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Home My WebLink AboutTC Min 2018-02-21 TOWN COUNCIL REGULAR MEETING MINUTES Mayor Fraser called the regular meeting of the Tiburon Town Council to order at 7:30 p.m. on Wednesday,February 21,2018, in Town Council Chambers, 1505 Tiburon Boulevard,Tiburon, California. ROLL CALL PRESENT: COUNCILMEMBERS: Fraser, Fredericks, Welner ABSENT: COUNCILMEMBERS: Kulik, Thier PRESENT: EX OFFICIO: Town Manager Chanis, Director of Community Development Anderson, Director of Administrative Services Bigall, Management Analyst Creekmore, Town Clerk Stefani ORAL COMMUNICATIONS There were none. INTRODUCTION OF TOWN STAFF 0 Megan Aceves, Building Permit Clerk Director of Community Development Anderson introduced new Building Permit Clerk Megan Aceves. She said she was pleased to have joined the team. CONSENT CALENDAR CC-1. 6 & 8 Rolling Hills Road—Approve amended parcel map (Community Development Department) MOTION: To adopt Consent Calendar Item 1, as written. Moved: Fredericks, seconded by Welner VOTE: AYES: Fraser, Fredericks, Welner ABSENT: Kulik, Thier ACTION ITEMS AI-1. Town Audit Report - Recommendation to accept and file the Town's FY Basic Financial Statements and Independent Auditor's Report (Director of Administrative Services Bigall) Town Council Minutes 404-2010 Februcay 21, 2018 Page 1 Director of Administrative Services Bigall introduced Ralph Marcello, of Marcello & Company C.P.A.s, to give a brief presentation on the Fiscal Year 2016-17 audit report. Mr. Marcello thanked the Council for the opportunity to perform the audit this year.He said Tiburon suffers a common problem in smaller governments: limited segregation of duties in the accounting department. He said the"tone at the top"is very important in smaller offices, and it is important for management to set the example for employees and emphasize that fraud will not be tolerated. Mr. Marcello also spoke briefly about changing standards that now require governments to report their net unfunded pension liabilities. He said an actuarial report will be required to comply. Mr. Marcello then offered a summary of his findings on the Town's funds.He said auditors compare revenues and expenses over prior years and the trends over the long run. Over the prior year, Mr. Marcello said the Town's general fund revenue, property tax revenue and sales tax revenue all increased, and the transient occupancy tax decreased. To show long run trends, Mr. Marcello compared the Town's 2017 revenue to the Town's 2011 revenue.He summarized a 35%increase in general fund revenue over this time period. Mr. Marcello then directed the Council, staff and the audience to review several of the Town's financial statements included in the audit report. He spoke to the Town's total assets, including infrastructure, and the Town's net pension liability. Mr. Marcello also commented that the Town projected a deficit in this fiscal year's budget, but ultimately did not experience one. Mr. Marcello concluded his report by summarizing a few of the Town's restricted reserve funds. I-Ie said the Town commits to both an operating reserve fund,and a reserve for employee compensated leave. He said the latter exists to ensure the Town could`pay out' all employees at once,if necessary. Councilmember Fredericks asked Mr. Marcello to speak to deferred inflow of resources, and how it relates to liability. Mr. Marcello explained the various factors that go into calculating deferred inflows and outflows, such as actual investment returns,expected investment returns,and changes in assumptions that affect the Town's liability. These amounts that are not recognized as expenses in the current fiscal year are expensed over a five year period and will be displayed in the financial statements as deferred inflow or outflow of resources. Mayor Fraser opened the floor for public comment. Ken Weil asked about the difference in cost in legal fees between fiscal years. Director Bigall explained the Town's legal contract with a law firm,and how the hourly rate differs based on type of work (general services, litigation, specialty work, etc.). Bigall attributed the higher cost of legal services in 2016 to a larger litigation load that year. Ken Well asked for explanation of the Town's franchise fees. Director Bigall said the Town has franchise agreements with Mill Valley Refuse,PG&E and Comcast. She explained the fees are based on their gross receipts, and agreed with Mr. Weil that those fees are likely built into the customer's Town Council Minutes#04-201 February 21, 2018 Page 2 bill. Mr. Marcello added that the Town provides streets and infrastructure to these services. Mayor Fraser closed the floor. MOTION: To accept the Fiscal Year 2016-17 annual financial audit, as prepared by Marcello & Company, C.P.A.'s. Moved: Welner, seconded by Fredericks VOTE: AYES: Fraser, Fredericks, Welner ABSENT: Kulik, Thier AI-2. Rule 20A Credits — Consider authorizing Town Manager to execute agreement to purchase Rule 20A credits from City of Rocklin (Office of the Town Manager) Town Manager Chanis said staff is returning to the Council tonight with a proposed agreement to purchase Pacific Gas and Electric Rule 20A credits from the City of Rocklin to complete an undergrounding project. The Town Manager said the Council had previously authorized staff to negotiate with other jurisdictions to purchase their PG&E Rule 20A credits at an advantageous rate to complete a priority undergrounding project along Tiburon Boulevard, between Lyford and Ned's Way. Chanis said staff is asking the Council tonight to authorize the execution of an agreement with the City of Rocklin to purchase $438,000 worth of Rule 20A credits for $109,000. He added that this would not be enough to complete the project,but felt confident that staff would be able to purchase enough in the next several weeks from other parties to proceed with the project next summer. Councilmember Welner asked for clarification on the cost of the purchase. Chanis explained the difference in final numbers, considering these credits will be purchased for$0.25/credit,rather than the previously estimated $0.50/credit. Mayor Fraser asked if the purchased Rule 20A credits will expire in any way. Chanis confirmed the credits will not expire, and the Town will always be able to use them. Councilmember Welner wondered what the market price is for Rule 20A credits and why the City of Rocklin was willing to sell them. Chanis said the exchange of Rule 20A credits is unregulated,and therefore, difficult to determine a true market price. He said staff has been able to review some transactional history in California, and this is the lowest rate they have observed. Chanis added that these credits are the remainder-of credits Rocklin has, and the City intends to use the funds for a park restoration project. Mayor Fraser opened the floor for public comment. There was none. MOTION: To authorize the Town Manager-to execute a Memorandum of Understanding with the City of Rocklin to purchase $438,000 of PG&E Rule 20A credits for $109,000. Moved: Fredericks, seconded by Welner Town Council Minutes 901-2018 February 21, 2018 Page 3 VOTE: AYES: Fraser, Fredericks, Weiner ABSENT: Kulik, Thier TOWN COUNCIL REPORTS There were none. TOWN MANAGER REPORT The Town Manager reminded the Council of the upcoming Town Council-Staff Retreat scheduled for Friday, March 2. WEEKLY DIGESTS Received. ADJOURNMENT There being no further business before the Town Council of the Town of Tiburon, Mayor Fraser adjourned the meeting at 8:10 p.m. i l JIM FRA ER, AYOR ATTEST: tio,c yu LEA STEFANI, TOWN CLERK Town Council Minutes#04-2018 February 21, 2018 Page 4