram, had been formed to address issues regarding negotiations with the school. ORAL COMMUNICATIONS David Matheson, Tiburon resident and member of Media Action of Marin, said that Marin County's public access television is run by Comcast and not by local government. He spoke in favor of a nonprofit-run public access station. He said that Comcast is in violation of numerous terms of their franchise agreement and presented a public access non-profit resolution for the Council's consideration. Steven Fienes, resident of Strawberry, spoke in support of Mr. Matheson's statements. He said that Comcast is to blame for the community's lack of interest in public access television and urged the Council to consider adopting the resolution presented by Mr. Matheson. Town Council Minutes #14-2005 June IS, 2005 Page I ,-~ CONSENT CALENDAR . 1. Approval of Town Council Minutes - June 1, 2005 2. Recommendation by Town Manager - Authorize Renewal ofCDBG Block Grant Agreement with County of Marin MOTION: To approved Consent Calendar Items 1 and 2, above. Moved: Slavitz, seconded by Fredericks Vote: AYES: Unanimous ABSENT: Smith REGULAR AGENDA 3. Recommen~ation by Town Manager - Introduction ofFY 2005-06 Municipal Budget and Capital Improvement Program Financial Analyst Stott gave a PowerPoint presentation of the proposed budget showing an operating budget of $7.4 million with an operating surplus of$280,000. He reviewed the Town's operating budget, revenue sources, and planned expenditures, including increased CalPERS contributions. He reported that a significant change in the upcoming budget is the inclusion of $210,000 in ERAF rebate revenue. Town Manager McIntyre explained that the operating budget, general fund, and capital improvement program are three separate and distinct entities. . Director of Public Works Echols 'gave an overview of the capital improvement program budget and noted that due to two current undergrounding projects, the budget is possibly the largest it has been in the Town's history. He reviewed the projects included in the program and said that $925,000 will go to resurfacing and repair projects. He reported that the Town received more revenue from the street impact fee in the previous year than what was expected. Councilmember Fredericks asked if a long-term policy would be presented to the Council to address long-term funding for road resurfacing projects. Director of Public Works Echols replied that later this summer specific funding scenarios and their alternatives will be presented to the Council. Mayor Berger said that he would like to incorporate something into the Town's phone survey to identify which expenditures the public is most interested in. With respect to the Gilmartin fire road, Director of Public Works Echols said that as a result of recent conversations with Fire Chief Pierce, the Tiburon Fire Department is interested in seeing restoration of vehicle access on that trial. Town Council Minutes #14-2005 June 15, 2005 Page 2 . . . . Mayor Berger opened and'closed the public hearing. There was no public comment. Councilmember Slavitz commended Staff for their work and said that he is happy to see that the street rehabilitation funds were increased, Councilmember Gram said that he would like to receive feedback on the janitorial program. Councilmember Fredericks said that she is happy with the budget and added that the she hopes the public understands that the increase in street rehabilitation funds is a blessing. She said that she would like to see a policy developed that keeps the Town's roads in good condition. Mayor Berger agreed with the comments of his fellow Councilmembers, Town McIntyre informed the Council that Staff would return to Council on June 29 with the final budget and adopting resolutions. , , 4. Request from Marin Telecommunications Agency - Direction to MT A Delegate Concerning a) Resolution Adopting Preliminary Engineers Report & Action Related Thereto b) Renewal of Comcast Franchise Agreement c) Telephone Company's Entrance mto Cable Arena d) MTA Development of Media Facility Town Manager McIntyre gave a brief background on the current challenges faced by the Marin Telecommunications Agency (MTA), as well as its role with the Town, He reported that the MTA'sthe biggest current issue is with Comcast and informed the Council that the Town,is a partner in MTA's :franchise agreement with Comcast. He indicated that Com cast pays a 5% franchise fee to local agencies for the use of rights-of-way in each community. He said that total franchise fees collected for 2004-05 for all MT A members totaled $2 million; Tiburon received $108,000 of that. Town Manager McIntyre said that there are four issues being brought before the Council. Council agreed to discuss and provide direction and feedback for each of the issues separately, 1. Should the MT A pursue a municipally-owned broadband cable system? Councilmember Slavitz asked who would be responsible for running such a system. Town Manager McIntyre replied MT A would run the system. He said that there are cities that run their own cable systems, which typically incur costs of approximately $500,000, Mayor Berger opened the public comment period. Town Council Minutes #14-2005 Page 3 June 15, 2005 Mr. Matheson said that the franchise agreement belongs to Marin County, not Comcast, and that it should be run and controlled by the people of Marin. He added that there has not been an . analysis in over three years to determine if Marin is owed any money by Comcast. He'spoke against Comcast being Marin's cable provider. Mr. Fienes said that there are many potential functions of public access to service the community. He expressed concern over Comcast's role as the county's cable provider and discouraged the Council from entering into a ten-year agreement with Comcast. Mayor Berger closed the public comment period. Councilmember Fredericks commented that she readthat Comcast has attempted to "lock in" their franchise fees in anticipation of changes to the communications systems.Mr, Fienes said that this issue has been addressed by Congresswoman Lynn Woolsey and the MTA. Councilmember Gram said that one of the big keys is crafting an agreement that provides protection five or ten years from now based on changes to the current technology. He said that he does not believe that Marin is big enough to pursue a municipally owned broadcast system, Mayor Berger asked if an entity other than Comcast could provide cable services to Marin, Councilmember Gram said that the MT A is in a good position to negotiate with Comcast and clarified that there is no push to sign the contract at this point in time. He said that he believes a . short-term contract would be preferred over a ten year contract. Council agreed that Marin is not prepared to pursue a municipally-owned cable system. 2. Should the MTA pursue the "formal" cable renewal process rather than the "informal" process? Town Manager McIntyre said that the invoking the "formal" process would be time consuming, structured, and expensive, costing approximately $500,000 more than the "informal" process. He reported that the MT A attorney is not recommending the formal process. Mayor Berger opened the public comment period. Mr. Fienes said that Tom Robinson, consultant to the Marin Access Advisory Committee, was brought in to perform an assessment of what might occur should the MT A select the formal process. He said that the formal process, albeit more expensive, gives the MT A the ability to start and stop the process at any time, Councilmember Gram clarified that the formal process opens up the possibility of replacing Comcast as the cable provider. He said that he does not feel that declaring a formal process at this time is necessary, as it can be started at any time, Town Council Minutes #14-2005 June 15, 2005 Page 4 . . . . Mr. Matheson said that Media Action of Marin has been negotiating with Com cast in good faith for over five years. He said Comcast violated the franchise agreement by placing commercial content on a non-commercial station, which put them into the position to make money off of a non-profit station. He urged the Council to opt for the formal process. Mayor Berger closed the public comment period. Council agreed with Councilmember Gram's suggestions. 3. Should the MTA sue SBC requiring them to obtain a franchise as a condition to provide video services to MT A residents? ' ' Town Manager said that this question has to do with whether non-cable providers, such as internet service providers, should pay a franchise fee for the services that they are providing. The larger question, he explained, is whether Marin County wants to be the agency that challenges SBC to provide a franchise fee for the services they bring into Town. He said that one ofthe arguments that have been suggested is that a larger entity with more resources, and more to gain, should be the one to challenge SBC. Mayor Berger asked why the Town should receive franchise fees from non-cable providers. Town Manager McIntyre explained that one of the reasons is because they are given exclusive use of Town rights-of-way, Additionally, he added, they disrupt the Town's infrastructure when trenching for their services. Town Manager said that SBC currently pays franchise fees for telecommunication services, but not information services. Mayor Berger opened the public comment period. Mr. Matheson said that the MT A should not sue Verizon or SBC. Mayor Berger closed the public comment period. Council agreed that the MT A sh<;mld not sue SBC, 4. Should the MT A require Comcast to provide a media facility (cable studio) as part ofthe franchise renewal? Town Manager McIntyre indicated that Comcast presently provides a media facility for the purpose of public, education, and government (PEG) access television, but that they will not provide operating costs for such a facility, He informed the Council that operating costs are approximately $5.7 million over a 10 year period; Tiburon's share would be $173,000. He said Town Council Minutes #14-2005 PagG5 June IS, 2005 that the issue is whether there is sufficient demand from Tiburon cable subscribers and residents for PEG access to justify the costs. . Councilmember Gram clarified that the issue is whether Comcast should pay for the facility's operating costs, Mayor Berger commented that planning and design review sessions for the City of Piedmont are broadcast over their public access channel. Mayor Berger opened the public comment period, Mr. Matheson presented a list of nonprofit-run PEG channels by local cites and the services that they provide to the community with those channels, He said that although Comcast is supposed to provide twenty-four hours of noncommercial programming, they currently only provide 8-10 hours of noncommercial programming. He urged the Council to consider an independent, publicly-run public access station. Councilmember Gram said that the reason Channel 26 is run from an old, dilapidated building is because it's a vestige from an old agreement, and that the situation will change with the new agreement. In response to Mr. Matheson's comments, he said that upon request by the MTA, Comcast no longer plays commercials on Channel 26. Councilmember Slavitz said that he watches County Board of Supervisor meetings via the . internet and said that many services could just as easily be provided over the internet in addition to public access channels, Mr. Fienes said that Comcast has no interest in seeing Channel 26 succeed and that they are responsible for it having done so poorly. He said in order for public access television to prosper, the community should become more involved in the programming and content. Mayor Berger thanked the public for their comments and closed the public hearing. PUBLIC HEARING 5, Recommendation by Town Attorney & Director of Community Development- Economic Exception Ordinance Town Attorney Danforth gave a detailed introduction to the proposed zoning ordinance text amendment to add provisions regarding economic exceptions. She told the Council that the Institute of Local Self Government developed a model ordinance that creates an economic variance procedure. She said that takings claims are one of the most contentious areas of land use law and litigation can be protracted, costly, and of uncertain outcome. She explained that takings litigation falls into two broad categories: facial claims and the more common "as- Town Council Minutes #14-2005 June 15, 2005 Page 6 . . . . applied" challenge. She overviewed the process of Economic Exception and the actions that would be required of Town Council should a hearing be held, Town Attorney Danforth explained that the proposed ordinance would require property owners to request an Economic Exception before makingra takings claim, which would give the Town an opportunity to review all the facts and reasoning relevant to the potential claim. Community Development Director Anderson gave an overview of the concerns raised by the Planning Commission regarding the ordinance. These concerns included excessive filing of Economic Exception applications, whether information regarding the fair market value of the property should be required, and a request :from Jerry Riessen to modify Section 16-7 .5( a)(2). In response to questions by Councilmember Slavitz, Town Attorney Danforth explained that a developer could make a claim that they are entitled to some return on the money that they have put into the property. She said that this is something the Council could consider, but they could also consider countervailing factors. Councilmember Gram expressed concern over the language "as early as possible" without any mention of the penalty involved, Town Attorney Danforthreferred to Sections 16-7.2, 16-7.3(a) ,and 16-7 .3(b) and explained that the penalty of not requesting an Economic Exception in a timely fashion is that they would not get to litigate it afterwards. She said that a minimum of twenty days is required for the developer to provide all necessary information, but that the Director of Community Development can provide additional time if necessary. With respect to the timeframes outlined in the ordinance, Town Attorney Danforth said that she had concerns with CEQA and the Permit Streamlining Act. She explained that she wanted to make sure that there was a mechanism in place to waive 'the Permit Streamlining Act deadlines if the developer were to receive an extension on the timeframes outlined in the ordinance. Councilmember Slavitz asked how long the permit timeline is. Community Development Director Anderson replied that if there is an EIR involved, typically there are 180 days to take action on a project after the EIR has been certified, if it is a negative declaration or categorical exemption, there are 90 days to take action. Councilmember Fredericks commented that the ordinance can be viewed as a benefit to developers. Councilmember Gram expressed concern that the timeframes outlined in the ordinance will create problems. Community Development Director Anderson replied that an expert will be retained to handle each case. Town Attorney Danforth added that she does not expect the ordinance to be invoked with great frequency, but that when it is invoked it has the potential to allow the Town to avoid taking any action that would create an unconstitutional taking and to greatly reduce the cost oflitigation should a taking claim be filed in court. She realized that there Town Council Minutes #14-2005 June 15, 2005 Page 7 is room for improvement in the ordinance, but that the concept is very beneficial. She explained that the function of the ordinance is to put all of the information before the Council. . Mayor Berger opened the public hearing. Joanna Kemper, Tiburon resident, said that she thought that the ordinance appeared to be a reasonable plan. She referenced Jeny Reissen's comments on page 4 of the Staff report and explained that Mr. Riessen proposed the change to keep in line with the Town's General Plan to provide protection of undeveloped ridgelines. Mayor Berger closed the public hearing. Councilmember Fredericks expressed concern over the proposed amendment regarding the protection of ridgelines. She said that having just the ridgeline there excludes other environmental resources. She recommended adding "such as significant ridgelines". ' Councilmember Fredericks said that she supports adopting the ordinance. Councilmember Slavitz said that the biggest advantage of the ordinance is that it forces the developer to put all of their cards on the table. He suggested tightening up the language regarding timeframes. Town Attorney Danforth requested that the Council provide specific feedback as to how the timeframe should be changed, Councilmember Gram said that he would like to take additional time to review the ordinance and . the he would like Councilmember Smith to have an opportunity to provide feedback on it as well, Councilmember Slavitz said that Mr. Riessen's addition regarding ridgelines is good but that since they are addressed in the General Plan, it doesn't seem necessary to spotlight them in this ordinance. Mayor Berger agreed that it would be best to leave the language more general and not include ridgelines. Mayor Berger also suggested that explicit language be included that the Planning Director could grant additional time, Council agreed that Section l6-7.5(a)(2) should be revised to state "minimize environmental damage as required by CEQA". Council agreed that changes made to the timeframe would be discussed at a later date, Item continued. Town Council Minutes #14-2005 June 15, 2005 Page 8 . . . . WRITTEN COMMUNICATIONS Town Council Weekly Digest - June 3, 2005 Town Council Weekly Digest - June 10,2005 ADJOURNMENT There being no further business before the Town Council, Mayor Berger closed the meeting at 9:52 p.m., and the Council agreed to an adjourned meeting on June 29, 2005. MILES BERGER, MAYOR, ATTEST: DIANE CRANE IACOPI, TOWN CLERK Town Council Minutes #14-2005 June 15, 2005 Page 9 . Town of Tiburon STAFF REPORT AGENDA ITEM ~ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . TO: Mayor and Members of the Town Council , FROM: Heidi Bigall, Director of Administrative Services ~ SUBJECT: Monthly Investment Summary - May 2005 ~ MEETING DATE: June 29, 2005 REVIEWED BY: ~ . . . . . . . . . . . . . . . . . . . . . . ~. . . . TOWN OF TIBURON Institution/Agency Investment Amount Interest Rate Maturity State of California Local Agency $15,266,584,87 2,856% Liquid Investment Fund (LAIF) Bank of America Other 0 % Total Invested: $15,226,584.87 . TIBURON REDEVELOPMENT AGENCY I nstitution/ Agency Investment Amount Interest Rate Maturity State of California Local Agency $924,773,14 2,856% Liquid Investment Fund (LAIF) Bank of America Other $0 Total Invested: $924,773,14 Notes to Table Information: State of California Local Agency Investment Fund (LAIF): The interest rate represents the effective yield for the month referenced above. The State of California generally distributes investment data reports in the third week following the month ended. Acknowledgment: This summary report accurately reflects all pooled investments of the Town of Tiburon and the Tiburon Redevelopment Agency, and is in conformity with State laws and the Investment Policy adopted by the Town Council. The investment program herein summarized provides sufficient cash flow liquidity to meet .ext month's estimated expenditures. . . . Town of Tiburon STAFF REPORT AGENDA ITEM ~ TO: Mayor and Members of the Town Council FROM: Heidi Bigal!, Director of Administrative Services SUBJECT: Authorization of Sell Town Owned Unit at 32 Marsh Road~ June 29, 2005 REVIEWED BY:-lJJ- MEETING DATE: . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . The Town of Tiburon currently owns six below market rate (BMR) units in the Point Tiburon Marsh development. The inventory consists of four one-bedroom and two two-bedroom units. The Town owned one-bedroom unit at 32 Marsh Road recently became vacant. The unit was offered to Town staff for rent, with no interest. The unit was also offered to the variousTiburon Peninsula public agencies, with no interest. Staff believes it is appropriate to offer this unit back to the Housing Authority for resale, This would reduce the total number of Town owned units to 5, or 25% of the below market rate units in the Marsh area, and create a more desirable blend of units owned by the Town, The Town purchased 32 Marsh Road in 2001 for $112,000, The Housing Authority has placed a current sales price of $127,000 for this unit. The proceeds from the sale of the unit would be deposited to the Town's General Low & Moderate Income Housing In-Lieu Fund, Recommendation It is recommended that the Town Council adopt the exhibit resolution authorizing the Town Manager to execute all documents necessary to sell the Town owned BMR unit at 32 Marsh Road Exhibit ,.-r' RESOLUTION NO. . A RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF TIBURON AUTHORIZING THE TOWN MANAGER TO EXECUTE DOCUMENTS RELATED TO THE SALE OF 32 MARSH ROAD, TIBURON, CA AND THE CONVEYANCE OF THE PROPERTY WHEREAS, on June 29, 2005, the Town Council of the Town of Tiburon authorized the Town Manager to negotiate a contract for the sale of Town owned property at 32 Marsh Road, Tiburon, CA, Assessor's Parcel No. 058-440-03; WHEREAS, state law provides that a deed conveying an interest in land shall not be accepted for recordation without the consent of the Town evidenced by its certificate or resolution of acceptance attached to pr printed on the deed or grand; and WHEREAS, close of escrow will require the Town to execute and record the Grant Deed to Purchaser and other documents relating to the transfer oftitle;; and NOW, THEREFORE, BE IT RESOLVED by the Town Council of the Town of Tiburon that the Town Manager is authorized to execute all documents necessary to accomplish the conveyance of 32 Marsh Road, Tiburon, CA, including, without limitation, the Grant Deed. . PASSED AND ADOPTED at a regular meeting of the Town Council of the Town ofTiburon on ,2005 by the following vote: AYES: NOES: ABSENT: MILES BERGER, MAYOR ATTEST: DIANE CRANE-IACOPI, TOWN CLERK . ..... ~ . Town of Tiburon STAFF REPORT AGENDA ITEM ~ TO: Mayor and Members of the Town Council Pat Echols, Director of Public Worksl Town Engineer ~ FROM: SUBJECT: Resolution Authorizing Execution of Cooperative Funding Agreement with Caltrans and County of Marin for Highway 101- East BlithedalelTiburon Boulevard Interchange Safety Improvements m MEETING DATE: June 29,2005 REVIEWED BY: ~ BACKGROUND & DISCUSSION For the past several years, Caltrans has been finalizing plans for the Highway 101- East BlithedalelTiburon Boulevard Interchange Off-Ramp Safety Project. The main component of the project is the construction of an additional dedicated exit laneloff- ramp from southbound Highway 101 to the East Blithedale Avenue/Tiburon Boulevard intersection. Caltrans has estimated the project construction costs to be . approximately $5.7 million. Both the County of Marin and the Town of Tiburon have committed funding for project construction, The County will contribute $800,000, The Town's proposed contribution is $100,000, The Tiburon General Plan Circulation Element proposes this freeway off-ramp widening project as a needed circulation improvement to accommodate new development and maintain acceptable levels of service at intersections within the Tiburon Planning Area, Furthermore, the Town has collected development fees from projects pursuant to Chapter 14B of the Municipal Code and Resolution No. 3162 for the funding of this circulation improvement in the Planning Area Mitigation Fund restricted reserve account. The next step is for the County of Marin and the Town to execute a cooperative funding agreement (Exhibit 1). The Town Council must adopt the attached resolution (Exhibit 2) authorizing execution of the agreement by the Town Manager, The final agreement has been reviewed by the Town Attorney and approved as to form, RECOMMENDATION It is recommended that the Town Council adopt the attached resolution authorizing the execution of the cooperative funding agreement with Caltrans and the County of Marin for the Highway 101-East Blithedale/Tiburon Boulevard Interchange Safety Improvements Project. EXHIBITS . 1, 2, Funding Agreement Draft Resolution 6/24/2005 1 of 1 ; . . . 04-Mrn-101 KP 9,3/10,0 (PM 5,8/6,2) East Blithedale Off Ramp 04227-2937U1 District Agreement No, 4-2024 CONTRIBUTION AGREEMENT THIS AGREEMENT, ENTERED INTO EFFECTIVE ON ,2005, is between the STATE OF CALIFORNIA, acting by and through its Department of Transportation, referred to herein as "STATE", and the COUNTY OF MARIN, a political subdivision of the State of California, referred to herein as "COUNTY", and the TOWN OF TIBURON, a body politic and a municipal corporation of the State of California, referred to herein as "TOWN", RECITALS 1. STATE, COUNTY and TOWN, pursuant to Streets and Highways Code section 130, are authorized to enter into a Cooperative Agreement for improvements to State highways in the County of Marin, 2, STATE, COUNTY and TOWN desire State highway improvements consisting of widening two (2) lanes at the southbound State Route 10 1 off-ramp to East Blithedale Avenue/Tiburon Boulevard in the County of Marin, referred to herein as "PROJECT", 3, COUNTY desires and has pledged an $800,000 contribution to STATE towards the cost of construction of PROJECT, ' 4, TOWN desires and has pledged a $100,000 contribution to STATE towards the cost of construction of PROJECT, 5, The parties hereto intend to define herein the terms and conditions under which PROJECT is to be constructed, financed, and maintained, SECTION I STATE AGREES: 1. To administer the construction contract for PROJECT, SECTION II COUNTY AGREES: 1. To deposit with STATE within twenty-five (25) days of receipt of billing therefor [which billing will be forwarded fifteen (15) days prior to STATE's bid advertising date of a construction contract for PROJECT], the amount of $800,000, which figure represents 1 District Agreement No, 4-2024 ~ the lump sum total amount of COUNTY's agreed to share of the construction cost for PROJECT, . 2, To maintain any improvements installed pursuant to this Agreement, which lie inside COUNTY's right of way, SECTION III TOWN AGREES: 1, To deposit with STATE within twenty-five (25) days of receipt of billing therefor [which billing will be forwarded fifteen (15) days prior to STATE's bid advertising date of a construction contract for PROJECT], the amount of $100,000, which figure represents the lump sum total amount of TOWN's agreed to share of the construction cost for PROJECT, SECTION IV IT IS MUTUALLY AGREED: 1, All obligations of STATE under the terms of this Agreement are subject to the appropriation of resources by the Legislature in the annual State Budget Act, and the allocation of resources by the California Transportation Commission, 2, Upon completion of all work under this Agreement, ownership and title to materials, equipment and appurtenances installed within STATE's right of way will automatically be vested in STATE and no further agreement will be necessary to transfer ownership to STATE, Any materials, equipment and appurtenances installed inside the COUNTY's right of way will automatically be vested in COUNTY, Any materials, equipment and appurtenances installed inside TOWN's right of way will automatically be vested in TOWN. No further agreement will be necessary to transfer ownership as hereinabove stated, . 3, Neither STATE nor any officer or employee thereof is responsible for any damage or liability occurring by reason of anything done or omitted to be done by COUNTY and TOWN under or in connection with any work, authority or jurisdiction delegated to COUNTY or TOWN under this Agreement, It is understood and agreed that, pursuant to Government Code section 895.4, COUNTY and TOWN shall fully defend, indemnify and save harmless STATE and all its officers and employees from all claims, suits or actions of every name, kind and description brought for or on account of injury (as defined in Government Code section 810,8) occurring by reason of anything done or omitted to be done by COUNTY or TOWN under or in connection with any work, authority or jurisdiction delegated to COUNTY or TOWN under this Agreement, 4, Neither COUNTY and TOWN nor any officer or employee thereof is responsible for any damage or liability occurring by reason of anything done or omitted to be done by STATE under or in connection with any work, authority or jurisdiction delegated to STATE under this Agreement, It is understood and agreed that, pursuant to Government Code section 895.4, STATE shall fully defend, indemnify and save harmless COUNTY and TOWN from all claims, suits or actions of every name, kind and description brought for or on account of injury (as defined in Government Code section 810,8) occurring by reason of anything done or omitted to be done by STATE under or . 2 . . . District Agreement No, 4-2024 in connection with any work, authority or jurisdiction delegated to STATE under this Agreement. 5, This Agreement shall terminate upon completion and acceptance of the construction contract for PROJECT by STATE and fInal disposition of COUNTY's and TOWN's required deposits as specifIed in Section II, Article 1 and Section III, Article 1 above, or on June 30,2009, whichever is earlier in time, 6, The parties hereto recognize and agree that separate counterpart signature pages may be used but that all such pages constitute one and the same Agreement, STATE OF CALIFORNIA Department of Transportation COUNTY OF MARIN WILL KEMPTON Director By: Deputy District Director By: President, Board of Supervisors Approved as to form and procedure: Attest: Clerk of the Board of Supervisors Attorney Department of Transportation Certified as to budgeting of funds: Approved as to form: District Budget Manager County Counsel Certified as to financial terms and conditions: Accounting Administrator 3 TOWN OF TIBURON By: Town Manager Attest: Town Clerk Approved as to form: Attorney District Agreement No, 4-2024 4 . . . . . . RESOLUTION NO. XX-2005 A RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF TIBURON AUTHORIZING THE TOWN MANAGER TO EXECUTE A CONTRIBUTION AGREEMENT WITH THE STATE OF CALIFORNIA DEPARTMENT OF TRANSPORTATION TO INITIATE CONSTRUCTION OF, AND COST SHARING AGREEMENT FOR, SAFETY IMPROVEMENTS TO THE U.S. HIGHWAY 101 SOUTHBOUND OFFRAMP TO EAST BLlTHEDALE AVENUEITIBURON BOULEVARD, AND APPROPRIATING FUNDS THEREFOR WHEREAS, the California Department of Transportation, County of Marin, City of Mill Valley and Town of Tiburon desire to improve safety and reduce accidents for southbound vehicles on U,S, Highway 101 exiting at East Blithedale Avenue/Tiburon Boulevard; and WHEREAS, the California Department of Transportation has prepared and approved a Project Study Report for the U,S, Highway 101 southbound off-ramp to East Blithedale AvenuelTiburon Boulevard safety improvements which establishes the estimated project cost; and WHEREAS, the Tiburon General Plan Circulation Element proposes this freeway off- ramp widening project as a needed circulation improvement to accommodate new development and maintain acceptable levels of service at intersections within the Tiburon Planning Area; and WHEREAS, the Town of Tiburon has collected development fees from projects pursuant to Chapter 14B of the Municipal Code and Resolution No. 3162 for the funding of this circulation improvement, said fees being placed in the Planning Area Mitigation Fund restricted reserve account; and WHEREAS, executing of this agreement and construction of the off-ramp improvements is consistent with the goals and policies of the Tiburon General Plan and with provisions of Chapter 14B of the Tiburon Municipal Code and Resolution No, 3162; and WHEREAS, the County of Marin and City of Mill Valley have adopted resolutions supporting the widening of the southbound off-ramp to improve safety; and WHEREAS, the Town agrees to share in the construction costs with a contribution amount not to exceed $100,000. NOW, THEREFORE BE IT RESOLVED, that the Town Council of the Town of Tiburon hereby appropriates the sum of $100,000 from the Planning Area Mitigation Fund restricted reserve account for said purpose, and authorizes the Town Manager to execute the Contribution Agreement. PASSED AND ADOPTED at a Town of Tiburon held on the day of AYES: NOES: ABSENT: ATTEST: Diane Crane lacopi, Town Clerk meeting of the Town Council of the , 2005, by the following vote: MILES BERGER, MAYOR . . . i . . . ;0 Town of Tiburon STAFF REPORT s- AGENDA ITEM . .. . . . . . . .. . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . KRISTIN KRASNOVE, ASSISTANT PLANNER 35 OLD LANDING ROAD; FILE #W05-02 REVIEW OF A WELL PERMIT APPLICATION FOR THE~ OIL G OF A WELL FOR THE PURPOSES OF IRRIGATION. JUNE 29, 2005 REVIEWED BY: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. .. TO: MAYOR AND MEMBERS OF THE TOWN COUNCIL FROM: SUBJECT: MEETING DATE: PROJECT DATA: OWNER! APPLICANT: WELL DRILLER: ADDRESS: ASSESSOR PARCEL NUMBER: FILE NUMBER: ZONING: GENERAL PLAN: FLOOD ZONE: DATE COMPLETE: GERDA KURCHER FISCH BROTHERS DRILLING 121 BARN ROAD 038-162-44 W05-02 RO-2 (SINGLE-FAMILY RESIDENTIAL OPEN) M (MEDIUM DENSITY RESIDENTIAL) C FEBRUARY 10, 2005 PROPOSAL: The applicant has submitted a request to drill a well on the vacant property at 35 Old Landing Road for the purposes of landscape irrigation, The applicant owns the adjacent property at 4478 Paradise Drive, and does not intend to develop the subject property at 35 Old Landing Road. The well would be located on the southeast corner of the property, No specifications for any well appurtenances, such as water storage containers, have been submitted at this time, The owner is required to obtain design review approval for any such appurtenances, ANALYSIS: In reviewing well permit applications, the Town must ensure that the proposal is in compliance with the requirements set Chapter 13F of the Municipal Code (water well construction and use). In accordance with Chapter 13F, staff has made the following conclusions: . ,The applicant has provided the necessary documentation to ensure that the contractor to perform the work has the appropriate credentials, and that the location of the proposed well will not affect the properties in the vicinity, Tiburon Town Council 6/29/05 Staff Report 10f 2 .. Town of Tiburon STAFF REPORT . Based on the submitted materials, it appears that the granting of the permit will not be detrimental to the public health, safety or welfare, nor injurious to other properties in the vicinity, Based on the above conclusions, the project is found to be in compliance with the Town's requirements in respect to the construction of irrigation wells, PRELIMINARY ENVIRONMENTAL DETERMINATION: Planning Division Staff has made a preliminary determination that this proposal would be exempt from the provisions of the California Environmental Quality Act (CEQA) as specified in Section 15303, RECOMMENDATION: It is recommended that the Town Council review this project with respect to Chapter 13F of the Municipal Code (water well construction and use) and determine that the project is exempt from the provisions of the California Environmental Quality Act (CEQA) as specified in Section 15303 . of the CEQA Guidelines, It is further recommended that the Town Council adopt the attached resolution of approval for the proposed project. ' EXHIBITS: 1, Draft Resolution 2, Plans for the project . Tiburon Town Council Staff Report 6/29/05 2of2 ';,. / ~O} . . . RESOLUTION -DRAFT A RESOLUTION OF THE TOWN COUNCil OF THE TOWN OF TIBURON APPROVING THE DRilLING OF A WEll FOR IRRIGATION PURPOSES ON A PROPERTY lOCATED AT 35 OLD LANDING ROAD ASSESSOR PARCEL NUMBER 038-162-44 WHEREAS, the Town Council of the Town of Tiburon does resolve as follows: Section 1. Findings. A. An application for drilling of an irrigation water well has been submitted by the property owner of 35 Old Landing Road. B. The Town Council has reviewed the application and determined that the project is consistent the requirements of Chapter 13F of the Municipal Code concerning water wells and is consistent with the Tiburon General Plan. C. The Town Council has determined that the project is categorically exempt from the requirements of CEQA per Section 15303(d) of the CEQA Guidelines, D. The Town Council finds that the project, as conditioned, will not be detrimental to the public health, safety, or general welfare nor injurious to other properties in the vicinity. E. The Town Council finds that the owner has provided a written report from a registered civil engineer stating that the water well is unlikely to produce harmful impacts on neighboring properties or result in subsidence, Section 2. Approval. NOW, THEREFORE, BE IT RESOLVED that the Town Council approves the application for an irrigation water well at 35 Old Landing Road subject to the following conditions: 1. The well shall meet all applicable well standards adopted by Chapter 7.28 of the Marin County Code, as maY' be amended from time to time, and any other regulations adopted by the County pursuant thereto. 2. The well shall meet all applicable requirements ofthe Marin Municipal Water District. 3, No well-related work shall commence until such time as a Well Permit Certificate has been issued by the Planning Director, Hours of well drilling and any associated construction work shall be limited to 7:00 A.M. to 5:00 P,M, Monday through Friday, and 9:30 A.M, to 4:00 P.M. on Saturday, Town Council Resolution-DRAFT - Well Permit at 35 Old Landing Road .. ; '\\\ 4. Any and all equipment and/or vehicles associated with the well construction shall not prevent or substantially impede vehicular passage on any street within the Town of Tiburon, . 5. Site Plan and Architectural Review approval shall be required for any structures associated with the well, such as water storage containers, which require such approval. 6, This approval may be suspended or revoked for cause, pursuant to Section 13F- 8 of the Tiburon Municipal Code. 7, This approval shall expire and become null and void six months after Council approval. One extension of up to six months may be granted by the Town Manager for good cause. , PASSED AND ADOPTED at a regular meeting of the Town Council of the Town of Tiburon on March 2, 2005, by the following vote: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: . MILES BERGER, MAYOR TOWN OF TIBURON ATTEST: DIANE L. 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Town of Tiburon STAFF REPORT I AGENDA ITEM -k TO: MAYOR BERGER AND MEMBERS OF THE TOWN COUNCIL FROM: TOWN CLERK DIANE CRANE IACOPI SUBJECT: MARIN COMMISSION ON AGING - REAPPOINTMENT OF ~N REPRESENTATIVE ALLAN BOREL JUNE 29, 2005 REVIEWED BY: MEETING DATE: BACKGROUND The three-year term of Tiburon representative to the Marin Commission on Aging, Allan Bortel, will expire on June 30,2005. Mr. Bortel has contacted the Town to express his interest in continuing to serve in this capacity, Pursuant to Resolution No. 3263 ("Appointments Procedure"), the Town Clerk posted a Notice' of Pending Vacancy for the position at Town Hall and the Belvedere-Tiburon Library, In addition, a notice was published in the Ark newspaper, While one telephone inquiry was received, no new applications were filed for the pending vacancy. RECOMMENDATION That the Town Council reappoint Mr. Bortel to the Marin Commission on Aging for another term. ATTACHMENTS · Letter from County Department of Health and Human Services/Division on Aging . E-mail from Allan Bortel t~ ,/~' / '7 r / /. , / ;- / " ,/ /7~tu/ ,I,,/~/~ d)A / / - >//~: c.~ / ..f Diane Crane lacopi Town Clerk 'i" ......~; '," .-., .--.... ......~.. DEPARTMENT OF HEALTH AND HUMAN SERVICES May 18, 2005 ij ~~~~u ~ ~ MAY 2 0 2005 ~) DIVISION OF AGI. 10 N, SAN PEDRO RD" STE, 1012 SAN RAFAEL, CA 94903 PHONE: (415) 499-7396 FAX: (415) 499-5055 www.cQ.marin.ca.us/aging Larry Meredith,Ph.D" Director Miles Berger Mayor Town of Tiburon 1505 Tiburon Boulevard Tiburon, CA 94920 TOWN CLERK TOWN OF TIBURON Dear Mr. Berger As you know, each of the 11 incorporated cities and towns in Marin County has an appointment to the County Commission on Aging, which also has ten seats appointed by the Board of Supervisors. The term of your appointee, Allan Bortel, is up as of June 2005, We would appreciate your City Council re-appointing or selecting another resident to sit on the Commission, In making appointments for this seat, the Council should be aware of State and Federal laws and regulations that require the following membership composition of advisory councils to Area Agencies on Aging: . A majority of persons 60 years of age or older; . Service providers and consumers; . Members who reflect the geographic, racial, economic, and social complexion of the planning and service area they represent. . The current composition of the Commission on Aging (23 members) includes 16 members over the age of 60, seven members under 60, and service providers and consumers. Enclosed is a Responsibility Statement, which describes the roles and responsibilities of our Commissioners. We would appreciate confirmation of your City's appointment at the earliest possible date, If you have any questions, please do not hesitate to call me, Sincerely, IJu.JL{i:u+so Nick Trunzo Interim Director Enclosure NT /sv / . cc: Diane Crane lacopi Town Clerk . Revised 5/91 . . RESPONSIBILITY STATEMENT MEMBER, COMMISSION ON AGING DEFINITION: Appointed position, by Board of Supervisors or local City Council, to serve as one of 2~ voluntary advisors to the Board of Supervisors 'onissuesaffectingthe elderly of Marin County. the Commission on Aging is a federally mandated advisory council to the Board of Supervisors, which serves as the policy-making board of the Area Agency on Aging within County government. The Commission on Aging is also designated by the State as the local long term care lead agency and project review body, and as the local Adult Day Health Care Planning Council. SKILL LEVEL AND FUNCTION: Appointed Commissioners are expected to have an active interest in and a willingness to become knowledgeable about the needs and concerns of Marin's elderly residents, whether living in their own homes or in institutions, and those caring for them in the community in which they live. According to the statement of purpose in the by-laws, the Commission shall: 1. Provide information about attitudes, needs, and opinions of the elderly to the Board of Supervisors and the Area Agency on Aging staff. 2. Advise on the development and implementation of the Annual Area Plan in conformity with State and Federal regulations. 3. Serve as a forum and a strong advocate; provide leadership for the elderly. 4. Hold public meetings on the Area Plan, on the needs and priorities of the elderly, and recommend programs to the Board (Board of Supervisors) for funding. 5. Advise the Area Agency on Aging Board on allocations of funds, and on legislation affecting policies pertinent to the elderly. . 6. Serve as a source of community education pertaining to the needs and programs for the aging. 7. Consult and maintain contact with special groups which have responsibilities related to the older American. REQUIREMENTS OF MEMBERSHIP: 1. Serve a three-year term. 2. Attend monthly meetings of the Commission which are held on weekdays, during daytime hours. No member may be absent without a valid reason for more than three consecutive meetings. 3. Be willing to abide by Roberts' Rules of Order. 4. Members who receive compensation from or have a fiduciary interest in any prograrfi funded by the Area Agency on Aging must abstain from voting on funding of that particular program. . 5. Serve on at least one standing committee or task force which may meet monthly or more often, depending on need. 6. Be willing to participate with staff in annual contract review and monitoring of projects to assure efficient services to Marin's elderly. 7. If an appointee is a City representative, a commitment must be made to report to the appointee's City Council on an annual basis regarding the activities of the Commission. wp:COA-RESP.STI . I rage 1 01 1 Diane Crane lacopi . From: allan bortel [inverness@earthlink,net] Sent: Thursday, June 23,20059:31 PM To: Diane Crane lacopi Subject: Re: Commission on Aging . . I guess that I only expressed an interest orally....,so you shall get a letter from me....or is this email sufficient? I have a lot to accomplish in the next three years on the Commission. thanks, allan At 02: 17 PM 6/23/2005, you wrote: Hi, Allan, I am scheduling your reappointment to the Commission on Aging per the letter from Interim Director Nick Trunzo, I received one telephone inquiry concerning the position but nobody actually applied, You are eligible for reappointment and are given first consideration, Because I just returned from vacation I cannot recall whether you sent me a letter or e-mail expressing your interest in reappointment. I know we discussed it but I would also need something in writing, ' Many thanks! Diane Crane lacopi Tiburon Town Clerk 06/24/2005 ALLAN G. BORTEL 8 Corte Palos Verdes Tiburon, CA 94920 fD) ~~~~W~ rm IJ1] J U N 2 7 2005 ill) TOWN CLERK TOWN OF TIBURON Dear Tiburon Town Council: I am seeking reappointment as Tiburon's representative on the Marin County Commission on Aging. Over the last three years I have had the opportunity to become knowledgeable about the needs of seniors in our increasingly older county. As you know, the Commission's role is advocacy and informational~ but it also officially recommends to the Board of Supervisors how some $1.2 million in Older Americans Act funds are spent for the needs of seniors, mostly those of low income, in Marin-for nutrition, legal aid, senior hotline and infovan, etc. In all, some 17 agencies receive these funds. For nearly two years I have headed the Commission's Housing and Transportation Committee. In this role I have testified on behalf of senior housing before the County Planning Commission and Board of Supervisors. In addition, my committee held hearings leading to the Marin Housing Authority's establishment of a "house sharing" program. There is much to do in the areas of both transportation (e.g there are no paratransit taxis based in Marin, but we are working toward that end) and affordable assisted living. In fact, the Planning Commission is now considering a zoning proposal for another Redwoods type facility at St. Vincent's, which we have been advocating. I have been asked to continue to chair the Housing and Transportation Committee by the new 2-year chair of the Commission and look forward to serving in that capacity if I am reappointed by the Council. s~~ Allan Bortel TOWN COUNCIL J~'EOMAIL' G MEETING DATE (p - ~9-~.r- .- . Town of Tiburon STAFF REPORT AGENDAITEM ~ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . TO: MAYOR AND MEMBERS OF THE TOWN COUNCIL FROM: HEIDI BIGALL, DIRECTOR OF ADMINISTRATIVE SERVICES BRIAN M. STOTT, ADMINISTRATIVE & FINANCIAL ANALYST SUBJECT: ADOPTION OF 2005-2006 MUNICIPAL BUDGET PLAN AND ~~~~ ~A~E: ~~;;~~~:~::~~~~~~N~ . . . . . . . . . . . ~'. , 2005-06 MUNICIPAL BUDGET PLAN At its meeting on June 15, 2005, the Town Council reviewed the Proposed Fiscal Year 2005-2006 Municipal Budget Plan and directed staff to bring back the resolutions adopting the budget with the recommended changes. The operating budget is balanced as follows: . Projected Revenues Projected Expenses $7,706,613 $7.502.894 $ 203,719 Operating Surplus The Total Budget for the Town including all funds (operating, capital improvement, debt service and the Redevelopment Agency) is $21,366,176. Most importantly, the 2005-06 Municipal Budget is balanced. Once adopted, the final document will be printed and circulated to all interested parties, Recommended Changes from Proposed Budget Compensation Chanaes from the Proposed Budget The Town Council authorized several changes to the budget in the area of salaries and benefits. Remaining consistent with the Town's Compensation Policy, the Town desires to compensate employees competitively for similar positions in the local market. The Town's Compensation Policy provides pay adjustments for these employees based on the following three factors: . 1. Increase in the Cost of Living (COLA); 2. Job Performance (merit); and 3. Adjustment in the market for a position (equity). Town of Tiburon STAFF REPORT AGENDA ITEM . These three factors, as well as the Town's ability to increase compensation were taken into consideration in the recommended 5% compensation adjustments, which will be used to trigger certain compensation adjustments on a case by case basis. The 5% increase has been applied to each Management and Mid-Management employee's line item in the budget, but this does not guarantee an actual compensation adjustment for employees but is consistent with the recently adopted Merit Pay Program that will be fully implemented in FY 2005-06. COLA The Town typically uses the Consumer Price Index, SF-Bay AreaAII Urban Wage Earners from April to April for increases to the two Town employee represented labor unions, the Tiburon Police Officer's Association and the Marin Association of Public Employees. For the period of April 2004 to April 2005, the increase was 2.4% and although it will not be the driving factor, it will certainly be taken into consideration with any compensation adjustments for Management and Mid-Management employees. . Merit The Town Council recently adopted a formal Merit Pay Program for Management and Mid-management employees. The Merit Pay Program will be fully implemented during the next employee evaluation period in July and this will trigger compensation adjustments at the end of the 2005-06 Fiscal Year. As was stated above, the proposed budget reflects an increase in each Management and Mid-management employee's line item in the budget which will be available for meritorious compensation adjustments, Merit is defined in , the Town's Merit Pay Program as what is valued by the organization; it is reflected by excellence or superior quality of work or service provided. Equity In addition, the Town recently adopted an Administrative Policy for Establishing and Maintaining Management / Mid-Management Salary Ranges. This new policy has created benchmark positions and linked other positions using career ladders, which will guide the setting of salary ranges in the future. The Town conducted a salary survey in June of this year and any position's salary ranges that were found to be below the average were adjusted to bring the salary ranges up to the average, As a reminder, salary . Municipal Budget Plan June 29, 2005 2of6 ; Town of Tiburon . STAFF REPORT AGENDA ITEM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ranges are ranges within which the Town has the ability to compensate employees but an increase to any salary range does not necessarily trigger an actual salary increase for the employee, In one case, the employee's new salary range will trigger an automatic $41 compensation adjustment per month due to the fact that the employee is currently near the bottom of the pay range, However, it should be 'noted that the affected employee would have received at least this increase based on performance alone, Cafeteria Benefits Since Health Insurance rates do not adjust until January 1, 2006, the Town Council also agreed that increases to the Cafeteria Benefit amount that each employee receives be effective January 1, 2006. Effective January 1,2006, Management and Mid-management unrepresented employees will receive an additional $50 per month towards cafeteria benefits. Holiday Schedule . During the past three years, the Town Council has granted all non-patrol police personn~1 an extended period of time off during the Christmas and New Year's holiday period, Town Hall and the Corporation Yard would be closed from December 23, 2005 through January 2, 2006. As a reminder, employees will be required to take a 3-day furlough in between the four holidays observed for Christmas Eve, Christmas, New Year's Eve and New Year's Day. However, employees will not be required to suffer compensation loss, The observance of Veteran's Day will be moved from November 11, 2005 to December 27, 2005, the Town will provide an additional paid day off on December 28, 2005 and each employee will be required to use a personal vacation day on December 29,2005. The proposed schedule is reflected below, Municipal BUdget Plan June 29, 2005 3of6 ~ Town of Tiburon STAFF REPORT AGENDA ITEM . Capital Changes to the Proposed Budget There are also two capital improvement projects totaling an increase of $110,800 which have been added to the proposed budget since the introduction of the Proposed Fiscal Year 2005-06 Budget. The Fiscal Year 2005-06 CIP Budget now totals $12,202,727. The Town was recently notified that we were awarded a $9,559 MTC P-TAP Grant to perform an updated pavement management program condition assessment with a total local match of $1 ,241 required. The CIP budget reflects an increase of $10,800 for the project with the $1,241 required local match being funded from the Town's Street Impact Fund. The CIP Budget also reflects the addition of $100,000 in Planning Area Mitigation Funds for the Town's contribution to the Highway 101 I East Blithedale Off ramp. A funding agreement will be brought before the Council to authorize the funding in the near future, but will be earmarked in the budget in anticipation of this. Attached Budget and Compensation Resolutions . The attached resolution (Exhibit 1) reflects the Final Budget for Fiscal Year 2005-06, Exhibit 2 and Exhibit 3 memorialize these compensation changes for Management and Mid-managementlNon-represented employees respectively. FY 2005-06 APPROPRIATION LIMIT Proposition 4, approved by California voters in November 1979, established and defined annual revenue appropriation limits on all government entities. Proposition 4 became effective in Fiscal Year 1980-81; however the . calculations to determine the annual limit are carried from a Fiscal Year 1978- 79 base, Proposition 4 was modified in 1990 with the passage of Proposition 111, which slightly changes the annual adjustment factors, further identification of the types of expenditures which are excluded from the limit, and provisions for the exclusion of emergency expenditures from the limit. Implementation legislation provides that the Town Council shall, at a regularly scheduled meeting, establish by resolution the amount of appropriation subject to limitation. The State is to be provided with informational forms with the filing of the Annual Statement of Financial Transactions no later than ninety days after the start of the fiscal year. . Municipal Budget Plan June 29, 2005 4of6 .. Town of Tiburon . STAFF REPORT AGENDA ITEM The appropriations limit is the calculated dollar amount which limits the Town's ability to receive and expend proceeds of taxes. Such revenues include: Property Taxes, ERAF rebates, Sales Taxes, Real Property Transfer Taxes, Transient Occupancy Taxes, Business License Taxes, State Motor Vehicle Fees, Off-Highway Taxes, certain rental income, other revenues and rebates (excluding Redevelopment Agency Fees), a share of Investment Earnings, and transfer of funds from other funds into reserves of the General Fund. The limit is calculated by adjusting the previously adopted limit by factors which include: (1) the State of California Per Capita Income Growth, and (2) the Town's Population Grown. Both these figures are provided by the State , Department of Finance. The limit is further adjusted if cities bear the costs of legislated fees for the transfer of responsibility. The County, through SB 2335, established fees for the collection of property taxes and for booking prisoners. The calculation for the Town of Tiburon's Appropriations Limitation for FY . ' 2005-06 is illustrated on the following page: Gann Limit Calculation - FY 2005-06 Amount 1, Previously established limit, July 1, 2003 2, Adjustment Factors Per capital personal income Population growth $5,314,106 5,26% - ,0037% 3, Multiplier, for adjustment to limit 4, Subtotal new limit 5, Add: legislated pass-through fees County property tax collection County Booking Fees $37,000 15,000 6, Revised limit, July 1, 2004 $5,645,421 . Municipal Budget Plan June 29, 2005 5 of 6 Town of Tiburon STAFF REPORT AGENDA ITEM . Once the Appropriations Limitation has been determined for the upcoming fiscal year, staff must then determine the amount of revenues that Town expects to receive that are subject to the limit. The table below illustrates revenues that are subject to the Gann Limit. 2005-06 Appropriations Subject to Gann Limit Amount A. Proceeds of Taxes $4,880,381 8, Exclusions -0- C, Appropriations subjept to Limitation $4,880,381 D, Current Year Limit (from above) $5,645,421 E, Over (Under) Gann Limit ($ 765,040) F, Percent Over Limit -15,68% . Any additional revenues received during FY 2005-06 that are considered "proceeds of taxes" will reduce the amount the Town is currently under the Gann Limit. Recommendation It is recommended that the Town Council hold a public hearing and after due consideration, approve the attached resolutions: 1, Adopting the Municipal Budget Plan for FY 2005-2006; 2, Adopting a Revised Management Recognition and Incentive Compensation Program; 3, Adopting a Revised Mid-Management, Professional and Confidential Employee Recognition and Incentive Compensation Program; and 4. Establishing the Town's Appropriation Limit for FY 2005-2006. Exhibits . Municipal Budget Plan June 29, 2005 6of6 . . . EXHIBIT NO...l- RESOLUTION NO. A RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF TIBURON ADOPTING A MUNICIPAL BUOGET PLAN FOR THE TOWN OF TIBURON AND THE TIBURON REDEVELOPMENT AGENCY FOR THE FISCAL YEAR ENDING JUNE 30. 2005 WHEREAS, the Town Council conducted a Public Hearing concerning the proposed Municipal Budget Plan for fiscal year 2006 at it regularly scheduled meeting of Wednesday, lime 15,2005 and on Wednesday June 29, 2005; and ' WHEREAS, the Town Council now finds that the proposed Municipal Budget Plan, as estimated, provides for all appropriate municipal purposes and services with current fund(s) and resources and estimated revenues for fiscal year 2006; and NOW, THEREFORE, BE IT RESOLVED; that the proposed Municipal Budget Plan appropriates revenues and other sources of funds for expenditures associated with operations, capital outlays, capital improvements, debt services, and the Redevelopment Agency in the following amounts: Section 1. Operating Budget Program - The proposed Plan has sufficient resources to finance the planned expenditures: $7,706,613 7,502,894 $ 203,719 Section 1 a. Operation Revenue Appropriation - Estimated Revenues and Sources of Funds for fiscal year 2006 GENERAL FUND Propertv Taxes $2,317,000 Other Taxes 1,116,500 Franchise Fees 380,000 Fines & Forfeitures 222,500 Investment Earnings 150,500 Intergovernmental & Agency 643,600 Licenses & Permits 892,250 Charges for Services 313,200 Other Revenues 196,500 Subtotal General Fund Revenues $6,232,050 OTHER FUNDING SOURCES Employee Compensated Leave $ 41,500 3,850 51,300 945,000 67,975 242,938 100,000 22,000 Total Revenues & Sources $7706613 Section 1 b, General Fund Expenditures Appropriation - Planned Department expenditures for fiscal year 2006: AMOUNT ADMINISTRATION Town Attorney $ 208,045 Town Administration , 1,102,026 Administration Building 48,500 Non-Departmental , 1,000,150 Legislative 73,100 COMMUNITY DEVELOPMENT Planning & Design Review $ 478,747 Building Inspection 566,809 Advance Planning 70,355 POLICE Police Department $2,532,510 Police Building 59,900 PUBLIC WORKS Administration $ 427,604 Streets Maintenance 450,773 Parks Maintenance 315,975 Street & Signal Light Maintenance 46,000 Corporation Yard 100,400 Cypress Hollow 22,000 Total Expenditures: $7.502.894 . . . . Section 2. Capital Improvement Program - Sources of Funding for Planned Streets, Drainage and Community Development Improvements in fiscal year 2006: . SOURCES PROJECTS L vford Cove Assessment District $4,223,936 Del Mar Assessment District 4,720,000 Infrastructure & Facility Fund 223,000 Circulation System Improvement Fund 75,000 Gas Tax Fund 230,000 General Fund Streets & Drainage Reserve 335,000 Marsh Restoration Fund 45,000 Drainage Impact Fund 50,000 Parks In-Lieu Fund 56,500 Plavground Improvement Fund 78,000 Public Art Fund 250,000 Street Impact Fund 646,239 Hazmat Mitigation Grant 50,000 MTC Regional Bicycle Pedestrian Grant 520,291 Safe Routes to School Grant 175,000 General Fund 158,200 PW Corporation Yard Improvement Fund 100,000 Developer Contributions 5,000 CIWMB Grant 12,000 Per Capita/RZH Grants 90,000 Planning Area Mitigation Fund 100,000 MTC P- T AP Grant 9,561 Traffic Congestion Relief Fund 50,000 . STREETS Resurfacing $ 675,000 Engineering & Administration 260,800 Traffic Safety Improvements 860,291 Subtotal Streets Improvements $1,796,091 DRAINAGE CCTV Equipment Condition Assessment $ 45,000 Culvert Rehabilitation/Replacement 100,000 Paradise Drive @ Pt. Tiburon Flap Gate Repair 20,000 Railroad Marsh Improvements 45,000 Shoreline Park Outfall 30,000 Contingency Repairs 10,000 Catch Basin/Inlet Repairs 20,000 Construction Inspection 40,000 Preparation of Plans / Specification 30,000 Subtotal Drainage Improvements $ 340,000 . COMMUNITY DEVELOPMENT Lyford Cove Utility Undergrounding $ 4,223,936 Del Mar Valley Utility Undergrounding 4,720,000 Sidewalk & Curb Ramps (ADA Compliance) 20,000 Blackie's Pasture Pedestrian Bridge Repair 3,000 South of Knoll Swing Set Replacement 3,000 South of Knoll Tot Lot Renovation 100,000 Fountain Plaza Public Art Proiect 270,000 MUP Improvements (ii2 A venida Miraflores 100,000 MUP Concept Plan Development 2,500 Elephant Rock Pier Rail Foundation 20,000 ADA Transition Plan 25,000 Replace Tiburon Blvd, Street Light Shades 35,000 Public Works Corporation Yard Master Plan 100,000 Rehabilitate Ferry Plaza Wood Cap Rails 5,000 Install Pet Waste Bag Dispensers in Town Parks 7,500 Install Tr~e Guards on Main Street 1,200 Install Permanent Restroom (ii2 South of Knoll 78,000 Bus Shelter on Tiburon Blvd (ii2 Ned's Way 6,500 Bench Replacement (ii2 Shoreline Park 18,000 Police Building Improvements 30,000 Town Hall Exterior Painting 50,000 Install Solar Panels on Town Hall 143,000 Zelinsky Landing Sign 5,000 MUP Enhancements with MMWD Proiect 50,000 Gilmartin! Atkinson Fire Road Repairs 50,000 Subtotal Community Development Projects $10,066,636 Total Capital Improvements $12,202,727 . . . . . . Section 3. Debt Service Program - Planned Debt Service and related expenses for special assessment, community facilities districts, and general obligation bond issues of the Town are as previously planned: BOND ISSUE AMOUNT Gilmartin Drive Refunding District $ 209,010 Hillhaven Undergrounding Assessment District 11,200 Linda Vista Undergrounding District 8,250 Main Street Assessment District 39,600 Pt. Tiburon Community Facilities District 128,210 Stewart Drive Assessment District 110,200 Tiburon Public Facilities Financing Authority 251,925 Via Capistrano Assessment District 18,260 Lyford Cove Assessment District 282,900 Del Mar Valley Assessment District 393,200 , Total Debt Service $1,452,755 Section 4. Redevelopment Agency Budget Plan - The following tables provide overview information for t~e general increment and Housing Set-Aside Funds of the Redevelopment Agency in fiscal year 2006. Redevelopment General Increment Fund: AMOUNT Revenues & Sources $ 4,000 Expenditures 4,500 Total Operating Net ($ 500) Redevelopment Agency Housing Set-Aside Fund: AMOUNT Revenues & Sources $ 12,500 Expenditures 5,500 Total Operating Net $ 7,000 IT IS FURTHER RESOLVED, that the Town Manager may make adjustments and activities within the budget provided that no increase or diminishment in salaries result other than that provided by the Town's Personnel System and Master Salary Program, or as authorized by the Town Council, and provided that no expenditure or encumbrance contingent on contract agreement, or other engagement requiring approval ofthe Town Council shall be made until such contract is first approved by the Town Council. . PASSED AND ADOPTED at a regular meeting of the Town Council of the Town ofTiburon on ,2005, by the following vote: AYES: NOES: ABSENT: COUNCILMEMBERS: COUNCILMEMBERS: COUNCILMEMBERS: MILES BERGER, MAYOR ATTEST: DIANE CRANE-IACOPI, TOWN CLERK . . . . . EXHIBIT NO. 2. RESOLUTION NO. A RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF TIBURON REPEALING RESOLUTION NO. 29-2004 AND ADOPTING AN AMENDED MANAGEMENT RECOGNITION AND INCENTIVE COMPENSATION PROGRAM WHEREAS, in January 1979, the Town Council established and adopted a Management Recognition and Incentive Compensation Program, in order to promote the development of a strong, more effective management team and a means of recognizing outstanding man;lgement performance in all public service areas; and WHEREAS, the Management Recognition and Incentive Compensation program enhances the professional growth, motivation, and loyalty of management employees and promotes a consistently higher level of service to the public; and WHEREAS, the Town Council has updated and amended the Management Recognition and Incentive Compensation Program on several occasions, most recently in 2004 by the adoption of Resolution No. 29-2004; and WHERAS, the Town of Tiburon management employees are defined to mean the following positions: Town Manager Town Attorney Chief of Police Director of Administrative Services Director of Community Development Director of Public Works/Town Engineer NOW, THEREFORE, BE IT RESOLVED that the Town Council ofthe Town of Tiburon does hereby repeal Resolution No. 29-2004 and all predecessor versions of the Management Recognition and Incentive Compensation Program and adopts the following amended Management Recognition and Incentive Compensation Program: SECTION 1. SALARIES Effective July 1, 2005 salary ranges for management positions shall be: Town Attorney Chief of Police Director of Administrative Services Director of Community Development Director of Public Works/Town Engineer $8,447 - $10,559 $8,351 - $10,439 $6,830 - $8,538 $6,901 - $8,626 $7,482 - $9,352 Page 1 \ SECTION 2, SALARY ADJUSTMENTS The Town Manager shall submit annually to the Town Council recommended salary . ranges for management employees, These ranges will be based upon the Compensation Policy adopted by the Town Council. Movement through the salary ranges will be based ,upon merit following a comprehensive written performance evaluation by the Town Manager. SECTION 3, BENEFITS AND INSURANCE Effective January 1, 2006, the Town shall contribute $1,000 per month towards a management employee's fringe benefit coverage. If the full sum specified is exceeded for group insurance of a given employee, then that employee shall pay the balance of the monthly cost via a payroll deduction from the first two payrolls ofthe month. If the full sum specified is not used for the group insurance cost of a given employee, then the employee shall have the option to have that amount deposited into one ofthe Town's Deferred Compensation Plans in the employee's name or for the purchase of Additional Retirement Service Credit through CaIPERS, so long as the option continues to be provided by Ca1PERS. Retirement - For Miscellaneous Members of the Public Employee's Retirement System, the Town of Tiburon shall provide management employees the PERS 2% @ 55 retirement benefits, with highest single year calculation and service credit for unused sick leave. For Local Safety Members ofthe Public Employee's Retirement System the Town shall provided management employees the PERS 3% @ 55 retirement benefit, average three highest years calculation, and service credit for unused sick leave, The Town shall contribute on behalf of management employees the full employer and employee retirement contributions, , . Medical Insurance - The Town of Tiburon offers management employees and their dependents medical/hospital insurance coverage. A qualified employee may choose from the plans offered through the Public Employees Retirement System Health Benefits Division for medical/hospital insurance coverage, Such insurance is mandatory for covered employees unless they can demonstrate compliance with other coverage, Dental Insurance - The Town ofTiburon offers management employees and their dependents a dental plan. Such insurance is mandatory for all qualified employees unless they can demonstrate compliance with other coverage, Life Insurance - The Town ofTiburon offers management employees a life insurance policy equal to one year's salary, not to exceed $95,000. Such insurance is mandatory for all full-time employees, If the mandatory amount is not exceeded, the Town of Tiburon offers management employees additional life insurance up to a combined total of no more than $95,000. Participation is optional. Disability Insurance - The Town of Tiburon offers management employees long term disability insurance. Such insurance is optional, except for the position of Chief of Police. . Page 2 . Long Term Care - The Town ofTiburon offers management employee a long-term care policy. Participation is optional. Deferred Compensation Plan - The Town ofTiburon offers a deferred compensation plan to management employees. Such monies deposited would become tax-deferred and would be subject to income taxation in the year they are withdrawn from the deferred compensation plan. Participation is optional. IRS Section 125 Plan - The Town ofTiburon offers management employees the ability to participate in its IRS Section 125 Plan. Participation is optional. SECTION 4, VACATION LEAVE In recognition of the fact that many top management personnel are recruited from outside the Town, that the average tenure for those management personnel is substantially more than that of non-management personnel, and that at least three years prior experience is required, the following vacation leave policy for management personnel shall be implemented: Management employees shall accumulate vacation leave in accordance with the following vacation time entitlement: Service Work Days . 0-5 Years 15 Days 6-15 Years 20 Days 16+ Years 25 Days . Upon termination of a management employee's service with the Town, such employee shall be paid a lump sum equivalent to his/her accrued vacation leave. Maximum accumulation of vacation leave is 40 workdays. SECTION 5. VACATION LEAVE CONVERSION After one year's service with the Town, Management employees who use at least 10 working days of vacation leave, may convert into cash payment up to 50% of the total number of vacation hours taken in a calendar year, not to exceed 10 working days. Vacation leave conversion will be granted during the month of December each calendar year. SECTION 6. SICK LEAVE Management employees shall be entitled to accrue one working day of sick leave with pay for each month or major fraction thereof. Sick leave may be accrued by management employees without a maximum limitation. Page 3 SECTION 7, SICK LEAVE PAY OFF Management employees hired prior to July 1, 2001, or if their employment contract states differently, may receive cash equivalent compensation of 50% of their accrued sick leave, up to a total of 60 days, if the following conditions are met: . a, The employee files for a service retirement from the Town, or b. The employee voluntarily separates from the Town and has at least 15 years of service with the Town. For management employees hired after July 1,2001, may accrue unlimited sick leave with no' option for "cashback" benefits. SECTION 8. HOLIDAYS The Town agrees to provide management employees the following holidays: New Year's Day Martin Luther King Day President's Day Memorial Day Independence Day Labor Day Veterans Day Thanksgiving Day January 1 Third Monday in January Third Monday in February Last Monday in May July 4 First Monday in September December 27 Fourth Thursday in November Friday after Thanksgiving December 24 December 25 December 31 ' . Christmas Eve Christmas Day New Year's Eve When a holiday falls on a Saturday, the preceding Friday shall be observed. However, if a holiday falls on a Saturday and the preceding Friday is also a holiday, the Town Manager may designate the preceding Thursday or following Monday to observe the holiday, When a holiday falls on Sunday, the following Monday shall be observed. However, when a holiday falls on a Sunday and the following Monday is also a holiday, the Town Manager may designate the preceding Friday or following Tuesday to observe the holiday. .For management employees who work an alternative work schedule and a \ holiday falls on his/her regular day off, he/she shall select either the preceding or following regular working day off. Effected employees shall provide the Town Manager with at least one week's notice as to which day they will observe as a holiday. SECTION 9. FURLOUGH All represented employees will be required to take a 3-dayfurlough. The days furloughed will be December 28 and December 29, 2005. Tiburon Town Hall will be closed from December 23,2005 through January 2, 2006. . Page 4 . . . However, employees may not suffer compensation loss. The Town will provide a one- time paid day off for the December 28, 2005 day and the employee will be required to take a vacation day for the December 29,2005 furloughed day. Proposed Schedule: Friday, December 23,2005 Monday, December 26, 2005 Tuesday, December 27,2005 Wednesday, December 28,2005 Thursday, December 29,2005 Friday, December 30, 2005 Monday, January 2, 2005 SECTION 1 O. ADMINISTRATIVE LEAVE Christmas Eve Holiday Christmas Holiday Veterans Day Observance Furlough Day #1 (additional day off) Furlough Day #2 (vacation day) New Years Eve Holiday New Years Holiday In recognition ofthe long hours required to perform at the management level, including attendance at numerous meetings outside normal working hours, the following Administrative Leave policy shall be implemented: Management employee may receive up to ten days administrative leave annually, to be awarded at the discretion of the Town Manager. Administrative Leave shall be taken in one-day increments. SECTION 11. DINNER ALLOWANCE All management employees who live more than 10 miles from Town and who are required to attend night meetings or work after office hours beyond 7:00 P.M. may be reimbursed in an amount not to exceed $20.00 for the purchase of dinner for that night. This allowance applies to management employees who reside outside a ten-mile radium ofthe Town. Employee reimbursement is subject to the approval ofthe Town Manager and must be accompanied by a restaurant receipt, which shall include the amount, date, meeting or purpose, and the employee's name. SECTION 12. TERMINATION ALLOWANCE In order to foster job security within a professional climate, management employees will be entitled to severance pay when they are terminated from Town service. However; such employee must be in the employ of the Town for at least three (3) years, and such termination is not for cause or for reasons listed in Government Code Section 19572, the Town's Personnel Rules & Regulations, Section 6, or any employee who voluntarily resigns from Town Service for personal reasons. Page 5 1l.nless otherwise noted in an Employment Agreement, Management employees shall be covered by the following termination allowance schedule: This severance pay is in addition to any accrued vacation leave, unused at the time of termination. SECTION 13. VEHICLE USAGE/ALLOWANCE Management employees, to a far greater extent that other Town employees, are required to travel throughout the Town, County, and Bay Area to fulfill their job requirements. This travel is frequently required outside of normal working hours. In recognition of this employment requirement, the Town shall provide either the use of a Town vehicle or an automobile allowance, as provided in the Town budget. Use of a Town vehicle shall be in accordance with the Town's Administrative Policies and Procedures and is not intended for private use. SECTION 14. TUITION REIMBURSEMENT In order to promote continued development of skills, knowledge, and abilities among . management employees, the Town ofTiburon shall reimbursement the costs of tuition, books and fees at the rate of the California State University system. Employees must receive prior approval of the Town Manager and submit certified transcripts with the evidence of a grade of "C" or better from an accredited college or university and submit bona fide receipts to qualify for tuition reimbursement. SECTION 15. PROFESSIONAL MEMBERSHIP FEES Most management personnel are expected to maintain membership in appropriate professional organizations. These memberships serve to acquaint the Town with current programs and procedures in these professional areas by means of publications and specific activities, The Town will include the cost of these membership fees in the respective departmental budgets. SECTION 16. RETIRED EMPLOYEE'S MEDICAL ALLOWANCE The Town ofTiburon will make contributions toward a retired employee's medical insurance plan based upon the following conditions: a, Employee must retire directly from employment with the Town of Tiburon and apply to PERS for retirement benefits. . Page 6 . . . b. The retiree's medical insurance allowance is fixed and capped at the Kaiser single rate that is in effect at the time of the employee's retirement. c, The Town's contributions rate is based on the following formula: Percent of Kaiser Single Rate Years of Consecutive Service to Town 50% 75% 100% 15 Years 20 Years 25 Years Such coverage is not extended to employee's spouse or other dependents, NOW, THEREFORE, BE IT-FURTHER RESOLVED that the provisions ofthis resolution shall supersede any other previous rules and resolutions of the Town of Tiburon which may be in conflict herewith. PASSED AND ADOPTED at a regular meeting ofthe TownCouncil of the Town of Tiburon on , 2005, by the following vote: ATTEST: AYES: NOES: ABSENT: COUNCILMEMBERS: COUNCILMEMBERS: COUNCILMEMBERS: MILES BERGER Mayor DIANE CRANE-IACOPI Town Clerk Page 7 EXHIBIT NO. ., RESOLUTION NO, A RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF TIBURON REPEALING RESOLUTION NO, 30-2004 AND ADOPTING AN AMENDED MID-MANAGEMENT, PROFESSIONAL & CONFIDENTIAL EMPLOYEES RECOGNITION AND INCENTIVE COMPENSATION PROGRAM . WHEREAS, in January 2002, the Town Council established and adopted a Mid- management Recognition and Incentive Compensation Program in order to attract and retain professional, competent aiJ.d qualified employees to carry out the Town's public service mission, and WHEREAS, such a program enhances the professional growth, motivation, and loyalty of mid-management, professional and confidential employees and promotes a consistently higher level of service to the public, and WHEREAS, the Town Council has updated and amended the Mid-management Recognition and Incentive Compensation Program most recently in 2004 by the adoption of Resolution No. 30-2004; and WHERAS, the Town of Tiburon mid-management, supervisory and confidential employees are defined to include the following positions: Administrative & Financial Analyst Assistant Superintendent of Public Works Associate Planner Deputy Director of Public Works Police Captain Planning Manager Records Management Coordinator Advance Planner Assistant Planner Building Official Information Technology Coordinator Police Secretary Project Coordinator Town Clerk . NOW, THEREFORE, BE IT RESOLVED that the Town Council of the Town of Tiburon does hereby repeal Resolution No. 30-2004 and all predecessor versions of the Mid- Management, Profession & Confidential Employees Recognition and Incentive Compensation Program and adopts the following amended Mid-Management, Profession & Confidential Employees Recognition and Incentive Compensation Program: SECTION 1. SALARIES Effective July 1, 2005 salary ranges for qualified positions shall be: Administrative & Financial Analyst Advance Planner Asst. Supt. of Public Works Assistant Planner Associate Planner $4,440 - $5,550 $4,984 - $6,229 $4,785 - $5,981 $3,662 - $4,578 $4,070 - $5,087 . Page 1 . . . Building Official Deputy Director of Public Works Information Technology Coordinator Police Captain Police Secretary Planning Manager Project Coordinator Records Management Coordinator Town Clerk $5,882 - $7,353 $5,629 - $7,037 $5,123 - $6,404 $6,681 - $8,351 $3,617 - $4,521 $4,984 - $6,229 $4,489 - $5,611 $3,778 - $4,722 $4,197 - $5,247 SECTION 2. SALARY ADJUSTMENTS The Town Manager shall submit annually to the Town Council recommended salary ranges for mid-management, professional and confidential employees. These ranges will be based upon the Compensation Policy adopted by the Town Council. Movement through the salary ranges will be based upon merit following a comprehensive written performance evaluation by the employee's supervisor. SECTION 3. BENEFITS AND INSURANCES Effective January 1, 2006, the Town shall contribute $950 per month towards a mid- management employee's fringe benefit coverage. If the full sum specified is exceeded for group insurance of a given employee, then that employee shall pay the balance of the monthly cost via a payroll deduction from the first two payrolls ofthe month. Ifthe full sum specified is not used for the group insurance cost of a given employee, then the employee shall have the option to have that amount deposited into one ofthe Town's Deferred Compensation Plans in the employee's name or for the purchase of Additional Retirement Service Credit through CaIPERS, so long as the option continues to be provided by CaIPERS. Retirement - For Miscellaneous Members of the Public Employee's Retirement System, the Town ofTiburon shall provide PERS 2% @ 55 retirement benefits, with highest single year calculation and service credit for unused sick leave. For Local Safety Members ofthe Public Employee's Retirement System the Town shall provided 3% @ 55 retirement benefit, average three highest years calculation, and service credit for unused sick leave. The Town shall contribute the full employee employer retirement contributions. Medical Insurance - The Town ofTiburon offers its employees and their dependents medical/hospital insurance coverage. A qualified employee may choose from the plans offered through the Public Employees Retirement System Health Benefits Division for medica1/hospital insurance coverage. Such insurance is mandatory for covered employees unless they can demonstrate compliance with other coverage, Page 2 Dental Insurance - The Town of Tiburon offers qualified employees and their dependents 'a dental plan. Such insurance is mandatory for all qualified employees unless they can demonstrate compliance with other coverage, . Life Insurance - The Town of Tiburon offers qualified employees a $25,000 life insurance policy. Such insurance is mandatory for all full-time employees. The Town of Tiburon offers qualified employees additional life insurance above the mandatory $25,000 policy, up to a combined total of no more than $95,000. Participation is optional. Disability Insurance - The Town ofTiburon offers qualified employees long term disability insurance. Such insurance is optional, except for the position of Lieutenant. Long Term Care - The Town ofTiburon offers covered employee a long-term care policy. Participation is optional. Deferred Compensation Plan - The Town ofTiburon offers a deferred compensation plan to qualified employees. Such monies deposited would become tax-deferred and would be subject to income taxation in the year they are withdrawn from the deferred compensation plan. Participation is optional. IRS Section 125 Plan - The Town of Tiburon offers covered employees the ability to participate in its IRS Section 125 Plan. Participation is optional. SECTION 4, VACATION LEAVE . Mid-management, professional and confidential employees shall accumulate vacation time in accordance with the following vacation entitlement schedule: Service Work Days 0-5 Years 6-10 Years 11+ Years 12 Days 18 Days 20 Days Upon termination of a covered employee's service with the Town, such employee shall be paid a lump sum equivalent to hislher accrued vacation leave. Maximum accumulation of vacation leave is 35 workdays. SECTION 5. VACATION LEAVE CONVERSION After one year's service with the Town, qualified employees who use at least 10 working days of vacation leave may convert into cash payment up to 50% of the total number of vacation hours taken in a calendar year, not to exceed 10 working days. Vacation leave conversion will be granted during the month of December each calendar year. . Page 3 . . . SECTION 6, SICK LEAVE Mid-management, professional and confidential employees shall be entitled to accrue one working day of sick leave for each month or major fraction thereof. Sick leave may be accrued by qualified employees without a maximum limitation. SECTION 7. SICK LEAVE PAY OFF Mid-management, professional and confidential employees hired prior to July 1, 2001 may receive cash equivalent compensation of 50% of their accrued sick leave, up to a total of 60 days, if the following conditions are met: a. The employee files for a service retirement from the Town, or b, The employee voluntarily separates from the Town and has at least 15 years of service with the Town. For employees hired after July 1, 2001, in the mid-management, professional or confidential positions, they may accrue unlimited sick leave with no option for "cashback" benefits. SECTION 8. HOLIDAYS The Town shall provide mid-management, professional and confidential employees the following holidays: New Year's Day Martin Luther King Day President's Day Memorial Day Independence Day Labor Day V eterans Day Thanksgiving Day January 1 Third Monday in January Third Monday in February Last Monday in May July 4 First Monday in September December 27 Fourth Thursday in November Friday after Thanksgiving December 24 December 25 December 31 Christmas Eve Christmas Day New Year's Eve When a holiday falls on a Saturday, the preceding Friday shall be observed, However, if a holiday falls on a Saturday and the preceding Friday is also a holiday, the Town Manager may designate the preceding Thursday or following Monday to observe the holiday. When a holiday falls on Sunday, the following Monday shall be observed. However, when a holiday falls on a Sunday and the following Monday is also a holiday, the Town Manager may designate the preceding Friday or following Tuesday to observe the holiday. .For mid-management employees who work an alternative work schedule and a holiday falls on his/her regular day off, he/she shall select either the preceding or Page 4 following regular working day off. Effected employees shall provide their direct supervisor with at least one week's notice as to which day they will observe as a holiday, . SECTION 9, FURLOUGH All represented employees will be required to take a 3-day furlough. The days furloughed will be December 28 and December 29,2005. Tiburon Town Hall will be closed from December 23,2005 through January 2, 2006. However, employees may not suffer compensation loss. The Town will provide a one- time paid day off for the December 28, 2005 day and the employee will be required to take a vacation day for the December 29,2005 furloughed day. Proposed Schedule: Friday, December 23,2005 Monday, December 26, 2005 Tuesday, December 27,2005 Wednesday, December 28, 2005 Thursday, December 29, 2005 Friday, December 30, 2005 Monday, January 2,2005 Christmas Eve Holiday Christmas Holiday Veterans Day Observance Furlough Day #1 (additional day off) Furlough Day #2 (vacation day) New Years Eve Holiday New Years Holiday . SECTION 1 O. ADMINISTRATIVE LEAVE In recognition ofthe long hours required to perform at the mid-management and professional level, including attendance at numerous meetings outside normal working hours, the following Administrative Leave policy shall be implemented. Each exempt mid-management, professional or confidential employee may receive up to ten days administrative leave annually, to be awarded at the discretion of the Town Manager. Administrative Leave shall be taken in one day increments. SECTION 11. DINNER ALLOWANCE All mid-management, professional and confidential employees who live more than 1 0 miles of Town and who are required to attend night meetings or work after office hours beyond 7 :00 P .M, may be reimbursed in an amount not to exceed $20.00 for the purchase of dinner for that night. Employee reimbursement is subject to the approval of the Town Manager and must be accompanied by a restaurant receipt which shall include the amount, date, meeting or purpose, and the employee's name, . Page 5 . . . SECTION 12. TUITION REIMBURSEMENT In order to promote continued development of skills, knowledge, and abilities among employees, the Town of Tiburon shall reimburse the costs of tuition, books and fees at the rate ofthe California State University system. Employees must receive prior approval of the Town Manager and submit certified transcripts with the evidence of a grade of "C" or better from an accredited college or university and submit bona fide receipts to qualify for tuition reimbursement. SECTION 13. RETIRED EMPLOYEE'S MEDICAL ALLOWANCE The Town of Tiburon will make contributions toward a retired employee's medical insurance plan based upon the following conditions: a. Employee must retire directly from employment with the Town of Tiburon and apply to PERS for retirement benefits. b. The retiree's medical insurance allowance is fixed and capped at the Kaiser single rate that is in effect at the time of the employee's retirement. c. The Town's contributions rate is based on the following formula: Percent of Kaiser Single Rate Years of Consecutive Service to Town 50% 75% 100% 15 Years 20 Years 25 Years Such coverage is not extended to employee's spouse or dependents. Page 6 SECTION 14. PERSONNEL RULES & REGULA TOINS In the event any provisions ofthis Resolution contradict those included in the Town's Personnel Rules & Regulations, the terms of this Resolution shall prevail. . PASSED AND ADOPTED at a regular meeting of the Town Council of the Town of Tiburon on , 2005, by the following vote: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: MILES BERGER Mayor ATTEST: DIANE CRANE-IACOPI Town Clerk . . Page 7 . . . EXHIBIT NO.~ RESOLUTION NO. A RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF TIBURON ESTABLISHING AN APPROPRIATION LIMIT FOR FISCAL YEAR 2005-06 PURSUANT TO ARTICLE XIII B. OF THE CONSTITUTION OF THE STATE OF CALIFORNIA WHEREAS, Article XIII B. of the Constitution of the State of California provides that total annual appropriations subject to exceed the appropriations limit of such entity of government for the prior year adjusted for changes in the cost of living and population, except as provides in Artic e XIII B; and WHEREAS, pursuant to Article XIII B of the Constitution of the State of California, the Town Council ofthe Town of Tiburon deems it to be in the best interest of the Town of Tiburon to establish an appropriations limit for Fiscal Year 2005-06; and WHEREAS, the previously established limit for Fiscal Year 2004-05 was $5,314,106, and the State Department of Finance has determined that the 2004 Per Capita Personal Income Factor is 5.26%, and the Population Change Factor is -.0037%; the Director of Administrative Services estimates that legislated pass-through fees of the County will be $52,000; the Director of Administrative Services ofthe Town of Tiburon has determined that the appropriations limit in the amount of$5,645,421 shall be established for Fiscal Year 2005-06. NOW, THEREFORE, BE IT RESOLVED by the Town Council of the Town of Tiburon that an appropriations limit in the amount of$5,645,421 is established for Fiscal Year 2005-06 pursuant to Article XIII B of the Constitution of the State of California. PASSED AND ADOPTED at a regular meeting of the Town Council of the Town of Tiburon on June 29, 2005 by the following vote: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: MILES BERGER, MAYOR ATTEST: DIANE CRANE IACOPI, TOWN CLERK Town of Tiburon STAFF REPORT AGENDA ITEM f' . . .. '. :-.... '. 'It . . . .. '. '. . -,. . . . . . . ...,......,.' .,. It . .' '. _. '. .. .' . . . . . ., '. '. . . . .' .' . TO: Honorable Mayor and Members of the Town Council FROM: Heidi Bigall, Director of Administrative Services SUBJECT: Authorize Issuance of Bonds - Del Mar Valley Utility unlter nding Assessment District June 29, 2005 REVIEWED BY: MEETING DATE: . . . . . . . . . . . . . . . . . . . . . It . . . . . . . . . . . . . . . . . . . . . . . . . . . The attached Resolution (Exhibit A) authorizes various Town officials to complete the bond issuance process for the Del Mar Valley Utility Undergrounding Assessment District. The final dollar amounts will be incorporated into the document when the bonds are actually priced and sold, sometime in mid-July. The bonds will be sold to Wulff, Hansen & Co, as was done for the Lyford Cove district. This Resolution also approves the forms of the Bond Purchase Agreement and Official Statement. These forms will be separately supplied by Wulff, Hansen & Co., as underwriter, and will be completed when the bonds are sold. RECOMMENDATION It is recommended that the Town Council adopt the attached Resolution authorizing issuance of limited obligations improvement bonds for the Del Mar Valley Utility Undergrounding Assessment District. Exhibit A - Draft Resolution S:\AdministrationlTown Counci/IStaff Reportsl20051Del Mar Valley Bond Sales. doc 30030-05 JH:SRC:sgs 6/14/05 RESOLUTION NO. _-2005 A RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF TIBURON AUTHORIZING ISSUANCE OF LIMITED OBLIGATION IMPROVEMENT BONDS AND DIRECTING RELATED ACTIONS Del Mar UtilityUndergrounding Assessment District Adopted ,2005 Section 1.01. Section 1.02. Section 1.03. Section 2.01. Section 2.02. Section 2.03. Section 2.04. Section 2.05. Section 2.06. Section 2.07. Section 2.08. Section 2.09. Section 3.01. Section 3.02. Section 3.03. Section 3.04. Section 3.05. Section 3.06. Section 3.07. Section 3.08. Section 3.09. Section 3.10. Section 3.11. Section 4.01 . Section 4.02. Section 4.03. Section 4.04. Section 4.05. Section 5.01. Section 5.02. Section 5.03. Section 5.04. Section 5.05. Section 5.06. Section 5.07. Section 5.08. Section 5.09. Section 5.10. TABLE OF CONTENTS Page ARTICLE I DEFINITIONS; GENERAL .DEFINITIONS... ..... ...... ........ ....... ....... ...... ........... ..... ........... .... .... ............................. 2 UNPAID ASSESSMENTS.......... ............................................................................. 8 EQUAL SECURITY ................................................................................................. 8 ARTICLE II THE BONDS BONDS AUTHORIZED......................... ...................... ............................................ 9 TERMS OF BONDS ................................................................................................ 9 REDEMPTION ............................................................................................ .......... 10 FORM OF BONDS ................................................................................................ 11 EXECUTION AND AUTHENTICATION OF BONDS ............................................ 11 TRANSFER OR EXCHANGE OF BONDS ........................................................... 11 BOND REGiSTER......................................................... ........................................ 12 TEMPORARY BONDS .......................................................................................... 12 BONDS MUTILATED, LOST, DESTROYED OR STOLEN .................................. 12 ARTICLE III ISSUANCE OF BONDS ISSUANCE AND SALE OF BONDS .....................................................................13 PLEDGE OF ASSESSMENTS AND FUNDS........................................................ 13 LIMITED OBLIGATIONS ....................................................................................... 13 NO ACCELERATION ............................................................................................13 REFUNDING OF BONDS ..................................................................................... 13 AUTHORITIES. ......... ...... ............................... ............... .... .... ... .......... ...... ............. 13 BOND PURCHASE AGREEMENT ....................................................................... 14 OFFICIAL STATEMENT .......................................................................................14 CONTINUING DISCLOSURE ............................................................................... 14 BOND SALE AND DELIVERy............................................................................... 14 ACTIONS APPROVED ......................................................................................... 14 ARTICLE IV FUNDS AND ACCOUNTS APPLICATION OF PROCEEDS OF SALE OF BONDS ..........................;............ 16 COSTS OF ISSUANCE FUND.............................................................................. 16 REDEMPTION FUND ........:.....................................................;............................ 16 RESERVE FUND .................................................................................................. 17 IMPROVEMENT FUND......................................................................................... 18 ARTICLE V COVENANTS COLLECTION OF ASSESSMENTS ..................................................................... 20 FORECLOSURE...................................................................................... ............. 20 PUNCTUAL PAYMENT; COMPLIANCE WITH DOCUMENTS ............................ 21 NO PRIORITY FOR ADDITIONAL OBLIGATIONS ............................................... 21 FURTHER ASSURANCES.............................................................. ..................... 21 PRIVATE ACTIVITY BOND LIMITATION ............................................................. 21 FEDERAL GUARANTEE PROHIBITION .............................................................. 22 NO ARBITRAGE ...................................................................................................22 REBATE REQUIREMENT .................................................................................... 22 YIELD OF THE BONDS ........................................................................................ 22 Section 5.11. Section 5.12. Section 5.13. Section 6;01. Section 6.02. Section 6.03. Section 6.04. Section 7.01. Section 7.02. Section 7.03. Section 7.04. Section 7.05. Section 7.06. Section 7.07. Section 8.01. Section 8.02. Section 8.03. Section 8.04. Section 8.05. Section 8:06. Section 8.07. Section 8.08. Section 8.09. Section 8.10. Section 8.11. Section 8.12. Section 8.13. Section 8.14. Section 8.15. Section 8.16. EXHIBIT A EXHIBIT B AMENDMENT ................................................................................................:...... 22 MAINTENANCE OF TAX-EXEMPTION................................................................ 22 CONTINUING DISCLOSURE ............................................................................... 22 ARTICLE VI INVESTMENT OF FUNDS DEPOSIT AND INVESTMENT OF MONEYS IN FUNDS ..................................... 23 ACQUISITION, DISPOSITION AND VALUATION OF INVESTMENTS............... 23 LIABILITY OF TOWN ....................;.......................................................................24 EMPLOYMENT OF AGENTS BY TOWN .............................................................25 ARTICLE VII MODIFICATION OR AMENDMENT AMENDMENTS PERMITTED ..................................................................... ..........26 OWNERS' MEETINGS ..............,..........................................................................26 PROCEDURE FOR AMENDMENT WITH WRITTEN CONSENT OF OWNERS. ............................................................................................................. 26 DISQUALIFIED BONDS. ........... ............................ .................................:.............. 27 EFFECT OF SUPPLEMENTAL RESOLUTION .................................................... 27 ENDORSEMENT OR REPLACEMENT OF BONDS ISSUED AFTER AMENDMENT. .............................. .................. ...................................................... 27 AMENDATORY ENDORSEMENT OF BONDS .................................................... 28 ARTICLE VIII MISCELLANEOUS BENEFITS OF AGREEMENT LIMITED TO PARITIES ........................................ 29 SUCCESSOR AND PREDECESSOR ........................~......................................... 29 DISCHARGE OF RESOLUTION.................... ............... ........................................ 29 EXECUTION OF DOCUMENTS AND PROOF OF OWNERSHIP ....................... 30 WAIVER OF PERSONAL LIABILITY. ................................................................... 30 NOTICES AND DEMANDS........... ............ ............................................................ 30 PARTIAL INVALIDITy............................................................................................ 30 UNCLAIMED MONEyS.......................................................... ............. .................. 31 APPLICABLE LAW................................................................ ....:........................... 31 CONFLICT WITH ACT..........................................................................................31 CONCLUSIVE EVIDENCE OF REGULARITY; VALIDITY.................................... 31 PAYMENT ON BUSINESS DAY. .......................................................................... 31 REPEAL OF INCONSISTENT RESOLUTIONS ...................................................31 CONSULTANTS...................................................... .............................................. 31 CERTIFIED COPI ES..... ..................... ................................................................... 31 EFFECTIVE DATE OF THE RESOLUTION ......................................................... 31 *********** TERMS AND CONDITIONS FORM OF BOND ii ARTICLE I DEFINITIONS; GENERAL Section 1.01. DEFINITIONS. Unless the context otherwise requires, the terms defined in this Section shall, for all purposes of this Resolution and of any Supplemental Resolution and of the Bonds and of any certificate, opinion, request or other document herein mentioned, have the meanings herein specified. All references in this Resolution to "Articles," "Sections," and other subdivisions are to the corresponding Articles, Sections or subdivisions of this Resolution; and the words "herein," hereof," "hereunder" and other words of similar import refer to this Resolution as a whole and not to any particular Article, Section or subdivision hereof. Words of the masculine gender shall be deemed and construed to include correlative words of the feminine and neuter genders. Unless the context shall otherwise indicate, words importing the singular number shall include the plural number and vice versa, and words importing persons . shall include corporations and associations, including public bodies, as well as natural persons. "Act' means the Municipal Improvement Act of 1913, Division 12 of the Streets and Highways Code of California, as amended and modified by other applicable laws "Agent' means The Bank of New York Trust Company, N.A., designated in Section 2.01 hereof to perform the duties of authentication, registration, transfer and payment of the Bonds and the Agent's assigns or any corporation or association which may at any time be substituted in the Agent's place. "Assessment or Assessments" means the unpaid amounts of the special assessments levied against all taxable real property within the boundaries of the Assessment District pursuant to the Act and the proceedings of the Council under the Resolution of Intention, for the purpose of paying Debt Service on the Bonds under the Bond Law. "Auditor' means the auditor/controller or tax collector of the County, or such other official of the County who is responsible for preparing real property tax bills. "Authorized Officer' means the Mayor, Town Manager, Finance Director, Town Engineer, Clerk, Town Attorney or any other officer or employee authorized by the Town Council of the Town or by an Authorized Officer to undertake the action referenced in this Resolution as required to be undertaken by an Authorized Officer. "Available Surplus Funds" means any surplus moneys held by the Town at the end of each Fiscal Year in excess of the amounts required to pay lawful municipal obligations incurred in that Fiscal Year. "Bond' or "Bonds" means "Limited Obligation Improvement Bonds, Town of Tiburon, Del Mar Utility Undergrounding Assessment District," issued under this Resolution and the Act, and at any time Outstanding in substantially the form in Exhibit B attached. "Bond Date" means the dated date of the Bonds specified in Exhibit A attached hereto and made a part hereof. "Bond Denomination" means the amount of $5,000 or any integral multiple thereof, which is the minimum amount in which the Bonds may be issued, except that one Bond may contain any odd amount. - 2- "Bond Law' means the Improvement Bond Act of 1915, Division 10 of the California Streets and Highways Code. "Bond Purchase Agreemenf' means the agreement between the Town and the Original Purchaser for the sale and purchase of the Bonds. "Bond Register' means the books maintained by the Agent pursuant to Section 2.07 for the registration and transfer of ownership of the Bonds. ':Bond Year' means the twelve-month period beginning on September 2 in each year and ending on the day prior to September 2 in the following year except that (i) the first Bond Year shall begin on the Closing Date and end on the day prior to the next September 2, and (ii) the last Bond Year may end on a prior redemption date. "Business Day' means any day other than (i) a Saturday or a Sunday or (ii) a day on which banking institutions in the state in which the Agent has its Principal Office are authorized or obligated by law or executive order to be closed. "Capitalized Interest Accounf' means the account of that name in the Redemption Fund. "Clerk" means the Town Clerk of the Town or Deputy Town Clerk or designee thereof. "Closing Date" means the date upon which there is an exchange of any of the Bonds for the proceeds representing the purchase price of such Bonds by the Original Purchaser thereof. "Continuing Disclosure Certificate" means any such certificate provided under Section 5.13 hereof. "Costs of Issuance" means all expenses incurred in connection with the authorization, issuance, sale and delivery of the Bonds, including but not limited to compensation, fees and expenses 'of the Town and the Agent and their respective counsel, compensation to any financial consultants, engineers, accountants, verification agents, and underwriters (other than those taken as discount on the Closing Date), legal fees and expenses, filing and recording costs, costs of preparation and reproduction of notice of sale documents and other related bond issuance costs, rating agency costs, costs of compliance with the Tax Code relating to any rebate to the United States and continuing disclosures and the costs of printing, mailing and publication of notices with respect to the Town. "Costs of Issuance Fund' means the fund designated "Town of Tiburon, Limited Obligation Improvement Bonds, Del Mar Utility Undergrounding Assessment District, Costs of Issuance Fund established under Section 4.02 hereof. "Councif' means the Town Council as the legislative body of the Town. "County' means the County of Marin, State of California. "Debt Service" means, for each Bond Year, the sum of (i) the interest due on the Outstanding Bonds in such Bond Year, assuming that the Outstanding Bonds are retired as -3- scheduled, and (ii) the principal amount of the Outstanding Bonds and the Sinking Fund Payments due in such Bond Year. "Fair Market Value" means the price at which a willing buyer would purchase the investment from a willing seller in a bona fide, arm's length transaction (determined as of the date the contract to purchase or sell the investment becomes binding) if the investment is traded on an established securities market (within the meaning of section 1273 of the Tax Code) and, otherwise, the term "Fair Market Value" means the acquisition price in a bona fide arm's length transaction (as referenced above) if (i) the investment is a certificate of deposit that is acquired in accordance with applicable regulations under the Tax Code, (ii) the investment is an agreement with specifically negotiated withdrawal or reinvestment provisions and a specifically negotiated interest rate (for example, a guaranteed investment contract, a forward supply contract or other investment agreement) that is acquired in accordance with applicable regulations under the Tax Code, (iii) the investment is a United States Treasury Security--State and Local Government Series that is acquired in accordance with applicable regulations of the United States Bureau of Public Debt, or (iv) any commingled investment fund in which the Town and related parties do not own more than a ten percent (10%) beneficial interest if the return paid by such fund is without regard to the source of the investment. "Federal Securities" means any of the following which at the time of investment are legal investments under the laws of the State for the moneys proposed to be invested therein: (a) direct general obligations of the United States of America (including obligations issued or hel,d in book entry form on the books of the Department of the Treasury of the United States of America); and (b) obligations of any department, agency or instrumentality of the United St,ates of America the timely payment of principal of and interest on which are unconditionally and fully guaranteed by the United States of America. "Finance Director' means the Director of Administrative Services or chief financial officer of the Town or designee thereof, including any deputy thereof or assistant thereto. "Fiscal Year' means the period commencing on July 1 of each year and ending on the next succeeding June 30. ' "Improvement Fund' means the fund designated "Town of Tiburon, Limited Obligation Improvement Bonds, Del Mar Utility Undergrounding Assessment District," established under Section 4.05 hereof. "Information Services" means Financial Information, Inc.'s "Daily Called Bond Service," 30 Montgomery Street, 10th. Floor, Jersey City, New Jersey 07302, Attention: Editor; F.S. Mergent call Notification, 5250 77 Center Drive, Charlotte, NC 28217; Xcitek, 5 Hanover Square, New York, NY 10004; and, in accordance with then current guidelines of the Securities and Exchange Commission, such other addresses and/or such services providing information with respect to called bonds as the Town may designate in an Officer's Certificate delivered to the Agent. "Interest Payment Date" means each date upon which interest on the Bonds is payable semiannually on each March 2 and September 2 until maturity and beginning on the date specified in Exhibit A. -4- "Officer's Certificate" means a written certificate or similar document executed by an Authorized Officer on behalf of the Town. "Original Purchaser' means Wulff, Hansen & Co., as the first purchaser of the Bonds from the Town. "Outstanding," when used as of any particular time with reference to Bonds, means all Bonds theretofore executed, issued and delivered by the Town and authenticated by the Agent under this Resolution except: (a) Bonds theretofore canceled by the Agent or surrendered to the Agent for cancellation; (b) Bonds paid or deemed to have been paid within the meaning of Section 2.03; and (c) Bonds in lieu of or in substitution for which other Bonds shall have been executed, issued and delivered by the Town pursuant to this Resolution or any Supplemental Resolution. "Owner' or "Registered Owner," when used with respect to any Outstanding Bond, means the person in whose name the ownership of such Bond shall be registered on the Bond Register. "Participating Underwriter' means an underwriter or purchaser of the Bonds under the Continuing Disclosure Certificate. . "Permitted Investments" means the following, but only to the extent that the same are acquired at Fair Market Value: (a) Federal Securities; (b) securities (other than those identified in paragraphs (a) and (d) of Section 53601 of the Government Code of the State) in which the Town may legally invest funds subject to its control, pursuant to Article 1, commencing with Section 53600, of Chapter 4 of Part 1 of Division 2 of Title 5 of the Government Code of the State, as now or hereafter amended; (c) . shares in a California common law trust established pursuant to Title 1, Division 7, Chapter 5 of the California Government Code which invests exclusively in investments permitted by Section 53635 of Title 5, Division 2, Chapter 4 of the California Government Code, as it may be amended, including but not limited to the California Asset Management Program (CAMP); . . (d) the Local Agency Investment Fund of the State of California, created pursuant to Section 16429.1 of the California Government Code, to the extent the Finance Director is authorized to register such investment in the Town's name; (e) investment agreements or guaranteed investment contracts, with or guaranteed by a financial entity whose long-term unsecured obligations are rated "M" or better by Moody's Investor's Service ("Moody's) and Standard and Poor's Ratings Group ("S&P"), and whose short term debt is rated no lower than the corresponding - 5 - level of rating category for such debt and such agreement or contract shall provide that the financial entity shall deposit collateral with a third party in accordance with criteria established by Moody's and S&P in the event that the rating of short or long-term debt of the entity is downgraded below then-current requirements of Moody's and S&P for such agreements or contracts; (f) money market funds which are rated Am or better by S&P; (g) any of the following direct or indirect obligations of the following agencies of the United States of America: (i) direct obligations of the Export-Import Bank; (ii) certificates of beneficial ownership issued by the Farmers Home Administration; (iii) participation certificates issued by the General Services Administration; (iv) mortgage- backed bonds or pass-through obligations issued and guaranteed by the Government National Mortgage Association, the Federal National Mortgage Association, the Federal Home Loan Mortgage Corporation or the Federal Housing Administration; (v) project notes issued by the United States Department of Housing and Urban Development; and (vi) public housing notes and bonds guaranteed by the United States of America; (h) interest-bearing demand or time deposits (including certificates of deposit) in federal or state chartered savings and loan associations or in federal or State of California banks (including the Agent), provided that (i) the unsecured short-term obligations of such commercial bank or savings and loan association shall be rated A 1 or better by S&P, or (ii) such demand or time deposits shall be fully insured by the Federal Deposit Insurance Corporation; (i) commercial paper rated in the highest short-term rating category by S&P, issued by corporations which are organized and operating within the United States of America, and which matures not more than 180 days following the date of investment therein; U) bankers acceptances, consisting of bills of exchange or time drafts drawn on and accepted by a commercial bank whose short-term obligations are rated in the highest short-term rating category by S&P, which mature not more than 270 days following the date of investment therein; (k) obligations the interest on which is excludable from gross income pursuant to Section 103 of the Tax Code and which are rated A or better by S&P. "Prepayment Accounf' means the account of that name in the Redemption Fund. "Principal Amounf' means the maximum aggregate principal amount of the Bonds as forth in Exhibit A. "Principal Office" means the office of the Agent in San Francisco, California, or such other office as shall be designated by the Agent in writing to the Town, or such other office of the Agent designated by the Agent for payment, transfer or exchange of the Bonds. "Projecf' means, collectively, the acquisitions and improvements described in the Resolution of Intention and funded with all or a portion of the proceeds of the Bonds. - 6 - . "Record Date" means, with respect to the Bonds, the fifteenth (15th) day of the calendar month immediately preceding an Interest Payment Date, whether or not a Business Day. "Redemption Fund' means the fund designated "Town of Tiburon, Limited Obligation Improvement Bonds, Del Mar Utility' Undergrounding Assessment District, Redemption Fund" established under Section 4.03 hereof. "Redemption Premium" means the percentage of the principal amount of the Bonds payable upon redemption of the Bonds, as set forth in Exhibit A hereto. "Reserve Fund' means the fund designated "Town of Tiburon, Limited Obligation Improvement Bond, Del Mar Utility Undergrounding Assessment District, Reserve Fund" established under Section 4.04 hereof. "Reserve Requirement" means as of any date of calculation, an amount not to exceed the lesser of (a) Maximum Annual Debt Service on the Outstanding Bonds or (b) ten percent (10%) of the total of the proceeds of the Bonds deposited under Section 4.01 hereof. "Resolution" or "Resolution of Issuance" means this Resolution, as originally adopted or as it may from time to time be supplemented, modified or amended by any Supplemental Resolution pursuant to the provisions hereof. "Resolution of Intention" means Resolution No. 15-2003 "A Resolution of the Town Council of the Town of Tiburon of Intention to Make Acquisitions and Improvements," adopted by the Council on May 21, 2003. "Sinking Fund Payments" means amounts specified in Exhibit A to be paid by the Town with respect to any Term Bonds, as set forth in Exhibit A. "State" means the State of California. "Supplemental Resolution" means any resolution, agreement, resolution or other instrument hereafter duly adopted or executed by the Town in accordance with the provisions of this Resolution. "Tax Code" means the Internal Revenue Code of 1986 as in effect on the date of issuance of the Bonds or (except as otherwise referenced herein) as it may be amended to apply to obligations issued on the date of issuance of the Bonds, together with applicable proposed, temporary and final regulations promulgated, and applicable official public guidance published, under the Tax Code. "Term Bonds" means those Bonds identified as Term Bonds in Exhibit A. "Town" means the Town of Tiburon a municipal corporation and general law town of the State of California duly organized and validly existing under and by virtue of the Constitution and the laws of the State of California. "Town Attorney" means the duly appointed or retained attorney or firm of attorneys to the Town for purposes of rendering advice in the conduct of its general municipal affairs. - 7 - "Town Manager' means the Town Manager or the Assistant Town Manager of the Town. "Treasurer' means the official who is the elected Town treasurer, or the deputy or designee thereof, or which, official may be the Finance Director. Section 1.02. UNPAID ASSESSMENTS. The Assessments are hereby finally confirmed as shown on the list of unpaid Assessments on file with the Finance Director which list is hereby approved and which is incorporated herein by this reference and made a part hereof. For a particular description of the lots or parcels of land bearing the respective assessment numbers set forth in the list, reference is hereby made to the assessment and to the diagram, and any amendments thereto, recorded in the office of the Town Engineer as the Superintendent of Streets of the Town after confirmation thereof by the Council. Section 1.03. EQUAL SECURITY. In consideration of the acceptance of the Bonds by the Owners thereof, this Resolution shall be deemed to be and shall constitute a contract between the Town and the Owners from time to time of the Bonds; and the covenants and agreements herein set forth to be performed on behalf of the Town shall be for the equal and proportionate benefit, security and protection of all Owners of the Bonds without preference, priority or distinction as to security or otherwise of any of the Bonds over any of the others by reason of the number or date thereof or the time of sale, execution or delivery thereof, or otherwise for any cause whatsoever, except as expressly provided therein or herein. - 8 - ARTICLE II THE BONDS Section 2.01. BONDS AUTHORIZED. All acts, conditions and things required by law to exist, happen and be performed precedent to and in the issuance of the Bonds have existed, happened and been performed in due time, form and manner as required by law, and the Council is now authorized pursuant to each and every requirement of law to issue the Bonds in the manner and form as provided in this Resolution. The Bonds in the Principal Amount are hereby authorized and will be issued as serial and/or term bonds as set forth in Exhibit A hereto. The Agent, at the Principal Office, is hereby designated as the Agent to perform the actions and duties required under this Resolution for the authentication, transfer, registration, and payment of the Bonds. . Section 2.02. TERMS OF BONDS. (A) Denominations. The Bonds shall be issued as fully registered Bonds without coupons in the Bond Denomination or any integral multiple thereof, except that the first maturity may contain any odd amount. Bonds shall be lettered and numbered in a customary manner as determined by the Agent. (8) Date of Bonds. The Bonds shall be dated the Bond Date. (C) CUSIP. "CUSIP" identification numbers shall be imprinted on the Bonds, but such numbers shall not constitute a part of the contract evidenced by the Bonds and any error or omission with respect thereto shall not constitute cause for refusal of any purchaser to accept delivery of and pay for the Bonds. Failure of the Town or the Agent to use such CUSIP numbers in any notice to Owners shall not constitute an event of default or any violation of the Town's contract with such Owners and shall not impair the effectiveness of any such notice. (D) Series and Maturities. The Bonds shall consist of the series and mature and become payable on September 2 of each year and shall bear interest at the rates per annum all as set forth in Exhibit A hereto and hereby made a part hereof. (E) Interest. The Bonds shall bear interest at the rates set forth above payable on the Interest Payment Dates in each year. Interest shall be calculated on the basis of a 360-day year composed of twelve 30-day months. Each Bond sha!1 bear interest from the Interest Payment Date next preceding the date of authentication and registration thereof unless it is authenticated and registered (i) prior to an Interest Payment Date and after the close Of business of the Record Date, in which event it shall bear interest from such Interest Payment Date, or (ii) prior to the close of business on the Record Date preceding the first Interest Payment Date, in which event it shall bear interest from the Dated Date. (F) Method of Payment. Both the pr~ncipal of and interest and premium (if any) on the Bonds shall be payable in lawful money of the United States of America. Interest on the Bonds (including the final interest payment upon maturity or earlier redemption) is payable by check of the Agent mailed by first class mail to the registered Owner thereof at such registered Owner's address as it appears on the registration books maintained by the Agent at the close of business on the Record Date preceding the Interest Payment Date, or by wire transfer made on such Interest Payment Date upon written instructions of any Owner of $1,000,000 or more in aggregate principal amount of Bonds delivered to the Agent prior to the applicable Record - 9 - Date. The principal of the Bonds and any premium on the Bonds are payable in lawful money of the United States of America upon surrender of the Bonds at the Principal Office of the Agent. All Bonds paid by the Agent pursuant this Section shall be canceled by the Agent. The Agent shall destroy the canceled Bonds and, upon request of the Town, issue a certificate of destruction of such Bonds to the Town. Section 2.03. REDEMPTION. (A) General. The Bonds are subject to redemption from the sources, upon the terms, the amounts, on the dates and at the Redemption Premiums as set forth in Exhibit A hereto and hereby made a part hereof. (B) Notice to Agent. For other than redemption of any Term Bonds, the Town shall give the Agent written notice of the aggregate amount of Bonds expected to be redeemed pursuant to subsection (A) not less than sixty (60) days prior to the applicable redemption date. (C) Redemption Procedure by Agent. (i) Selection of Bonds. Except for redemption of any Term Bonds, the Agent shall select Bonds for retirement in such a way that the ratio of Outstanding Bonds to issued Bonds shall be approximately the same in each annual series insofar as possible. Within each annual series the Agent shall select Bonds for retirement by lot. (ii) Notice by Agent. The Agent shall cause written notice of any redemption to be given by registered or certified mail or by personal service to the respective registered Owners of any Bonds designated for redemption, at their addresses appearing on the Bond Register in the Principal Office of the Agent at least 30 days before the applicable Interest Payment Date. The Agent shall also cause notice of redemption to be sent to one or more of the Information Services at least one day earlier than the giving of notice to the Owners as aforesaid; provided, however, such mailing to the Information Services shall not be a condition precedent to such redemption. Failure to so mail any notice of redemption, or of any person or entity to receive any such notice, or any defect in any notice of redemption, shall not affect the validity of the proceeding for the redemption of such Bonds. Such notice shall state the redemption date and the Redemption Premium and, if less than all of the then Outstanding Bonds are to be called for redemption, shall designate the CUSIP numbers (if applicable) and Bond numbers of the Bonds to be redeemed by giving the individual CUSIP number and Bond number of each Bond to be redeemed or shall state that all Bonds between two stated Bond numbers, both inclusive, are to be redeemed or that all of the Bonds of one or more maturities have been called for redemption, shall state as to any Bond called in part the principal amount thereof to be redeemed, and shall require that such Bonds be then surrendered at the Principal Office of the Agent for redemption at the said redemption price, and shall state that further interest on such Bonds, or the portion thereof to be redeemed, will not accrue from and after the redemption date. (iii) Payment. Upon the payment of the redemption price of Bonds being redeemed, each check or other transfer of funds issued for such purpose shall, to the extent practicable, bear the CUSIP number identifying, by issue and maturity, the Bonds being redeemed with the proceeds of such check or other transfer. - 10- (iv) Partial Redemption. Upon surrender of Bonds redeemed in part only, the Town shall execute and the Agent shall authenticate and deliver to the registered Owner, at the expense of the Town, a new Bond or Bonds, of the same series and maturity, of authorized denominations in aggregate principal amount equal to the unredeemed portion of the Bond or Bonds. (D) Effect of Redemption. From and after the date fixed for redemption, if funds available for the payment of the principal of, and interest and any premium on, the Bonds so called for redemption shall have been deposited in the Redemption Fund on the date fixed for redemption, such Bonds so called shall cease to be entitled to any benefit under this Resolution other than the right to receive payment of the redemption price, and no interest shall accrue thereon on or after the redemption date specified in such notice. All Bonds redeemed by the Agent pursuant to this Section 2.03 shall be canceled by the Agent. The Agent shall destroy the canceled Bonds and, upon request of the Authority, issue a certificate of destruction of such Bonds to the Town. Section 2.04. FORM OF BONDS. The Bonds, the Agent's certificate of authentication and the assignment, to appear thereon, shall be substantially in the forms, respectively, set forth in Exhibit B attached hereto and by this reference incorporated herein, with necessary or appropriate variations, omissions and insertions, as permitted or required by this Resolution and the Act. The Bonds are being issued in fully registered form as physical certificates and, when issued, will be eligible for registration with the Depository Trust Company, New York, New York ("DTC"), however, at closing, unless issued as a temporary Bond hereunder, the Bonds will not be issued in "book-entry-only" form. Section 2.05. EXECUTION AND AUTHENTICATION OF BONDS. The Bonds shall be executed in the name and on behalf of the Town with the manual or facsimile signatures of the Treasurer and attested by the manual or facsimile signature of the Clerk. The Bonds shall then be delivered to the Agent for authentication. In case any officer who shall have signed any of the Bonds shall cease to be such officer before the Bonds so signed shall have been authenticated or delivered by the Agent or issued by the Town, such Bonds may nevertheless be authenticated, delivered and issued and, upon such authentication, delivery and issue, shall be as binding upon the Town as though the individual who signed the same had continued to be such officer of the Town. Also, any Bond may be signed on behalf of the Town by any individual who on the actual date of the execution of such Bond shall be the proper officer although on the nominal date of such Bond such individual shall not have been such officer. Only such of the Bonds as shall bear thereon a certificate of authentication in substantially the form set forth in Exhibit B, manually executed by the Agent, shall be valid or obligatory for any purpose or entitled to the benefits of this Resolution, and such certificate of the Agent shall be conclusive evidence that the Bonds so authenticated have been duly authenticated and delivered hereunder and are entitled to the benefits of this Resolution. The Agent's certificate of authentication on any Bonds shall be deemed to be executed by it if signed by the Agent or by an authorized officer or signatory of the Agent, but it shall not be necessary that the same officer or signatory sign the certificate of authentication on all of the Bonds issued hereunder. Section 2.06. TRANSFER OR EXCHANGE OF BONDS. Any Bond may, in accordance with its terms, be transferred upon the Bond Register by the registered Owner, in person or by such Owner's duly authorized attorney, upon surrender of such Bond for cancellation, accompanied by delivery of a written instrument of transfer in a form approved by the Agent, - 11 - duly executed. Whenever any Bond shall be surrendered for transfer, the Agent shall thereupon authenticate and deliver to the transferee a new Bond or Bonds of like tenor, maturity and aggregate principal amount. Bonds may be exchanged at the Principal Office of the Agent, for Bonds of the same tenor and maturity and of other authorized denominations. No Bonds the notice of redemption of which has been given under Section 2.03 shall be subject to transfer or exchange pursuant to this Section. Neither the Town nor the Agent shall be required to make such exchange or registration or transfer of Bonds on or after the Record Date or after a Bond has been selected for redemption. For any transfer or exchange under this Section, the Town and the Agent may require the payment of a reasonable fee to cover the costs and expenses of the Town and the Agent. Section 2.07. BOND REGISTER. The Agent will keep or cause to be kept at its Principal Office a sufficient Bond Register for the registration and transfer of the Bonds, which shall at all times during regular business hours be open to inspection by the Town; and, upon presentation for such purpose, the Agent shall, under such reasonable regulations as it may prescribe, register or transfer or cause to be registered or transferred, on the Bond Register, Bonds as provided in this Resolution. Section 2.08. TEMPORARY BONDS. The Bonds may be issued initially in temporary form exchangeable for definitive Bonds when ready for delivery. The temporary Bonds may be printed, lithographed or typewritten, shall be of such denominations as may be determined by the Council and may contain such reference to any of the provisions of this Resolution as may be appropriate. Every temporary Bond shall be executed by the officers designated and in the manner provided in Section 2.05 hereof and be registered and authenticated by the Agent upon the same conditions and in substantially the same manner as the definitive Bonds. If the Town issues temporary Bonds, it will execute and furnish definitive Bonds without delay, and thereupon the temporary Bonds may be surrendered, for cancellation, in exchange therefor at the Principal Office of the Agent, and the Agent shall authenticate and deliver in exchange for such temporary Bonds an equal aggregate principal amount of definitive Bonds of authorized denominations. Until so exchanged, the temporary Bonds shall be entitled to the same benefits under this Resolution as definitive Bonds 'authenticated and delivered hereunder. Section 2.09. BONDS MUTILATED, LOST, DESTROYED OR STOLEN. If any Bond shall become mutilated, the Agent shall thereupon authenticate and deliver, a new Bond of like maturity and principal amount in exchange and substitution for the Bond so mutilated, but only upon surrender to the Agent of the Bond so mutilated. Every mutilated Bond so surrendered to the Agent shall be canceled by it and delivered to, or upon the order of, the Town. If any Bond issued hereunder shall be lost, destroyed or stolen, evidence of such loss, destruction or theft may be submitted to the Town and the Agent and, if such evidence be satisfactory to them and indemnity satisfactory to them shall be given, the Agent shall thereupon authenticate and deliver, a new Bond of like maturity and principal amount in lieu of and in substitution for the Bond so lost, destroyed or stolen (or if any such Bond shall have matured or shall have been called for redemption, instead of issuing a substitute Bond the Agent may pay the same without surrender thereof upon receipt of indemnity satisfactory to the Agent). The Town and the Agent may require payment of a reasonable fee for each new Bond issued under this Section and of the expenses which may be incurred by the Town and the Agent. Any Bond issued under the provisions of this Section in lieu of any Bond alleged to be lost, destroyed or stolen shall constitute an original contractual obligation on the part of the Town whether or not the Bond alleged to be lost, destroyed or stolen be at any time enforceable by anyone, and shall be equally and proportionately entitled to the benefits of this Resolution with all other Bonds secured by this Resolution and any Supplemental Resolution. - 12 - ARTICLE III ISSUANCE OF BONDS Section 3.01. ISSUANCE AND SALE OF BONDS. At any time after the adoption of this Resolution, the Town may issue the Bonds and sell and deliver them to the Original Purchaser under the Bond Purchase Agreement between the Town and Original Purchaser. The Authorized Officers, and each of them, are hereby authorized to negotiate and execute the Bond Purchase Agreement with the Original Purchaser for the sale of the Bonds, subject to such conditions as shall be as hereafter provided. Section 3.02. PLEDGE OF ASSESSMENTS AND FUNDS. The Bonds shall be secured by a first pledge (which pledge shall be effected in the manner and to the extent herein provided) of all of the Assessments and all moneys deposited in the Redemption Fund (and the Prepayment Account therein) and the Reserve Fund. The Assessments and all moneys deposited into said funds (except as otherwise provided herein) are hereby dedicated to the payment of the principal of (including any Sinking Fund Payments), and interest and any premium on, the Bonds as provided herein and in the Bond Law until all of the Bonds have been paid and retired or until moneys or Federal Securities have been set aside irrevocably for that purpose in under Section 8.03 hereof. Section 3.03. LIMITED. OBLIGATIONS. All obligations of the Town under this Resolution and the Bonds shall not be general obligations of the Town, but shall be limited obligations, payable solely from the Assessments and the funds pledged therefore hereunder. Neither the faith and credit of the Town nor of the State of California or any political subdivision thereof is pledged to the payment of the Bonds. The Bonds are "Limited Obligation Improvement Bonds" under section 8769 of the Bond Law and are payable solely from and secured solely by the Assessments and the amounts in the Redemption Fund and the Reserve Fund created hereunder. Notwithstanding any other provision of this Resolution, the Town is not obligated to advance available surplus funds from the Town treasury to cure any deficiency in the Redemption Fund; provided, however, the Town is not prevented, in its sole discretion, from so advancing funds. Section 3.04. NO ACCELERATION. The principal of the Bonds shall not be subject to acceleration hereunder. Nothing in this Section 3.04 shall in any way prohibit the prepayment or redemption of Bonds under Section 2.03 hereof, or the defeasance of the Bonds and discharge of this Resolution under Section 8.03 hereof. Section 3.05. REFUNDING OF BONDS. The Bonds may be refunded by the Town pursuant to Divisions 11 or 11.5 of the California Streets and Highways Code upon the conditions as set forth in appropriate proceedings. This Section shall not apply to or in any manner limit advancement of the maturity of any of the Bonds as provided in Parts 8, 9, 11, or 11.1 of the Bond Law, nor shall this Section 3.05 apply to or in any manner limit the redemption and payment of any Bond pursuant to subsequent proceedings providing for the payment of amounts to eliminate previously imposed fixed lien assessments, including the Assessments. Section 3.06. AUTHORITIES. The Authorized Officers are hereby authorized and directed to cause the various documents herein mentioned to be completed and executed with such changes, modifications, deletions or additions as may be approval by the Authorized Officer in consultation with the Town's staff and consultants with respect to these reassessment -13- proceedings, such approval to be conclusively evidenced by the execution of the such documents by the Authorized Officer. The foregoing authorization is expressly conditioned upon the satisfaction of the following: (i) the total principal amount of the Bonds shall not exceed $4,700,000; (ii) the average interest rate of the Bonds shall not exceed 6% per annum and the discount shall not exceed 2.5% of the Principal Amount. The Clerk is authorized to complete and to approve changes in any provisions of this Resolution and Exhibits A and B hereto in order to accomplish the delivery of any of the Bonds on schedule; such changes may be accomplished by attachment of a certificate, executed by the Clerk, to this Resolution on file in the office of the Clerk. Section 3.07. BOND PURCHASE AGREEMENT. The Council hereby approves the Bond Purchase Agreement in substantially the form on file with the Town and the Authorized Officer is hereby authorized and directed to complete and execute the Bond Purchase Agreement on behalf of the Town with such changes, additions, deletions and revisions as may be approved by the Authorized Officer in consultation with the Original Purchaser and Bond Counsel. Section 3.08. OFFICIAL STATEMENT. The Council hereby approves the Official Statement describing the financing for the Bonds, in substantially the form on file with the Town Clerk together with any changes therein or additions thereto deemed advisable by the Authorized Officer. The Council approves and authorizes the distribution by the Original Purchaser (as underwriter) of the Preliminary Official Statement to prospective purchasers of the Bonds, and authorizes and directs the Authorized Officer on behalf of the Town to deem "final," pursuant to Rule 15c2-12 under the Securities Exchange Act of 1934 (the "Rule"), the Preliminary Official Statement prior to its distribution to prospective purchasers of the Bonds. The execution of the final Official Statement, which shall include such changes and additions to the Preliminary Official Statement as may be permitted by the Rule and deemed advisable by the Authorized Officer and such information permitted to be excluded from the Preliminary Official Statement pursuant to the Rule shall be conclusive evidence of the approval of the Official Statement by the Town. Section 3.09. CONTINUING DISCLOSURE. The Council hereby approves the form of the Town's Continuing Disclosure Certificate with respect to the Bonds in substantially the forms thereof attached to the Preliminary Official Statement. The Authorized Officer is hereby authorized and directed to complete and execute the Certificate on behalf of the Town with . such changes, additions, deletions as may be approved by the Authorized Officer in consultation with Bond Counsel. Section 3.10. BOND SALE AND DELIVERY.. Upon execution of the Bond Purchase Agreement by the Town, the Bonds shall be prepared, authenticated and delivered, all in accordance with the applicable terms of this Resolution and the Bond Purchase Agreement. Each Authorized Officer and other responsible Town officials are hereby authorized and directed to take such actions as are required under the Bond Purchase Agreement to complete. all actions required to evidence the delivery of the Bonds and the receipt of the purchase price thereof from the Original Purchaser. Section 3.11. ACTIONS APPROVED. All actions heretofore taken by each Authorized Officer and other officials and agents of the Town with respect to the establishment of the Assessment District and the sale and issuance of the Bonds are hereby approved, confirmed and ratified, and each Authorized Officer is hereby authorized and direCted to do any and all things and take any and all actions and execute any and all certificates, agreements, contracts, and other documents, which each Authorized Officer may deem necessary or advisable in order -14- to complete the lawful issuance and delivery of the Bonds in accordance with this Resolution and any certificate, agreement, contract, and other document described in the documents herein approved. Each Authorized Officer is further authorized and directed to complete Exhibit A hereto and make such changes, amendments and corrections to this resolution as may be required to provide for the timely issuance, sale and delivery of the Bonds and to certify to such actions, as required. - 15 - ARTICLE IV FUNDS AND ACCOUNTS Section 4.01. APPLICATION OF PROCEEDS OF SALE OF BONDS. Upon receipt of the proceeds of sale of the Bonds on the Closing Date, the proceeds thereof shall be forthwith set aside, paid over and deposited by the Finance Director, as set forth in appropriate Officer's Certificate(s), Article IV hereof and Exhibit A hereto. Section 4.02. COSTS OF ISSUANCE FUND. (A) Establishment of Costs of Issuance Fund. The Costs of Issuance Fund shall be established, held and receive deposits, all as provided in Exhibit A. The moneys in the Costs of Issuance Fund shall be held by the Finance Director for the benefit of the Town and shall be disbursed as provided in subsection (B) of this Section 4.02 for the payment or reimbursement of the Costs of Issuance. (B) Disbursement. Amounts in the Costs of Issuance Fund shall be disbursed from time to time to pay Costs of Issuance as set forth in a requisition therefor containing respective amounts to be paid to the designated payees and delivered to the Finance Director concurrently with the delivery of the Bonds. The Finance Director shall pay all Costs of Issuance upon receipt of an invoice from any such payee which requests payment in an amount which is less than or equal to the amount set forth with respect to such payee in such requisition, or upon receipt of an Officer's Certificate requesting payment of a Cost of Issuance not listed on the initial requisition delivered to the Finance Director on the Closing Date. (C) Investment. Moneys in the Costs of Issuance Fund shall be invested and deposited under Section 6.01 hereof. Pending its closing under Subsection (D)below, Interest earnings and profits resulting from such investment shall be retained by the Finance Director in the Costs of Issuance Fund to be used for the purposes of such fund, pending the closing of such fund. (D) Closing of Fund. The Finance Director shall maintain the Costs of Issuance Fund for a period of 90 days from the Closing Date or until the last known Costs of Issuance have been paid, whichever is earlier, and "then shall transfer any moneys remaining therein, including any investment earnings thereon, the Improvement Fund and the Costs of Issuance Fund shall be closed. Section 4.03. REDEMPTION FUND. (A) Establishment of Redemption Fund and Account. The Redemption Fund is hereby established as a separate fund to' be held by the Finance Director to the credit of which deposits shall be made as required by Section 4.01 and any other amounts required to be deposited therein by this Resolution or the Bond Law. Moneys in the Redemption Fund shall be held by the Finance Director for the benefit of the Town and the Bond Owners, shall be disbursed for the payment of the principal of, and interest and any premium on, the Bonds as provided below. Within the Redemption Fund, the Finance Director shall establish and administer accounts as follows: -16- (i) The Capitalized Interest Account, into which a deposit shall be made under Section 4.01 and from which, disbursements shall be made to pay all or a portion of the interest on the Bonds which is due on the Interest Payment Date(s) set forth in Exhibit A. Upon the final payment of interest as herein provided, any moneys remaining in the Capitalized Interest Account shall be transferred to the Redemption Fund to pay Debt Service and the Capitalized Interest Account shall be closed; and (ii) The Prepayment Account, into which shall be placed any amounts representing the full or partial prepayments of Assessments that occur after the issuance of the Bonds. The Prepayment Account shall be administered in accordance with section 8767 of the Bond Law and shall remain open so long as the Redemption Fund remains open. (B) Disbursements. On or before each Interest Payment Date, the Finance Director shall withdraw from the accounts in the Redemption Fund and forward to the Agent for payment to the Owners of the Bonds, amounts sufficient to pay the principal of, and interest and any premium, then due and payable on the Bonds. Five (5) Business Days prior to each Interest Payment Date, the Finance Director shall determine if the amounts then on deposit in the Redemption Fund are sufficient to pay the Debt Service due on the Bonds on such Interest Payment date. In the event that amounts in the Redemption Fund are insufficient for such purpose, the Finance Director shall cause appropriate withdrawals to be made from the Reserve Fund, to the extent of any funds therein, the amount of such insufficiency, and shall transfer any amounts so withdrawn to the Redemption Fund. Amounts so withdrawn from such reserve fund and deposited in the Redemption Fund shall be applied to the payment of the Bonds. If, after the foregoing transfers, there are insufficient funds in the Redemption Fund to make the payments provided for in the first sentence of the first paragraph of this Section 4.03(B), the Finance Director shall apply the available funds first to the payment of interest on the Bonds, then to the payment of principal due on the Bonds, and then to payment of principal due on the Bonds by reason of Bonds called for redemption pursuant to Section 2.03 hereof. (C) Investment. Moneys in the Redemption Fund and the accounts therein shall be invested and deposited in accordance with Section 6.01. Interest earnings and profits resulting from such investment and deposit shall be retained in the Redemption Fund. and the accounts therein. (D) Closing of Fund. The Redemption Fund (and the Prepayment Account therein) shall be closed when all of the principal of and interest on the Bonds has been paid. Section 4.04. RESERVE FUND. (A) Establishment of Reserve Fund. The Reserve Fund is hereby established as a separate fund to be held by the Finance Director to the credit of which a deposit shall be made as required by Section 4.01, and deposits shall be made as provided in the Bond Law. Moneys in the Reserve Fund shall be held by the Finance Director for the benefit of the Town and the Bond Owners as a reserve for the payment of principal of, and interest and any premium on, the Bonds. The Town shall cause the Reserve Fund to be administered in. accordance with Part 16 of the Bond Law; provided that proceeds from redemption or sale of properties with respect to which payment of delinquent Assessments and interest thereon was made from the Reserve Fund, shall be credited to the Reserve Fund. (B) Use of Fund. Except as otherwise provided in this Section 4.04 all amounts deposited in the Reserve Fund shall be used and withdrawn by the Finance Director solely for - 17- the purpose of making transfers to the Redemption Fund in the event of any deficiency at any time in the Redemption Fund of the amount then required for payment of the principal of, and interest and any premium on, the Bonds or, in accordance with the provisions of this Section 4.04, for the purpose of redeeming Bonds from the Redemption Fund. (C) Transfer Due to Deficiency in Redemption Fund. Transfers shall be made from the Reserve Fund to the Redemption Fund in the event of a deficiency in the Redemption Fund, in accordance with Section 4.04(B) hereof. (D) Payment of Assessments. Whenever, after the issuance of the Bonds, an Assessment is pre-paid, in whole or in part, as provided in the Bond Law, the Finance Director shall transfer from the Reserve Fund to the Redemption Fund an amount specified in such direction equal to the product of the ratio of the original amount of the Assessment securing any Bonds so paid to the original amount of all Assessments securing any Bonds, times the initial Reserve Requirement. (E) Transfer of Excess of Reserve Requirement. Whenever, on any Interest Payment Date, or on any other date as determined by the Finance Director, the amount in the Reserve Fund exceeds the then applicable Reserve Requirement, the Finance Director shall, except as otherwise provided in Section 5.09 hereof for purposes of rebate and as evidenced by an appropriate Officer's Certificate, transfer on or before such Interest Payment Date an amount equal to the excess from the Reserve Fund to the Redemption Fund to be used in accordance with Part 16 of the Bond Law. (F) Transfer When Balance Exceeds Outstanding Bonds. Whenever the balance in the Reserve Fund is sufficient to retire all the Outstanding Bonds, whether by advance retirement or otherwise, collection of the principal and interest on the Assessments shall be discontinued and the Reserve Fund liquidated by the Finance Director in retirement of the Outstanding Bonds, as directed by an Officer's Certificate. In the event that the balance in the Reserve Fund at the time of liquidation exceeds the amount required to retire all of the Outstanding Bonds, the excess shall be transferred to the Town to be used in accordance with the Act and the Bond Law. (G) Investment. Moneys in the Reserve Fund shall be invested and deposited in accordance with Section 6.01. Interest earnings and profits resulting from said investment shall be retained in the Reserve Fund subject to the provisions of Section 4.04(E) hereof. Section 4.05. IMPROVEMENT FUND. (A) Establishment of Improvement Fund. The Improvement Fund is hereby established as a separate fund to be held by the Finance Director to the credit of which deposits shall be made as required by Section 4.01. Moneys in the Improvement Fund shall be held by the Finance Director for the benefit of the Town, and shall be disbursed, except as otherwise provided in subsection (D) of this Section, for the payment or reimbursement of costs of the Project. (B) Disbursement. Disbursements from the Improvement Fund shall be made by the Finance Director upon receipt of an Officer's Certificate, which shall: (i) set forth the amount required to be disbursed, the purpose for which the disbursement is to be made, the person to which the disbursement is to be paid and state that such disbursement is for a Project cost; and -18- (ii) certify that no portion of the amount then being requested to be disbursed was set forth in any Officer's Certificate previously filed requesting disbursement. (C) Investment. Moneys in the Improvement Fund shall be invested and deposited under Section 6.01 hereof. Interest earnings and profits from such investment and deposit shall be retained in the Improvement Fund to be used for the purposes of such fund. (D) Closing of Fund. Upon the filing of an Officer's Certificate stating that the Project has been completed and that all costs of the Project have been paid or are not required to be paid from the Improvement Fund, the Finance Director shall transfer the amount, if any, remaining in the Improvement Fund as directed in the Officer's Certificate which directions shall be pursuant to the Resolution of Intention and to the applicable provisions of the Act and the Improvement Fund shall be closed. -19- ARTICLE V COVENANTS Section 5.01. COLLECTION OF ASSESSMENTS. The Town shall comply with all requirements of the Act, the Bond Law and this Resolution to assure the timely collection of the Assessments, including, without limitation, the enforcement of delinquent Assessments. To that end, the following shall apply: (A) Tax Roll Collection. The Assessments as set forth on the list thereof on file with the Finance Director together with the interest thereto, shall be payable in annual series corresponding in number and proportionate amount to the number of installments and principal amounts of the Bonds maturing or becoming subject to mandatory prior redemption under Section 2.03 hereof. An annual proportion of each Assessment shall be payable in each Fiscal Year preceding the date of maturity or mandatory prior redemption date of each of the Bonds issued sufficient to pay the Bonds when due and such proportion of each Assessment coming due in any year, together with the annual interest thereon, shall be payable in the same manner and at the same time and in the same installments as the general taxes on real property are payable, and become delinquent at the same times and in the same proportionate amounts and bear the same proportionate penalties and interests after delinquency as do the general taxes on real property. All sums received from the collection of the Assessments and of the interest and penalties thereon shall be placed in the Redemption Fund. (B) Auditor Record, The Finance Director shall, before the final date on which the Auditor will accept the transmission of the Assessments for the parcels within the Assessment District for inclusion on the next tax roll, prepare or cause to be prepared, and shall transmit to the Auditor, such data as the Auditor requires to include the installments of the Assessments on the next secured tax roll. The Finance Director is hereby authorized to employ consultants to assist in computing the installments of the Assessments hereunder and in reconciling Assessments billed to amounts received as provided in the subsection (C) of this Section 5.01. (C) Administrative Costs. In addition to any amounts authorized pursuant to section 8682 of the Bond Law to be included with the annual amounts of installments as aforesaid, the Town, pursuant to section 8682.1 of the Bond Law may cause to be entered on the assessment roll on which taxes will next become due, opposite each lot or parcel of land within the Assessment District in the manner set forth in said section 8682, each lot's pro rata share of the estimated annual expenses of the Town in connection with the administrative duties thereof for the Bonds, including, but not limited to, the costs of registration, authentication, transfer and compliance with the provisions of Article V hereof. Delinquent Assessments shall be subject to foreclosure pursuant to Section 5,02 hereof. Section 5.02. FORECLOSURE. The Town hereby covenants with and for the benefit of the Owners of the Bonds that it will order, and cause to be commenced, and thereafter diligently prosecute an action in the superior court to foreclose the lien of any Assessment or installment thereof which has been billed, but has not been paid, pursuant to and as provided in sections 8830 and 8835, inclusive of the Bond Law and the conditions specified in this Section 5.02. The Finance Director shall notify the Town Attorney of any such delinquency of which the Finance Director is aware, and the Town Attorney shall commence, or cause to be commenced, such foreclosure proceedings, Under this Section, "commence" means and includes any actions preparatory to filing of any complaint. The Town Attorney is hereby authorized to - 20- employ counsel to conduct any such foreclosure proceedings. The following conditions shall apply to the foreclosure proceedings which shall be commenced within 60 days of any of the following determinations which shall be made by the Finance Director not later than October 1 of each Fiscal Year: (A) If the Finance Director determines that there is a delinquency of Assessment of $1,500 or more for a prior Fiscal Year or Years for any single parcel of land in the Assessment District. (B) If the Finance Director determines that the total amount of delinquent Assessments for the prior Fiscal Year for the entire Assessment District, less the total delinquencies under subsection (A) above, exceeds three percent (3%) of the total Assessments due and payable in the prior Fiscal Year, foreclosure shall be commenced against each parcel of land in the Assessment District with a delinquency of $750 or more for the prior Fiscal Year or Years. (C) If the Finance Director determines that the total amount of delinquent Assessment for the prior Fiscal Year for the entire Assessment District, less the total delinquencies under subsections (A) and (B) above, exceeds five percent (5%) of the total Assessments due and payable for the prior Fiscal Year, foreclosure shall be commenced against each parcel of land within the Assessment District with any amount of delinquency for the prior Fiscal Year or Years. Provided, however, that nothing herein shall prevent the Finance Director or the Town Attorney from causing the commencement of foreclosure proceedings before the occurrence of any of the foregoing. Section 5.03. PUNCTUAL PAYMENT; COMPLIANCE WITH DOCUMENTS. The Town shall punctually payor cause to be paid the interest and principal to become due with respect to all of the Bonds in strict conformity with the terms of the Bonds and of this Resolution, and will faithfully observe and perform all of the conditions, covenants and requirements of this Resolution and all Supplemental Resolutions. Section 5.04. NO PRIORITY FOR ADDITIONAL OBLIGATIONS. The Town covenants that no additional bonds or other obligations shall be issued or incurred having any priority over the Bonds in payment of principal or interest out of the Assessments. Nothing in this Resolution shall prohibit the Town from issuing bonds or other obligations on a parity with or subordinate to the Bonds and secured by and payable from the Assessments upon such terms as the Town may determine. Section 5.05. FURTHER ASSURANCES. The Town will adopt, make, execute and deliver any and all such further resolutions, instruments and assurances as may be reasonably necessary or proper to carry out the intention or to facilitate the performance of this Resolution, ' and for the better assuring and confirming unto the Owners of the Bonds the rights and benefits provided in this Resolution. Section 5.06. PRIVATE ACTIVITY BOND LIMITATION. The Town shall assure that the proceeds of the Bonds are not so used as to cause the Bonds to satisfy the private business tests of section 141 (b) of the Tax Code or the private loan financing test of section 141 (c) of the Tax Code. - 21 - Section 5.07. FEDERAL GUARANTEE PROHIBITION. The Town shall not take any action or permit or suffer any action to be taken if the result of the same would be to cause any of the Bonds to be "federally guaranteed" within the meaning of section 149(b) of the Tax Code. Section 5.08. NO ARBITRAGE. The Town shall not take, or permit or suffer to be taken by the Finance Director or otherwise, any action with respect to the proceeds of the Bonds which, if such action had been reasonably expected to have been taken, or had been deliberately and intentionally taken, on the date of issuance of the Bonds would have caused the Bonds to be "arbitrage bonds" within the meaning of section 148 of the Tax Code. Section 5.09. REBATE REQUIREMENT. The Town shall take any and all actions necessary to assure compliance with section 148(f) of the Tax Code, relating to the rebate 'of excess investment earnings, if any, to the federal government, to the extent that such section is applicable to the Bonds. Earnings on any reserve fund established under this Resolution shall be used for rebate purposes before any application thereof as credits to the Redemption Fund under Section 4.03(E). . Section 5.10. YIELD OF THE BONDS. In determining the yield of the Bonds to comply with Sections 5.08 and 5.09 hereof, the Town will take into account redemption (including premium, if any) in advance of maturity based on the reasonable expectations of the Town, as of the Closing Date, regarding prepayments of Assessments and use of prepayments for redemption of the Bonds, without regard to whether or not prepayments are received or Bonds redeemed. Section 5.11. AMENDMENT. Without the consent of the Owners of the Bonds, the Town may amend this Resolution to add, modify or delete provisions if necessary or desirable to assure compliance with Section 148(f) of the Tax Code, or as otherwise required, to assure the exemption from federal income taxation of interest on the Bonds. Section 5.12. MAINTENANCE OF TAX-EXEMPTION. The Town shall take all actions necessary to assure the exclusion of interest on the Bonds from the gross income of the Owners of the Bonds to the same extent as such interest is permitted to be excluded from gross income under the Tax Code as in effect on the date of issuance of the Bonds. Section 5.13. CONTINUING DISCLOSURE. The Town hereby covenants and agrees that it will comply with and carry out all of the provisions of any continuing disclosure relating to the Bonds. Notwithstanding any other provision of this Resolution, failure of the Town to comply with any continuing disclosure shall not be considered an event of default. - 22- ARTICLE VI INVESTMENT OF FUNDS Section 6.01. DEPOSIT AND INVESTMENT OF MONEYS IN FUNDS. Subject in all respects to the provisions of Section 6.02, moneys in any fund or account created or established by this Resolution and held by the Finance Director shall be invested by the Finance Director in Permitted Investments. The following shall apply to such investments: (A) Investments. In the absence of any such Officer's Certificate, the Finance Director shall invest any such moneys in Permitted Investments described (f) in the definition of Permitted Investments, which funds, by their terms mature prior to the date on which such moneys are required to be paid out hereunder. Obligations purchased as an investment of moneys in any fund shall be deemed to be part of such fund or account, subject, however, to the requirements of this Resolution for transfer of interest earnings and profits resulting from investment of amounts in funds and accounts; (B) Principal or Agent. The Finance Director may act as principal or agent in the acquisition or disposition of any investment. The Finance Director shall incur no liability for losses arising from any investments made pursuant to this Section; (C) Commingling. Subject in all respects to the provisions of Section 5.09, investments in any and all funds and accounts may at the discretion of the Finance Director be commingled in a separate fund or funds for purposes of making, holding and disposing of investments, notwithstanding provisions herein for transfer to or holding in or to the credit of particular funds or accounts of amounts received or held by the Finance Director hereunder, provided that the Finance Director shall at all times account for such investments strictly in accordance with the funds and account~ to which they are credited and otherwise as provided in this Resolution; (D) Sales. The Finance Director shall sell at the highest price reasonably obtainable, or present for redemption, any investment security whenever it shall be necessary to provide moneys to meet any required payment, transfer, withdrawal or disbursement from the fund or account to which such investment security is credited and the Finance Director shall not be liable or responsible for any loss resulting from the acquisition or disposition of such investment security in accordance herewith; and (E) Finance Director. For any funds held by the Finance Director, the foregoing provisions of this Section 6.01 shall also apply, except that an Officer's Certificate shall not be required. For such funds the Finance Director shall keep records or accounts of all expenditures or disbursements therefrom which records shall be available for inspection during business hours on any Business Day upon prior written request. Section 6.02. ACQUISITION, DISPOSITION AND VALUATION OF INVESTMENTS. The following shall apply to investments of funds and accounts under this Resolution: (A) Fair Market Value. Except as otherwise provided in subsection (B) of this Section, the Town covenants that all investments of amounts deposited in any fund or account under this Resolution, or otherwise containing gross proceeds of the Bonds (under section 148 of the Tax Code) shall be acquired, disposed of and valued (as of the date that valuation is required by this Resolution or the Tax Code) at Fair Market Value. - 23- (B) Reserve Fund. Investments in funds or accounts (or portions thereof) that are subject to a yield restriction under applicable provisions of the Tax Code, and (unless valuation is undertaken at least annually) investments in any reserve fund, shall be valued at their present value (within the meaning of section 148 of the Tax Code). Section 6.03. LIABILITY OF TOWN. The Town shall not incur any responsibility in respect of the Bonds or this Resolution other than in connection with the duties or obligations explicitly provided herein or in the Bonds. The Town shall not be liable to any Owner in connection with the performance of its duties hereunder, except for its own gross negligence or willful default. The Town shall not be bound to ascertain or inquire as to the performance or observance of any of the terms, conditions, covenants or agreements of the Agent herein or of any of the documents executed by the Agent in connection with the Bonds, or as to the existence of a default thereunder. Under this Resolution, the following shall apply to the Town: (A) Reliance. In the absence of bad faith, the Town, including the Finance Director, may conclusively rely, as to the truth of the statements and the correctness of the opinions expressed therein, upon certificates or opinions furnished to the Town and conforming to the requirements of this Resolution. The Town, including the Finance Director, shall not be liable for any error of judgment made in good faith unless it shall be proved that it was negligent in ascertaining the pertinent facts; (B) Expenditures. No provision of this Resolution shall require the Town to expend or risk its own general funds or otherwise incur any financial liability (other than with respect to the foreclosure proceedings for delinquent Assessments and the payment of fees and costs of the Agent) in the performance of any of its obligations hereunder or in the exercise of any of its rights or powers, if it shall have reasonable grounds for believing that repayment of such funds or adequate indemnity against such risk or liability is not reasonably assured to it; (C) Counsel. The Town may rely and shall be protected in acting or refraining from acting upon any notice, resolution, request, consent, order, certificate, report, warrant, bond or other paper or document believed by it to be genuine and to have been signed or presented by the proper party or proper parties. The Town may consult with counsel, who may be the Town Attorney, with regard to legal questions, and the opinion of such counsel shall be full and complete authorization and protection in respect of any action taken or suffered by it hereunder in good faith and in accordance therewith; (D) Owners. The Town shall not be bound to recognize any person as the Owner of a Bond unless duly registered and until such Bond is submitted for inspection, if required, and his title thereto satisfactorily established, if disputed; and (E) Certificate. Whenever in the administration of its duties under this Resolution the Town shall deem it necessary or desirable that a matter be proved or established prior to taking or suffering any action hereunder, such matter (unless other evidence in respect thereof be herein specifically prescribed) may, in the absence of willful misconduct on the part of the Town, be deemed to be conclusively proved and established by a certificate of the Agent or other expert retained by the Town for the purposes hereof, and such certificate shall be full warrant to the Town for any action taken or suffered under the provisions of this Resolution or any Supplemental Resolution upon the faith thereof, but in its discretion the Town may, in lieu thereof, accept other evidence of such matter or may require such additional evidence as to it may deem reasonable. - 24- Section 6.04. EMPLOYMENT OF AGENTS BY TOWN. In order to perform its duties and obligations hereunder, the Town may employ such persons or entities as it deems necessary or advisable. The Town shall not be liable for any of the acts or omissions of such persons or entities employed by it with reasonable care and in good faith hereunder, and shall be entitled to rely, and shall be fully protected in doing so, upon the opinions, calculations, determinations and directions of such persons or entities. - 25- ARTICLE VII MODIFICATION OR AMENDMENT Section 7.01. AMENDMENTS PERMITTED. This Resolution and the rights and obligations of the Town and of the Owners of the Bonds may be modified or amended at any time by a Supplemental Resolution pursuant to the affirmative vote at a meeting of Owners, or with the written consent without a meeting, of the Owners of at least sixty percent (60%) in aggregate principal amount of the Bonds then Outstanding, exclusive of Bonds disqualified as provided in Section 7.04. No such modification or amendment shall (i) extend the maturity of any Bond or reduce the interest rate thereon, or otherwise alter or impair the obligation of the Town to pay the principal of, and the interest and any premium on, any Bond, without the express consent of the Owner of such Bond, or (ii) permit the creation by the Town of any pledge or lien upon the Assessments superior to or on a parity with the pledge and lien created for the benefit of the Bonds (except as otherwise permitted by the Act, this Resolution, the laws of the State of California), or reduce the percentage of Bonds required for the amendment hereof, or to amend this Section 7.01. Any such amendment may not modify any of the rights or obligations of the Agent without its written consent. This Resolution and the rights and obligations of the Town and of the Owners may also be modified or amended at any time by a Supplemental Resolution, without the consent of any Owners, only to the extent permitted by law and only for anyone or more of the following purposes: (A) Additions. To add to the covenants and agreements of the Town in this Resolution contained, other 'covenants and agreements thereafter to be observed, or to limit or surrender any right or power herein reserved to or conferred upon the Town; (B) Affecting Bonds. To make modifications not adversely affecting any outstanding series of Bonds of the Town in any material respect; (C) Corrections: To make such provisions for the purpose of curing any ambiguity, or of curing, correcting or supplementing any defective provision contained in this Resolution, or in regard to questions arising under this Resolution, as the Town may deem necessary or desirable and not inconsistent with this Resolution, and which shall not adversely affect the rights of the Owners of the Bonds; or (D) Tax Exemption. To make such additions, deletions or modifications as may be necessary or desirable to assure exemption from federal income taxation of interest on the Bonds. Section 7.02. OWNERS' MEETINGS. The Town may at any time call a meeting of the Owners. In such event the Town is authorized to fix the time and place of said meeting and to provide for the giving of notice thereof and to fix and adopt rules and regulations for the conduct of said meeting. Section 7.03. PROCEDURE FOR AMENDMENT WITH WRITTEN CONSENT OF OWNERS. The Town may at any time adopt a Supplemental Resolution amending the provisions of the Bonds or of this Resolution or any Supplemental Resolution; to the extent that such amendment is permitted by Section 7.01 hereof, to take effect when and as provided in this Section 7.03. With respect to such Supplemental Resolution under this Section 7.03, the following shall apply: - 26- (A) Request. A copy of such Supplemental Resolution, together with a request to Owners for their consent thereto, shall be mailed by first class mail, by the Finance Director to each Owner of Bonds Outstanding, but failure to mail copies of such Supplemental Resolution and request shall not affect the validity of the Supplemental Resolution when assented to as in this Section provided; (B) Consents. Such Supplemental Resolution shall not become effective unless there shall be filed with the Agent the written consents of the Owners of at least sixty percent (60%) in aggregate principal amount of the Bonds then Outstanding (exclusive of Bonds disqualified as provided in Section 7.04) and a notice shall have been mailed as hereinafter in this Section provided. Each such consent shall be effective only if accompanied by proof of ownership of the Bonds for which such consent is given, which proof shall be such as is permitted by Section 8.04. Any such consent shall be binding upon the Owner of the Bonds giving such consent and on any subsequent Owner (whether or not such subsequent Owner has notice thereof) unless such consent is revoked in writing by the Owner giving such consent or a subsequent Owner by filing such revocation with the Agent prior to the date when the notice hereinafter in this Section provided for has been mailed; and (C) Notice. After the Owners of the required percentage of Bonds shall have filed their consents to the Supplemental Resolution, the Town shall mail a notice to the Owners in the manner above provided in this Section for the mailing of the Supplemental Resolution, stating in substance that the Supplemental Resolution has been consented to by the Owners of the required percentage of Bonds and will be effective as provided in this Section but failure to mail copies of said notice shall not affect the validity of the Supplemental Resolution or consents thereto). Proof of the mailing of such notice shall be filed with the Agent. A record, consisting of the papers required by this Section 7.03 to be filed with the Agent, shall be proof of the matters therein stated until the contrary is proved. The Supplemental Resolution shall become effective upon the filing with the Agent of the proof of matters therein of such notice, and the Supplemental Resolution shall be deemed conclusively binding (except as otherwise hereinabove specifically provided in this Article) upon the Town and the Owners of all Bonds at the expiration of sixty (60) days after such filing, except in the event of a final decree of a court of competent jurisdiction setting aside such consent in a legal action or equitable proceeding for such purpose commenced within such sixty-day period. Section 7.04. DISQUALIFIED BONDS. Bonds owned or held for the account of the Town, excepting any pension or retirement fund, shall not be deemed Outstanding for the purpose of any vote, consent or other action or any calculation of Outstanding Bonds provided for in this Article VII, and shall not be entitled to vote upon, consent to, or take any other action provided for in this Article VII. Section 7.05. EFFECT OF SUPPLEMENTAL RESOLUTION. From and after the time any Supplemental Resolution becomes effective pursuant to this Article VII, this Resolution shall be deemed to be modified and amended in accordance therewith, the respective rights, duties and obligations under this Resolution of the Town and all Owners of Bonds Outstanding shall thereafter be determined, exercised and enforced hereunder subject in all respects to such modifications and amendments, and all the terms and conditions of any such Supplemental Resolution shall be deemed to be part of the terms and conditions of this Resolution for any and all purposes. Section 7.06. ENDORSEMENT OR REPLACEMENT OF BONDS ISSUED AFTER AMENDMENT. The Town may determine that Bonds issued and delivered after the effective - 27- date of any action taken as provided in this Article VII shall bear a notation, by endorsement or otherwise, in form approved by the Town, as to such action. In that case, upon request of the Owner of any Bond Outstanding at such effective date and presentation of his Bond for that purpose at the Principal Office of the Agent or at such other office as the Town may select and designate for that purpose, a suitable notation shall be made on such Bond. The Town may determine that new Bonds, so modified as in the opinion of the Town is necessary to conform to such Owners' action, shall be prepared, executed and delivered. In that case, upon request of the Owner of any Bonds then Outstanding, such new Bonds shall be exchanged at the Principal Office of the Agent without cost to any Owner, for Bonds then Outstanding, upon surrender of such Bonds. Section 7.07. AMENDATORY ENDORSEMENT OF BONDS. The provisions of this Article VII shall not prevent any Owner from accepting any amendment as to the particular Bonds held by such Owner, provided that due notation thereof is made on such Bonds. - 28- ARTICLE VIII MISCELLANEOUS Section 8.01. BENEFITS OF AGREEMENT LIMITED TO PARITIES. Nothing in this Resolution, expressed or implied, is intended to give....to any person other than the Town, the Agent and the Owners, any right, remedy or claim under or by reason of this Resolution. Any covenants, stipulations, promises or agreements in this Resolution contained by and on behalf of the Town shall be for the sole and exclusive benefit of the Owners and the Agent. Section 8.02. SUCCESSOR AND PREDECESSOR. Whenever in this Resolution or any Supplemental Resolution either the Town or the Agent is named or referred to, such reference shall be deemed to include the successors or assigns thereof, and all the covenants and agreements in this Resolution contained by or on behalf of the Town shall bind and inure to the benefit of the respective successors and assigns thereof whether so expressed or not. Section 8.03. DISCHARGE OF RESOLUTION. Subject to the provisions of Section 2.03 hereof, the Town may pay and discharge the entire indebtedness on all Bonds Outstanding in anyone or more of the following ways: (A) Payment. By paying or causing to be paid the principal of (including any Sinking Fund Payments) and interest. and any premium on all Bonds Outstanding, as and when the same become due and payable; (B) Cash. By depositing with the Agent, in trust, at or before maturity, money which, together with the amounts then on deposit in the Redemption Fund is fully sufficient to pay all Bonds Outstanding, including all principal, interest and any applicable redemption premiums, or; (C) Federal Securities. By irrevocably depositing with the Agent, in trust, cash and Federal Securities in such amount as the Town shall determine, as confirmed by an independent certified public accountant, which will, together with the interest to accrue thereon and moneys then on deposit in the Redemption Fund be fully sufficient to pay and discharge the indebtedness on all Bonds, including all principal, interest and any applicable redemption premiums, at or before their respective maturity dates; (D) Actions. If such Bonds are to be redeemed prior to the maturity thereof notice of such redemption shall have been given as in this Resolution provided or provision satisfactory to the Agent shall have been made for the giving of such notice, then, at the election of the Town, and notwithstanding that any Bonds shall not. have been surrendered for payment, the pledge of the Assessments and other funds provided for in this Resolution and all other obligations of the Town under this Resolution with respect to all Bonds Outstanding shall cease and terminate, except only the obligation of the Town to payor cause to be paid to the Owners of the Bonds not so surrendered and paid all sums due thereon, the obligation of the Town to assure that no action is taken or failed to be taken if such action or failure adversely affects the exclusion of interest on the Bonds from gross income for federal income tax purposes, and all amounts owing to the Agent pursuant to Section 7.05 hereof; and thereafter Assessments shall not be payable to the Agent. Notice of such election shall be filed with the Agent. Any funds thereafter held by the Agent upon payments of all fees and expenses of the Agent, which are - 29- not required for said purpose, shall be paid over to the Town to be used by the Town as provided in the Act and the Bond Law. Section 8.04. EXECUTION OF DOCUMENTS AND PROOF OF OWNERSHIP. Any request, declaration or other instrument which this Resolution may require or permit to be executed by Owners may be in one or more instruments of similartenor, and shall be executed by Owners in person or by their attorneys appointed in writing. Except as otherwise herein expressly provided, the fact and date of the execution by any Owner or his attorney of such request, declaration or other instrument, or of such writing appointing such attorney, may be proved by the certificate of any notary public or other officer authorized to take acknowledgments of deeds to be recorded in the state in which he purports to act, that the person signing such request, declaration or other instrument or writing acknowledged to him the execution thereof, or by an affidavit of a witness of such execution, duly sworn to before such notary public or other officer. The ownership of registered bonds and the amount, maturity, number and date of holding the same shall be proved by the registry books. Any consent, request, declaration or other instrument or writing of the then registered Owner of any Bond shall bind all future Owners of such Bond in respect of anything done or suffered to be done by the Town or the Agent in good faith and in accordance therewith. Section 8.05. WAIVER OF PERSONAL LIABILITY. No member, officer, agent or employee of the Town shall be individually or personally liable ,for the payment of the principal of, or interest or any premium on, the Bonds; but nothing herein contained shall relieve any such member, officer, agent or employee from the performance of any official duty provided by law. Section 8.06. NOTICES AND DEMANDS. Any notice or demand hereunder to the . Town or the Agent may be given or served by being deposited postage prepaid in a post office letter box addressed (until another address is provided) as follows: A) Town: Director of Administrative Services Town of Tiburon 1505 Tiburon Blvd. Tiburon, CA 94920 (B) Agent: The Bank of New York Trust Company, N.A. 550 Kearny Street, Suite 600 San Francisco, CA 94108-2527 Attn: Corporate Trust Division Section 8.07. PARTIAL INVALIDITY. If any Section, paragraph, sentence, clause or phrase of this Resolution shall for any reason be held illegal or unenforceable, such holding shall not affect the validity of the remaining portions of this Resolution. The Town hereby declares that it would have adopted this Resolution and each and every other Section, paragraph, sentence, clause or phrase hereof and authorized the issue of the Bonds pursuant thereto irrespective of the fact that anyone or more Sections, paragraphs, sentences, clauses, or phrases of this Resolution may be held illegal, invalid OJ unenforceable. - 30- Section 8.08. UNCLAIMED MONEYS. Anything contained herein to the contrary notwithstanding, any moneys held by the Finance Director in trust for the payment and discharge of the principal of, and the interest and any premium on, the Bonds which remains unclaimed for two (2) years after the date when payments of principal, interest and any premium have become payable, shall be repaid by the Finance Director to the Town as its absolute property free from any trust, and the Finance Director shall thereupon be released and discharged with respect thereto. . Section 8.09. APPLICABLE LAW. This Resolution shall be governed by and enforced in accordance with the laws of the State of California applicable to contracts made and performed in the State of California. Section 8.10. CONFLICT WITH ACT. In the event of a conflict between any provision of this Resolution with any provision of the Act, the provision of the Act shall prevail over the conflicting provision of this Resolution. Section 8.11. CONCLUSIVE EVIDENCE OF REGULARITY; VALIDITY. Bonds issued pursuant to this Resolution shall constitute conclusive evidence of the regularity of all proceedings under the Act relative to their issuance and the levy of the Assessments. The validity of the authorization and issuance of the Bonds shall not be dependent upon the completion and/or acquisition of the Project or any part thereof or the performance by any person or such person's obligation(s) with respect to the Project. Section 8.12. PAYMENT ON BUSINESS DAY. In any case where the date of the maturity of interest or of principal, (and premium, if any) of the Bonds or the date fixed for redemption of any Bonds or the date any action is to be taken pursuant to this Resolution is other than a Business Day, the payment of interest or principal, including Sinking Fund Payments, (and any redemption premium) or the action need not be made on such date but may be made on the next succeeding day which is a Business Day with the same force and effect as if made on the date required and no additional interest shall accrue from such Interest Payment Date until such Business Day. Section 8.13. REPEAL OF INCONSISTENT RESOLUTIONS. Any resolution of the Council, and any part of such resolution, inconsistent with this Resolution, is hereby repealed .to the extent of such inconsistency. Section 8.14. CONSULTANTS. All actions mandated by this Resolution to be performed by the Finance Director may be performed by the designee thereof or such other official of the Town or independent contractor, consultant or trustee duly authorized by the Town to perform such action or actions in furtherance of all or a specific portion of the requirements hereof. Section 8.15. CERTIFIED COPIES. The Clerk shall cause to be furnished a certified copy of this resolution to the Finance Director, to the Agent, and to the Auditor of the County. Section 8.16. EFFECTIVE DATE OF THE RESOLUTION. This Resolution shall become effective upon the date of its adoption. - 31 - RESOLVED by the Town Council (the "Council") of the Town of Tiburon (the "Town"), County of Marin (the "County"), State of California, that: WHEREAS, on June 4, 2003, this Council adopted its Resolution of the Town Council of the Town of Tiburon of Intention to Make Acquisitions and Improvements," (the "Resolution of Intention") under the Municipal Improvement Act of 1913, Division 12 of the Streets and Highways Code of California, as amended and modified by other applicable laws (collectively, the "Act") to initiate proceedings under the Act in and for the Town's Del Mar Utility Utility Undergrounding Assessment District (the "Assessment District"); WHEREAS, by the Resolution of Intention, the Council provided that improvement bonds as more particularly described herein (the "Bonds") would be issued thereunder and reference to the Resolution of Intention is hereby expressly made for further particulars; WHEREAS, this Council has completed its proceedings under the Resolution of Intention for the levy of assessments, has caused all recordings and filings to be completed in accordance with the requirements in and for the Assessment District and by the adoption of this Resolution intends to provide for the issuance of the Bonds; and . WHEREAS, this Council now intends to provide for the issuance of the Bonds upon the security of a the unpaid assessments, all as hereinafter provided. PASSED AND ADOPTED at the regular meeting of the Town Council of the Town of Tiburon, State of California, on this day of 2005, by the following vote to wit: ATTEST: AYES: NOES: ABSENT: COUNCILMEMBERS: COUNCILMEMBERS COUNCILMEMBERS DIANE CRANE IACOPI, TOWN CLERK , MAYOR TOWN OF TIBURON EXHIBIT A TOWN OF TIBURON Del Mar Utility Utility Undergrounding Assessment District Limited Obligation Improvement Bonds TERMS AND CONDITIONS The following terms and conditions shall be part of the within Resolution Authorizing the Issuance of Refunding Bonds (the "Resolution of Issuance") as if set forth in the text thereof: Principal Amount: Under Section 2.01, the actual aggregate principal amount of the. Bonds is $ and the Bond Date is , 2005. The first Interest Payment Date is March 2, 2006. Principal Maturities and Interest: Under Section 2.02 the maturities and rates of interest of the Bonds are as follows: Maturity Date (Seotember 2) Principal Amount ($) Interest Rate (%) Together with $ "Term Bonds'), at the interest rate of redemption hereunder. Term Bonds maturing on September 2, 20_ (the % per annum, subject to mandatory sinking fund Bond Redemption: Under Section 2.03, the Redemption provisions are as follows: Prepayment. Redemption. Each Outstanding Bond, or any portion of the principal thereof, in the principal amount of $5,000 or any integral multiple of $5,000, will be subject to mandatory redemption from any funds available therefor from proceeds of prepayments deposited in the Prepayment Account, or to optional redemption from sources other than prepayments, including the proceeds of refunding bonds, on any Interest Payment Date in any year by giving notice as provided herein and by paying the principal amount thereof, plus interest to the date of redemption and the applicable Redemption Premium of 2% of the principal amount of the Bonds redeemed. Excess Proceeds Redemption. Outstanding Bonds maturing in 2035, in the principal amount of $5,000 or any iritegral multiple of $5,000, will be subject to mandatory redemption at the par amount thereof, plus interest on August 2, 2005, from any moneys in the Improvement Fund which are not otherwise used or required for service connections or other related costs. Mandatory Sinking Fund Redemption. The Bonds maturing on September 2, 20_, are subject to mandatory redemption, in part by lot, on September 2 in each year, commencing September 2, 20_, from sinking fund payments from the redemption fund EXHIBIT A Page 1 at a redemption price equal to the principal amount thereof to be redeemed, without premium, as follows: Sinking Fund Redemption Date (SeDtember 2) Principal Amount To Be Redeemed Funds: Deposit to Funds: Under Section 4.01, on or before, the Closing Date, the Town shall cause the following transfers and dE;lposits shall be made: 1 . $ 2. $ 3. $ to the Costs of Issuance Fund; to the Reserve Fund; and to the Improvement Fund. EXHIBIT A Page 2 EXHIBIT B FORM OF BOND United States of America State of California County of Marin County of Registered Number A- --- Registered ***$*** LIMITED OBLIGATION IMPROVEMENT BOND TOWN OF TIBURON Del Mar Utility Undergrounding Assessment District INTEREST RATE MATURITY DATE CUSIP REGISTERED OWNER: PRINCIPAL AMOUNT: *** DOLLARS*** Under and by virtue of the Improvement Bond Act of 1915, Division 10 (commencing with Section 8500) of the Streets and Highways Code (the "Act") the Town of Tiburon (the Town) County of Marin, State of California, will, out of the redemption fund for the payment of the bonds issued upon the unpaid portion of assessments made for the acquisition, work and improvements more fully described in proceedings taken pursuant to Resolution of Intention No. 15-2003 adopted by the Town Council of the Town on June 4, 2003, pay to the registered owner named above or registered assigns, on the maturity date stated above, the principal amount stated above, in lawful money of the United States of America and in like manner will pay interest at the rate per annum stated. above, payable semiannually on March 2 and September 2 (each an "Interest Payment Date") in each year commencing on March 2, 2006. This Bond bears interest from the Interest Payment Date next preceding its date of authentication and registration unless it is authenticated and registered (i) prior to an Interest Payment Date and after the close of business of the fifteen day preceding such Interest Payment Date, in which event it shall bear interest from such Interest Payment Date, or (ii) prior to the close of business on the fifteenth day of the calendar month preceding March 2, 2006, in which event it shall ,bear interest from its date, until payment of such principal sum shall have been discharged. Both the principal of and redemption premium hereon of matured bonds or bonds called for redemption prior to maturity, if any, shall be paid upon surrender to The Bank of New York Trust Company, N.A., as Authentication Agent, Registrar, Transfer and Paying Agent (the "Agent"), in San Francisco, California, and interest hereon shall be paid by check or draft mailed to the registered owner hereof at the registered owner's address as it appears on the records of the Agent, or at such address as may have been filed with the Agent, for that purpose, as of the fifteenth day of the calendar month immediately preceding each Interest Payment Date; provided however, upon request in writing of an Owner of $1,000,000 or more in aggregate principal amount of Bonds, such request having been made before fifteen calendar days preceding an Interest Payment Date, such interest shall be paid on such Interest Payment Date by wire transfer in immediately available funds to an account in the continental United States designated by such Owner to the Agent. This Bond will continue to bear interest after maturity at the rate above stated provided that it is presented at maturity and payment hereof. is refused upon the sole ground that there EXHIBIT B Page 1 are not sufficient moneys in said redemption fund with which to pay same. If it is not presented at maturity interest hereon will run only until maturity. This Bond shall not be entitled to any benefit under the Act or the Resolution entitled "A Resolution of the Town Council of the Town of Tiburon Authorizing Issuance of Limited Obligation Improvement Bonds," (the "Resolution of Issuance") adopted by the Town Council on February 2, 2005, or become valid or obligatory for any purpose, until the certificate of authentication and registration hereon shall have been dated and signed by the Agent. IN WITNESS WHEREOF, the Town of Tiburon has caused this Bond to be signed in facsimile by the Director of Administrative Services of the Town and by its Town Clerk, and has cause its corporate seal to be reproduced in facsimile hereon all as of the _ day of ,2005. TOWN OF TIBURON Heidi Bigall, Director of Administrative Services Diane Crane lacopi, Town Clerk CERTIFICATE OF AUTHENTICATION AND REGISTRATION This is one of the bonds described in the within mentioned Resolution of Issuance. Dated: 200 The Bank of New York Trust Company, N.A. as Agent By , Authorized Officer (reverse side of bond) ADDITIONAL PROVISIONS OF THE BOND This Bond is one of several annual series of bonds of like date, tenor and effect, but differing in amounts, maturities and interest rates, issued by the Town under the Act and the Resolution of Issuance for the purpose of providing means for paying for the improvements and the refunding of the bonds as more particularly described in said proceedings, and is secured by the moneys in the redemption fund (as may be limited by the Resolution of Issuance) and by the unpaid portion of said assessments made for the payment of said refunding, and, including principal and interest, is payable exclusively out of said fund. This Bond is transferable by the Owner hereof, in person or by the Owner's attorney duly authorized in writing, at said office of the Agent, subject to the terms. and conditions provided in the Resolution of Issuance, including the payment of certain charges, if any, upon surrender and cancellation of this Bond. Upon such transfer, a new registered Bond or Bonds, EXHIBIT B Page 2 of any authoriz~d denomination or denominations, of the same maturity, and for the same aggregate principal amount, will be issued to the transferee in exchange herefor. Bonds shall be registered only in the name of an individual (including joint owners), a corporation, a partnership or a trust. Neither the Town nor the Agent shall be required to make such exchange or registration of transfer of Bonds during the fifteen (15) days immediately preceding any Interest Payment Date or any exchange or transfer of a Bond after such Bond has been called for redemption. The Town and the Agent may treat the Owner hereof as the absolute owner for all purposes, and the Town and the Agent shall not be affected by any notice to the contrary. This Bond, or any portion of the principal thereof, in the principal amount of $5,000 or any integral multiple of $5,000, will be subject to mandatory redemption from any funds available therefore from the prepayments of assessments, and to optional redemption from sources other than prepayments, including the proceeds of refunding bonds, on any Interest Payment Date in any year by giving notice as provided herein and by paying the principal amount thereof, plus interest to the date of redemption and the applicable Redemption Premium as follows: Redemotion Dates Premium On or before March 2,20_ March 2, 20_and September 2,20_ March 2,20_ and thereafter Redemotion % _% % This Bond is a Limited Obligation Improvement Bond because, under the Resolution of Issuance, the Town is not obligated to advance funds from the Town treasury to cover any deficiency which may occur in the redemption fund for the bonds; however, the Town is not prevented, in its sole discretion, from so advancing funds. The bonds maturing on September 2, 20_ are subject to mandatory redemption, in part by lot, on September 2 in each year, commencing September 2, 2020, from sinking fund payments from the redemption fund at a redemption price equal to the principal amount thereof to be redeemed, without premium, as follows: Sinking Fund Redemption Date (SeDtember 2) Principal Amount To Be Redeemed I hereby certify that the following is a correct copy of the signed legal opinion of Jones Hall, A Professional Law Corporation, San Francisco, California, bond counsel: (INSERT OPINION HERE) EXHIBIT B Page 3 ABBREVIATIONS The following abbreviations, when used in the inscription on the face of this bond, shall be construed as though they were written out in full according to applicable laws or regulations: TEN COM TEN ENT JT TEN as tenants in common as tenants by the entireties as joint tenants with right of . survivorship and not as tenants in common UNIF GIFT MIN ACT - Custodian (Cust) (Minor) under Uniform Gifts to Minors Act (State) Additional abbreviations may also be used though not in the above list ASSIGNMENT For value received, the undersigned do(es) hereby sell, assign and transfer unto (Name, Address and Tax Identification or Social Security Number of Assignee) the within mentioned Bond and hereby irrevocably constitute(s) andappoint(s) , attorney, to transfer the same on the registration books of the Agent, with full power of substitution in the premises. Dated: Signature Guaranteed: NOTICE: The signature(s) on this assignment must correspond with the name( s) as written on the face of the registered Bond in every particular without alteration or enlargement or any change whatsoever; EXHIBIT B Page 4 . . . . Town of Tiburon STAFF REPORT AGENDA ITEM L TO: Mayor and Members of the Town co~ J Alex D. Mcintyre, Town Manager W' 2005 Refuse Collection Rate Application - Mill Valley Refuse Service FROM: SUBJECT: MEETING DATE: June 29, 2005 Mill Valley Refuse Service, Inc. (MVRS) has submitted its request for its annual rate increase. The Town has had a franchise agreement with MVRS since 1965. MVRS is requesting a one-year across the board rate increase of a 3.70% rate adjustment effective July 1, 2005. In addition, the Tiburon Town Council adopted a resolution in April 2005 which instituted a garbage impact fee upon MVRS essentially equating to an additional 3.80%. The total rate increase requested is 7.5%. A complete copy of the application is available in my office for review. The proposed rates are attached as Exhibit A. MVRS services the cities/towns of Belvedere, Corte Madera, Mill Valley, and Tiburon as well as several unincorporated areas of Marin County. The Franchise Agreement between the Town of Tiburon and MVRS guarantees an automatic cost-of-living rate adjustment each year tied to the consumer price index. This year's automatic increase would have been approximately 2.20% but the household hazardous waste costs attribute an addition 1.50%. A complete copy of the rate application is available for review in my office. Mill Valley recently approved the same 7.50% increase. In years past, the Town has engaged the services of Environmental Planning Consultants (EPC) to review and affirm the analysis supporting the rate application. For a number of reasons, the four cities/towns and the county opted not to retain EPC this year. I believe that the rate increase is appropriate. However, I would suggest that the Town join with the other three cities/towns and the county to require a mid-term evaluation of the system by EPC and to make any reasonable changes to the operation to increase efficiency to mitigate any significant increases next year. The cost for the EPC will be borne by MVRS. Recommendation It is recommended that the Town Council accept the Mill Valley Refuse Service, Inc. rate application and approve the attached Eighteenth Amendment to Franchise Agreement (Exhibit B) granting the rate increases. Exhibits A - Proposed 2005 Rates B - Eighteenth Amendment to Franchise Agreement EXHIBIT NO.-8- DEBRIS BOX RATES FOR AS OF 7/1/2005 . MILL VALLEY BELVEDERE CORTE MADERA TIBURON ALM,ALTO MV COUNTY STRAWBERRY TV, HOME 4 YD 115 115 109 112 109 10YD 271 255 260 239 229 20YD 437 411 416 385 369 40YD 873 822 831 769 738 5YD DIRT 264 270 267 252 242 lOYD DIRT 392 397 389 377 363 4 YARD 6 1/2 FT WIDE 51"HIGH 54"LONG WEIGHT 2,000 LB 5YD DIRT 12FT LONG 5FT WIDE 30" HIGH WEIGHT CLEAN NO LIMIT lOYD 12 FT LONG 5FT HIGH 5FT WIDE WEIGHT 4,000 LB 10YD DIRT 13FT LONG 8FT WIDE 3FT HIGH WEIGHT CLEAN NO LIMIT . 20 YARD 16FT LONG 8FT WIDE 54 IN HIGH WEIGHT 8,000 LB , )40 YARD 22FT LONG 8 FT WIDE 6'10" HIGH WEIGHT 16,000 LB Any overweight rolloff items will be charged at $80.00 per ton. This includes compactors, dirt, and debris boxes. MVRS Reserves the right to refuse pickup of any item loaded in an unsafe manner MILL VALLEY TIBURON 4 YD 6 4 10YD 14 8 20YD 22 14 40YD 45 27 5YD DIRT 14 9 10YD DIRT 20 13 . . . . EXHIBIT NO.~ EIGHTEENTH AMENDMENT TO FRANCHISE AGREEMENT The parties are the TOWN OF TIBURON, a municipal corporation organized and existing under and by virtue ofthe laws of the State of California, hereinafter referred as "Town," and MILL V ALLEY REFUSE SERVICE, INC." a California corporation hereinafter referred to as "Company." WITNESSETH WHEREAS, the parties heretofore entered into a written agreement dated November 12, 1965 and renewed a modified Solid Waste Management Agreement on December 6, 1995, relating to the collection and disposal of all refuse within the Town, and have amended said rates for services referred to in the agreement on several occasions, and I WHEREAS, the parties now desire to amend said agreement in the respects hereinafter set forth; and WHEREAS, the Town has heretofore held a hearing in the matter, and has determined that said further amendment is proper and in the best interests of its citizens; and WHEREAS, it has been determined that the rates charged by the Company for the services referred to herein should be modified and adjusted as hereinafter set forth. NOW, THEREFORE, it is mutually agreed that the written agreement between the parties dated December 6, 1995, and the subsequent amendments thereto, shall be amended in the following manner, effective for the period July 1, 2005 to June 30, 2006: Effective July 1, 2005, the monthly rates shall be those set forth in Exhibit A, which is attached hereto and incorporated herein by reference. These rates include and incorporate a seven point five percent (7.50%) adjustment to all rates for solid waste collection and recycling for all residential and commercial customers. Other than as herein specifically provided, the aforesaid Agreement, and the amendments thereto, are hereby ratified and confirmed to be and shall continue in full force and effect. . Eighteenth Amendment to MVRS Franchise Agreement - Adopted 06/29/05 -1- IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of this 29th day of June, 2005. . ATTEST: DIANE CRANE IACOPI Town Clerk TOWN OF TIBURON MILES BERGER Mayor MILL V ALLEY REFUSE SERVICE, INC. By: Its: Eighteenth Amendment to MVRS Franchise Agreement - Adopted 06/29/05 -2- . . .~ . . . [5) ~~~~w~ rnJ mJ JUN 2 3 2005 ill) Jocelyn McDonnell 687 Hilary Drive Tiburon, CA 94920 415-435-1365 TOWN COUNCIL LA TEMAIL #-LQ. MEETING DATE ~ -J.. 9-d( T.oWN CLERK TOWN OF TIBURON June 24, 2005 Tiburon Town Hall Tiburon Town Council 1505 Tiburon Blvd. Tiburon, CA 94929 Miles Berger, Mayor, Paul Smith, Vice Mayor, Alice Fredericks, Tom Gram & Jeff Slavitz, Councilmembers Re: 689 Hilary Drive - Major AdditionsNariance requested by Ignatius Tsang Dear Mayor and Councilmembers: The Mission Statement on the business card of Ignatius Tsang reads: Tsang Architecture creates meaningful Architecture through a thoughtful process. Our Architecture is contextual and innovative. Architecture is a celebration of Life. When Mr. Tsang introduced himself to me I told him I had a concern that he wanted to add a two-story house and I asked if he was going to live in the house or flip it. He never said he was going to flip it. He began talking about his children, their ages and what they were doing in school. I presumed, wrongfully, that Mr. Tsang intended to be my new neighbor. I have a firm belief in the WinlWin concept in my life. The first time Mr. Tsang showed me his projected Major AdditionsNariance it was a three-story house. I worked with Mr. Tsang and asked him to be sensitive to the privacy of our neighbors across the street because a two story house would impact their privacy dramatically much less a three story house. I suggested he go to a Design Review Board (DRB), meeting so he would understand the process of Tiburon, since he had never built in our community before and that he would want to get through the process as expeditiously as possible. I also suggested he contact each of the neighbors to be impacted and to also meet with them all, on a Saturday, before being on the Agenda of the DRB. I asked him to submit a lighting plan as his house was above the neighbors across the street and lights would impact their living rooms, bedrooms and privacy. Mr. Tsang said he was not required to submit a lighting plan, because the house was a remodel. When Mr. Tsang's story poles were being installed I called him to let him know the poles in the back yard were not in alignment and needed.iD be corrected before members of the DRB arrived. Friday, April 15th I heard from a neighbor that Mr. Tsang told her that he planned to sell his property to a Soccer Mom and this was the first time I heard that Mr. Tsang had no intention of being my neighbor. When Mr. Tsang met with the neighbors of 689 Hilary Drive, April 16, 2005, he presented an exquisite model of a major addition. However, this model is out of character for the existing one-story houses in the neighborhood of Hawthorne Terrace and would be more appropriate for Gilmartin Drive or Belvedere. Seven directly impacted neighbors and Mr. Tsang met Saturday, April 16th from 10:00AM to 12:30PM and expressed their concern regarding his project with the size, bulk, mass, encroachment of privacy and loss of natural sun light as unacceptable. His project would appear as a three-story structure from street level and is looking taller than the house at 30 Del Mar that encroaches on the tranquility of our neighborhood from above. Several suggested plans were made available by the neighbors during the morning meeting. Mr. Tsang told us this was his first attempt at a complete remodel and implied he knew better than we did. We all agreed we did not want him to lose money on his project and we did not want to lose the integrity of our neighborhood. , With the extension of the garage toward the front I am losing view from two windows, I would ask that the garage be moved back 6 one-half feet to return one of the two windows Mr, Tsang is taking. I would also ask that the side door exiting from Mr. Tsang garage, toward the bedroom side of my home not be placed inline with any windows of my home. . I am very proud of the unique neighborhood I live in. We do not have the strong wind of the houses further up the hills.ofTiburon, We have a flat street and I have watched upwards of a dozen children at once playing ball andtag on this level block. Neighbors talk to each other. I have a strong community spirit, as my history of being a volunteer and past board member of St. Hilary's will show. In addition I have worked with the Town of Tiburon, Lou Bnmini, a representative of CalTrans and St. Hilary's when I was Hawthorne Terrace President. The neighborhood and St. Hilary's worked together to garner sufficient warrants to qualify to get the Traffic Light installed at Rock Hill and Tiburon Blvd. I worked with my community, personally recommending the Handicapped Parking access near the bus stop at the foot of Gilmartin during my years on the Park and Open Space. I take issue with the mission statement reading: Tsang Architecture creates meaningful Architecture through a thoughtful process. One day, standing in his driveway, Mr. Tsang suggested that the shadow on my windows showed that if he went up to the height he wants, it would not impact my loss of daylight from my windows. I explained to Mr. Tsang that the loss is when you look out the window, not into the window, His thoughtful process also used existing pine trees as story poles. I am disappointed that on two separate occasions he and those he hired to do the work needed to be asked to install story poles correctly. I am sure using pine trees as story poles does not comply with Town of Tiburon guidelines. The neighbors have encouraged Mr. Tsang to expand his structure on a one-story level. Mr. Tsang does not want to incur the expense of cutting into the hill. Mr. Tsang told me at the Saturday meeting, he needed to go up and have the large mass of his structure because he wanted to take advantage ofthe great school systems between St. Hilary's and Reed Union School District and the future children needed a larger house. I pointed to houses on the block and showed him which homes raised one, two, three, four, five (the house on the other side of Mr. Tsang's property), and seven children. All families in a one story home. . My neighbors and myself are not responsible for what ever the Realtor told Mr. Tsang to make the sale. The neighborhood should not be punished if Mr. Tsang took the word ofthe Realtor and did not do his own research properly, Other potential buyers of property on Hilary Drive have done their due diligence to [md the possibility of going up to a second or third story before they bought the property. Mr. Tsang did not. I am asking the Tiburon Town Council please consider the long existing quality and integrity of our single story neighborhood and to not set a precedent for second story homes on the 600 block of Hilary Drive. The insensitive design to this neighborhood consists of mass, bulk, blocking natural daylight and imposing on the privacy of neighbors. There is a conflict of exterior elements, stucco and wood, no lighting plan, no landscape plan and no drainage plan. On the color story board, the gold stucco first presented and the green stucco for the second presentation are both called ICI Seashore. Mr. Tsang's Mission Statement: Architecture is a celebration of life, please help Hawthorne Terrace Homeowners to celebrate the continued life of our family neighborhood with its single story homes. On behalf of the Hawthorne Terrace Homeowner's, please accept my appreciation for your continued volunteer time and effort as you work for the continued betterment of Tiburon, Sincerely, Jocelyn McDonnell 415-435-1365 ~ ". ... '-"\ \~~,'S \., \" -.." .-:-~.- .----~.,~. f---- r-. \__'0, . '\.", .' \ '\ "'-...", I .'-.-',:--:->, I C,l-./\/'-...-\/---l) '.,.~ j ~---_. -- ..'----- . .. ~ ~~~~w~ rm lfl1 JUN 2 3 2005 I!)) '. I qr;:".\ (.'\' ~ R., " ~I ""\ ~ 1,,:.'. . .! 11 .! j;-'~ :.,.} . U. a.'oJ V~~1&.l-..0~'-' TOWN CLERK TOWN OF TIBURON June 24, 2005 lYfEMAIL , eTiburon Town Council Town Council Chambers 1505 Tiburon Blvd. Tiburon, CA 94920 (0 ~_.......".. rFn=~">>,,,rMG f'UiTE.h. l:.7 F.M'iim:m~ ~ t1\tl - <. U~l - - --Or Subject: Appeal of Site Plan and Architectural Review Application for 689 Hilary Drive, Tiburon. Dear Members of the Council, Mr. Ignatius Tsang purchased the property at 689 Hilary Drive in March 2005. Mr. Tsang proposes to make major modifications to the property. In that connection, Mr. Tsang invited his neighbors to review his proposed additions. Several residents of the neighborhood attended the presentation on Saturday, April 16, 2005. We appreciate Mr. Tsang's courtesy. During his presentation, Mr.Tsang informed us that in addition to reducing side yard setback from legally required limits, he planned to add a second story to the house. We also learned that Mr. Tsang does not plan to live in the house himself but to sell the house after making the additions and improvements, hoping to make a profit from the transaction. Almost every person, who attended the presentation, expressed opposition to the addition of a second story. In spite of the opposition, Mr. Tsang did not modify his application to delete the addition of a second story to his property. A hearing on the application was held on April 21, 2005, before the Design Review Board (Board). At _he hearing, several persons expressed their concerns about Mr. Tsang's proposed additions. In particular they xpressed their opposition to the addition of a second story. Mr. Tsang was advised to scale down the proposed additions to the property. Mr.Tsang filed a revised plan for the proposed additions on May 9, 2005. A further hearing was held on May 19, 2005. At that hearing, parties expressed that even the modified plans did not address their concerns. In response to the concerns expressed, Mr. Tsang made minor modifications to his proposal. The Design Review Board approved Mr. Tsang's proposed modifications along with his proposal to build a second story. Even with all the modifications, the approved plans still do not address the major community concerns raised at the hearings, in particular the addition of a second story to a single story neighborhood. This is particularly important because all the homes on both sides of Hilary Drive between Rock Hill Drive and Mara Vista Street are single story homes. The neighbors want to maintain the single-story character ofthe community. Approving a second story installation for one dwelling would set a precedent (as it has in other areas) for other homes requesting additions of a second story which will in most instances take away views of the Bay, San Francisco, Sausalito, Belvedere, Mount Tamalpais and the hills and impose on the privacy of residents. In addition, it will block sunlight from the house at 687 Hilary Drive. In addition, Mr. Tsang has not submitted any plans for landscaping, lighting or drainage with the filing of his application for modifications. .The unavailability of such plans makes it impossible to determine the totaI' impact of the proposed modifications. We are fully aware that change is inevitable, but when the change unnecessarily decreases the quality of life for others, then it is inexcusable. We believe that if Mr. Tsang was to move his planned expansion to the back of his lot, it would eliminate the need for a second story and consequently, the impact and hard feelings this project will create for the neighborhood. . Further, we would like Mr. Tsang's house to fit in the context ofthe neighborhood, a design that would ot scream "Look at me". His proposed design will create a home that willbe out of proportion to the other homes in the neighborhood. , Finally, while we have no objection to Mr. Tsang making a profit by speculating in real estate market in our neighborhood, we do take a great exception to the profit being made at our expense. Accordingly, we the . undersigned request that the Town Council reverse the Design Review Board's decision to allow a second story addition to Mr.Tsang's property. . '.:~ ~~'\J'-~~_ /< \\9 ~ . \ c~"j, '(\ "-- ~<C:i\)\..v\- ~_ \ .~ AND! c;A~e bl? ~ Il.<A ~y VIZ. 1{ eu f.<.,o ,J en 2;l ~L., \~~j'-l ~ \ : \::;V'I/'G \."\ '- ~IMI" . j fjJIi!1/ r;,/;: /7<:!/J / . ;/ A'(/.(/ /. . . /t ~..k- ~ /\ (J/~,zcY .' ~ L ()i , A' (). v~ flQ-- v () . '. MmdllU~ A1 AmaU !0LA- IA Jj~ U '4Jr,;v/~ J.~ !;J2 ~, 0 /..,/J/). . :J~~V{e~ (r1;h~ ~(,:.. \ / <\J I~. D j) J .. ,?=\ 9 4 .J ;'\-;V L/!fI(L(7~ tJ j), [~'AkL :$, , /l' ~ //7 ~.~..1f'/)/0~A.. /~2~./p... ...49!:::/LC;;'~ //\~b L->'. G //.// ,t.pc I~~ \+ lUf\-.6L /\ \V ~ ye :2- r- /? ;- C~'. S 11/. /~~ '1; ,'V--....I.~\ ~JEA ,0 .M. C~ P"(IUlJ. ~ ~ ~. kiel'.(JL ,/ . ,-,- A- C:: .~. L /2c-~ "-' \.-/ / / '-- . - ,--:j \ b 9c; H/L A--[! f.- ;J// Ti L1? {/:;9~/t---, c~ Co ~3 }-h'\/A(j VI i-J e. I 't bur 0 (\ / I ;/, ;1 I. (;~u.r r /11 a..r t( C/ I r(l<..' (', '-1'7. C,., . ~ \)\..<;"', Il !:-?c" "rj,\."-.. &/13 (1\L ~, . (0 q;l- /tI~'{ ~'" (J r; 7 1-- IMt'~r 1()I.n . & c, ~ l-h LA1'l. '-( Wi 19 / (/ L17f(J5t< t 97 ;-1/ L If It Y i? ~ to 'J 7 rj, I.~ &"~ C 9 Y /1) l--flZtj j)/~ 2-0 ) a hAt J/2_ ~ ~ s-- )+) L1Y7 UJb~ . ~.~. /,". J1 ('J ~, '; .._ ,,~'" /_ ~, /rh ~>z;>.r-- ~ L /-. I V /.-/ c_ // r__/ '- ~.. (;qC) f-j~j/t..ljLLi) ~Yr CWJAC yUlfiLLl3 ~'-LGLL- . ~C ! tl . ~ iJ~k/f 5- 1-li(tti1'j ~r, rd/~ ~/1C0~_v~ G.:~ ~~~~ {:~. ,,:~~VJ~ .~.~ c;, r;) 7 l+( laFyD y / V 'C G, ~ ~("rJ .Dr b ';;,3 H, \)'\~ D." 'lie) ~..\4V~~ /l. {j '7 Lj0 it )1~7'^ -IkL ,// JJj~ c~ i/S /-~j (:I- 2 v( -,ttl~../~ (., ~~. CJ ~- ' ~ ' " ), .... VAf\JNC2. 1_0!.Q.. . j "~#..~.!~.,v~~.Cl. .;1&.: 1iC~_ . If~/.. "-' ~y~ Gi:/{:/L ~ 'C t-r:r~ ~ Cf ~ ~.~ fa .Co~ / /-/~ t/";;~C'( , /:1 .~ JJ,~ ru- i' , 4- r{ (JfJ-U~V{;/~ Ct' / , "" '~\, .' ~ . ~~ ~,~ ~\'-~~~. . /iil~un~~ ffi] JUN 2 3 Z005 ~ IDWN CLERK .TOWN OF TIBURON Jean M, Stewart 696 Hilary Dr. Tiburon, Ca. 94920 PhA15-847-3223 Fax (212) 208-4546 . To: The Town of Tiburon Design Board / Kirk Beales Town Hall 1505 Tiburon Blvd. Tiburon, Ca, 94920 TOVVN COUNCIL LATE MAIL' 10 MEETING DATE ~ -29-t1C June 19,2005 Re: The June 29th hearing for the renovation project at 689 Hilary Dr. Dear Mayor, Miles Berger, Council Members, Paul Smith, Alice Fredericks, Tom Gram & Jeff Slavitz; As a resident less than 300 feet from the proposed major renovation project at 689 Hilary Drive, part of the Hawthorne Terrace development, I hereby notify the Tiburon Town Council of my opposition to the magnitude of the new owner Mr. Tsang's proposed remodel and addition. . Mr, Tsang invited the residents Saturday on April 16th, to view his plans and built scale model that he would be using for the design review hearing on Thursday April 21, 2005, Seven neighbors were in attendance, most of which would have a direct impact from the proposed project. The neighbors in attendance, spent 2 l;2 hours with Mr, Tsang and expressed concerns about the following issues: 1. the magnitude of a second story does not fit the character of the neighborhood 2, the neighbor next door will lose sunlight from the second story 3, 'the next door neighbors and the 2 homes directly across the street would lose privacy due to the excessive height of about 40 feet. * ( see below) 4. 4, No lighting plan has been prepared to show a house of that square footage which is double to the other homes on Hilary Drive, and the impact ofthe amount of light emitted from the large numbers of windows on the two story home at night. 5, The fact that this home will set a precedence from this point forward, that all single story homes can be converted to two stories which will impede residents views, due to the nature of the percentage of gradation of the topography. . . . . 6. We were aware that the listing realtor of the property David Gilbert had told Mr. Tsang he could build a two or THREE story since there was only a hill behind him and no residences with views to impede. 7. We were also aware that this property was merely a profit property to "flip" for him and that we understood his concerns were not the same as ours since he would not be living there. 8. The style of the home is not in fitting with the character or scale of the neighborhood. There is no home on Hilary Drive in the 600 Block that resembles anything like this, . Understanding Mr.Tsang's desire to maximize his return by building the largest square. footage property, the neighbors had the following counter proposals for Mr. Tsang: 1. push it back towards the rear of the structure as not to impede their privacy or right to sunlight due to the extreme height 2. make a single story only and add square footage in the back of the property, by cutting into the hillside 3. reduce the numbers of window on the second story 4, draw a proposed lighting plan, landscape plan and drainage plan Mr. Tsang has deceived the neighbors on more than one occasion. The mere fact that he is an architect, has his own construction crew, and built several "spec homes' in the past seems to give him more arrogance, Mr.Tsang basically stated in meetings with him, that he knows what types of homes people will want to buy and that if we don't like his plans then that is unfortunate because he can not please everyone he has a right to do what he wants with his property, since he hopes it will sell to a "soccer mom". I do hope that the Tiburon Town Council understands that the magnitude of this project is detrimental in many ways to the integrity and future ofthe neighborhood as well as invading the rights to privacy of the immediate residents. I do hope you give serious considerations to the residents and their views, as most of them have been the original owners of these homes and this neighborhood is a community that should not be compared to any other neighborhood in Tiburon. I understand that the Town of Tiburon is not alone in these conflicts of spectculators denigrating lovely neighborhoods such as the one I love and live in. ely, ~_~C '_ UiA '~ d::cJ T I f) (.) R. 0 IV low J) Co 1..1 /} c:::. II.. J ~ 05" 7, 8 v /? a N .75 L up. TI B (.) R ~,..; C A " c) u ,(I e... ::2.0.... ..:t..ooS- . '7tf9.:.2..a Jij) ~~~~W~ rriI fIl] J U N 2 3 Z005 I.!)) 1\.11 p 111 E E R 5 f) r:: T -1-/ E C c:llJ Me:. I <.. '. J.QWN CLERK T.GWN OF TIBURON 5 UGJi;(.T: W R. I T 1'/2 .v c. "''''' .., >:#7" co "-/ c.F K AI/ /Vi N\~77E~ 8€./N] C.OIV'7 IOE~Eo ";IV JUN'l.. %...,./::2..00S' i?e 9A1{OIN'j PAR.CEL No Ol9-.2.I/-o7' PVR.:>U'.olAh 70S E= c .,. / UJ t..5 CJ 0 'I d,t. 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Nt! 03 9- ;;z. tl-o 7 MAY 'J- ~ () Cj7e~ 7/ 7ft/l'7 IF )J- f 1'1. leA NT''') SE(;oA/l? $7().I!.7~ 'I/S R 1<: H7 -riJ t>,ft:>1 E ~ 7 (J rllc~ 5rtJlUtf" A#?/ 7f1AT I...()H HOLPE1{S. THA,//c' '1 & V FOr<, o THE /{ A (... TEll.. ;VA"'- E f'EAI.o'-T'f Fat. ,4l3cvE O~ SOME \..fOUr{ yo I.J /'I.f'1'Rl>ClE ()F TH-/~ ,/0 V f( ~ (p,,/~E H/~ 7c ?(Ft..IIV q"".s,q ,t.Jrf7I./C4"v1'S /f[;(J.C/~S1"".5 .;!;etJll .5FC"V,J7 R t/ # W 17 If Il (.. (... F- (..1/ V of E I' 7'- G c CJ IV 5' ( P /Z. R. A T I Oil--' r;)F TJ-fE /!v'jJTITVTIIII , ,HIS RAOfC"ti.. c.HA !\/'t€. r~ r7rr- . J"P""-- A9AJA,v' R. e S 1 P 8# T ~9tfHI,-ARY 'T18v1l()/!I( Ctl p~ qlf1:J-o Noel D.. & Jennifer S. Isaac 20 Del Mar Drive, Tiburon, CA 94920 Tel: 415-7895354 LATE MAll #-A- . Tiburon Town Council Town Council Chambers 1505 Tiburon Boulevard Tiburon CA 94920 TOV\f~)J COUNCIL LATE rV~AIL' 1'0 JUN 232005 June 23, 2005 I'll:lr,-~T~f\'f;'~ r;';'AT~ !J :.J,., O~ ""I"r> ''''''''''''1'' l;:~J!j;~"'a.; ~ ~]v._~ ~,.,'fK ~ '....." ."", ;J!~.l;,Al'Ji"ilf'".h:~~U\\"!.,':::j~'.),,'::' '",d,...n '., ~I~.. .:..~lJ, ,''''~, - TC)V\iN ()[:::T~Bur~:()l'--! Re: The appeal of the Site Plan and Architectural Review Application for 689 'Hilary Drive, Tiburon. Dear Members of the Town Council This letter is in support of the appeal that has been filed in regards to the DRB's decision to conditionally approve the plans submitted by Ignatius Tsang. . As stated in our letter to the DRB dated April 19, 2005 the planned addition would not adversely affect our views. Our greater concern is that approval of the second story addition is another step in the erosion of the integrity of our neighborhood. Considering the volume and spectrum of design applications that are received in the Town the DRB' does an excellent job in carrying out its charter. However mistakes are occasionally made. For example, just over 5 years ago the DRB approved the design of the house that now stands at 30 Del Mar Drive next to our home (see attached picture). This two-story house replaced a single story home much like those in our neighborhood. At the DRB meeting held on April 21, 2005, when the initial plans for 689 Hilary Drive first came up for approval, one member of the Board described the 30 Del Mar house as an abomination.! It probably would not be approved today. . . . . The house at 30 Del Mar is on the perimeter of our neighborhood, but its presence is now felt by all of us who live here. We do not want additional approvals of second story additions to be the thin edge of the wedge that drives itself into our neighborhood, thereby. destroying its unique character forever. We do not have a problem with the developer, Mr. Tsang, remodeling his property, but we strongly believe that the final approved design should reflect the character of our neighborhood as a whole. We therefore would 'implore the Town Council to overturn the DRB's conditional approval of a design which does not meet with that objective. Yours truly, affi JlIJZJ1:2<~ --- Noel & Jennifer Isaac 30 Del Mar Drive, Tiburon . . . . . . LATE MAI:L # / D 697 Hilary Drive Tiburon, CA 94920 . Tel (415) 435-9958 Fax (415) 435-6246 I' ;"1 ,) ':l 2005 uUh L .J PLAj\.J'j\1Jl'J,C:. Di\/lS}()i"j 'TCiVV!\l C)j::T!3URC)!\J June 23, 2005 Mayor Miles Berger Members of Town Council Town of Tiburon 1505 Tiburon Boulevard Tiburon, CA 94920 Re: Appeal of Site Plan and Architectural Review Application for 689 Hilary Drive, Tiburon Gentlemen: My feeling about the drastic changes proposed, as mentioned in my prior letter to the Planning Commission, has not changed in the least. Just standing in front of 689 Hilary Drive and viewing the storyboards make me shudder. It will be totally out of proportion to the size of the lot and the entire block of existing residences. My position is that the decision reached by the Planning Board should be overruled. Thus, leave the neighborhood as is - a single story residential area. Sin~ 7l1~ [D) ~~~~W~ rm ~ JUN 2 3 2005 lW Paul Marin TOWN CLERK TOWN OF TIBURON TO\fVN COUNCil LA TEMAIL # (0 ~-L9-()r .."" MEETING DATE - Town of Tiburon . AGENDA ITEM 10 STAFF REPORT TO: FROM: SUBJECT: MEETING DATE: PROJECT DATA MAYOR AND MEMBERS OF TOWN COUNCIL DANIEL M. WATROUS, PLANNING MANAGER 689 HILARY DRIVE; APPEAL OF DESIGN REVIEW BOARD DECISION TO APPROVE A SITE PLAN AND ARCHITECTURAL REVIEW APPLICATION FOR THE CONSTRUCTION OF ADDITIOijNAN EXISTING SINGLE-FAMILY DWELLING JUNE 29, 2005 REVIEWED BY: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. .. ADDRESS: OWNER/APPLICANT: APPELLANTS: ASSESSOR'S PARCEL: FILE NUMBER: LOT SIZE: ZONING: GENERAL PLAN: FLOOD ZONE: . BACKGROUND 689 HILARY DRIVE IGNATIUS TSANG JOCELYN MCDONNELL, ANDY GARDE AND JOE KELLER 055-211-07 20508 12,000 SQUARE FEET R-1 (SINGLE-FAMILY RESIDENTIAL) MEDIUM HIGH DENSITY RESIDENTIAL C On May 19, 2005, the Tiburon Design Review Board approved a Site Plan and Architectural Review application to construct additions to an existing single-family dwelling, with a Variance for reduced side yard setback, on property located at 689 Hilary Drive. The owners of the neighboring properties at 687,693 & 699 Hilary Drive have now appealed this decision to the Town Council. PROJECT DESCRIPTION An application was filed for Design Review approval for the construction of additions to an existing single-family dwelling on property located at 689 Hilary Drive. The property is currently developed with a one-story residence. A proposed second story addition would include a family room and bathroom, with a deck extending toward the front. Most of the interior walls of the first floor would be removed, with a new master bedroom suite occupying the space of two existing bedrooms; the kitchen relocated to the site of the other two existing bedrooms; a reconfigured living room, dining room and entry; and three new bedrooms and two bathrooms in place of the existing family room, shop and rear portion of the garage. An addition to the front of the house would extend the garage toward the . street, but in compliance with the required front yard setback. Town of Tiburon STAFF REPORT The lot coverage on the site would increase by 458 square feet to a total of 2,780 square feet (23.2%), which is less than the 30.0% maximum lot coverage permitted in the R-1 zone. The floor area of the existing house would be 2,874 square feet, which is less than the maximum floor area for a lot of this size. A small roofline change along the right side of the house would extend into the required side yard setback, thus requiring a variance for reduced side yard setback. REVIEW BY THE DESIGN REVIEW BOARD The Design Review Board first reviewed the application at the April 21, 2005 Design Review Board meeting. The original project design included the construction of a new upper floor to the house and significant renovations to the ground floor. The new upper floor would have included a master bedroom suite, three additional bedrooms and bathrooms, and a second family room. Much of the interior of the ground floor would have been demolished, with four bedrooms eliminated and new configurations for the living room, family room, kitchen, dining room and entry. Much of the existing family room and a portion of the existing living room would have been demolished as well. At that meeting, several neighboring property owners objected to the overall mass and bulk of the proposed additions, and to possible conflicts between the two-story design and the . predominantly one-story character of the surrounding neighborhood. The Board shared some of these concerns, and recommended that the height and/or size of the second story addition be scaled back. The application was continued to the May 19 meeting to allow the applicant time to revise the plans for the project. The applicant subsequently submitted revised plans for this application. The revised project design substantially decreased the size of the proposed second story addition by placing most of the new floor area on the ground floor. The revised second story addition included only a family room and bathroom, with a deck extending toward the front. At the May 19, 2005 meeting, the neighboring property owners again raised concerns over the impact of the second story addition on the character of the neighborhood, a well as concerns over privacy impacts that could be caused by the second story deck and possible view impacts. The Design Review Board considered the testimony of the neighbors, and determined that the reduced scale of the proposed second story addition would be compatible with the overall character of the surrounding neighborhood, and would not result in significant view or sunlight impacts on nearby homes. The Board acknowledged that the proposed second story deck could result in unwanted privacy impacts on neighbors, and required that the deck be eliminated. The Board then unanimously (4-0) voted to approve the subject application. On May 31, 2005, the appellants filed a timely appeal of this decision. BASIS FOR THE APPEAL There are three grounds upon which the appeal (Exhibit 1) is based: . June 29, 2005 page 2 of 6 Town of Tiburon . STAFFREPORT . . . . . . . . , . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Ground #1 homes. The proposed additions would block views and sunlight for adjacent Staff Response: The subject house is adjacent to one-story residences on either side owned by two of the appellants at 687 and 693 Hilary Drive. During the review of this application, the owner of the home at 687 Hilary Drive expressed concerns that the proposed second story addition would block sunlight into her home. The original project design included a second story addition with a height of 28 feet, 11 inches that would have been located only 9 feet, 9 inches from the shared side property line with the home at 687 Hilary Drive. Much of the addition would have been situated directly opposite the clerestory windows of the adjacent residence. This potential concern was noted in the April 21 Staff report, which stated that "the adjacent home to the west at 687 Hilary Drive has clerestory windows on its eastern side, facing the subject house. The proposed second story addition would appear to block a substantial portion of the sunlight that these windows currently receive." . The revised project design reduced the height of the second story addition to 22 feet, 10 inches, and pulled the second story area 19 feet, 7 inches from the existing side of the house, with a setback of 29 feet, 4 inches from the side property line shared with 687 Hilary Drive. Making the proposed second story area lower and pulling it further away from the neighbor should eliminate any potentially significant sunlight blockage that could be caused by this addition. TheTown Council is encouraged to visit the appellant's home to view the story poles and evaluate any potential sunlight impact on this adjacent dwelling. The owner of the adjacent home at 693 Hilary Drive has indicated that the second story addition would block views of the hillsides beyond. The Tiburon Hillside Design Guidelines generally promote protection of views from primary living areas. This adjacent residence has limited views toward Richardson Bay and Sausalito from the front of the house, with some hillside views to the side. The Design Review Board uses the following portions of the Hillside Design Guidelines to evaluate the potential view impacts of a project: . Goal 3, Principle 7 (C) of the Guidelines states that "blockage of [the] center of view [is] more damaging that blockage of [the] side of view." The approved second story addition would not interfere with the center of the view from the home at 693 Hilary Drive, but would only be visible from the side of this house. . Goal 3, Principle 7 (D) of the Guidelines states that "blockage of important objects in the view (Golden Gate Bridge, Belvedere Lagoon, Sausalito, Angel Island) is more difficult to accept than blockage of other, less well known landmarks." The approved second story addition would not block existing views of the adjacent dwelling toward Richardson Bay and Sausalito, but would only block some views of the hillsides beyond the subject property. . Based on these policies, any view impacts that the approved second story addition would have on. the adjacent home at 693 Hilary Drive would appear to be consistent with the intent of the Hillside Design Guidelines. June 29, 2005 page 3 of 6 STAFF REPORT Town of Tiburon Ground #2 The proposed second story addition would be inconsistent with the character of the surrounding neighborhood and would set a precedent for similar future construction in the vicinity. Staff Response: Section 4.02.07 of the Tiburon Zoning Ordinance contains guidelines to be utilized in the review of Site Plan and Architectural Review applications. In reviewing these applications, the Design Review Board is instructed.to evaluate whether "the height, size, and/or bulk of the proposed project bears a reasonable relationship to the character of existing buildings in the vicinity." This section further states that "a good relationship of a building to its surroundings is important. For example, in neighborhoods consisting primarily of one-story homes, second-story additions shall be discouraged, or permitted with increased setbacks or other design features to minimize the intrusion on the neighborhood." The Hawthorne Terrace subdivision was constructed in the 1950's and 1960's, and consists primarily of one-story homes, many of which are relatively unchanged since their original construction. Several homes with second story additions exist in the subdivision, although none are situated in the immediate vicinity of the subject property. Several two-story homes are located uphill from the site on Del Mar Drive, but are situated outside the Hawthome Terrace subdivision. In reviewing the initial plans for the project, the Design Review Board objected to the mass and . bulk of the original project design, which included a second story addition of approximately 1,685 square feet adjacent to much of the front and sides of the existing house, with a maximum height of 28 feet, 11 inches. The Board acknowledged the concerns over construction of a second story in a neighborhood consisting primarily of single-story homes, but noted examples in the similar Bel Aire and Belveron neighborhoods in which second story additions were designed in a manner that was compatible with the surrounding neighborhood. The Board continued the hearing on this application to allow the applicant the opportunity to address these concerns by redesigning the project. The revised project design moved most of the new floor area from the upper floor to the main level of the house. Only a family room and bathroom remained within approximately 775 square feet of floor area in the proposed upper floor, with the second story set back a considerable distance from the front and sides of the lower floor, and the overall height reduced by over 6 feet. The revised design is consistent with the requirement of Section 4.02.07 for "increased setbacks or other design features to minimize the intrusion on the neighborhood." The revised project design substantially reduced the visual mass and bulk of the proposed second story addition, and is similar in design to modest second story additions that have recently received favorable attention in the Belveron neighborhood. This type of more modest second story area represents an appropriate transition between most of the single-story homes in the vicinity and the larger two-story homes above the site. The Design Review Board indicated that the approval of this second story addition did not set a precedent for similar projects in the vicinity. Chair Beales noted that other similar applications in . this neighborhood had been previously denied due to view impacts that would have been June 29, 2005 page 4 of 6 . TOWN OF TmURON ~1AY '~, '\ 2005 NOTICE OF APPEAL D!\ii:':';iON . r.)~:: 1\8 l;,j~::"(){\l APPELLANT Address: -- Ate JOCFLYI\I !V,)btJwJ EI-l- 6&7 1-11 L.AA-j l>R.tv~ "-fJ B II 1<0 tJ ~5- 1.36 ~ 4"!'!'y 6ARbc b93 H 1t-AR.y bRItIl: -r 180 /tON 4-35.~5].r JOt KeLLt;~ 699 1~ll..A (l.y l>R lVe \, eo P.. oN 4-~'5 o44--t- (Home) Name: Telephone: (Work) ACTION BEING APPEALED Body: T~E DeSi(1f\J ~e\/I~W bDA~ Date of Action: 'MA " I? { lon,s Name of Applicant: I GNA-rlu S \.s~l'JL7 . Nature of Application: Mlljop. A:l>'ilITlbNYVAR1A"Ce- AT 68~ bLu.Alty ])R,Vf GROUNDS FOR APPEAL (Attach additional pages, if necessary) 5e-E ATT Aa-\-M E NT A ~o~~ "[OWN CLERK :rnwN OF.TIBURON EXHIBIT NO. />. Date Received: ~ '3 /--0 S- Date of Hearing: r- -tV ~ )~c1-J-/!e.o( ( /k'l ?,~ ~(W{~d ~ G) /Uik ~. / f~~<- ( OF) Last Day to File: t)/ J ( ---0 S- r~.I..-f'\ ~ Fee Paid: ~l.I v . January 2004 May 31,2005 Ms. Diane Crane Iacopi Town Clerk Town of Tiburon 1505 Tiburon Blvd. Tiburon, CA 94920 MA Y 'I 2005 Re: Filing of Appeal to Desi~ Review Board's Decision Dear Ms. Crane Iacopi, Attached is our Notice of Appeal to a decision made by the Tiburon Design Review Board at its meeting of May 19,2005. Because of vacations, graduations and other plans, we will need about three to four weeks to prepare our presentation before the Town Council. Accordingly, we request that this appeal be placed on the agenda for the Town Council's meeting of July 6, 2005. Very truly yours, ~,. ,......-....... ""'---c].'.'..' '. ").' . ....." . . , Jocelyn McDonnell 687 Hilary Dr. Tiburon, CA 94920 ~ ATIdy Garde 693 Hilary Dr. Tiburon, CA 94920 (j/ / '. .(jJ/!M/. /; / . 1fi2' / , - . ~ >! ,", i~e Keller ~99 Hilary Dr. Tiburon, CA 94920 EXHIBIT NO. ( f, 2- D'F 3 . . . . . . Town of Tiburon STAFF REPORT caused by the upper story additions, whereas the subject second story area would not significantly block water views for any nearby homes due to its location at the foot of the slope leading up to the adjacent homes on Del Mar Drive. Ground #3 The landscaping, lighting and drainage plans submitted are inadequate to determine the extent of the potential impacts of the proposed project. Staff Response: Landscaping plans are not required to be submitted with Site Plan and Architectural Review applications for additions to existing houses, but are always required for applications involving construction of new dwellings. Accordingly, this application did not include a landscaping plan, and the Design Review Board did not rely on any proposed landscaping to mitigate any potential concerns with the project. If the application plants vegetation in the future that results in view or sunlight blockage for nearby residents, these neighbors would utilize the provisions in the Tiburon View Ordinance to restore such views or sunlight. Similarly, detailed lighting plans usually do not accompany Plan and Architectural Review applications for additions to existing houses. However, the Design Review Board uniformly imposes a condition of approval on all. such applications stating that "all exterior lighting fixtures must be down light type fixtures. The lighting fixtures indicated on the submitted plans are not approved, and shall. be replaced with appropriate down lights." Plans submitted for building plan check for this project will be checked by Planning Division Staff for compliance with this requirement Drainage plans are not required to be submitted with any Site Plan and Architectural Review application, but are required to be submitted and approved as part of the building plan check process. Drainage concerns are outside the purview of the Design Review Board. CONCLUSION The Design Review Board followed the Hillside Design Guidelines and the guidelines for Site Plan and Architectural Review in its review of this project. The Board determined that the ma~s and bulk of the original project design was inconsistent with the character of the surrounding neighborhood, and gave appropriate direction to the applicant to modify the submitted plans. The revised project design substantially reduced the second story floor area, height and overall. mass and bulk of the proposed additions, and was found to be consistent with the design of second story additions that have been approved in other predominantly single-story residential neighborhoods in Tiburon. The design was found to be consistent with the Zoning Ordinance requirement for "increased setbacks or other design features to minimize the intrusion on the neighborhood" of such second story projects. The reduced scale of the second story was found to not have significant impacts on the views or sunlight of neighboring homes. The decision of the Design Review Board is supported by visits to the subject site and the adjoining properties, as well as evidence in the record. June 29, 2005 page 5 of 6 Town of Tiburon STAFF REPORT RECOMMENDA TION 1) That the Town Council indicate its intention to deny the appeal; and 2) That the Town Council direct Staff to return with a Resolution denying the appeal, for adoption at the next meeting. EXHIBITS 1. Notice of Appeal 2. Application and supplemental materials 3. Design Review Board Staff report dated April 21, 2005 4. Design Review Board Staff report dated May 19, 2005 5. Minutes of the April 21, 2005 Design Review Board meeting 6. Minutes of the May 19, 2005 Design Review Board meeting 7. Goal 3, Principles 7 (C & D) of the Hillside Design Guidelines 8. Letter from Dominic and Margaret Oi Mare, dated April 12, 2005 . 9. Letter from Joe Keller, dated April 12, 2005 10. Letter from Carol Weiss, dated April 13, 2005 11. Letter from Jenny Crowe-Innes, dated April 15, 2005 12. Letter from Anand and Birgitta Garde, dated April 19, 2005 13. Letter from Noel and Jennifer Isaac, dated April 19, 2005 14. Letter from Jean Stewart, dated April 19, 2005 15. Letter from Jocelyn McDonnell, dated April 20, 2005 16. Letter from Sammie Burke, dated April 21, 2005 17. Letter from Meredith, Steven and Robert Chandler, dated April 21, 2005 18. Letter from Anand and Birgitta Garde, dated May 17, 2005 19. Letter from Dominic and Margaret Di Mare, dated July 22,2005 20. Submitted plans .- . I .~ ...,}:> L.I.L!l~~ ~. ~c . 0 ~/ 11:\1- ./~ .'~\.- \.~~~; ('I\~.~~'.' vc';~~ ~::,.:: ..<"6'.:~"':~//' .' .\' tVl,a-,l'i (., I . . . June 29, 2005 page 6 of 6 . . . ATTACHMENT A Grounds for Appeal At its meeting of May 19,2005, The Tiburon Design Review Board (Board) approved, with certain modifications, the application ofIgnatius Tsang to make modifications and to add a second story to an existing single story residential dwelling. Mr. Tsang's application was considered at the Board's meeting of April 21, 2005. Various parties, mainly neighbors, opposed the approval of the proposed modifications. The Board directed Mr. Tsang to scale back his proposed modifications to address the concerns raised by various parties. Mr. Tsang filed a revised plan for the proposed modifications with the Town of Tiburon on May 9,2005. Mr. Tsang also install~d revised story poles on the house. Even the modified plan did not address many of the concerns raised by parties. The proposed new second story additions along with a 20' x 4' deck will still block the view of the hills behind for.some neighbors and deprive them of privacy in some bedrooms and backyards. At the May 19,2005 meeting, Mr. Tsang further modified his proposal by replacing the standard side windows with dormer windows (with a window sill height of6'above the floor) on the north and south walls of the second story. The Board concluded that the installation of dormer windows, along with elimination ofthe second story deck, will alleviate concerns raised by the parties. Accordingly, the Board approved the proposed modifications. . , We believe that the installment of dormer windows and elimination of the second story deck will reduce some privacy concerns. However, we still would be deprived of our views of the hills and sunlight. Further, all the homes on both sides of Hilary Drive between Rock Hill Drive and Mara Vista Street are single story homes. The neighbors want to maintain the single-story character of the community. Approving a second story installation for one dwelling would set a precedent for other homes requesting additions of a second story which will in most instances take away views of the Bay and impose on the privacy of residents on west side of Hilary Drive. Also, the material combination of wood and stucco proposed by Mr. Tsang clashes with the aesthetics of the neighborhood In addition, Mr. Tsang has not submitted any plans for landscaping, lighting or drainage with the filing of his application for modifications. The unavailability of such plans makes it impossible to determine the total impact of the proposed modifications. We also believe that the lot size of Mr. Tsang's property is large enough to accommodate the proposed expansion without building a second story and following the Town of Tiburon's Design Guidelines for Hillside Dwellings. Furthermore, there would still remain sufficient space to create an attractive outdoor living area. Based on the above, we request that the Town Council reverse the Board's decision to a second story addition to Mr. Tsang's house. EXHIBIT NO. r. 3 oF3 TOWN OF TIBURON LAND DEVELOPMENT APPLICATION tlAr~ 2 8 Z005 ~E OF APPLICATION TC:'.,')!\ ()C . 0 Conditional Use Permit Design Review (DRB) 0 Tentative Subdivision Map 0 Precise Development Plan 0 Design Review (Staff level) 0 Final Subdivision Map 0 Conceptual Master Plan 0 Variance 0 Parcel Map 0 Rezoning/Prezoning 0 Sign Permit 0 Lot Line Adjustment 0 Zoning Text Amendment 0 Tree Permit 0 Certificate of Compliance 0 General. Plan Amendment 0 Underground Waiver 0 Other SITE ADDRESS: PARCEL NUMBER: APPLICANT REQUIRED INFORMATION MH I ~~ ~ PROPER. TYSIZE:15')(I~=I'20COSf -. - . ZONING: -R-\ OWNER OFPROPERTY~_ MAILING ADDRESS: CITY/STATE/ZIP: . . PHONE NUMBER, 0\-l _ - ~ <[.IS)4b 1- b I PIc:2 APPLICANT: (Other than Property Owner) MAILING ADDRESS: CITY 1ST A TE/ZIP: PHONE NUMBER: FAX ARCHlTECT!DESIGNER/ENGINE~R: *" MAILING ADDRESS, ~ _ CITY 1ST A TE/ZIP: PHONE NUMBER: (41 - _FAX c;J ~~-C( 3.?6 ~ Please indicate with an asterisk (*) persons to whom correspondence should be sent. ~ I, the undersigned owner (or authorized agent) o(the property herein described, hereby make application for approval of the plans submitted and made a part of this application in accordance with the provisions of the Town Ordinances, and I hereby certify that the information given is true and correct to the best of my knowledge and belief: I understand that the requested approval is for my benefit (or that of my principal). Therefore, if the Town grants the approval, with or without conditions, and that action is challenged by a third party, I will be responsible for defending against this challenge. I therefore agree to accept this responsibility for defense at the request of dle Town and also agree to defend, indemnify and hold the Town harmless from any costs, claims or liabilities arising from dle approval, including, without limitation, any award of attorneys fees that might result from the third party challenge. Signature: (If ~ z.~ 2OJ~ , Date: AttihgBody: . . XHIBIT NO. -Z f. l bF(p MRR 28 2005 8:58AM T~i'.IN OF TIBURON "', 4 "4352438 F.l DESIGN REVIEW SUPPLEMENTAL APPLlCA T10NFB~lHj ]1:;,' MAR 2 8 Z005 . pi ease fill in the information requested below (attach separate sheet as needed):< PL~.NNif\1G DIVISION ., 1. 8tiefly describe the proposed project: _ ~6-rA IN.. M() 1'l€. ~N l50 o/D(; F~I'~.:JE,BURON . . ~~_ ~;t~ ~ M~~rOU~e:'4'n~f ,"'1'etL1 or>- 1iJ~<;' . ~Bt;l1ICMVf - ~;; ~J I _ ;~~11~ u~;:.r I,;~ ex . ReMooeL. ?1~S'r 'FVJo~, ~o . ___~_ f/--- _e __D_~ _'f'Ota-ll,)~ P}n}@ JrftKJrc;". ~XI<?i1toJ~ . ,';,klC-AC,€- TO ~p.J . ,. .' . '.. . , . 2. . Loiarea in square feenS-ection 1.05.12*): 12,000 ~.F. Zoning: ..t<:, - \ . .' 3.. Proposed use of site (example: single family residential, comrnercial,etc:); gxisting ., ~IN'LiG- r,A-VllV( l-W.M6 . . .. . Proposed 4:)1"'~l..e.' ,:::.....MIL'-l. ~M~. 4. Describe any changes topark:lng areas including number of parking spaces, tumaroundor maneuvering areas, f;Xlt?TIN.& PA:1t.K.lto..\G.' FbfL ..~c:A-p-s 1'0 p..6r--tAIN . 1S'XI ?11N'- .. D(l4I/f;w~,( . "to . ~k1N A1Jl) 1cvJ(11,*1M~ ftJ~ kOt:nl1o'tJJrl. f~tJ~. - ::::",:~!~~:~::~HJ;j.tEM!.:::;::i:~ '.,:::"~':'~:;;..:...' ,:..~'~::~: --:'. ;::. . ;'.>~?~n:;: :.F~ ;~~:~;~;\l~~~);:;' Yards (Setbacks from property, line)(Sec;tion 1.05.25)* . . Front ,2. 0 ,ft. 7(, ft. " ,ft. 1.7~ ft. No CftJrNG.C ft. + I 2. c;j, ," ft. No Ck' JrN (;6 ft. No CH'1rNve ft. TI1.~ ft. - Ie; 3 sq.ft - \, to/a Rear Right Side Left Side . Maximum,Height (Section 5.06.07)" 14ft. Z '32- 2 sq~ft. Lot Coverage (Section 5.06.08)* Lot Coverage as Percent of Lot Area .. fi~.1 % Gross Floor Area I ~ ~ 8. S (Section 1.05.06t sq.ft. 1" \ '2..C::, t. S sq.ft. N t'T IN C-LJJr> I ~ (, (; ~^v ~ ..ction numbers in parentheses refer to specific prov;, DESIGN REVIEW SUPPLEMENTAI... APPLlCA nON FORM 2.0 ft. ft. ft. 88.5 ft. - ft. ft. ~ ft. ft. 'ft. tl.7$ ft. ft. ft. U3.~ ft. ft ft. 21~~ sq.fl:. sq~ft. ' sq.ft. lS % 1Sr I % % "3'}.,.OO sq.ft. $q.ft. sq.ft. S'XHIBITNO. 2 P 2- CF-(p Town of Tiburon . 1505 1iburon Boulevard' Tiburon, CA 94920' P.415.435.7373 F. 415.435.2438 . www.tiburon.org . COMMUNITY DEVELOPMENT DEPARTMENT MAR 3 0 2005 Planning Division. (415)-435-7390 www.tiburon.ora . APPLICATION FOR VARIANCE. A Variance is a form of regulatory relief available when a strict or literal application of zoning development standards would result in practical difficulties or unnecessary physical hardships for an applicant. These difficulties and/or hardships must be caused by physical conditions on, or in the immediate vicinity of, a site. Please refer to Section 4.03 of the Tiburon Zoning Ordinance (Section 16-4.3 ofthe Tiburon Municipal Code) for additional information regarding Variances. WHAT VARIANCE(S) ARE YOU REQUESTING? Condition Zoning Ordinance Requirement Existing Condition Your Application Proposes Magnitude Of Variance Requested Front Yard Setback Rear Yard Setback . Left Side Yard Setback Right Side Yard Setback ~ ,_ 0 II "'-0 I, b LO (, Lot Coverage Height Parcel Area Per DwellingUnit Usable Open Space Parking Expansion of \l" onconformity )ther (Please describe): , ,PPLlCATION FOR VARIANCE TOWN OFTIBURON Rev, 05102 Page 1 EXHIBIT NO. 2- r. 30FlO <.1300 Hm" St.." 5" h"d,co (A 941ll . www.tsangarchitecture.com t 415.399.9302 f 415.399.9303 e info@tsangarchitecture.com R~- ""''''''Vr-D "" ....' Ii . I.... ~. . ....! 1 ~.bS-_.....~~i' lk....! p, OD . 2005 r'\t i\ - April 4, 2005 F)i_Af~i~:i';G DIVISiON TO\:'J'r"J OF T!~:URON Town of Tiburon Planning Department 1505 Tiburon Boulevard Tiburon, CA 94920 Attn: Daniel M. Watrous Planning Manager Re: Single Family Residential Remodel at 689 Hilary Drive Zoning District: R-1 Dear Daniel, A variance to the side setback requirements of8 feet for an R-1district is requested for this home remodel at 689 Hilary Drive. The original house was built in 1954 and has a setback of 6 feet from the east property line. We wish to remodel the residence and construct a second floor family room above the existing first floor and align a portion of the addition with the existing 6 foot wall. We believe that the request for a variance is consistent with the criteria established by the Town of Tiburon and our appeal is elaborated in the following points. . 1. Special circumstances . . 689 Hilary has a lot which is only 75 feet wide compared with lots across the street which are from 83 feet to 91 feet wide, with all sizes of lots accommodating a standard house which is 59 feet 3 inches wide. 689 Hilary has steep topography at its rear reducing its buildable area considerably. It has an existing building with an existing side setback of 6 feet from its east property line shared with 691 Hilary. We have gone to special efforts to retain as much of the exterior envelope of 689 Hilary as possible and to set back our addition to the rear of the property rather than create it at the front in order to show respect to the existing character of the street. Aligning the first and second floor walls allows the incorporation of the existing foundations and walls at a considerable cost savings. The area under consideration is very small and consists only of a 2 foot wide space which is 15 feet long and it will not make the building appear unusually large. . . . . EXHIBIT NO. 2- ~. 4 DF-(P .BOO Mn'" S,"', S.. h",i", CA 941ll www.tsangarchitecture.com t 415.399.9302 f 415.399.9303 e info@tsangarchitecture.com . · We have discussed the two story addition with the adjacent neighbor at 691 Hilary, Mr. Honda. Our neighbor approves of our project in its current form. · The proposed house'design is for an integrated design rather than one which looks like a haphazard addition to an existing building. .This design relies upon symmetry, continuation of buildjng lines, walls and window locations over the 2 floors. We therefore ask that 689 Hilary be granted special consideration in application of the setback requirements. A strict application of the Tiburon Zoning Ordinance would require the addition to the east side of the home at 689 Hilary to be moved back 2 feet from the existing location of the first floor. Given that other neighbors can create second storey additions to their existing houses which are aligned with the first storey, requiring us to set back our addition would deprive us of privileges enjoyed by other properties in the vicinity. Enforcing the setback would also result in a less than desirable appearance to the proposed building adversely affecting the neighborhood. 2. Granting of the variance would not result in a special privilege · As discussed above, the current lot width is from 8 to 16 feet narrower than several other properties in this vicinity. It is severely disadvantaged at present. Granting this variance would reduce some of this disadvantage and would not be construed as granting a special privilege to this property. Therefore, the proposed variance would not grant a special privilege that is inconsistent with other homes in the vicinity. . 3. Strict application of the Zoning Ordinance would result in practical difficulty or. physical hardship · Aligning the first and second floor walls allows the incorporation of the existing foundations and walls at a considerable cost savings. If we set the addition back by 2 feet we will require special waterproofing and flashing which may create a potential source of constant water infiltration which would be detrimental to the structure of the house. Setting the addition back would create unnecessary physical hardship. · The proposed house design is for an integrated design rather than one which looks like a haphazard addition to an existing building. This design relies upon symmetry, continuation of building lines, walls and window locations over the 2 floors. Enforcing the setback would result in a less than desirable appearance to the proposed building and would also adversely affect the neighborhood. . EXHIBIT NO. -Z ~. '5 DFfc .2300 MM'" S,,," S.. hmi,,, CA 94111 www.tsangarchitecture.com t 415.399.9302 , 415.399.9303 e info@tsangarchitecture.com . 4. Granting of the variance would not be detrimental to the public welfare or injurious to other properties · The owner has met with the existing owners of adjacent properties and has not encounters conCl;lrns about the project. They approve of the current design and are glad to see the improvement of the run down and vacant house at 689 Hilary which in its current form is harmful to the desirability and security of the neighborhood. The proposed family room is roughly 45 feet from the street property line and 105 feet from the rear property line. Therefore, the setback variance would not be detrimental to the public welfare, and in contributing to a good design could actually be interpreted to improve the public welfare and the value of properties in the vicinity. In conclusion, the applicant submits that this request for a variance to the side yard setback dimension of 8 feet meets the criteria established by the Town of Tiburon. It represents a continuation of existing conditions in the addition at an upper storey, is not detrimental to the neighbors and would create a positive addition to the neighborhood. Thank you for your consideration. . . EXHIBIT NO. L fi Co oF-(p Town of Tiburon STAFF REPORT AGENDA iTEM 06 TO: DESIGN REVIEW BOARD FROM: PLANNING MANAGER WATROUS SUBJECT: 689 HILARY DRIVE; FILE #20508 SITE PLAN AND ARCHITECTURAL REVIEW FOR THE CONSTRUCTION OF ADDITIONS TO AN EXISTING SINGLE-FAMIL Y DWEWNG, WITH A VARIANCE FOR REDUCED SIDE YARD SETBACK MEETING DATE: APRIL 21,2005 PROJECT DATA: ADDRESS: ASSESSOR'S PARCEL: FILE NUMBER: PROPERTY OWNER: APPLICANT: LOT SIZE: ZONING: GENERAL PLAN: FLOOD ZONE: DATE COMPLETE: 689 HILARY DRIVE 055-211-07 20508 IGNATIUS TSANG SAME 12,000 SQUARE FEET R-1 (SINGLE-FAMIL Y RESIDENTIAL) MEDIUM HIGH DENSITY RESIDENTIAL C APRIL 1, 2005 . PRELIMINARY ENVIRONMENTAL DETERMINATION Town Planning Division Staff has made a preliminary determination that this proposal would be exempt from the provisions of the California Environmental Quality Act (CEQA) as specified in Section 15301. PROPOSAL The applicant is requesting Design Review approval for the construction of additions to an existing single-family dwelling on. property located at 689 Hilary Drive. The property is currently developed with a one-story residence. The proposed project would involve the construcll6n of a new upper floor to the house and significant renovations to the ground floor. Much (f the interior of the ground floor would be demolished, with four bedrooms eliminated and new configurations for the living room, family room, kitchen, dining room and entry. Much of the existing family room and a portion of the existing living room would be demolished as well. The new upper floor would a master bedroom . suite, three additional bedrooms and bathrooms, and a second family room. EXHIBIT NO. 3 P. i DFt( Town of Tiburon . STAFF REPORT . ... ... ... .......... ........ ................ ......... 1 The floor area of the existing house would be increased by 1,262 square feet to 3,200 square feet, which is the maximum floor area for a lot of this size. As a result of the removal of several portions of the existing house, the lot coverage on the site would actually decrease by 153 square feet to a total of 2,169 square feet (18.1%), which is less than the 30.0% maximum lot coverage permitted in the R-1 zone. The proposed upper floor addition would extend to within 6 feet of the east (right) side property line. As the R-1 zone requires a side yard of 8 feet, a variance is requested for reduced side yard setback. A color and materials board has been submitted, and will be present at the meeting for the Board to review. The structure would be finished with light brown colored stucco siding and grey and white trim, with dark grey roof tiles. ANALYSIS Design Issues . This lot is situated on the uphill side of Hilary Drive. Adjacent properties to the rear along Delmar Drive are located at elevations well above that of the site of the subject house. As a result, the proposed second story addition should not interfere with the Richardson Bay views of these neighboring homes. Large mature trees uphill from the house would also provide screening of the existing and proposed portions of the structure. The proposed upper floor would extend above the footprint of the existing house, which is roughly in line with the locations of the homes on either side of the property at 687 and 691 Hilary Drive. . The proposed upper floor would therefore not loom over the rear yards of either adjacent lot. The western side elevation of the proposed upper floor addition would include two small, high bathroom windows and one larger bedroom window. The eastern elevation would include one small bathroom window, two larger bedroom windows and a larger family room window. Although these windows are likely too high to create privacy impacts for the ground floor living spaces of the adjacent homes on both sides, the bedroom and family room windows could create unwanted privacy impacts on the rear yards for those properties. A large redwood tree to the rear of the home at 687 Hilary Drive would likely screen the views from the windows on the western side of the proposed addition. On the eastern side of the addition, the bedroom windows would beset well back from the common property line with the home at 691 Hilary Drive, and the family room window would be directly opposite the adjacent home, lessening any potential privacy impacts from those windows. . The adjacent home to the west at 687 Hilary Orive has clerestory windows on its eastern side, facing the subject house. The proposed secOnd story addition would appear to block a substantial portion of the sunlight that these windows currently receive. The Design Review Board should evaluate the potential sunlight impacts on this adjacent residence and determine if alterations to the proposed addition are necessary to address this situation. EXHIBIT NO. :5 p, '2 OFt( April 21, 2005 page2of5 STAFF REPORT Town of Tiburon The existing house was constructed with a 6 foot east side yard setback which was consistent with the Marin County zoning requirements in effect at that time, prior to the incorporation of the Town of Tiburon. The adjacent home to that side at 691 Hilary Drive was also developed with a 6 foot setback to the shared side property line. The proposed upper floor addition would extend this nonconforming condition along the same setback line. However, only the 15'3" width of the family room portion of the proposed addition would encroach into this setback. Zoning Staff has reviewed the proposal and finds it to be in conformance with the development standards for the R-1 zone with the exception of the previously noted side yard setback variance. Variance In order to grant the requested variance, the Board must make all of the following findings required by Section 4.03.05 of the Tiburon Zoning Ordinance: 1. Because of special circumstances applicable to the property, including size, shape, topography, location, or surroundings, the strict application of this Ordinance will deprive the applicant of privileges enjoyed by other properties in the vicinity and in the same or similar zones. . As previously noted, the existing house was developed with a 6 foot eastern side yard setback, which was consistent with the Marin CountY zoning requirements in effect at that time, prior to the incorporation of the Town of Tiburon. The rear of the lot is somewhat steep, limiting the ability to add onto this portion of the lot. These characteristics creati special circumstances that limit the areas and extent of construction on the site; the strict application of the side yard setback requirement on such a lot would deprive the applicant of the development potential enjoyed by other homes in the vicinity. 2. The variance will not constitute a grant of special privileges, inconsistent with the limitation upon other properties Ih the vicinity and in the same or similar zones. Numerous other properties in the R-1zone and similar single-family residential zones have received variances for redUCed side yard'$etbacks to continue the line of an existing nonconforming residence. 3. The strict application of this Ordinance would result in practical difficulty or unnecessary hardship. The strict applica~on of the required side yard setback would force the proposed . upper floor additiqn to be set back 2 feet from the line of the existing house EXHIBIT NO. 3 r, ~ OF l( April 21, 2005 . page 3 of 5 Town of Tiburon . STAFF REPORT . . .. .... ............... Ii.. ..... ... .................. .......... below. Although such additional setbacks are often encouraged to provide appropriate articulation for upper floor additions, the limited width of the addition within the required setback, and the placement of the remainder of the addition 22 feet further back from the side property line, should provide adequate visual articulation for this addition. Therefore, requiring the addition to be further set back from tne side property line would place a hardship on the property owner tt:lat is unnecessary for the desired visual appearance of the addition. 4. The granting of the variance will not be detrimental to the public welfare or injurious to other properties in the vicinity. As described above, the proposed project would not create any significant visual or privacy impacts on neighboring homes. From the evidence provided, Staff believes that there is sufficient evidence to support the findings for the requested variance. Public Comment As of the date of this report, one letter has been received regarding the project from the owners of the home across the street at 692 Hilary Drive, raising concerns about the visual scale of the proposed addition when viewed from the street. Another letter has been received from the owner of 699 Hilary Drive, objecting to the principle of second story homes in this neighborhood. RECOMMENDA nON The Board should review this project with respect to Zoning Ordinance Sections 4.02.07. (Guiding Principles) and determine that the project is exempt from the provisions of the California Environmental Quality Act (CEQA) as specified in Section 15301. If the Board wishes to approve the project, Staff would recommend that the attached conditions of approval be applied if the project is approved. ATTACHMENTS 1. Conditions of approval 2. Application and supplemental materials 3. Letter from D.L. & M.R. Di Mare, dated April 12, 2005 4. Letter from Joe Keller, dated April 12, 2005 5. Submitted plans EXHIBIT NO. S p, 4: Or~ April 21, 2005 page 4 of 5 Town of Tiburon STAFF REPORT AGENDAITEM~ .......................................................................................... .. TO: DESIGN REVIEW BOARD FROM: PLANNING MANAGER WATROUS SUBJECT: 689 HILARY DRIVE; FILE #20508 SITE PLAN AND ARCHITECTURAL REVIEW FOR THE CONSTRUCTION OF ADDITIONS TO AN EXISTING SINGLE-FAMILY DWEWNG, WITH A VARIANCE FOR REDUCED SIDE YARD SETBACK (CONTINUED FROM APRIL 21, 2005) MEETING DATE: MAY 19, 2005 .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. SUMMARY The applicant is requesting Design Review approval for the construction of additions to an existing single-family dwelling on property located at 689 Hilary Drive. The proposed project involves the construction of a new upper floor to the house and significant renovations to the ground floor. The original project design involved demolition of much of the interior of the ground floor, eliminating four bedrooms and reconfiguration of the living room, family room, . kitchen, dining room and entry. A new upper floor was proposed, including a master bedroom suite, three additional bedrooms and bathrooms, and a second family room. The proposed upper floor addition would have extended to within 6 feet of the east (right) side property line, necessitating a variance request for reduced side yard setback. This application was first reviewed at the April 21 , 2005 Design Review Board meeting. At that time, several neighboring property owners objected to the overall mass and bulk of the proposed additions, and to possible conflicts between the two-story design and the predominantly one-story character of the surrounding neighborhood. The Board shared some of these concems, and recommended that'the heightand/or size of the second story addition be scaled back. The application was continued to the May 19, 2005 meeting to allow the applicant time to revise the plans for the project. The revised plans for this application have now been submitted. The revised project design would substantially decrease the size of.the proposed second story addition by placing most of the new floor area on the ground floor. Most of the interior walls of the first floor would be removed, with a new master bedroom suite occupying the space of two existing bedrooms; the kitchen relocated to the site of the other two existing bedrooms; a reconfigured living room, dining room and entry; and three new bedrooms and two bathrooms in place of the existing family room, shop and rear portion of the garage. An addition to the front of the house would extend the garage toward the street, but in compliance with the required front yard setback. The proposed second story addition would now include only a family roof!1 and bathroom, with a deck extending toward the front. With the revised project design the lot coverage on the site would increase by 458 square feet . to a total of 2,780 square feet (23.2%), which is tessthan the 30.0% maximum lot coverage . EXHIBIT NO. 4 P . I DF '-! Town of Tiburon . STAFF REPORT . . .... ......"........ ...... ... ..... ..... ........... ...... permitted in the R-1 zone; this represents an increase of611 square feet of lot coverage from the previously submitted design. The floor area of the existing house would be 2,874 square feet, which represents a decrease of 326 square feet from the previously submitted design, which is also the maximum floor area for a lot of this size. Although the second story addition would not extend into the required side yard setback, a small roofline change along the right side of the house would still require a variance for reduced side yard setback.. ANAL YSIS Design Issues The revised project design would substantially reduce the visual mass and bulk of the proposed second story addition. The smaller upper floor would be centered above the existing house, similar in design to modest second story additions that have recently received favorable attention in the somewhat similar Belveron neighborhood. This type of more modest second story area would represent an appropriate transition between most of the single-story homes in the vicinity and the larger twcrstoryhomes above the site. In a(:ldition, the proposed garage and deck additions would accentuate the lower floor of the house in relation to the upper floor and provide appropriate visual articulation for the building. The reduced scale and central location of the upper floor area should eliminate any potential concerns over sunlight impacts on the adjacent residence at 691 Hilary Drive. The Design Review Board should carefully review the proposed windows on either side of the proposed family room to determine if these windows would result in unwanted privacy impacts on the hOMes to either side of the site. As. previously noted,.the existing house was constructed with a 6 foot east side yard setback which was consistent with the Marin County zoning requirements in effect at that time, prior to the incorporation of the Town of Tiburon. The. proposed roofline. change for the lower floor of the house would extend this nonconforming condition along the same setback line. However, only the upper floor family room portion addition would no longer encroach into this setback. Zoning Staff has reviewed the proposal and finds it to be in conformance with the development standards for the R-1 zone with the exception of the previously noted side yard setback variance. Variance In order to grant the requested variance, the Board must make all of the following findings required by Section 4.03.05 of the Tiburon Zoning Ordinance: 1. Because of special circumstances applicable to the property, including size, shape, topography, location, or surroundings, the strict appliCBtion of EXHIBIT NO. 4 f,2~'{ May 19,2005 page 2 of 5 STAFF REPORT Town of Tiburon .. ..... ................. ..... ... ..... ..... ....... ...... this Ordinance will deprive the applicant of privileges enjoyed by other properties in the vicinity and in the same or similar zones. As previously noted, the existing house was developed with a 6 foot eastern side yard setback, which was consistent with the Marin County zoning requirements in effect at that time, prior to the incorporation of the Town of Tiburon. The rear of the lot is somewhat steep, limiting the ability to add onto this portion of the lot. These characteristics create special circumstances that limit the areas and extent of construction on the site; the strict application of the side yard setback requirement on such a lot would deprive the applicant of the development potential enjoyed by other homes in the vicinity. 2. The variance will not constitute a grant of special privileges, inconsistent with the limitation upon other properties in the vicinity and in the same or similar zones. Numerous other properties in the R-1 zone and similar single-family residential zones have received variances for reduced side yard setbacks to continue the line of an existing. nonconforming residence. 3. . The strict appliclltlon of this Ordinance would result in practical difficulty or unnecessary hardship. The strict application of the required side yard setback would eliminate any potential changes to the roofline of the existing house. Such a restriction would place a hardship on the property owner that is unnecessary for the desired visual appearance of the addition. 4. The granting of the. variance will not "e detrimental to the publiC welfare or injurious to other properties in the vicinity. As described above, the revised project. design would not create any significant visual or privacy impacts on neighboring homes. From the evidence provided, Staff believes that there is sufficient evidence to support the findings for the requested variance. Public Comment As of the date of this report, no letters have been received regarding the project since the last meeting. ' RECOMMEN.l)ATION The Board should review this project with respect to Zoning Ordinance Sections 4.02.07 (Guiding Principles) and determine that the project is exempt from the provisions of the . EXHIBIT NO. tf Pi 3 wl( May 19, 2005 page3of5 Town of Tiburon . STAFF REPORT . . . .. .. .. . .. .. .. .. .. . . .. .. .. .. .. .. .. .. .. .. .. . .. .. '. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. California Environmental Quality Act (CEQA) as specified in Section 15301. If the Board wishes to approve the project, Staff would recommend that the attached conditions of approval be applied if the project is approved. ATTACHMENTS 1. Conditions of approval 2. Minutes of the April 21, 2005 Design Review Board meeting 3. Design Review Board Staff report dated April 21, 2005 4. Revised plans EXHIBIT NO. Lf p, 4 DF~ May 19,2005 page 4 of 5 6. 689 HILARY DRIVE TSANG, MAJOR ADDITIONS! VARIANCE . The applicant is requesting design review approval for the construction of additions to an existing single-family dwelling on property located at 689 Hilary Drive. The property is currently developed with a one-story residence. The proposed project would include the construction of a new upper floor to the house and significant renovations to the ground floor. Much of the interior of the ground floor would be demolished, with four bedrooms eliminated and new configurations for the living room, family room, kitchen, dining room and entry. Much of the existing family room and a portion of the existing living room would be demolished as well. The new upper floor would hold a master bedroom suite, three additional bedrooms and bathrooms and a second family room. A variance is requested for reduced side yard setback. Ignatius Tsang, owner and architect, stated that the house is not in good condition and could have been demolished. He acknowledged that most homes along Hilary Drive are single-story but there are second-story homes nearby. He said that he designed a four bedroom home due to the proximity of the site to St. Hilary and Del Mar Schools. He explained meetings he had with the neighbors to discuss the project design, and has proposed modifications in response to their comments. He said that he could have added to the front ofthe house, but it would block the view from his neighbor's window. He said he wanted to add a.trellis to break the verticality of the building in front. In reference to the four bedrooms upstairs, he stated that young children should be on the same floor. He said windows on the second floor would not be massive, and that the family room in the rear would respect privacy. He said the existing house was built with a six-foot side setback before the town was incorporated. He said that the ground floor ceiling height would be nine feet. He said that the house would have a 6: 12 roof slope, which could be reduced to a 4:12 slope, which is the minimum for non-tar and gravel roof, and the height would become 27 feet. He said that he would remove the window that a neighbor complained about. . Boardmember O'Donnell asked if it was necessary to have four bathrooms on the second story. Mr. Tsang responded that it was, but that he could remove a bathroom and enlarge a bedroom. Boardmember O'Donnell stated that he mentioned this in terms of reducing the floor area of the second floor. Jocelyn MacDonald stated that she was concerned about the second story design. She said that she had asked the applicant to eliminate the upper story, submit a lighting plan, and attend a Design Review Board meeting to understand building in Tiburon. She said that the house would be out of character with the neighborhood. She said that seven directly-affected neighbors had discussed their concerns with Mr. Tsang and he had stated that he would withdraw his design, but he had not. She said that neighbors have asked him to expand horizontally. She said that there is a drainage problem from the hill that should be addressed. She asked the Board to consider the integrity of the single- story neighborhood and keep it that way. She said that she represents the Hawthorne. Terrace Homeowners Association. TIBURON D.R.B. 4/21/05 EXHIBIT NO. 5" p. l tY '3 . 12 . . . Robert Chandler stated he and neighbors have raised children in their small houses. He said that he saw this as a developer building a multistory home in his neighborhood to ' make money. He said that homes in Hawthorne Terrace are small and that this house would be increased to a size far beyond that of the neighbors'. He said this structure would not be in harmony with its surroundings, as required by the original CC&Rs for this subdivision. He asked that this massive structure not be developed in his neighborhood. Jennifer Isaac showed a photograph of how a similar house affects her. She explained how that owner cannot sell the house, and suggested that the applicant consider this. She stated that she would not be directly impacted by the project. Steve Bendinelli stated that a two-story home would not fit with the character and scale of the neighborhood. He stated that privacy factors are a concern, and that the overall height of the structure would dominate other houses. He said that every letter on record opposes the project, which reafftrms the spirit and code of Tiburon. He stated Hawthorne Terrace is an area of homogeneous, simple, single-'story homes, and should be left that way. Allan Honda, representing Hardy Honda, stated that the project would have many impacts on surrounding properties. He said that the house would be out of character with other homes in the area, which are ranch style. He commented that privacy and looming impacts should also be addressed. Jennie Kreines stated that a key factor is the way the house sits on the land, about ten feet above street level, so this would appear to be a four-story building that she will have to look at. She said that the story poles show that this would be a massive structure. She asked that the Board consider asking the applicant to create a different footprint for the house. She recommended that only a partial second story be built or set the house back into the hill. She said that the current design would be an eyesore to the neighborhood. Eric Hestenes stated that the scale of the building and privacy issues are his concerns. He said that it is important that the community invest and improve their properties, but he felt that the house could be better designed to address the concerns of the community. JudyAgajan stated that the applicant showed her the plans and she did not think it would affect her because her living areas are directed toward the water; however, she believed that if one house this size is built, more would be built. She said that other neighborhoods have large homes and people who want to live in large homes should live in those neighborhoods. She said that the large amount of lights in the house would affect a lot of neighbors. Mr. Tsang said that the opposition expressed at the neighborhood meeting came as a surprise to him. He stated that this lot is larger than neighboring lots to the west, and that expanding on the ground floor would not be that easy. He said that he believes in TIBURON D.R.D. 4/21/05 EXHIBIT NO. 5" t>. z cy.::.5 13 children playing in yards, and from the kitchen and dining room, he can watch his children in the yard. He said he could reduce the size of windows or plant trees. . Bomdmember Teiser stated that the neighbors understand the story poles, and he felt that this would be a large project for the neighborhood. He stated that the project would be at the maximum floor area, and that the floor area ratio is not a right, but rather a guide to control the massiveness of a house. He said that in other neighborhoods like Bel Aire, second stories can work, but only when they are pulled in or set back so they do not present such a mass at the front ofthe house. He said that the house needs to be scaled down. Boardmember Bird stated that this would be a beautiful house and she appreciated that the applicant addressed concerns about changing the roof. She said that the height of the house in the setting of the neighborhood was the concern. She stated that the neighbors are saying they do not want a large two-story structure in their midst and are not willing to have such a precedent set in the neighborhood. She said the house would be out of character with the neighborhood. She said that a second story that would be pushed back or a 1.S-story house might be acceptable, but this design would be too large for the neighborhood. She agreed that there are other areas in Tiburon where such a large house would be compatible. She recommended that the application be continued to allow work to be done so that everyone would be happy with the project. Boardmember O'Donnell stated that precedent and scale are the issues with this project. He said that this house is out of scale with the lot. He said that the height of the house must be reduced. He said that a second story could be appropriate because it is a narrow lot that extends to the back. However, he stated the second story should be small and stealthily designed. He said there is extra room that does not need to be there. . Chair Beales concurred, adding that the house would be maxed out in floor area, which is not an entitlement. He said there are other homes in Belveron on Juno Road where the second floor was centered over the middle of the house and there is a fair amount of space on the.sides, which makes the houses less looming for neighbors. He said that a second floor could work but must be made much smaller with less height. He said that making the second floor smaller would solve a lot of problems. MIS, BirdlMcDonneU (passed 4-0) to continue this item to the May 19, 2005 meeting. E. APPROV AL OF MINUTES #6 OF THE 4/21/05 DESIGN REVIEW BOARD MEETING Amendments include: Page 1, 2nd paragraph, 2nd line to state, "...becausehe could not make it work. The whole building. . . " Page 1, 3rd paragraph, insert "completely" between "not" and "give back." Page 2, 1 st line, change "if' to "and." TmURON D.R.B. 4121/05 EXHIBIT NO. 5' f: ~ OF 3 . 14 . E. OLD BUSINESS BEFORE THE BOARD 2. . 696 HAWTHORNE DRIVE CONTINUED TO 6/2/05 ARBAB, NEW DWELLINGN ARIANCE 3. 689 HILARY DRIVE TSANG, MAJOR ADDITIONSN ARIANCE The applicant is requesting design review approval for the construction of additions to an existing single-family dwelling on property located at 689 Hilary Drive. The proposed project involves the construction of a new upper floor to the house and significant renovations to the ground floor. The original project design involved demolition of much of the interior of the ground floor, eliminating four bedrooms and reconfiguration of the living room, family room, kitchen, dining room and entry. A new upper floor was proposed, including a master bedroom suite, three additional bedrooms and bathrooms and a second family room. The proposed upper floor addition would extend to within six feet of the east (right) side property line, necessitating a variance request for reduced side yard setback. . Ignatius Tsang, architect and owner, discussed the revised plans and stated that he understood the Design Review Board's last recommendations. He described how the design was intended to accommodate various family functions, particularly with the ceiling of the ground floor open to the upstairs family room. He said that he had revised the design in accordance with the Board's and neighbors' recommendations. Boardmember Teiser asked about the color of the stucco on the second story. Mr. Tsang submitted a new color board and stated that the color would be more green than that shown on the original submission. He felt that wood siding on the second floor would tend to draw attention to the two-story aspect of the building. He said that changing the material would help visual break up the two stories. The public comment period was opened. Greg Mawani asked how long Mr. Tsang planned to live in the house and wondered if the house will be sold after the additions are made. Chair Beales responded that the ownership of the property is irrelevant to Board's review of the design of the house. Noel Isaac stated that the remodel would not impact his home, but he was concerned about how the house would impact the integrity of the neighborhood.' He said that he did not want to see a repeat of the design for the house at 30 Del Mar Drive. He said that if this design is approved, more people will want to add second stories to their homes in this neighborhood. . Joe Keller stated that he has opposed applications to build second stories in this neighborhood five times in the past 50 years, and in each case, the Board decided in the neighbors' favor. He said that the one exception was supported by the neighbors. He felt that the continuity of the neighborhood would be broken if second stories were built. He TIBURON D.R.B. 5/19/05 EXHIBIT NO. Co ~ . l t-k3' 2 said that views are important to those in Hawthorne Terrace, as the streets are stepped. He said if one person builds a second story, all those above would want to do the same to regain their views. He said that approval of this application would set the stage for building more second stories in the neighborhood. . Andy Garde stated that he agreed with Mr. Keller. He said that the proposed second story deck would look into his bedroom. He said that the second story would block his view of the hills from his bedroom window. Jocelyn MacDonald stated that the story poles look all right from her driveway, but the new story poles indicate that the second story would block the west facing view from her bedroom. She said that she preferred aspects of the previous roofline design. She asked why skylights could not replace the upper floor windows. She stated that pushing back the front of the additions would eliminate much of the impact. She said that her water view was previously taken by an addition across the street. She questioned whether trees would be damaged during construction, noting that the trees help screen the subject house from her back yard, which she uses a lot. Margaret DiMare, speaking for Janet Crow who lives across the street, stated Ms. Crow is concerned about the deck facing her and that the garage is being extended too far in. front. She felt that the new design looked like three trailers stuck together. - Mr. Tsang stated that he consulted with Planning Staff about his application and was told that second story construction is allowed in this neighborhood. He felt that he had done a good job of making changes without sacrificing the living elements of the house. He asked that the Design Review Board allow him this modest home. . Boardmember O'Donnell stated that the applicant had done an excellent job with this redesign, as the previous design was inappropriate for the site. While he acknowledged that this neighborhood feels like a series of seaside cottages, he said that there is room for second stories if the upper floor is put toward the center or rear of a house. He said that this design would work well within the neighborhood. He stated that he empathized with the neighbors, but this application must be reviewed in the context of fixing up a dilapidated home. He said that neighborhoods change over time, and change can be positive. He said that he could support the second story because there would be no view impact, and he felt that the applicant had responded well to the Board's direction. He said that the Board judges each project on its individual inerits,and that not every lot could have a second story. He noted that there is only ~ cliff behind this house. . Boardmember Bird stated that this was a very good effort to design an appropriate two- story addition for this neighborhood. She said that care had been taken to set back the second story from the front and sides, and the design addressed the concerns raised by the Board. She said that making a profit can cast a different light on an application for the neighbors, but it is an owner's prerogative to sell the house. She said that she could support the application, but recommended that the second story deck in front be removed. . TIBURON D.R.B. 5/19/05 EXHIBIT NO. Co t>, 2- or:3 3 . Boardmember Teiser stated that the applicant had done exactly what the Board asked him to do. He said that the architecture fits well within the neighborhood. He said that the front deck was unnecessary and could be removed. He felt that the stucco on the exterior of the second story calls attention to the upper floor, and that the continuation of wood siding would make the household together better. He said that there was no landscaping plan with this application and that there was a need to understand the trees and shrubs proposed. Mr. Tsang stated that he would keep most of the trees except those where the house is expanded into the front. He said that a landscaping plan is not required with a remodel. He said that he would not deforest' the area, but instead wants to have the house hidden and blended in. Chair Beales stated that he has been on the Board for the review of several second story applications in this neighborhood, noting that second stories that have blocked views have not been approved by the Board. He said that the second story would be a problem if views would be blocked, but felt that this addition would not block views. He said that there are other neighborhoods in Tiburon in which second stories are difficult, and are mostly allowed on the perimeter of the neighborhood where there would be no impact. He felt that the new design was handsome, and he appreciated the raised window sill heights on the second floor. He agreed that the deck should be removed. . MIS, Birdtreiser (passed 4-0), to determine that the project is categorically exempt from the provisions of CEQA and approve the application subject to the conditions of approval as set forth in the StaJfreport; as amended to remove the upper deck and to use the second version of the proposed roof plan with the dormers. . TIBURON D.R.B. 5/19/05 EXHIBIT NO. 0 ?~ 3 br:: 3 4 ..~- '-'- '..--..-........... .--.-.- . ,'-" -----..-.-. .-..~.._.._.-. --....... ---. ,._ ...__.u._, "_", ._. ...._ , . - ...-."- -. .-. .',-, _.. .-. - . -_... ~- -.-." .. ...-.... . ". -.. ". --. . 1--,-.. ' ,- \>>: -L \\ _. ~ ut ~'~ V-iU V-N \)>.9 rX. {lI r- . .~ I ~{ll ~~ 03: ~8 --\~ .. --\ ..l)- T_H\' ~ :T. - , ll'- y- ~-t i\S< NJU ~~ - 1\1 _-I I c>' \\' iT < \)- ,,\] y..~ :C\ ro =c -m _\; =C ~~ ()~ tU{TI o.:5( ~ C5 -<( c.' (\\ :.c -0 ~: . ' ::L Ti> I~ ~ Iv Ir- im r.. _'-\. .70 Q' C. 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I ~ ()-( t : ! ~ : ---7' ) I "( / ~: I' , I ) ~ '/ ) ~/ .. ._'.' .-.-. --.-- '.' I~ .. j j i I ; i I I i j i J>-l~ r~ P=- \,";m ~j=L --i I {\. 4)- IJI -1-\- U'" I .~~:. '::. c-;.- '- .;..--- . :<\r ,tu L. 5"-=~ _-= u 0"3: -{~ 'L :L . 0;- .\t -e~ >~ ~- p..~ fiG ~L --l -f --\ --C I.~ ~-L -\ - :-:~~.J~.-.:-.tj~ ..-. . ...~- - --.-,.......--.. -.-... .~~ 'I - -m =iic: 3::0 go, mz -fO ~m zen ... - 'o.G') ~z o ,.. <c: me. =Em .;.' r- 0_ >Z "'m ~en (") ,- -I' m.. : .. 0 .. .=4 (") :I> c: o m c fI) > t?;l0 :;.<- I-r-l C) . 1-1-4 Z ,. ~- to:!! ~ (")..; t-3 > . Z~ 0-0 ~'::D : o . OJ r- ..m .3: "TI '0 '"\';)::D . -f . :z: ~ m. ~ z ~ ~ :z: OJ o ::D . ,,- '" " ...., -- ~ 11 ~ I a, ADOS- From: Mr. & Mrs. D. L. Di Mare 692 Hilary Drive . Tiburon, Ca . 94920 . To: Tiburon Design Review Board Subject: Tsang Proposal for 689 Hilary Drive My wife and I have resided at 692 Hilary Drive since 1961. We have watched quite a few homes on our street add improvements over the years. It seemed to us that all the improvements made seemed necessary and enhanced the overall feeling of our neighborhood. We have never contested any of the home improvements made until now. We.feel compelled to do so with Mr. Tsangs proposal. . 1 .'~~ 'JD. n ~:l ; ~ ~ ~'" t. v\"., First of all I would like to commend Mr. Tsang for being truthful and honest when he . spoke to us on the matter. We felt at the time that his description of the project seemed feasible. However now that the story poles are up and we can now sense the immensity of the projected home we now feel that it is definitely. not appropriate to the neighborhood or site. First of all we think the scale to be too large for the property. It feels jammed into the space and we suspect that the neighbor on the north side will loose most of the natural light they have enjoyed over the years. We are across the street from 689 and are alarmed at the scale of the project. The fact that there is such little ''front yard" gives the proposed structure the look of overwhelming the site and the houses on either side of it. We feel the addition of a second story is to blame for this fact. I think that allowing a second story to the Tsang property will also open the door to more contiguous future events regarding second story additions. Another concern of ours is a privacy issue in that the upper stories would be able to see into the houses directly in front of it. I would add that the proposed design shown to us leaves. much to be desired and seems ordinary in every sense of the word. Yes - Hilary Drive is a series of almost identically designed houses - yet owners have done much to add to the diversity of their presentation. Mr. Tsang has assured us that the trees in front of the house will remain so as to "soften" the look of the structure but here are no guaranties that the future owners will honor this promise. lam reminded that Mr. Tsang has purchased this property not with the thought of improving the neighborhood or even in joining it as a resident but as a possible venue for financial gain. This is not to say that this is bad but that it pushes the project in a negative way - that is to get as much house as possible regardless of aesthetics or site considerations. This to us was, and is, a major factor in our decision to ask that the Design Review Board deny his proposal at this time. . /(] Ail] D. L. Di Mare /:[TI1 ./(J4 111M/...- M. R. Oi Mare MO~ If tJ-t. 'l11 (L-'lp EXHIBIT NO. 3 . . .................~........................................................-......................, Tiburon Design Review Board Re: 689 Hilary Dr. Construction Proposal ~-//I ., 10'0- For almost 50 yearsthe residents or Hawthorne Terrace (Hilary Dr. and Hawthorne Dr.) have been opposed to second stories on neighbor homes. The Design Review Boards always sided with the residents including the residents' supporting the only 2 story (4 young children, etc.) within the area, The opposition is based on many things; privacy of living and bed rooms: substantially obstructing views; settng a precedent (all the failed applications include the above 2 story); the domino effect; one resident on Hawthorne decides he would like a better -view of the bay over the Belvedere Tennis Club, the neighbor across the street goes up, his backyard neighbor goes up, his . neighbor across the street has to go up, etc. This does not include side neighbors. Etc., etc., etc. The foregoing does not include years of construction noise, . disruption, and costs. We already have one giant jukebox on the periphery of the area. Let's stop here L.J.~'e~i~' . 1 2005 EXHIBIT NO. q Apr 20 05 02:54p Carol Weiss 41b-430-(091 p.l cjay< 13S--;LY38 Di'\/;~~~;D(,j TIU:':[:O[\1 April 13, 2005 Board of Design Review Town of Tiburon 1505 Tiburon Blvd. Tiburon, CA 94920 lATE MAIL # ])~b RE: Tsang application for a 2nd story addition 689 Hilary Drive I oppose the addition of a second story. Historically, this neighborhood has opposed second stories since the development of this subdivision in 1950. . I cherish the light and feeling of space that we have in Hawthorne Terrace with our simple ranch style homes, and although the value of these homes has risen dramatically, I feel that we would lose a great deal iflarge,two story homes1were permitted to be built here. Sincerely yoW's, ~tc/~ Carol Weiss 684 Hilary Drive TibW'on, CA 94920 435-3099 EXHIBIT NO. \ D . . . e-........ -. LA,I t MAI'L i J/ ~ CROWE-INNES &AsSOClATES CONSULTANTS 1N EXECUT1VE SEARCH . April 15, 2005 Town of Tiburon Design Review Committee 1505 Tiburon Boulevard Tiburon, California 94920 APR 1 8 Z005 Subject: Tsang Proposal for 689 Hilary Drive, Tiburon Dear Design Review Committee, I am writing to you to express my concern about the proposed construction of a second- story, single-family dwelling at 689 Hilary Drive. My husband and I have lived at 690 Hilary Drive for 6 years. We love the neighborhood and pride ourselves on maintaining our home in order to enhance the neighborhood. Our home is directly across the street from the proposed construction at 689 Hilary Drive and would be significantly impacted by the proposed construction. . As background information, I met with Mr. Tsang on March 30th to .review his proposed plan for the house.Mr. Tsang is a very nice man and after reviewing the plans, I did not feel that the project would impose on our home or the neighborhood. However, after seeing the story poles on the lot this week, it is obvious that the enormous height and mass of the house (which already sits on an elevated knoll) will impact our home and others and detract from the neighborhood, which is made up entirely of single-story homes. In summary, there are several reasons why I do not support the proposed construction and feel that the proposed design should NOT be approved: 1. First and foremost, the addition of a second story to the house at 689 Hilary Drive will have a major impact on our home and the homes of several other neighbors. The proposed dwelling already sits on an elevated knoll above the street. The addition of a second story to this already elevated building pad creates an enormously high structure (1 would estimate approximately 30-40 feet above the street). I object to the fact that the second story of this proposed dwelling will be looming over other homes and looking directly down on our home, into our front yard and master bedroom suite. 2. The scale of the proposed construction is massive. In a neighborhood where one- story, single-family homes are the norm, this proposed structure will dominate the street and change the look and feel of the neighborhood. The size of the proposed structure is not appropriate for the neighborhood or the site. Before the story . EXHIBIT NO. II p, \ c:Y L 1120 MAR WEST' SUITE D . TIBURON . CALIFORNIA 94920 . TEL: 415/435-6211 . FAX: 415/435-6867 Page 2 . poles went up, I was under the impression that the home would be tucked back away from the street. This is not the case. The proposed structure sits fairly close to the street. It will stick out like a sore thumb and will detract from the neighborhood and impose on the neighbors. 3. Mr. Tsang has been very open in his intentions to build the house and sell it immediately to a new owner. Therefore, it is obvious that the reason to request a second story is to capture a greater view of the bay and thereby increase the price of the house. I do not feel that it is right or fair to the established residents to alter the character of the neighborhood for the short-term gain of someone who does not even intend to live there. Recommendation: I recommend that the second story NOT be allowed on the site. The lot is big enough to increase the square footage of the house and make it a nice family home without a second story . Thank you for your consideration. Sincerely, ~~,.~ Jgnny Cr8we- Innes President & CEO Crowe- Innes & Associates EXHIBIT NO. t\ P. "2 Oy'C- . . . .LA1E MAll # J).(, A&BGARDE 693 Hilary Drive Tiburon, CA 94920 April 19, 2005 Tiburon Design Review Board Town Council Chambers 1505 Tiburon Blvd. Tiburon, CA 94920 Subject: Application of Ignatius Tsang seeking approval of construction of additions to an existing single-family dwelling, with variance for reduced side yard set back (Project location - 689 Hilary Dr. - Assessor's Parcel No. 039-211-07 [DW]). Meeting of April 21, 2005 Dear Members of the Board, . . On Saturday, April 16, 2005, Mr. Tsang invited his neighbors to review his proposed additions. We attended the presentation along with five other neighbors. We apprec;iate Mr.Tsang's courtesy. During his presentation, Mr. Tsang informed us that in addition to the reduced side yard setback, he planned to add a second story to the house. Almost all of the planned additions are to be on the second floor. We also learned that Mr. Tsang does not plan to live in the house himself but to sell the house after making the additions and improvements, hoping to make a profit from the transaction. Mr. Tsang has put up story polesto show the outline of his proposed construction. Looking at the story poles, it is obvious that the new addition will block views of the hills from our west-facing ':vindow. In addition, the windows from the second floor will look down directly into our backyard, depriving us of our privacy. Both these factors will have an adverse impact on the value of our property. While we have no objection to Mr. Tsang making a profit from this transaction, we do have great reservations about the profit being made at our expense. Therefore, we request that the Board deny Mr. Tsang authority to add a second story to his house. . Very truly yours, \J\L~ Ob~~~ P~d and Birgifu Gar~1 EXHIBIT NO. \ l-- Noel D. & Jennifer S. Isaac T:i'i" 20 Del Mar Drive, Tiburon, CA 94920 Tel: 415-789 535.if' . April 19, 2005 T own of Tiburon Design Review Board 1505 Tiburon Boulevard Tiburon CA 94920 LATE MAIL #M, Re: 689 Hilary Drive, Tiburon Dear Members of the Design Review Board This letter is in response to the notice we received concerning consideration by the DRB on April 21, 2005 of the Ignatius Tsang application for additions to an existing single-family dwelling at the above address. . The story poles that have been installed can be seen from our back- yard, but the planned addition would not adversely affect our views. Our greater concerns are that Mr. Tsang is an architect/ developer who would like to convert the house to a two-story property, but who does not intend to live there after it is remodeled. The Rock Hill Road end of Hilary and Hawthorne Drives comprise predominantly single story homes that, as a whole, give a very pleasant feel to the neighborhood. Approval of construction of a two story 28' 9" high addition would be both out of scale and character with all the surrounding properties and would disproportionately impact the character of the whole neighborhood. To support our concern, please note that it was only five years ago that the DRB approved the construction of a two-story house of similar height next to us at 30 Del Mar Dr. That house replaced a single story home very . EXHIBIT NO. l3 'Pc [tF3 . . . much like those in the neighborhood under discussion. The impact of the two story property at 30 Del Mar Dr. is felt by both Hilary and Hawthorne Drives and the house is often referred to in derogatory terms by neighbors. We cannot imagine anyone living in the neighborhood wanting a similar additional eyesore constructed in our midst! (See attached picture.) We would implore the DRB not to approve a request by a developer which will negatively impact a neighborhood, simply so that the said developer can subsequently secure a higher sale price on the property because it has a Bay view! We shall be outof town on the date the DRB will be holding its meeting, but would ask you take into account our concerns regarding this application. Yours truly, I~ V -'"> Noel & Jennifer Isaac EXHIBIT NO. l ~ ~. z cp3 :, 0 .:P E" L /"1 Pr-R 1) 12-. . . EXHIBIT NO. {~ . ~. 3. DF 3 . . . April 19, 2005 Jean M.Stewart 696 Hilary Dr. Tiburon, Ca. 94920 PhA15-847-3223 Fax (212) 208-4546 LATE MAIL # l>-G:, To: The Town of Tiburon Design Board I Kirk Beales Town Hall 1505 Tiburon Blvd. Tiburon, Ca. 94920 Re: The April 21 st hearing for the renovation project at 689 Hilary Dr. Dear Mr. Beales & other members; As a resident less than 300 feet from the proposed major renovation project at 689 Hilary Drive, part of the Hawthorne Terrace development, I hereby notify the Design Review Board of my opposition to the magnitude of the new owner Mr. Tsang's proposed remodel and addition. Mr. Tsang invited the residents this past Saturday on April 16t\ to view his plans and built scale model that he would be using for the design review hearing this week on Thursday April 21, 2005. Seven neighbors were in attendance, most of which would have a direct impact from the proposed project. The neighbors in attendance, spent 2 ~ hours with Mr. Tsang and expressed concerns about the following issues: 1. the magnitude of a second story does not fit the' character of the neighborhood 2. the neighbor next door will lose sunlight from the second story 3. the next door neighbors and the 2 homes directly across the street would lose privacy due to the excessive height of about 40 feet. * ( see below) 4. 4. No lighting plan has been prepared to show a house of that square footage which is double to the other homes on Hilary Drive, and the impact of the amount of light emitted from the large numbers of windows on the two story home at night. 5. The fact that this home will set a precedence from this point forward, that all single story homes can be converted to two stories which will impede residents views, due to the nature of the percentage of gradation ofthe topography. * Base of the existing structure is 10 feet from street level. Adding 30 feet as proposed, makes the structure 40 feet high, over 3 stories. EXHIBIT NO. 14 :p, l (i7z.. 6. We were aware that the listing realtor of the property David Gilbert had told Mr. Tsang he could build a two or THREE story since there was only a hill behind him and no residences with views to impede. 7. We were also aware that this property was merely a profit property to "flip" for him and that we understood his concerns were not the same as ours since he would not be living there. 8. The style of the home is not in fitting with the character or scale of the neighborhood. There is no home on Hilary Drive in the 600 Block that resembles anything like this. . Understanding Mr.Tsang's desire to maximize his return by building the largest square. footage property, the neighbors had the following counter proposals for Mr. Tsang: 1. reduce the size of the second story to ~ of the size and push it back towards the rear of the structure as not to impede their privacy or right to sunlight due to the extreme height 2. make a single story only and add square footage in the back of the property, by cutting into the hillside 3. reduce the numbers of window on the second story 4. draw a proposed lighting plan Mr. Tsang decided at the close of the meeting, to delay his hearing for April 21, 2005 and would come up with another design that addressed all of the above stated issues. It seems, as of yesterday Monday April 18,2005, Mr. Tsang has decided to NOT DELAY his meeting and use the existing plans that the residents have complained about and not even bothered to notify the residents that he was going through with the scheduled hearing. . Mr. Tsang has deceived the neighbors on more than one occasion. The mere fact that he is an architect, has his own construction crew, and built several "spec homes' in the past seems to give him more arrogance. Mr. Tsang basically stated in meetings with him, that he knows what types of homes people will want to buy and that if we don't like his plans then that is unfortunate because he can not please everyone he has a right to do what he wants with his property, since he hopes it will sell to a "soccer mom". I do hope that the Design Review Board understands that the magnitude of this project is detrimental in many ways to the integrity and future of the neighborhood as well as invading the rights to privacy of the immediate residents. I do hope you give serious considerations to the residents and their views, as most of them have been the original owners of these homes and lived in them for over fifty years. Sincerely, Jean M. Stewart tl( EXHIBIT NO. ~,2- OFL, . Jocelyn McDonnell 687 Hilary Drive Tiburon, CA 94920 415-435-1365 . LATE MAIL # D~ . . April 20th, 2005 Tiburon Town Hall Tiburon Design Review Board 1505 Tiburon Blvd. Tiburon, CA 94929 Design Review Board Chairman: Kirk Beales, Boardmembers: Bird, Figour, O'Donnell and Teiser . Re: 689 Hilary Drive - Major AdditionsNariance requested by Ignatius Tsang Dear Chairman Beales and Boardmembers: I apologize for the late submission of my letter of opposition to the Major AdditionsNariance at 689 Hilary Drive. I have lived at 687 Hilary Drive for about 27 years. The Mission Statement on the business card ofIgnatius Tsang reads: . Tsang Architecture creates meaningful Architecture through a thoughtful process. Our Architecture is contextual. and innovative. Architecture is a celebration of Life. When Mr. Tsang introduced himself to me I told him I had a concern that he wanted to add a two-story house and I asked if he was going to live in the house or flip it. He never said he was going to flip it. He began talking about his children, their ages and what they were doing in school. I presumed, wrongfully, that Mr. Tsang intended to be my new neighbor. I have a firm belief in the Win/Win concept in my life. The first time Mr. Tsang showed me his projected Major AdditionsNariance it was a three-story house. I worked with Mr. Tsang and asked him to be sensitive to the privacy of our neighbors across the street because a two story house would impact their privacy dramatically much less a three story house. I suggested he go to a Design Review Board (DRB), meeting so he would understand the process of Tiburon, since he had never built in our community before and that he would want to get through the process as expeditiously as possible. I also suggested he contact each of the neighbors to be impacted and to also meet with them all, on a Saturday, before being on the Agenda of the DRB. I asked him to submit a lighting plan as his house was above the neighbors across the street and lights would impact their living rooms, bedrooms andprivacy. Mr. Tsang said he was not required to submit a lighting plan, because the house was a remodel. When Mr. Tsang's story poles were being installed I called him to lethim know the poles in the back yard were not in alignment and needed to be corrected before members of the DRB arrived. Friday, April 15th I heard from a neighbor that Mr. Tsang told her that he planned to sell his property to a Soccer Mom and this was the first time I heard that Mr. Tsang had no intention of being my neighbor. When Mr. Tsang met with the neighbors of 689 Hilary Drive, April 16, 2005, he presented an exquisite model of a major addition. However, this model is out of character for the existing one-story houses in the neighborhood of Hawthorne Terrace and would be more appropriate for Gilmartin Drive or Belvedere. Seven directly impacted neighbors and Mr. Tsang met Saturday, April 16th from 10:00AM to 12:30PM and expressed their concern regarding his project with the size, bulk, mass, encroaclunent of privacy and loss of natural sunlight as unacceptable. His project would appear as a three-story structure from street level and EXHIBIT NO. \ S- f. l of Z is looking taller than the house at 20 Del Mar that encroaches on the tranquility of our neighborhood from above. Several suggested plans were made available by the neighbors during the morning meeting. Mr. Tsang told us this was his fIrst attempt at a complete remodel and implied he knew better than we did. We all agreed we did not want him to lose money on his project and we did not want to lose the integrity of our neighborhood. When Mr. Tsang left the meeting Saturday he said he would contact the Town of Tiburon, . Monday, April 18th, and withdraw his application, create a new model and come back to the neighbors before going to the DRB. I checked with the Town Hall on Monday and Mr. Tsang had checked in with them and not asked to be removed from the Agenda. I talked to Town Staff on Tuesday and they had not heard from Mr. Tsang regarding the removal of his application to withdraw his application from this, the April 21 st DRB Agenda. This has prompted my letter of opposition at this time. . I am very proud of the unique neighborhood I live in. We do not have the strong wind of the houses further up the hill. We have a flat street and I have watched upwards of a dozen children at once playing ball and tag on this level block. Neighbors talk to each other. I have a strong community spirit, as my history of being a volunteer and past board member of St. Hilary's will show. In addition I have worked with the Town of Tiburon, Lou Brunini, a representative of CalTrans and St. Hilary's when I was Hawthorne Terrace President. The neighborhood andSt. Hilary's worked together to garner sufficient warrants to qualify to get the Traffic Light installed at Rock Hill and Tiburon Blvd. I worked with my community, personally recommending the Handicapped Parking access near the bus stop at the foot of Gilmartin during my years on the DRB. I take issue with the mission statement reading: Tsang Architecture creates meaningful Architecture through a thoughtful process. Standing in his driveway Saturday, Mr. Tsang suggested that the shadow on my windows showed that if he went up to the height he wants, it would not impact my loss of daylight from my windows. I explained to Mr. Tsang tllat the loss is when you look out the window, not into the window. His thoughtful process also uses existing pine trees as story poles. I am disappointed that on two separate occasions he and those he hired to do the work needed to be asked to install story poles correctly. I am sure using pine trees as story poles does not comply with Town of Tiburon guidelines. . The neighbors have encouraged Mr. Tsang to expand his structure on a one-story level. Mr. Tsang does not want to incur the expense .of cutting into the hill. Mr. Tsang told me at the Saturday meeting, he needed to go up and have the large mass of his structure because he wanted to take advantage of the great school systems between St. Hilary's and Reed Union School District and the future children needed a larger house. I pointed to houses on the block and showed him which homes raised one, two, three, four, five (the house on the other side of Mr. Tsang's property), and seven children. All families in a one story home. My neighbors and myself are not responsible for what ever the Realtor told Mr. Tsang to make the sale. The neighborhood should not be punished if Mr. Tsang took the word of the Realtor and did not do his own research properly. I am asking the Tiburon Design Review Board to please consider the long existing quality and integrity of .our single story neighborhood and to help us keep it that way. Re: Mr. Tsang's Mission Statement: Architecture is a celebration of life, please help Hawthorne Terrace Homeowners to celebrate the continued life of our neighborhood with its single story homes. On behalf of the Hawthorne Terrace Homeowner's, please accept my appreciation for your continued volunteer time and effort as you work for the continued betterment of Tiburon. ,.~ _~incerely ,"---: --- - '" .'.0~\':::::.,~,-;. ,/"v~ Jocelyn~rOnnell '( EXHIBIT NO. l~ P ,Z.DP?- . . LATE MAtL &1)-10 695 Hilary Dr. Tiburon Ca 94920 Tel: and Fax 415-435-1455 E-mail:robertchandler33@aol.com . April 21, 2005 Design and Review Board Town of Tiburon 1505 TiburonBlvd. Tiburon Ca 94920 r) 'I '20".'- '- I . U:) PLl'.i'~N:!JC; D!\/ISION TOWN OF Tj8Ur~ON Re: 689 Hilary Dr Request for Second Story and Expansiqn Dear Board Members We live at 695 Hilary Drive for 27 years. The proposed 2nd. story and expansion as proposed would negatively impact the enjoyment of our home. We have looked at the story poles in place. If allowed to be built, the addition will restrict the view from two of our bedrooms and our outdoor patio area. The loss of view and openness would severely restrict the enjoyment of our living in our home. . The story poles show the addition would tower over the existing single level homes in our Hawthorne Terrace Unit #2 subdivision. . The proposed addition does not comply with the C.C.& R's of Hawthorne Terrace Unit #2 subdivision regarding size and being in harmony with the community. Simply put, there are no other second story large homes in the immediate area. . . Our neighborhood wishes to continue to be homogenous in house size and design. That is why as homeowners, our community wants to stay the way we are. Please note the neighborhood representation this evening. There are no large towering houses in a neighborhood with relatively small single story homes. . The precedent effect will be established of a second story house in Hawthorn Terrace Unit #2. Other real estate speculators will attempt to do the same thing. When will it stop? Dear Board members, we and those here tonight urge you to deny the design as presented in the drawings and shown with the story poles. No second stories please. EXHIBIT NO. l7 ? llF2.- . l!~: ' Jk' hi'::;;lJ , ..---. .-' eimK 848 00:220 :~IIH5 1W/TllOIUll TIUAOI ~T l!O. 2 W11!UlJl:.Cl 1.1.. U1)()ere~ pe.rt.lea an t.ba v>merD ot c.ll t.hat oen..ain r-.l prop"'rty dlJalgnat.<od 011 t.l.. ..." fIOQt.lt.led -1t.wt.bonHI Torrll.Oo, Llnlt. II". 2, l>ar1n eo..,ly, ~l1Jorn1a", whiDh ...p IOU tllll<l in lobe ottioo of t.oo u.oorder or u'e COUIlt.y of )larin, .alate ot Calironda, '" Vol.... 7 of liap., at. PllIIV'* ,'" ntll!lUtAIl, 1t. i.a t.loo de,,1r. of U,.. 0.....1' to ..t..l>U"h tho Mt.Ur<I ot the u.. IUld O<lClUS>anoy ot t.h. WllO~. ot 8,,1.d pr-.1_o, NOW 111EllKJ'Ollli, t.h.. und."altple<1, ,,-&1"00 t.hat. ,,11 of ....10 l'ropel1.y 81lA11 b9 "..ld and "hall b. COOl'.red Ill,a h.ld by ..aoh /Juo"'/JllOr Ul1tlor t.he [allowing c",ld1t.lona, . whioh oonditione a" [or tho b..~[U ot aaid land, the bon.ofit. or t.h4 ".....ct.i n owners ot "aid laud and t.h..lr r..voot1v. 8_"a"lIO"8' .. 1. Ul plot.. in lhe tract. !Ihalll>4l known and ducriboo a3 rnid.nliaJ plot!>, ~d no st.ruoluro. ..h~ll be .Aotfll 00 any N1.1<knlW pl-ol ot.hor thanalngl.- !aatly dw.llinga, not. lo exceed t.1ft) at.orl.e in he~ht. and a one or t.IoIO car g.......gw. 2. No building to l:>e .reot.ed along ald. and "."1' "report.]" linea at. .. dl..lano. 010...1' lhan 5 r..t t.o n property line, or J t&at. 1f A gArage 1. at.t.oh.d. J. No .ro..idollt.1al lot ..h..U bo l"ellUbdlv;1.dod, .xqopt t.hut on.. or 11101'<1 lot. or- on. Ilnd " portlon ot another lot. _y bo 1'0uM1Y1.d.d int.o Dna 'tnoild1nt: lot.. 4. Ho narlous or.ofrensive t.rlldlJ ahal.l be clLrrloJ atl upon any lot., nor 8hall an,yt.hing he done t.hereon wh10h JI\IlY bo or baoo.. an llnnoyalloo or nu1aano. to tho .eighborhOo<l; no hogo, o&tl.le, hora.e, 00...., goata, ahoop, (exoopt. a/J ~1.re.1nart..r ..t. tort.h) lIlutJ.l ~ kept or uaJ.nt.a.1nO<i on a.n.r part of ....1tl property. Oog., oat.., and rabbila -.y be leopt. upon ..aid ~ Propert1, proTidod tltit they ar.. not "ept., bred or Jaaint.a1awd tor any 00_"1&1 u.. or purpoaa. 5. 3&1d property mulll 1I0t. ~ uaO<i, nor IIhal.l IU1,j pcrtion th.~! b<I u....a, tor IIlIY purpoeo oxcept. t.hat. or pnTal.. "oid_o., and tne purpo.. here1na.f'\.er proTide<! for. /110 building.., other t.han !aldly ctw.lling -.it.. ADd .appurtGilD&Dt. OI1t.bou.e., inoluding garag.a tor prlTat.a WI", .haJJ. be .reot.O<i, oonatMI<Jtod or -..1.nta1nood. on aa.1d property, nor Iahall any build1n<< OOIlot.ruotO<i or ereot.ed on ...ld property he uaO<i for e.ny ot.hor purpoM ot.h.r t.han & prl Tat. dwoll1ne lloUM or. appurtenant. outhoulJ., inol.ucU.ns garasa tor prlTate _., a.n4 JDOrO p;.M.ioulArly and .nthaut t.h. intent at lUllt.1ng tho rorllaoi~ r..t.riot.iono. Outhoue... appurtenant to aaid d-.llin<< hou.e may be Qr~tod, oonltruot~ and _intaiu.ed, prOTidO<i t.h..t. no out.b<nu. .hall be 1101"0 t.hsr.n OM st.ory in he1&ht. 6. No .truotur. llhall b. DOTed ont.o . any lot unleoo it ~. with t.he ap~ of t.ha o~tto. ho...ll1Lft..r "f.rred tel, or if theN! 10 00 o01llll1.t.t..., it. ohall oontora t.o and be in har1lOny with .x18t111& ItruOturoO in the tN.Dt.. 7. Within tho rear and .ld. lineo ot all loWa, e. I'lttht of WlaJ' n..... toot in . width La hoNlby J>roTid&d tor an" 18 hor-ob7 ....tITT1td in .nl.l d_dB t.o be here1na..f\.or d.U.....rO<i. In th. OT..,t t.hat. a r.e1dono. U oon.t.noted 1n IlUOh a poll! Uon aoo that. t.h.. pro..nt. lot Un. to not \.h. balld1.1J.. plot linG, taid rlPt. or _y ..n..l.l be looated fi.... ten in widt.h wit.hin .aid boUldinr; pJ.ot. line. 8ai4 r"-ht of. ~ -y be \Wed tor the purpo.. ot w..lIiILli.na and MJ.nt.a1.nlng ~ IIftCl ot_ _nt, gaa aP4 vahr pipe lin.. and al.Ht.rl. pclIlNr and teJ.9pbomJ lJ.rwll. .. .".--t.lIn 18 t.o ba lOGaWet error ..1.d n..... tootI IItorip_ 01 la.nd. Ovmlra of t.lM ~o lIha.ll be o.~.t.ed tor toll. de.t.na.'101l ot arq .brube 111 tho loOlAt.1IlI oC aIlT IIWlh ..ITJ.c. linetI. ~ d. ill odbldJ.Al1np .tW.l .,. ., ,be ....,.., ot t.bs ~ .. ,. " N'ftUd and DO diT1doe I..... to W....\nDM4 .-u ....... 6 ter.Jt, in ........ ... .. . , j -., i. .,... 'f .,-.'~~ j~~i .~\~ ~ :3. IHIBIT NO.--1 7 P. 2 DF 2...- ~ , ., LATE MAIL' E.~ A&BGARDE 693 Hilary Drive Tiburon, CA 94920 'I 2005 . May 17,2005 Tiburon Design Review Board Town Council Chambers 1505 Tiburon Blvd. Tiburon, CA 94920 Subject: Application ofIgnatius Tsang seeking approval of construction of additions to an existing single-family dwelling, with variance for reduced side yard set back (project location - 689 Hilary Dr. - Assessor's Parcel No. 039-211-07 [DW]). Meeting of April 21, 2005 Dear Members of the Board, On April 19 , 2005, I hand-delivered a letter (copy attached) in opposition to the proposed application. . A hearing on the application was held on April 21, 2005. At the hearing Mr, Tsang was advised to scale down the proposed additions to the property. A revised plan for the proposed addition was filed with the Town of Tiburon on May 9,2005. Also, revised story poles have been put up for the proposed construction. Looking at the revised story poles, we still believe that, even with the modified plan, the concerns raised in our letter of April 19, 2005 still remain to be addressed. The new addition will still block our views of the hills, and the south-facing windows on the second floor will look directly into our backyard and one of our bedrooms. Further, we believe that the lot size of Mr. Tsang's property is large enough to accommodate the proposed expansion without building a second story. Based on the above, we request that the Board deny Mr. Tsang the authority to add a second story to his house. Very truly yours, Jt L.......... ~... ~. ~ " -......,~.~ / . . ~ I ..vt.e; . .cv--Rk- Anand and Birgitta Garde \...1 EXHIBIT NO. \B . To: Tiburon Town Council . 1505 Tiburon Blvd., Tiburon, Ca., 94920 From: Mr. & Mrs. D. L. Di Mare 692 Hilary Dr., Tiburon, Ca., 94920 Re: 698 Hilary Dr. - Tsang addition Dear Council Members, As a resident of 692 Hilary Drive since 1961 we have seen almost every family on this street make improvements of one kind or another to their homes. Always the improvements have been in keeping with the character of the neighborhood. Requested second story additions were rigorously and successfully fought against. We hope you will support our neighbors and us by agreeing with our challenge to the design board approval of May 19, 2005. . . RECEIVED JUN 2 2 2005 TOWN MANAGERS OFFICE TOWN OF TlBURON * Regarding 689 Hilary Drive, Mr. Tsang speculated that a second story was needed because he felt that the potential of a "view" would add to the value of his proposed house. A view of Wolfback Ridge and the Bay can already be seen from the existing house on the site. * The houses across from 689 Hilary Drive already perceive the one story house as a two story dwelling due to the fact that its ground floor level is more than eight feet above street level. To allow an additional floor to the home would, in essence, force those of us across from 689 to face what will appear to us to be a towering, three story structure totally out of character with our neighborhood. * We have deep concerns that our indoor and outdoor EXHIBIT NO. iC( Sf. Llf2-- privacy will be lost to us. Our master bedroom, which faces 689, has cloistered windows which will be seen into . by viewers from the proposed second story addition. Outdoors, our front yard privacy fence will be useless in the face of a second story addition. The privacy we have enjoyed for the last 43 years will therefore be compromised. * Mr. Tsang proposes that a "family room" is essential to the potential of a sale. Why has he not been challenged to extend the proposed structure in the back of the site? Second story additions have been an issue this neighborhood has fought against for many years. We find it sad that a real estate speculator has arrived j with no intention of living here, to change all of this. This neighborhood should be allowed to keep its nearly 50 year . continuity of character intact. This is not a "run down" neighborhood in need of oversized houses that feel like they belong elsewhere. We respectfully ask that Mr. Tsang not be allowed to build his speculative house with a . second story. . 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TOWN OF TIBURON STAFF REpORT ITEM NO. -.11 MEETING DATE: JUNE 29, 2005 To: TOWN COUNCIL ~ From: SCOTT ANDERSON, DIRECTOR OF COMMUNITY DEVELOPMENT~ Subject: ZONING ORDINANCE TEXT AMENDMENT TO ADD PRO IONS REGARDING ECONOMIC EXCEPTIONS; FILE #Z2005- INANCE-- INTRODUCTION AND FIRST READING Date: June 21, 2005 Reviewed By: BACKGROUND At its meeting of June 15,2005, the Town Council considered a zoning text amendment creating an application process for "Economic Exceptions" in order to address potential takings claims prior to final action by theTown. The Town Council held a public hearing but took no formal action on the item. Members of the Council expressed concern about the following: 1) The content and scope of the list of information and materials required to be submitted for the Economic Exception application (Section 16-7.4(a). 2) The amount of time (originally ten days) allowed for the applicant to gather said information and materials (Section 16-7.4(b). 3) The length oftime potentially needed to conduct the Economic Exception application review process, including retention of economic specialists/consultants by the Town. 4) The wisdom of adopting an essentially untested application process. Councilmembers also expressed a desire to hear the opinions of Vice-Mayor Smith on this matter before taking any specific action, due to his expertise in real estate law. ANALYSIS '\ Staff offers the flowing brief comments on the concerns listed above, in order of appearance. 1) The list of materials required for submittal of an Economic Exception application is based closely on the model ordinance created by the Institute for Local Government (ILG), which draws upon existing case law by requesting the types of economic data that the courts have used in deciding takings lawsuits. Information regarding current fair market value of the property was purposely excluded from the ILG (and Town) list. The list attempts to elicit valid and useful economic information regarding a property without being onerous. Tiburon Town Council Staff Report June 29. 2005 1 .. 2) To address the concerns about limited time to submit the requested information, Staff has . added Section 16-7 .2(b) that would allow additional time to submit the materials. This provision also protects the Town by requiring extensions from statutory deadlines where needed. The prior ten (10) day provision has been left "blank" in Sections 16-7.3(d) and 16- 7 .4(b) so that the Council may specify a number of days if ten is not acceptable. 3) Staff acknowledges that the Economic Exception application process is new and untested, and that it is unknown how long and/or how smoothly such a process would unfold. The draft ordinance attempts to reasonably accommodate both the applicant and Town through provisions for additional time for the applicant and time extensions for statutory deadlines for the Town when needed. Town Staff should take reasonable steps to anticipate foreseeable needs, such as preparing a list of economic consultants who could be retained on short notice for the Town's review purposes, and who would already be familiar with the Town's ordinance. 4) The Town Attorney strongly believes that while the Economic Exception process is unlikely to be frequently used, if such a situation arises, its existence could save the Town from protracted litigation and its accompanying high costs in dollars and staff resources. CEQA COMPLIANCE This amendment has no potential to result in an adverse environmental impact and is exempt from CEQApursuant to Section 15308 and Section 15061(b)(3) of the CEQA Guidelines. . RECOMMENDATION The Town Council should conduct a public hearing on the proposed zoning ordinance text amendment and address any issues raised. If the Council wishes to proceed with adoption ofthe text amendment, it should move to read by title only, pass the motion, and hold introduction and first reading ofthe ordinance by roll call vote. The public hearing should then be continued to the meting of July 20,2005 for consideration of a second reading and adoption. EXHIBITS 1. Draft Ordinance. 2. Redlined version showing substantive changes since the hearing on June 15,2005. 3. Staff Report from June 15,2005 meeting. Tiburon Town Council Staff Report June 29, 2005 2 . 1 . 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 . 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 . 44 ORDINANCE NO. N.S. AN ORDINANCE OF THE TOWN COUNCIL OF THE TOWN OF TIBURON ADDING A NEW ARTICLE VII TOTITLE IV, CHAPTER 16 (ZONING) OF THE TIBURON MUNICIPAL CODE REGARDING ECONOMIC EXCEPTIONS The Town Council of the Town of Tiburon does ordain as follows: SECTION 1. FINDINGS. A. The Town Council has held duly noticed public hearings on ,2005 and , 2005, and has heard and considered public testimony on the proposed amendments. B. The Town Council finds that all notices and procedures required by law attendant to the adoption of this Ordinance have been followed. C. The Town Council finds that the amendment actions made by this Ordinance are necessary for the protection of the public health, safety, and welfare. D. The Town Council has found that the amendments made by this Ordinance are consistent with the goals and policies of the Tiburon General Plan and other adopted ordinances and regulations of the Town of Tiburon. E. The Town Council finds that this project is categorically exempt from the requirements of the California Environmental Quality Act per Section 15308 of the CEQA Guidelines and under the "general rule", pursuant to Section l5061(b)(3) ofthe CEQA Guidelines. SECTION 2. AMENDMENT TO MUNICIPAL CODE. A new Article VII to Chapter 16 (Zoning), Title IV, of the Tiburon Municipal Code, entitled "Economic Exceptions," is hereby added to the Tiburon Municipal Code to read as follows: Article VII.. Economic Exceptions \ 16-7.1. Purpose. The purpose of this article is to ensure that the Town applies its General Plan, ordinances, resolutions and other measures that regulate land use for the protection and promotion of the public health, safety, general welfare and the environment (collectively, "Land Use EXHIBIT NO. 1 Town ofTiburon Ordinance No. NS --/--/2005 1 1 Regulations") in a manner that treats property owners fairly and in a manner consistent 2 with state and federal law. This article authorizes the Town to grant an Economic 3 Exception relaxing the application of the Town's Land Use Regulations to the extent 4 necessary to avoid an unconstitutional taking under the United States or California 5 Constitutions. . 6 7 16-7.2. Application for Economic Exception. 8 (a) If any applicant believes that strict application of the Town's Land Use 9 Regulations would not permit an economically viable use of his or her property, or would 10 otherwise effect an unconstitutional taking of property, the applicant may apply for an 11 Economic Exception. The application for an Economic Exception shall include the 12 entirety of all parcels that are geographically contiguous in which the applicant holds an 13 interest at the time of the application. Any applicant that does not submit a request for an 14 Economic Exception as set forth in Section 16-7.3 shall be deemed to have waived any 15 objections based on the Takings clauses of the United States and California Constitutions 16 to the strict application of the Town's Land Use Regulations, including, without 17 limitation, any condition of approval, mitigation measure or other measure imposed to 18 implement said regulations. The applicant shall be required to fund a:I1 costs associated 19 with independent peer review studies and reports commissioned by the Town of any 20 information submitted by the applicant, or the independent preparation of such 21 information by the Town or its consultants, and may be required to submit an advance 22 deposit upon application to cover such costs. 23 (b) The Director may, in his sole discretion to ensure the fairness of the process, 24 grant extensions of any deadlines in this Article in order to allow the applicant a 25 reasonable amount of time to prepare the materials required under Section 16-7.4 for the 26 application and/or to allow the Town enough time to analyze the application. However, 27 if any such extension, would imperil the Town's ability to comply with other deadlines 28 established by law (including, without limitation, the deadlines contained in the 29 California Permit Streamlining Act and the California Environmental Quality Act), the 30 Director may require the applicant to grant an extension to such other deadlines. . 31 32 16-7.3. Time for Filin!! Application. 33 (a) The applicant shall apply for the Economic Exception as early as possible in 34 the process of obtaining land use approvals for the subject property, i.e., before or in 35 conjunction with the first land development application submitted for the property. 36 (b) Notwithstanding subsection 16-7.3( a), if the Planning Commission is the 37 decision-making body for the land development application and the applicant's Economic 38 Exception request is based on a condition of approval, mitigation measure or other 39 measure imposed by the Planning Commission, the applicant shall submit the application 40 for an Economic Exception within ten (10) days of the Planning Commission's action on 41 the land development application. The request for an Economic Exception shall be . Town ofTiburon Ordinance No. NS. --/--/2005 2 1 . 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 . 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 . submitted using the Town's regular appeal process for contesting zoning permit decisions by the Planning Commission. (c) If the Planning Commission acts on the land development application as an advisory body and the applicant's Economic Exception request is based on a condition of approval, mitigation measure or other measure recommended by the Planning Commission, the applicant shall submit the request for an Economic Exception within ten (10) days of the Planning Commission's making its recommendation on the merits of the land development application. The Town Council shall consider the request for an Economic Exception prior to taking action on the merits of the land development application. (d) If the request for Economic Exception is based on a condition of approval, mitigation measure or other measure first proposed at a meeting of the Town Council, the applicant may submit the application for an Economic Exception within _ U days of receiving constructive notice of said proposal. 16-7.4. Required Information. (a) The applicant shall provide all of the following information: 1. The date the applicant purchased or otherwise acquired the property, and from whom. 2. The purchase price paid by the applicant for the property and a descriptio1.1 of any consideration that the applicant received for that purchase price in addition to the property. 3. The fair market value of the property at the time the applicant acquired it, describing the basis upon which the fair market value is derived, including any appraisals done at the time. 4. The general plan, zoning or similar land use designations applicable to the property at the time the applicant acquired it, as well as any changes to these designations that occurred after acquisition. 5. Any development restrictions or other restrictions on use, other than government regulatory restrictions described in (4) above, that applied to the property at the time the applicant acquired it, or which have been imposed after acquisition. 6. Any change in the size of the property since the time the applicant acquired it, including a discussion of the nature of the change, the circumstances and the relevant dates. 7. A discussion of whether the applicant has sold or leased a portion of, or interest in, the property since the time of purchase, indicating the relevant dates, sales prices, rents, and nature of the portion or interests in the property that were sold or leased. Town ofTiburon Ordinance No. N.S --/--/2005 3 1 8. A title report for the property, and any litigation guarantees or similar 2 documents that affect or limit the use of all or a portion of the property, including copies 3 of relevant underlying documents referenced therein. 4 9. Any offers to buy all or a portion ofthe property which the applicant solicited 5 or received, including the approximate date of the offer and offered price. 6 10. The applicant's costs associated with the ownership of the property, 7 annualized for each of the last five (5) calendar years, including property taxes, property 8 assessments, debt service costs (such as mortgage and interest costs), and maintenance, 9 operation and management costs. 10 11. Apart from any rent received from the leasing of all or a portion of the 11 property, any income generated by the use of all or a portion of the property over the last 12 five (5) calendar years. Ifthere is any such income to report it should be listed on an 13 annualized basis along with a description of the uses that generate or have generated such 14 Income. . 15 12. A written explanation as to why the application is necessary to avoid an 16 unconstitutional taking. 17 13. Any other information that the Director determines is required to analyze the 18 application. 19 (b) The foregoing information must be submitted within _ U days of submission -20 of the application for an Economic Exception. 21 22 16-7.5. . Economic Viahility Determination~ Economic Exception. 23 (a) The Town Council will hold a public hearing on any application for an 24 Economic Exception. The Council shall grant an Economic Exception from strict 25 application of the Town'sLand Use Regulations if the Council makes the following 26 findings: 27 (1) Based on the economic information provided by the applicant, as well as any 28 other relevant evidence, strict application of the Town's Land Use Regulations would not 29 provide an economically viable use of the applicant's property or would otherwise 30 constitute an unconstitutional taking of the applicant's property. 31 (2) The Economic Exception granted will result in a project which, to the 32 maximum extent possible while avoiding an unconstitutional taking, (a) complies with 33 the Town's General Plan and Zoning Ordinance; and, (b) minimizes environmental 34 damage as required by the California Environmental Quality Act. 35 (b) The Council's findings shall identify the evidence supporting the findings. 36 37 38 . Town ofTiburon Ordinance No. NS --/--/2005 4 . 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 . 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 . SECTION 3. SEVERABILITY. If any section, subsection, sentence, clause or phrase of this chapter is for any reason held by a court of competent jurisdiction to be invalid, such decision shall not affect the validity of the remaining portions of this chapter. The Town Council declares that it would have passed this chapter and each section, subsection, sentence, clause and phrase thereof, irrespective of the fact that anyone or more section, sentences, clauses or phrases be declared invalid. SECTION 4. EFFECTIVE DATE. This Ordinance shall take effect and be in force thirty days after the date of passage, and before the expiration of fifteen (15) days after passage by the Town Council, a copy of the ordinance shall be published with the names of the members voting for and against it at least once in a newspaper of general circulation in the Town of Tiburon. This ordinance was introduced at a regular meeting of the Town Council of the Town of Tiburon on ,2005, and was adopted at meeting ofthe Town Council of the Town of Tiburon on ,2005, which was noticed pursuant to Government Code Section 65090, by the following vote: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: MILES BERGER, MAYOR TOWN OF TIBURON ATTEST: DIANE CRANE IACOPI, TOWN CLERK Town ofTiburon Ordinance No. N.s. --/--/2005 5 ORDINANCE NO. N.S. AN ORDINANCE OF THE TOWN COUNCIL OF THE TOWN OF TIBURON ADDING A NEW ARTICLE VII TO TITLE IV, CHAPTER 16 OF THE TIBURON MUNICIPAL CODE, REGARDING ECONOMIC EXCEPTIONS The Town Council of the Town of Tiburon does ordain as follows: SECTION L A new Article VII to Chapter 16, Title IV, of the Tiburon Municipal Code, entitled "Economic Exceptions," is hereby added to the Tiburon Municipal Code to read as follows: Article VII. Economic Exceptions 16-7.1. Purpose. The purpose of this article is to ensure that the Town applies its General Plan, ordinances, resolutions and other measures that regulate land use for the protection and promotion of the public health, safety; general welfare and the environment (collectively, "Land Use Regulations") in a manner that treats property owners fairly and in a manner consistent with state and federal law. This article authorizes the Town to grant an Economic Exception relaxing the application of the Town's Land Use Regulations to the extent necessary to avoid an unconstitutional taking under the United States or California Constitutions. 16-7.2. Application for Economicallv Exception. lliLIfany applicant believes that strict application of the Town's Land Use Regulations would not pennit an economically viable use of his or her property, or would otherwise effect an unconstitutional taking of property, the applicant may apply for an Economic Exception. The application for an Economic Exception shall include the entirety of all parcels that are geographically contiguous in which the applicant holds an interest at the time of the application. Any applicant that does not submit a request for an Economic Exception as set forth in Section 16-7.3 shall be deemed to have waived any objections based on the Takings clauses of the United States and California Constitutions to the strict application of the Town's Land Use Regulations, including, without limitation, any condition of approval, mitigation measure or other measure imposed to implement said regulations. (b) The Director may. in his sole discretion to ensure the fairness of the process, grant extensions of any deadlines in this Article in order to allow the applicant a reasonable amount of time to prepare the materials required under Section 16-7.4 for the ill2l2lication an~!or to allow the Town enough tirpe to analyze theJlill!.lLeation._HoweY-~J~ ifany such extension, would imperil the T()\vn's ability to comply with other deiH.ilin<;li . .------_._-~ .-----..-..-.-.-..-------- -... - .L!'ont1~~~~lldent:~~~~~ill~~_~._5"._,i EXHIBITNO. d- . . . . ~fi.ffiQlishecl by la'Yiincluding, with()llt limitation, the deadlines co!)tained in the California Permit Streamlining Act and the California EnvirorrmentalQ!!alitv A..Q.1Jl1f. Director may reqllirethe applicant to grant an extension to such other deadlines. 16-7.3. Time for Filine: Application. (a) The applicant shall apply for the Economic Exception as early as possible in the process of obtaining land use approvals for the subject property, i.e., before or in conjunction with the first land development application submitted for the property. (b) Notwithstanding subsection 16-7.3(a), if the Planning Commission is the decision-making body for the land development application and the applicant's Economic Exception request is based on a condition of approval, mitigation measure or other measure imposed by the Planning Commission, the applicant shall submit the application for an Economic Exception within ten (10) days of the Planning Commission's action on the land development application. The request for an Economic Exception shall be submitted using the Town's regular appeal process for contesting zoning permit decisions by the Planning Commission. (c) If the Planning Commission acts on the land development application as an advisory body and the applicant's Economic Exception request is based on a condition of approval, mitigation measure or other measure recommended by the Planning Commission, the applicant shall submit the request for an Economic Exception within ten (10) days of the Planning Commission's making its recommendation on the merits of the land development application. The Town Council shall consider the request for an Economic Exception prior to taking action on the merits of the land development application. . (d) If the request for Economic Exception is based on a condition of approval, mitigation measure or other measure first proposed at a meeting of the Town Council, the applicant may submit the application for an Economic Exception within........Udays of receiving constructive notice of said proposal. 16-7.4. Required Information. (a) The applicant shall provide all of the following information: L The date the applicant purchased or otherwise acquired the property, and from whom. 2. The purchase price paid by the applicant for the property, and a description of any consideration that the applicant received for that purchase price in addition to the property. 3. The fair market value of the property at the time the applicant acquired it, describing the basis upon which the fair market value is derived, including any appraisals done at the time. 4. The general plan, zoning or similar land use designations applicable to the property at the time the applicant acquired it, as well as any changes to these designations that occurred after acquisition. .rD;i~t~;"C~;;;;;;~-i;;"D~~~i~~;;;;;;;; ..... .1 10 2 5. Any development restrictions or other restrictions on use, other than government regulatory restrictions described in (4) above, that applied to the property at . the time the applicant acquired it, or which have been imposed after acquisition. 6. Any change in the size of the property since the time the applicant acquired it, including a discussion of the nature of the change, the circumstances and the relevant dates. 7. A discussion of whether the applicant has sold or leased a portion of, or interest in, the property since the time of purchase, indicating the relevant dates, sales prices, rents, and nature of the portion or interests in the property that were sold or leased. 8. A title report for the property, and any litigation guarantees or similar documents that affect or limit the use of all or a portion of the property. 9. Any offers to buy all or a portion of the property which the applicant solicited or received, including the approximate date of the offer and offered price. 10. The applicant's costs associated with the ownership of the property, annualized for each of the last five (5) calendar years, including property taxes, property assessments, debt service costs (such as mortgage and interest costs), and maintenance, operation and management costs. . 11. Apart from any rent received from the leasing of all or a portion of the property, any income generated by the use of all or a portion of the property over the last five (5) calendar years. If there is any such income to report it should be listed on an ~nnualized basis along with a description of the uses that generate or have generated such mcome. 12. A brief written explanation why the application is necessary to avoid an unconstitutional taking. 13. Any other information that the Director determines is required to analyze the application. (b) The foregoing information must be submitted within._~~_)Aays()r~ll~rrlissioIl of the application for an Economic Exception. 16-7.5. Economic Viability Determination; Economic Exception. (a) The Town Council will hold a public hearing on any application for an Economic Exception. The Council shall grant an Economic Exception from strict application of the Town's Land Use Regulations if the Council makes the following findings: (1) Based on the economic information provided by the applicant, as well as any other relevant evidence, strict application of the Town's Land Use Regulations would not provide an economically viable use of the applicant's property or would otherwise constitute an unconstitutional taking of the applicant's property. (2) The Economic Exception granted will result in a project which, to the maximum extent possible while avoiding an unconstitutional taking, (a) complies with . . Deleted: ten Deleted: 10 3 . . . . the Town's General Plan and Zoning Ordinance and (b) minimizes environmental damage as required bv the Califomia Environmental Quality Act. (b) The Council's findings shall identify the evidence supporting the findings. SECTION 2 SEVERABILITY. If any section, subsection, sentence, clause or phrase of this chapter is for any reason held by a court of competent jurisdiction to be invalid, such decision shall not affect the validity of the remaining portions of this chapter. The Town Council declares that it would have passed this chapter and each section, subsection, sentence, clause and phrase thereof, irrespective of the fact that anyone or more section, sentences, clauses or phrases be declared invalid. SECTION 3 EFFECTIVE DATE. This Ordinance shall take effect and be in force thirty days after the date of passage, and before the expiration of fifteen (15) days after passage by the Town Council, a copy of the ordinance shall be published with the names of the members voting for and against it at least once in a newspaper of general circulation published in the Town of Tiburon. This ordinance was introduced at a regular meeting of the Town Council of the Town ofTiburon on June _,2005, and was adopted at a regular meeting of the Town Council of the Town of Tiburon on June, _,2005, which was noticed pursuant to Government Code Section 65090" byth~fo~I()\\ling\,ote: PASSED AND ADOPTED at a regular meeting of the Town Council of the Town of Tiburon, held on the _ day of , _, by the following vote: AYES: NOES: ABSENT: MAYOR, TOWN OF TIBURON ATTEST - r Deleted: 50022.3 4 TOWN OF TIBURON STAFF REpORT . ITEM NO. S MEETING DATE: JUNE 15,2005 Date: TOWN COUNCIL ANN R. DANFORTH, TOWN ATTORNEY SCOTT ANDERSON, DIRECTOR OF COMMUNITY DEVELOPMENT ~ ZONING ORDINANCE TEXT AMENDMENT TO ADD PROVISIONS REGARDING ECONOMIC EXCEPTIONS; FILE #Z2005-01; ORDINANCE- INTRODUCTION AND FIRST READING June 10, 2005 To: From: Subject: BACKGROUND One of the most contentious and unpredictable areas of land use law involves takings claims. Applicants who find their projects denied or subjected to stringent conditions of approval often claim that the permitting agency has violated the constitutional prohibitions against taking property without compensation. Courts tend to review such claims on a case by case basis, utilizing a number of . factors to determine the constitutionality of the challenged actions. As a result, litigation of these cases can be protracted, costly and of uncertain outcome. At the February 7,2005 Town Council/Staff retreat, the Council stated that it would like to consider adoption of an ordinance that would allow applicants to apply for an Economic Exception! from strict application ofthe Town's land use regulations. The Institute of Local Self Governrnent (ILG) has developed a model ordinance that creates an economic variance procedure. This procedure is designed to both reduce the number ofta,kings claims against the adopting public agency and ensure that before taking action on a project; the agency has before it all the facts relevant to a potential takings claim. Staff has used this ILG model ordinance as a starting point, expanding its scope to include conditions of approval, mitigation measures and similar factors that may arise during the approval process. The Planning Commission held a public hearing on the proposed zoning text amendment on June 8, 2005 and recommended favorably by adopting Resolution No. 2005-07 (Exhibit 1). The I The proposed ordinance uses the term "exception" instead of "variance." The existing Zoning Ordinance already has a variance procedure that uses the statutory meaning of the term (a pennit granted for a structure that is not otherwise pennitted by the zoning regulations pursuant to Gov. Code S 6509). The Council determination authorized by the proposed ordinance more closely resembles an exception than a variance in this context. . Tiburon Town Council Staff Report June 15, 2005 1 EXHIBIT NO. :J . . . Commission made some additions to the application submittal materials list and raised some additional concerns discussed below. ANALYSIS Takings litigation generally falls into two broad categories. The first category, known as "facial" claims, are claims that a regulation, by its mere existence, effectively takes an owner's property without compensation. For example, if a city passed an ordinance that banned all potential use of a parcel of property, the owner could file a facial takings challenge to that regulation. However, such claims are valid only if there is no administrative procedure to obtain a variance or exception allowing the land to be used in an economically remunerative way. The proposed ordinance would create such a procedure, effectively insulating the Town's General Plan, Zoning Ordinance and other land use regulations from facial attack. The second broad category of takings claim is the "as-applied" challenge. In these cases, a . property owner claims that a governmental agency's application of land use regulations to his or her property effectively takes that property without compensation. The alleged taking generally assumes one of three forms: (1) physical invasion (the property owner is required to surrender an interest in the property and the requirement is not adequately related to a project impact); (2) destruction of value (the property owner is deprived of all economically viable use of his or her property); or (3) undue interference with reasonable, investment-back expectation.2 Physical invasion claims are relatively straightforward, hence relatively rare in recent years. However, the second and third types of claims, commonly called "regulatory takings," are more complex and rely on numerous facts relating to the property in question. In the absence of a physical invasion of property, the courts have been unable to develop any set formula for determining whether an illegal taking has occurred. However, the U.S. Supreme Court has enumerated several factors that are critical to the inquiry and directed courts to make a case by case inquiry. Most recently, the Court said the following: The Court in Penn Central acknowledged that it had hitherto been "unable to develop any 'set formula'" for evaluating regulatory takings claims, but identified "several factors that have particular significance." . . . Primary among those factors are "the economic impact of the regulation on the claimant and, particularly, the extent to which the regulation has interfered with distinct investment-backed expectations." .. In addition, the "character of the governmental action" -- for instance whether it amounts to a physical invasion or instead merely affects property interests through "some public program adjusting the benefits and burdens of economic life to promote the common good" -- may be relevant in discerning whether a taking has occurred. The Penn Central factors -- though each has given rise to vexing subsidiary questions 2 Until very recently, the Supreme Court recognized an additional takings test: whether the regulation substantially advanced a legitimate state interest. This test was derived from Agins v. City of Tiburon (1980). On May 23,2005, the Supreme Court eliminated this test from takings jurisprudence in Lingle v. Chevron U.S.A.. Tiburon Town Council Staff Report June 15, 2005 2 -- have served as the principal guidelines for resolving regulatory takings claims that do not fall within the physical takings or Lucas rules) . The courts have identified a number of factual circumstances relevant to determining whether a regulation causes a regulatory taking. These types of facts may be absent from the record in the normal land use application process. If the facts are not in the record, a takings challenge is likely to turn on external evidence, which means a protracted and costly discovery process, followed by an evidentiary hearing. The proposed Ordinance would require property owners to request an Economic Exception before making a takings claim and, through the Economic Exception process, the Town would have the opportunity to review all the facts and reasoning relevant to the potential claim. This would enable the Town to fairly balance the rights ofthe property owner with the Town's interest in enforcing its land use regulations. The Town would be able to tailor its regulatory programs to avoid an unjust result. Moreover, if the Town finds that normal application of its regulations will not constitute a taking, the Ordinance would assure that the administrative record will contain enough facts to enable the agency to prevail at an earlier stage of litigation. This is potentially a very significant savings in litigation costs. The Council should note that these types of ordinances are relatively untested. However, based on 'existing takings jurisprudence, we believe that the Ordinance is likely to reduce the incidence of takings claims in Tiburon, and enhance the likelihood of a successful outcome in those cases that are not resolved through the Economic Exception process. The Cities ofMalibu, Lafayette . and Napa have somewhat similar procedures, which have not been tested in court as far as staff has been able to ascertain. The City of Livermore has a related process that allows the City Attorney to decide whether a regulatory application constitutes a taking. This process resulted in the City's successful defense of a refusal to grant an exception to its scenic route protection policies. The operation of the Economic Exception process is fairly simple. Project applicants must request an Economic Exception as early as possible in the approval process. Staff has expanded the procedure to include challenges to conditions of approval, mitigation measures, and similar impositions on project applications, because we believe them to be the most likely source oftakings claims in Tiburon. The applicant must provide all factual information relevant to their claim and explain why, under the stated facts, the strict application of Town regulations would constitute an unlawful taking. The Town Council would hold a hearing on the request and could issue an Economic Exception ifit made the following findings: (1) Based on the economic information provided by the applicant, as well as any other relevant evidence, strict application of the Town's Land Use Regulations would not provide an economically viable use of the applicant's property or would otherwise constitute an unconstitutional taking of the applicant's property. 3 Lingle v. Chevron U.S.A. 2005 U.S. Lexis 4342 (U.S. May 23, 2005) (citations omitted). Tiburon Town Council Staff Report June 15, 2005 3 . . . . (2) The Economic Exception granted will result in a project which, to the maximum extent possible while avoiding an unconstitutional taking, (a) complies with the Town's General Plan and Zoning Ordinance; and, (b) minimizes environmental damage. ISSUES RAISED BY THE. PLANNING COMMISSION The Planning Commission raised certain concerns and asked Staff to address these issues in the report to the Town Council. These issues are as follows: (1) The Planning Commission expressed concern that Section 16-7.3 ofthe Ordinance might encourage excessive filing of applications for Economic Exception, and gave the appearance of encouraging such filings at the outset of a project application. Section 16-7.3( a) reads as follows: (a) The applicant shall apply for the Economic Exception as early as possible in the process of obtaining land use approvals for the subject property, i.e., before or in conjunction with the first land development application submitted for the property. Staffbelieves that this provision will not encourage excessive filing of Economic Exception applications with the original application submittal, since there would be no basis for such a filing unless a "facial" taking was being alleged. Such claims are very rare, and Staff believes that the purpose of this "early as possible" provision is to cover the remote possibility of such facial claims, with the understanding that they will almost never occur, since it is the "application" ofthe Town's land use regulations that would trigger virtually all takings claims that might be filed. (2) The Planning Commission questioned whether information regarding the fair market value of the property, and/or the value ofthe property assuming project approval, should be required with submittal ofthe Economic Exception application. Staff believes that the ILG model ordinance purposefully excluded such information from the submittal requirements. Such information may be generated independently by the Town or its consultants as needed during the Economic Exception Analysis; requiring such information from the applicant may not secure the interests of objectivity. (3) The Planning Commission received a request from a member of the public (Jerry Riessen) to modify Section 16-7.5 (a)(2) to read as follows (new text italicized): (2) The Economic Exception granted will result in a project which, to the maximum extent'possible while avoiding an unconstitutional taking, (a) complies with the Town's General Plan and Zoning Ordinance; and, (b) minimizes environmental damage, and to the maximum extent feasible, protect prominent ridges. Tiburon Town Council Staff Report June 15, 2005 4 Some Commissioners believed that ridges would already receive preferential protection . under the Town's General Plan policies, and that the additional text was unnecessary. One Commissioner favored inclusion of the additional text. While the Commission did not include this text revision in its adopted resolution, it did request that the Town Council consider inclusion before adoption, after hearing the opinion of the Town Attorney on the matter. CEQA COMPLIANCE This amendment has no potential to result in an adverse environmental impact and is exempt from CEQA pursuant to Section 15061(b)(3) ofthe CEQA Guidelines. RECOMMENDATION The Town Council should conduct a public hearing on the proposed zoning ordinance text amendment and address any issues raised. Ifthe Council wishes to proceed with adoption of the text amendment, it should move to read by title only, pass the motion, and hold introduction and first reading of the ordinance by roll call vote. EXHIBITS l. 2. 3. 4. Resolution recommending adoption to Town Council. Draft Ordinance. Excerpt from Institute for Local Government (ILG) website Draft minutes of 6/812005 Planning Commission meeting (to be provided at the meeting). . Tiburon Town Council Staff Report June 15. 2005 5 . . . . RESOLUTION 2005-07 A RESOLUTION OF THE PLANNING COMMISSION OF THE TOWN OF TIBURON RECOMMENDING TO THE TOWN COUNCIL ADOPTION OF AMENDMENTS TO CHAPTER 16 (ZONING) OF THE TIBURON MUNICIPAL CODE WHEREAS, the Town of Tiburon has initiated text amendments to the Town's Zoning Ordinance, codified as Chapter 16 of the Tiburon Municipal Code; and WHEREAS, the Planning Commission has determined that the project has no potential to result in adverse impacts on the environment and is exempt from the requirements of CEQA; and WHEREAS, notice of the public hearing on the amendments was published in a newspaper of general circulation in Tiburon on May 29,2005 and other noticing was provided as required by law; and WHEREAS, the Planning Commission did hold a duly noticed and advertised public hearing on June 8, 2005, at which testimony was received from the public, and WHEREAS, the Planning Commission finds that the proposed amendments are consistent with the goals and objectives of the Tiburon General Plan. NOW, THEREFORE, BE IT RESOLVED that the Planning Commission hereby recommends that the Town Council adopt the amendments to Chapter 16 (Zoning) as set forth in the attached Exhibit "A", with consideration given to suggested changes as set forth in the minutes. PASSED AND ADOPTED at a regular meeting of the Planning Commission of the Town of Tiburon held on June 8, 2005, by the following vote: AYES: NOES: ABSENT: COMMISSIONERS: Aguirre, Collins, Fraser & Snow COMMISSIONERS: None COMMISSIONERS: Kunzweiler A TJ'EST: \~ " (~, \ // ! /./ 1 l;(>vv;!~/i-LJ/:;?1/ / sl Richard Collins RICHARD COLLINS, CHAIRMAN Tiburon Planning Commission SCOTT ANDERSON, SECRETARY Tiburon Planning Commission Resolution No. 2005-07 6/8/2005 1 EXHIBIT NO. , EXHIBIT "A" . A new Article VII to Chapter 16 (Zoning), Title N, of the Tiburon Municipal Code, entitled "Economic Exceptions," is hereby added to the Tiburon Municipal Code to read as follows: Article VII. Economic Exceptions 16-7.1. Purpose. The purpose ofthis article is to ensure that the Town applies its General Plan, ordinances, resolutions and other measures that regulate land use for the protection and promotion of the public health, safety, general welfare and the environment (collectively, "Land Use Regulations") in a manner that treats property owners fairly and in a manner consistent with state and federal law. This article authorizes the Town to grant an Economic Exception relaxing the application of theTown's Land Use Regulations to the extent necessary to avoid an unconstitutional taking under the United States or California Constitutions. 16-7.2. Application for Economic Exception. If any applicant believes that strict application ofthe Town's Land Use Regulations would not permit an economically viable use of his or her property, or would otherwise effect an unconstitutional taking of property, the applicant may apply for an Economic Exception. The . application for an Economic Exception shall include the entirety of all parcels that are geographically contiguous in which the applicant holds an interest at the time of the application. Any applicant that does not submit a request for an Economic Exception as set forth in Section 16-7.3 shall be deemed to have waived any objections based on the Takings clauses of the United States and California Constitutions to the strict application of the Town's Land Use Regulations, including, without limitation, any condition of approval, mitigation measure or other measure imposed to implement said regulations. The applicant shall be required to fund all costs associated with independent peer review studies and reports commissioned by the Town of any information submitted by the applicant, or the independent preparation of such information by the Town or its consultants, and may be required to submit an advance deposit upon application to cover such costs. 16-7.3. Time for Filim.! Application. (a) The applicant shall apply for the Economic Exception as early as possible in the process of obtaining land use approvals for the subject property, i.e., before or in conjunction with the first land development applicq.tion submitted for the property. (b) Notwithstanding subsection 16-7 .3( a), ~f the Planning Commission is the decision- making body for the land development application and the applicant's Economic Exception request is based on a condition of approval, mitigation measure or other measure imposed by the Tiburon Planning Commission Resolution No. 2005-07 6/8/2005 2 . . . . Planning Commission, the applicant shall submit the application fOf an Economic Exception within ten (10) days ofthe PleJrning Commission's action on the land development application. The request for an Economic Exception shall be submitted using the Town's regular appeal process for contesting zoning permit decisions by the Planning Commission. (c) If the Planning Commission acts on the land development application as an advisory body and the applicant's Economic Exception request is based on a condition of approval, mitigation measure or other measure fecommended by the Planning Commission, the applicant shall submit the request for an Economic Exception within ten (10) days of the Planning Commission's making its recommendation on the merits of the land development application. The Town Council shall consider the request for an Economic Exception prior to taking action on the merits of the land development application. (d) If the request for Economic Exception is based on a condition of approval, mitigation measure or other measure first proposed at a meeting ofthe Town Council, the applicant may submit the application for an Economic Exception within ten (10) days of receiving constructive notice of said proposal. 16-7.4. Required Information. (a) The applicant shall provide all of the following information: 1. The date the applicant purchased or otherwise acquired the property, and from whom. 2. The purchase price paid by the applicant for the property and a description of any consideration that the applicant received for that purchase price in addition to the property. 3. The fair market value of the property at the time the applicant acquired it, describing the basis upon which the fair market value is derived, including any appraisals done at the time. 4. The general plan, zoning or similar land use designations applicable to the property at the time the applicant acquired it, as well as any changes to these designations that occurred after acquisition. S. Any development restrictions or other restrictions on use, other than government regulatory restrictions described in (4) above, that applied to the property at the time the applicant acquired it, or which have been imposed after acquisition. 6. Any change in the size ofthe property since the time the applicant acquired it, including a discussion ofthe nature ofthe change, the circumstances and the relevant dates. 7. A discussion of whether the applicant has sold or leased a portion of, or interest in, the property since the time of purchase, indicating the relevant dates, sales prices, rents, and nature of the portion Of interests in the property that were sold or leased. 8. A title report for the property, including copies of relevant underlying documents referenced therein, and any litigation guarantees or similar documents that affect or limit the use of all or a portion of the property. Tiburon Planning Commission Resolution No. 2005-07 6/8/2005 3 9. Any offers to buy all or a portion ofthe property which the applicant solicited or received, including the approximate date of the offer and offered price.. 0 10. The applicant's costs associated with the ownership of the property, annualized for . each of the last five (5) calendar years, including property taxes, property assessments, debt service costs (such as mortgage and interest costs), and maintenance, operation and management costs. . 11. Apart from any rent received from the leasing of all or a portion of the property, any income generated by the use of all.or a portion of the property over the last five (5) calendar years. Ifthere is any such income to report it should be listed on an annualized basis along with a description of the uses that generate or have generated such income. 12. A written explanation as to why the application is necessary to avoid an unconstitutional taking. 13. Any other information that the Director determines is required to analyze the application. (b) The foregoing information must be submitted within ten (10) days of submission of the application for an Economic Exception. 16-7.5. (a) The Town Council will hold a public hearing on any application for an Economic Exception. The Council shall grant an Economic Exception from strict application of the Town's Land Use Regulations ifthe Council makes the following findings: (1) Based on the economic information provided by the applicant, as well as any other relevant evidence, strict application of the Town's Land Use Regulations would not provide an economically viable use of the applicant's property or would otherwise constitute an unconstitutional taking ofthe applicant's property. (2) The Economic Exception granted will result in a project which, to the maximum extent possible while avoiding an unconstitutional taking, (a) complies with the Town's General Plan and Zoning Ordinance; and, (b) minimizes environmental damage. (b) The Council's findings shall identify the evidence supporting the findings. Economic Viability Determination~ Economic Exception. . Tiburon Planning Commission Resolution No. 2005-07 6/8/2005 4 . . . . ORDINANCE NO. N.S. AN ORDINANCE OF THE TOWN COUNCIL OF THE TOWN OF TIBURON ADDING A NEW ARTICLE VII TO TITLE IV, CHAPTER 16 (ZONING) OF THE TIBURON MUNICIPAL CODE REGARDING ECONOMIC EXCEPTIONS The Town Council ofthe Town of Tiburon does ordain as follows: SECTION 1. ADDITION TO MUNICIPAL CODE. A new Article VII to Chapter 16 (Zoning), Title IV, of the Tiburon Municipal Code, entitled "Economic Exceptions," is hereby added to the Tiburon Municipal Code to read as follows: Article VII. Economic Exceptions 16-7.1. Purpose. The purpose of this article is to ensure that the Town applies its General Plan, ordinances, resolutions and other measures that regulate land use for the protection and promotion of the public health, safety, general welfare and the environment (collectively, "Land Use Regulations") in a manner that treats property owners fairly and in a manner consistent with state and federal law. This article authorizes the Town to grant an Economic Exception relaxing the application of the Town's Land Use Regulations to the extent necessary to avoid an unconstitutional taking under the United States or California Constitutions. 16-7.2. Application for Economic Exception. If any applicant believes that strict application ofthe Town's Land Use Regulations would not permit an economically viable use of his or her property, or would otherwise effect an unconstitutional taking of property, the applicant may apply for an Economic Exception. The application for an Economic Exception shall include the entirety of all . parcels that are geographically contiguous in which the applicant holds an interest at the time of the application. Any applicant that does not submit a request for an Economic Exception as set forth in Section 16-7.3 shall be deemed to have waived any obj ections based on the Takings clauses of the United States and California Constitutions to the strict application of the Town's Land Use Regulations, including, without limitation, any condition of approval, mitigation measure or other measure imposed to implement said regulations. The applicant shall be required to fund all costs associated with independent peer review studies and reports commissioned by the Town of any information submitted by the applicant, or the independent preparation of such information by the Town or its consultants, and may be required to submit an advance deposit upon application to cover such costs. EXHIBIT NO. J. 1 16-7.3. Time for Filinl! Application. (a) The applicant shall apply for the Economic Exception as early as possible in the process of obtaining land use approvals for the subject property, i.e., before or in conjunction with the first land development application submitted for the property. (b) Notwithstanding subsection 16-7.3(a), ifthe Planning Commission is the decision-making body for the land development application and the applicant's Economic Exception request is based on a condition of approval, mitigation measure or other measure imposed by the Planning Commission, the applicant shall submit the application for an Economic Exception within ten (10) days of the Planning Commission's action on the land development application. The request for an Economic Exception shall be submitted using the Town's regular appeal process for contesting zoning permit decisions by the Planning Commission. (c) If the Planning Commission acts on the land development application as an advisory body and the applicant's Economic Exception request is based on a condition of approval, mitigation measure or other measure recommended by the Planning Commission, the applicant shall submit the request for an Economic Exception within ten (10) days of the Planning Commission's making its recommendation on the merits of the land development application. The Town Council shall consider the request for an Economic Exception prior to taking action on the merits of the land development application. . . (d) If the request for Economic. Exception is based on a condition of approval, mitigation measure or other measure first proposed at a meeting of the Town Council, the applicant may submit the application for an Economic Exception within ten (10) days of receiving constructive notice of said proposal. 16-7.4. .Reauired Information. (a) The applicant shall provide all of the following information: 1. The date the applicant purchased or otherwise acquired the property, and from whom. . . . 2 . 6. Any change in the size of the property since the time the applicant acquired it, including a discussion of the nature of the change, the circumstances and the relevant dates. 7. A discussion of whether the applicant has sold or leased a portion of, or interest in, the property since the time of purchase, indicating the relevant dates, sales prices, rents, and nature ofthe portion or interests in the property that were sold or leased. 8. A title report for the property, and any litigation guarantees or similar documents that affect or limit the use of all or a portion of the property, including copies of relevant underlying documents referenced therein. 9. Any offers to buy all or a portion ofthe property which the applicant solicited or received, including the approximat~ date of the offer and offered price. 10. The applicant's costs associated with the ownership of the property, annualized for each ofthe last five (5) calendar years, including property taxes, property assessments, debt service costs (such as mortgage and interest costs), and maintenance, operation and management costs. 11. Apart from any rent received from the leasing of all or a portion of the property, any income generated by the use of all or a portion of the property over the last five (5) calendar years. If there is any such income to report it should be listed on an annualized basis along with a description of the uses that generate or have generated such mcome. . 12. A written explanation as to why the application is necessary to avoid an unconstitutional taking. 13. Any other information that the Director determines is required to analyze the application. (b) The foregoing information must be submitted within ten (10) days of submission of the application for an Economic Exception. 16-7.5. Economic Viability Determination~ Economic Exception. (a) The Town Council will hold a public hearing on any application for an Economic Exception. The Council shall grant an Economic Exception from strict application ofthe Town's Land Use Regulations ifthe Council makes the following findings: (1) Based on the economic information provided by the applicant, as well as any otherrelevant evidence, strict application ofthe Town's Land Use Regulations would not provide an economically viable use of the applicant's property or would otherwise constitute an unconstitutional taking of the applicant's property. (2) The Economic Exception granted will result in a project which, to the maximum extent possible while avoiding an unconstitutional taking, (a) complies with the Town's General Plan and Zoning Ordinance; and, (ll) minimizes environmental . damage. 3 (b) The Council's findings shall identify the evidence supporting the findings. SECTION 2. SEVERABILITY. If any section, subsection, sentence, clause or phrase of this chapter is for any reason held by a court of competent jurisdiction to be invalid, such decision shall not affect the validity of the remaining portions of this chapter. The Town Council declares that it would have passed this chapter and each section, subsection, sentence, clause and phrase thereof, irrespective of the fact that anyone or more section, sentences, clauses or phrases be declared invalid. SECTION 3. EFFECTNE DATE. This Ordinance shall take effect and be in force thirty days after the date of passage, and before the expiration of fifteen (15) days after passage by the Town Council, a copy of the ordinance shall be published with the names of the members voting for and against it at least once in a newspaper of general circulation in the Town of Tiburon. This ordinance was introduced at a regular meeting ofthe Town Council ofthe Town of Tiburon on ,2005, and was adopted at meeting of the Town Council ofthe Town of Tiburon on ,2005, which was noticed pursuant to Government Code Section 65090, by the following vote: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: MILES BERGER, MAYOR TOWN OF TIBURON ATTEST: DIANE CRANE IACOPI, TOWN CLERK. . . . 4 . . . msmme lOr Local ~elI uovernrnem - Lana use &, 110usmg t'age j ot j MuniLink ''bE'Atil:!lEOFClmORiNU:mJES I ~N l(IT'fMA:GA11H:E I INS1111IJtE fOR U)[AI. GOVlERNMENif .,' 1;..;.o,......,.....,.,..'1j.-t II...~..-_..~ o i : ~(1 J;, t ~). r "r' J.L~(i},'i_llill!i.U~"'__&_HQ.uJ;iilll-}''J?[QR'''!:!yRjgh!~..&-I~_kjng~L~>Jj"kjDgs...8eJiQ~l[c.e...cJm!e[ Slit" S"~rfh 1.--_._----- GO,,' 'roo mal" login hp.re U&erid I _ Par;9Ii'C>fd L...-- GO" Wednesday. May Sample Economic Variance Ordinance <PRINTER-FRIE:i'-iQI..Y PA Takings litigation can be expensive. One way in which public agencies can limit the cost of litigation is to develop administrative procedures designed to re appropriate resolutions to takings problems. An economic variance procedure provides publi, agencies with a dispute resolution mechanism that limits their exposure to takings liability. Variances allow public agencies to tailor a regulatory program to avoid an unjust result. A variance will also protect against a "facial" takings claim, which occurs when a party argues tt the terms of a regulation require an agency to perform an action that will amount to a taking 0 property. One of the basic tenets of takings law is that a regulation cannot be challenged if a court does not know how far the regulation actually goes. Therefore the presence of a varian which affords the agency the discretion to consider special circumstances, will automatically defeat a facial challenge in most cases. An economic variance procedure is specifically tailored to protect against claims that a regula scheme denies all economically viable use of property. Since the law of takings is complex a fact intensive, this procedure is designed to assure that all the facts of the case are presentee the administrative level. This provides the opportunity for the agency to fully analyze the clair before a suit is filed. Thus, if after reviewing the full record, the agency determines that the regulation does indeed constitute a taking, it can either grant a variance or make arrangemen to purchase the property. On the other hand, if the regulation does not constitute a taking, thl ordinance assures that the administrative record will contain enough facts to enable the agen to prevail at an earlier stage of litigation. Sample Ordinance 1-1-100. Purpose. The purpose ofthis variance procedure is assure that application of any ordinances or meaSL that provide for the protection, maintenance, restoration and enhancement of wetlands and environmentally sensitive habitat areas are adopted in a manner that treats property owners fairly. 1-1-110. Application for economically viable use determination. Any applicant that proposes a use other than one permitted that is based on the contention th permitted uses do not provide an economically viable use of his or her property shall apply fOI economic viability determination. The application for an economic viability determination shall include the entirety of all parcels that are geographically contiguous and held by the applicant common ownership at the time of the application. 1-1-120. Elements. Before any application for a coastal development permit and economic viability determinatior accepted for processing, the applicant shall provide all of the following information: 1. The date the applicant purchased or otherwise acquired the property, and from whom. 2. The purchase price paid by the applicant for the property. EXmBITNO.3 . ../index.jsp?displaytype=ll &zone=ilsg&section=land&sub _ se. II Institute for Local Self Government - Land Use & Housing PageL Of3 ;j. I he tair market value ot the property at the time the applicant acquired It, describing the ba upon which the fair market value is derived, including any appraisals done at the time. 4. The general plan, zoning or similar land use designations applicable to the property at the 1 the applicant acquired it, as well as any changes to these designations that occurred after acquisition. 5. Any development restrictions or other restrictions on use, other than government regulator restrictions described in (d) above, that applied to the property at the time the applicant acquil it, or which have been imposed after acquisition. 6. Any change in the size of the property since the time the applicant acquired it, including a discussion of the nature of the change, the if circumstances and the relevant dates. . 7. A discussion of whether the applicant has sold or leased a portion of, or interest in, the property since the time of purchase, indicating the relevant dates, sales prices, rents, and nat of the portion or interests in the property that were sold or leased. 8. Any title reports, litigation guarantees or similar documents in connection with all or a porti of the property of which the applicant is aware. 9. Any offers to buy all or a portion of the property which the applicant solicited or received, including the approximate date of the offer and offered price. 10. The applicant's costs associated with the ownership of the property, annualized for each c the last five calendar years, including property taxes, property assessments, debt service cos (such as mortgage and interest costs), and operation and management costs. 11. Apart from any rent received from the leasing of all or a portion of the property, any incom generated by the use of all or a portion of the property over the last five calendar years. If thel any such income to report it should be listed on an annualized basis along with a description I the uses that generate or has generated such income. 1-1-130. Economically viable use determination. The decision-making authority will hold a public he(lring on any application for an economicall viable use determination. Such application for a development permit for a use other than the I provided for under the agency's code will be approved if the decision-making authority makes following findings: 1. Based on the economic information provided by the applicant, as well as any other relevar evidence, each use provided for the affect parcel or parcels under the agency's general plan; code would not provide an economically viable use of the applicant's property. 2. Restricting the use of the applicant's property to the uses provided for in the coastal . conservation district would .interfere with the applicant's reasonable investment-backed expectations. The findings adopted by the decision-making authority shall also identify the evidence supporting the findings. 1-1-140. Economically Feasible, Less Damaging Alternatives. Where the decision-making authority finds that the permitted uses would not provide an economically viable use, and that restricting the use of the applicant's propertyJo these uses would interfere with their reasonable investment backed expectations, the uses provided for il the [reference a district or zone or alternatively, list accepted conditional uses] maybe allowe a conditional use. A specific development proposal that accords with one of the accepted conditional uses may be denied, however, if a feasible, less environmentally damaging alternative also would provide the applicant with an economically viable use. Access through wetlands or environmentally sensitive habitat areas to an area proposed for the conditional u~ shall only be allowed if necessary to provide an economically viable use of the overall development plan area. last updated. 12/9/ .. .Iindex.jsp?displaytype= 11 &zone=ilsg&section=land&sub .-:.sec=land '-property&tert=land yr 5/25/2005 . . . . . . LATE MAIL #.6... 1. ZONING ORDINANCE TEXT AMENDMENT; FILE #Z2005-01; ADD SECTION REGARDING ECONOMIC EXCEPTIONS TO ADDRESS INSTANCES WHERE A "TAKING" OF PROPERTY IS ALLEGED BY APPLICANT Community Development Director Anderson reviewed the Staff report. He discussed changes made to the resolution by the Town Attorney in the late mail received by the Commission. Chair Collins asked about Section 16-7 .3( a), which requires that Economic Exception applications be filed "as early as possible." He questioned the impact of this clause. Community Development Director Anderson responded he speculates this clause was intended to apply to facial takings claims, in which case the Economic Exception application would be submitted with the initial application. l}:,~C_"~~ . '.~.~-"".' - .~ c' .,.~.;~ . ['T 11 I .j L , ,~~. r-:,... ~~::,..., 4,>.." 'C.: ~~~,. . Chair Collins asked whether contiguous parcels under the same ownership would be incl~de~ in the Economic Exception analysis, even if not part of the develop.ment tr.. .c;.... apphcatlon. tf: . Community Development Director Anderson responded that he believed that they would'~" ifthey had any material bearing on the property or the project. Chair Collins stated that the list of materials to be submitted for the Economic Exception does not include any information regarding the value of the proposed project. He asked if development costs and sales information should also be included in the list. Chair Collins also requested that copies of underlying documents be included with the title report. Commissioner Aguirre asked what sort of burden is put on applicant from the beginning, as a result of the "as early as possible" clause. He asked ifthe study must be prepared before there is any type of negative decision and if that means everyone must file [for an Economic Exception] at day one. Community Development Director Anderson responded this is not the intent, and unless an applicant was making a facial takings claim; there would be no basis for filing until the Town actually applied its land use regulations. Commissioner Aguirre noted that proposed use helps determine fair market value and value depends upon what the property is approved or denied for. It would be relevant to get a handle on quantitative values such as the highest and best use, the project as approved, and any increment of takings value. He concluded that a review of the list of submittal items for application of an Economic Exception permit was warranted. Tiburon Planning Commission Minutes of June 8, 2005 (DRAFT) . __ .--.r Chair Collins stated that Section 16-7.4(12), while seemingly asking applicant for a brief explanation, appears to him to be asking for a legal opinion. This section should be reviewed again by the Town Attorney. . The public comment period was opened. Jerry Riessen, Ridge Road, stated it is great this is being put forth and it is important that it be done. It is the fair way for the applicant and the Town to get information in up front, so all involved are dealing with good information rather than screaming and yelling about a taking. This process establishes a basis for the takings issue. When information comes in is not as important as whether there is enough time to process the information before a decision is made. Information should be required with enough time to allow the Town time to analyze it. He interviewed people who do economic exception analyses, although he does not know the time frame typically necessary to complete an analysis. There should be time for a public hearing to listen to experts and to respond, and an applicant should expect to pay for the consultant's work on the economic exceptions analysis. Riessen added that the Planning Commission should consider that "minimizing environmental damage" is broad and suggested adding language to read "minimize environmental damage and maximize to the extent feasible to protect ridges" to Section 16-7 .5( a)(2). Commissioner Aguirre noted the General Plan takes a holistic view, and asked if one element should be separately highlighted. If one complies with the General Plan, ridges are taken into account. . Mr. Riessen responded that if the economic analysis indicates there. must be more lots, the phrase "minimizing environmental damage" allows them to be put anywhere. Ridgeline locations for houses tend to be the most valuable, and he would recommend guidance be given that any additional lots necessary to avoid a taking not be located on a prominent ridge. There being no further comments, the public comment period was closed. Commissioner Aguirre asked if the General Plan states that protection of ridges is priority. Community Development Director Anderson responded that ridgelines are given highest priority in the current General Plan, and that the Draft General Plan carries that protection forward as well. Commissioner Aguirre asked if Section 16-7.5(a)(2), as currently proposed, would not achieve Mr. Riessen's goal, given that ridgelines are already given highest priority. Comri:mnity Development Director Anderson responded that, given an option, the Town's first choice would be to not allow additional lots on prominent ridgelines. . Tiburon Planning Commission Minutes of June 8, 2005 (DRAFT) 2 . . . Commissioner Aguirre asked what happens if there is no other way and a parcel would have to put it on a ridge or there would be a taking. Commissioner Fraser stated the General Plan provides guidelines. If a project is not otherwise economically viable and has to be adjusted, and if this [Economic Exception] is granted, then it trumps the General Plan and somebody must decide where additional lots will go. . Community Development Director Anderson noted that under the proposed ordinance, the Town Council makes this decision, complying with the General Plan's policies to the "maximum extent possible." Commissioner Snow expressed support for adding the text regarding prominent ridges as suggested by Mr. Riessen. Community Development Director Anderson suggested that the Planning Commission motion recommend "considering" this text addition, but that the resolution itself not be modified until the Town Attorney is able to weigh in on the issue. Commissioner Snow stated that this process should encourage applicants to take into consideration different scenarios up front. Commissioner Aguirre asked if this type of ordinance has increased the takings claims of applicants in other jurisdictions where it has been adopted. Community Development Director Anderson responded that the Economic Exception process has not been legally tested. There is simply no case law to draw conclusions from. Chair Collins stated that ten days for the applicant to prepare the Economic Exception information, and for the Town to prepare a response, is not enough time. He was concerned about the tight time-frames established in the ordinance. Commissioner Aguirre asked how applicant can respond to Section 16-7.5(a)(l2) up front ifhe does not yet know the response of the Town. Community Development Director Anderson stated applicant would be able to respond if a facial takings claim was being made, but the application for Economic Exception would not otherwise be submitted up front. Chair Collins asked if this distinction could somehow be clarified in the ordinance. There was a brief discussion regarding the procedural aspects of filing the Economic Exception application. It was the consensus of the Commission to include revisions regarding the list of application materials, Town costs being borne by the applicant, and the late mail text Tiburon Planning Commission Minutes of June 8, 2005 (DRAFT) 3 ~ changes. Items for the Town Attorney and Town Council to consider during the Town Council deliberations included clarification regarding the timing of the Economic Exception application, whether additional information regarding value of the property should be required from the applicant, and whether the additional text regarding protection of prominent ridges should be added. M/S Snow/Aguirre (passed 4-0) to adopt the resolution as revised and to forward the additional comments from this hearing to the Town Council for consideration during its deliberations. Tiburon Planning Commission Minutes of June 8, 2005 (DRAFT) 4 . . .