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HomeMy WebLinkAboutTC Agd Pkt 2010-07-07TOWN OF TIBURON Tiburon Town Hall 1505 Tiburon. Boulevard Tiburon, CA 94920 AGENDA Regular Meeting Tiburon Town Council July 7, 2010 Regular Meeting - 7:30 p.m. Interviews - 7:15 p.m. TIBURON TOWN COUNCIL INTERVIEWS FOR BOARD AND COMMISSION VACANCIES - (7:15 p.m.) (Design Review Board - One Vacancy) • Linda Emberson, 686 Hawthorne Drive CALL TO ORDER AND ROLL CALL Councilmember Fraser, Councilmember Fredericks, Councilmember O'Donnell, Vice Mayor Slavitz, Mayor Collins CLOSED SESSION ANNOUNCEMENT, IF ANY ORAL COMMUNICATIONS Persons wishing to address the Town. Council on subjects not on the agenda may do so at this time. Please note however, that the Town Council is not able to undertake extended discussion or action on items not on the agenda. Matters requiring action will be referred to the appropriate Commission, Board, Committee or staff for consideration or placed on a future Town Council meeting agenda. Please limit your comments to three (3) minutes. CONSENT CALENDAR All items on the Consent Calendar may be approved by one motion of the Town Council unless a request is made by a member of the Town Council, public or staff to remove an item for separate discussion and consideration. If you wish to speak on a Consent Calendar item, please seek recognition by the Mayor and do so at this time. 1. Town Council Minutes - Adopt Minutes of June 2, 2010 meeting (Town Clerk Crane Iacopi) 2. Town Council Minutes -Adopt Minutes of June 16, 2010 meeting (Town Clerk Crane Iacopi) 3. Del Mar Valley Utility Undergrounding Supplemental Assessment District - Approve Agreement with Reed Union School District regarding payment of the RUSD Supplemental District Assessment (Town Attorney Danforth) 4. Purchase of Tax and Revenue Anticipation Note for Investment Purposes - Recommendation to authorize purchase of the $750,000 Town of Fairfax FY 2010-11 Tax and Revenue Anticipation Note (Director of Administrative Services Bigall) 5. Safe Routes to School - Accept Safe Routes to School Del Mar Middle School project and authorize filing of the Notice of Completion (Director of Public Works/Town Engineer Nguyen) 6. 2010 Annual Street Improvement Project - Approve Plans and Specifications For the 2010 Annual Street Improvement Project and Authorize the Solicitation for Bids (Director of Public Works/Town Engineer Nguyen) ACTION ITEMS 1. Secondary Dwelling Units - Consider adoption of updates to the Town's Standards for Secondary Dwelling Units (Director of Community Development Anderson) 2. Design Review Board Vacancy - Consider appointment to fill vacancy on Design Review Board (Town Clerk Crane Iacopi) PUBLIC HEARINGS 1490 Vistazo West Appeal - Appeal of Design Review Board decision to approve a request for site plan and architectural review to construct a new single-family dwelling, with variances for reduced side yard setback and excess building height (Planning Manager Watrous) AP No. 058-223-14 Applicants: Shadduck Appellants: Bernheim/Straub 2. Ned's Way Joint Recreation Project Site Streamlining Ordinance - Introduction and first reading of an ordinance establishing a streamlined development review procedure for the Belvedere-Tiburon Joint Recreation Committee's Ned's Way project and exempting the project from certain Town regulations (Director of Community Development Anderson) Address: 600 Ned's Way AP No. 058-151-27 3. Cypress Hollow Landscape &t Lighting District (LLD) - Approve resolution continuing the Cypress Hollow LLD assessment in fiscal year 2010-2011 (Director of Administrative Services Bigall) TOWN COUNCIL REPORTS TOWN MANAGER'S REPORT WEEKLY DIGESTS • Town Council Weekly Digest -June 18, 2010 • Town Council Weekly Digest -June 25, 2010 • Town Council Weekly Digest - July 2, 2010 ADJOURNMENT GENERAL PUBLIC INFORMATION ASSISTANCE FOR PEOPLE WITH DISABILITIES In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the Town Clerk at (415) 435- 7377. Notification 48 hours prior to the meeting will enable the Town to make reasonable arrangements to ensure accessibility to this meeting. AVAILABILITY OF INFORMATION Copies of all agenda reports and supporting data are available for viewing and inspection at Town Hall and at the Belvedere-Tiburon Library located adjacent to Town Hall. Agendas and minutes are posted on the Town's website, vArw-N,v.ci.tiburon.ca.us. Upon request, the Town will provide written agenda materials in appropriate alternative formats, or disability-related modification or accommodation, including auxiliary aids or services, to enable individuals with disabilities to participate in public meetings. Please send a written request, including your name, mailing address, phone number and brief description of the requested materials and preferred alternative format or auxiliary aid or service at least 5 days before the meeting. Requests should be sent to the Office of the Town Clerk at the above address. PUBLIC HEARINGS Public Hearings provide the general public and interested parties an opportunity to provide testimony on these items. If you challenge any proposed action(s) in court, you may be limited to raising only those issues you or someone else raised at the Public Hearing(s) described later in this agenda, or in written correspondence delivered to the Town Council at, or prior to, the Public Hearing(s). TIMING OF ITEMS ON AGENDA While the Town Council attempts to hear all items in order as stated on the agenda, it reserves the right to take items out of order. No set times are assigned to items appearing on the Town Council agenda. CC TOWN COUNCIL MINUTES CALL TO ORDER Vice Mayor Slavitz called the regular meeting of the Tiburon Town Council to order at 7:30 p.m. on Wednesday, June 2, 2010, in Town Council Chambers, 1505 Tiburon Boulevard, Tiburon, California. ROLL CALL PRESENT: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: PRESENT: EX OFFICIO: ORAL COMMUNICATIONS None. PRESENTATION Fredericks, Fraser, O'Donnell, Slavitz Collins Town Manager Curran, Town Attorney Danforth, Director of Administrative Services Bigall, Director of Community Development Anderson, Director of Public Works/Town Engineer Nguyen, Chief of Police Cronin, Town Clerk Crane Iacopi • Transportation Authority of Marin proposed ballot measure (Dianne Steinhauser, Executive Director) In her presentation, Ms. Steinhauser described funding shortfalls for local transportation projects resulting from a decrease in Measure A (sales tax) funding, as well as other economic factors. She said the proposed ballot measure would increase the local (Mann County) VLF fee by up to $10 and would raise up to $2.29 million. She said that the TAM Board would decide in June whether to place the measure on the November 2010 ballot, and would need a simple majority to pass. The Director said that the following transportation agencies had been affected by the economic downturn and would benefit from passage of the measure: Marin Transit Agency, SMART, GGHBTD, and TAM. Steinhauser said that a citizen's advisory committee had been formed and had pinpointed the following types of projects for funding: senior transportation services that are not currently in Town Council Minutes #xx -2010 June 2, 2010 Page I existence; local roads; Safe Routes to School and crossing guard programs; and car share and other commuter alternatives. She asked for questions from the Council. Councilmember Fraser asked what the response had been from other cities. Ms. Steinhauser said that some of the questions pertained to who would "get the money" if the ballot measure passed. She said that the money for seniors would go to the Marin Transit Agency, to be tailored to programs for seniors; and that the streets funding would go to the cities, if the ballot measure was successful. Ms. Steinhauser also commented on a question that had arisen regarding possible "competition" with a state-wide VLF ballot measure to fund State Parks. The Director said that surveys had shown that people who supported one measure would likely support both measures; and that the voter demographic was 133,000 voters in Marin compared to 8 - 9 million voters state-wide. Acting Mayor Slavitz thanked Ms. Steinhauser for her presentation and asked whether she would wait until after the public hearing to show the video she had brought to the meeting. CONSENT CALENDAR Wireless Communication Facilities Standards - Update Town's Wireless Communications Facilities Standards to reflect changes in state and municipal law and other amendments (Director of Community Development Anderson) 2. Hacienda Drive Easement - Adopt resolution accepting Wayne recreation easement over a portion of Hacienda Drive (Director of Community Development Anderson) MOTION: To adopt Consent Calendar Item Nos. 1 and 2, as written. Moved: Slavitz, seconded by Fredericks Vote: AYES: Unanimous ABSENT: Collins ACTION ITEMS 1. Appointments to Boards, Commissions and Committees - Consider appointment to fill pending vacancy on Belvedere-Tiburon Library Board of Directors (Town Clerk Crane Iacopi) Town Clerk Crane Iacopi gave the report. She said that Ms. Johnson was finishing her first term and sought reappointment to the Library Board. There were no other applicants, for the position, according to the Town Clerk. Town Council Minutes #xx -2010 June 2, 2010 Page 2 MOTION: To appoint Beverlee Johnson to the Library Board for a second term. Moved: Slavitz, seconded by Fredericks Vote: AYES: Unanimous ABSENT: Collins 2. Del Mar Valley Utility Undergrounding Assessment District - Consider actions related to formation of new supplemental utility undergrounding district (Town Attorney Danforth) a) Resolution of Intention to Establish the Del Mar Valley 2010 Supplemental Utility Undergroundng Assessment District b) Resolution Preliminarily Approving Engineer's Report and Setting the Date, Time and Place for Public Hearing Town Attorney Danforth gave the report. She said that 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. Danforth said that Town staff held the first property owner advisory meeting on May 25, 2010, and a second meeting on June 2, 2010, just before the Council meeting, to inform interested parties of the pending formation of the new district. She said the attendees raised a number of questions, including the method for calculating benefit spread, the ability to personally purchase the anticipated bonds, the ballot process, and the accounting of the Town's expenses to date. The Town Attorney said that the Council's May 19'hresolution set in motion a series of steps that would form the new district and that the Council must now decide whether to take the next step in the formation process by adopting the following resolutions: 1) a Resolution of Intention 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. She said that Council adoption of the Resolution of Intention did not bind the Town to any further action but was required before the Council could decide to submit the proposed district to the balloting process. Danforth said that if the Council decided to adopt the Resolution of Intention, the next step would be to preliminarily approve the Supplemental Engineer's Report, set a date for public hearing of protests, and direct staff to prepare and mail the notices of proposed assessments and the ballots to property owners. The Attorney said that notices and ballots must be mailed to all property owners at least 45 days prior to a public hearing and ballot tabulation. She said that the resolution set the date for this hearing of July 21, 2010. Acting Mayor Slavitz opened the hearing to public comment. There was no public comment. Danforth introduced Sam Sperry, of Meyers, Nave, appointed District Bond Counsel, to answer any questions of the Council. Town Council Minutes #xx -2010 June 2, 2010 Page 3 Acting Mayor Slavitz asked Bond Counsel Sperry to address the issue of how any surplus funds could be returned to the Town to cover its costs, as well as any refunds to the district (Section 9 of the first resolution). Mr. Sperry said that there were two ways to address the issue: 1) that the Council could "cap" the amount of funds advanced by the Town to the district from its General Fund; and 2) that the Town might wish to reimburse the General Fund before declaring a surplus, and thereafter, if a surplus still existed, it could go to pay down the bonds. A third alternative, according to Sperry, would be to leave the issue open and use the surplus funds as the Council sees fit at the time. With regard to the second resolution, approving the Engineer's Report and setting the Date, Time and Place for Public Hearing, Sperry said that the notices and ballots would be sent to the property owners in the new supplemental assessment district. He said that he had discussed with Town Staff a possible modified version of the ballot that might be sent to the nine (9) plaintiff parcels within the new district. He said that these parcels had no assessed benefits assigned to them, and they were not entitled to participate in the ballot process under the provisions of the State Constitution. However, Sperry said that by sending ballots to these nine property owners, it would afford the Council an opportunity to hear from the property owners, as well as afford the nine properties an opportunity to participate in the process. Town Manager Curran confirmed that there was discussion at the recent advisory meeting of this proposal after receiving input from some of the nine property owners. She said 'that this "advisory" ballot would allow the enfranchisement of the nine properties and would also allow the Council to have more information to use in making its decision on whether to move forward with the district at the July 21 protest hearing. Town Attorney Danforth said that language describing the advisory ballots could be added to the second resolution. Acting Mayor Slavitz said that he would like the language in the first resolution to be "tightened up" to allow the Town to recover some of its costs in the event of a surplus, rather than be left open to determine later. Mr. Sperry proposed language to the effect that the Town could recover 50% of its costs, up to a cap of $250,000. Councilmember O'Donnell concurred, but said that he also favored allowing the Council to choose how it would refund any surplus to the District at the time it was determined that there would be a surplus, such as directing a "tax holiday" or calling the bonds, or any other action allowed by law. O'Donnell agreed with the proposal for an advisory ballot; he commended Bond Counsel Sperry for coming up with the idea. Town Council Minutes #xx -2010 June 2, 2010 Page 4 Councilmember Fredericks commented that she thought the cap on the amount of the surplus to be returned to the Town was fair, and that the idea of keeping the other refunding options open to be determined at the time was a good strategy. Councilmember Fraser concurred with his colleagues' remarks. MOTION: To adopt resolution (a), amending Section 9 (refunding methods). Moved: O'Donnell, seconded by Fraser Vote: AYES: Unanimous ABSENT: Collins MOTION: To adopt resolution (b), with amendments regarding advisory ballots. Moved: O'Donnell,, seconded by Fredericks Vote: AYES: Unanimous ABSENT: Collins 3. Tax Revenue Anticipation Note - Determine Town Council's interest in purchasing the Town of Fairfax's FY 20111 Tax Revenue Anticipation Note (Town Manager Curran) Town Manager Curran gave the report. She said that the Town of Fairfax had approached the Town to determine its interest in purchasing another Tax Revenue Anticipation Note (TRAN). Ms. Curran noted that the Town's investment income had plummeted in recent years, from roughly $400,000 to $40,000. She said that the purchase of the TRAN would provide an opportunity to receive a greater return on investment than the Town's current investment vehicles. She also said that the purchase would be consistent with the diversification principles of the Town's investment policy, as well as meeting the safety and liquidity requirements of the policy. However, Curran said that because the Council had not been unanimous in its decision to purchase the previous TRAN, Staff now sought Council's direction as a matter of policy. Town Treasurer Bill Osher gave an overview of the Town's investments. He said that the majority of the Town's reserves were invested in the state fund called LAIF, which he said was superbly managed and that the risks of that fund were low because it was well diversified. He said that the Town also invested in CD's which had FDIC guarantees. Osher said that if the Town's investment in the purchase of a TRAN was over 5% of its total investments, he would not be as comfortable with moving forward in that direction; however, he said that $750,000 note was below that amount. He said that while a TRAN was not as secure as a CD or LAIF, the risk was minimal. The Town Treasurer also said that being a "good neighbor" to another public agency was an act that could pay off in unexpected ways. Town Council Minutes #xx -2010 June 2, 2010 Page 5 Additionally, Osher said that property values in Marin County had remained fairly stable which made the repayment of the note through property taxes more reliable. Town Manager Curran said that the Town would receive repayment (of the property tax revenues) directly from the County of Marin. She said that even if there was a widespread property tax default, the County was still obligated to make the payment to the Town of Tiburon, and would chase the scofflaws and collect the penalties. For this reason, she said, the Town of Fairfax "couldn't stiff us if they wanted to." Councilmember Fredericks asked Osher to define the risk that he had defined as "modest" or minimal. Osher said one aspect was the lack of diversification; another was possible bankruptcy and court challenges, and simply an investment philosophy of "money good." Fredericks asked whether interagency loans, such as TRANS, were a common practice. Town Manager Curran said that they were a common "cash leveling" technique used by public agencies. Councilmember Fraser asked the Town Treasurer to rate the [TRAN] risk on a scale of 1-10, with 10 being the highest risk. Town Treasurer Osher said he would rate the TRAN at "2" and only then because it was a percentage (5%) of the Town's invested funds. Councilmember Fraser asked what the Town would do with the funds if it did hot invest in the TRAN. Town Manager Curran said that the $750,000 would be invested in LAIF, which had a current return on investment of 0.58 to 1.10% (as opposed to the 4% TRAN loan rate). Councilmember O'Donnell said that he continued to oppose the idea of investing Town funds in TRANs. He also said that the previous loans were for shorter terms and that Staff proposed a longer term for the current note. Town Treasurer Osher said that he had recommended splitting the original $1 million note. into two (six-month) parts to diminish any risk associated with a longer time frame. However, he noted that the Town's return on investment was lower in the shorter term. Director of Administrative Services Bigall addressed the length of term of the note. She said that the California pool (where TRANs were normally bought and sold) was funded in July and paid in June. In response to a question from Councilmember O'Donnell, Bigall said that the Town of Fairfax had enough reserve funds to insulate them in an emergency, but not enough to carry them through the entire budget cycle. She said this was because the largest portion of any local agencies' budget expenditures, such as JPA fees, insurance, and the like, came due in July before property tax revenues were collected. She said that she was comfortable with Fairfax's budget position in this context. Town Council Minutes #.x -2010 June 2, 2010 Page 6 O'Donnell asked whether the Town of Fairfax could borrow money from a commercial institution. Ms. Bigall said that they would most certainly pay a higher interest rate and that she had heard the paperwork was cumbersome. Mr. Osher added that timing was an issue for Fairfax, as described above by Ms. Bigall. Councilmember O'Donnell asked Mr. Osher if he was comfortable with the Town of Fairfax's bond ratings. Osher replied that bond ratings in general had come under fire and were seen by some as having contributed to US economic meltdown. However, he noted that in the "municipal bond world" used a more stringent rating system to which some rating agencies were now returning. Osher said that historically, municipalities have a low default rate. He said that some geographic areas were harder hit than Marin, especially areas that had sustained a lot of new development which had created an inflated tax base. Osher said that in Marin County, the turnover of older homes acted as kind of a "cushion" when homes were reassessed under the Proposition 13 tax rules. Director Bigall said that Fairfax had $2 million in secured property taxes, more than enough to cover the amount they desired to borrow from the Town. Vice Mayor Slavitz commented that even if Fairfax lost half its tax revenues, there would still be enough to cover the TRAN. Acting Mayor Slavitz opened the matter to public comment. There was none. Councilmember Fraser said that the proposed purchase easily met the criteria of safety, liquidity, and yield under the Town's investment policy, in addition to meeting the needs of a fellow city. He said that it was about as risk free an investment as was available in today's marketplace. He also said that he had confidence in the leadership of the Town staff in making this recommendation. Councilmember O'Donnell said that while he agreed with many of the statements made by the Town's Treasurer concerning the safety and security of the investment, he did not like the idea of the Town becoming the "Bank of Tiburon" as a matter of policy. In addition, he said that he did not like the lengthened term of the note and he said he did not think it was wise just to make a few extra dollars on the investment return. Councilmember Fredericks said she agreed with Councilmember Fraser that the risks were minimal. She said that with regard to policy, she said that this loan was no different than the loans taken by other cities through the TRAN pool, and that it did not preclude the use of the Town of Tiburon taxpayer's dollars. On the other hand, Fredericks said, the loan would generate more money for the taxpayers in Tiburon. Vice Mayor Slavitz said that he agreed with these comments and also that he knew first-hand how grateful the Town of Fairfax was for the opportunity to make the loan. He said that the Town Council Minutes #.x -2010 June 2, 2010 Page 7 Town was planning to invest the money anyway and in this way, it also helped a neighbor. He said that the TRAN loans had a good track record but that the Town would continue to monitor the process closely. There was a brief discussion about the length of the term of the note. The Town Manager said she would recommend optimizing the investment and keep the proposed term, beginning in approximately mid-August 2010 to late April 2011. The note would be secured by the Town of Fairfax's December 2010 and April 2011 property tax receipt, according to Director Bigall. Director Bigall said that Staff would bring the paperwork for approval to Council at the next meeting, if there was a motion to proceed. MOTION: To support the purchase of another TRAN investment, as proposed, and direct Staff to return with the necessary paperwork on Consent Calendar at the next Council meeting. Moved: Slavitz, seconded by Fredericks Vote: AYES: Fraser, Fredericks, Slavitz NOES: O'Donnell ABSENT: Collins Before the public hearing, TAM Director Steinhauser showed an 8-minute viddo about transportation issues affecting seniors. She took comments from the Council about the earlier presentation, as well. Councilmember O'Donnell asked whether any other communities in California were contemplating a VLF fee similar to TAM's proposal. Ms. Steinhauser said that SB83 allowed transportation agencies to levy such fees for local transportation projects; she said that the County of Santa Clara was contemplating such a fee. Acting Mayor Slavitz thanked Ms. Steinhauser for her presentation. He noted that in the current economic climate, local agencies might find themselves being more and more "on their own." PUBLIC HEARINGS 1. Mill Valley Refuse Service - Consider rate increase for recycling services and food waste pick-up (Town Manager Curran/Director of Administrative Services Bigall) - continued without hearing to June 16, 2010 2. FY 2010-11 Municipal Budget- Introduction of FY 2010-11 municipal budget and capital improvement program (Town Manager Curran/Director of Administrative Services Bigall) Town Council Minutes #xx -2010 June 2, 2010 Page 8 Director Bigall gave the report. She said she was pleased to present a balanced budget. She noted that in January, 2010, a $350,000 budget deficit was predicted but now Staff projected a $51 surplus for the fiscal year ending June 30, 2011. Bigall said the reductions in the budget had come primarily from concessions by Town staff. These concessions included a 5% reduction in department spending, and employees agreeing to pick up the previously paid employer (Town) portion of the staff s PERS pension contribution. Director Bigall showed in her powerpoint presentation how Town revenues had declined during the widespread economic downturn. She said that property taxes were down 25%, and investment income was down 77%. She said that property taxes represented over 50% of the Town's General Fund revenue. Bigall said that the proposed budget did not reflect any possible take-aways by the State in the coming fiscal year. The Director took questions from Council and said that a copy of her powerpoint presentation was available for further study. Councilmember Fraser asked what level of reserves was mandated by the Town and asked what would happen if the Town's fiscal position fell below that level. Director Bigall said that the Town's reserves were at $8 million; that the Town would not want to fall below $5 million; and that the Council would be presented with options, such as cutting its capital expenditures, if the reserve levels were to drop. Town Manager Curran noted that the Town had healthy reserves but that it was also important to do long-term planning to maintain them. Councilmember Fredericks asked if the current level of reserves would address the road repairs in the Del Mar neighborhood. Director Bigall said that Town staff had programmed this in the coming year's capital improvement budget, and had saved up gas tax and streets funding in the amount of $1 million. Councilmember O'Donnell commended the Town Manager and Director of Administrative Services for their work in achieving a balanced budget. He also commended Town staff, including members of the Tiburon Police Association, for making the aforementioned concessions. He noted that it was not easy to make or receive pay cuts. He said the practice of paying into one's pension was more comparable to the practices of the private sector. Town Manager Curran also thanked Town staff, stating that she was proud of the organization's response to the Town's current fiscal situation. She added that she hoped the Town did not have to make any pay cuts in the future. Town Council Minutes #xx -2010 June 2, 2010 Page 9 The Town Manager said that Staff would bring the Capital Improvement budget and all related resolutions for budget adoption to the next meeting. TOWN COUNCIL REPORTS None. TOWN MANAGER'S REPORT Town Manager Curran said that Councilmember Fraser had continued to express an interest in hearing more from Sanitary District No. 5 about the proposed rate increase. She asked Council's direction on how to proceed. Councilmember Fraser said that he thought it was important for the Council to be responsive to Tiburon's residents and to thoroughly vet this extraordinary proposal (rate increase). The Council noted that the district was a separate and autonomous entity, with public meetings that could be attended by interested residents. Curran noted that the next meeting of the San 5 Board was scheduled for June 29. Council directed Curran to work on a possible presentation by the District to the Council at a later date. WEEKLY DIGESTS • Town Council Weekly Digest - June 4, 2010 • Town Council Weekly Digest- June 11, 2010 ADJOURNMENT There being no further business before the Town Council of the Town of Tiburon, Vice Mayor Slavitz adjourned the meeting at 9:35 p.m. JEFF SLAVITZ, ACTING MAYOR ATTEST: DIANE CRANE IACOPI, TOWN CLERK Town Council Minutes #xx -2010 June 2, 2010 Page 10 cc 4~ Z TOWN COUNCIL MINUTES CALL TO ORDER Mayor Collins called the regular meeting of the Tiburon Town Council to order at 7:30 p.m. on Wednesday, June 16, 2010, in Town Council Chambers, 1505 Tiburon Boulevard, Tiburon, California. ROLL CALL PRESENT: COUNCILMEMBERS: PRESENT: EX OFFICIO: PRESENTATIONS Collins, Fredericks, Fraser, O'Donnell, Slavitz Town Manager Curran, Town Attorney Danforth, Director of Administrative Services Bigall, Director of Community Development Anderson, Director of Public Works/Town Engineer Nguyen, Chief of Police Cronin, Town Clerk Crane Iacopi 1. Commendation for Rooney's Restaurant - Present commendation to John Rooney for 40 years of outstanding service to the Tiburon community (Town Manager Curran) Mayor Collins presented John Rooney with a commendation that he read into the record. Mr. Rooney thanked the Council and said that he had enjoyed serving his customers, many of whom had become his friends, over 40 years in Tiburon. He said that he only wished that his partner, David, had been able to be there to receive the commendation, as well. 2. Hazardous and Solid Waste Joint Powers Authority- Presentation Regarding 2010-11 Work Plan and Zero Waste Efforts (Michael Frost, Executive Director) Town Manager Curran said that the managers of the 11 cities in Marin were the board members of the Hazardous and Solid Waste Joint Powers Authority (JPA). She said that because the JPA Board was considering authorizing a tipping fee increase in the coming fiscal year, she suggested that the Council provide her with direction after the presentation, if it chose to do so. Curran introduced Executive Director Michael Frost. Mr. Frost gave a presentation to Council about the ongoing efforts of the JPA to attain the "zero waste" target mandated by AB 939. He said that the JPA worked in concert with the Town Council Minutes #xx -2010 xxxxxxx, 2010 Page I haulers in Marin County to achieve these goals. He noted that Marin County was one of the first counties in the State to reach 50% reduction since the implementation of AB 939. The Director outlined the JPA work plan and budget for 2010-11 which included development of a zero waste "tool kit", education and implementation of programs, and the addition of a Zero Waste Coordinator (outreach) position. He said that the budget contemplated $100,000 for the toolkits, $200,000 for education and outreach, $160,000 for the administrative and coordinator position, plus $300,000 to grant back to member agencies for outreach programs. Frost said that the JPA's funding came entirely from tipping fees, and that 50% of the fees paid to the Redwood Landfill came from outside the County. He said that these fees would help to subsidize the programs. In response to questions from Councilmembers Slavitz and Fraser, Director Frost said that the JPA worked hard to prevent overlap between the JPA and haulers in disseminating information and programs. He said that the five private haulers in the County (and one public agency) were all working toward the same goal, using the same processes. He said the JPA represented a good example of a public/private partnership. In response to a question from Councilmember Fredericks, Frost said that the JPA did not have regulatory powers and that its efficacy depended upon the contracts developed by individual agencies with the haulers. Mayor Collins asked what an individual homeowner could do to move toward the zero waste goal. Mr. Frost said that he recommended doing "just one thing," such as bringing reusable bags to the grocery store; he said that would make a big difference. Mayor Collins thanked Mr. Frost for his report. 3. Sanitary District #5 - Information and discussion regarding proposed rate increase (Board Members and Staff of Sanitary District #5) Boardmember Connie Wiley gave a brief history of the District's operations since 1940. She said the plant currently served customers in Tiburon (65% of its "flow") and Belvedere (35% of its "flow"). She said it was staffed by nine employees and had an operating budget of $2.6 million annually. Wiley also said that Sanitary District No. 5 had a consistently high rating for compliance and containment. Plant Manager Bob Lynch said that District rates had not increased in 25 years (between 1980 and 2005). Lynch said the District imposed a 17% increase in 2005 in order to make capital improvements and repairs to its aging equipment. Now, more significant repairs were needed, according to Lynch, which drove the proposal for another rate increase. Town Council Minutes #xx -2010 xxxxxxx, 2010 Page 2 Councilmember O'Donnell asked how the District had paid for recent repairs and projects. Lynch said it had paid for them out of reserves; he said the District currently had $2 million in reserves. O'Donnell commented that District costs might be lowered by borrowing and prudently paying the loans back over time. The Councilmember asked if that strategy had been discussed by the Board. Lynch said that the "old" board had rejected the notion of borrowing; he said he had not discussed the issue with the current board. O'Donnell commented not all the residents had lived in Town since 1980 and were able to take advantage of the low rates; he said that many objected to the large rate increases at this time. Councilmember Fraser also remarked that the proposed double digit rate increases seemed high and asked what were for. Mr. Lynch said that they would be used to replace the capital equipment; he said that an evaluation had been performed by Harrison showing that significant repairs were needed to the District's collection system. He said the District had also entered into an Agreement with. River Watch to install a televised system into the catch basins. Fraser asked what the long-term strategy was for the District, after these rate increases were spent down. Lynch said that hopefully, the District would be able to replace all its equipment and would be able to stabilize the rates, barring any unforeseen accidents or leaks. Board President Claire McAuliffe said that the repairs needed to keep the District equipment running was akin to "painting the Golden Gate Bridge". She said that she had never seen such a capital intensive organization. McAuliffe said that the Board regretted having to propose the new rate increases; however, she said that the Board was comfortable with the level of supporting detail provided by the consultant reports and the management and staff of the District. With regard to the District's budget, McAuliffe noted that the District had experienced the same kind of drop-off in fees and interest income experienced by other public agencies, combined with rising costs. She said there were no plans for increased growth but there were rising operating costs. She said that the plant was at a critical juncture in its life and that it was notable that the District had not received any large fines. The Board President said that Tiburon's rates did not cover Tiburon's costs; she said that the reserves needed to grow from $2 million to $4 million. She said that the rate increases would be used first to build up the reserves and she acknowledged that the Board had to catch up for the District's prior years' "pay as you go" policy. McAuliffe said that Proposition 218 allowed the District to increase its rates but also noted that the Board had no plans to impose the maximum rate increase allowed by law at this time. Town Council Minutes #xx -2010 xxxxxxx, 2010 Page 3 Vice Mayor Slavitz asked Ms. McAuliffe if the Board had considered consolidating with other districts to save costs based on economy of scale. McAuliffe said that she liked the concept of consolidation; she noted that Assembly member Huffman was leading the discussion about consolidation with SASM (Sanitary Agency of Southern Marin). Councilmember O'Donnell said that financing was presently at historic lows and suggested that the Board consider financing some of the capital improvements. Councilmember Fredericks asked how it was possible to finance work on a "pay as you go" basis with a fixed customer base. Councilmember Fraser gave kudos to McAuliffe for the good work of the Board. But he urged the Board to look into financing so that it would have appropriate reserves on hand now and in the future. McAuliffe said that the Board was looking into all of these matters. Plant Manager Lynch said that after the first project (which he said was not big enough to finance) was completed, the District might apply to the State for a lower interest loan and in turn, not have to charge such high rates to its customers. Mayor Collins thanked the members of the District for their presentation. CONSENT CALENDAR Town Council Minutes - Adopt Minutes of May 19, 2010 meeting (Town Clerk Crane Iacopi) 2. Commendation for Rooney's Restaurant - Approve commendation to John Rooney for 40 years of outstanding service to the Tiburon community (Town Manager Curran) 3. Tiburon Police Association MOU - Authorize Town Manager to execute Memorandum of Understanding with Tiburon Police Association (Director of Administrative Services Bigall) 4. Tax Deferral for Employee Ca1PERS Contributions - Adopt Resolution regarding Internal Revenue Code 414 (h)(2) to allow for tax deferral of employee contributions (Director of Administrative Services Bigall) MOTION: Moved: Vote: To adopt Consent Calendar Item Nos. 1 through 4, as written. Slavitz, seconded by Fredericks AYES: Unanimous Town Council Minutes #xx -2010 xxxxxxx, 2010 Page 4 PUBLIC HEARINGS 1. Mill Valley Refuse Service - Consider rate increase for recycling services and food waste pick-up (Town Manager Curran) - continued without hearing from June 2, 2010 Town Manager Curran gave the report. She said that Mill Valley Refuse Service (MVRS) typically seeks an annual rate increase. Recent increases, according to Curran, were 3.2% in 2007, no increase in 2008, and 3.1 % in 2009. She said that MVRS was seeking a 9.75% increase in the coming fiscal year, of which 3.83% would cover increased costs for the current service, and 5.92% would be for a newly proposed curbside food waste pick-up and composting service. The total rate increase would translate to approximately $2.68 per household, per month, based upon a 32-gallon can plus recycling and yard waste pick-up. Town Manager Curran said that the Town and other Marin cities had requested that the regular rate increase be supported by a formal rate review. She said that the review was performed last year by R3 Consulting Group, a national solid waste management consulting company. The R3 report showed that a substantially greater rate increase than 3.1 % was warranted at that time, and the Town Manager recommended its approval. In response to questions from the Council regarding the franchise agreement, Town Manager Curran noted that the renewal of the MVRS franchise agreement would be coming to the Council in the near future for consideration. At this time, she said she recommended approval of the rate increase in the coming year, noting that this would be the 22nd amendment to the franchise agreement which denoted a long and successful working relationship with MVRS. MVRS Managing Partner Jim Iavarone responded to questions from the Council. He said that the proposed rate increase requested by the company was lower in Tiburon than some of the other communities it serviced. He said that this was based on a variety of factors, such as population, labor costs, narrow or hilly streets, and the like. He also said that the franchise fees differed between communities. Tiburon, for instance, charges MVRS $70,000 in street impact fees, in addition to its franchise fees, according to Iavarone. With regard to the proposed food waste pick-up, Town Manager Curran listed some of the benefits of to the community of the new weekly service: • Helps the Marin County Solid Waste JPA, of which Tiburon is a member, reach its Zero Waste goal; • Increases the number and types of items that can be composted when compared to backyard composting systems; • Extends the life of the landfill due to diversion of food waste; • Eliminates harmful methane gas caused by rotting food in the landfill; • Creates a useable nutritive soil amendment in the form of compost; Town Council Minutes #xx -2010 xxxxxxx, 2010 Page 5 • Saves water and effluent to sewerage treatment plants by reducing garbage disposal usage; • Offers the possibility for some households to reduce the size of their trashcans to the cheaper 20-gallon size, and thereby virtually offset the monthly rate increase. Curran said that yard waste is currently picked up by MVRS every other week. However, she said that state law mandated that food waste must be picked up weekly, which accounts for some of the additional expense of the food waste program. Additionally, Redwood Landfill and Recycling Center's new composting operation is more expensive than their yard waste only operation, requiring a significant hike in their dump fee. She said that it might be possible in the future to reduce truck trips by reducing the frequency of garbage pick-up if food waste is diverted from the regular garbage. Councilmember Fredericks asked about the measure of success of the new program and when MVRS thought that people might switch to 20-gallon cans. Mr. Iavarone said that it depended upon the speed of customers in making the switch to the new program, by the customers. He said the same question arose when recycling programs were instituted but experience showed that customers use fewer garbage cans now as a result. Ms. Fredericks questioned what the impact would be in a community like Tiburon, if the program was voluntary and if the "food industry" waste was not included in the program. Iavarone also said that truck tonnage was weighed at the landfill and that tonnage previously going to one area that was diverted to another area could be used to measure the success of the program. Councilmember Slavitz asked whether residents would pay for the service whether or not they participated. Iavarone said that, yes, it was included in everyone's recycling rates. Councilmember O'Donnell asked about other services provided by MVRS. Mr. Iavarone said that MVRS provided Tiburon residents with a twice per year "on demand" extra trash pick-ups, rather than limiting the pick-ups to set weeks. Mayor Collins asked what kinds of things would go into the regular trash if wood waste was diverted. The Mayor said that he was interested in seeing how a household might make the transition from a 32-gallon to 20-gallon can. Mr. Iavarone said many items, such as food soiled paper could be added to the food waste mix, reducing the regular waste, but that the latter would still be necessary for un-recyclable packaging materials and similar products. Councilmember Fredericks suggested that the program could be made easier for people if MVRS service provided a pail with a lid for food waste. Town Council Minutes #xx -2010 xxxxxxx, 2010 Page 6 Mr. Iavarone said that the company had thought about this but had made a conscious decision not to add to the waste stream by providing additional cans. Mayor Collins opened the public hearing. Mill Valley resident Joan Irwin spokes of the benefits of composting and the new food waste program. She said that as a result of composting and recycling, she hardly had anything at all in her regular trash pick-up. She urged the Council's support of this program. Tiburon resident David Barker said that Mill Valley Refuse Service did a great job in Tiburon. He did, however, have some questions about the proposed rate increases and the study supporting them. He said that the independent review had called for a 13% rate increase in 2009. Town Manager Curran said that Mr. Barker was correct in his analysis but noted that the rate increase awarded the company had been much lower. Mr. Iavarone said that the rate was lower because the company had cut a route, constituting a savings of 40 man and truck hours per week. Mr. Barker suggested that in the absence of a formal rate review each year, there should be a clause in the franchise agreement tying rate increases to the CPI. Barker said it was not a good time to increase rates due to the economy; on the other hand, he said it was important to make customers more aware of their options to downsize their cans. He said that he was unaware that he had the option now of using a smaller can for a reduced rate. Barker also said that he did not like the proposed food waste proposal. He stated that methane emissions from the composting food waste would be worse than emissions from increased pick- ups by the garbage trucks. Mayor Collins closed the public hearing. The Mayor asked Mr. Iavarone to respond to the emissions question. Mr. Iavarone said that California has very strict emissions standards, including those for diesel engines. He said that in his opinion, the concern about methane emissions did not justify not going forward with the program. Vice Mayor Slavitz agreed with Mr. Barker about the service provided by MVRS; he said the service was "fantastic" in the Reedlands. Councilmember Fredericks said that the discussions about food waste reminded her that in Marin County we are always trying to justify conflicting outcomes with regard to environmental goals. Town Council Minutes #xx -2010 xxxxxxx, 2010 Page 7 She said that she was bothered by the "gesture" of the food program and the fact that it was not mandatory. She asked MVRS to follow up on her request to provide pails, reiterating her statement that it would make people more willing to participate in the program. Fredericks also recommended Council approve the food pick-up as a pilot program, to be evaluated in a year to measure its success. While acknowledging that change is not easy, Councilmember Fraser said that the proposed program was "heading in the right direction". He encouraged MVRS to do more outreach to the community to ensure its success and to obtain feedback. Councilmember O'Donnell commended staff for a very thorough report and analysis. He agreed with the statements about the community not being aware of the 20-gallon option. He suggested that information about the new program be disseminated in the Town's newsletter. O'Donnell said that he supported the zero waste goals and that the rate increase on the regular service had been vetted and was justified. He said the additional fee for the food waste pick-up was justified and would be a benefit to the community. He commended MVRS for their effort in bringing the program forward. Vice Mayor Slavitz agreed, stating that it was a good idea to tie increased rates to increased service. He asked MVRS to look at the possibility of reducing the number of trucks needed to do the weekly pick-ups. Slavitz also agreed with the suggestion to measure the success of the new program. Mr. Iavarone said that MVRS sent out its own newsletter, and planned to send out color flyers to its customers, as well as post information on its website, about the new food waste program. Mayor Collins said that information about the 20-gallon can option should be placed into the bills that were sent to customers. He also suggested that staff look at putting some sort of results measurement clause into the contract. The Mayor said that the program was the right way to go towards cleaning up the environment and that he would vote to support it. MOTION: To approve the 22nd amendment to the MVRS contract; to explore modifications to the food waste pick-up service to allow for separate containers to be placed in the green/yard waste cans; and to add language to the contract for annual program evaluation. Moved: Fredericks, seconded by O'Donnell Vote: AYES: Unanimous Town Council Minutes #xx -2010 xxxxxxx, 2010 Page 8 2. FY 2010-11 Municipal Budget -Review and consider adoption of FY 2010-11 municipal budget and capital improvement program and related resolutions (Town Manager Curran/Director of Administrative Services Bigall) a) Resolution Adopting a Municipal Budget Plan for the Town of Tiburon and the Tiburon Redevelopment Agency for the Fiscal year ending June 30, 2011; b) Resolution Establishing an Appropriation Limit for Fiscal Year 2010-11 pursuant to Article XIII B. Of the Constitution of the State of California; C) Resolution Repealing Resolution No. XX-2009 and Adopting an Amended Management Recognition and Incentive Compensation Program; d) Resolution Repealing Resolution No. XX-2009 and Adopting an Amended Mid-Management Recognition and Incentive Compensation Program; Director of Administrative Service Bigall gave a brief review of the previous meeting's report which covered the operating budget for the upcoming fiscal year. Director of Public Works Nguyen reviewed the $7.2 million Capital Improvement Program budget for FY 2010-11. He said that the program was comprised of three parts: 1) streets; 2) drainage; and 3) community projects. Nguyen described the community projects: the proposed Lyford Drive parking area, the proposed recreation building at Ned's Way, several Safe Routes to School and Non-Motorized Transportation projects, including improvements to the sidewalks and access in the Del Mar School area, the license plate camera readers, and the annual Railroad Marsh cattail removal, and improvements to the medians on Tiburon Boulevard as well as the Multi-Use Path (MUP). Vice Mayor Slavitz asked whether the reduced amount of funding for streets rehabilitation would adversely impact the PSI of the streets, or allow them to fall below the benchmark the Town had strived so hard to achieve. Director Nguyen said that the Town had met its target of 70% PSI in 2009 upon completion of the repair of the "failed streets" over the last several years. He noted that the Council had provided extra funding from Town reserves to accomplish this; Nguyen said that this portion of the funding would not be needed in the coming fiscal year in order to maintain the Town's streets. He said that staff would continue to monitor the condition of the Town's streets. Councilmember O'Donnell commented that the roadway of Trestle Glen seemed to be in "tough shape" and asked whether it was slated for repair. He also raised the issue of the condition of the Town signboards at Blackie's Pasture. Town Manager Curran said that improvements to the sign were anticipated in the upcoming fiscal year. Councilmember Fredericks concurred with the importance of maintaining the high PSI of the Town's streets. She said that the Council had approved extra funding over the last seven years to achieve this benchmark so that the on-going repair and maintenance would cost less over time. Town Council Minutes #xx -2010 xxxxxxx, 2010 Page 9 Vice Mayor Slavitz said that the decomposed granite on the MUP seemed to be in pretty good condition. Director Nguyen agreed, but added that during recent rains, some puddling had occurred. He said that the path needed only some minor repairs. The Vice Mayor noted that the Council did not seem to be receiving the same number of complaints about issues on the path which might be a result of the improved signage that was installed. Councilmember Fraser commented that it would be desirable to make similar improvements (decomposed granite jogging path) to the MUP between San Rafael Avenue and Mar West. He asked whether it might be included in the budget when the improvements were made to construct the Lyford Drive parking lot. Director Nguyen said that he would look into the possibility. Mayor Collins commented that the Redevelopment Agency's budget seemed largely dormant; he asked whether an annual audit in the amount of $5,000 was necessary. Town Manager Curran noted that the agency continued to report until the Town met its State- mandated housing allocation. Director Bigall said the auditors were the ones who filed the reports to the State on behalf of the Town. She also noted that she was negotiating a reduced price for the overall audit report. Director Bigall reviewed all the resolutions that were needed to adopt the budget. She reviewed the two resolutions for the Town's Management and Mid-Management employees that had been submitted as late mail. She said that the Council's Finance Committee had proposed a 3.5% salary increase for these two groups of employees, in exchange for the employees to start paying the employee-portion of the PERS contribution, beginning July 1, 2010. This change would reduce the Town's pension liability over time, and would be in effect for all new hires in the future. She said that the Tiburon Police Association had agreed to the same change beginning July 1, 2010. Councilmember Fraser commended staff for an exemplary job and also commended the Town's employees for their spirit of cooperation in making this structural change which allowed the Town to balance its budget and reduce its pension liability going forward. Councilmember O'Donnell concurred. He said that he still had concerns about the Town's policy of converting unused vacation time to cash at the end of the year. He said that in the private sector, vacation was a benefit that was awarded to employees for their use; he questioned whether a policy that allowed too much accrual might lead to pension abuse. Town Manager Curran said that staff would look into whether any changes to the policy were appropriate. Town Manager Curran expressed her gratitude to Director Bigall for her exemplary work on the budget. She praised the Town staff for its "constructive attitude" in meeting the challenges of the current economic climate. Curran also said she appreciated the leadership and support of the Town Council Minutes #xx -2010 xxxxxxx, 2010 Page 10 Town Council in being able to make important structural changes. MOTION: To adopt budget resolutions (a) through (d), as written. Moved: Slavitz, seconded by Fredericks Vote: AYES: Unanimous TOWN COUNCIL REPORTS Vice Mayor Slavitz said that he had attended the Marin Energy Authority board meeting during Mayor Collins' absence. He said that the Mayor was sorely missed and presented him with a commendation from the MEA Board. TOWN MANAGER'S REPORT None. WEEKLY DIGESTS • Town Council Weekly Digest - June 4, 2010 • Town Council Weekly Digest -June 11, 2010 ADJOURNMENT There being no further business before the Town Council of the Town of Tiburon, Mayor Collins adjourned the meeting at 10:22 p.m., in memory of Fred Hannahs, who was involved in the incorporation of the Town of Tiburon and served on its first Council. RICHARD COLLINS, MAYOR ATTEST: DIANE CRANE IACOPI, TOWN CLERK Town Council Minutes #.x -2010 xxxxxxx, 2010 Page 11 To: From: TOWN OF TIBURON 1505 Tiburon Boulevard Tiburon, CA 94920 Mayor and Members of the Town Council Office of the Town Attorney Town Council Meeting July 7, 2010 Agenda Item: CCOW3 Subject: Del Mar Valley Utility Undergrounding Supplemental Assessment District - Recommendation to Approve an Agreement with the Reed Union School District and Related Actions Reviewed By: BACKGROUND AND ANALYSIS 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. On June 2nd, the Council moved forward with the process, preliminarily approving the Engineer's Report and setting the Public Hearing on the district for July 21, 2010. The proposed new supplemental district includes ten parcels owned by the Reed Union School District ("RUSD"). In the past, RUSD and the Town have disagreed as to whether RUSD is obliged to pay assessments imposed through a Town assessment district. When the Town formed the now-abandoned 2006 assessment district, the two parties reached a compromise to resolve the issue; RUSD paid a portion of the total assessment and the Town paid the remainder and committed to construct certain sidewalk improvements. Town Manager Peggy Curran and RUSD Superintendent Christine Carter have discussed a similar accommodation in connection with the pending district, such that the Town would pay the assessments that would otherwise be imposed on RUSD's parcels and RUSD would waive its right to cast a ballot in the July 21s' majority protest public hearing. The agreement will be moot if the new supplemental district does not proceed. Superintendent Carter discussed this agreement with the School Board at a recent meeting. Having received their approval, she signed and returned it to the Town for Town Council approval. FINANCIAL IMPACT The Town would pay the assessments on the RUSD parcels, for a total payment of $85,417.10. This cost is comparable to that which the Town would have incurred under the original agreement. RECOMMENDATION Staff recommends that the Town Council: Approve the Agreement with RUSD and authorize the Town Manager to execute it on the Town's behalf. Exhibit: Draft Agreement with RUSD Prepared By: Ann R. Danforth, Town Attorney AGREEMENT REGARDING 2010 DEL MAR SUPPLEMENTAL ASSESSMENT DISTRICT This Agreement is made and entered into on this [ 6 day of June, 2010 between the Town of Tiburon (hereinafter "Town") and the Reed Union School District (hereinafter "District") to formalize their mutual agreement to resolve all issues raised or that could have been raised in connection with the District's obligation to pay assessments imposed by the Town on District property within the Del Mar Supplemental Assessment District ("Proposed Supplemental District"). RECITALS A. Since January 2003, the Town has pursued the formation of an assessment district to finance the undergrounding of overhead utilities in the Del Mar Valley area. The Town is now considering creating a new supplemental district ("Supplemental Assessment District") to impose additional assessments ("Supplemental Assessments") to cover projected funding shortfalls for the project. The District owns ten parcels in the proposed district. The parties disagree as to whether the District would be obliged to pay any assessments imposed on its parcels in the event that the Town establishes said Supplemental Assessment District. B. On June 2, 2010 the Town Council adopted a resolution approving the Preliminary Engineer's Report for the proposed Supplemental Assessment District and directing related actions, including setting the dates for balloting and mailing ballots. On June 3, 2010, ballots, a notice of assessment, description of the assessment method, and information concerning the hearing to be held July 21, 2010 were mailed to the property owners. According to the Preliminary Engineer's Report the final total Supplemental Assessment attributable to the District is eighty-five thousand, four hundred seventeen dollars and seventeen cents ($85,417.10) ("Supplemental District Assessment"). July 21, 2010 is the deadline for voting on the assessment. On that date, the Council will hold a public hearing, tabulate ballots and, if sufficient property owners approve, the Council will decide whether to form the Supplemental Assessment District. C. The Town and the District would prefer to act proactively to resolve the disagreement between them through negotiation prior to the final decisions regarding the formation of the Supplemental District. Accordingly, they have agreed to settle this controversy on the terms and conditions set forth in this Agreement. NOW, THEREFORE, in consideration of the foregoing, and for good and valuable consideration, the sufficiency of which is hereby acknowledged, the parties hereto agree as follows: Page 1 of 3 AGREEMENT 1. Settlement Terms A. In the event that the Town Council votes to form the Supplemental Assessment District, the Town will assume the responsibility of paying the Supplemental District Assessment. In consideration thereof, District hereby waives its right to submit ballots for its ten parcels either in opposition to or support of the Supplemental Assessment District. B. Nothing in this Agreement shall be interpreted to oblige the Town Council to approve the proposed Supplemental Assessment District. C. Except as expressly provided herein, this Agreement will terminate and be of no further force and effect if any of the following events occur: (1) the property owners in the proposed Supplemental Assessment District fail to approve the Supplemental District as required by law; (2) the Town Council fails to take the actions necessary to complete formation of the Supplemental Assessment District; or (3) the Town decides for any reason, to abandon the proposed Supplemental Assessment District, before or after taking action on said district. 2. Governing Law; Venue. The Parties agree that the laws of the State of California will govern the interpretation of this Agreement. The County •of Marin shall be the venue for any litigation that may arise from this Agreement. 3. Consultation With Counsel. The Parties acknowledge that they have read this Agreement and each part thereof and fully understand the implications of the same, have had the opportunity to discuss this Agreement with counsel of their own choice, and have either sought such consultation or have affirmatively chosen not to obtain such consultation. This Agreement is the product of negotiation and preparation of the Parties hereto, who expressly agree that the Agreement shall not be deemed prepared or drafted by one party or the other, and shall be construed accordingly. 4. Successors in Interest; Assignment. This Agreement shall be binding on the assigns and successors in interest to both parties. Neither party may assign their obligations under this Agreement without the written consent of the other party. 5. Entire Agreement; Amendment. This Agreement represents the entire Agreement between the parties. This Agreement may only be amended in writing. 6. Counterparts. This Agreement may be executed in counterparts and so executed shall constitute an Agreement which shall be binding upon both Parties hereto. A photocopy of the fully executed Agreement shall have the same force and effect as the original. IN WITNESS WHEREOF, the Parties execute this Agreement follows: Page 2 of 3 I accept the terms and conditions set out above; Dated: 2010 REED UNION SCHOOL DISTRICT 112 By: Its; Dated: , 2010 TOWN OF TIBURON By: Its: APPROVED AS TO FORM: Dated: , 2010 Dated: 47106, 2010 By: Ann R. Danforth, Esq. Town Attorney DANNIS WOLIVER KELLEY By: Glenn N. Gould, Esq. Attorneys for Reed School District Page 3 of 3 ' TOWN OF TIBURON Town Council Meeting 1505 Tiburon Boulevard July 7, 2010. Tiburon CA 94920 Agenda Item: r CC041 To: Mayor and Members of the Town Council From: Administrative Services Department Subject: Recommendation to Adopt Resolution Authorizing the Purchase of the $750,000 Town of Fairfax Tax and Revenue Anticipation Note (TRAN). Reviewed By: BACKGROUND At their regular meeting of June 2, 2010, the Town Council, on a 3-1 vote (Councilmember O'Donnell dissenting), directed Staff to bring forward on the Consent Calendar the enabling documentation to purchase a $750,000 Town of Fairfax Tax Revenue Anticipation Note. ANALYSIS The exhibit Resolution authorizes the purchase of two short-term notes totaling $750,000. The first note (Note A) will be in the principal amount of $250,000 and will mature on or before December 22, 2010, and the second note (Note B) having a principal amount of $500,000 and maturing on or before April 20, 2011. Both notes will carry a 4% annual interest rate. Note A shall be secured by Fairfax's December 2010 property tax receipts and Note B by their April 2011 property tax receipts. As is the past purchase of Fairfax TRANS, The Town of Fairfax will irrevocably direct the Marin County Treasurer-Tax Collector to place their collateral property tax receipts into a special escrow account with the Bank of America. The Bank of America will be irrevocably directed to first transfer the Town's principal and interest payments from the property tax receipts and any remaining funds will then be transferred to Fairfax. FINANCIAL IMPACT The Town will realize approximately $15,000 more in investment earnings by investing in the Town of Fairfax TRANs as opposed to investing in the Local Agency Investment Fund. RECOMMENDATION Staff recommends that the Town Council: 1. Move to approve the draft Resolution authorizing the purchase of $750,000 of Town of Fairfax 2010 Tax and Revenue Anticipation Notes. Exhibits: Draft Resolution Prepared By: Peggy Curran, Town Manager rOWN OF TIBURON PAGE 1 OF 1 Quint & Thimmig LLP TOWN OF TIBURON RESOLUTION NO. RESOLUTION AUTHORIZING THE PURCHASE OF $750,000 OF TOWN OF FAIRFAX (MARIN COUNTY, CALIFORNIA) 2010 TAX AND REVENUE ANTICIPATION NOTE RESOLVED, by the Town Council of the Town of Tiburon (the "Town") 06/14/10 WHEREAS, the Town of Fairfax ("Fairfax") has found and determined that moneys are needed for the requirements of Fairfax to satisfy obligations payable from the general fund of Fairfax and that it is necessary that said sum be borrowed for such purpose at this time by the issuance of temporary notes therefor in anticipation of the receipt of taxes, revenue and other moneys to be received by Fairfax for its general fund during or allocable to the fiscal year of Fairfax beginning July 1, 2010, and ending June 30, 2011; WHEREAS, the Town has agreed to purchase two short-term notes of Fairfax on a private placement basis, one maturing on or before December 22, 2010, in an amount equal to $250,000 (the "Series A Note"), and one maturing on or before April 20, 2011, in an amount equal to $500,000 (the "Series B Note" and, with the Series A Note, the "Notes"), and the Town desires to authorize the purchase of the Notes; WHEREAS, the Series A Note will be issued by Fairfax, will be payable at the rate of 4% per annum and will be secured pursuant to a resolution adopted by the Town Council of Fairfax, substantially in the form attached hereto as Exhibit A (the "Fairfax Resolution"), specifically providing that the payment of the principal of the Series A Note and the interest thereon will be made by Fairfax from the property tax revenues to be paid to Fairfax in December 2010, and that the Marin County Treasurer-Tax Collector (the "Treasurer") will be irrevocably directed to transfer such principal and interest to a special escrow account at Bank of America in Fairfax, California (the "Escrow Bank"), all property tax revenues owed to Fairfax in December 2010, and the Escrow Bank will be irrevocably directed to transfer to the Town on the maturity date of the Series A Note, the total principal amount of the Series A Note, plus interest accrued thereon to such date, and the Escrow Bank will be directed to transfer the remaining amounts of property tax revenues to Fairfax only after the Town shall have been paid in full with respect to the Series A Note; and WHEREAS, the Series B Note will be issued by Fairfax, will be payable at the rate of 4% per annum and will be secured pursuant to the Fairfax Resolution, specifically providing that the payment of the principal of the Series B Note and the interest thereon will be made by Fairfax from the property tax revenues to be paid to Fairfax in April, 2011, and that the Treasurer will be irrevocably directed to transfer such principal and interest to a special escrow account at the Escrow Bank, all property tax revenues owed to Fairfax in April , 2011, and the Escrow Bank will be irrevocably directed to transfer to the Town on the maturity date of the Series B Note, the total principal amount of the Series B Note, plus interest accrued thereon to such date, and the Escrow Bank will be directed to transfer the remaining amounts of property tax revenues to Fairfax only after the Town shall have been paid in full with respect to the Series B Note; NOW THEREFORE, it is hereby DETERMINED AND ORDERED as follows: Section 1. Purchase of Notes. The Town hereby agrees to purchase the Notes from Fairfax at a purchase price equal to the principal amount thereof. The Mayor, the Town Manager and the Finance Director are each hereby individually authorized and directed, for and in the name and on behalf of the Town, to purchase the Notes from Fairfax and to execute and deliver a Note Purchase Agreement for each series in the form thereof attached hereto as Exhibit B, together with any additions thereto or changes therein deemed necessary or advisable by the Mayor, the Town Manager or the Finance Director, subject to the terms and conditions of the Note Purchase Agreement for each series. Approval of any additions or changes in such form of Note Purchase Agreement and compliance with the conditions precedent to the execution of the Note Purchase Agreement by the Mayor, the Town Manager or the Finance Director shall be conclusively evidenced by execution and delivery of the Note Purchase Agreement for each series. Section 2. Effective Date. This Resolution shall take effect upon its adoption by this Council. Passed, approved and adopted this 7th day of July, 2010. ATTEST: Mayor of the Town of Tiburon Town Clerk I, the undersigned Town Clerk of the Town of Tiburon, hereby certify that the foregoing is a full, true and correct copy of a resolution duly adopted by the Town Council of the Town at a meeting thereof on the 7th day of July, 2010 by the following vote of the members thereof: AYES: NOES: ABSTAIN: ABSENT: Town Clerk -2- EXHIBIT A FORM OF RESOLUTION TO BE ADOPTED BY FAIRFAX [TO BE ATTACHED] Exhibit A Page 1 EXHIBIT B FORM NOTE PURCHASE AGREEMENT [TO BE ATTACHED] Exhibit B Page 1 EXHIBIT A FORM OF NOTE TOWN OF FAIRFAX (Marin County, California) 2010 TAX AND REVENUE ANTICIPATION NOTE, SERIES INTEREST RATE: MATURITY DATE: ISSUE DATE: 4% 1 :::]L , 2010 REGISTERED OWNER: PRINCIPAL SUM: DOLLARS The TOWN OF FAIRFAX, Marin County, State of California (the "Town"), acknowledges itself indebted, and promises to pay, to the Registered Owner stated above (the "Owner"), on the Maturity Date stated above, the Principal Sum stated above, in lawful money of the United States of America, and to pay interest hereon in like lawful money at the rate per annum stated above, calculated on the basis of 360-day year composed of twelve 30-day months. The principal of and interest on this Note shall be payable at maturity to the Owner. It is hereby certified, recited and declared that this Note, in the aggregate principal amount of dollars issued pursuant to the provisions of a resolution of the Town Council of the Town entitled "A RESOLUTION PROVIDING FOR THE BORROWING OF FUNDS FOR FISCAL YEAR 2010-2011 AND THE ISSUANCE AND SALE OF 2010 TAX AND REVENUE ANTICIPATION NOTES THEREFOR," duly passed and adopted on July 7, 2010 (the "Resolution"), and pursuant to Article 7.6 (commencing with section 53850) of Chapter 4, Part 1, Division 2, Title 5, of the California Government Code, and that all things, conditions and acts required to exist, happen and be performed precedent to and in the issuance of this Note exist, have happened and have been performed in regular and due time, form and manner as required by law, and that this Note, together with all other indebtedness and obligations of the Town, does not exceed any limit prescribed by the constitution or statutes of the State of California. The principal amount of this Note, together with the interest hereon, shall be payable from taxes, revenue and other moneys which are received by the Town for the Fiscal Year 2010- 2011, and specifically with respect to the property tax revenue to be received by the Town in . As security for the payment of the principal of and interest on this Note, the Town, has pledged all property tax revenues receivable by the Town in (such pledged amounts being hereinafter called the "Pledged Revenues"). The principal of this Note and the interest hereon shall constitute a first lien and charge thereon and shall be paid from the Pledged Revenues. To the extent not so paid from the Pledged Revenues, this Note shall be paid from any other moneys of the Town lawfully available therefor. In the event that there are insufficient unrestricted moneys received by the Town to permit the repayment of this Note from such property tax revenues, then the amount of any deficiency shall be satisfied and made up from any other moneys of the Town lawfully available for the repayment of this Note and interest hereon. The Town has irrevocably directed the Marin County Treasurer-Tax Collector to transfer to a special escrow account at Bank of America in Fairfax, California (the "Escrow Exhibit A Page 1 Bank"), all property tax revenues owed to the Town in , and the Escrow Bank has been irrevocably directed to transfer to the Owner, on the maturity date of the Note, the total principal amount of the Note, plus interest accrued thereon to such date. The Escrow Bank has been directed to transfer the remaining amounts of property tax revenues to the Town only after the Owner shall have been paid in full. This Note is issuable as a registered note, without coupons, in the total principal amount thereof. this Note is not subject to exchange or transfer. The Town may treat the Owner hereof as the absolute owner hereof for all purposes, and the Town shall not be affected by any notice to the contrary. IN WITNESS WHEREOF, the Town of Fairfax has caused this Note to be issued in the name of the Town and to be executed by the manual signature of the Mayor and countersigned by the facsimile signature of the Town Clerk, all as of the Issue Date stated above. TOWN OF FAIRFAX Countersigned: By Mayor Town Clerk Exhibit A Page 2 EXHIBIT B FORM NOTE PURCHASE AGREEMENT [TO BE ATTACHED] Exhibit B Page 1 Quint & Thimmig LLP TOWN OF FAIRFAX (Marin County, California) 2010 TAX AND REVENUE ANTICIPATION NOTES, SERIES 06/14/10 NOTE PURCHASE AGREEMENT /2010 Town Council Town of Fairfax 142 Bolinas Road Fairfax, California 94930 Councilmembers: The undersigned (the "Purchaser") offers to enter into this agreement with the Town of Fairfax (the "Town"), which, upon your acceptance hereof, will be binding upon the Town and the Purchaser. This offer is made subject to the acceptance of the Note Purchase Agreement by the Town and written delivery of such acceptance to the Purchaser at or prior to 11:59 P.M., Pacific Time, on the date hereof. 1. Purchase and Sale of the Note. Upon the terms and conditions and in reliance upon the representations, warranties and agreements herein set forth, the Purchaser hereby agrees to purchase from the Town, and the Town hereby agrees to sell to the Purchaser for such purpose, the Town's $ 2010 Tax and Revenue Anticipation Note, Series (the "Note"). The Note shall be dated , 2010, shall bear interest at a rate of % per annum, and shall mature on (or such earlier date as moneys for the prepayment of the Note shall be available to the Town). The purchase price to be paid by the Purchaser for the Note shall be $ , representing the principal amount of the Note. 2. The Note. The Note shall be described in, and shall be issued and secured pursuant to the provisions of the Resolution of the Town Council of the Town, adopted July 7, 2010 (the "Resolution"), and Article 7.6, Chapter 4, Part 1, Division 2, Title 5 (commencing with section 53850) of the California Government Code (the "Act"). 3. Private Placement; Note Constitutes Investment of the Purchaser; No Transfer or Exchange. (a) The Purchaser has sufficient knowledge and experience in financial and business matters, including purchase and ownership of obligations of a nature similar to the Note to be able to evaluate the risks and merits of the investment represented by the purchase of the Note. (b) The Purchaser is acquiring the Note for its own account and not with a view to, or for sale in connection with, any distribution of the Note or any part thereof. The Purchaser has not offered to sell, solicited offers to buy, or agreed to sell the Note or any part thereof, and the Purchaser has no intention of reselling or otherwise disposing of the Note. (c) The Purchaser acknowledges that the Note is not assignable, exchangeable or transferable. (d) The Purchaser has made its own credit inquiry and analysis with respect to the Town and the Note and has made an independent credit decision based upon such inquiry and analysis. The Town has furnished to the Purchaser all the information which the Purchaser, as a reasonable investor, has requested of the Town as a result of the Purchaser having attached significance thereto in making its investment decision with respect to the Note, and the Purchaser has had the opportunity to ask questions of and receive answers from knowledgeable individuals concerning the Town and the Note. The Purchaser is able and willing to bear the economic risk of the purchase and ownership of the Note. (e) The Purchaser understands that the Note has not been registered with any federal or state securities agency or commission. 4. Cll. At 9:00 A.M., Pacific Time, on , 2010, or such other time or such other date as shall have been mutually agreed upon by the Town and the Purchaser (the "Closing"), the Town will deliver to the Purchaser, the Note in definitive form, duly executed, together with other documents hereinafter mentioned; and the Purchaser will accept such delivery and pay the purchase price thereof in immediately available funds to the Town. The Note will be issued in the form of a single fully registered note, registered in the name of the Purchaser. The Town has irrevocably directed the Marin County Treasurer-Tax Collector to transfer to a special escrow account at Bank of America in Fairfax, California (the "Escrow Bank"), all property tax revenues owed to the Town in , and the Escrow Bank has been irrevocably directed to transfer to the Owner, on the maturity date of the Note, the total principal amount of the Note, plus interest accrued thereon to such date. The Escrow Bank has been directed to transfer the remaining amounts of property tax revenues to the Town only after the Owner shall have been paid in full 5. Representations, Warranties and Agreements of the Town. The Town hereby represents, warrants and agrees with the Purchaser that: (a) The Town is a municipal corporation and general law city organized and validly existing under the laws of the State of California, with the power to issue the Note pursuant to the Act. (b) At or prior to the Closing, (i) the Town will have taken all action required to be taken by it to authorize the issuance and delivery of the Note; (ii) the Town has full legal right, power and authority to enter into this Note Purchase Agreement and to adopt the Resolution, and the Town has full legal right, power and authority to perform its obligations under each such document or instrument, and to carry out and effectuate the transaction contemplated by this Note Purchase Agreement and the Resolution; (iii) the execution and delivery or adoption of, and the performance by the Town of the obligations contained in the Note, the Resolution and this Note Purchase Agreement have been duly authorized and such authorization shall be in full force and effect at the time of the Closing; (iv) this Note Purchase Agreement constitutes a valid and legally binding obligation of the Town; and (v) the Town has authorized the consummation by it of all transactions contemplated by this Note Purchase Agreement. -2- (c) No consent, approval, authorization, order, filing, registration, qualification, election or referendum, of or by any person, organization, court or government agency or public body whatsoever is required in connection with the issuance, delivery or sale of the Note or the consummation of the other transactions effected or contemplated herein or hereby. (d) The issuance of the Note, the execution, delivery and performance of this Note Purchase Agreement, the Resolution and the Note, and compliance with the provisions hereof do not conflict with or constitute on the part of the Town a violation of or default under, the Constitution of the State of California or any other existing law, charter, ordinance, regulation, decree order or resolution and do not conflict with or result in a violation or breach of, or constitute a default under, any agreement, indenture, mortgage, lease or other instrument to which the Town is a party or by which it is bound or to which it is subject. (e) To the best of the Town's knowledge, no action, suit, proceeding, hearing or investigation is pending or threatened against the Town: (i) in any way affecting the existence of the Town or in any way challenging the respective powers of the several offices of the titles of the officials of the Town to such offices; or (ii) seek to restrain or enjoin the sale, issuance or delivery of the Note, the application of the proceeds of the sale of the Note, or the collection of the revenue or assets of the Town pledged, assigned or available to pay the principal and interest on the Note, or the pledge or assignment thereof, or in any way contesting or affecting the validity or enforceability of the Note, this Note Purchase Agreement or the Resolution or contesting the powers of the Town or its authority with respect to the Note, the Resolution or this Note Purchase Agreement; or (iii) in which a final adverse decision could (a) materially adversely affect the operations of the Town or the consummation of the transactions contemplated by this Note Purchase Agreement and the Resolution, or (b) declare this Note Purchase Agreement to be invalid or unenforceable in whole or in material part. (f) Between the date hereof and the date of the Closing, the Town has not, without prior written consent of the Purchaser, borrowed any additional moneys. (g) Between the date of the Closing and the maturity date of the Note, the Town will not, without prior written consent of the Purchaser, borrow any additional moneys secured by the same source of funds for the security of the Note. (h) Any certificates signed by any officer of the Town and delivered to the Purchaser shall be deemed a representation and warranty by the Town, as the case may be, to the Purchaser as to the statements made therein but not of the person signing the same. 6. Conditions to Closing. The Purchaser has entered into this Note Purchase Agreement in reliance upon the representations and warranties of the Town contained herein and the performance by the Town of its obligations hereunder, both as of the date hereof and as of the date of Closing. The Purchaser's obligations under this Note Purchase Agreement are and shall be subject, at the option of the Purchaser, to the following further conditions at the Closing: (a) The representations and warranties of the Town contained herein shall be true, complete and correct in all material respects as of the date hereof and as of the date of Closing, as if made at and as of the Closing, and the statements made in all certificates and other documents delivered to the Purchaser at the Closing pursuant hereto shall be true, complete and correct in all material respects on the date of the Closing; and the Town shall be in compliance with each of the agreements made by it in this Note Purchase Agreement. (b) At the time of the Closing, (i) this Note Purchase Agreement and the Resolution shall be in full force and effect and shall not have been amended, modified or supplemented except as may have been agreed to in writing by the Purchaser; (ii) all actions under the Act which, in -3- the opinion of the firm of Quint & Thimmig LLP, bond counsel ("Bond Counsel"), shall be necessary in connection with the transactions contemplated hereby, shall have been duly taken and shall be in full force and effect; and, (iii) the Town shall perform or have performed all of their obligations required under or specified in the Resolution or the Note Purchase Agreement to be performed at or prior to the Closing. (c) No decision, ruling or finding shall have been entered by any court or governmental authority since the date of this Note Purchase Agreement (and not reversed on appeal or otherwise set aside), or to the best knowledge of the Town, pending or threatened. (d) No order, decree or injunction of any court of competent jurisdiction, nor any order, ruling or regulation of the Securities and Exchange Commission, shall have been issued or made with the purpose or effect of prohibiting the issuance, offering or sale of the Note as contemplated hereby and no legislation shall have enacted, or a bill favorably reported for adoption, or a decision by a court established under Article III of the Constitution of the United States rendered, or a ruling, regulation, proposed regulation or official statement by or on behalf of the Securities and Exchange Commission or other governmental agency having jurisdiction of the subject matter shall be made or issued, to the effect that the Note or any securities of the Town or of any similar body of the type contemplated herein are not exempt from the registration, qualification or other requirements of the Securities Act of 1933, as amended and as then in effect, or the Trustee Indenture Act of 1939, as amended and as then in effect. (e) At or prior to the date of the Closing, the Purchaser shall receive one copy of the following documents in each case dated as of the Closing Date and satisfactory in form and substance to the Purchaser: (1) An approving opinion of Bond Counsel, as to the Note, addressed to the Town. (2) A letter setting forth that the Purchaser can rely upon the approving opinion of Bond Counsel. (3) A certificate signed by appropriate officials of the Town to the effect that there is no action, suit, proceeding, inquiry or investigation, at law or in equity, before or by any court or public body, pending, or to his or her knowledge, threatened against the Town (but in lieu of or in conjunction with such certification the Purchaser may, at its sole discretion, accept certificates, opinions of counsel to the Town or Bond Counsel, that in their opinion the issues raised in any such pending or threatened litigation are without substance and that the contentions of all plaintiffs therein are without merit). (4) A certificate signed by appropriate officials of the Town to the effect that (i) the representation, agreements and warranties of the Town herein are true and correct in all material respects as of the date of Closing; and (ii) the Town has complied with all the terms of the Resolution and this Note Purchase Agreement to be complied with by the Closing and such documents are in full force and effect. (5) A certificate, together with fully executed copies of the Resolution, of the Town Clerk to the effect that (i) such copies are true and correct copies of the Resolution; and (ii) that the Resolution was duly adopted and has not been modified, amended, rescinded or revoked and is in full force and effect on the date of the Closing. (6) Such additional legal opinion, certificates, proceedings, instruments and other documents as the Purchaser may reasonably request to evidence compliance (i) by the -4- Town with legal requirements; (ii) the truth and accuracy, as of the time of Closing, of the representations of the Town herein contained; and, (iii) the due performance or satisfaction by the Town at or prior to such time of all agreements then to be performed and all conditions then to be satisfied by the Town. If the Town shall be unable to reasonably satisfy the conditions requested by the Purchaser to evidence compliance with the terms and conditions set forth in this Note Purchase Agreement, the Purchaser's obligations for the purchase of the Note shall be terminated for any reason permitted by this Note Purchase Agreement, and this Note Purchase Agreement may be canceled by the Purchaser at, or at any time prior to, the time of Closing. Notice of such cancellation shall be given to the Town in writing, or by telephone or telegraph confirmed in writing. Notwithstanding any provision herein to the contrary, the performance and any and all obligations of the Town hereunder and the performance of any and all conditions contained herein for the benefit of the Purchaser may be waived by the Purchaser in writing at its sole discretion. 7. Conditions to Obligations of the Town. The performance by the Town of its obligations is conditioned upon (i) the performance by the Purchaser of its obligations hereunder; and (ii) receipt by the Town and the Purchaser of opinions and certificates being delivered at the Closing by persons and entities other than the Town. 8. Expenses. The Town shall pay the expenses incident to the performance of its obligations hereunder from the proceeds of the Note (or from any other source of available funds of the Town) which expenses include and are limited to: (i) the cost of the preparation and reproduction of the Resolution; (ii) the fees and disbursements of Bond Counsel, (iii) the fees and expenses of Wulff, Hansen & Co., as financial advisor to the Town in connection with the issuance of the Note, (iv) the fees and disbursements of any other advisors or consultants retained by the Town in connection with the issuance of the Note, and (v) any other fees and expenses required in connection with the issuance of the Note. All costs or expenses incurred by the Purchaser as a result of nonpayment or other default by the Town shall be borne by the Town including, without limitation, attorneys fees. All other costs and expenses incurred by the Purchaser as a result of or in connection with the purchase of the Note shall be borne by the Purchaser. 9. Notices. Any notice or other communication to be given under this Note Purchase Agreement (other than the acceptance hereof as specified in the first paragraph hereof) may be given by delivering the same in writing if to the Town, to the Finance Director, Town of Fairfax,142 Bolinas Road, Fairfax, CA 94930, or if to the Purchaser to the , 10. Parties in Interest; Survival of Representations and Warranties. This Note Purchase Agreement when accepted by the Town in writing as heretofore specified shall constitute the entire agreement between the Town and the Purchaser. This Note Purchase Agreement is made solely for the benefit of the Town and the Purchaser (including the successors or assigns of the Purchaser). No person shall acquire or have any rights hereunder or by virtue hereof. All the representations, warranties and agreements of the Town in this Note Purchase Agreement shall survive regardless of (a) any investigation or any statement in respect thereof made by or on behalf of the Purchaser, (b) delivery of and payment by the Purchaser for the Note hereunder, and (c) any termination of this Note Purchase Agreement. -5- 11. Execution in Counterparts. This Note Purchase Agreement may be executed in several counterparts each of which shall be regarded as an original of all of which shall constitute one and the same document. 12. Applicable Law. This Note Purchase Agreement shall be interpreted, governed and enforced in accordance with the law of the State of California. Very truly yours, The foregoing is hereby agreed to and accepted as of the date first written above: as Purchaser By Name Title TOWN OF FAIRFAX By Finance Director -6- Quint & Thimmig LLP TOWN OF FAIRFAX RESOLUTION NO. RESOLUTION PROVIDING FOR THE BORROWING OF FUNDS FOR FISCAL YEAR 2010-2011 AND THE ISSUANCE AND SALE OF 2010 TAX AND REVENUE ANTICIPATION NOTES THEREFOR RESOLVED, by the Town Council of the Town of Fairfax (the "Town") 06/14/10 WHEREAS, pursuant to Article 7.6 (commencing with section 53850) of Chapter 4 of Part 1 of Division 2 of Title 5 of the California Government Code (the "Law"), this Town Council (the "Council") has found and determined that moneys are needed for the requirements of the Town, a public body duly organized and existing under the laws of the State of California, to satisfy obligations payable from the general fund of the Town (the "General Fund"), and that it is necessary that said sum be borrowed for such purpose at this time by the issuance of temporary notes therefor in anticipation of the receipt of taxes, revenue and other moneys to be received by the Town for the General Fund during or allocable to the fiscal year of the Town beginning July 1, 2010, and ending June 30, 2011 ("Fiscal Year 2010- 2011f/ WHEREAS, the Town desires to authorize the issuance and sale of such short-term notes to one or more private placement purchasers; and WHEREAS, a form of note purchase agreement (the "Note Purchase Agreement") has been prepared relating to the sale of such short-term notes; NOW THEREFORE, it is hereby DETERMINED AND ORDERED as follows: Section 1. Limitation on Maximum Amount. The principal amount of the note issued pursuant hereto, when added to the interest payable thereon, shall not exceed eighty-five percent (85%) of the estimated amount of the uncollected taxes, revenue and other moneys of the Town for the General Fund attributable to Fiscal Year 2010-2011, and available for the payment of said note and the interest thereon (as hereinafter provided). Section 2. Authorization and Terms of Note. Solely for the purpose of anticipating taxes, revenue and other moneys to be received by the Town for the General Fund allocable to Fiscal Year 2010-2011, and specifically with respect to the property tax revenue to be received by the Town in December 2010, and April, 2011, and not pursuant to any common plan of financing, the Town hereby determines to and shall borrow the principal amount of not to exceed one million dollars ($1,000,000) by the issuance of two temporary notes under the Law, designated "Town of Fairfax (Marie County, California) 2010 Tax and Revenue Anticipation Note, Series A," in a principal amount not to exceed $500,000 (the "Series A Note"), and "Town of Fairfax (Marin County, California) 2010 Tax and Revenue Anticipation Note, Series B," in a principal amount not to exceed $500,000 (the "Series B Note" and, with the Series A Note, the "Notes"). The Series A Note shall be dated as of its date of delivery, shall mature, on or before December 221 2010, and shall bear interest, payable at maturity, and computed on a 30-day month/360-day year basis, at not to exceed 4% per annum. The Series B Note shall be dated as of its date of delivery, shall mature, on or before April 20, 2011, and shall bear interest, payable at maturity, and computed on a 30-day month/360-day year basis, at 4% per annum. Both the principal of and interest on the Notes shall be payable in lawful money of the United States of America, as described below. Section 3. Form of Note. The Notes shall be issued in fully registered form, without coupons, and shall be substantially in the form and substance set forth in Exhibit A attached hereto and by reference incorporated herein. The Notes shall be issued in fully registered form, registered to the private placement purchaser or purchasers thereof. Section 4. Use of Proceeds. The moneys so borrowed shall be deposited in a segregated account in the General Fund to be withdrawn, used and expended by the Town for any purpose for which it is authorized to expend funds from the General Fund including, but not limited to, current expenses, capital expenditures and the discharge of any obligation or indebtedness of the Town. Section 5. Secy. The principal amount of the Note, together with the interest thereon, shall be payable from taxes, revenue and other moneys which are received by the Town allocable to the General Fund for the Fiscal Year 2010-2011. As security for the payment of the principal of and interest on the Series A Note, the Town, hereby pledges all property tax revenues receivable by the Town in December 2010 (such pledged amounts being hereinafter called the "Series A Pledged Revenues"). Pursuant to section 5451 of the California Government Code, the Series A Pledged Revenues shall immediately be subject to the pledge, and the pledge shall constitute a lien and security interest which shall immediately attach to the Series A Pledged Revenues and be effective, binding, and enforceable against the Town, its successors, purchasers of the Series A Pledged Revenues, creditors, and all others asserting the rights therein, to the extent set forth, and in accordance with, this Resolution irrespective of whether those parties have notice of the pledge and without the need for any physical delivery, recordation, filing, or further act. No prior pledge of such revenues has been made by the Town to secure any other borrowing and no such pledge will be made prior to the full payment of the Series A Note. To the extent not so paid from the Series A Pledged Revenues, the Series A Note shall be paid from any other moneys of the Town lawfully available therefor. In the event that there are insufficient unrestricted moneys received by the Town to permit the repayment of the Series A Note from such property tax revenues, then the amount of any deficiency shall be satisfied and made up from any other moneys of the Town lawfully available for the repayment of the Series A Note and interest thereon. As security for the payment of the principal of and interest on the Series B Note, the Town, hereby pledges all property tax revenues receivable by the Town in April, 2011 (such pledged amounts being hereinafter called the "Series B Pledged Revenues"). Pursuant to section 5451 of the California Government Code, the Series B Pledged Revenues shall immediately be subject to the pledge, and the pledge shall constitute a lien and security interest which shall immediately attach to the Series B Pledged Revenues and be effective, binding, and enforceable against the Town, its successors, purchasers of the Series B Pledged Revenues, creditors, and all others asserting the rights therein, to the extent set forth, and in accordance with, this Resolution irrespective of whether those parties have notice of the pledge and without the need for any physical delivery, recordation, filing, or further act. No prior pledge of such revenues has been made by the Town to secure any other borrowing and no such pledge will be made prior to the full payment of the Series B Note. To the extent not so paid from the Series B Pledged Revenues, the Series B Note shall be paid from any other moneys of the Town lawfully available therefor. In the event that there are insufficient unrestricted moneys received by the Town to permit the repayment of the Series B Note from such property tax revenues, then the amount of any deficiency shall be satisfied and made up from any other moneys of the Town lawfully available for the repayment of the Series B Note and interest thereon. -2- Section 6. Repayment. The Town will irrevocably direct the Marin County Treasurer-Tax Collector to transfer to a special escrow account at Bank of America in Fairfax, California (the "Escrow Bank"), all property tax revenues owed to the Town in December 2010, and the Escrow Bank will be irrevocably directed to transfer to the purchaser of the Series A Note, on the maturity date of the Series A Note, the total principal amount of the Series A Note, plus interest accrued thereon to such date. The Escrow Bank will be directed to transfer the remaining amounts of property tax revenues to the Town only after the purchaser of the Series A Note shall have been paid in full. The Town will irrevocably direct the Marin County Treasurer-Tax Collector to transfer to a special escrow account at Bank of America in Fairfax, California (the "Escrow Bank"), all property tax revenues owed to the Town in April, 2011, and the Escrow Bank will be irrevocably directed to transfer to the purchaser of the Series B Note, on the maturity date of the Series B Note, the total principal amount of the Series B Note, plus interest accrued thereon to such date. The Escrow Bank will be directed to transfer the remaining amounts of property tax revenues to the Town only after the purchaser of the Series B Note shall have been paid in full. Section 7. Execution of Notes. The Notes shall be executed in the name of the Town, with the manual or facsimile signature of the Mayor, the Town Manager or the Finance Director and the manual or facsimile counter-signature of the Town Clerk (although at least one of such signatures shall be manual), and said officers are hereby authorized to cause the blank spaces thereof to be filled in as may be appropriate. Section 8. No Transfer or Exchange of Notes. The Notes are not subject to transfer or exchange. Section 9. Covenants and Warranties. It is hereby covenanted and warranted by the Town that all representations and recitals contained in this Resolution are true and correct, and that the Town has reviewed all proceedings heretofore taken relative to the authorization of the Notes and has found, as a result of such review, and hereby finds and determines that all acts, conditions and things required by law to exist, happen and be performed precedent to and in the issuance of the Notes have existed, happened and been performed in due time, form and manner as required by law, and the Town is duly authorized to issue the Notes and incur indebtedness in the manner and upon the terms provided in this Resolution. The Town has duly taken all proceedings necessary to be taken, and will take any additional proceedings necessary to be taken, for the prompt collection and enforcement of the taxes, revenue, cash receipts and other moneys pledged hereunder in accordance with law and for carrying out the provisions of this Resolution. Section 10. Sale of Notes. The Note shall be sold to the private placement purchaser or purchasers identified by the Finance Director, at a purchase price equal to the principal amount thereof. The Mayor, the Town Manager and the Finance Director are each hereby individually authorized and directed, for and in the name and on behalf of the Town, to sell the Notes to such private placement purchaser or purchasers and to execute and deliver a Note Purchase Agreement for each series of Notes in the form attached hereto as Exhibit B, together with any additions thereto or changes therein deemed necessary or advisable by the Mayor, the Town Manager or the Finance Director, subject to the terms and conditions of the Note Purchase Agreement for each series. Approval of any additions or changes in such form of Note Purchase Agreement and compliance with the conditions precedent to the execution of the Note Purchase Agreement by the Mayor, the Town Manager or the Finance Director shall be conclusively evidenced by execution and delivery of the Note Purchase Agreement for each series. Section 11. Preparation of the Note; Execution of Closing Documents. Quint & Thimmig LLP, as bond counsel to the Town, is directed to cause suitable Notes to be prepared showing on their face that the same bears interest at the rate aforesaid, and to cause the blank spaces -3- therein to be filled in to comply with the provisions of this Resolution in accordance with the Note Purchase Agreement for the applicable series, and to procure their execution by the proper officers, and to cause the Notes to be delivered when so executed to the private placement purchaser or purchasers therefor upon the receipt of the purchase price by the Town, in accordance with the Note Purchase Agreement for the applicable series. The Mayor, the Town Manager and the Finance Director, or any of them, are further authorized and directed to make, execute and deliver to each private placement purchaser of the Notes (a) a certificate in the form customarily required by purchasers of bonds of public corporations generally, certifying to the genuineness and due execution of the Notes, and (b) a receipt in similar form evidencing the payment of the purchase price of the Notes which receipt shall be conclusive evidence that said purchase price of the Notes has been paid and has been received on behalf of the Town. Such officers and any other officers of the Town are hereby authorized to execute any and all other documents required to consummate the sale and delivery of the Notes. Section 12. Retention of Consultants. (a) The Town hereby retains the firm of Quint & Thimmig LLP, San Francisco, California, as bond counsel to the Town for the Notes. The Mayor, the Town Manager and the Finance Director, or any of them, are further authorized and directed to execute an agreement for legal services with such firm if a written contract is deemed necessary. (b) The Town hereby retains the firm of Wulff, Hansen & Co., San Francisco, California, as financial advisor to the Town for the Notes. The Mayor, the Town Manager and the Finance Director, or any of them, are further authorized and directed to execute an agreement for financial advisory services with such firm if a written contract is deemed necessary. Section 13. Effective Date. This Resolution shall take effect upon its adoption by this Council. Passed, approved and adopted this 7th day of July, 2010. ATTEST: Mayor of the Town of Fairfax Town Clerk -4- I, the undersigned Town Clerk of the Town of Fairfax, hereby certify that the foregoing is a full, true and correct copy of a resolution duly adopted by the Town Council of the Town at a meeting thereof on the 7th day of July, 2010, by the following vote of the members thereof: AYES: NOES: ABSTAIN: ABSENT: Town Clerk -5- T TOWN OF TIBURON Town Council Meeting 1505 Tiburon Boulevard July 7th, 2010 Tiburon, CA 94920 Agenda Item: • r To: Mayor and Members of the Town Council From: Department of Public Works Subject: Recommendation to Accept the Safe Routes To School - Del Mar Middle School Project (Federal Project No. SRTSL 5388-006), And Authorize The Filing Of The Notice Of Completion For The Work Reviewed By: AJI~ BACKGROUND On June 17, 2009, the Council authorized staff to advertise and seek bids for the construction of the Safe Routes To School - Del Mar Middle School Project (SRTS). The project was posted and advertised as required by the State of California's Public Contract Code. The contract was awarded to G.D. Nielson on November 4, 2009 in the amount not-to-exceed $179,495. Work consisted of crosswalk repairs, re-striping, ADA curb ramp improvements, and sidewalk widening. The work was substantially completed on June 2, 2010. The completed work included three change orders for unforeseen items of work in the total amount of $11,606. Based on the work performed, material installed, and total change orders, the final construction project cost is $171,633, delivering the construction project under the awarded budget. A federal Safe Route to School grant is providing up to $352,165 towards the project, including engineering and construction management services. Sufficient funds have been programmed in the FY 2009-10 year to cover project costs prior to reimbursement. RECOMMENDATION Staff recommends that the Town Council: Move to adopt a resolution accepting this project as complete and authorizing the Director of Public Works / Town Engineer to execute the Notice of Completion on behalf of the Town Council, and upon completion of the 35 day period, release the retention funds to the contractor. Exhibits: Resolution Accepting the Safe Routes To School - Del Mar Middle School Project (Federal Project No. SRTSL 5388-006), And Authorizing The Filing Of The Notice Of Completion For The Work. Prepared By: Nicholas T. Nguyen, Director of Public Works/Town Engineer RESOLUTION NO. -2010 A RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF TIBURON ACCEPTING THE SAFE ROUTES TO SCHOOL - DEL MAR MIDDLE SCHOOL PROJECT (FEDERAL PROJECT NO. SRTSL 5388-006), AND AUTHORIZING THE FILING OF THE NOTICE OF COMPLETION FOR THE WORK WHEREAS, The Town Council budgeted funds in Fiscal Year 2009-2010 to complete the project; WHEREAS, G.D. Nielson, Inc. was awarded the contract on November 4, 2009 to perform the work; WHEREAS, The construction of the project was substantially completed under budget on June 2, 2010; and WHEREAS, The final construction cost, including payment of total quantities installed, is $171,633. NOW, THEREFORE, BE IT RESOLVED by the Town Council of the Town of Tiburon as follows: Section 1. The Town Council does hereby accept the construction of the Safe Routes To School - Del Mar Middle School Project (Federal Project No. SRTSL 5388-006) as complete by G.D. Nielson, Inc. Section 2. The Town Council authorizes the Director of Public Works / Town Engineer to execute the Notice of Completion and the Town Clerk to record the Notice of Completion. Section 3. The Town Council authorizes the Director of Public Works / Town Engineer to release the retention payment 35 days after the recordation date of the Notice of Completion, pending release of any stop notices or Town claims. PASSED AND ADOPTED at a regular meeting of the Town Council on the 7t" day of July, 2010, by the following vote, to wit: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: 1/2 ATTEST: DIANE CRANE IACOPI, TOWN CLERK RICHARD COLLINS, MAYOR TOWN OF TIBURON 2/2 When recorded mail to: Town of Tiburon Diane Crane Iacopi, Town Clerk 1505 Tiburon Blvd Tiburon, CA 94920 SPACE ABOVE THIS LINE FOR RECORDER'S USE Town of Tiburon NOTICE OF COMPLETION OF IMPROVEMENT TO ALL PERSONS WHOM IT MAY CONCERN: NOTICE IS HEREBY GIVEN for and on behalf of the Town of Tiburon, County of Marin, State of California, that there has been a cessation of labor upon the work or improvement and that said work or improvement was completed upon the 2"d day of June, 2010, and accepted the 7`" day of July, 2010; that the name, address and nature of the title of the party giving this notice is as follows: The Town of Tiburon, a municipal corporation, in the County of Marin, State of California, within the boundaries of which said work or improvement was made upon land owned by said Town and/or over which said Town has an easement; that said work or improvement is described as follows: Safe Routes To School - Del Mar Middle School Project (Federal Project No. SRTSL 5388-006) and reference is hereby made for a further description thereof to the contract approved for said work or improvements now on file in the office of the Town Clerk of said Town, and said contract is hereby incorporated herein by reference thereto; and that the name of the Contractor who contracted to perform said work and make such improvement is G.D. Nielson. Inc. I declare under penalty of perjury that the foregoing is true and correct. Executed at Tiburon, California, on , 20 TOWN OF TIBURON A Municipal Corporation By: Nicholas T. Nguyen, P.E. Director of Public Works / Town Engineer 1/2 STATE OF CALIFORNIA COUNTY OF MARIN On this day of , 20 , before me, DIANE CRANE IACOPI, Notary Public, personally appeared Nicholas T. Nguyen, personally known to me (or proved to me on the basis of satisfactory evidence) to be the person (s) whose name (s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity (ies), and that by his/her/their signature (s) on the instrument the person (s), or the entity upon behalf of which the person (s) acted, executed the instrument. I certify under penalty of perjury under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature DIANE CRANE IACOPI 2/2 TOWN OF TIBURON Town Council Meeting 1505 Tiburon Boulevard July 7, 2010 Tiburon, CA 94920 Agenda Item: To: From: Subject: Reviewed By: BACKGROUND Mayor and Members of the Town Council Department of Public Works Recommendation To Approve Plans and Specifications For The 2010 Annual Street Improvement Project and Authorize the Solicitation for Bids Plans and specifications have been prepared by CSG, engineering consultants, for the resurfacing of streets within the Town. The project is part of the adopted 2009-10 capital iXnprovement program in which funds were allocated for the engineering, construction management and construction of this project. The planned improvements include localized base repair, slurry seal, pavement grinding, asphalt overlay, re-striping, and localized drainage repair. Since there are more street segments than available funding, the project is structured to perform as much work as possible dependent on the bids received. The actual street segments that are to be resurfaced will be defined during the bid stage where detailed costs are achieved and balanced against the limited budget. Additive alternates have been programmed to supplement a list of confirmed street segment below. Confirmed street segments for resurfacing: 1. Palmer Ct 2. Beach Road 3. Lyford Dr 4. Marinero Circle 5. Blackfield Dr 6. Blackfield Dr 7. Paradise Dr 8. Hilary Dr 9. Hilary Dr 10. Taylor Rd 11. Benton Ct 12. Pine Terrace Tiburon Blvd to End Main St to Marsh Rd Round Hill to Acela Dr. All Cecilia Ave to Karen Wy Karen Wy to Reedland Woods Wy Main St to Mar West St 425 Ft. East Of Rock Hill Dr. to Rock Hill Dr. Rock Hill Dr. to Mara Vista Ct Cibrian Dr to Cul De Sac Hacienda Dr to Cul De Sac Tiburon Blvd to End 13. Virginia Dr Stewart Dr to West End 14. Paseo Mirasol Upper portion 15. Paseo Mirasol Lower portion 16. Warren Ct. Hacienda Dr to Cul De Sac Additive alternate street segments for resurfacing: 1. Washington Ct Jefferson Dr to Cul De Sac 2. Irving Ct Jefferson Dr to Cul De Sac 3. Jefferson Dr Tiburon Blvd to End 4. Stewart Dr Silverado Dr to Tenaya Dr 5. Park Place South End to Cibrian Dr. The plans and specifications have been reviewed by staff, and the project is now ready to advertise for public bid. ENVIRONMENTAL DETERMINATION Staff has preliminarily determined that the project is exempt from CEQA pursuant to Section 15301 of the CEQA Guidelines, in that the project is for the maintenance and repair of existing facilities. FISCAL IMPACT The budget for fiscal year 2010-11 allocates $730,000 towards the engineering, inspection, and construction of this project. Approximately another $150,000 will be rolled over from the unexpended budget item from fiscal year 2009-10. The Engineer's Estimate for the just the construction element of the confirmed street segments is $730,000. There will be sufficient funds programmed in this fiscal year, along with an anticipated roll-over funding from the last fiscal year, to complete the confirmed street segments. Bids are expected to be competitive, and there is a chance the programmed funding would be sufficient to resurface certain segments from the additive alternate list. Funding is available from State Proposition 1 B, Gas Tax, Traffic Congestion Relief, and Street Impact funds. RECOMMENDATION Staff recommends that the Town Council: 1) Find the project exempt from CEQA pursuant to Section 15301 of the CEQA Guidelines 2) Move to approve the plans/specifications for the 2010 Streets Improvement Project, and 3) Move to authorize the solicitation of bids. Prepared By: Nicholas T. Nguyen, Director of Public Works/Town Engineer i"J TOWN OF TIBURON 1505 Tiburon Boulevard Tiburon, CA 94920 To: From: Subject: Reviewed By: BACKGROUND Mayor and Members of the Town Council Community Development Department Town Council Meeting July 7, 2010 Agenda Item: Arwl Adoption of Updates to the Town's Standards for Secondary Dwelling Units On July 16, 2003, the Town Council adopted "Standards for Secondary Dwelling Units" to be used in review and ministerial approval of Secondary Dwelling Unit Permits. These standards were most recently amended on May 4, 2005. On March 17, 2010, the Town Council adopted Ordinance No. 519 N.S. comprehensively updating the Tiburon Zoning Ordinance (Title IV, Chapter 16 of the Tiburon Municipal Code). The updated Zoning Ordinance changed all prior code section numbers, making obsolete the references to code sections in the Standards for Secondary Dwelling Units. In addition, staff identified areas where text clarification would help clarify the meaning of the standards or their consistency with State statutes regulating secondary dwelling unit ordinances. Staff has prepared a red-lined draft (Exhibit 1) of the proposed updated standards. Text to be deleted is sldwetigh and new or amended text is double-underlined. A resolution (Exhibit 2) adopting the updated list of standards is also attached for the Town Council's consideration. ANALYSIS Staff considers the updates to be minor and non-controversial. The vast majority of revisions are simply updates to reflect recent changes to underlying documents such as the updated Zoning Ordinance and State statutes limiting municipal regulation of secondary dwelling units. Certain revisions are intended to simply clarify or amplify existing standards without changing the intent of these regulations. The updates to the Standards for Secondary Dwelling Units occur as follows: 1. Numerous references to specific Municipal Code sections have been modified to match section numbers in the new Zoning Ordinance. 2. Additional language was added to Standard No. 6 stating that the floor area limits for secondary dwelling units would not "reduce the floor area allowed below that TOWN OF TIBURON PAGE 1 OF 2 required to meet the minimum floor area required for an efficiency unit" as defined by the California Health and Safety Code. The minimum size of a unit is established in State law and the Standards would now be consistent with this requirement. 3. The phrase "including parking in setbacks" has been added to Standard No. 8 to reflect State law that requires that the parking standards for secondary dwelling units are not more restrictive than those imposed on other dwelling units throughout the jurisdiction. 4. Several changes have been made to clarify existing standards, including the following: • Language in Standard Nos. 5 and 13 regarding "new construction" has been changed to avoid confusion with language in the Zoning Ordinance (Section 16-52.020 (K)) distinguishing new construction versus remodel projects. • Other changes have been made to terms in Standard Nos. 5 (b) and 6 to achieve consistency with terms used in the updated Zoning Ordinance. • The requirement in Standard No. 10 that proposed trees "comply with provisions of' the Tiburon Tree Ordinance has been modified to state that new trees cannot be "undesirable trees" as defined in that ordinance. • The term "applicable" has been added before the references to compliance with Fire District and Water District regulations in Standard Nos. 15 and 16. RECOMMENDATION Staff recommends that the Town Council: 1. Hear any public testimony on the item; 2. Make any desired changes; 3. Adopt the draft resolution amending the Standards for Secondary Dwelling Units. EXHIBITS 1. Redlined List of Standards 2. Draft Resolution Prepared By: Daniel M. Watrous, Planning Manager S: (Administration l Town CouncihStaff Reports 120101July 7 DRAFTSISecondary Dwelling Unit Standards staff report.doc TOWN OF TIBURON PAGE 2 OF 2 REDLINED VERSION OF EXHIBIT "A" STANDARDS FOR SECONDARY DWELLING UNITS 1. The proposed Secondary Dwelling Unit would be located in one of the following residential Zones: R-1, R-1-13, RO, or RPD. 2. The proposed Secondary Dwelling Unit would be the only Secondary Dwelling Unit on the Lot. 3. The proposed Secondary Dwelling Unit would be located on a Lot with a Lot Area of not less than 10,000 square feet. 4. The proposed Secondary Dwelling Unit would be located on the same Lot on which the Owner of Record maintains his or her Principal Place of Residence. 5. The proposed Secondary Dwelling Unit, if any portion thereof constitutes new construction or an addition to an existing building (as opposed to the conversion of an existing building) New GQR;StFUGti and is not proposed as part of a project for which any other Zoning Permit is required, would: a. Not exceed a maximum Floor Area of 500 square feet. b. Conform to the minimum required setback YaFd regulations for the Zone or Planned Development in which it is located, as set forth in Article 2 of Chapter 16 of the Tiburon Municipal Code. In addition, the Primary Unit and proposed Secondary Dwelling Unit together shall would conform to the lot coverage limit and floor area ratio guideline or limit ' for the Zone or Planned Development in which they are located, as set forth in Article 2 of Chapter 16 of the Tiburon Municipal Code. No variances or floor area exceptions are permitted. c. Be single story and would not exceed fifteen (15) feet in Height, as defined in Section 16-5.6.-7 16-30.050 of the Municipal Code. d. Not require more than 100 cubic yards of grading (earth movement). 6. The proposed Secondary Dwelling Unit, if located in an existing Primary Unit, or if proposed as a part of a project for which at least one other Zoning Permit is required, would not exceed one-third (1/3) of the maximum F/oorArea Ratio Guide guideline or limitatkm for the property (as prescribed in Section 16-4.2.8 16-52.020 (I) of the Municipal Code), or 1,000 square feet of Floor Area whichever is less. In EXHIBIT N0. Exhibit A -Resolution No. (Draft)-2010 Standards for Secondary Dwelling Units Amended --1--12010 no case shall the 1 /3 requirement above reduce the floor area allowed below that required to meet the minimum floor area required for an efficiency unit as defined by California Health & Safety Code section 17958.1. 7. The proposed Secondary Dwelling Unit, if converted from a lawfully existing detached Accessory Building or Structure and not proposed as part of a project for which any other Zoning Permit is required, would meet all minimum required yard regulations as set forth in Sections 16- 21.040(A) and 16-3,0.030(E[ l]) of the Tiburon Municipal Code. few Dwelfin.9 "t, Retwithstanding is of SeEton 16 .6.6.4(a) ef the 8. The proposed Secondary Dwelling Unit would provide one (1) off-street Parking Space for each bedroom within the Secondary Dwelling Unit, but in no case less than one (1) Parking Space. The Parking Spaces would comply with all Town standards and regulations regarding Parking Spaces, including parking in setbacks. Tandem parking is not permitted. 9. The required Parking Spaces for the proposed Secondary Dwelling Unit would be served by the same driveway access to the street as the Primary Unit. 10. Landscaping, including trees and shrubs, would be installed as part of the project to minimize the visual impacts of the project, including the screening of parking areas; to provide shade; and to provide a visual buffer between the Secondary Dwelling Unit and its surroundings. Proposed trees would not be classified as "undesirable trees" as defined in Chapter 15A of the Tiburon Municipal Code. 11. The exterior appearance of the proposed Secondary Dwelling Unit would closely resemble the architectural style, building materials, and building colors of the Primary Unit. 12. The design of the proposed Secondary Dwelling Unit shall include privacy-enhancing techniques to be applied to all windows, doors and other openings that face and are within twenty (20) feet of adjacent property lines, in order to reduce adverse privacy impacts. Such techniques include, but are not limited to, use of frosted windows, window placement at least six (6) feet above floor level, extended roof overhangs, and other permanent structural treatments. 13. The Secondary Dwelling Unit would be in conformance with the current building codes adopted by the Town. Unless the project constitutes new construction or an addition to an existing building (as opposed to the EXHIBIT NO. I Exhibit A Resolution No. (Draft)-2010 Standards for Secondaiy Dwelling Units Amended --1--12010 2 conversion of an existing building) New Construo , a building inspection shall be performed by the Town's Building Division, and a memo establishing the feasibility of the project to meet current building codes shall be provided to the Director of Community Development, prior to approval of a Secondary Dwelling Unit permit. 14. Adequate sanitary service capacity for the additional increment of effluent resulting from the Secondary Dwelling Unit would be available. If the Lot is connected to the public sewer system, the Applicant has submitted a letter from the appropriate Sanitary District to that effect. If the Lot is not connected to the public sewer system, the Applicant has submitted a letter from the County of Marin Environmental Health Department confirming that the individual or alternative sewage disposal system serving the Lot has adequate capacity to accommodate the proposed Secondary Dwelling Unit. 15. The Secondary Dwelling Unit would comply with all applicable Fire District regulations. 16. The Secondary Dwelling Unit would comply with all applicable Water District regulations. NOTE: Bold and italics indicates a term defined in Title IV, Chapter 16 (Zoning) of the Tiburon Municipal Code. S:OdministrationlTown CouncillStaff Reports120101July 7 DRAFTSISecondary Dwelling Unit Standards Redlined.doc EXHIBIT NO. I _ Exhibit A -Resolution No. (Draft)-2010 Standards for Secondary Dwelling Units Amended --1--12010 3 RESOLUTION NO. (Draft)-2010 A RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF TIBURON AMENDING THE "STANDARDS FOR SECONDARY DWELLING UNITS" WHEREAS, in 2003, in response to state law requirements, the Town Council adopted standards to be applied in the ministerial review of secondary dwelling units; said standards were subsequently amended in May 2005 by adoption of Resolution No. 05-2005; and WHEREAS, on March 17, 2010, the Town Council adopted Ordinance No. 519 N.S. comprehensively updating the Tiburon Zoning Ordinance (Title IV, Chapter 16 of the Tiburon Municipal Code), including amendments to the code section numbers regarding Secondary Dwelling Units; and WHEREAS, said Zoning Ordinance update necessitates amendments to the adopted secondary dwelling unit standards; and WHEREAS, a review of current state statutes regarding secondary dwelling units indicates that additional amendments to the standards would clarify the Town's compliance with the statutes; and WHEREAS, the Town Council has considered amendments to the Standards for Secondary Dwelling Units at a public meeting held on , 2010; and WHEREAS, the Town Council finds that the amended "Standards for Secondary Dwelling Units" are consistent with the goals, policies, and programs of the Tiburon General Plan; and WHEREAS, the adoption of these amendments is statutorily exempt from the requirements of CEQA pursuant to Section 21080.17 of the Public Resources Code, and WHEREAS, in adopting Standard No. 8 of the "Standards for Secondary Dwelling Units" regarding parking, the Town Council specifically finds that, pursuant to provisions of the Zoning Ordinance, tandem parking is not permitted anywhere else in the Town of Tiburon, nor is parking in setback areas regulated any differently for secondary dwelling units under these standards than is regulated anywhere else in the Town of Tiburon. NOW, THEREFORE BE IT RESOLVED that the Town Council hereby adopts the amended "Standards for Secondary Dwelling Units" as set forth in the attached Exhibit "A". EXHTRIT NO. Tiburon Town Council Resolution No. (Draft)-2010 --1--12010 Pagel of2 PASSED AND ADOPTED at a regular meeting of the Town Council of the Town of Tiburon on , 2010, by the following vote: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: RICHARD COLLINS, MAYOR ATTEST: DIANE CRANE IACOPI, TOWN CLERK Attachments: Exhibit "A" SAAdministration\Town Council\Staff Reports\2010\July 7D RAFTS\Secon dory Dwelling Unit Standards Resolution.doc EXHIBIT N0. "Z- Tiburon Town Council Resolution No. (Draft)-2010 --1--12010 Page 2 of 2 To: From: TOWN OF TIBURON 1505 Tiburon Boulevard Tiburon, CA 94920 Mayor and Members of the Town Council Office of the Town Clerk Town Council Meeting July 7, 2010 Agenda Item: 4;pp i. Subject: Appointments to fill vacancies on Town Boards, Commissions & Co ees Reviewed By: BACKGROUND There is currently a vacancy on the Design Review Board created by the resignation of Grover Wilson earlier this year (March 2010). The Town Clerk published and posted a Special Vacancy Notice. The notice set a deadline for receipt of applications as of April 1, 2010, but also stated that the position would remain open until filled. As of the date of this report, there has been interest from two parties: Hawthorne Drive resident Linda Emberson submitted an application on June 10, 2010, and is scheduled for an interview with the Council this evening. The Town also received e-mail correspondence from a previous applicant, Lalita Waterman, expressing interest in the position. Ms. Waterman was one of four candidates previously interviewed by the Council in February 2008. Town staff provided an application to Ms. Waterman, but as of the date of this report, staff has not received an application from Ms. Waterman. Pursuant to Resolution No. 16-2007, the Town Council must interview any interested party who applies in writing for the position. The Mayor has the discretion to waive an interview of any applicant that the Council has interviewed within the past year. RECOMMENDATION Staff recommends that the Council: 1. Interview the current applicant; 2. Direct Staff to schedule interviews of any previous applicants, if desired; 3. Consider making an appointment to fill the pending vacancy on the Design Review Board; or 4. Direct staff to continue the item to a future meeting. Exhibits: Special Vacancy Notice Application from Linda Emberson Prepared By: Diane Crane Iacopi, Town Clerk SPECIAL VACANCY NOTICE On Town of Tiburon Boards, Commissions Committees March 2010 DESIGN REVIEW BOARD - Statutory Authority: Section 3.02 of Tiburon Zoning Ordinance Term: Four years Purpose: The Design Review Board reviews and acts on applications for Site Plan and Architectural Review, which can include plans for new residential and commercial building, remodels, additions, accessory buildings, swimming pools, fences, decks, and other structures. This review includes both the site layout and architectural design characteristics of a proposal. Decisions of the Board are final, unless appealed to the Town Council. Qualifications: A licensed architect is preferred to this vacancy although not required. Applicants should be residents of the Town of Tiburon and have an interest and the time available to help promote the general welfare and aesthetics of the community through proper regulation of site planning and architectural design. Formal training, experience or familiarity in architecture, design, and/or landscape architecture are preferred but not required. The unscheduled vacancy on the Design Review Board occurred follows: Appointees Date Appointed Date Resikned Term Expires 1) Grover Wilson September 2008 March 2010 2/28/11 * *The successful candidate will be appointed to serve out the remainder of the term and will be eligible for automatic reappointment to a full, four-year term Interested residents can contact Tiburon Town Clerk Diane Crane at 435-7377 for more information, or pick up an application at Tiburon Town Hall, 1505 Tiburon Boulevard. Applications are also on-line at www.ci.tiburon.ca.us (click on "Useful Forms"). Deadline for Applications =April 1, 2010 cc: Notice posted at Town Hall Published in the Ark on March 24 & 31, 2010 TOWN OF TIBURON COMMISSION, BOARD & COMMITTEE APPLICATION The Town Council considers appointments to various Town commissions, boards and committees throughout the year due to term expirations and unforeseen vacancies. In an effort to broaden participation by local residents in Tiburon's governmental process and activities, the Council needs to know your interest in serving the Town in some capacity. Please indicate your specific areas of interest and special skills or experience which would be beneficial to the Town, by completing both sides of this form and returning it to Town Hall. The application form can also be found on the Town's website, www.ci.tiburon.ca.us. Copies of the application will be forwarded to the Town Council and an informal interview will be scheduled when a vacancy occurs. Your application will remain on file at Town Hall for a period of one (1) year. Thank you for your willingness to serve the Tiburon community. E C E ~ V E JUN 14 2010 TOWN CLERK TOWN OF TIBURON Diane Crane Iacopi Town Clerk AREAS OF INTEREST T■ r-wabc lAuica[r r our Areaks) of interest in Numerical Order (#1 Being the Greatest Interest) _ PLANNING _ DESIGN REVIEW -HERITAGE & ARTS LIBRARY -PARKS, OPEN SPACE & TRAILS JT. RECREATION COMMITTEE -----DISASTER PREPAREDNESS MARIN COMMISSION ON AGING 1 PERSONAL DATA (PLEASE PRINT OR TYPE - A`RESUME MAY BE ATTACHED AS WELL) NAME: t1111 ml°'I 1j nqj MAILING ADDRESS: 67, C~t,II C~'~'~ TELEPHONE: Home: `~►3~ t W- 7 r - i z~ Fax No. PROPERTY OWNERS' ASSOC. (If applicable) TIBURON RESIDENT: (Years) 4 DATE SUBMITTED: REASONS FOR SELECTING YOUR AREAS OF INTEREST r- )I ry ' ra ! u1.,; I le-'01 `k ' , r(,,7- nor i W4 C tn L/77 r 1 R e ` r i~ ` f J 1~~ i CDCj-7Je-IA cos)-64c-6r- &V v~ APPLICABLE OUALIFICATIONS AND EXPERIENCE 'RC, 't7 r ~ j , T),-'hi; ae-- fie; t(r rreuyl o i 2• ~~~f1~~ C._ r,~`- ~ L~ ~ t~4~~~ ~f `I~c~ i'C'=~C?i~~ ~ ~t.~•' L~t~/'/~~ .,--~`y"~~}~°~,r-~i ----------------------------------------------Town Hall Use Date Application Received: ollO1X~ Interview Date: Appointed to: Date Term Expires: (Date), Length of Term: 2 JUN 14 Z010 EMPLOYMENT HISTORY TOWN CLERK TOWN OF TIBURON Date employed: Name of Employer: Willdan & Associates/ County of Santa Cruz 11/89 to 6/90 Job Title and Duties: Building Counter Specialist, Plan Check Coordinator. Duties included: issuing over the counter building permits and answering questions in wake of Loma Prieta earthquake. Plan Check Coordinator. Checked plans for all elements, details and specifications required by County. Responsible for routing plans to all necessary departments and coordination with all departments in issuing building permits for major reconstruction. Extensive plan review and coordination with all necessary departments. Issuing permits for major reconstruction. Extensive public contact. Date employed: Name of Employer: Willdan & Associates 11/86 to 11/88 Job Title and Duties: Building Counter Technician/Planner Independent contractor with Willdan. Worked at City of Alhambra as Building Counter Technician and City of Stanton as City Planner. Duties were same as described below. Date employed: Name of Employer: City of Rolling Hills Estates 3/86 to 10/86 Job Title and Duties: Code Compliance Officer. Duties included: organizing old files, identifying, pursuing and tracking code violations, working with City Attorney and County of Los Angeles detectives to prosecute gross violations. Extensive public contact, answering questions and explaining city policies to the general public. Handle all filming and special event permits, including extensive work with the film industry and promoters, calculating fees and checking for compliance during events. Date employed: Name of Employer: City of Paramount, California 11/83 to 8/84 Job Title and Duties: Planning Technician/Building Counter Technician. Duties included: working with public at front counter answering general planning questions, accepting and preparing CUP and variance applications for submittal to Planning Commission, attending all City Council and Planning Commission meetings to present CUP or variance applications for which I was responsible. Identifying code violations and gaining compliance. Building technician when building inspector was out on inspections. Issuing building permits that didn't require planning approval.