Agenda, regular meeting — Campbell City Council, August 16, 2022 (part 1 of 4)

City Council Agenda
City of Campbell, 70 N. First St., Campbell, California

NOTE: To protect our constituents, City officials, and City staff, the City requests all members of the public follow the guidance of the California Department of Health Servi ces', and the County of Santa Clara Health Officer Order, to help control the spread of COVID -19. Additional information regarding COVID-19 is available on the City's website at www.campbellca.gov.

This City Council Regular meeting will be conducted in person as well as telecommunication and is compliant with provisions of the Brown Act.

The City Council meeting will be live -streamed on Channel 26 or Channel 88, the City's website and on YouTube https://www.youtube.com/user/CityofCampbell for those who only wish to view the meeting.

Those members of the public wishing to provide public comment virtually are asked to register in advance at: https://www.campbellca.gov/signup. After registering, you will receive a confirmation email containing information about joining the meeting. Members of the public may attend the meeting in person at Campbell City Hall - Council Chambers.

Public comment will also be accepted via email at [email protected] prior to the start of the meeting. Written comments will be posted on the website and distributed to the Co uncil. If you choose to email your comments, please indicate in the subject line “FOR PUBLIC COMMENT” and indicate the item number.

AMENDED AGENDA - *Denotes revised items*

REGULAR MEETING OF THE CAMPBELL CITY COUNCIL
Tuesday, August 16, 2022 7:30 p.m.

City Hall Council Chamber – 70 N. First Street

CALL TO ORDER

ROLL CALL

PLEDGE OF ALLEGIANCE

SPECIAL PRESENTATIONS AND PROCLAMATIONS

COMMUNICATIONS AND PETITIONS

ORAL REQUESTS
NOTE: This portion of the meeting is reserved for persons wishing to address the City Council on any matter not on the agenda. Persons wishing to address the Council are requested, but not required to complete a Speaker’s Card. Speakers are limited to two (2) minutes. The law generally prohibits the Council from discussion or taking action on such items. However, the Council may instruct staff accordingly regarding Oral Requests.

COUNCIL ANNOUNCEMENTS

CONSENT CALENDAR
NOTE: All matters listed under consent calendar are considered by the City Council to be routine and will be enacted by one motion. There will be no separate discussion of these items unless a request is made by a member of City Council, City staff, or a member of the public.

Any person wishing to speak on any item on the consent calendar should ask to have the item removed from the consent calendar prior to the time the Council votes to approve. If removed, the item will be discussed in the order in which it appears.

1. Minutes of City Council Executive Session Meeting of August 2, 2022 Recommended Action: Approve the executive session meeting minutes of August 2, 2022.
*2. Minutes of City Council Regular Meeting of August 2, 2022 Recommended Action: Approve the regular meeting minutes of August 2, 2022. *Item 15 of minutes revised

3. Approving Bills and Claims
Recommended Action: Approve the bills and claims in the amount of $1,122,205.84.

4. Investment Report - Quarter Ending June 2022
Recommended Action: That the City Council approve the Investment Report for the quarter ending June 2022 and the report be noted and filed.

5. Approval of the Fiscal Year (FY) 2022 -23 City of Campbell Investment Policy Update (Resolution/Roll Call Vote)
Recommended Action: It is recommended that the City Council adopt a Resolution approving the annual update to the City’s Investment Policy.

6. Ordinance 2286 Adding New Chapter 21.25 and Chapter 20.14 to the Campbell Municipal Code to Implement Senate Bill No. 9 (SB -9) and Amending Various Other Sections of the Municipal Code Pertaining to the Regulation of Accessory Dwelling Units (ADUS)(Ordinance/Roll Call Vote) Recommended Action: That the City Council take second reading of Ordinance 2286 adding new Chapter 21.25 (Two -Unit Housing Developments) and Chapter

20.14 (Urban Lot Splits) to the Campbell Municipa l Code to implement Senat e Bill No. 9 and amending various sections of the Municipal Code pertaining to the regulation of accessory dwelling units (ADUs

7. Acceptance of Donations from the Campbell Police Foundation Recommended Action: It is recommended that the City Council acc ept donations in the aggregate amount of $2,700 from the Campbell Police Foundation for supplies, and support for the Campbell Police Department.

8. Amendment to the Classification and Salary Plan – Public Works Superintendent, Park Maintenance Supervisor, Deputy City Clerk, and Building Division Manager/Building Official (Resolution/Roll Call Vote) Recommended Action: That the City Council adopt the Resolution amending the Classification and Salary Plan.
*9. Settlement Agreement: Unfair Labor Practice C harge - CARP V. City of Campbell

Recommended Action: Authorization for City Manager to approve a settlement agreement for the Unfair Practice Charge in Carpenters Local 405/Northern California Carpenters Regional Council v. City of Campbell. *Attachment A revised

PUBLIC HEARINGS AND INTRODUCTION OF ORDINANCES
NOTE: Members of the public may be allotted up to two (2) minutes to comment on any public hearing item. Applicants/Appellants and their representatives may be allotted up to a total of five (5) minutes for opening statements and up to a total of three (3) minutes maximum for closing statements. Items requested/recommended for continuance are subject to Council’s consent at the meeting.

10. Public Hearing to Consider the Application (PLN -2020-64) of C harles Bronitsky for a General Plan and Zoning Map Amendment to Allow a Portion of 1336 Parsons Avenue to Change in Land Use Designation from Low-Density Residential (Less Than Six U nits Per Gross Acre) to Professional Office, and Zoning Designation from R -1-6 (Single -Family Residential) to P -O (Professional Office) in Order to Facilitate the Transfer of a Portion of a Commercial Parking Lot Built on a Residential Property to an Adjoi ning Commercial Property Located at 1308 Parsons Avenue. the Applicant is Also Requesting Review and Approval of a Conditional Use Permit with Site and Architectural Review to Allow the Conversion of a Single-Family Residence to a Commercial Use and Parkin g Modification Permit to Allow a Reduction in the Number of Required Parki ng Spaces for Property Located at 1308 Parsons Avenue. (Ordinance/Resolutions/Roll Call Vote)
Recommended Action: That the City Council take the following actions: (1) adopt a Resolution, approving a General Plan Amendment to allow a portion of 1336 Parsons Avenue to change in land use designation from Low -Density Residential (Less than Six Units per Gross Acre) to Professional Office; (2) Introduce an Ordinance, approving a Zoning Map Amendment to allow a portion of 1336 Parsons Avenue to change in zoni ng designation from R -1-6 (Single -Family Residential) to P -O (Professional Office); and (3) Adopt a Resolution, approving a Conditional Use Permit with Site and Architectural Review to allow the conversion of a single -family residence to a commercial use a nd Parking Modification Permit to allow a reduction in the number of required parking spaces for property located at 1308 Parsons Avenue.
*11. Public Hearing to Consider Request of N icholas and Andrea Key for Property at 705 El Patio Drive to Rescind the L isting of a Designated Structure of Merit from the Historic Resource Inventory (HRI). (Resolution/Roll Call Vote)
Recommended Action: That the City Council (1) adopt a resolution rescinding the designation of 705 El Patio Drive as a Structure of Merit, subject to payment of a $5,000 in-lieu fee; and (2) add an Historic Preservation Ordinance update to the Community Development Department's FY23 Work Plan.
*Item 11 added

NEW BUSINESS
*12. Approval of MOU's and Unrepresented Agreements and Salary Schedule s (Resolution/Roll Call Vote)

Recommended Action: That the City Council adopt the attached resolutions to:
(1) ratify successor Memorandums of Understandin g (MOU’s), and respective Salary Schedules, effective July 1, 2022, between the City of Campbell an d the Campbell Police Civilian Employees Association (CPCEA), between the City of Campbell and the Northern California Carpenters Regional Council (CARP), an d between the City of Campbell and the Campbell Municipal Employees Association (CMEA); and (2) rev ise the current City Council Resolutions impacting unrepresented Confidential Employees, Classified Management Employees, and Unclassified Management Employees.
*Attachments A – U added

13. Proposed Modifications to the Campbell Community Center Building Use Policy (Resolution/Roll Call Vote)
Recommended Action: That the City Council adopt a resolution approving modifications to the Campbell Community Cente r’s Building Use Policy making it effective August 16, 2022, in coordination with effective fee schedule.

14. Consideration of Cancelling the November 8, 2022 City Council Election and Appointing Nominated Candidates or Proceeding with the Election Recommended Action: The that City Council take one of the following actions:
determine to cancel the Nov ember 8, 2022 City Council election and set a special meeting date to adopt a Resolution of Cancellation or take no action, proceed with the election and allow for write-in candidates.

UNFINISHED BUSINESS

COUNCIL COMMITTEE REPORTS

15. Approve Appointment to the Civic Improvement Commission and Reopen the Recruitment to Allow for Additional Applications
Recommended Action: It is recommended that the City Co uncil approve the recommendation of the Advisory Commissioner Appointment Interview Subcommittee regarding appointment to the Civic Improvement Commission for one four -year term expiring August 2026 and reopen the recruitment, until a sufficient number of applications are received.

16. Council Committee Reports
Recommended Action: That the City Counci l report on activities from their committee assignments.

ADJOURN
IMPORTANT NOTICE: Materials related to an item on this agenda submitted to the City Council after distribution of the agenda packet are available for public inspection with the agenda packet in the lobby of City Clerk’s Office, 70 N. First Street, Campbell, CA 95008, during normal business hours. These materials will also be available on the City website at https://www.ci.campbell.ca.us/agendacenter with the agenda packet following the last item of the agenda, subject to staff’s ability to post the documents prior to the meeting. All documents not posted prior to the meeting will be posted the next business day.

In compliance with the Americans with Disabilities Act, listening assistive devices are available for all meetings held in the City Council Chambers. If you require accommodation, please contact the City Clerk’s Office, (408) 866-2117, at least one week in advance of the meeting.

CITY COUNCIL MINUTES
City of Campbell, 70 N. First St., Campbell, California

CITY COUNCIL EXECUTIVE SESSION
Tuesday, August 2, 2022 – 6:30 p.m.

Ralph Doetsch Conference Room
70 N. First Street, Campbell, California

This City Council meeting was duly noticed pursuant to open meeting requirements of the Ralph M. Brown Act.

CALL TO ORDER
The City Council of the City of Campbell convened this day in special meeting at Campbell City Hall, 70 N. First Street, Campbell California in the Ralph Doetsch Conference Room. Vice Mayor Bybee attended virtually from 773 Loyalton Drive, Campbell, CA 95008.

ROLL CALL
Attendee Name Title Status
Paul Resnikoff Mayor Present
Anne Bybee Vice Mayor Remote
Elizabeth 'Liz' Gibbons Councilmember Present
Susan M. Landry Councilmember Present
Sergio Lopez Councilmember Present

PUBLIC COMMENT

There was no public comment.

MOVE INTO CLOSED EXECUTIVE SESSION
A. Personnel – Pursuant to G.C. Section 54957(b)(1): Public Employee Appointment – City Clerk

B. Litigation – CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION (Paragraph (1) of Subse ction (d) of California Government Code Section 54956.9)
Name of Case: HouseKeys v Garland Yee

C. Real Property

D. Labor Negotiations - Pursuant to G.C. Section 54957.6: Conference with Labor Negotiator - Agency Designated Representatives: City Council, City Manager Brian Loventhal Employee Organizations: Campbell Municipal Employees Association (CMEA); Campbell Police Civilian Employees Association (CPCEA); Campbell Peace Officers’ Associat ion (CPOA); Carpenters; Management 1 Packet Pg. 5
Minutes Acceptance: Minutes of Aug 2, 2022 6:30 PM (CONSENT CALENDAR)

Minutes of August 2, 2022 City Council Meeting Page 2
Employees; and Confidential Employees

The City Council met in Executive Session to discuss items A, B and D. City Manager Brian Loventhal and City Attorney Bill Seligmann were in attendance.

Human Resources Manager Jenny Le-Christensen and Lisa Charbonneau with Liebert Cassidy Whitmore Law Firm were in attendance for item D.

City Council returned to open session. City Attorney Seligmann stated that any reportable actions will be reported at th e next regularly scheduled C ity Council Meeting.

ADJOURN
Mayor Resnikoff adjourned the meeting at approximately 7:25 p.m.

APPROVED:

ATTEST:

Paul Resnikoff, Mayor

Andrea Sanders, City Clerk

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Minutes Acceptance: Minutes of Aug 2, 2022 6:30 PM (CONSENT CALENDAR)

CITY COUNCIL MINUTES
City of Campbell, 70 N. First St., Campbell, California

REGULAR MEETING OF THE CAMPBELL CITY COUNCIL
Tuesday, August 2, 2022 – 7:30 p.m.

City Hall Council Chamber – 70 N. First Street

This City Council meeting was duly noticed purs uant to open meeting requirements of the Ralph M. Brown Act (G.C. Section 54956).

This meeting was recorded and can be viewed in its entirety at www.cityofcampbell.com/agendacenter.

CALL TO ORDER
The City Council of the City of Campbell convened this day in the regular meeting place, the City Hall Council Chamber, 70 N. First St., Campbell, California. Vice Mayor Bybee attended virtually from 733 Loyalton Drive, Campbell, CA 95008.

PLEDGE OF ALLEGIANCE
Mayor Resnikoff led the Pledge of Allegiance.

SPECIAL PRESENTATIONS AND PROCLAMATIONS
There were no special presentations and proclamations.

COMMUNICATIONS AND PETITIONS
There were no communications and petitions.

City Attorney Seligm ann reported at the August 2, 2022 Executive Session , Item B, in the matter of HouseKeys versus Yee, the City Council unanimously authorized the City Attorney’s Office to substitute in for the plaintiff in that case.

ORAL REQUESTS
Richard Culbertson, spoke about the library facility and wished the current t emporary library was larger and had areas to sit and read. He inquired on the status of the Measure O project and thanked the Police Department for all their hard work. 2 Packet Pg. 7
Minutes Acceptance: Minutes of Aug 2, 2022 7:30 PM (CONSENT CALENDAR)

Minutes of August 2, 2022 City Council Meeting Page 2

COUNCIL ANNOUNCEMENTS
City Hall is open to the public for in -person services Monday th rough Friday, from 8:00 am to 5:00 PM. For your convenience, online services such as permits, business license applications and virtual appointments are available online. Visit the city’s website at www.campbellca.gov to view information for all city departments and services available.

I would like to take this opportunity to invite you to the annual State of the City Address. Please join me as I discuss the city’s recent accomplishments, our resilience during and after COVID, and information on upcoming projects including Measure O.

The State of the City address will be held at the Orchard City Banquet Hall on Thursday, September 22. Doors o pen at 5:30 pm with the event beginning promptly at

6. Please R SVP to [email protected] by Thursday, September

15. A Municipal Election will be held November 8, 2022, for voters l iving in Districts 3, 4 and

5. The candidate nomination period will run through August 12, 2022. For more information, please contact the City Clerk’s office at 408 -866-2117 or [email protected].

The Superior Court of California, County of Santa Clara is seeking volunteers to serve on the 2023 Santa Clara County Civil Grand Jury. As part of the Judicial Branch of government, the Civic Grand Jury’s role as a civil investigator, affords citize ns the unique opportunity to contribute to the efficiency of loc al government and to play an integral part in ensuring integrity and efficiency of local government. For more information about this opportunity, please visit the county’s website at www.scscourt.org

Live music i s coming back to the Ainsley House this fall with a series of four fabulous concerts and talented musicians. Fall Garden Concerts will begin September and run through November. Latin Heat wi ll perform September 8 followed by Tony Lindsay on October 23 an d Brian Ho November 13. Registration is required. For additional information, please visit www.campbellmuseums.com.

The Ainsley House is seeking volunteers for greeters and docents. Make a difference in our community today, become a part of history, join the exciting team of volunteers at the Ainsley House. For more information, please visit www.campbellmuseums.com.

Back to School means sharing the road. As t he school year begins, please remember to keep an eye out for young students who are walking or bicycling to school. Pay attention to school zones; avoid distractions, stay alert; take extra precaution when you’re behind or approaching a school bus and be prepared for more traffic and for motorists making sudden stops. Help make our schools safe places to walk and bike.

CONSENT CALENDAR

Mayor Resnikoff asked if anyone wished to remove an item from the Consent Calendar.

Items two, five, and seven were pulled from the Consent Calendar.

The Consent Calendar was considered as follows:
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Minutes Acceptance: Minutes of Aug 2, 2022 7:30 PM (CONSENT CALENDAR)

Minutes of August 2, 2022 City Council Meeting Page 3

1. Minutes of City Council Executive Session Meeting of July 5, 2022 Recommended Action: Approve the Executive Session meeting minutes of July 5, 2022.

This action approves the Executive Session meeting minutes of July 5, 2022.

3. Approving Bills and Claims
Recommended Action: Approve the bills and claims in the amount of $2,528,764.29

This action approves the bills and claims in the amount of $2,528,764.29 as follows: bills and claims checks dated June 20, 2022, in the amount of $262,440.26; payroll checks dated June 23, 2022, in the amount of $64, 409.62; bills and claims checks dated June 27, 2022, in the amount of $527,839.85; bills and claims checks dated July 1, 2022, in the amount of $1,124,649.46; payroll checks dated July 7, 2022, in the amount of $40,586.14; bills and claims checks dated July 8, 2022, in the amount of $249,084.67; and bills and claims checks dated July 11, 2022, in the amount of $259,754.29.

4. Monthly Investment Transactions Report (June 2022)
Recommended Action: That the City Council review and accept the Monthly Investment Transactions Report for June 2022.

This action is to note and file the Monthly Investment Transactions report for June 2022.

6. Ordinance 2285 to Consider a City -Initiated Text Amendment to the Campbell Municipal Code to Add Chapter 11.15 (Parklets in th e Public Right-Of-Way) (Ordinance/Roll Call Vote)
Recommended Action: That the City Council take second reading of Ordinance 2285 adding Chapter 11.15 (Parklets in the Public Right -of-Way) to the Campbell Municipal Code.

Ordinance 2285 adds Chapter 11.15 (Parklets in the Public Right -of-Way) to the Campbell Municipal Code.

8. Accept Improvements for John D. Morgan Park (Budd Avenu e) Improvement Project No. 18 -PP, and Direct Filing of Notice of Completion. (Resolution/Roll Call Vote)
Recommended Action: That the City Council adopt a resolution accepting the improvements for the John D. Morgan Park (Budd Avenue) Improvement Project No. 18-PP (Project); and direct the City Engineer to file the Notice of Completion.

Resolution 12864 accepts improvements for the John D. Morgan Park (Budd Avenue) Improvement Project No. 18 -PP (Project); and directs the City Engineer to file the Notice of Completion.

M/S: Gibbons/Landry – That the City Council approve the Consent Calendar with the exception of items two, five a nd seven. The motion was adopted by the following roll call vote:

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Minutes Acceptance: Minutes of Aug 2, 2022 7:30 PM (CONSENT CALENDAR)

Minutes of August 2, 2022 City Council Meeting Page 4
RESULT: ADOPTED [UNANIMOUS]
MOVER: Gibbons
SECONDER: Landry
AYES: Resnikoff, Bybee, Gibbons, Landry, Lopez

ITEMS CONSIDERED SEPARATE FROM CONSENT

2. Minutes of City Council Regular Meeting of July 5, 2022 Recommended Action: Approve the regular meeting minutes of July 5, 2022.

Councilmember Gibbons clarified her comments for item 15 of the minutes to add “ nor supportive of the RFP scope.”
M/S: Gibbons/Landry - That the City Council approve the regular meeting minutes of July 5, 2022. The motion was adopted by the following roll call vote:

RESULT: ADOPTED [UNANIMOUS]
MOVER: Gibbons
SECONDER: Landry
AYES: Resnikoff, Bybee, Gibbons, Landry, Lopez

5. Reopen the Recrui tment for the Civic Improvement Commission and Extend the Application Deadline
Recommended Action: It is recommended that the City Council approve reopening the recruitment for the Civic Improvement Commission and extend the application deadline until a sufficient number of applications has been received.

Mayor Resnikoff suggested holding interviews with the Civic Improvement Commission incumbent prior to his term ending and then holding interviews with the other applicants after the recruitment has been reopened. Interviewing the incumbent now for consideration of reappointment could potentially prevent the Commission from having only four commissioners.

M/S: Landry/Gibbons - That the Advisory Commissioner Appointment Interview Subcommittee interview the Civic Improvement Commission incumbent for reappointment, after approval of the Subcommittee recommendation the City Council will direct the City Clerk to reopen the recruitment until a sufficient number of applications is received. The motion was adopted by the following roll call vote:

RESULT: ADOPTED [UNANIMOUS]
MOVER: Landry
SECONDER: Gibbons
AYES: Resnikoff, Bybee, Gibbons, Landry, Lopez

7. Acceptance of 8X8 Inc Flock Camera Donation (Resolution/Roll Call Vote) Recommended Action: It is recommended that the City Council adopt a resolution accepting donations in the amount of $10,700 from 8x8 Inc for the purpose of funding two Flock Falcon ALPR cameras.

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Minutes Acceptance: Minutes of Aug 2, 2022 7:30 PM (CONSENT CALENDAR)

Minutes of August 2, 2022 City Council Meeting Page 5
Councilmember Gibbons commended 8X8 for their generous donations, their cooperation with the Police Department and their efforts in bettering the community.

The Councilmembers echoed Councilmember sentiments.

M/S: Gibbons/Landry - That the City C ouncil adopt Resolution 12865 accepting donations in the amount of $10,700 from 8x8 Inc for the purpose of funding two Flock Falcon ALPR cameras. The motion was adopted by the following roll call vote:

RESULT: ADOPTED [UNANIMOUS]
MOVER: Gibbons
SECONDER: Landry
AYES: Resnikoff, Bybee, Gibbons, Landry, Lopez

PUBLIC HEARINGS AND INTRODUCTION OF ORDINANCES

9. Placing the Cost of Abating Hazardous Vegetation on the Property Tax Assessment Roll (Resolution/Roll Call Vote)
Recommended Action: That the City Council adopt a resolution placing the cost of abating hazardous vegetation on the property tax assessment roll.

This is the time and place for a public hearing to consider adopting a resolution placing the cost of abating hazardous vegetation on t he property tax assessment roll.

Senior Planner Fama presented a staff report dated August 2, 2022.

Mayor Resnikoff opened the public hearing and asked if anyone wished to speak.

Seeing no one wishing to speak Mayor Resnikoff closed the public hearing.

M/S: Landry/Lopez – That the City Council adopt Resolution 12866 placing the cost of abating hazardous vegetation on t he property tax assessment roll. The motion was adopted by the following roll call vote:

RESULT: ADOPTED [UNANIMOUS]
MOVER: Landry
SECONDER: Lopez
AYES: Resnikoff, Bybee, Gibbons, Landry, Lopez

10. Public Hearing to Consider Request of Nicholas and Andrea Key for Property at 705 El Patio Drive to Rescind the Listing of a Designated Structure of Merit from the Historic Resource Inventory (HRI). (Resolution/Roll Call Vote)
Recommended Action: That the City Council (1) adopt a resolution rescinding the designation of 705 El Patio Drive as a Structure of Merit, subject to payment of a $5,000 in-lieu fee; and (2) add an Historic Preservation Ordinance update to the Community Development Department's FY23 Work Plan.

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Minutes Acceptance: Minutes of Aug 2, 2022 7:30 PM (CONSENT CALENDAR)

Minutes of August 2, 2022 City Council Meeting Page 6
This is the time and place for a public hearing to consider the request of Nicholas and Andrea Key for Property at 705 El Patio Drive to Rescind the Listing of a Designated Structure of Merit from the Historic Resource Inventory (HRI).

Due to a noticing error staff recommended this item be continu ed to the August 16, 2022 City Council meeting.

Mayor Resnikoff opened the public hearing and asked if anyone wished to speak.

Property owner N icholas Key stated he looks forward to speaking with the Council in two weeks. He stated that his intent was n ot malicious when performing his home alterations. He stated that the alterations could not be undone and that the historic integrity of his home could not be restored.

M/S: Gibbons/Landry – That the City Council continue this item to adopt a resolution rescinding the designation of 705 El Patio Drive as a Structure of Merit, subject to payment of a $5,000 in -lieu fee; and add an Historic Preservation Ordinance update to the Community Development Department's FY23 Work Plan to the August 16, 2022 regular C ity Council meeting. The meeting was adopted by the following roll call vote:

RESULT: ADOPTED [UNANIMOUS]
MOVER: Gibbons
SECONDER: Landry
AYES: Resnikoff, Bybee, Gibbons, Landry, Lopez

11. Public Hearing to Consider a City -Initiated Zoning Code Text Amendment (PLN-2021-187) Adding New Chapter 21.25 (Two -Unit Housing Developments) and Chapter 20.14 (Urban Lot Splits) to the Campbell Municipal Code to Implement Senate Bill No. 9 (SB -9) and Amending Various Other Sections of the Municipal Code Pertaining to the Regulation of Accessory Dwelling Units (ADUs); an Amendment to the Campbell Village Neighborhood Plan and a General Plan Amendment to the San Tomas Area Neighborhood Plan to Incorporate by Refer ence the Proposed SB-9 Implementation Provisions. (Ordinance/Resolutions/Roll Call Vote) Recommended Action: The Planning Commission recommends that the City Council take the following actions (1) Introduce an ordinance to add new Chapter

21.25 (Two-Unit Housing Developments) and Chapter 20.14 (Urban Lot Splits) to the Campbell Municipal Code to implement Senate Bill No. 9 and amending various sections of the Municipal Code pertaining to the regulation o f accessory dwelling units (ADUs); (2) Adopt a resolu tion approving an Amendment to the Campbell Village Neighborhood Plan to incorporate by reference the proposed SB-9 implementation provisions; and (3) Adopt a resolution approving a General Plan Amendment to the San Tomas Area Neighborhood Plan to incorpor ate by reference the proposed implementation SB-9 provisions.

This is the time and place for a public hearing to consider a City-Initiated Zoning Code Text Amendment adding New Chapter 21.25 (Two -Unit H ousing 2 Packet Pg. 12
Minutes Acceptance: Minutes of Aug 2, 2022 7:30 PM (CONSENT CALENDAR)

Minutes of August 2, 2022 City Council Meeting Page 7
Developments) and Chapter 20.14 (Urban Lot Spl its) to the Campbell Municipal Code to implement Senate Bill No. 9 (SB-9) and amending various other sections of the Municipal Code pertaining to the Regulation of Accessory Dwelling Units (ADUs); an Ame ndment to the Campbell Village Neighborhood Plan and a General Plan Amendment to the San Tomas Area Neighborhood Plan to Incorporate by Reference the Proposed SB-9 Implementation Provisions.

Senior Planner Fama presented a staff report dated August 2, 202 2. He stated that SB -9 has two primary functions whic h override single -family zoning by allowing 2-unit housing developments and Urban Lot Splits. The draft ordinance will add new Chapter 21.25 (Two -Unit Housing Developments) and new Chapter

20.14 (Urban L ot Splits) as well as revisions to Chapter 21.23 (Acc essory Dwelling Units.[ADU]) Senior Planner Fama highlighted key provisions which included Objective Subdivision Standards, ADU Allowances, the review and permitting process and to provide an objective e xception process. The proposed ordinance is consistent with actions of the General Plan.

Councilmembers asked general questions related to the staff report, presentation and proposed Ordinance.

Mayor Resnikoff opened the public hearing and asked if anyone wished to speak.

Raja Pallela, Campbell resident wished to have less design restrictions and allow the construction of open terraces which would also provide more open space; and felt that for Urban Lot Splits the City should remove the 40% requirement.

Seeing no one else wishing to speak Mayor Resnikoff closed the public hearing.

Councilmember Gibbons wished staff had done more outreach to the Campbell Village Neighborhood Association and the San Tomas Neighborhood Association regarding ADUs.

After d iscussion, M/S: Gibbons/Lopez – That the City Council take the following actions (1) Introduce Ordinance 2286 to add new Chapter 21.25 (Two-Unit Housing Developments) and Chapter 20.14 (Urban Lot Splits) to the Campbell Municipal Code to implement Senate B ill No. 9 and amending various sections of the Municipal Code pertaining to the regulation of accessory dwelling units (ADUs); (2) Adopt Resolution 12867 approving an Amendment to the Campbell Village Neighborhood Plan to incorporate by reference the propo sed SB -9 im plementation provisions; and (3) Adopt Resolution 12868 approving a General Plan Amendment to the San Tomas Area Neighborhood Plan to incorporate by reference the proposed implementation SB-9 provisions. The motion was adopted by the following roll call vote:

RESULT: ADOPTED [UNANIMOUS]
MOVER: Gibbons
SECONDER: Lopez
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Minutes Acceptance: Minutes of Aug 2, 2022 7:30 PM (CONSENT CALENDAR)

Minutes of August 2, 2022 City Council Meeting Page 8
AYES: Resnikoff, Bybee, Gibbons, Landry, Lopez
Interim City Clerk Sanders read the full title of Ordinance 2286.

M/S: Gibbons/Lopez – That the City Council waive further reading of Ordinance 2286. The motion was adopted by the following roll call vote:

RESULT: ADOPTED [UNANIMOUS]
MOVER: Gibbons
SECONDER: Lopez
AYES: Resnikoff, Bybee, Gibbons, Landry, Lopez

NEW BUSINESS

12. Resolution Affirming Agreement for City Clerk Services (R esolution/Roll Call Vote)
Recommended Action: Adopt a resolution affirming an agreement with Andrea Sanders to the position of City Clerk at an annual salary of $135,532.80.

Human Resources Manager Jenny Le-Christensen presented a staff report dated August 2, 2022.

Council gave congratulatory comments to Andrea Sanders.

M/S: Bybee/Landry – That the City Council adopt Resolution 12869 affirming an agreement with Andrea Sanders to the position of City Clerk at an annual salary of $135,532.80, including the desk item. The motion was adopted by the following roll call vote:

RESULT: ADOPTED [UNANIMOUS]
MOVER: Bybee
SECONDER: Landry
AYES: Resnikoff, Bybee, Gibbons, Landry, Lopez

13. Police Mobile Data Computer Replacement Lease Contract (Resolution/Roll Call Vote)
Recommended Action: That the City Council adopt a Resolution authorizing the City Manager to execute a five year lease purchase contract with Dell Financial Services, for the purchase of Getac V110 Mobile Data Computers and related equipment.

Police Captain White presented a staff report dated August 2, 2022.

Council asked general questions related to the mobile data computers and equipment.

M/S: Gibbons/Landry – That the City Council adopt Resolution 12870 authorizing the City Manager to execute a five year lease purchase contract with Dell Fin ancial Services, for the purchase of Getac V110 Mobile Data 2 Packet Pg. 14
Minutes Acceptance: Minutes of Aug 2, 2022 7:30 PM (CONSENT CALENDAR)

Minutes of August 2, 2022 City Council Meeting Page 9
Computers and related equipment. The motion was adopted by the following roll call vote:

RESULT: ADOPTED [UNANIMOUS]
MOVER: Gibbons
SECONDER: Landry
AYES: Resnikoff, Bybee, Gibbons, Landry, Lopez

14. Campbell Police Department Drone Program Purchase Authorization (Resolution/Roll Call Vote)
Recommended Action: That the City Council adopt a resolution approving the purchase of a DJI Matrice M30T drone and as sociated equipment using the Supplemental Law Enforcement Services Fund (SLESF) grant funds.

Police Captain White presented a staff report dated August 2, 2022. He reviewed the City Unmanned Aircraft Systems (UAS) program. Captain White provid ed information on each City drone purpose and capabilities.

Member of the public, Jim Sullivan spoke in support of the UAS program and thought it was a great tool for officer safety.

Councilmembers expressed support for the drones and the program statin g it was a great way to protect our officers and the public.

M/S: Gibbons/Landry – That the City Council adopt Resolution 12871 approving the purchase of a DJI Matrice M30T drone and associated equipment using the Supplemental Law Enforcement Services Fun d (SLESF) gra nt funds. The motion was adopted by the following roll call vote:

RESULT: ADOPTED [UNANIMOUS]
MOVER: Gibbons
SECONDER: Landry
AYES: Resnikoff, Bybee, Gibbons, Landry, Lopez

UNFINISHED BUSINESS
Due to a potential conflict of interest with Coun cilmember Lop ez’s employer Silicon Valley At Home and their comments on the Housing Element, Councilmember Lopez recused himself from Item 15 and left the meeting.

Council took a 15-minute recess and reconvened at approximately 9:20 p.m.

15. Review Proposed Modifications to Campbell's Plan for Housing Recommended Action: That the City Council take the following action: Direct staff to submit the HCD Draft of Campbell’s Plan for Housing (2023 -2031 Housing Element) to Housing and Community Deve lopment (HCD ) for review incorporating public feedback and proposed modifications.

Senior Planner Rose presented a staff report dated August 2, 2022. Senior Planner Rose reviewed public comments and proposed modifications to the 2 Packet Pg. 15
Minutes Acceptance: Minutes of Aug 2, 2022 7:30 PM (CONSENT CALENDAR) Minutes of August 2, 2022 City Council Meeting Page 10 Housing and Commun ity Development (HCD) Draft and provided an update on the schedule to adopt Housing Element, General Plan and Objective Standards.

Mayor Resnikoff asked if anyone from the public wished to speak.

Member of the public, Jim Sullivan inquired if the Gene ral Plan and conforming zoning would be at the same time as Housing Element and EIR certification.

Raja Pallela, Campbell resident commented that he felt that the fees structure for the construction of a single-family home was on the higher side compared to other local areas and wished the City could review the fees.

Sarah Chapman, Campbell residen t stated tha t parking will be ve ry important to look at in order to not hinder development.

Councilmember Gibbons stated concerns such as the density of units per acre, and the height and massing of the buildings. The example of housing developments provided in the document are not for market rate units.

Consideration should be given for how to maintain the affordable units in the long run. Councilmember Gibbons also provided technical/formatting comments stating that the gray heading color makes it difficult to read the text, some of the appendix’s formatting is not correct such that text is lost. The section that discusses resilience could use something to tie into a Climate Action Plan and Building Codes.

Councilwoman Landry provided comments on formatting relating to fonts, margins, columns and spacing. Councilwoman stated concerns with the proposed 6000 units and if that would be reduced with the current Council.

Councilwoman stated concerns with available parking.

Vice Mayor Bybee stated concerns with the timing of the final document not being during the current council’s term. Vice Mayor Bybee was glad to hear that there is some assurance that the second draft will be submitted to HCD without substantive changes under the current council. She thanked staff for all their hard work.

Mayor Resnikoff commented that he was not concerned with the 6000 units as a larger number gives more flexibility and demonstrates that the City is making a serious effort to find locations to build and meet the housing demand.

Mayor Resnikoff commented on parking and recognized that it is a potential need in the City.

M/S: Landry/Bybee - That the City Council take the following action:

Direct staff to submit the HCD Draft of Campbell’s Plan for Housing (2023-2031 Housing Element) to Housing and Community Development (HCD) for review incorporating public feedback and proposed modifications with review of the document as needed. The motion was adopted by the following roll call vote:

RESULT: ADOPTED [UNANIMOUS]
2 Packet Pg. 16
Minutes Acceptance: Minutes of Aug 2, 2022 7:30 PM (CONSENT CALENDAR)

Minutes of August 2, 2022 City Council Meeting Page 11 MOVER: Landry
SECONDER: Bybee
AYES: Resnikoff, Bybee, Gibbons, Landry
ABSENT: Lopez

COUNCIL COMMITTEE REPORTS

16. Council Committee Reports
Recommended Action: That the City Council report on activities from their committee assignments.

Due to the lateness of the hour Council Committee Reports were not heard.

ADJOURN
Mayor Resnikoff, adjourned the meeting at 10:30 p.m.

APPROVED:

ATTEST:

Paul Resnikoff, Mayor

Andrea Sanders, City Clerk

2 Packet Pg. 17
Minutes Acceptance: Minutes of Aug 2, 2022 7:30 PM (CONSENT CALENDAR) City
Council
Report
TITLE: Approving Bills and Claims

RECOMMENDED ACTION
Approve the bills and claims in the amount of $1,122,205.84.

DISCUSSION
The bills and claims that have been audited and approved by staff for payments made as noted below:

Type Check Date Amount
Bills & Claims July 15, 2022 $451,997.28
Bills & Claims July 18, 2022 $38,236.12
Payroll July 21, 2022 $67,469.78
Bills & Claims July 22, 2022 $312,497.98
Bills & Claims July 25, 2022 $252,004.68
Total $1,122,205.84

FISCAL IMPACT
Requested action does not require a budget adjustment. Adequate funding was available to cover all expenses as listed.

Prepared by:

Roberto Garcia-Acosta, Accounting Clerk
II
Reviewed by:

Item: 3
Category: CONSENT CALENDAR
Meeting Date: August 16, 2022
3 Packet Pg. 18
Norite Vong, Finance Manager
Approving Bills and Claims Page 2 of 2
3 Packet Pg. 19
Approved by:

Brian Loventhal, City Manager

City
Council
Report
TITLE: Investment Report - Quarter Ending June 2022

RECOMMENDED ACTION
That the City Council approve the Investment Report for the quarter ending June 2022 and the report be noted and filed.

DISCUSSION
The City invests primarily in the State of California Local Agency Investment Fund (LAIF) and US Government Agency securities to preserve the safety of the City’s surplus funds while achieving a reasonable return o n its portfolio. The City’s strategy is one of buy -and-hold in which a portion of the portfolio is invested in fixed income securities of varying maturities that provides sufficient cash flow to meet the City’s operational needs.

During the quarter, the total amount of the City’s pooled cash investment portfolio increased $35.6 million to $90.9 million due to $32.2 million in Measure O bond proceeds, $10.6 million in property tax receipts, $3.9 million from a Cal OES Emergency Preparedness grant, and $2. 5 million from A PG&E CEC energy efficiency loan; offset by seasonal expenditures. The City purchased $4.0 million in Federal Farm Credit Bank (FFCB) notes, with interest rates of 4.12% ($1.0 million), 3,49% ($2.0 million) and

3.38% ($1.0 million). Please note that the City pools all cash for investment purposes, but accounts, reports, and tracks investment income, other revenue, and expenditures separately for each fund to properly meet the purpose and restrictions of each funding source. This is common an d appropriate practice used in public agencies to gain the benefit of economies of scale when investing.

All investments are made in accordance with the City's established Investment Policy (Approved by Resolution No. 12748 on August 17, 2021) or as auth orized pursuant to bond covenants. Presented within this report are the following:
· Investment balance & earnings - Qtr. ending, June 2022 · Summary of investments by type - Qtr. ending June 2022 · List of investments by institution - Qtr. ending June 2022 · Reconciliation of pooled cash - Qtr. ending June 2022 · Summary of Total Cash Invested - Qtr. ending June 2022 · Monthly Schedule of Investments - Qtr. ending June 2022 · Cash flow projections for July 2022 thru Dec 2022
· Actual Receipts and Disbursements - Qtr. ending June 2022 Item: 4
Category: CONSENT CALENDAR
Meeting Date: August 16, 2022
4 Packet Pg. 20
Investment Report - Quarter Ending June 2022 Page 2 of 5

Cash Flow

The cash flow projection reflects sufficient funds available to meet the City of Campbell’s anticipated expenditures for July 2022 through December 2022. (Attachment B). When highly liquid LAIF funds ($74.9 million) are combined with actual cash on deposit ($10.5 million), the City has $85.4 million in actual liquid cash balances as of the end of June 30, 2022. The City’s managed liquidity is estimated to decrease to $60.6 million by the end of December 2022 due to net operational spending cash outflows of $13.8 million along with additional outflows of $11 million in new investments purchased (net of $1 million maturing). Sales tax and other economic activity -related receipts are projected to grow year to yea r. Revenues will be offset by large seasonal expenditures including $5.2 million for the City’s FY 2023 CalPERS annual unfunded retirement payment, $1.1 million for the annual Plan JPA insurance premium, $5.2 million in combined TARB, LRB & Measure O debt service payments, along with expected increases in Accounts Payable (AP) activity. As reported, staff has returned to past investment priorities of safety, liquidity, and return, in that order, as the pandemic has abated. In July, the City has already purc hased $7 million in new securities during the first quarter and is planning to reinvest an additional $4 million (net $1 million maturing). This is in contrast to the period during the pandemic, where excess cash was kept in LAIF at higher levels to ensure maximum liquidity, safety, and flexibility due to the higher uncertainty surrounding the pandemic. Nevertheless, staff will continue to monitor the pandemic and make adjustments to the investment strategy as appropriate and fiscally prudent to meet City’s operational needs.
4 Packet Pg. 21
Investment Report - Quarter Ending June 2022 Page 3 of 5

* The City intends to hold treasury/agency securities to maturity or until they are called, as a result this is a paper gain and/or loss that will not be realized. In a decreasing interest rate environment, as we are experiencing, unrealized gains are expected.
** Cash with fiscal agent held for debt service payments. 4 Packet Pg. 22
Investment Report - Quarter Ending June 2022 Page 4 of 5 Prepared by:

John Formale, Accountant
Reviewed by:

Will Fuentes, Finance Director
Approved by:

Brian Loventhal, City Manager
4 Packet Pg. 23
Investment Report - Quarter Ending June 2022 Page 5 of 5 Attachment:
a. Investment Report- Quarter Ending Jun'22
b. Cashflow Projections
c. Actual Receipts and Disbursements
4 Packet Pg. 24
City of Campbell
Quarterly Schedule of Investments -
Jun-22 0.44
Maturities/ Remain Interest Interest # of Int.Recv. Interest Interest Int.Recv. Interest Interest Beginning Purchases/ Calls/ Ending % of % of Par * Market Maturity Days Rate Earned to Days in Beginning Earned Received Ending Received Bal. to Balance Deposits Withdrawals Balance Type Assets Value Value Date To Mat (Annual) Maturity Month Balance This Qtr This Qtr Balance To Date Maturity Local Agency Investment Fund (L.A.I.F.) 42,266,455 42,282,495 (9,650,000) 74,898,950 100.00% 82.39% 74,898,950 73,934,657 N/A N/A 0.861% N/A 30 22,545 98,290 34,495 86,340 1,500,425 N/A Gov't Securities (Custodian-BNY Bank) . - -
Fed. Home Loan Bank (FHLB)_Fixed3130AMCN00 1,000,000 - 1,000,000 7.14% 1.10% 1,000,000 952,520 08/26/24 788 0.500% S 16,274 30 2,089 1,247 2,500 836 5,000 11,274 Fed. Home Loan Bank (FHLB)_Fixed3130AN5H9 1,000,000 1,000,000 7.14% 1.10% 1,000,000 946,440 01/22/25 937 0.700% S 24,567 30 1,755 1,745 - 3,500 3,500 21,067 Fed. Home Loan Bank (FHLB)_Fixed3130ANVB34 1,000,000 1,000,000 7.14% 1.10% 1,000,000 930,250 09/17/25 1,175 0.800% S 32,022 30 647 1,995 - 2,641 4,000 28,022 Fed. Home Loan Bank (FHLB)_Step upUS3130APPG4 1,000,000 1,000,000 7.14% 1.10% 1,000,000 960,850 11/18/24 872 0.350% S 30,528 30 1,275 873 1,750 398 1,750 28,778 Fed. Home Loan Bank (FHLB)_Fixed3130APFH36 1,000,000 1,000,000 7.14% 1.10% 1,000,000 934,800 07/29/25 1,125 0.810% S 30,381 30 1,370 2,019 - 3,390 2,025 28,356 Fed. Home Loan Bank (FHLB)_Fixed3130ANUR94 1,000,000 1,000,000 7.14% 1.10% 1,000,000 935,110 03/21/25 995 0.650% S 22,741 30 525 1,621 - 2,146 3,250 19,491 Fed. Home Loan Bank (FHLB)_Step up3130AQYM92 1,000,000 1,000,000 7.14% 1.10% 1,000,000 982,550 02/28/25 974 1.250% S 37,534 30 1,096 3,116 - 4,212 - 37,534 Fed. Home Loan Bank (FHLB)_Fixed3130AQY490 1,000,000 1,000,000 7.14% 1.10% 1,000,000 976,500 02/27/25 973 2.000% S 60,000 30 1,753 4,986 - 6,739 - 60,000 Fed. Home Loan Bank (FHLB)_Fixed3130AQYN75 1,000,000 1,000,000 7.14% 1.10% 1,000,000 982,350 02/23/24 603 1.750% S 34,760 30 1,534 4,363 - 5,897 - 34,760 Fed. Farm Credit Bank (FFCB)_Fixed3133ENZC7 - 1,000,000 1,000,000 7.14% 1.10% 1,000,000 1,005,100 06/22/26 1,453 4.120% 164,913 7 - 790 - 790 - 164,913 Fed. Farm Credit Bank (FFCB)_Fixed3133ENZE3 - 2,000,000 2,000,000 14.29% 2.20% 2,000,000 2,000,920 12/22/23 540 3.490% 104,604 7 - 1,339 - 1,339 - 104,604 Fed. Farm Credit Bank (FFCB)_Fixed3133ENZG8 - 999,860 999,860 7.14% 1.10% 1,000,000 1,010,130 06/20/25 1,086 3.380% 101,215 8 - 741 - 741 - 101,215 Fed. Home Loan Bank (FHLB)_Fixed3130ALR97 1,000,000 - 1,000,000 7.14% 1.10% 1,000,000 947,440 12/30/24 914 0.625% S 23,476 30 531 1,558 - 2,089 6,250 17,226 Subtotal-Gov't Securities 10,000,000 3,999,860 - 13,999,860 100.00% 15.40% 14,000,000 13,564,960 1.179% 683,015 12,576 26,392 4,250 34,718 25,775 657,240 Corporate Notes
Ally Bank 02007GLA9 250,000 250,000 12.50% 0.28% 250,000.00 250,112 08/08/22 39 2.150% S 16,140 30 870 1,340 - 2,210 13,474 2,666 Capital One Bank 14042TBP1 250,000 250,000 12.50% 0.28% 250,000.00 250,112 08/08/22 39 2.150% S 16,140 30 870 1,340 - 2,210 13,474 2,666 Capital One National Association14042RMT5 250,000 250,000 12.50% 0.28% 250,000.00 250,112 08/08/22 39 2.150% S 16,140 30 870 1,340 - 2,210 13,474 2,666 Goldman Sachs Bank 38149MEK5 250,000 250,000 12.50% 0.28% 250,000.00 250,112 08/08/22 39 2.150% S 16,140 30 870 1,340 - 2,210 13,474 2,666 Morgan Stanley Bank CD 61690URY8 250,000 250,000 12.50% 0.28% 250,000.00 248,594 01/17/23 201 1.850% S 13,900 30 938 1,153 - 2,091 9,263 4,637 Morgan Stanley Private Bank CD61760A5V7 250,000 250,000 12.50% 0.28% 250,000.00 248,594 01/17/23 201 1.850% S 13,900 30 937 1,153 - 2,090 9,263 4,637 Wells Fargo Bank CD 949763R65 250,000 250,000 12.50% 0.28% 250,000.00 248,658 01/17/23 201 1.900% S 14,263 30 950 1,171 1,184 937 9,877 4,386 Wells Fargo Ntl Bk West CD 949495AQ8 250,000 250,000 12.50% 0.28% 250,000.00 248,658 01/17/23 201 1.900% S 14,263 30 950 1,171 1,184 937 9,877 4,776 - - - Subtotal-Corporate Notes 2,000,000 - - 2,000,000 100.00% 2.20% 2,000,000 1,994,954 2.012% * 120,886 7,256 10,009 2,369 14,896 92,177 29,099 Investments under the management of contracted parties:

Trustee: BNY Mellon
2022 MEAS O COI - 217,000 (210,474) 6,526 99.83% 0.01% 6,526 6,526 N/A - N/A 30 - - - - N/A 2016 Lease Revenue Bond Payment908842/44/46 92,101 1 (92,100) 2 0.03% 0.00% 2 2 N/A N/A 0.025% N/A 30 - - - 80 N/A 2016 SA Refunding Debt Service/TARB953554/55/56 944,343 10 (944,343) 10 0.15% 0.00% 10 10 N/A N/A 0.018% N/A 30 - - - - 107 N/A Subtotal-Trust A/C 1,036,444 217,010 (1,246,917) 6,537 100.00% 0.01% 6,538 6,538 N/A 0.330% - (0) - - (0) 228 - Total Portfolio 55,302,899 46,499,365 (10,896,917) 90,905,347 100.00% 90,905,488 89,501,109 Wgt Avg 0.927% 803,901 42,377 134,691 41,113 135,955 1,618,605 686,339 Investment Portfolio Increased / (Decreased) by: 35,602,448$ Weighted Average to Maturity = 122.7 Days % of Wgt Avg Actual Actual
Note: Total Cash Invested Rate/Annual Yield Interest Earned Interest Received S - Semi-Annual Month FY 21-22 FY 20-21 FY 21-22 FY 20-21 Month Wgt Avg FY 21-22 FY 20-21 FY 21-22 FY 20-21 FY 21-22 FY 20-21 Q - Quarterly July 54,363,905$ 36,069,560$ 96.93% 95.97% July Wgt Avg 0.308% 0.973% 14,234 29,811 45,850 135,846 M - Monthly August 52,463,905 55,671,375 97.06% 97.19% August Wgt Avg 0.312% 0.907% 13,877 42,861 11,468 11,527 September 48,863,905 49,423,760 96.56% 91.02% September Wgt Avg 0.326% 0.840% 13,088 32,525 3,932 807 October 48,193,417 46,055,140 98.37% 98.32% October Wgt Avg 0.328% 0.737% 13,148 30,203 30,291 102,100 November 48,693,417 46,205,140 97.47% 97.21% November Wgt Avg 0.339% 0.769% 13,404 26,444 3,307 807 December 48,293,417 47,555,140 96.42% 98.57% December Wgt Avg 0.348% 0.660% 13,934 26,655 781 781 January 56,666,457 54,321,533 98.67% 96.62% January Wgt Avg 0.346% 0.517% 16,632 25,201 34,035 91,062 February 54,766,457 53,519,718 97.09% 96.70% February Wgt Avg 0.463% 0.467% 15,799 19,173 11,645 10,838 March 55,302,899 53,017,582 98.86% 96.98% March Wgt Avg 0.532% 0.425% 24,508 18,998 11,104 729 April 55,250,961 52,873,424 92.68% 92.15% April Wgt Avg 0.653% 0.412% 29,655 17,883 35,301 54,514 May 57,950,961 54,623,423 96.79% 98.35% May Wgt Avg 0.775% 0.390% 38,100 18,109 5,031 781 30-Jun-22 June 90,905,347 56,923,424 89.62% 96.96% June Wgt Avg 0.927% 0.334% 66,936 15,619 781 2,157 30 Average 55,976,254$ 50,521,602$ Average 96.38% Average 96.34% Average 0.471% 0.619% 273,316 303,482 193,526 411,949 Per Governmental Code requirements, this schedule of Investments icomplies with the City of Campbell's Investment Policy, and there are adequate funds available to meet the budgeted expenditures for the next six months. * Market prices are obtained from the monthly investment statements of the various institutions or the City's third-party custodian, BNY Mellon Bank.

Portfolio Balance
invsch10-Jun- Quarterly- for PDF copy
8/2/2022

4.a
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Attachment: Investment Report- Quarter Ending Jun'22 [Revision 1] (Investment Report - Quarter Ending

4.b
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Attachment: Cashflow Projections (Investment Report - Quarter Ending June 2022)

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Attachment: Cashflow Projections (Investment Report - Quarter Ending June 2022)

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Attachment: Cashflow Projections (Investment Report - Quarter Ending June 2022)

4.b
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Attachment: Cashflow Projections (Investment Report - Quarter Ending June 2022)

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Attachment: Cashflow Projections (Investment Report - Quarter Ending June 2022)

4.b
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Attachment: Cashflow Projections (Investment Report - Quarter Ending June 2022)

4.c
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Attachment: Actual Receipts and Disbursements (Investment Report - Quarter Ending June 2022)

4.c
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Attachment: Actual Receipts and Disbursements (Investment Report - Quarter Ending June 2022)

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Attachment: Actual Receipts and Disbursements (Investment Report - Quarter Ending June 2022)

City
Council
Report

TITLE: Approval of the Fiscal Year (FY) 2022-23 City of Campbell Investment Policy Update (Resolution/Roll Call Vote)

RECOMMENDED ACTION

It is recommended that th e City Council adopt a Resolution approving the annual update to the City’s Investment Policy.

BACKGROUND

The investment policy establishes procedures and guidelines by which the City’s surplus funds can be managed in a prudent and fiscally sound manner. The policy encompasses those funds over which the City exercises fiscal control and prioritizes the objectives of public funds management as safety, liquidity and yield, in that order and consistent with guidance provided by the Government Finance Office rs Association (GFOA). It also stipulates allowable and unallowable investment alternatives as well as establishes parameters for selecting broker/dealers and institutions with which the City may do business.

DISCUSSION

The City’s Finance Sub -Committee met on August 9, 2022, to discuss and review the Fiscal Year (FY) 2022-23 Investment Policy. The Investment Policy is updated annually to conform to California Government Code Section 53600 et. seq. Any statutory revisions made during the previous calendar year that impact the City policy are incorporated as necessary. However, there are no required statutory revisions to make to the Investment Policy this fiscal year and staff is also not recommending any other revisions this fiscal year . The recommended Investment Policy for FY 2022-23 is shown as Attachment B. The Finance Sub-Committee agreed with staff’s recommendations on the FY 2022 -23 Investment Policy and recommended it for Council consideration and approval.

The City’s Investment Strategy was also updated to reflect current economic and Item: 5
Category: CONSENT CALENDAR
Meeting Date: August 16, 2022
5 Packet Pg. 35
Annual Investment Policy Update FY 2022-23 Page 2 of 2
financial conditions and is shown as Attachment C. However, please note that staff’s recommended Investment Strategy for FY 2022 -23 is similar to the p rior year with no substantive changes being proposed . The strategy is based on Investment Policy guidelines and was also recommended by the Finance Sub -Committee for Council consideration and approval.

As of June 30, 2022, the City’s investment portfol io was valued at approximately $90.9 million. This was comprised of approximately $74.9 million (82.39%) in LAIF, $14.0 million (15.40%) in US Government Agency securities, and $2.0 million (2.20%) in corporate notes or money market accounts with a small residual balance in our Measure O Cost of Issuance (COI) Account . Almost all these funds are considered “discretionary” investments meaning that the City can invest this amount as it sees fit within the guidelines of the Investment Policy. With a minimum h oldback of at least $21.0 million for cash flow, that leaves up to $69.9 million that can be invested in Agency and other securities (limitation of 75% of portfolio per investment policy). $16.0 million is currently invested outside of LAIF and staff will continue increasing this throughout the fiscal year as fixed income investment rates improve.

FISCAL IMPACT
There is no immediate fiscal impact of either the FY 2022-23 Investment Policy or the Investment Strategy.

Prepared by:

Will Fuentes, Finance Director
Approved by:

Brian Loventhal, City Manager
Attachment:
a. Resolution - FY 2022-23 Investment Policy
b. Investment Policy FY 2022-23
c. Investment Strategy FY 2022-23
5 Packet Pg. 36

RESOLUTION NO.____________________

A RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF CAMPBELL APPROVING THE ANNUAL UPDATE TO THE INVESTMENT

POLICY AND RELATED ADMINISTRATIVE POLICY REVISIONS

WHEREAS, Government Code Section 53646(a)(2) recommends that a statement of Investment Policy be submitted to the City’s legislative body annually for its consideration at a public meeting; and

WHEREAS, there has been submitted to the City Council a statement of the City’s Investment Policy; and

WHEREAS, the Policy and any changes recommended by staff and the Finance Sub-Committee have been reviewed by the City Council and it has been determined that the Fiscal Year (FY) 2022-23 Investment Policy as recommended is acceptable.

NOW, THEREFORE BE IT RESOLVED, by the City Council of the City of Campbell that the FY 2022-23 Investment Policy is hereby approved as submitted.

PASSED AND ADOPTED this ____ day of __________ 2022, by the following roll call vote:

AYES: Councilmembers:

NOES: Councilmembers:

ABSENT: Councilmembers:

APPROVED:

________________________
Paul Resnikoff, Mayor
ATTEST:

_________________________
Andrea Sanders, City Clerk

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Attachment: Resolution - FY 2022-23 Investment Policy (Annual Investment Policy Update FY 2022-23) City of Campbell, California

Investment Policy Date: August 16, 2022

I. PURPOSE

It is the policy of the City of Campbell to invest public funds in a prudent manner which conforms to all statutes governing the investment of public funds while providing security and meeting the daily cash flow needs of the City.

The purpose of this document is to identify the policies guiding prudent investment of the City’s temporarily idle funds and to establish guidelines and objectives for suitable investments including delegati on of authority, prudence, monitoring and reporting, policy review, diversification, eligible securities, safekeeping, collateralization, selection of financial institutions and broker/dealers, glossary of terms, and forms utilized.

II. SCOPE

A. This investment policy shall apply to all financial assets, investment activities, and debt issues of the City of Campbell including the following fund types:

1. General Fund

2. Special Revenue Funds

3. Debt Service Funds

4. Capital Projects Funds

5. Internal Service Funds

6. Trust and Agency Funds

B. The policy does not cover funds held by the Public Employees Retirement System nor funds of the Deferred Compensation program.

III. OBJECTIVES

A. It is the objective of this policy to provide a system which will monitor and forecast revenues and expenditures so that the City can invest temporarily idle funds to the fullest extent possible. The temporarily idle funds shall be invested in accordance with provisions of California Government Code Section 53600 et. seq.

B. The City adheres to conservative investment philosophies including investment of all idle cash, preservation of principal at the risk of yield, maintenance of adequate liquidity to meet anticipated cash flow needs and diversification to a void the risks inherent in over investing in any one asset class.

C. This policy specifically prohibits trading securities for the sole purpose of speculating on the future direction of interest rates. It further prohibits reverse repurchase agreements, use of derivative products, and/or leveraging of the portfolio.

D. The City shall ensure the safety of invested funds by limiting credit and interest rate risks. The three primary objectives of the City's Investment Policy in order of priority are:

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Attachment: Investment Policy FY 2022-23 (Annual Investment Policy Update FY 2022-23) City of Campbell, California

Investment Policy Date: August 16, 2022

1. Safety: Safety of principal is the foremost objective of the City of Campbell.

Safety and the minimizing of risk associated with investing refer to attempts to reduce the potential for loss of principal, interest or a combination of the two. The City ensures safety of its invested idle funds and limits credit and interest rate risks by following these guidelines (all of which are detailed within the body of the Investment Policy):

a. Investing only in those instruments that are generally accepted as safe investment vehicles for local government as authorized by this Policy,

b. Carefully reviewing the qualifications and financial strength of financial institutions and broker/dealers prior to conducting business with them,

c. Diversifying the investmen t portfolio as prescribed within this Policy,

d. Structuring the portfolio such that securities mature to meet the City's cash requirements for ongoing operations, thereby avoiding the need to sell securities on the open market prior to their maturation,

e. Limiting the final maturity of purchased securities to five years; limiting the weighted average maturity of the portfolio to three years, and

f. Ensuring the physical security or safekeeping of the City's investments.

2. Liquidity: Liquidity is the second most important objective of the City's Policy.

Liquidity refers to the ability to convert an investment to cash promptly without loss of principal and minimal loss of interest. For example, this is accomplished by investing either in the Local Agency Investment Fund (LAIF) with same day availability, or investing in securities with active secondary or resale markets.

3. Yield: Yield on the City's portfolio is last in rank among investment objectives. Investments are limited to relatively low risk securities in anticipation of earning a fair return relative to the risk being assumed.

IV. STRUCTURE AND RESPONSIBILITY

A. DELEGATION OF AUTHORITY:

1. The City Council assumes direction over the City’s investments, and assigns management responsibility for the investment program to the Finance Director, who shall serve as Chief Fiscal Officer, and have legal custody of funds. The Finance Director may provide for delegation of his/her responsibilities to other persons under his/her control responsible for investment transactions, including designation of certain portions of the investment portfolio related to debt financing to be administered by professional portfolio administrators, i.e.

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California Arbitrage Management Program (C.A.M.P.) or such other designated administrators approved by the Finance Sub-Committee.

B. POLICY REVIEW:

1. This Investment Policy shall be reviewed and approved annually as recommended by California Government Code Section 53600 et. seq.

C. RESPONSIBILITIES:

1. Responsibilities of the City Council: The City Council consists of a Mayor and four Council members and is the policy setting board for the City of Campbell. The City Council has considered and adopted a wr itten Investment Policy for the City of Campbell. Pursuant to the City's Financial Policies, the City Council shall on an annual basis, approve necessary changes to the Investment Policy as recommended by the Finance Sub-Committee. On a quarterly basis, the City Council shall receive, review and accept the Quarterly Investment Report submitted by the Finance Department.

2. Responsibilities of the Finance Sub -Committee: The Finance Sub - Committee consists of two Council members, the City Manager, the Finance Director, and the Finance Manager. On an annual basis, this Sub -Committee shall review necessary revisions to the established Investment Policy of the City of Campbell and make a recommendation to the City Council accordingly. No less than once per fiscal year, the City's investment strategy will be reviewed by the Finance Sub -Committee. A summary of the investment strategy will be shared with the City Council at tha t time. Should market activity encourage revisions in the City's strategy, the Finance Sub -Committee shall be advised accordingly.

3. Responsibilities of the City Manager: The City Manager is responsible for directing and supervising the Finance Director. He/she has the responsibility of keeping the City Council fully advised as to the financial condition of the City.

a. Wire Transfer Authority: The City Manager has unlimited wire transfer authority for a single transaction. Such a transaction requires joint review, approval and verification in advance by the City Manager and Finance Director. The transaction shall be highlighted in the Quarterly Investment Report to Council.

4. Responsibilities of the Finance Director: The Finance Director is appointed by the City Manager and serves as Chief Fiscal Officer. He/she is subject to the direction and supervision of the City Manager. The Finance Director is charged with the responsibility for the conduct of all Finance Department functions including the custody and investment of City funds, and investment of those funds in accordance with principles of sound treasury management and in accordance with applicable laws and policies. Refer to "Delegation of Authority" for additional information pertaining to delegation of investment responsibilities.

a. Wire Transfer Authority: The Finance Director has wire transfer authority not to exceed $5,000,000 for a single transaction. Such a transaction shall be reviewed, approved and verified in advance by the City Manager. The transaction shall be highlighted in the Quarterly Investment Report to

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Council.

5. Responsibilities of the Finance Manager: The Finance Manager is appointed by the Finance Director and serves as the Investment Manager for the City pursuant to specific delegation authority provided by this Investment Policy.

He/she is subject to the direction and supervision of the Finance Director and is charged with the responsibility and conduct of the day -to-day accounting and cash management functions of the City. This includes the custody and investment of City funds, and investment of those funds in accordance with principles of sound treasury management and in accordance with applicable laws and policies. Refer to "Delegation of Authority" for additional information pertaining to delegation of investment responsibilities.

Implementation and maintenance of the Investment Policy are the responsibility of this individual. On an annual basis, the Finance Manager shall present to the Finance Sub -Committee, recommended changes to the City's Investment Policy. On a quarterly basis, the Finance Manager shall present to the City Council, via the City Manager, a Quarterly Investment Report. Refer to "Monitoring and Reporting" for additional information.

a. Wire Transfer Authority: The Finance Manager has wire transfer authority not to exceed $3,000,000 for a single investment transaction.

Such a transaction shall be reviewed, approved and verified in advance by the Finance Director, and shall be reported in the Quarterly Investment Report to Council.

6. Responsibilities of the Accountant and Sr. Accountant: The Accountant is appointed by the Finance Director and is subject to the direction and supervision of the Finance Manager. The Accountant carries out the specific instructions provided by the Finance Manager regarding the purchase and sale of securities in accordance with principles of sound treasury management and in accordance with applicable laws and policies. Accounting for the various investment transactions is the responsibility of the Accountant.

a. Wire Transfer Authority: The Accountant and Senior Accountant have wire transfer authority not to exceed $2,100,000 for a single investment transaction. The standard operating procedure is that all cash and investment wire transfers made by the Accountant and Senior Accountant are reviewed, approved and verified in advance by the Finance Manager, and are reported in the Quarterly Investment Report to Council.

D. Prudence:

1. It is the understanding of the individuals holdi ng positions with investment responsibilities that the "prudent investor" rule applies. This means that investments shall be made with judgment and care, under circumstances then prevailing, which persons of prudence, discretion and intelligence exercise in the management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital and income to be derived.

2. The City’s overall investment program shall be designed and managed with a degree of professionalism that is worthy of the public trust. The City recognizes that no investment is totally riskless and that the investment activities of the City are a matter of public record. Accordingly, while the intent of the City is to hold

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purchased securities to maturity, the City recognizes that occasional measured losses may be advisable in a diversified portfolio and shall be considered within the context of the ove rall portfolio's return, provided that (a) adequate diversification has been implemented, (b) the sale of a security is in the best long-term interest of the City and (c) the City Manager approves in writing.

E. Ethics and Conflicts of Interest:

Elected officials and employees involved in the investment process shall refrain from personal business activity that could conflict with proper execution of the City’s investment program or could impair or create the appearance of an impairment of their ability t o make impartial investment decisions. Employees and investment officials shall disclose to the City Manager any business interests they have in financial institutions that conduct business with the City, and they shall sub ordinate their personal investment transactions to those of the City. In addition, the City Manager, the Finance Director and others with delegated investment authority shall file a Statement of Economic Interests each year pursuant to California Government Code Section 87203 and regulations of the Fair Political Practices Commission.

F. Conflict with State Statutes or Regulations

1. Any conflict between the City of Campbell Investment Policy and Government Code Section 53600 et seq, shall be interpreted in favor of the Government Code.

V. AUTHORIZED SECURITIES AND TRANSACTIONS

All investments and deposits of the City shall be made in accordance with California Government Code Sections 16429.1, 53600-53609 and 53630-53686, except that pursuant to California Government Code Section 5903(e), proceeds of bonds and any moneys set aside or pledged to secure payment of the bonds may be invested in securities or obligations described in the ordinance, resolution, indenture, agreement, or other instrument providing for the issuance of the bonds. Any revisions or extensions of these code sections will be assumed to be part of this Policy immediately upon being enacted. However, in the event that amendments to these sections conflict with this Policy and past City investment practices, the City may delay adherence to the new requirements when it is deemed in the best interest of the City to do so. Percentage holdings limits listed in this section apply at the time the security is purchased.

The City has further restricted the eligible types of securities and transactions to the following:

1. United States Treasury bills, notes, bonds, or strips with a final maturity not exceeding five years from the date of purchase.

2. Federal Agency debentures and mortgage -backed securities with a final maturity not exceeding five years from the date of purchase issued by the Gover nment National Mortgage Association (GNMA). The aggregate investment in Federal Agency obligations shall not exceed 75% of the City’s total portfolio.

3. Federal Instrumentality (government sponsored enterprise) debentures, discount notes, callable and step-up securities, with a final maturity not exceeding five years from the date of purchase, issued by the following only: Federal Home Loan Banks (FHLB), Federal

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National Mortgage Association (FNMA), Federal Farm Credit Banks (FFCB) and Federal Home Loan Mor tgage Corporation (FHLMC). The aggregate investment in Federal Instrumentality obligations shall not exceed 75% of the City’s total portfolio.

4. Repurchase Agreements with a final termination date not exceeding one year collateralized by U.S. Treasury oblig ations, Federal Agency securities, or Federal Instrumentality securities listed in items 1, 2 and 3 above with the maturity of the collateral not exceeding five years. For the purpose of this section, the term collateral shall mean purchased securities under the terms of the City’s approved Master Repurchase Agreement. The purchased securities shall have a minimum market value including accrued interest of 102% of the dollar value of the transaction. Collateral shall be held in the City's custodian bank, as safekeeping agent, and the market value of the collateral securities shall be marked-to-the-market daily. The aggregate investment in repurchase agreements shall not exceed 10% of the City’s total portfolio.

Repurchase Agreements shall be entered into only with broker/dealers that have executed a City approved Master Repurchase Agreement with the City. Repurchase counterparties shall be recognized as Primary Dealers with the Federal Reserve Bank of New York, or shall have a primary dealer within their holding company structure. Broker/dealers approved as Repurchase Agreement counterparties shall have a short -term credit rating of at least A-1 or the equivalent and a long-term credit rating of at least A or the equivalent.

The Finance Director shall m aintain a copy of the City's approved Master Repurchase Agreement along with a list of the broker/dealers that have executed a Master Repurchase Agreement with the City.

5. Prime Commercial Paper with a maturity not exceeding 270 days from the date of purchase with the highest ranking or of the highest letter and number rating as provided for by a Nationally Recognized Statistical Ratings Organization (NRSRO). The entity that issues the commercial paper shall meet all of the following conditions in either sub -paragraph a. or sub-paragraph b. below:

a. The entity shall (1) be organized and operating in the United States as a general corporation, (2) have total assets in excess of five hundre d million dollars ($500,000,000) and (3) have debt other than commercial paper, if any, that is rated “A” or higher by a NRSRO.
b. The entity shall (1) be organized within the United States as a special purpose corporation, trust, or limited liability company , (2) have program wide credit enhancements, including, but not limited to, over collateralization, letters of credit or surety bond and (3) have commercial paper that is rated “A -1” or higher, or the equivalent, by a NRSRO.

Purchases of eligible commerci al paper may not represent more than 10% of the outstanding commercial paper of any single corporate issuer. No more than 5% of the City’s total portfolio may be invested in the commercial paper of any one issuer, and the aggregate investment in commercial paper shall not exceed 25% of the City’s total portfolio.

6. Eligible Bankers Acceptances rated at least A-1 by Standard & Poor’s, P-1 by Moody’s, or F1 by Fitch at the time of purchase by each service that rates the commercial paper, with a maturity not exceeding 180 days from the date of purchase, issued by a state or national bank that has combined capital and surplus of at least $250 million, whose deposits are

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insured by the FDIC, and whose senior long -term debt is rated at least A by Standard & Poor's, A2 by Moody's or A by Fitch at the time of purchase. No more than 5% of the City’s total portfolio may be invested in banker’s acceptances of any one issuer, and the aggregate investment in banker’s acceptances shall not exceed 30% of the City’s total portfolio.

7. Medium Term Notes issued by corporations organized and operating within the United States or by depository institutions licensed by the United States or any state and operating within the United States, with a final maturit y not exceeding five years from the date of purchase, and are rated in a rating category of “A” or its equivalent or better by at least one NRSRO. No more than 5% of the City’s total portfolio may be invested in medium term notes of any one issuer and the aggregate investment in medium term notes shall not exceed 30% of the City’s total portfolio.

8. Non-negotiable Time Certificates of Deposit and savings deposits with a maturity not exceeding five years, in state or nationally chartered banks or savings a nd loans with a California branch office that are insured by the FDIC. Time Certificates of Deposit exceeding the FDIC insured amount must be secured pursuant to California Government Code Section 53652. No more than $1 million may be invested in non -negotiable time certificates of deposit of any one issuer and the aggregate amount invested in non - negotiable time certificates of deposit shall not exceed 25% of the City’s total portfolio.

9. Certificates of Deposit at commercial bank, savings bank, or savings and loan association that uses a private sector entity (Certificate of Deposit Account Registry Service) that assists in the placement of certificates of deposit, provided that the purchase of certificates of deposit do not, in total, exceed 30% of the City’s funds that may be invested for this purpose. The City shall choose a nationally or state chartered commercial bank in California as the “selected” depository institution to invest the funds. The selected depository institution may submit the funds to a CDARS for the benefit of the City’s account.

The full amount of the principal and interest that may be accrued during the maximum term of each certificate shall be insured by the FDIC.

10. State of California’s Local Agency Investment Fund (LAIF) , pursuant to California Government Code Section 16429.1.

11. Mutual Funds registered under the Investment Company Act of 1940 that (1) are “no-load” (meaning no commission or fee shall be charged on purchases o r sales of shares); (2) invest only in the securities and obligations authorized in this policy and (3) have a rating of AAA by Standard and Poor's, Aaa by Moody's or AAA/V1+ by Fitch. No more than 10% of the City’s total portfolio may be invested in mutu al funds of any one issuer, and the aggregate investment in mutual funds shall not exceed 15% of the City’s total portfolio.

12. Money Market Mutual Funds registered under the Investment Company Act of 1940 that (1) are “no-load” (meaning no commission or fee shall be charged on purchases or sales of shares); (2) have a constant daily net asset value per share of $1.00; (3) invest only in the securities and obligations authorized in this policy and (4) have a rating of at least two of the following: AAA by Sta ndard and Poor's, Aaa by Moody's or AAA/V1+ by Fitch. No more than 10% of the City’s total portfolio may be invested in money market funds of any one issuer, and the aggregate investment in money market funds shall not exceed 15% of the total portfolio.

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13. Municipal and State Obligations with a minimum long -term rating of A/A -1 or higher by Standard and Poor’s and not exceeding 10% of the portfolio:

(a) Bonds Issued by the Local Agency (City of Campbell) including bonds payable solely out of the revenue from a revenue-producing property owned, controlled, or operated by the local agency or by a department, board, agency, or authority of the local agency.)
(b) State Obligations including registered treasury notes or bonds of this State and any of the other 49 states in addition to California, including bonds payable solely out of the revenue from a revenue-producing property owned, controlled, or operated by a state or by a department, board, agency, or authority of the any of the other 49 United States, in addition to California.
(c) California Local Agency obligations including bonds, notes, warrants, or other evidence of indebtedness of any local agency within t his state, including bonds payable solely out of the revenue from a revenue-producing property owned, controlled, or operated by the local agency or by a department, board, agency, or authority of the any of the local agency.
(d) No more than 5% of the portfolio may be invested in any single issuer.

14. Asset-Backed, Mortgage -Backed, Mortgage Pass -Through Securities, and Collateralized Mortgage Obligations from Issuers Not Defined in Sections 1, 2, and 4 of the Authorized Investments Section of This Policy, provided that:

(a) The securities are rated in a rating category of “AA” or its equivalent or better by a NRSRO.
(b) No more than 20% of the total portfolio may be invested in these securities. (c) No more than 5% of the portfolio may be invested in any single Asset -Backed or Commercial Mortgage security issuer.
(d) The maximum legal final maturity does not exceed five (5) years.

15. Supranationals, provided that:

(a) Issues are US dollar denominated senior unsecured unsubordinated obligations issued or unconditionally guaranteed by the International Bank for Reconstruction and Development, International Finance Corporation, or Inter -American Development Bank.
(b) The securities are rated in a rating category of “AA” or its equivalent or better by a NRSRO.
(c) No more than 30% of the total portfolio may be invested in these securities. (d) No more than 10% of the portfolio may be invested in any single issuer. (e) The maximum maturity does not exceed five (5) years.

Note: Per state statute, the maximum combination of Mutual Funds and Money Market Mutual Funds is 20% of the portfolio.

It is the intent of the City that the foregoing list of authorized securities and transactions is strictly interpreted. Any deviation from this list must be preapproved by the City Council writing.

16. Prohibited Investment Vehicles and Practices

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a. State law notwithstanding, any investments not specifically described herein are prohibited, including, but not limited to futures and options. b. In accordance with Government Code, Section 53601.6, investment in inverse floaters, range notes, or mortgage derived interest-only strips is prohibited. c. Investment in any security that could result in a zero interest accrual if held to maturity is prohibited. Under a provision sunsetting on January 1, 2026, securities backed by the U.S. Government that could result in a zero - or negative-interest accrual if held to maturity are permitted.
d. Purchasing or selling securities on margin is prohibited. e. The purchase of foreign currency denominated securities is prohibited. f. Agencies that are not Qualified Institutional Buyers (QIB) as defined by the Securities and Exchange Commission are prohibited from purchasing Private Placement Securities. The SEC defines a QIB as having at least $100,000,000 in securities owned and invested.

VI. PORTFOLIO MATURITIES AND LIQUIDITY

To the extent possible, investments shall be matched with anticipated cash flow requirements and known future liabilities. The City will not invest in securities maturing more than five years from the date of purchase, unless the City Council has granted authority to make such an investment at least three months prior to the date of i nvestment. The weighted average final maturity of the City’s portfolio shall at no time exceed 3 years.

VII. MONITORING AND REPORTING

A. The Finance Director shall routinely monitor the contents of the portfolio and shall file with the City Council the Finance Manager's Investment Report at the first regularly scheduled City Council meeting after 30 days from the end of the quarter. The reports shall be prepared and submitted in accordance with California Government Code Section 53646 and shall include the following on all invested monies:

➢ Type of Investment and Issuer
➢ Beginning Balances
➢ Purchases During Quarter
➢ Maturities or Sales During the Quarter
➢ Ending Balances
➢ Maturity Date
➢ Weighted Average Final Maturity
➢ Call Provisions (if any)
➢ Interest Rate
➢ Weighted Average Yield
➢ Face Value or Purchase Cost
➢ Market Value including source
➢ Interest Earned During Quarter
➢ Interest Earned to Maturity
➢ Cash Flow Projection for the Following Quarter
➢ Summary of Cash Invested to Total Cash Balances
➢ Comparative Statistics by Fiscal Year
➢ Reconciliation of Cash & Investments to General Ledger Balances

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➢ Investments under the Management of Contracted Parties ➢ Statement of Compliance with the Investment Policy
➢ Statement of Ability to Meet Obligations of Next Six Months

B. In addition to the Quarterly Investment Report, monthly transaction reports will be submitted by the Finance Director to City Council within 45 days of the end of the reporting period in accordance with California Government Code Section 53607.

VIII. SELECTION OF BROKER/DEALERS

The City shall transact business with securities broker/dealers after careful review of their qualifications and creditworthiness. In selecting broker /dealers, the Finance Director or designated staff member shall select broker/dealers representing primary dealers in government securities that have established offices and order desks within the State of California, or with such firms that have a primary dealer within their holding company structure.

Exceptions to this rule will be made only upon the joint written authorization of the Finance Director and City Manager. Staff shall investigate broker/dealers wishing to do business with the City to determine if they are adequately capitalized, are reputable, have pending legal action against the firm or the individual broker, have established offices and order desks within the State of California, and make markets in the securities appropriate to the City’s needs.

Before accepting funds or engaging in investment transactions with the City, the supervising officer at each authorized broker/dealer shall submit and annually update a City approved Broker/Dealer Information Request form that includes the firm’s most rece nt audited financial statement. The Finance Director, or his or her designee, shall maintain a list of approved broker/dealers. Broker/dealers shall attest in writing that they have received and reviewed a copy of this Investment Policy, and that they wil l comply with it and disclose potential conflicts or risks to public funds that might arise out of business transactions between the firm and the City of Campbell.

IX. DELIVERY, SAFEKEEPING AND COLLATERALIZATION

A. Delivery:

1. All investment transactions shall be conducted on a delivery -versus-payment (DVP) basis.

B. Safekeeping:

1. The City shall contract with a bank or banks for the safekeeping of securities which are owned by the City as a part of the investment portfolio. Staff shall periodically review the performance and pricing of the third -party, safekeeping agent services.

2. All investment securities (except the collateral for certificates of deposit in banks, and/or savings and loans) purchased by the City shall be held in third -party safekeeping by an institution designated as primary agent. The primary agent shall issue a safekeeping receipt to the City listing the specific instrument, rate, maturity and other pertinent information, and shall provide monthly reports of activity and ending balances for all securities held on behalf of the City.

C. Collateralization:

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1. Deposit-type securities (i.e. certificates of deposit) shall be collateralized through the State of California collateral pool requirements for any amount exceeding FDIC coverage in accordance with California Government Code Section 53652 and/or 53651(m) (1). Collateral for certificates of deposit shall be held in a trust company located in California, the trust department of a bank located in California or the Federal Home Loan Bank of San Francisco.

2. Other securities shall be collateralized by the actual secur ity held in third-party safekeeping by the primary agent.

X. DIVERSIFICATION AND ELIGIBLE SECURITIES

The City will diversify investment instruments to avoid incurring unreasonable risks in overinvesting in specific instruments, individual financial institutions or maturities. The following portfolio maximums shall apply:

If the credit ratings of any security owned by the City are downgraded to a level below the quality required by this investment policy, it will be the City’s policy to review the credit situation and make a determination as to whether to sell or retain such securities in the portfolio.

If a security is downgraded, the Finance Director will use discretion in determining whether to sell or hold the security based on its current maturity, the economic outlook for the issuer, and other relevant factors.

If a decision is made to retain a downgraded security in the portfolio, its presence in the portfolio will be monitored and reported quarterly to the City Council.

Authorized Securities and Transactions Maximum Portfolio

CA. Gov’t.

Code
Section

Authorized Investment

Maximum
Maturity

Authorized
Investment Limits -
% of Portfolio

Credit Rating Limit

53601 (a) City of Campbell Local Agency
Bonds 5 years None/5% Per
Issuer A/A-1 or Higher
53601 (c) State Obligations 5 years None/5% Per
Issuer A/A-1 or Higher
53601 (e) California Local Agencies 5 years None/5% Per Issuer A/A-1 or Higher
53601(b) United States Treasuries 5 years None None
53601(e) Federal Agency Securities 5 years 75% None
53601(e) Federal Instrumentality 5 years 75% None
53691(i) Repurchase Agreements 1 year 10% A-1/A
53601(g) Prime Commercial Paper 270 days
25%
5% Per Issuer
A/A-1 or higher

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CA. Gov’t.

Code
Section

Authorized Investment

Maximum
Maturity

Authorized
Investment Limits -
% of Portfolio

Credit Rating Limit

53601(f) Eligible Bankers Acceptances 180 days 5% per issuer/30% Aggregate A-1/P-1/F-1
53601(j) Medium Term Notes 5 years 30%/ 5% per
issuer A/A-1 or Higher
53601(n) Non-negotiable Certificates of
Deposit 5 years
25%
$1 million per
issuer
-
53601.8
(a)-(h)
Certificates of Deposit through
Account Registry Services 5 years

7.5% Aggregate
Maximum Up to
the FDIC Insured
Limit Per Issuer
-
16429.1 State of California LAIF 18 Months-
Avg None -
53601(k) *Mutual Funds None 15% AAAm/Aaa/AAAV1+
53601(k) *Money Market Mutual Funds None 15% AAAm/Aaa/AAAV1+ 53601(o)
Asset-Backed, Mortgage-Backed,
Mortgage Pass-Through
Securities, and Collateralized
Mortgage Obligations
5 years 20% AA or higher
53601(q) Supranationals 5 years 30% AA or higher
*Combined total not to exceed
20% per State 20%

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EXHIBIT A

GLOSSARY

Asset Backed Securities. - Securities that are supported by pools of assets, such as installment loans or leases, or by pools of revolving lines of credits. Asset-backed securities are structured as trusts in order to perfect a security interest in the underlying assets.

Banker's Acceptance. This is a negotiable time draft (bill of exchange) with a maturity of six months or less drawn on and accepted by a commercial bank. Banker's Acceptances are usually created to finance the import and export of goods, the shipment of goods within the United States and storage of readily marketable commodities. Per State Law, cities may not invest more than 30% of idle cash in Banker's Acceptances.

Certificate of Deposit (CD's). - is a receipt for funds deposited in a bank or savings and loan association for a specified period of time at a specified rate of interest. The first $ 250,000 of a certificate of deposit is guaranteed by the Federal Deposit Insurance Corporation (FDIC). CD's with a face value in excess of $ 250,000 can be collateralized by Treasury Department Securities, which must be at least 110% of the face value of the CD's, in excess of the first $250,000, or by first mortgage loans which must be at least 150% of the face value of the CD balance in excess of the first $250,000.

Commercial Paper. - Notes are unsecured promissory notes of industrial corporations, utilities and bank holding companies. State l aw limits a city to investments in United States corporations having assets in excess of five hundred million dollars with an "A" or higher rating. Per State law, cities may not invest more than 25% of idle cash in commercial paper.

Delivery Versus Payment (DVP). - Delivery versus payment (DVP) is a securities industry settlement method that guarantees the transfer of securities only happens after payment has been made. DVP stipulates that the buyer's cash payment for securities must be made prior to or at the same time as the delivery of the security.

Local Agency Investment Fund (L.A.I.F.). - The L.A.I.F. was established by the state of California to enable treasurers to place funds in a pool for investments. There currently is a limitation of $65 million per agency subject to a maximum of 15 total transactions per month. The City of Campbell uses this fund when interest rates are declining as well as for short-term investments and liquidity.

Medium Term Notes. - are corporate or depository institution debt securities meeting certain minimum quality standards (as specified in the California Government Code) with a remaining maturity of five years or less.

Money Market Mutual Fund. - Mutual funds that invest solely in money market instruments (short- term debt instruments, such as Treasury bills, commercial paper, bankers' acceptances, repos and federal funds).

Mortgage Backed Securities. - Mortgage-backed securities (MBS) are created when a mortgagee or a purchaser of residential real estate mortgages creates a pool of mortgages and markets undivided interests or participations in the pool. MBS owners receive a prorata share of the interest and principal cash flows (net of fees) that are “passed through” from the pool of mortgages. MBS are complex securities whose cash flow is determined by the characteristics of the mortgages that are pooled together. Investors in MBS face prepayment risk associated with the option of the underlying mortgagors to pre-pay or payoff their mortgage. Most MBS are issued and/or guaranteed by federal

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agencies and instrumentalities (e.g., Government National Mortgage Association (GNMA), Federal National Mortgage Association (FNMA), and Federal Home Loan Mortgage Corporation (FHLMC)).

Mortgage Pass-Through Obligations. - Securities that are created when residential mortgages (or other mortgages) are pooled together and undivided interests or participations in the stream of revenues associated with the mortgages are sold.

Mutual Fund. - An investment company that pools money and can invest in a variety of securities, including fixed-income securities and money market instruments. Mutual funds are regulated by the Investment Company Act of 1940 and m ust abide by strict Securities and Exchange Commission (SEC) disclosure guidelines.

Nationally Recognized Statistical Ratings Organization. - A nationally recognized statistical ratings organization (NRSRO) is a credit rating agency that provides an assessment of the creditworthiness of a firm or financial instrument(s) that is registered and approved by the Securities and Exchange Commission (SEC). Not all credit rating organizations are NRSROs

Repurchase Agreements (REPOS). - is a contractual arrangement between a financial institution, or dealer, and an investor. This agreement normally can run for one or more days. The investor puts up his funds for a certain number of days at a stated yield. In return, he takes a given block of securities as collateral. At maturity, the securities are repurchased and the funds repaid plus interest.

Supranationals. - International institutions formed by two or more governments that transcend boundaries to pursue mutually beneficial economic or social goals. T here are three supranational institutions that issue obligations that are eligible investments for California local agencies: the International Bank for Reconstruction and Development (IBRD), International Finance Corporation (IFC), and InterAmerican Development Bank (IADB).

U.S. Treasury Bills. Commonly referred to as T-Bills, these are short-term marketable securities sold as obligations of the U.S. Government. T -Bills do not accrue interest but are sold at a discount to pay face value at maturity.

U.S. Treasury Notes . These are marketable, interest -bearing securities sold as obligations of the U.S. Government with original maturities of one to ten years. Interest is paid semi-annually.

U.S. Treasury Bonds . These are the same as U.S. Treasury No tes except they have original maturities of ten years or longer.

U.S. Government Agency Issues. Are securities that are unconditionally backed by the full faith and credit of the United States, including: Government National Mortgage Association (GNMA), Farmers Home Administration (FmHA),Small Business Administration (SBA), General Services Administration (GSA), Federal Housing Administration (FHA) and Housing and Urban Development (HUD).

U.S. Government Instrumentality Issues. Are government sponsored enterprises that are backed by the creditworthiness of the issuing agency, not the full faith and credit of the U.S. government.

They do carry an implied guarantee of government assistance to the organization should it encounter financial difficulties. Issuers include: Federal National Mortgage Association (FNMA), Federal Home Loan Bank (FHLB), Federal Farm Credit Banks (FFCB) and Federal Home Loan Mortgage Corporation (FHLMC).

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Attachment: Investment Policy FY 2022-23 (Annual Investment Policy Update FY 2022-23)

To: Finance Sub-Committee

Date: August 9, 2022
From: Will Fuentes, Finance Director
Norite Vong, Finance Manager

Subject: Investment Strategy for FY 2022-23

BACKGROUND

The investment policy establishes procedures and guidelines by which the City’s surplus funds can be managed in a prudent and fiscally sound manner. The policy encompasses those funds over which the City exercises fiscal control and prioritizes the objectives of public funds management as safety, liquidity and yield, in that order and consistent with guidance provided by the Government Finance Officers Association (GFOA). It also stipulates allowable and unallowable investment alternatives as well as establishes parameters for selecting broker/dealers and institutions with which the City may do business.

California Government Code Section 53646 (a ) (2) recommends that on an annual basis, the City Investment Policy be submitted to its legislative body and any oversight committee for consideration at a public meeting. The Finance Sub-Committee is the oversight committee responsible for review of the Investment Policy. In addition to review of any proposed revisions to the Investment Policy, staff has prep ared a report summarizing the past year’s economic conditions and the recommended Investment Strategy for managing the City’s available invested funds in FY 2022-23.

INVESTMENT OBJECTIVES AND OVERVIEW
The City’s policy is to invest public funds in a prudent manner, provide for maximum security while meeting daily cash flow needs and comply with applicable statutes. Chief among the objectives outlined in the Investment Policy are safety, liquidity and yield , in that specific order and again consistent with GFOA guidance . Within this framework , a number of investment choices are provided to allow flexibility in meeting these objectives. The City continues to take a conservative approach with its investments and that is reflected in the current recommended and unchanged investment policy.

As a means to implement the policy, it is important to develop a strategy for achieving the stated objectives. Likewise, the strategy should be reviewed periodically to determine whether it needs to be modified in light of changing economic and financial conditions. This document will serve as the City’s investment strategy for the next year and will be reviewed annually in conjunction with the review of the City’s investment policy or sooner if conditions warrant.

CITY OF CAMPBELL MEMORANDUM
Finance Department

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SUMMARY OF CURRENT STRATEGY AND RECOMMENDATIONS
Staff’s recommended Investment Strategy for FY 2022 -23 is similar to the prior year with no substantive changes being proposed. As such, it is recommended that the City continue to maintain sufficient liquidity to cover daily operating cash flows for a minimum of 3 months to provide a reasonable cushion for fluctuations in the portfolio balance and for unforeseen emergencies . Average monthly disbursements over the last fiscal year (FY 2021-22) were approximately $7.0 million. Therefore, staff recommends retaining a target of $21.0 million (3 months) in the Local Agency Investment Fund (LAIF) . Last fiscal year, due an improving economy, staff began investing again into longer -term fixed income investment opportunities outside of LAIF ; thereby providing a higher, yet still safe return consistent with the City’s Investment Policy. With current fixed income investment rates well over 3% for many maturity terms, staff recommends continuation of this investment strategy for FY 2022-23, with no changes from the prior fiscal year approach. Should the economy decline, requiring that the City to maintain greater liquidity, staff will re-evaluate this strategy and update the Finance Sub-Committee and the City Council. However, staff believes that it is a fiscally prudent strategy given a variety of different economic conditions and one that remains consistent with the City’s Investment Policy.

And similar to last fiscal year and consistent with Investment Policy, staff will again look for individual maturities of no more than 5 years, while maintaining a portfolio weighted average maturity of 3 years or less. As noted previously, fixed income interest rates for longer-term investment classes such as government securities and corporate notes are currently elevated at rates about 3% and are outperforming LAIF . Interest rates for fixed income investments have improved significantly in recent months due to the Federal Open Market Committee (FOMC) taking an aggressive strategy of ramping up the Federal Funds Rate to bring rising inflation under control. The FOMC increased the Federal Funds Rate by 75 basis points in July to its current rate of between 2.25 and 2.50 percent. The FOMC is expected to increase the Federal Funds rate by another 50 basis points in September and another 25 basis points each in November and December for a peak 3.25 to 3.50 percent target rate.

The FOMC is then expected to begin easing back in March 2023, but they recently indicated that they may also sooner . While these rate adjustments will increase debt costs substantially, it will also likely result in increased fixed income investment returns for the City.

Please note that as of June 30, 2022, the City had $16.0 million invested in fixed income government securities and corporate notes. Additionally, as of June 30, 2022, the City had $74.9 million invested in LAIF, with an annual return of 0.861%. This compares with $52.9 million invested in LAIF as of June 30, 2020 and an annual LAIF return of 0.262% at that time. LAIF holdings increase d significantly during the last fiscal year mainly due to the second issuance of the second issuance of Measure O GO Bonds ($32.2 million) and the CAL OES grant for the Police Station ($3.9 million). However, the maximum that any public agency can invest in LAIF is $75.0 million and thus, any City cash above this c ap will be placed in other investment options.

ECONOMIC UPDATE AND OUTLOOOK
U.S. inflation data was worse than expected in June 2022. The consumer price index (CPI) increased 1.3% for the month of June, and 9.1% from a year earlier with gasoline, shelter, and food as the largest contributors. The 9.1% year over year reading was the highest

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reading since November of 1981. The core CPI, wh ich removes more volatile food and energy components, rose 0.7% and 5.9% from a year earlier. Consistent with the Consumer Price Index report, the Producer Price Index (PPI) came in higher-than-expected. PPI rose

1.1% in June and increased 11.3% year -over-year. The core index, excluding food and energy, rose 0.4% month -over-month and 8.2% year -over-year. On the positive side, the

8.2% year-over-year gain was the smallest since last November and many producers are beginning to experience some price relief a s commodity prices have declined recently inclusive of oil, wheat, copper, and corn.

In addition to the inflation data published mid-July, U.S. retail sales climbed by more than forecast. Retail sales increased 1.0% in June, after an upwardly revised 0.1% decline in May. Excluding automobile and gasoline sales, retail sales rose 1.0% in June. The report suggests the consumer might be more resilient than expected despite the highest inflation in four decades. As always, it’s important to look at trends ver sus a single economic data point. As such, upcoming consumer data will be watched closely by staff to see if the consumer can keep up their resilience in the face of significantly higher prices. In addition, retail sales numbers are not inflation adjusted , an important consideration when analyzing the data. Gasoline was up 3.6% in June following 5.6% in May, and gas prices reached highs in mid-June followed by lower prices to begin the month of July. Assuming lower gas prices remain intact, these lower prices on a relative basis will be reflected in the upcoming data. Moving forward, staff continues to believe that retail sales growth is at risk as consumers continue to dip into savings and assume more debt The University of Michigan’s sentiment index rose to 51.1 from 50 in June, but the sentiment index measure of future expectations declined to 47.3, the lowest number since 1980.

Respondents expect inflation to rise 5.2% over the next year, down slightly from 5.3% a month earlier, and expect prices to increase 2.8% over the next five to ten years, down from

3.1% in May. Personal spending growth slowed to 0.2% in May and Consumer Confidence plummeted to 98.7 as of mid -June as consumers react to rising prices and become increasingly pessimistic as the Federa l Reserve shifts its stance from accommodative to tightening to combat persistent elevated inflation. The U .S. savings rate improved to 5.4% for May but remains below the long -run average. The Personal Consumption Expenditures (PCE) Deflator and PCE Core D eflator both came in slightly below expectations for May at

6.3% and 4.7% year-over-year, respectively, with Core PCE remaining well above the Fed’s 2% target.

The Leading Economic Index (LEI) also came in softer than expected, decreasing by 0.8% month-over-month for June. Although the index is still in positive territory at +1.4% year - over-year, the Conference Board indicated that economic growth is slowing and recession risk increasing due to elevated inflation and monetary policy tightening by t he FOMC.

Corporate earnings season for Q2 of calendar year 2022 is also underway, with about 20% of the companies in the S&P 500 reported, providing valuable insights into the health of the U.S. consumer. Overall results have been mixed thus far, with maj or banks generally not seeing a deterioration in credit conditions with the consumer balance sheet still relatively strong. Nevertheless, many banks increased loan loss provisions as risks build with higher prices and tighter economic conditions.

In regard to the U .S. housing market , housing starts for June declined by 2.0% to an annualized rate of 1.559 million units, driven by a drop in construction of single family houses

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as homebuyers struggle with a combination of elevated prices and higher mortgage ra tes.

Building permits, a leading indicator of economic activity, eased to 1.685 million annualized, with the declines in single family starts and permits mostly offset by an uptick in multifamily activity.

U.S. employers added more jobs in June than the co nsensus forecast of economists while the nationwide unemployment rate held steady at 3.6%, suggesting the labor market remains strong. Nonfarm payrolls rose 372,000 last month following a revised 384,000 in May. Job gains were broad-based and showed moment um is shifting toward the service sector with the leisure and hospitality sector adding 67,000 jobs. Average hourly earnings growth fell to

5.1% year-over-year in June from 5.3% in May, a possible sign of lower wage pressure moving forward. However, one area of concern in an otherwise solid report was the decline in the participation rate, which crept down to 62.2% in June versus 62.3% in May. Federal Reserve (Fed) policy makers concluded at their June meeting that there may not be much improvement on labor force participation for some time. The hope and expectation had been that workers would return to the job market, but this report suggests a slower pace for workers returning to the labor market
In California, total nonfarm employment in the state increased by 19,900 jobs over the month of June 2022. Additionally, statewide unemployment decreased to a rate of 4. 2% in June 2022; down from 4.3% in May 2022 and 7.9% in June 2021. In Santa Clara County, the rate increased to 2.2% in June 2022; up from 1.8% in May 2022 and down from 5.4% in June 2021. And in Campbell, the rate increased to 2.0% in June 2022; up from 1.7% in May 2022 and down from 5.0% in June 2021. At its pandemic high point in April 2020, the Campbell unemployment rate had reached 11. 2%. May 2022 was the ten -year unemployment rate low for Campbell.

PORTFOLIO BALANCE
For the fiscal year ended June 30, 2022, the City’s average portfolio balance was approximately $56.0 million and the average yield for the fiscal year was 0.47%. This compares to an average portfolio balance of $50.5 million and an average yield of 0.62% for fiscal year ended June 30, 2021. The lower FY’22 yield resulted from initial returns which trended up substantially the 2nd half of the year along with the continued rise in fixed income investment rates.

As of June 30, 2022, the City’s investment portfolio was valued at approximately $90.9 million. This was comprised of approximately $74.9 million (82.39%) in LAIF, $14.0 million (15.40%) in US Government Agency securities, and $2.0 million (2.20%) in corporate notes or money market accounts with a small residual balance in our MEAS O COI account. Almost all these funds are considered “discretionary” investments meaning that the City can invest this amount as it sees fit within the guidelines of the Investment Policy. With a minimum holdback of at least $21.0 million for cash flow, that leaves up to $69.9 million that can be invested in Agency and other securities (limitatio n of 75% of portfolio per investment

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policy). $16.0 million is currently invested outside of LAIF and staff will continue increasing this throughout the fiscal year as fixed income investment rates improve.

DISCUSSION OF ALLOWABLE INVESTMENTS
The City’s investment policy contains a listing of allowable investment instruments along with specified limits and maturities. These include:

➢ State of California Local Agency Investment Fund (LAIF) ➢ US Treasury Bills, Notes & Bonds
➢ US Government Agency Issues (e.g., FNMA & GNMA)
➢ Corporate Medium-Term Notes
➢ Banker’s Acceptances
➢ Certificates of Deposit with banks or savings & loan associations ➢ Repurchase Agreements
➢ Commercial Paper
➢ Mutual Funds (allowed by Calif. Gov’t Code Sec. 53601(a)-(m)) It is the City’s e xperience that LAIF provides a safe short -term investment vehicle, and the City has utilized it for its primary source of investment earnings for many years. This fund is generally viewed as a conservative and safe investment choice. In fact, the City is not aware of any municipality that has ever experienced a loss of principal in LAIF. One characteristic of LAIF is that, due to its size (combin ed State Investment Pool assets valued at approximately $234.5 billion as of June 30, 202 2) the rate of return will typically lag the current market. Thus, in periods of rising interest rates, LAIF may have a lower return.

Conversely, in a declining market, LAIF will provide investors with an above -market return.

The yield as of June 2021 was approximately 0.861% compared to 0.33% one year ago.

LAIF yield is expected to increase to a range of 1.65% to 1.95% by the end of calendar year 2022 due to the overall increase in other fixed income investment rates . In addition to improving returns, a key benefit of using LAIF is that it again offers a high degree of liquidity whereby funds can generally be requested and received in the same day. Another benefit is that a minimum of staff administrative effort is required, enabling the time to be spent on other departmental priorities.

US Treasuries are considered to be one of the safest investment choices available to municipalities due to their being backed by th e full faith and credit of the United States Government. However, because of their popularity and under current market conditions, the rate of return tends to be lower than other types of securities. As of July 27, 2021, the 6- month and 2-year term Treasuries are yielding 2.92% and 3.05%, respectively. The 5-year Treasury has a yield of 2.85%. These rates have increased significantly from a year ago due to actions by the Federal Reserve to increase the Federal Funds Rate. For reference, please see Chart 1 below for a year-over-year comparison of the treasury yield curve as of July 27, 2022 and as of July 22, 2021. The current yield curve is slightly inverted in the out years; suggesting investors expect near -term rate hikes and are pessimistic about economic growth. Although an inverted yield cu rve might be the most reliable indicator of a looming economic downturn, it can also be very imprecise at forecasting the onset of recession.

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Chart 1 – Treasury Yield Curve Comparison

U.S. Agency issues also provide a safe and acceptable rate of return and are still considered a safe investment choice (AAA rated) . Agencies can be “callable” meaning they can be redeemed by the issuer prior to maturity or “non -callable (bullet)” meaning they cannot be redeemed prior to maturity. Agencies a lso issue “discount notes” which have shorter term issues, generally less than 18 months, in which the note is bought at a deep discount and redeemed for face value at maturity. The City has historically purchased primarily callable structured rate agencies to maximize its yields and minimize interest rate risk in the future.

With respect to the upcoming year, it is anticipated that investments outside of LAIF will continue to be made primarily in callable agency securities with some rate protection and an average term of two to four years. Staff will also evaluate other types of investments allowed by policy that may have yields in excess of LAIF and agency issues, such as short-term commercial paper, corporate notes rated AA or higher, and non-callable agency issues, or other investments that lock in an acceptable rate of return for a longer period of time than LAIF.

RECOMMENDATION
It is recommended that the Finance sub-Committee approve the proposed strategy.

Distribution:

Anne Bybee, Vice Mayor
Sergio Lopez, Council Member
Brian Loventhal, City Manager

2.48 2.92 2.99 3.05 2.98 2.91 2.85

0.04 0.05 0.07 0.20 0.37 0.54 0.70
0 0.5
1 1.5
2 2.5
3 3.5
3mo 6mo 1yr 2yr 3yr 4yr 5yr
Precent (%) Rate
Maturity Term
As of July 27, 2022 As of July 22, 2021

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Attachment: Investment Strategy FY 2022-23 (Annual Investment Policy Update FY 2022-23) City
Council
Report
TITLE: Ordinance 2286 Adding New Chapter 21.25 and Chapter 20.14 to the Campbell Municipal Code to Implement Senate Bill No. 9 (SB -9) and Amending Various Other Sec tions of the Municipal Code Pertaining to the Regulation of Accessory Dwelling Units
(ADUS)(Ordinance/Roll Call Vote)

RECOMMENDED ACTION
That the City Council take second reading of Ordinance 2286 adding new Chapter

BACKGROUND
At its Octobe r 19, 2021 meeti ng, the Ci ty Council authorized preparation o f an interim SB-9 ordinance to be adopted on an urgency basis prior to January 1, 2022. The intent was to provisionall y establish object ive zoning, design, and subdivision standards, and a permitting process ahead of January 1st to allow for the orderly implementation of SB-

9. The City Council subsequently extended the interim ordinance un til October 1, 2022 to allow sufficient time fo r preparation o f a forma l ordinance and holding the required public hearings. At its Augus t 2, 2022 meeting , the Ci ty Council he ld a publi c hearing introducing Ordinance 2286 to add ne w Chapter 21.25 (Two- Unit Housing Developments) and Chapter 20.14 (Urban Lot Splits) to the Campbell Municipal Code to implement Senate Bill No. 9 and amending variou s section s o f the Municipa l Code pertaining to the regulation of accesso ry dwelling units (ADUs.) The City Council voted unanimously to approve and take first reading o f Ordinance 2286 . Ordinance 2286 will become effective 30 days after adoption.

FISCAL IMPACT
Nominal publication costs are associated with approving the Ordinance second reading to meet the requiremen t o f Gov . Code 36933 , but the y can be absorbed within the current Fiscal Year (FY) 2023 Operating Budget. Costs for codification of the Ordinance in the Campbell Municipa l Code a re also included in the curren t budget b y way of purchase order. Other fiscal impacts related to SB-9 application fees are included in the staff report introducing the Ordinance on August 2, 2022.

Item: 6
Category: CONSENT CALENDAR
Meeting Date: August 16, 2022
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Second Reading of Ordinance 2286 Page 2 of 2
Prepared by:

Andrea Sanders, City Clerk
Approved by:

Brian Loventhal, City Manager
Attachment:
a. Ordinance 2286 SB-9
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ORDINANCE 2286

BEING AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CAMPBELL ADDING NEW CHAPTER 21.25 (TWO -UNIT HOUSING DEVELOPMENTS) AND CHAPTER 20.14 (URBAN LOT SPLITS) TO THE CAMPBELL MUNICIPAL CODE TO IMPLEMENT SENATE BILL NO. 9 (SB-9) AND AMENDING VARIOUS OTHER SECTIONS OF THE MUNICIPAL CODE PERTAINING TO THE REGULATION OF ACCESSORY DWELLING UNITS (ADUS).

FILE NO.: PLN-2021-187

After notification and public hearing, as specified by law and after presentation by the Community Development Director, proponents and opponents, the hearing was closed.

After due consideration of all evidence presented, the City Council of the City of Campbell does ordain as follows:

SECTION 1. The City Council adopts this ordinance in furtherance of Senate Bill No. 9 (2021), which requires ministerial approval of a housing development of no more than two units in a single-family zone (proposed housing development), the subdivision of a parcel zoned for residential use into two parcels (urban lot split), or both, and pursuant to Section 65852.21(j) and Section 66411.7(n) of the Government Code, and to amend related provisions governing the creation of accessory dwelling units in order to remove existing constraints and barriers.

SECTION 2. The City Council finds and determines that the proposed ordinance is consistent with the goals, policies, and actions of the General Plan, including Housing Element Policies H-5.3 (Secondary Dwelling Units) and H -5.4 (Ordinance Updates); would not be detrimental to the public interest, health, safety, convenience, or general welfare of the city; and is internally consistent with other applicable provisions of the Campbell Municipal Code.

SECTION 3. The City Council further finds and determines that the adoption of this ordinance is not a project under the California Environmental Quality Act (CEQA) pursuant to California Government Code Section 65852.21(j) and Section 66411.7(n) relating to implementation of Senate Bill No. 9, as well as pursuant to Public Resource Code Section 21080.17 which exempts the adoption of an ordinance by a city or county to implement the provisions of Section 65852.1 or Section 65852.2 of the Government Code relating to the construction of accessory dwelling units.

SECTION 4. Termination of Interim Ordinance . That (Interim) Ordinance No. 2277, as extended by Ordinance No. 2278, is superseded by, and shall be of no further force and effect upon the effective date of this ordinance.

SECTION 5. Adopting a SB-9 Housing Developments Chapter. New Chapter 21.25 (Two-Unit Housing Developments ) is hereby added to Article 3 (Development and Operational Standards) of Title 21 (Zoning Code) of the Campbell Municipal Code to read as follows:

CHAPTER 21.25 (TWO-UNIT HOUSING DEVELOPMENTS)

21.25.010 – Purpose

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This Chapter establishes exceptions from the Zoning Code and provides permit procedures for proposed housing developments allowed by Senate Bill No. 9 (2021), as codified in Government Code Section 65852.21. The provisions of this Chapter shall supersede any other provision to the contrary in the Zoning Code; all other provisions unaffected by this Chapter shall remain in effect. Urban lot splits permitted by Government Code Section 66411.7 are processed pursuant to Chapter 20.14 (Urban Lot Splits).

It is further established that nothing in this Chapter shall be construed as to require the physical construction of two dwelling units that comprise a proposed housing development.

However, to ensure that no proposed housing development or urban split would result in a specific, adverse impact upon the publi c health and safety or the physical environment that cannot be satisfactorily mitigated by feasible methods or measures, all applications submitted under this Chapter shall demonstrate construction, creation, and/or retention of two dwelling units on each parcel in compliance with the objective design, site development, and subdivision standards adopted herein.

21.25.020 – Applicability

This Chapter is applicable only to voluntary applications for proposed housing developments. Owners of real property or their representatives may continue to exercise rights for property development in conformance with the Zoning Code. Development applications that do not satisfy the definitions for a proposed housing development shall not be subject to this Chapter. It is not the intent of this Chapter to override any lawful use restrictions as may be set forth in Conditions, Covenants, and Restrictions (CC&Rs) of a common interest development.

21.25.030 – Definitions

In addition to the terms defined by Section 21.72.020 (Definitions of specialized terms and phrases) and Section 21.23.120 (Definitions), the following terms shall have the following meanings as used in this Chapter. Where a conflict may exist, the definitions provided in this section shall prevail over any other definition.

"Acting in concert" means persons, as defined by Section 82047 of the Government Code as that section existed as of January 1, 2022 , acting jointly to pursue development of real property whether or not pursuant to a written agreement and irrespective of individual financial interest.

"Addition" means any construction which increases the size of a building in terms of site coverage, height, length, width, or gross floor area.

"Alteration" means any construction or physical change in the arrangement of rooms or the supporting members of a building or change in the relative position of buildings on a site, or substantial change in appearances of any building.

"Building" means any structure having a roof supported by columns or walls and intended for any shelter, housing or enclosure of any individual, animal, process, equipment, goods, use, occupancy, or materials. When any portion of a structure is completely separated

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from every other portion of the structure by a masonry division or firewall without any window, door or other opening and the masonry division or firewall extends from the ground to the upper surface of the roof at every point, such portion shall be deemed to be a separate building.

"Construction of a new primary dwelling unit" means (1) the erection or assembly of a new primary dwelling unit ; (2) creation of a new primary dwelling unit from the floor area of an existing accessory structure or primary dwelling unit; and (3) the conversion of an existing accessory dwelling unit or junior accessory dwelling unit to a primary dwelling unit.

"Elevation," including "front elevation," "side elevation," "street -side elevation ", and "rear elevation," means the wall(s) of a building that are oriented towards the front, side, street-side, and rear yards, respectively, formed by the required building setbacks, as illustrated by Figure 1-1, Figure 1-2, and Figure 1-3.
"Entry feature" means a structural element, which leads to a front door.

"Existing non-livable space(s)" and "portions of existing multifamily dwelling structures that are not used as livable space" as referenced in Section 21.23.050 (Special Provisions for Multi-family Residential Properties) and Section 65852.2(e)(1)(C) of the Government Code, respectively, refers to storage rooms, boiler rooms, passageways, attics, basements, garages, carports, and similar spaces that are located within or a part of existing multifamily dwelling structures that received a certificate of occupancy prior to January 1, 2022.

"Existing structure" means a lawfully constructed building that received final building permit clearance prior to January 1, 2022 and which has not been expanded on or after January 1, 2022.

"Lot types" means "corner lot," "interior lot," flag lot," "double frontage lot," "reverse d corner lot," and "key lot" as depicted in Figure 1-1 (Lot Types and Yards), below. Also includes a "cul-de-sac lot" that is located along the curved terminus formed by the bulb of a cul-de-sac street, as depicted by Figure 1-2 (Cul-de-Sac Lots) and a "pie-shaped lot" where the side lot lines are approximately radial to the curve of the street upon which it fronts , as depicted in Figure 1-3 (Pie-Shaped Lot). Any other lot type not defined herein shall be considered an "irregular lot".

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Figure 1 -1 – Lot Types and Yards

Figure 1-2 – Cul-de-Sac Lots Figure 2-3 – Pie-Shaped Lot

"Parcel" and "legal parcel" mean a single unit of land created by a partition or subdivision which, at the time of creation, complied with all procedural and substantive requirements of any applicable local, state or federal law. "Natural grade" means the average existing elevation of datum points located at each corner of a proposed primary dwelling unit, measured in feet above mean sea level (AMSL). "Neighborhood plan" means both the San To mas Area Neighborhood Plan and the Campbell Village Neighborhood Plan, as applicable.
"Nonconforming zoning condition" means a physical improvement on a property that does not conform with current zoning standards, and subject to Chapter 21.58 (Nonconforming Uses and Structures).
"Proposed housing development" means an application proposing no more than two primary dwelling units on a single parcel located within a single -family residential zone as authorized by Section 65852.21 of the Governmen t Code. This Chapter recognizes the following types of proposed housing developments. Any proposal not satisfying this definition shall not be considered a proposed housing development under this Chapter.

1. Construction of two (2) new primary dwelling units on either an existing parcel or a new parcel created from an urban lot split.

2. Construction of one (1) new primary dwelling unit and retention of one (1) existing primary dwelling unit on either an existing parcel or a new parcel created from an urban lot split.

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3. Retention of two (2) lawful nonconforming primary dwelling units where one or both units are subject to a proposed addition or alteration on an existing parcel.

4. Retention of two (2) existing lawful nonconforming primary dwelling units on a new parcel created from an urban lot split.

5. Construction of one (1) new primary dwelling unit and one (1) accessory dwelling unit (or junior accessory dwelling unit ) on a new parcel created from an urban lot split.

6. Retention of one (1) existing primary dwelling unit and construction of one (1) accessory dwelling unit (or junior accessory dwelling unit) on a new parcel created from an urban lot split.
"Public transportation" means a high-quality transit corridor, as defined in subdivision (b) of Section 21155 of the Public Resources Code, or a major transit stop, as defined in Section 21064.3 of the Public Resources Code.
"Single-family residential zone" means an R -1 (Single -family) z oning district as specified by Chapter 21.08 (Residential zoning districts). "Subdivision ordinance" means Title 20 of the Campbell Municipal Code. "Urban lot split" means a ministerial application for a parcel map to subdivide an existing parcel located within a single-family residential zone into two parcels, as authorized by Section 66411.7 of the Government Code.
"Yards" means the open space formed by the required building setbacks, as illustrated by Figure 1-1, Figure 1-2, and Figure 1-3.
"Zoning code" means Title 21 of the Campbell Municipal Code.

21.25.040 – General Eligibility

A proposed housing development may only be created on parcels satisfying all of the following general requirements:

A. Zoning District. A parcel that is located within a single-family residential zone.

B. Historic Property. A parcel that is not listed on the City of Campbell Historic Resource Inventory, as defined by Chapter 21.33 (Historic Preservation).

C. Legal Parcel . A parcel which has been legally created in compliance with the Subdivision Map Act (Government Code Section 66410 et seq.) and Subdivision Ordinance, as applicable at the time the parcel was created. The city engineer may require a certificate of compliance to verify conformance with this requirement.

D. Hazardous Waste Site. A parcel that is not identified as a hazardous waste site pursuant to Government Code Section 65962.5 or a hazardous waste site designated

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by the Department of Toxic Substances Control pursuant to Section 25356 of the Health and Safety Code, unless the State Department of Public Health, State Water Resources Control Board, or Department of Toxic Substances Control has cleared the site for residential use.

E. Flood Zone. A parcel that is not located within a special flood hazard area subject to inundation by the 1 percent annual chance flood (100 -year flood) on the official maps published by the Federal Emergency Management Agency unless a Letter of Map Revision prepared by the Federal Emergency Management Agency has been issued or if the proposed primary dwelling unit(s) is constructed in compliance with the provisions of Chapter 21.22 (Flood Damage Prevention) as determined by the floodplain administrator.

F. Earthquake Fault Zone. A parcel that is not located within a delineated earthquake fault zone as determined by the State Geologist on any official maps published by the State Geologist, unless the proposed housing development complies with applicable seismic protection building code standards adopted by the California Building Standards Commission under the California Building Standards Law (Part 2.5 (commencing with Section 18901) of Division 13 of the Health and Safety Code), and by any local building department under Chapter 12.2 (commencing with Section 8875) of Division 1 of Title 2.

G. Natural Habitat. A parcel that is not recognized by the City as a habitat for protected species identified as candidate, sensitive, or species of special status by state or federal agencies, fully protected species, or species protected by the federal Endangered Species Act of 1973 (16 U.S.C. Sec. 1531 et seq.), the California Endangered Species Act (Chapter 1.5 (commencing with Section 2050) of Division 3 of the Fish and Game Code), or the Native Plant Protection Act (Chapter 10 (commencing with Section 1900) of Division 2 of the Fish and Game Code).

21.25.050 – Zoning Standards

The following objective zoning standards supersede any other standards to the contrary that may be provided in the Zoning Code or a neighborhood plan, as they pertain to a proposed housing development under Government Code Section 65852.21 . Proposed housing developments shall be constructed only in accordance with the following objective zoning standards, except as provided by Section 21.25.100 (Exceptions).

A. Building Height/Number of Stories . The maximum building height and maximum number of stories shall be as specified by the applicable zoning district and/or a neighborhood plan. Building height shall be measured from finished grade except for properties subject to a neighborhood plan where maximum building height is measured from natural grade.

B. Floor Area Ratio and Lot Coverage. The maximum floor area ratio and lot coverage shall be as specified by the applicable zoning district and/or a neighborhood plan.

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C. Grading. A change in elevation (AMSL) from natural grade shall be limited to the minimum extent necessary to ensure adequate drainage as demonstrated by a grading and drainage plan prepared by a registered civil engineer.

D. Minimum Living Area. The minimum living area of a primary dwelling unit shall be 150 square feet, subject to the restrictions specified by Health and Safety Code Section 17958.1.

E. Parking. One (1) parking stall per primary dwelling unit shall be required, except for proposed housing developments located on parcels within one -half mile walking distance of either a public transportation stop or one block of a car share vehicle operating in accordance with California Vehicle Code section 22507.1.

Parking stalls may either be uncovered or covered (garage or carport) in compliance with the development standards of the applicable zoning district and/or a neighborhood plan and Chapter 21.28 (Parking and Loading), except that uncovered parking spaces may encroach into a required front or side yard fronting on a public street within an existing or proposed driveway that satisfies the minimum stall dimensions for residential parking spaces (9-feet wide by 20-feet deep).

F. Private Open Space. Each parcel shall maintain a minimum of 750 square feet of private open space per primary dwelling unit, satisfying the requirements of Section

21.08.030, Table 2-3 (General Development Standards – R-1 Zoning District).

G. Setbacks. Proposed housing developments shall be subject to the setback and building separation requirements specified by Table 1 -1 (Setback Requirements), below:

Table 1-1 – Setback Requirements
Setback (1) Requirement (2)
Property Line Setbacks
Front
Per the applicable
zoning district and/or
neighborhood plan
Garage Entry 25 feet
Interior Sides (3) 4 feet
Rear
Street Side 12 feet
Separation Between
Primary Dwelling Units (4)
For units located in front of or behind
each other 10 feet
For units located to the side of each
other 5 feet
Separation from
Accessory Structure(s)
If located in front of the accessory
structure 10 feet If located behind the accessory
structure
If located to the side of the
accessory structure 5 feet

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Exceptions:
(1) Cornices, eaves, sills, canopies, bay windows, or other similar architectural features may extend into required setbacks and building separation distances as specified Section

21.18.040.B.1.
(2) No setback shall be required for an existing structure, or a structure constructed in the same location and to the same dimensions as an existing structure. (3) No interior side setback shall be required for proposed housing development units constructed as attached townhomes, provided that the structures meet building code safety standards and are sufficient to allow conveyance as a separate fee parcel. (4) Except for primary dwellings constructed as a duplex or townhomes.

21.25.060 – Site Development Standards

The following site development standards augment those standards provided in Chapter 21.18 (Site Development Standards), Chapter 21. 28 (Parking and Loading), and Chapter 21.26 (Landscaping). Proposed housing developments shall be constructed only in accordance with the following site development standards , except as provided by Section

21.25.100 (Exceptions).

A. Air Condition ing Units. Air conditioning units and similar equipment such as generators, heating, and ventilation equipment shall be ground -mounted, screened from public view, and separated from property lines as required by Section 21.18.020 (Air conditioning units).

B. Driveways. Driveways shall comply with the requirements of Section 21.28.090 (Driveways and site access), except that the following standards shall apply:

1. Each driveway shall have a minimum width of eight feet up to a maximum width of eighteen feet;

2. Each driveway shall be e ntirely paved with either concrete or pavers. All other surfacing materials, including but not limited to gravel, decomposed granite, and asphalt, are prohibited; and

3. Only a single driveway curb -cut shall be permitted per parcel designed in accordance with the City’s Standard Specifications and Details for Public Works Construction.

C. Fencing. All new fencing shall comply with the requirements of Section 21.18.060 (Fences, walls, lattice and screens), except that fences shall be permitted up to seven feet in height, with or without lattice, where a six-foot tall fence would otherwise be permitted.

D. Front Yard Paving. No more than fifty percent of the front-yard setback area shall be paved as specified by Section 21.18.070 (Front yard paving) , except to allow a driveway with a width dimension not exceeding eight feet.

E. Landscaping Requirement. Front and street -side yards shall be irrigated and landscaped with a combination of plantings, including natural turf, ornamental grasses, groundcovers, shrubs, and trees , consistent with Section 21.26.030 (General

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landscaping requirements for all zoning districts) and the California Model Water Efficient Landscape Ordinance (MWELO), pursuant to Section 21.26.030.F (Water efficient). Properties subject to the San Tomas Area Neighborhood Plan (STANP) shall provide one tree per 1,500 square feet of net lot area.

F. Lighting. New exterior lighting fixtures shall be down-shielded and oriented away from adjacent properties consistent with Section 21.18.090 (Lighting design standards) and shall not emit more than one half foot candle of illumination at interior -side or rear property lines.

G. Stormwater Management. Stormwater runoff from impervious surfaces shall be directed to vegetated areas on the parcel and shall not drain onto adjacent parcels as specified by the Building Code, and as demonstrated by a grading and drainage plan prepared by a registered civil engineer.

H. Water Meter(s) and Sewer Cleanout(s): New water meters and sewer cleanouts shall be installed on the parcel containing the units they serve. Existing meters and cleanouts located within the public right-of-way shall be relocated onto the parcel upon construction of a new primary dwelling unit.

21.25.070 – Design Review Standards

The following objective design review standards apply to construction of new primary dwelling units and to any addition and/or alteration to existing primary dwelling units as part of a proposed housing development, except as provided by Section 21.25.100 (Exceptions).

Existing features inconsistent with these standards may remain provided they are not altered or removed.

A. Balconies/Decks. Rooftop terraces and decks are prohibited. Balconies shall only be permitted on the front elevation of a primary dwelling unit(s).

B. Building Colors. Each new primary dwelling unit shall incorporate at least two (2) colors (inclusive of trim) but not more than four colors. Paints shall be uniformly applied to wall surfaces and no more than one paint color may be applied per wall (not including the trim color). Additions to existing primary dwelling units shall incorporate the same building colors as the existing structure or otherwise comply with the requirements of this provision.

C. Columns and Pillars. Exterior columns and/or pillars shall not exceed a height of 14- feet or the plate height of the first-story, whichever is less.

D. Finished Floor. The finished floor of the first-story shall not exceed 18-inches in height as measured from finished grade.

E. Front Entryway . A n entry feature framing a front door shall not exceed 14 -feet in height as measured from finished grade.

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F. Front Doors. Front door openings shall not exceed a width of 6-feet or a height of 9- feet. Front entry doors for duplex units in a side -by-side configuration shall be separated by a distance equal to half the linear length of the structure’s front elevation.

G. Front Porch. Porches shall have a minimum depth of 5 -feet and a minimum width equal to thirty-three percent (33%) of the linear width of the front-facing wall.

H. Front Step-back. Second-story wall(s) that front a public street shall be recessed by 5-feet from the first-story exterior walls, as measured wall to wall.

I. Garages: Garages placed on the front elevation of a primary dwelling unit shall not exceed 50% of the linear extent of the front elevation.

J. Garage Conversions. The creation of a primary dwelling unit from the existing space of an attached garage shall include removal of garage doors which shall be replaced with architectural features the same as those of the existing primary dwelling unit, including the same wall cladding, building color(s), and window frames that remove any appearance that the structure was originally a garage.

K. Plate Height. The plate height of each story for a new primary dwelling unit shall be limited to 12-feet as measured from finished floor. The plate height of an addition to an existing primary dwelling unit shall match the plate height of the existing structure.

L. Roof Forms. For new primary dwelling units, roofs shall be limited to cross-hipped or hipped and valley forms with a minimum slope of 4:12 and a maximum slope of 8:12.

Gabled and dormer elements are allowed , but a ll other roof forms are prohibited.

Additions to existing primary dwelling units shall match the predominant roof form and roof pitch of the existing structure.

M. Roof Materials. For new primary dwelling units, no more than two (2) roofing materials shall be used, limited to asphalt composite shingles, photovoltaic shingles, standing seam metal, clay tile, concrete tile, and slate shingles . All other roofing materials are prohibited. Additions to existing primary dwelling units shall incorporate the same roofing material as the existing structure or otherwise comply with the requirements of this provision.

N. Stairways. A dwelling unit located entirely on a second story shall require a separate interior or exterior stairway. Enclosed stairways shall be included in the allowable floor area of the dwelling unit that it serves.

O. Wall Materials . For new primary dwelling units, n o more than two exterior wall materials shall be used, limited to stucco, horizontal or vertical fiber cement siding (in any profile), horizontal or vertical wood siding (in any profile), and horizontal or vertical engineered (composite) wood siding (in any profile). Stacked stone or brick veneer may be used as an accent material, limited to the lower half of the first story. Additions to existing primary dwelling units shall incorporate the same combination materials as the existing structure or otherwise comply with the requirements of this provision.

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P. Windows. All second -story windows less than eight feet from rear and inter ior-side property lines shall be clerestory with the bottom of the glass at least six feet above the finished floor. All other second -story windows shall be limited to the minimum number and minimum size as necessary for egress purposes as required by the Building Code.

Q. Utilities. Gas and electric meters and connections to gas and electric meters (i.e. connections to rooftop solar panels) shall be located on side walls adjacent to interior- side property lines.

21.25.080 – General Requirements and Restrictions

The following requirements and restrictions apply to all proposed housing developments, inclusive of existing and new primary dwelling units, as applicable:

A. Accessory Dwelling Units. In addition to the two primary dwelling units comprising a proposed housing development, accessory dwelling units may be allowed as follows , consistent with Chapter 21.23 (Accessory Dwelling Units) , except for proposed housing developments located on a new parcel created by an urban lot split which shall be limited to a total of two units as defined by Section 66411.7(j)(2) of the Government Code:

1. Parcels with two (2) single-family dwellings shall be permitted one (1) accessory dwelling unit and one (1) junior accessory dwelling unit;

2. Parcels with a duplex structure shall be permitted two (2) detached accessory dwelling units. The accessory dwelling units may be connected to each other in a side-by-side or front -to-back configuration or stacked with one unit located atop of the other unit forming a two-story structure not exceeding the maximum building height specified by Section 21.25.050 .A ( Building height/number of stories);

3. Creation of an interior accessory dwelling unit from an existing non -livable space shall only be permitted within an existing multifamily dwelling structure, as herein defined.

B. Building and Fire Codes . Title 18 and Title 17 of the Campbell Municipal Code, incorporating the Building Code and Fire Code, respectively, apply to all proposed housing developments.

C. Dwelling Unit Type . The primary dwelling unit(s) comprising a proposed housing development may take the form of detached single -family dwellings, attached townhomes, and/or duplexes. A duplex may consist of two dwelling units in a side-by- side or front -to-back configuration or stacked with one unit located atop of the other unit forming a two-story structure not exceeding the maximum building height specified by Section 21.25.050.A (Building height/number of stories).

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D. Encroachment Permits. Separate encroachment permits for the installation of utilities to serve a proposed housing development shall be required. Applicants shall apply for and pay all necessary fees for utility permits for sanitary sewer, gas, water, electric and all other utility work.

E. Park Impact Fee. A fee in-lieu of parkland dedication shall be paid in association with the creation of any new dwelling units in compliance with Chapter 13.08 (Park Impact Fees and Park Land Dedication Developments).

F. Restrictions on Demolition . The proposed housing development shall not require demolition or alteration involving removal of more than 25 percent of the existing exterior structural walls, of any of the following types of housing structures:

1. Housing that is subject to a recorded covenant, ordinance, or law that restricts rents to levels affordable to persons and families of mod erate, low, or very low income;

2. Housing that is subject to any form of rent or price control through a public entity’s valid exercise of its police power;

3. Housing that has been occupied by a tenant in the last three years. This shall be evidenced by clai ming of the Homeowners' Exemption on the Santa Clara County assessment roll.

G. Short-Term Rentals. Leases for durations of less than 30 days, including short -term rentals are prohibited. The community development director shall require recordation of a deed restriction documenting this requirement prior to issuance of a building permit.

H. Subdivision and Sales. Except for the allowance for an urban lot split provided in Chapter 20.14 (Urban Lot Splits), no subdivision of land or air rights shall be allowed in association with a proposed housing development, including creation of a stock cooperative or similar common interest ownership arrangement. In no instance shall a single primary dwelling unit be sold or otherwise conveyed separate from the other primary dwelling unit.

21.25.090 – Application Process

Applications for proposed housing developments shall be submitted and processed in compliance with the following requirements:

A. Application Type. Proposed housing developments shall be reviewed ministerially by the community development director through consideration of a zoning clearance in compliance with Chapter 21.40 (Zoning Clearances). The permitting provisions of Chapter 21.42 (Site and Architectural Review ) and by reference any neighborhood plan, shall not be applied.

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B. Application Filing. A zoning clearance application for a proposed housing development, including the required application materials and fees, shall be filed with the community development department in compliance with Chapter 21.38 (Application Filing, Processing and Fees) . A zoning clearance application may only be found complete if it satisfies the requirements of this Chapter.

C. Building Permits. Issuance of a zoning clearance shall be required prior to issuance of building permit(s) for the new and/or modified dwelling units comprising the proposed housing development , consistent with Section 21.56.050 (Issuance of building permits).

D. Approval Expiration. Approval of a Zoning Clearance shall expire twelve months of after issuance, as specified by Section 21.56.030 (Permit time limits and extensions), except when a proposed housing development is comprised of two dwelling units .

Approval of a zoning clearance for creation and/or alteration of two dwelling units shall incorporate two pre -approved phases pursuant to Section 21.56.030. A.3.b (Pre- approved phases) , where each phase provides twelve months for the applicant to secure issuance of a building permit for each approved dwelling unit. Failure to secure issuance of a building permit for Phase 1 (first dwelling unit) shall result in the expiration of the zoning clearance. Failure to obtain a building permit for Phase 2 (second dwelling unit) within the successive twelve-month period shall result in the expiration of approval for Phase 2 without effect to Phase 1. Such partial expiration of the zoning clearance shall not preclude application for a new zoning clearance for the second dwelling unit nor result in a violation of this Title. An applicant may request an extension of the permit expiration date to any of the twelve-month approval periods pursuant to Section 21.56.030.C (Extensions of time).

E. Denial. The community development director may deny a proposed housing development project only if the building official makes a written finding, based upon a preponderance of the evidence, that the proposed housing development would have a specific, adverse impact, as defined and determined in paragraph (2) of subdivision (d) of Section 65589.5 of the Government Code , upon public health and safety or the physical environment and for which there is no feasible method to satisfactorily mitigate or avoid the specif ic, adverse impact . Expiration of a zoning clearance application following a determination that the application is incomplete pursuant to Section

21.38.040.C (Expiration of application) shall not constitute a denial.

F. Appeals. As specified by Chapter 21.62 (Appeals), zoning clearances are ministerial and are not subject to an appeal.

21.25.100 – Exceptions

If any of the zoning, site development, or design review standards provided in this Chapter would have the effect of physically precluding construction of up to two primary dwelling units or physically preclude either of the two primary dwelling units from being at least eight hundred square feet in floor area, the community development director shall grant an exception to the applicable standard(s) to the minimum extent necessary as specified by

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this section. An exception request shall be explicitly made on the application for a zoning clearance for a proposed housing development.

A. Determination. Exceptions shall be granted by the community development director according to the following order of priority (ordered from the most preferred to the least preferred) until the physical constraint to a proposed housing development is resolved, provided that if an exception does not remove a physical constraint, the exception shall not be granted.

1. Elimination of the rear setback (for parcels with a rear property line abutting a non-residentially zoned property or roadway);

2. Elimination of the interior -side setback (for parcels with a side property line abutting a non-residentially zoned property or street);

3. Reduction of the street-side setback to 5-feet;

4. Reduction of the garage entry setback/minimum driveway depth to 20-feet;

5. Increase to the maximum floor area ratio (FAR);

6. Increase to the maximum lot coverage;

7. Reduction to the minimum required private open space;

8. Reduction of the front/rear building separation between structures to 5-feet;

9. Reduction or elimination of any other standard not otherwise identified.

B. Remedy. Where a disagreement with the community development director's application of this section occurs, the proced ures for an Interpretation provided in Section 21.020.030 (Procedures for interpretations) shall be followed, including the provisions for an appeal.

SECTION 6. Adopting an Urban Lot Splits Chapter. New Chapter 20.14 (Urban Lot Splits) is hereby added to Title 20 ( Subdivision and Land Development ) of the Campbell Municipal Code to read as follows:

CHAPTER 20.14 (URBAN LOT SPLITS)

20.14.010 – Purpose

This Chapter establishes exceptions to the Zoning Code and Subdivision Ordinance and provides permit procedures to allow urban lot splits allowed by Senate Bill No. 9 (2021), as codified in Government Code Section Sections 66452.6 and 66411.7 . The provisions of this Chapter shall supersede any other provision to the contrary in the Subdivision Ordinance or the Zoning Code. Subdivision standards provided for in the Subdivision Ordinance that are not affected by this Chapter shall remain in effect.

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20.14.020 – Applicability

This Chapter is applicable only to voluntary applications for urban lot splits. Owners of real property or their representatives may continue to exercise rights for property development in conformance with this Title. Applications that do not satisfy the d efinitions for an urban lot split provided in Section 21.25.030 (Definitions) of the Zoning Code shall not be subject to this Chapter. It is not the intent of this Chapter to override any lawful use restrictions as may be set forth in Conditions, Covenants, and Restrictions (CC&Rs) of a common interest development.

20.14.030 – Definitions

The meaning of terms used in the Chapter shall be as defined by Section 21.72.020 (Definitions of specialized terms and phrases), Section 21.23.120 (Definitions), and Section

21.25.030 (Definitions) of the Zoning Code. Where a conflict may exist between these sections, the definitions provided in Sections 21.25.030 (Definitions) shall prevail.

20.14.040 – Subdivision Standards

The following objective subdivision standards supersede any other standards to the contrary that may be provided in the Subdivision Ordinance, Zoning Code, or a pplicable neighborhood plan as they pertain to creation of an urban lot split under Section 66411.7 of the Government Code.

A. Allowable Lot Types . Any newly created parcel satisfying the criteria provid ed by Section 21.25.040 (General Eligibility) of the Zoning Code may be approved for an urban lot split, irrespective of its current configuration. However, t he allowed creation of specific lot types resulting from an urban lot split is limited to those specified in Table 1-1 (Allowed Lot Types), below. Lot types identified with an (A) are allowable. Lot types identified with a (P) are prohibited and shall not be created.

Table 1-1 – Allowed Lot Types
Lot Type (1) Allowability
Interior Lot A
Corner Lot A
Reverse Corner Lot A
Flag Lot A
Key Lot A
Cul-de-Sac Lot A
Pie-Shaped Lot A
Double Frontage Lot P
Irregular Lot P
(1) Lot types are defined and illustrated in Section 21.25.030, Figure 1-1 (Lot Types and Yards), Figure 1-2 (Cul-de-Sac Lots), and Figure 1-3 (Pie-Shaped Lot) of the Zoning Code.

B. Flag Lots. The access corridor of a flag lot parcel (as illustrated in Section 21.25.030, Figure 1-1 of the Zoning Code) shall be in fee as part of the parce l and not as an easement and shall be of a minimum width of 12-feet and a maximum width of 15-feet

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and be entirely paved with either concrete or pavers, consistent with the Fire Code as determined by the fire chief.

C. Lot Lines. The side lines of all parcels, so far as possible, shall be at right angles to streets or radial or approximately radial to curved streets and to center points of cul- de-sac turning circles.

D. Minimum Lot Size. Each new parcel shall be approximately equal in lot area provided that one parcel shall not be smaller than 40 percent of the lot area of the original parcel proposed for subdivision. In no event shall a new parcel be less than 1,200 square feet in lot area. The minimum lot area for a flag lot shall be exclusive of the access corridor as illustrated in Section 21.25.030, Figure 1-1 of the Zoning Code

E. Minimum lot width. Each new parcel shall maintain a minimum lot width of 25 -feet.

The calculation of lot width for a flag lot shall exclude the access corridor as illustrated in Section 21.25.030, Figure 1-1 of the Zoning Code.

F. Minimum Public Frontage . Each new parcel shall have frontage upon a street dedicated in fee as a public street wi th a minimum frontage dimension of 25 -feet, except for flag-lots which shall have a minimum frontage dimension of 12-feet.

G. Number of Lots. The parcel map to subdivide an existing parcel shall create no more than two new parcels.

20.14.050 – General Requirements and Restrictions

The following requirements and restrictions apply to all proposed urban lot splits allowed by this Chapter:

A. Adjacent Parcels. Neither the owner of the parcel being subdivided nor any person acting in concert with the owner has previously conducted an urban lot split to create an adjacent parcel as provided for in this Chapter.

B. Dedication and Easements: The city engineer shall not require dedications of rights- of-way nor the construction of offsite improvements, however, may require recording of easements necessary for the provision of public services and facilities.

C. Existing Structures. Existing structures located on a parcel subject to an urban lot split shall not be subject to a setback requirement. However, any such existing structures shall not be located across the shared property line resulting from an urban lot split, unless the structure is converted to an attached townhome unit as provided for in Section 21.25.050, Table 1-1 (Setback Requirements, Exception No. 4) of the Zoning Code. All other existing structures shall be modified, demolished, or relocated prior to recordation of a parcel map.

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D. Grading. A change in elevation (AMSL) from natural grade shall be limited to the minimum extent necessary to ensure adequate drainage as demonstrated by a grading and drainage plan prepared by a registered civil engineer.

E. Intent to Occupy. The applicant shall sign an affidavit provided by the community development director attesting that the applicant intends to occupy one of the newly created parcels as their principal residence for a minimum of three years from the date of the approval of the urban lot split (or issuance of a certificate of occupancy for a new dwelling in the case of a vacant lot) . The affidavit shall be recorded on the title of the parcel concurrently with recordation of the parcel map.

This requirement shall not apply to an applicant that is "community land trust, " as defined in clause (ii) of subparagraph (C) of paragraph (11) of subdivision (a) of Section 402.1 of the Revenue and Taxation Code, or a "qualified nonprofit corporation " as described in Section 214.15 of the Revenue and Taxation Code.

F. Non-Conforming Conditions. The City shall not require, as a condition of approval, the correction of nonconforming zoning conditions. However, no new nonconforming conditions may result from t he urban lot split other than as specified by Section

21.25.050, Table 1-1 (Setback Requirements) of the Zoning Code.

G. Number of Remaining Units . No parcel created through an urban lot split shall be allowed to include more than two existing dwelling units as defined by Government Code section 66411.7(j)(2). Any excess dwelling units that do not meet these requirements shall be relocated, demolished, or otherwise removed prior to approval of a parcel map.

H. Park Impact Fee. A fee in-lieu of parkland dedication pursuant to Chapter 20.24 (Park Impact Fees and Park Land Dedication Subdivisions) shall be paid prior to recordation of the parcel map.

I. Prior Subdivision. A parcel created through a prior urban lot split may not be further subdivided under the provisions of this Chapter. The subdivider shall sign a covenant provided by the community development director documenting this restriction. The convent shall be recorded on the title of each parcel concurrent with recordation of the parcel map.

J. Restrictions on Demolition . The proposed urban lot split shall not require the demolition or alteration involving removal of more than 25 percent of the existing exterior structural walls of any of the following types of housing:

1. Housing that is subject to a recorded covenant, ordinance, or law that restricts rents to levels affordable to persons and families of moderate, low, or very low income;

2. Housing that is subject to any form of rent or price control through a public entity’s valid exercise of its police power;

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3. Housing that has been occupied by a tenant in the last three years.

K. Storm Drain Area Fee . Prior to recordation of a parcel map, the applicant shall pay the required Storm Drain Area fee, as set by the City's Schedule of Fees and Charges.

L. Stormwater Management. The subdivision shall comply with the requirements of the City's National Pollution Discharge Elimination System (NPDES) Permit as implemented by Chapter 14.02 (Stormwater Pollution Control), and as demonstrated by a grading and drainage plan prepared by a registered civil engineer.

M. Utilities. Utilities serving new parcels created through an urban lot split shall not cross property l ines. The requirements of the utility providers shall be satisfied prior to recordation of a parcel map.

20.14.060 – Application Process

Applications for urban lot splits shall be submitted and processed in compliance with the following requirements:

A. Application Type . An urban lot split shall be reviewed by the city engineer as a ministerial application for a parcel map. A tentative parcel map shall not be required.

B. Concurrent Submittal. A parcel map for an urban lot split may not be approved except in conjunction with a concurrently submitted application for a zoning clearance pursuant to Section 21.25.090 (Application process) of the Zoning Code. Development of the new parcels is limited to the proposed housing development approved by the zoning clearance unless an application for a new zoning clearance is issued for a different proposed housing development.

C. Application Filing. An application for a parcel map for an urban lot split, including the required application materials and filing fee, shall be filed with the public works department in compliance with Chapter 20.16 (Parcel Map Procedures).

D. Referral. The city engineer shall refer the parcel map application to the community development director, fire chief, and utility agencies for review prior to recordation.

E. Denial. The city engineer may deny an urban lot split only if the building official makes a writte n finding, based upon a preponderance of the evidence, that a proposed housing development located on the proposed new parcels would have a specific, adverse impact, as defined and determined in paragraph (2) of subdivision (d) of Section 65589.5, upon public health and safety or the physical environment and for which there is no feasible method to satisfactorily mitigate or avoid the specific, adverse impact.

F. Appeals. A decision of the city engineer on a parcel map for an urban lot split is a ministerial action and not appealable.

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SECTION 7. Clarification to Architectural Features Encroachment Exception. Campbell Municipal Code Section 21.18.040.B.1 (Architectural features) is amended to read as follows with underlining indicating new text and strikeouts (strikeout) indicating deleted text:

1. Architectural features. Cornices, eaves, sills, canopies, bay windows totaling not more than 10 feet in width, or other similar architectural features may extend or project into a required side yard or rear yard, or required building separation distance, not more than 24 inches and may extend or project into a required front yard or street-side yard not more than 30 inches. Chimneys may project into a required front, side, street-side, or rear yard not more than 24 inches. No architectural feature may extend closer than three feet to any property line.

SECTION 8. Revisions Pertaining to JADU Provisions . Campbell Municipal Code Section

21.23.040 (Junior Accessory Dwelling Unit Developmen t Standards) is amended to read as follows with underlining indicating new text and strikeouts (strikeout) indicating deleted text:

21.23.040 - Junior Accessory Dwelling Unit Development Standards

A junior accessory dwelling unit shall be constructed only on a parcel developed with no more than one single-family dwelling and only in accordance with the following development standards:

A. Maximum floor area. The junior accessory dwelling unit shall not exceed 500 square feet in area. The occupied floor area shall be within the allowable floor area of a primary dwelling unit or detached accessory dwelling unit, as specified by Section 21.23.030.D (Floor area ratio and lot coverage).

B. Associated Dwelling. The junior accessory dwelling unit shall be contained entirely within a n existing or proposed primary dwelling unit (including within an existing attached garage) or a detached accessory dwelling unit utilizing one of the allowable two three bedrooms.

C. Kitchen. The junior accessory dwelling unit shall contain a kitchen or an efficiency kitchen. satisfying the following the criteria:

1. A sink with a maximum waste line diameter of one and one-half inches.

2. A cooking facility with appliances that do not require electrical service greater than 120 volts, or natural or propane gas.

3. A food preparation counter and storage cabinets that are of reasonable size in relation to the size of the junior accessory dwelling unit.

D. Bathroom. Bathroom facilities may be separate from or shared with the primary dwelling unit or detached accessory dwelling unit.

E. Entrance. The junior accessory dwelling unit shall include an exterior entrance separate from the main entrance to the primary dwelling unit or detached accessory

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dwelling unit , with an interior entry into t he main living area. The junior accessory dwelling unit may include a second interior doorway for sound attenuation.

F. Parking. No parking shall be required for a junior accessory dwelling unit.

G. Owner occupancy required. A property with a junior accessory dwelling unit shall be occupied by the property owner, who shall reside in either the junior accessory dwelling unit or the primary dwelling unit. The community development director shall require recordation of a deed res triction documenting this restriction prior to issuance of a building permit.

SECTION 9: Kitchen Definition: The definition of "Kitchen facilities" in Campbell Municipal Code Section 21.72.020(k) is amended to read as follows, with underlining indicating new text and strikeouts (strikeouts) indicating deleted text:
"Kitchen facilities" means any room or area designed, intended, or used for the cooking and preparation of food with appliance(s) for cooking or heating food or beverages, such as a stove, oven, microwave, toaster, or hot plate, installed (either temporarily or permanently).
"Kitchen facilities" and "kitchen" means a room or area designed for the cooking, preparation, and storage of food. When found in a dwelling unit, a kitchen shall include a free-standing cooking range or built-in cooktop, oven, ventilation, sink, refrigerator, food preparation countertop, and food storage cabinetry.

SECTION 10 : Efficiency Kitchen Definition : The following definition is added to Campbell Municipal Code Section 21.23.120 between the definitions of "Driveway" and " Existing space of an accessory structure" to read as follows, with underlining indicating new text:
"Efficiency kitchen" means a cooking facility for a junior accessory dwelling unit which contains a sink, food preparation counter, food storage cabinet, and electrical circuitry suitable for common kitchen appliances.

SECTION 11: JADU Definition: The definition of "Junior accessory dwelling unit" in Campbell Municipal Code Section 21.23.120 is amended to read as follows, with underlining indicating new text and strikeouts (strikeouts) indicating deleted text:
"Junior accessory dwelling unit" mean s a dwelling unit that is no more than five hundred square feet in size and contained entirely within an existing or proposed single-family dwelling or detached accessory dwelling unit. A junior accessory dwelling unit may include separate sanitation facilities or may share sanitation facilities with the existing structure.

SECTION 12. Exception to FAR/Lot Coverage . Campbell Municipal Code Section

21.23.030.D (Floor area ratio and lot coverage) is amended to read as follows with underlining indicating new text and strikeouts (strikeout) indicating deleted text:

D. Floor area ratio and lot coverage. Creation of an accessory dwelling unit shall comply with the maximum floor area ratio and maximum lot coverage as specified by the applicable zoning district and/or area or neighborhood plan , except to the extent

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necessary to allow an accessory dwelling unit no larger than eight hundred square feet.

In the case of a parcel within the P -D (Planned Development) zoning district the maximum floor area ratio and maximum lot coverage shall be equal to the standards provided by the zoning district that directly corresponds to the parcel's General Plan land use designation as specified by Section 21.04.020, Table 2-1.

Exception: Up to eight hundred square feet of gross floor area of an accessory dwelling unit shall be exempt from the applicable maximum floor area ratio and maximum lot coverage requirements. This exception does not apply to junior accessory dwelling units.

SECTION 13. JADU Parking Clarification. Campbell Municipal Code Section 21.23.030.J.1, Table – 3-1(d) (Parking Standards) is amended to read as follows with underlining indicating new text and strikeouts (strikeout) indicating deleted text:

SECTION 14 . ADU Setback Exception . Campbell Municipal Code Section 21.23.030.E., Table – 3-1(b) (Setback Standards) is amended to read as follows with underlining indicating new text and strikeouts (strikeout) indicating deleted text:

Table 3-1(b) – Setback Standards
Setback (1)
Requirement (2)
Detached ADUs Interior and
Attached ADUs
Property
Line
Setbacks
Front
The same standard
as for the primary
dwelling unit
The same
standard as for
the primary
dwelling unit Interior Sides 4 feet
Table 3-1(d) – Parking Standards
Standard Detached ADUs Interior and
Attached ADUs
Required Parking 1 space per unit or per
bedroom, whichever is less Not Required
Replacement
Parking
Existing parking spaces that are removed (in
whole or in part) in conjunction to allow for with the
creation of an accessory dwelling unit or junior
accessory dwelling unit (e.g., by demolition or
conversion of a garage) are not required to be
replaced.

Exception: No "required parking", as specified by this table, shall be required for a detached accessory dwelling unit that is contained within the existing space of an accessory structure. Further, no "required parking" shall be required for an accessory dwelling unit that is located on a parcel that is within (1) a walking distance of one-half mile of public transit, (2) a designated historic district, (3) one block of a City-licensed car share vehicle, or (4) the boundaries of a permanent residential parking permit program, where the City does not offer parking permits to occupants of an accessory dwelling unit.

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Rear
Street Side 12 feet
Separation
from
Primary
Dwelling
Unit (3)
If located in front of
the primary dwelling
unit 10 feet
Not applicable If located behind the
primary dwelling unit
If located to the side of
the primary dwelling
unit
5 feet
Separation
from
Accessory
Structure(s)
(3)
If located in front of the
accessory structure 10 feet
As specified by
Section

21.36.020
(Accessory
structures)
If located behind the
accessory structure
If located to the side of
the accessory structure 5 feet
Exceptions:
(1) Cornices, eaves, sills, canopies, bay windows, or other similar architectural features may extend into required setbacks and building separation distances as specified Section

21.18.040.B.1
(2) No setback shall be required for an existing accessory structure that is converted (in whole or in part) to an accessory dwelling unit, nor for an accessory dwelling unit created within the existing space of a primary dwelling unit provided that the existing side and rear setbacks are sufficient for fire safety.
(3) Except for accessory dwelling units that are no larger than eight hundred square feet and no taller than 16-feet, which shall be separated from other structures only to the extent that may be required by the building or fire code.

A detached accessory dwelling unit created through this exception shall not be expanded in any manner, including expansion of the living area or attachment of a garage or other uninhabitable space (except to allow an entry area for ingress and egress no greater than 150 square feet), and shall not be permitted to exercise the setback exception for non-conforming structures provided for in Section 21.58.050.F (Exceptions).

SECTION 15. Non-Conforming Limitations: Campbell Municipal Code Section 21.58.050.F (Exceptions) is amended to read as follows with underlining indicating new text and strikeouts (strikeout) indicating deleted text:

F. Exceptions. The following exceptions apply to all lawfully constructed struct ures, except for detached including accessory dwelling units:

SECTION 16. Special Provisions for Multi-family Residential Properties: Campbell Municipal Code Section 21.23.050 (Special Provisions for Multi -family Residential Properties) is amended to read as follows with underlining indicating new text and strikeouts ( strikeout) indicating deleted text:

21.23.050 – Special Provisions for Multi-family Residential Properties

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The following requirements and restrictions apply to creation of accessory dwelling units on multi-family residential properties and shall supersede any provision to the contrary within this Chapter.

A. Defined. For the purposes of this section, the term “multifamily dwelling structure” shall have the same meaning as “Duplex,” “Triplex,” “Fourplex,” and “apartment” as defined by Chapter 21.72 (Definitions).

B. Conversion of non-living areas. A minimum of one (1) accessory dwelling unit and up to one (1) accessory dwelling unit for every four (4) dwelling units within a multifamily dwelling structure may be created within existing non -livable space(s), including, but not limited to, storage rooms, boiler rooms, pas sageways, attics, basements, carports, or garages, provided that the dwellings comply with the California Building Code. Accessory dwelling units created through this provision shall not be expanded in any manner, except to allow an entry area for ingress and egress no greater than one hundred fifty square feet. Creation of additional living area within the existing building envelope (i.e., mezzanine) shall not be considered an expansion provided that the accessory dwelling unit does not exceed eight hundred square feet.

C. Detached accessory dwelling units . In addition to the accessory dwelling units allowed by subsection B, not more than two (2) detached accessory dwelling units may allowed subject to the standards, requirements, and restrictions of this Chapter. The accessory dwellings units may be detached from each other or may be connected in a side-by-side or front-to-back configuration or stacked with one unit located atop of the other unit forming a two -story structure not exceeding the maximum building height specified by Section 21.23.030.I (Maximum height and stories).

SECTION 17. Approval Process : Campbell Municipal Code Section 21.23.080 (Approval Process) is amended to read as follows with underlining indicating new text and strikeouts (strikeout) indicating deleted text:

21.23.080 – Approval Process

The City shall issue a ministerial building permit for an accessory dwelling unit or junior accessory dwelling unit that is consistent with the provisions of this Chapter, as determined by issuance of a Zoning Clearance in co mpliance with Chapter 21.40 (Zoning clearances), within sixty (60) days of submittal of a complete building permit application. If the permit application to create a junior accessory dwelling unit is submitted with a permit application to create a new sing le-family dwelling on the lot, the City may delay acting on the permit application for the junior accessory dwelling unit until the permitting agency acts on the permit application to create the new single -family dwelling, but the application to create the junior accessory dwelling unit shall still be considered ministerially without discretionary review or a hearing.

Notwithstanding the foregoing However, physical expansion of an existing primary dwelling unit (i.e., addition) or construction of a new primary dwelling unit located on a parcel that is subject to design review pursuant to Chapter 21.42 (Site and architectural review), Chapter 21.33 (Historic preservation), or Chapter 21.12.030 (P -D (Planned development)

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zoning district) shall first receive a pproval of the appropriate land use permit prior to a submittal of a ministerial building permit application for an accessory dwelling unit. The 60 - day period for processing the application for the accessory dwelling unit or junior accessory dwelling shall be tolled during any delay requested by the applicant.

SECTION 18. Deletion of Utility Meter Provisions : Campbell Municipal Code Section

18.20.030 (Utility meters) is hereby deleted.

SECTION 19. Deletion of ADU Master Plan provisions : Campbell Municipal Code Section

21.23.100 (Master Development Plan) is hereby deleted.

SECTION 20. Public Improvements : Campbell Municipal Code Section 11.24.180.D is amended to read as follows with underlining indicating new text and strikeouts ( strikeout) indicating deleted text:

D. Additions, alterations or repairs to any existing residential structure, including excluding construction of an accessory dwelling unit or junior accessory dwelling unit , within a five-year period that add less than fifty percent of the size, measured in square feet, to the existing structural coverage shall be exempt from the requirement of this chapter to install street improvements unless the contemplated additions and use of the property in question will result in an im mediate danger to the public safety, as determined by the city engineer.

SECTION 21. Existing Dwelling Units : Campbell Municipal Code Section 21.23.020.B is amended to read as follows with underlining indicating new text and strikeouts ( strikeout) indicating deleted text:

B. Dwelling unit. A parcel that is presently developed with at least one lawfully constructed primary dwelling unit or that will be developed with a primary dwelling unit in conjunction with the creation of an accessory dwelling unit. For the purposes of this Chapter, a primary dwelling unit shall only include a proposed or existing detached single-family dwelling, except for accessory dwelling units constructed on multi- family residential properties pursuant to Section 21.23.050 (Special Provisions for Multi - family Residential Properties).

SECTION 22. ADU Design Requirements: Campbell Municipal Code Section 21.23.030.K.1 is amended to read as follows with underlining indicating new text and strikeouts ( strikeout) indicating deleted text:

1. Detached accessory dwelling units. Detached accessory dwelling units larger than eight hundred square feet and taller than sixteen feet, if not entirely located behind the primary dwelling unit, shall maintain the appearance of the primary dwelling unit, by using the same wall cladding, trim detail, roofing material, building color(s), window frames/trim, and the predominant roof form and roof pitch.

SECTION 23. Special Provisions for Historic Properties : Campbell Municipal Code Section

21.23.060 is amended to read as follows with underlining indicating new text and strikeouts (strikeout) indicating deleted text:

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21.23.060 Special Provisions for Historic Properties.

The following requirements and restrictions apply to creation of accessory dwelling units on properties listed on the historic resource inventory, and shall supersede any provision to the contrary within this Chapter.

A. Type. Only detached and interior accessory dwelling units shall be permitted.

B. Placement. A detached accessory dwelli ng unit shall be placed behind the primary dwelling unit and be located on the rear half of the lot.

C. Height. A detached accessory dwelling unit shall be a maximum of sixteen feet in height and not exceed one story.

D. Design. The design of the detached accessory dwelling unit shall maintain the appearance of the primary dwelling unit, by using similar wall cladding, trim detail, roofing material, building color(s), window frames/trim and divisions, and the predominant roof form and roof pitch.

E. Exception: Detached accessory dwelling units that are eight hundred square feet or smaller and no taller than sixteen feet are not subject to the design or placement requirements of this section. Variations from these provisions may be granted in compliance with Section 21.33.150.B.2 (Zoning exception), upon finding by the Planning Commission, with recommendation by the Historic Preservation Board, that the variation would not adversely impact the historic resource.

SECTION 24. Maximum Size: Campbell Municipal Code Section 21.23.030.G is amended to read as follows with underlining indicating new text and strikeouts ( strikeout) indicating deleted text:

G. Maximum Size. The maximum floor area for a detached accessory dwelling unit shall be one thousand two hundred square feet , except for a unit contained within the existing space of an accessory structure, which is limited to the size of the accessory structure. The maximum living area for an attached or interior acces sory dwelling unit shall not exceed fifty percent of the living area of the primary dwelling unit, except that a minimum allowable living area of eight hundred and fifty square feet shall be permitted.

SECTION 25. Allowable Rooms: Campbell Municipal Code Section 21.23.030.H is amended to read as follows with underlining indicating new text and strikeouts ( strikeout) indicating deleted text:

H. Allowable rooms. An accessory dwelling unit shall be limited to a maximum of two three bathrooms and two three bedrooms (defined as a habitable room with an area not less than seventy square feet as described by California Building Code section 1208.3). An accessory dwelling unit shall also contain no more than one kitchen facility and no more than one living room (defined as a habitable room with an area not less than 120 square feet as described by California Building Code section 1208.1). No other rooms or closets larger than one hundred twenty square feet shall be permitted unless they

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are fully interior within the accessory dwelling unit without any exterior walls from which windows could be created.

SECTION 26. Exception to Open Space . Campbell Municipal Code Section 21.23.030.C (Private open space) is amended to read as follows with underlining indicating new text and strikeouts (strikeout) indicating deleted text:

C. Private oOpen space. Creation of an accessory dwelling unit shall not reduce the required private open space to less than that required specified by the applicable zoning district and/or area or neighborhood plan , except to the extent necessary to allow an accessory dwelling unit no larger than eight hundred square feet. In the case of a parcel within the P-D (Planned Development) Zoning District the required private open space shall be equal to the standard provided by the zoning district that directly corresponds to the parcel's General Plan land use designation as specified by Section

21.04.020, Table 2-1.

Exception: Accessory dwelling units that are eight hundred square feet or smaller and no taller than sixteen feet may encroach into the required open space area of a parcel.

SECTION 27. Floor Area Calculation. Campbell Municipal Code Section 21.02.020 (Rules of interpretation) is amended to add a new subsection 'H,' as follows with underlining indicating new text:

H. Gross floor area. When this Zoning Code specifies the maximum allowable floor area of a structure or a portion of a structure, the floor area shall be calculated on a "gross" basis, consistent with the definition of "Floor area, gross" provided in Chapter 21.72 (Definitions), unless otherwise specified.

SECTION 28. Parking Stall Configuration: Campbell Municipal Code Section 21.23.030.J.2 (Parking configuration) is amended to add a new sub-paragraph 'e,' as follows with underlining indicating new text:

e. Required parking stalls may be designed to allow vehicles to back out onto an abutting public street provided that the street is classified as "local street" by the General Plan roadway classification diagram.

SECTION 29 (SEVERABILITY): If any section, subsection, sentence, clause, or phrase of this ordinance is for any reason held to be invalid or unconstitutional by a decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of the ordinance. The City Council hereby declares that it would h ave passed this ordinance and each and every section, subsection, sentence, clause, or phrase not declared invalid or unconstitutional without regard to whether any portion of the ordinance would be subsequently declared invalid or unconstitutional.

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SECTION 30 (EFFECTIVENESS) This Ordinance shall become effective thirty (30) days following its passage and adoption and shall be published, one time within fifteen (15) days upon passage and adoption in a newspaper of general circulation for the City of C ampbell, County of Santa Clara.

PASSED AND ADOPTED this _____ day of ____________, 2022 by the following roll call vote:

AYES: Councilmembers:

NOES: Councilmembers:

ABSENT: Councilmembers:

APPROVED:

________________________
Paul Resnikoff, Mayor
ATTEST:

_______________________________
Andrea Sanders, City Clerk

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Attachment: Ordinance 2286 SB-9 (Second Reading of Ordinance 2286) City
Council
Report
TITLE: Acceptance of Donations from the Campbell Police Foundation

RECOMMENDED ACTION
It is recommended that the City Council accept donations in the aggregate am ount of $2,700 from the Campbell Police Foundation for supplies, and support for the Campbell Police Department.

BACKGROUND
The Campbell Police Foundation is an independent 501(c)(3) non-profit organization led by a group of dedicated community members w ho have created a partnership with the Police Department. From essential equipment, to specialized training, and innovative programs that would otherwise be unfunded, the support provided by the Foundation directly improves public safety and supports the Police Department’s mission.

DISCUSSION
From July 1, 2021, until June 30, 2022, the Campbell Police Foundation donated the following items to the Campbell Police Department:

Donation Description Cost
Challenge Coins Campbell PD Challenge Coins $1,200
Food & Drinks Food & Drinks for PD Events $1,500
TOTAL $2,700

FISCAL IMPACT
The items provided by the Campbell Police Foundation are non -cash donations. As such, a budget adjustment is not necessary to recognize their receipt nor expend their proceeds. All non-cash items were received by the Police Department in the prior fiscal year.

Item: 7
Category: CONSENT CALENDAR
Meeting Date: August 16, 2022
7 Packet Pg. 87
Acceptance of Donations from the Campbell Police Foundation Page 2 of 2 Prepared by:

Dan Livingston, Police Captain
Reviewed by:

Gary Berg, Police Chief
Approved by:

Brian Loventhal, City Manager
7 Packet Pg. 88

City
Council
Report
TITLE: Amendment to the Classification and Salary Plan – Public Works Superintendent, Park Maintenance Supervisor, Deputy City Clerk, and Building Division Manager/ Building Official (Resolution/Roll Call Vote)

RECOMMENDED ACTION
That the City Council adopt the Resolution amending the Classification and Salary Plan.

DISCUSSION
As recruitments become necessary, Human Resources continues to revise and update job descriptions as appropriate, specifically related to specific tasks performed as they currently exist, ADA requirements, and how it contributes to organizational success of the City. Four job classification updates are recommended in this report pertaining t o the Public Works Department , Community Development Department and City Clerk Office. The following job descriptions are included : Public Works Superintendent, Park Maintenance Supervisor , Deputy City Clerk, and Building Division Manager/Building Official. Due to the long period of time since the last amendment, some changes to these job descriptions are proposed. Staff believes the proposed changes reflect a more accurate description of the job.

A recruitment for these vacant positions will take place in September 2022. All positions have been authorized by Council to be filled within the Fiscal Year (FY) 2023 Adopted Budget. In preparation for these recruitments , a revision to the job description is necessary to attract the best candidates.

The attached resolution proposes changes to the class specifications of Public Works Superintendent, Park Maintenance Supervisor, Deputy City Clerk, and Building Division Manager/Building Official.

FISCAL IMPACT
Staff recommendations do not include any adjustmen ts to salary ranges and each position is funded in the FY 2023 Adopted Budget. As such, no budgetary adjustments are necessary.

ALTERNATIVES

1. Do not amend the Classification and Salary Plan by modifying the attached Item: 8
Category: CONSENT CALENDAR
Meeting Date: August 16, 2022
8 Packet Pg. 89
Amendment to the Classification and Salary Plan Page 2 of 2 class specifications.

2. Recommend alternative changes to the class specifications.

Prepared by:

Jenny Le-Christensen, HR Manager
Approved by:

Brian Loventhal, City Manager
Attachment:
a. Resolution Classification and Salary Plan
b. PWSuperintendent strikethrough, underline version
c. ParkMaintSupv strikethrough,underline version
d. Deputy City Clerk strikethrough, underline version
e. Building Official new specificiation
8 Packet Pg. 90
RESOLUTION NO. __________

RESOLUTION AMENDING THE CLASSIFICATION AND SALARY PLAN

WHEREAS, the City Manager is required by Section 2.12.030 of the Campbell Municipal code to prepare and submit to the City Council recommendations for the reorganization of offices, departments, and positions which are considered to be in the best interest of efficient, effective and economical conduct of the municipal services provided by the City; and

WHEREAS, Title 2, Section 2.16.020 of the Campbell Municipal Code prov ides that the City Council may, from time to time, by resolution, change the compensation of employees of said City, and may, by resolution, adopt salary and wage scales; and

WHEREAS, a review has been conducted; and

WHEREAS, an amendment to the current Classification and Salary Plan is needed to meet the requirements of Municipal Code Section 2.12.030.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Campbell does hereby approve the revision of the class specifications for Public Work s Superintendent, Park Maintenance Supervisor, Deputy City Clerk, and Building Division Manager/Building Official as outlined in the Council Report.

PASSED AND ADOPTED this 16th day of August 2022, by the following roll call vote:

AYES: Councilmembers:

NOES: Councilmembers:

ABSENT: Councilmembers:

APPROVED:

Paul Resnikoff, Mayor
ATTEST:

Andrea Sanders, City Clerk

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Attachment: Resolution Classification and Salary Plan (Amendment to the Classification and Salary Plan)

CITY OF CAMPBELL Updated: August 16, 2022

PUBLIC WORKS SUPERINTENDENT

DEFINITION

Under general direction of the Public Works Director, manages all functions of the Maintenance Division of the Public Works Department including the maintenance of all City assets ; is also responsible for the procurement of Ccity vehicles and equ ipment, special projects and coordination of other high level administrative and management tasks as assigned.

TYPICAL DUTIES

Manages the City's Service Center and all activities of its employees; plans, organizes, directs, administers and reports on ma intenance activities, including: maintenance of streets, bicycle trails, pedestrian pathways, traffic and street signs, pavement markings and striping, sidewalks, traffic signals, street lights, par ks and recreational facilities , street tree s, landscaped medians, civic grounds, City building and facilities and city City vehicles and equipment; analyzes, develops, budgets, procures and allocates resources; establishes division goals and objectives and performance and workload standards; monitors divisional operations and facilities to identify needs, priorities, opportu nities, operational effectiveness, costs a nd productivity; directs and administers the procurement, maintenance and replacement of City vehicles and equipment; manages the storage, disbursement and use of related supplies and materials; prepares and monitors division budgets; prepares written coun cil reports and makes presentations to the City Council and City Commissions as required; org anizes and implements training and staff development programs; selects and evaluates personnel; may serve as the department's Department's liaison staff member to the Parks and Recreation Commission; represents the Division to other commissions, City Counc il and the public; and performs other duties as assigned.

EMPLOYMENT STANDARDS

Education and Experience: Equivalent to graduation from high school. C ompletion o f c ollege course work in Civil Engineering, Construction Management, Project Management, Busi ness or Public Administration is highly desirable.

Six years of increasingly responsible experience in public works or public administration, with at least three years in a
supervisory/managerial position.

Knowledge of: General principles of maintenance management; project and construction management; maintenance and construction methods as related to parks, street trees and street landscaping, pavement maintenance, traffic signal maintenan ce and operations, street light maintenance, facilities maintenan ce, fleet maintenance; budgeting and contract administration; principles of personnel management and supervision; related materials, vehicles, equipment, and work standards; principles of asset management; principles of management and supervision; safe work practices.

Ability to: Organize, plan, administer and manage a City-wide maintenance programs related to of parks, streets, traffic signal and street lighting maintenance and operations, facilities maintenance, vehicle and equipmentfleet maintenance; implement preventive maintenance

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programs; interpret and implement policies, regulations and procedures; supervise and motivate personnel; communicate clearly and co ncisely both orally and in writing; maintain effective and cooperative working relationships with division staff, other city departments, public officials and the general public.

Possession of: Valid California Driver's License.

Est. '70
Rev. '75, '90, 12/00
J:\Specs\PWSuperintendent

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Attachment: PWSuperintendent strikethrough, underline version (Amendment to the Classification and Salary Plan) CITY OF CAMPBELL Updated: August 16, 2022

PARK MAINTENANCE SUPERVISOR DRAFT 2020

DEFINITION

Under direction, manages all parks, public facilities ground maintenance and street right-of-way landscaping programs; and performs related work as required.

TYPICAL DUTIES

Manages the Park Maintenance Section of the Public Works Department Maintenance Division; plans, organizes, assigns, supervises and evaluates work of the Section in collaboration with the Division Manager; monitors o perations a nd activi ties of parks and lan dscape maintenance; recommends improvements and modifications; prepares various reports on operations and activities; participates in budget preparation; prepares cost estimates; submits justifications for equipment; assists in prepari ng and monitoring section al parks services budget; co ordinates work with and provides staff support to other departments for special events or as necessary; monitors and controls supplies and equipment; orders supplies and tools as necessary; prepares documents for equipment procurement; responds to and provides information to the public; investigates complaints and recommends corrective action as necessary to resolve complaints; assists in the selection and promotion of staff; supervises and trains staff in the Park Maintenance sectio n; administers landscape and janitorial maintenance contracts; evaluates and reports on the performance of section staff and outside contractors; monitors the condition of park and recreation facilities; assis ts in preparation and administration of section budget; investigates complaints from the public and recommends corrective action; serves as a resource for horticultural and pesticide control matters; prepares reports and maintains records and other performance information; attends Commission and Council meetings as required ; and performs other related duties as required.

EMPLOYMENT STANDARDS

Education and Experience: Equivalent to completion of the twelfth grade. College level training in a related field is desirable. F ive years of increasingly responsible experience in parks and tree maintenance, including at least three years of experience in a supervisory capacity.

Completion of an associate degree in horticulture, landscape design, or a related field of study is highly desirable.

Knowledge of: Principles and practices of parks/landscape maintenance operations; methods, materials, equipment, and tools used in park and tree maintenance; planting and cultivation of trees, plants, and turf; pests and diseases and method s and materials for their control; principles of management and supervision; safe work practices.

Ability to: Effectively manage park maintenance pr ograms; supervise personnel; interpret and explain pertinent departmental policies and procedures; develop cost estimates for outs ide con tracts; develop and recommend systems and procedures related to park operations; establish and maintain effective working relationships including working with advisory bodies citizen committees as required; prepare reports and maintain records; read and interpret work plans and blueprints; communicate effectively orally and in w riting; use a mobile device to read, respond, and

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Attachment: ParkMaintSupv strikethrough,underline version (Amendment to the Classification and Salary Plan) input data for an automated work order management system software; read written reports; effectively h andle multiple priorities, org anize workload and meet strict deadlines; bend, stoop, reach, carry, climb , and lift as necessary to perform assigned duties; lift and move weight of 50 lbs.

Possession of: Valid California Driver's License.

State of Califor nia Agricultural Pest Control Advisor License desirable.

Est. '79
Rev. '86, '90, '93, 5/2020
J:\Specs\ParkMaintSupv

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Attachment: ParkMaintSupv strikethrough,underline version (Amendment to the Classification and Salary Plan) CITY OF CAMPBELL Updated: August 16, 2022

DEPUTY CITY CLERK

DEFINITION
Under general supervision, to perform a variety of responsible technical and clerical duties relating to the functions of the City Clerk's Office; to process and record official City documents; to assume the duties of the City Clerk in that official’s absence; and to do related work as required.

TYPICAL DUTIES
Performs a variety of technical and general clerical duties for the City Clerk's Office which involve the use of independent judgment and a thorough knowledge of the functions of the Clerk's Office and City operations; processes, records, and files City documents including agendas, resolutions, ordinances, petitions, contracts, and deeds; composes correspondence; conducts record research projects as assigned; processes public records requests ; assists with the administration of elections and legal notifications; assists with recruitments of various City boards and commissions; maintains City agreements log and Muni cipal Code; assemble and distributes materials for City Council meetings; operates a variety of office equipment including personal computers; postage mailing machine and, in the City Clerk’s absence, performs duties such as attending City Council meetings , preparing minutes and supervising office staff and performs other duties as required.

EMPLOYMENT STANDARDS
Education and Experience: Equivalent to completion of the twelfth grade, and six years of increasingly responsible staff support experience, including extensive public contact. If required, substantive stenographic experience.

Knowledge of: Modern office management; word processing, spreadsheet and database software; record retention systems;
correspondence procedures; correct English usage and
spelling; and, as appropriate, basic principles of supervision.

Ability to: Acquire and apply a thorough knowledge of the Ralph M.

Brown Act and functions and policies of the City Clerk’s Office and the City; interpret and apply California Elections Code requirements; organize and research a variety of documents in an accurate manner; deal with the public and fellow
employees effectively; work prot racted hours; follow verbal and written instructions; exercise discretion and independent judgment; accurately input a variety of material on a computer keyboard at a rate that satisfies the needs of the office. The ability to take dictation at a rate that satisfies the needs of the office may also be required; operate standard office
equipment, including a personal computer; on a continuous basis, sit at desk or in meetings for long periods of time; twist and reach office equipment; stand, walk, bend, climb, or

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Attachment: Deputy City Clerk strikethrough, underline version (Amendment to the Classification and Salary Plan) squat; write and use keyboard to communicate through
written means; and lift or carry weight of 2010 pounds or less.

Use a computer, calculator, telephone, facsimile machine, photocopy machine, and microfilm reader printer.

Possession of: Valid California Driver's License may be required.

Rev. '80, '90, 7/02, 5/15

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Attachment: Deputy City Clerk strikethrough, underline version (Amendment to the Classification and Salary Plan) CITY OF CAMPBELL Updated: August 10, 2022

BUILDING OFFICIAL

DEFINITION

Under general direction of the Community Development Director, manages, organizes, directs, and coordinates the activities of the Building Division within the Community Development Department, including plan check review, construction inspection, and related code enforcement activities. Provides professional and technical assistance to City staff in assigned areas of responsibility and acts to improve organizati onal productivity and customer service while ensuring consistent and uniform application of codes and standards.

The position of Building Official is a management classification in which the incumbent is responsible for the management of the Building Div ision performing a wide range of administrative functions including preparing and administering the division budget, supervising staff, and performing the most complex work of the division.

The Building Official exercises general direction and supervision over professional, technical, and administrative support staff. The Building Official shall be responsible for enforcing the provisions of the California Building Code and rendering opinion and interpretation on code compliance.

TYPICAL DUTIES

Develops and implements divisional goals, objectives, policies and procedures; plans, organizes and directs Building Division activities including the review of construction plans and the conduct of ﬁeld inspections to ensure compliance with approved plans, the California Building Code and municipal codes related to construction; directs, oversees and participates in the development of the Building Division workplan; assigns work activities, projects and programs reviews and evaluates work products, methods and procedures; prepares the Building Division budget; assists in budget implementation; participates in the forecast of future revenue and funding; recommends the appointment of personnel; provides or coordinates staff training; conducts performance evaluations; implements discipline procedures as required; maintains discipline and high standards necessary for the efﬁcient and professional operation of the department; reviews the more complex plans for building construction and alterations and code enforcement iss ues; researches codes and makes ﬁnal determination on compliance; serves as source of information for developers, architects, engineers, contractors, and others regarding interpretations of the Building Code and City construction regulations; oversees perm it processing systems, including electronic permitting software, and identifies and implements measures to increase streamlining and efficiency in permit processing; prepares and presents technical reports and studies to the Community Development Director; prepares staff reports related to building inspection, plans examination, permit processing, and services. Makes presentations to the City Council, Building Board of

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Attachment: Building Official new specificiation (Amendment to the Classification and Salary Plan) Appeals, and other commissions, committees, and boards; represent the City in meetings with representatives of governmental agencies, architects, engineers, contractors, property and business owners and the public in Building Code matters, disputes and litigations;
monitors changes in building methods, materials, laws, regulations, and techno logy that may affect City or divisional operations and recommends ordinance, policy and procedural changes as required; prepare amendments to the Municipal code for adoption by the City Council to comply with State requirements and Reach Codes, as applicab le; enforces approved fee schedule. Periodically assesses and recommends revisions to the fees; confer with and provide professional assistance to members of City departments on matters related to building inspection and plan checking; serve as a member of the Development Review Committee; confers with the Community Development Director on questions of departmental policy; may serve in the absence of the Community Development Director; attend evening meetings as needed; and performs other related duties as required.

EMPLOYMENT STANDARDS

Education and Experience: A Bachelor's degree from an accredited college or university in structural engineering, mechanical engineering, civil engineering, architecture, plan review or a related field. Six years increasing ly responsible experience in building
inspection, engineering, construction or related field, including two years experience in a supervisor or
management position.

Knowledge of: Mechanical and structural engineering principles and practices as applied to the construction and inspection of houses, apartments and commercial and industrial
buildings; b uilding and related codes and ordinances
enforceable by the City of Campbell, including building code, electrical code, mechanical code, plumbing cod e, energy code, California Title 24 Disabled Access Standards,
California Title 24 Energy Standards and other related laws, codes and ordinances ; p rinciples and practices of
organizational analysis and management, budgeting
procedures and techniques ; p rinciples and practices of supervision, training and personnel management; principles and practices of permit processing, including the use of electronic permit processing software and plan check
systems; o ffice methods, procedures, software and
equipment; changing building code and related
requirements.

Ability to: Organize and direct Building Division operations; effectively interpret and apply local and State codes regarding the

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Attachment: Building Official new specificiation (Amendment to the Classification and Salary Plan) construction and inspection of houses, apartments and
commercial and indust rial buildings; analyze problems, identify alternative solutions, project consequences of proposed actions and implement recommendations in
support of goals; interpret and apply City and department policies, procedures, rules and regulations; prepare and present technical and administrative reports,
correspondence and other documents; supervise, train and evaluate personnel; operate a computer using electronic permit processing software, word processing, business
software and other office equipment; communi cate
effectively, orally and in writing; establish and maintain and promote positive and effective working relationships with employees, other agencies, public official and the public; engage with City officials, employees and the public
concerning matters which involve a high degree of
sensitivity.

Possession of: Valid California Class C Driver's License in compliance with adopted City driving standards.

ICC Commercial and Residential Plans Examiner
Certification or equivalent
ICC Certified Building Official certificate or equivalent.

CASp, Commercial and Residential Inspector, Special
Inspector, and Building Trade Certifications desirable , but not required.

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Attachment: Building Official new specificiation (Amendment to the Classification and Salary Plan)

City
Council
Report

TITLE: Settlement Agreement: Unfair Labor Practice Charge - CARP V. City of Campbell

RECOMMENDED ACTION

Authorization for City Manager to approve a settlement agr eement for the Unfair Practice Charge in Carpenters Local 405/Northern California Carpenters Regional Council v. City of Campbell.

BACKGROUND

Following contract negotiations in 2021, the Carpenters Local 405/Northern California Carpenters Regional Counc il (Carpenters) filed against the City of Campbell (City) an Unfair Labor Practice charge with the California Public Employment Relations Board (PERB).

On August 2, 2022, the parties agreed to resolve the PERB charge i n the interest of promoting harmonio us labor relations between the parties and to avoid the uncertainty, inconvenience, and expense of litigation.

DISCUSSION
Staff and legal counsel support and recommend settlement of this matter and request Council authori ze the City Manager to execute a s ettlement agreement with the following terms:

1. The City will make retroactive to July 1, 2021, the three percent (3%) salary adjustment paid to employees in the Carpenters beginning the first pay period in November 2021, as part of the City’s 2021 last, best and final offer.

2. Within seven (7) days of the employees’ receipt of the three percent (3%) salary adjustment, the Carpenters will request withdrawal, with prejudice, of the Unfair Labor Practice.

3. Th e settlement agreement does not constitute an a dmission of wrongdoing, contract or statutory violation, or liability on the part of any party to the agreement.

4. The settlement agreement represents a full and complete resolution of the claims and disputes between the parties based upon the above-referenced matter.

Item: 9
Category: CONSENT CALENDAR
Meeting Date: August 16, 2022
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Settlement Agreement: Unfair Labor Practice Charge - CARP V. City of Campbell Page 2 of 2

FISCAL IMPACT
The settlement agreement will cost the General Fund a pproximately $22,000 in FY 2023. However, a budget adjustment is not being requested at this time. If necessary, given other actual year-to-date expenditures, which may be over- or under-budget, staff will request a mid -year adjustment at a later date. The General Fund has sufficient funds to support this settlement agreement.

Prepared by:

Jenny Le-Christensen, HR Manager
Approved by:

Angelique Gaeta, Assistant City Manager
Attachment:
a. PERB Settlement Agreement
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Attachment: PERB Settlement Agreement (Settlement Agreement: Unfair Labor Practice Charge - CARP V. City of Campbell)

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Attachment: PERB Settlement Agreement (Settlement Agreement: Unfair Labor Practice Charge - CARP V. City of Campbell) City
Council
Report
TITLE: Public Hearing to Consider the Application (PLN -2020-64) of Charles Bronitsky for a General Plan and Zoning Map Amendment to A llow a Portion of 1336 Parsons Avenue to Change in Land Use Designation from Low-Density Residential (Less Than Six Units Per Gross Acre) to Professional Office, and Zoning Designation from R -1-6 (Single - Family Residential) to P -O (Professional Office) in Order to Facilitate the Transfer of a Portion of a Commercial Parking Lot Built on a Residential Property to an Adjoining Commercial Property Located at 1308 Parsons Avenue. the Applicant is Also Requesting Review and Approval of a Conditional Use Permit w ith Site and Architectural Review to Allow the Conversion of a Single -Family Residence to a Commercial Use and Parking Modification Permit to Allow a Reduction in the Number of Required Parking Spaces for Property Located at 1308 Parsons Avenue. (Ordinance /Resolutions/Roll Call Vote)

RECOMMENDED ACTION
That the City Council take the following actions: (1) adopt a Resolution, approving a General Plan Amendment to allow a portion of 1336 Parsons Avenue to change in land use designation from Low -Density Residential (Less than Six Units per Gross Acre) to Professional Office; (2) Introduce an Ordinance, approving a Zoning Map Amendment to allow a portion of 1336 Parsons Avenue to change in zoning designation from R -1-6 (Single-Family Residential) to P -O (Prof essional Office); and (3) Adopt a Resolution, approving a Conditional Use Permit with Site and Architectural Review to allow the conversion of a single -family residence to a commercial use and Parking Modification Permit to allow a reduction in the number of required parking spaces for property located at 1308 Parsons Avenue.

ENVIRONMENTAL DETERMINATION
Staff recommends that the Planning Commission and City Council find this project Categorically Exempt under Section 15332 of the California Environmental Quality Act (CEQA), pertaining to In-Fill Development Projects which are found consistent with all applicable general plan policies and zoning regulations1, are under five acres in size, and 1 A Class 32 exemption may be used for a change in general plan land use and zoni ng designation when the project is found to further, and not frustrate, the objectives and policies of the general plan ( Holden v.

City of San Diego (2019) 43 Cal App 5th 404). As the applicant’s proposal serves to convert a non- Item: 10
Category: PUBLIC HEARINGS AND

INTRODUCTION OF

ORDINANCES
Meeting Date: August 16, 2022
10 Packet Pg. 105
1308 & 1336 Parsons Avenue (GPA/Zoning Map Amendment) Page 2 of 11 substantially surrounded by urban uses, under Section 15301 pertaining to the operation and leasing, and minor alteration of an existing private structure, and Section 15303 pertaining to the conversion of existing small structures from one use to another where only minor modifications are made in the exterior of the structures and pertaining to the construction of new small facilities and structures.

Further, the project qualifies for a categorical exemption on the basis the site has no value as habitat for endangered, rare, or threatened species (i.e., wetland), the project will not result in any sig nificant effects related to traffic, noise, or air/water quality, and can be adequately served by all required utilities and public services.

PROJECT DATA
1308 Parsons Avenue (Commercial Property)
Zoning Designation: P-O (Professional Office)
General Plan Designation: Professional Office
Existing Net Lot Area: 11,058.8 sq. ft.

Proposed Net Lot Area: 12,972.8 sq. ft. (after 1,884 sq. ft. transfer from 1336 Parsons)
Development Standards: Proposed Development Standard
Building Height: 21 feet, 8 inches 35 feet
Floor Area Ratio (FAR): .28 (3,743.2 sq. ft.) .40 maximum Building (Lot) Coverage: 20% (2,527.9 sq. ft.) N/A
Setbacks: Proposed Development Standard
Front (North) 13 feet, 7 inches2 15 feet
Rear (South): 36 feet 10 feet (> of 5-feet or ½ wall ht.) Interior Side (East): 32 feet 10 feet (> of 5-feet or ½ wall ht.) Street Side (West): 20 feet 15 feet
Parking Requirements: Proposed Parking Requirement
Parking: 15 spaces (1 ADA) 17 spaces
1336 Parsons Avenue (Residential Property / For Reference Only) Zoning Designation: R-1-6 (Single-Family Residential)
General Plan Designation: Low-Density Residential (<6 units per gross acre) Existing Net Lot Area: 8,169 sq. ft.
conforming use and bring the land use of two properties into compliance with the General Plan, it can readily be seen to further this objective.
2 The front setback of the existing building does not comply with the 15-foot setback required by the Professional Office (P-O) zoning district but would not change or intensify because of the subject permit. 10 Packet Pg. 106
1308 & 1336 Parsons Avenue (GPA/Zoning Map Amendment) Page 3 of 11 Proposed Net Lot Area: 6,275 sq. ft. (after 1,884 sq. ft. transfer) / 6,000 sq. ft. min.

Development Standards: Proposed/Existing Development Standard Building Height: 15 feet 35 feet / 2 ½ stories max.

Floor Area Ratio (FAR): .22 (1,376 sq. ft.) .45 maximum Building (Lot) Coverage: 22% (1,376 sq. ft.) N/A

Setbacks: Proposed/Existing Development Standard
Front (West) / Garage 29 feet, 4 inches 20-feet (residence)/ 25 -feet (garage)
Rear (East): 11 feet 5 feet (> of 5-feet or ½ wall ht.) Interior Side (North): 7 feet 6 feet (> of 5-feet or ½ wall ht.) Street Side (West): 20 feet 15 feet

Parking Requirements: Proposed/Existing Parking Requirement Parking: 2 covered spaces 2 spaces (1 covered)

DISCUSSION
Background: On February 18, 2017, the Campbell Building Department received an application (BLD -2017-190) for an addition and remodel of an existing single -family residence located at 1336 Parsons Avenue. As part of the plan check process, staff discovered that the commercial parking lot serving 1308 Parsons Avenue (abutting property to the north) exten ded beyond the property line and into the residential property. Essentially, a portion of the commercial parking lot was constructed on the residential property.

A review of permit records revealed that the parking lot was approved for 1308 Parsons Avenue on March 30, 1984, by Planning Commission Resolution No. 2261 3 and overlaps onto 1336 Parsons Avenue as a result of the applicant’s plans showing an incorrect property line. As the properties were owned in common, the error went unnoticed by the City for several decades until the owner of 1336 Parsons Avenue attempted to improve their property.

On August 21, 2018, the City Council authorized the initiation of a General Plan Amendment application to facilitate the requested change in land use designation to Professional Office 4. While the applicant subsequently applied and received authorization for a separate General Plan Amendment to change in land use designation of 1308 and a portion of 1336 Parsons Avenue to Neighborhood

3 Planning Commission Res. 2261 separately required the owner to demonstrate 1308 Parsons Avenue was legally converted from a residence to commercial use. As no responsive records exi st; a conditional use permit is required.
4 The Council’s authorization to proceed does not guarantee that the amendments will be approved, only that the request warrants further review and analysis as part of a formal application. 10 Packet Pg. 107
1308 & 1336 Parsons Avenue (GPA/Zoning Map Amendment) Page 4 of 11 Commercial, the applicant has abandoned those plans in favor of pursuing the original authorization.

On March 8, 2022, the Planning Commission held a public hearing on the subject item.

At its meeting, three residents spoke expressing concern potentially adverse traffic and parking impacts if the land use designation of the property were to change from Residential to Neighborhood Commercial. Following clarification by staff that the proposal is to allow a change to Professional Office, and not to Neighborhood Commercial, the resident s’ concerns were alleviated. The Commission reviewed changes to the plans made in response to SARC feedback and primarily discussed public concerns regarding parking and the condition of approval included by staff in the Conditional Use Permit that would a ddress the concern (reference Attachment G – Planning Commission Meeting Minutes, March 8, 2022 & Attachment C – Resolution for Approval of a Conditional Use Permit with Site and Arch. Review and a Parking Modification Permit; Condition of Approval 3.b. – Parking Management). After due consideration, the Planning Commission adopted resolutions recommending the City Council approve the project as presented on a unanimous 7-0-0 decision.

Project Proposal : The applicant’s request is
for a General Plan and Zo ning Map
Amendment to allow a portion of 1336
Parsons Avenue to change in land use
designation from Low -Density Residential
(Less than Six Units per Gross Acre) to
Professional Office, and zoning designation
from R-1-6 (Single-Family Residential) to P -O
(Professional Office) in order to facilitate the
transfer5 of a portion of a commercial parking
lot built on a residential property to an
adjoining commercial property located at 1308
Parsons Avenue. The applicant is also requesting review and approval of a Conditional Use Permit with Site and Architectural Review to allow the conversion of a single -family residence to a commercial use and Parking Modification Permit to allow a reduction in the number of required parking spaces for property located at 1308 Parsons Avenue.

Project Location : The project site comprises two properties (1308 & 1336 Parsons Avenue6) which are located on the east side of Parsons Avenue, south of Camden Avenue and north of Sharp Avenue. The properties abut single family residences t o the south.

ANALYSIS
General Plan Amendment : In consideration of the applicant’s proposal, the decision - making body must consider if a change in General Plan Land Use Designation from

5 The transfer would require a lot line adjustment.
6 1308 Parsons Avenue is also addressed as 1403 and 1405 Camden Avenue. 10 Packet Pg. 108
1308 & 1336 Parsons Avenue (GPA/Zoning Map Amendment) Page 5 of 11 Low-Density Residential to Professional Office for a portion of 1336 P arsons Avenue would be consistent with the objectives of the General Plan. An amendment to the General Plan may be approved only if all the following findings are made (reference CMC 21.60.070.A.). Staff analysis is provided in plain text below.

1. The prop osed amendment is internally consistent with the goals, policies, and actions of the General Plan; and

The General Plan provides the following purpose statements for Low -Density Residential and Professional Office land uses:

Low-Density Residential (Less than six units per gross acre) : This designation provides for detached single -family homes (on lots that are typically 6,000 square feet). The allowable density of less than 6 units per acre results in a population of approximately one to 15 people per acre.

Professional Office: The Professional Office land use designation permits administrative, professional and research uses that may provide a customer service or be more corporate in nature. Office uses are dispersed throughout the City, since they are permitted in most non - residential zoning districts. Because office uses generally have a less intense impact on adjacent land uses than other commercial uses, they often provide a buffer between residential and commercial or industrial uses. Location and design of office developments should include proximity to transit lines and connections to light rail as well as bicycle routes.

In consideration of the proposed land use change for a portion of 1336 Parsons Avenue, the existing commercial parking lot is i ncompatible with the existing residential land use designation. This land use conflict would be resolved by designating that portion of the property professional office to facilitate the transfer of that area to the professional office designated property to the north.

As the professional office land use designation generally ha s a less intensive impact on adjacent land uses, even serving as a buffer between residential uses and other commercial uses (as captured in the purpose statement for the professional office land use designation) and given that the portion of 1336 Parsons Avenue has been used for commercial activity (parking lot) for several decades, the decision-making body may find the land use change warranted and consistent with the General Plan.

2. The proposed amendment would not be detrimental to the public interest, health, safety, convenience, or general welfare of the city; and

The applicant’s proposal will bring a non -conforming use into conformance with the General Plan, and result in ad ded safety improvements onsite (i.e., accessibility improvements) and benefits to the public right of way (the project will add a new sidewalk on Parsons Avenue). Further, no information has been 10 Packet Pg. 109
1308 & 1336 Parsons Avenue (GPA/Zoning Map Amendment) Page 6 of 11 presented that the applicant’s proposal, as conditioned, wou ld be detrimental to the public interest, health, or general welfare of the City.

3. If applicable, the parcel is physically suitable (including absence of physical constraints, access, compatibility with adjoining land uses, and provision of utilities) for the requested/anticipated project.

The proposed change in general plan land use designation would help ensure the professional office parcel would remain physically suitable for the applicant’s proposal by helping ensure adequate circulation around the e xisting building.

Both the professional office and residential parcels would remain physically suitable for their intended use, and adequately served by utilities.

Zoning Map Amendment : As noted, a portion of 1336 Parsons Avenue would be rezoned from R -1-6 (Single -Family Residential) to P -O (Professional Office). The rezoning is necessary to facilitate the transfer of a portion of a commercial parking lot built on a residential property to an adjoining commercial property located at 1308 Parsons Avenue an d to align the zoning of the property with the requested land use designation. In consideration of the applicant’s request, the following findings must be affirmatively established (reference CMC 21.60.070.B.). To aid in the review of each finding (provide d in italics), staff comments on how the project may be found are provided in plain text below.

1. The proposed amendment is consistent with the goals, policies, and actions of the General Plan and all applicable development agreements, area plans, neighborhood plans, and specific plan(s);

Please refer to staff response to the first General Plan Amendment finding.

Further, the subject property is not subject to an area plan, specific plan, neighborhood plan, or development agreement.

2. The proposed amendment would not be detrimental to the public interest, health, safety, convenience, or general welfare of the city; and

Please refer to staff response to the second General Plan Amendment finding.

3. The parcel is physically suitable (including absence of phys ical constraints, access, compatibility with adjoining land uses, and provision of utilities) for the requested zoning designation(s) and anticipated land uses/project.

Please refer to staff response to the third General Plan Amendment finding.

Further, the properties, as conditioned, will be compliant their proposed zoning designation (land use, development standards, minimum lot size, etc.).

Conditional Use Permit with Site and Architectural Review (1308 Parsons Avenue) :

Review and approval of a Condi tional Use Permit with Site and Architectural Review is 10 Packet Pg. 110
1308 & 1336 Parsons Avenue (GPA/Zoning Map Amendment) Page 7 of 11 required facilitate the conversion of the existing single -family residence located at 1308 Parsons Avenue to a professional office use 7. While the code provides limited guidance as to what extent a co nverted structure/site should be brought into conformance with current standards, it is recommended that the City Council review the considerations in review of applications and consider how the project would comply with each of the required findings for approval. To aid in the review of each finding (provided in italics), staff comments on how the project may be found are provided in plain text below:

Conditional Use Permit Findings (CMC 21.46.040):

1. The proposed use is allowed within the applicable zoning district with Conditional Use Permit approval, and complies with all other applicable provisions of this Zoning Code and the Campbell Municipal Code;

The use is considered a ‘Conversion, commercial converted with residence’ which is allowed with the approval of a Conditional Use Permit. As the approval would not allow activities other than those allowed by the Professional Off ice zoning designation, subject to the permitting requirements of that section, specific conditions have been added to the permit to make this distinction clear (reference Attachment C – Resolution Recommending Approval of a Conditional Use Permit with Sit e and Architectural Review and a Parking Modification Permit).

2. The proposed use is consistent with the General Plan;

Please refer to staff response to the first General Plan Amendment finding.

3. The proposed site is adequate in terms of size and shape t o accommodate the fences and walls, landscaping, parking and loading facilities, yards, and other development features required in order to integrate the use with uses in the surrounding area;

The site has been used for commercial activity since the 1980’ s and supported a variety of commercial and office use activity over that time. Conditions of Approval have been included in the Resolution (reference Attachment C – Resolution Recommending Approval of a Conditional Use Permit with Site and Architectural Review and a Parking Modification Permit) to ensure the continued maintenance of fencing, walls, landscaping, and parking and loading facilities required to support the use and compliance with operational standards intended to avoid adverse impacts to adjoining uses.

4. The proposed site is adequately served by streets of sufficient capacity to carry the kind and quantity of traffic the use would be expected to generate;

7 While project data has been provided for 1336 Parsons Avenue, this is provided for reference only to demonstrate the site will be code compliant after the transfer of 1,884 square feet to 1308 Parsons Avenue.
10 Packet Pg. 111
1308 & 1336 Parsons Avenue (GPA/Zoning Map Amendment) Page 8 of 11 Formalizing the use of the property for professional office activity is not anticipated to result in an appreciable increase in the amount of traffic. Further, the property is located at the corner of Camden Avenue and Parsons Avenue, with the driveway entrance located less than 120 feet from Camden Avenue (which is identified as a Class I Art erial roadway in the General Plan’s Roadways Classifications Diagram (Figure LUT -3) which has sufficient capacity to carry the kind and quantity of traffic the use would be expected to generate.

5. The design, location, size, and operating characteristics of the proposed use are compatible with the existing and future land uses on-site and in the vicinity of the subject property; and

See response to ‘3’.

6. The establishment, maintenance, or operation of the proposed use at the location proposed will not be detrimental to the comfort, health, morals, peace, safety, or general welfare of persons residing or working in the neighborhood of the proposed use, or be detrimental or injurious to property and improvements in the neighborhood or to the general welfare of the city.

See response to ‘3’. Further, no concerns with the operation or maintenance of the proposed use have been identified that will not be addressed by the Conditions of Approval included in the Resolution (reference Attachment C – Resolution Rec ommending Approval of a Conditional Use Permit with Site and Architectural Review and a Parking Modification Permit).

Site and Architectural Review Findings (reference CMC 21.42.060):

1. The project will be consistent with the general plan;

Please refer to staff response to the first General Plan Amendment finding.

2. The project will aid in the harmonious development of the immediate area; and

The applicant’s proposal is subject to a site and architectural review process which serves to facilitate a rev iew of the applicant’s proposal for compatibility with the intended use and surrounding neighborhood. The project will result in added safety improvements onsite (i.e., accessibility improvements) and benefits to the public right of way (the project will a dd a new sidewalk on Parsons Avenue) and has incorporated recommendations of the City’s Site and Architectural Review Committee, thereby aiding in the harmonious development of the immediate area.

3. The project is consistent with applicable adopted design guidelines, development agreement, overlay district, area plan, neighborhood plan, and specific plan(s).

10 Packet Pg. 112
1308 & 1336 Parsons Avenue (GPA/Zoning Map Amendment) Page 9 of 11 Not applicable. The subject property is not subject to adopted design guidelines, development agreement, overlay district, area plan, neighborhood pl an or specific plan and therefore, the project would not conflict with such documents.

Parking: Pursuant to Section 21.28.040 (Table 3) of the Campbell Municipal Code (CMC), professional offices are required to provide 1 space per 225 square feet of floo r area. For the 3,743 square -foot building a minimum of 17 parking spaces are required where 15 parking spaces have been provided. In consideration of the applicant’s request, the following findings must be affirmatively established (provided in italics), staff comments on how the project may be found are provided in plain text below:

1. Due to the unique nature and circumstances of the project, or special development features, the anticipated number of parking spaces necessary to serve the use or structure is less than that required by the applicable off -street parking standards and would be satisfied by the proposed number of parking spaces.

The applicant’s proposal includes a request to convert a non -conforming single-family residence to a professional off ice building. As the interior arrangement of a residence converted to an office building will generally be less efficient and, therefore, less intensive than a traditional office space built -to-suit, the strict application of a parking standard based on gr oss floor area may result in an artificially high requirement. The applicant has also agreed to provide a bike rack on the property, as recommended by the Site and Architectural Review Committee, which will encourage employees and the public to bike to the facility rather than use onsite parking.

2. Conditions of approval have been incorporated into the project to ensure the long-term adequacy of the provided off-street parking.

Conditions of approval require the site to maintain the number and location of p arking spaces indicated and for the parking spaces and circulation areas to be paved with asphalt or concrete, striped, and maintained in perpetuity. At the discretion of the Council, an additional condition of approval may be added to limit the number of employees or occupants in the office building at any one time to further ensure the long - term adequacy of parking onsite.

3. Approval of the parking modification permit will further the purpose of Campbell Municipal Code Chapter 21.28 (Parking and Loading).

The purpose of Chapter 21.28 is to “…ensure that adequate off -street parking and loading spaces are provided for each type of land use in a manner that will ensure their usefulness, support alternative transportation solutions, improve the urban form of th e community and protect the public safety”.

As noted, given the unique nature and circumstances of the project, the proposed parking supply may be found to adequately serve the proposed use.

The applicant has also agreed to provide a bike rack on the pro perty thereby 10 Packet Pg. 113
1308 & 1336 Parsons Avenue (GPA/Zoning Map Amendment) Page 10 of 11 supporting ‘alternative transportation’ on the property and has proposed to upgrade the site layout and configuration of the parking lot to provide new accessible paths of travel onsite which enhance public safety.

Public Improvements : The p roject requires frontage improvements per Campbell Municipal Code Section 11.24.040 and will result in a new sidewalk on Parsons Avenue.

Site and Architectural Review Committee: The Site and Architectural Review Committee (SARC) reviewed this application at its meeting of February 8, 2022 (reference Attachment F – SARC Memo). The Committee was supportive of the project, providing the following recommendations to further refine the project design:

• Please add additional landscaping between parking spaces along the project frontage (i.e., spaces 1 to 7, and 8 & 9) and interior of the site (i.e., spaces 11 to 13).

The applicant has agreed to add additional landscaping as directed. A condition of approval has been included to the Conditional Use Permit with Site and Architectural Review Permit to reflect this requirement (reference Attachment C; Condition of Approval #2.a.).

• Please add a bicycle rack to the property.

The applicant has agreed to add a bike rack as directed. A condition of approval has been included to the Conditional Use Permit with Site and Architectural Review to reflect this requirement (reference Attachment C; Condition of Approval #2.b.).

FISCAL IMPACTS
The City may anticipate a nominal long -term reduction in property taxes resulting from the reclassification of a portion 1336 Parsons Avenue from residential to office (commercial properties turnover less frequently and as a result, may pay lower tax rates than residential). The City may also separately expect to receive application fe es from the lot line adjustment process, encroachment permit process (Public Works), and plan check fees related to required tenant improvements and accessibility upgrades (Building Division). However, while the City may experience a nominal long -term redu ction in property taxes from the proposed reclassification, commercial properties tend to require less City services than residential properties; thereby resulting in lower City expenditures over time. Staff is not recommending any adjustments to revenue estimates or budgetary appropriations in FY 2023, but if needed, will incorporate any fiscal impacts of the proposed reclassification into future budgets and long -range forecasts.

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1308 & 1336 Parsons Avenue (GPA/Zoning Map Amendment) Page 11 of 11 Prepared by:

Stephen Rose, Senior Planner
Reviewed by:

Rob Eastwood, Community
Development Director
Approved by:

Brian Loventhal, City Manager
Attachment:
a. Resolution Approving a General Plan Amendment
b. Ordinance Approving a Zoning Map Amendment
c. Resolution Approving a Conditional Use Permit with Site and Architectural Review and a Parking Modification Permit
d. Location Map
e. Project Plans
f. SARC Memo, dated February 8, 2022
g. Planning Commission Meeting Minutes, March 8, 2022
10 Packet Pg. 115

Attachment A
RESOLUTION NO.

BEING A RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF CAMPBELL ADOPTING A GENERAL PLAN AMENDMENT
TO ALLOW A PORTION OF 1336 PARSONS AVENUE TO

CHANGE IN LAND USE DESIGNATION FROM LOW -DENSITY

RESIDENTIAL (LESS THAN SIX UNITS PER GROSS ACRE) TO
PROFESSIONAL OFFICE. FILE NO. PLN-2020-64
After notification and public hearing, as specified by law and after p resentation by the Community Development Director, proponents and opponents, the hearing was closed.

The City Council finds as follows with regard to the adoption of a General Plan Amendment:

Environmental Finding

1. The project may be found Categorically Exempt under Section 15332 of the California Environmental Quality Act (CEQA), pertaining to In -Fill Development Projects which are found consistent with all applicable general plan policies and zoning regulations, are under five acres in size, and s ubstantially surrounded by urban uses, under Section 15301 pertaining to the operation and leasing, and minor alteration of an existing private structure, and Section 15303 pertaining to the conversion of existing small structures from one use to another w here only minor modifications are made in the exterior of the structures and pertaining to the construction of new small facilities and structures.

Evidentiary Findings

2. The proposed project includes a General Plan and Zoning Map Amendment to allow a por tion of 1336 Parsons Avenue to change in land use designation from Low - Density Residential (Less than Six Units per Gross Acre) to Professional Office, and zoning designation from R -1-6 (Single -Family Residential) to P -O (Professional Office) in order to f acilitate the transfer of a portion of a commercial parking lot built on a residential property to an adjoining commercial property located at 1308 Parsons Avenue. The applicant is also requesting review and approval of a Conditional Use Permit with Site and Architectural Review to allow the conversion of a single -family residence to a commercial use and Parking Modification Permit to allow a reduction in the number of required parking spaces for property located at 1308 Parsons Avenue.

3. The project site comprises two properties (1308 & 1336 Parsons Avenue) which are located on the east side of Parsons Avenue, south of Camden Avenue and north of Sharp Avenue. The properties abut single family residences to the south.

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Attachment: Resolution Approving a General Plan Amendment (1308 & 1336 Parsons Avenue (GPA/Zoning Map Amendment)) City Council Resolution No.

Adopting a General Plan Amendment Page 2 of 4

4. The project site has no value as habitat for endangered, rare, or threatened species (i.e., wetland), the project will not result in any significant effects related to traffic, noise, or air/water quality, and can be adequately served by all required utilities and public services.

5. This action is for a General Plan Amendment to allow a portion of 1336 Parsons Avenue to change in land use designation from Low -Density Residential (Less than Six Units per Gross Acre) to Professional Office.

6. The General Plan Amendment is proposed in conjunction and concurrent with a proposed Zoning Map amendment for the project site.

7. The portion of 1336 Parsons Avenue proposed change in land use designation is located along the north property line and measures approximately 1,884 square feet.

8. The General Plan provides the following purpose statements for Low -Density Residential and Professional Office land uses:

Low-Density Residential (Less than six units per gross acre) : This designation provides for detached single-family homes (on lots that are typically 6,000 square feet). The allowable density of less than 6 units per acre results in a population of approximately one to 15 people per acre.

Professional Office: The Professional Office land use designation permits administrative, professional and research uses that may provide a customer service or be more corporate in nature. Office uses are dispersed throughout the City, since they are permitted in most non -residential zoning districts. Because office uses generally have a less intense impact on adjacent land uses than other commercial uses, they often provide a buffer between residential and commercial or industrial uses. Location and design of office developments should include proximity to transit lines a nd connections to light rail as well as bicycle routes.

9. The General Plan includes goals, policies and strategies that were reviewed to ensure the proposed project would be consistent with the General Plan and serve to further, and not frustrate, its objec tives including, but not limited to, the following policies and strategy:

Policy LUT-5.1: Neighborhood Integrity : Recognize that the City is composed of residential, industrial and commercial neighborhoods, each with its own individual character; and allow change consistent with reinforcing positive neighborhood values, while protecting the integrity of the city’s neighborhoods.

Strategy LUT-5.6c: Physical Buffers : Provide landscaped buffers, sidewalks and equipment screening to provide a visual and noise-abating buffer between uses.

Policy LUT-5.8: Non-Conforming Uses : Encourage non -conforming properties to redevelop as conforming uses.

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Attachment: Resolution Approving a General Plan Amendment (1308 & 1336 Parsons Avenue (GPA/Zoning Map Amendment)) City Council Resolution No.

Adopting a General Plan Amendment Page 3 of 4
Based upon the foregoing findings of fact, the City Council further finds and concludes that:

Environmental Findings (CMC Sec. 21.38.050):

10. The project is Categorically Exempt under Section 15332 of the California Environmental Quality Act (CEQA), pertaining to In -Fill Development Projects which are found consistent with all applicable general plan policies and zoning regulations, are under five acres in size, and substantially surrounded by urban uses, under Section 1 5301 pertaining to the operation and leasing, and minor alteration of an existing private structure, and Section 15303 pertaining to the conversion of existing small structures from one use to another where only minor modifications are made in the exterior of the structures and pertaining to the construction of new small facilities and structures.

11. There are no unusual circumstances that would prevent the project from qualifying as Categorically Exempt per Section 15300.2 of the CEQA Guidelines.

Findings for General Plan Amendments (CMC Sec. 21.60.070.A):

12. The proposed amendment is consistent with the goals, policies, and actions of the General Plan.

13. The proposed amendment would not be detrimental to the public interest, health, safety, convenience, or general welfare of the city.

14. The parcel is physically suitable (including absence of physical constraints, access, compatibility with adjoining land u ses, and provision of utilities) for the requested/anticipated project.

THEREFORE, BE IT RESOLVED that the City Council adopts a General Plan Amendment to allow a portion of 1336 Parsons Avenue to change in land use designation from Low -Density Residential (Less than Six Units per Gross Acre) to Professional Office as depicted Exhibit A subject to the following condition of approval:

Condition of Approval:

1. Lot Line Adjustment : This action shall be subject to, and executed in conjunction with, a Zoning Map Amendment and lot line adjustment serving to facilitate the transfer of the same portion of 1336 Parsons Avenue to be amended by this action to 1308 Parsons Avenue . Failure to record a lot line adjustment by December 31, 2022, shall render the General Amendment approved herein void.

PASSED AND ADOPTED this _____ day of _____, 2022, by the following roll call vote:

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

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Attachment: Resolution Approving a General Plan Amendment (1308 & 1336 Parsons Avenue (GPA/Zoning Map Amendment)) City Council Resolution No.

Adopting a General Plan Amendment Page 4 of 4
ABSENT: COUNCILMEMBERS:

ABSTAIN: COUNCILMEMBERS:

APPROVED:

Paul Resnikoff, Mayor
ATTEST:

Andrea Sanders, City Clerk

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Attachment: Resolution Approving a General Plan Amendment (1308 & 1336 Parsons Avenue (GPA/Zoning Map Amendment)) Exhibit A
Proposed General Plan Amendment

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Attachment: Resolution Approving a General Plan Amendment (1308 & 1336 Parsons Avenue (GPA/Zoning Map Amendment)) Attachment B
ORDINANCE NO.

BEING A N ORDINANCE OF THE CITY COUNCIL OF THE CITY OF

CAMPBELL APPROVING A ZONING MAP AMENDMENT TO AMEND

THE CAMPBELL ZONING MAP DESIGNATION FOR A PORTION OF
1336 PARSONS AVENUE FROM R -1-6 (SINGLE -FAMILY
RESIDENTIAL) TO P -O (PROFESSIONAL OFFICE). FILE NO.: PLN - 2020-64

After notification and public hearing, as specified by law and after presentation by the Community Development Director, proponents and opponents, the hearing was closed.

After due consideration of all evidence presented, the City Council of the City of Campbell does ordain as follows:

Environmental Finding

1. The proposed p roject may be found Categorically Exempt under Section 15332 of the California Env ironmental Quality Act (CEQA), pertaining to In -Fill Development Projects which are found consistent with all applicable general plan policies and zoning regulations, are under five acres in size, and substantially surrounded by urban uses, under Section 15301 pertaining to the operation and leasing, and minor alteration of an existing private structure, and Section 15303 pertaining to the conversion of existing small structures from one use to another where only minor modifications are made in the exterior of the structures and pertaining to the construction of new small facilities and structures.

Evidentiary Findings

1. The proposed project includes a General Plan and Zoning Map Amendment to allow a portion of 1336 Parsons Avenue to change in land use desig nation from Low -Density Residential (Less than Six Units per Gross Acre) to Professional Office, and zoning designation from R-1-6 (Single-Family Residential) to P-O (Professional Office) in order to facilitate the transfer of a portion of a commercial par king lot built on a residential property to an adjoining commercial property located at 1308 Parsons Avenue. The applicant is also requesting review and approval of a Conditional Use Permit with Site and Architectural Review to allow the conversion of a si ngle-family residence to a commercial use and Parking Modification Permit to allow a reduction in the number of required parking spaces for property located at 1308 Parsons Avenue.

2. The project site comprises two properties (1308 & 1336 Parsons Avenue) which are located on the east side of Parsons Avenue, south of Camden Avenue and north of Sharp Avenue. The properties abut single family residences to the south.

3. The project site has no value as habitat for endangered, rare, or threatened species (i.e., wetland), the project will not result in any significant effects related to traffic, noise, or air/water quality, and can be adequately served by all required utilities and public services.

4. This action is for a Zoning Map Amendment to allow a port ion of 1336 Parsons Avenue to change in zoning designation from R -1-6 (Single-Family Residential) to P -O (Professional Office).

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Attachment: Ordinance Approving a Zoning Map Amendment (1308 & 1336 Parsons Avenue (GPA/Zoning Map Amendment)) City Council Ordinance No. Page 2 of 3
Approving a Zoning Map Amendment
1336 Parsons Avenue

5. The Zoning Map Amendment is proposed in conjunction and concurrent with a proposed General Plan amendment for the project site.

6. The General Plan includes goals, policies and strategies that were reviewed to ensure the proposed project would be consistent with the General Plan and serve to further, and not frustrate, its objectives including, but not limited to, the following policies and strategy:

Policy LUT-5.1: Neighborhood Integrity: Recognize that the City is composed of residential, industrial and commercial neighborhoods, each with its own individual character; and allow change consistent with reinforcing positive neighborhood values, while protecting the integrity of the city’s neighborhoods.

Strategy LUT-5.6c: Physical Buffers: Provide landscaped buffers, sidewalks and equipment screening to provide a visual and noise-abating buffer between uses.

Policy LUT-5.8: Non-Conforming Uses : Encourage non -conforming properties to redevelop as conforming uses.

Based upon the foregoing findings of fact, the City Council further finds and ordains that:

Zoning Map Amendment Findings (CMC Sec. 21.60.070.B):

2. The proposed amendment is consistent with the goals, policies, and actions of the General Plan and all applicable development agreements, area plans, neighborhood plans, and specific plan(s);

3. The proposed amendment would not be detrimental to the publi c interest, health, safety, convenience, or general welfare of the city; and

4. The parcel is physically suitable (including absence of physical constraints, access, compatibility with adjoining land uses, and provision of utilities) for the requested zoning designation(s) and anticipated land uses/project.

Environmental Findings (CMC Sec. 21.38.050):

5. The project is Categorically Exempt under Section 15332 of the California Environmental Quality Act (CEQA), pertaining to In -Fill Development Projects which are found consistent with all applicable general plan policies and zoning regulations, are under five acres in size, and substantially surrounded by urban uses, under Section 15301 pertaining to the operation and leasing, and minor alteration of an existing private structure, and Section 15303 pertaining to the conversion of existing small structures from one use to another where only minor modifications are made in the exterior of the structures and pertaining to the construction of new small facilities and structures.

6. There are no unusua l circumstances that would prevent the project from qualifying as Categorically Exempt per Section 15300.2 of the CEQA Guidelines.

SECTION ONE: That this Ordinance be adopted to approve a Zoning Map Amendment

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Attachment: Ordinance Approving a Zoning Map Amendment (1308 & 1336 Parsons Avenue (GPA/Zoning Map Amendment)) City Council Ordinance No. Page 3 of 3
Approving a Zoning Map Amendment
1336 Parsons Avenue
to amend the Zoning Map Designation for a portion of 1336 Parsons Avenue from R-1-6 (Single-Family Residential) to P-O (Professional Office) as depicted by Exhibit A.

SECTION TWO: That this Ordinance is adopted subject to the following condition of approval:

Condition of Approval:

1. Lot Line Adjustment : This action shall be subject to, and executed in conjunction with, a General Plan Amendment and lot line adjustment serving to facilitate the transfer of the same porti on of 1336 Parsons Avenue to be amended by this action to 1308 Parsons Avenue. Failure to record a lot line adjustment by December 31, 2022, shall render the General Amendment approved herein void.

SECTION THREE: That this Ordinance shall become effective thirty (30) days following its passage and adoption and shall be published, or summary thereof, one time within fifteen (15) days upon passage and adoption in the Metro Silicon Valley, a newspaper of general circulation for the City of Campbell, County of Santa Clara.

PASSED AND ADOPTED this ____ day of ____ 2022, by the following roll call vote:

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:

ABSTAIN: COUNCILMEMBERS:

APPROVED:
_______________________
Paul Resnikoff, Mayor

ATTEST:
_______________________________
Andrea Sanders, City Clerk

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Attachment: Ordinance Approving a Zoning Map Amendment (1308 & 1336 Parsons Avenue (GPA/Zoning Map Amendment)) Exhibit A

Proposed Zoning Map Amendment

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Attachment: Ordinance Approving a Zoning Map Amendment (1308 & 1336 Parsons Avenue (GPA/Zoning Map Amendment)) Attachment C

RESOLUTION NO.

BEING A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

CAMPBELL APPROVING A CONDITIONAL USE PERMIT WITH SITE

AND ARCHITECTURAL REVIEW TO ALLOW FOR THE

CONVERSION OF A SINGLE-FAMILY RESIDENCE INTO A

COMMERCIAL USE (PROFESSIONAL OFFICE) AND A PARKING

MODIFICATION PERMIT TO ALLOW FOR A REDUCTION IN THE

NUMBER OF REQUIRED PARKING SPACES FOR PROPERTY
LOCATED AT 1308 PARSONS AVENUE. FILE NO. PLN-2020-64

After notification and public hearing, as specified by law and after presentation by the Community Development Director, proponents and opponents, the hearing was closed.

The City Council finds as follows with regard to the approval of a Conditional Use Permit with Site and Architectural Review and a Parking Modification Permit:

Environmental Finding

1. The project may be found Categorically Exempt under Section 15332 of the California Environmental Quality Act (CEQA), pertaining to In -Fill Development Projects which are found consistent with all applicable general plan policies and zoning regulations, are under five acres in size, and substantially surrounded by urban uses, under Section 15301 pertaining to the operation and leasing, and minor alteration of an existing private structure, and Section 15303 pertaining to the conversion of existing small structures from one use to another where only minor modifications are made in the exterior of the structures and pertaining to the construction of new small facilities and structures.

Evidentiary Findings

2. The proposed project includes a General Plan and Zoning Map Amendment to allow a portion of 1336 Parsons Avenue to change in land use desig nation from Low-Density Residential (Less than Six Units per Gross Acre) to Professional Office, and zoning designation from R -1-6 (Single -Family Residential) to P -O (Professional Office) in order to facilitate the transfer of a portion of a commercial par king lot built on a residential property to an adjoining commercial property located at 1308 Parsons Avenue. The project also includes a Conditional Use Permit with Site and Architectural Review to allow the conversion of a single -family residence to a com mercial use and Parking Modification Permit to allow a reduction in the number of required parking spaces for property located at 1308 Parsons Avenue.

3. The project site comprises two properties (1308 & 1336 Parsons Avenue) which are located on the east sid e of Parsons Avenue, south of Camden Avenue and north of Sharp Avenue. The properties abut single family residences to the south.

4. The project site has no value as habitat for endangered, rare, or threatened species (i.e., wetland), the project will not result in any significant effects related to traffic, noise,

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Attachment: Resolution Approving a Conditional Use Permit with Site and Architectural Review and a Parking Modification Permit (1308 & 1336 City Council Resolution No. Page 2 of 5
Conditional Use Permit with Site and Architectural Review & Parking Modification 1308 Parsons Avenue | File No. PLN-2020-64

or air/water quality, and can be adequately served by all required utilities and public services.

5. This action is for a Conditional Use Permit with Site and Architectural Review to allow the conversion of a single -family residence to a commercial use and Parking Modification Permit to allow a reduction in the number of required parking spaces for property located at 1308 Parsons Avenue.

6. The General Plan land use designation for the property is Professional Office.

7. The project site is zoned P-O (Professional Office).

8. The property is approximately 11,058 square feet and will be approximately 12,973 square feet after an 1,844 sq. ft. transfer in lot area from 1336 Parsons Avenue.

9. The Conditional use Permit with Site and Architectural Review and Parking Modification Permit is subject to the recordation of the lot line adjustment facilitating the transfer of approximately 1,844 square feet of area from 1336 Parsons Avenue and shall apply to the property as established following the lot line adjustment.

10. The Planning Commission's review of the proposed project encompassed zoning and General Plan land use conformance, noise, circulation, traffic, and parking.

11. The proposed use of the property is for a ‘professional office’ (converted residence to a commercial use).

12. No use of the property , except as allowed by t he P-O (Professional Office) zoning designation, shall be permitted . Further, no use of t he property permitted with a conditional use permit shall be allowed without first obtaining a conditional use permit.

13. Pursuant to Section 21.28.040 (Table 3) of the Campbell Municipal Code (CMC), professional offices are required to provide 1 space per 2 25 square feet of floor area.

For the 3,743 square-foot building a minimum of 17 parking spaces are required where 15 parking spaces have been provided.

14. The Zoning Code implements the General Plan, which encourages the redevelopment of non-conforming properties as conforming uses (Policy LUT-5.8).

15. The General Plan includes goals, policies and strategies that were reviewed to ensure the proposed project would be consistent with the General Plan and serve to further, and not frustrate, its objectives including, but not limited to, the following policies and strategy:

Policy LUT-5.1: Neighborhood Integrity: Recognize that the City is composed of residential, industrial and commercial neighborhoods, each with its own individual character; and allow change consistent with reinforcing positive neighborhood values, while protecting the integrity of the city’s neighborhoods.

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Attachment: Resolution Approving a Conditional Use Permit with Site and Architectural Review and a Parking Modification Permit (1308 & 1336 City Council Resolution No. Page 3 of 5
Conditional Use Permit with Site and Architectural Review & Parking Modification 1308 Parsons Avenue | File No. PLN-2020-64

Strategy LUT-5.6c: Physical Buffers: Provide landscaped buffers, sidewalks and equipment screening to provide a visual and noise-abating buffer between uses.

Policy LUT-5.8: Non-Conforming Uses : Encourage non -conforming properties to redevelop as conforming uses.

Based upon th e foregoing findings of fact , the City Council further finds and concludes that:

Conditional Use Permit Findings (CMC Sec. 21.46.040):

16. The proposed use is allowed within the applicable zoning district with Conditional Use Permit approval, and complies with all other applicable provisions of this Zoning Code and the Campbell Municipal Code;

17. The proposed use is consistent with the General Plan;

18. The proposed site is adequate in terms of size and shape to accommodate the fences and walls, landscaping, parking and loading facilities, yards, and other development features required in order to integrate the use with uses in the surrounding area;

19. The proposed site is adequately served by streets of sufficient capacity to carry the kind and quantity of traffic the use would be expected to generate;

20. The design, location, size, and operating characteristics of th e proposed use are compatible with the existing and future land uses on -site and in the vicinity of the subject property; and

21. The establishment, maintenance, or operation of the proposed use at the location proposed will not be detrimental to the comfort, health, morals, peace, safety, or general welfare of persons residing or working in the neighborhood of the proposed use, or be detrimental or injurious to property and improvements in the neighborhood or to the general welfare of the city.

Site and Architectural Review Findings (CMC Sec. 21.42.060)

22. The project will be consistent with the general plan;

23. The project will aid in the harmonious development of the immediate area; and

24. The project is consistent with applicable adopted design guidelines, developm ent agreement, overlay district, area plan, neighborhood plan, and specific plan(s).

Parking Modification Permit Findings (CMC Sec. 21.12.030.H.7)

25. Due to the unique nature and circumstances of the project, or special development features, the anticipated number of parking spaces necessary to serve the use or structure is less than that required by the applicable off -street parking standard, and would be satisfied by the existing or proposed number of parking spaces, as supported

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Attachment: Resolution Approving a Conditional Use Permit with Site and Architectural Review and a Parking Modification Permit (1308 & 1336 City Council Resolution No. Page 4 of 5
Conditional Use Permit with Site and Architectural Review & Parking Modification 1308 Parsons Avenue | File No. PLN-2020-64

by review of the applicant's documentation and/or a parking demand study prepared by a qualified transportation engineer accepted by the decision-making body;

26. Conditions of approval have been incorporated into the project to ensure the long-term adequacy of the provided off-street parking;

27. Approval of the parking modification permit will further the purpose of the Parking and Loading Chapter;
Environmental Finding(s) (CMC Sec. 21.38.050):

28. The project is Categorically Exempt under Section 15332 of the California Environmental Quality Act (CEQA), pertaining to In -Fill Development Projects which are found consistent with all applicable general plan policies and zoning regulations, are under five acres in size, and substantially surrounded by urban uses, under Section 15301 pertaining to the operation and leasing, and minor alteration of an existing private structure, and Section 15303 pertaining to the conversion of existing small structures from one use to anothe r where only minor modifications are made in the exterior of the structures and pertaining to the construction of new small facilities and structures; and

29. There are no unusual circumstances that would prevent the project from qualifying as Categorically Exempt per Section 15300.2 of the CEQA Guidelines.

THEREFORE, BE IT RESOLVED that the City Council approves a Conditional Use Permit (PLN-2020-64) with Site and Architectural Review to allow for the conversion of a single- family residence into a commercial use (Professional Office) and a Parking Modification Permit to allow for a reduction in the number of required parking spaces for property located at 1308 Parsons Avenue, subject to the attached Conditions of Approval (attached Exhibit A).

PASSED AND ADOPTED this _____ day of _____, 2022, by the following roll call vote:

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:

ABSTAIN: COUNCILMEMBERS:

APPROVED:

Paul Resnikoff, Mayor

ATTEST:

Andrea Sanders, City Clerk

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Attachment: Resolution Approving a Conditional Use Permit with Site and Architectural Review and a Parking Modification Permit (1308 & 1336

EXHIBIT A

CONDITIONS OF APPROVAL
Conditional Use Permit with Site and Architectural Review & Parking Modification Permit (PLN-2020-64)

Where approval by the Director of Community Development, City Engineer, Public Works Director, City Attorney or Fire Department is required, that review shall be for compliance with all applicable conditions of a pproval, adopted policies and guidelines, ordinances, laws and regulations and accepted engineering practices for the item under review.

Additionally, the applicant is hereby notified that he/she is required to comply with all applicable Codes or Ordinanc es of the City of Campbell and the State of California that pertain to this development and are not herein specified.

COMMUNITY DEVELOPMENT DEPARTMENT
Planning Division

1. Approved Project : Approval is granted for a Conditional Use Permit with Site and Architectural Review to allow for the conversion of a single -family residence into a commercial use (Professional Office) and a Parking Modification Permit to allow for a reduction in the number of required parking spaces for property located at 1308 Parsons Av enue on property located at 1308 Parsons Avenue . The project shall substantially conform to the Project Plans, included as Attachment E in the August 16, 2022, City Council Staff Report, except as modified by the Conditions of Approval.

2. Plan Revisions: Prior to submittal of a building permit, the following revisions to the project plans shall be made:

a. Landscaping: Additional landscaping shall be added between parking spaces along the project frontage (i.e., spaces 1 to 7, and 8 & 9) and interior of the site (i.e., spaces 11 to 13).

b. Bicycle Rack: A minimum of one bicycle rack shall be added to the property.

Compliance with these requirements shall be to the satisfaction of the Director of Community Development.

3. Operational Standards:

a. Allowed Use: No use of the property, except as allowed by the P -O (Professional Office) zoning designation, shall be permit ted. Further, no use of the property permitted with a conditional use permit shall be allowed without first obtaining a conditional use permit.
b. Parking Management: In the event that three verifiable complaints are received by the City regarding parking, t he Community Development Director may require establishment of limited duration parking, reduce the permitted occupancy, limit the hours of operation, require greater staggering of sessions, require additional parking management strategies and/or return th e project to the Planning Commission for review.

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Attachment: Resolution Approving a Conditional Use Permit with Site and Architectural Review and a Parking Modification Permit (1308 & 1336 Conditions of Approval
Conditional Use Permit with Site and Architectural Review and Parking Modification File No.: PLN-2020-64

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c. Smoking: "No Smoking" signs shall be posted on the premises in compliance with CMC 6.11.060.
d. Loitering: There shall be no loitering allowed outside the business. The business owner is responsible for monitoring the premises to prevent loitering. e. Live Entertainment: No live entertainment is permitted as part of the Conditional Use Permit, including live music, disc jockey, karaoke, and dancing. f. Noise: Music shall be played indoors and at a low level at all times. No music shall be audible from outside the tenant space. Unreasonable levels of noise, sounds and/or voices, including but not limited to amplified sounds, loud speakers, sounds from audio sound systems, music, and/or public address system, generated by the establishment shall not be audible to a person of normal hearing capacity from any residential property.

4. Permit Expiration: The Conditional Use Permit with Site and Architectural Review and a Parking Modification Permit approved herein shall be valid for one year from the date of final approval. Within this one-year period, building permits must be submitted to the City of Campbell.

5. Indemnity: By exercise of this permit approval, the applicant shall indemnify and defend the City of Campbell, its officers, officials, employees, and agents from any and all actions, liabilities, losses, and torts, including attorney’s fees arising out of or connected unto any challenge to the decision of the City Council on this application.

6. Construction Hours/Fines/Stop Work Notice: Failure to comply with permitted working hours that result in verified complaints may result in the issuance of a Stop Work Notice issued to the project with cessation of work for a minimum of seven (7) days from the date of issuance and an administrative fine of up to $1,000.00.

7. Timely Completion: Once under construction it shall be the obligation of the property owner and contractor to demonstrate continued progress on the project. In the event the building permit expires, the City may impose fines or exercise administrative remedies to compel timely completion of work.

8. Plan Revisions: Upon prior approval by the Community Development Director, all Minor Modifications to the approved project plans shall be included in the construction drawings submitted for Building Permit. Any modifications to the Building plan set during construction shall require submittal of a Building Permit Revision and approval by the Building Official prior to Final Inspection.

9. Water Efficient Landscape Standards : This project is subject to the California Model Water Efficient Landscape Ordinance (MWELO). The building permit application submittal shall dem onstrate compliance with applicable MWELO and landscaping requirements.

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Attachment: Resolution Approving a Conditional Use Permit with Site and Architectural Review and a Parking Modification Permit (1308 & 1336 Conditions of Approval
Conditional Use Permit with Site and Architectural Review and Parking Modification File No.: PLN-2020-64

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10. Signage: No signage is approved as part of the development application approved herein. All signage shall be installed and maintained consistent with the provision of the Sign Ordinance, Chapter 21.30 of the Campbell Municipal Code.

11. Location of Mechanical Equipment: No roof -mounted mechanical equipment (i.e. air conditioning units, ventilation ducts or vents), shall be added to the existing building without providing screening of the mechanical equipment from public view and surrounding propertie s. The screening material and method shall be architecturally compatible with the building and requires review and approval by the Community Development Director and Building Division prior to installation of such screening.

12. Outdoor Storage : No outdoor storage is per mitted on the subject property (not including marked business vehicles which may be parked overnight).

13. Business License: A valid City of Campbell business license shall be maintained for any business operating on the property at all times.

14. Property Maintenance: All exterior areas shall be maintained free from graffiti, trash, rubbish, posters and stickers placed on the property.

15. Parking & Driveway Areas : All parking and driveway areas shall be striped and maintained in compliance with the a pproved plans and Chapter 21.28 (Parking and Loading) of the Campbell Municipal Code. All parking and driveway areas shall be regularly swept and cleaned to remove litter and debris.

16. Noise: Doors shall remain closed at all times the facility is in use. Regardless of decibel level, noise shall not obstruct the free use of neighboring uses so as to unreasonably interfere with the comfortable enjoyment of adjoining properties or tenant spaces.

17. Landscaping: All exterior landscaping, including trees, shall be maintained in good condition.

18. On-Site Lighting: On-site lighting shall be shielded away from adjacent properties and directed on site. The design and type of lighting fixtures and lighting intensity of any proposed exterior lighting for the project shal l be reviewed and approved by the Community Development Director prior to installation of the lighting for compliance with all applicable Conditions of Approval, ordinances, laws and regulations. Lighting fixtures shall be of a decorative design to be com patible with the residential development and shall incorporate energy saving features.

19. Perimeter Fencing/Walls: Fencing and walls surrounding the perimeter of the site shall be maintained in good condition.

20. Revocation of Permit : Non-compliance with these standards, or any other conditions of approval specified herein or any standards, codes, or ordinances of the City of Campbell or State of California shall be grounds for consideration of revocation by the

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Attachment: Resolution Approving a Conditional Use Permit with Site and Architectural Review and a Parking Modification Permit (1308 & 1336 Conditions of Approval
Conditional Use Permit with Site and Architectural Review and Parking Modification File No.: PLN-2020-64

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Planning Commission. In order to cover staff costs for a revocation hearing, the applicant shall be required to cover the time and materials for such action, not to exceed the cost of a Conditional Use Permit based on the fee schedule in effect at the time of the public hearing. In the event the Planning Commission finds that no wrongdoing has occurred, no payment shall be required.

BUILDING DIVISION

21. Permits Required: A building permit application shall be required. The building permit shall include Electrical/Plumbing/Mechanical fees when such work is part of the permit.

22. Construction Plans: The conditions of Approval shall be stated in full on the cover sheet of construction plans submitted for building permit.

23. Plan Preparation : This project requires plans prepared under the direction and oversight of a California licensed Engineer or Architect. Plans submitted for building permits shall be “wet stamped” and signed by the qualifying professional person.

24. Size Of Plans: The minimum size of construction plans submitted for building permits shall be 24 in. X 36 in.

25. Site Plan : Application for building permit shall include a competent site plan that identifies property and proposed structures with dimensions and elevations as appropriate. Site plan shall also include site drainage details. Elevation bench marks shall be called out at all locations that are identified as “natural grade” and intended for use to determine the height of the proposed structure.

26. Title 24 Energy Compliance: California Title 24 Energy Standards Compliance forms shall be blue-lined on the construction plans. Compliance with the Standards shall be demonstrated for conditioning of the building envelope and lighting of the building.

27. Special Inspections: When a special inspection is required by C.B.C. Chapter 17, the architect or engineer of record shall prepare an inspection program that shall be submitted to the Building Official for approval prior to issuance of the building permits, in accordance with C.B.C Chapter 1, Section 106. Please obtain City of Campbell, Special Inspection forms from the Building Inspection Division Counter.

28. Non-point Source Pollution: The City of Campbell, standard Santa Clara Valley Non- point Source Pollution Control Program specification sheet shall be part of plan submittal. The specification sheet (size 24” X 36”) is available at the Building Division service counter.

29. Title 24 Accessibility – Commercial: On site gene ral path of travel shall comply with the latest California Title 24 Accessibility Standards. Work shall include but not be limited to accessibility to building entrances from parking facilities and public sidewalks.

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Attachment: Resolution Approving a Conditional Use Permit with Site and Architectural Review and a Parking Modification Permit (1308 & 1336 Conditions of Approval
Conditional Use Permit with Site and Architectural Review and Parking Modification File No.: PLN-2020-64

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Campbell City CouncilAugust 16, 2022

Campbell City Council
August 16, 2022