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HomeMy WebLinkAboutTC Agd Pkt 2011-04-06 (2)TOWN OF TIBURON 1505 Tiburon Boulevard Tiburon, CA 94920 Town Council Meeting April 6, 2011 Agenda Item: A721--/ To: Mayor and Members of the Town Council From: Department of Public Works Office of the Town Manager Subject: Lyford Drive Multi-Modal Parking Lot - Review of Project, Discussion and Request for Direction to Staff - Reviewed By: (Aj~) ~ BACKGROUND In November 2009, the Town Council approved a design concept for a parking lot at the intersection of Lyford Drive and Tiburon Boulevard that generally consisted of a 60-foot wide paved parking area with retaining wall. This concept provides a total of 58 parking spaces in two rows with a single drive aisle, as well as a significantly wider sidewalk to provide room for future installation of a bus shelter, bicycle racks, monument entry sign and information kiosk. Because a portion of the project is in the Caltrans right-of-way, their approval is required both for the design of the project and for permission to use the site via a lease or other mechanism. On April 21, 2010 Council authorized staff to work with PG&E and engage an engineering consultant to prepare an environmental review, develop plans for construction and provide more detailed estimates to the various options of what to do with the aerial utility line that run through the site. Staff further developed the project, and presented findings at an October 6, 2010 Council meeting, particularly focusing on the question of the aerial utility lines. A variety of approaches were presented, and staff recommended undergrounding the line at the time of parking lot construction as the most cost effective option. Staff reported that Caltrans' review of the project had not yet been completed, and that significant comments were anticipated which had the potential to escalate project costs. At the time, the total project cost, including soft costs, was estimated to range from $1.1 million to $1.36 million not including contingencies. Council directed staff to work with Caltrans to determine the full extent of their comments, but to otherwise minimize any further investment in the project until comments could be evaluated and project costs updated. Council directed staff to return after this information was at hand for further direction. DISCUSSION Staff has now received comments from Caltrans, as well as further refinements of the undergrounding component from PG&E. Staff believes that Caltrans' various comments can be incorporated into the final design at an estimated cost of $12,000, substantially less than originally anticipated. PG&E has provided new conservative estimates of approximately $351,000 for undergrounding work. Under PUC Rule 20B undergrounding projects, PG&E would rebate the cost of an equivalent aerial system of roughly $75,000. The net estimate would be $276,000, which is somewhat higher than the $215,000 cost originally quoted by PG&E. Totaling the various estimates, the full project with two rows of parking, multi-modal features, and utility undergrounding is now about $1.34 million, including contingencies, a relative decrease from the last estimate. Reduced Design Alternative Understanding that project cost continues to be a significant concern, staff re-evaluated a prior alternative of a single row of parking with 27 parking spaces and multi-modal features. Combined with the utility undergrounding and the necessity to re-engineer a smaller project, the total estimate is $1.14 million for savings of $200,000. Roughly another $40,000 can be saved for either project if landscaping is reduced. This reduced design alternative would achieve many of the original project objectives: (1) enhancing the appearance of the area, (2) improving traffic safety in the area, (3) actively managing the use of the parking lot, and (4) promoting multi-modal transportation. It would deliver substantially less parking, though, without a comparable reduction in price. One advantage it would also forfeit is a parking bay the Town could use for construction staging for its projects. Currently, there is very little staging area for the Town's annual capital improvement projects, pressing the Town to use less attractive locations such as Blackie's Pasture. The second row of parking could be flexibly used for this purpose on an as-needed basis. Caltrans Approval Caltrans representatives have previously indicated that they are reluctant to allow the Town to charge a fee for parking as new department policies evolve regarding the state's Park and Ride lots. This is a potentially serious issue; this lot will exist long into the future and charging for parking may become an indispensable management tool to ensure appropriate use of the lot as well as provide an opportunity to recoup maintenance costs. Staff continues to negotiate with Caltrans on this matter. Belvedere Participation The City of Belvedere declined to make a capital contribution to the project (many of the parkers are contractors destined for jobs in Belvedere). However, it is our understanding that Belvedere will allow the Town to tap into its irrigation system and electric power, both located near its corporation yard, for the project's need. Fiscal Impact The following is brief recap of the project estimates, inclusive of soft costs and contingencies, since October 2010: • October 2010 - Full project: • April 2011 - Full project: • April 2011 -Reduced project: $1.23 million to $1.53 million $1.34 million $1.14 million Town allocated $785,000 for the project in this fiscal year, which includes a $314,000 competitive grant from the California Transportation Fund for Clean Air (TFCA) program. At its February 16, 2012 meeting, the Town Council authorized the transfer of approximately $290,000 Redevelopment Agency funds for this project should Council elect to proceed with it. If the full project is selected, funding sources would be as follows: $736,000 (general fund reserves) $314,000 (TAM grant) $290,000 (RDA funds) $1,340,000 Since most of this funding is already appropriated, a budget supplement of $265,000 from General Fund Reserves would be required to complete funding for the project. If the small project is selected, $65,000 in additional funding will be necessary. It should be pointed out that there is still some jeopardy that the State will retroactively claim Redevelopment funds from local agencies. The Town took appropriate steps to protect its $290,000 from this threat, but the Town will not know for some time if these funds are beyond the reach of the State. Project Timing Assuming Council wished to proceed with it, this project was slated to be bid this spring of 2011 with a late summer construction start. This is essentially the same schedule the Town has for two other major projects: the Del Mar undergrounding and the Ned's Way recreation building. Staff has grown concerned about undertaking all three projects simultaneously for both budgetary and managerial reasons. Del Mar is expected to be fully funded by its assessment district, but in the event those funds fall short there could be a need for the Town to step in to close the gap. The Ned's Way project cost won't be available until it is bid, and not entirely known until it has been completed. Managing these three projects simultaneously is also a concern. Del Mar undergrounding is a huge project requiring a high level of coordination with the private property owners that must connect to the system, and the Ned's Way project is a departure from the Town's typical projects and thus more management intensive. There is also a concern about the impacts on Tiburon Boulevard and general disruption concomitant with construction activity if the Town has all three projects underway at the same time. 3 Tt To address these concerns, staff proposes staggering these projects. Specifically, staff recommends that the engineering of the Lyford project be completed (there is very little left to finalize engineering on the whole project) and that it be included in the 2011-2012 budget, but that Council defer a decision on the project until January of 2012. At that time, the Ned's Way project will be complete and the Del Mar joint trench substantially complete so those costs will be known. Council will then be able to direct staff to bid the Lyford Parking project, re-engineer it to permit bidding of the smaller version, or abandon the project altogether. This timing would allow for a spring 2012 construction start. Staff has confirmed that the Town is eligible for an extension of the TAM grant for the project. Next Steps The project estimate has stabilized and even decreased slightly. One third of the project is grant- or RDA funded, and the utility undergrounding, while it does add expense, is consistent with the Town's long-term objectives for Tiburon Boulevard. Hence, staff continues to believe it is a worthy project that will improve function, aesthetics and safety in this prominent location. Staff recommends that it finalize the full project (which is very close to being complete now) including the undergrounding, continue work with Caltrans to sort out the issues related to parking lot operation, and return to the Council in January 2012 for direction. Staff will include funding for the project in the proposed 2011-2012 budget for Council consideration (a carry over of currently budgeted funds plus the supplemental needed to complete the project). Staff also wishes to point out that the environmental work for the project is nearing completion. Staff anticipates returning to the Town Council on June 1, 2011 for CEQA and other project approvals. This will complete the necessary ground work for the project so that it may proceed directly to bid should Council elect that option in January of 2012. RECOMMENDATION Staff recommends that the Town Council: 1. Consider the project; 2. Direct staff to: a. Finalize engineering for the full project with utility undergrounding; b. Resolve outstanding issues with Caltrans; c. Seek a extension of the TAM grant; d. Complete CEQA work on the project and return to the Town Council in June of 2011 for environmental and project approval; e. Include funding for the project in the 2011-2012 Capital Improvement Projects draft budget; f. Return to the Town Council in January 2012 for a decision on whether to proceed with the project. Exhibit: Graphic Depiction of Project Prepared by: Nicholas T. 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DESCRIPTION DATE HE NO.: ~+~T~ 3 J Ss- TOWN OF TIBURON 1505 Tiburon Boulevard Tiburon, CA 94920 Town Council Meeting April 6, 2011 Agenda Item: T/ To: Mayor & Members of the Town Council From: Community Development Department Subject: Consider Adoption of a Zoning Ordinance Text Amendment that Would Provide a One-year Time Extension for Approved, Unexpired Design Review Permits; Town-Initiated Application; File No. MCA 2011-01; Ordinance----Introduction and First Reading Reviewed Bv: BACKGROUND In recognition of the effects of the national economic recession on property owners, the Town Council, at its February 8, 2011 retreat, directed staff to initiate the process of authorizing a one- year time extension for all approved Site Plan & Architectural Review (design review) permits that have not expired. ANALYSIS Site Plan and Architectural Review permits expire by operation of law (i.e. automatically) three years after their issuance unless a building permit has subsequently been issued in reliance thereon, and no time extensions are possible. A permit-holder must file the application anew and pay all processing fees in order to secure permit approval again. The 3-year window of validity for design review applications is generous compared to most Marin cities, which typically have 1- 2 year terms of approval. Site Plan and Architectural Review permits are by far the most common zoning permit issued by the Town, and the only frequently-issued permit that does not have a time extension provision in the Zoning Ordinance. This circumstance was a conscious decision made by the Town Council years ago when it extended the period of validity from 24 to 36 months in the 1990's. However, recent national economic circumstances were not envisioned at the time. There have always been a percentage of design review approvals that expire without further action. Anecdotally, Staff has recently noticed an apparent increase in the number of Site Plan and Architectural Review permits that are expiring, with a common reason appearing to be the current economic conditions and/or the difficulty in securing a construction loan in the current economy. The zoning ordinance text section proposed for amendment, with the new text shown as double- underlined, is attached as Exhibit 1. Very briefly, the added text would extend for one additional A r .I: ~01.1 calendar year the validity of all unexpired site plan and architectural permit approvals. The new provision would also allow for additional one-year extensions to be authorized by the Town Council by Resolution. The ordinance is not retroactive to permits that have already expired, as that would raise potential legal issues. PLANNING COMMISSION REVIEW The Planning Commission held a public hearing on this item on February 23, 2011 and voted to recommend approval of the zoning text amendment to the Town Council. The Planning Commission's resolution is attached as Exhibit 2. If the Town Council makes any substantive changes to the draft ordinance, state law requires that the item be returned to the Planning Commission for its review and report prior to being considered for adoption by the Town Council. ENVIRONMENTAL DETERMINATION Amendment of this Zoning Ordinance text section has no potential to cause an environmental impact and is exempt from requirements of the California Environmental Quality Act (CEQA) pursuant to Section 15061(b)(3) of the CEQA Guidelines. RECOMMENDATION Staff recommends that the Town Council: 1. Hold a public hearing and consider all testimony. 2. Move to read by title only, waiving any additional readings, and introduce the ordinance (Exhibit 3) amending the Zoning Ordinance with respect to expiration of design review approvals. If first reading is passed without substantive changes, the item will return on the Consent Calendar for adoption at the next regular meeting, and if adopted become effective on May 20, 2011. EXHIBITS 1. Section of Zoning Ordinance proposed for amendment. 2. Planning Commission Resolution 2011-06. 3. Draft Ordinance. Prepared by: Scott Anderson, Director of Community Development S: IAdministrationlTown CouncibStaff Reports 1201 PApri16 draftsISPAR time extension report. doc i Title IV, Chapter 16, Article V, Section 16-52.020 of the Municipal Code 0. Expiration of Site Plan and Architectural Review approval. Site Plan and Architectural Review approval shall expire and become null and void three years after the date of approval unless a Building Permit has been issued before the date of expiration. Exception: The expiration date of any Site Plan and Architectural Review permit that has been approved and has not expired prior to insert the effective date of this Ordinancel shall be extended by one calendar year. Additional one-year extensions may be authorized by Resolution of the Town Council. E-'FIIBIT NO. RESOLUTION N0.2011-06 A RESOLUTION OF THE PLANNING COMMISSION OF THE TOWN OF TIBURON RECOMMENDING TOWN COUNCIL ADOPTION OF AN AMENDMENT TO THE MUNICIPAL CODE (TITLE IV, CHAPTER 16, ZONING) WHEREAS, the Town of Tiburon has initiated a text amendment to the Town's Zoning Ordinance, codified as Title IV, Chapter 16 of the Tiburon Municipal Code; and WHEREAS, notice of the public hearing on the amendments was published in a newspaper of general circulation in the Town of Tiburon on February 12, 2011, and other noticing was provided as required by law; and WHEREAS, the Planning Commission did hold a duly noticed and advertised public hearing on February 23, 2011, at which testimony was received from the public; and WHEREAS, the Planning Commission has determined that the project has no potential to result in adverse impacts on the environment and is exempt from the requirements of the California Environmental Quality Act; and WHEREAS, the Planning Commission finds that the proposed Zoning Ordinance amendment is consistent with the goals, policies, and programs of the Tiburon General Plan, and is consistent with the objectives of the Zoning Ordinance. NOW, THEREFORE, BE IT RESOLVED that the Planning Commission hereby recommends that the Town Council adopt the Municipal Code text amendments to Title IV, Chapter 16, Zoning, as set forth in the attached Exhibit "A". PASSED AND ADOPTED at a regular meeting of the Planning Commission of the Town of Tiburon held on February 23, 2011, by the following vote: AYES: COMMISSIONERS: Corcoran, Doyle & Tollini NOES: COMMISSIONERS: None ABSENT: COMMISSIONERS: Frymier & Kunzweiler TIBURON PLANNING COMMISSION RESOLUTION NO. 2011-06 FEBRUARY 23, 2011 EXHIBIT NO. 01 ~-w l JOHN O I -CHAIRMAN Tiburon Planning Commission ATTEST: SCOTT ANDERSON, SECRETARY Attachment: Exhibit "A"; Form of Ordinance TIBURON PLANNING COMMISSION RESOLUTION NO. 2011-06 FEBRUARY 23, 2011 EXIIIDIT NO. Not for Codification ORDINANCE NO. XXX P4. S. AN ORDINANCE OF THE TOWN COUNCIL OF THE TOWN OF TIBURON AMENDING MUNICIPAL CODE TITLE IV, CHAPTER 16 (ZONING) TO EXTEND THE EXPIRATION DATE OF UNEXPIRED APPROVALS OF SITE PLAN & ARCHITECTURAL REVIEW PERMITS BY ONE CALENDAR YEAR SECTION 1. FINDINGS. WHEREAS, the Town has identified an increasing trend of the expiration of approved Site Plan & Architectural Review permits without subsequent pursuit of a building permit, and attributes this trend largely to a severe national recession and the resulting difficulty of securing construction loans, both circumstances being beyond the control of local property owners and residents holding such permits; and WHEREAS, the Town has determined that an appropriate form of relief for these circumstances would be to extend the validity by one calendar year of approved Site Plan & Architectural Review permits that have not expired; and WHEREAS, the Town Council finds that this amendment is adopted to promote the general welfare of the community; and WHEREAS, the Planning Commission held a public hearing on February 23, 2011, heard and considered all testimony and timely correspondence on the proposed Municipal Code amendment, and recommended approval of the proposed amendment to the Town Council; and WHEREAS, the Town Council held a public hearing on 2011 and has heard and considered all testimony and timely correspondence on the proposed Municipal Code amendment; and WHEREAS, the Town Council finds that that this amendment is covered by the general rule that the California Environmental Quality Act (CEQA) applies only to projects that have the potential for causing a significant effect on the environment pursuant to CEQA Guidelines Section 15061(b)(3), and further finds that if this amendment was not covered by the above section, the amendments would be exempt pursuant to Sections 15301, 15302, 15303, and/or 15304 of the CEQA Guidelines. SECTION 2. ADOPTION OF AMENDMENT. NOW, THEREFORE, BE IT ORDAINED that the Town Council of the Town of Tiburon hereby amends the Tiburon Municipal Code, Title IV, Chapter 16 (Zoning) by amending Article V, Section 16-52.020(0) to read as follows: Town of Tiburon Ordinance No. XXX N. S. Effective --1--12011 Page 1 of 2 O. Expiration of Site Plan and Architectural Review approval. Site Plan and Architectural Review approval shall expire and become null and void three years after the date of approval unless a Building Permit has been issued before the date of expiration. Exception: The expiration date of any Site Plan and Architectural Review permit that has been approved and has not expired prior to [insert the effective date of this Ordinance] shall be extended by one calendar year. Additional one-year extensions may be authorized by Resolution of the Town Council. SECTION 3. SEVERABILITY. If any section, subsection, clause, sentence, or phrase of this Ordinance is for any reason held to be invalid or unconstitutional by a decision of a Court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of the Ordinance. The Town Council of the Town of Tiburon hereby declares that it would have passed this Ordinance, any section, subsection, sentence, clause or phrase thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses, or phrases may be declared invalid or unconstitutional. SECTION 4. EFFECTIVE DATE. This Ordinance shall take effect and be in force thirty (30) days after the date of passage, and before the expiration of fifteen (15) days after passage by the Town Council, a copy of the ordinance shall be published with the names of the members voting for and against it at least once in a newspaper of general circulation in the Town of Tiburon. This Ordinance was introduced at a regular meeting of the Town Council of the Town of Tiburon on , 2011, and was adopted at a meeting of the Town Council of the Town of Tiburon on , by the following vote: AYES : C OUN C ILMEMB ERS : NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: JEFF SLAVITZ, MAYOR TOWN OF TIBURON ATTEST: DIANE CRANE IACOPI, TOWN CLERK S: IPlanninglPlanning Commission lResolutions1201112011-06; ZO amend for SPAR time extension Exhibit A.doc Town of Tiburon Ordinance No. XXX N. S. Effective --1--12011 Page 2 of 2 Not for Codification ORDINANCE NO. XXX N. S. AN ORDINANCE OF THE TOWN COUNCIL OF THE TOWN OF TIBURON AMENDING MUNICIPAL CODE TITLE IV, CHAPTER 16 (ZONING) TO EXTEND THE EXPIRATION DATE OF UNEXPIRED APPROVALS OF SITE PLAN & ARCHITECTURAL REVIEW PERMITS BY ONE CALENDAR YEAR SECTION 1. FINDINGS. WHEREAS, the Town has identified an increasing trend of the expiration of approved Site Plan & Architectural Review permits without subsequent pursuit of a building permit, and attributes this trend largely to a severe national recession and the resulting difficulty of securing construction loans, both circumstances being beyond the control of local property owners and residents holding such permits; and WHEREAS, the Town has determined that an appropriate form of relief for these circumstances would be to extend the validity by one calendar year of approved Site Plan & Architectural Review permits that have not expired; and WHEREAS, the Town Council finds that this amendment is adopted to promote the general welfare of the community; and WHEREAS, the Planning Commission held a public hearing on February 23, 2011, heard and considered all testimony and timely correspondence on the proposed Municipal Code amendment, and recommended approval of the proposed amendment to the Town Council; and WHEREAS, the Town Council held a public hearing on April 6, 2011 and has heard and considered all testimony and timely correspondence on the proposed Municipal Code amendment; and WHEREAS, the Town Council finds that that this amendment is covered by the general rule that the California Environmental Quality Act (CEQA) applies only to projects that have the potential for causing a significant effect on the environment pursuant to CEQA Guidelines Section 15061(b)(3), and further finds that if this amendment was not covered by the above section, the amendments would be exempt pursuant to Sections 15301, 15302, 15303, and/or 15304 of the CEQA Guidelines. SECTION 2. ADOPTION OF AMENDMENT. NOW, THEREFORE, BE IT ORDAINED that the Town Council of the Town of Tiburon hereby amends the Tiburon Municipal Code, Title IV, Chapter 16 (Zoning) by amending Article V, Section 16-52.020(0) to read as follows: Town of Tiburon Ordinance No. XXX N. S. Effective --1--12011 Page 1 of 2 EXHIBIT NO.%3 O. Expiration of Site Plan and Architectural Review approval. Site Plan and Architectural Review approval shall expire and become null and void three years after the date of approval unless a Building Permit has been issued before the date of expiration. Exception: The expiration date of any Site Plan and Architectural Review permit that has been approved and has not expired prior to [insert the effective date of this Ordinance] shall be extended by one calendar year. Additional one-year extensions may be authorized by Resolution of the Town Council. SECTION 3. SEVERABILITY. If any section, subsection, clause, sentence, or phrase of this Ordinance is for any reason held to be invalid or unconstitutional by a decision of a Court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of the Ordinance. The Town Council of the Town of Tiburon hereby declares that it would have passed this Ordinance, any section, subsection, sentence, clause or phrase thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses, or phrases may be declared invalid or unconstitutional. SECTION 4. EFFECTIVE DATE. This Ordinance shall take effect and be in force thirty (30) days after the date of passage, and before the expiration of fifteen (15) days after passage by the Town Council, a copy of the ordinance shall be published with the names of the members voting for and against it at least once in a newspaper of general circulation in the Town of Tiburon. This Ordinance was introduced at a regular meeting of the Town Council of the Town of Tiburon on April 6, 2011, and was adopted at a regular meeting of the Town Council of the Town of Tiburon on , by the following vote: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: JEFF SLAVITZ, MAYOR TOWN OF TIBURON ATTEST: DIANE CRANE IACOPI, TOWN CLERK S: IAdministrationlTown CouncillStaffReports1201I Mpril 6 draftslSPAR time extension ordinance.doc Town of Tiburon Ordinance No. XXX N. S. Effective --1--12011 Page 2 of 2 TOWN OF TIBURON 1505 Tiburon Boulevard Tiburon, CA 94920 Town Council Meeting April 6, 2011 Agenda Item: j~H 2 To: Mayor & Members of the Town Council From: Community Development Department Subject: Consider Establishing a Streamlined Development Review Procedure for the Lyford Drive Multi-modal Parking Lot Project Located Southeast of the Intersection of Lyford Drive and Tiburon Boulevard; Ordinance---Introduction and First Reading; File S 2010-05; Assessor Parcel No. 060-061-15 & Adjacent Tiburon Boulevard Right-of-Way Reviewed BACKGROUND For over twenty years, the Town has expressed interest in improving the gravel shoulder area along Tiburon Boulevard southeast of its intersection with Lyford Drive (see Exhibit A). Discussions with Caltrans regarding "park and ride" type improvements to this area began in the late 1980's, but were interrupted by the 1989 Loma Prieta Earthquake, which caused Caltrans to divert all resources away from local right-of-way improvement projects for several years. In 1997 Caltrans prepared and presented a park-and-ride-type improvement design to the Town; it is believed that Caltrans would have fully funded the improvements at that time. The 1997 Caltrans drawing showed approximately 40 parking spaces utilizing the unpaved rights-of-way on both sides of Tiburon Boulevard, with an all-asphalt surface and no landscaping. The scheme was rejected by the Town Council following unsuccessful efforts to have Caltrans agree to upgrade the aesthetics and parking efficiency of the project. Active pursuit of improvements to this unpaved area ceased for several years, but was rekindled by the Town in 2008, this time envisioned as a Town-designed and funded project with safety and aesthetic upgrades incorporated into the design. PROJECT DESCRIPTION While still in the design stages, the project proposes to construct a paved parking lot at the existing unpaved and informal parking area along the west side of Tiburon Boulevard near Lyford Drive. The improvements would include constructing a parking lot with approximately 50 stalls (including six for over-sized vehicles), reconstructing an existing bus stop, constructing a modular block-type concrete retaining wall facing the Tiburon Multi-use Path, installing a bicycle rack, installing lighting and landscaping, and conveying drainage to an existing drainage outlet. The total limits of grading are approximately 1.1 acre. The project would be located approximately half within the Tiburon Boulevard street right-of-way and half within a Town of Tiburon-owned parcel through which the Tiburon Multi-use path crosses. D ~C~~OdL~ APR - 5 2 011 • TOWN CLERK TOWN OF TIBURON Ragghianti jFreitas LLr ATTORNEYS AT LAW 874 FOURTH STREET, SUITE D, SAN RAFAEL, CA 94901.3246 TELEPHONE 415.453.9433 FACSIMILE 415.453.8269 WW'A'.RFLAWLLP COM April 5, 2011 TOWN COUNCIL Via U.S. Mail and E-mail LATE MAIL # Tiburon Town Council Tiburon Town Hall MEETING DATE 1505 Tiburon Boulevard Tiburon, CA 94920 Re: Time Extension for Design Review Approvals - 9 Burrell Court Dear Mayor and Members of the Town Council: Our office continues to represent Ms. Firuze Hariri, the owner of 9 Burrell Court in the Town of Tiburon. This letter is in regards to the upcoming Council agenda item regarding a proposal to extend currently unexpired Design Review Permits, and the fact that this proposal does not go far enough to protect those most affected by the economic downturn because the extension would not apply to recently-expired permits. The Council is already in receipt of a letter from Ms. Hariri detailing the significant amount of time and expense she invested in a proposed remodel of her home and the subsequent expiration of her design review permit without the work being done due to her inability to obtain necessary financing. (Letter attached as Exhibit A.) It is our understanding that it was this very letter that triggered the Council's consideration of extending the length of design review permits. Ironically, the currently proposed ordinance would do nothing to help Ms. Hariri, or those in a similar situation, because it contains no retroactive component. If the Council truly wants to assist those affected by the recent national recession, an understanding of the timing of that recession is important. Attached hereto as Exhibit B, please find a chart showing the 10-year average of the Dow Jones Industrials, a representative economic indicator. This chart demonstrates the unforeseen and precipitous drop of the economy that occurred in early 2008, and lasted through most of 2010. To truly address those impacted by the recession, the Council should extend those permits obtained in the timeframe immediately before RODRIco D. DIAS DAVID F. FEINCOLD RILEY F HuRD III ROBERT F. EPSTEIN SARAH N. LEcER PATRICK M. MACIAS Of COUNSEL" ERIC STERNBERCER HERBERT M. ROWLAND 'OI1N RALPH TEIOMAS, )R. RICHARD T. FRANCESCHINI CARY T. RACc HIANTI, INC. DAVID P. FREITAS IRET RagghiantilFreitas ►.LP Tiburon Town Council April 5, 2011 Page 2 of 4 the drop, even though this requires a small component of retroactivity. Those who obtained permits after the economy collapsed did so knowing full well that a recession was taking place, yet the proposed ordinance protects those parties, while excluding those who could not have foreseen this economic catastrophe. The staff report for this item simply states the following in regards to why those citizens most affected by the recession are not protected by the proposed ordinance: "The ordinance is not retroactive to permits that have already expired, as that would raise potential legal issues." The fact is, the Council has an absolute right to retroactively extend recently expired design review permits, and it is the utilization of this right that would best assist the class of citizens the Council seeks to protect. California law is very clear that retroactive ordinances are legal, so long as they do not unconstitutionally impair existing contractual or property rights, or the protection of vested rights. (Plotkin v. Sajaltera, Inc., (2003) 106 Cal. App. 4th 953, 131.) Pertinent factors for determining whether ordinance retroactivity contravenes the constitutional guarantee of due process include the following: • The significance of the interest served by the law, • The importance of retroactive application to effectuation of that interest, • The extent of reliance upon the former law, • The legitimacy of that reliance, • The extent of actions taken on the basis of such reliance, and • The extent to which retroactive application of the new law would disrupt those actions. (Plotkin v. Sajahtera, Inc., (2003) 106 Cal. App. 4th 953,131.) Here, the proposed ordinance, which is designed to assist those affected by the previously depressed economy, loses much of its effectiveness if not applied retroactively. It would be difficult to argue that significant reliance on the expiration of a discrete number of design review permits has affected the extent of actions taken based on said reliance. In other words, the class of people who were relying on the expiration of a design review permit is so nonexistent, and the effect of said reliance so negligible, there is simply no way a retroactive permit extension would somehow RagghiantilPreitas i.iP Tiburon Town Council April 5, 2011 Page 3 of 4 violate the right to due process. In fact, it is the precise property right conferred by the expired design review permit that courts seek to protect when analyzing retroactive ordinances. In order for the proposed ordinance to be most effective, it only needs to be retroactive by a relatively short period of time in order to capture permits obtained in a reasonable timeframe before the crash. California courts have further held that retroactive application of an ordinance may be particularly appropriate, and thus valid, where the ordinance aims to rectify an injustice. (In re Marriage of Petropoulos, (2001) 91 Cal. App. 4th 161). Here, Ms. Hariri invested an inordinate amount of time and money in obtaining a design review permit, only to then be denied previously readily available financing due to the recession. Others likely suffered the same fate. Rectifying the effects of this unforeseen scenario is certainly grounds for retroactivity, particularly when said retroactivity will in no way impair the rights of others. Other jurisdictions within Marin have retroactively extended design review permits without legal issues or challenges arising. For example, the Town of San Anselmo passed a resolution retroactively extending design review permits issued in 2008 and stating the following: "WHEREAS, the Town Council determined that the only discretionary land use entitlement permits that warrant further extension are those issued in the year 2008 because the applicants for those permits were unaware of the forthcoming severe economic recession." (Emphasis added.) It is hereby requested that the Council adopt an ordinance that truly protects those affected by the "severe economic recession," as identified in the draft ordinance currently before the Council. In order to do so, the Council must adopt an ordinance with at least some period of retroactivity, as that is the only manner in which to provide relief to the class of citizens the Council rightly seeks to protect. Thank you for your consideration of this important matter. WF Ragghianti lFreitas LLr Tiburon Town Council April 5, 2011 Page 4 of 4 Very truly yours, 7Q- Riley F. Hurd III RFH/ kt Enclosures EXHIBIT A DIGEST , 5• January 30, 2011 JA N., s - Tiburon Town Council Tiburon Town Hall 1505 Tiburon Boulevard Tiburon, CA 94920 Re: 9 Burrell Ct - Development status Dear Mayor and Members of the Town Council: This letter is in regards to the home I own at 9 Burrell Ct in the Town of Tiburon. Specifically, I am writing to address the lengthy process I went through in order to try and remodel my home and the toll that process has ended up taking on my development plans. . My attempts to remodel date back to February 2006, when I engaged an architect in order to draw up plans for an updated home. These plans were fully code compliant, yet, after lengthy consideration, were denied by the Design. Review Board. This denial came after the DRB sent us back to the drawing board many separate times, each time without specific direction as to what it was they wanted to see. After this denial, I was forced to engage an attorney and file an appeal for your consideration. While the Council ended up eventually granting my appeal and overturning the DRB's erroneous decision, irreversible damage had already been done. The many months of the pre-submittal, DRB, and.Council appeal. processes coincided with the collapse of our Country's economy. Accordingly, after my long fought battle for an approval that should have been granted in the first place, I was then unable to obtain financing for a project in which I had invested a great deal of time, money, and.emotion. Please be aware that at the outset of the application process, I had already secured financing for the protect. Were it not for the totally unnecessary back'and-forth with the DRB and the eventual appeal, this would have been a fully financed project; it instead became one the banks would no longer consider. Because of the Town Code, I am told I am unable to seek an extension of my hard-fought Design Review approval and will now be forced to let my approvals lapse after all this considerable work. This is devastating to me. ' 2 Other cities and towns have granted blanket extensions to pending permits in light of the economic conditions currently faced. Please be aware that not all in Tiburon are immune from these conditions. I would ask that you please inquire with staff about my permits and do what you can to allow them to be extended. if this does not occur, I would like the record to reflect the reasons for the lapse of these permits in case I ever have the financial ability to re-apply in -the future. Thank you for your consideration of this important Regards, Firuze Hariri Hand delivered RECEIVEr) 'JAN 31 2o'1 TOWN of t18URo $UMI)ING DIVIgi, EXHIBIT B http: //apps.enbc.com/vi ew .asp?ui d=stocks/charts&symbol=. DJ IA&tear... DOW JQNF: INDU AVER RAG NDX DJI 1 Day 5 Day 1 Mo 3 Mo 6 W YTD 1 Yr 3 Yr 5 Yr 10 Yr Monthly Line ! Upper Indicators Lower Indicators 14, Standard' Logarithmic 14000.00 13000.00 12000.00 11000.00 10000.00 0000.00 .DJI 8000.00 2001 2602 20p:S 2604 206E 2606 2607 26os 2000_ [610 7000.00 15 \'Mume fn Billions) 10 Events: L.] Earnings C] Splits Q Dividends Compare to... Zoom r. Draw Trendlines Add Notes Off Remove Remove 12,394 + 6.13-0.05% 12,402.08 12,438.14 12,363.34 142,341,910 Last Today's Change Today's Open Day High Day Low Volume Quotes delayed by at least 20 minutes Click on indicators or comparisons to edit or remove from chart. Mouse over events for more details. 1 of 1 4/5/2011 2:30 PM April 2 041 The Town is proposing a streamlined Town review and approval process for the following reasons: (1) the broad public interest served by the Project; (2) the Town Council has initiated the Project and its ad-hoc Lyford Drive Parking Lot committee has over the course of two years or more developed an intimate knowledge of the Project and has been charged with formulating recommendations to the full Town Council regarding the Project; and (3) the need to preserve scarce public monies by minimizing the expense required of public projects to comply with the Town's laws and regulations, while still meeting the intent thereof. The Town's practice in recent years has been to adopt streamlined development review procedures for major public projects, especially those in which the Town Council would otherwise have no permit review authority, except on appeal. The streamlined approach has previously been used for the Belvedere-Tiburon Public Library, the Tiburon Town Hall, the Tiburon Police Station, and the Ned's Way recreation facility projects. DESCRIPTION OF ORDINANCE PROVISIONS The proposed ordinance would do several things, as discussed below: 1. Exempt the project from provisions of the Tiburon Zoning Ordinance (Title IV, Chapter 16 of the Municipal Code) Discussion: Under current zoning regulations, separate conditional use permit and site plan and architectural review approvals would be required prior to issuance of building permits for the project. The ordinance would exempt the project from all provisions of the Tiburon Zoning Ordinance and create a Town review and decision-making process vested solely with the Town Council. Courtesy referrals to any other reviewing body, such as the Planning Commission or Design Review Board, would be at the option of the Town Council. This procedure is the same used by the Town on prior major public proj ects. The proposed ordinance attempts to conserve scarce public monies and advance the extraordinary public interest associated with this project by focusing and shortening the review process and any associated appeal processes, not by relaxing standards or criteria. To that end, the proposed ordinance states as follows: In conducting its review and evaluation of the Project, the Town Council shall utilize those standards and criteria that the Planning Commission and Design Review Board would have normally applied absent the adoption of this streamlined processing procedure. The proposed ordinance also clarifies that for purposes of compliance with state law, the Town Council shall act as the Town's planning agency with respect to the Lyford Drive Multi-modal Parking Lot project. ov-n lcc it I! I:1 01. 2. Exempt the project from provisions of the Tiburon Encroachment Permit Ordinance (Title V, Chapter 19 of the Municipal Code) and any policies adopted pursuant thereto Discussion: Under current Municipal Code provisions, the project would require an encroachment permit and would be subject to the Town's adopted encroachment permit policy. The ordinance would exempt the project from all encroachment permit provisions of the Municipal Code and any written policies derived from the encroachment permit chapter of the Municipal Code. 3. Establish the Town Council as the sole Town review authority for purposes of review under the California Environmental Quality Act Discussion: This provision clarifies that for Town of Tiburon CEQA review purposes there will be no "advisory" body to the Town Council, and provides the Town Council sole local CEQA review authority. ANALYSIS Town staff has reviewed the proposed ordinance for consistency with the Tiburon General Plan. The General Plan Circulation Element is very direct in its discussion of the Lyford Drive/Tiburon Boulevard parking area, and staff believes that the proposed ordinance would be consistent with and implement relevant General Plan goals and policies. These include the following: Goal C-G: To promote an integrated transportation system, including the preservation and enhancement of transit, in order that residents and visitors can efficiently and conveniently transfer and connect between different transportation modes. Policy C-15: To provide a more attractive entrance to Downtown, the informal parking area on Tiburon Boulevard near Lyford Drive should be beautified while maintaining as much parking as possible. PLANNING COMMISSION REVIEW The Planning Commission held a public hearing on this item on March 9, 2011 and adopted a resolution (Exhibit B) recommending adoption of the ordinance to the Town Council. The Commission received no public correspondence or testimony on the matter. ENVIRONMENTAL DETERMINATION Adoption of this ordinance has no potential to result in a significant impact on the environment pursuant to Section 15061(b)(3) of the CEQA Guidelines and is therefore exempt from the _ requirements of the California Environmental Quality Act. 'I Meeting P.1`€i . 7l11 STAFF RECOMMENDATION Staff recommends that the Town Council: 1. Hold a public hearing on the matter and consider all testimony. 2. Move to read by title only, waiving any additional readings, and introduce the ordinance (Exhibit C) establishing processing procedures for the Lyford Drive Multi-modal Parking Lot project. If first reading is passed, the ordinance will return on the Consent Calendar for adoption at the next regular meeting, and if adopted would become effective on May 20, 2011. EXHIBITS A. Project location drawing. B. Planning Commission Resolution 2011-08. C. Draft Ordinance. Prepared by: Scott Anderson, Director of Community Development S: Wministration l Town CouncibStaff Reports1201 I 1April 6 draftslLyford Drive Streamlining report.doc u C r~THT 0 O h i. Y..N.; ~ Z i~ LW 1 U ~ W O r i k f f rr1 rn i j LL 0 , J~ Ot i `x !1.1 SA \3L' rm 0\ Lf CJ ~ ` l W z; C\j LL cf) T LLI 0 LLI W m LL O U S' 1 W F- N Z LU Q?~ PZ co cc 0 coo ui Z r O C LL cti G+0 ~ .1 I Q s b. t , r I r~ ir' 1;, r \ f ~ err Q 'i Al z i' i' W Z a U O z 0 o' N U r.. bq U N W.1 FBI O x F 0 v z x Q a a Q A 0 GLQ o- w a 9 E- IT, I -7T G'.L-..k-DIT NO. RESOLUTION NO. 2011-08 A RESOLUTION OF THE PLANNING COMMISSION OF THE TOWN OF TIBURON RECOMMENDING TO THE TOWN COUNCIL, AMONG OTHER ACTIONS, ADOPTION OF AMENDMENTS TO THE TIBURON MUNICIPAL CODE (CHAPTER 16, ZONING) IN THE FORM OF AN ORDINANCE ADOPTING STREAMLINED REVIEW AND DECISION-MAKING PROCEDURES FOR THE LYFORD DRIVE MULTI-MODAL PARKING LOT PROJECT WHEREAS, the Town of Tiburon has initiated, among other actions, zoning ordinance amendment procedures to the Town's Zoning Ordinance, codified as Chapter 16 in Title IV of the Tiburon Municipal Code, in order to adopt streamlined review and decision-making procedures for the Lyford Drive Multi-modal Parking Lot project ("Project"); and WHEREAS, the Planning Commission finds that the adoption of the ordinance establishing the streamlined processing procedures has no potential to result in adverse impacts on the environment and is exempt from the requirements of the California Environmental Quality Act (CEQA), pursuant to Section 15061[b(3)] of the CEQA Guidelines; and WHEREAS, notice of the public hearing on this matter was published in a newspaper of general circulation in the Town of Tiburon on February 23, 2011, and other noticing was provided as required by law; and WHEREAS, the Planning Commission held a duly noticed and advertised public hearing on March 9, 2011, at which it considered any testimony received from the public; and WHEREAS, the Planning Commission finds that the proposed ordinance would be consistent with and would implement the relevant goals, policies, and programs of the Tiburon General Plan, as set forth in the Staff Report dated March 9, 2011; and WHEREAS, the Planning Commission finds that the proposed ordinance, specifically at Section 6, is consistent with the objectives and purposes of the Zoning Ordinance. NOW, THEREFORE, BE IT RESOLVED that the Planning Commission hereby recommends that the Town Council adopt an ordinance establishing streamlined review and decision-making procedures for the Lyford Drive Multi-modal Parking Lot Project, as generally set forth in attached Exhibit "A". Tiburon Planning Commission Resolution No. 2011-08 031091201.1 EXHIBIT NO.$ PASSED AND ADOPTED at a regular meeting of-he Planning Commission of the Town of Tiburon held on March 9, 2011, by the following vote: AYES: COMMISSIONERS: Corcoran, Doyle, Frymier, Kunzweiler & Tollini NOES: COMMISSIONERS: None ABSENT: COMMISSIONERS: None VU~ CAT FR R, CHAIR Tiburon Planning Commission ATTEST: SCOTT ANDERSON, SECRETARY Attachments: Exhibit A Tiburon Planning Commission Resolution No. 2011-08 0310912011 2 EXHIBIT "A„ Not for Codification ORDINANCE NO. XXX N.S. AN ORDINANCE OF THE TOWN COUNCIL OF TH N-MAKING TOWN OF TIBURON ESTABLISHING REVIEW AND DECISIO LOT PROCEDURES FOR THE LYFORD DRIVE MULTI MODAL PARKING PROJECT AND EXEMPTING SAID PROJECT FROM THE TIBUROO ZONING AND FROM ORDINANCE, THE TIBURON ENCROACHMENT ORDINANCE, APPLICABLE ENCROACHMENT PERMIT POLICIS The Town Council of the Town of Tiburon does ordain as follows: SECTION 1. PURPOSE AND INTENT. A. The Town of Tiburon is considering a construction project (the "Project") that would provide safety and aesthetic improvements along the Tiburon Boulevard right-of-way and an adjacent Town-owned parcel of land in the vicinity of the Lyford Drive intersection with Tiburon Boulevard. While still in the design stages, the Project proposes to construct a paved parking lot at an existing unpaved, informal parking area along Tiburon Boulevard. The improvements would include constructing a parking lot with approximately 50 stalls, reconstructing an existing bus stop, constructing a modular concrete retaining wall facing the Tiburon Multi-use Path, installing a bicycle rack, installing lighting and landscaping, and conveying drainage to an existing drainage outlet. The total limits of grading are approximately 1.1 acre. The Project would be located on the west (water side) of Tiburon Boulevard, immediately south of the Lyford Drive intersection with Tiburon Boulevard. Approximately half of the Project site is within the Tiburon Boulevard (State Highway 131) right-of-way and half within a Town of Tiburon-owned parcel through which the Tiburon Multi-use path crosses. The Marin County Assessor Parcel Number for the Town of Tiburon owned parcel is 060-061-15. B. The Project would be a public benefit project in terms of improving traffic safety, upgrading the aesthetics of the vicinity, and improving multi-modal transportation facilities and opportunities on the Tiburon Peninsula. The Project site lies partially within and partially contiguous to the Tiburon Redevelopment Project Plan Area. The Town Council and the Redevelopment Agency found that the Project is consistent with the Tiburon Redevelopment Plan. C. The Town and the Redevelopment Agency will partially fund the Project. Accordingly, the Town Council wishes to exercise direct control over the permitting process. Further, the Town wishes to expedite the permitting process to take advantage of prevailing low construction costs. The purpose and intent of this Ordinance is to streamline the Towns normally applicable permit review procedure for the Project by exempting it from certain Town regulations and _ consolidating review and approval processes under the authority of the Town Council. 1 Town of Tiburon Ordinance No. XXX N.S. Effective -442011 SECTION 2. FINDINGS. 1. The Town Council finds that pursuant to the provisions of Tiburon's zoning be ordinance (Tiburon Municipal Code Title IV, Chapter 16), the Project would required to secure various land development permits, including but not limited to conditional use permit approval by the Planning Commission, and site plan an architectural approval by the Design Review Board (DRB), prior to the issuance of a building permit. The Town Council also finds that pursuant to provisions of Tiburon's encroachment ordinance (Tiburon Municipal Code Title V, Chapter 19), the Project would require issuance of an encroachment permit and would be to subject to provisions of Resolution 16-2010 establishing a policy for the issuance of encroachment permits. The Town Council further finds that under the current regulatory framework the Council would have no direct permit authority over the project, except on appeal. 2. The Town Council finds it appropriate to adopt this Ordinance in order to establish a streamlined development review process and decision-making procedure for the Project for the following reasons: (1) the broad public interest served by the Project; (2) the Town Council has initiated the Project and its ad-hoc Lyford Drive Parking Lot committee has intimate knowledge of the Project and has been charged with studying the Project and formulating recommendations to the full Town Council regarding the Project; (3) the need to preserve scarce public monies by minimizing the expense required of public projects to comply with the Town's laws and regulations, while still meeting the intent thereof; (4) the potentially limited time frame in which to expend the grant money and redevelopment funds available for project construction; and (5) current construction costs are unusually low and the Town Council believes that they are likely to rise by the end of the year. 3. The Town Council finds that the Ordinance appears consistent with and would further applicable General Plan goals and programs. These include but are not limited to the following: Goal C-G: To promote an integrated transportation system, including the preservation and enhancement of transit, in order that residents and visitors can efficiently and conveniently transfer and connect between different transportation modes. Policy C-15: To provide a more attractive entrance to Downtown, the informal parking area on Tiburon Boulevard near Lyford Drive should be beautified while maintaining as much parking as possible. 4. The Town Council finds that similar streamlining processes have been adopted by the _ Town for other major public projects, including but not limited to the Belvedere- Tiburon Public Library building, Tiburon Town Hall building, the Tiburon Police Ordinance No. XXX N.S. Effective 442011 2 Town of Tiburon Department building, and the Ned's Way recreation facility. 5. The Town Council further finds as follows: (A) Notices of the public hearings on this matter were published in a newspaper of general circulation in the Town of Tiburon on and , 2011, and other noticing, including mailed notices, were provided as required by law. (B) The Planning Commission held a duly noticed and advertised public hearing on , 2011, at which testimony was received from the public; and recommended of the ordinance to the Town Council. (C) The Town Council held a duly noticed public hearing on , 2011, at which it heard and considered public testimony on this item. (D) The Town Council finds that the proposed ordinance would be consistent with the goals and policies of the Tiburon General Plan, as set forth herein and in the Staff Report dated 52011. (E) The Town Council finds that the proposed ordinance is consistent with the objectives set forth in the Zoning Ordinance. SECTION 3. EXEMPTION FROM ZONING ORDINANCE. The Project shall be exempt from all provisions of the Tiburon Zoning Ordinance, codified as Title IV, Chapter 16 of the Tiburon Municipal Code. For purposes of compliance with state law, the Town Council shall act as the Town's planning agency with respect to the Proi ect. SECTION 4. EXEMPTION FROM ENCROACHMENT ORDINANCE AND POLICIES. The Project shall be exempt from all provisions of the Tiburon Encroachment Ordinance, codified as Title V, Chapter 19 of the Tiburon Municipal Code, and from all encroachment permit policies authorized by and adopted thereupon, including without limitation, Town Council Resolution No. 16-2010. SECTION 5. ENVIRONMENTAL DETERMINATION. Adoption of this ordinance has no potential to result in a significant impact on the environment pursuant to Section 15061(b)(3) of the CEQA Guidelines and is therefore exempt from the requirements of the California Environmental Quality Act. SECTION 6. REVIEW AND DECISION-MAKING PROCEDURES ESTABLISHED. 3 Town of Tiburon Ordinance No. XXX N.S. Effective --/--/2011 Development applications for the Project shall be reviewed pursuant to the following procedures: (A) The Town Council shall hold one or more public meetings to review and, if appropriate, approve or conditionally approve the site plan, architectural, and related drawings for the project. This review shall include but not be limited to site planning, project elevations, landscaping, parking lot layout, and other ancillary improvements. In conducting its review and evaluation of the Project, the Town Council shall utilize those standards and criteria that the Planning Commission and Design Review Board would have normally applied absent the adoption of this streamlined processing procedure. (B) At any time during the process, the Town Council may, as deemed appropriate, refer the Project to the Planning Commission, Design Review Board or any other Council-appointed Committee for that body's expeditious review and comment. Any such referral shall be at the Town Council's sole discretion and such referral shall not confer the role of "advisory" body upon the Board, Commission or Committee to which the Project is referred for review and comment, and comments shall not be binding on the Town Council. (C) The Project shall be subject to review and compliance with the California Environmental Quality Act (CEQA). The Town Council shall be the sole review authority for the Project and there shall be no "advisory" body to the Town Council for CEQA purposes. SECTION 7. SEVERABILITY. If any section, subsection, clause, sentence, or phrase of this Ordinance is for any reason held to be invalid or unconstitutional by a decision of a Court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of the Ordinance. The Town Council of the Town of Tiburon hereby declares that it would have passed this Ordinance, any section, subsection, sentence, clause or phrase thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses, or phrases may be declared invalid or unconstitutional. SECTION 8. EFFECTIVE DATE. This Ordinance shall take effect and be in force thirty (30) days after the date of passage and before the expiration of fifteen (15) days after its passage a copy of the ordinance shall b published, with the names of the members voting for and against it, at least once in a newspaper of general circulation in the Town of Tiburon. This Ordinance was introduced at a regular meeting of the Town Council of the Town of 4 Town of Tiburon Ordinance No. XXX N.S. Effective -442011 Tiburon on , 2011 and was adopted at a regular meeting of the Town Council of the Town of Tiburon on , 2011, by the following vote: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: JEFF SLAVITZ, MAYOR TOWN OF TIBURON ATTEST: DIANE CRANE IACOPI, TOWN CLERK S:IPlanninglPlanning CommissionOafj"Reports120111March 9 meetingVyford parking streamlining ordinance drafl.doc 5 Town of Tiburon Ordinance No. XXX N. S. Effective --/--/2011 Not for Codification ORDINANCE NO. XXX N.S. AN ORDINANCE OF THE TOWN COUNCIL OF THE TOWN OF TIBURON ESTABLISHING REVIEW AND DECISION-MAKING PROCEDURES FOR THE LYFORD DRIVE MULTI-MODAL PARKING LOT PROJECT AND EXEMPTING SAID PROJECT FROM THE TIBURON ZONING ORDINANCE, THE TIBURON ENCROACHMENT ORDINANCE, AND FROM APPLICABLE ENCROACHMENT PERMIT POLICIES The Town Council of the Town of Tiburon does ordain as follows: SECTION 1. PURPOSE AND INTENT. A. The Town of Tiburon is considering a construction project (the "Project") that would provide safety and aesthetic improvements along the Tiburon Boulevard right-of-way and an adjacent Town-owned parcel of land in the vicinity of the Lyford Drive intersection with Tiburon Boulevard. While still in the design stages, the Project proposes to construct a paved parking lot at an existing unpaved, informal parking area along Tiburon Boulevard. The improvements would include constructing a parking lot with approximately 50 stalls, reconstructing an existing bus stop, constructing a modular concrete retaining wall facing the Tiburon Multi-use Path, installing a bicycle rack, installing lighting and landscaping, and conveying drainage to an existing drainage outlet. The total limits of grading are approximately 1.1 acre. The Project would be located on the west (water side) of Tiburon Boulevard, immediately south of the Lyford Drive intersection with Tiburon Boulevard. Approximately half of the Project site is within the Tiburon Boulevard (State Highway 131) right-of-way and half within a Town of Tiburon-owned parcel through which the Tiburon Multi-use path crosses. The Marin County Assessor Parcel Number for the Town of Tiburon owned parcel is 060-061-15. B. The Project would be a public benefit project in terms of improving traffic safety, upgrading the aesthetics of the vicinity, and improving multi-modal transportation facilities and opportunities on the Tiburon Peninsula. The Project site lies partially within and partially contiguous to the Tiburon Redevelopment Project Plan Area. The Town Council and the Redevelopment Agency found that the Project is consistent with the Tiburon Redevelopment Plan. C. The Town and the Redevelopment Agency will partially fund the Project. Accordingly, the Town Council wishes to exercise direct control over the permitting process. Further, the Town wishes to expedite the permitting process to take advantage of prevailing low construction costs. The purpose and intent of this Ordinance is to streamline the Town's normally applicable permit review procedure for the Project by exempting it from certain Town regulations and _ consolidating review and approval processes under the authority of the Town Council. Town of Tiburon Ordinance No. XXX N.S. Effective 442011 1 EX-HIBIT NO. CO SECTION 2. FINDINGS. 1. The Town Council finds that pursuant to the provisions of Tiburon's zoning ordinance (Tiburon Municipal Code Title IV, Chapter 16), the Project would be required to secure various land development permits, including but not limited to conditional use permit approval by the Planning Commission, and site plan and architectural approval by the Design Review Board (DRB), prior to the issuance of a building permit. The Town Council also finds that pursuant to provisions of Tiburon's encroachment ordinance (Tiburon Municipal Code Title V, Chapter 19), the Project would require issuance of an encroachment permit and would be to subject to provisions of Resolution 16-2010 establishing a policy for the issuance of encroachment permits. The Town Council further finds that under the current regulatory framework the Council would have no direct permit authority over the project, except on appeal. 2. The Town Council finds it appropriate to adopt this Ordinance in order to establish a streamlined development review process and decision-making procedure for the Project for the following reasons: (1) the broad public interest served by the Project; (2) the Town Council has initiated the Project and its ad-hoc Lyford Drive Parking Lot committee has intimate knowledge of the Project and has been charged with studying the Project and formulating recommendations to the full Town Council regarding the Project; (3) the need to preserve scarce public monies by minimizing the expense required of public projects to comply with the Town's laws and regulations, while still meeting the intent thereof; (4) the potentially limited time-frame in which to expend the grant money and redevelopment funds available for project construction; and (5) current construction costs are unusually low and the Town Council believes that they are likely to rise by the end of the year. 3. The Town Council finds that the Ordinance appears consistent with and would further applicable General Plan goals and programs. These include but are not limited to the following: Goal C-G: To promote an integrated transportation system, including the preservation and enhancement of transit, in order that residents and visitors can efficiently and conveniently transfer and connect between different transportation modes. Policy C-15: To provide a more attractive entrance to Downtown, the informal parking area on Tiburon Boulevard near Lyford Drive should be beautified while maintaining as much parking as possible. 4. The Town Council finds that similar streamlining processes have been adopted by the Town for other major public projects, including but not limited to the Belvedere- Tiburon Public Library building, Tiburon Town Hall building, the Tiburon Police Town of Tiburon Ordinance No. XXX N.S. Effective 442011 2 Department building, and the Ned's Way recreation facility. 5. The Town Council further finds as follows: (A) Notices of the public hearings on this matter were published in a newspaper of general circulation in the Town of Tiburon on February 23, 2011 and March 23, 2011, and other noticing, including mailed notices, were provided as required by law. (B) The Planning Commission held a duly noticed and advertised public hearing on March 9, 2011, at which testimony was received from the public; and recommended adoption of the ordinance to the Town Council. (C) The Town Council held a duly noticed public hearing on April 6, 2011, at which it heard and considered public testimony on this item. (D) The Town Council finds that the proposed ordinance would be consistent with the goals and policies of the Tiburon General Plan, as set forth herein and in the Staff Report dated April 6, 2011. (E) The Town Council finds that the proposed ordinance is consistent with the objectives set forth in the Zoning Ordinance. SECTION 3. EXEMPTION FROM ZONING ORDINANCE. The Project shall be exempt from all provisions of the Tiburon Zoning Ordinance, codified as Title IV, Chapter 16 of the Tiburon Municipal Code. For purposes of compliance with state law, the Town Council shall act as the Town's planning agency with respect to the Proj ect. SECTION 4. EXEMPTION FROM ENCROACHMENT ORDINANCE AND POLICIES. The Project shall be exempt from all provisions of the Tiburon Encroachment Ordinance, codified as Title V, Chapter 19 of the Tiburon Municipal Code, and from all encroachment permit policies authorized by and adopted thereupon, including without limitation, Town Council Resolution No. 16-2010. SECTION 5. ENVIRONMENTAL DETERMINATION. Adoption of this ordinance has no potential to result in a significant impact on the environment pursuant to Section 15061(b)(3) of the CEQA Guidelines and is therefore exempt from the requirements of the California Environmental Quality Act. Town of Tiburon Ordinance No. XXX N.S. Effective --/--/2011 3 SECTION 6. REVIEW AND DECISION-MAKING PROCEDURES ESTABLISHED. Development applications for the Project shall be reviewed pursuant to the following procedures: (A) The Town Council shall hold one or more public meetings to review and, if appropriate, approve or conditionally approve the site plan, architectural, and related drawings for the project. This review shall include but not be limited to site planning, project elevations, landscaping, parking lot layout, and other ancillary improvements. In conducting its review and evaluation of the Project, the Town Council shall utilize those standards and criteria that the Planning Commission and Design Review Board would have normally applied absent the adoption of this streamlined processing procedure. (B) At any time during the process, the Town Council may, as deemed appropriate, refer the Project to the Planning Commission, Design Review Board, or any other Council-appointed Committee for that body's expeditious review and comment. Any such referral shall be at the Town Council's sole discretion and such referral shall not confer the role of "advisory" body upon the Board, Commission or Committee to which the Project is referred for review and comment, and comments shall not be binding on the Town Council. (C) The Project shall be subject to review and compliance with the California Environmental Quality Act (CEQA). The Town Council shall be the sole review authority for the Project and there shall be no "advisory" body to the Town Council for CEQA purposes. SECTION 7. SEVERABILITY. If any section, subsection, clause, sentence, or phrase of this Ordinance is for any reason held to be invalid or unconstitutional by a decision of a Court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of the Ordinance. The Town Council of the Town of Tiburon hereby declares that it would have passed this Ordinance, any section, subsection, sentence, clause or phrase thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses, or phrases may be declared invalid or unconstitutional. SECTION 8. EFFECTIVE DATE. This Ordinance shall take effect and be in force thirty (30) days after the date of passage and before the expiration of fifteen (15) days after its passage a copy of the ordinance shall be published, with the names of the members voting for and against it, at least once in a newspaper of general circulation in the Town of Tiburon. 4 Town of Tiburon Ordinance No. XXX N.S. Effective 442011 This Ordinance was introduced at a regular meeting-of the Town Council of the Town of Tiburon on , 2011 and was adopted at a regular meeting of the Town Council of the Town of Tiburon on , 2011, by the following vote: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: JEFF SLAVITZ, MAYOR TOWN OF TIBURON ATTEST: DIANE CRANE IACOPI, TOWN CLERK S: WministrationlTown CouncihStaff Reports 12011 Wpri16 draflsllyford parking streamlining ordinance draf.doc Town of Tiburon Ordinance No. XXX N.S. Effective 442011 5 TIBURON REDEVELOPMENT AGENCY FEBRUARY 16, 2011 MINUTES CALL TO ORDER Following the regular Town Council meeting on February 16, 2011, Chair Slavitz called the Redevelopment Agency meeting to order at 10:32 p.m. ROIL CALL Boardmember Collins, Boardmember Fredericks, Boardmember O'Donnell, Vice Chair Fraser, Chair Slavitz ORAL COMMUNICATIONS None. BUSINESS MEETING 1. Adoption of Minutes - Adopt minutes of June 16, 2010 meeting (Board Clerk Crane Iacopi) Chair Slavitz asked if there was any public comment on the item. There was none. MOTION: To adopt the June 16, 2010 minutes, as written. Moved: O'Donnell, seconded by Fredericks Vote: AYES: Unanimous 2. Lyford Drive Parking Improvement- Adopt resolution authorizing Executive Director to execute Cooperation and Funding Agreement with Town of Tiburon for project funding (Agency Counsel Danforth) Agency Counsel Danforth gave the report. She said the Tiburon Redevelopment Agency's 1983 Redevelopment Plan described a number of general objectives and specific projects to eliminate physical and economic blight in the Town. These include improvements to Tiburon Boulevard and to parking available to the downtown. At this point, the Agency's outstanding legal obligation consists of creating new affordable housing within the Plan Area and the Agency has restricted funds for that purpose. However, the Agency also possesses a reserve of $290,000. This sum is the unexpended remainder of funds set aside to reimburse the Town for administrative expenses associated with the Agency, according to Agency Counsel. DRAFT Tiburon Redevelopment Agency Minutes #01-2011 February 16, 2011 Page 1 Danforth said that the Town was currently considering a project to improve the right of way area on the south side of Tiburon Boulevard near the intersection with Lyford Drive. She said the area was unsightly, consisting of dirt shoulders on either side of the Boulevard, and generally used for informal parking. She said the current state is particularly unfortunate because almost all visitors to Tiburon by car pass the site immediately before entering the downtown area. Danforth said the project would both beautify this gateway location and improve the parking area, thereby making the site more attractive to visitors. Danforth said the proposed agreement would not obligate the Agency or Town to construct the project. She said that if the Town Council ultimately decided not to approve the Lyford Drive parking project, the Town would refund the Agency contribution to the Agency or retain funds in reserve for other projects or purposes consistent with the objectives of the Tiburon Redevelopment Plan. Danforth said the project was consistent with the objectives of the Tiburon Redevelopment Plan and could be funded by the Agency's $290,000 reserve. She recommended adoption of the resolution by the Board. Chair Slavitz asked if there was any public comment on the item. There was none. MOTION: To adopt the resolution authorizing the execution of the agreement for the Lyford Drive Parking Improvement), as written. Moved: O'Donnell, seconded by Fredericks Vote: AYES: Unanimous 3. Redevelopment Agency Housing Funds - Adopt resolution authorizing Executive Director to execute Cooperation and Funding Agreement with Town of Tiburon for transfer of housing funds (Executive Director Curran/Agency Counsel Danforth) Agency Counsel Danforth said the Tiburon Redevelopment Agency's 1983 Redevelopment Plan had expired and the Agency's sole outstanding legal obligation consisted of creating new affordable housing within the Plan Area. She said the Agency had restricted funds for that purpose, consisting of $862,445.45 in cash and $663,411 in the form of a note from Cecilia Place (collectively, "Housing Fund"). Danforth said the Agency's adopted five-year Implementation Plan provided for the use of the Housing Fund to create affordable housing as required by the Redevelopment Plan and the Town's Housing Element. However, Danforth said the Implementation Plan's proposed sites are currently unavailable, but the Plan provides that the Agency's specific projects and program may vary from those outlined therein to reflect unpredictable constraints and opportunities. According to Danforth, the extraordinary cost of land acquisition and construction in the Town rendered the monies available in the Housing Fund insufficient to create the necessary affordable _ housing. As a further constraint, the Governor's proposed budget contains the possibility that the Redevelopment Agency might be terminated before it can fulfill its housing obligation. Danforth DRAFT Tiburon Redevelopment Agency Minutes #01-2011 February 16, 2011 Page 2 said that staff recommended a partnership with another agency with resources and expertise in the field to meet these challenges and to meet the Town and Agency's legal housing requirements. The Marin Housing Authority has indicated a willingness to enter into an agreement with the Agency to use the funds to implement an affordable housing program consistent with the Tiburon Redevelopment Plan and state law, subject to the direction of the Town. She said the Town would be a party to the agreement to ensure effective planning and policy oversight, and in the event that the Executive Director is unable to negotiate an acceptable agreement with the Authority, the Director would be authorized to negotiate and execute a similar agreement with an experienced non-profit developer. Danforth said that staff recommended that the Board adopt the resolution authorizing the Executive Director to Negotiate and Execute a Cooperation Agreement with the Town of Tiburon and the Marin Housing Authority. Executive Director Curran discussed the somewhat urgent nature of the proposal. She said that on March 1 or 2, the State of California might enact legislation terminating redevelopment agencies and that any existing redevelopment funds would no longer be available to the Town. She said that the language in the agreement was based on a report written by the General Counsel of the League of California Cities, an organization that was carefully following the state budget developments. Curran said that the Marin Housing Authority had expressed its commitment to ensuring that the Tiburon RDA dollars would be used for project in Tiburon, if the agreement went forward. Boardmember O'Donnell asked what would happen if current housing laws changed and affordable housing became a "shared" responsibility rather than a city by city obligation. In this event, as well, Agency Counsel Danforth said that the Town did not stand to lose anything. Executive Director Curran noted that while a number of cities had already taken action and entered into similar agreements to protect their redevelopment dollars, she acknowledged that there was no guarantee that the actions would not be challenged. She said that it seemed to be the safest course of action at this time, and that the Agency would have gained some security over control of its funds. Agency Counsel Danforth said the Agency might add a reverter clause to the agreement that stated if no feasible project were found, the money would return to the Agency. On the other hand, Danforth said that the Agency needed the Marin Housing Authority to manage its affordable housing. Boardmember Fredericks said that the Marin Housing Authority seemed a safe place for the monies to reside and noted that the agreement required the monies to be spent in Tiburon, in any event. DRAFT Tiburon Redevelopment Agency Minutes #01-2011 February 16, 2011 Page 3 Boardmember O'Donnell asked if the Tiburon Redevelopment Agency would eventually be disbanded. Town Manager Curran said that eventually, it would be disbanded. Chair Slavitz asked if there was any public comment on the item. There was none. MOTION: To adopt the resolution, as written. Moved: O'Donnell, seconded by Fraser Vote: AYES: Unanimous ADJOURNMENT There being no further business before the Tiburon Redevelopment Agency, Chair Slavitz adjourned the meeting at 10:47 p.m. JEFF SLAVITZ, CHAIR TIBURON REDEVELOPMENT AGENCY ATTEST: DIANE CRANE IACOPI, BOARD CLERK DRAFT Tiburon Redevelopment Agency Minutes #01-2011 February 16, 2011 Page 4 K k)`~-Z TIBURON REDEVELOPMENT AGENCY MARCH 2, 2011 MINUTES CALL TO ORDER Following the regular Town Council meeting on March 2, 2011, Chair Slavitz called the Redevelopment Agency meeting to order at 8:55 p.m. ROLL CALL Boardmember Collins, Boardmember Fredericks, Boardmember O'Donnell, Vice Chair Fraser, Chair Slavitz. ORAL COMMUNICATIONS None. BUSINESS MEETING 1. Cecilia Place - Recommendation to authorize the Town Manager to Negotiate and Execute a Subordination, Non-Disturbance and Attornment Agreement to facilitate installation of photovoltaic panels on Cecilia Place (Agency Counsel Danforth) Agency Counsel Danforth gave the report. She said that the Tiburon Redevelopment Agency and the Ecumenical Association for Housing ("EAH") had partnered together in the 1990s to create the Cecilia Place housing project. The Town initially loaned EAH the amount of $339,149 for the project in 1995, which amount the parties increased to $751,522 in 1996. She said that the debt is secured by a deed of trust, also amended in 1996 to reflect the increased amount of the Note. According to Danforth, the Note's outstanding unpaid balance at this time is $663,411. Ms. Danforth said that EAH has entered into two contracts with Helio Micro Utility to install photovoltaic panels on its properties in Marin County (collectively, the "Agreement"). Under this agreement, Helio will install the panels on each property without cost to the project, provided that the project purchases the power generated from those panels from Helio. EAH has advised staff that the cost of the energy purchased from Helio will be less than PG&E would charge for a comparable about. Moreover, EAH will have the option to purchase the panels at little or no cost after five years. Danforth went on to explain that Helio would retain ownership of the panels unless and until they are purchased. Accordingly, Helio requires that its agreement with EAH be binding on DRAFT Tiburon Redevelopment Agency Minutes #02-2011 March 2, 2011 Page I future owners, including in the event of foreclosure. EAH requests that the Town agree to subordinate its deed of trust to Helio's right of access to the property and agree to be bound by the Agreement in the event that the Town takes title to the property. Danforth said that staff believes that it is very unlikely that the Agency would ever succeed to the Cecilia Place property. Moreover, the proposed transaction appears to be very favorable to the project and would not adversely affect the value of the Agency's security interest. Accordingly, staff recommends that the Council approve the agreement, subject to one change: the addition of a paragraph clarifying that approval of the agreement does not limit the Town's discretion with respect to any permits or approvals required for the installation of the panels under the Town's Municipal Code. Councilmember Collins recommended a modification to the language in the agreement regarding the three-day notice to vacate the premises, in the event of a default. He said that it seemed like too short of a turnaround time in which to act, under any circumstances, and especially in dealing with several agencies. Council concurred with this recommendation and directed staff to amend this provision to extend the Town's time to respond. In response to additional questions from Council, Agency Counsel Danforth explained that the program would not directly benefit the residents of Cecilia Place, except to the extent that it would lower over-all costs for the Homeowners Association. The program is not offered by Marin Clean Energy. Chair Slavitz opened the meeting to public comment on the above item. There was no public comment. Mayor Slavitz closed the public comment period. MOTION: To authorize negotiation and execution of the above agreement with the Marin Housing Authority, as amended. Moved: Collins, seconded by Fredericks Vote: AYES: Unanimous ADJOURNMENT There being no further business before the Tiburon Redevelopment Agency, Chair Slavitz adjourned the meeting at 9:00 p.m. JEFF SLAVITZ, CHAIR TIBURON REDEVELOPMENT AGENCY ATTEST: DIANE CRANE IACOPI, BOARD CLERK DRAFT Tiburon Redevelopment Agency Minutes #02-2011 March 2, 2011 Page 2 r3' :f TOWN OF TIBURON Town Council Meeting 1505 Tiburon Boulevard April 6, 2011 _ AcTenda Item: Tiburon, CA 94920 b N4 STAFF REPORT To: Board of Directors, Tiburon Redevelopment Agency From: Administrative Services Department Subject: Recommendation to Accept FY 2010 Annual Financial Audit Reviewed By: Background Attached are the Audited Financial Statements for the Tiburon Redevelopment Agency for the fiscal year ended June 30, 2010. The audit was performed by the certified public accounting firm of Marcello & Company in accordance with auditing standards generally accepted in the United States. The Redevelopment Agency is a separate legal entity subject to oversight by the Town Council. The Town is financially accountable for the Agency. The Redevelopment Agency is a component unit of the Town and the financial data of the Redevelopment Agency is included in the Town's audited financial statements for the fiscal year ended June 30, 2010. As background, The Tiburon Redevelopment Agency was created in 1983 under provisions of the Community Redevelopment Law primarily to assist in the clearance and rehabilitation of areas detennined to be in declining condition in the Town of Tiburon. The Agency will expire when the Town's low/moderate income housing requirements have been met. The Town currently needs to develop four additional units of low-income housing within the RDA boundaries to meet the housing requirements. The Town's recently adopted Housing Element designates several privately owned sites within the RDA project area as affordable housing sites and commits the RDA funds to assist with the development of affordable housing on these sites. Development of any one of these sites would meet the RDA's requirement for affordable housing. Recommendation Staff recommends that the Board of Directors: Move to accept the Audited Annual Financial Report for the Tiburon Redevelopment Agency for the fiscal year ended June 30, 2010. Exhibit 1. Audited Financial Statements of the Tiburon Redevelopment Agency for the period ended June 30, 2010 Prepared by: Heidi Bigall, Director of Administrative Services THE TIBURON REDEVELOPMENT AGENCY California A Component Unit of the Town of Tiburon Annual Financial Report Year Ended June 30, 2010 THE TIBURON REDEVELOPMENT AGENCY A component unit of the Town of Tiburon Table of Contents INDEPENDENT AUDITOR'S REPORT 1 GOVERNMENT-WIDE FINANCIAL STATEMENTS Statement of Net Assets 2 Statement of Activities 3 FUND FINANCIAL STATEMENTS Balance Sheet - Governmental Funds 4 Statement of Revenue, Expenditures, and Change in Fund Balances - Governmental Funds 5 Notes to Financial Statements 6-11 REQUIRED SUPPLEMENTARY INFORMATION Budgetary Comparison Information 12 OTHER REPORTS Independent Auditor's Report on Compliance with Audit Guidelines for California Redevelopment Agencies 13 MARCELLO & COMPANY CERTIFIED PUBLIC ACCOUNTANTS 2701 Cottage Way, Suite 30 / Sacramento, California 95825 / 916.979.9079 INDEPENDENT AUDITOR'S REPORT Members of the Tiburon Redevelopment Agency Town of Tiburon, California We have audited the accompanying basic financial statements of the governmental activities, which is comprised of two major funds, of the Tiburon Redevelopment Agency (the Agency), a component unit of the Town of Tiburon, California, as of and for the year ended June 30, 2010, as listed in the table of contents. These financial statements are the responsibility of the Agency's management. Our responsibility is to express an opinion on these basic financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and Guidelines for Compliance Audits of California Redevelopment Agencies issued by the State Controller's Office, Division of Local Government Fiscal Affairs. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the basic financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the basic financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall basic financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the governmental activities and each major fund of the Tiburon Redevelopment Agency, as of June 30, 2010, and the results of its operations for the year then ended in conformity with accounting principles generally accepted in the United States of America. The Agency has not presented management's discussion and analysis that the Governmental Accounting Standards Board (GASB) has determined is necessary to supplement, although not required to be part of, the basic financial statements. The budgetary comparison information on page 12 is not a required part of the basic financial statements but is supplementary information required by accounting principles generally accepted in the United States of America. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation of the required supplementary information. However, we did not audit the information and express no opinion on it. In accordance with Government Auditing Standards, we have also issued our report dated September 18, 2010, on our consideration of the Agency's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grants. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit. C~-~w Certified Public Accountants Sacramento, California September 18, 2010 GOVERNMENT-WIDE FINANCIAL STATEMENTS THE TIBURON REDEVELOPMENT AGENCY A component unit of the Town of Tiburon Statement of Net Assets June 30, 2010 Governmental Activities ASSETS Cash and investments Accrued interest receivable Note receivable - noncurrent Total assets LIABILITIES Accounts payable Total liabilities NET ASSETS Restricted for Senior Housing Project loan Unrestricted Total net assets The accompanying notes are an integral part of these financial statements $ 1,153,272 1,521 663,411 1,818,204 2,500 2,500 663,411 1,152,293 $ 1,815,704 2 THE TIBURON REDEVELOPMENT AGENCY A component unit of the Town of Tiburon Statement of Activities Year Ended June 30, 2010 Functions/Programs ERAF contribution to state Community Development Operating Expenses Program Revenues Net (Expense) Revenue (2,500) Total Governmental Activities 2,500 $ 2,500 $ - (2,500) General Revenues: Investment earnings 9,617 Excess ERAF contribution rebate - Property tax revenues - Total general revenues 9,617 Change in Net Assets Net Assets - beginning Net Assets - end of year 7,117 1,808,587 $ 1,815,704 The accompanying notes are an integral part of these financial statements 3 FUND FINANCIAL STATEMENTS THE TIBURON REDEVELOPMENT AGENCY A component unit of the Town of Tiburon Balance Sheet Governmental Funds June 30, 2010 Total Special Capital Governmental Revenue Projects Funds ASSETS Cash and investments $ 861,732 $ 291,540 $ 1,153,272 Receivables: Accrued interest 1,158 363 1,521 Notes 663,411 - 663,411 Total assets $ 1,526,301 $ 291,903 $ 1,818,204 LIABILITIES Accounts payable $ 2,500 $ - $ 2,500 Total liabilities 2,500 - 2,500 FUND BALANCES Unreserved: Designated 663,411 - 6631411 Undesignated 860,390 291,903 1,152,293 Total fund balances 1,523,801 291,903 1,815,704 Total liabilities and fund balances $ 1,526,301 $ 291,903 $ 1,818,204 The accompanying notes are an integral part of these financial statements 4 THE TIBURON REDEVELOPMENT AGENCY A component unit of the Town of Tiburon Statement of Revenue, Expenditures, and Change in Fund Balances Governmental Funds Year Ended June 30, 2010 Total Special Capital Governmental Revenue Projects Funds Revenue Investment earnings $ 7,793 $ 1,824 $ 9,617 Total revenue 7,793 1,824 9,617 Expenditures Administration and planning 2,500 - 2,500 Total expenditures 2,500 - 2,500 Change in Fund Balances 5,293 1,824 7,117 Fund Balances - beginning 1,518,508 290,079 1,808,587 Fund Balances - end of year $ 1,523,801 $ 291,903 $ 1,815,704 The accompanying notes are an integral part of these financial statements 5 THE TIBURON REDEVELOPMENT AGENCY A component unit of the Town of Tiburon Notes to Financial Statements June 30, 2010 The notes to the financial statements include a summary of significant accounting policies and other notes considered essential to fully disclose and fairly present the transactions and financial position of the Agency as follows: Note 1 - Defining the Financial Reporting Entity Note 2 - Summary of Significant Accounting Policies Note 3 - Education Revenue Augmentation Fund (ERAF) Note 4 - Cash and Investments Note 5 - Notes Receivable Note 6 - Stewardship, Compliance and Accountability 6 THE TIBURON REDEVELOPMENT AGENCY A component unit of the Town of Tiburon Notes to Financial Statements June 30, 2010 Note 1- Defining the Financial Reporting Entity The Tiburon Redevelopment Agency of the Town of Tiburon, California (the Agency), is a separate legal entity subject to oversight by the Tiburon Town Council (the Council). As the primary governing unit of the Agency, the Council exercises significant financial and management control over the Agency. Therefore, the Agency is also a component unit of the Town of Tiburon (the Town). In addition to presenting these financial statements of the Agency, the financial data of this component unit has also been combined with the Town's annual financial report for the fiscal year ended June 30, 2010. The Agency was established in July 1983 under the provisions of the California Community Redevelopment Law (Health and Safety Code, Section 33000, et seq.) primarily to eliminate and reduce many aspects of economic, physical, visual and social blight then existing within the Town. The Agency will expire when the Town's housing increments, as defined by the State of California, have been met. The Town needs an additional four units of low-income housing to meet these requirements. Due to the high costs of local real estate, the Agency has not been able to meet this requirement and the continued existence of the Agency is unclear. As a result, the County of Marin has stopped passing through to the Agency, property tax increment revenue to the Agency. The Agency is authorized to finance the Redevelopment Plan with financial assistance from the Town of Tiburon, County of Marin, State of California, United States Government, private developers, or any other public or private source including property tax increments, interest income, and Agency issued notes, bonds or other indebtedness. Note 2 - Summary of Significant Accounting Policies The accounting policies of the Agency conform to accounting principles generally accepted in the United States of America as applicable to governments. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. The following is a summary of the more significant accounting policies: A. Basis of Presentation In June 1999, the GASB issued Statement No. 34, Basic Financial Statements and Management's Discussion and Analysis for State and Local Governments. The Agency adopted the provisions of this statement along with GASB Statement No. 37, Basic Financial Statements and Management's Discussion and Analysis for State and Local Governments: Omnibus (an amendment to GASB Statements No. 21 and No. 34), as of July 1, 2003. In June 2001, GASB issued Statement No. 38, Certain Financial Statement Note Disclosures, to revaluate certain existing disclosure requirements in the context of reporting model statement No. 34. The Agency adopted these provisions as of July 1, 2003. The Financial Statement presentation, required by GASB 34, 37, and 38 provides a comprehensive, entity-wide perspective of the Agency's assets, liabilities, and replaces the fund-group perspective previously required. The Agency follows the "primary government's governmental activities" reporting requirements of GASB No. 34 that provides a comprehensive one-line look at the Agency's financial activities. 7 THE TIBURON REDEVELOPMENT AGENCY A component unit of the Town of Tiburon Notes to Financial Statements June 30, 2010 Note 2 - Summary of Significant Accounting Policies B. Fund Accountinq The accounts of the Agency are organized on the basis of funds, each of which is considered a separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities, fund equity, revenue, and expenditures, as follows: Governmental Funds Special Revenue Funds - these funds account for the proceeds of specific revenue sources that are restricted by law or administrative action for specific purpose expenditures. Within the Agency, this fund is used to account for financial resources to be used for financing development and rehabilitation of low and moderate income housing units (LMI set-aside). Capital Project Funds - these funds account for the financial resources used for the acquisition and/or construction of major capital facilities, as well as being the general operating fund of the Agency. They are used to account for all financial resources except those required to be accounted for in the Special Revenue Fund. C. Measurement Focus and Basis of Accounting Basis of accounting refers to when revenues and expenditures are recognized in the accounts and reported in the financial statements. Basis of accounting relates to the timing of measurement made, regardless of the measurement focus applied. The government-wide financial statements are reported using the economic resources measurement focus and accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements have been met. In the fund financial statements, all governmental funds are accounted for using the modified accrual basis of accounting. Revenues are recognized when they become both measurable and available to finance the expenditures of the current period (susceptible to accrual). Expenditures are recorded in the accounting period in which the related liability is incurred, except that principal and interest payments on general long term debt are recognized when paid. The government-wide financial statement is accounted for on a flow of economic resources measurement focus. This means that all assets and all liabilities (whether current or noncurrent) associated with their activity are included on their statement of net assets. Private sector standards of accounting and financial reporting issued prior to December 1, 1989, generally are followed in the government-wide financial statements to the extent that those standards do not conflict with or contradict guidance of the Governmental Accounting Standards Board. D. Budgetary Accounting The Tiburon Town Council, in its capacity as members of the Agency Board, adopts a budget for the Agency annually, effective each July 1, for all Agency funds. The Board may amend the budget by resolution during the fiscal year. Budgets are prepared on a basis consistent with accounting principles generally accepted in the United States of America. Encumbrance accounting is not employed by the Agency and all appropriations lapse at year end. 8 THE TIBURON REDEVELOPMENT AGENCY A component unit of the Town of Tiburon Notes to Financial Statements June 30, 2010 Note 2 - Summary of Significant Accounting Policies (concluded) E. Net Assets In the government-wide financial statements, net assets are classified as either restricted or unrestricted: • Restricted net assets - Restricted net assets include resources that the Agency is legally or contractually obligated to spend in accordance with restrictions imposed by external third parties, such as property tax increment revenue. • Unrestricted net assets - Unrestricted net assets represent resources derived from sources such as rental income and developer fees. These resources are used for transactions relating the general operations of the Agency, and may be used at the discretion of the governing board to meet current expenses for any purpose. F. Property Tax Increment Revenue The Agency does not have the authority to levy tax, but receives property tax increment revenue directly from the County of Marin. Tax increment is the additional property tax revenue created in a project area, which exceeds the base year (year of Plan adoption) value because of improvements and reassessments. Property tax increment revenue is recognized when measurable and collectible. The Agency did not receive property tax increment revenue in the current fiscal year. G. Interfund Transactions "Operating transfers in" and "Operating transfers out" on the Statement of Revenues and Expenditures are restricted to transfers within the funds and/or projects of the agency. "Transfers to" or "transfers from" the legislative body of the agency are reported as appropriate revenue or expenditure line items. H. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenditures during the reporting period. Actual results could differ from those estimates. Major Funds In accordance with GASB Stmt. No. 34, paragraph 76, the Agency has elected to report its two funds as major funds because they believe these funds are particularly important to financial statement users. Note 3 - Education Revenue Augmentation Fund (ERAF) The State of California required redevelopment agencies to shift property tax revenues to K-12 schools and community colleges in prior years with the promise of future repayment. The Agency received no ERAF reimbursements from the State during the fiscal year. 9 THE TIBURON REDEVELOPMENT AGENCY A component unit of the Town of Tiburon Notes to Financial Statements June 30, 2010 Note 4 - Cash and Investments Cash and investments as of June 30, 2010 are classified in the accompanying financial statements as follows: Statement of Net Assets: Cash and investments $1,153,272 Cash and investments are comprised of the followinq: Deposits with financial institution - checking account $ 11,996 Investment in Local Agency Investment Fund (LAIF) 1,141,276 Total cash and investments $ 1,153,272 Investment in State Investment Pool The Agency is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated by the California Government Code under the oversight of the Treasurer of the State of California. The fair value of the Agency's investment in this pool is reported in the accompanying financial statements at amounts based upon the Agency's pro-rata share of the fair value provided by LAIF for the entire LAIF portfolio (in relation to the amortized cost of that portfolio). The balance available for withdrawal is based on the accounting records maintained by LAIF, which are recorded on an amortized cost basis. Annual reports of the Local Agency Investment Fund may be obtained from the California Treasurer's web site at www.treasurer.ca.gov. Disclosures Relating to Interest Rate Risk Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. Information about the sensitivity of the fair values of the Agency's investments to market interest rate fluctuations is provided by the following table that shows the maturity date and yield of each investment: Maturity / Yield State investment pool (LAIF) $ 1,141,276 7.2 months average maturity, 0.56% yield Disclosures Relating to Credit Risk Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. LAIF does not have a rating provided by a nationally recognized statistical rating organization. Concentration of Credit Risk The investment policy of the Agency contains limitations on the amount that can be invested in any single issuer as follows: 5% for negotiable certificates of deposit and commercial paper, 15% for money market funds, 20% for federal agencies and U.S. GSEs, and no limit for U.S. Treasury Securities and LAIF. There are no investments in any single issuer that represent 5% or more of total Agency investments. Nearly 99% of the Agency's investments at year end were invested in LAIF. Custodial Credit Risk Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. The California Government Code and the Agency's investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits, other than the following provision for deposits: 10 THE TIBURON REDEVELOPMENT AGENCY A component unit of the Town of Tiburon Notes to Financial Statements June 30, 2010 Note 4 - Cash and Investments (continued) The California Government Code requires that a financial institution secure deposits made by state or local governmental units by pledging securities in an undivided collateral pool held by a depository regulated under state law (unless so waived by the governmental unit). The market value of the pledged securities in the collateral pool must equal at least 110% of the total amount deposited by the public agencies. California law also allows financial institutions to secure Agency deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public deposits. At June 30, 2010 the Agency had $-0- that was not covered by depository insurance but collateralized by either marketable securities, first trust deed mortgage notes, or a combination of both. The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty (e.g., broker-dealer) to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in the possession of another party. The California Government Code and the Agency's investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for investments. With respect to investments, custodial credit risk generally applies only to direct investments in marketable securities. Custodial credit risk does not apply to a local government's indirect investment in securities through the use of mutual funds or government investment pools (such as LAIF). Note 5 - Notes Receivable At June 30, 2010, the Agency owned $663,411 in notes receivable, due from Cecilia Place Homes Limited Partnership; a California limited partnership (the Developer). The notes are secured by Deeds of Trust and are due on March 31, 2027, consisting of the following: Note receivable from Developer, bearing interest at 3% $ 439,149 Note receivable from Developer, non-interest bearing 224,262 $663,411 The interest receivable related to the notes as of June 30, 2010 was $122,415, which is not reported in the accompanying financial statements because payment by the Developer to the Town is contingent upon the partnership's surplus cash availability. The Ecumenical Association for Housing, a nonprofit corporation, completed the Cecilia Place Senior Housing Improvement Project in 1997. The Agency's housing set-aside fund provided the funds for a portion of the project's site and building construction improvements. In addition, the Agency loaned the Developer $339,149 for predevelopment and construction costs (original loan). The original loan bears simple interest at 3% per annum, commencing on March 31, 1997, and is due thirty years after that date. The Agency increased the original loan amount by $412,373, which increased the total note receivable balance to $751,522 and has been partially paid down. The additional note was originally non-interest bearing, but was later amended to bear a 3% interest rate on $100,000 of the additional note. Note 6 - Stewardship, Compliance and Accountability Management is not aware of any material violations of finance-related legal or contractual provisions in any of the funds of the Agency. 11 REQUIRED SUPPLEMENTARY INFORMATION THE TIBURON REDEVELOPMENT AGENCY A component unit of the Town of Tiburon Budgetary Comparison Information Year Ended June 30, 2010 Resources (inflows) Investment earnings Excess ERAF contribution rebate Property tax increment Total revenue Charges to Appropriations (Outflows) Administration and planning ERAF contribution to State Total expenditures Surplus (deficit) Resources (inflows) Investment earnings Excess ERAF contribution rebate Property tax increment Total revenue Charges to Appropriations (Outflows) Administration and planning ERAF contribution to State Total expenditures Surplus (deficit) Special Revenue Fund Housing Set-Aside Fund Original Final Actual Budget Budget Amounts $ 12,500 $ 12,500 $ 7,793 12,500 12,500 7,793 2,500 2,500 2,500 2,500 2,500 2,500 $ 10,000 $ 10,000 $ 5,293 Capital Projects Fund General Tax Increment Fund Original Final Actual Budget Budget Amounts $ - $ - $ 1,824 - - 1,824 $ - $ - $ 1,824 12 OTHER REPORTS MARCELLO & COMPANY CERTIFIED PUBLIC ACCOUNTANTS 2701 Cottage Way, Suite 30 / Sacramento, California 95825 / 916.979.9079 INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE WITH AUDIT GUIDELINES FOR CALIFORNIA REDEVELOPMENT AGENCIES Members of the Tiburon Redevelopment Agency Tiburon, California We have audited the component unit financial. statements of the Tiburon Redevelopment Agency (the Agency), a component unit of the Town of Tiburon, California, as of and for the year ended June 30, 2010, and have issued our report thereon dated September 24, 2010. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and Government Auditing Standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the component unit financial statements are free of material misstatement. Compliance with laws and regulations applicable to the Agency is the responsibility of the Agency's management. As part of obtaining reasonable assurance about whether the financial statements are free of material misstatement, we performed tests of the Agency's compliance with provisions of laws and regulations contained in Guidelines for Compliance Audits of California Redevelopment Agencies issued by the State Controller Office, Division of Accounting and Reporting. The results of our tests indicated that, with respect to the items tested, the Agency complied, in all material respects, with the provisions referred to in the second paragraph. With respect to items not tested, nothing came to our attention that caused us to believe that the Agency had not complied, in all material respects, with those provisions. This report is intended for the information of the Agency and the State Controller Office and is not intended to be and should not be used by persons other than these specified people. Certified Public Accountants Sacramento, California September 18, 2010 13