Hillsborough City Council
March 13, 2023

TOWN OF HILLSBOROUGH
San Mateo County
Christine Krolik, Mayor 1600 Floribunda Avenue
Sophie Cole, Vice Mayor Hillsborough, CA 94010
Marie Chuang, Councilmember www.hillsborough.net
Leslie Marden Ragsdale, Councilmember Phone 650-375-7400 Alvin L. Royse, Councilmember

A G E N D A
MONDAY, MARCH 13, 2023
4:00 PM STUDY SESSION
4:30 PM CLOSED SESSION
6:00 PM CITY COUNCIL MEETING
Hillsborough Town Hall and Zoom Video Conference
Meetings of the City Council are held in-person. As a courtesy, and in compliance with applicable state law, staff and members of the public may participate in the meeting in person at Town Hall or virtually via Zoom Video Conference.

Members of the City Council may participate remotely from time to time in accordance with the provisions of Government Code section 54953.

To attend the meeting in person:
1600 Floribunda Avenue, Hillsborough, CA 94010
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STUDY SESSION (4:00 pm)

CALL TO ORDER

ROLL CALL
Agenda – Hillsborough City Council
Monday, March 13, 2023

A. STUDY SESSION: PENSION UPDATE PURSUANT TO CEQA GUIDELINE 15378

ADJOURN STUDY SESSION
CLOSED SESSION (4:30 pm)

CALL TO ORDER

ROLL CALL

PUBLIC COMMENT ON CLOSED SESSION ITEMS
Members of the public may provide public comments on any item on the Closed Session agenda. Members of the public participating in person are requested to complete a yellow speaker card and submit it to the City Clerk before addressing the City Council. Members of the public participating via the Zoom platform may use the “raise hand” feature or, if calling in by phone, press *9 on the telephone keypad. Speakers are limited to one comment per Closed Session item.

ANNOUNCEMENT OF CONFLICT OF INTEREST
This portion of the agenda is for Councilmembers to disclose any conflict of interest related to any item on the Closed Session agenda.

Any Councilmember who has confirmed a conflict of interest or has reason to believe they have a conflict of interest should disclose the conflict for the record and abide by the disqualification requirements contained in FPPC regulations.

PUBLIC ANNOUNCEMENT OF CLOSED SESSION ITEMS
A. CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION
Pursuant to Government Code Section 54956.9(d)(1)
Hillsborough Citizens Alliance v. Town of Hillsborough
San Mateo Superior Court Case No. 21CIV04709
B. CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION
Pursuant to Government Code Section 54956.9(d)(1)
Town of Hillsborough v. All Persons Interested in the Matter of the Proceedings for Resolution No. 22-83 Adopting Maximum Rates for Water Service Charges San Mateo Superior Court Case No. 23CIV01028
C. CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION Pursuant to Government Code Section 54956.9(d)(2)
Town as Defendant – Two Potential Cases (see legal threat documents in agenda packet) D. PUBLIC EMPLOYEE PERFORMANCE EVALUATION
Pursuant to Government Code Section 54957(b)(1)
Title: City Manager

ADJOURN CLOSED SESSION
REGULAR CITY COUNCIL MEETING (6:00 pm)
I. CALL TO ORDER
II. ROLL CALL
Agenda – Hillsborough City Council
Monday, March 13, 2023

III. PLEDGE OF ALLEGIANCE
IV. REPORT FROM CLOSED SESSION
V. MINUTES: February 27, 2023
VI. PRESENTATION
• MAYOR'S APPLAUSE
VII. PUBLIC COMMENT I
This portion of the meeting is reserved for persons wishing to address the City Council on any matter not on the agenda.

Members of the public participating in person are requested to complete a yellow speaker card and submit it to the City Clerk before addressing the City Council. Members of the public may provide comments via the Zoom platform by using the “raise hand” feature or, if calling in by phone, by pressing *9 on the telephone keypad. In response, the Town will unmute the speaker and allow them to speak on any topic for up to three minutes. If there appears to be a large number of speakers, speaking time may be reduced to no less than 2 minutes, at the discretion of the Mayor. Members of the public are limited to one comment at this time. State law prohibits the Council from discussing or acting on non-agenda items, and generally limits the ability of the Council to respond to any public comments made regarding non-agenda items.

VIII. ANNOUNCEMENT OF CONFLICT OF INTEREST
This portion of the agenda is for Councilmembers to disclose any conflict of interest related to any item on the agenda. Any Councilmember who has confirmed a conflict of interest or has reason to believe they have a conflict of interest should disclose the conflict for the record and abide by the disqualification requirements contained in FPPC regulations.

IX. CONSENT CALENDAR:

The Consent Calendar includes routine items, which do not require discussion. A Councilmember may remove an item for discussion, and any member of the audience may request a Councilmember to remove an item for discussion. The items are approved in one motion.

1. MONTHLY CLAIMS: FEBRUARY 1 THROUGH FEBRUARY 28, 2023 PURSUANT TO CEQA GUIDELINE 15378

2. RECEIVE FY 2022-23 MID-YEAR FINANCIAL AND FY 2023-24 BUDGET PLANNING REPORT PURSUANT TO CEQA GUIDELINE 15378

3. RESOLUTION APPROVING DESIGNATION OF APPLICANT’S AGENTS FOR NONSTATE AGENCIES AND FINDING THIS ACTION EXEMPT FROM CEQA PURSUANT TO CEQA GUIDELINE 15378

4. ADOPTION OF AN ORDINANCE AMENDING CHAPTERS 8.16, 8.28, 14.04, 16.44, AND 17.56 OF THE HILLSBOROUGH MUNICIPAL CODE RELATED TO TREE

PROTECTION AND PRESERVATION PURSUANT TO CEQA GUIDELINES SECTIONS 15061(b)(3), 15307, 15308, 15378(b)(2) AND (b)(5)

5. RESOLUTION TERMINATING THE LOCAL EMERGENCY RELATED TO THE

DECEMBER/EARLY JANUARY WINTER STORMS/FLOODING EVENT AND FINDING THIS ACTION EXEMPT FROM CEQA PURSUANT TO CEQA GUIDELINE 15378

6. RESOLUTION ADOPTING REVISED TOWN POLICY 401: CHANGE OF ADDRESS PURSUANT TO CEQA GUIDELINE 15378
Agenda – Hillsborough City Council
Monday, March 13, 2023

X. PUBLIC HEARING:

7. PUBLIC HEARING TO CONSIDER AND ADOPT RESOLUTION APPROVING (A) COMCAST’S PERMIT APPLICATIONS FOR THE INSTALLATION OF SEVEN (7)

BATTERY CABINETS (UTILITY BOX OUTDOOR FIXTURES) AT LOCATIONS IN THE PUBLIC RIGHT OF-WAY (TWO (2) CABINETS NEAR1025 VISTA ROAD, TWO (2) CABINETS NEAR 1305 HAYNE ROAD, ONE (1) CABINET NEAR 1025 TOURNAMENT DRIVE, AND TWO (2) CABINETS NEARS 1020 CRYSTAL SPRINGS ROAD); AND (B) THE CITY ENGINEER’S RECOMMENDATION TO GRANT COMCAST’S REQUEST FOR AN EXCEPTION TO POLICY NO. 19-01 FOR THESE INSTALLATIONS,

PURSUANT TO CEQA DETERMINATIONS

8. RESOLUTION APPROVING A REVOCABLE ENCROACHMENT PERMIT APPLICATION FOR 690 FAIRWAY CIRCLE PURSUANT TO CEQA GUIDELINE 15303 XI. DISCUSSION

9. DISCUSSION ON REFINANCING OF TOWN OF HILLSBOROUGH’S CERTIFICATES

OF PARTICIPATION AND INTEREST RATE SWAPS PURSUANT TO CEQA GUIDELINE 15378
XII. INFORMATIONAL

10. CITY MANAGER'S UPDATE
XIII. PUBLIC COMMENT II
This portion of the meeting is reserved for persons wishing to address the City Council on any matter not on the agenda.

Members of the public participating in person are requested to complete a yellow speaker card and submit it to the City Clerk before addressing the City Council. Members of the public may provide comments via the Zoom platform by using the “raise hand” feature or, if calling in by phone, by pressing *9 on the telephone keypad. In response, the Town will unmute the speaker and allow them to speak on any topic for up to three minutes. If there appears to be a large number of speakers, speaking time may be reduced to no less than 2 minutes, at the discretion of the Mayor. Members of the public are limited to one comment at this time. State law prohibits the Council from discussing or acting on non-agenda items, and generally limits the ability of the Council to respond to any public comments made regarding non-agenda items.

XIV. CITY COUNCIL ITEMS
This section of the agenda provides the City Council an opportunity to ask questions on any project of interest. No action can be taken on any item not on the agenda.

XV. ADJOURNMENT
SPECIAL ACCOMMODATIONS:

If you need a disability-related modification or accommodation, including auxiliary aids or services, to participate in the City Council meeting, or if you need an agenda in an alternate form, please contact the City Clerk’s Office at 375-7412 at least 24 hours before the scheduled City Council meeting.

ADDRESSING THE CITY COUNCIL:

Members of the public may provide written comments to the City Council regarding any item on the agenda up to two hours before the meeting to [email protected] or by mail/in person at 1600 Floribunda Avenue, Hillsborough, CA 94010. Any writings or documents provided to a majority of the City Council regarding any item on this agenda prior to the deadline, except as exempt from public disclosure under applicable law, will be available for public inspection on the Town website, and in the City Clerk’s Office at 1600 Agenda – Hillsborough City Council
Monday, March 13, 2023

Floribunda Avenue, Hillsborough, CA 94010, during regular business hours. During the meeting, members of the public may provide public comments on a consent calendar item, any other agenda item, or on non-agenda items during the general public comment portions of the meeting. All members of the public will be limited to one comment per item or non-agenda item.

AUDIO / VISUAL ADVISORY:

Those persons who wish to use PowerPoint or other mediums when presenting to the City Council will be required to submit media items to the City Clerk by 12:00 p.m. on the day of the meeting. Media items can be emailed to [email protected].

AUDIO OR VIDEO RECORDINGS:

Please be advised that under the Brown Act, any person has the right to record the City Council meeting, including the audience in attendance, using an audio or video recording device subject to certain exceptions. Please be aware that by attending a City Council meeting, you may be audio or video recorded.

TOWN OF HILLSBOROUGH
San Mateo County
1600 Floribunda Avenue
Hillsborough, CA 94010
A

STUDY SESSION

CITY COUNCIL MEETING
MARCH 13, 2023

AGENDA STAFF REPORT
ITEM SUBJECT: STUDY SESSION: PENSION UPDATE PURSUANT TO CEQA GUIDELINE 15378
SUMMARY: This agenda item is to provide an update on the status of the Town’s pension plans.

This is a discussion item only and no action is required.

Background
The Town’s pension plans are at approximately 80% funded status as of the latest available actuarial valuation (June 30, 2021). In comparison, the Town is within the most common funded status range when compared to other California cities.

CalPERS
CalPERS is taking steps to improve the funded status of the plan and mitigate risk. The CalPERS 2022 Annual Review of Funding and Risk Report (Attachment 1) outlines the focus areas for the pension plan including reporting on the funded status of the system, identifying and quantifying investment risks, examining other system risks, such near-term high inflation and the COVID pandemic, and discussing risk mitigating activities for the system and employers.

At the conclusion of the 2021 Asset Liability Management (ALM) process, the CalPERS board voted to keep the discount rate at 6.8% and selected a new asset allocation for the fund’s investment portfolio for the next four years. Additionally, new economic and demographic actuarial assumptions were adopted by the board. These new assumptions will impact employer contribution rates for public agency employers in FY 2023-24 due to timing of the actuarial valuation cycle. The adopted changes to the actuarial assumptions are expected to slightly increase employer contributions.

In addition, the CalPERS portfolio achieved an investment gain of 21.3% in FY 2020-21 and an investment loss of 6.1% in FY 2021-22 Investment income is a significant portion of how the annual pension amount is funded. Member agencies will see year to year increases or decreases in required contributions due to annual fluctuations in investment returns that vary from the discount rate (expected return). The CalPERS board periodically reviews the need for changes to the discount rate, which estimates the long-term expected rate of return, rather than the one-year performance of the portfolio.

Town’s Management of Pension Costs
The Town has proactively managed its pension obligation, including paying off the side fund liabilities, creating a second pension formula for miscellaneous employees, partnering with -1-
Agenda Staff Report - Hillsborough City Council
March 13, 2023

employees to pay a portion of the employer contribution, and more recently, funding a pension 115 trust to maintain reserves to defray future impacts. The Town established and funded the trust in 2019 with the purpose of having reserves to mitigate future budget volatility from annual contribution changes. Monies are placed in a restricted trust account that can only be used to pay for pension costs. The reserves will be available to smooth out budget increases coming from a steep climb in annual required pension contributions.. As of June 30, 2022 audited financial statements, the trust balance is $5 million, and the reserve balance equates to approximately 1.1 years of annual pension contribution costs.

Pension Funding Analysis
Annual Pension Cost Affordability
Staff worked with the actuary to prepare a projection of the Town’s annual required contribution amounts over the next 20 years. Based on the projection, amounts are nearly doubling over the next 10 years. Contributions then start to move downward due to the higher number of employees/retirees in the lower cost PEPRA pension formula, as well as other policy changes. The analysis reviewed the adequacy of the Section 115 trust to maintain contribution affordability over the next ten years. Based on a certain set of assumptions, the trust is adequate to cover the difference between the projected growth of the required contribution and a target contribution growth capped at 2% per annum. The target amount was established to increase confidence that the pace of growth in pension costs does not overshadow the pace of property assessed valuation growth, which drives a significant portion of the Town’s revenue.

Improving Funded Status
In addition to looking at how the Town addresses the significant increases in the annual contribution that will be coming in future years, the question comes up about how cities can manage down their pension liability. This would come in the form of accelerating payments above the required annual contributions, to reduce the liability sooner. Doing so comes from excess reserves or revenue and can be fashioned as a one-time payment or an annual established amount. Some cities establish policies that range from using General Fund unrestricted reserves or excess revenues for one-time payment to establishing a fixed annual funding amount. Given that economic cycles and impacts can come on swiftly, the Town handles this question in the annual budget session, based on availability of funds and the priorities for the coming year.

FY 2023-24 Approach to Pension Pre-Funding
Providing a periodic update to City Council on the pension liability can help inform any potential additional steps or funding discussions for the coming year. Based on this update and analysis, staff is recommending that no additional funding to the 115-pension trust be made for FY 2023-24 budget. This recommendation is based on the sufficiency of the current trust balance to cover the future budget increases, as well as not investing at a time when there is volatility in the markets and uncertainty in the economic environment. In addition, given the volatile economic environment, staff is also recommending no advance pension funding for the FY 2023-24 budget.

FISCAL IMPACT: There is no fiscal impact associated with this discussion item.

ENVIRONMENTAL ISSUES: This item is exempt from environmental review pursuant to the California Environmental Quality Act (CEQA) Guidelines sections 15378(b)(2) and 15378(b)(5) as -2-
Agenda Staff Report - Hillsborough City Council
March 13, 2023

ongoing administrative or organizational activities that will not result in direct or indirect physical changes to the environment.

ATTACHMENTS:

1. CalPERS 2022 Annual Review of Funding and Risk Report

2. PowerPoint presentation
PREPARED BY: Jan Cooke, Finance Director
RECOMMENDATION: No action is required. This item is for discussion only. -3-
California Public Employees’ Retirement System
2022 Annual Review of Funding Levels and Risks
November 2022
ATTACHMENT 1
-4-
Table of Contents
Introduction 2
Executive Summary 3
Funding Levels 4
Identifying and Quantifying Investment Risks 6
Shared Risk 6
Risk of Low Funding Levels 6
Lower Than Expected Average Investment Returns 8
Investment Shocks 13
Other Risks 15
COVID-19 15
Inflation 17
Impacts of Plan Maturity 20
Trend Toward Lower Expected Returns and Discount Rates 24 Managing Risk 27
Current Amortization Progress 27
Employers Making Supplemental Payments 29
California Employers’ Pension Prefunding Trust Program 31 Conclusion 32
Appendix A – Public Employees’ Retirement System (PERS) Summary Statistics 34 Appendix B – Results of June 30, 2021 Public Agency Valuations for Safety Plans 35 Public Agency Funded Ratios for Safety Plans 35
Public Agency Contribution Rates for Safety Plans 36
Appendix C – Results of June 30, 2021 Public Agency Valuations for Miscellaneous Plans 38 Public Agency Funded Ratios for Miscellaneous Plans 38
Public Agency Contribution Rates for Miscellaneous Plans 39 Appendix D – Recent and Projected Employer Contribution Rates 41 Appendix E – Asset and Liability Volatility Ratio Charts 42 -5-
CalPERS 2022 Annual Review of Funding Levels and Risks

Introduction
This report is intended to assist the CalPERS Board of Administration (board), participating employers and other stakeholders in assessing the soundness and sustainability of the Public Employees’ Retirement System for ongoing pension plans. It does not address the Terminated Agency Pool or the 1959 Survivor Benefit Program, nor does it address the other systems (Judges’ Retirement Systems, Legislators’ Retirement System or the non-pension programs) administered by CalPERS.

The results presented in this report are based on the June 30, 2021 annual valuations, which have been projected forward to June 30, 2022 based on preliminary investment performance for the year ending June 30, 2022. Unless stated otherwise, current and projected results in the report are based on a long-term discount rate of 6.80% and the demographic assumptions reflect all changes recommended in the 2021 Experience Study.

The actual results based on the June 30, 2021 valuations are summarized in Appendix A.

This report focuses on:
• Reporting the current funded status of the system
• Identifying and quantifying investment risks
• Examining other system risks, such near-term high inflation and the COVID pandemic • Discussing risk mitigating activities for the system and employers Pension and investment beliefs adopted by the board that inform our work on risks and funding include the following:

Pension Belief 5: Funding policies should be applied in a fair, consistent manner, accommodate investment return fluctuations and support rate stability.

Pension Belief 9: Sound understanding, and deployment of enterprise-wide risk management is essential to the ongoing success of a retirement system.

Investment Belief 1: Liabilities must influence the asset structure. More specifically, ensuring the ability to pay promised benefits by maintaining an adequate funding status is the primary measure of success for CalPERS.

Investment Belief 9: Risk to CalPERS is multi-faceted and not fully captured through measures such as volatility or tracking error.
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CalPERS 2022 Annual Review of Funding Levels and Risks

Executive Summary
With the lower-than-expected investment returns for fiscal year (FY) 2021-22, the funded status of the system has decreased from 81.2% as of June 30, 2021 to an estimated 72% as of June 30, 2022. Funded ratios vary somewhat among the different plans, with the plans for miscellaneous members generally having higher funded ratios than plans for safety members.

The recent decrease in funded status has increased the risk that plans will fall to low funding levels. In addition, employer contribution levels are expected to increase in response to the investment loss for fiscal year 2021-22. With the added economic stress due to the Coronavirus pandemic, increased inflation, and the possibility of a recession, the ability of employers to continue making required contributions is an area of concern for the system and its members. However, with few exceptions, employers are currently up to date with their contribution requirements, and many are making additional discretionary payments to improve their funded status and lower their overall costs.

The termination policies and processes currently in place should mitigate risk to the system. However, if an employer is under severe financial stress, the termination policies do not fully protect the benefits of members that have served that employer. Ultimately, the members’ benefits are only secure if the employer continues to make the required contributions.

CalPERS completed an Asset Liability Management (ALM) process in November 2021 that reviewed the capital market assumptions and adopted a revised strategic asset allocation. In addition, the discount rate was reduced to 6.8% along with a reduction in the inflation assumption to 2.3% and an increase in the payroll growth assumption to 2.8%. At the same time the Actuarial Office completed its Experience Study to review the demographic experience within the pension system and made minor changes to modify future assumptions where necessary. The most significant change was implementing fully generational mortality assumptions with mortality rates weighted by benefits. This weighting reflects the observed trend of lower mortality rates for wealthier members.

Recent and current increases in the Consumer Price Index (CPI) are expected to have a material impact on the pension liabilities in future actuarial valuation reports for both retirees (due to cost of living increases) and the active members (due to future salary increases). We have determined that required contributions may increase 5%-12% of payroll over the next several years depending on how long the high inflation period lasts and how quickly it returns to Federal Reserve targets.

This report illustrates the impact of recent events on the retirement system and projects the possible impacts of various factors that are possible in the future. While there is no immediate concern regarding the system’s ability to pay required benefits, the possibility of unfavorable events in the near future, such as high inflation, continued impacts from the Coronavirus pandemic and the possibility of an economic recession, lead to concerns that required employer contributions could rise to levels that would be challenging for employers. Understanding these risks and opportunities to manage them is the main focus of this report.
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CalPERS 2022 Annual Review of Funding Levels and Risks

Funding Levels
The overall level of funding of the system has been quite volatile over the last 2-3 years. Strong investment performance during the fiscal year ending June 30, 2021 significantly improved asset values. However, the following fiscal year ending June 30, 2022 saw decreases in asset values due to the FY 2021-22 poor investment return.

The system is a conglomeration of multiple plans and several risk sharing pools. Each of these pools and the non-pooled plans are funded separately. Over the last two years, many of these individual plans received additional discretionary payments (ADPs) from the sponsoring agencies. As a result, funded statuses for these plans are higher than they would otherwise be.

The chart below shows the funding levels of the various components of the Public Employees’ Retirement Fund (PERF) as of June 30, 2020, June 30, 2021, and estimated results as of June 30, 2022. Estimates as of June 30, 2022 were based on preliminary asset values as of June 30, 2022 and liabilities rolled forward from the most recent valuation date of June 30, 2021 to June 30, 2022. 1 June 30, 2020 valuations based on a 7.00% discount rate. 2 June 30, 2021 valuations based on a 6.80% discount rate. 3 June 30, 2022 projected funded status based on a preliminary investment return of -7.4% for FY 2021-22. -8-
CalPERS 2022 Annual Review of Funding Levels and Risks

The previous chart shows that the funded status increased significantly between June 30, 2020 and June 30, 2021, and then decreased significantly as of June 30, 2022. Based on the results of the funding valuations as of June 30, 2021, the overall funded ratio of the PERF was about 81% and the estimated PERF funded ratios of June 30, 2022 is 72%. While the favorable and unfavorable returns during these two years both deviated significantly from the expected returns of 7.0% and 6.8% respectively, the returns for both years were within two standard deviations of the expected return. Based on the current allocation of assets, returns that deviate from the expected return by two standard deviations or more are expected to occur about once every 20 years. Therefore, such investment volatility is expected to occur sporadically but not regularly.

The term “funded status” as used in the chart, is the funded portion of the funding target determined annually for each plan in the actuarial valuation process. This funding target reflects all the actuarial assumptions and methods adopted by the Board of Administration. Alternate funding methods and assumptions would yield different funding targets and therefore different funded status results. For example, reflection of a lower assumption for future investment return would lower the current funded status for each CalPERS plan. The Trend Toward Lower Discount Rates section of this report provides funded status results by employee group under alternate assumptions for future investment return (i.e., discount rate).

If an agency elects to terminate its contract with CalPERS, the employer is required to contribute the amount necessary to fully fund the plan. However, for this purpose, the funded status of the plan is determined using different actuarial assumptions and methods. Since the employer will no longer be obligated to make up any shortfalls in investment return (or due to other economic or demographic events), CalPERS funds the terminated agency pool on a much more conservative basis to ensure that the affected members’ benefits are secure. With the funding of terminated plans based on fixed income assets, the termination discount rate depends on actual market rates of return for such assets on the date of termination. Such rates are lower than the ongoing discount rate (currently around 4%) and result in a lower funded status for CalPERS plans. A typical CalPERS plan that is currently 70% funded based on a 6.8% discount rate, would be around 40%-45% funded based on current termination rates. This indicates some additional risk to public agency members, in the form of potential benefit reductions, if their employer were to terminate their plan and be unable to make the required final contribution to fully fund the plan. -9-
CalPERS 2022 Annual Review of Funding Levels and Risks

Identifying and Quantifying Investment Risks
This section looks at risks to the retirement system and members due to future investment performance by focusing on three key risk considerations:

1. The funded status and probability that it will fall to very low levels

2. The risk of increasing contributions due to lower-than-expected average investment returns

3. The possibility of high contribution increases in a single year due to investment “shocks” These risks were evaluated in connection with alternate investment scenarios. Other factors can impact the risks of the system but generally not to the same extent as investment returns. However, COVID and high near-term inflation are potentially material risks and are analyzed separately in later sections of the report.

Shared Risk
Member benefits are paid through the combination of CalPERS investment returns, required employer contributions, and member contributions. While there is a legal requirement for the employer to make the full contribution needed to fund the system, in extreme circumstances the employer may be unable to do so. In these situations, the employer’s financial hardship can become a direct risk to the members and their benefits.

The risks borne by the employers (primarily investment risk) can impact their ability to make required CalPERS contributions. Investment and actuarial policies adopted by the board are always adopted with the purpose of maintaining benefit security for members.

By focusing on the risks to the soundness and sustainability to the overall system, CalPERS can take steps to mitigate risks to both members and employers. Ultimately, pensions are a shared responsibility between members and employers.

Risk of Low Funding Levels
When the funded status of a plan is low, the required employer contributions can become quite high. If required contributions exceed the amount that an employer is able to pay, there is a possibility the employer’s CalPERS contract will be terminated which can lead to benefit reductions for members of that plan. Many CalPERS plans are less than 100% funded as of June 30, 2022. This is not a significant cause for concern provided employers continue to make the actuarially determined required contributions. While there is no specific funded status that indicates a retirement plan and its members are in jeopardy, plans that fall below 50% would likely have short-term required contributions that would strain the employer’s budget.
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CalPERS 2022 Annual Review of Funding Levels and Risks

The likelihood that a plan falls below 50% funded in the future can be estimated with “Stochastic Modeling”. With this type of modeling, alternate future investment scenarios are used to create projected future funded ratios. The results provided in this section are based on the outcomes of 5,000 alternate investment scenarios for all future years provided by the investment office.

Alternate investment return scenarios were developed based on the expected returns and standard deviations of each of the asset classes in the PERF. Assumed correlations along with a covariance matrix between asset classes are also reflected.

Based on stochastic modeling, the State Miscellaneous Plan has a 23.4% probability of falling below 50% funded at some point over the next 30 years. For the School's Pool, the probability is 24.9%. While many factors contribute to these results, the recent investment loss during the fiscal year ending June 30, 2022 was a primary factor in increases to these percentages. Notably, additional contributions by the state reduced the probability for the State Miscellaneous Plan.

The probability of falling below 50% funded status for CalPERS public agency plans is illustrated in the chart below. The chart shows the numbers of non-pooled plans within various probability ranges of falling below 50% funded. (Pooled plans are expected to have similar results.) For example, 87 miscellaneous plans have a 25%-30% probability of falling below 50% funded over the next 30 years.

Probability of Falling Below 50% Funded (at any point in next 30 years) -11-
CalPERS 2022 Annual Review of Funding Levels and Risks

Lower Than Expected Average Investment Returns
While it is believed that the current investment policy and asset allocation will result in average long-term geometric returns of approximately 6.8%, future average returns may be higher or lower. It is also believed that there is an equal likelihood that long-term average returns will be either greater than or lower than

6.8%. Average future returns of greater than 6.8% pose little risk to the system. However, since required contributions for PEPRA members reflect the current 6.8% assumption, it could be considered that PEPRA members overcontributed if the fund earns greater than 6.8% on a long-term basis.

Returns in any year that are lower than the assumed 6.8% result in increases to employer contributions.

High employer contribution rates impose significant financial stress and may increase the risk that employers will default and be unable to make their required contributions. Since future employer contributions are one of the funding sources for the benefit payments, a default by the employer would result in increased risk to the members’ benefits. The level of financial stress associated with any particular level of contributions will differ by employer.

Current State
Current contribution levels or average contribution levels for public agency plans are shown in the table below. As shown below, employer contribution levels are relatively high, especially for safety plans. Actions to reduce the probability of low funded status or contribution volatility generally result in increases in the contribution levels. It is difficult to assess just how much strain current contribution levels are putting on employers. However, evidence such as collections activities, inquiries regarding extensions to amortization schedules and information regarding termination procedures indicate that some public agencies may be under significant strain.
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CalPERS 2022 Annual Review of Funding Levels and Risks

1June 30, 2020 valuations for state plans and the schools pool set FY 2021-22 rates and set FY 2022-23 rates for public agencies.
2June 30, 2021 valuations for state plans and the schools pool set FY 2022-23 rates and set FY 2023-24 rates for public agencies.

Note, for the above chart the results for Public Agency plans were determined by summing the required dollar contributions for each plan and then dividing by total payroll for all plans. -13-
CalPERS 2022 Annual Review of Funding Levels and Risks

Expected Future State
Below are projected employer contribution requirements (expressed as percentage of payroll) based on the June 30, 2021 actuarial valuation results projected forward with a preliminary investment return of –7.4% for FY 2021-22 and assumed annual investment returns thereafter of 6.8%. 1 FY 2022-23 state plan and schools pool rates are actual. FY 2022-23 and 2023-24 public agency rates are actual.
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CalPERS 2022 Annual Review of Funding Levels and Risks

Alternate Investment Scenarios
To the extent future experience deviates from the actuarial assumptions, adjustments are made to the unfunded liability position which result in required contribution increases or decreases from present levels.

The factor that is likely to have the largest impact on future contribution requirements is the investment return of the PERF. While actual plan experience in other areas such as mortality, inflation, rates of retirement, pay changes, etc., also impact required contributions, these factors are typically not as volatile as investment return.

The expected long-term investment return of the PERF is 6.8%. If the actual returns every year in the future were 6.8%, the following are expected to occur:
• Required employer contributions would continue to increase over the next few years while the full costs of recent investment losses are being phased in.
• In approximately five years, required employer contributions are expected to decrease. This is due to two separate factors:

1. the continual decrease in normal cost as Classic members retire or terminate and are replaced by PEPRA members, and

2. current required payments toward existing unfunded accrued liability bases will be gradually eliminated as individual UAL bases are fully paid-off.
• In the long-term, required employer contributions will trend toward the employer portion of the normal cost.
• The funded status of all plans would gradually increase to around 100% over the next 20 to 25 years.
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CalPERS 2022 Annual Review of Funding Levels and Risks

The charts below provide the projected funded status of the PERF and sample employer contribution rates for a public agency safety and miscellaneous plan over the next ten years reflecting the assumed 6.8% annual investment return, with alternative annual investment returns of 5.8% and 7.8% to demonstrate the sensitivity of the PERF and the plans to future investment returns.

Over longer periods of 30 years or more, chances are greater the average return will be closer to the expected geometric average of 6.8%. However, based on the current allocation of assets and the expected volatility of the various asset classes, the possibility exists that the average return over the next 30 years will fall outside of the range illustrated above of 5.8% to 7.8%. -16-
CalPERS 2022 Annual Review of Funding Levels and Risks

Investment Shocks
Over periods shorter than 30 years or single year periods, the likelihood of varying from the 6.8% expected return is even greater. For example, there is roughly a 16% chance that in a single year, the investment return will be lower than -5.2% and a 16% chance that it will be greater than 18.8%. These returns are one standard deviation lower and higher than the expected return of 6.8%. So, while it is more likely that any single year return will be between -5.2% and 18.8% (68% probability), the chance of falling outside this range for one year is not insignificant.

A two standard deviation higher or lower return is much less likely but does have roughly a 5% chance of occurring. The two standard deviation range is -17.2% to 30.8%. Or said another way, a return between -17.2% and 30.8% in any given year has a probability of around 95%.

While such “shock” returns are possible and do occur, history has shown that market corrections in the opposite direction typically occur over the next few years. However, such corrections are certainly not guaranteed.

The chart below provides the impact of various “shock” returns in the year ending June 30, 2023 with no assumed future correction. The purpose of the chart is to illustrate the potential impact of a single very good year or very bad year of investment return.

As demonstrated in the chart, funded status is impacted immediately and significantly while changes to required contributions happen more gradually due to the 5-year phase-in of the impact of investment gains and losses. The 5-year phase-in would allow time for a possible correction to occur which would then begin to have the opposite effect on future contributions. -17-
CalPERS 2022 Annual Review of Funding Levels and Risks

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CalPERS 2022 Annual Review of Funding Levels and Risks

Other Risks
COVID-19
As of the publication of this document, there have been close to 100,000 COVID-19 related deaths in California. While many of these deaths have been among older individuals, deaths have occurred at younger ages as well. The impacts of the pandemic in California began early in the 2020 calendar year and continue through today. During this relatively short period of time, impacts of the pandemic on the economy, public health and workplace norms have been significant but there remain many unknowns regarding the potential long-term impacts to CalPERS.

The pandemic has the potential to alter the experience of the retirement system in several different areas.

These include, investment returns, inflation, deaths, retirements, terminations, disability retirements, pay increases, etc. Experience in these areas will impact future actuarial valuation results and required contributions.

Impacts on the pension system to date
• In FY 2020-21 mortality was 20.1% over expected
• In FY 2021-22 mortality was 15.3% over expected
• More retirements occurred than expected in the school’s pool and within public agency plans While there were a significant number of additional deaths over the last 2 years, presumably due primarily to COVID 19, the impact on the liabilities of CalPERS plans has been less. Many of these “additional” deaths were among older retirees and therefore liability gains measured in the June 30, 2021 valuations were less material than if deaths occurred among younger retirees. We expect to see similar results in the June 30, 2022 valuations.

Long-term Questions
• Will viruses like COVID-19 be more common in the future? • Will COVID-19 survivors and those that experience Long Covid have a higher likelihood of earlier death or disability?
• Will increased handwashing, masks, and social distancing practices lower the risk of existing diseases and therefore improve future mortality?
• Will changes in work patterns (e.g., increased teleworking) change the frequency of job changes? • Will high interest rates and forecasts of slower economic growth persist and reduce the long-term expected return on plan assets?
These questions will be examined in the November 2025 experience study which will also analyze their impact to the pension system and provide us with enough credible experience to determine if changes are needed to the demographic assumptions.
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CalPERS 2022 Annual Review of Funding Levels and Risks

A larger concern is the impact of the pandemic on inflation and on employers’ ability to continue to make required contributions to CalPERS. Even before the pandemic, employers’ ability to make future required contributions was a concern. Increased inflation due in part to lingering supply chain issues and decreased revenues resulting from the pandemic have added to this concern.

Several employers have utilized budget management tools such as golden handshakes, furloughs, pay decreases and staff reductions to reduce short-term spending. In addition, many employers have issued Pension Obligation Bonds using the proceeds to reduce or eliminate CalPERS unfunded liability. There are risks to these tools and it remains of utmost importance that employers use appropriate due diligence. -20-
CalPERS 2022 Annual Review of Funding Levels and Risks

Inflation
Inflation recently experienced a 40-year high when US consumer prices jumped by 9.1% in June 2022.

Factors that are likely contributing to the current levels of inflation include supply chain issues persisting from the COVID-19 pandemic, high gas prices due in part to the war in Ukraine and the presence of a strong labor market. It appears likely high inflation will persist in the near-term. It remains to be seen how long before inflation declines to Federal Reserve targets. Given the transitory nature of some of the causes of the current high inflation and continued efforts by the Federal Reserve to reduce inflation through interest rate increases, it is expected that inflation will gradually return to levels near our current long-term inflation assumption of 2.3%. However, we will continue to monitor actual inflation levels as well as inflation forecasts by economists and investment professionals in order to assess whether a change to this assumption may be appropriate. Temporary high inflation can have significant impacts on CalPERS and its members as discussed below.

Cost of Living Adjustments (COLAs)
CalPERS retirees are entitled to cost of living adjustments based on the specific provisions adopted by the plan sponsor. Provisions vary, but most existing retirees are expected to receive higher benefit increases in the near-term while higher inflation persists. This is expected to result in somewhat higher employer contributions. While retirees' benefits will likely experience higher increases, these increases will likely not fully maintain current purchasing power for many retirees.

Pay Increases
Workers' wages generally tend to keep pace with inflation. However, pay increases may lag higher inflation measurements due to the time it takes to negotiate bargaining agreements. Future pay increases to CalPERS members exceeding the assumed increases will also lead to higher employer contributions. Such increases will be in the form of higher dollar contributions but required employer contributions expressed as a percentage of payroll will not be impacted to the same extent. For example, if plan members experience salary increases 5% greater than expected, the normal cost percent of the plan may not change materially. However, when the employer contributes future required normal costs, the unchanged normal cost percent will be applied to higher payroll resulting in higher dollar contributions.

Other Factors
The determination of member benefits can be impacted by other factors that are tied to inflation. One such factor is the compensation limit that applies to most PEPRA members. Increases to this pay limit due to higher inflation will increase employer contributions. In addition, certain federal limits that apply to qualified retirement plans are also impacted by inflation. These include limits on member compensation and benefit amounts. However, the impact of these federal limits is to cap benefits paid from the PERF with the difference in benefits being paid by the Replacement Benefit Fund (RBF). Therefore, higher increases to these federal limits due to higher near-term inflation will generally simply result in a different allocation of costs between the PERF and RBF.
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CalPERS 2022 Annual Review of Funding Levels and Risks

Estimated Contribution Impact
For purposes of estimating the impact of inflation on future contributions, we selected three reasonable scenarios for future near-term inflation. The three scenarios considered are shown below. The difference between the scenarios is the speed with which it takes to return to the expected price inflation of 2.3% (slow, medium, and fast).

Projection Year Fast Recovery Medium Recovery Slow Recovery 1 5.0% 5.0% 5.0%
2 8.0% 8.0% 8.0%
3 3.0% 4.0% 6.0%
4 2.3% 3.0% 4.0%
5 and beyond 2.3% 2.3% 2.3%
The charts below provide estimates of the additional employer costs that may arise under various scenarios for higher near-term price inflation. As stated above, increases to member earnings consistent with the inflation scenarios may take several years to materialize. However, for simplicity, the results below assume such pay increases occur immediately following the measurement of the higher inflation values. In addition, due to the phenomenon discussed above regarding how contributions are expected to change as dollar amounts versus rates of payroll, we have chosen to represent results as estimated contribution increases expressed as percentages of current payroll without adjustments for higher assumed inflation. This provides a better comparison of current dollar costs versus projected higher dollar costs. Finally, the graphs below provide median results for non-pooled plans. Actual results for individual plans can be somewhat higher or lower than the median. In particular, the actual results for plans with higher contracted COLA levels or with higher liability volatility ratios are likely to be higher than the median results. -22-
CalPERS 2022 Annual Review of Funding Levels and Risks

Estimated Median Impact of High Inflation on Employer Contribution Rates -23-
CalPERS 2022 Annual Review of Funding Levels and Risks

Impacts of Plan Maturity
The aging of the population and the retirement of the baby boomer generation are well known demographic shifts that have long been predicted and considered in the funding of the system. The higher number of retirements experienced over the previous ten years was anticipated, and this trend is expected to continue over the next several years as the remainder of the baby boomer generation leaves the workforce to enter their retirement years. Even though anticipated, demographic shifts such as this impact risk measures identified in this report and should be part of any discussion on funding levels and risks.

A simple way to look at the maturity level of CalPERS and its plans is to look at the ratio of active members to retirees. An ever more relevant ratio is a plan’s retiree liability to its total liability. A pension plan in its infancy will have a very low ratio of retiree liability to total liability. As the plan matures, the ratio increases.

A mature plan will often have a ratio above 60%-65%. For CalPERS and other retirement systems in the United States, these ratios have been steadily increasing in recent years. However, as seen in the charts below, this measure has flattened out somewhat in the last few years. Certain individual plans may have a significantly lower ratio, particularly if the plan has not been in existence as long.

The steep incline in this measure from 2011 through 2013 was largely attributable to the wave of retirements experienced during the most recent recession. A similar increase may be seen if we experience another recession in the near future.

In general, plans with higher retiree liability ratios have a shorter “duration” over which current accrued benefits will be paid. In some cases, particularly when a plan has only retiree liability, the actuary may determine that a shorter amortization period for unfunded liability is appropriate to avoid the depletion of plan assets.
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CalPERS 2022 Annual Review of Funding Levels and Risks

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CalPERS 2022 Annual Review of Funding Levels and Risks

Other measures of plan maturity are the Asset Volatility Ratio (AVR) and the Liability Volatility Ratio (LVR).

The AVR is the ratio of assets to payroll, and the LVR is the ratio of liability to payroll. As with the ratio of retiree liability to total liability, these ratios start out low given the low levels of assets and accrued liabilities, then increase over time as service is earned and contributions are made. Plans that have higher asset-to-payroll or liability-to-payroll ratios generally experience more volatile employer contributions (as a percentage of payroll) due to unexpected experience such as investment returns or mortality experience.

For example, if the investment return in any given year is 1% less than expected, a plan with an AVR of 10 experiences an investment loss equal to 10% of annual payroll, whereas a plan with an AVR of 5 only suffers an investment loss equal to 5% of annual payroll.

The projected increases in the AVR are only partially due to demographic maturation. The other factor causing the AVRs to increase is the fact that the assets are projected to grow to equal the accrued liability as the funded ratio grows toward 100%. The funding policy alone will cause the AVRs to increase above current levels. As the AVR increases, each investment loss will have a higher impact than the last from the perspective of the employer.

As plans mature, they accrue more assets and liabilities, both in an absolute sense, but also in relation to the financial resources of the plan sponsor. This means that when financial markets fail to deliver a strong return or even collapse like they did in 2008–2009, it can lead to very high contribution levels. These high contribution levels could result in severe financial stress for employers. Larger swings in required contributions are generally due to investment experience. However, other factors such as unexpected pay increases or mortality experience can also produce material contribution changes.

While many of the individual plans within CalPERS have comparable AVRs and LVRs, there can be significant differences from plan to plan based on several factors such as:
• The age of the plan
• The funded ratio of the plan
• The level of benefits provided by the plan
• Changes to the membership of the plan, for example if fire services are moved from a city to a county, etc.

Projections of these ratios indicates that Liability Volatility Ratios are projected to grow minimally (or decrease) for many CalPERS plans which have already been in existence for a long period of time. However, some public agency plans that were established more recently have lower current LVRs that are projected to grow more significantly in the future. Overall, the results indicate that contribution risks due to factors that impact plan liabilities, such as mortality, salary increases, retirements, etc., are not expected to increase significantly for most plans due to further maturation. However, current LVRs are already relatively high which indicates most CalPERS plans already face high contribution volatility. -26-
CalPERS 2022 Annual Review of Funding Levels and Risks

The gap between Asset Volatility Ratios and Liability Volatility Ratios is generally determined by the funded status of a plan. Lower funded plans have lower AVRs that are projected to approach the LVRs over time as the plan approaches full funding. As these AVRs increase, so too will contribution volatility due to future investment returns.

The chart below shows projected AVRs and LVRs for typical public agency plans. Additional charts for the State Miscellaneous Plan, the School’s Pool and less typical public agency plans can be found in the appendix.

Projected Asset and Liability Volatility Ratios
The maturing of a defined benefit retirement system is expected and is not a sign of mismanagement or that corrective action needs to necessarily take place. In fact, it is difficult to reduce plan maturity measures without lowering benefits or settling benefit obligations with retirees through lump sums or annuity purchases. However, it is important to recognize that increasing plan maturity typically leads to increased contribution volatility. Employers who may be more sensitive to such volatility may wish to create or increase funding toward a stabilization or rainy-day fund such as the new California Employers’ Pension Prefunding Trust (CEPPT). Eventually, there will be downward pressure on AVRs as liabilities for benefits earned by PEPRA members become a larger portion of total liabilities. -27-
CalPERS 2022 Annual Review of Funding Levels and Risks

Trend Toward Lower Expected Returns and Discount Rates
In addition to demographic forces, concerns about lower returns over the next 10 to 20 years persist. The trend nationally for public pension plans in recent years has been a reduction in the rate of return assumption.

Not only have bond yields trended downward, well below historical averages, but forecasts of economic growth and inflation also remain lower than they were prior to 2009. This means that plans must change their asset allocations to accept a higher level of investment risk (to achieve the same level of expected return) or to accept a lower expected return on investments. Over the prior year, price inflation has increased, and the Federal Reserve has responded by increasing interest rates. Whether this will impact long-term assumptions remains to be seen.

CalPERS is not alone in facing the changed expectations of what can be achieved in the capital markets. The chart below left shows the change in distribution of public pension investment return assumptions from 2012 through 2021.

The survey shows that based on the available 2021 Annual Comprehensive Financial Report (ACFR) data, discount rates ranged from 5.25% to 8.25% with a median of 7.00% Distribution of Public Pension Plan Investment Return Assumptions Data sources: Center for Retirement Research at Boston College Public Plans Data (left), downloaded September 19, 2022 and California Funding Valuations (right)
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CalPERS 2022 Annual Review of Funding Levels and Risks

Each year from 2012 through 2021 between 15% and 40% of the systems included in the survey reduced their discount rates.

Since the Public Plans Data was compiled from available 2021 ACFR information, it is somewhat out of date compared to current funding practices. For example, in the data used for the chart, the 2021 ACFR discount rate for CalPERS is 7.25%. For funding purposes, CalPERS used a discount rate of 7.00% for three years before reducing it to 6.80% in the 2021 funding valuation.

The Actuarial Office performed a more up to date, albeit smaller, survey of public retirement systems in California. The discount rates for 34 state, county and city retirement systems within California were compiled from funding valuations with valuation dates ranging from June 30, 2021 through January 1, 2022 and are shown to the right of the Public Plans Data. The survey found that discount rates ranged from

6.00% to 7.25%. There were 17 systems with discount rates at or above 7.00% and 17 systems with discount rates at or below 6.80%.
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CalPERS 2022 Annual Review of Funding Levels and Risks

Given the recent changes in capital market assumptions, and the uncertainty regarding what the actual CalPERS long-term rate of investment return will be, it is informative to consider the current funded status under alternate discount rate assumptions. The chart below provides such results assuming 5.8%, 6.8%, and

7.8% discount rates with no change to the current inflation assumption of 2.3%.

Funded Status based upon 5.8%, 6.8% and 7.8% Discount Rates 1 Inflation assumption is kept at 2.3% for all scenarios listed. The inflation assumption may increase or decrease along with the discount rate assumption.

Discount rate changes are primarily due to 1) revised expectations of the future returns of utilized asset classes, or 2) decision to raise/lower investment risk by shifting investment allocations toward more/less risky investments. The decision regarding the level of investment risk to target is among the most important decisions made by the system and its board. Excessive risk can lead to significant swings in funded status and contribution requirements as illustrated throughout this report. In addition, if discount rates are set higher than the reasonably expected average return, required contributions will be understated with the differences needing to be made up by future generations. Under that scenario, future contributions can rise to levels higher than if the discount rate had been set appropriately. -30-
CalPERS 2022 Annual Review of Funding Levels and Risks

Managing Risk
Current Amortization Progress
The goals of a retirement system’s amortization policy should be to pay down existing unfunded liability over a reasonable amount of time in order to:
• Provide benefit security for plan members
• Maintain intergenerational equity
• Limit contribution volatility to the extent possible
CalPERS current amortization policy adopted by the Board (effective with the June 30, 2019 Actuarial Valuation Reports), improved the overall expected outlook for these objectives relative to the previous policy. In particular, the current policy greatly reduces the possibility of “negative amortization” which occurs when required amortization payments are lower than the interest on a plan’s existing unfunded liability. However, it is still possible under the current policy that a plan’s required payment toward the UAL is less than one year of interest on the UAL. The main factors that can produce this result are 1) recent increases in the UAL due to investment losses for which required payments are in the 5-year ramp-up period, and 2) the relatively long average remaining amortization period for the UAL due to older bases with longer periods. As shown in the chart below, the number of rate plans subject to negative amortization has declined over the last few years as the recent UAL bases due to investment losses and assumption changes approach the end of the 5-year ramp-up period.

While the chart below indicates that no CalPERS plan has a required UAL payment for FY 2023-24 that is less than interest on the UAL, we expect that following the investment loss for FY 2021-22, several plans will have required UAL payments for FY 2024-25 that will be less than interest on the UAL. -31-
CalPERS 2022 Annual Review of Funding Levels and Risks

The Actuarial Amortization Policy addresses situations where an employer has requested an extension of the amortization of the UAL due to a financial necessity. Such employers are required to contribute at least interest on the UAL.
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CalPERS 2022 Annual Review of Funding Levels and Risks

Employers Making Supplemental Payments
Many employers have elected to make additional contributions over and above the minimum required contributions. Education efforts over the last few years have increased employers’ awareness of the ability to make such payments and the many advantages of doing so. As part of the education efforts, CalPERS Actuarial Office has been providing the Managing Employer Contribution (MEC) spreadsheet upon employer request and access to the newly created Pension Outlook tool on the CalPERS website. These tools help employers determine the possible impact of additional contributions to their plans.

The primary advantages of additional contributions are:
• Expected savings in interest paid and lowering the overall cost of the pension program • Lower risk of low funded status in the future
• Lower risk of high contributions in the future
• A reduction to net pension liability for financial reporting purposes • A reduction in pension expense for financial reporting purposes The form of these additional discretionary payments (ADPs) varies between employers. Some employers make occasional ADPs on an ad hoc basis, for example, if they have a budgetary surplus towards the end of a fiscal year. Other employers have made more regular ADPs on a monthly or quarterly basis, and some even have a formal plan in place to pay off their unfunded liabilities by a specific target date.

The State of California also makes contributions in excess of the actuarially required contributions in order to reduce unfunded liabilities. Some additional contributions have been collectively bargained, some are due to a provision in the California Constitution that requires certain surplus funds be used to reduce State pension debt, and some are discretionary and serve to reduce long-term costs and stabilize contribution rates. In FY 2022-23, the State is expected to contribute over $3 billion more than the actuarially required contributions.
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CalPERS 2022 Annual Review of Funding Levels and Risks

In addition to additional discretionary payments, public agencies have also been issuing Pension Obligation Bonds (POBs) with increased frequency since FY 2019-20. A POB is a taxable bond that some agencies issue to fund the unfunded portion of their pension liabilities by creating a debt to bondholders. The low interest environment likely contributed to the recent trend of public agencies issuing POBs. Now that interest rates are beginning to rise, the frequency of new POB issues may start to decline.

The chart below reflects the total ADPs made by public agencies including the POBs that were issued in order to make those ADPs. The ADPs reduce long-term public agency debt only to the extent they exceed new POB issues. Although much of the increase in ADPs over the last few years has been driven by an increased use of POBs, agencies continue to pay off pension debt. The total public agency ADPs that were not paid for with POB proceeds has increased to over $1 billion per year in each of the last two years. *ADPs from July 1, 2022 through September 30, 2022
ADP information was provided by the CalPERS Financial Office. POB issuance data was downloaded from the California Debt and Investment Advisory Commission at https://www.treasurer.ca.gov/cdiac/debt.asp. -34-
CalPERS 2022 Annual Review of Funding Levels and Risks

California Employers’ Pension Prefunding Trust Program
Many public employers set aside additional pension assets in a trust separate from pension fund. These trusts, known as “Section 115 Trusts” (after Internal Revenue Code Section 115), allow employers to prefund future required defined benefit pension system normal costs and unfunded accrued liability (UAL) payments. This also includes both lump sum annual UAL payments and voluntary Additional Discretionary Payments (ADP’s). Section 115 pension trust assets can be used by the employer at any time to reimburse the employer’s general fund from which they have made these pension contributions. Employers may also make pension contributions directly from a Section 115 pension trust.

The purposes of Section 115 pension trusts include the following:
• Save overall pension costs due to additional prefunding which generates investment income • Likely earn higher long-term returns than the State Treasurer’s Local Agency Investment Fund or a county treasurer’s office
• Invest with different time horizons and risk levels than the pension fund • Retain liquidity on assets dedicated to pension costs • Stabilize and subsidize future budgets
• Create a contingency reserve for difficult times ahead • Pay down pension liabilities in a predictable and prudent manner One of the most attractive of these Section 115 pension trust purposes from an employer’s point of view is the ability to build up a contingency reserve that can be used to satisfy CalPERS contribution requirements during years the employer’s budget is strained. This can be an effective way to deal with CalPERS contribution volatility due to fluctuating investment markets.

The unfunded pension liabilities and future pension contribution volatility summarized in the previous sections of this report do not reflect the fact that hundreds of public employers already have Section 115 pension trust funds. Because Section 115 pension trusts can be expensive to set up and administer, CalPERS launched the California Employers’ Pension Prefunding Trust (CEPPT) in 2019. The CEPPT was established by Senate Bill 1413 which provides public agencies additional low cost and not-for-profit investment vehicles to help manage pension costs. Participation in the CEPPT is voluntary and provides employers with the flexibility to determine the amount of their contributions, reimbursements, and overall funding strategy.

The CEPPT offers two broadly diversified portfolio options with low to moderate risk profiles that are expected to have a net rate of investment return of 3.5% and 4.5%, respectively. As of October 2022, a total of 77 employers have established CEPPT accounts with assets under management totaling approximately $90 million.
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CalPERS 2022 Annual Review of Funding Levels and Risks

Conclusion
Over the last few years various external factors have had material impacts on the experience of the Retirement System. While some of the impacts may have led to short-term improvements in the current funding levels of the system, other factors have worsened the funded position and pose additional threats to the system in the future.

Recent factors that were favorable to the funded status of the system were:
• Significant investment gains during the 2020-21 fiscal year • Higher than expected mortality likely due to the COVID pandemic Factors that were unfavorable to the current funding levels of the system and pose potential future threats are:
• Significant investment losses during the 2021-22 fiscal year • Financial strain on employers due in part to the COVID pandemic • High levels of inflation over the last 1-2 years which may persist • Potential ongoing effects of COVID
• Potential economic downturn in the near-term
• Reduced expectations of future investment returns
The combined impact of the above factors has the potential to worsen the funded status of the system and result in large increases to required contributions for employers and members. The ability of employers to continue making required contributions to the system is the area of greatest concern.

While certain external factors are outside of the control of the system, CalPERS and its participating agencies have responded to these risks in a number of positive ways such as:
• The recent adoption of new amortization policies that mitigate the risk of the system dropping to dangerously low funding levels
• The increased level of additional contributions made by CalPERS agencies • The use of a separate 115 trust by many CalPERS agencies for minimizing the risk of required contribution spikes and volatility
• The adoption of a new investment policy which maintains favorable investment return expectations and associated volatility
• Improvements in the processes of setting actuarial assumptions which are expected to lead to less volatile contributions rates in the future
• Improved modeling tools that allow CalPERS and its participating employers to forecast future required contributions and funded status under a variety of possible future scenarios In addition to the actions listed above, we believe the following items should receive a high level of focus going forward.
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CalPERS 2022 Annual Review of Funding Levels and Risks

• Continual focus on the acceptable level of investment risk versus the desire for higher investment returns including the possible impacts of the existing Funding Risk Mitigation Policy • Monitor the effectiveness of the current investment policy to ensure desired returns relative to the chosen level of risk
• Continue the focus on educating participating employers on the risks facing the system and providing tools that enhance their ability to manage these risks • Stakeholder outreach regarding employers' ability to make required contributions With the anticipated increases in required employer contributions, due primarily to the investment losses experienced during the 2021-22 fiscal year, combined with current economic difficulties caused by the pandemic, inflation, and turbulent investment markets, some employers will likely have difficulty making required CalPERS contributions over the next several years. In addition, near-term forecasts by investment and economic professionals suggest it may be difficult to achieve a 6.8% investment return in the nearterm. This potential for further increases to required employer contributions increases the risk that individual agencies may struggle to make required CalPERS contributions leading to potential contract terminations and possible benefit reductions. While financial necessity policies within the CalPERS amortization policy can be used in some cases to spread amortization payments over a longer period and hence reduce near-term contributions, these policies require minimum contributions that may still pose challenges for some agencies. In addition, these policies do not reduce costs but merely delay and increase them. CalPERS and its participating employers have taken many positive steps to manage the risks of the system. Continued focus on the risks described in this report, and opportunities to minimize and manage them, will be of utmost importance going forward.
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CalPERS 2022 Annual Review of Funding Levels and Risks

Appendix A – Public Employees’ Retirement
System (PERS) Summary Statistics
June 30, 2020 June 30, 2021
Number of Actives1861,976 844,905
Number of Transferred1167,375 166,686
Number of Separated1433,500 458,012
Number of Receiving1869,819 897,640
Payroll $58.6 billion $58.7 billion
Entry Age Accrued Liability $554.1 billion $587.3 billion Market Value of Assets $390.4 billion $476.2 billion
Unfunded Liability $163.7 billion $111.1 billion
Funded Status 70.5% 81.1%
Prior Year Benefit Payments $26.1 billion $27.7 billion Prior Year Employer Contributions $22.0 billion $20.0 billion Prior Year Employee Contributions $4.9 billion $4.8 billion 1 These counts are from the CalPERS actuarial valuation system, which may not match the statistics provided in CalPERS Annual Comprehensive Financial Report (ACFR). For example, the number of receiving displayed in this report is not the count of unique benefit recipients; rather, it is the count of data records in CalPERS actuarial valuations for benefits in pay status. Some individual retirees have multiple records in our data due to having worked at multiple CalPERS agencies. Numbers shown in the ACFR for retirees receiving benefits include individuals just once in the count even if they are receiving benefits from multiple CalPERS agencies.
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CalPERS 2022 Annual Review of Funding Levels and Risks

Appendix B – Results of June 30, 2021 Public
Agency Valuations for Safety Plans
Public Agency Funded Ratios for Safety Plans
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CalPERS 2022 Annual Review of Funding Levels and Risks

Public Agency Contribution Rates for Safety Plans
The following table displays the total employer contribution rates for public agency safety plans that contract with CalPERS for benefits. These contribution percentages reflect both the required normal cost contribution percentage and the required payment toward any unfunded liability (converted to a percent of payroll).
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CalPERS 2022 Annual Review of Funding Levels and Risks

The following table displays the actual and projected total employer contribution rates for public agency safety plans that contract with CalPERS for benefits. These contribution percentages reflect both the required normal cost contribution percentage and the required payment toward any unfunded liability (converted to a percent of payroll). FY 2027-28 rates are based on a projected payroll. For plans with a decreasing number of active members (and therefore decreasing payroll), these contribution percentages can become quite large when the required payment toward unfunded liability becomes a large percentage of the decreasing payroll. In addition, the projected contributions are based on experience through June 30, 2021. There will be additional investment, economic and demographic experience that will impact the projected rates before they become actual rates in the future. -41-
CalPERS 2022 Annual Review of Funding Levels and Risks

Appendix C – Results of June 30, 2021 Public
Agency Valuations for Miscellaneous Plans
Public Agency Funded Ratios for Miscellaneous Plans
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CalPERS 2022 Annual Review of Funding Levels and Risks

Public Agency Contribution Rates for Miscellaneous Plans The following table displays the total employer contribution rates for public agency miscellaneous plans that contract with CalPERS for benefits. These contribution percentages reflect both the required normal cost contribution percentage and the required payment toward any unfunded liability (converted to a percent of payroll).
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CalPERS 2022 Annual Review of Funding Levels and Risks

The following table displays the actual and projected total employer contribution rates for public agency miscellaneous plans that contract with CalPERS for benefits. These contribution percentages reflect both the required normal cost contribution percentage and the required payment toward any unfunded liability (converted to a percent of payroll). FY 2027-28 rates are based on a projected payroll. For plans with a decreasing number of active members (and therefore decreasing payroll), these contribution percentages can become quite large when the required payment toward unfunded liability becomes a large percentage of the decreasing payroll. In addition, the projected contributions are based on experience through June 30, 2021. There will be additional investment, economic and demographic experience that will impact the projected rates before they become actual rates in the future. -44-
CalPERS 2022 Annual Review of Funding Levels and Risks

Appendix D – Recent and Projected Employer
Contribution Rates
-45-
CalPERS 2022 Annual Review of Funding Levels and Risks

Appendix E – Asset and Liability Volatility
Ratio Charts
As discussed in the Impacts of Plan Maturity section, this appendix contains the Asset and Liability Ratio charts for the State Miscellaneous Plan, the School’s Pool and less typical public agency plans. -46-
CalPERS 2022 Annual Review of Funding Levels and Risks

-47-
CalPERS 2022 Annual Review of Funding Levels and Risks

-48-
2022 Annual Review of Funding Levels and Risks
November 2022
-49-

TOWN OF HILLSBOROUGH
2023 PENSION FUNDING UPDATE

CITY COUNCIL STUDY SESSION
MARCH 13, 2023
1 -50-
ATTACHMENT 2
Agenda
Discussion Item Only Introduction

1. Provide update on status of the Town’s pension plans

2. Summary and questions
2 -51-
Introduction
CalPERS’ goal is to improve
funded status.

Taking steps to improve funded
status by mitigating investment
and system risks. Extensive Asset
Liability Management review
every 4 years.

Examples: • Discount rate analysis
• Investment asset allocation
Town Actions
• Paid off portion of liability
(side fund)
• Created second pension
formula
• Hired new employees on the
PEPRA formula
• Partnered with employees to
pay a portion of employer
contribution
• Funded a Section 115 pension
trust
3 -52-
© 2023 GovInvest Inc.

Pension Update
Town of Hillsborough
March 13, 2023
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© 2023 GovInvest Inc.

Understanding Pension Funding
5 Pension Basics Changes Since the
Last Valuation
Impact of Changes
How is your agency
doing relative to other
agencies?
-54-
© 2023 GovInvest Inc.

Pension Basics
6 -55-
© 2023 GovInvest Inc.

City has Two Safety Benefit Structures
Safety PEPRA Safety
Hire Date On or before
12/31/12
On or after
1/1/13
Formula 3.0% @ 50 2.7% @ 57
Final
Compensation
Period
12 months 36 months
COLA 2% per year 2% per year
Employee
Contributions 9% of pay 13.75% of pay
(50% of Normal Cost)
7 -56-
© 2023 GovInvest Inc.

City has Three Miscellaneous Benefit Structures
Miscellaneous Miscellaneous
Tier 2
PEPRA
Miscellaneous
Hire Date On or before
7/1/12
Between 7/2/12
and 12/31/12
On or after
1/1/13
Formula 3.0% @ 60 2.0% @ 60 2% @ 62
Final Compensation Period 12 months 36 months 36 months COLA 2% per year 2% per year 2% per year
Employee Contributions 8% of pay 7% of pay

7.25% of pay
(50% of Normal
Cost)
8 -57-
© 2023 GovInvest Inc.

Projected Classic vs PEPRA Payroll
9 31.3%

53.2%

72.1%

84.2%

93.1%

97.9% 99.7%
0%
20%
40%
60%
80%
100%
120%
$-
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
20202021202220232024202520262027202820292030203120322033203420352036203720382039204020412042204320442045204620472048 Classic PEPRA % PEPRA
-58-
© 2023 GovInvest Inc.

Assumptions Set Future Cost & Funding Expectations
10 Economic
• Inflation
• Investment Return
• Salary Growth
Demographic
• Retirement
• Disability
• Death
• Termination
Major Driver of
Plan Cost
-59-
© 2023 GovInvest Inc.

How is Hillsborough doing
Relative to Other Agencies?
11 -60-
© 2023 GovInvest Inc.

Comparison Metrics
• Funded Percentage
• Plan assets divided by Plan liabilities
• Calculated as of June 30, 2021
• Total Contribution Percentage
• Required Contribution divided by Projected Pensionable Compensation 12 -61-
© 2023 GovInvest Inc.

Comparison Group
• City results are being compared against the results for all CalPERS agencies in the Risk Pool
• Comparisons are made to similar classifications:
• Classic Miscellaneous Plan against all Classic Miscellaneous Plans • PEPRA Miscellaneous Plan against all PEPRA Miscellaneous Plans • Classic Safety Plan against all Classic Safety Plans
• PEPRA Safety Plan against all PEPRA Safety Plans
13 -62-
© 2023 GovInvest Inc.

Classic Miscellaneous Plan
– Funded Percentage as of June 30, 2021 (80.8%)
14 Hillsborough
Hillsborough
Tier 2
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© 2023 GovInvest Inc.

Classic Miscellaneous Plan
– Total Contribution Percentage as of June 30, 2021 (68.5%) 15 Hillsborough
Hillsborough
Tier 2
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© 2023 GovInvest Inc.

Hillsborough
PEPRA Miscellaneous Plan
– Funded Percentage as of June 30, 2021 (104.6%)
16 -65-
© 2023 GovInvest Inc.

PEPRA Miscellaneous Plan
– Total Contribution Percentage as of June 30, 2021 (8.7%) 17 Hillsborough
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© 2023 GovInvest Inc.

Safety Plan
– Funded Percentage as of June 30, 2021 (79.6%)
18 Hillsborough
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© 2023 GovInvest Inc.

Safety Plan
– Total Contribution Percentage as of June 30, 2021 (84.2%) 19 Hillsborough
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© 2023 GovInvest Inc.

PEPRA Safety Plan
– Funded Percentage as of June 30, 2021 (106.7%)
20 Hillsborough
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© 2023 GovInvest Inc.

PEPRA Safety Plan
– Total Contribution Percentage as of June 30, 2021 (19.1%) 21 Hillsborough
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© 2023 GovInvest Inc.

Changes Since Prior
Valuation
22 -71-
© 2023 GovInvest Inc.

CalPERS Investment Return:

21.3% in 2020/21
-6.1% in 2021/22
Strong return in 2020/21 followed by weak return in 21/22 23 -72-
© 2023 GovInvest Inc.

CalPERS Actual Investment Returns versus
Assumed Investment Return
24 -3.1%

35.4%

24.6%

13.8%

3.9%

15.7%

9.7%

6.5%

12.5%

14.5%

2.0%

16.3%

15.3%

20.1%

19.5%

12.5%

10.5%
-7.2% -6.1%

3.7%

16.6%

12.3%

11.8%

19.1%
-5.1%
-24.0%

13.3%

21.7%

0.1%

13.2%

18.4%

2.4%

0.6%

11.2%

8.6%

6.7%

4.7%

21.3%
-6.1%
-30.0%
-25.0%
-20.0%
-15.0%
-10.0%
-5.0%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%
198419851986198719881989199019911992199319941995199619971998199920002001200220032004200520062007200820092010201120122013201420152016201720182019202020212022 Plan Year Ending June 30
Series1 Series2 5 per. Mov. Avg. (Series1)
Dot Com Crash
Great Recession
Discount Rate = Assumed Investment Return Rate
-73-
© 2023 GovInvest Inc.

Less Money from Investment Return means
More Money Required from Contributions
25 Contributions
-74-
© 2023 GovInvest Inc.

What is the Impact of those
Changes?
26 -75-
© 2023 GovInvest Inc.

Funded Status Comparison
27 -76-
© 2023 GovInvest Inc.

Funded Status
28 -77-
© 2023 GovInvest Inc.

Total Required Employer Contributions
29 -78-
© 2023 GovInvest Inc.

Stabilizing Cost Using a
Section 115 Pension Trust
30 -79-
© 2023 GovInvest Inc.

Hillsborough has Implemented a
Section 115 Pension Trust
• Administered by Keenan
• Approximately $5.0 million as of November 30, 2022
31 -80-
© 2023 GovInvest Inc.

Contingency Reserve Account 115 Trust
Fixed income investing only Fixed Income or diversified investing available
Investments not tailored for long term use Can be tailored for short- or long-term use Revocable Irrevocable (for non-pension expenses)
Can be accessed for other uses Dedicated solely for pension costs Unprotected from creditors Exclusive benefit/protected from creditors Reserves Are the Cornerstone of
Financial Flexibility
17 -81-
© 2023 GovInvest Inc.

Potential Uses of a Section 115 Trust
33 • Rate Stabilization - Trust assets can be theoretically accessed to pay CalPERS at anytime to reduce volatility and offset unexpected rate increases.
• Diversification - Provides access to a broader universe of investments that the City can undertake on its own, including stocks and longer-term bonds.
• Control - Allows the City to maintain control and investment oversight of assets.
• Rainy Day Fund - Emergency source of funds when Employer revenues are impaired based on economic or other conditions. -82-
© 2023 GovInvest Inc.

Baseline Projection
34 -83-
© 2023 GovInvest Inc.

Contributions primarily driven by Investment Return
• CalPERS investment had a return of -7.5% for the year ended June 30 2022.
• For our baseline calculation, we assumed that CalPERS would return -7.5% for the 2021/22 Plan Year, and that future returns would match their assumed investment return rate of 6.8% per year.
35 -84-
© 2023 GovInvest Inc.
115 Trust Usage
• For this preliminary analysis, we will determine how much money would need to be in the Section 115 Trust as of June 30, 2022 in order to use it to pay for all future contributions above the level projected for the 2022/23 Fiscal Year, increasing by 2% per year. • For the purpose of this analysis, we will assume that the Section 115 Trust earns 4.5% investment return each year, as projected by CalPERS.
36 -85-
© 2023 GovInvest Inc.

Increase in Contribution over 2022/23 – Baseline
37 -86-
© 2023 GovInvest Inc.
115 Trust Usage
• Contributions in Excess of 2022/23 Plan Year = $5.9 Million • Assets required as of June 30, 2022 to make those payments = $4.2 Million
38 -87-
© 2023 GovInvest Inc.

Questions?
39 -88-
Conclusion and Questions
Summary:

1. CalPERS and Town are taking steps to manage the pension liability.

2. Based on a set of assumptions, the Town’s Section 115 pension trust is currently sufficient to weather some of the budget impact of increasing required contributions projected for the next 10 years. No additional funding recommended for FY 2023-24 budget.

3. Pre-funding is an additional amount that would accelerate paying down the liability.

Requires use of excess revenues or reserves. Periodic updates to City Council help inform any potential pre-funding discussions for the upcoming budget year. No prefunding actions recommended for FY 2023-24.

Questions and Discussion
40 -89-

1 Lisa Natusch
Subject: FW: Meeting
From: John Lockton
Date: December 16, 2022 at 4:51:48 PM PST
To: Christine Krolik <[email protected]>, Al Royse <[email protected]> Cc: David Marquardt , Kirk & Katie Syme
<[email protected]>
Subject: Fwd: Meeting
Christine and Al,
Thank you again for the meeting and the open discussion. And we applaud your decision to introduce a knowledgeable third party to the discussion. As promised, I will be separately emailing the pages from the Manual that deal with uniform (flat) rates.

Some follow on comments:

We moved off too quickly from the central point we are making.

Hillsborough is basing its rates on an accounting methodology that no court has said is valid and which the courts we are familiar with have said is invalid. We frankly don’t understand why Hillsborough is willing to put its neck and its coffers out to take that risk when virtual no other jurisdiction in California has been willing to take that risk, and those that have, and been sued, have lost.

Al, you mentioned two pending lawsuits dealing with cost of service studies like the one in Hillsborough. Our attorney is unfamiliar with them despite being much involved in prop 218 litigation. Please furnish us more information and we will look at them. The two recent prop 218 cases we are familiar with are KCSTVI, LLC v. Florin County Water District where Florin County lost at the Court of Appeals level, and second, the class action case in Santa Clara County where eighty different water districts, yes eighty, are being sued simultaneously for violating prop 218. I believe Hillsborough would have been a defendant in this second suit had Hillsborough not already been involved in a 218 suit. As we said, Hillsborough is a sitting duck with the highest tiering in California. Class action lawyers are pursuing prop 218 litigation all over California. Check it out. And even if our group doesn't proceed, a class action attorney will have no trouble finding at least one resident to bring suit against Hillsborough, one resident being all that is needed in class action litigation. I can assure you there are about as many people in Hillsborough very angry about their tier IV rates as there are people you mentioned, Al, angry about the fixed rates.
-91-

CLOSED SESSION ITEM C

ONE OF TWO POTENTIAL CASES
2 Back to the risk Hillsborough is taking in basing water rates on non court approved accounting methodology, when I was on the FAC the goal was always to protect the Town by being as conservative as possible in everything, particularly things financial. What the Town has done in water rates is a vast departure from that, venturing into unproven accounting territory and taking every resident of Hillsborough with it.

This needs to stop now.

Perhaps all that we should have done at the meeting was to point out the risk and said nothing further, let the Town decide on its own whether it wants to take a costly lawsuit to be able to be the first jurisdiction in California to get court approval for the new accounting methodology. All the follow on discussion of the Manual and Cost of Service study was helpful. But in a way irrelevant. Hillsborough will be sued if it does not get off its tiered rates and no amount of discussion will change that.

Having said that I will nonetheless move to some of our discussion. 1) Much of our talk was about whether capacity demands justify tier III and IV rates. However, in large part our lawsuit is going to be focussed on tier I. As the Geo Law letter pointed out it is as illegal to subsidize rates, plug them at below actual cost and spread cost to higher tiers, as to overcharge rates. Tier I has to be justified under prop 218 just like tiers III and IV. And I think you will agree it plainly can not be. We now buy water at $4.10 per unit with this price headed up. We will be charging residents $6.49. As you pointed out, Christine, Hillsborough has a very expensive water system. This very expensive water system could not possibly provide water to anyone at a cost of only $2 over purchase price of water from San Francisco. No court is going to buy this. Look at pricing of water in other municipalities that buy water from San francisco. You will see nobody offers water at anything like as low as the $6 price in Hillsborough and they have less costly water systems.

And to make matters worse for the Town’s court position regarding tier I, in establishing tier I the consultant departed substantially from the Manual. The Manual sets tier I at average annual water use, which for us would have meant a tier I rate of over $9. The consultant instead set tier I not at average water use as required by the Manual but lowest water use in the year, the intent being to have a very low rate for tier I and to shift the cost of subsidizing this very low rate to the higher tiers.

So when this gets to court the Town will not be able to use the Manual to justify its tier I rates.

To cover cost, tier I rates must be set at at least $9 per unit. To make this bitter pill easier to swallow perhaps you could significantly pull back on the fixed rates people are complaining about at same time as increasing the per unit rates to $9.
-92-
3 2) I am not going to go back over the discussion of whether tier IV water use in winter causes actual cost to Town of over $18.00 per unit. (The Capistrano case does require “actual" costs on this issue, not costs imputed from the cost of tier IV use in peak periods.)  However, there is clear confusion on something else, what you, Al, called excess or extraordinary capacity demand costs. I may not have your terminology correct but I think what you were referring to was the excess cost of infrastructure to meet excess demand that can come when something bad happens like a fire or earthquake. Hillsborough has a right to be proud of the extensive and expensive back‐up it has provided in all parts of the system as a matter of disaster preparedness. The reservoir you mentioned, Christine, is of course part of this. Who should pay the cost of this reservoir? Who should pay the cost of the excess capacity needed for the extraordinary/excess demand that might occur in fire or earthquake?
Consider what happens if Hillsborough does have a forest fire. Two 4000 square foot houses are on a street. One resident has lawns and a pool and has been paying at tier IV rates during the summer. The other resident normally pays at tier I rates. The extra water capacity in the system because of the extra capacity in Christine's reservoir saves both houses. Should the resident in the high water bill house pay three times as much toward the reservoir cost as a penalty for having higher water bills? That’s what the Cost of Service study does. The cost of the well engineered belt and suspenders system Hillsborough has put in to meet disasters is being disproportionally charged to larger users simply because of their larger water use even though every resident is being equally protected, and even though the larger water users day in day out water demands in no way relate to water demands in a disaster.

The larger user is being penalized for being a larger user not just in paying higher rates but in being charged a disproportionate part of the cost of disaster preparedness.

So, Al, in considering the cost to meet the extraordinary/excess demands you mention please break it apart from consideration of the question of costs being driven by large users' summer use. Disaster preparedness costs are to be spread to every resident equally as they benefit equally the small and large water user, not charged to the highest tiers.
3) Christine, we applaud your emphasis on fairness. We want fairness, too, and feel a flat/uniform rate is fair to everyone as pointed out in the pages of the Manual I will be sending you. At one point you said it is all a matter of arithmetic. Large users are using more of the system capacity so they should pay more. I may not have what you said exactly but something like that. The short answer is prop 218 relates to costs rather than determination of large and small user capacity use and you have to examine the capacity use and see if it generates cost. Accordingly we have a cost of service study, not a capacity utilization study. Fortunately -93-
4 or unfortunately the law does not allow us to apply simple arithmetic to capacity use to get to the necessary legal justification for prop 218 rates.

The long answer is that the costs in the system today are not being caused by capacity demands except for the emergency preparedness costs discussed above. It was not always the case. In the 70s and earlier the Town was in a development mode. (Don’t know the date of the last development, probably Sky Farm, but think it was early 70s). At that time infrastructure had to be added to increase system capacity. In fact capacity was overbuilt anticipating further population growth that did not occur, one of the reasons for the present tremendous excess capacity in the system. Anyway, tiered rates were put in in the 70s, and through those tiered rates larger users of water paid a disproportionate amount of the payoff of the cost of the capacity increasing infrastructure, which you would argue they should have because of their greater water demand. All that capacity increasing infrastructure was depreciated a long time ago. An all infrastructure adds since have been to maintain and upgrade the system or for emergency preparedness, nothing to expand the capacity of the system. So when you do the allocation you propose based on relative capacity demands of large and small users on the system you can’t find any costs being caused by large user demands as in the 70s.. With all the excess capacity large users are being served without any increase in costs to the system.

And prop 218 does not allow us to charge large users more unless their use causes “actual" extra costs.

Final point. I believe to pursue your idea of arithmetically determined capacity use based rates would probably require a new cost of service study.
4) Frankly, we feel the Town has been defrauded by its consultant.

When the Town had to consider new rates in the winter of 2016/2017, the earlier rates coming to an end, someone decided you wanted to continue with tiered rates despite the danger posed by the Capistrano case. So the consultant was not asked to consider the best rate approach for the Town (which with a Town with declining water demand would have been a uniform/flat rate.) Instead he was asked to justify the tiered rates of the Town, already the most tiered in California. For money consultants do what they are asked. This consultant took an accounting approach he admits in the Cost of Service study wasn’t designed to determine costs for tiered rates and created a piece of gobbledegook to meet the objective. I can show you that the Study was done to justify the tiers. The tiers were in general decided and then the consultant found a way with a lot of slide of hand to justify those tiers. The evidence is the consultant’s many departures from the Manual where necessary to justify the high tiering. So the Town is relying on an an unproven accounting methodology which in the Study has been rigged to meet a desired outcome of extreme tiering. -94-
5 So where are we? The most similar lawsuit to the lawsuit that will be brought against Hillsborough, the Glendale case, had the Town losing and our attorney is the successful attorney in that case. Next, the Town is clearly violating prop 218 in subsidizing its tier I $6.49 rate as well as in other ways. Next, the experimental accounting methodology being used by the Town has never been accepted by the courts and in fact has been held invalid. Next, the Manual on which the Cost of Service study is based does not cover costing of tiers of service and all the Town has behind its Cost of Service study is the creative accounting of the consultant. If I was still on the FAC I would be advising the Council to get off Cost of Service study based rates as fast as humanly possible.

We hope we can meet very soon with the third party. I will be here the first two weeks of January. We need to get this settled one way or the other very quickly. I say not as a threat but as a fact that the plaintiffs are not going to wait until anything like the June introduction date of the new rates, and once again say we will sue unless there is a move to flat/uniform rates.
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-103-

CLOSED SESSION ITEM C

SECOND OF TWO POTENTIAL CASES
Legal Threat Document for Justification
I am memorializing my conversation with an attorney, who called me regarding a resident located at 100 Stonehedge Road, Hillsborough and his discussions with her. The attorney wanted to open discussions regarding claims that may exist on behalf of the resident due to the Town’s issuance of a permit for development of neighboring property located at 118 Baywood Avenue, Hillsborough and damages she may have incurred resulting therefrom. The attorney indicated that he would like to settle this matter before a formal lawsuit is filed and would like the opportunity to discuss in a mediation type format for now.

Al Royse
Councilmember
-104-

TOWN OF HILLSBOROUGH
San Mateo County
Christine Krolik, Mayor 1600 Floribunda Avenue
Sophie Cole, Vice Mayor Hillsborough, CA 94010
Marie Chuang, Councilmember www.hillsborough.net
Leslie Marden Ragsdale, Councilmember Phone 650-375-7400 Alvin L. Royse, Councilmember

UNAPPROVED MINUTES
MONDAY, FEBRUARY 27, 2023
6:00 P.M. CITY COUNCIL MEETING
Hillsborough Town Hall and Zoom Video Conference
This City Council meeting was conducted pursuant to Government Code Section 54953(e) (and without compliance with section 54953(b)(3)) related to conducting public meetings during the COVID-19 pandemic. The City Council, staff and members of the public participated in the meeting virtually via Zoom Video Conference or in person at Town Hall.

I. CALL TO ORDER
Mayor Krolik called the meeting to order at 6:00 p.m.

II. ROLL CALL

Present: Chuang, Ragsdale, Royse, Cole, Krolik
III. PLEDGE OF ALLEGIANCE
Mayor Krolik led the Pledge of Allegiance.

IV. ANNOUNCEMENT OF CONFLICT OF INTEREST
Vice Mayor Cole disclosed that she received emails and texts and had conversations with residents regarding the status of the Housing Element adoption. Mayor Krolik noted that she and Vice Mayor Cole have conflicts of interest with regard to specific sites and stated that the City Attorney would prompt them if those sites should come up in the discussion.

V. OLD BUSINESS

1. REVIEW REVISIONS TO DRAFT HOUSING ELEMENT PER CITY COUNCIL DIRECTION ON JANUARY 30, 2023 AND PROVIDE DIRECTION TO STAFF ON

SUBMITTAL TO THE CALIFORNIA DEPARTMENT OF HOUSING AND COMMUNITY

DEVELOPMENT (HCD) AND ISSUANCE OF A REQUEST FOR PROPOSALS (RFP)

FOR HIRING A CONSULTANT TO UNDERTAKE THE CALIFORNIA ENVIRONMENTAL

QUALITY ACT (CEQA) WORK REQUIRED FOR THE TOWN'S HOUSING ELEMENT UPDATE
Planning Manager Liz Ruess provided the staff report. Attorney Barbara Kautz, Goldfarb & Lipman LLP, City Manager Ann Ritzma and City Attorney Christopher Diaz provided additional information.

Mayor Krolik opened public comment at 6:19 p.m.

Gib Papazian, 325 Pepper, spoke regarding the hiring of the CEQA consultant and requested the City Council strongly consider putting together a citizens committee of stakeholders who understand the community and individuals with special needs.

Jeff Ford, Fairway Circle, inquired about the implications of the builder’s remedy and selfcertification.

Larry Friedberg provided comments regarding selection of the consultants and requested that the selection criteria for the consultants be made clear and that input be solicited from the community. Friedberg requested review of the process that went into hiring Houseal Lavigne following submittal of the Housing Element.

Mayor Krolik closed public comment at 6:26 p.m.
-105-
Unapproved Minutes – Hillsborough City Council
Monday, February 27, 2023

Mayor Krolik re-opened public comment at 6:31 p.m.

Elizabeth Jeffords, Fairway Circle, inquired about the timing of the CEQA analysis for the Town Hall site.

Mayor Krolik closed public comment at 6:32 p.m.

Following City Council discussion, Planning Manager Ruess confirmed that the priority for Action 3.4 (h) on page 136 would be updated from “low” to “high.” Following discussion, without objection, the City Council directed staff to move forward with the draft Housing Element with the typographical edits received and edit to Action 3.4 (h) on page 136 to revise the priority from “low” to “high;” submit the Housing Element to the State Department of Housing and Community Development (HCD) with a transmittal letter to be prepared by staff and the City Council Subcommittee including a request for a meeting with HCD; and issue a Request for Proposals for a CEQA consultant with selection of the consultant to be considered by staff in consultation with the City Council Subcommittee and some members of the Housing Element Advisory Committee who have particular expertise in this area.

Planning Manager Ruess provided a summary of next steps and stated that per State law the Town will post the revised draft Housing Element on the Town’s website for at least seven days prior to submitting the revised draft to HCD, and any public comment received during that timeframe would be included in the submittal.

VI. ADJOURNMENT
Mayor Krolik adjourned the meeting at 7:10 p.m.
-106-

TOWN OF HILLSBOROUGH
San Mateo County
1600 Floribunda Avenue
Hillsborough, CA 94010
1 CONSENT CALENDAR

CITY COUNCIL MEETING
MARCH 13, 2023

AGENDA STAFF REPORT
ITEM SUBJECT: MONTHLY CLAIMS: FEBRUARY 1 THROUGH FEBRUARY 28, 2023 PURSUANT TO CEQA GUIDELINE 15378
SUMMARY: The monthly claims for the month of February 2023 in the amount of $4,152,168.81 are submitted for approval.

FISCAL IMPACT: Claims have been expended pursuant to the approved budget.

ENVIRONMENTAL ISSUES: The proposed action is exempt from environmental review pursuant to the California Environmental Quality Act (CEQA) Guidelines sections 15378(b)(2) and 15378(b)(5) as ongoing administrative or organizational activities that will not result in direct or indirect physical changes in the environment.

ATTACHMENTS: Monthly Claims Listing
PREPARED BY: Richard Santiago, Assistant Finance Director RECOMMENDATION: Approve the monthly claims for February 2023 as submitted. -107-

TOWN OF HILLSBOROUGH

REPORT OF GOODS & SERVICES PURCHASED
DURING THE MONTH OF FEBRUARY 2023
PREPARED BY:

Alan Singh
DocuSign Envelope ID: 5F533C69-6AFA-452C-B3CC-A07BCD18C335 -108-

TOWN OF HILLSBOROUGH

SUMMARY OF PURCHASES
DURING THE MONTH OF FEBRUARY 2023
$1,623,369.40
988,972.00
171,603.00
526,326.22
654,879.00
187,019.19

GOODS & SERVICES PURCHASED

NET SALARIES & TAXES PAID

HEALTH BENEFIT PREMIUMS

DEBT SERVICE

CCFD FUNDING

SAN FRANCISCO WATER PAYMENTS
TOTAL COST OF GOODS & SERVICES TO BE APPROVED $4,152,168.81

FINANCE DIRECTOR DATE

CITY MANAGER DATE
DocuSign Envelope ID: 5F533C69-6AFA-452C-B3CC-A07BCD18C335 3/7/2023
3/7/2023
-109-

COMPARATIVE SUMMARY
For the Month of February 2023
Feb-23 Feb-22 Feb-21
1,017,699.09 1,201,313.87 2,125,205.48
605,670.31 794,583.09 797,436.17
988,972.00 940,080.05 887,899.84
171,603.00 156,053.35 160,057.92
526,326.22 23,469.38 23,725.93
654,879.00 0.00 1,321,380.00
Goods & Services Purchased:

Operations
Capital
Net Salaries & Taxes Paid
Health Benefit Premiums
Debt Service
CCFD Funding
San Francisco Water Payments 187,019.19 229,354.62 249,563.20 Total $4,152,168.81 $3,344,854.36 $5,565,268.54
NOTES:

Operations -
Capital -
Debt Service
Mateo Clean Water project, as well as a higher bond variable rate of interest on the Town Certificates of Participation.

CCFD -
March 2022.

Water -
to usage.

FY 22/23 contribution is based on budget/contract. February 2022 payment was paid in There was an SFPUC wholesale water rate increase on July 1, 2022 to $4.75 (from $4.10, a 15.9 % increase). The decrease from the prior year is primarily attributable FY 22/23 spending is consistent with FY 21/22 except for timing of various reoccurring Capital project spending in February 2023 is primarily for the Sandra Hayne Storm Drain project, Sewer Priority Basins I & I Rehab, and the Water Main Replacement.

February debt service spending is higher than prior year due to payment for the San payments.

DocuSign Envelope ID: 5F533C69-6AFA-452C-B3CC-A07BCD18C335 -110-

TOWN OF HILLSBOROUGH
PURCHASES MADE DURING FEBRUARY 2023
CK # VENDOR DESCRIPTION AMOUNT
2503 MATTHEW GALIT REIMB -MILEAGE ICI CORE CLASS 11/28/22-12/9/22 PD 291.50 2504 DOMINIC JAVELLANA REIMB - TRAVEL EXP EICT CLASS 1/23-25/23 PD 30.00 2505 MELISSA COLLA REIMB - TRAVEL EXP EICT CLASS 1/23-25/23 PD 63.27 2506 VINCENT CHU REIMB - TRAVEL EXP FTO CLASS 1/23-27/23 PD 281.98 2507 SAN MATEO COUNTY SHERIFF'S OFFICE TRAIN - ECIT TUITION 1/23-25/23 STAFF PD 275.00 2508 SAN MATEO COUNTY SHERIFF'S OFFICE TRAIN - ECIT TUITION 1/23-25/23 STAFF PD 275.00 2509 VINCENT CHU REIMB - TRAVEL EXP STREET RACE CLASS 1/30/23 PD 74.49 2510 DAVE YOUNG REIMB - TRAVEL EXP DRIVE TRAIN CLASS 1/23-27/23 PD 61.32 11224 ADELANTE ALMA, INC MANAGEMENT WORKSHOP 1/11/23 PW 2,500.00 11225 ADP, LLC JAN '22 MASTERTAX SOFTWARE SUPPORT FN 76.08 11226 AGUILAR & SONS REPAIR - DRIVEWAY REMILLARD PW 3,725.00 11227 AIXTEK JAN '23 IT MANAGEMENT SERVICE/MICROSOFT LICENSE IT 27,612.80 11228 ALEXANDER & ASSOCIATES, INC. PROFESSIONAL SERVICES LAND SURVEY PW 700.00 11229 ALHAMBRA & SIERRA SPRINGS DEC '22 WATER FN 9.56
11230 AMAZON WEB SERVICES, INC DEC '22 - BACKUP STORAGE IT 3,336.75 11231 ARAMARK SERVICES, INC SUPPLIES - WATER JAN '22 BP 174.65 11232 BAY AREA GEOTECHNICAL GROUP STORM DRAIN A-2 IMPROVE FIELD DENSITY PRJ PW 895.00 11233 BEST BEST & KRIEGER LLP FEE - DEC '22 LEGAL SERVICES 43,281.10 11234 BETTER SOURCE LIQUIDATORS FURNITURE - WORK STATIONS FN 5,567.96 11235 BIG STATE INDUSTRIAL SUPPLY, INC SUPPLIES - SPRAY PAINT PW 2,832.64 11236 BLUE 360 MEDIA, LLC CA VEHICLE CODE HANDBOOK PD 188.96 11237 BOSCO OIL COMPANY GAS/DIESEL PW/PD 12,508.22
11238 BRIGHT PAINTING MAINT - PAINT CABINETS STATION 32 PW 7,350.00 11239 BROWN AND CALDWELL CONSULT - WATER EMERGENCY RESPONSE PLAN PW 9,170.50 11240 BURNETT LANDSCAPE DEVELOPMENT INC INSTALL - PLANTS/BARK HBF 5,471.71 11241 CATALYST ENVIRONMENTAL, INC HAZARDOUS WASTE REMOVAL PW 3,488.00 11242 CENTRAL COUNTY FIRE DEPARTMENT REMIT - Q2 FY 22/23 FIRE REVIEW FEE FN 6,968.50 11243 CITY OF BURLINGAME JAN'23 LIBRARY SERVICES FN 62,333.00 11244 CITY OF SAN MATEO Q3 22-23 CLEAN WATER PRJ PW/FEB '23 LIBRARY CM 508,939.86 11245 CITY OF SOUTH SAN FRANCISCO TRAINING - RANGE USE 2017-2022 PD 4,800.00 11246 CIVICPLUS WEBSITE ANNUAL MAINTENANCE '23 IT 15,702.00 11247 CLARK PEST CONTROL PEST CONTROL ALL DEPARTMENTS PW 1,000.00 11248 CLEANSWEEP SERVICES, INC. STREET SWEEPING SERVICE PW 10,614.00 11249 COUNTY OF SAN MATEO INFO SERVICES DEC'22 MICROWAVE SERVICES PD 164.51 11250 CONSOLIDATED CM, INC DARRELL TANK REPLACE PRJ MANAGE/INSPECT PW 33,914.00 11251 CORE & MAIN LP SUPPLIES - METER LIDS PW 2,664.93
11252 CSG CONSULTANTS, INC. CIP ADM SEWER 7/1/22-6/30/23 & VARIOUS PRJ PW 129,763.69 11253 CUSTOM TOPS INC EQUIP - BEDLINER/FLOOR COVER TRUCK #144 PW 1,182.16 11254 DAILY JOURNAL CORPORATION LEGAL NOTICE - POST ADOPTION ORD. 788 1/19/23 865.89 11255 EPS, INC. REPAIR - TOILET FIRE STATION #32 PW 494.00 11256 FEDERAL EXPRESS SHIP - RADIO DETECTION EQUIP PW/CHECK FN 642.79 11257 FLOWATER EQUIP - JAN '22/NOV '22 WATER REFILL STATION PW 256.56 11258 FREYER & LAURETA, INC HIGH LINE WATER PRJ DESIGN PW 14,680.69 11259 GO NATIVE, INC REPAIRS - WATER DAMAGE TARTAN TRAIL PW 6,180.00 11260 HF&H CONSULTANTS, LLC DEC'22 WATER SENSITIVITY ANALYSIS FN 1,050.00 11261 HOUSEAL LAVIGNE ASSOCIATES,LLC GENERAL PLAN/HOUSING ELEMENT DEC '22 BP 1,112.50 11262 INDUSTRIAL CHEM LABS & SERVICE SUPPLIES - CONCRETE CLEANER PW 648.94 11263 INTERSTATE BATTERY SYSTEM OF SF PARTS - BATTERIES TRUCK #303/#321 PW 659.58 11264 INTERSTATE TRAFFIC CONTROL PRODUCT PARTS - BARRICADES FOR STORMS PW 9,205.00 11265 INTERWEST CONSULTING GROUP DEC '22 BUILDING INSPECTOR SERVICES BP 2,000.00 11266 JESSIE AIZENSTAT FORWARD LATERAL PROGRAM PW 12,000.00 11267 KNOWBE4, INC SOFTWARE - CYBERSECURITY TRAINING RENEWAL IT 2,106.00 11268 KRONOS SAASHR, INC. DEC'22 PAYROLL PROCESSING FN 1,954.61 11269 LANDTEK LANDSCAPE INC DEC'22 LANDSCAPE MAINT VARIOUS SITES HBF 2,516.00 11270 MARK D HUDAK LEGAL SERVICES - DEC 2022 CM 5,985.00 11271 CALIFORNIA METRO MOBILE COMMUNICATEEQUIP - RADIO PD 1,791.37 DocuSign Envelope ID: 5F533C69-6AFA-452C-B3CC-A07BCD18C335 -111-

TOWN OF HILLSBOROUGH
PURCHASES MADE DURING FEBRUARY 2023
11272 METROPOLITAN PLANNING GROUP INC CONSULT - DEC '22 PLANNER SERVICES BP 4,495.00 11273 NAPA AUTO PARTS - BURLINGAME SUPPLIES - BLUE DEFROSTER & VARIOUS ITEMS PW 925.61 11274 CALIFORNIA'S GUNITE & POOL PLASTERING REFUND - PERMIT FEE OVERPAY BP 339.23 11275 ELIZABETH NAIMI YAZDI REFUND - BUILD DEPOSIT BP 6,300.00 11276 JUAN C JAEN & ANITA GALEANA REFUND - PARTIAL GRADE DEPOSIT BP 63,000.00 11277 THE TOBONI GROUP REFUND - LANDSCAPE DEPOSIT BP 5,159.00 11278 THE TOBONI GROUP REFUND - BUILD DEPOSIT BP 12,383.00 11279 ROM FLAMENCO REIMB - BOOT REIMBURSEMENT PW 246.08 11280 SANGITA DUTT REIMB - FINGERPRINT SERVICE FEE HR 79.00 11281 CALIFORNIA WATER ENVIRONMENT ASSOC.FEE - CWEA MEMBERSHIP STAFF PW 202.00 11282 SWRCB - DWOCP FEE - D4 RENEWAL STAFF PW 205.00
11283 PAKPOUR CONSULTING GROUP,INC 19/20 WATER MAIN REPLACE PRJ PW 5,402.00 11284 PENINSULA TRUCK REPAIR INC MAINT - MULTIPLE VEHICLES PW 35,526.26 11285 PG & E 12/15/22-1/13/23 MULTIPLE INVOICES 2,377.01 11286 PLAN JPA DEC '22 DEDUCTIBLE CLAIMS CM 822.50
11287 PRIORITY 1 VEHICLE MAINT - NEW KEY FOB FORD EXPLORER PD 351.60 11288 RED WING SHOE STORE BOOTS - STAFF PW 300.00
11289 RENNE PUBLIC LAW GROUP LLP LEGAL RETAINER DEC '22 CM 4,000.00 11290 ROBERT HALF INTERNATIONAL INC TEMP SERVICE - MULTIPLE INVOICES PW/FN 14,429.52 11291 SAN MATEO LUMBER CO., INC SUPPLIES - VARIOUS ITEMS CORP YARD SHED PW 182.12 11292 SHARP ELECTRONICS CORPORATION SEPT '22/NOV '22 COPIER CHARGES 3,471.21 11293 SIEMENS INDUSTRY, INC FIRE SERVICE AGREEMENT - TOWN HALL/POLICE PW 6,689.00 11294 STAPLES ADVANTAGE OFFICE SUPPLIES - ALL DEPARTMENTS 2,129.65 11295 STATE WATER RESOURCES CONTROL BRD ANNUAL WASTE DISCHARGE FEES 7/1/22-6/30/23 3,453.00 11296 TELECOMMUNICATION ENGINEERING ASSOCDEC'22 COM CENTER/BASE PD 2,345.50 11297 THIRKETTLE CORPORATION PARTS - MXU RADIO PW 4,012.83 11298 TIMBERLINE TREE SERVICE, INC. MAINT - TREE REMOVAL MULTIPLE SITES PW 7,855.00 11299 TRAFFIC LOGIX CORPORATION EQUIP - SIGN BOARD TRAILER PW 18,115.16 11300 TYLER TECHNOLOGIES, INC. MAINT - FUNDBALANCE 3/1/23-2/29/24 & ERP UB TRAIN FN 22,404.66 11301 U-ROCK UTILITY EQUIPMENT INC SUPPLIES - VARIOUS ITEMS PW 1,484.29 11302 UTILITY TELECOM, INC. JAN '23 CALNET NONCGEN LINE IT 419.39 11303 VEEAM PAYMENT SOLUTIONS A SOFTWARE - NETWORK BACKUP 3 YR RENEWAL IT 4,402.20 11304 VIKING SHRED LLC JAN'22 DESTRUCTION SERVICES PD 82.99 11305 WESLEY CONSTRUCTION, INC INSPECT - KITCHEN WATER DAMAGE LITTLE HOUSE PW 800.00 11306 WILSEY HAM PARROT SEWER MAIN REPLACE PRJ DESIGN PW 8,300.75 11308 AT & T FEE - AT&T CABLE RELOCATION DARRELL PW 22,350.94 11309 PLAN JPA SEP '22 DEDUCTIBLE CLAIMS CM 1,935.00
11310 72 HOUR LLC PURCHASE - FORD RANGER PW 45,162.08
11311 A & D AUTOMATIC GATE CO. REPAIR - GATE STATION 33 PW 7,383.11 11312 ACTION TOWING AND ROAD SERVICE LOCK OUT SERVICE - FORD EXPLORER PD 115.50 11313 AFLAC JAN '23/FEB '23 INSURANCE PREMIUM HR 2,925.80 11314 AGUILAR & SONS REPAIR - DRIVEWAY FLORIBUNDA/PAVERS HAYNE PW 11,778.00 11315 AIR-TECH ENVIRONMENTAL, INC MAINT - BUILDING MOLD/ASBESTOS TESTING PD 1,800.00 11316 ALTA LANGUAGE SERVICES, INC JAN '23 LISTENING & SPEAKING TEST HR 110.00 11317 AT&T 12/20/22-1/19/23 MULTIPLE ACCOUNTS 541.27
11318 AUTO PRIDE CAR WASH, INC JAN '23 CAR WASHES PD 46.00 11319 BAY AREA WATER SUPPLY&CONSERVE AGENCY WATER LOSS CONTROL PROGRAM DEC '22 PW 1,002.21 11320 BEST BEST & KRIEGER LLP FEE - DEC '22 LEGAL SERVICE 21,913.05 11321 BLACK HILLS AMMUNITION, INC SUPPLIES - AMMUNITION PD 3,556.00 11322 BOSCO OIL COMPANY GAS/DIESEL PW/PD 13,028.32
11323 BURNETT LANDSCAPE DEVELOPMENT INC MAINT - FEB '23 TOWN LANDSCAPE VARIOUS SITES PW 3,255.00 11324 CAFFE CARRELLO INC COFFEE SERVICE EMPLOYEE APPRECIATION 2/8/23 400.00 11325 CAMPUTEE PRESS, LLC UNIFORMS - VARIOUS ITEMS PW 2,030.83 11326 CENTRAL COUNTY FIRE DEPARTMENT FEB '23 FISCAL CONTRIBUTION 654,879.00 11327 CITY OF SAN MATEO JAN'23 LIBRARY SERVICES CM 21,690.36 11328 CLARK PEST CONTROL PEST CONTROL - PW 250.00
11329 CLEANSWEEP SERVICES, INC. STREET SWEEPING SERVICE PW 4,785.00 11330 CO OF SAN MATEO INFORMATION SERVICESJAN '23 MICRO CHANNEL LINES PD 164.51 11331 COMCAST 1/26/23-2/25/26 PD 446.62
11332 CORE & MAIN LP PARTS - COUPLERS & VARIOUS ITEMS PW 2,065.34 11333 CWEA 23/24 COLLECT SYSTEM GRADE 3 STAFF PW 105.00 DocuSign Envelope ID: 5F533C69-6AFA-452C-B3CC-A07BCD18C335 -112-

TOWN OF HILLSBOROUGH
PURCHASES MADE DURING FEBRUARY 2023
11334 DAILY JOURNAL CORPORATION NOTICE OF HEARING 1/28/23 FAGAN CL 1,136.48 11335 DUDEK TREE ORDINANCE UPDATE 10/29/22-11/25/22 CM 1,950.00 11336 EIDE BAILLY LLP JUN'22 AUDITING SERVICES FN 48,315.00 11337 EPRINTS & DOCUMENT SERVICES PRINT - BUSINESS CARDS STAFF HR 60.29 11338 EPS, INC. REPAIR - TOILET TOWN HALL PW 915.25
11339 ERLER & KALINOWSKI, INC SEWER CIP PHASE 1C CM SUPPORT PRJ PW 3,365.50 11340 FASTENAL COMPANY SUPPLIES - PERSONNEL PROTECTIVE EQUIP PW 3,443.70 11341 FERGUSON US HOLDINGS, INC PARTS - VARIOUS ITEMS PW 4,763.50 11342 FOLGER GRAPHICS, INC PRINT - QUARTERLY NEWSLETTERS Q1 2023 CM 3,090.00 11343 FREYER & LAURETA, INC HIGH LINE WATER PRJ DESIGN PW 6,676.10 11344 GLENN BERKHEIMER FEB '23 LABOR RELATIONS HR 1,700.00 11345 GRAINGER SUPPLIES - GLOVES/PARTS - WATER PUMP PW 907.14 11346 INDUSTRIAL CHEM LABS & SERVICE SUPPLIES - CONCRETE CLEANER PW 368.83 11347 INFOSEND, INC. JAN '23 UTILITY BILLING FN 1,405.87 11348 INTERSTATE BATTERY SYSTEM OF SF PARTS - SCADA BATTERY CORP YARD PW 184.13 11349 INTERSTATE TRAFFIC CONTROL PRODUCT PARTS - CUSTOM SIGNS PW 210.00 11350 LEAGUE OF CALIFORNIA CITIES 2023 MEMBERSHIP DUES CM 6,546.00 11351 LYNGSO GARDEN MATERIALS, INC SUPPLIES - SANDBAGS PW 13,234.38 11352 CA METRO MOBILE COMMUNICATIONS INC EQUIP - RADIOS FOR CARS PD 3,632.51 11353 NETMOTION WIRELESS, INC. MOBILITY ANNUAL MAINTENANCE PW IT 4,211.72 11354 NOEL L. MILLER, INC. MAINT - MULTIPLE VEHICLES PW 1,305.69 11355 NORCAL RENTAL GROUP LLC EQUIP - BACKHOE LOADER PW 1,663.59 11356 383 SIERRA LLC REFUND - PERMIT FEE VOID BP 2,242.00 11357 ANGELA ESPINOSA REFUND - BUILD DEPOSIT BP 9,926.00 11358 DANA SAKAL REFUND - BUILD DEPOSIT BP 3,223.50
11359 DEREK ZANUTTO & CRISTIN CHINN REFUND - BUILD DEPOSIT BP 13,104.00 11360 DEREK ZANUTTO & CRISTIN CHINN REFUND - BUILD DEPOSIT BP 3,500.00 11361 PEGASARUS LLC REFUND - BUILD DEPOSIT BP 12,000.00 11362 ANN RITZMA REIMB - LEAGUE OF CA CONFERENCE EXP 9/7-9/22 CM 540.53 11363 ANN RITZMA REIMB - ICMA CONFERENCE EXP 9/17-22/22 CM 1,367.09 11364 CHRISTINE KROLIK REIMB - LEAGUE OF CA MAYOR CONF EXP 1/18-20/23 CO 499.64 11365 LESLIE MARDEN RAGSDALE REIMB - LEAGUE OF CA MAYOR CONF EXP 1/17-20/23 CO 140.17 11366 MING KIM REIMB - FINGERPRINT SERVICE FEE HR 94.00 11367 COLMA POLICE DEPARTMENT TRAIN - INNER PERSPECT LEADERSHIP CLASS STAFF PD 500.00 11368 EDWARD GRINBERG REFUND - WATER DEPOSIT BALANCE FN 373.50 11369 ELENA AND PAUL MEYLIKER REFUND - WATER DEPOSIT BALANCE FN 367.34 11370 HERMINIA LAU REFUND - WATER DEPOSIT FN 500.00
11371 JOAN RIGGS REFUND - WATER DEPOSIT BALANCE FN 445.50 11372 ROBERT DIXON REFUND - WATER OVERPAY FN 1,441.88
11373 TIM MAHLMAN REFUND - WATER DEPOSIT BALANCE FN 268.08 11374 VICTOR LO REFUND - WATER DEPOSIT BALANCE FN 235.28 11375 PAKPOUR CONSULTING GROUP,INC 23/24 WATER & SEWER REPLACE PRJ DESIGN PW 20,697.00 11376 PATRIOT ENVIRONMENTAL LAB SERVICES BUILDING ENVIRONMENTAL ANALYSIS PD 5,590.00 11377 PENINSULA TRUCK REPAIR INC MAINT - MULTIPLE VEHICLES PW 2,077.32 11378 PG & E 11/16/22-12/14/22 MULTIPLE ACCOUNTS 27,737.29 11379 RICHLAND RESEARCH CORPORATION SUPPLIES - ALL PURPOSE CLEANER PW 1,172.18 11380 PRIORITY 1 PURCHASE - 2022 FORD INTERCEPTORS & OUTFIT PD 114,943.83 11381 QUENCH USA, INC WATER SERVICE 1/28/23-2/27/23 PD 77.66 11382 R & A JANITORIAL SERVICE, LLC FEB '23 JANITORIAL SERVICES PW 9,793.72 11383 RICE TRUCKING-SOIL FARM SUPPLIES - CRUSHED/BASE ROCK/SAND PW 3,841.91 11384 ROBERT HALF INTERNATIONAL INC TEMP SERVICE - MULTIPLE INVOICES PW/FN 8,761.39 11385 SAN DIEGO POLICE EQUIPMENT CO SUPPLIES - AMMUNITION PD 9,688.26 11386 SAN MATEO COUNTY FORENSIC LAB JAN'23 CRIME LAB SERVICES PD 205.00 11387 SAN MATEO LUMBER CO., INC MATERIALS - WOOD POSTS PW 2,259.09 11388 SHOE DEPOT, INC A CALIFORNIA WORK BOOTS - STAFF PW 600.00 11389 SAN MATEO COUNTY POLICE CHIEFS AND 2023 MEMBERSHIP DUES PD 1,000.00 11390 STANDARD INSURANCE COMPANY JAN '23 GROUP LIFE/ADD/LTD ASSESSMENT 2,727.94 11391 STAPLES ADVANTAGE OFFICE SUPPLIES - ALL DEPARTMENTS 1,978.56 11392 STATE WATER RESOURCES CONTROL BRD ANNUAL PERMIT FEE 7/1/22-6/30/23 PW 2,297.00 11393 TELECOMMUNICATIONS ENGINEERING FEB '23 COMM CENTER/BASE PD 2,345.50 11394 THOMSON WEST JAN '23 INVESTIGATIVE WEBSITE PD 1,015.00 DocuSign Envelope ID: 5F533C69-6AFA-452C-B3CC-A07BCD18C335 -113-

TOWN OF HILLSBOROUGH
PURCHASES MADE DURING FEBRUARY 2023
11395 TIMBERLINE TREE SERVICE, INC. MAINT - TREE REMOVAL OAKDALE/CHERRY CREEK PW 5,100.00 11396 TURBO DATA SYSTEMS, INC. JAN'23 CITATION PROCESSING & SCANNER PD 1,564.65 11397 TYLER TECHNOLOGIES, INC. TRAIN - ERP SYSTEM UB 1/09/23-1/23/23 FN 3,240.00 11398 ULINE, INC. SUPPLIES - GLOVES PW 579.02
11399 VERIZON CONNECT NWF INC JUN '22 - GPS MONTHLY SERVICES PW 523.50 11400 VERIZON WIRELESS 12/7/22-1/6/23 PD 114.03
11401 VIKING SHRED LLC FEB'23 DESTRUCTION SERVICES PD 78.99 11402 WECO INDUSTRIES, LLC EQUIP - SEWER HOSE/SPOOL PW 9,195.21 11403 WRA, INC SANDRA/HAYNE DRAIN REPLACE PRJ PW 8,062.04 11404 JIM RUIZ FEE - COMPOSITE SKETCH PD 500.00
TOTAL GOODS & SERVICES FOR THE MONTH PAID BY CHECK $2,446,466.85 CALPERS RETIREMENT CONTRIBUTIONS 203,558.51
VISA PAYMENTS 30,790.85
RETIREE HEALTH REIMBURSEMENTS 84,681.69
OTHER ELECTRONIC PAYMENTS 0.00
TOTAL GOODS & SERVICES FOR THE MONTH $ 2,765,497.90
DocuSign Envelope ID: 5F533C69-6AFA-452C-B3CC-A07BCD18C335 -114-

TOWN OF HILLSBOROUGH
San Mateo County
1600 Floribunda Avenue
Hillsborough, CA 94010
2 CONSENT CALENDAR

CITY COUNCIL MEETING
MARCH 13, 2023

AGENDA STAFF REPORT
ITEM SUBJECT: RECEIVE FY 2022-23 MID-YEAR FINANCIAL AND FY 2023-24 BUDGET PLANNING REPORT PURSUANT TO CEQA GUIDELINE 15378
SUMMARY: This agenda item is to provide a General Fund FY 2022-23 mid-year budget update and a FY 2023-24 preliminary projection that can aid in planning next year’s budget.

Mid-Year Financial Update
The mid-year FY 2022-23 General Fund projection indicates that Town reserves should end close to budget. Revenues are projected to end the year higher than budget, primarily due to timing of MVLF and Excess ERAF revenue, offset somewhat by lower investment income and property taxes. Expenditures are projected to be on target with the amended budget, which incorporates two adopted budget amendments for Tobin Clark trail and final contractual labor agreement outcomes. The ending General Fund reserve in prior year was $2.2 million higher than budget due to timing of $2.7 million in American Rescue Plan Act revenue. The current year projection is updated to include projected spending on this plan of $2.2 million. With these timing differences and the mid-year operating projection changes, year-end FY 2022-23 reserve is projected within $0.1 million of adopted budget.

FY 2023-24 Preliminary Financial Context
The preliminary budget projection is intended to provide a directional estimate of revenue growth and expenditures at a budget baseline level. It does not fully reflect the program resources necessary to accomplish the FY 2023-24 goals which will be identified in the detailed budget development. The proposed budget will include the spending plan necessary to fund programs and services to meet the City Council’s FY 2023-24 priorities and will reflect the salary and benefits based on contractual labor and services obligations and the capital improvements necessary to maintain the Town’s infrastructure.

The preliminary assessment of national and local conditions indicate that inflation is still a factor next year, and investments and real estate continue to be volatile. While there has been a slow down in real estate, the preliminary San Mateo County Assessor tax roll indicates a 5% growth in assessed valuation for FY 2023-24. The Town’s largest General Fund revenue source is property taxes. Permitting activity and revenue in the current year has remained relatively stable with prior year. Therefore, it is projected that FY 2023-24 revenue will grow in the range of 3 to 4%. The Town budget benefitted from the ARPA monies in past years to defray the cost of capital projects, and the FY 2023-24 budget no longer has that advantage. While the preliminary projection shows a net excess revenue from operations, some of the net excess is used to fund one-time capital projects for storm drain and governmental facilities. The additional program funding for FY 2023-24 -115-
Agenda Staff Report - Hillsborough City Council
March 13, 2023

priorities may draw upon General Fund reserves, and some of these programs may have multiyear budgets due to the long-term nature of certain projects.

In summary, the revenues will grow next year, and the detailed budget process will be updated to include the program spending. As communicated at the January 2023 city council meeting, the city council budget study session will be conducted on May 8, 2023.

FISCAL IMPACT: There is no fiscal impact associated with this item.

ENVIRONMENTAL ISSUES: This item is exempt from environmental review pursuant to the California Environmental Quality Act (CEQA) Guidelines sections 15378(b)(2) and 15378(b)(5) as ongoing administrative or organizational activities that will not result in direct or indirect physical changes to the environment.

ATTACHMENTS: FY 2022-23 Mid-Year Financial and FY 2023-24 Budget Planning Report PREPARED BY: Jan Cooke, Finance Director
RECOMMENDATION: Receive FY 2022-23 Mid-Year Financial and FY 2023-24 Budget Planning Report.
-116-
Town of Hillsborough

GENERAL FUND PROJECTION
FY 2022-23 Original
Adopted Budget
FY 2022-23 Mid-Year
Projection
FY 2022-23
Variance
FY 2023-24 Baseline
Budget Estimate
FY 2023-24
Variance
Revenue $ 32,901,718 $ 33,284,327 $ 382,609 2 $ 34,415,851 $ 1,514,133

4.6%
Operating Expenditures (30,682,172) (30,432,172) 250,000 3 (32,020,423) (1,338,251)

4.4%
Capital Transfers (Storm Drain and Facilities) (1,509,000) (1,509,000) - 3 (1,815,000) (306,000) 20%
Adopted Budget Amendments (425,780) (425,780) 4 - 425,780 ARPA Project Transfers (timing only) (2,291,000) (2,291,000) 1 - 2,291,000 Excess/(Shortfall) $ 710,544 $ (1,373,627) $ (2,084,173) $ 580,428 $ 2,586,660 Fund Balance $ 30,333,865 $ 30,447,785 $ 113,920 1 $ 31,028,213 Restricted 115 Pension Trust $ 4,400,000
Assigned For Capital - Sewer, Storm Drain, Tree Replacement 5,863,000 Assigned - ARPA Projects 433,000
Contingency Per Policy Minimum (30% Op. Ex.) 10,150,627 Contingency Per Policy Goal (50% op. Ex.) 6,767,085
Unassigned Reserves for Future Use (Capital, Debt Reduction or Projects) 3,414,501 Total $ 31,028,213
FY 2022-23 Mid-Year Update
2 Revenues projected to exceed budget by approximately $0.4 million, primarily for timing of MVLF and Excess ERAF distributions. 3 Total General Fund operating expenditures and capital transfers are projected to not exceed budget. 4 City Council approved budget amendments $116k Tobin Clark trail (on hold due to housing element project) and $309k Police contracual labor agreement outcome FY 2023-24 Baseline Budget Estimate
1 Ending FY 2021-22 General Fund Reserve is $2.2 million higher than Adopted Budget, primarily for $2.7 million of American Rescue Plan revenues. A budget amendment will be submitted at FYE 2022-23 for $2.2 million General Fund transfer for completion of ARPA projects ($1.2 million to Sewer Fund for storm drain improvements) and $1.091 million to Water Fund for Darrell Tank improvements), once the actual project spending is confirmed.

Projected General Fund Reserve
The preliminary Baseline Budget Projection is intended to provide a directional estimate of revenue growth and expenditures. It does not fully reflect the program expenditures necessary to accomplish the City Council's FY 2023-24 goals which will be developed in the detail budget process in the spring. -117-

TOWN OF HILLSBOROUGH
San Mateo County
1600 Floribunda Avenue
Hillsborough, CA 94010
3 CONSENT CALENDAR

CITY COUNCIL MEETING
MARCH 13, 2023

AGENDA STAFF REPORT
ITEM SUBJECT: RESOLUTION APPROVING DESIGNATION OF APPLICANT’S AGENTS FOR

NON-STATE AGENCIES AND FINDING THIS ACTION EXEMPT FROM CEQA PURSUANT TO CEQA GUIDELINE 15378
SUMMARY: On December 31, 2022, the Town of Hillsborough experienced severe flooding consistent with localized flooding events experienced throughout San Mateo County and the San Francisco Bay Area. Two days later, The Director of Emergency Services proclaimed the local emergency based on several factors:

1. Extreme and unprecedented levels of rainfall in the San Francisco Bay Area, which meteorologists referred to as an "atmospheric river," occurred over the New Year's Eve weekend.

In particular, during the twenty-four- hour period beginning early on New Year's Eve Day, an average of approximately 5.8 inches of rain fell in San Mateo County.

2. This extraordinary level of rainfall and associated severe weather have resulted in flooding and other impacts that have created conditions of disaster and extreme peril to the safety of persons and property within the Town of Hillsborough.

3. Among other things, vehicle traffic has been seriously disrupted, with major roads within the Town of Hillsborough intermittently closed by the severe weather. In particular, there have been prolonged closures at Sandra Road and the 1200 block of Black Mountain Road due to the extreme rain, mudslides and associated severe weather.

4. Other public services, including sewer and water infrastructure and access to fire and other emergency services, have been put at risk of failure by the weather.

5. Hillsides in certain sections of the Town appear to be slipping and creeks are overflowing leading to safety risks for nearby residents.

DISCUSSION
The Town of Hillsborough had declared a Local Emergency based on several factors that have now been resolved and the San Mateo Department of Emergency Management (DEM), FEMA, and the State have all defined the emergency period concluding on January 31, 2023. There is still significant work to do to rehabilitate public property damaged by the storm. San Mateo County is working with Cal-OES and FEMA on long-term recovery so that they may proceed with assisting cities in recovering some of the extraordinary costs associate with the storm. San Mateo County -119-
Agenda Staff Report - Hillsborough City Council
March 13, 2023

has been designated for across-the-board Public Assistance from FEMA. The Town of Hillsborough will likely be eligible for reimbursement of expenses incurred during the storm events.

To apply for reimbursement of expenses, the Town of Hillsborough must submit a “Request for Public Assistance in the FEMA grant portal by March 18, 2023. In order for Cal OES to proceed, the Town also needs to provide an approved Cal OES Form 130 Designation of Applicant’s Agent Resolution for Non-State Agencies.

Further, Cal OES Form 130 will be valid for three years from the date signed and would allow the Town of Hillsborough to seek cost recovery for eligible disaster expenses incurred by and future declared disasters during the three-year period.

FISCAL IMPACT: The action of approving the Designation of Applicant's Agent Resolution for Non-State Agencies has no direct impact to the Town's budget, reimbursement of costs incurred by the Town from the local emergency, but it enables the Town to file for reimbursement of costs.

ENVIRONMENTAL ISSUES: This designation is not a project subject to CEQA, because it is an organizational or administrative activity that will not result in direct or indirect physical changes in the environment. (CEQA Guidelines Section 15378(b)(5).) ATTACHMENTS:

1. Resolution

2. Designation of Applicant’s Agent Resolution for Non-State Agencies (Cal OES 130) PREPARED BY: Jan Cooke, Finance Director
RECOMMENDATION: Adopt the resolution approving designation of applicant’s agents for nonstate agencies pursuant to CEQA Guideline 15378. -120-
RESOLUTION NO. 23-

RESOLUTION OF THE CITY COUNCIL OF THE TOWN OF HILLSBOROUGH APPROVING DESIGNATION OF APPLICANT’S AGENTS FOR NON-STATE

AGENCIES AND FINDING THIS ACTION EXEMPT FROM CEQA PURSUANT TO CEQA GUIDELINE 15378
WHEREAS, in response to the December 31, 2022 winter storm emergency, actions have been taken at the local, state, and federal level; and WHEREAS, on January 9, 2023, the City Council of the Town of Hillsborough proclaimed a local emergency; and
WHEREAS, in accordance with Section 502 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (Stafford Act), eligible costs associated with the response to the emergency may be reimbursed under the Federal Emergency Management Association's (FEMA) Public Assistance Program; and
WHEREAS, the Town of Hillsborough incurred financial impacts during the period and plans to submit a “Request for Public Assistance” to the California Governor’s Office of Emergency Services (CalOES); and
WHEREAS, any qualifying costs incurred by the Town may be eligible for reimbursement for the period beginning December 31, 2022 and a Designation of Applicant’s Agent Resolution for Non-State Agencies is required of all applicants to be eligible to receive funding.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the Town of Hillsborough hereby adopts the resolution approving designation of applicant’s agents for non-state agencies pursuant to CEQA guideline 15378.

Mayor of the Town of Hillsborough
Attest: City Clerk
This resolution was adopted by the City Council of the Town of Hillsborough at its regular meeting held on the 13th day of March 2023, by the following vote of the members thereof:

AYES: Councilmembers:

NOES: Councilmembers:

ABSENT: Councilmembers:

ABSTAIN: Councilmembers:
-121-
ATTACHMENT 1

DESIGNATION OF APPLICANT'S AGENT RESOLUTION FOR NON-STATE AGENCIES

BE IT RESOLVED BY THE OF THE
(Governing Body) (Name of Applicant)

THAT , OR
(Title of Authorized Agent)
, OR
(Title of Authorized Agent)
(Title of Authorized Agent)
is hereby authorized to execute for and on behalf of the , (Name of Applicant)
a public entity established under the laws of the State of California, this application and to file it with the California Governor’s Office of Emergency Services for the purpose of obtaining federal financial assistance for any existing or future grant program, including, but not limited to any of the following:
- Federally declared Disaster (DR), Fire Mitigation Assistance Grant (FMAG), California State Only Disaster (CDAA), Immediate Services Program (ISP), Hazard Mitigation Grant Program (HMGP), Building Resilient Infrastructure and Communities (BRIC), Legislative Pre-Disaster Mitigation Program (LPDM), under - Public Law 93-288 as amended by the Robert T. Stafford Disaster Relief and Emergency Assistance Act of 1988, and/or state financial assistance under the California Disaster Assistance Act.
- Flood Mitigation Assistance Program (FMA), under Section 1366 of the National Flood Insurance Act of 1968.
- National Earthquake Hazards Reduction Program (NEHRP) 42 U.S. Code 7704 (b) ((2) (A) (ix) and 42 U.S. Code 7704 (b) (2) (B) National Earthquake Hazards Reduction Program, and also The Consolidated Appropriations Act, 2018, Div. F, Department of Homeland Security Appropriations Act, 2018, Pub. L. No. 115-141 - California Early Earthquake Warning (CEEW) under CA Gov Code – Gov, Title 2, Div. 1, Chapter 7, Article 5, Sections 8587.8, 8587.11, 8587.12 That the , a public entity established under the
(Name of Applicant)
laws of the State of California, hereby authorizes its agent(s) to provide to the Governor’s Office of Emergency Services for all matters pertaining to such state disaster assistance the assurances and agreements required.

STATE OF CALIFORNIA

CALIFORNIA GOVERNOR'S OFFICE OF EMERGENCY SERVICES

DESIGNATION OF APPLICANT'S AGENT RESOLUTION

NON-STATE AGENCIES
OES-FPD-130 (Rev. 10-2022)

RECOVERY DIRECTORATE

FINANCIAL PROCESSING DIVISION
Cal OES ID No: _____________
Rev. 10-2022 Page 1 of 4 OES-FPD-130 -122-
ATTACHMENT 2
Please check the appropriate box below
This is a universal resolution and is effective for all open and future disasters/grants declared up to three (3) years following the date of approval.

This is a disaster/grant specific resolution and is effective for only disaster/grant number(s):

Passed and approved this __day of , 20
(Name and Title of Governing Body Representative)
(Name and Title of Governing Body Representative)
(Name and Title of Governing Body Representative)

CERTIFICATION
I, , duly appointed and of
(Name) (Title)
, do hereby certify that the above is a true and
(Name of Applicant)
correct copy of a resolution passed and approved by the (Governing Body)
of the on the day of , 20 .
(Name of Applicant)
(Signature) (Title)

STATE OF CALIFORNIA

CALIFORNIA GOVERNOR'S OFFICE OF EMERGENCY SERVICES

DESIGNATION OF APPLICANT'S AGENT RESOLUTION

NON-STATE AGENCIES
OES-FPD-130 (Rev. 10-2022)

RECOVERY DIRECTORATE

FINANCIAL PROCESSING DIVISION
Rev. 10-2022 Page 2 of 4 OES-FPD-130 -123-
Cal OES Form 130 Instructions
A Designation of Applicant’s Agent Resolution for Non-State Agencies is required of all Applicants to be eligible to receive funding. A new resolution must be submitted if a previously submitted resolution is older than three (3) years from the last date of approval, is invalid, or has not been submitted.

When completing the Cal OES Form 130, Applicants should fill in the blanks on pages 1 and 2. The blanks are to be filled in as follows:

Resolution Section:

Governing Body: This is the group responsible for appointing and approving the Authorized Agents.

Examples include: Board of Directors, City Council, Board of Supervisors, Board of Education, etc.

Name of Applicant: The public entity established under the laws of the State of California.

Examples include: School District, Office of Education, City, County or Non-profit agency that has applied for the grant, such as: City of San Diego, Sacramento County, Burbank Unified School District, Napa County Office of Education, University Southern California.

Authorized Agent: These are the individuals that are authorized by the Governing Body to engage with the Federal Emergency Management Agency and the California Governor’s Office of Emergency Services regarding grants for which they have applied.

There are two ways of completing this section:

1. Titles Only: The titles of the Authorized Agents should be entered here, not their names. This allows the document to remain valid if an Authorized Agent leaves the position and is replaced by another individual. If “Titles Only” is the chosen method, this document must be accompanied by either a cover letter naming the Authorized Agents by name and title, or the Cal OES AA Names document. The supporting document can be completed by any authorized person within the Agency (e.g., administrative assistant, the Authorized Agent, secretary to the Director). It does not require the Governing Body’s signature.

2. Names and Titles: If the Governing Body so chooses, the names and titles of the Authorized Agents would be listed. A new Cal OES Form 130 will be required if any of the Authorized Agents are replaced, leave the position listed on the document, or their title changes.

STATE OF CALIFORNIA

CALIFORNIA GOVERNOR'S OFFICE OF EMERGENCY SERVICES

DESIGNATION OF APPLICANT'S AGENT RESOLUTION

NON-STATE AGENCIES
OES-FPD-130 (Rev. 10-2022)

RECOVERY DIRECTORATE

FINANCIAL PROCESSING DIVISION
Rev. 10-2022 OES-FPD-130 Page 3 of 4 -124-
Checking Universal or Disaster-Specific Box: A Universal resolution is effective for all past disasters and for those declared up to three (3) years following the date of approval. Upon expiration it is no longer effective for new disasters, but it remains in effect for disasters declared prior to expiration. It remains effective until the disaster goes through closeout unless it is superseded by a newer resolution.

Governing Body Representative: These are the names and titles of the approving Board Members.

Examples include: Chairman of the Board, Director, Superintendent, etc. The names and titles cannot be one of the designated Authorized Agents. A minimum of three (3) approving board members must be listed. If less than three are present, meeting minutes must be attached in order to verify a quorum was met.

Certification Section:

Name and Title: This is the individual in attendance who recorded the creation and approval of this resolution.

Examples include: City Clerk, Secretary to the Board of Directors, County Clerk, etc. This person cannot be one of the designated Authorized Agents or Approving Board Member. If a person holds two positions (such as City Manager and Secretary to the Board) and the City Manager is to be listed as an Authorized Agent, then that person could sign the document as Secretary to the Board (not City Manager) to eliminate “Self-Certification.”

STATE OF CALIFORNIA

CALIFORNIA GOVERNOR'S OFFICE OF EMERGENCY SERVICES

DESIGNATION OF APPLICANT'S AGENT RESOLUTION

NON-STATE AGENCIES
OES-FPD-130 (Rev. 10-2022)

RECOVERY DIRECTORATE

FINANCIAL PROCESSING DIVISION
Rev. 10-2022 Page 4 of 4 OES-FPD-130 -125-

TOWN OF HILLSBOROUGH
San Mateo County
1600 Floribunda Avenue
Hillsborough, CA 94010
4 CONSENT CALENDAR

CITY COUNCIL MEETING
MARCH 13, 2023

AGENDA STAFF REPORT
ITEM SUBJECT: ADOPTION OF AN ORDINANCE AMENDING CHAPTERS 8.16, 8.28, 14.04,

16.44, AND 17.56 OF THE HILLSBOROUGH MUNICIPAL CODE RELATED TO TREE

PROTECTION AND PRESERVATION PURSUANT TO CEQA GUIDELINES SECTIONS 15061(b)(3), 15307, 15308, 15378(b)(2) AND (b)(5)
SUMMARY: In September 2021, staff presented an informational item on existing tree protection guidelines and comparative research on guidelines in other, nearby jurisdictions. City Council provided preliminary direction to develop a short-term work plan as well a longer-term plan to revise the tree protection guidelines in Town. In October 2021, staff presented a short-term work plan focused on public education as well as a long-term work plan to update Town ordinances related to tree preservation and protection. In February 2022, the City Council authorized the City Manager to execute a contract to update the Town’s ordinances related to tree preservation and protection.

The contract was awarded to Dudek to complete the following project objectives:
• Provide community engagement through the process
• Update the Town’s tree removal ordinance(s) in coordination with related ordinances to include industry best practices
• Provide recommendations and analysis of innovative ways to protect and increase the sustainability benefits of trees in Town
• Provide on-call consultation services, as needed to provide advice or lead portions of ordinance implementation
The project team working on the ordinance update has extensive understanding and experience in the key roles of arboriculture and urban forestry, fire management in open-space and wildlandurban interface (WUI) areas, modeling fire behavior and wildfire hazard conditions, community outreach and engagement efforts (community meetings, survey design and analysis, etc.), and preparation and assessment of ordinance language.

The project team worked with staff to gather background information and work directly with the community to solicit feedback throughout this process. A summary of the outreach activities include:
• Interviews with staff in key departments: Building & Planning, Public Works, Police, the City Attorney’s Office, and the City Manager’s Office
• Interviews with community stakeholders from Firewise, Hillsborough Beautification Foundation, City Council, and the broader community
• Community survey with 240 respondents
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Agenda Staff Report - Hillsborough City Council
March 13, 2023

• Listening session conducted in a hybrid setting to solicit feedback on potential ordinance changes
• Focus group session with volunteers to serve as a focus group on proposed ordinance changes
As a result of the outreach and subject-matter expertise, the proposed ordinance updates reflect the feedback received. A summary of the major changes is provided below, with additional detail available in Attachment 3.
• A town qualified arborist shall be the authorized officer to determine whether a tree is dead, diseased, infested or dying for purposes of whether the tree constitutes a nuisance. Easements were also added to the list of locations that could be affected by trees as nuisances, giving the Town the authority to cite easement holders accordingly. • New definition of “protected tree”: All species with a diameter of 18”, measured at 4 feet, 6 inches above grade (diameter at breast/standard height, [DSH]). Creating a definition of a protected tree will address a need to clarify how the city treats trees at different sizes. A decrease from 36” to 18” will enable the Town to protect more trees that are middle-aged and provide the greatest quantity of environmental services available to the Town. This change will result in increased tree removal permits submitted to Town staff, which will increase staff resources needed to complete permits. However, staff is recommending approval of this measure despite the additional staff resources required, as the environmental benefits of preserving more trees outweighs the minimal cost to the Town in the form of additional staff hours.
• The actions that constitute removal of a tree were updated to reflect International Society of Arboriculture (“ISA”) standard language, and to include that a townqualified arborist shall be the authorized agent to determine if actions taken shall permanently compromise the health and safety of a tree. • A new section was added to address a need for protected tree replacement requirements to appear in the municipal code. This includes that all protected trees that are removed must be replaced with 1 tree that is of the same species or suitable alternative; that is, a 24” box size. The property owner must replace the tree if it dies within 6 months, and the future property owners must continue to maintain the tree. If the site cannot support new tree planting, in-lieu fees to the Town’s tree preservation fund will be required. • New penalties for violation include that if a tree is not able to be restored to its former condition, a penalty will be assessed of either $150 per inch of trunk diameter of the removed tree, or the appraised value of the removed tree as determined by the 10th Edition ISA Guide for Plan Appraisal, whichever is greater. An additional fee may be assessed to mitigate damages caused during the tree removal. • A replacement tree of a species approved by the town that is 36” box size will be required to be planted within 6 months if a town qualified arborist determines the damaged tree cannot be restored to its original condition. -128-
Agenda Staff Report - Hillsborough City Council
March 13, 2023

• Additional penalties and the withholding or revocation of building permits apply should a developer violate the chapter. The Building & Planning Department may suspend any permit processing or issue a stop work notice pending City Council review and shall request City Council to withhold permits for a maximum of 6 months if construction has begun, or revoke permits for constructions on properties that has not begun. The section also describes the process for seeking a hearing before the City Council if the illegal removal or relocation of protected trees takes place.

By unanimous vote, the City Council introduced the ordinance with further reading waived at the February 13, 2023 City Council meeting with modifications, outlined below and in redline in the attachment to the staff report:
• Formatting and style edits.
• Removal of the last sentence in Section 14.04.030(F). • Addition to Section 14.04.020 Tree Protection Zone to include “and signage” and Section

14.04.030(H) to include “and signage.”
• Addition to Section 14.04.055(A)(2) to add the following sentence: “The property owner shall be required to notify any subsequent property owner of the continuing obligation to maintain the replacement trees.”
• Revision to Section 14.04.060(B) to remove “10th edition” and replace with “most recent edition” of the International Society of Arboriculture (ISA) Guide for Plan Appraisal.

FISCAL IMPACT: Potential fiscal impacts of enforcing the ordinance and other required implementation costs include retaining an arborist firm for assistance and increasing the amount of overall Town staff time required to process additional tree-related permits. The existing professional services budget will be used to pay for the costs incurred by the arborist consultants, and the Town has already budgeted sufficient money through 2023 to provide for the additional Town staff time that may be required. Staff will return to Council or incorporate these costs into next year’s budget process if additional funding is required.

ENVIRONMENTAL ISSUES: The proposed action is exempt from the requirements of the California Environmental Quality Act (CEQA) in that it is not a Project which has the potential for causing a significant effect on the environment pursuant to CEQA Guideline section 15061(b)(3), and, alternatively, is exempt from further CEQA review under CEQA Guideline sections 15307 and 15308 as an action authorized by local ordinance to maintain, restore, or enhance a natural resource. Finally, the proposed action is also exempt from CEQA under Guidelines sections 15378(b)(2) and 15378(b)(5) as ongoing administrative or organizational activities that will not result in direct or indirect physical changes in the environment.

ATTACHMENT: Ordinance and Exhibit A
PREPARED BY: Ann Ritzma, City Manager
RECOMMENDATION: Adopt the ordinance titled “An Ordinance of the City Council of the Town of Hillsborough Amending Chapters 8.16, 8.28, 14.04, 16.44, 17.56 of the Hillsborough Municipal -129-
Agenda Staff Report - Hillsborough City Council
March 13, 2023

Code Relating Tree Protection and Preservation” Pursuant to CEQA Guidelines Sections 15061(b)(3), 15307, 15308, 15378(b)(2) and (b)(5).
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ORDINANCE NO. ____

AN ORDINANCE OF THE CITY COUNCIL OF THE TOWN OF HILLSBOROUGH AMENDING CHAPTERS 8.16, 8.28, 14.04, 16.44, AND 17.56 OF THE HILLSBOROUGH

MUNICIPAL CODE RELATING TREE PROTECTION AND PRESERVATION PURSUANT TO CEQA GUIDELINES SECTIONS 15061(b)(3), 15307, 15308, 15378(b)(2) AND (b)(5)

THE CITY COUNCIL OF THE TOWN OF HILLSBOROUGH HEREBY FINDS AND ORDAINS:

WHEREAS, on February 14, 2022, the City Council authorized the City Manager to execute a contract to update the Town’s ordinances related to tree preservation and protection; and WHEREAS, the City Council finds that the desired outcome of the Ordinance update is to promote tree preservation and environmental sustainability while balancing property rights and implementation efficiency; and
WHEREAS, the City Council finds the Ordinance update process evaluated current issues and successes with the existing ordinance and explored options for changes based on evidence and best practices in other communities and industry experts, as well as input from residents and community members; and
WHEREAS, the City Council finds that the proposed Ordinance updates will meet the Town’s stated goals of increasing clarity and effectiveness of ordinance implementation for tree removal and replacement, and accordingly, adopts the following amendments to the Hillsborough Municipal Code.

NOW, THEREFORE, the City Council of the Town of Hillsborough does ordain as follows:

Section 1. Chapters 8.16, 8.28, 14.04, 16.44, and 17.56 are hereby amended as set forth in Exhibit A, incorporated by this reference. All provisions of those chapters not affected by the adoption of this Ordinance shall continue in full force and effect unless and until the Town amends or repeals them at a later date.

Section 2. Environmental review is not required because adoption of the Ordinance is not a project under the California Environmental Quality Act (CEQA) pursuant to CEQA Guideline 15378(b)(5) (organization or administrative activities of governments not a project), and, alternatively, is exempt from further CEQA review under CEQA Guideline sections 15307 and 15308 as an action authorized by local ordinance to maintain, restore, or enhance a natural resource. The Ordinance updates are intended to enhance the level of tree protection provided by the Town’s current Ordinance, while providing more clarity and better enforcement procedures.

No direct or indirect impacts to the environment are anticipated as a result of adoption of this Ordinance.

Section 3. If any section, subsection, clause or phrase in this Ordinance or the application thereof to any person or circumstances is for any reason held invalid, the validity of -131-
2 the remainder of this Ordinance or the application of such provisions to other persons or circumstances shall not be affected thereby. The City Council hereby declares that it would have passed this Ordinance and each section, subsection, sentence, clause, or phrase thereof, irrespective of the fact that one or more sections, subsections, sentences, clauses or phrases or the application thereof to any person or circumstance be held invalid.

Section 4. No less than five days prior to the adoption of this Ordinance, the City Clerk published a summary of this Ordinance in accordance with Government Code section 36933. The City Clerk will certify to the passage of this Ordinance by the City Council of the Town of Hillsborough, California, and cause a summary to be published once within fifteen (15) days after its passage in a newspaper of general circulation, printed, published and circulated in the City in accordance with Government Code section 36933.

Section 5. This Ordinance shall take effect July 1, 2023. __________________________________
Mayor of the Town of Hillsborough
______________________________
Attest: City Clerk
ORDINANCE NO. ____ of the Town of Hillsborough introduced on February 13, 2023, and adopted on ______________, by the following vote of the City Council:

AYES: Councilmembers
NOES: Councilmembers
ABSENT: Councilmembers
ABSTAIN: Councilmembers
-132-

EXHIBIT A
-133-

Chapter 8.16 NUISANCES

8.16.030 Nuisances—Affecting peace and safety.

The following are expressly declared to be public nuisances adversely affecting the public peace and safety:

A. Storage, leakage, release or use of any explosive, flammable liquid or other dangerous, toxic or hazardous substance in any manner or in any amount other than as permitted pursuant to this code and county, state and federal law; B. All loud and unusual noises and annoying vibrations which offend the peace, quiet and tranquility of persons of ordinary sensibilities;
C. 1. All buildings and other structures including, without limitation, towers as defined in Chapter

15.36 and including alterations, or parts thereof, made or erected in violation of ordinances prescribing the location, size, manner and materials of construction;

2. Any tarp or other similar covering on any portion of a structure or on any land area, which tarp or covering has become torn or otherwise unsightly or which, regardless of condition, has remained in place longer than one year.

D. All obstructions and excavations affecting the ordinary use or free passage over or on the public streets, roads, driveways, alleys, sidewalks, rights‐of‐way or public grounds, except when permitted by laws and regulations or this code, and adequately protected with barriers, barricades, temporary covers and lights;
E. The keeping of any animals, birds or fowl, or permitting the keeping thereof, by the owner of any premises within the town, which by the sounds or normal crying of said animals, birds or fowl, might disturb the neighborhood or interfere with any person's reasonable, comfortable enjoyment of life and property;
F. Drainage water, rainwater, backwash water or other discharge from any building, structure, equipment, pool facility or other installation which flows across the public sidewalk area and interferes with the normal use of said area;
G. To conduct any business within the town which shall cause any noise or disturb the rest and quiet of the residents, due to the use of hand or power driven equipment or tools of any kind or size except that such business may be conducted between the hours of seven a.m. to five p.m., Mondays through Fridays and between the hours of eight a.m. to five p.m. on Saturdays. No such business may be conducted on Sundays or legal state holidays. Any use for the purpose of this section is a business use where the person, firm, corporation or association is doing the work either for a direct or indirect monetary gain or for the sale of the results of the work. Contractors may be exempted by the city manager from the provisions of this subsection if they are working at the instructions of the town Town on an emergency project;
H. Except as installed by the town in order to safeguard the public health, safety, and welfare:

1. Barbed wire fence,

2. Razor wire fence,

3. Any other fence with jagged or sharp edges or projections, -134-

4. Electrified fence,

5. Any wall with jagged or sharp edges or projections or incorporating barbed wire or razor wire, and

6. Any wire, twine, or rope fence (excepting any metal fence that has been approved by the architecture and design review board), consisting of one or more strands of wire, twine, or rope, any strand of which is located less than three feet above the surface of the ground and less than three feet from any public right‐of‐way (including streets, parking strips, and other public rights‐of‐way).

I. All dangerous, unguarded machinery, equipment, apparatus, installations, trenches, ditches, pools, or other construction or structures which are so situated or located and exposed in a manner to attract children or the general public;
J. Any tree or shrub determined by a Town Town‐qualified arborist to be dead, diseased, infested, or dying (or any other tree or shrub in any condition, including, but not limited to, completely healthy) on any property so near to a street, public right‐of‐way, or public utility easement as to constitute a danger to any public utility service, street, sidewalk, vehicle travel, person (other than the owner of the tree or shrub), or property (other than property belonging to the owner of the tree or shrub);
K. Hedges or dense, thorny shrubs extending into a street or easement; L. Any tree or portion thereof adjacent to or overhanging any public street in the town in such a condition as to (1) constitute a hazard or impediment to the progress or vision of anyone traveling on such public street or (2) otherwise interfere with the use of any street so as to endanger the life, health, safety or property of the public. Nothing contained in this subsection shall be deemed to impose any liability upon the town, its officers, or employees, nor to relieve the owner of any private property from the duty to keep any tree upon their property or under his or her control in such a condition as to prevent it from constituting a public nuisance.

M. Any fence, wall or hedge that violates the restrictions imposed by Chapter 12.20; N. Generation of intense glare or heat that adversely affects use and enjoyment of neighboring property or confuses or interferes with travel along a street or sidewalk; O. Excavations or ponds that are open and attractive to persons; P. Any other act, occupation or use of property that in fact endangers or jeopardizes the public peace and safety; or
Q. Any violation by a property owner or other responsible person of any order issued by the hearing panel pursuant to Section 8.16.070 hereof.
(Ord. 654 § 8, 2004; Ord. 633 § 1, 2002; Ord. 624 §§ 1, 2, 2001; Ord. 618 § 3, 2001; Ord. 609 § 2, 2000; Ord. 597 § 1, 1999; Ord. 557 §§ 6—8, 1997; Ord. 361 § 1, 1978; Ord. 6.4.12)

8.16.035 Nuisances—Property.

The following are expressly declared to be public nuisances adversely affecting the public health, peace, safety or welfare and are deemed to be an offense against property:
-135-

A. Buildings or structures which are structurally unsafe or which constitute a fire hazard or which are otherwise dangerous to human life, or which, in relation to existing use, constitute a hazard to safety or health or public welfare by reason of inadequate maintenance, dilapidation, obsolescence, abandonment or otherwise;
B. Subsidence or surface water drainage problems of such magnitude as to be injurious or potentially injurious to the public or adjacent properties whether caused by grading operations, excavations or fill, by building stormwater drains, or as a result of the topography, geology or configuration of the land in its natural state; C. Debris, litter, dirt, overgrown vegetation, dead trees or plant materials or weeds on a property which constitute a fire hazard, potential to become a fire hazard or a likely harborage for vermin;
D.   1. Buildings, fences or other structures which are or have been abandoned, boarded up, partially destroyed, in need of repair or maintenance, or permitted to remain in a state of partial construction, whether or not any building permit has expired, and which have been in such condition for at least twelve months or, if an insurance claim has been filed with respect to such structure, for at least six months after settlement of the insurance claim; provided, however, that any structure that has been in such condition for at least twelve months shall be deemed a nuisance hereunder regardless of the status of any insurance claim;

2. Story poles that have remained on site longer than thirty days after the planning office staff has notified the property owner in writing that the story poles are to be removed shall be deemed a nuisance hereunder;

3. Construction projects in violation of Chapters 15.26 and 15.30 relating to implementation of construction management requirements and time limits for completion of construction shall be deemed a nuisance hereunder; E. Partially chipped or peeling exteriors of buildings or structures causing or tending to cause dry rot, warping or termite infestation, or buildings or structures left unpainted, unstained, partially unpainted or partially unstained for more than three months; F. Buildings with an exterior door or doors missing or with windows containing broken glass or no glass at all where the window is of a type which normally contains glass; G. Trees, weeds or other vegetation which, by reason of being overgrown, dead, decayed or diseased or location, are:

1. Likely to harbor rats, vermin or other nuisances, or

2. A clear and present risk of physical injury to inhabitants or occupants of the premises or to the public, or as determined by a Town Town‐qualified arborist

3. By virtue of the excessive amount or exotic character, inconsistent with community standards or the aesthetic character of the community, or are an interference with the interest of others in the use, enjoyment or value of their property, or

4. Hanging closer than fourteen feet above the surface of, or blocking or obstructing, a public right‐of‐way (including street, parking strip, or other public right‐of‐way), driveway, or alley, or

5. Obstructing the sight of drivers of vehicles at street intersections; -136-

H. Landscaping which is negligently maintained or permitted to become overgrown, rank and unsightly;
I. Any wrecked, disabled, inoperative, salvaged or dismantled vehicle, vessel, equipment, appliance or part stored or parked in front or side yard areas where the vehicle, vessel, equipment or parts are visible from a street, public right‐of‐way or adjacent property; J. Storage of boxes, litter, garbage, broken or discarded furniture, household equipment, appliances, vehicle parts, shopping carts or other refuse in front, rear or side yards for more than five days if visible from the street or for more than one month if not visible from the street;
K. The presence of any building or object, whether natural or manmade, which, whether in its original condition or that in which it is allowed to remain, is attractive to children and in which potential hazards exist, such as:

1. Abandoned, broken or neglected equipment or machinery, or

2. Pools, ponds or excavations inadequately protected;
L. Garbage cans, recycling bins or other containers stored for more than twenty‐four hours in front or side yards and visible from the public street; M. Neglect of premises:

1. To spite neighbors,

2. To influence zone changes, or

3. To cause a detrimental effect upon nearby property or property values; N. Maintenance of premises in such condition as to be detrimental to the public health, safety or general welfare or in such manner as to constitute a public nuisance; O. Property maintained in such condition as to become so defective, unsightly or in such condition of deterioration or disrepair that the same causes appreciable diminution of the property values of surrounding properties or is materially detrimental to nearby properties and improvements;
P. Maintenance of premises so out of harmony or conformity with the maintenance standards of adjacent properties as to cause substantial diminution of the enjoyment, use or property value of such adjacent properties;
Q. Property having clotheslines, bedding or laundry in a front yard or in any other location which is not appropriately screened from public view;
R. Violation of Chapter 10.56;
S. Unlandscaped areas of developed lots if the areas have remained unlandscaped for at least three months (or such longer period as allowed by the deadlines set forth in Section

17.56.090) and are visible from any street or public right‐of‐way; T. Treehouses, platforms or similar structures constructed on or within a tree or shrub in front or side yards which are visible from any street or public right‐of‐way; U. Accumulation of animal excrement or decayed vegetation in any front, rear or side yard, constituting an unsightly appearance, danger to public health, safety or welfare or which is visible from any street or public right‐of‐way or which creates a noticeable odor; -137-

V. All other acts, occupations, and uses of property, which are nuisances, including, but not limited to, all violations of Title 17.
(Ord. 652 § 5, 2003; Ord. 639 §§ 4, 28, 2003; Ord. 631 § 1, 2002; Ord. 624 §§ 3, 4, 2001; Ord. 608 § 28 (part), 2000; Ord. 597 § 2, 1999; Ord. 557 § 9, 1997)
(Ord. No. 739, § 1, 7‐11‐2016)
Chapter 8.28 VOLUNTARY RESOLUTION OF DISPUTES REGARDING TREES AND VIEWS

8.28.010 Purpose and intent.

A. In enacting this chapter, the city council desires to provide a mechanism for resolving disputes between owners of adjoining properties within the town concerning the obstruction of views or the obstruction of sunlight caused by the growth of trees, groves, shrubs or other vegetation. The purpose of this chapter is to promote the public health, safety, and welfare by providing a means to resolve disputes regarding trees and views in order to preserve peace between neighbors and to preserve the property values and quality of life in the town.

B. The city council finds that the character and beauty of the town and the enjoyment and value of real property therein is dependent in part upon preserving views and access to sunlight and at the same time upon preserving the scenic beauty and environmental protections afforded by trees, groves, shrubs and other vegetation. The city council further finds that the trees within the town contribute importantly to the privacy and serenity valued by the inhabitants of the town. Thus, the intent of this chapter is not to diminish the number or variety of trees in the town or the privacy afforded by them, but rather to preserve, where possible, conditions as they existed at the time the owners in question purchased their property. That is, if a view existed at the time the property owner purchased the property in question ("time of purchase"), that view is to be preserved to the extent practical, from subsequent encroachment by trees and other vegetation. If, however, at the time of purchase, trees or other vegetation already existed in the location complained of and at roughly the height or mass complained of, then such trees or vegetation are not required by this chapter to be removed or reduced to create or improve a view beyond the state of such view at the time of purchase.
(Ord. 606 § 2 (part), 2000: Ord. 406 § 1 (part), 1985)

8.28.020 Unreasonable obstruction prohibited—Definitions of certain terms.

No tree, grove, shrub or other vegetation shall be planted, maintained or permitted to grow upon any parcel of property in the town in such manner as to obstruct unreasonably the view from, or the sunlight reaching, any other adjoining parcel of property. The term "adjoining parcel" shall include any parcel located directly across the street from the parcel in question. One parcel shall be "directly" across the street from another if a line drawn perpendicular to any point along the common boundary of either parcel and the street shall intersect any point along the common boundary of the other parcel and the same street. The term "unreasonably," as used in this section, means that the detriment to the adversely affected parcel caused by such growth is greater than the benefit of such growth to the parcel upon which it is located.
(Ord. 606 § 2 (part), 2000: Ord. 406 § 1 (part), 1985)
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8.28.030 Complaint.

Any property owner (hereinafter "complainant") who believes that the view from or sunlight reaching their property is being unreasonably obstructed, as defined in Section 8.28.020, shall contact the owner of the parcel upon which such obstruction is situated and attempt to resolve the problem. (Ord. 606 §§ 2 (part), 3, 2000: Ord. 406 § 1 (part), 1985)

8.28.040 Complaints concerning town Town property.

If the obstructing growth is on the town's property, a town Town‐qualified arborist shall determine whether the growth merits pruning, removal or other treatment and, notify the city manager and Building & Planning Official of the findings. Within ten days after receipt of the complaint, the city manager shall notify the complainant in writing, by ordinary mail or personal delivery, of such determination. If the town Town‐qualified arborist’s determination is that pruning, removal or other treatment is appropriate, the city manager or Building & Planning Official shall so inform the complainant as set forth above and shall authorize the performance of such work. (Ord. 606 §§ 2 (part), 4, 2000: Ord. 406 § 1 (part), 1985)

8.28.060 Voluntary mediation and arbitration.

If the persons subject to the provisions of this chapter cannot resolve any dispute governed by this chapter on an informal basis, the complainant may offer voluntary mediation to the other party. Should mediation fail or be declined by the other party, civil action may be pursued by the complainant to resolve the dispute.
(Ord. 606 §§ 2 (part), 6, 2000: Ord. 429, 1986)
Chapter 14.04 TREE REMOVAL

14.04.020 Definitions.

As used in this chapter, the following words have the meaning respectively ascribed to them, unless otherwise specifically indicated in this chapter:

Certified Arborist. “Certified Arborist” means an arborist certified by the International Society of Arboriculture (ISA) with current certification standing, meeting all current renewal requirements, and continuing education requirements; or an American Society of Consulting Arborists (ASCA) consulting arborist with current membership standing, meeting all continuing education requirements.

Town Town‐Qualified Arborist. “Town Town‐Qualified Arborist” means any certified arborist authorized to work on behalf of the town of Hillsborough.

Grove. "Grove" means a group of a least five woody plants of the same type with a diameter of six inches or more measured at four feet, six inches above natural grade.

Protected Tree. “Protected Tree” means:

1. Any tree species, which measures 18 inches or more in cumulative diameter, measured at four feet six inches above natural grade.
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2. Any tree planted as a requirement tree for site development, tree permit condition, landscape plan removal replacement, or other designated condition by the city.

3. “Protected tree” does not include any tree grown or held for sale by a licensed nursery.

Removal of a Tree. "Removal of a tree" means any pruning, cutting, or damage to any portion of a tree, in the opinion of a town Town‐qualified arborist, shall in effect permanently compromise the health and safety of a tree.

Tree. "Tree" means any woody plant which has a trunk with a diameter of six inches or more measured at four feet, six inches above natural grade.

Tree Protection Plan. A “Tree Protection Plan” means a document prepared by a certified arborist stating the type of protection needed, steps required and approved work within the dripline or other designated protected areas near protected trees. The tree protection plan shall be included on all construction documents, specification documents, and explained to all contractors and subcontractors working on the subject project.

Tree Protection Zone. A “Tree Protection Zone” means a zone of protection that extends 5 feet from a tree’s dripline, or 15 feet from the trunk (whichever is greater), and shall be clearly delineated with protective fencing and signage in order to clearly identify the area where no construction work is to take place.
(Ord. 618 § 11 (part), 2001; Ord. 608 § 3 (part), 2000: Ord. 322 § 1, 1973; prior code § 100.7.20)

14.04.030 Procedure—In subdivisions.

A. All subdivision maps or divisions of land filed for tentative approval shall include an arborist report prepared by a certified arborist that clearly designates all protected trees and/or groves upon the property proposed for subdivision or division. Those protected trees and/or groves proposed to be removed and those protected trees and/or groves proposed to be retained shall be shown by canopy size and species on the map. Any proposed additions or replacements of protected trees and/or groves shall also be indicated by canopy size at maturity and species on the map, and will require a tree removal permit.

B.      Should a protected tree require removal in a subdivision, a protected tree removal permit must be submitted. A protected tree removal permit application, which can be obtained from the Building & Planning Department, must include the following:

1. A site plan including a map showing the location, species, and size of the tree(s);

2. An arborist report, which shall include a discussion of those matters city council shall consider in determining conditions to be imposed under this chapter as outlined in item J. of section

14.04.030;

3. A letter indicating why removal is requested;

4. A statement indicating the number of replacement trees to be replanted and the nature of any associated maintenance; and
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5. The appropriate fee as determined by the townTown. The fee is based on valuation; however, additional fees may be required based upon a determination by the town Town‐qualified arborist, or if a public notice must be prepared (depending on the scope and nature of the proposed removal).

C. Within three business days of submitting an application for tree removal under this section, the property owner shall mail written notice to all the owners of record of each of the adjacent residential parcels, utilizing the mail notice template provided by the townTown, which shall include the following information:

1. Notice that a tree removal permit application has been submitted;

2. The anticipated start and end dates for removal;

3. Contact information for the town Town planning division; and

4. Contact information for the property owner.

D. Within one business day of completion of mailing, the property owner shall submit to the Building and Planning Department a completed and signed affidavit of mailing, utilizing the affidavit of mailing template provided by the townTown.

E. A town Town‐qualified arborist shall review the arborist report to determine the accuracy of the report, and provide the findings to the city engineer. The city engineer shall, at the time the tentative subdivision map or application for division of land comes up for consideration by the city council or appropriate city officer, render their opinion as to whether the tree removal and/or replacement proposal should be accepted, rejected or modified. In rendering such opinion, they shall take into consideration the analysis of the town Town‐qualified arborist and recommendations adopted by resolution of the city council from time to time as to which trees are desirable and which undesirable for various purposes and locations within the town.

F. The city council or other appropriate city officer shall, at the time of making its tentative approval, consider the report of the city engineer and any other pertinent information and either accept, reject, or modify the tree removal and/or replacement proposal made by the property owner under this chapter. A decision made by a city officer may be appealed to the City Manager. The City Manager or designee shall hear the appeal and issue a decision, which shall be final and not appealable to the City Council.

G. The developer of the property shall, as a condition to the final approval of the subdivision map or division of land, agree in writing to comply with such conditions imposed under this chapter and secure the performance of such agreement in the same manner required by the "Subdivision Map Act" of the state of California for the installation of any improvement on the property involved. The agreement shall contain any conditions imposed by the town Town in regards to maintenance of existing protected trees and replacement of removed protected trees.

H. The developer shall be required, as a part of the agreement, to submit a tree protection plan and establish a tree protection zone prior to the commencement of site development for any protected trees and/or groves finally agreed to be retained. The tree protection zone will extend 5 feet from a tree’s dripline, or 15 feet from the trunk (whichever is greater), and shall be clearly delineated with fencing and signage in order to clearly identify the area where no work is to take place. The -141-

tree protection plan shall clearly define the steps to protect the root systems of such protected trees and/or groves during all periods of construction of improvements and/or grading operations.

I. Final approval of a map by the town Town shall constitute a permit to remove any protected trees and/or groves designated on the tentative map as approved. Any changes in the protected trees and/or groves to be removed as so designated and approved by the town Town shall require an application for a new permit under the provisions of this chapter.

J. The city council shall consider the following matters in determining conditions to be imposed under this chapter:

1. The type of trees, their desirability in the neighborhood, and the condition of the trees with respect to disease, danger of falling, proximity to existing or proposed structures, and interferences with utility services;

2. Necessity to remove trees in order to construct proposed improvements to allow reasonable economic enjoyment of the property upon which trees are located. The following should be considered in this context:
a. Mitigation measures proposed to minimize the adverse impact; b. Alternative plans for development which will lessen the adverse impact on the removal; c. Assessment of the relationship between local short term benefit and detriment to the long term benefit and detriment (e.g., replacing open space with housing);

3. Topography of land and the effect of tree removal on erosion, soil retention, and the diversion or increased flow of surface waters;

4. Number of trees existing in the neighborhood on improved property and the effect of the tree removal on the neighborhood;

5. Good urban forestry practices, including, but not necessarily limited to, implementing tree protection and mitigation measures to ensure no net loss canopy cover will occur.

K. The city council may, upon motion, exclude any subdivision from the operation of this article which is subject to site or architectural control sufficient to accomplish the purpose of this chapter. (Ord. 618 § 11 (part), 2001; Ord. 608 § 3 (part), 2000: Ord. 322 § 1, 1973; prior code § 100.7.30)

14.04.040 Procedure—Improved land other than subdivisions.

A. All protected tree removals require review and approval from the Building & Planning Department (by the Architecture and Design Review Board or administratively at the staff level). A tree removal permit must be obtained from the Building & Planning Official, or designee.

B. Protected tree removal on improved land, not described in subsection A of this section, shall comply with the provisions of Chapter 17.56.

C.   A tree removal permit, issued by the Building & Planning Department, must include the following:

1. A site plan showing the location, species, and size of the tree(s);

2. An arborist report, which shall include a discussion of those matters city council shall consider in determining conditions to be imposed under this chapter as outlined in item F. of section

14.04.040;
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3. A letter indicating why removal is requested,

4. A statement indicating the number of replacement trees to be replanted and associated maintenance.

5. The appropriate fee as determined by the townTown. The fee is based on valuation; however, additional fees may be required based upon a determination by the town Town‐qualified arborist, or if a public notice must be prepared (depending on the scope and nature of the proposed removal).

D. Within three business days of submitting an application for a tree removal permit under this section, the property owner shall mail written notice to all the owners of record of each of the adjacent residential parcels, utilizing the mail notice template provided by the townTown, which shall include the following information:

1. Notice that a tree removal permit application has been submitted;

2. The anticipated start and end dates for removal;

3. Contact information for the town Town planning division; and

4. Contact information for the property owner.

5. Within one business day of completion of mailing, the property owner shall submit to the building division a completed and signed affidavit of mailing, utilizing the affidavit of mailing template provided by the townTown.

E. Notwithstanding the provisions of subsection A of Section 17.56.050, the Building & Planning Official, or designee, may issue a permit for the removal of a protected tree described in such subsection A if the owner or occupant of the real property on which the protected tree is located presents a written opinion from a certified arborist that, because of disease or damage or danger to persons or property, the protected tree needs to be removed within the next thirty days. All written opinions presented to the town Town shall be reviewed by a townTown‐qualified arborist to verify the accuracy and assessment of the subject tree(s) identified for removal prior to approval of the Building & Planning Department.

F. The Building & Planning Department shall consider the following in determining their approval or denial:

1. Type of tree;

2. Desirability in the neighborhood;

3. Condition of the tree with respect to disease, danger of falling, or interference with utility services;

4. Effect on erosion, soil retention, and the diversion or increased flow of surface water;

5. Good forestry practices;

6. Number of existing trees to remain;

7.       Alternatives available.
(Ord. 654 §§ 16 (part), 17, 2004; Ord. 618 § 11 (part), 2001; Ord. 608 § 3 (part), 2000: Ord. 346 § 3, 1977; Ord. 322 § 1, 1973; prior code § 100.7.33)
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14.04.050 Procedure—Unimproved land other than subdivisions.

A. No protected tree removal shall be permitted on any vacant unimproved land without a tree removal permit.

B.   As part of the permit process, the following documents must be submitted:

1. A site plan showing the location, species, size of the tree(s);

2. An arborist report, which shall include a discussion of those matters city council shall consider in determining conditions to be imposed under this chapter as outlined in item F. of section

14.04.040;

3. A letter indicating why removal is requested,

4. A proposal for replanting and maintenance.

5. The appropriate fee as determined by the townTown. The fee is based on valuation; however, additional fees may be required based upon a determination by the town Town‐qualified arborist, or if a public notice must be prepared (depending on the scope and nature of the proposed removal).

C. Within three business days of submitting an application for tree removal, under this section, the property owner shall mail written notice to all the owners of record of each of the adjacent residential parcels, utilizing the mail notice template provided by the town, which shall include the following information:

1. Notice that a tree removal permit application has been submitted;

2. The anticipated start and end dates for removal;

3. Contact information for the town Town planning division; and

4. Contact information for the property owner.

5. Within one business day of completion of mailing, the property owner shall submit to the building division a completed and signed affidavit of mailing, utilizing the affidavit of mailing template provided by the townTown.

D. The Building & Planning Department shall consider the following in determining their approval or denial:

1. Type of tree;

2. Desirability in the neighborhood;

3. Condition of the tree with respect to disease, danger of falling, or interference with utility services;

4. Effect on erosion, soil retention, and the diversion or increased flow of surface water;

5. Good forestry practices;

6. Number of existing trees to remain;

7. Alternatives available.
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(Ord. 654 § 16 (part), 2004; Ord. 618 § 11 (part), 2001; Ord. 608 § 3 (part), 2000: Ord. 346 § 4, 1977; Ord. 322 § 1, 1973; prior code § 100.7.37)

14.04.055 Replacement
A.   Protected trees approved for removal shall be replaced, unless the finding is made at the time of granting an application that the site is inadequate to support the required number of replacement trees, as follows:

1. Protected trees that prevent reasonable development shall be replaced within one year of removal by a minimum of one tree recommended or approved by the town Town‐qualified arborist. Minimum replacement tree size shall be twenty four inch box. In the event that the replacement tree dies, continuing responsibility on the part of the property owner to replace the tree with one of comparable size, within six months of the replacement tree's demise, shall exist;

2. Continuing maintenance of required replacement trees by the property owner(s) or their successors shall be required.  The property owner shall be required to notify any subsequent property owner of the continuing obligation to maintain the replacement trees.

B. In cases where a site cannot support all of the trees required for replacement purposes, the applicant may instead pay in‐lieu fees to the Town’s tree replacement fund according to a fee schedule established by resolution of the Building & Planning Department.

14.04.060 Violation—Penalty.

A. Any person who damages or destroys a tree, in violation of this chapter or any agreement entered into pursuant thereto, shall be guilty of a misdemeanor. In addition, if any tree has been so damaged or destroyed, the Building & Planning Official may require that such tree be restored to its former condition under the direction of, and to the approval of, a Town Town‐qualified arborist.

B.   iIf the tree is not capable of being restored to its former condition, or has been destroyed, a penalty will be assessed of either $150 per inch of trunk diameter of the removed tree, or the appraised value of the removed tree as determined by the  10thmost recent Eedition of the International Society of Arboriculture (ISA) Guide for Plan Appraisal, whichever is greater. An additional fee may be assessed to mitigate damages caused during the tree removal. In addition, a replacement tree will be required that is a minimum of 36‐inch box size of a species approved by the Town, and that it be replaced within six months.

C. The Building & Planning Official shall base their approval upon the similarity of size and species of the replacement tree to the tree which was destroyed unless such a replacement would create great hardship to such person subject to the requirements of this title.

D. The Building & Planning Official shall be responsible for making any necessary factual determination under this section and shall put such determination in writing and mail it to the person alleged to have caused the violation.

E. Whenever the person in receipt of a penalty for a violation of this Chapter disagrees with the determination of the Building & Planning Official regarding the tree(s) in question, that person may file a written request with the Building & Planning Official for reconsideration of their decision.

Such request must be filed within ten (10) days after the City has mailed to the applicant a written -145-

notice of the Building & Planning Official’s initial determination. Upon receipt of the request for reconsideration, the Building & Planning Official shall schedule a hearing to address the appellant’s responsibility for the death of the tree and/or the value of the replacement tree, whichever ground(s) the appellant has cited in their request for reconsideration. The Building & Planning Official shall consider the evidence submitted at the hearing and shall issue their final decision in writing and mail it to the appellant. The appellant may then appeal this decision to the city council if such appeal is filed in writing within ten (10) days after the Building & Planning Official’s decision was mailed. The city council shall issue a notice to the appellant, which notice shall state that the applicant or permittee may submit any evidence it deems relevant on this matter and that a hearing will be held on a date specified, no earlier than 20 days after the date of the mailing of the notice. The appellant shall be notified in writing of the city council's determination within 30 days of the hearing. The decision of the city council shall be final. Once the decision is final, any penalties and assessments may be collected by the Building & Planning Official. (Ord. 618 § 11 (part), 2001; Ord. 608 § 3 (part), 2000: Ord. 322 § 1, 1973; prior code § 100.7.40)

14.04.070 Withholding or Revocation of Building Permits for Illegal Removal or Relocation of Protected Trees
A. The Building & Planning Department may suspend any permit processing or issue a stop work notice pending city council review, and shall have the authority to request the city council to withhold issuance of building permits, for up to a maximum of six months, and to revoke any building permit issued for which construction has not commenced, with respect to any property on which any protected tree or grove has been removed or relocated in violation of this Chapter

14.04. B. The request to withhold issuance of a building permit shall be made in writing by a staff representative of the Building & Planning Department and shall specifically state the start date and end date of the period of time for which staff has deemed the withholding to be necessary pursuant to Subsection D of this section. The period shall commence on the date the city council first becomes aware of the removal of the tree or grove; provided, however, the authority of the city council to act shall not apply to a purchaser, or to their agent, who in good faith and for valuable consideration has acquired title to the property subsequent to the illegal removal or relocation of any protected trees and prior to the recordation of the notice of intent as provided for in Subsection C of this section.

C. The city council shall notify the applicant or permittee in writing of its intent to act pursuant to this section. The notice shall state that the applicant or permittee may submit any evidence it deems relevant on this matter. A hearing will be held on a date specified in the notice. A copy of the notice shall also be mailed to the owner of the property, if different from the applicant or permittee, as shown on the last equalized assessment roll, and to any person holding a deed of trust, mortgage, or other security interest in the property as revealed by a title search with respect to the property.

A copy of the notice shall also be recorded by the city council.

D. The city council hearing shall be set on a date no earlier than 20 days after the date of the mailing of the notice provided for in Subsection C  above. At the hearing, if the facts indicate, the city council shall make a finding that the applicant or permittee is not a purchaser in good faith and for valuable consideration who acquired title to the property subsequent to the illegal removal or -146-

relocation of the protected tree or grove and prior to the recordation of the notice of intent as provided for in Subsection C  above. In the event the city council finds that a protected tree or grove was removed or relocated in violation of Chapter 14.04 of this Code, it shall specify the length of time the issuance of building permits shall be withheld and whether building permits for which construction has not commenced shall be revoked. In making its determination, the city council shall consider the following factors:

1. The number of trees and/or groves removed or relocated;

2. The size and age of the trees or groves removed or relocated;

3. The knowledge and intent of the owners of the property with respect to the removal or relocation; and

4. Prior violations of law with respect to removal or relocation of protected trees and groves.

The applicant or permittee shall be notified in writing of the city council's determination within 30 days of the hearing.

Chapter 16.44. Urban Lots Splits

16.44.050 Requirements.

8. Landscaping.
a. Protected Tree Removal.
i. No protected tree may be removed on a lot with any development under this chapter unless removal is necessary to construct a dwelling unit that must be allowed under state law. All protected tree removal will be completed in accordance with Chapter 14.04.
ii.  Protected tree. “Protected Tree” means:
a. Any tree species, which measures 18 inches or more in cumulative diameter, measured at four feet six inches above natural grade.
b. Any tree planted as a requirement tree for site development, tree permit condition, landscape plan removal replacement, or other designated condition by the city.
c. “Protected tree” does not include any tree grown or held for sale by a licensed nursery.
iii. A protected tree may only be removed under subsection J.8.a. above if it is completed in accordance with Chapter 14.04 and any associated tree replacement requirements.
b. Evergreen landscape screening must be planted and maintained between each dwelling and adjacent lots (but not rights of way) as follows:
i. At least one fifteen‐gallon size plant shall be provided for every five linear feet of exterior wall. Alternatively, at least one twenty‐four‐inch box size plant shall be provided for every ten linear feet of exterior wall. -147-

In Town‐designated Wildland‐Urban Interface areas, trees used for screening must comply with Chapter 15.21.
ii. Plant specimens must be at least six feet tall when installed. As an alternative, a solid fence of at least six feet in height may be installed. In Town‐designated Wildland‐Urban Interface areas, trees used for screening must comply with Chapter 15.21.
iii. All landscaping must be drought‐tolerant.

Chapter 17.56 LANDSCAPING

17.56.010 Purpose.

A. The general purpose of this chapter is to promote the public health, safety, and welfare by facilitating the proper and timely landscaping of all properties in keeping with the character of the Town and by insuring that substantial changes in existing landscaping are appropriate to the needs and standards of the community.

B. Additional, specific purposes of this chapter are (i) to reduce fire hazards caused by uncleared wild grasses, undergrowth, and dead growth, (ii) to mitigate erosion and storm water run‐off and to protect water quality, and (iii) to encourage efficient water use through proper landscape design and appropriate plant selection for the local climate. (However, nothing in this chapter shall be deemed to mean that property developed in accordance with the provisions of this chapter is entitled to water in excess of that allocated for such property during periods of water rationing.) (Ord. 639 § 26 (part), 2003)
(Ord. No. 757, § 17, 10‐14‐2019)

17.56.020 Definitions.

For the purpose of this chapter:

Certified Arborist. “Certified Arborist” means an arborist certified by the International Society of Arboriculture (ISA) with current certification standing, meeting all current renewal requirements and continuing education requirements; or an American Society of Consulting Arborists (ASCA) consulting arborist with current membership standing, meeting all continuing education requirements. "Grove" means a group of at least five woody plants of the same type with a diameter of six inches or more measured at four feet, six inches above natural grade. "Landscaped" means having had landscaping installed.
"Landscaping" means any one or combination of the following:

1. Installing or planting trees, shrubs, grass, or ornamental or other vegetation;

2. Installing or constructing decks, fences, walls, arbors, lighting fixtures, statuary, fountains, ponds, or other ornamental structures;

3. Arranging the land and the elements thereon by grading (which includes, but is not limited to, moving, altering, scarifying, excavating, digging, leveling, filling, tunneling, or scraping the natural topography);
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4. Removing any tree (which includes, but is not limited to, any pruning, cutting, or damage to any portion of a tree which in the opinion of a Town Town‐qualified arborist, shall in effect permanently compromise the health and safety of a tree);

5. Demolishing any swimming pool;

6. Altering or potentially altering drainage or creating or potentially creating a soil erosion problem.

7. Installing or constructing green infrastructure measures, including, but not limited to, rain gardens and pervious pavement.

Protected Tree. “Protected Tree” means:

1. Any tree species, which measures 18 inches or more in cumulative diameter, measured at four feet six inches above natural grade.

2. Any tree planted as a requirement tree for site development, tree permit condition, landscape plan removal replacement, or other designated condition by the city.

3. “Protected tree” does not include any tree grown or held for sale by a licensed nursery.

Tree. "Tree" means any woody plant which has a trunk with a diameter of six inches or more measured at four feet, six inches above natural grade.

Town‐qualified arborist. “Town‐qualified arborist” means any certified arborist authorized to work on behalf of the Town of Hillsborough.

The foregoing notwithstanding, nothing in these definitions shall be deemed to preclude leaving the land in its natural state (if kept clear of dead vegetation) so long as that is consistent with the purposes set forth in Section 17.56.010.
(Ord. 639 § 26 (part), 2003)
(Ord. No. 757, § 18, 10‐14‐2019; Ord. No. 761, § 18, 1‐13‐2020)

17.56.040 Water conservation.

Landscaping shall comply with the Town’s water conservation landscaping requirements as outlined in Chapter 15.29 of the Hillsborough Municipal Code. (Ord. No. 689, § 4, 6‐14‐2010)

17.56.050 Landscaping projects subject to review and permitting.

Landscaping projects subject to the review and permit procedures of this chapter are the following:

A. Removing a protected tree as defined in this chapter. (Such tree removal shall also comply with Title 14.)
B. Adding or moving fifty cubic yards or more of dirt or soil.

C. Rehabilitating more than ten thousand square feet of landscaped area.

D. Installing landscaping for a residence being newly constructed (either on a previously unimproved lot or on a lot whose previous residence has been torn down). -149-

E. Synthetic grass in areas visible from the public right‐of‐way.

F. Removal of a grove of trees.
(Ord. 683 § 11, 2008: Ord. 654 § 26, 2004; Ord. 640 § 5 (part), 2003; Ord. 644 § 1, 2003; Ord. 639 § 26 (part), 2003)
(Ord. No. 715, § 11, 6‐9‐2014; Ord. No. 761, § 19, 1‐13‐2020) -150-

TOWN OF HILLSBOROUGH
San Mateo County
1600 Floribunda Avenue
Hillsborough, CA 94010
5 CONSENT CALENDAR

CITY COUNCIL MEETING
MARCH 13, 2023

AGENDA STAFF REPORT
ITEM SUBJECT: RESOLUTION TERMINATING THE LOCAL EMERGENCY RELATED TO THE

DECEMBER/EARLY JANUARY WINTER STORMS/FLOODING EVENT AND FINDING THIS ACTION EXEMPT FROM CEQA PURSUANT TO CEQA GUIDELINE 15378 SUMMARY: On December 31, 2022, the Town of Hillsborough experienced severe flooding consistent with localized flooding events experienced throughout San Mateo County and the San Francisco Bay Area. Two days later, The Director of Emergency Services proclaimed the local emergency based on several factors:

1. Extreme and unprecedented levels of rainfall in the San Francisco Bay Area, which meteorologists referred to as an "atmospheric river," occurred over the New Year's Eve weekend.

In particular, during the twenty-four- hour period beginning early on New Year's Eve Day, an average of approximately 5.8 inches of rain fell in San Mateo County.

2. This extraordinary level of rainfall and associated severe weather have resulted in flooding and other impacts that have created conditions of disaster and extreme peril to the safety of persons and property within the Town of Hillsborough.

3. Among other things, vehicle traffic has been seriously disrupted, with major roads within the Town of Hillsborough intermittently closed by the severe weather. In particular, there have been prolonged closures at Sandra Road and the 1200 block of Black Mountain Road due to the extreme rain, mudslides and associated severe weather.

4. Other public services, including sewer and water infrastructure and access to fire and other emergency services, have been put at risk of failure by the weather.

5. Hillsides in certain sections of the Town appear to be slipping and creeks are overflowing leading to safety risks for nearby residents.

Pursuant to California Government Code section 8630(c), the City Council and City Manager must review the need for continuing the local emergency at least once every 60 days until the governing body terminates the local emergency. The City Council and City Manager are obligated to proclaim the termination of the local emergency at the earliest possible date that conditions warrant. (Gov.

Code 8630(d).) The City declared the Local Emergency based on several factors that have now been resolved. The extreme peril resulting from the flooding has been addressed. As described in the attached letter from the County of San Mateo Department of Emergency Management (DEM), both FEMA and the State have defined the storm emergency period as concluding on January 31, 2023. There is still significant work to do to rehabilitate public property damaged by the storm. San -151-
Agenda Staff Report - Hillsborough City Council
March 13, 2023

Mateo County DEM continues to work with FEMA and CalOES on long-term recovery so that they may proceed with assisting cities and special districts in recovering some of the extraordinary costs associated with the storm. We have just recently received confirmation that San Mateo County has been designated for across-the-board Public Assistance. This Public Assistance now extends to repair or replacement of disaster damaged private and public structures and facilities. The City is also eligible for reimbursement for expenses incurred during the storm events including overtime, materials and outside contractor expenses. The circumstances necessitating the local emergency have since ceased, making the meeting of the City Council on March 13, 2023 the “earliest possible date that conditions warrant” to terminate the local emergency.

FISCAL IMPACT: The fiscal impact is to be determined. The Town will seek to recover expenses related to preparation, repair, and recovery from this storm event.

ENVIRONMENTAL ISSUES: The proposed action is exempt from environmental review pursuant to the California Environmental Quality Act (CEQA) Guidelines sections 15378(b)(2) and 15378(b)(5) as ongoing administrative or organizational activities that will not result in direct or indirect physical changes in the environment.

ATTACHMENTS:

1. Resolution

2. Letter from San Mateo County Department of Emergency Management dated February 15, 2023
PREPARED BY: Ann Ritzma, City Manager
RECOMMENDATION: Adopt the resolution terminating the local emergency related to the December/January winter storms/flooding event and find the action exempt from CEQA pursuant to CEQA Guideline 15378.
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RESOLUTION NO. 23-

A RESOLUTION OF THE CITY COUNCIL OF THE TOWN OF HILLSBOROUGH

TERMINATING THE LOCAL EMERGENCY RELATED TO THE

DECEMBER/JANUARY WINTER STORMS/FLOODING EVENT AND FINDING THIS ACTION EXEMPT FROM CEQA PURSUANT TO CEQA GUIDELINE 15378 WHEREAS, Government Code Section 8630 and Chapter 2.24 of the Hillsborough Municipal Code authorize the City Manager, acting as the Director of Emergency Services (“Director”) of the Town of Hillsborough (“Town”), to proclaim a local emergency when the Town is threatened by conditions of disaster or extreme peril to the safety of persons and property within the Town that are or are likely to be beyond the control of the services, personnel, equipment, and facilities of the Town and which require the combined forces of other political subdivisions to combat and the City Council is not in session; and
WHEREAS, on January 4, 2023, the Director proclaimed a local emergency based on conditions of extreme peril to the safety of persons and property within the Town due to the damage and impacts resulting from the extreme and unprecedented levels of rainfall and associated severe weather over the preceding days; and
WHEREAS, on January 9, 2023, the City Council adopted a resolution ratifying and extending the Director’s proclamation of a local emergency; and WHEREAS, Government Code section 8630(c) requires that the existence of a local emergency be re-confirmed at least every 60 days, or the existence of a local emergency shall terminate; and
WHEREAS, the situation resulting from said conditions of extreme peril is now deemed to be within control of the normal protective services, personnel, equipment, and facilities of and within the Town of Hillsborough; and WHEREAS, the City Council must proclaim the termination of the local emergency at the earliest possible date that conditions warrant under Government Code 8630(d).

NOW, THEREFORE, BE IT RESOLVED that the City Council of the Town of Hillsborough hereby proclaims the termination of the local emergency related to the December/January winter storms/flooding event and finding this action exempt from CEQA pursuant to CEQA guideline 15378.

Mayor of the Town of Hillsborough
Attest: City Clerk
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ATTACHMENT 1
2 This resolution was adopted by the City Council of the Town of Hillsborough at its regular meeting held on the 13th day of March 2023, by the following vote of the members thereof:

AYES: Councilmembers
NOES: Councilmembers
ABSENT: Councilmembers
ABSTAIN: Councilmembers
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Donald J. Mattei
Interim Director
County Government Center
501 Winslow St.

Redwood City, CA 94063
[email protected]
February 15, 2023
Dear Colleagues,
Please see below information and important dates related to the late December/Early January Winter Storms Event. This information is the most pertinent and contains supporting information.

Important dates
Both FEMA and the State have defined the storm emergency period from December 27th, 2022 to January 31st, 2023. Any damage that occurred February 1st or later, even if it can be correlated as having a root cause in the storm period, will not be considered for any disaster cost recovery related to this storm system.

San Mateo County has not yet been included in the Public Assistance Program from FEMA. DEM is monitoring the status of our request for inclusion daily. Once included in the Public Assistance Program under DR-4683-CA, we will hold an Applicant’s Briefing and the 30-day clock for submissions will start. We can request an additional 30 days if our cities/towns and special districts are not finished submitting during the first 30 days.

The Disaster Recovery Center for residents and businesses located in San Mateo County opened on Thursday, February 9th. County services at the DRC will be concluded on February 16th. State services will conclude on February 22nd. FEMA intends to extend service at the DRC through March 16th.

See below for the important disaster relief actions that occurred during the event along with supporting references.

San Mateo County Proclamation Information
January 2
nd
, 2023 - County Executive and Director of Emergency Services, Mike Callagy proclaims a local state of emergency under Governments Code Section 8558 and County ordinance Chapter 2.46. The proclamation is written to be inclusive of all jurisdictions and special districts as well as the county and unincorporated areas.

January 3rd, 2023 - The Board of Supervisors ratifies the proclamation of Local Emergency. The proclamation is to be reviewed for continuation at 60-day intervals and will remain in effect until rescinded. -155-
ATTACHMENT 2
State Proclamation Information
January 4
th
, 2023 - Governor Newsom proclaims under the California Emergency Services Act, and in particular, Government Code section 8625, that a state of emergency exists throughout California.

January 16th, 2023 - Governor Newsom issues State Executive Order N-1-23 bolstering the state’s abilities to deal with the consequences of the storm.

Federal Declaration information
California Severe Winter Storms, Flooding, and Mudslides (EM-3591-CA) Incident Period: January 8, 2023 - January 31, 2023
The Secretary of FEMA determines that the damages in California are significant and approves an emergency declaration on January 9, 2023
California Severe Winter Storms, Flooding, Landslides, and Mudslides (DR-4683-CA) Incident Period: December 27, 2022 - January 31, 2023
Major Disaster Declaration was declared by President Biden on January 14, 2023; at that time the Stafford Act (42 U.S.C. 5121) was enacted for Individual assistance and public assistance in debris removal and emergency protective measures (category A and B claims).

Amendment 5 of the declaration dated January 26th added San Mateo County for Individual Assistance -156-

TOWN OF HILLSBOROUGH
San Mateo County
1600 Floribunda Avenue
Hillsborough, CA 94010
6 CONSENT CALENDAR

CITY COUNCIL MEETING
MARCH 13, 2023

AGENDA STAFF REPORT
ITEM SUBJECT: RESOLUTION ADOPTING REVISED TOWN POLICY 401: CHANGE OF ADDRESS PURSUANT TO CEQA GUIDELINE 15378
SUMMARY: The Town's Change of Address Policy (Policy 401) was last revised on July 31, 1997.

As written, residents who would like a different number assigned to their home could choose their own number and go through a request process. The request could take several weeks to months for approval depending on the address involved and any conflicts discovered in the review.

Engineering staff review requests with other departments including Police, Fire, Planning and Building, and also seeks post office approval for mail and delivery services. The use of this policy has evolved as additional addresses have been assigned to Accessory Dwelling Units (ADUs).

Although the policy does not currently address ADUs, Town staff has historically treated all address requests for ADUs consistently by assigning an address to the ADU so that it is associated with the primary home or address on the property. Town staff does this by assigning an "A" address to the ADU. These unique addresses are utilized for access to the structures on the parcel and for assigning utility service, and mail and parcel delivery. Proper address assignments are critical for emergency services for quick response to calls to help navigate emergency responders to the correct structure within a parcel.

Town staff are bringing this item forward to allow the City Council to either formalize the Town’s policy related to ADU addresses, or consider improvements to the policy for ADUs located on larger parcels and estates, that may have multiple streets that provide access to that particular parcel. As proposed in the revision, addresses derived from the abutting streets for that parcel may instead be assigned by the Engineering Department to ADU’s, rather than assigning an "A" address associated with the primary home’s street. The assignment of a new address does not constitute a subdivision of land, or grant additional connections of underground utilities such as sewer or water service which is defined by code. A revised change of address policy is included as Attachment 2.

FISCAL IMPACT: The costs of address changes are paid by the requester.

ENVIRONMENTAL ISSUES: The action is categorically exempt from the California Environmental Quality Act according to Section 15378 of the California Code of Regulations.

ATTACHMENTS:

1. Resolution

2. Policy 401 (redline)
PREPARED BY: Paul Willis, Director of Public Works
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Agenda Staff Report - Hillsborough City Council
March 13, 2023

RECOMMENDATION: Adopt the resolution adopting revised Town Policy 401: Change of Address.
-160-
RESOLUTION NO. 23-

RESOLUTION OF THE CITY COUNCIL OF THE TOWN OF HILLSBOROUGH ADOPTING REVISED TOWN POLICY 401: CHANGE OF ADDRESS PURSUANT TO CEQA GUIDELINE 15378
WHEREAS, the Town of Hillsborough (“Town”) utilizes a policy for considering requests for address changes; and
WHEREAS, the existing policy, Policy 401, was approved on July 31, 1997 and is need of revision as the Town’s housing needs have evolved; and WHEREAS, Accessory Dwelling Units (ADUs) placed on larger lots may have other streets which can provide access other than the primary address; and WHEREAS Engineering, Planning, Building, and CCFD staff reviewed and revised Policy 401; and
WHEREAS, staff recommends approval of the revisions to Policy 401: Change of Address.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the Town of Hillsborough hereby adopts revised Town Policy 401: Change of Address, attached hereto as Exhibit A.

Mayor of the Town of Hillsborough
Attest: City Clerk
This resolution was adopted by the City Council of the Town of Hillsborough at its regular meeting held on the 13th day of March 2023, by the following vote of the members thereof:

AYES: Councilmembers
NOES: Councilmembers
ABSENT: Councilmembers
ABSTAIN: Councilmembers
-161-
ATTACHMENT 1

TOWN OF HILLSBOR OUGH PERSONNEL
POLICY
POLICY 401 LAST REVISED 7/31/97
SUBJECT: CHANGE OF ADDRESS
PURPOSE: Outline general guidelines for changing street addresses.

STATEMENT OF POLICY:

Change of existing addresses for existing homes:

To minimize staff time spent changing Town records, files and maps, approved address changes will only be processed on a quarterly basis to be effective on the first day of either January, April, July or October.

Requests for address changes will be considered by Town staff upon submittal of a request and the application processing fee. A schedule of administrative fees is available from the Planning and Building and Planning Department.

Changes in address may be denied when the Fire or Police Departments express a concern about the public's safety.

For new Accessory Dwelling Units (ADUs):

With regard to ADUs, any ADU must have a street address consistent with the street address for the main house as an ADU is accessory to the main house.

For example, if the main house has a street address of 1234 Main Street, the ADU must also have a street address of 1234 Main Street and shall generally be referred to as Unit A.
- An exception to the ADU address may be granted if:
o The parcel abuts more than one street or right-of-way, and. o The ADU is accessed from a driveway originating from a different street or right-of-way.

Staff can approve the request provided the new address is in numerical sequence with the other addresses on the street.
1 The applicant will be required
1 The assignment of a new address does not constitute a subdivision of land or grant additional connections of underground utilities such as sewer or water service which is defined by code. -162-
ATTACHMENT 2
POLICY 401 CHANGE OF ADDRESS
as a standard condition of approval to install an illuminated display of the address number visible from the street. The location of the address display is subject to approval by the Fire and Police Departments.

If the applicant does not wish to wait for the quarterly approval and wants the change to be processed and effective as soon as possible, the applicant shall bear the cost of the Town staff time required to change the records, files and maps.

PROCEDURE
Applicant must submit to the Engineering Division of Public Works Planning and Building Department a written request with the reasons for the address change, along with the processing fee. The address change request is reviewed by Town staff. If approved, the applicant shall receive written notice of the approval. The Town shall also inform the affected County agencies and public utilities about the change.

If the applicant wishes to appeal the denial of the address change, the City Council will consider the appeal on payment of an appeal fee. -163-

TOWN OF HILLSBOROUGH
San Mateo County
1600 Floribunda Avenue
Hillsborough, CA 94010
7 PUBLIC HEARING

CITY COUNCIL MEETING
MARCH 13, 2023

AGENDA STAFF REPORT
ITEM SUBJECT: PUBLIC HEARING TO CONSIDER AND ADOPT RESOLUTION APPROVING (A) COMCAST’S PERMIT APPLICATIONS FOR THE INSTALLATION OF SEVEN (7) BATTERY CABINETS (UTILITY BOX OUTDOOR FIXTURES) AT LOCATIONS IN THE PUBLIC RIGHT OFWAY (TWO (2) CABINETS NEAR1025 VISTA ROAD, TWO (2) CABINETS NEAR 1305 HAYNE ROAD, ONE (1) CABINET NEAR 1025 TOURNAMENT DRIVE, AND TWO (2) CABINETS NEARS 1020 CRYSTAL SPRINGS ROAD); AND (B) THE CITY ENGINEER’S RECOMMENDATION TO GRANT COMCAST’S REQUEST FOR AN EXCEPTION TO POLICY NO. 19-01 FOR THESE INSTALLATIONS, PURSUANT TO CEQA DETERMINATIONS SUMMARY: Comcast is seeking to place seven (7) battery cabinets in the Town’s public right-ofway to fully implement its responsibilities under the California Public Utilities Commission's (CPUC) Wireline Resiliency mandate. In February 2021, the CPUC adopted Decision 21-02-029, Decision Adopting Wireline Provider Resiliency Strategies. The decision generally requires facilities-based wireline providers to develop comprehensive resiliency strategies to prepare for catastrophic disasters and power outages and to file resiliency plans with the CPUC. One of the requirements in the decision is a 72-hour backup power requirement for the wireline providers’ facilities in Tier 2 and Tier 3 High Fire Threat Districts providing service (meaning 9-1-1, voice, text messages, or data services). Portions of the Town are in these districts. However, the CPUC acknowledges that there may be grounds for specific facilities to be excluded from the 72-hour backup requirement, such as infeasibility or due to specific existing federal, state, tribal or local laws. Comcast holds a state video franchise issued by the CPUC under the Digital Infrastructure and Video Competition Act of 2006 to provide video services within the territorial limits of the Town. Comcast affiliates also provide voice and data services over this network under separate CPUC authorizations. Public Utilities Code Section 5885 requires the Town to allow Comcast to install, construct, and maintain a network within public rights-of-way under the same time, place, and manner as the provisions governing telephone corporations under applicable state and federal law, including, but not limited to, the provisions of Public Utilities Code Section 7901.1.

Hillsborough Municipal Code (HMC) requires a permit, with approval of the City Council, for placement of outdoor fixtures in the public right-of-way, including utility boxes. Among other things, utility boxes are subject to location and screening requirements as specified in City Council Policy No. 19-01. Comcast’s proposed cabinets are utility boxes but they exceed the size limits for equipment volume in Policy No. 19-01. However, the HMC provides that the city engineer may recommend an exception be granted in certain circumstances. This public hearing is for the City Council to consider approving the Comcast applications and the city engineer’s recommendation to grant Comcast an exception to the volume requirements in Policy No. 19-01, pursuant to CEQA determinations.
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Agenda Staff Report - Hillsborough City Council
March 13, 2023

1. The Applications
On April 11, 2022, Comcast submitted four (4) applications for permits to place seven (7) battery cabinets in the public right-of-way near the following locations: 1025 Vista Road; 1305 Hayne Road; 1020 Crystal Springs Road; and 1025 Tournament Drive. As further described and depicted in Attachments 2,3, 4, and 5, the proposed cabinets are each 52" H, 26" W, and 24"D, resulting in a volume of 18.77 cubic feet per cabinet or more than 37.5 cubic feet at each location, with the exception of 1025 Tournament Drive.

According to HMC Section 12.12.010(A)(2), a utility box is an outdoor fixture, and HMC Section

12.12.010(A)(6) defines a utility box as “any transformer, switch box, telephone, cable television box, service panel, meter or similar device.” Thus, Comcast’s proposed battery cabinets meet the definitions of utility box and outdoor fixture. As a result, it was determined that Comcast’s applications are subject to the provisions of HMC Chapter 12.12 (Outdoor Fixtures) and not HMC Chapter 12.04 (Improvements, Excavations and Obstacles).

HMC Section 12.12.030(A) provides that only the City Council may authorize any outdoor fixture in the public right-of-way. HMC Section 12.12.030(B) requires the entity to file with the city engineer an application for a right-of-way fixture approval, accompanied by the respective fee. Comcast filed its four (4) applications and has paid the accompanying fee .

2. Public Hearing Notices
HMC Section 12.12.030(C) requires the city engineer to set applications for outdoor fixtures for public hearing before the City Council and give notice of the hearing under the Type B notice procedure set forth in Chapter 1.20. Notices for the public hearing were sent to adjoining neighbors as required. Attachment 7 provides a copy of the notice that was sent for each location.

Public comment letters for this conceptual review item, received before 5:00 p.m. on Wednesday, March 8, 2023, are included as Attachment 9. The public comment letter received primarily expressed concerns over parking, traffic, complicated locations, current private projects (including landscaping projects), aesthetics, potential toxic components of the battery cabinets and reduction in property value. Any public comment received after 5:00 p.m. on Wednesday, March 8, 2023, and prior to 4:00 p.m. on Monday, March 13, 2023, will be emailed to the City Council and posted on the Town website.

3. Required Findings for Approval
HMC Section 12.12.020 provides that prior to installation of an outdoor fixture in the public right-ofway, the entity must: (1) obtain a right-of-way fixture approval from the City Council, as set forth in HMC Section 12.12.030; (2) complete design review as set forth in HMC Section 12.12.040, if applicable; (3) comply with the requirements of HMC Section 12.12.050 and any other applicable requirements; and (4) obtain the necessary permits (for example, building permit, electrical permit, encroachment permit) from the Town's building department. a. HMC Section 12.12.030: Right-of-way fixture approval -166-
Agenda Staff Report - Hillsborough City Council
March 13, 2023

Consistent with HMC Section 12.12.030(C), the city engineer reviewed the plans extensively, taking into account the number and location of any other outdoor fixtures located within the public right-of-way in the vicinity of the proposed outdoor fixtures, the likelihood of the Town's need for access to the affected portion of the public right-of-way, the effect that allowing the outdoor fixtures within the right-of-way would have on parking and on traffic safety, and finds no apparent issues or cause for concern.
b. HMC Section 12.12.040: Design review
According to HMC Section 12.12.040, utility boxes do not require design review, but are subject to the requirements of HMC Section 12.12.050. This section is not applicable. c. HMC Section 12.12.050: Other requirements/Policy No. 19-01 Of the requirements listed in HMC Section 12.12.050, only those under subsection (B) and (I) apply to the utility boxes; the others do not.

The battery cabinets are each fifty-two inches (52”) or rather, just under four (4) and a half (.5) feet in height, and therefore, comply with Section 12.12.050(B) which provides that the maximum height limit of any outdoor fixture (whether new or existing/to be modified) located within the rightof-way is eight (8) feet above existing grade at the property line or the pavement grade of the street.

Under HMC Section 12.12.050(l), utility boxes are subject to location and screening requirements as specified and approved by the City Council by resolution in order to safeguard the health, safety and welfare of the residents of the Town, aesthetics and local values. The City Council adopted Policy No. 19-01 in 2019, which establishes location and design standards for wireless communications facilities and other infrastructure deployments, including utility boxes.

Town staff have evaluated the Comcast battery cabinets and determined that they will comply with relevant portions of Policy No. 19-01, except that the policy requires all accessory equipment installed above ground level not to exceed nine (9) cubic feet in volume. Comcast’s proposed battery cabinets do not comply with this volume requirement, and Comcast has asked for an exception. Comcast’s letter requesting such an exception is included in Attachment 6. Approval may only be granted if an exception is also granted (discussed further below).

4. Required Findings for Recommending the Grant of an Exception HMC Section 12.28.010 provides that the exception procedure applicable to Title 12 is in HMC Chapter 1.24. HMC Section 1.24.020 provides that the city engineer shall not recommend an exception unless the city engineer finds that:

A. Granting the exception will not be materially detrimental to the public health, safety or welfare or injurious to other property in the Town, and
B. There are special circumstances or conditions affecting the property that make strict compliance with the subject requirement(s):
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Agenda Staff Report - Hillsborough City Council
March 13, 2023

1. Unjustifiable from a cost/benefit analysis; or

2. Unnecessary for purposes of protecting the public health, safety or welfare; or

3. Unadvisable for purposes of protecting the public health, safety or welfare.

Regarding A, the city engineer finds that granting the exception will not be materially detrimental to the public health, safety or welfare or injurious to other property in the Town. Comcast is a dominant communications services provider within the Town. In the past, the Town residents have reported difficulties with communications during power outages. Allowing for this installation would further Comcast’s compliance with the CPUC’s Wireline Resiliency mandate by providing more reliable essential services which is materially beneficial to the public health, safety and welfare.

Further, Comcast has represented that the battery cabinets are certified by all state and federal standards. Finally, the battery cabinets will be sited in locations that meet all the safety and other requirement of Policy No. 19-01 so the placement will not be injurious to other property in the Town.

Regarding B, special circumstances for an exception can be found to exist if compliance is unjustifiable, unnecessary or unadvisable. The city engineer finds that compliance is unjustifiable from a cost/benefit analysis because although the battery cabinets are larger than typical utility boxes in the Town, Comcast has represented in its exception request letter that the amount of stored energy required to provide seventy-two (72) hours of backup to its network is not compatible with the Town’s current volume limits. Further, Town staff explored the possibility of placing the battery cabinets underground as a way to mitigate noncompliance, however, due to maintenance, accessibility, and safety reasons, placing the cabinets underground was not feasible.

The city engineer also finds that compliance is unnecessary to protect public health, safety or welfare for the reasons discussed above regarding A.

Finally, the city engineer also finds that compliance is unadvisable to protect the public health, safety or welfare. Although the CPUC acknowledges that there may be grounds for specific facilities to be excluded from the 72-hour backup requirement, including due to specific existing federal, state, tribal or local laws, strict compliance is not advisable. If the backup is not approved, Comcast will not meet the 72-hour backup that the CPUC determined was advisable for communities in high fire threat districts. This is unadvisable for the Town because residents rely heavily on Comcast’s services for communications, as there are known deficiencies is alternative communications services (such as wireless) in certain areas of the Town.

For the reasons described above and in particular the public safety benefits, the city engineer recommends allowing Comcast’s request for an exception to Policy No. 19-01.

5. Recommended Conditions of Approval
HMC Section 1.24.030 provides that in conjunction with recommending an exception, the city engineer shall set forth the conditions to which the exception will be subject. Attachment 8 contains such conditions that ensure the installation will be safe and secure the basic objectives of the size requirements for above ground accessory equipment found in Policy No. 19-01. Among the conditions is the requirement that, consistent with HMC Section 12.12.030(D), Comcast execute -168-
Agenda Staff Report - Hillsborough City Council
March 13, 2023

and record an agreement regarding revocable permit setting forth the circumstances under which the applicant shall be required to remove the outdoor fixture from the right-of-way.

FISCAL IMPACT: There is no fiscal impact associated with this agenda item as all costs will be paid by the applicant.

ENVIRONMENTAL ISSUES: Approval: If the City Council adopts a resolution approving one or all of the applications, the resolution provides that the Town acting as the lead agency has determined the project to be Categorically Exempt from CEQA Guideline Section 15303, Class 3 of the CEQA Guidelines, which, in part, reads as follows:
15303. New Construction or Conversion of Small Structures.

Class 3 consists of construction and location of limited numbers of new, small facilities or structures; installation of small new equipment and facilities in small structures; and the conversion of existing small structures from one use to another where only minor modifications are made in the exterior of the structure. The number of structures described in this section are the maximum allowable on any legal parcel. […]
The Town’s finding is consistent with case law. In San Francisco Beautiful v. City & County of San Francisco (2014) 226 Cal.App.4th 1012, 1022, the California Court of Appeal upheld the application of CEQA Guidelines Section 15303 to categorically exempt the approval of the installation of a network of utility boxes for a fiber-optic network.

Denial: If the City Council adopts a resolution denying one (1) or all of the applications, no CEQA analysis is required for any denial. Because CEQA applies only to projects undertaken, supported, or authorized by a public agency, if the City Council denies any of the applications, they are not subject to CEQA. (Public Resources Code §21080(b)(5); CEQA Guidelines §15270).

ATTACHMENTS:

1. Resolution of Approval

2. 1025 Vista Road Application and Site Plans

3. 1305 Hayne Road Application and Site Plans

4. 1020 Crystal Springs Road Application and Site Plans

5.1025 Tournament Drive Application and Site Plans

6. Comcast Exception Letter

7. Public Notices

8. Recommended Approval Conditions

9. Written Public Comment received by 5 p.m. on March 8, 2023 PREPARED BY: Paul Willis, Director of Public Works
RECOMMENDATION:

1. Open the public hearing and receive comments;

2. Close the public hearing; and

3. Adopt the resolution approving the permit applications for 1025 Vista Road; 1305 Hayne Road; 1020 Crystal Springs Road; and 1025 Tournament Drive; and the city engineer’s recommendation -169-
Agenda Staff Report - Hillsborough City Council
March 13, 2023

to grant Comcast’s request for exception to Policy No.19-01 for the installation of seven (7) battery cabinets in the public right-of-way with the conditions set forth in Attachment 8.

ALTERNATIVES:

1. Adopt the resolution approving all or some of the permit applications for the cabinets at 1025 Vista Road; 1305 Hayne Road; 1020 Crystal Springs Road; and 1025 Tournament Drive; and the city engineer’s recommendation to grant Comcast’s request for exception to Policy No. 19-01, with different conditions.

2. Deny all or some of the permit applications for 1025 Vista Road; 1305 Hayne Road; 1020 Crystal Springs Road; and 1025 Tournament Drive; and the city engineer’s recommendation to grant Comcast’s request for exception to Policy No. 19-01. If any applications are denied, Public Utilities Code Section 5885(c)(3) requires that the City Council shall, at the time of notifying the applicant of the denial, furnish to the applicant a detailed explanation of the reason for the denial.

3. Provide preliminary direction to Town staff on appropriate findings for a resolution to be presented for consideration and adoption at a later date. -170-
61236.02002\41078735.1
RESOLUTION NO. 23-

RESOLUTION OF THE CITY COUNCIL OF THE TOWN OF HILLSBOROUGH APPROVING COMCAST’S PERMIT APPLICATIONS FOR THE INSTALLATION OF SEVEN (7) BATTERY CABINETS (UTILITY BOX OUTDOOR FIXTURES) AT LOCATIONS IN THE PUBLIC RIGHT OF-WAY (TWO (2) CABINETS NEAR 1025 VISTA ROAD, TWO (2) CABINETS NEAR 1305 HAYNE ROAD, ONE (1) CABINET NEAR 1025 TOURNAMENT DRIVE, AND TWO (2) CABINETS NEAR 1020 CRYSTAL SPRINGS ROAD); AND GRANTING COMCAST’S REQUEST FOR AN EXCEPTION TO POLICY NO. 19-01 FOR THESE INSTALLATIONS, PURSUANT TO CEQA

DETERMINATIONS
WHEREAS, Comcast holds a state video franchise issued by the California Public Utilities Commission (CPUC) under the Digital Infrastructure and Video Competition Act of 2006 to provide video services within the territorial limits of the Town and Comcast affiliates also provide voice and data services over this network under separate CPUC authorizations; and WHEREAS, Public Utilities Code Section 5885 requires the Town to allow Comcast to install, construct, and maintain a network within public rights-of-way under the same time, place, and manner as the provisions governing telephone corporations under applicable state and federal law, including, but not limited to, the provisions of Public Utilities Code Section 7901.1; and WHEREAS, the Town regulates the placement of outdoor fixtures, including utility boxes, located in the public right-of-way under Chapter 12.12 of the Town of Hillsborough Municipal Code (HMC) and with respect to location and design standards of infrastructure deployments in the public right-of-way, under Policy No. 19-01 Design Standards for Infrastructure Deployments; and
WHEREAS, on April 11, 2022, Comcast submitted four (4) permit applications for the installation of seven (7) battery cabinets (utility box outdoor fixtures) at locations in the public right-of-way (two (2) cabinets near 1025 Vista Road; two (2) cabinets near 1305 Hayne Road; one (1) cabinet near 1025 Tournament Drive; and two (2) cabinets near 1020 Crystal Springs Road) to comply with the 72-hour backup power requirement for wireline providers’ facilities in Tier 2 and Tier 3 High Fire Threat Districts providing 9-1-1, voice, text messages, or data service under CPUC Decision 21-02- 029, Decision Adopting Wireline Provider Resiliency Strategies (Wireline Resiliency mandate); and
WHEREAS, HMC Section 12.12.020(A) requires City Council to hold a public hearing to consider approval for the installation of any outdoor fixture, as set forth in HMC Section 12.12.030; and
WHEREAS, Comcast also seeks an exception to the size limit for accessory equipment installed above ground level under Policy No. 19-01 because the volume -171-
ATTACHMENT 1
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of each proposed battery cabinet is 18.77 cubic feet, exceeding the size limit of nine (9) cubic feet set forth in Policy No. 19-01; and WHEREAS, the City Council may grant an exception upon the city engineer’s recommendation having made the findings in HMC Section 1.24.020; and WHEREAS, the city engineer has made the necessary findings to recommend that City Council grant an exception; and
WHEREAS, on February 23, 2023, the Town mailed owners and occupants of real property adjacent to battery cabinet locations notice of the permit applications pursuant to HMC Section 12.12.030(C) and HMC Section

1.20.010, and published the notice in the San Mateo Daily Journal newspaper; and
WHEREAS, on March 13, 2023, the City Council held a public hearing on the merits of the each of the four (4) permit applications, to consider and adopt the decision resolution on the applications; and
WHEREAS, in determining whether to grant, deny or conditionally approve an application for an outdoor fixture, as defined in HMC Section

12.12.010(A)(2), the City Council must make the findings in HMC Section

12.12.030(C); and
WHEREAS, after hearing presentations from Town staff and receiving all public comments on each of the four (4) permit applications, City Council closed the public hearing to consider approving the Comcast applications and the city engineer’s recommendation to grant Comcast an exception to the volume requirements in Policy No. 19-01, deliberated and considered a decision resolution; and
WHEREAS, Comcast’s permit applications have been assessed in accordance with the authority and criteria contained in the California Environmental Quality Act (CEQA), and the State and local CEQA Guidelines. The Town, acting as lead agency, has determined the each of the proposed cabinets is categorically exempt from further environmental review pursuant to CEQA Guidelines Section 15303, Class 3, New Construction or Conversion of Small Structures.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the Town of Hillsborough, based on the evidence contained in the written record, which includes Comcast’s permit applications for 1025 Vista Road, 1305 Hayne Road, 1020 Crystal Springs Road, and 1025 Tournament Drive; staff report; and other written submissions provided to City Council, and the record of the oral testimony given at the public hearing held on March 13, 2023 (referred to hereafter as the “Decision Record”), hereby renders its decision on Comcast’s permit applications and Comcast’s request for an exception to the volume requirements in Policy No. 19-01, pursuant to CEQA.

1. Decision on permit application and exception request for 1025 Vista Road:
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Council has considered the four (4) factors set forth in HMC Section 12.12.030(C) for deciding whether to approve, conditionally approve or deny the application based on public health, safety and welfare needs, and makes the following findings for conditional approval, based on the Decision Record:

Finding on Factor 1: There is a mailbox and a utility pole located in the right-ofway in the vicinity of the two (2) battery cabinets proposed at 1025 Vista Road.

The battery cabinets will be separated from the mailbox and will be spaced five (5) feet from the utility pole. The proposed battery cabinets will be sufficiently spaced from other outdoor fixtures and infrastructure in the right-of-way at 1025 Vista Road.

Finding on Factor 2: The Town has no immediate need for access to the affected portion of the right-of-way. Any future need for access can be addressed with appropriate permit conditions.

Finding on Factor 3: The proposed battery cabinets will be located in an area that is not used for parking and will not block pedestrian traffic. Therefore, there is no significant effect on parking and on traffic safety.

Finding on Factor 4: The City Council deems compliance with HMC Section

12.12.050(B) and (I), and Policy No. 19-01, relevant to a determination of the public health, safety, and welfare needs. The City Council finds that the proposed battery cabinets comply with these requirements except as to the volume limits in Policy No. 19-01 and authorizes an exception to those limits based on the city engineer’s recommendation.

Each battery cabinet is just under four and a half (4.5) feet in height, and therefore, complies with the maximum height limit of eight (8) feet in HMC Section 12.12.050(B).

The proposed battery cabinets comply with relevant portions of Policy No. 19-01, except the volume limit of nine (9) cubic feet.

The city engineer has recommended approval of Comcast’s request for an exception to the volume requirement based on the following findings required under HMC Section 1.24.020:
1) granting the exception will not be materially detrimental to the public health, safety or welfare or injurious to other property in the Town because it will allow Comcast to provide more reliable essential communications services such as 9-1-1, voice, text messages, or data service during a commercial power outage;
2) requiring strict compliance is unjustifiable from a cost/benefit analysis because although the battery cabinets are larger than typical utility boxes in the Town, the amount of stored energy required to provide seventy-two (72) hours of backup to its network is not compatible with the Town’s current volume limits and undergrounding the batteries is infeasible; and
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3) requiring strict compliance is unadvisable to protect the public health, safety or welfare because if the backup is not approved, Comcast will not meet the 72-hour backup that the CPUC determined was advisable for communities in high fire threat districts.

2. Decision on permit application for 1305 Hayne Road:

Council has considered the four (4) factors set forth in HMC Section 12.12.030(C) for deciding whether to approve, conditionally approve or deny the application based on public health, safety and welfare needs, and makes the following findings for conditional approval, based on the Decision Record:

Finding on Factor 1: There are no other outdoor fixtures located in the right-ofway in the vicinity of the two (2) battery cabinets proposed at 1305 Hayne Road that would pose a threat to the public health, safety, and welfare needs.

Finding on Factor 2: The Town has no immediate need for access to the affected portion of the right-of-way. Any future need for access can be addressed with appropriate permit conditions.

Finding on Factor 3: The proposed battery cabinets will be located in an area that is not used for parking and will not block pedestrian traffic. Therefore, there is no significant effect on parking and on traffic safety.

Finding on Factor 4: The City Council deems compliance with HMC Section

12.12.050(B) and (I), and Policy No. 19-01, relevant to a determination of the public health, safety, and welfare needs. The City Council finds that the proposed battery cabinets comply with these requirements except as to the volume limits in Policy No. 19-01 and authorizes an exception to those limits based on the city engineer’s recommendation.

Each battery cabinet is just under four and a half (4.5) feet in height, and therefore, complies with the maximum height limit of eight (8) feet in HMC Section 12.12.050(B).

The proposed battery cabinets comply with relevant portions of Policy No. 19-01, except the volume limit of nine (9) cubic feet.

The city engineer has recommended approval of Comcast’s request for an exception to the volume requirement based on the following findings required under HMC Section 1.24.020:
1) granting the exception will not be materially detrimental to the public health, safety or welfare or injurious to other property in the Town because it will allow Comcast to provide more reliable essential communications services such as 9-1-1, voice, text messages, or data service during a commercial power outage;
2) requiring strict compliance is unjustifiable from a cost/benefit analysis because although the battery cabinets are larger than typical utility -174-
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boxes in the Town, the amount of stored energy required to provide seventy-two (72) hours of backup to its network is not compatible with the Town’s current volume limits and undergrounding the batteries is infeasible; and
3) requiring strict compliance is unadvisable to protect the public health, safety or welfare because if the backup is not approved, Comcast will not meet the 72-hour backup that the CPUC determined was advisable for communities in high fire threat districts.

3. Decision on permit application for 1020 Crystal Springs Road:

Council has considered the four (4) factors set forth in HMC Section 12.12.030(C) for deciding whether to approve, conditionally approve or deny the application based on public health, safety and welfare needs, and makes the following findings for conditional approval, based on the Decision Record:

Finding on Factor 1: There are no other outdoor fixtures located in the right-ofway in the vicinity of the two (2) battery cabinets proposed at 1020 Crystal Springs Road that would pose a threat to the public health, safety, and welfare needs.

Finding on Factor 2: The Town has no immediate need for access to the affected portion of the right-of-way. Any future need for access can be addressed with appropriate permit conditions.

Finding on Factor 3: The proposed battery cabinets will be located in an area that is not used for parking and will not block pedestrian traffic. Therefore, there is no significant effect on parking and on traffic safety.

Finding on Factor 4: The City Council deems compliance with HMC Section

12.12.050(B) and (I), and Policy No. 19-01, relevant to a determination of the public health, safety, and welfare needs. The City Council finds that the proposed battery cabinets comply with these requirements except as to the volume limits in Policy No. 19-01 and authorizes an exception to those limits based on the city engineer’s recommendation:.

Each battery cabinet is just under four and a half (4.5) feet in height, and therefore, complies with the maximum height limit of eight (8) feet in HMC Section 12.12.050(B).

The proposed battery cabinets comply with relevant portions of Policy No. 19-01, except the volume limit of nine (9) cubic feet.

The city engineer has recommended approval of Comcast’s request for an exception to the volume requirement based on the following findings required under HMC Section 1.24.020:
1) granting the exception will not be materially detrimental to the public health, safety or welfare or injurious to other property in the Town -175-
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because it will allow Comcast to provide more reliable essential communications services such as 9-1-1, voice, text messages, or data service during a commercial power outage;
2) requiring strict compliance is unjustifiable from a cost/benefit analysis because although the battery cabinets are larger than typical utility boxes in the Town, the amount of stored energy required to provide seventy-two (72) hours of backup to its network is not compatible with the Town’s current volume limits and undergrounding the batteries is infeasible; and
3) requiring strict compliance is unadvisable to protect the public health, safety or welfare because if the backup is not approved, Comcast will not meet the 72-hour backup that the CPUC determined was advisable for communities in high fire threat districts.

4. Decision on permit application for 1025 Tournament Drive:

Council has considered the four (4) factors set forth in HMC Section 12.12.030(C) for deciding whether to approve, conditionally approve or deny the application based on public health, safety and welfare needs, and makes the following findings for conditional approval, based on the Decision Record:

Finding on Factor 1: There is a mailbox located in the right-of-way vicinity of the one (1) battery cabinet proposed at 1025 Tournament Drive. The battery cabinet will be separated from the mailbox by more than eight (8) feet. The proposed battery cabinet will be sufficiently spaced from other outdoor fixtures and infrastructure in the right-of-way at 1025 Tournament Drive.

Finding on Factor 2: The Town has no immediate need for access to the affected portion of the right-of-way. Any future need for access can be addressed with appropriate permit conditions.

Finding on Factor 3: The proposed battery cabinet will be located in an area that is not used for parking and will not block pedestrian traffic. Therefore, there is no significant effect on parking and on traffic safety.

Finding on Factor 4: The City Council deems compliance with HMC Section

12.12.050(B) and (I), and Policy No. 19-01, relevant to a determination of the public health, safety, and welfare needs. The City Council finds that the proposed battery cabinet complies with these requirements except as to the volume limits in Policy No. 19-01 and authorizes an exception to those limits based on the city engineer’s recommendation:.

The battery cabinet is just under four and a half (4.5) feet in height, and therefore, complies with the maximum height limit of eight (8) feet in HMC Section 12.12.050(B).

The proposed battery cabinet complies with relevant portions of Policy No. 19-01, except the volume limit of nine (9) cubic feet.
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The city engineer has recommended approval of Comcast’s request for an exception to the volume requirement based on the following findings required under HMC Section 1.24.020:
1) granting the exception will not be materially detrimental to the public health, safety or welfare or injurious to other property in the Town because it will allow Comcast to provide more reliable essential communications services such as 9-1-1, voice, text messages, or data service during a commercial power outage;
2) requiring strict compliance is unjustifiable from a cost/benefit analysis because although the battery cabinet is larger than typical utility boxes in the Town, the amount of stored energy required to provide seventytwo (72) hours of backup to its network is not compatible with the Town’s current volume limits and undergrounding the batteries is infeasible; and
3) requiring strict compliance is unadvisable to protect the public health, safety or welfare because if the backup is not approved, Comcast will not meet the 72-hour backup that the CPUC determined was advisable for communities in high fire threat districts.

5. Exemption from CEQA Guideline Section 15303, Class 3:

The Town acting as the lead agency has determined the project to be Categorically Exempt from CEQA Guideline Section 15303, Class 3 of the CEQA Guidelines.

6. CONDITIONS ON APPLICATION APPROVAL
Based on the Decision Record, City Council finds it appropriate to condition the grant of the applications as set forth in this Resolution and in Exhibit A.

NOW, THEREFORE, BE IT RESOLVED the City Council of the Town of Hillsborough, based on the evidence contained in the Decision Record:
1) Hereby approves Comcast’s permit applications for 1025 Vista Road; 1305 Hayne Road; 1020 Crystal Springs Road; and 1025 Tournament Drive and grants Comcast’s request for an exception to the volume limit in Policy No. 19- 01; and
2) Hereby finds that the Comcast’s permit applications for 1025 Vista Road; 1305 Hayne Road; 1020 Crystal Springs Road; and 1025 Tournament Drive are categorically exempt from further environmental review pursuant to CEQA Guidelines Section 15303, Class, New Construction or Conversion of Small Structures; and
3) Hereby directs Town staff to prepare, execute, and file a CEQA Notice of Determination and a Notice of Exemption with the County Clerk, as appropriate, within five (5) working days of the passage and adoption of this Resolution. -177-
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Mayor of the Town of Hillsborough

Attest: City Clerk
This resolution was adopted by the City Council of the Town of Hillsborough at its regular meeting held on the 13th day of March 2023, by the following vote of the members thereof:

AYES: Councilmembers
NOES: Councilmembers
ABSENT: Councilmembers
ABSTAIN: Councilmembers
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Exhibit A

1. The permittee shall execute and record an agreement regarding revocable permit in a form acceptable to the city attorney setting forth the circumstances under which the permittee shall be required to remove the outdoor fixture from the right-of-way.

2. General Conditions.

A. Compliance Report. Within thirty (30) days after installation of infrastructure deployment(s), the permittee shall deliver to the city manager a written report that demonstrates that its infrastructure deployment(s) as constructed and normally-operating fully complies with the conditions of the permit, including height restrictions, and applicable safety codes, including structural engineering codes. The demonstration shall be provided in writing to the city manager containing all technical details to demonstrate such compliance, and certified as true and accurate by qualified professional engineers, or, in the case of height or size restrictions, by qualified surveyors. This report shall be prepared by the permittee and reviewed by the Town at the sole expense of the permittee, which shall promptly reimburse the Town for its review expenses.

1. If the initial report required by this Section shows that the infrastructure deployment(s) do not so comply, the permit shall be deemed suspended, and all rights thereunder of no force and effect, until the permittee demonstrates to the Town's satisfaction that the infrastructure deployment(s) is compliant. The permittee shall promptly reimburse the Town for its compliance review expenses.

2. If the initial report required by this Section is not submitted within the time required, the city manager or its selected and qualified professionals may, but is not required to, undertake such investigations as are necessary to prepare the report described in this Section. The permittee shall within five (5) days after receiving written notice from the city manager that the Town is undertaking the review, shall deposit such additional funds with the city manager to cover the estimated cost of the Town obtaining the report. Once said report is obtained by the Town, the Town shall then timely refund any unexpended portion of the permittee's deposit. The report shall be provided to the permittee. If the report shows that the permittee is non-compliant, the Town may suspend the permit until the permittee demonstrates to the Town's satisfaction that the infrastructure deployment(s) is compliant.

3. If the infrastructure deployment(s) is not brought into compliance promptly, the Town may revoke the permit and require removal of the infrastructure deployment(s) and all related equipment and improvements to return the site to its original condition before the installation or construction occurred.

B. Permit Expiration. The permit will automatically expire six (6) months from the approval date (the "build-out period") unless the permittee obtains all -179-
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other permits and approvals required to install, construct and/or operate the approved infrastructure deployment(s), which includes without limitation any permits or approvals required by the any federal, state or local public agencies with jurisdiction over the subject property, the infrastructure deployment(s) or its use; provided that the city manager may extend this build-out period at the request of the permittee for good cause shown. If this build-out period expires, the Town will not extend the build-out period but the permittee may resubmit a complete application, including all application fees, for the same or substantially similar project.

C. Code Compliance. The permittee shall also comply with Chapter 12.04 and all other requirements of the Hillsborough Municipal Code.

D. Government Approvals. The permittee shall obtain and maintain all other applicable permits, approvals, and agreements necessary to install and operate the infrastructure deployment(s) in conformance with federal, state, and local laws, rules and regulations. The permittee expressly acknowledges and agrees that this obligation is intended to be broadly construed and that no other specific requirements in these conditions are intended to reduce, relieve or otherwise lessen the permittee's obligations to maintain compliance with all laws. No failure or omission by the Town to timely notice, prompt or enforce compliance with any applicable provision in the Hillsborough Municipal Code, Policy No. 19-01, any permit, any permit condition or any applicable law or regulation, shall be deemed to relieve, waive or lessen the permittee's obligation to comply in all respects with all applicable provisions in the Hillsborough Municipal Code, Policy No. 19-01, any permit, any permit condition or any applicable law or regulation.

E. Inspection. The Town or its agents may inspect the permitted infrastructure deployment(s) and property and may enter onto a site to inspect the deployment(s) upon reasonable notice to the permittee. In case of an emergency or risk of imminent harm to persons or property within the vicinity of permitted infrastructure deployment(s), the Town reserves the right to enter upon the sites of the infrastructure deployment(s) and to support, disable, or remove those elements of the infrastructure deployment(s) posing an immediate threat to public health and safety. The permittee, if present, may observe the Town's officers, officials, staff, agents or other designees while any such inspection or emergency access occurs.

F. Contact Information. The permittee shall maintain on file with the Town and onsite at the infrastructure deployment(s) contact information of all parties responsible for maintenance of the infrastructure deployment(s).

G. Indemnification. The permittee and, if applicable, the private property owner shall defend, indemnify and hold harmless the Town, its agents, officers, officials, and employees:

1. From any and all damages, liabilities, injuries, losses, costs and expenses and from any and all claims, demands, lawsuits, writs of mandamus, and other actions or proceedings brought against the Town or its agents, -180-
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officers, officials, or employees to challenge, attack, seek to modify, set aside, void or annul the Town's approval of the permit(s); and

2. From any and all damages, liabilities, injuries, losses, costs and expenses and any and all claims, demands, lawsuits, or causes of action and other actions or proceedings of any kind or form, whether for personal injury, death or property damage, arising out of or in connection with the activities or performance of the permittee or, if applicable, the private property owner or any of each one's agents, employees, licensees, contractors, subcontractors, or independent contractors.

H. Termination. A permit may be terminated if the Town determines that the permit was granted based on false, misleading or incomplete information; if a material provision of the permit is no longer enforceable; or if the permittee violates a condition of the permit, or modifies the infrastructure deployment(s) or support structures without permission.

I. Performance Bond. The permittee shall file with the Town, and shall maintain in good standing throughout the term of the permit, a performance bond or other surety or another form of security for the removal of the infrastructure deployment(s) in the event that the use is abandoned or the permit expires, or is revoked, or is otherwise terminated. The security shall be in the amount equal to one hundred fifty percent (150%) of the cost of physically removing each infrastructure deployment and all related facilities and equipment on the site. The permittee shall reimburse the Town for staff time associated with the processing and tracking of the bond, based on established hourly rates. Reimbursement shall be paid when the security is posted.

J. Minimize Disruptions. The permittee shall make a good faith effort to minimize project-related disruptions to adjacent properties. Site improvement and construction work, including set-up, loading or unloading of materials or equipment, performed as part of this project is subject to the provisions of Hillsborough Municipal Code Section 8.32.040. Emergency maintenance and repairs are exempt from the restricted hours. Violation of this condition may result in issuance of a stop work order or administrative citations.

K. Graffiti. All graffiti on any of the infrastructure deployment(s) must be removed at the sole expense of the permittee within forty-eight (48) hours after notification from the Town.

L. Compliance, Generally. All infrastructure deployment(s) within the Town shall be designed, maintained, and shall be operated at all times to comply with the provisions of the Hillsborough Municipal Code, Policy No. 19-01, and the following other requirements:

1. Conditions in any permit or license issued by a local, state, or federal agency, which has jurisdiction over the infrastructure deployment(s);

2. Rules, regulations, and standards of the state and federal governments, including without limitation the FCC and the CPUC;
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3. Easements, covenants, conditions, and/or restrictions on or applicable to the underlying real property;

4. Rules, regulations, and standards of the Town governing underground utility districts;

5. All other laws, codes, and regulations applicable to the infrastructure deployment(s); including the California Environmental Quality Act (CEQA).

M. Maintenance. Without limiting the foregoing, all infrastructure deployment(s) shall be maintained in good working condition and to the visual standards established at the time of approval over the life of the permit(s) as may be extended. The infrastructure deployment(s) and surrounding areas shall remain free from trash, debris, litter, graffiti, and other forms of vandalism. Any damage shall be repaired as soon as is practicable, and in no instance more than ten (10) calendar days from the time of notification by the Town or after discovery by the permittee.

N. Revocation. A permit may be revoked if permittee is not in compliance with permit conditions, if the permit conditions are not enforceable, or for a failure to comply with any provision of the Hillsborough Municipal Code relating to the permit, or relating to the infrastructure deployment associated with the permit ("default event"). By way of example and not limitation, a refusal to timely remove infrastructure deployment(s) located in the rights-of-way where required in connection with a public works project would be a default event.

1. The city manager may revoke a permit only after: (i) written notice of the default event has been provided to the permittee; and (ii) the permittee has been afforded a reasonable opportunity to cure and comply with its permit, or demonstrate that no default event occurred.

2. If the permittee fails to cure, the City Council or the City Council through a designee shall conduct a noticed public hearing where the permittee shall be afforded an opportunity to speak and be heard and to provide written material prior to the hearing. If the City Council, after the public hearing, finds that the infrastructure deployment(s) or the permittee has violated any law regulating the infrastructure deployment(s) or has failed to comply with these requirements, the permit, any applicable agreement, or any condition of approval, the City Council may revoke the permit.

3. Upon revocation, the City Council may require the removal of the infrastructure deployment(s) or take any other legally permissible action or combination of actions necessary to protect the health and welfare of the Town.

O. Abandonment. Any permittee who abandons or discontinues use of an infrastructure deployment for a continuous period of ninety (90) days shall so notify the city manager by certified mail within thirty (30) days after the ninety (90) day period.
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1. If the city manager believes an infrastructure deployment has been abandoned or discontinued for a continuous period of ninety (90) days, the city manager shall send a notice of abandonment or discontinuation to the permittee stating why the Town believes the infrastructure deployment to be abandoned or discontinued. Failure of the permittee to reply to the city manager in writing within thirty (30) days after receiving, rejecting, or returning the Town's certified letter shall entitle the city manager to make a determination that the infrastructure deployment is, in fact, abandoned or discontinued.

2. Upon declaration of the city manager that the infrastructure deployment is abandoned or discontinued, as to private property, the permittee or owner of the affected real property shall have ninety (90) days from the date of the declaration or a further reasonable time as may be approved by the city manager, within which to complete one of the following actions:
i. Reactivate use of the infrastructure deployment;
ii. Transfer the rights to use the infrastructure deployment to another entity (who shall be subject to all the provisions of this policy) and the entity immediately commences use of the infrastructure deployment; or iii. Remove the infrastructure deployment and any supporting structures installed solely in connection with the infrastructure deployment, and restore the site to be consistent with the then-existing surrounding area.

3. If after the ninety (90) day time period set forth in subsection 1 of this Section none of the required actions in subsections 2.i through 2.iii of this section has occurred, the City Council at a noticed public hearing may declare that the infrastructure deployment is deemed abandoned.

The city manager shall provide notice of such finding to the permittee last known to use the infrastructure deployment and, if applicable, to the owner of the affected private real property, providing thirty (30) days from the date of the notice within which to complete one of the following actions:
i. Reactivate use of the infrastructure deployment, subject to the terms and conditions of the applicable permit;
ii. Transfer the rights to use the infrastructure deployment to another operator (who shall be subject to all the provisions of the Code and this policy); or
iii. Remove the infrastructure deployment and any supporting structures installed solely in connection with the infrastructure deployment, and restore the site to be consistent with the then-existing surrounding area.

4. If there is no reactivation, transfer or removal as set forth in subsection 3 of this Section, the Town may thereafter remove the abandoned infrastructure deployment, repair any and all damages to the premises caused by such removal, and otherwise restore the premises as is -183-
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appropriate to be in compliance with applicable codes. If the Town removes the infrastructure deployment, the Town may, but shall not be required to, store the removed infrastructure deployment or any part thereof, and may use it, sell it or dispose of it in any manner deemed by the Town to be appropriate. The entity that abandoned the infrastructure deployment, or its successor in interest, and if on private property, the private property owner shall be jointly liable for the entire cost of such removal, repair, restoration and storage and shall remit payment to the Town promptly after demand therefor is made. In addition, the city council, at its option, may utilize any financial security required in conjunction with granting the permit to recover such costs.

5. Until the cost of removal, repair, restoration and storage is paid in full, a lien shall be placed on the infrastructure deployment and any related personal property and any private real property on which the infrastructure deployment was located for the full amount of the cost of removal, repair, restoration and storage. The city clerk shall cause the lien to be recorded with the San Mateo County recorder.

P. Transfer. A permittee shall not assign or transfer any interest in its permit(s) for infrastructure deployment(s) without advance written notice to the Town.

The notice shall specify the identity of the assignee or transferee of the permit, as well as the assignee or transferee's address, telephone number, name of primary contact person(s), and other applicable contact information, such as an e-mail address or facsimile number. The new assignee or transferee shall comply with all of the permit's terms and conditions of approval, and shall submit to the Town a written acceptance of the permit's terms and conditions and a written assumption of the obligations thereafter accruing under such permit prior to the date that such assignment or transfer is intended to take effect.

Q. Records. Throughout the permit term, the permittee must maintain a complete and accurate copy of the written administrative record, which includes without limitation the permit application, the approved permit, the approved plans and photo simulations incorporated into the approval, all conditions associated with this approval, any ministerial permits or approvals issued in connection with this approval and any records, memoranda, documents, papers and other correspondence entered into the public record in connection with the permit (collectively, "records"). If the permittee does not maintain such records as required in this condition, any ambiguities or uncertainties that would be resolved by inspecting the missing records will be construed against the permittee. The permittee shall protect all records from damage from fires, floods and other hazards that may cause deterioration.

The permittee may keep records in an electronic format; provided, however, that hard copies or electronic records kept in the Town's regular files will control over any conflicts between such Town-controlled copies or records and the permittee's electronic copies, and complete originals will control over all other copies in any form. The requirements in this condition shall not be construed to create any obligation to create or prepare any records not otherwise required to be created or prepared by other applicable laws. -184-
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Compliance with the requirements in this condition shall not excuse the permittee from any other similar record-retention obligations under applicable law.

R. Landscaping. The permittee shall replace any landscape features damaged or displaced by the construction, installation, operation, maintenance or other work performed by the permittee or at the permittee's direction on or about the site. If any trees are damaged or displaced, the permittee shall hire and pay for a licensed arborist to select, plant and maintain replacement landscaping in an appropriate location for the species. Only International Society of Arboriculture certified workers under the supervision of a licensed arborist shall be used to install the replacement tree(s). Any replacement tree must be substantially the same size as the damaged tree. The type, size and location for a replacement tree shall be subject to the city manager's approval. The permittee shall, at all times, be responsible to maintain any replacement landscape features.

S. Reimbursement. The permittee acknowledges and agrees that (i) the permittee's request for authorization to construct, install and/or operate the infrastructure deployment(s) will cause the Town to incur costs and expenses; (ii) the permittee shall be responsible to reimburse the Town for all costs incurred in connection with the permits, which includes without limitation costs related to application review, permit issuance, site inspection and any other costs reasonably related to or caused by the request for authorization to construct, install and/or operate the infrastructure deployment; (iii) any application fees required for the application may not cover all such reimbursable costs and that the permittee shall have the obligation to reimburse Town for all such costs ten (10) days after a written demand for reimbursement and reasonable documentation to support such costs; and (iv) the Town shall have the right to withhold any permits or other approvals in connection with the infrastructure deployment(s) until and unless any outstanding costs have been reimbursed to the Town by the permittee.

T. Town Work. The permittee acknowledges that the Town, in its sole discretion and at any time, may: (i) change any street grade, width or location; (ii) add, remove or otherwise change any improvements in, on, under or along any street owned by the Town or any other public agency, which includes without limitation any sewers, storm drains, conduits, pipes, vaults, boxes, cabinets, poles and utility systems for gas, water, electric or telecommunications; and/or (iii) perform any other work deemed necessary, useful or desirable by the Town (collectively, "Town work"). The Town reserves the rights to do any and all Town work without any admission on its part that the Town would not have such rights without the express reservation in this permit. If the Public Works Director determines that any Town work will require the permittee's infrastructure deployment(s) located in the public rights-of-way to be rearranged and/or relocated, the permittee shall, at its sole cost and expense, do or cause to be done all things necessary to accomplish such rearrangement and/or relocation. If the permittee fails or refuses to either -185-
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permanently or temporarily rearrange and/or relocate the permittee's infrastructure deployment(s) within a reasonable time after the Public Works Director's notice, the Town may (but will not be obligated to) cause the rearrangement or relocation to be performed at the permittee's sole cost and expense. The Town may exercise its rights to rearrange or relocate the permittee's infrastructure deployment(s) without prior notice to permittee when the Public Works Director determines that the Town work is immediately necessary to protect public health or safety. The permittee shall reimburse the Town for all costs and expenses in connection with such work within ten (10) days after a written demand for reimbursement and reasonable documentation to support such costs.

2. Specific Right-of-Way Construction Conditions.

A. Roadway cuts and excavations shall be subject to Hillsborough Municipal Code Section 12.04.130 “Street Preservation”.

B. Work location is in proximity to existing Town sewer and water main. Electrical service shall maintain a minimum 1’ vertical, and 3’ horizontal clearance from sewer and water mains. It is the responsibility of the permittee to ensure the protection of both public and private assets. The permittee will be liable for any damage to properties within the scope of this project.

C. Twenty-four (24) hour notice shall be given to the Town for inspection of all trench work. The notice must be via phone call at (650) 375-7444.

D. Trenches shall be backfilled per Town standard detail C16.

E. The permittee shall not backfill more than 6” sand above gas pipe.

F. The permittee shall not use jackhammer to excavate the paved road. Restoration and paving of the surfaces must comply with the Town of Hillsborough’s standards.

G. The permittee shall comply with the approved traffic control plan. One (1) lane shall remain open to traffic during the course of the project. Full road closures are not permitted for this project. Construction hours are limited between the hours of 8:00am – 5:00pm.

H. The permittee shall provide a written notice to all residents/property owners adjacent and across from construction areas at least one (1) week in advance of the work. The notice shall provide property owners with the date(s) of construction, description of the work, and contact information for the permittee’s (Comcast’s) project staff, including a name and phone number.

I. Access to private driveways shall be maintained at all times. If a private driveway must be temporarily closed to accommodate the work, the permittee shall provide written notification to the residents at least one (1) week in advance. -186-
61236.02002\41078735.1
J. “No Parking” signs shall be posted a minimum of seventy-two (72) hours in advance of the restriction. The date and time of the restrictions shall be clearly posted on the “No Parking” signs.
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ONLINE ENCROACHMENT PERMIT APPLICATION
Town of Hillsborough Public Works Department
1600 Floribunda Ave | Hillsborough, CA | 94010
(650) 375-7444 main | (650) 548-0859 fax
[email protected] | www.hillsborough.net

Instructions:
 For all permit applications, complete and sign this form and attach with your permit application.  For PG&E, AT&T, and Comcast permit applications, on Step 1 of the eTrakit Online Portal:
o Under Permit Type Information, include your company’s internal project number at the beginning of the “Short Description”
o Under Location,
 if the scope of work is for a specific private property address (i.e. gas tie-in, service upgrade, etc.), select that address
 if the scope of work is not directly related to property address (i.e. gas main leak, aerial fiber installation, etc.), select “1320 La Honda Road” and provide the nearest address in the “Short Description” under Permit Type Information.
1) Project Applicant (Primary Contact)
2) Location(s) of Work
☐ Single
☐ Public Right-of-Way
☐ Multiple Streets
☐ Easements
☐ Near Creek
3) Description of Work:
(Continued on next page)
Name: ____________________________________________ Phone: ______________________________________ Email: ____________________________________________ Company: ____________________________________ -
☐ Address or ☐ Nearest Address: _____________________________________________________________________ APN:___________________________________________ Project Number:___________________________________ Check all items that apply:
_________________________________________________________________________________________________ _________________________________________________________________________________________________ _________________________________________________________________________________________________ _________________________________________________________________________________________________ Alvaro Gandara Astray 916-282-8158 [email protected] STC Netcom Inc. 1025 TOURNAMENT DR 038344080 CALHPS82778381 Contracted by Comcast Cable to upgrade existing emergency power backup to 72hrs per CPUC mandate. In order to meet requirements we will be installing a precast concrete pad with battery cabinet next to utility pole. ATTACHMENT 5 -216-

ONLINE ENCROACHMENT PERMIT APPLICATION
Town of Hillsborough Public Works Department
1600 Floribunda Ave | Hillsborough, CA | 94010
(650) 375-7444 main | (650) 548-0859 fax
[email protected] | www.hillsborough.net

4) Provide the following measurements:

Driveway Apron: _______ LF
Rolled Gutter: _______ LF
Trench: _______ LF
Bell Hole / Excavation Pit: ____ LF x ____ LF (Length x Width) 5) Street Opening or Type of Installation Permit (Check all items that apply):
☐ CATV
☐ Curb and Gutter
☐ Directional Boring
☐ Driveway/Apron
☐ Electric
☐ Gas Line/Leak
☐ Geotech Work
☐ Parking Strip
☐ Potholing
☐ Sanitary Sewer Lateral
☐ Storm Drain
☐ Street Paving
☐ Street – Full Road Closure
☐ Street – Partial Closure
☐ Telephone
☐ Tree Work
☐ Trenching
☐ Other (explain below)
6) Encroachment Permit Standards
All encroachment permits are subject to the following standards.

Methods and Materials
 The applicant shall submit a plan and a profile showing location, grade elevation and trench details of proposed work to be constructed and the location and method by which the proposed work is to be connected to any existing Hillsborough utility. The plan submittal shall be reviewed and approved by the engineering department prior to issuance of the permit.
 All work with in the public right-of-way shall be installed per the Town of Hillsborough Standard Details available on the Town website unless otherwise approved by the City Engineer or his/her designee.  Backfill shall be imported material of a type specified by the Town Standard Details and shall be compacted to a minimum of 95% relative compaction, unless otherwise approved by the City Engineer or his/her designee.  New pavement section shall match the existing thickness, but not less than 4" AC over 8" Class 2 AB.  Jackhammering of the paved surface of any street is not allowed. All trenches must be saw-cut prior to excavation.  T-Cuts are required and shall be a minimum of 12 inches on all sides of the trench, all saw cuts (including tails) must be sealed.
 Contractors shall email the Public Works Inspector at [email protected] with the encroachment permit number, scope of work or inspection type, and requested inspection date and time at least 24 hours in advance to schedule an inspection for all work including but not limited to; bedding, utilities, cover, compaction, patching, paving, parking strips, forms, etc.
 The permittee must conduct video inspection of all sewer mains, laterals and storm drains within the area of each directional boring project.
 No equipment or materials shall be stored in the public right-of-way without written authorization from the Director of Public Works.
(Continued on next page)
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ONLINE ENCROACHMENT PERMIT APPLICATION
Town of Hillsborough Public Works Department
1600 Floribunda Ave | Hillsborough, CA | 94010
(650) 375-7444 main | (650) 548-0859 fax
[email protected] | www.hillsborough.net

Licenses and Liabilities
 A Class A contracting license is required when working in the public right-of-way unless otherwise approved by the City Engineer or his/her designee. (Extreme care shall be exercised).  All necessary permits must be obtained from the appropriate agencies prior to the issuance of an Encroachment Permit, including but not limited to California Fish and Wildlife, Regional Water Quality Control Board (RWQCB), Army Corp of Engineers, CALTRANS, local cities and counties, etc.  All costs of repairing any and all infrastructure damaged with in the right-of-way shall be paid for by the owner/applicant and should be reported immediately to the Town Inspector.  Bond deposit(s) shall not be returned until the final inspection by the Public Works Department has been completed.
 Applicant shall hold the Town, its employees and representatives harmless and assume all liability for claim(s) which may arise by or because of this permit.

Traffic and Safety
 Any open holes / trenches in the street or on the shoulder shall be covered with steel plates or as required by the Town Inspector. All excavations shall be covered at the end of each day.  Work in the right-of-way shall be conducted between the hours of 8:00am – 5:00pm, Monday through Friday, unless written authorization is obtained from the Director of Public Works 48 hours prior to the start of work.  The area to be encroached upon shall be marked 48 hours prior to such encroachment. Notification shall be given to Underground Service Alert (USA) 1 800 642-2444 for all digging proposed in the right-of-way 48 hours prior to the commencement of any excavation.
 Caltrans safety standards shall be used for all traffic control measures. A traffic control plan shall be submitted and approved for all work done in the public right-of-way.
 All signs, cones, barricades and traffic control devices must be clearly marked with contractor’s/subcontractor’s name. Provisions for two-way traffic shall be maintained at all times using flagmen as necessary.  All works shall comply with OSHA standards. Excavations of 5 feet or deeper shall conform to CAL/OSHA Standards for shoring.
 During non-daylight hours, applicant shall use yellow flashing lights and reflective tape on all barricades and/or street closure signage to CALTRANS standards.
 Barricades with flashers shall be on-site prior to excavation. ☐ I acknowledge that I have read and do here by accept the terms and conditions contained in the above Encroachment Permit Standards.
5) SIGNATURE (APPLICANT OR AUTHORIZED AGENT)
Signature: ___________________________________________________ Date: _______________________ Printed Name: _________________________________________________________________________________ 04/11/2022 Alvaro Gandara Astray
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If there are questions regarding these comments, please contact John Iaquinto at (650) 375-7418. 1 -
Project Location: 1320 La Honda Road - Tournament Road
Description: Upgrade existing emergency power backup. Install a pre-cast concrete pad with battery cabinet next to existing Pole.

Date: 5/16/22
Permit No. ENC22-0168
Plans Dated & By: 2022 – STC Netcom Inc. – Project #CALHPS82778381

SPECIAL COMMENTS
• The Town’s aesthetic standards in Policy 19-01 were made to apply Small Cell and any similar infrastructure (Policy, Section B.). The following comments are to ensure this application complies with Policy 19-01, adopted by Town Resolution 19-03.
• Equipment placed above ground, whether pole-mounted or ground-mounted, shall be placed to avoid, to the extent technically feasible, prominent visibility from the driveways, entryways and windows associated with residential dwellings. Applicants are encouraged to consult with Town staff in advance to evaluate potential visibility issues. As a general matter, but not as a rule, locations as close to the common property line between adjoining properties as possible will likely comply with this requirement. Per C5
• All accessory equipment installed above ground level shall not cumulatively exceed:
(a) nine cubic feet in volume if installed in a residential district; or [(b) 17 cubic feet in volume if installed in a non-residential district. The volume calculation shall include any shroud, cabinet or other concealment device used in connection with the accessory equipment. The volume calculation shall not include any equipment or other improvements placed underground.] Per E 7
• Shall not permanently displace any landscaping or cause any street trees to be trimmed, damaged or displaced. If any landscaping or street trees are damaged or displaced, the applicant shall be responsible, at its sole cost and expense, to plant and maintain replacement trees at the site for five years or the duration of the permit term (whichever is longer). Likewise, new infrastructure and/or associated equipment shall not prevent the planting or replanting of a street tree in the future. Per E 10
• Shall be placed at least 15 feet away from any intersection, alleyway, driveway or established pedestrian pathway to a residential structure appurtenant to the public rights-of-way. Per E 17 • To the extent the structures are utility boxes within the meaning of this Code, be reviewed and subject to the same approvals as utility boxes installed in connection with other infrastructure deployments; and shall be located flush to grade where necessary to avoid incommoding the public or creating a hazard. Per G1 & G2
• To the extent permitted above ground, shall otherwise be shrouded and painted and textured (or wrapped) to blend with the streetscape and landscape around the site. Whenever possible, above ground equipment components should be placed behind landscaped features in the right-of-way to further conceal the equipment and blend in with the surroundings. Non-reflective paints shall be used on all painted surfaces. – Per G3
Town of Hillsborough
Public Works Department / Engineering Division
1320 La Honda Road • Hillsborough • CA • 94010
650.375-7444 [ tel ] • 650.548-0859 [ fax ]
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If there are questions regarding these comments, please contact John Iaquinto at (650) 375-7418. 2 • Equipment shrouds at the base of a pole shall: (a) not exceed 24 inches wide on any side and 48 inches high; (b) be consistent with any standards and specifications by the City Engineer for decorative pole bases or, if no such standards or specifications exist, shall be designed to mimic the pole to which it is attached ; (c) not have any flat surface area on the top of the shroud greater than two square inches to prevent objects from being placed on the shroud; and (d) include a tapered or decorative transition between the top of the base mounted shroud and the pole. Per G 4 • Employ the smallest and lowest profile equipment, placed in the least conspicuous location when viewed from properties from which the WCF is visible. Per J1 • Accommodate collocation or other future expansions or modifications to the extent feasible and consistent with the other design requirements of this policy; and be consistent with the general plan. J2 & J3
• Infrastructure deployments shall not incommode the public (including without limitation, persons with disabilities) in its use of the public rights-of-way or any structure within or abutting the public rights-of-way or any portion of the public rights-of-way. Per O17

SPECIFIC PERMIT CONDITIONS OF APPROVAL
Permittee shall comply with the attached encroachment permit standards.

Applicant is required to contact resident adjacent to the location where the new cabinet will be installed prior to installation. Additionally, any landscaping removed must be restored by the applicant.
• Work location is in proximity to existing Town sewer, Storm drain and water main. Electrical service shall maintain a minimum 1’ vertical, and 3’ horizontal clearance from sewer, storm drain and water mains. It is the responsibility of the permit holder to ensure the protection of both public and private assets. Permit holder will be liable for any damage to properties within the scope of this project.
• All excavations shall be covered at the end of the day. Barricades and flashes shall be onsite prior to excavation. • 24-hour notice shall be given to the Town’s Public Works Inspector by calling 650-375-7444 and asking for the inspection of the job site on the day of the work. • Permittee must fully comply with the approved traffic control plan that was submitted with the application and approved by the Public Works Engineer. All residents in the area must be able to always access their driveways.
• Permittee shall provide written notices to residents/property owners at least one (1) week in advance of the work. The notices shall be provided to all properties in the area that will be affected by the road closure. The notices shall provide residents with the date of and a description of the work and contact information for PG&E project staff including name and phone number. • Access to private driveways shall be always maintained. If a private driveway must be temporarily closed to accommodate the work, permit holder shall provide written notification to the residents at least one (1) week in advance.
• “No Parking” signs shall be posted a minimum of 72 hours in advance of the restriction. The date and time of the restrictions shall be clearly posted on the “No Parking” signs. -220-
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T1
SITE ADDRESS:
1025 TOURNAMENT DR , HILLSBOROUGH, CA 94010
SHEET TITLE:

ISSUE STATUS

REV DATE DESCRIPTION BY

SITE INFORMATION
SEAL
A 09/17/21 90% CD BN
3011 COMCAST PLACE
LIVERMORE, CA 94551
23 MAUCHLY, STE 110
IRVINE, CA 92618
J5 PROGRAM ID: ALP-CA-CPUC
J5 PROJECT ID: P-060681
3767 ALPHA WAY
BELLINGHAM, WA 98226

AN ENERSYS COMPANY
4/1/22
«
«
0 01/05/22 100% CD BN1 01/10/22 100% CD BN2 04/01/22 SCOPE CORRECTION JMM

LOCATION MAP
SITE ADDRESS:
1025 TOURNAMENT DR
HILLSBOROUGH, CA 94010
DO NOT SCALE DRAWINGS IF NOT FULL SIZE (24 X 36)

CONTRACTOR SHALL VERIFY ALL PLANS AND EXISTING DIMENSIONS AND CONDITIONS ON THE JOB SITE AND SHALL

IMMEDIATELY NOTIFY THE ARCHITECT / ENGINEER IN WRITING OF ANY DISCREPANCIES BEFORE PROCEEDING WITH THE WORK OR BEAR THE RESPONSIBILITY FOR THE SAME.

GENERAL CONTRACTOR NOTES

CODE COMPLIANCE

ALL WORK AND MATERIALS SHALL BE PERFORMED AND INSTALLED IN ACCORDANCE WITH THE CURRENT EDITIONS OF THE FOLLOWING CODES AS ADOPTED BY THE LOCAL GOVERNING AUTHORITIES. NOTHING IN THESE PLANS IS TO BE CONSTRUED TO PERMIT WORK NOT CONFORMING TO THESE CODES.

1. CALIFORNIA BUILDING STANDARDS CODE: 2019
TRIENNIAL EDITION OF TITLE 24, WITH AN EFFECTIVE
DATE OF JANUARY 1, 2020.PART 1 - CALIFORNIA ADMINISTRATIVE CODEPART 2 - CALIFORNIA BUILDING CODE, BASED ON THE 2018 INTERNATIONAL BUILDING CODE
PART 2.5 - CALIFORNIA RESIDENTIAL CODE, BASED
ON THE 2018 INTERNATIONAL RESIDENTIAL CODE
PART 3 - CALIFORNIA ELECTRICAL CODE, BASED ON
THE 2017 NATIONAL ELECTRICAL CODE
PART 4 - CALIFORNIA MECHANICAL CODE, BASED ON
THE 2018 UNIFORM MECHANICAL CODE
PART 5 - CALIFORNIA PLUMBING CODE, BASED ON
THE 2018 UNIFORM PLUMBING CODE
PART 6 - CALIFORNIA ENERGY CODEPART 7 - VACANT
PART 8 - CALIFORNIA HISTORICAL BUILDING CODEPART 9 - CALIFORNIA FIRE CODE, BASED ON THE 2018

INTERNATIONAL FIRE CODE
PART 10 - CALIFORNIA EXISTING BUILDING CODE,BASED ON THE 2018 INTERNATIONAL EXISTINGBUILDING CODEPART 11 - CALIFORNIA GREEN BUILDING STANDARDSCODE (ALSO KNOWN AS CALGREEN)PART 12 - CALIFORNIA REFERENCED STANDARDSCODE

2. ANSI/TIA-222 (REV H)3. 2018 NFPA 101, LIFE SAFETY CODE4. 2019 NFPA 72, NATIONAL FIRE ALARM AND SIGNALING CODE

5. 2019 NFPA 13, STANDARD FOR THE INSTALLATION

OF SPRINKLER SYSTEMS
SITE

EXISTING SITE PHOTO

SITE PLAN

TITLE SHEET
Call before you dig.

Know what'sbelow.

R

TO OBTAIN LOCATION OF PARTICIPANTS

UNDERGROUND FACILITIES BEFORE

YOU DIG IN CALIFORNIA (NORTH &
CENTRAL) , CALL USA NORTH 811
TOLL FREE: 1-800-227-2600 OR
www.usanorth811.org

CALIFORNIA STATUTE
REQUIRES MIN OF 2

WORKING DAYS NOTICE

BEFORE YOU EXCAVATE
NORTH
OWNER:

APPLICANT:

SITE INFORMATION

DRAWING INDEX

DESCRIPTION
T1 TITLE SHEET AND SITE PLAN
A1 ENLARGED SITE PLANS & ELEVATIONSD1 DETAILS
SITE ADDRESS:LATITUDE/LONGITUDE (NAD 83):

JURISDICTION:

POWER PROVIDER:

AMP DRAW:
1025 TOURNAMENT DR
HILLSBOROUGH, CA 94010

37.54150283, -122.3426885
Hillsborough Public WorksPG&E

4.00 SHEET

PROJECT TEAM
3&4
A1

ENGINEER/
ARCHITECT:

J5 INFRASTRUCTURE PARTNERSJOSE M. MIRANDA

ARCHITECT/ENGINEER CONTACT
PH: (949) 247-7767EMAIL: [email protected]
23 MAUCHLY, SUITE 110
IRVINE, CALIFORNIA, 92618
COMCAST CABLE3011 COMCAST PLACELIVERMORE, CA 94551
UG

TOURNAMENT DRIVE
~ RESIDENCE ~ (E) SIDEWALK
(E) MAILBOX
(1)(N) ALPHA PN-4 POWER NODE SYSTEM
ENCLOSURES W/ (12) (N) 12V ALPHA 210FTX

BATTERIES & (N) POWER SOURCE WITHIN MOUNTED

TO (N) CONCRETE PAD AT GRADE
1 D1
2 D1
7 D1
4 D1
(E) PULL BOX TO BE
PROTECTED IN PLACE TYP.
(E) DRIVEWAY
(E) DRIVEWAY
(E) DRIVEWAY
(E) SIDEWALK
(E) SIDEWALK
(E) SIDEWALK

TOURNAMENT DRIVE
3'-10"
9"
~ RESIDENCE ~
~ RESIDENCE ~
~ RESIDENCE ~
ALPHA TECHNOLOGIES, INC.

RICHARD A. SEIFF

SERVICE OPERATIONS MANAGER
ENERGY SYSTEMS AMERICASPH: (331) 276-0232EMAIL: [email protected]

SCOPE OF WORK
THIS PROJECT MODIFICATION OF EXISTING CONSISTS OF:
· REMOVAL & REPLACEMENT OF (E) POWER SUPPLY· INSTALLATION OF (1) (N) ALPHA PN-4 POWERNODE SYSTEM ENCLOSURES· INSTALLATION OF (12) (N) 12V ALPHA 210FTX BATTERIES· INSTALLATION OF (1) (N) PRECAST CONCRETE PAD· ALL ASSOCIATED ELECTRIC WIRES AND CONDUITS TO CONNECT (N)

POWERNODE CABINET
TUA2
TC1 TRAFFIC CONTROL
(E) DRIVEWAY
(E) SIDEWALK
(E) COMCAST ENCLOSURE TO REMAIN
(N) POWER SUPPLY INSTALLED WITHIN
5 D1
(N) RIGID U/G CONDUIT FROM (N)

CABINETS TO (E) MAIN CABINET
6 D1
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CABINET
FRONT

CABINET
FRONT

CABINET
FRONT
A1
SITE ADDRESS:
1025 TOURNAMENT DR , HILLSBOROUGH, CA 94010
SHEET TITLE:

ISSUE STATUS

REV DATE DESCRIPTION BY

SITE INFORMATION
SEAL
A 09/17/21 90% CD BN
3011 COMCAST PLACE
LIVERMORE, CA 94551
23 MAUCHLY, STE 110
IRVINE, CA 92618
J5 PROGRAM ID: ALP-CA-CPUC
J5 PROJECT ID: P-060681
3767 ALPHA WAY
BELLINGHAM, WA 98226

AN ENERSYS COMPANY
4/1/22
«
«
0 01/05/22 100% CD BN1 01/10/22 100% CD BN2 04/01/22 SCOPE CORRECTION JMM

ENLARGED SITE

PLANS & ELEVATIONS

EXISTING ELEVATION
4 PROPOSED ELEVATION
3 GRADE GRADE

TOURNAMENT DRIVE TOURNAMENT DRIVE
CONDUIT ROUTING NOTE:

1. GC TO ROUTE (N) 1-1/2" RIGID U/G CONDUIT FROM (N)

CABINETS TO (E) MAIN CABINET FOR (N) BATTERY & INTERFACE ASSOCIATED CABLING. SEE TRENCHING DETAIL ON SHEET D1.

NOTES:

1. CONTRACTOR TO COMPLY WITH ALL APPLICABLE/REQUIRED INSPECTIONS PER LOCAL JX GUIDELINES.

2. CONTRACTOR SHALL BE AWARE OF (E) PEDESTRIAN AND VEHICLE ACCESS. CONTRACTOR SHALL NOT BLOCK WALKWAYS, DRIVEWAYS AND/OR OTHER FORMS OF ACCESS. CONTRACTOR SHALLREACH OUT TO ENGINEER IF REVISIONS TO DESIGN HEREON ARE REQUIRED.

EXISTING ENLARGED SITE PLAN
2 PROPOSED ENLARGED SITE PLAN
1 TOURNAMENT DRIVE
~ (E) SIDEWALK ~
(E) MAILBOX
(E) EDGE OF PAVEMENT
(1)(N) ALPHA PN-4 POWER NODE SYSTEM
ENCLOSURES W/ (12) (N) 12V ALPHA 210FTX

BATTERIES & (N) POWER SOURCE WITHIN MOUNTED

TO (N) CONCRETE PAD AT GRADE
1 D1
2 D1
7 D1
4 D1
±2'-10"
±9"

EXISTING
(E)

EXISTING
(E) PULL BOX TO BE
PROTECTED IN PLACE TYP.
(E) MAILBOX
(E) EDGE OF PAVEMENT
(E) PULL BOX TO BE
PROTECTED IN PLACE TYP.
~ (E) SIDEWALK ~

TOURNAMENT DRIVE
~ (E) SIDEWALK ~
~ (E) SIDEWALK ~
(E) PULL BOX TO BE
PROTECTED IN PLACE TYP.
(1)(N) ALPHA PN-4 POWER NODE SYSTEM
ENCLOSURES W/ (12) (N) 12V ALPHA 210FTX

BATTERIES & (N) POWER SOURCE WITHIN MOUNTED

TO (N) CONCRETE PAD AT GRADE
1 D1
2 D1
7 E1
4 D1
(E) MAILBOX
~ (E) DRIVEWAY ~
~ (E) DRIVEWAY ~
(E) FENCE (E) FENCE
2'-10"
4'-4"
1'-6"
(E) MAILBOX
(E) DRIVEWAY (E) DRIVEWAY
(E) TREE
(E) BUSH
(E) FENCE
8'-4"
1'-6"
(E) PULL BOX TO BE
PROTECTED IN PLACE TYP.
(E) BUSH
(E) FENCE
8'-6"
(E) COMCAST ENCLOSURE TO REMAIN(N) POWER SUPPLY INSTALLED WITHIN 5 D1
(E) COMCAST ENCLOSURE TO REMAIN(N) POWER SUPPLY INSTALLED WITHIN 5 D1
(E) COMCAST ENCLOSURE TO REMAIN
(E) BATTERIES WITHIN TO BE REMOVED
(E) POWER SUPPLY TO BE REMOVED & REPLACED
(E) COMCAST ENCLOSURE TO REMAIN
(E) BATTERIES WITHIN TO BE REMOVED
(E) POWER SUPPLY TO BE REMOVED & REPLACED
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D1
SITE ADDRESS:
1025 TOURNAMENT DR , HILLSBOROUGH, CA 94010
SHEET TITLE:

ISSUE STATUS

REV DATE DESCRIPTION BY

SITE INFORMATION
SEAL
A 09/17/21 90% CD BN
3011 COMCAST PLACE
LIVERMORE, CA 94551
23 MAUCHLY, STE 110
IRVINE, CA 92618
J5 PROGRAM ID: ALP-CA-CPUC
J5 PROJECT ID: P-060681
3767 ALPHA WAY
BELLINGHAM, WA 98226

AN ENERSYS COMPANY
4/1/22
«
«
0 01/05/22 100% CD BN1 01/10/22 100% CD BN2 04/01/22 SCOPE CORRECTION JMM

DETAILS
7 N.T.S. BATTERY SPECIFICATIONS
EQUIPMENT SPECIFICATIONS (1 UNIT)
MFG:MODEL:

HEIGHT:

WIDTH:

LENGTH:

WEIGHT:

ALPHA
210 FTX

13.02 IN

4.91 IN

22.01 IN
145 LBS 13.02"

22.01"

4.91"
ALPHA
210 FTX BATTERY UNIT
1 N.T.S. EQUIPMENT CABINET DETAIL
CABINET SPECIFICATIONSMANUFACTURER: ALPHAMODEL: PN-4
HEIGHT: 52"
WIDTH: 26"
DEPTH: 24"
WEIGHT (EMPTY): 180 LBS.WEIGHT (W/ BATTERIES): 1,920 LBS.MATERIAL: ALUMINUM BATTERY CONFIGURATION:

CABINET #1: (12) BATTERIES
26"
26"
24"
SIDE

KNOCKOUT,
TYP.

FRONT
TOP
30"
2"
6"
52"
(N) PRECAST CONC. PAD
(SEE DETAIL HEREON)
BATT STRING #2
BATT STRING #1
BATT STRING #3
BATT STRING #4
2 N.T.S. CONCRETE PAD & ANCHORAGE DETAIL

EQUIPMENT CABINET
3/8"Ø GALVANIZED THREAD RODW/ HILTI HIT-HY 200 ADHESIVE EMBED = 4"
SPECIAL INSPECTION PER (ESR-3187)
(4) TOTAL

NUT & INSULATING WASHER
2'-6"
2'-6"
4"
EMBED.
4"
MIN.
6" MIN. THICK PRECAST

CONCRETE PADOUTLINE OFCABINET
A
A

SECTION A-A
6" MIN. THICK PRECAST

CABINET ANCHOR CONCRETE PAD
POINTS, TYP.

PLACE CONCRETE PAD MINIMUM 2"FROM NEARBY CONCRETE PAD(S) CABINET GROUND #2
STRANDED IN 1/2" PVC TIED

INTO (N) GROUND RING
N.T.S.STUB-UP DETAIL
PVC SCHEDULE 40 SIZE AS

SHOWN ON DRAWINGS

RIGID STEEL TOPVC ADAPTER
GRADE

RIGID STEEL CONDUIT

COUPLING

RIGID STEEL

CONDUIT PLUG
R=24" MIN. RIGID STEEL CONDUIT
6"

CONNECTION MADE WITH
BUMDY CONNECTORP/N YGHR58C2W
#6 AWG
TWO 8' GROUND

RODS PLACED A
MIN. OF 6' APART
#2 AWG

ENCLOSURE FOOTPRINT
3 2
4 5
1 1/2"x8" COPPER GROUND ROD, FOUR PLACES, DRIVEN
ABOUT 2 FEET (TYP.) FROM THE CORNERS OF THE PAD.
#2 BARE COPPER WIRE LOOP TERMINATED TO EACH
GROUND ROD AND BURIED BELOW GRADE 18 INCHES. CORROSION-PROOF CONNECTIONS (25+ YEAR LIFE-SPAN)AND HARDWARE SUITABLE FOR DIRECT BURIAL MUST BE USED.#2 BARE COPPER WIRE FROM LOOP TO THE ENCLOSURE.

WHEN THE ELECTRICAL SUPPLY IS A PRIMARY SERVICE (NOTA SECONDARY OR FEEDER SERVICE) A #2 BARE COPPERWIRE MUST BE BOND THE LIGHTNING PROTECTION LOOP TO THE GROUNDING ELECTRODE CONDUCTOR WHERETHEY ARE CLOSEST. #6 BARE COPPER WIRE FROM SERVICENEUTRAL/GROUND BAR WITH 2 GROUNDRODS LOCATED 6" APART.

SERVICE GROUNDING (REQUIRED)
1 2345
4 2'-0" MIN
N.T.S.GROUNDING DETAIL
LIGHTNING PROTECTION (OPTIONAL)NOTE:

GROUND TEXT SHALLMEASURE LESS THAN 25 OHMS.

IF EXCEEDED, CONTRACTOR

TO INSTALL ADDITIONAL
GROUND RODS AS REQUIRED.
2'-0"
MIN.

EQUIPMENT SPECIFICATIONS
MFG:MODEL:

HEIGHT:

WIDTH:

DEPTH:

WEIGHT:

ALPHAXM3.1-HP

7.76 IN

16.43 IN10.57 IN
61 LBS
NOTE:

1. USE MANUFACTURER SUPPLIED
MOUNTING HARDWARE.

NOMINAL INPUT VOLTAGE: 120V AC
OUTPUT VOLTAGE: 63/89V AC
5 N.T.S. POWER SUPPLY DETAIL
WARNING TAPE 12" BELOW GRADE90% COMPACTED FILL
UNDISTURBED EARTHPROTECT-IN-PLACE (E) U.G. CONDUIT,
TYP. (IF APPLICABLE)(SEE NOTE)
(E) SURFACE(SEE PLAN)

PATCH AND REPAIR

TO MATCH EXISTING
ONE (1) 1-1/2"Ø OR EQUIVALENT SCH.
40 RIGID U.G. CONDUIT
NOTE:

1. PRIOR TO STARTING CONSTRUCTION, THE CONTRACTOR

HAS THE RESPONSIBILITY TO LOCATE ALL EXISTING UTILITIES,

CONDUITS WHETHER OR NOT SHOWN ON THE PLANS,
AND TO PROTECT THEM FROM DAMAGE.
2'-6"
3"
2'-0"
MIN.
1'-6"
VARIES 6 N.T.S. TRENCHING DETAIL
-224-
TC1
SITE ADDRESS:
1025 TOURNAMENT DR , HILLSBOROUGH, CA 94010
SHEET TITLE:

ISSUE STATUS

REV DATE DESCRIPTION BY

SITE INFORMATION
SEAL
A 09/17/21 90% CD BN
3011 COMCAST PLACE
LIVERMORE, CA 94551
23 MAUCHLY, STE 110
IRVINE, CA 92618
J5 PROGRAM ID: ALP-CA-CPUC
J5 PROJECT ID: P-060681
3767 ALPHA WAY
BELLINGHAM, WA 98226

AN ENERSYS COMPANY
4/1/22
«
«
0 01/05/22 100% CD BN1 01/10/22 100% CD BN2 04/01/22 SCOPE CORRECTION JMM

ELECTRICAL

DETAILS
CHANNELIZING DEVICES (TYP.)

TRAFFIC CONTROL FOR WORK ON SHOULDERS - RESIDENTIAL AREA WORK AREA TRAFFIC CONTROL HANDBOOK 2019 14TH EDITION

PER STANDARDS AND GUIDANCE OF CA-MUTCD
~5' OR GREATER PAVED SHOULDERS~
~5' OR GREATER PAVED SHOULDERS~ ~5' OR GREATER PAVED SHOULDERS~ A L/3
E

SHOULDER

WORK WORK AREA IN RIGHT OF WAY
SHARE
THE
ROAD
GENERAL NOTES:

1. ALL WORK AND MATERIALS SHALL COMPLY WITH THE CALIFORNIA MANUAL ON UNIFORM TRAFFIC CONTROL DEVICES (MUTCD), 2014 EDITION.

2. ALL STRIPING AND MARKINGS SHALL CONFORM TO THE STATE OF CALIFORNIA 2010 STANDARD PLAN A20A.

3. THE CONTRACTOR SHALL PROVIDE FOR ACCESS TO ALL ADJACENT PROPERTIES.

4. FLASHING YELLOW BEACONS, TYPE "B", SHALL BE USED ON ALL W20-1 SIGNS AND ON ALL TYPE III BARRICADES GUARDING THE WORK OVERNIGHT.

5. ALL SIGNS SHALL BE REFLECTORIZED AND STANDARD SIZE.6. ALL TUBULAR DELINEATORS AND CONES SHALL BE 28" MINIMUM HEIGHT, REFLECTORIZED AND MAINTAINED ERECT IN

THE INDICATED POSITION AT ALL TIMES, AND SHALL BE REPAIRED, REPLACED, OR CLEANED AS NECESSARY TO PRESERVE THEIR APPEARANCE AND CONTINUITY, AND SHALL INCLUDE A 12" HIGH-INTENSITY REFLECTORIZED SLEEVE..

7. THE CONTRACTOR SHALL MAINTAIN, ON A CONTINUOUS BASIS, ALL SIGNS, DELINEATORS, BARRICADES, ETC., TO ENSURE PROPER FLOW AND SAFETY OF TRAFFIC DURING CONSTRUCTION.

8. THE CONTRACTOR SHALL HAVE SIGNS, DELINEATORS, BARRICADES, ETC., PROPERLY INSTALLED PRIOR TO COMMENCING CONSTRUCTION.

9. CONSTRUCTION OPERATIONS SHALL BE CONDUCTED IN SUCH A MANNER AS TO CAUSE AS LITTLE INCONVENIENCE AS POSSIBLE TO ABUTTING PROPERTY OWNERS.

10. ADDITIONAL TRAFFIC CONTROLS, TRAFFIC SIGNS OR BARRICADING MAY BE REQUIRED IN THE FIELD. THE CONTRACTOR

SHALL BE RESPONSIBLE FOR THE PLACEMENT OF ANY ADDITIONAL DEVICES NECESSARY TO ASSURE THE SAFETY TO THE PUBLIC AT ALL TIMES DURING CONSTRUCTION.

11. EXACT LOCATION AND TYPE OF CONSTRUCTION SIGNS SHALL BE DIRECTED BY THE ENGINEER BASED UPON CONSTRUCTION CONDITIONS.

12. MOVE DELINEATORS AND/OR CONES TO SIDEWALK DURING NON-WORKING HOURS. REMOVE BARRICADES ETC., FROM TRAVEL LANE.

13. REMOVE OR TURN OFF SIGNS DURING NON-WORKING HOURS.14. ALL CONFLICTING LINES, EXISTING CURB PAINT, AND MARKINGS SHALL BE REMOVED BY WET SANDBLASTING OR OTHER APPROVED METHOD PRIOR TO INSTALLATION OF NEW/TEMPORARY STRIPING. ALL CONFLICTING RAISED PAVEMENT MARKERS SHALL BE REMOVED. PAVEMENT THAT IS DAMAGED DUE TO REMOVAL OF MARKERS SHALL BE REPAIRED TO THE SATISFACTION OF THE CITY ENGINEER AND/OR STATE INSPECTOR.

15. DIMENSIONS BASED ON GIS MAPPING DATA AND/OR RECORD DRAWINGS AND NOT A SURVEY.16. TIME OF LANE CLOSURE TO BE IN ACCORDANCE WITH REQUIREMENTS OF JURISDICTION.17. ADDITIONAL ADVANCED FLAGGERS MAY BE REQUIRED. FLAGGER SHOULD STAND IN A CONSPICUOUS PLACE, BE VISIBLE TO APPROACHING TRAFFIC. PLACE A MINIMUM OF FOUR CONES AT 40-FT INTERVAL IN ADVANCE OF FLAGGER STATION AS SHOWN.
-225-
Comcast Cable Communications, Inc.
3055 Triad Place
Livermore, CA 94551-9559
Town Of Hillsborough
Building and Planning
Attn: Doug Belcik, Associated Civil Engineer
1600 Floribunda Avenue
Hillsborough, CA 94010
RE: Design Standards for Infrastructure Deployments HMC 1.24.020 Dear Mr. Belcik:

Thank you for responding to Comcast’s recent email regarding our request for an exception to the above-referenced Hillsborough Municipal Code section related to placement of infrastructure in Hillsborough’s public right of way (PROW). As you may be aware, Comcast is looking to deploy back-up power cabinets n order to fully implement the CPUC’s Wireline Resiliency mandate; you can find more information about that mandate here: https://www.cpuc.ca.gov/industries-and-topics/internetand-phone/service-quality-and-etc/communications-network-resiliency.

Comcast is seeking to place seven (7) battery cabinets in the PROW in Hillsborough; due to the stored energy required by the CPUC in the event of a commercial power disruption or outage, the cabinets are larger than generally required.

Comcast requests that the City Engineer recommend that the Town Council grant the exception as we qualify under the findings set forth in HMC 1.24.020, as follows:

The city engineer shall not recommend an exception unless the city engineer finds that:

A. Granting the exception will not be materially detrimental to the public health, safety or welfare or injurious to other property in the town, and B. There are special circumstances or conditions affecting the property that make strict compliance with the subject requirement(s):

1.Unjustifiable from a cost/benefit analysis; or

2.Unnecessary for purposes of protecting the public health, safety or welfare; or

3.Unadvisable for purposes of protecting the public health, safety or welfare.

In regard to section A, our technology has been certfied by all state & federal standards and poses no threat or impact to the public safety. In fact, the project has been deemed necessary to enhance public safety by ensuring essential services are available during a commmercial power outage event, at no cost to the public or Town of Hillsborough.

ATTACHMENT 6
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Regarding section B, as stated above, the amount of stored energy required to provide seventy-two (72) hours of backup to our network is not compatible with the Town’s current above-ground cabinet size requirements, thus making this uneccessary and unadvisable for purposes of protecting the public health, saftey or welfare.

Comcast is a willing partner with the Town of Hillsborough and its residents to assist in any landscaping betterment, as well other considerations where these cabinets will need to be deployed to support our existing infrustucture power supply units that have been in place for numerious years. We are very willing to meet with Town officials to discuss this program in depth.

Please feel free to contact me to discuss any questions/concerns that may arise from our request for this exception.

We are looking forward to the opportunity to provide a more resilient network to the Town of Hillsborough. We appreciate the continued partnership and appreciate your prompt response.

Best,
Billy Glisson
Area Construction Manager-Comcast
Ph: 925/337-0726
[email protected]
-227-
Public Works Department
Ph. 650-375-7444 |Fx. 650-548-0859 | 1600 Floribunda Ave., Hillsborough, CA 94010 | www.hillsborough.net

TOWN OF HILLSBOROUGH
California
NAME

ADDRESS
ZIP

CITY COUNCIL NOTICE OF PUBLIC HEARING
ITEM SUBJECT: Resolution approving the City Engineer’s recommendation to Grant Comcast’s request for exception to policy 19-01 to install seven battery cabinets in the public right-of-way pursuant to CEQA guideline 15303.

SUMMARY: Comcast is seeking to place seven battery cabinets in the Town’s Public Right-of-way, to fully implement the California Public Utilities Commission’s (CPUC) Wireline Resiliency Mandate. More information on the mandate can be found at the following link:
https://www.cpuc.ca.gov/industries-and-topics/internet-and-phone/service-quality-and-etc/communicationsnetwork-resiliency The locations of the proposed battery cabinets are as follows:
• 1020 Crystal Springs Road
• 1305 Hayne Road
• 1025 Tournament Drive
• 1025 Vista Road
Restrictions to above ground wireless facilities, including Comcast’s proposed battery cabinets, have been set by the Town’s Policy 19-01, establishing location and design standards for wireless communication facilities and other infrastructure deployments. Per the current policy, Comcast’s proposed battery cabinets are not permitted, however, per Municipal Code 1.24.020 – City Engineer’s Findings, the City Engineer can recommend Council to grant an exception to any policy if deemed necessary for public health, safety, or welfare. In this case, the battery cabinets pose no threat or impact to public health or safety and will upgrade the communications network to provide seventy-two hours of backup power, which is essential for the safety and welfare of Town residents in the event of a power outage.

Allowing this installation would comply with CPUC’s Wireline Resiliency Mandate. Therefore, the City Engineer recommends granting Comcast’s request for exception to Policy 19-01 to install seven battery cabinet’s in the Public right-of-way.

The proposal will be considered by the City Council at its meeting on:

Monday, March 13, 2023, at 6:00 PM
ATTACHMENT 7
-228-
Public Works Department
Ph. 650-375-7444 |Fx. 650-548-0859 | 1600 Floribunda Ave., Hillsborough, CA 94010 | www.hillsborough.net

TOWN OF HILLSBOROUGH
California
To attend the meeting in person: 1600 Floribunda Avenue, Hillsborough, CA 94010 To provide Public Comment in person: Complete a yellow speaker card and submit it to the City Clerk.

To participate in the meeting via Zoom Video Conference:
• Log in to the meeting at
https://us06web.zoom.us/j/88482343386?pwd=bWxDMGg2YS9tQjJ6clFVeFdycWFHdz09 • Dial-in via phone: 1 669 444 9171
Meeting ID: 884 8234 3386
Passcode: 729466
To provide Public Comment via Zoom: Request to speak using the “raise hand” feature in Zoom or, if calling in by phone, by pressing *9 on the telephone keypad prior to the close of the public comment period. In response, the Town will unmute the speaker and allow them to speak up to three minutes.

AGENDA MATERIALS: The City Council meeting agenda and staff report for this item will be posted on the Town’s website at https://www.hillsborough.net/agendacenter no later than Friday, March 10, 2023.

PUBLIC COMMENTS: Members of the public may provide written comments via email to the City Clerk at [email protected] or by mail/in person at 1600 Floribunda, Hillsborough, 94010. To ensure your comment is delivered to the City Council, please submit no later than 4:00 p.m. on Monday, March 13, 2023. To be included in the staff report published prior to the meeting, written comments must be received by 5 p.m. on Wednesday, March 8, 2023.

QUESTIONS: Please direct questions to Doug Belcik, Acting Senior Engineer at [email protected]. -229-
61236.02002\41055345.8
Exhibit A

1. The permittee shall execute and record an agreement regarding revocable permit in a form acceptable to the city attorney setting forth the circumstances under which the permittee shall be required to remove the outdoor fixture from the right-of-way.

2. General Conditions.

A. Compliance Report. Within thirty (30) days after installation of infrastructure deployment(s), the permittee shall deliver to the city manager a written report that demonstrates that its infrastructure deployment(s) as constructed and normally-operating fully complies with the conditions of the permit, including height restrictions, and applicable safety codes, including structural engineering codes. The demonstration shall be provided in writing to the city manager containing all technical details to demonstrate such compliance, and certified as true and accurate by qualified professional engineers, or, in the case of height or size restrictions, by qualified surveyors. This report shall be prepared by the permittee and reviewed by the Town at the sole expense of the permittee, which shall promptly reimburse the Town for its review expenses.

1. If the initial report required by this section shows that the infrastructure deployment(s) do not so comply, the permit shall be deemed suspended, and all rights thereunder of no force and effect, until the permittee demonstrates to the Town's satisfaction that the infrastructure deployment(s) is compliant. Permittee shall promptly reimburse the Town for its compliance review expenses.

2. If the initial report required by this section is not submitted within the time required, the city manager or its selected and qualified professionals may, but is not required to, undertake such investigations as are necessary to prepare the report described in paragraph A. permittee shall within five (5) days after receiving written notice from the city manager that the Town is undertaking the review, shall deposit such additional funds with the city manager to cover the estimated cost of the Town obtaining the report. Once said report is obtained by the Town, the Town shall then timely refund any unexpended portion of the permittee's deposit. The report shall be provided to the permittee. If the report shows that the permittee is non-compliant, the Town may suspend the permit until the permittee demonstrates to the Town's satisfaction that the infrastructure deployment(s) is compliant.

3. If the infrastructure deployment(s) is not brought into compliance promptly, the Town may revoke the permit and require removal of the infrastructure deployment(s) and all related equipment and improvements to return the site to its original condition before the installation or construction occurred.

B. Permit Expiration. The permit will automatically expire six (6) months from the approval date (the "build-out period") unless the permittee obtains all other permits and approvals required to install, construct and/or operate the ATTACHMENT 8
-230-
61236.02002\41055345.8
approved infrastructure deployment(s), which includes without limitation any permits or approvals required by the any federal, state or local public agencies with jurisdiction over the subject property, the infrastructure deployment(s) or its use; provided that the city manager may extend this build-out period at the request of the permittee for good cause shown. If this build-out period expires, the Town will not extend the build-out period but the permittee may resubmit a complete application, including all application fees, for the same or substantially similar project.

C. Code Compliance. The permittee shall also comply with Chapter 12.04 and all other requirements of this Code.

D. Government Approvals. The permittee shall obtain and maintain all other applicable permits, approvals, and agreements necessary to install and operate the infrastructure deployment(s) in conformance with federal, state, and local laws, rules and regulations. The permittee expressly acknowledges and agrees that this obligation is intended to be broadly construed and that no other specific requirements in these conditions are intended to reduce, relieve or otherwise lessen the permittee's obligations to maintain compliance with all laws. No failure or omission by the Town to timely notice, prompt or enforce compliance with any applicable provision in the Hillsborough Municipal Code, this policy any permit, any permit condition or any applicable law or regulation, shall be deemed to relieve, waive or lessen the permittee's obligation to comply in all respects with all applicable provisions in the Hillsborough Municipal Code, this policy, any permit, any permit condition or any applicable law or regulation.

E. Inspection. The Town or its agents may inspect the permitted infrastructure deployment(s) and property and may enter onto a site to inspect the deployment(s) upon reasonable notice to the permittee. In case of an emergency or risk of imminent harm to persons or property within the vicinity of permitted infrastructure deployment(s), the Town reserves the right to enter upon the sites of the infrastructure deployment(s) and to support, disable, or remove those elements of the infrastructure deployment(s) posing an immediate threat to public health and safety. The permittee, if present, may observe the Town's officers, officials, staff, agents or other designees while any such inspection or emergency access occurs.

F. Contact Information. The permittee shall maintain on file with the Town and onsite at the infrastructure deployment(s) contact information of all parties responsible for maintenance of the infrastructure deployment(s).

G. Indemnification. The permittee and, if applicable, the private property owner shall defend, indemnify and hold harmless the Town, its agents, officers, officials, and employees:

1. From any and all damages, liabilities, injuries, losses, costs and expenses and from any and all claims, demands, lawsuits, writs of mandamus, and other actions or proceedings brought against the Town or its agents, -231-
61236.02002\41055345.8
officers, officials, or employees to challenge, attack, seek to modify, set aside, void or annul the Town's approval of the permit(s); and

2. From any and all damages, liabilities, injuries, losses, costs and expenses and any and all claims, demands, lawsuits, or causes of action and other actions or proceedings of any kind or form, whether for personal injury, death or property damage, arising out of or in connection with the activities or performance of the permittee or, if applicable, the private property owner or any of each one's agents, employees, licensees, contractors, subcontractors, or independent contractors ((i) and (ii) collectively are "actions").

H. Termination. A permit may be terminated if the Town determines that the permit was granted based on false, misleading or incomplete information; if a material provision of the permit is no longer enforceable; or if the permittee violates a condition of the permit, or modifies the infrastructure deployment(s) or support structures without permission.

I. Performance Bond. The permittee shall file with the Town, and shall maintain in good standing throughout the term of the permit, a performance bond or other surety or another form of security for the removal of the infrastructure deployment(s) in the event that the use is abandoned or the permit expires, or is revoked, or is otherwise terminated. The security shall be in the amount equal to one hundred fifteen percent (150%) of the cost of physically removing each infrastructure deployment and all related facilities and equipment on the site. The permittee shall reimburse the Town for staff time associated with the processing and tracking of the bond, based on established hourly rates. Reimbursement shall be paid when the security is posted.

J. Minimize Disruptions. The permittee shall make a good faith effort to minimize project-related disruptions to adjacent properties. Site improvement and construction work, including set-up, loading or unloading of materials or equipment, performed as part of this project is subject to the provisions of Section 8.32.040. Emergency maintenance and repairs are exempt from the restricted hours. Violation of this condition may result in issuance of a stop work order or administrative citations.

K. Graffiti. All graffiti on any of the infrastructure deployment(s) must be removed at the sole expense of the permittee within forty-eight (48) hours after notification from the Town.

L. Compliance, Generally. All infrastructure deployment(s) within the Town shall be designed, maintained, and shall be operated at all times to comply with the provisions of the Code, this policy and the following other requirements:

1. Conditions in any permit or license issued by a local, state, or federal agency, which has jurisdiction over the infrastructure deployment; -232-
61236.02002\41055345.8

2. Rules, regulations, and standards of the state and federal governments and the town, including without limitation the FCC, the CPUC and the Hillsborough Municipal Code.

3. Easements, covenants, conditions, and/or restrictions on or applicable to the underlying real property;

4. Rules, regulations, and standards of the town governing underground utility districts;

5. All other laws, codes, and regulations applicable to the infrastructure facility; including the California Environmental Quality Act (CEQA).

M. Maintenance. Without limiting the foregoing, all infrastructure deployment(s) shall be maintained in good working condition and to the visual standards established at the time of approval over the life of the permit(s) as may be extended. The infrastructure deployment(s) and surrounding areas shall remain free from trash, debris, litter, graffiti, and other forms of vandalism. Any damage shall be repaired as soon as is practicable, and in no instance more than ten (10) calendar days from the time of notification by the Town or after discovery by the permittee.

N. Revocation. A permit may be revoked if permittee is not in compliance with permit conditions, if the permit conditions are not enforceable, or for a failure to comply with any provision of the Hillsborough Municipal Code relating to the permit, or relating to the infrastructure deployment associated with the permit ("default event"). By way of example and not limitation, a refusal to timely remove infrastructure deployment(s) located in the rights-of-way where required in connection with a public works project would be a default event.

1. The city manager may revoke a permit only after: (i) written notice of the default event has been provided to the permittee; and (ii) the permittee has been afforded a reasonable opportunity to cure and comply with its permit, or demonstrate that no default event occurred.

2. If the permittee fails to cure, the City Council or the City Council through a designee shall conduct a noticed public hearing where the permittee shall be afforded an opportunity to speak and be heard and to provide written material prior to the hearing. If the City Council, after the public hearing, finds that the infrastructure deployment(s) or the permittee has violated any law regulating the infrastructure deployment(s) or has failed to comply with these requirements, the permit, any applicable agreement or any condition of approval the City Council may revoke the permit.

3. Upon revocation, the City Council may require the removal of the infrastructure deployment(s) or take any other legally permissible action or combination of actions necessary to protect the health and welfare of the Town.

O. Abandonment. Any permittee who abandons or discontinues use of an infrastructure deployment for a continuous period of ninety (90) days shall so notify the city manager by certified mail within thirty (30) days after the ninety (90) day period.
-233-
61236.02002\41055345.8

1. If the city manager believes an infrastructure deployment has been abandoned or discontinued for a continuous period of ninety (90) days, the city manager shall send a notice of abandonment or discontinuation to the permittee stating why the Town believes the infrastructure deployment to be abandoned or discontinued. Failure of the permittee to reply to the city manager in writing within thirty (30) days after receiving, rejecting, or returning the Town's certified letter shall entitle the city manager to make a determination that the infrastructure deployment is, in fact, abandoned or discontinued.

2. Upon declaration of the city manager that the infrastructure deployment is abandoned or discontinued, as to private property, the permittee or owner of the affected real property shall have ninety (90) days from the date of the declaration or a further reasonable time as may be approved by the city manager, within which to complete one of the following actions:
i. Reactivate use of the infrastructure deployment;
ii. Transfer the rights to use the infrastructure deployment to another entity (who shall be subject to all the provisions of this policy) and the entity immediately commences use of the infrastructure deployment; or iii. Remove the infrastructure deployment and any supporting structures installed solely in connection with the infrastructure deployment, and restore the site to be consistent with the then-existing surrounding area.

3. If after the ninety (90) day time period set forth in subsection 1 of this section none of the required actions in subsections 2.i through 2.iii of this section has occurred, the City Council at a noticed public hearing may declare that the infrastructure deployment is deemed abandoned.

The city manager shall provide notice of such finding to the permittee last known to use the infrastructure deployment and, if applicable, to the owner of the affected private real property, providing thirty (30) days from the date of the notice within which to complete one of the following actions:
i. Reactivate use of the infrastructure deployment, subject to the terms and conditions of the applicable permit;
ii. Transfer the rights to use the infrastructure deployment to another operator (who shall be subject to all the provisions of the Code and this policy); or
iii. Remove the infrastructure deployment and any supporting structures installed solely in connection with the infrastructure deployment, and restore the site to be consistent with the then-existing surrounding area.

4. If there is no reactivation, transfer or removal as set forth in subsection 3 of this section, the Town may thereafter remove the abandoned infrastructure deployment, repair any and all damages to the premises caused by such removal, and otherwise restore the premises as is -234-
61236.02002\41055345.8
appropriate to be in compliance with applicable codes. If the Town removes the infrastructure deployment, the Town may, but shall not be required to, store the removed infrastructure deployment or any part thereof, and may use it, sell it or dispose of it in any manner deemed by the Town to be appropriate. The entity that abandoned the infrastructure deployment, or its successor in interest, and if on private property, the private property owner shall be jointly liable for the entire cost of such removal, repair, restoration and storage and shall remit payment to the Town promptly after demand therefor is made. In addition, the city council, at its option, may utilize any financial security required in conjunction with granting the permit to recover such costs.

5. Until the cost of removal, repair, restoration and storage is paid in full, a lien shall be placed on the infrastructure deployment and any related personal property and any private real property on which the infrastructure deployment was located for the full amount of the cost of removal, repair, restoration and storage. The city clerk shall cause the lien to be recorded with the San Mateo County recorder.

P. Transfer. A permittee shall not assign or transfer any interest in its permit(s) for infrastructure deployment(s) without advance written notice to the Town.

The notice shall specify the identity of the assignee or transferee of the permit, as well as the assignee or transferee's address, telephone number, name of primary contact person(s), and other applicable contact information, such as an e-mail address or facsimile number. The new assignee or transferee shall comply with all of the permit's terms and conditions of approval, and shall submit to the Town a written acceptance of the permit's terms and conditions and a written assumption of the obligations thereafter accruing under such permit prior to the date that such assignment or transfer is intended to take effect.

Q. Records. Throughout the permit term, the permittee must maintain a complete and accurate copy of the written administrative record, which includes without limitation the permit application, the approved permit, the approved plans and photo simulations incorporated into the approval, all conditions associated with this approval, any ministerial permits or approvals issued in connection with this approval and any records, memoranda, documents, papers and other correspondence entered into the public record in connection with the permit (collectively, "records"). If the permittee does not maintain such records as required in this condition, any ambiguities or uncertainties that would be resolved by inspecting the missing records will be construed against the permittee. The permittee shall protect all records from damage from fires, floods and other hazards that may cause deterioration.

The permittee may keep records in an electronic format; provided, however, that hard copies or electronic records kept in the Town's regular files will control over any conflicts between such Town-controlled copies or records and the permittee's electronic copies, and complete originals will control over all other copies in any form. The requirements in this condition shall not be construed to create any obligation to create or prepare any records not otherwise required to be created or prepared by other applicable laws. -235-
61236.02002\41055345.8
Compliance with the requirements in this condition shall not excuse the permittee from any other similar record-retention obligations under applicable law.

R. Landscaping. The permittee shall replace any landscape features damaged or displaced by the construction, installation, operation, maintenance or other work performed by the permittee or at the permittee's direction on or about the site. If any trees are damaged or displaced, the permittee shall hire and pay for a licensed arborist to select, plant and maintain replacement landscaping in an appropriate location for the species. Only International Society of Arboriculture certified workers under the supervision of a licensed arborist shall be used to install the replacement tree(s), Any replacement tree must be substantially the same size as the damaged tree, The type, size and location for a replacement tree shall be subject to the city manager's approval. The permittee shall, at all times, be responsible to maintain any replacement landscape features.

S. Reimbursement. The permittee acknowledges and agrees that (i) the permittee's request for authorization to construct, install and/or operate the infrastructure deployment(s) will cause the Town to incur costs and expenses; (ii) the permittee shall be responsible to reimburse the Town for all costs incurred in connection with the permits, which includes without limitation costs related to application review, permit issuance, site inspection and any other costs reasonably related to or caused by the request for authorization to construct, install and/or operate the infrastructure deployment; (iii) any application fees required for the application may not cover all such reimbursable costs and that the permittee shall have the obligation to reimburse Town for all such costs ten (10) days after a written demand for reimbursement and reasonable documentation to support such costs; and (iv) the Town shall have the right to withhold any permits or other approvals in connection with the infrastructure deployment(s) until and unless any outstanding costs have been reimbursed to the Town by the permittee.

T. Town Work. The permittee acknowledges that the Town, in its sole discretion and at any time, may: (i) change any street grade, width or location; (ii) add, remove or otherwise change any improvements in, on, under or along any street owned by the Town or any other public agency, which includes without limitation any sewers, storm drains, conduits, pipes, vaults, boxes, cabinets, poles and utility systems for gas, water, electric or telecommunications; and/or (iii) perform any other work deemed necessary, useful or desirable by the Town (collectively, "Town work"). The Town reserves the rights to do any and all Town work without any admission on its part that the Town would not have such rights without the express reservation in this permit. If the Public Works Director determines that any Town work will require the permittee's infrastructure deployment(s) located in the public rights-of-way to be rearranged and/or relocated, the permittee shall, at its sole cost and expense, do or cause to be done all things necessary to accomplish such rearrangement and/or relocation. If the permittee fails or refuses to either -236-
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permanently or temporarily rearrange and/or relocate the permittee's infrastructure deployment(s) within a reasonable time after the Public Works Director's notice, the Town may (but will not be obligated to) cause the rearrangement or relocation to be performed at the permittee's sole cost and expense. The Town may exercise its rights to rearrange or relocate the permittee's facility without prior notice to permittee when the Public Works Director determines that the Town work is immediately necessary to protect public health or safety. The permittee shall reimburse the Town for all costs and expenses in connection with such work within ten (10) days after a written demand for reimbursement and reasonable documentation to support such costs.

2. Specific Right-of-Way Construction Conditions.

A. Roadway cuts and excavations shall be subject to HMC Section 12.04.130 “Street Preservation”.

B. Work location is in proximity to existing Town sewer and water main. Electrical service shall maintain a minimum 1’ vertical, and 3’ horizontal clearance from sewer and water mains. It is the responsibility of the permittee to ensure the protection of both public and private assets. Permittee will be liable for any damage to properties within the scope of this project.

C. 24 hour notice shall be given to the Town for inspection of all trench work. The notice must be via phone call at (650) 375-7444.

D. Trenches shall be backfilled per Town standard detail C16.

E. Permittee shall not backfill more than 6” sand above gas pipe.

F. Permittee shall not use jackhammer to excavate the paved road. Restoration and paving of the surfaces must comply with the Town of Hillsborough’s standards.

G. Permittee shall comply with the approved traffic control plan. One (1) lane shall remain open to traffic during the course of the project. Full road closures are not permitted for this project. Construction hours are limited between the hours of 8:00am – 5:00pm.

H. Permittee shall provide a written notice to all residents/property owners adjacent and across from construction areas at least one (1) week in advance of the work.

The notice shall provide property owners with the date(s) of construction, description of the work, and contact information for Comcast project staff, including a name and phone number.

I. Access to private driveways shall be maintained at all times. If a private driveway must be temporarily closed to accommodate the work, permittee shall provide written notification to the residents at least one (1) week in advance. -237-
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J. “No Parking” signs shall be posted a minimum of seventy-two 72 hours in advance of the restriction. The date and time of the restrictions shall be clearly posted on the “No Parking” signs.
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1 Doug Belcik
From: ryan Thompson
Sent: Friday, March 3, 2023 3:34 PM
To: Doug Belcik
Cc: Danielle Beare
Subject: Re: Comcast Battery Locations - 1025 Vista Road Doug, I am not sure how formal the complaint needs to be, but we are very much opposed to the placement of the batteries in front of our house.

First, as you know, the only park in town for children to play is Vista Park. So too for dogs. Parking near Vista is justifiably difficult if not impossible. Cars are constantly parked (legally and illegally) in front of our home and in the exact place proposed by comcast. Children are running across the street on a daily basis, and adding Comcast service trucks to this complicated location is going to be dangerous. Birthday parties, AYSO soccer etc all take place at Vista.

Again it is the ONLY park in Hillsborough. This also applies to dog walkers who park in front of the proposed location EVERY morning. That said, cars will block the battery cabinets and likely reduce the amount of parking already in short supply. Fire season is exactly the same season as AYSO soccer here in Hillsborough. Cars are parked on BOTH sides of Vista across from the park. It makes passage one way most of the time during weekends - this seems like a very dangerous situation going forward. Adding Comcast cabinets or service trucks accessing them will make this a danger zone and traffic nightmare.

Second, we are starting a landscape project and we need to add a pedestrian gate to access our home. The current location is exactly where the pedestrian access gate is proposed to be located.

Third, the cabinets (directly in front of our home) is an eyesore and will significantly reduce the value of our property. There is SO much land in Hillsborough where boxes could be placed that are NOT in front of ANHYONE's house. There are literally acres of fence line where a placement would not cause significant harm to property value. My wife and I just finished the remodel of our home - improving the value of the home and the neighborhood. Cabinets would reduce it.

Fourth - the town has spent considerable amounts of money beautifying the areas around Vista Park - the park itself, the islands etc. Placing the eyesore of battery cabinets will hurt these efforts and waste taxpayer money.

Fifth - Comcast is claiming that there is no danger associated with these boxes. Where is the science behind batteries not being toxic to humans and children? The boxes contain batteries that are harmful to people; known carcinogens. I don't think placing them in front of a park for children (AYSO, birthday parties etc) is a good idea. Is it a good place to test the battery's safety? What if the batteries are damaged? Earthquake? I suspect MANY parents who bring their children to the park would.

Last, there is an important fire hydrant close to where the cabinets would be located. Having Comcast trucks potentially block access to the hydrant could be a danger particularly during fire season when the cabinets would be most in use.

This is exacerbated by the fact that we are in front of a park where children play.

Unfortunately the downsides are high enough for our family and community, that we will go to all lengths to block this.

Best,
Ryan and Danielle Thompson
On Fri, Mar 3, 2023 at 10:30 AM Doug Belcik <[email protected]> wrote:

Hi Ryan,
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ATTACHMENT 9

TOWN OF HILLSBOROUGH
San Mateo County
1600 Floribunda Avenue
Hillsborough, CA 94010
8 PUBLIC HEARING

CITY COUNCIL MEETING
MARCH 13, 2023

AGENDA STAFF REPORT
ITEM SUBJECT: RESOLUTION APPROVING A REVOCABLE ENCROACHMENT PERMIT APPLICATION FOR 690 FAIRWAY CIRCLE PURSUANT TO CEQA GUIDELINE 15303 SUMMARY: The owner of 690 Fairway Circle submitted a revocable encroachment permit application to the Town to install outdoor fixtures within the public right of way. The proposed outdoor fixtures include a two-foot-tall freestanding concrete wall with 3.5 foot tall iron railings and a stucco finish, a 5.5-foot-tall iron pedestrian gate, a 5.5-foot-tall automatic driveway gate, a 4.5- foot-tall stucco mailbox and four (4) 7 foot, 8 inch-tall stucco columns. The proposed improvements are shown on the attached Site Plan (Exhibit B).

Per the Hillsborough Municipal Code (HMC) 12.12.030.C, the City Council shall approve, conditionally approve or deny the application based on public health, safety and welfare needs and taking into account in that regard, the number and location of any other outdoor fixtures located within the right-of-way in the vicinity of the proposed outdoor fixture, the likelihood of the Town's need for access to the affected portion of the right-of-way, the effect that allowing the outdoor fixture within the right-of-way would have on parking and on traffic safety, and any other factors that the council deems relevant to a determination of the public health, safety, and welfare needs.

For a typical home in Hillsborough, the right-of-way width between the street and the front property line is between about five and ten feet. At 690 Fairway Circle, this distance varies between 37 feet and 44 feet, which limits the buildable area in front of the home. The owner desires to install the wall, gates, and columns between 17 and 36 feet from the street, which is in a location more consistent with the front property lines of the neighboring properties, and to have more usable space in an enclosed and secured front yard. The Town does not anticipate the need for use of the area enclosed by the outdoor fixtures, and the outdoor fixtures will not affect necessary access to Town utilities and infrastructure. Staff determined there are no impacts to parking, traffic, or other any other relevant factors.

Upon City Council approval of the application, the owner must enter into a revocable encroachment permit agreement with the Town. The agreement calls for the owner to remove the proposed outdoor fixtures from the public right-of-way, at the owner's expense, should removal be needed by the Town in the future. The owner must then complete the design review process and obtain necessary construction permits for the improvements. Notices for the public hearing have been sent to adjoining neighbors as required by the HMC.

No public comments have been received for this item as of 5:00 p.m. on Wednesday, March 8, 2023. Public comment letters received after 5:00 p.m. on March 8, 2023 and prior to 4:00 p.m. on Monday, March 13, 2023 will be emailed to the City Council and posted on the Town website. -241-
Agenda Staff Report - Hillsborough City Council
March 13, 2023