Welcome to this special meeting of the Sleepy Hollow Fire Protection District

Agenda

1. Call To Order / Roll Call2. Public Comment3. Board Announcement/Updates/Future Agenda4. Community Center Rebuild Project5. Adjournment

Outreach & Engagement 8 Publicly Noticed Meetings 2 Informational Mass Mailers regarding project and related public meetings Comprehensive Power Point Presentation (2) 30 Day Solicitations of Public Comment Numerous responsive documents Letters of support from public safety officials Numerous private meetings, discussions, emails, Public Record Requests with concerned citizens

Analysis of RecommendationsWe will continue to fund and support:Fire flow improvements, fire pump program, vegetation management, road access, multiple community preparedness programs, charitable contributionWe may be able to support:Backup communications at a new facility, some connection to a fiber loop, trailer caches, safety upgrades to schools, SRA fee We are unable or do not plan to fund:Full time public safety positions, underground of utilities, returning the reserves

Community Center as Evacuation Site or ShelterFrom SHFPD Red Cross Standards for Emergency Shelter and Evacuation CentersIt is the intention of the Sleepy Hollow Fire Protection District (SHFPD) to work with the Sleepy Hollow Homes Association (SHHA) to enter into a pre-disaster agreement with the Red Cross, work with both groups to provide shelter training and regular exercises for interested District volunteers, and provide the support necessary to ensure that a Sleepy Hollow Clubhouse based emergency shelter meets all Red Cross standards.

Breakdown of Responses in Latest Public Comment PeriodWe are not conducting a formal vote. We are evaluating this project based on its merits and the input we receive. We provide this information so that you can get an idea of what we are hearing from residents. We spend most of our time dealing with people who oppose the project, but the very large majority of residents send compelling messages of support. The simple fact is our community wants a dual use community and disaster recovery center.Number of households in support 26 who are new respondents 20Number who previously responded 6Number of households opposed 8Number of new respondents 2Number who previously responded 6

Second Round of CommentsNo recommendations were received for new projects. The comments instead generally involved:Legal IssuesAccess for non-SHHA residents Abandonment of Traditional Services Safety of Emergency Communications Methodology of Financial Analysis

Legal QuestionsFire Protection District Law of 1987 (Cal. Health & Safety Code sections 13800 et seq.) authorizes us to carry out our responsibilities Section 13861: to enter into leases and other agreements for the benefit of the District Section 13862: to provide any services relating to the protection of lives and property Section 13865: to disseminate information and operate educational programs

Gift of Funds Generally prohibited by Article XVI, section 6 of the California Constitution, except when Appropriating funds for a public purpose is legislatively determined to be reasonable, and Even if it provides an incidental benefits to other persons or entities so long as it supports the agencys public purpose

Access for Non-SHHA MembersFrom the start of this project, the SHFPD clearly stated to the SHHA that a new Community Center must provide equal access and benefit to all residents of the District.The SHFPD has consistently stated the same in all of its public commentsLast night the SHHA adopted the following resolution in support of equal access and benefit for all SHFPD residents:

Abandonment of Services ?Open Space jurisdiction fire roadsFireflow MMWD & SHFPD hydrantsDisaster Manual left to SHHAPG&E responsibility for utility hazardsMERA responsible for public safety communicationsConsider Today's Presentations: fireflow & hydrants, chipper day, customized prevention brochure, fireroad repair, website,PGE, MERA..

Emergency CommunicationsMERA is radio system for public safety personnelMERA needs replacement, no RFP for Next GenMERA policy is compliance with Fed & Regional specsWill comply with or exceed all standardsMERA system will be fully interoperableMERA is a redundant system, 9 days emergency fuelMERA is member of BayRICS & supports specsFirst Net is for data, not built, supported by BayRICSMERA staff impressed with our com planZayo Fiber Optic Loop

Fiber Is Not Disaster ProofFrom EARTHWEEK Aug 1, 2014A powerful undersea earthquake off the Alaska Panhandle severed a key fiber-optic line early on July 25, 2014 leaving southeastern Alaska without cellphone and Internet service for nearly 24 hours.The 5.9 magnitude shaking awakened residents in the capital of Juneau and other panhandle communities when it struck at 2:54 a.m. local time. But officials said there were no reports of damage or injuries from the jolt

Quick Simple Lease CalculationBased on analysis done by Mark Carrington of CCNKF, 564 sf of office and storage plus 450 sf of outside land would rent for $1,230 per monthEasy to understand when a decent SH or SA home rents in range of $5000 monthand when compared to similar Ross Valley office space

Multiply $1230/mo. over 60 year life of building with modest 3% annual inflation $ 2,406,669Cost of unlimited meeting and training space based on current rental of $333/month amortized even more simply at 15% every 5 years $ 580,033Add cost of emerg. power & water, not in a normal lease $ 250.000 TOTAL $ 3,236,702

Lease Analysis Cont.Total public safety value of Project to SHFPD residents for non-emergency and emergency uses exceeds $4 millionSHFPDs leasehold value within the Center, excluding any intangible values, exceeds $3 millionLocal experts : Based on current comparables and assuming (i) annual 3% CPI increases, and (ii) historically conservative yields on 30-year Treasuries, the present value of the 60-year leasehold interest is $2.65 million to $3 million (present value= current worth of our $2 million invested at given fixed rate of return)Compare current Rental Agreement: Assuming same 3% CPI increases, cost to SHFPD would be $580,000; but does not allow for SHFPD office, storage, back-ups, or emergency/shelter use

Lease Analysis 3Add locational advantages, operational/organizational efficiencies, preparedness/resource leverage, top of mind/peace of mind values

Add cost savings: No comparable site exists in the District; if one did, acquisition/demolition costs would be prohibitive, neighbors would not tolerate, would be duplicative, and could exhaust our reserves

Bottom line: Community Center site is the best option and no realistic alternative site exists or can be created at a lower cost

Next StepsToday we will vote on a resolution to have our attorney draft a letter of intentIf the letter of intent is acceptable to both parties, we will begin negotiations for an agreement related to the ProjectThe tentative agreement will be available for public review and commentWe will have a public meeting vote on a resolution to adopt the agreementIf an agreement is reached, it will not include simply writing a check for $2 Million.

What is a Letter of IntentPurpose: To facilitate the start of the Project between by identifying the key business and contractual understandings that will form the basis of the final contracts.Advantages:Brevity: Not intended to cover all bases to cover all bases; just enough details to get the parties started. Spells out the parties expectations early on.Non-binding: Demonstrates commitment to pursue contemplated transaction but usually non-binding.Cost-Effective: Surfaces potential deal-breaking issues early in the process; less costly than finding out later after time and money spent on detailed paperwork. Public Notice: For SHFPD, provides preliminary documentation and facilitates public notice.

What are some of the Issues that must Be addressed in the agreement? Form of Use Agreement: Structured similar to a commercial lease agreement

Premises: Configured and square footage as shown in approved plansTerm: 60 yearsRent: $1.00 per year; no escalations; no pass-throughs of expenses, taxes, etc.Maintenance, Repair, and Service ObligationsKey ConditionsOther Protections

Key Points ContinuedForm of Funding Agreement: Structured similar to construction loan agreement

Funds: Disbursed on a proportional or "back-end loaded" basis; SHFPD may withdraw from the Project at specific construction milestones if construction costs are exceeding budget and available funds

Other: SHHA must employ a competitive bidding process; SHFPD can veto contractors and change orders