Tiburon council lifts moratorium on new undergrounding districts, directs staff to solicit engineering bids for Mar West

The Tiburon Town Council on April 2 voted to lift a moratorium on the formation of new utility undergrounding assessment districts and directed staff to solicit proposals from engineers to prepare final engineer’s reports for the proposed Mar West district.

Staff explained two typical project paths: town‑initiated projects funded with PG&E Rule 28 credits and owner‑initiated Rule 20B projects funded by property owners through assessment districts. Under the town’s older policy, owners had to front substantial subscription deposits to pay for a preliminary engineer’s report; that process was criticized because preliminary estimates sometimes diverged widely from final bids. Staff summarized two recent local projects for context: the Virginia district (early phase costs about $225,477; total project cost about $1.45 million) and the larger Hawthorne project (design and engineering costs about $536,000 with a total project cost about $8.68 million).

Several Mar West residents addressed the council in support. Erin Giacopo, chairperson of the proposed Mar West district, said neighborhood outreach showed strong local support and that her group’s informal pre‑petition returned about 70% support. Resident Alexandra Owen described property‑reliability and public‑safety incidents tied to overhead infrastructure and urged town assistance.

Council members and staff discussed a proposal advanced by an ad hoc council subcommittee to revise the town’s policy. Under that proposed revised framework, the town would bridge the bulk of the cost to complete a final engineer’s report and property owners would contribute a standardized subscription (the subcommittee proposed the greater of $50,000 or 1% of estimated total project cost when petitioning). Staff gave a back‑of‑the‑napkin example for a hypothetical Mar West project estimated at $2.7 million total: at a 15% design cost estimate that would imply $405,000 to produce a final engineer’s report; under the subcommittee approach property owners would contribute $50,000 and the town would bridge the remaining $355,000 and be reimbursed if the district later forms and bonds are issued.

Council debate focused on the risk that the town would bear if owners later vote not to form the district, ways to structure incentives for a final yes vote, and precedents from other cities. Council member Fredericks and others urged caution about a town “bridge loan” that could be lost if a vote failed; alternatives discussed included higher owner subscription deposits, a preliminary neighborhood vote or lien mechanism, or case‑by‑case council decisions on how much the town would front. Former district organizers and council members described the psychology of upfront deposits as key to ensuring only serious petitions proceed.

After discussion, the council voted to lift the moratorium and directed staff to work with the Mar West group and solicit proposals for engineering services so the town and council would have concrete costs available before deciding whether and how much the town should bridge. The motion passed unanimously: Council member Fredericks, Council member Nick Farr, Council member Ryan, Vice Mayor Wellner and Mayor Holly Thier all voted yes.

What the vote does and does not do: the council’s direction authorizes staff to obtain engineering proposals and to work with Mar West on formal boundaries and documentation; it does not commit town funds to any bridge loan. Staff said once the engineering proposals and cost estimates are available, council will consider a specific policy and any financial commitments.

Next steps: Staff will solicit proposals from engineering firms to produce a final engineer’s report, return to council with bids and recommended subscription amounts, and continue coordination with the Mar West neighborhood on petitions and boundary definitions.