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It was noted that the resolution before Council approved the documents in form and authorized the issuance of the bonds with a maximum annual interest rate of 6.8%. Given • the current bond market conditions, the sale of the bonds was not expected to move forward at this time. MOTION SECONDED AND CARRIED: Moved by Warshawsky, seconded by Kerr and passed unanimously to adopt Resolution No. 11 "Authorizing Issuance of Limited Obligation Improvement Bonds and directing Related Actions-West Loyola Sewer Assessment District No. I". (Councilmember Rich Larsen recused himself from discussion/vote of this item and had stepped down from the dais). 11. Consideration of Meeting Calendar for Adoption of Proposed Operating and Capital Improvement Budgets Fiscal Year 2009-2010 (Staff.N. Pegueros) Finance Director Nick Pegueros introduced the item to Council. Council reviewed the proposed calendar. There was a consensus of the City Council to schedule the joint study session with the Finance and Investment Committee for the purpose of reviewing the Town budget for fiscal year 2009-2010 on May 28, 2009 at 5:30 p.m. 12 Consideration of Request by Applicant Behrooz Mohazzabi for an Amendment to the Adopted Town of Los Altos Hills Policy, Procedures and Guidelines for Sanitary Sewer Reimbursement Agreements (Staff: R. Chiu) City Engineer/ Public Works Director Richard Chiu introduced the item to Council. He • provided an overview of the proposal being tendered by Mr. Behrooz Mohazzabi to amend the Town's sewer reimbursement policy. Mohazzabi had constructed a sewer main on Burke Road and a standard reimbursement agreement had been prepared for the project by staff. At this time, Mohazzabi was requesting that the Town change the method of reimbursement to require the second connector to the line to be responsible for a reimbursement of 50% of the cost of the sewer; the third connector would be required to make a reimbursement of 33% which would be split equally between the prior two connectors and so on. The Town's current policy distributes the final project costs equally among future users. Chiu noted that reimbursement agreements allow the initial investors to recover some of their construction and associated costs from future users. Mr. Mohazzabi addressed Council. He thanked them for the opportunity to present his proposal. He offered that the new guidelines would provide a greater opportunity for the "pioneers"that build out sewer lines to recover their costs. Mohazzabi suggested that the current methodology of the reimbursement agreements made it too costly and too risky for the "pioneers"who initiated the project forcing them to they carry the burden of sewer extensions given the ability of residents to choose not to connect to the extended line or to connect'at a later date at a lower cost. He offered that his proposal was a much fairer alternative because the costs were shared equally and it would encourage neighbors to work together. Mohazzabi reviewed a case study using his formula for reimbursement. Council thanked Mr. Mohazzabi. • 7 City Council Regular Meeting Minutes February 12,2009