HomeMy WebLinkAboutTC Minutes 2017-01-04 TOWN COUNCIL
SPECIAL MEETING
MINUTES
CALL TO ORDER
Mayor Fraser called the special meeting of the Tiburon Town Council to order at 7:15 p.m.
on Wednesday, January 4, 2017, in Town Council Chambers, 1505 Tiburon Boulevard, Tiburon,
California.
ROLL CALL
PRESENT: COUNCILMEMBERS: Doyle, Fraser, Fredericks, O'Donnell, Tollini
PRESENT: EX OFFICIO: Town Manager Chanis, Town Attorney Stock,
Director of Public Works/Town Engineer Barnes,
Director of Administrative Services Bigall, Town
Clerk Stefani
ORAL COMMUNICATIONS
Gail Dorph, Tiburon resident, introduced herself as a member of Kol Shofar which acts as part of
a team of local congregations that host REST (Rotating Emergency Shelter Team) dinners and
sleepovers for the homeless. Ms. Dorph expressed gratitude for the financial support the
organization has received and said REST's guests are extra appreciative of a warm meal and a
dry place to sleep during the rainy season. She said the program needs a permanent location
and should be run year-round so as to provide a reliable and stable path away from homelessness.
REST plans to work with local supervisors, who have committed to finding solutions to these
problems for REST. She thanked the Council again for their support.
Shannon Griffin, Community Congregational Church of Tiburon, Peter Seyers, Westminster
Presbyterian Church, and a local Branson student all expressed gratitude for financial support and
spoke in support of the program.
Robert Chandler, 695 Hilary Drive, said he was concerned about potholes and cracks in the road
near his home. He said he contacted the Department of Public Works, but was not satisfied with
the result. He said Hawthorne Terrace is long overdue for road repair and asphalt replacement.
CONSENT CALENDAR
1. Town Council Minutes—Adopt minutes of November 2, 2016 regular meeting (Town
Clerk Stefam)
Town Council Minutes#01 -2017 January 4, 2017 Page I
Councilmember Fredericks asked that more detail be added to Item AI-3 (Storm Drain
Update), on page 9, paragraph 5, specifically that storm drains in disrepair may ultimately
undermine the roads.
2. Town Council Minutes—Adopt minutes of November 16, 2016 regular meeting (Town
Clerk Stefani)
3. Town Council Minutes—Adopt minutes of December 7, 2016 regular meeting (Town
Clerk Stefani)
4. Town Investment Summary—Adopt report for month ending November 30, 2016
(Director of Administrative Services Bigall)
MOTION: To adopt Consent Calendar Items 1-4, as amended.
Moved: Tollini, seconded by Fredericks
Vote: AYES: Unanimous
ACTION ITEMS
1. Consider rescission of approval of Resolution No. 32-2016 related to proposed Utility
Assessment District
Town Manager Chanis gave the staff report. He said not all members of the proposed district
may have been aware Council was considering adoption of a Resolution of Intent to form a utility
undergrounding assessment district. He asked Council to rescind approval of the resolution, and
reconsider adoption following discussion.
Mayor Fraser invited questions from the Council. There were none.
Mayor Fraser opened the floor for public comment. There was none.
MOTION: To rescind approval of Resolution No. 32-2016, as recommended.
Moved: Fredericks, seconded by O'Donnell
Vote: AYES: Unanimous
2. Reconsideration of a Resolution of the Town Declaring its Intention to Take Proceedings
to Underground all Existing Overhead Utility Facilities within the Boundaries of the
Proposed Town of Tiburon Assessment District No. 2017-01 (Hawthorne
Undergrounding District)
Town Manager Chanis gave the staff report. He said this would be the same presentation given at
the December 12, 2016 special meeting.
Town Council Minutes#01 -2017 January#, 2017 Page 2
He described the location of the proposed district and showed the proposed boundary map, consisting of
121 parcels most parcels are residential, but also includes Saint Hillary's Church and School, Belvedere
Tennis Club and the Community Congregational Church of Tiburon. He said 83 petitions have been
received, a sufficient number to satisfy both State law and Town of Tiburon Undergrounding Policy
requirements. The petitioners have also submitted$151,000 in subscription deposits, as required by Town
policy.
He outlined a tentative timeline for the project. He said the resolution up for adoption tonight would be
the first administrative step to starting the undergrounding process—the Council would declare its intent
to form the Assessment District, appoint Bond Counsel(s), approve the preliminary district boundary map,
appoint a District Engineer and direct the District Engineer to prepare the Engineer's Report. He said the
expenses incurred by these actions will be paid for by the subscription deposits, and there would likely be
no surplus.
If approved, next Council action would be to review the Engineer's report, which would provide a
preliminary estimate of total project costs, including special benefit and general benefit. The proposed
District Engineer provided an initial estimate of$8.4 million, and estimated the general benefit to be 10-
15% of the total cost.
He said the Town's Undergrounding Policy states that 100%ofcosts associated with the project will be
borne by the property owners in the district, unless funds from PG&E or other utilities can be applied, but
there is no guarantee that those funds are available. He said PG&E Rule 20A funds are specifically
earmarked.for undergrounding. He reminded Council of an active undergrounding project along Tiburon
Boulevard, which will use $875,000 of Rule 20A funds. He also reminded Council ofpreviously stated
Rule 20A fund priorities.
He spoke to other historical undergrounding assessment districts. He said the Engineer's Report did not
identify any General Benefit in prior projects, and the Town has not historically contributed General Fund
monies to prior projects. The only exception would be the Del Mar project, in which the Town paid
litigation costs out of the General Fund.
He concluded his staff report by recommending Council review the resolution of intent, but to keep in
mind the following: how will the general benefit and completion of biddable set ofplans be.funded?He
invited questions from the Council.
Councilmember Fredericks said all her questions and concerns stated at the previous meeting still
stand, and commented that there are several matters that will need to be discussed at a later date.
Vice Mayor O'Donnell commented that the cost estimate provided in the engineer's preliminary
report has been wrong in the past; he cited one instance in which the cost had nearly doubled after
the design phase was complete due to rising values of materials.He asked if we can be confident that
the $8.4 million is accurate. Chanis replied that that number was not the "official" preliminary
estimate. He said the Town will continue to work with the engineer to capture any increases in cost
and ensure the included contingency is enough to cover any additional costs that may arise.
O'Donnell added that it would be a cumbersome process to have to re-sell bonds a second time if
they were not sold at the correct value the first time. Chanis said the Town will be vigilant with the
Town Council Minutes #01 -2017 January 4, 2017 Page 3
engineer to ensure the estimate reflects the actual cost.
Fredericks added to Vice Mayor O'Donnell's comment about rising values of materials: she said at
that time, global markets were booming, and other countries were purchasing American materials.
She said she hoped these global impacts on construction costs will be kept in mind in the future.
Mayor Fraser opened the floor for public comment.
Robert Chandler, 695 Hilary Drive,referenced the letter he had sent to the Council.He said he could
not afford to pay for utility undergrounding, and would have to sell his long-term home. IIe added
that his views would not be improved as they were already blocked by trees.
Chris Henry,720 Hilary Drive,asked for more specificity about the project.He wanted to ensure this
project was specific to undergrounding only, and nothing else would be "slipped in" during the
process. Ile also asked if a"hard cap"could be put on the cost,and commented that district members
had seen the estimate move from $6.3 million to $8.3 million. He asked if the Town would absorb
the costs for work done along Tiburon Boulevard; the district did not want to pay for work that
would comprise a greater community benefit.He also asked for a greater understanding of how costs
will be assessed to each property, and how the district itself was developed.
[Town Attorney Stock said many of these questions and more fine details will be answered by Sam
Sperry, bond counsel, in the coming weeks. He will be present to discuss the mechanics of the
district formation with the citizens. Mayor Fraser also clarified that tonight's discussion was only
about Council's intent to gather details about the district formation,and would not be an approval of
the district. He said there would be ample opportunity for participation and feedback,and ultimately,
a citizen vote as to whether or not to proceed.]
Barb Elliot,700 Hilary Drive, stated her concern about transparency. She said she and her neighbors
have lots of questions. She said residents of the district should know how much it will cost each of
them to connect the laterals to their individual homes as an additional cost before the vote. She said
this project would be a large financial burden to many in the neighborhood,and that she hoped those
neighbors would be well-represented throughout the proceedings.
Jane Colwell, 685 Hawthorne Drive,felt that nothing had been kept from her. She said the overhead
poles were unsafe. She said she hoped Council would vote to approve the resolution of intent, and
that everyone's questions get answered along the way.
Gary Schoch, 93 Rock Hill Drive, said fourteen utility poles were visible from his property. He said
there was a major safety concern with two major transformers on Rock Hill Drive.He said he wanted
to know and understand the costs, and that would ultimately affect his vote. [Mr. Schoch originally
stated that "all votes are equal" and Vice Mayor O'Donnell clarified that the votes will be
proportional to assessed value.]
John Hermansky, 690 Hawthorne Drive,requested that the Council discuss what the general benefits
Town Council Minules #01 -2017 January 4, 2017 Page 4
to the Town would be as part of their considerations.
Art Kenny,Tiburon Boulevard,asked how the assessment district boundary map was decided upon.
He wondered why his property was included as he and his neighbors are all against the project, and
asked if it could be changed.
Mayor Fraser closed the floor to public comment.
Councilmember Fredericks stated concern over when the true cost to the members of the district will
be determined. Town Manager Chanis confirmed that it would not be until after the set of biddable
plans is developed. He said if the low bid exceeds the amount of bonds Council authorized, they
would have to reissue additional bonds to the property owners to cover the additional costs.
She clarified"just how preliminary"Council's actions were tonight—approving forward movement
to gather information. She added that in other districts, other proponents have provided financial
assistance to district members on limited incomes. She said she is in support of the resolution.
Vice Mayor O'Donnell said he wished to answer several questions that were brought forth during the
public comment period. He said the district engineer will determine the "special benefit" values
assessed to each parcel, as well as the"general benefit"to the Town. He said historically,there has
been no general benefit cost to the Town,and for that reason,the Town will have to determine if this
project is a fair value,just as the district members will.He said the district map was formed based on
how the homes are connected to the utility poles that would be undergrounded. Town Manager
Chanis added that the proponents determined the boundary by consulting engineers and PG&E.
Councilmember Tollini said she also wished to address several questions. She said this district will
be specific to undergrounding, and nothing else will be added. She said the cost would have to be
approved initially and if it increases, there would be another vote. She said this assessment district
would not contribute to the separate Tiburon Boulevard undergrounding project. She also further
clarified that the general benefit is determined by the district engineer, not the Town. She said she
reviewed the Town's undergrounding policy and the General Plan and found the Town has
historically supported undergrounding projects,for safety reasons as well as aesthetics. She said she
was in favor of the resolution, and commented that there were several matters that needed to be
addressed at a later date.
Councilmember Doyle said he can relate to the district members' concerns over cost and said the
Council is aware of their reservations.He said the only way to find out what the ultimate cost will be
would be to move forward with the resolution of intent.
Vice Mayor O'Donnell said he is a proponent of utility undergrounding and is in favor of the
resolution of intent. He commended the proponent's work thus far in forming the district.
Mayor Fraser asked if the district engineer will determine the costs of connecting the laterals for each
property owner,and if the homeowners will know this information prior to the vote. Town Manager
Town Council Minutes#01 -2017 January 4, 2017 Page 5
Chanis said the preliminary engineer's report would not provide that information, but any
homeowner could contact a contractor and get a reasonable estimate for the cost of that work.
Homeowners will likely have the option to accept the bid price of connecting the lateral from the
contractor that does the rest of the undergrounding work if they so wish.
Mayor Fraser said it would be beneficial to provide district members with contact information of
contractors that could provide an estimate for that work. He said Council is aware there are more
questions to be answered and said there would be many more opportunities for input. He stated his
support for the resolution, and said he believes this is the right choice for the community.
MOTION: Adopt resolution, as written, approving preliminary boundary map, designating
Harris&Associates as Assessment Engineer,directing preparation of the Engineer's
report and appointing Sam Sperry and Stradling, Yocca, Carlson & Rauth as Bond
Counsel.
Moved: Fredericks, seconded by O'Donnell
Vote: AYES: Unanimous
TOWN COUNCIL REPORTS
There were none.
TOWN MANAGER REPORT
There was none.
WEEKLY DIGESTS
Received.
ADJOURNMENT
There being no further business before the Town Counci of the Town of Tiburon, Mayor Fraser
adjourned the meeting at 8:15 p.m.
' C
r � f
JIM F S ;494ANOR
ATTEST:
I M
LEA STEFA I, TOWN CLERK
Town Council Minutes #01 -2017 January 4, 2017 Page 6