HomeMy WebLinkAboutTC Agd Pkt 2010-06-02 (2)To:
From:
Subject:
Reviewed By:
BACKGROUND
TOWN OF TIBURON
1505 Tiburon Boulevard
Tiburon, CA 94920
Mayor and Members of the Town Council
Office of the Town Clerk
Town Council Meeting
June 2, 2010
Agenda Item: Al__ f
Appointments to fill vacancies on Town Boards, Commissions &
Committees
There is currently a pending vacancy on the Belvedere-Tiburon Library Agency Board of
Directors due to the term expiration of Trustee Beverlee Johnson. Ms. Johnson was appointed as
one of the Town's three representatives to the Board in 2007; she has indicated her interest in
seeking reappointment for another three-year term, beginning July 1, 2010.
The Town has published and posted a Notice of Pending Vacancy. The deadline for receipt of
applications was May 1, 2010. As of the date of this report, no new applications have been
received.
RECOMMENDATION
Staff recommends that the Council:
1. Interview all interested applicants (if any);
2. Consider making an appointment to fill the pending vacancy on the Belvedere-Tiburon
Library Agency Board of Directors; or
3. Direct staff to continue the item to a future meeting.
Exhibits: Notice of Pending Vacancy
E-mail from Trustee Beverlee Johnson
Prepared By: Diane Crane Iacopi, Town Clerk
TOWN OF TIBURON
NOTICE OF PENDING VACANCY
ON TOWN BOARD OR COMMISSION
APRIL 2010
BELVEDERE/TIBURON LIBRARY AGENCY - BOARD OF TRUSTEES
(Statutory Authority: Govt. Code Section 6500 et seq. and Joint Powers Agreement for
Belvedere/Tiburon Library Agency)
Position: TRUSTEE - TOWN OF TIBURON
Term: 3 Years - (beginning July 1)
Qualifications: Applicants must be residents of the Town of Tiburon and have the interest,
dedication and time commitment to serve as a trustee on the Board,
including attendance at regular monthly meetings and other activities.
The pending vacancy on the Library Board will occur as follows:
Appointee Date Appointed Resinnation * Term Expires
1) Beverlee Johnson June 2007 N/A June 30, 2010
*Ms. Johnson is eligible to serve another term under the Library Agency by-laws.
Deadline for Receipt ofApplications = May 1, 2010
Interested residents should contact Town Clerk Diane Crane Iacopi at 435-7377 to apply.
--Posted at Tiburon Town Hall and Bel/Tib Library
--Published in The Ark
Page 1 of 1
Diane Crane lacopi
From: Beverlee Johnson [beverlee.johnson@comcast.net]
Sent: Thursday, April 22, 2010 3:49 PM
To: Diane Crane lacopi
Subject: Library Agency Board - Term Expiration
Hi Diane:
I received your letter re the expiration of my term on the Belvedere/Tiburon Library Agency Board of
Trustees. Boy, time flies. I didn't realize that my term is due to expire in June. I would definitely like
to be considered for reappointment by the Town Council. Please let me know if you have any questions
or need additional information. I understand from your letter that I will not have an interview this time
around. Is there anything else I need to do?
Hope you are well, Diane, and still enjoying your job as much as ever.
Best,
Bev
4/22/2010
TOWN OF TIBURON Town Council Meeting
` ~-June 2, 2010
1505 Tiburon Boulevard
L r' Tiburon, CA 94920 Agenda Item:
To: Mayor and Members of the Town Council
From: Department of Public Works
Office of the Town Attorney
Subject: Del Mar Valley Utility Undergrounding Supplemental Assessment
District - Recommendation to Adopt a Resolution of Intention, a
Resolution Preliminarily Approving the Supplemental Engineer's
Report and Related Actions
Reviewed By:
BACKGROUND
On May 19, 2010, the Council began the process of creating a new supplemental district to fund
the Del Mar undergrounding project by adopting a resolution appointing the district bond
counsel engineer and underwriter. The resolution also waived the application of the Town's
Undergrounding Policy. Town staff held the first advisory meeting on May 25, 2010, to inform
interested parties of the pending formation of the new district. Attendees raised a number of
questions, including the method for benefit spread, the ability to personally purchase the
anticipated bonds, the ballot process and the accounting of the Town's expenses to date.
ANALYSIS
The Council's May 19th resolution set in motion a series of steps that would form the new district:
1. May 25th: Conducted the first advisory meeting.
2. June 2"d: Before the regular Council meeting, conduct the second advisory meeting with
interested persons in the district.
3. June 2"d: The Council will consider adopting: (a) formal resolution of intention; and (b)
resolution preliminarily approving the Preliminary Engineer's Report, setting the public
hearing and authorizing mailing of the notice of hearing and assessment ballots.
4. June 4th: Last day to complete mailing ballots and notices to property owners.
5. July 21St: Public Council Hearing, open and tally ballots to calculate protests; and, if no
majority protest, adopt resolution approving Final Engineer's Report and levying
supplemental assessments.
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The Town Council must now decide whether to take the next step in the formation process by
adopting the resolutions before it at this meeting. The first is the Resolution of Intention
(Exhibit 1) directing a Supplemental Engineer's Report to be prepared and filed, to include the
additional costs of improvements and incidental expenses required to complete construction of
this project, and identifying the additional assessments. A Public Hearing is not required at this
stage. Further, Council adoption of the Resolution of Intention does not bind the Town to any
further action but is required before the Council can decide to submit the proposed district to the
balloting process.
If the Council decides to adopt the Resolution of Intention, the next step is to preliminarily
approve the Supplemental Engineer's Report, set a Public Hearing for public hearing of protests
and direct staff to prepare and mail the notices of proposed assessments and the ballots to
property owners. Notices and ballots must be mailed to all property owners at least 45 days prior
to a public hearing and ballot tabulation.
The preliminary supplemental Engineer's Report (Exhibit 2) identifies the following costs (see
Table 1) which will be incurred if this project moves forward:
1. Estimate of Construction Cost: Preliminarily estimated at $4,381,223, of which $3,155,035 is
available from the original district, and which includes a 23 percent contingency.
2. Incidental Expenses: Estimated to be approximately $915,399, this amount includes design
re-engineering, construction management, and reimbursement of assessment paid by deleted
parcels based on the new district boundaries.
3. District Formation: Estimated to be about $147,640, this amount consists of general
administrative costs to form the district and bond issuance.
4. Bond Reserve: Estimated to be about $42,215, this amount is designed to protect the Town
and bond investors from delinquency in payments.
5. Revenues: Estimated to be about $220,702, this amount is the contribution from the Town to
cover the supplemental assessments of nine plaintiff parcels and the school district.
To actually construct the project, the Town must redesign the underground facilities to reflect the
new District boundaries before soliciting competitive bids to construct the project. Typically, the
Engineer's Report would reflect the actual lowest responsible bid amount, rather than estimated
construction costs, and the total assessment would be based on actual, not estimated, construction
cost plus contingencies and the incidental costs associated with the sale of the supplemental
bonds. However, in this case, the report reflects the outcome of the 2005 competitive bids.
Construction costs have generally decreased since that bidding process, therefore staff believes
that this is a conservative basis for the Engineer's Report.
Table 1
Estimated Costs
Town of Tiburon, CA
Del Mar Valley 2010 Supplemental Utiltiy Undergrounding Assessment District
Estimated Costs
Preliminary as
Approved
Estimate of Construction Costs
Joint Trend Casts
S 2, ,155.00
PG&E costs
489_,Ow:w
SeC Costs
S 40,t L0
com cast Costs
s 40,0MOO
Sub-total $ 3.557.155.00
Contingency (23%)
S 824.08,20
Total Estimate of Probable Construction Crests
$ 4.381,223.20
less available Construction Funds from prior district
$ 3,1`: 5.035.00
Sub-total $ 1,M138.20
incidental Expenses
Design Engineering
S 125,i J.t700
Utilities . Engineering
75,00ac)o
Construction Inspection, Administration and Testing
$ 30€1,000.00
lteirr€bursernent of Assessments Paid by Deleted Parcels
S 415,399.00
Sub-total $ 915399.00
Total Costs of Improvements
$ 2,141,587.20
District Formation
Assessment Engineenng
$ 13,".00
li)nd Counsel
a 48, .W
Underwriters Discount
S 58,285.00
Town Adminstration
S 1, MD. LU
Printing, Advertising,
S 24,3 5.00
P.ayingAgent
2,50G.00
Sub-total $ 147,640.00
Bond Reserve
of lends Issued $ 42,214.80
Total District Casts $ 2,331,442.00
Revenues
Less Town Contributions (or Si parcels and school district- new Supplemental District $ ~22tD.1i31.~11
Total Amount to Assessment ~ 2,1 0,740.06
SCHEDULE
If Council chooses to preliminarily approve the Supplemental Engineer's Report, the next steps in
the process are the following:
1. A Notice of the proposed assessment will be mailed to all property owners this week,
along with a ballot. The package sent to property owners will include the date of the
public hearing and deadline for submitting ballots, as well as the supplemental
assessment amount for each property.
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2. No less than 45 days following the mailing of the notice of proposed assessments and the
ballots, the Town Council shall hold a Public Hearing, after which the ballots will be
opened and tallied. If less than a majority of the ballots, weighted by amount of
assessment, indicate opposition to the district, the Council may approve the supplemental
assessments. However, if the majority objects, the balloting would constitute a majority
protest and the Town would abandon the proceedings. The proposed date for this public
hearing is July 21 St
3. If the ballot is successful and the Town Council agrees, then following the 30 day
challenge period, and cash payment period, the Town Council could authorize the sale of
the supplemental bonds and move towards construction.
RECOMMENDATION
Staff recommends that the Town Council move:
a) Adopt a Resolution of Intention to make Acquisitions and Improvements.
b) Adopt a Resolution preliminarily approving the Supplemental Engineer's Report and
directing related actions.
Exhibits:
1. Resolution of Intention
2. Preliminary Engineer's Report for the Del Mar Valley Utility Undergrounding
Supplemental Assessment District dated May, 2010
3. Resolution of the Town Council of the Town of Tiburon Preliminarily Approving
Supplemental Engineer's Report and Directing Related Actions
Prepared By: Nicholas T. Nguyen, Director of Public Works/Town Engineer
Ann R. Danforth, Town Attorney
RESOLUTION NO. 2010-
RESOLUTION OF INTENTION TO ESTABLISH THE DEL MAR VALLEY
2010 SUPPLEMENTAL UTILITY UNDERGROUNDING ASSESSMENT
DISTRICT (THE "NEW SUPPLEMENTAL DISTRICT") TO SUPPLEMENT
THE FUNDING FOR THE PROPOSED PROJECT (THE "REDUCED
PROJECT") OF CONVERSION TO UNDERGROUND LOCATIONS OF
EXISTING OVERHEAD UTILITY FACILITIES AND APPURTENANT
WORK IN THE DEL MAR VALLEY UTILITY UNDERGROUNDING
ASSESSMENT DISTRICT, AS REFORMED BY ACTION OF THIS COUNCIL
ON MAY 19, 2010 (THE "REFORMED ORIGINAL DISTRICT");
APPROVING BOUNDARY MAP WHICH DESCRIBES THE BOUNDARY OF
THE NEW SUPPLEMENTAL DISTRICT WITHIN WHICH NEW
SUPPLEMENTAL ASSESSMENTS ARE PROPOSED TO BE LEVIED TO
PAY THE PORTION OF THE COSTS AND EXPENSES THEREOF WHICH
HAS NOT BEEN FUNDED BY THE REFORMED ORIGINAL DISTRICT;
DECLARING THE INTENTION TO PROVIDE FOR THE ISSUANCE OF
NEW BONDS TO BE SECURED BY THE NEW SUPPLEMENTAL
ASSESSMENTS; AND DECLARING THE INTENTION TO PROVIDE FOR
THE REIMBURSEMENT TO THE TOWN OF TIBURON OF CERTAIN
MONEYS ADVANCED BY THE TOWN ON ACCOUNT OF
IMPLEMENTATION OF THE REDUCED PROJECT AND THE PROPOSED
UTILITY UNDERGROUNDING PROGRAM
Town of Tiburon
Del Mar Valley 2010 Supplemental
Utility Undergrounding Assessment District
WHEREAS, by proceedings taken by this Town Council (this "Town Council")
of the Town of Tiburon (the "Town") pursuant to the Municipal Improvement Act of 1913
(Sections 10000 and following, Streets and Highways Code; hereafter the "1913 Act") and
concluded by resolution adopted on May 18, 2005, this Town Council formed the Del Mar
Valley Utility Undergrounding Assessment District (the "Original District"), approved the Final
Engineer's Report respecting the Original District (the "Final Report"), and levied assessments
(the "Original Assessments") upon the designated parcels within the Original District in
accordance with the Final Report; and
WHEREAS, the purpose of the Original District was to provide financing for a
proposed project (the "Project") consisting of the conversion to underground locations of the
existing overhead utility facilities within the Original District and related appurtenant work; and
WHEREAS, by litigation initiated on June 16, 2005 (the "Property Owner
Litigation"), the validity of the assessments levied for the Original District (the "Original
Assessments") was challenged, which litigation has now been settled in March, 2010, by a court-
approved litigation settlement agreement (the "Settlement Agreement"), which led to entry of a
Judgment by Stipulation on March 23, 2010, thereby concluding the Property Owner Litigation
respecting the Original District and the Original Assessments; and
WHEREAS, following the initiation of the litigation respecting the Original
Assessments, limited obligation improvement bonds (the "Original Bonds") were issued upon
the security of the unpaid Original Assessments excluding those Original Assessments levied on
six parcels owned by plaintiffs in the litigation; and
WHEREAS, following formation of the Original District and the completion of
plans, specification and bid documents for the Project, the Town solicited sealed bids for the
Project; and, on March 6, 2006, the scheduled bid opening date, the Town received construction
bids and determined that the best bid received was for an amount significantly higher than
estimated in the Final Report, on the basis of which the amounts of the Original Assessments
were calculated, with the result that levy of supplemental assessments became necessary in order
to fully fund the Project; and
WHEREAS, by resolution adopted on May 8, 2006, this Town Council formed
the Del Mar Valley Utility Undergrounding Supplemental Assessment District (the "Original
Supplemental District"), approved the Engineer's Report respecting the Original Supplemental
District (the "Supplemental Report"), and levied supplemental assessments (the "Original
Supplemental Assessments") upon the designated parcels in accordance with the Supplemental
Report; and
WHEREAS, on May 18, 2006, the Town initiated a validation action in the Marin
County Superior Court (the "Superior Court") for the purpose of obtaining judicial validation of
the Original Supplemental Assessments pursuant to the provisions of Sections 860 through 870.5
of the California Code of Civil Procedure (the "Validation Proceedings"); and
WHEREAS, following a favorable ruling by the Superior Court in the Validation
Proceedings, upholding the validity of the Original Supplemental Assessments, the First District
Court of Appeals, by its opinion issued on December 31, 2009 (the "DCA Decision"), reversed
the Superior Court and ruled the Original Supplemental Assessments invalid; and
WHEREAS, rather than pursuing an appeal of the DCA Decision to the
California State Supreme Court, at substantial additional expense to the Town and entailing
further substantial delay in the implementation of the Reduced Project (as described in
subparagraph (b) immediately below), this Town Council intends to pursue implementation of an
alternative program (the "Proposed Utility Undergrounding Program") consisting of three
components, as follows:
(a) abandonment of the Original Supplemental District;
(b) modification of the Original District, in conformity with the
Settlement Agreement, by ordering certain changes of proceedings respecting the
Original District to (i) revise the boundary of the Original District to exclude those
parcels listed in Exhibit B of the Settlement Agreement and identified therein as the
"Deleted Parcels" (thereby creating the "Reformed Original District"), (ii) reduce the
scope of the Project and the related estimated Project cost to conform to the reduced area
of the Reformed Original District (the Project, as reduced in scope, being referred to
hereafter in this resolution as the "Reduced Project"), (iii) reduce to zero the amount of
2
the Original Assessments which were levied on the Deleted Parcels, and (iv) refund to
the owners of the Deleted Parcels the amounts paid on account of the Original
Assessments, with interest to be calculated in accordance with the Settlement Agreement;
and
(c) formation of a new supplemental district, to be known as the "Del
Mar Valley 2010 Supplemental Utility Undergrounding Assessment District" (the "New
Supplemental District"), with boundaries conforming to the Reformed Original District
and with the amount of the proposed new supplemental assessments (the "New
Supplemental Assessments") being calculated to supplement the moneys which will
remain available for the Reduced Project following the refunds described in
subparagraph (b) above to the owners of the Deleted Parcels to fully fund the Reduced
Project, and to pay the incidental expenses relating to the New Supplemental District and
the financing costs of the new limited obligation improvement bonds (the "New Bonds")
to be issued and sold on the security of the New Supplemental Assessments which
remain unpaid following a cash payment period during which owners of the parcels upon
which a New Supplemental Assessment is levied may prepay, without interest, and
discharge the lien of the New Supplemental Assessment prior to issuance of the New
Bonds; and
WHEREAS, by resolutions adopted by this Town Council on May 19, 2010, the
implementation of the first two components of the Proposed Utility Undergrounding Program, as
described in subparagraphs (a) and (b) of the foregoing paragraph, has been authorized and
requires no further action by this Town Council; and
WHEREAS, with respect to the third component described in the foregoing
subparagraph (c), this Town Council wishes by this resolution:
(a) to declare its intention to form the New Supplemental District;
(b) to approve the boundary map for the New Supplemental District (the
"New Supplemental District Boundary Map") and provide for the recording thereof in
the official records of the Marin County Recorder;
(c) to generally describe and declare its intention to proceed with
implementation of the Reduced Project;
(d) to provide for the issuance and sale of the New Bonds upon the
security of unpaid New Supplemental Assessments; and
(e) to declare its intention that, in the event that there are funds remaining
in the improvement fund following completion of the Reduced Project and payment of all
authorized costs and expenses thereof, and before making a determination of "surplus,"
as provided by Section 10427 of the 1913 Act, the Town will be reimbursed for the
moneys it has advanced or may hereafter advance with respect to the implementation of
the Proposed Utility Undergrounding Program and any costs and expenses incidental
thereto, expressly excluding therefrom (i) the amounts of $605,000 and $35,000 payable
3
under the Settlement Agreement on account of attorneys fees and court costs and (ii) the
amount of $220,702.22 to be contributed by the Town to pay the shares of cost which
would otherwise be levied as New Supplemental Assessments on those parcels in the
New Supplemental District which are owned by (A) the nine litigants whose parcels will
remain in the Reformed Original District and (B) the school district;
NOW THEREFORE, THE TOWN COUNCIL OF THE TOWN OF TIBURON
HEREBY FINDS, DETERMINES, DECLARES AND RESOLVES as follows:
1. The foregoing recitals are true and correct, and this Town Council hereby
expressly so finds and determines.
2. The public interest and convenience require, and this Town Council
hereby reaffirms its intention to order, pursuant to the 1913 Act, the implementation of the
Reduced Project within the Reformed Original District and to levy the New Supplemental
Assessments against the parcels within the Reformed Original District.
3. The utility undergrounding project to be implemented (the "Reduced
Project") is generally described as follows:
A. The Reduced Project generally consists of the conversion of
existing overhead electrical and communication facilities to underground locations within
the area shown on the New Supplemental District Boundary Map, together with
appurtenances and appurtenant work thereto, all to serve and specially benefit the
properties within the Reduced Original District.
B. All rights-of-way and easements required for the Project will be
shown upon the plans (the "Project Plans") which will be filed in the office of the
Director of Public Works of the Town and incorporated by reference in the Engineer's
Report (described below).
C. All of the improvement work to be performed will be performed in
the locations and to the sizes, dimensions and materials, and to the lines, grades and
elevations, as shown and delineated upon the Project Plans, subject to such changes as
made be authorized prior to or during the course of construction of the Reduced Project
in accordance with the specifications and other contract documents.
D. The Project Plans, as incorporated by reference in the Engineer's
Report, will be controlling as to the correct and detailed description of the Reduced
Proj ect.
4. The boundary of the New Supplemental District, which shall be
coterminous with the boundary of the Reformed Original District, is shown on a map on file with
the Town Clerk, entitled "Proposed Boundaries of the Del Mar Valley 2010 Supplemental Utility
Undergrounding Assessment District, Town of Tiburon, County of Marin, State of California"
(the "New Supplemental District Boundary Map"). This Town Council hereby approves the
New Supplemental District Boundary Map as describing the extent of the territory included
within the New Supplemental District, which shall be known by the above title.
4
This Town Council hereby finds and determines that the New Supplemental
District Boundary Map contains the matters and is in the form prescribed by Section 3110 of the
Streets and Highways Code and hereby authorizes and directs the Town Clerk to file a copy
thereof with the Marin County Recorder (the "County Recorder") for placement in such book of
maps as is maintained by the County Recorder for such purposes. Such filing shall be
accomplished within 15 days of the date of adoption of this resolution, as specified by Section
3111 of the Streets and Highways Code.
5. The proposed New Supplemental District and the Reduced Project are
hereby referred to NBS, designated by prior resolution of this Town Council as the District
Engineer for the New Supplemental District, and directs the District Engineer to make and file
with the Town Clerk for presentation to this Town Council a written report (the "Engineer's
Report") containing the matters prescribed by 10204 of the 1913 Act, as supplemented by Article
XIIID of the California Constitution and Section 53753 of the Government Code.
6. Notice is hereby given that limited obligation improvement bonds (the
"New Bonds") to represent the unpaid New Supplemental Assessments will be issued in
accordance with the "Improvement Bond Act of 1915" (the "1915 Act"), being Division 10 of
the Streets and Highways Code, which bonds will be issued in one or more series, each with a
term not to exceed the legal maximum term as authorized by law, namely, thirty-nine (39) years
from the second day of September next succeeding twelve (12) months from their date, and
bearing interest at a rate or rates not to exceed the legal maximum. The provisions of Part 11.1
of the 1915 Act, providing an alternative procedure for the advance payment of assessments and
the calling of bonds, will apply.
7. The principal amount of the New Bonds maturing each year will be
established so that, as nearly as practicable, the combined annual debt service of the remaining
outstanding Original Bonds and the New Bonds will be equal each calendar year over the term of
the New Bonds.
8. Pursuant to Section 10603 of the Code, the Director of Administrative
Services of the Town is hereby designated as the officer to collect and receive the payments on
account of New Supplemental Assessments during the cash collection period.
9. By its resolution authorizing issuance of the Original Bonds, the Town has
established and is maintaining an improvement fund for the Reduced Original District (the
"Improvement Fund"). By its resolution authorizing issuance of the New Bonds, the Town will
provide that any cash prepayments on account of the New Supplemental Assessments and the
prescribed portion of the proceeds of sale of the New Bonds will be deposited in the
Improvement Fund, from which authorized costs and expenses of the Reduced Project and the
proceedings for implementation of the Proposed Utility Undergrounding Program will be paid.
This Town Council hereby finds and determines that the Town has, from time to
time, advanced and may hereafter advance moneys legally available for such purpose to pay
costs and expenses attributable to the Proposed Utility Undergrounding Program and which
therefore represent reimbursable incidental costs and expenses of the Proposed Utility
Undergrounding Program, the Reformed Original District and the New Supplemental District.
5
These expenses include, without limitation, costs associated with modifying the Original District
to comply with the Settlement Agreement and the DCA Decision.
In accordance with Section 10210 of the Streets and Highways Code, this Town
Council hereby declares that, in the event that there are moneys remaining in the Improvement
Fund upon completion of the Reduced Project and payment of all other authorized incidental
costs and expenses of the New Supplemental District, the Town will be reimbursed for all such
advances to the extent possible from such remaining moneys; provided that the Town shall not
be reimbursed for (a) the amounts of $605,000 and $35,000 payable under the Settlement
Agreement on account of attorneys fees and court costs, respectively, and (b) the amount of
$220,702.22 to be contributed by the Town to pay the shares of cost which would otherwise be levied
as New Supplemental Assessments on those parcels in the New Supplemental District that are owned
by (i) the nine litigants whose parcels will remain in the Reformed Original District and (ii) the
school district, and (iii) litigation costs associated with Town of Tiburon et al, v. Jimmie D. Bonander
et al and Mostyn v. Town of Tiburon et al. .
In the event that, following reimbursement to the Town of all amounts advanced
and not excluded from reimbursement as provided in the foregoing paragraph, there are still
moneys remaining in the Improvement Fund, this Town Council shall by resolution declare such
remaining amount to be "surplus," within the meaning of Section 10427 of the Streets and
Highways Code, and shall direct that such surplus be utilized to call New Bonds from the last
maturity for which any New Bonds remain outstanding.
10. Pursuant to Section 8769 of the Streets and Highways Code, this Town
Council hereby declares that the Town will not obligate itself to advance available funds from
the Town treasury to cure any deficiency that may occur in the bond redemption fund for the
New Bonds.
11. This Town Council hereby declares that it proposes to authorize the levy
an annual assessment pursuant to subsection (f) of Section 10204 of the Streets and Highways
Code, such annual assessment to pay costs incurred by the Town and not otherwise reimbursed
which result from the administration and collection of the New Supplemental Assessments and
from the administration and registration of the New Bonds and the related bond funds.
12. Pursuant to Section 10110 of the Streets and Highways Code, it is the
intention of this Town Council with respect to those Reduced Project improvements to be
owned, managed, or controlled by a regulated public utility, to enter into an agreement with each
such regulated public utility with respect to those Reduced Project improvements to be owned,
controlled or managed by the utility.
13. This Town Council hereby declares that it intends to comply with the
requirements of the Special Assessment Investigation, Limitation and Majority Protest Act of
1931, being Division 4 of the Street and Highways Code, by proceeding under Part 7.5 of said
Division 4. For that purpose, the District Engineer is directed to include in the Engineer's Report
the information prescribed by Section 2961 of the Streets and Highways Code.
6
PASSED AND ADOPTED at a regular meeting of the Town Council of the Town of
Tiburon, State of California, held this 2nd day of June, 2010 by the following vote:
AYES: COUNCILMEMBERS:
NOES: COUNCILMEMBERS:
ABSENT: COUNCILMEMBERS:
RICHARD COLLINS, MAYOR
TOWN OF TIBURON
ATTEST:
DIANE CRANE IACOPI, TOWN CLERK
1428524.1
7
RESOLUTION NO.
RESOLUTION PRELIMINARILY APPROVING ENGINEER'S REPORT;
SETTING DATE, TIME AND PLACE FOR PUBLIC HEARING; DIRECTING
THE TOWN CLERK TO CAUSE THE PREPARATION AND MAILING TO PROPERTY
OWNERS OF NOTICE OF THE HEARING AND ASSESSMENT BALLOTS, AND
DECLARING FINAL ACTION WITH RESPECT TO THE SPECIAL ASSESSMENT
INVESTIGATION, LIMITATION AND MAJORITY PROTEST ACT OF 1931
Town of Tiburon
Del Mar Valley
2010 Supplemental
Utility Undergrounding Assessment District
WHEREAS, at the direction of this Town Council of the Town of Tiburon (this
"Town Council") by its resolution of intention, adopted this same date (the "Resolution of
Intention"), NBS, as District Engineer (the "District Engineer") for improvement proceedings in
the proposed "Del Mar Valley 2010 Supplemental Utility Undergrounding Assessment District,
Town of Tiburon, County of Marin, State of California" (the "New Supplemental District"), has
filed with the Town Clerk the written report (the "Engineer's Report") described in Section
10204 of the Streets and Highways Code (the "Code"), said Section 10204 being a provision of
the Municipal Improvement Act of 1913, being Sections 10000 and following of the Code (the
"1913 Act"), and containing the matters required by Section 10204, Article XIIID of the
California Constitution ("Article XIIID") and Section 53753 of the Government Code ("Section
53753"), and it is appropriate for this Town Council to preliminarily approve the Engineer's
Report and to schedule the public hearing respecting the proposed New Supplemental District in
general and the contents of the Engineer's Report in particular; and
WHEREAS, by the Resolution of Intention, this Town Council approved a
boundary map for the New Supplemental District (the "New Supplemental District Boundary
Map") and authorized and directed the Town Clerk to provide for the filing of a copy thereof in
the official records of the Marin County Recorder; and
WHEREAS, as directed by this Town Council in the Resolution of Intention, the
District Engineer has included in the Engineer's Report the information specified by Part 7.5 of
Division 4 of the Code ("Division 4"), and on the basis of the information provided by the
Engineer's Report, this Town Council hereby finds and determines that the total amount of the
principal sum of all remaining unpaid special assessments previously levied against the parcels
proposed to be assessed in the New Supplemental District, plus the principal amount of the New
Supplemental Assessments proposed to be levied in these proceedings for the New Supplemental
District, does not exceed one-half of the total value of the parcels proposed to be assessed in
these proceedings for the New Supplemental District, all as provided by Section 2961 of the
Code;
NOW THEREFORE, THE TOWN COUNCIL OF THE TOWN OF TIBURON
HEREBY FINDS, DETERMINES, DECLARES AND RESOLVES as follows:
1. This Town Council preliminarily approves the Engineer's Report without
modification, for the purpose of conducting a public hearing with respect to the New
Supplemental District and the Engineer's Report, as provided in the 1913 Act, Article XIIID, and
Section 53753. Said report shall stand as the report for the purpose of all subsequent
proceedings under the 1913 Act and Section 53753, except that it may be confirmed, modified,
or corrected as provided in the 1913 Act.
2. This Town Council hereby sets 7:30 o'clock P.M. or as soon thereafter as
the matter may be heard, on July 21, 2010, in the Council Chambers at 1505 Tiburon Boulevard,
Tiburon, California, as the date, time and place for a public hearing of protests to the proposed
utility undergrounding project (the "Reduced Project," as said term is defined in the Resolution
of Intention), the proposed levy of the New Supplemental Assessments, the estimate of the costs
and expenses to be partially funded by the New Supplemental Assessments, the amounts of
individual New Supplemental Assessments, and any other matters related to the proposed New
Supplemental District, the New Supplemental Assessments, the Reduced Project, or the
Engineer's Report; and any interested person may appear and object to or express support for
any of the foregoing.
3. The Town Clerk is hereby directed to cause a notice of said public hearing
to be given by mailing notices thereof, together with assessment ballots, in the time, form and
manner provided by Section 53753, and upon the completion of the mailing of said notices and
assessment ballots, the Town Clerk is hereby directed to file with this Town Council an affidavit
setting forth the time and manner of the compliance with the requirements of law for mailing
said notices and assessment ballots.
4. Based upon the finding and determination set forth in the last recital
paragraph above in this resolution, this Town Council further finds and determines that the
requirements of Division 4 have been satisfied. This Town Council hereby declares that this
action shall represent "final action" for purposes of Section 3012 of Division 4.
5. This Town Council hereby expressly finds and determines that the
Reduced Project is categorically exempt from the provisions of the California Environmental
Quality Act ("CEQA"). This Town Council hereby directs the preparation of a Notice of
Exemption, indicating that the Reduced Project is categorically exempt from the provisions of
CEQA, and further directs that said Notice of Exemption be filed with the Marin County Clerk
for posting in accordance with CEQA.
2
PASSED AND ADOPTED at a regular meeting of the Town Council of the Town of
Tiburon, State of California, held this 2nd day of June, 2010 by the following vote:
AYES: COUNCILMEMBERS:
NOES: COUNCILMEMBERS:
ABSENT: COUNCILMEMBERS:
RICHARD COLLINS, MAYOR
TOWN OF TIBURON
DIANE CRANE IACOPI, TOWN CLERK1430851.2
1430851.1
3
Town of Tiburon
Preliminary Engineer's Report
Del Mar Valley 2010 Supplemental Utility Undergrounding
Assessment District
Prepared under the Provisions of the 1931 Municipal
Improvement Act
May, 2010
Submitted by
NIBIS
Main Office
32605 Temecula Parkway, Suite 100
Temecula, CA 92592
800.676.7516
Regional Office
870 Market Street, Suite 1223
San Francisco, CA 94102
800.434.8349
TOWN OF TIBURON
DEL MAR VALLEY 2010 SUPPLEMENTAL
UTILITY UNDERGROUNDING ASSESSMENT DISTRICT
TOWN COUNCIL
Richard Collins, Mayor
Jeff Slavitz, Vice Mayor
Alice Fredericks, Councilmember
Jim Fraser, Councilmember
Emmett O'Donnell, Councilmember
TOWN STAFF
Margaret (Peggy) Curran, Town Manager
Ann Danforth, Town Attorney
Nicholas Nguyen, Director of Public Works/Town Engineer
NBS
Tim Seufert, Client Services Director
K. Dennis Klingelhofer, P.E., Assessment Engineer
Nick Dayhoff, Financial Analyst
MEYERS, NAVE, RIBACK, SILVER & WILSON
Sam Sperry, Bond Counsel
WULFF, HANSEN & CO.
Mark Pressman, Underwriter
TABLE OF CONTENTS
1. ENGINEER'S LETTER & CERTIFICATIONS 1-1
2. INTRODUCTION 2-1
2.1. Background of District 2-1
2.2. Reason for Proposed Assessment 2-1
3. PLANS AND SPECIFICATIONS 3-1
3.1. Description of Improvements and Services 3-1
4. ESTIMATE OF COSTS 4-1
4.1. District Budget ..............................................................................................4-1
4.2. Annual Adminstrative Assessment ...............................................................4-2
5. METHOD OF ASSESSMENT 5-3
5.1. General ........................................................................................................5-3
5.2. General Benefit 5-3
5.3. Special Benefit 5.4
5.4. Method of Assessment Spread 5-8
6. ASSESSMENT DIAGRAM, ASSESSMENT ROLL AND
PROPERTY OWNER LIST 6-1
6.1. Assessment Diagram 6-1
6.2. Assessment Roll 6-1
6.3. Property Owner Names and Addresses 6-7
7. APPENDIX A-1
7.1. Summary of Benefit Points Assigned by Parcel ...........................................A-2
1. ENGINEER'S LETTER & CERTIFICATIONS
AGENCY:
TOWN OF TIBURON
PROJECT: DEL MAR VALLEY 2010 SUPPLMENTAL UTILITY UNDERGROUNDING
ASSESSMENT DISTRICT
TO: TOWN COUNCIL
ENGINEER'S "REPORT" PURSUANT TO THE
PROVISIONS OF SECTION 10204
OF THE STREETS AND HIGHWAYS CODE
Pursuant to the provisions of Article XIIID of the State Constitution and the "Municipal Improvement
Act of 1913", being Division 12 of said Code, and the Resolution of Intention, adopted by the Town
Council of the TOWN OF TIBURON, State of California, in connection with the proceedings for Del
Mar Valley 2010 Supplemental Utility Undergrounding Assessment District (hereinafter referred to as
the "Assessment District"), I, K. Dennis Klingelhofer, P.E., a Registered Professional Engineer and
authorized representative of NBS, the duly appointed Engineer of Work, herewith submits the
"Report" for the Assessment District, consisting of six (6) parts as stated below.
a. The plans and specifications which describe the general nature, location and extent of the
proposed improvements.
b. An estimate of the cost of the proposed improvements, including capitalized interest, if any,
incidental costs and expenses in connection therewith.
c. The proposed maximum annual administrative assessment to be levied upon each
subdivision or parcel of land within the Assessment District to pay the costs incurred by the
TOWN OF TIBURON, and not otherwise reimbursed, resulting from the administration and
collection of assessments or from the administration and registration of any associated bonds
and reserve or other related funds.
d. The proposed assessment of the total amount of the costs and expenses of the proposed
improvements upon the several subdivisions of land within the Assessment District, in
proportion to the estimated special benefits to be received by such subdivisions from said
improvements.
e. A map showing the boundaries of the Assessment District, the boundaries and the
dimensions of the subdivisions of land within said Assessment District, as the same existed
at the time of the passage of the Resolution of Intention.
f. The following certificates:
a. Right-of-Way Certificate
b. Environmental Certificate
Del Mar Valley 2010 Supplemental Utility Undergrounding Assessment District
Town of Tiburon
Prepared by NBS
1-1
This report is submitted on the day of , 2010.
K. DENNIS KLINGELHOFER, P.E.
ENGINEER OF WORK
STATE OF CALIFORNIA
CERTIFICATES
1. I, the Town Clerk of the Town of Tiburon, County of Marin, State of California, hereby certify
that the Preliminary Assessment and Preliminary Assessment Roll in this Engineer's Report,
in the amounts set forth herein, with the Assessment Diagram attached, was filed with me on
.2010.
Diane Crane lacopi
Town Clerk, Town of Tiburon
2. I, the Town Clerk of the Town of Tiburon, County of Marin, State of California, hereby certify
that the Confirmed Assessment in this Engineer's Report, in the amounts set forth herein,
was approved and confirmed by the Town Council of the Town of Tiburon on
, 2010, by resolution No.
Diane Crane lacopi
Town Clerk, Town of Tiburon
3. I, the Director of Public Works/Town Engineer of the Town of Tiburon, County of Marin, State
of California, hereby certify that the Assessment in this Engineer's Report, together with the
Assessment Diagram thereto attached, was recorded in my office on ,
2010.
Nicholas T. Nguyen, P.E.
Director of Public Works / Town Engineer
Del Mar Valley 2010 Supplemental Utility Undergrounding Assessment District
Town of Tiburon
Prepared by NBS
1-2
2. INTRODUCTION
2. 1. Background of District
The improvements contemplated by this report have an unusual history. In 2003, a group of Town
residents initiated the process of forming an assessment district to underground the overhead utilities
in the Del Mar neighborhood. In May of 2005, after holding the required public hearings and majority
protest balloting, the Town Council formally established the undergrounding district. Two months
later, the Council authorized a bond issue. The Town then solicited bids through formal competitive
bidding. After opening the bids, the Town found that all bids exceeded the construction estimate
used in the 2005 Engineer's Report to determine the amount of funds needed for the project. As a
result, the Town had a significant financing gap. In addition, two district residents filed suit
challenging the district: Bonander v. Town of Tiburon (Bonander I).
To close the gap, the Town initiated a second assessment district process. Again, the property owner
ballots showed no majority protest and the Council formally established the district in May of 2006.
The Engineer's Report for the supplemental district used the same methodology as the 2005 Report.
To resolve any doubts regarding this district's formation, the Town initiated a validation action: Town
of Tiburon v. All Persons Interested, etc. (Bonander II). The Bonander I plaintiffs filed a cross-
complaint, joined by the owners of 19 other parcels.
On December 31, 2009, the Court of Appeals ruled that the supplemental district formation process
violated Proposition 218 because the Engineer's Report had divided the district parcels into three
zones and allocated assessments among parcels based on the cost on undergrounding in their
respective zones. As a result of this ruling, the Town entered into a settlement agreement with the
Bonander I plaintiffs. Pursuant to this agreement, the Town deleted two zones, which effectively
cured the defect that invalidated the old supplemental district. This action leaves nine parcels in the
district that are owned by plaintiffs in the Bonander 11 case. The settlement agreement provides that
the Town will contribute funds to cover any assessments that the district would otherwise impose on
those nine parcels. The Town also adopted a resolution abandoning the 2006 supplemental district
on May 19, 2010.
2.2. Reason for Proposed Assessment
With the resolution of the legal actions, property owners within the Del Mar Valley Utility
Undergrounding Assessment now wish to proceed with the formation of the new Del Mar Valley 2010
Supplemental Utility Undergrounding Assessment District to provide the additional funds which will be
required for the undergrounding of the existing overhead utilities within the boundaries of the
assessment district.
Del Mar Valley 2010 Supplemental Utility Undergrounding Assessment District
Town of Tiburon
Prepared by NBS
2-1
3. PLANS AND SPECIFICATIONS
3.1. Description of Improvements and Services
The plans and specifications to construct the utility undergrounding improvements and any ancillary
improvements thereof, for the area generally described as "Del Mar Utility Undergrounding
Assessment District" dated December 5, 2005 as prepared by Harris Engineer's and the various utility
companies and are on file in the office of the Town Engineer. These plans will be revised to remove
the utility undergrounding improvements which would serve the 39 properties within the Hacienda
Zone and the 18 parcels within the Hawthorne Zone which have been removed from the District.
A general description of the improvements to be financed by the Supplemental Assessment District
and the balance of funds available for the construction of improvements for the Del Mar Valley Utility
Undergrounding District will include the undergrounding of existing overhead electric, telephone and
cable services serving the parcels within the Supplemental Assessment District. This work will
include the removal of poles and overhead wires, guys and anchors, and the installation of
streetlights, conduit, and electric, telephone and cable services, appurtenances and appurtenant
work. The existing overhead utilities will be undergrounded in the following streets:
Street
From
To
Avenue Mira Flores
Tiburon Blvd.
450 ft East of Hilary Dr.
Hilary Drive
Avenue Mira Flores
750 ft South of Ave. Mira Flores
Hilary Drive
Avenue Mira Flora
end North of Ave.Mila Flores
Howard Drive
Hilary Drive
termination
Rowley Circle
Howard Drive
Geldert Drive
Geldert Drive
Hilary Drive
Porto Marino Drive
Wilkens Court
Geldert Drive
termination
Malvino Court
Geldert Drive
termination
Mark Terrance
Geldert Drive
termination
Porto Marino Drive
north terminus
250 ft East of Geldert Dr.
Ham Court
Howard Drive
termination
Each property owner within the Assessment District will be responsible for arranging for, and paying
for, the work necessary on his or her property to connect the underground utility facilities constructed
within the public right-of-way or easements to the points of connection on private property.
Conversion of the individual service connections on private property is the responsibility of the
property owner and is not included in the work to be funded by the Assessment District.
Del Mar Valley 2010 Supplemental Utility Undergrounding Assessment District
Town of Tiburon
Prepared by NBS
3-1
4. ESTIMA TE OF COSTS
4.1. District Budget
Table 1 below shows the estimated costs for the improvements based upon the plans and
specifications which have been prepared for the construction of the improvements and includes the
costs of district formation.
Table 1
Estimated Costs
Town of Tiburon, CA
Del Mar Valley 2010 Supplemental Utiltiy Undergrounding Assessment District
Estimated Costs
Preliminary as
Approved Confirmed
Estimate of Construction Costs
Joint Trench Costs
$ 2,988,155.00
PG&E Costs
$ 489,000.00
SBC Costs
$ 40,000.00
Comcast Costs
$ 40,000.00
Sub-total
$ 3,557,155.00
Contingency (23%)
$ 824,068.20
Total Estimate of Probable Construction Costs
$ 4,381,223.20
less available Construction Funds from priordistrict
$ 3,155,035.00
Sub-total
$ 1,226,188.20
Incidental Expenses
Design Engineering
$ 125,000.00
Utilities - Engineering
$ 75,000.00
Construction Inspection, Administration and Testing
$ 300,000.00
Reimbursement of Assessments Paid by Deleted Parcels
$ 415,399.00
Sub-total
$ 915,399.00
Total Costs of Improvements
$ 2,141,587.20
District Formation
Assessment Engineering
$ 13,500.00
Bond Counsel
$ 48,000.00
Underwriters Discount
$ 58,285.00
Town Adminstration
$ 1,000.00
Printing, Advertising,
$ 24,355.00
Paying Agent
$ 2,500.00
Sub-total
$ 147,640.00
Bond Reserve
2% of Bonds Issued
$ 42,214.80
Total District Costs
$ 2,331,442.00
Revenues
Less Town Contributions for 9 parcels and school district- new Supplemental District
$ (220,701.94)
Total Amount to Assessment
$ 2,110,740.06
Del Mar Valley 2010 Supplemental Utility Undergrounding Assessment District
Town of Tiburon
Prepared by NBS
4-1
As shown in the cost estimate, the Estimate of Probable Construction Cost is based upon the 2006
cost estimate prepared by Harris & Associates and has not been increased. The contingency has
been increased from 15% to 23% to account for changes in construction costs. The amount shown
as "available Construction Funds from prior district" represents the net proceeds remaining in the
Improvement Fund for the Del Mar Valley Utility Undergrounding Assessment District after the
repayment of all costs as stipulated in the Settlement Agreement for parcels removed from the
assessment district including the amount shown as ".Reimbursement of Assessments Paid by
Deleted Parcels". It is also anticipated that the Town will make a contribution to the District equal to
the assessment for the nine (9) parcels and the ten (10) school district owned parcels for the 2010
Supplemental District.
The Total Amount to Assessment shown will be assessed to each property in accordance with the
Method of Assessment as shown in Section 5 of this report. The cost shown are preliminary
estimates and the Town contribution will be adjusted as necessary based upon the final cost of the
project.
4.2. Annual Adminstrative Assessment
A proposed maximum annual administrative assessment shall be levied on each parcel of land and
subdivision of land within the Assessment District to pay for necessary costs and expenses incurred
by the Town of Tiburon, and not otherwise reimbursed, resulting from the administration and
collection of assessments and/or from the administration or registration of any bonds and reserve or
other related funds. This maximum assessment hereinafter set forth, is authorized pursuant to the
provisions of Section 10204(f) of the Streets and Highways Code, and said maximum assessment
shall not exceed fifty dollars ($50.00) per parcel per year, subject to an annual increase based on the
Consumer Price Index (CPI), during the preceding year ending in January, for all Urban Consumers
in the San Francisco-Oakland-San Jose areas.
The annual administrative assessment will be allocated on an equal basis to each parcel and shall be
collected in the same manner and in the same installments as the assessment levied to pay for the
cost of the works of improvement.
Del Mar Valley 2010 Supplemental Utility Undergrounding Assessment District
Town of Tiburon
Prepared by NBS
4-2
5. METHOD OF ASSESSMENT
5.1. General
Since the improvements are to be funded by the levying of assessments, the "Municipal Improvement
Act of 1913" and Article XIIID of the State Constitution require that assessments must be based on
the estimated special benefit that the properties receive from the works of improvement. In addition,
Article XIIID, Section 4 of the State Constitution requires that a parcel's assessment may not exceed
the reasonable cost of the proportional special benefit conferred on that parcel. Section 4 provides
that only special benefits are assessable and the local agency levying the assessment must separate
the general benefits from the special benefits. It also requires that publicly owned property which
specially benefit from the improvements be assessed. Neither the Act nor the State Constitution
specifies the method or formula that should be used to apportion the costs to properties in any special
assessment district proceedings.
The responsibility for recommending an apportionment of the costs to properties which specially
benefit from the improvements rests with the Assessment Engineer, who is appointed for the purpose
of making an analysis of the facts and determining the correct apportionment of the assessment
obligation. In order to apportion the assessments to each parcel in direct proportion with the special
benefit which it will receive from the improvements, an analysis has been completed and is used as
the basis for apportioning costs to each property within the Assessment District.
Based upon an analysis of the special and direct benefit to be received by each parcel from the
construction of the works of improvement, the Assessment Engineer recommends the apportionment
of costs as outlined below. The final authority and action rests with the Town Council after hearing all
testimony and evidence presented at a public hearing and tabulating the assessment ballots
previously mailed to all record owners of property within the Assessment District.
Upon the conclusion of the public hearing, the Town Council must make the final determination
whether or not the assessment spread has been made in direct proportion to the estimated special
benefits received by each parcel within the Assessment District. Ballot tabulation will be finalized at
that time and, if a majority of the ballots submitted, weighted by assessment amount, are in
opposition to the Assessment District, then the District must be abandoned. If this is not the case,
then the Town Council shall form the Assessment District and levy the special assessment against
the parcels therein.
The following sections set forth the methodology used to apportion the costs of the improvements to
each parcel.
5.2. General Benefit
Section 4 of Article XIIID of the California Constitution provides that, once parcels a local agency
which proposes to impose assessments on property has identified those parcels that will have special
benefits conferred upon them and upon which an assessment will be imposed, the local agency must
next "separate the general benefits from the special benefits conferred," and only the special benefits
can be included in the amount of the assessments imposed.
Del Mar Valley 2010 Supplemental Utility Undergrounding Assessment District
Town of Tiburon
Prepared by NBS
5-3
In this Assessment District, the improvement work being financed consists of the undergrounding of
only those existing overhead utility facilities which are situated within the public rights-of-way of the
streets situated within the boundary of the Assessment District and the subsequent removal of the
existing overhead facilities, including the utility poles on which the existing facilities are situated. Only
parcels which front on those streets within the Assessment District are being assessed. Accordingly,
there is a direct physical and visual nexus between each parcel being assessed and the improvement
work which is being financed by proceeds of the proposed supplemental assessments.
In addition, none of the streets within the Assessment District are designated in the Transportation
Element of the Town's General Plan as either an "arterial" or a "major collector," which would signify
the anticipated utilization of such streets to accommodate through traffic, as opposed to local travel,
with the local travel trips either originating from property within the Assessment District or destined to
such property from outside the Assessment District. Furthermore, no part of the area within the
Assessment District is designated in any way as a scenic area.
Under these circumstances, all of the benefits conferred are direct and local in nature, and there are
no general benefits.
Buttressing this analysis of the specific property within the Assessment District is the set of policies
embedded in Rule 20 of the California Public Utilities Commission pertaining to the undergrounding of
existing overhead utility facilities. Based upon those procedures and policies, the local utility, subject
to the availability of funding through local utility rate proceeds, will fund the undergrounding of existing
overhead facilities if they produce a benefit to the general public, based upon satisfying one or more
of these criteria:
• The location has an unusually heavy concentration of overhead facilities.
• The location is heavily traveled.
• The location qualifies as an arterial or major collector road in a local government's general
plan.
• The overhead equipment must be located within or pass through a civic, recreational or
scenic area.
The area within the Assessment District does not meet any of these criteria and the undergrounding
of the existing overhead utilities would not qualify for funding under Rule 20 since no benefit would be
derived by the general public from the undergrounding of the existing overhead utilities. Further,
properties outside the boundaries of the Assessment District would not receive a special benefit as
described below with regards to improved property aesthetics, improved safety, or improved service
reliability which is a direct result of the undergrounding of the existing overhead utilities within the
Assessment District. Any benefits to the public which may travel through the Assessment District are
intangible and are not quantifiable. Based upon this, NBS has determined that there is no general
benefit to the surrounding community and the public in general from the undergrounding of these
local overhead utilities, and therefore no portion of the project costs should be attributed to general
benefit.
5.3. Special Benefit
A detailed analysis of the assessment methodology used to apportion the special benefit to the
parcels within the Del Mar Valley Area for the formation of the existing Del Mar Valley Utility
Undergrounding District was made. That analysis found that the methodology used to identify the
special benefit received by parcels, and to apportion it relative to the special benefit received by each
of the 167 parcels within the Del Mar Valley Area, that are within the proposed boundaries of this
Del Mar Valley 2010 Supplemental Utility Undergrounding Assessment District
Town of Tiburon
Prepared by NBS
5-4
District, was done in accordance with the requirements of the Act. Therefore, that methodology has
been used to establish the special benefit to individual parcels using the Benefit Point System as
established for the formation of the Del Mar Valley Undergrounding District.
As set forth in the Engineer's Report prepared by Harris & Associates, dated May 12, 2005 for the
establishment of the Del Mar Undergrounding Assessment District:
"Each parcel of land is assigned Benefit Points (BP's) in proportion to the estimated
special benefit the parcel receives relative to the other parcels within the
Assessment District from the Utility Undergrounding Improvements. The highest and
best use of each property is the basis on which the Benefit Points are assigned. For
example, an R-I zoned residential property with two dwelling units is considered as
having 2 dwelling units even though its current zoning only allows one dwelling unit, and a
vacant property is considered developed to its highest potential and connected to the
system. The special benefits from undergrounding the overhead utilities are segregated
into three (3) categories, which are discussed below:
Improved Property Aesthetics Benefit. This benefit relates to the improved
aesthetics due to the removal of overhead wires and utility poles from view. Per
the Tiburon Municipal Code, Section 15.2, view is defined as follows: "The term
'view' includes both upslope and downslope scenes The aesthetic benefit of
removing poles and overhead lines adjacent to properties is deemed to be the
same for all properties, whether or not one property is thought to have a better
view than another, because the increase in property value from the
improvements is considered the same on a percentage basis. Also, there is no
way to judge the view from a vacant property and developed properties can
reconstruct buildings to change view characteristics. Parcels that are directly
adjacent to the facilities to be underground and that view wires or poles from any
part of the property are considered to receive special benefit from the
undergrounding project. Therefore, these properties are assigned one (1)
Aesthetic Benefit Point (ABP) per parcel for Improved Property Aesthetics.
- Improved Safety Benefit. This benefit relates to the improved safety of having
the overhead wires placed underground and having the power poles removed,
which eliminates the threat of downed power lines and poles due to wind, rain
and other unforeseeable events. All parcels that are connected to and are
directly adjacent to the utilities being placed underground are considered to
receive the same special benefit from the undergrounding project. Therefore,
these properties are assigned one (1) Safety Benefit Point (SBP) for Improved
Safety.
- Improved Service Reliability Benefit. This benefit relates to the enhanced
reliability of service from the utilities being placed underground due to having all
new wires and equipment and having that equipment underground, which
reduces the threat of service interruption from downed power lines. All
properties that receive service from the facilities to be underground are
considered to receive special benefit based on the relative energy usage
associated with the type of use on the property.
In order to allocate this benefit fairly between the parcels, a methodology is proposed
which equates different residential and non-residential land uses to each other, thereby
allowing a uniform method of comparison. The single-family residential (SFR) parcel is
used as the basic unit of comparison. A SFR parcel equals one (1) Reliability Benefit
Point (RBP). Every other land use is converted to RBP's as described below.
Del Mar Valley 2010 Supplemental Utility Undergrounding Assessment District
Town of Tiburon
Prepared by NBS
5-5
Other residential properties are compared to a SFR parcel based on the number of
potential or actual dwelling units on them, whichever is higher. These other residential
properties consist of two parcels with 2 dwelling units on them. Based on the Marin
County Assessor's data, the building areas per dwelling unit for these parcels are
between 1,000 square feet (sf) and 1,499 sf. The median SFR dwelling in this
Assessment District is approximately 2,600 sf. Looking at the PG&E Design
Electrical Manual for the North Bay Area, which includes Tiburon, dwelling units between
1,000 sf and 1,499 sf use approximately 70% of the energy that dwelling units between
1,500 sf and 3,000 sf do. Therefore, multiple residential properties are assigned 0.70
RBP's for each potential or actual dwelling unit on them based on the current zoning on
the property.
Non-residential properties are converted to RBP's based on the estimated amount of
usage for the type of property as compared with a SFR per the PG&E Design Electrical
Manual for the North Bay. There is one non-residential use within the Assessment District
boundaries: a School. The following table shows how the RBP equivalencies are
calculated:
Reliability Benefit Point (RBP) Equivalency Table
Use
Peak Usage
Bldg SF
Estimated
Usage VA
Equivalent
RBP's
SFR
7,500 VA/DU
7,500
1.0
2 DU
5,300 VA/DU
5,300
0.7
School
2.3 VA/B/d SF
50, 000
115,000
15.3
VA = Volt Amps DU = Dwelling Unit Bldg SF = Building Square Feet
The three categories of Benefit Points are added together for each property to calculate
the Total Benefit Points:
Safety Benefit Points + Reliability Benefit Points + Aesthetics Benefit Points=Total
Benefit Points
The following table provides an example of how the Benefit Points are calculated for the
various land uses.
Sample Typical Benefit Point Calculation Table
Potential
Existing
Highest
Aesthetics
Safety
Reliability
Total
Number
Number
Benefit
+
Benefit
+
Benefit
=
Benefit
of Units
of Units
Use
Points
Points
Points
Points
1
1
SFR
1
+
1
+
1.0
=
3
1
2
2DU
1
+
1
+
1.4
=
3.4
n/a
n/a
School
1
+
1
+
15.3
=
17.3
The school property consists of 10 individual Assessor's Parcel Numbers (APN's) and
the Benefit Points are apportioned equally to each. "
Exceptions
Del Mar Valley 2010 Supplemental Utility Undergrounding Assessment District
Town of Tiburon
Prepared by NBS
5-6
There is on area within the assessment district boundaries that appears to have all of
the overhead utility lines directly adjacent to the properties already underground:
- Geldert Court, a public street within the Del Mar Valley Area
The properties taking service and access from these roads are exceptions to the above
outlined Benefit Point assignments.
These properties are considered to receive half the benefit from service reliability,
as their small systems are completely surrounded by and dependent on the larger
overall system that is to be undergrounded, and half the benefit from improved
safety, as ingress and egress from their property is directly affected by overhead
lines and poles.
The properties that have no frontage along roadways that have poles and wires
along them do not receive any benefit from aesthetics. The following table shows
how the Benefit Points are calculated.
Potential
Existing
Highest
Aesthetics
Safety
Reliability
Total
Number
Number
Use
Benefit
+
Benefit
+
Benefit
=
Benefit
of Units
of Units
Points
Points
Points
Points
SFR no
1
1
frontage
0
+
0.5
+
0.5
=
1
The following is a list of Assessment Numbers (Asmt #'s) and Assessor's Parcel
Numbers (APN's) for properties with this benefit:
Geldert Court
Asmt # 114, APN 039-261-01
Asmt # 113, APN 039-261-02
Asmt # 112, APN 039-261-03
The properties that also have frontage on roadways that have poles and wires
along them receive half the benefit from aesthetics. The following table shows
how the Benefit Points are calculated for these properties.
Potential
Existing
Highest
Aesthetics
Safety
Reliability
Total
Number
Number
Use
Benefit
+
Benefit
+
Benefit
=
Benefit
of Units
of Units
Points
Points
Points
Points
SFR
1
1
with
0.5
+
0.5
+
0.5
=
1.5
frontage
The following is a list of Assessment Numbers (Asmt #'s) and Assessor's Parcel
Numbers (APN's) for properties with this benefit:
Geldert Court
Asmt # 111, APN 039-261-04
Exemptions
Del Mar Valley 2010 Supplemental Utility Undergrounding Assessment District
Town of Tiburon
Prepared by NBS
5-7
The following types of parcels are considered to be exempt from the assessment due to
their having no benefit from the improvements because they have virtually no
potential for development. These properties are assigned 0 Benefit Points:
• Parcels that are unbuildable because they are too small or are part of tidal
lands
• Parcels that are too small for a dwelling unit but have ancillary uses to other
residential properties, such as garages or carports.
• Parcels that are designated as Open Space. `
Each parcel within the boundaries of the district has been assigned Benefit Points based upon this
methodology.
In addition, while not specifically identified in the assessment methodology used in the Harris &
Associates report, the special benefit which can be attributed to improved property aesthetics can be
further supported by the reduction in the degree and amount of tree trimming required to
accommodate the presence of the existing overhead utilities. With the removal of the existing
overhead utilities, existing trees do not have to be trimmed as frequently and can be allowed to have
a more pleasing and full shape which enhances the aesthetics of the neighborhood.
5.4. Method of Assessment Spread
Based upon the methodology described above, the special benefits received by each of the
properties in proportion to the Benefit Points assigned are included in the appendix. Incidental
Expenses and Financial Cost have been have been assessed to each parcel on a pro-rata basis
relative to the improvement cost allocated to each parcel.
Del Mar Valley 2010 Supplemental Utility Undergrounding Assessment District
Town of Tiburon
Prepared by NBS
5-8
6. ASSESSMENT DIAGRAM, ASSESSMENT ROLL
AND PROPERTY OWNER LIST
6.1. Assessment Diagram
A reduced copy of the Assessment Diagram is attached hereto. Full-sized copies of the Boundary
Map and Assessment Diagram are on file in the Office of the Town Clerk, of the Town of Tiburon.
As required by the Act, the Assessment Diagram shows the exterior boundaries of the assessment
district and the assessment number assigned to each parcel of land corresponding to its number as it
appears in the Assessment Roll shown in Table 2. The Assessor's parcel number is also shown for
each parcel as they existed at the time of the passage of the Resolution of Intention and reference is
hereby made to the Assessor's Parcel Maps of the County of Marin for the boundaries and
dimensions of each parcel of land.
6.2. Assessment Roll
A listing of parcels assessed and the proposed assessment amounts for each parcel is shown in
Table 2. As required by Section 2961 of the 1931 Act, the total amount of the principal sum of the
assessments proposed to be levied for the District, together with the principal amount of all other
assessments levied or proposed to be levied on the properties within the District does not exceed
one-half of the total true value of the parcels proposed to be assessed for the Assessment District.
True value of the parcels means the full cash value of the land and improvements thereon as defined
in Article XIIIA of the Constitution of the State of California and as shown on the last equalized
assessment roll of the County of Marin. The aggregate of existing and proposed assessment liens
shown exclude the liens for the 9 parcels that will be paid-off by the Town under the Settlement
Agreement
Del Mar Valley 2010 Supplemental Utility Undergrounding Assessment District
Town of Tiburon
Prepared by NBS
6-1
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Del Mar Valley 2010 Supplemental Utility Undergrounding Assessment District
Town of Tiburon
Prepared by NBS
6-1
Table 2
Assessment Roll
smt.
No.
PN
otal Assessed
Value 11
Aggregate
of Existing
&
Proposed
Liens ti
alve to Lien
Ratio
Assessment
as
Preliminarily
Approved
Assessment as
Confirmed and
Recorded
1
055-142-03
$ 159,455
$ 34,507
10.77
$14,812.21
2
055-142-04
$ 149,434
$ 34,507
10.09
$14,812.21
3
055-142-17
$ 911,809
$ 34,507
61.56
$14,812.21
4
055-142-06
$ 895,985
$ 34,507
60.49
$14,812.21
5
055-142-21
$ 1,314,650
$ 34,507
88.75
$14,812.21
6
055-142-19
$ 162,758
$ 34,507
10.99
$14,812.21
7
055-142-16
$ 511,520
$ 39,041
34.53
$14,812.21
8
055-142-01
$ 492,719
$ 34,507
33.26
$14,812.21
9
055-142-08
$ 1,377,000
$ 34,507
92.96
$14,812.21
10
055-142-09
$ 821,236
$ 34,507
55.44
$14,812.21
11
055-142-10
$ 260,405
$ 34,507
17.58
$14,812.21
12
055-142-11
$ 1,604,917
$ 34,507
108.35
$14,812.21
13
055-142-12
$ 205,908
$ -
-
$0.00
14
055-142-13
$ 145,618
$ -
-
$0.00
15
055-142-14
$ 176,081
$ -
-
$0.00
16
055-182-06
$ 1,529,101
$ 34,507
103.23
$14,812.21
17
055-182-07
$ 667,283
$ 34,507
45.05
$14,812.21
18
055-183-01
$ 285,816
$ 34,507
19.30
$14,812.21
19
055-183-02
$ 632,452
$ 34,507
42.70
$14,812.21
20
055-183-03
$ 977,936
$ 34,507
66.02
$14,812.21
21
055-144-01
$ 294,465
$ 34,507
19.88
$14,812.21
22
055-144-02
$ 1,636,625
$ 34,507
110.49
$14,812.21
23
055-144-03
$ 1,438,080
$ 34,507
97.09
$14,812.21
24
055-144-04
$ 1,617,952
$ 34,507
109.23
$14,812.21
25
055-144-05
$ 296,588
$ 34,507
20.02
$14,812.21
26
055-144-06
$ 672,805
$ 34,507
45.42
$14,812.21
27
055-143-01
$ 1,084,353
$ -
-
$0.00
28
055-143-02
$ 189,413
$ -
-
$0.00
29
055-143-03
$ 1,376,603
$ 34,507
92.94
$14,812.21
30
055-143-04
$ 2,000,000
$ 34,507
135.02
$14,812.21
31
039-135-02
$ 142,767
$ 34,507
9.64
$14,812.21
32
039-135-01
$ 435,208
$ 14,812
29.38
$14,812.21
33
039-135-03
$ 155,393
$ 14,812
10.49
$14,812.21
34
039-135-04
$ 160,862
$ 34,507
10.86
$14,812.21
35 1
1039-135-051
$ 147,759
$ 34,507
9.98
$14,812.21
Del Mar Valley 2010 Supplemental Utility Undergrounding Assessment District
Town of Tiburon
Prepared by NBS
6-2
Table 2
Assessment Roll (continued)
smt.
No.
PN
otal Assessed
Value 11
Aggregate
of Existing
&
Proposed
Liens ti
alve to Lien
Ratio
Assessment
as
Preliminarily
Approved
Assessment as
Confirmed and
Recorded
36
039-135-06
$ 153,360
$ -
-
$0.00
37
039-135-07
$ 533,789
$ 34,507
36.04
$14,812.21
38
055-141-01
$ 492,075
$ 34,507
33.22
$14,812.21
39
055-141-02
$ 146,572
$ 34,507
9.90
$14,812.21
40
055-141-03
$ 603,097
$ 39,041
40.72
$14,812.21
41
055-141-07
$ -
$ -
-
$0.00
42
055-141-05
$ -
$ -
-
$0.00
43
039-134-13
$ -
$ -
-
$0.00
44
039-134-12
$ -
$ -
-
$0.00
45
039-134-11
$ -
$ -
-
$0.00
46
039-134-10
$ -
$ -
-
$0.00
47
039-134-09
$ -
$ -
-
$0.00
48
039-134-08
$ -
$ -
-
$0.00
49
039-134-17
$ -
$ -
-
$0.00
50
039-134-15
$ -
$ -
-
$0.00
51
039-134-25
$ 1,716,660
$ 34,507
115.89
$14,812.21
52
039-134-27
$ 155,618
$ 34,507
10.51
$14,812.21
53
039-134-26
$ 217,783
$ 34,507
14.70
$14,812.21
54
039-134-22
$ 1,345,626
$ 34,507
90.85
$14,812.21
55
039-134-19
$ 265,828
$ 34,507
17.95
$14,812.21
56
055-102-27
$ 967,798
$ 34,507
65.34
$14,812.21
57
055-102-26
$ 150,388
$ 34,507
10.15
$14,812.21
58
055-102-25
$ 219,614
$ 34,507
14.83
$14,812.21
59
055-102-24
$ 501,269
$ 34,507
33.84
$14,812.21
60
055-102-30
$ 251,056
$ 34,507
16.95
$14,812.21
61
039-131-11
$ 246,844
$ 34,507
16.66
$14,812.21
62
039-131-10
$ 219,429
$ 34,507
14.81
$14,812.21
63
039-131-09
$ 257,130
$ 34,507
17.36
$14,812.21
64
039-131-14
$ 201,271
$ 34,507
13.59
$14,812.21
65
039-131-15
$ 178,701
$ 34,507
12.06
$14,812.21
66
039-131-06
$ 225,139
$ 34,507
15.20
$14,812.21
67
039-133-09
$ 174,605
$ 34,507
11.79
$14,812.21
68
039-133-10
$ 135,149
$ 34,507
9.12
$14,812.21
69
039-133-11
$ 1,128,733
$ 34,507
76.20
$14,812.21
70 1
1039-133-121
$ 1,499,960
$ 34,507
101.27
$14,812.21
Del Mar Valley 2010 Supplemental Utility Undergrounding Assessment District
Town of Tiburon
Prepared by NBS
6-3
Table 2
Assessment Roll (continued)
smt.
No.
PN
otal Assessed
Value 11
Aggregate
of Existing
&
Proposed
Liens ti
alve to Lien
Ratio
Assessment
as
Preliminarily
Approved
Assessment as
Confirmed and
Recorded
71
039-133-13
$ 163,876
$ 34,507
11.06
$14,812.21
72
039-133-14
$ 983,262
$ 34,507
66.38
$14,812.21
73
039-133-15
$ 1,144,919
$ 34,507
77.30
$14,812.21
74
039-133-08
$ 173,989
$ 34,507
11.75
$14,812.21
75
039-133-07
$ 271,198
$ 34,507
18.31
$14,812.21
76
039-133-06
$ 145,626
$ 14,812
9.83
$14,812.21
77
039-133-05
$ 171,702
$ -
-
$0.00
78
039-133-04
$ 1,178,959
$ 34,507
79.59
$14,812.21
79
039-133-03
$ 2,550,000
$ 34,507
172.16
$14,812.21
80
039-133-02
$ 170,711
$ 34,507
11.53
$14,812.21
81
039-133-01
$ 212,898
$ 34,507
14.37
$14,812.21
82
039-131-05
$ 457,803
$ 34,507
30.91
$14,812.21
83
039-131-04
$ 1,498,808
$ 34,507
101.19
$14,812.21
84
039-131-13
$ 525,557
$ 34,507
35.48
$14,812.21
85
039-131-12
$ 587,884
$ 34,507
39.69
$14,812.21
86
039-131-01
$ 513,532
$ 34,507
34.67
$14,812.21
87
039-141-01
$ 1,587,792
$ 34,507
107.19
$14,812.21
88
039-141-02
$ 256,432
$ 34,507
17.31
$14,812.21
89
039-141-03
$ 148,484
$ 39,041
10.02
$14,812.21
90
039-141-04
$ 1,546,434
$ 34,507
104.40
$14,812.21
91
039-141-05
$ 367,962
$ 34,507
24.84
$14,812.21
92
039-141-06
$ 1,579,968
$ 34,507
106.67
$14,812.21
93
039-141-07
$ 274,359
$ 34,507
18.52
$14,812.21
94
039-141-08
$ 1,650,000
$ 34,507
111.39
$14,812.21
95
039-141-09
$ 1,150,075
$ 34,507
77.64
$14,812.21
96
039-141-10
$ 278,058
$ 34,507
18.77
$14,812.21
97
039-141-11
$ 1,600,000
$ 34,507
108.02
$14,812.21
98
039-132-01
$ 379,746
$ 34,507
25.64
$14,812.21
99
039-132-02
$ 148,477
$ 34,507
10.02
$14,812.21
100
039-132-15
$ 1,550,000
$ 34,507
104.64
$14,812.21
101
039-132-14
$ 1,104,059
$ 34,507
74.54
$14,812.21
102
039-132-05
$ 804,778
$ 34,507
54.33
$14,812.21
103
039-132-06
$ 1,599,616
$ 34,507
107.99
$14,812.21
104
039-132-07
$ 369,091
$ 34,507
24.92
$14,812.21
105
039-132-08
$ 345,548
$ -
-
$0.00
Del Mar Valley 2010 Supplemental Utility Undergrounding Assessment District
Town of Tiburon
Prepared by NBS
6-4
Table 2
Assessment Roll (continued)
smt.
No.
PN
otal Assessed
Value's
Aggregate
of Existing
&
Proposed
Liens ti
alve to Lien
Ratio
Assessment
as
Preliminarily
Approved
Assessment as
Confirmed and
Recorded
106
039-132-11
$ 132,303
$ 34,507
8.93
$14,812.21
107
039-132-12
$ 434,384
$ 34,507
29.33
$14,812.21
108
039-031-01
$ 1,475,000
$ 34,507
99.58
$14,812.21
109
039-031-02
$ 225,832
$ 14,812
15.25
$14,812.21
110
039-031-30
$ 328,422
$ 34,507
22.17
$14,812.21
111
039-261-04
$ 1,903,932
$ 17,253
257.08
$7,406.11
112
039-261-03
$ 1,772,505
$ 11,502
359.00
$4,937.40
113
039-261-02
$ 1,725,000
$ 11,502
349.37
$4,937.40
114
039-261-01
$ 2,601,000
$ 11,502
526.80
$4,937.40
115
039-033-03
$ 211,309
$ 34,507
14.27
$14,812.21
116
039-033-02
$ 443,223
$ 14,812
29.92
$14,812.21
117
039-033-01
$ 214,328
$ 34,507
14.47
$14,812.21
118
039-070-32
$ 2,003,868
$ 34,507
135.28
$14,812.21
119
039-070-33
$ 2,550,000
$ 34,507
172.16
$14,812.21
120
039-032-08
$ 1,539,511
$ 34,507
103.94
$14,812.21
121
039-032-10
$ 2,007,547
$ 34,507
135.53
$14,812.21
122
039-032-09
$ 2,340,900
$ 34,507
158.04
$14,812.21
123
039-032-06
$ 179,775
$ 14,812
12.14
$14,812.21
124
039-032-05
$ 235,912
$ 34,507
15.93
$14,812.21
125
039-032-04
$ 220,242
$ 34,507
14.87
$14,812.21
126
039-032-03
$ 1,178,120
$ 34,507
79.54
$14,812.21
127
039-032-02
$ 320,213
$ 34,507
21.62
$14,812.21
128
039-222-19
$ 299,587
$ 39,041
20.23
$14,812.21
129
039-222-20
$ 341,879
$ 34,507
23.08
$14,812.21
130
039-222-18
$ 1,289,393
$ 34,507
87.05
$14,812.21
131
039-222-21
$ 1,002,399
$ 34,507
67.67
$14,812.21
132
039-031-04
$ 2,263,799
$ 34,507
152.83
$14,812.21
133
039-031-27
$ 1,487,903
$ 34,507
100.45
$14,812.21
134
039-031-19
$ 2,718,198
$ 34,507
183.51
$14,812.21
135
039-031-25
$ 1,714,290
$ 34,507
115.73
$14,812.21
136
039-031-08
$ 1,645,278
$ 34,507
111.08
$14,812.21
137
039-031-26
$ 490,736
$ 39,041
33.13
$14,812.21
138
039-031-29
$ 236,530
$ 39,041
15.97
$14,812.21
139
039-031-11
$ 1,872,176
$ 34,507
126.39
$14,812.21
140 1
1039-031-121
$ 176,083
$ 34,507
11.89
$14,812.21
Del Mar Valley 2010 Supplemental Utility Undergrounding Assessment District
Town of Tiburon
Prepared by NBS
6-5
Table 2
Assessment Roll (continued)
smt.
No.
PN
otal Assessed
Value's
Aggregate
of Existing
&
Proposed
Liens ti
alve to Lien
Ratio
Assessment
as
Preliminarily
Approved
Assessment as
Confirmed and
Recorded
141
039-031-13
$ 533,137
$ 34,507
35.99
$14,812.21
142
039-031-14
$ 853,009
$ 34,507
57.59
$14,812.21
143
039-031-15
$ 229,894
$ 34,507
15.52
$14,812.21
144
039-031-31
-
$ 34,507
$14,812.21
145
039-031-17
$ 2,235,993
$ 34,507
150.96
$14,812.21
146
039-141-13
$ 1,600,924
$ 14,812
108.08
$14,812.21
147
039-141-23
$ 2,432,948
$ 34,507
164.25
$14,812.21
148
039-141-21
$ 1,983,142
$ 34,507
133.89
$14,812.21
149
039-141-16
$ 342,740
$ 34,507
23.14
$14,812.21
150
039-141-17
$ 1,625,758
$ 34,507
109.76
$14,812.21
151
039-141-18
$ 1,476,136
$ -
-
$0.00
152
039-141-19
$ 1,708,555
$ 34,507
115.35
$14,812.21
153
039-141-20
$ 349,590
$ 34,507
23.60
$14,812.21
154
039-141-12
$ 1,885,000
$ 34,507
127.26
$14,812.21
155A
039-223-02
$ 1,864,757
$ 34,507
125.89
$14,812.21
155B
039-221-14
$ 424,172
$ 39,041
28.64
$14,812.21
156
039-223-01
$ 2,095,614
$ 34,507
141.48
$14,812.21
158
039-221-13
$ 1,170,597
$ 34,507
79.03
$14,812.21
159
039-221-07
$ 3,281,761
$ 34,507
221.56
$14,812.21
160
039-221-11
$ 1,961,154
$ 39,041
132.40
$14,812.21
161
039-222-25
$ 300,695
$ 14,812
20.30
$14,812.21
162
039-222-24
$ 2,568,104
$ 34,507
173.38
$14,812.21
163
039-222-26
$ 316,826
$ 39,041
21.39
$14,812.21
164
039-222-23
$ 245,761
$ 34,507
16.59
$14,812.21
$135,477,897
$4,800,478
28.22
$2,110,740.06
Notes:
1. Assessed value as shown on County Assessor's Roll for 2009-10
2. Existing liens shown exclude the liens for the 9 parcels that will be paid-off by the Town under
the Settlement Agreement
Del Mar Valley 2010 Supplemental Utility Undergrounding Assessment District
Town of Tiburon
Prepared by NBS
6-6
6.3. Property Owner Names and Addresses
Table 3 contains the names and address of property owners within the District.
Table 3
Property Owner Names and Addresses
Asmt
No.
APN
Owner
Mailing
Address
City,
State, & Zip
1
055-142-03
SHEPARD JAMES ETR
100 AVENIDA MIRAFLORES
TBURON CA 94920
2
055-142-04
COOPER HELEN F TR
106 AVENIDA MIRAFLORES
TBURON CA 94920
3
055-142-17
HIPPLE DANIEL PTR
110 AVENIDA MIRAFLORES
TBURON CA 94920
4
055-142-06
HALDEN MARLENE M TR
114 AVENIDA MIRAFLORES
TBURON CA 94920
5
055-142-21
SCHORNSTEIN FAL T
4 FELIPA CT
BELVEDERE-TBURON CA 94920
6
055-142-19
WHEELER KELLY J TR
6 FELIPA CT
TBURON CA 94920
7
055-142-16
LINDGREN BRUCE C
8 FE-IPA CT
TBURON CA 94920
8
055-142-01
LOGAN BETH G
10 FELIPA CT
TBURON CA 94920
9
055-142-08
JAGGER HAROLD
1407 ETON LN
AUSTIN TX 78703
10
055-142-09
TAGGART JAMES R
5 FELIPA CT
TBURON CA 94920
11
055-142-10
ROZEN RICHARD D TR
3 FELIPA CT
TBURON CA 94920
12
055-142-11
INGLEDEIN STEPHEN
1 FELIPA CT
TBURON CA 94920
13
055-142-12
CLELAND MARILYN H TR
640 HILARY DR
TBURON CA 94920
14
055-142-13
KEATING KATHERINE K TR
646 HILARY DR
TBURON CA 94920
15
055-142-14
SMETANA MARGARET M TR
650 HILARY DR
TBURON CA 94920
16
055-182-06
KRAVITZ STEVEN B
600 CALIFORNIA ST #1800
SAN FRANCISCO CA 94108
17
055-182-07
NEMZER KENNETH P & MARILYN L
664 HILARY DR
TBURON CA 94920
18
055-183-01
KAMI SABURO TR
655 HILARY DR
BELVEDERE-TBURON CA 94920
19
055-183-02
BRINKMAN WILLIAM A TR
651 HILARY DR
TBURON CA 94920
20
055-183-03
HANNUM JAMES M
653 HILARY DR
TBURON CA 94920
21
055-144-01
ROSENTHAL JEFFREY TR
895 MOUNTAIN VIEW DR
LAFAYETTECA 94549
22
055-144-02
WHITED ROBERT B II
641 HILARY DR
BELVEDERE-TBURON CA 94920
23
055-144-03
RICHARDS TIMOTHY J
132 AVENIDA MIRAFLORES
TBURON CA 94920
24
055-144-04
TEODORO ALEX
136 AVENIDA MIRAFLORES
TBURON CA 94920
25
055-144-05
BARKHORDARIAN VICTORTR
138 AVENIDA MIRAFLORES
TBURON CA 94920
26
055-144-06
GORDON ESMETR
140 AVENIDA MIRAFLORES
TBURON CA 94920
27
055-143-01
SASLOW NANCY A TR
145 AVENIDA MIRAFLORES
TBURON CA 94920
28
055-143-02
O ROURKE LISA F
PO BOX 439
TBURON CA 94920
29
055-143-03
ENLOW MICHELLE
137 AVENIDA MIRAFLORES
TBURON CA 94920
30
055-143-04
WRIGHT NATHAN H
135 AVENIDA MIRAFLORES
TBURON CA 94920
31
039-135-02
STEPHENS DONALD R TR
603 HILARY DR
TBURON CA 94920
32
039-135-01
BRILL ROBERT H TR
605 HLARY DR
TBURON CA 94920
33
039-135-03
RIEDEN STEPHEN MTR
85 ROWLEY CIR
TIBURON CA 94920
34
039-135-04
DOHERTY MARYCLAIRE C TR
75 ROWLEY CIR
TBURON CA 94920
35
039-135-05
WIEGER EDWARD K TR
15 GE-DERT DR
TBURON CA 94920
36
039-135-06
JACKMAN ALLAN ETR
25 GELDERT DR
BE_VEDERETBURON CA 94920
37
039-135-07
FYE KENNETH H TR
35 GE-DERT DR
TBURON CA 94920
38
055-141-01
JOHNSON RICHARD C TR
129 AVENIDA MIRAFLORES
TBURON CA 94920
39
055-141-02
CAVINESS CHARLES PTR
121 AVENIDA MIRAFLORES
TIBURON CA 94920
40
055-141-03
DOYLEJAMES H III
115 AVENIDA MIRAFLORES
TBURON CA 94920
41
055-141-07
REED UNION SCHOOL DISTRICT
105 A AVENIDA MIRAFLORES
TBURON CA 94920
42
055-141-05
RED UNION SCHOOL DISTRICT
277 A KAREN WAY
TBURON CA 94920
43
039-134-13
REED UNION SCHOOL DISTRICT
105 A AVENIDA MIRAFLORES
TBURON CA 94920
44
039-134-12
R® UNION SCHOOL DISTRICT
105 A AVENIDA MIRAFLORES
TBURON CA 94920
Del Mar Valley 2010 Supplemental Utility Undergrounding Assessment District
Town of Tiburon
Prepared by NBS
6-7
Table 3
Property Owner Names and Addresses (continued)
Asmt
No.
APN
Owner
Mailing
Address
City,
State, & Zip
45
039-134-11
REED UNION SCHOOL DISTRICT
105 A AVENIDA M IRAFLORES
TBURON CA 94920
46
039-134-10
REED UNION SCHOOL DISTRICT
105 A AVENIDA MIRAFLORES
TBURON CA 94920
47
039-134-09
REED UNION SCHOOL DISTRICT
105 A AVENIDA MIRAFLORES
TBURON CA 94920
48
039-134-08
REED UNION SCHOOL DISTRICT
105 A AVENIDA MIRAFLORES
TBURON CA 94920
49
039-134-17
REED UNION SCHOOL DISTRICT
105 A AVENIDA MIRAFLORES
TBURON CA 94920
50
039-134-15
REED UNION SCHOOL DISTRICT
105 A AVENIDA MIRAFLORES
TBURON CA 94920
51
039-134-25
ARPAJIAN SCOTT TR
410 HILARY DR
TBURON CA 94920
52
039-134-27
BENVBdUTI ROY TR
408 HILARY DR
TBURON CA 94920
53
039-134-26
GROTHE KATHRYN
406 HILARY DR
BELVEDERE-TBURON CA 94920
54
039-134-22
SCHOENSTADT POP LLC
404 HILARY DR
TIBURON CA 94920
55
039-134-19
KOSCIUSKO RONALD H TR
402 HILARY DR
TBURON CA 94920
56
055-102-27
PERRING P J
398 HILARY DR
TBURON CA 94920
57
055-102-26
KBAPLER STACEY S
396 HILARY DR
TBURON CA 94920
58
055-102-25
WILSON JAMES G TR
394 HILARY DR
TBURON CA 94920
59
055-102-24
HBMERL LAURENCE L & HELEN E
564 TENAYA DR
TBURON CA 94920
60
055-102-30
WONG WILLIAM H TR
565 TENAYA DR
TBURON CA 94920
61
039-131-11
PUCKETT MYRON L TR
401 HILARY DR
TBURON CA 94920
62
039-131-10
BRYANT JAMES W TR
403 HILARY DR
TBURON CA 94920
63
039-131-09
GRAFF JEFFREY N TR
405 HILARY DR
TBURON CA 94920
64
039-131-14
PLANT MA RGOT F
407 HILA RY DR
TB URON CA 94920
65
039-131-15
BACHELLER JOSEPH H III TR
409 HILARY DR
BELVEDERE-TIBURON CA 94920
66
039-131-06
HAHN CHRISTOPHER R
618 MANUEL DR
NOVATO CA 94945
67
039-133-09
BERGMANN WILLIAM M TR
101 HOWARD DR
TBURON CA 94920
68
039-133-10
GOODING MARK G
515 HILARY DR
TIBURON CA 94920
69
039-133-11
YIN TOM W TR
525 HILLARY DR
TBURON CA 94920
70
039-133-12
TOLMIEJOHN S III TR
535 HILARY DR
TIBURON CA 94920
71
039-133-13
ALI SHEILA TR
545 HILARY DR
TBURON CA 94920
72
039-133-14
CARSWELL ANTHONY S TR
555 HILARY DR
TBURON CA 94920
73
039-133-15
HANLEY MICHAEL TTR
90 ROWLEY CIR
TBURON CA 94920
74
039-133-08
BA RKHORDA RIA N V ICTOR TR
138 AVENIDA MIRAFLORES
TBURON CA 94920
75
039-133-07
HAKAMI REZA
70 ROWLEY CIR
TBURON CA 94920
76
039-133-06
WALSH JAMES J
60 ROWLEY CAR
TBURON CA 94920
77
039-133-05
DUNWORTH JAMES R & YAEKO
225 E COLLEGE AV E
HOLLY SPRINGS MS 38635
78
039-133-04
COFFEY SAMUEL R
40 ROWLEY CIR
TBURON CA 94920
79
039-133-03
CARREL DAVID MTR
30 ROWLEY CIR
TBURON CA 94920
80
039-133-02
BRODERICK HENRY J TR
20 ROWLEY CIR
TBURON CA 94920
81
039-133-01
O CONNOR DOUGLAS R TR
10 ROWLEY CAR
TBURON CA 94920
82
039-131-05
MUMFORD HARRY G JR TR
102 HOWARD DR
TBURON CA 94920
83
039-131-04
FAD JOHN B
104 HOWARD DR
TBURON CA 94920
84
039-131-13
GAZULIS THEODORETR
106 HOWARD DR
TBURON CA 94920
85
039-131-12
ARONOVSKY DANIEL M TR
108 HOWARD DR
TBURON CA 94920
86
039-131-01
HESS ROBERT C TR
110 HOWARD DR
TBURON CA 94920
87
039-141-01
MICKEL ROBERT A
112 HOWARD DR
TBURON CA 94920
88
039-141-02
STRINGER ANDREW TR
114 HOWARD DR
TBURON CA 94920
89
039-141-03
STBNDL CHRISTIAN RTR
116 HOWARD DR
TBURON CA 94920
90
039-141-04
BECHARD THOMAS R
118 HOWARD DR
TBURON CA 94920
Del Mar Valley 2010 Supplemental Utility Undergrounding Assessment District
Town of Tiburon
Prepared by NBS
6-8
Table 3
Property Owner Names and Addresses (continued)
Asmt
No.
APN
Owner
Mailing
Address
City,
State, & Zip
91
039-141-05
DARU SUDHIR C TR
120 HOWARD DR
TIBURON CA 94920
92
039-141-06
LASKY HOWARD
122 HOWARD DR
TIBURON CA 94920
93
039-141-07
CASELLI VIRGIL PTR
119 HARN CT
TIBURON CA 94920
94
039-141-08
DUDGEON DIRK B
117 HARN CT
TIBURON CA 94920
95
039-141-09
STALLMAN MICHAEL A
115 HARN CT
TIBURON CA 94920
96
039-141-10
MC GEE ROGER C TR
113 HARN CT
TBURON CA 94920
97
039-141-11
KIMBALL JON D
111 HARN CT
TIBURON CA 94920
98
039-132-01
RICHARDS JEANNETTE D
109 HOWARD DR
TIBURON CA 94920
99
039-132-02
WRAY CHARLES H TR
2081 HYDE BURNDALE
SONOMA CA 95476
100
039-132-15
MOURANI PAUL G
15 ROWLEY CIR
TIBURON CA 94920
101
039-132-14
DACHTLERJASON
PO BOX 348
TBURON CA 94920
102
039-132-05
RUSSELL JAMES S
35 ROWLEY CAR
TIBURON CA 94920
103
039-132-06
POPE CHARLES B TR
45 ROWLEY CAR
TBURON CA 94920
104
039-132-07
MORRIS MARK M III TR
55 ROWLEY CIR
BELVEDERE-TBURON CA 94920
105
039-132-08
TORRENS WALTER L TR
65 ROWLEY CAR
TIBURON CA 94920
106
039-132-11
STEWART STANLEY TR
PO BOX 982
TIBURON CA 94920
107
039-132-12
CLARKE PETERA TR
20 GELDERT DR
BELVEDERE-TBURON CA 94920
108
039-031-01
LIN NORTON C
30 GELDERT DR
TIBURON CA 94920
109
039-031-02
HEYDORN WILLIAM H TR
40 GELDERT DR
TBURON CA 94920
110
039-031-30
BERNECKER LUDWIG
60 GELDERT DR
TBURON CA 94920
111
039-261-04
ARTHUR GRE R M
37 GELDERT CT
TBURON CA 94920
112
039-261-03
BARZGAR ABBASS TR
5 BON AIR RD #220
LARKSPUR CA 94939
113
039-261-02
SLAYER WILLIAM R
41 GELDERT CT
BELV EDERE TIBURON CA 94920
114
039-261-01
MAHER ROBERT E
43 GELDERT CT
TBURON CA 94920
115
039-033-03
CAVANAGH MICHAEL ETR
45 GELDERT DR
BELVEDERE-TBURON CA 94920
116
039-033-02
ABERI MAJID
113 REED RANCH RD
TBURON CA 94920
117
039-033-01
SMITH ROGER H TR
5 WILKINS CT
TBURON CA 94920
118
039-070-32
HILLS QIIENTIN K TR
7 WILKINS CT
TBURON CA 94920
119
039-070-33
MIURA NOLAN A TR
9 WILKINS CT
BE-V EDERE TIBURON CA 94920
120
039-032-08
LAROSE-DUNN ELIZABETH
10 WILKINS CT
TBURON CA 94920
121
039-032-10
URQUHART ERNEST H TR
8 WILKINS CT
TBURON CA 94920
122
039-032-09
BOWBLISS JAMES M
6 WILKINS CT
TBURON CA 94920
123
039-032-06
EBERTS FRED C & DORIS D TR
75 GELDERT DR
TBURON CA 94920
124
039-032-05
KENNEDY ROBERT M TR
85 GELDERT DR
TBURON CA 94920
125
039-032-04
KANDEL REVOC TRUST
95 GELDERT DR
TBURON CA 94920
126
039-032-03
AKRAM STEVETR
105 GELDERT DR
TBURON CA 94920
127
039-032-02
KULP RICHARD M & PAOLA O TRS
115 GELDEZT DR
TBU RON CA 94920
128
039-222-19
0E CECILIA T TR
1177 CALIFORNIA ST #905
SAN FRANCISCO CA 94108
129
039-222-20
LU BUICH MARY TR
139 GELDERT DR
TBURON CA 94920
130
039-222-18
BROWN STEPHEN M TR
137 GELDERT DR
TBURON CA 94920
131
039-222-21
LKWFE? LAURENCE J
141 GELDERT DR
TBURON CA 94920
132
039-031-04
BABER KENNETH A TR
70 GELDERT DR
TBURON CA 94920
133
039-031-27
COMANN TYLER K
2 MALVINO CT
TBURON CA 94920
134
039-031-19
ELBAZ ELLIOTT S
4 MALVINO CT
TBURON CA 94920
135
039-031-25
FRENCH JEFFREY A TR
6 MALVINO CT
TBURON CA 94920
136
039-031-08
GAZOR FARID TR
8 MALVINO CT
TBURON CA 94920
137
039-031-26
MALECE( HENRY D TR
12 MALVINO CT
BE-VEDERE-TBURON CA 94920
138
039-031-29
CHAZEN DONNA L TR
16 MALVINO CT
TBURON CA 94920
139
039-031-11
FENNEVA FRANK
20 MALVNO CT
TBURON CA 94920
Del Mar Valley 2010 Supplemental Utility Undergrounding Assessment District
Town of Tiburon
Prepared by NBS
6-9
Table 3
Property Owner Names and Addresses (continued)
Asmt
No.
APN
Owner
Mailing
Address
City,
State, & Zip
140
039-031-12
GEIGER MARY B TR
80 GELDERT DR
TBURON CA 94920
141
039-031-13
GALLEGIONI THELMA TR
90 GELDERT DR
TBURON CA 94920
142
039-031-14
KAVEH FARZIN TR
100 GELDERT DR
TBURON CA 94920
143
039-031-15
ZEMAITIS JOSEPH F TR
110 GELDERT DR
TBURON CA 94920
144
039-031-31
SOROKIN GIDEON Y TR
120 GELDERT DR
TBURON CA 94920
145
039-031-17
JOLLEY SCOTT C
4474 CREST OAK DR
SALT LAKE CITY UT 84124
146
039-141-13
KRAMER LINDA TR
15 MARK TER
TBURON CA 94920
147
039-141-23
PETRI MARK TR
14 TARA VW
TBURON CA 94920
148
039-141-21
ETH JORDAN
35 MARK TER
TBURON CA 94920
149
039-141-16
NIELSEN VIGO G JRTR
29 MARK TER
TBURON CA 94920
150
039-141-17
BARADELLO CARLOS S
31 MARK TER
BELVEDERE-TIBURON CA 94920
151
039-141-18
THORNTON BARRY F
33 MARK TER
TBURON CA 94920
152
039-141-19
SAMS ANDREW E
30 MARK TER
TIBURON CA 94920
153
039-141-20
STRUNK BRIAN L TR
20 MARK TER
BELVEDER&IIBURON CA 94920
154
039-141-12
SINGER RICHARD TR
PO BOX 580
SAN FRANCISCO CA 94104
155A
039-223-02
KENNEALLY JOHN F
140 GELDERT DR
TIBURON CA 94920
155B
039-221-14
SMITH KAY CTR
125 PORTO MARINO DR
TIBURON CA 94920
156
039-223-01
HUEHNE PETER
140 PORTO MARINO DR
TBURON CA 94920
158
039-221-13
JOSEPH DONALD RTR
135 PORTO MARINO DR
TBURON CA 94920
159
039-221-07
KENNEDY ROBERT G
145 PORTO MARINO DR
TBURON CA 94920
160
039-221-11
38 DEGREES NORTH LATITUDE BUILDE
40 BELVEDERE ST #1
SAN RAFAEL CA 94901
161
039-222-25
RUNES GARY W TR
144 PORTO MARINO DR
TBURON CA 94920
162
039-222-24
GOODMAN CHAD J
150 PORTO MARINO DR
TBURON CA 94920
163
039-222-26
MURAD JAMES TR
160 PORTO MARINO DR
TBURON CA 94920
164
039-222-23
MILLER NORMAN G TR
186 PORTO MARINO DR
TBURON CA 94920
Del Mar Valley 2010 Supplemental Utility Undergrounding Assessment District
Town of Tiburon
Prepared by NBS
6-10
RIGHT-OF-WAY CERTIFICATE
STATE OF CALIFORNIA
COUNTY OF MARIN
TOWN OF TIBURON
The undersigned hereby CERTIFIES UNDER PENALTY OF PERJURY that the following is
all true and correct.
That at all times herein mentioned, the undersigned was, and now is, the authorized
representative of the duly appointed DIRECTOROF PUBLIC WORKS/TOWN ENGINEER of
the TOWN OF TIBURON, CALIFORNIA.
That there have now been instituted proceedings under the provisions of Article XIIID of the
California Constitution, the "Municipal Improvements Act of 1913," being Division 12 of the
Streets and Highways Code of the State of California, as amended, for the construction of
certain public improvements in a special assessment district known and designated as DEL
MAR VALLEY 2010 SUPPLEMENTAL UTILITY UNDERGROUNDING ASSESSMENT
DISTRICT (hereinafter referred to as the "Assessment District").
THE UNDERSIGNED STATES AND CERTIFIES AS FOLLOWS:
It is acknowledged that the proposed Works of Improvement must be constructed within
public rights-of-way, land, or easements owned by or licensed to the TOWN OF TIBURON,
County of MARIN, State of California, at the time of the construction of the Works of
Improvement, and the undersigned hereby further certifies that all rights-of-way necessary
for the Works of Improvements will be obtained and in possession of the City, County, or
State prior to the commencement of any construction by the Town of Tiburon.
EXECUTED this day of , 2010, at Town of Tiburon, California.
Director of Public Works/Town Engineer
Town of Tiburon
State Of California
By:
Del Mar Valley 2010 Supplemental Utility Undergrounding Assessment District
Town of Tiburon
Prepared by NBS
6-11
CERTIFICATION OF COMPLETION OF
ENVIRONMENTAL PROCEEDINGS
STATE OF CALIFORNIA
COUNTY OF MARIN
TOWN OF TIBURON
The undersigned, under penalty of perjury, CERTIFIES as follows:
1. That I am the person authorized to prepare and process all environmental
documentation as needed as it relates to the formation of the special assessment district
being formed pursuant to the provisions of the "Municipal Improvement Act of 1913", being
Division 12 of the Streets and Highways Code of the State of California, said special
assessment district known and designated as DEL MAR VALLEY 2010 SUPPLEMENTAL
UTILITY UNDERGROUNDING ASSESSMENT DISTRICT (hereinafter referred to as the
"Assessment District").
2. The specific environmental proceedings relating to this Assessment District that have
been completed are as follows:
CEQA compliance review, as follows:
The proposed project is Categorically Exempt (Class 2) from the provisions of CEQA
(replacement or reconstruction),
3. 1 do hereby certify that all environmental evaluation proceedings necessary for the
formation of the Assessment District have been completed to my satisfaction, and that
no further environmental proceedings are necessary.
EXECUTED this day of , 2010 at Tiburon, California.
TOWN OF TIBURON
STATE OF CALIFORNIA
Del Mar Valley 2010 Supplemental Utility Undergrounding Assessment District
Town of Tiburon
Prepared by NBS
6-12
T APPENDIX
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' TOWN OF TIBURON
" 1505 Tiburon Boulevard
Tiburon, CA 94920
A
To: Mayor and Members of the Town Council
From: Department of Administrative Services
Town Council Meeting
June 2, 2010
Agenda Item:
3
Subject: Determine Town Council's Interest in Purchasing the Town of Fairfax's FY
2011 Tax Revenue Anticipation Note
Reviewed By:
BACKGROUND
This item is brought forward to determine the Town Council's interest in purchasing the Town of
Fairfax's Tax Revenue Anticipation Note (TRAN) for FY 2010-11. If Council desires to pursue
this investment, Staff will bring back the required documentation for formal action at the Town
Council meeting of June 16, 2010. If there is no interest, then the Town of Fairfax will have time
to pursue another investor.
During the current fiscal year, the Town Council approved the purchase of two Town of Fairfax
Tax Revenue Anticipation Notes, each in the amount of $500,000. Both Notes carried an annual
interest rate of 4%, with the first Note dated October 20, 2009, due and payable on January 22,
2010. The second Note was dated March 5, 2010 and was due and payable April 23, 2010. Both
Notes have been retired. Originally, Fairfax had requested the Town purchase a $1,000,000 Note,
but because this was a deviation from the Town's normal investment practice, the Town Council
took the step of breaking the investment into two partsto reduce any potential risk. It was
anticipated that after the first year the Town would revisit the investment.
Fairfax recently approached the Town to determine our interest in purchasing a $750,000 Note,
which will again carry a 4% annual interest rate and a term from approximately mid-August 2010
to late April 2011. The Note shall be secured by the Town of Fairfax's December 2010 and April
2011 property tax receipts in which Fairfax will irrevocably direct the County of Marin to place
their secured property tax receipts in a special escrow account with the Bank of America. The
Bank of America will irrevocably be directed to transfer, on the maturity date of the Note, the
total principal amount of the Note plus accrued interest to the Town of Tiburon. After payment
to the Town all remaining funds will be disbursed to Fairfax.
ANALYSIS
The Town of Tiburon currently invests approximately $19 million of idle funds in short-term
Certificates of Deposit, a Money Market Fund and in the State Local Agency Investment Fund.
The current investment returns range from 0.58% to 1.10%. The Town's investment policy
(attached) specifically allows the Town to invest in, among other things, "bonds, notes, warrants
or other evidence of indebtedness of any local agency of the State (including bonds payable
TOWN OF TIBURON PAGE 1 OF 3
.i _ '
solely out of revenues from a revenue producing property or asset owned, controlled, or operated
by the local agency)...". The policy further goes on to state that the investment in instruments
with institutions permitted under Section 5, Investment Guidelines (paraphrased above), are
deemed to constitute a safe investment within the meaning of the Policy. The Town's Policy also
requires the obligation be rated A 1 or SP 1-1 or higher. The Town of Fairfax, as of March 2,
1010, was rated AA+ by Fitch Ratings. Staff will address below the Town's investment
objectives, in order of priority, as they relate to this potential investment.
Safe
While any investment carries some risk, the purchase of Fairfax's TRAN would be considered
only slightly riskier than the Town's current investments, but would also provide additional
diversity to the portfolio. This proposed purchase would represent less than 5% of the Town's
total investments.
As security for the Note, the Town of Fairfax pledges all property tax revenues in FY 2010-11 for
repayment of principal and accrued interest. Additionally, Fairfax asserts that they will not
borrow or make any other pledges against the property taxes prior to the full payment of the Note.
In accordance with Section 5451 of the California Government Code, the pledged revenues
immediately become subject to the pledge, and the pledge constitutes a lien and security interest
which immediately attaches to the pledged revenues and is effective, binding, and enforceable
against Fairfax, its successors, purchasers of he pledged revenues, creditors, and all others
asserting rights to the pledged revenues.
Before approving the March 5th purchase of the Fairfax TRAN, Council asked about the potential
risk to the Town's principal should Fairfax declare bankruptcy. Fairfax's AA+ credit rating
indicates that this is highly unlikely. However, in the event of bankruptcy, the Town would be a
secured creditor, entitled to be repaid before any unsecured creditors. The only other secured
debt of Fairfax is their Measure K bonds. This debt should not affect repayment of the Town
debt, because it is fully secured through a General Obligation tax (special assessment). If Fairfax
declared bankruptcy, property owners would continue to pay the Measure K assessment and
payment on the bonds would made by the trustee. All of that said, no loan or other investment is
100% risk free. However, this investment appears to be the same as the Town's other
investments and more remunerative. Town Treasurer Bill Osher supports this investment and is
planning to attend the Town Council meeting to field any potential questions.
Liquidity
The Town of Tiburon would not be able to access any of these proposed invested funds until
maturity. The maturity date of the Note would be approximately 270 days. The Town has
sufficient liquidity ($14 million) in funds invested with the Local Agency Investment Fund to
meet any unforeseen financial demands. The remaining $4 million is invested in 30-90
Certificates of Deposit.
I kJ
Yield
Should the Town Council decide to proceed with this investment, the note shall pay an annual
interest rate of 4%. Most investments paying a 4% interest rate would normally carry a
significant amount of risk. The Town will earn $22,500 on this investment compared to $3,375
at our current LAIF rate.
However, Fairfax is able to achieve its desired cash flow with the proposed note, at a cost similar
to selling their TRAN through the California Communities JPA. Savings are achieved by a
shorter term note and less fees associated with selling the bond in the open market. Additionally,
Fairfax is guaranteed that the note will be funded. Normally, Fairfax applies for a TRAN each
year and does so through the California Communities organization. The program actually collects
all of the various documents submitted, reviews all the information, forwards it to Bond Counsel,
and handles all the coordination of selling the Note to investors. This is a fairly intense process
that vets each local municipality before issuing the TRAN. Last year Fairfax performed this
exercise to no avail, as the State Bond rating was so low as to preclude any small investor interest
in California. The California Communities JPA was able to get approximately four large
municipalities funded leaving all of the small ones unfunded. With the continuing crisis at the
State level, Fairfax does not anticipate any different outcome with the California Communities
JPA TRAN funding this year. The State's Bond rating has not improved enough to attract
investors back to the State.
A private placement TRAN is a unique opportunity to work with Fairfax again to achieve a win-
win for both Towns. In Tiburon's case, we can make a much smarter investment in these
economic challenging times, earning 4% on our money, instead of less than 1 % in LAIF, with
extremely low risk.
FINANCIAL IMPACT
Assuming the Local Agency Investment Fund earnings remain steady (approximately 0.6%)
during the term of the proposed TRAN, the Town would earn roughly an additional $20,000 on
the funds as compared to leaving them in LAIF.
RECOMMENDATION
Staff recommends that the Town Council:
1. Consider whether it wishes to proceed with another TRAN investment and, if so, direct
Staff to return with the necessary materials for the transaction at the next Town Council
meeting..
Exhibits: Town Investment Policy
Prepared By: Heidi Bigall, Director of Administrative Services
Town of Tiburon, Investment Policy Statement
§ I. PURPOSE
This Policy sets forth the investment guidelines for the prudent
management of all surplus funds of the Town of Tiburon,
Tiburon Redevelopment Agency and Tiburon Public Facilities
Financing Authority. It is the goal of this Policy to establish
investment objectives in accordance with the provisions of the
State of California Government Code Sections 53600 et seq., and
investment policy guidelines to ensure that funds under its
purview are prudently invested to preserve capital, provide
necessary liquidity and to achieve a rate of return consistent with
the Town's needs and objectives. Investments may be made as
authorized by this Investment Policy and subsequent revisions.
This Statement of Investment Policy shall be reviewed annually
by the Tiburon Town Council. The Town is therefore afforded a
broad range of investment opportunities if the investment is
deemed prudent and is allowable under current legislation of the
State of California.
§ II. OBJECTIVES
The Town's cash management system is designed to accurately
monitor and forecast revenues and expenditures, thus enabling
the Town to invest these surplus funds to the fullest extent
possible. Surplus funds shall be invested in accordance with
sound treasury management principles, State of California
Government Code Sections 53600 et. seq, and this Policy.
When investing, reinvesting, acquiring, selling and managing
Town funds, objectives for selecting investments, in priority of
order, are
1. Safety. The primary objective shall be to safeguard the
principal of the funds. The Town shall invest only in those
investments considered safe. Investment in instruments and with
institutions permitted under Section 5. Investment Guidelines, are
deemed to constitute safe investments within the meaning of this
Policy.
2. Liquidity. The secondary objective shall be to meet the
liquidity needs of the Town. It is important that the portfolio
contain investments that provide flexibility and may easily be
sold with minimal risk of loss of principal or interest.
3. Yield. The third objective shall be to achieve a
reasonable rate of return on the portfolio. The investment
portfolio shall be designed to attain safety and liquidity of
principal first, and thereafter attain a market rate of return that is
consistent with portfolio design and Policy principles.
§ III. PRUDENCE
Town Council Members, The Town Manager, Director of
Administrative Services and Town Treasurer, and any persons
authorized to make investment decisions on behalf of the Town,
are trustees and therefore fiduciaries subject to the Prudent
Investor Standard. When investing, reinvesting, acquiring,
selling and managing Town funds, a trustee shall act with
care, skill, prudence and diligence under the circumstances
then prevailing, that a prudent person acting in a like
capacity and familiarity with those matters would use in the
conduct of funds of a like character and with like aims to
safeguard the principal and to maintain the liquidity needs of
the Town (Government Code Section 53600.3)
The Prudent Investor Standard shall be applied in managing
an overall portfolio. Investment officers acting in
accordance with written procedures and the Investment
Policy and exercising due diligence shall be relieved of
personal responsibility for a particular security's credit risk
or market price changes, provided deviations from
expectations are reported in a timely fashion and appropriate
action is taken to control developments.
§ IV. DELEGATION OF AUTHORITY
Authority to manage the Town's investment program is
derived from approval of Town Council. Management
responsibility for the Town's cash management systems and
investments are delegated to the Town Manager and
Director of Administrative Services. No person may engage
in an investment transaction except as provided under the
terms of this Investment Policy Statement and procedures
established by the Town Council.
§ V. INVESTMENT GUIDELINES
Investments are to be made in high quality securities or
instruments as permitted by the Government Code and
subject to the Limitations of this Investment Policy.
A. Eligible securities for investment shall include the
following:
1. U.S. Treasury Securities. United States Treasury
notes, bonds, strips, bills or certificates of indebtedness, or
obligations for which the full faith and credit of the U.S.
Government are pledged for the timely payment of principle
and interest.
2. Federal A.yencies and U.S. Government Sponsored
Enterprises. Obligations, participations, or other
instruments of or issued by a federal agency or federal
government sponsored enterprise. This includes, and is not
restricted to, obligations of the: Federal Home Loan Bank
(FHLB), Federal Home Loan Mortgage Corporation
(FHLMC), Federal National Mortgage Association
(FNMA), Federal Farm Credit Bank (FFCB), Government
National Mortgage Association (GNMA), Small Business
Administration (SBA), Export-Import Bank of the United
States, and the U.S. Department of Housing and Urban
Development.
Town of Tiburon, Investment Policy Statement
3. State of California and Local Agency Obligations.
Registered State warrants, Treasury notes, or bonds of the State
of California, and bonds, notes, warrants or other evidence of
indebtedness of any local agency of the State (including bonds
payable solely out of revenues from a revenue producing
property or asset owned, controlled, or operated by the State or
local agency, or by a department, board, agency or authority of
the State or local agency.) Such obligations must be rated Al,
SP-1, its equivalent or higher short term, or "A" or higher long
term, by a nationally recognized rating agency.
§ VI. REPORTING
Within thirty (30) days following the end of each quarter
Staff shall render a report to the Town Council, which shall
include the following information
1. A portfolio appraisal that includes the type of
investment, issuer, date of maturity, par and dollar amount
invested for all securities and investments of the Town, and
shall additionally include a description of any Town monies
that are under the management of any outside parties.
4. Commercial Paper. Commercial paper of "prime"
quality rated A1/P 1 or higher by Moody's Investor Services, Inc.
Or Standard & Poor's Corporation. Eligible paper is further
limited to issuing corporations that: (a) are organized within the
United States, (b) have total assets in excess of five hundred
million dollars ($500,000,000), and have a long term debt rating
of "A" or higher.
5. Negotiable Certificates of Deposit. Negotiable
certificates of deposit issued by a nationally or state-chartered
bank or savings association, or federal association, or a state or
federal credit union, or by a state-licensed branch of a foreign
bank carrying an individual rating of at least B/C by the
Thompson Bank Watch or IBCA rating services, a short term
debt rating of A 1 /P 1 or higher, and a long term debt rating of "A"
or higher.
6 Money Market Funds. Shares of beneficial interest
issued by diversified management companies as authorized by
California Government Code Section 536350).
B. State Local Agency Investment Fund (LAIF). The
Town may invest all or a portion of its investments, up to the
State-mandated maximum, in LAIF pursuant to California
Government Section 16429.1.
C. Diversity and Maturity Guidelines:
Maximum
Maximum
Maximum
Type of Investment
% of
% of one
Maturity
Portfolio
issuer
U.S. Treasury
100
100
5 years
Securities
Federal Agencies and
65
20
5 years
U.S. GSEs
Commercial Paper
15
5
270 days
Negotiable Certificates
25
5
3 years
of Deposit
Money Market Funds
15
15
N/A
[State LAIF
100
100
N/A
2. The current market value, as of the report date, of
all investments, as well as the source of this same valuation.
3. A statement of the status of the compliance (or non-
compliance) of the portfolio to this Investment Policy
Statement.
4. A statement denoting the ability (or inability)of the
Town to meet its expenditure requirements for the next six
(6) months.
For investments placed in LAIF, a bank, or savings and loan
association, the most recent statements received by the
Town from the institution may suffice in lieu of the
requirements listed above.
§ VII. SAFEKEEPING AND DELIVERY OF
SECURITIES
All transactions shall be executed on a Deliver versus
Payment (DVP) basis. To protect against potential fraud or
embezzlement, the assets of the Town shall be held in
safekeeping by the Town's safe keeping agent, or secured
through third-party custody and safekeeping procedures
pursuant to the limitations set forth in Government Code
Section 53608. These procedures will be reviewed annually
by an external auditor. All investments are to be held in the
name of the Town of Tiburon.
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