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

1. Welcome to this special meeting of the Sleepy Hollow Fire Protection District Agenda 1. Call To Order / Roll Call 2. Public Comment 3. Board Announcement/Updates/Future Agenda 4. Community Center Rebuild Project 5. Adjournment

2. 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

3. Analysis of Recommendations • We will continue to fund and support: • Fire flow improvements, fire pump program, vegetation management, road access, multiple community preparedness programs, charitable contribution • We 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

4. Community Center as Evacuation Site or Shelter From SHFPD “Red Cross Standards for Emergency Shelter and Evacuation Centers” “It 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.”

5. Breakdown of Responses in Latest Public Comment Period • We 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 20 • Number who previously responded 6 • Number of households opposed 8 • Number of new respondents 2 • Number who previously responded 6

6. Second Round of Comments No recommendations were received for new projects. The comments instead generally involved: • Legal Issues • Access for non-SHHA residents • Abandonment of Traditional Services • Safety of Emergency Communications • Methodology of Financial Analysis

7. Legal Questions Fire 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

8. “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 agency’s public purpose

9. Access for Non-SHHA Members • From 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 comments • Last night the SHHA adopted the following resolution in support of equal access and benefit for all SHFPD residents:

10. Abandonment of Services ? • Open Space jurisdiction – fire roads • Fireflow – MMWD & SHFPD hydrants • Disaster Manual left to SHHA • PG&E responsibility for utility hazards • MERA responsible for public safety communications • Consider Today's Presentations: fireflow & hydrants, chipper day, customized prevention brochure, fireroad repair, website,PGE, MERA..

11. Emergency Communications • MERA is radio system for public safety personnel • MERA needs replacement, no RFP for “Next Gen” • MERA policy is compliance with Fed & Regional specs • Will comply with or exceed all standards • MERA system will be fully interoperable • MERA is a redundant system, 9 days emergency fuel • MERA is member of BayRICS & supports specs • First Net is for data, not built, supported by BayRICS • MERA staff impressed with our com plan • Zayo Fiber Optic Loop

12. Fiber Is Not Disaster Proof From EARTHWEEK Aug 1, 2014 “A 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”

13. Quick Simple Lease Calculation Based 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 month Easy to understand when a decent SH or SA home rents in range of $5000 month and when compared to similar Ross Valley office space Multiply $1230/mo. over 60 year life of building with modest 3% annual inflation $ 2,406,669 Cost of unlimited meeting and training space based on current rental of $333/month amortized even more simply at 15% every 5 years $ 580,033 Add cost of emerg. power & water, not in a normal lease $ 250.000 TOTAL $ 3,236,702

14. Lease Analysis Cont. Total “public safety value” of Project to SHFPD residents for non-emergency and emergency uses exceeds $4 million SHFPD’s leasehold value within the Center, excluding any intangible values, exceeds $3 million Local 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

15. Lease Analysis 3 Add 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

16. Next Steps Today we will vote on a resolution to have our attorney draft a letter of intent If the letter of intent is acceptable to both parties, we will begin negotiations for an agreement related to the Project The tentative agreement will be available for public review and comment We will have a public meeting vote on a resolution to adopt the agreement If an agreement is reached, it will not include simply writing a check for $2 Million.

17. What is a Letter of Intent Purpose: 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.

18. 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 plans Term: 60 years Rent: $1.00 per year; no escalations; no pass-throughs of expenses, taxes, etc. Maintenance, Repair, and Service Obligations Key Conditions Other Protections

19. Key Points Continued Form 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