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HomeMy WebLinkAboutAgr 2010-06-16 (RUSD)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 2"d, 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 21St 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. C, 0 H tic 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 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"). RF.C1TAT .C 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; Assi ent. 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 It Dated: '2010 APPROVED AS TO FORM: Dated: , 2010 Dated: 2010 REED UNION SCHOOL DISTRICT By: Its: TOWN OF TIBURON By: By: Its: T& .LA~JA ~ Ann R. Danforth, Esq. Town Attorney DANNIS WOLIVER KELLEY By: Glenn N. Gould, Esq. Attorneys for Reed School District Page 3 o f 3