Los Altos Hills City Council
September 28, 2023

TOWN OF LOS ALTOS HILLS September 28, 2023
Staff Report to the City Council
SUBJECT: ADOPTION (SECOND READING) OF ORDINANCE 610 AMENDING TITLE 9 (SUBDIVISIONS AND PLAN LINES) AND TITLE 10
(ZONING AND SITE DEVELOPMENT) OF THE LOS ALTOS HILLS
MUNICIPAL CODE TO ADD ARTICLE 16 TO CHAPTER 1, AND
ARTICLE 15 TO CHAPTER 1, RESPECTIVELY, ESTABLISHING

REGULATIONS FOR THE SUBDIVISION AND DEVELOPMENT OF
QUALIFIED SENATE BILL PROPERTIES.

FROM: Elaine Ling, Senior Planner
APPROVED: Peter Pirnejad, City Manager
RECOMMENDATION: That the City Council:

Waive second reading and adopt the ordinance amending the Town’s Subdivision and Zoning Ordinances to implement permanent SB 9 regulations, as shown in Attachment 1.

BACKGROUND
On August 17, 2023, the City Council voted unanimously to waive reading and introduce the proposed ordinance with certain amendments to amend Title 9 (subdivisions and plan lines) and title 10 (zoning and site development) of the Los Altos Hills Municipal Code to add Article 16 to Chapter 1, and Article 15 to Chapter 1, respectively, establishing regulations for the subdivision and development of qualified senate bill properties. The ordinance in Attachment 1 incorporates the amendments introduced by Council on August 17 and minor clerical corrections for typographical errors. The ordinance is now ready for adoption.

It is recommended that the Council adopt the ordinance at this regular meeting considering the current interim urgency SB 9 ordinance will expire on October 31, 2023.

ENVIRONMENTAL REVIEW
The proposed ordinance amendments are exempt from California Environmental Quality Act (CEQA) pursuant to Government Code sections 65852.21(j) and 66411.7(n). 2023 CITY COUNCIL STRATEGIC PRIORITIES
This is part of 2023 City Council Priorities under ‘Quality of Life and Community Character,’ and satisfies the milestone “Adopt SB 9 Ordinance” under the key project “Permanent SB 9 Ordinance.”
AGENDA ITEM #4.J
P.P.
(Adjourned from September 21, 2023)

City Council Staff Report Page 2
Adoption of SB 9 Ordinance
September 21, 2023
2 FISCAL IMPACT:

There are sufficient funds in the FY2023-24 Operating Budget to cover staff and City Attorney’s time and no additional funds need to be appropriated.

ATTACHMENTS:

1. Proposed SB 9 Ordinance

2. August 17, 2023, Staff Report to the City Council

ORDINANCE ______
AN ORDINANCE OF THE TOWN OF LOS ALTOS HILLS AMENDING TITLE 9 (SUBDIVISIONS AND PLAN LINES) AND TITLE 10 (ZONING AND SITE DEVELOPMENT) OF THE LOS ALTOS HILLS MUNICIPAL CODE TO ADD ARTICLE 16 TO CHAPTER 1, AND ARTICLE 15 TO CHAPTER 1, RESPECTIVELY, ESTABLISHING REGULATIONS FOR THE SUBDIVISION AND DEVELOPMENT OF QUALIFIED SENATE BILL 9 PROPERTIES WHEREAS, a severe housing crisis exists in the state with the demand for housing outstripping supply;
WHEREAS, in September 2021, Governor Newsom signed into law Senate Bill 9 (“SB 9”), entitled the “California Home Act”. Among other provisions, this bill adds Sections 65852.21and 66411.7 to the Government Code, and became effective on January 1, 2022.

WHEREAS, SB 9 requires cities and counties, including the Town of Los Altos Hills (“Town”), to ministerially approve a parcel map for an urban lot split and/or a proposed housing development containing a maximum of two residential units within a single-family residential zone, if the twounit or subdivision project meets certain statutory criteria. SB 9 specifies that proposed projects and subdivisions cannot be situated in prohibited locations under Government Code Section 65913.4(a)(6)(B)-(K), such as in an earthquake fault zone, lands under conservation easement, a federally designated flood plain, and high fire hazard severity zones as defined under state law.

WHEREAS, SB 9 further restricts the standards and regulations that local agencies, including the Town, may impose on qualifying two-unit or subdivision projects. For example, SB 9 specifies that local agencies may impose only objective zoning, subdivision, and design standards that do not conflict with the statutes, but such standards must not physically preclude a unit size of 800 square feet. In addition, SB 9 permits a local agency to deny a proposed two-unit or subdivision project only if the agency’s Building Official makes a written finding based on preponderance of the evidence that the proposed project would have a specific, adverse impact upon public health and safety or the physical environment, which is a very high standard for municipalities to meet under the statute.

WHEREAS, initially on December 16, 2021, pursuant to duly noticed public hearings, and subject to findings of urgency specifying the circumstances constituting the need for the immediate preservation of the public peace, health, and safety, the Town of Los Altos Hills adopted an urgency ordinance and further extended it for an additional twenty-two (22) months and fifteen (15) days to October 31, 2023 to establish certain regulations for Senate Bill (SB) 9 units in light of the need for the immediate preservation of the public health, safety and welfare as specified in the findings supporting the urgency ordinance and its extension.

WHEREAS, the Town’s 2023-2031 Housing Element considers SB 9 developments an important part of the Town’s site inventory and housing strategy; the Housing Element included a number of programs to remove constraints, and encourage and facilitate SB 9 unit developments in Los Altos Hills. This includes the adoption of a revised, permanent SB 9 ordinance to replace the interim urgency ordinance, new Town policies “facilitating increased SB 9 production and increased density in the Residential-Agricultural (R-A) zone”, an SB 9 education program, and program to advertise vacant dwellings including SB 9 units to find tenants from the larger region.

WHEREAS, specifically, Program B-10 of the Housing Element states the following commitments: (1) Allow SB 9 units constructed on newly created SB 9 parcels to have default floor Attachment 1

areas greater than 800 square feet as currently stated in the interim ordinance, and require compliance with the Town’s objective design standards which will be prepared as a part of the permanent ordinance; (2) Allow SB 9 units the ability to obtain additional floor areas based on availability of Maximum Floor Area for the parcel and/or adherence to standard setbacks and easement dedication requirements as incentives. Maximum size of SB 9 units constructed on existing parcels will be determined through the Town’s Maximum Floor Area/Maximum Development Area formula applicable to single-family residential developments in Town; (3) Remove affordability restriction to promote development of units of all income levels, rather than only affordable units.

WHEREAS, as a part of the Town’s efforts to adopt a permanent SB 9 Ordinance, the Los Altos Hills Planning Commission formed an ad hoc committee at its October 6, 2022 meeting to undertake initial efforts at formulating relevant regulations.

WHEREAS, the ad hoc committee met several times over the course of many months, and the Planning Commission held three (3) duly noticed study sessions on a permanent SB 9 ordinance on December 12, 2022, February 15, 2023, and July 27, 2023, to provide public outreach and participation opportunities and to comprehensively discuss and review drafts of permanent ordinance and pertinent regulations.

WHEREAS, on August 3, 2023, the Planning Commission held a duly noticed public hearing to consider a proposed SB 9 permanent ordinance and, inclusive of certain changes proposed by the Commission, adopted a resolution recommending the City Council introduce and adopt said ordinance to replace the interim ordinance.

WHEREAS, the proposed permanent SB 9 ordinance is comprised of regulations that are (1) consistent with SB 9 statutes, state housing laws including the Housing Crisis Act and Housing Element Law, and with the Town’s 2023-2031 Housing Element inclusive of housing strategies to promote SB 9 development and Program B-10’s commitments; (2) oriented towards achieving the Town’s housing goals and implement its housing mobility, fair housing, and other regional housing obligation strategies and goals; and (3) utilize a carefully balanced approach and create objective zoning, design, and subdivision standards to preserve the Town’s natural beauty including the hills and views of the Bay, and significant residential communities; address hazards relating to fire, earthquake, geology and other natural conditions unique to the Town; and to provide reasonably regulated and orderly development of single family residential construction and subdivision projects.

WHEREAS, SB 9 specifically authorizes cities to impose objective zoning, subdivision, and design standards consistent with state law, and to adopt an ordinance to implement its provisions.

SB 9 further provides that such ordinances are not considered a “project” under the California Environmental Quality Act (CEQA). The proposed SB 9 permanent ordinance would amend the Town’s Zoning Code (Title 10) and Subdivision Ordinance (Title 9) under the Los Altos Hills Municipal Code to achieve the Town’s goals and policies and comply with state law.

WHEREAS, on August 17, 2023, the City Council held a duly noticed public hearing to consider the proposed SB 9 permanent ordinance as recommended by the Planning Commission, at which time all interested parties were provided an opportunity to give input and participate in the public process.

WHEREAS, after the close of the public hearing, the City Council considered all public comments received both before and during the public hearing, the presentation by Town staff, the staff report,

comments from the Planning Commission accompanying its recommendation, and all other pertinent documents regarding the proposed permanent SB 9 ordinance.

WHEREAS, the City Council finds that the proposed amendments to the Zoning Code and Subdivision Ordinance under the SB 9 permanent ordinance are consistent with and support the Los Altos Hills General Plan by helping to ensure the implementation of housing goals, programs and strategies in the 2023-2031 Housing Element, and utilize a carefully balanced approach and create objective zoning, design, and subdivision standards to preserve the Town’s unique characteristics while remaining in compliance with SB 9 and state housing laws.

WHEREAS, the City Council finds that the proposed ordinance is intended to comply with state housing laws and to establish comprehensive requirements and standards for the development and subdivision of qualified SB 9 properties in a way that protects and promotes public safety, community welfare, and the Town’s character and aesthetic quality in a manner consistent with SB 9 and applicable laws.

WHEREAS, the City Council desires to adopt the proposed ordinance to amend the Zoning Code and the Subdivision Ordinance to implement the requirements contained therein.

NOW, THEREFORE, the City Council of the Town of Los Altos Hills does hereby ordain as follows:

SECTION I. FINDINGS.

Based on the entirety of the record as described above, the City Council for the Town of Los Altos Hills hereby makes the following findings:

1. All of the facts and recitals above are true, correct, incorporated herein and made a part hereof.

2. This Ordinance is exempt from CEQA pursuant to Government Code sections 65852.21(j) and 66411.7(n).

3. This Ordinance was prepared and adopted in accordance with the requirements of Planning and Zoning Law (Government Code, sections 65853-65860) and meets all of the requirements thereunder.

4. This Ordinance is consistent with and supports the Los Altos Hills General Plan by implementing housing goals, programs and strategies in the 2023-2031 Housing Element, complying with SB 9 and state housing laws, and utilizing a carefully balanced approach to create objective zoning, design, and subdivision standards to preserve the Town’s unique characteristics. In addition, this Ordinance establishes comprehensive requirements and standards for SB 9 development and subdivision projects in a way that protects and promotes public safety, community welfare, and the Town’s character and aesthetic quality in a manner consistent with SB 9 and applicable laws.

SECTION II. AMENDMENT.

Chapter 1, Title 9, and Articles 5 and 15 of Chapter 1, Title 10, of the Los Altos Hills Municipal Code, are hereby amended to read as set forth in Exhibit A to this Ordinance, which is

hereby incorporated as though set forth in full herein.

SECTION III. SEVERABILITY.

If any provision of this ordinance or the application thereof to any person or circumstance is held invalid or unconstitutional the remainder of this ordinance, including the application of such part or provision to other persons or circumstances shall not be affected thereby and shall continue in full force and effect. To this end, provisions of this ordinance are severable. The City Council of the Town of Los Altos Hills hereby declares that it would have passed each section, subsection, subdivision, paragraph, sentence, clause, or phrase hereof irrespective of the fact that any one or more sections, subsections, subdivisions, paragraphs, sentences, clauses, or phrases be held unconstitutional, invalid, or unenforceable.

SECTION IV. EFFECTIVE DATE AND PUBLICATION.

Pursuant to the provisions of Government Code Section 36933, a summary of this Ordinance shall be prepared by the City Attorney. At least five (5) days prior to the Council meeting at which this Ordinance is scheduled to be adopted, the City Clerk shall (1) publish the Summary, and (2) post in the City Clerk’s Office a certified copy of this Ordinance. Within fifteen (15) days after the adoption of this Ordinance, the City Clerk shall (1) publish the summary, and (2) post in the City Clerk’s Office a certified copy of the full text of this Ordinance along with the names of those City Council members voting for and against this Ordinance or otherwise voting. This Ordinance shall become effective thirty (30) days from and after its adoption. Upon this Ordinance becoming effective, Ordinance No. 599 as adopted on December 16, 2021 pursuant to Government Code section 65858 shall be repealed and be of no further force and effect.

INTRODUCED: August 17, 2023
PASSED:

AYES:

NOES:

ABSTENTIONS:

ABSENT:

BY: _________________________
Mayor
ATTEST:
_________________________
City Clerk

APPROVED AS TO FORM:
_________________________
City Attorney

EXHIBIT A
SECTION I. Revisions to Article 5, “Area, Coverage, Height and Setback Limitations” of Chapter 1 of Title 10
Sections 10-1.502 and 10-1.503 are amended as shown as follows, with additions in double underline and deletions in strikethrough. Sections, subsections, paragraphs and texts not modified by this amendment are not included below and shall remain in full force and effect.

Article 5. Area, Coverage, Height and Setback Limitations” . . .
10-1.502 Development area.

Except as provided in subsections (c) and (d) of this section, the amount of development area in square feet allowable on a parcel or lot shall not exceed the amounts determined by application of the formula in subsection (a) of this section where An is net area in acres, S is the average slope of the parcel or lot in percent, as defined in Section 10-1.202, LUF is the lot unit factor as defined by Section 10-1.202 and MDA is the maximum development area allowable. . . .
(6) Development Area Bonus. A development area bonus (five hundred (500) square foot maximum) of one square foot for every one square foot of roof-mounted photovoltaic (PV) power generation facility (solar panels) shall be granted subject to the following requirements:
. . .
(vii) Any development area bonus request may be referred to the Planning Commission by the Planning Director Community Development Director. A development area bonus request for a property of less than one net acre in size shall be subject to Planning Commission review and decision;
. . .
(ix) The Planning Director Community Development Director shall provide the City Council with an annual report that evaluates the effectiveness of this subsection as an incentive for increasing PV system installations;
. . .
(c) Minimum MDA. The allowable development area on any parcel or lot shall not be reduced to less than seven thousand five hundred (7,500) square feet by application of the provisions of this section, except as set forth in Section 10-1.502(e) or except in the case of parcels or lots which have a lot unit factor of 0.50 or less. Parcels or lots which have a lot unit factor of 0.50 or less require a Conditional Development Permit and development area may be restricted below seven thousand five hundred (7,500) square feet as a condition of the permit. Maximum development area for lots which require a Conditional Development Permit shall be established as the maximum floor area allowed by Section 10-1.503(c), plus two thousand one hundred (2,100) square feet. The Site

Development Authority may approve development area of up to a total of four thousand five hundred (4,500) square feet for any lot or parcel without requiring a variance, so long as the findings for a Conditional Development Permit are made. Notwithstanding the foregoing, this subsection (c) shall not apply to any parcel that has a LUF less than 1.0 and was created after the enabling date of the ordinance implementing this sentence.
. . .
10-1.503 Floor area.
. . .
(c) Minimum MFA. The allowable floor area on any parcel or lot shall not be reduced to less than five thousand (5,000) square feet by application of the provisions of this section, except as set forth in subsection (e) of this section or except in the case of parcels or lots which have a lot unit factor of 0.50 or less. Parcels or lots which have a lot unit factor of 0.50 or less require a Conditional Development Permit and floor area may be restricted below five thousand (5,000) square feet as a condition of the permit. Maximum floor area for lots which require a Conditional Development Permit shall be established as the ratio of the lot unit factor (LUF) for the lot divided by 0.50 times five thousand (5,000) square feet. The Site Development Authority may approve floor area of up to two thousand five hundred (2,500) square feet for any lot without requiring a variance, so long as the findings for a Conditional Development Permit are made. Notwithstanding the foregoing, this subsection (c) shall not apply to any parcel that has a LUF less than 1.0 and was created after the enabling date of the ordinance implementing this sentence. . . .

SECTION II. Revisions to Article 15, “Objective Standards for Qualified Senate Bill 9 Subdivisions and Development Projects” of Chapter 1 of Title 10 Article 15 of Chapter 1 of Title 10 is repealed in its entirety and a new Article 15 is added as follows.

Other articles, sections, subsections, paragraphs and texts not modified by this amendment are not included below and shall remain in full force and effect.

Article 15.

Objective Standards for Qualified Senate Bill 9 Lot Splits and Development Projects 10-1.1501 Purpose and Intent.
10-1.1502 Definitions.
10-1.1503 SB 9 Lot Split Eligibility.
10-1.1504 Objective Development Standards for SB 9 Lot Splits. 10-1.1505 Objective Development Standards for SB 9 Units. 10-1.1506 Objective Building and Design Requirements for SB 9 Units. 10-1.1507 Adoption of Fees and Charges.

10-1.1501 Purpose and Intent.

The purpose of this article is to establish objective standards and regulations to govern the development of qualified Senate Bill No. 9 (2021) (“SB 9”) subdivisions and development projects on single-family residential zoned properties within the Town of Los Altos Hills. The establishment of these regulations will result in the orderly subdivision and development of qualified SB 9 projects while ensuring that the new units are consistent with the semi-rural character of the Town and do not create any significant impacts with regards to public infrastructure or public safety. The regulations are established to implement the requirements under California Government Code Sections 65852.21 and 66411.7.
10-1.1502 Definitions.

For purposes of this article, the following definitions apply:
(a) Adjacent parcel means any parcel of land that (1) adjoins another parcel by any portion of a shared property line; (2) is separated from another parcel at any point only by a public rightof-way, ingress-egress easement, or public or private easement; or (3) is separated from another parcel only by other real property which in common ownership or control of the same owner or development project applicant.
(b) Accessory dwelling unit or ADU, means an attached or a detached residential dwelling unit as defined by Section 10-1.1402 of this code.
(c) Dwelling unit or Dwelling means an ADU, JADU, a primary dwelling, and an SB 9 Unit, as applicable.
(d) Junior accessory dwelling unit or JADU, or “efficiency unit”, means a dwelling unit as defined by Section 10-1.1402 of this code.
(e) Conservation Easement means restrictive covenants that run with the land and bind upon successive owners that protects against future development such as preservation of open space, scenic, riparian, historical, agricultural, forested, or similar conditions. Open space and riparian easements are included in this definition.
(f) Existing dwelling means a primary dwelling or other dwelling unit on a parcel that exists prior to any voluntary demolition or reconstruction or remodel where no more than 50% of the exterior wall framing has been removed or altered. Any existing dwelling unit where more than 50% of the exterior wall framing has been removed is considered a new dwelling for purposes of this article.
(g) Panhandle means the portion of a lot which connects the buildable section of the lot to a public or private vehicular right-of-way.
(h) Pathway means designated pedestrian, equestrian, and/or bicycle routes as shown on the Pathway Master Plan of the Town.
(i) Primary dwelling means a building as defined in Section 10-1.202 and is reviewed and entitled as a single-family residence pursuant to the provisions of Article 3, Chapter 2 of Title 10 of this code.

(j) Private Road means a road, way, or street in private ownership and under private maintenance, not offered for dedication as a public road, way, place, or street, which affords the principal means of access to three or more lots or parcels which do not have frontage on a public street.
(k) SB 9 Lot Split means a subdivision of an existing parcel to create up to two (2) new parcels using the provision in this article, Article 16 of Chapter 1 of Title 9 of this code, and the provisions identified in California Government Code Sections 65852.21 and 66411.7. (l) SB 9 Lot means single-family residential lots created from an SB 9 Lot Split. (m) SB 9 Dwelling Unit or SB 9 Unit means a dwelling unit that seeks to use or is developed using the provisions in this article and the provisions identified in California Government Code Sections 65852.21 and 66411.7.
10-1.1503 SB 9 Lot Split Eligibility.

Any parcel within the Residential-Agricultural (R-A) zoning district meeting the requirement of this article and Article 16 of Chapter 1, Title 9 of this code is eligible for SB 9 Lot Split, except under the following circumstances:
(a) Any parcel that was established through a prior exercise of SB 9 Lot Split as provided for in this article.
(b) Any parcel proposing to be subdivided that is adjacent to another parcel where either the owner of the parcel proposing to be subdivided or any person acting in concert with said owner has previously subdivided that adjacent parcel using the provisions in this article. For the purposes of this article, “any person acting in concert” with the owners includes, but is not limited to, an individual or entity operating on behalf of, acting jointly with, or in partnership or another form of cooperative relationship with, the property owner. (c) Any parcel located within an historic district or included on the State Historic Resources Inventory, as defined in Section 5020.1 of the Public Resources Code, or a parcel within a site that is designated or listed as a Town of Los Altos Hills or Santa Clara County landmark or historic property or district pursuant to a Town of Los Altos Hills or Santa Clara County ordinance.
(d) Any parcel where SB 9 Lot Split would require the demolition or alteration of any of the following types of housing:
(1) Housing that is subject to a recorded covenant, ordinance, or law that restricts rents to levels affordable to persons and families of moderate, low, or very low income. (2) Housing that is subject to any form of rent or price control through a public entity's valid exercise of its police power.
(3) A parcel or parcels on which an owner of residential real property has exercised the owner's rights under Government Code section 7060 et seq. to withdraw accommodations from rent or lease within 15 years before the date that the development proponent submits an application.

(4) Housing that has been occupied by a tenant in the last three years. (e) Any parcel fully encumbered with a conservation easement or identified for conservation in an adopted natural community conservation plan pursuant to the Natural Community Conservation Planning Act (Chapter 10 (commencing with Section 2800) of Division 3 of the Fish and Game Code), habitat conservation plan pursuant to the federal Endangered Species Act of 1973 (16 U.S.C. Sec. 1531 et seq.), or other adopted natural resource protection plan. (f) Any parcel that is designated prime farmland or farmland of statewide importance, as defined pursuant to United States Department of Agriculture land inventory and monitoring criteria, as modified for California, and designated on the maps prepared by the Farmland Mapping and Monitoring Program of the Department of Conservation, or land zoned or designated for agricultural protection or preservation by a local ballot measure. (g) Any parcel containing wetlands, as defined in the United States Fish and Wildlife Service Manual, Part 660 FW 2 (June 21, 1993), that would prevent the development of the parcel. (h) Any parcel within a very high fire hazard severity zone, as determined by the Department of Forestry and Fire Protection pursuant to Government Code Section 51178, or within a high or very high fire hazard severity zone as indicated on maps adopted by the Department of Forestry and Fire Protection pursuant to Section 4202 of the Public Resources Code. This subsection does not apply to parcels that have been excluded from specific hazard zones by actions of the Town pursuant to Government Code section 51179(b), or parcels that have adopted fire hazard mitigation measures pursuant to existing building standards or state fire mitigation measures applicable to the development.
(i) Any parcel with a hazardous waste site that is listed pursuant to Government Code Section 65962.5 or a hazardous waste site designated by the Department of Toxic Substances Control pursuant to Section 25356 of the Health and Safety Code, unless the State Department of Public Health, State Water Resources Control Board, or Department of Toxic Substances Control has cleared the site for residential use or residential mixed uses. (j) Any parcel within a special flood hazard area subject to inundation by the 1 percent annual chance flood (100-year flood) as determined by the Federal Emergency Management Agency (FEMA) in any official maps published by the FEMA. However, a SB 9 Lot Split and/or development project may be located on a parcel described in this subsection if (i) the parcel is otherwise eligible for approval under the provisions of this article and (ii) the project applicant is able to satisfy all applicable federal qualifying criteria demonstrating either of the following are met:
(1) The site has been subject to a Letter of Map Revision prepared by the FEMA and issued to the Town.
(2) The site meets FEMA requirements necessary to meet minimum flood plain management criteria of the National Flood Insurance Program pursuant to Part 59 (commencing with Section 59.1) and Part 60 (commencing with Section 60.1) of Subchapter B of Chapter I of Title 44 of the Code of Federal Regulations.

(k) Any parcel within a regulatory floodway as determined by the FEMA in any official maps published by the FEMA, unless the SB 9 Lot Split and/or development project has received a no-rise certification in accordance with Section 60.3(d)(3) of Title 44 of the Code of Federal Regulations.
(l) Any parcel containing habitat for protected species identified as candidate, sensitive, or species of special status by state or federal agencies, fully protected species, or species protected by the federal Endangered Species Act of 1973 (16 U.S.C. Sec. 1531 et seq.), the California Endangered Species Act (Chapter 1.5 (commencing with Section 2050) of Division 3 of the Fish and Game Code), or the Native Plant Protection Act (Chapter 10 (commencing with Section 1900) of Division 2 of the Fish and Game Code). 10-1.1504 Objective Development Standards for SB 9 Lot Splits.

The following objective standards and regulations apply to all SB 9 Lot Splits:
(a) The subdivision shall create no more than two new parcels of approximately equal area provided that one parcel shall not be smaller than 40 percent of the lot area of the original parcel proposed for subdivision. In no instance shall any resulting parcel be smaller than 1,200 square feet in area.
(b) Where noted, the requirements of this Section 10-1.1504 shall be waived by the Community Development Director if the applicable regulation at issue would physically preclude the construction of two SB 9 Units on either resulting parcel or would result in an SB 9 Unit from being less than nine hundred (900) square feet in floor area. All such waivers made by the Community Development Director shall be final.
(c) No more than two (2) dwellings shall be permitted on an SB 9 Lot. For the purposes of this subsection, “dwelling unit” means a primary dwelling, an SB 9 Unit, an Accessory Dwelling Unit or Junior Accessory Dwelling Unit.
(d) Existing parcels shall be split approximately perpendicular to the longest contiguous property line. Resulting lots shall have a maximum depth to width ratio of three-to-one (3:1).

However, this requirement shall be waived if the subdivider demonstrates that it would prohibit an SB 9 Lot Split that otherwise meets the requirements of this article. (e) The front parcel line of any newly created parcel shall be the parcel line that is closest to or parallel to the public or private road that serves the parcel. (f) A twenty (20)-foot-wide panhandle (for a flag lot) or an ingress/egress easement shall be provided for all new parcels that do not have direct frontage on a public or private road.

Driveway access to the new parcels shall be shared as identified in Figure 1, 2, and 3, unless the new driveways are a minimum of one hundred (100) feet apart. No more than one (1) driveway cut is permitted for each parcel.

Figure 1 Figure 2 Figure 3
(g) Easements for access and public and private utilities shall be provided for any newly created parcel that does not front on a public or private street. (h) Separate utility meters shall be provided for each parcel prior to recordation. (i) All newly created parcels shall be connected to public sewer or provide a private onsite wastewater treatment system (OWTS) that is fully contained within the new parcel boundaries to be approved by the Santa Clara County Environmental Health Department. (j) No setbacks shall be required for an existing structure on the parcel from a proposed parcel line. For the purposes of this article, existing dwelling units or accessory structures may be demolished and reconstructed as new units pursuant to the ministerial approval process of this article to the same or lesser massing and dimensions of the previously existing dwelling or accessory structure at the same location and within the same building footprint. Roof decks and balconies are permitted if reconstructed in the same location and orientation. However, in no event shall any reconstruction increase the height, floor area, development area, or setbacks of the prior existing dwelling or structure.
(k) In the event that an applicant desires to demolish and reconstruct an existing dwelling unit or accessory structure, the applicant shall apply for a demolition permit with the Town concurrently or after submitting an application pursuant to this article, and shall submit with the demolition permit application a pre-demolition survey prepared by a licensed surveyor or civil engineer and as-built plans and elevations of the existing dwelling or structure prepared by a licensed architect. All other accessory structures that are not primary or secondary dwellings shall be reviewed by the applicable hearing body pursuant to pursuant to the provisions of Article 3, Chapter 2 of Title 10 of this code.
(l) An SB 9 Lot Split is subject to all impact or development fees related to the creation of a new parcel pursuant to Title 9 of this code and any applicable fee schedules adopted by the City Council and most currently in effect.
10-1.1505 Objective Development Standards for SB 9 Units.

The following objective standards and regulations apply to the development of SB 9 Units:
(a) Number of Units Permitted.
(1) For parcels not created through an SB 9 Lot Split, the following unit types and count shall be permitted on one parcel:

A. a primary dwelling and an SB 9 unit (or two SB 9 units); B. ADU as provided by Article 14 of Title 10 of this code; and

C. a JADU as provided by Article 14 of Title 10 of this code. (2) For SB 9 Lots, the following unit types and count shall be permitted:

A. Up to two dwelling units, consisting of existing or proposed (including reconstruction pursuant to Section 10-1.1504(j) of this code) primary dwellings or SB 9 Units; or
B. Up to two SB 9 Units.

C. No ADUs and JADUs are permitted.
(b) Unit Size and Construction. The maximum size and development area for one SB 9 Unit shall be nine hundred (900) square feet with a maximum height of sixteen (16) feet. The maximum development area (MDA) permitted on an SB 9 Lot shall be the maximum floor area (MFA) plus an additional two thousand one hundred (2,100) square feet.

For any vacant SB 9 Lot with an MFA of less than one thousand eight hundred (1,800) square feet, the parcel shall be allowed to construct up to two (2) SB Units with a maximum size of nine hundred (900) square feet and a height of sixteen (16) feet each. For an SB 9 Lot with one existing residence exceeding the MFA of the parcel, nine hundred (900) square feet of floor area and development area shall be excluded from the MFA and MDA. For parcels not created through an SB 9 Lot Split, nine hundred (900) square feet of floor area and development area for the construction of SB 9 Units shall be excluded from the maximum floor area and development area. No basement, bunker, or roof deck shall be permitted in any of the foregoing developments.
(c) Setbacks. The minimum front yard setback for any new SB 9 dwelling unit shall be 40 feet measured from any point of the architecture extrusions, including roof eaves and permanent wall features to the front parcel line or a public or private road right-of-way and four (4) feet from the side and rear parcel lines. In addition, all outdoor patios, covered patios, decks, and other hardscape, except walkways as defined in Section 10-1.202, shall meet the standard 40- foot front and 30-foot side and rear setbacks as set forth under Section 10-1.505.

Notwithstanding the foregoing, no setback shall be required for a dwelling unit proposed pursuant to this article that is constructed in the same location and to the same dimensions as an existing structure on the parcel in accordance with Section 10-1.1504(j). (d) Structures shall not be located in the following locations:
(1) In areas encumbered by a recorded easement, including but not limited to, public utility easements, conservation easements, access easements, equestrian easements, general public easements, pathway easements, and open space easements; (2) In areas within twenty-five (25) feet of the top of a creek bank; (3) Within 10 feet of a parcel line where a pathway is designated on the adopted Pathway Master Plan for the Town of Los Altos Hills.
(4) Areas with slopes greater than thirty percent (30%). (e) Required Parking. One on-site parking space is required per SB 9 Unit as follows:

(1) The parking space may be covered or uncovered and shall be at least ten (10) feet wide by twenty (20) feet deep.
(2) The space may be provided as tandem parking on a driveway or located in a setback area, unless specific findings are made by the Community Development Director that parking in a setback area or as tandem is not feasible based upon specific site or regional topographical or fire and life safety conditions.
(3) The parking space shall not encroach into a required fire truck turnaround or obstruct the driveway access to the primary dwelling.
(4) However, no parking shall be required in either of the following circumstances:

A. The parcel is located within one-half mile walking distance of either a high-quality transit corridor, as defined in subdivision (b) of Section 21155 of the Public Resources Code, or a major transit stop, as defined in Section 21064.3 of the Public Resources Code.

B. There is a car share vehicle located within one block of the parcel. (f) Heritage Oak Tree Removal. If an SB 9 Unit development project proposes to remove, or damages in the course of construction, a heritage oak tree, the applicant shall be required to provide replacement trees in accordance with the following:

For a heritage oak tree between 12-18 inches in trunk diameter: replacement of two (2) 24-inch box California native oak trees.

For a heritage oak tree between 18-24 inches in trunk diameter: replacement of three (3) 24-inch box California native oak trees.

For a heritage oak tree greater than 24 inches in trunk diameter: replacement of four (4) 24-inch box California native oak trees.
(g) Development Incentives for SB 9 Units on Parcels Meeting Certain Requirements. If an SB 9 Unit is proposed to be constructed to meet the 40-foot front and 30-foot side and rear setbacks as set forth under Section 10-1.505, and if the applicant or property owner proposes to dedicate to the Town all of the following as applicable: (i) for any parcel, a public right-of-way interest pursuant to Section 9-1.703; (ii) for a parcel with a slope equal to or exceeds thirty percent (30%), an open space easement covering the entire sloped area (iii) for a parcel containing a creek identified in the General Plan, an open space easement providing at least a twenty-five (25) feet buffer zone from the top of the creek bank; or (iv) for a parcel with a proposed pathway identified on the Town’s Pathway Master Plan, a pathway easement of at least ten (10) feet in width covering the identified pathway segment, then any SB 9 Unit constructed on the parcel shall receive development incentives as described below and subject to the following:
(1) The maximum floor area (MFA) and maximum development area (MDA) permitted on the parcel shall be calculated in accordance with the requirements of the underlying zoning district per Sections 10-1.502 and 10-1.503.

For parcels with a Lot Unit Factor (LUF) as defined under Section 10-1.202 less than or equal to 0.5, the maximum size of one SB 9 Unit shall not exceed two thousand (2,000) square feet. For parcels with a Lot Unit Factor (LUF) as defined under Section 10-1.202 greater than 0.5, the maximum size of one SB 9 Unit shall not exceed three thousand (3,000) square feet.

For SB 9 Lots with a Lot Unit Factor (LUF) as defined under Section 10-1.202 less than or equal to 0.5, up to two thousand (2,000) square feet or the maximum floor area of the lot minus nine hundred (900) square feet, whichever is less, shall be available for the development of one SB 9 Unit. For SB 9 Lots with a Lot Unit Factor (LUF) as defined under Section 10-1.202 greater than 0.5, up to three thousand (3,000) square feet or the maximum floor area of the lot minus nine hundred (900) square feet, whichever is less, shall be available for the development of one SB 9 Unit. (2) The maximum height of an SB 9 Unit shall be sixteen (16) feet. (3) A basement shall be permitted for SB 9 Units subject to the requirements of Section 10-1.202 and the setback requirements under Section 10-1.505, which shall also apply to any light wells and roof eaves. Additionally, if any portion of the basement is visible above ground level, then the entire square footage of said basement shall be included in the calculation of maximum floor area for the lot pursuant to Section 10-1.503. (4) Required Parking for an SB 9 Unit shall be as follows, based on the proposed floor area of said unit. All spaces shall be at least ten (10) feet wide by twenty (20) feet deep.

No more than seven (7) parking spaces shall be required on one lot.

Floor Area Number Forms Setbacks
Under 1000 square
feet
1 uncovered Permitted in the Setback
areas
1,000 to 1,600 square
feet
2 uncovered One space may be located in
the Setback areas, all other
spaces shall be outside the
40-foot front and 30-foot
rear and side setbacks
1,600 to 2,400 square
feet
3 uncovered
2,400 to 3,000 square
feet
4 2 covered
2 uncovered
(5) Any SB 9 Unit receiving a development incentive pursuant to this subsection (g) shall comply with the 40-foot front and 30-foot side and rear setbacks as set forth under Section 10-1.505.
(6) For any SB 9 Unit receiving a development incentive pursuant to this subsection (g), trees and shrubs shall be provided as landscape screening within the 40-foot front and 30- foot rear and side setback areas as follows: maximum spacing for existing and proposed screening trees shall be 25 feet on center and 10 feet on center for existing and proposed screening shrubs. All new screening trees shall be California-native evergreen trees of at least 24-inch box size, and all screening shrubs shall be California-native evergreen shrubs of at least 15-gallon box size. However, the foregoing landscape screening shall not be required or located in a recorded easement area, except for open space easements,

including but not limited to a driveway or ingress-egress easement, public utility easements; areas for septic systems; and within 25-foot from the top of bank of creeks. (h) Driveways and Access. All dwelling units on a parcel shall be served by a common driveway from the nearest public or private street. Driveway access to all new units shall be compliant with the Santa Clara County Fire Department standard details and specifications for driveways and turnarounds.
(i) Sewer Connection. All newly created dwelling units shall be connected to public sewer or provide an onsite wastewater treatment system (OWTS) approved by the Santa Clara County Department of Environmental Health.
(j) Occupancy Requirements. An SB 9 Unit may be rented separately from the primary dwelling unit. However, no SB 9 Unit shall be rented for a period of less than thirty-one (31) days and cannot be occupied as a short-term rental unit, as defined under section 10-1.1202. (k) Development projects pursuant to this article shall be subject to all impact or development fees related to the development of a new dwelling unit. (l) Notwithstanding the foregoing, no housing development project shall be permitted on a site pursuant to this article if the underlying parcel falls within any provision under Section 10-

1.1503 (c) through (l).
(m)Where noted, the requirements of this section 10-1.1505 except for the requirement under subsection (d)(1) above shall be waived by the Community Development Director if the applicable regulation at issue would physically preclude the construction of two SB 9 Units on the parcel or would result in an SB 9 Unit from being less than nine hundred (900) square feet in floor area. All such waivers made by the Community Development Director shall be final. 10-1.1506 Objective building and design requirements for SB 9 Units.

All SB 9 Units shall be reviewed and approved without discretionary review or public hearing. As part of the Planning Department’s ministerial approval, the following requirements shall be confirmed for SB 9 Unit developments and construction:
(a) All SB 9 Units shall comply with applicable requirements of the California Building Standards Code including but not limited to the Residential Code and the Fire Code. (b) Proposed grading for SB 9 Unit development and associated site improvements shall not exceed the vertical cuts and fills thresholds listed as below:

Cut Fill
House and Garage 8’ 3’
Driveway 10’ 5’
Fire Truck Turnaround 7’ 5’
Patio and Yards 4’ 3’
(c) No site grading shall be permitted within ten (10) feet of any property line and public or private road right-of-way easements, except such grading is permitted for the construction of pathways; to allow access for driveways where they cross a property line; within a panhandle;

or for the construction of an SB 9 Unit within five (5) feet of the building footprint within the parcel.
(d) The height of lowest finished floor(s) of a structure shall not be set in excess of four feet six inches (4’-6”) above the existing grade, to assure that structures step with the slope. Supported decks shall not exceed three (3) feet above adjoining grade except where located within six (6) feet of an exterior wall of a building.
(e) For detached units proposed or expanded to be greater than nine hundred (900) square feet in floor area, the exterior materials and design shall match the design of any existing primary dwelling unit on the parcel through the use of the same exterior wall materials, identified color tones, window types, door and window trims, roofing materials and roof pitch. (f) For an attached unit, the exterior materials, windows and other architectural features shall match the existing structure by employing the same building form, color tones, window design, door and window trims, roofing materials and roof pitch. (g) Detached units shall maintain no less than ten (10)-foot separation, inclusive of eaves, measured from the exterior walls.
(h) All operable doors, outdoor steps, landings, railings, HVAC equipment attached to a dwelling, propane tanks, generators, water collection tanks, hardscape, storage for trash receptacles, above-ground backflow preventer valves and temporary construction equipment shall be located at least ten (10) feet away from any property line. Operable doors shall not be located within ten (10) feet of the property line.
(i) No exterior entrance shall face the rear or side property lines if the distance is less than thirty (30) feet between the entrance and the property line that the entrance faces. (j) Windows shall not occupy more than 33% of any façade of an SB 9 Unit. Prior to issuance of certificate of occupancy, windows shall install “privacy glass” if the distance between the windows and the property line is less than ten (10) feet. However, privacy glass shall not be required if a window is situated six (6) feet or higher measured from the finish floor to the bottom of windowsills.
(k) Exterior wall colors and materials shall have a light reflectivity value (LRV) of 50 or less and roof materials shall have a light reflectivity value (LRV) of 40 or less. All metal roofs shall conform to a color specified in Exhibit A of the Metal Roofing Policy approved by the Planning Commission and most currently in effect.
(l) Exterior building lighting shall be fully shielded and downward facing and limited to one exterior light fixture per exterior doorway, or the minimum necessary to comply with the California Building Standards Code.
(m)The following lighting features are permitted, and light emission and color temperatures of any light bulbs used shall be limited as follows:

Maximum Light Emission
(Lumens, Φv)
Maximum Color
Temperature (Kelvin, K)
Path Lights 200 2700

Step Lights 110 2700
Exterior Wall Scones 600 3000
Recessed Ceiling Lights 600 3000
Pendant Lights 600 3000
Gate Lights 600 3000
Temporary Construction
Lighting
500 3000
(n) Recessed lights and downlights shall not be installed in second floor roof eaves. Such lights in first floor eaves shall be located over entryways, garage doors, and patio doorways only.

Recessed lights and downlights in first floor roof eaves shall be positioned so that the light cone does not shine down into a neighboring property. No lighting shall be placed at or near the peak of the roof line of a one- or two-story gabled roof.
(o) Pathway and driveway lighting shall be fully shielded fixtures, directed downward and no taller than 18 inches. The spacing between pathway lights shall be 20 feet on center. (p) Garage door windows, panels, or other opening shall not emit light more than 30% of the door’s surface area. The emitting light shall be translucent, allowing no more than 30% of the interior light emission to pass through to the outside. (q) Notwithstanding subsection (l) above, the following outdoor lighting types are prohibited:
(1) Any light beams that emits or stretches beyond the aerial space defined by the property lines.
(2) Up-lighting of any kind.
(3) Wall wash lighting of exterior walls.
(4) Visible LED lighting strips, tape lights, and bistro lights. (5) Bistro lights, pendant lights, and any similar lighting fixtures hung down from or hung amongst trees.
(6) Tree lights.
(r) Only two landscape lights shall be permitted to locate within the 30- and 40-foot setback areas set forth under Section 10-1.505.
(s) All SB 9 Units are required to have fire sprinklers. A solid (no openings) one-hour fire wall shall be required between an SB 9 Unit, the primary dwelling, an ADU, or any two units configured as a duplex on a parcel. No internal accesses are permitted between the SB 9 Units and other dwelling units. In addition, a deed restriction in a form approved by the City Attorney’s Office shall be recorded stipulating that the duplex shall be maintained as two (2) separate units.
(t) For the purposes of identifying a heritage oak as defined in Section 12-2101 of this code, an arborist report prepared by an International Society of Arboriculture (ISA) certified arborist shall be submitted by the applicant if construction is proposed within the driplines of any trees with trunk diameters of twelve (12) inches or greater to be preserved.

(u) No roof decks are permitted on SB 9 dwelling units. A hedge, consisting of 15-gallon minimum evergreen shrubs and at a minimum four (4) feet in height, shall be planted and maintained inside the parcel line (and outside of any recorded easement area) at six (6)-foot intervals adjacent to the wall of the SB 9 dwelling unit located closer than ten (10) feet from the side and rear property lines.
(v) A Water Efficient Landscape Ordinance (WELO) Worksheet of the Town shall be submitted by the applicant for any proposed landscape associated with SB 9 Units. The applicant shall furnish to the Town a Landscape Maintenance and Water Usage Deposit in the amount based on the Town’s adopted fee schedule most currently in effect. For two years after completion of the project, Town staff shall review water usage for the parcel and conduct a site inspection to ensure any installed landscape features and screening remains in existence and continues to be adequately maintained. The deposit shall be applied towards remedying insufficient or removed landscape screening or water usage greater than the annual usage indicated on the approved parcel water budget worksheet. (w)All electrical and utility services to a new dwelling unit shall be undergrounded. (x) All basements within a dwelling unit shall include at least one emergency escape/rescue opening as required by the applicable provision of the California Building Code. In addition, each bedroom located in the basement within a dwelling unit shall require a light well with dimensions of three (3) feet by nine (9) feet, extending maximum three (3) feet from the exterior wall, and meeting the requirements for ingress and egress under the California Building Code (CBC) or California Residential Code (CRA).
(y) Notwithstanding the foregoing subsections, any development or design standards, except for requirements of any provisions of the California Building Standards Code including but not limited to the Residential Code and the Fire Code, that would physically preclude the construction of up to two SB 9 Units on the parcel or that would physically precludes an SB 9 dwelling unit from being nine hundred (900) square feet in floor area shall be waived by the Community Development Director. All such waivers made by the Community Development Director shall be final.
10-1.1507 Adoption of Fees and Charges.

The City Council may establish and set by resolution all fees and charges, consistent with Government Code sections 65852.2 and 65852.22, and related provisions, as may be necessary to effectuate the purpose of this article.

SECTION III. Revisions to Chapter 1 “Subdivisions” of Title 9 A new Article 16, entitled “SB 9 Lot Splits”, is hereby added to Chapter 1 of Title 9 and shown in its entirety as follows. Other articles, sections, subsections, paragraphs and texts not modified by this amendment are not included below and shall remain in full force and effect.

Article 16
Senate Bill 9 Lot Split

9-1.1061 Application Materials for SB 9 Lot Splits.
9-1.1062 Review and Approval of SB 9 Lot Splits.
9-1.1601 Application Materials for SB 9 Lot Splits. A subdivider seeking an SB 9 Lot Split as defined in Article 15 of Chapter 1, Title 10 of this code shall file a tentative parcel map and a parcel map, an SB 9 Lot Split Application established by the Town containing the information set forth in this section to the Planning Department for review. Submittals shall be accompanied by the required fees and deposits as prescribed by resolution of the City Council. (a) Application and Billing Agreement signed by all parties holding an ownership interest in any properties which are the subject of the proposed subdivision. (b) Numbered Tract Map, Parcel Map, or Certificate of Compliance to demonstrate the lot legality, pursuant to Section 9-1.318.
(c) Preliminary title report within the past six (6) months. (d) Topographic survey. Minimum contour interval is five (5) feet when the average slope exceeds 10% and two (2) feet when the average slope is less than 10%. (e) Preliminary approval of the percolation test from the Santa Clara County Department of Environmental Health, if the parcels must connect to onsite wastewater treatment systems (OWTS).
(f) A tentative Parcel Map containing the following information:
(1) Date, north arrow, scale, sufficient description to define the location, boundaries of the proposed tract and contour intervals, all located in the lower right-hand corner of the map.
(2) Adjacent properties on all sides of the proposed SB 9 Lot Split, including those separated by a public or private right-of-way, with information of the last name of owner or owners, Assessor Parcel Numbers, topographic features, and all improvements. (3) The names, addresses, and telephone numbers of the recorded owners, subdivider, and State of California registered civil engineer or State-licensed land surveyor who prepared the preliminary map. The registered civil engineer or licensed land surveyor shall include his or her valid stamp, number, and signature;
(4) Locations, names, widths, centerline radii, and centerline grades of all streets, roads, and rights-of-way in the proposed subdivision with typical cross-sections showing proposed improvements. Centerline grades shall be shown by a profile, preferably referred to mean sea level datum as established by the United States Geological Survey, or to Town approved bench marks established by the City Engineer. Cross-sections shall be presented as required by the City Engineer;
(5) Gross and net acreage of each individual lot to the nearest one hundredth of an acre which may be based on the calculation of the gross and net acreage of the entire parcel; (6) A number for each lot, dimensions of the lots, including frontage, depth, width, and gross and net area of each lot to the nearest hundredth of an acre; and

(7) The location of any existing and/or proposed easements, including easements for conservation purposes, Open Space Easements and Pathway Easements. (g) A form prepared and signed by the registered civil engineer, or licensed land surveyor who prepared the Parcel Map setting forth the average slope, Lot Unit Factor (LUF) and slope density calculations for the original lot and for each new parcel; (h) Location, width, and character of all existing and proposed easements, including but not limited to easementsfor pathways, open space, conservation or agricultural purposes, equestrian uses, drainage, water, sewage, public utilities, together with the location and approximate dimensions of any existing buildings and structures, driveways, pools, hardscape, retaining walls, septic tanks, leach fields, wells, active or abandoned, and proposed disposition; (i) Approximate location and direction of flow of all creeks, streams, and other watercourses and drainages, showing type of existing top-of-banks and creek depths, with a separate sheet showing cross-sections of all such creeks, streams, and watercourses, when such streams, creeks or other watercourses are three (3) feet in depth and/or the width is four (4) feet or more at the bed of the stream, creek, or other watercourse;
(j) Location and building footprint of the existing structures identified by type. Structures to be removed shall be so marked.
(k) Location of all trees with trunks equal to or greater than twelve (12) inches in diameter.

Trees in concentrated areas shall be approximately marked on the map with a corresponding legend indicator. The trees proposed to be removed shall be identified on the tentative Parcel Map.
(l) Proposed or required Green Infrastructure;
(m)Conceptual grading design with the proposed contours at two (2)-foot intervals minimum if the existing ground slope is less than 10 percent, or at five (5)-foot intervals minimum if the existing ground slope is 10 percent or more.
(n) Conceptual drainage design show how runoff of surface waters from individual lots will be achieved and the ultimate disposal of all subdivision surface waters. (o) Approximate distance, size and location of the nearest existing sanitary sewer main line; Or the septic system locations on the proposed parcels, if the parcel proposes to connect to onsite wastewater treatment systems (OWTS).
(p) Source of domestic water supply.
(m)Fire protection system and design as required by the Los Altos Hills County Fire Protection District.
9-1.1602 Review and Approval of SB 9 Lot Splits.
(a) SB 9 Lot Splits shall be reviewed for conformance with the standards and requirements under Article 15 of Chapter 1, Title 10 of this code.

(b) Upon completion of review and preparation of conditions of approval authorized by this chapter by the Planning Division, the Community Development Director shall ministerially approve the tentative parcel map without discretionary review or public hearings if the tentative parcel map conforms to the applicable requirements of this chapter and applicable provisions of Article 15 under Chapter 1, Title 10 of this code. The Community Development Director’s decision shall be final.
(c) The expiration and extension of the tentative parcel map shall be in accordance with Section 9-1.519, unless a longer or shorter period is prescribed by applicable state law. (d) All persons submitting maps as required by this article shall pay all fees and/or deposits as provided by the City Council's resolution establishing fees and charges. (e) A note on the parcel map and a recorded deed restriction in a form approved by the City Attorney’s Office shall be applied to all newly created parcels indicating that the parcel was split using the provision of this article and that no further SB 9 Lot Split are permitted. The deed restriction shall also identify that the parcel shall be used for residential uses only and that it is subject to the requirements of Section 10-1.1505(a)(2) and Sections 10-1.502 and 503 of Article 15 of Chapter 1 of Title 10 of this code.
(f) Prior to the recordation of the parcel map, the applicant shall sign and record an affidavit in a form approved by the City Attorney’s Office stating that the applicant intends to reside in one of the proposed or existing primary dwellings or SB 9 Units as defined in Article 15 of Chapter 1, Title 10 of this code for three years from the date of the approval of the subdivision. This requirement shall not apply if the applicant is a community land trust or a qualified nonprofit corporation as provided in Sections 402.1 and 214.15 of the Revenue and Taxation Code. 5432406.1

TOWN OF LOS ALTOS HILLS AUGUST 17, 2023
Staff Report to the City Council REVISED (with changes in redline) SUBJECT: CONSIDERATION OF AN ORDINANCE AMENDING TITLE 9 (SUBDIVISIONS AND PLAN LINES) AND TITLE 10 (ZONING AND SITE

DEVELOPMENT) OF THE LOS ALTOS HILLS MUNICIPAL CODE TO ADD ARTICLE 16 TO CHAPTER 1, AND ARTICLE 15 TO CHAPTER 1,

RESPECTIVELY, ESTABLISHING REGULATIONS FOR THE SUBDIVISION AND DEVELOPMENT OF QUALIFIED SENATE BILL PROPERTIES.

FROM: Elaine Ling, Senior Planner
APPROVED: Peter Pirnejad, City Manager
RECOMMENDATION: That the City Council take the following actions:

Waive reading and introduce an Ordinance (Attachment 1 and 1.a) amending Title 9 (Subdivisions and Plan Lines) and Title 10 (Zoning and Site Development) of the Los Altos Hills Municipal Code to add Article 16 to Chapter 1, and Article 15 to Chapter 1, respectively, establishing permanent regulations for the subdivision and development of qualified Senate Bill 9 properties.

BACKGROUND
Introduction and Procedural History
Pursuant to duly noticed public hearings, the Town adopted an interim urgency ordinance pursuant to Government Code section 65858 initially on December 16, 2021 and further extended it for an additional twenty two (22) months and 15 days to establish certain regulations for Senate Bill (SB) 9 units in light of the need for the immediate preservation of the public health, safety and welfare.

The urgency ordinance and the regulations therein are currently set to expire in October 2023, and state law provisions under SB 9 will govern unless the Town adopts a permanent local ordinance prior to that date.

The purpose of the ordinance, as documented through the urgency findings adopted by the City Council and noted above, is to address certain concerns which present an immediate threat to public health, safety, and welfare through interim regulations while the Town considers permanent regulations applicable to facilitate SB 9 units construction and subdivisions. The interim ordinance sets forth objective standards and establishes a streamlined process for ministerially approving SB 9 projects consistent with state law. In particular, the interim ordinance amended the Town’s Zoning Code to be consistent with the then-newly adopted Government Code Sections 65852.21 and 66411.7, and expanded the types, size, and number of residential units that may be permitted and constructed in single-family zones, thereby resulting in a larger number of residential units than under the then-current zoning regulations.

SB 9 units continue to remain an important part of the Town’s housing strategy to meet its regional housing obligations in conjunction with other programs and policies to facilitate housing supply growth. Adoption of a permanent ordinance would further the Town’s efforts and establish longAttachment 2

Staff Report to the City Council Page 2
Introducing SB 9 Permanent Ordinance
August 17, 2023
term regulations consistent with state law. For instance, the Town’s 2023-2031 Housing Element, adopted by the City Council and certified by the California Department of Housing and Community Development (HCD), states that the Town’s overall housing strategies for the Sixth Planning Cycle is to, among other things, adopt “new [Town] policies and creating programs to facilitate increased ADU production, SB 9 production, and increased density in the R-A zone.” To implement strategies and achieve housing goals, the Housing Element included several programs to encourage and facilitate SB 9 development and utilization. To illustrate, Program B-10 of the Housing Element commits to preparing a permanent SB 9 ordinance inclusive of the following:
• Default Unit Size: a portion of Program B-10 commits to “allow SB 9 units constructed on newly created SB 9 parcels to have default floor areas greater than 800 square feet as currently stated in the interim ordinance, and require compliance with the Town’s objective design standards which will be prepared as a part of a permanent ordinance. • Incentives: Program B-10 also commits to “allow SB 9 units the ability to obtain additional floor areas based on availability of Maximum Floor Area for the parcel and/or adherence to standard setbacks and easement dedication requirements as incentives. Maximum size of SB 9 units constructed on existing parcels will be determined through the Town’s MFA/MDA formula applicable to single-family residential developments in Town.” • Affordability Restrictions: remove affordability restriction to promote development of units of all income levels, rather than only affordable units.

Other programs in the Housing Element also includes outreach and market to applicants, homeowners and tenants to facilitate SB 9 construction and utilization, with the target of constructing at least 32 SB 9 units throughout the planning period and achieve 50% occupancy.

The Town has continued to work towards adopting a permanent SB 9 Ordinance during this interim period, including extensive outreach and public participation opportunities. On October 6, 2022, the Planning Commission formed an ad hoc committee consisting of two commissioners to initiate the ordinance effort and present draft concepts and language for the Planning Commission to consider. On December 12, 2022, February 15, 2023, and July 27, 2023, the Planning Commission held three (3) SB 9 Ordinance Study Sessions regarding the permanent local ordinance, focusing on a review of the State Legislation, other jurisdictions’ SB 9 ordinances, and the proposed development and development standards for the permanent ordinance. In addition, surveys were conducted during the meetings to collect initial feedback on providing incentives to SB 9 projects that meet the Town’s development standards.

On February 3, 2023, the Town launched a new SB 9 Information webpage, which can be found via the following link: https://los-altos-hills-ca.civilspace.io/en/projects/senate-bill-9-sb-9. The webpage includes an introduction to the State Legislation and the progress of the local ordinance update. In addition, a questionnaire for SB 9 development incentives has been open until July 18, 2023.

On July 25, 2023, the Planning Commission Study Session on the draft SB 9 Permanent Ordinance was continued to July 27, 2023, due to technical difficulties. At the July 27’s meeting, Planning Commission considered the first version of the draft SB 9 Ordinance and provided the directions to staff (Attachment 2).

Staff Report to the City Council Page 3
Introducing SB 9 Permanent Ordinance
August 17, 2023
On August 3, 2023, the Planning Commission reviewed the second version of the draft ordinance that incorporated the changes per Planning Commission’s direction at the July 27’s Study Session and staff’s recommended changes for the final draft ordinance (Attachment 3). After the public hearing and Planning Commission’s deliberation, the Commission voted 3-2 to adopt a resolution recommending to the City Council the proposed SB 9 Ordinance presented to the commission inclusive of certain changes. The proposed ordinance as recommended by the Commission is attached for the Council’s consideration as Attachment 1 and 1a to this report.

In addition to its recommendation on the proposed permanent ordinance, the Commission also desired to forward to the City Council its comment regarding the utilization of basements as an incentive for SB 9 developments. This comment will be explained in the section below along with a summary of the proposed ordinance requirements.

August 17, 2023 City Council Meeting
As the urgency ordinance expires in October 2023, the Town must adopt a permanent ordinance to be in effect before the expiration date in order to continue enforcing local regulations and avoid a lapse between the urgency ordinance expiration date and the permanent ordinance effective date.

Otherwise, any SB 9 applications submitted during the absence of local regulations are subject to the state law which only contains minimal development and design regulations and not any of the local regulations in the interim ordinance. The timeline below is critical to timely adopt the permanent ordinance in effect prior to the urgency ordinance expiration date. • August 17, 2023- the City Council will consider the SB 9 Permanent Ordinance for first reading and introduction at a public hearing.
• If introduced, September 20, 2023 September 21, 2023 would be the City Council Regular Meeting for second reading and adoption. Adoption must occur at a regular meeting. • Once adopted, the SB 9 Permanent Ordinance would be in effect on the 31st day after adoption.

For instance, if adopted on September 20 September 21, the ordinance would be effective on October 21 October 22, 2023.

Additional Legislative Developments Regarding SB 9
Staff also wishes to bring to the Council’s attention recent legislative developments regarding SB

9. In 2023, Senate President pro-Tempore Toni G. Atkins (D-San Diego) introduced Senate Bill 450 to modify and strengthen certain provisions of SB 9 as a part of the legislative efforts to promote the ministerial review process and utilization by applicants and property owners. SB 450 passed Senate on May 12, 2023, and is currently with the Assembly for hearing. If adopted as currently proposed, SB 450 would do the following, among other changes:
• Prohibits local governments from imposing objective zoning, subdivision, and design standards that do not apply uniformly to development within the underlying zone. This means that cities cannot adopt standards and regulations that specifically apply to SB 9 but not to other residential developments in the underlying zone.
• Require local governments to either approve or deny an application for a new SB 9 unit or lot split within 60 days.
• Provide additional enforcement authority to the California Department of Housing and Community Development’s (HCD) over SB 9 developments.

Staff Report to the City Council Page 4
Introducing SB 9 Permanent Ordinance
August 17, 2023
If adopted as-written, these changes under SB 450 would apply to proposed and existing zoning and development regulations. At this time, SB 450 has yet to be approved by the Legislature and has not been signed into law. It is uncertain whether any additional changes may be made to the bill as it moves forward in the legislative process. Since SB 450 is not currently governing law, the foregoing information is provided for the City Council’s information only as an update. As with any legislative change, if the bill is approved and signed into law, the Town would have to review its permanent SB 9 ordinance and make amendments as necessary to ensure consistency with statutory requirements.

NOTICING/PUBLIC OUTREACH
The Study Session was noticed as a Public Hearing and notice was provided to the public. The public was advised of this Public Hearing in the following ways:
• Public Newspaper – Town Crier – August 3, 2023
• Public Posting Places – August 4, 2023
• Town Website: www.losaltoshills.ca.gov – August 11, 2023 • City Manager Weekly newsletter – June 23 and 30, July 7, 14, 21, 28, August 4, and 11 As of August 11, 2023, staff received one (1) public comment (Attachment 4).

DISCUSSION
The proposed SB 9 permanent ordinance implements local regulations that are tailored to Los Altos Hills and are consistent with its Housing Element as well as state law. To illustrate, the draft permanent ordinance carries over certain regulations from the interim ordinance, and makes other changes based on the Town’s experience in processing SB 9 applications during the interim period. The following sections highlights and summarizes major regulatory components, including development and design standards, proposed in the draft permanent ordinance.

Definitions
The permanent ordinance redefines “primary dwelling” and adds three definitions of “adjacent parcel,” “SB 9 Lot Split,” and “SB 9 Lot” to provide consistent reference throughout the draft ordinance. In particular, SB 9 Lot refers to lots created through SB 9 Lot Split, not including the lots accommodating SB 9 Units only.

SB 9 Lot Split
The permanent ordinance includes application materials for tentative map and final map based on the information required for standard subdivisions in the Town, pursuant to Municipal Code Section 9-1.504, 9-1.1205, and the Subdivision Application Packet. In addition, detailed SB 9 Lot Split review procedures are added to the permanent ordinance, requiring the tentative map and final map to be reviewed ministerially by the Community Development Director without public hearings. The draft ordinance also clarifies the Community Development Director’s decision shall be final. These edits are included for consistency with state law and to create a streamlined review process for such ministerial lot split projects.

Staff Report to the City Council Page 5
Introducing SB 9 Permanent Ordinance
August 17, 2023
The following development standards of SB 9 Lot Split are proposed or clarified in the draft permanent ordinance.
• Maximum number of units permitted on parcels created through SB 9 subdivisions. • Location, height, and massing requirements to rebuild existing structures. • Maximum depth to width ratio of 3:1 for a newly created lot. • Shared driveway options as identified in graphics.

To be consistent with the state law, applicable development standards for SB 9 Lot Split would be waived by the Community Development Director if the applicable regulation at issue would physically preclude the construction of two SB 9 Units on either resulting parcel or would result in an SB 9 Unit of less than nine hundred (900) square feet in floor area.

Please be advised that an errata sheet has been prepared for the draft ordinance to make additional clerical corrections discovered after the publication of the agenda. Staff would like to note that one clerical modification is proposed to Section 9-1.1601 (h) as below. The change is to reflect the ordinance’s intention, as recommended by the Planning Commission, that all existing and proposed easements would be identified on the tentative map for SB 9 Lot Split. (a) Location, width, and character of all existing and proposed easements including but not limited to easements for pathways, open space, conservation or agricultural purposes, utilities, equestrian uses,drainage, water, sewage, public utilities, together with the location and approximate dimensions of any existing buildings and structures, driveways, pools, hardscape, retaining walls, septic tanks, leach fields, wells, active or abandoned, and proposed disposition;
SB 9 Development Standards
The sections below provide a brief overview of the current baseline development standards for SB 9 units under the Town’s interim urgency ordinance, which are ministerially approved housing units in accordance with state law including the required 4-foot side and rear setbacks; the potential incentives options to encourage applicants to provide a 30-foot side and rear yard setback as specified in the underlying zoning districts and voluntarily offer easements to the Town, which is required for any new primary residences (except ADUs) in the Town that are discretionarily reviewed.

Baseline
Currently, under the interim SB 9 ordinance set forth in Los Altos Hills Municipal Code (LAHMC) Section 10-1.1507, SB 9 units are required to meet the following standards. • Forty (40)-foot front and four (4)-foot side and rear setbacks for any new SB 9 units. • Maximum eight hundred (800) square-foot floor area for one (1) SB 9 unit on any lot regardless of maximum floor area calculations.
• Maximum sixteen (16) – foot building height.
• Maximum number of units: two (2) SB 9 Units, ADU, JADUs as required by the Town’s ADU Ordinance and state law.

Staff Report to the City Council Page 6
Introducing SB 9 Permanent Ordinance
August 17, 2023
• For lots created by an SB 9 Urban Lot Split, MDA is MFA plus additional 2,100 square feet.
• No basement, bunkers, roof decks, and balconies are permitted. • One parking space is required outside of the 40-foot front and 30-foot rear and side setbacks of the underlying zoning districts.
• SB 9 units are not permitted in conservation easements, within twenty-five (25) feet of the top of a creek bank, within critical root zones, within ten (10) feet of parcel line next to a pathway, and in areas with slopes greater than forty (40) percent.

Most of these standards are proposed to remain and be carried over to the permanent ordinance per Planning Commission’s recommendation, with the following modifications:
• Maximum one nine (900) square-foot floor area for one (1) SB 9 unit.

As noted above, the Town’s 2023-2031 Housing Element strategies commit to promoting and encouraging SB 9 developments including Program B-10 to allow larger SB 9 units and include development incentives. For example, Programs B-10 states the following commitment: “allow(s) SB 9 units constructed on newly created SB 9 parcels to have default floor areas greater than 800 square feet as currently stated in the interim ordinance, and require compliance with the Town’s objective design standards which will be prepared as a part of the permanent ordinance.” To implement these Housing Element strategies, the proposed ordinance would set the baseline default size for one SB 9 unit at 900 square feet regardless of maximum floor area calculations. This default size applies to any parcel and provides a 100-square-foot expansion from the current 800 square feet default size in the interim ordinance. The rationale behind the 900 square feet default size is that it provides the opportunity for the SB 9 unit to construct an additional bedroom (which is commonly approximately 100 square feet minimum) to facilitate development and utilization of the unit. Additionally, the Town’s ADU ordinance currently allows ADUs, which are secondary dwelling units, to be up to one thousand (1,000) square feet with available development capacity while maintaining four-foot side and rear setbacks. Thus, it is reasonable for the Town to provide a default size of 900 square feet for SB 9 units which are primary dwellings to encourage their use and development. This is consistent with state law requirement that a certain size of SB 9 units must be allowed on single-family lots and the Housing Element goals to promote these units.
• SB 9 units are not permitted in areas with slopes greater than thirty (30) percent instead of forty (40) percent.
• Parking requirement is modified to be consistent with ADU parking requirements so that the space may be provided as tandem parking within the standard setback areas.
• Modification of “Minimum MFA and MDA” for Calculation of Development and Floor areas. Currently, Municipal Code Sections 10-1.502 (c) and 10-1.503 (c) provides that each lot will be able to receive at least 5,000 square feet of MFA and 7,500 square

Staff Report to the City Council Page 7
Introducing SB 9 Permanent Ordinance
August 17, 2023
feet of MDA (in the case of lots with LUF equal or less than 0.5 requiring a Conditional Development Permit, these figures are 2,500 square feet of MFA and 4,500 square feet of MDA, or as granted by the applicable site development authority). The proposed ordinance removes this requirement for all substandard lots (LUF less than 1.0) that are created after the proposed ordinance has been adopted and goes into effect. Please note this requirement does not impact how current MFAs and MDAs are calculated for standard and substandard lots that have already been created and currently existing.

Additionally, SB 9 units are required to comply with objective design and development standards set forth in the proposed ordinance. These include location requirements, sewer connection, driveway access, objective grading requirements, lighting and landscape/tree removal requirements, and applicable building code/fire code requirements. As required by state law, objective design, location and development standards would be waivable by the Community Development Director so as not to physically preclude the construction of up to two (2) units on one lot and for one unit to be at least nine hundred (900) square feet, except that SB 9 units will need to comply with all Building Code requirements and will not be allowed to encroach into any recorded easement. The section further below provides more details regarding objective standards requirements.

Incentives for Compliance with Standard Development Regulations In addition to standard, objective development regulations, the Town also proposes an option to include various development incentives to provide an opportunity for applicants to receive development bonuses in exchange for voluntary compliance with additional development requirements that do not apply to SB 9 units per state law. Availability of incentives may encourage voluntary compliance with standards that are stricter than what state law requires and may further preserve the Town’s development pattern and characteristics. It is important to note that all SB 9 applicants would continue to be able to utilize the ministerial SB 9 development process and have their units approved in the same streamlined manner, regardless of any incentives that the Town may choose to provide.

To qualify for the incentives, the proposed SB 9 development must meet the following criteria to comply with the development standards of the underlying zoning district. (1) Criteria for Development Incentives:
• The proposed SB 9 Unit meets the 40-foot front and 30-foot side and rear setbacks. • The applicant or property owner proposes to dedicate to the Town all the following as applicable:
o For any parcel, a public right-of-way interest pursuant to Section 9-1.703. o For a parcel with a slope equal to or exceeding thirty percent (30%), an open space easement covering the entire sloped area.
o For a parcel containing a creek identified in General Plan, an open space easement providing at least a twenty-five (25) feet buffer zone from the top of the creek bank. o For a parcel with a proposed pathway identified on the Town’s Pathway Master Plan, a pathway easement of at least ten (10) feet in width covering the identified pathway segment.

Staff Report to the City Council Page 8
Introducing SB 9 Permanent Ordinance
August 17, 2023
(2) Development Incentives- applicable if both setback and dedication criteria above are met:
• The parcel may calculate its maximum floor area (MFA) and maximum development area (MDA) in accordance with the Town’s LUF formula.
• Of said MFA permitted, two thousand (2,000) square feet would be the maximum size for the development of one (1) SB 9 Unit, if the Lot Unit Factor (LUF) is less than or equal to 0.5; three thousand (3,000) square feet would be the maximum size for the development of one (1) SB 9 Unit, if the LUF is greater than 0.5. • The maximum height remains sixteen (16) feet for an SB 9 unit receiving development incentives. During previous public meetings, the Planning Commission considered to include in the incentives program a nineteen (19)-foot maximum height to align with the maximum height for an ADU located outside the standard setbacks in the Town and thereby encourage the utilization of said program, but ultimately reached a consensus to maintain the sixteen (16)-foot maximum height for all SB 9 Units regardless of incentives.
• A basement would be permitted for SB 9 Units subject to the requirements of Section 10-1.202 and the setback requirements under Section 10-1.505, which also apply to any light wells and roof eaves.
• The basement level floor area is included in the floor area calculation if any portion of the basement is “daylighted” (visible above ground).
• The lightwell for the basement shall be three (3) by nine (9) feet in size per bedroom and meet the requirements for ingress and egress under the California Building Code (CBC) or California Residential Code (CRA).
• Required Parking. The parking spaces at least ten (10) feet wide by twenty (20) feet deep are required based on the floor area of the proposed SB 9 units listed below.

Floor Area Number Forms Setbacks
Under 1000 square feet 1 uncovered Permitted in the Setback areas 1,000 to 1,600 square feet 1 uncovered Outside the 40-foot front and 30-foot rear and side setbacks 1,600 to 2,400 square feet 3 uncovered 2,400 to 3,000 square feet 4 At least Two
(2) covered
No more than seven (7) parking spaces, including covered and uncovered, shall be allowed on any lots.

As mentioned in the first section of this report, the Commission also desired to forward a comment regarding including basements as an incentive for SB 9 developments to the City Council for consideration. While the draft ordinance recommended by the Commission includes basements as a development incentive for SB 9 units that adhere to standard setbacks and dedicates easements, some commissioners thought that the incentives program should reserve basements until a later time when the Town can evaluate whether the incentives program is effective. Since the inclusion of basements is a development incentive and not a baseline requirement, the Town has the option of including or removing it from the incentives program.

Staff Report to the City Council Page 9
Introducing SB 9 Permanent Ordinance
August 17, 2023
At the same time, the Council should consider whether the removal of basements from the list of incentives would make the incentives program desirable enough for applicants to utilize. The Council should keep these considerations in mind when it evaluates the incentives program.

Objective Design Standards
The proposed permanent ordinance incorporates as objective standards the Town’s Grading Policy, Outdoor Lighting Policy, and Metal Roof Policy, as well as the standard condition of approval for Light Reflective Value (LRV) requirements for exterior walls and roofs. In addition, the following objective design standards are included to guide SB 9 development to be consistent with the standard single-family residential development in the underlying zoning district. • For a detached unit greater than 1,000 square feet in floor area or an attached unit, the exterior materials and design shall match the design of any existing primary dwelling unit on the parcel. If future additions increase the total floor area of an existing SB 9 unit to be greater than 1,000 square feet, this provision applies. • Detached dwelling units will be required to maintain no less than ten (10)-foot separation between units as measured from the exterior walls. • Building features and equipment, such as operable doors, attached HVAC, generators, hardscape, and temporary construction equipment, are required to maintain a minimum 10-foot setback from any property line.
• Windows may not occupy more than 33% of any façade of an SB 9 unit, and must install “privacy glass” if the distance is less than ten (10) feet between the windows and the property line and the window is less than six (6) feet high). • An arborist report is required for construction within the driplines of any trees with trunk diameters of twelve (12) inches or greater to identify a heritage oak tree. • Objective landscape screening standards are included for baseline and incentivized SB 9 development.
• WELO calculations and landscape deposit required for other residential development projects are required for proposed landscape associated with SB 9 units.

NEXT STEP
If introduced for adoption, the permanent SB 9 Ordinance would be scheduled for second reading and adoption at the September 20 September 21, 2023 City Council Regular Meeting. Once adopted, the SB 9 Permanent Ordinance would be in effect after 30 days from adoption before the expiration of the interim ordinance on October 31, 2023.

ENVIRONMENTAL REVIEW
SB 9 state law exempts local ordinances implementing SB 9 from California Environmental Quality Act (CEQA) requirements. Therefore, CEQA is not applicable and the ordinance is exempt from CEQA.
2023 CITY COUNCIL STRATEGIC PRIORITIES

Staff Report to the City Council Page 10
Introducing SB 9 Permanent Ordinance
August 17, 2023
This is part of 2023 City Council Priorities under ‘Quality of Life and Community Character,’ and satisfies the milestone “Adopt SB 9 Ordinance” under the key project “Permanent SB 9 Ordinance.”

FISCAL IMPACT
There are sufficient funds in the FY2023-24 Operating Budget to cover staff and City Attorney’s time and no additional funds need to be appropriated.

ATTACHMENTS

1. Ordinance and Draft SB 9 Permanent Ordinance—Exhibit A (proposed regulations)

1.a. LAH SB 9 Ordinance Errata Sheet

2. July 27 Planning Commission Study Session Staff Report and Draft Ordinance (Version 1)

3. August 3 Planning Commission Staff Report and Draft Ordinance (Version 2)

4. Public Comments – Redacted

5. Draft Minutes – August 3 Planning Commission Meeting 5435626.1

TOWN OF LOS ALTOS HILLS September 28, 2023
Staff Report to the City Council
SUBJECT: INFORMATIONAL UPDATE ON VTA MEASURE B – BICYCLE AND

PEDESTRIAN EDUCATION AND ENCOURAGEMENT PROGRAM
FROM: WooJae Kim, Public Works Director
APPROVED: Peter Pirnejad, City Manager
RECOMMENDATION: That the City Council receive an informational update on the Santa Clara Valley Transportation Authority (VTA) Measure B – Bicycle and Pedestrian Education & Encouragement Program.

BACKGROUND
In 2016, Santa Clara County voters approved a 30-year sales tax measure, referred to as Measure B, that would fund nine transportation program categories to enhance transit, highways, roadways in general, and active transportation (bicycles, pedestrians and complete streets). Measure B programs and funds are administered by VTA.

One of the program categories is the Measure B - Bicycle and Pedestrian, of which the Education and Encouragement program is part of. The Measure B – Bicycle and Pedestrian Education & Encouragement (E&E) Program provides annual funding to jurisdictions in the county for non-capital improvement projects to promote and educate communities to safely walk, bike, and resort to other multimodal and active transportation options.

The Town entered into a master funding agreement with VTA for the Measure B – Bicycle and Pedestrian E&E Program in 2019.

DISCUSSION:

For FY2023-24, the Town has an accrual of $70,852.51 Measure B E&E Program funds, of which $10,000 at minimum should be spent this fiscal year. The Town has created a list of potential programs or projects for the use of funds in FY2023-24 and upcoming years (Attachment A).

Before the October 1, 2023, deadline, staff plans to submit the list of projects to VTA with the reporting form (Attachment B) for review and approval. Once the list is approved by VTA, staff would further prioritize and include projects based on Town’s needs for transportation safety and needs of the community and stakeholders meeting the education and encouragement requirements of the funds. Through the E&E Program, staff plans to AGENDA ITEM #4.K
(Adjourned from September 21, 2023)

Staff Report to City Council Page 2
Measure B – Bicycle and Pedestrian E&E Program Update
September 21, 2023
outreach to the public, provide awareness to alternative methods of transportation, and encourage residents to utilize these methods safely.

ENVIRONMENTAL REVIEW:

This action does not qualify as a “Project” as defined in Section 15378(b) of the California Environmental Quality Act Guidelines.
2023 CITY COUNCIL WORK PLAN:

This program is not specifically identified on the 2023 City Council Work Plan; however, it supports the council priorities to “Promote Public Safety” and “Increase Effective Service Delivery & Governance.”

FISCAL IMPACT
The total available Measure B - Bicycle and Pedestrian E&E Program funds for the Town is $70,852.51. Based on population, the Town receives $10,000.00 annually from Measure B E&E Program. Town staff resources would be needed and prioritized to manage and implement the E&E Program. Otherwise, there is no fiscal impact to the Town.

ATTACHMENT:

1. Education & Encouragement Program of Projects

2. Education & Encouragement Annual Reporting Form
Prepared by: Astha Khanal, Assistant Engineer

Attachment 1
1 2016 Measure B Bicycle & Pedestrian Education & Encouragement Program of Projects Town of Los Altos Hills
Fiscal Year: July 1, 2023 – June 30, 2024
Instruction:

1. Fill out this form in Microsoft Word. Make sure you indicate the agency and fiscal year above.

2. Submit a draft to VTA for review and approval.

3. After approval, go to “file” and “Save as” to save this file as PDF. Please do not print to PDF because it will not preserve the document accessibility.

Any attachments to this document should be made accessible and have optical character recognition.

4. Submit the final version in PDF to VTA as official submittal. Due date is October 1st of every year.

Project Title Project Activities Description Project
Locations
Frequency Project Goals* Proposed
Evaluation
Metrics*
Example:

Online media safety
campaign
• Develop clear and direct campaign
slogans, and design marketing
materials.
• Advertise campaign through online
articles and news.

Online Annually • Increase awareness of the
responsibilities of pedestrians,
bicyclists and motorist and
improve behaviors.

Project reach:
number of
people taking
the pledge
Pathways Maps • Print out Pathways Maps for Town
residents to purchase. Update Town
Maps on a semi-annual basis.

Town Hall Every
3 to 5 years
• Update Pathway Maps to
include new pathways.
• Provide residents with
information on walkways and
promote walking.

Map
purchases
SRTS Mobile App
http://www.SchoolRoutes.org
• Work with traffic consultant to add
routes to mobile app for Los Altos
Hills for Safe Routes to Schools.

Online Once • Provide students & parents
SRTS information.
• Promote walking.
• Promote safety when
walking/biking to school.

Mobile app
downloads
LAH School Zone Messaging
Gardner Bullis Elementary
• Replace old vehicle speed feedback
signs.
25890 Fremont
Rd, Los Altos
Hills
Once,
As Needed
• Replace old vehicle speed
feedback signs near school.

Driver speed
observation

Attachment 1
2 SR25 Campaign Program • Create banners with local PTA and School Reps. Use local paper ads,
social media. Hand out education
materials.

Gardner Bullis
Elementary
Once • Host event with local
elementary school to promote
safety.

Student &
school
feedback
Los Altos Hills Town Bicycle
Riding Event – Pilot
• Host Fall Town event for a
community bike ride. Hand out
helmets and pathway maps.

Town Hall
Fremont Rd.

Annual • Host event to promote
community bicycling.
• Hand out helmets and pathway
maps.
• Promote biking.
• Provide information.

Number of
helmets given
out, pathway
maps given
out,
participants.

Town Pathways Annual Walk • Hand out Pathways Maps. Work with the Pathways Committee to create a
walking route for residents to walk
on New Year’s Day. Pass out
Pathways Maps, teach residents
about network of paths, encourage
residents to walk new locations and
learn new paths.

Town Hall
TBD
Annual • Coordinate with the Pathways
Committee to walk along
pathways route.
• Promote walking.
• Provide information to
residents on pathway network.

Number of
participants,
pathway maps
given out.

Town’s Pathway Run • Hand out Pathways Maps. Encourage
residents to sign up for Pathways
Run.

TBD Annual • Coordinate with the Pathways
Committee to walk along
pathways route.
• Promote walking.
• Provide information to
residents on pathway network.

Number of
participants,
pathway maps
given out.

School Assembly on Bike
Safety
• Organize a speaker to teach students
about bike safety
Gardner Bullis
Elementary,
Pinewood School
TBD • Teach bike safety habits and
rules.

Project Reach
Bike Rack Installation • Make is more accessible to bike to locations and can lock/ leave bike in
safe area
TBD Once • Increases ability to bike to
more locations.

Bike rack
utilization
Bike to Work Day • Event for residents and Town Staff to bicycle to work day.

N/A Annual • Encourages residents and Town
Staff to bicycle to work and to
utilize biking more.

Number of
participants
Bike Valet for Town Events • For various Town community events, have bike valet services available to
encourage biking
TBD TBD • Encourages residents to bicycle
and utilize other methods of
transportation.

Number of
participants

Attachment 1
3 Touch a Truck Event • Provide bicycle safety gear for kids and residents throughout the Town
at a Town Event.

TBD Annual • Encourages residents to bicycle
and utilize other methods of
transportation.

Number of
participants
and safety
gear given out
Trick or Treat Event • Provide safety gear for kids and residents throughout the Town at a
Town Event.

Town Hall Annual • Encourages residents to bicycle
and utilize other methods of
transportation.

Number of
participants
and safety
gear given out
Hoppin’ Hounds Event • Provide safety gear for kids and residents throughout the Town at a
Town Event.

WestWind Barn Annual • Encourages residents to bicycle
and utilize other methods of
transportation.

Number of
participants
and safety
gear given out
LAH Wellness Walks • Town Staff performs wellness walks every year through the Town’s
Pathways
• Provide safety gear
Town Pathways Annual • Encourages Staff to bicycle and
utilize other methods of
transportation.

Number of
participants
and safety
gear given out
*Note: Project sponsors must identify at least one primary goal and one proposed evaluation metric.

2016 Measure B Bicycle & Pedestrian
Education & Encouragement Program Annual Reporting

1. Instruction
Submit this form in PDF format to [email protected] by October 1st of each year to provide a progress update for the 2016 Measure B Bicycle & Pedestrian Education & Encouragement (EE) program.

2. General information
Jurisdiction Town of Los Altos Hills
Date of Submittal September 15, 2023
Contact – Name/Title Astha Khanal/Assistant Engineer
Email [email protected]
Phone (650)947-2541
Total allocation through
FY2023
(including any allocation banked)
$70,851.51
Reimbursement received
through FY2023
$0.00
Remaining allocation $70,851.51
Reporting period FY2023 (July 1, 2022 – June 30, 2023)

3. Program Progress Report

1. Did you request to bank any of your allocations for this reporting period? ☒ Yes, we requested to bank full allocations for this reporting period. You may skip Questions 2-4. Please briefly describe if you worked on any preparation for a larger EE effort/activity:

Yes, the Town requested to bank our allocation for the reporting period. The Town is compiling a list of projects/programs for E&E funds for FY2024 with stakeholder input and with the assistance of a transportation consultant.
☐ Yes, we requested to bank part of the allocations for this reporting. Please briefly describe if you worked on any preparation for a larger EE effort/activity. Please also answer Questions 2-4. ☐ No, please answer Questions 2-4.

TOWN OF LOS ALTOS HILLS September 28, 2023
Staff Report to the City Council
___________________________________________________________________________ SUBJECT: RESOLUTION ACCEPTING STORM DRAIN IMPROVEMENTS AT

PURISSIMA PARK, STORY HILL LANE, AND OAK PARK COURT

PROJECT
FROM: WooJae Kim, Public Works Director
Daniel Liang, Utility Engineering Manager
APPROVED: Peter Pirnejad, City Manager
____________________________________________________________________________ RECOMMENDATION: That the City Council:

1. Approve the attached resolution accepting the Storm Drain Improvements at Purissima Park, Story Hill Lane, and Oak Park Court Project performed by C2R Engineering, Inc. as completed.

2. Authorize the release of the final retention payment to C2R Engineering, Inc.

3. Direct the City Clerk to file a Notice of Completion.

BACKGROUND:

As part of the adopted FY23-24 Operating Budget and FY2024-2028 Five Year Capital Improvement Plan, a new capital improvement project (CIP) for Storm Drain Improvements was approved with a total FY2023-24 project budget of $250,000 from American Rescue Plan Act (ARPA) and Drainage In-lieu Funds.

On May 17, 2023, the City Council adopted a resolution to approve the plans and specifications for the Storm Drain Improvements at Purissima Park, Story Hill Lane, and Oak Park Court Project, to advertise the project for a formal bid, and to authorize the City Manager to award a construction contract not to exceed $220,000 from the Storm Drain Improvements CIP budget. The improvements include constructing a new bio-retention basin adjacent to Purissima Road in the Purissima Park, installing a new drainage inlet in a siltation basin off Story Hills Lane, and removing sediments in an existing drainage basin between Oak Park Court and a pathway.

At Purissima Park, the project would add a new bio-retention basin in a median island to collect run-off from the Park’s parking lots and Purissima Road. The basin will treat run-off and retain pollutants, which would count towards meeting the Town’s Green Stormwater Infrastructure (GSI) target of 0.51 acres of impervious area treated for the Regional Municipal Regional Stormwater Permit from the State Water Board. Runoff from the basin will ultimately discharge into Deer Creek or percolate into the ground.

AGENDA ITEM #4.L
(Adjourned from September 21, 2023)

Staff Report to City Council Page 2
Acceptance of Storm Drain Improvements at Purissima Park, Story Hill Lane, and Oak Park Court September 21, 2023
At the siltation basin off Story Hill Lane, the project would add a new overflow drainage inlet that drains into the high-flow outlet structure. The new drainage inlet will overcome deficiencies of the high flow outlet and reduce flow through the open creek on the private property. It will also prevent overflow from the creek onto Story Hill Lane.

At the drainage basin off Oak Park Court, the project would remove sediments in the basin and unclog drainage pipes and structures to allow the drainage basin to operate as intended.

On May 26, 2023, staff advertised the project on the Palo Alto Daily Post and the Los Altos Town Crier. On June 15, the Town received bids from three contractors as summarized below:

C2R
Engineering
Smelly Mel’s
Plumbing
Inder Design
Build
Base Bid –
New basins at Purissima Park $ 125,000 $ 145,000 $163,500 Alternate 1 –
Story Hill Lane Siltation Basin $ 35,000 $ 19,000 $ 30,000 Alternate 2 –
Oak Park Court Drainage $ 35,000 $ 36,000 $ 51,800
Total
(Base Bid plus Alternates) $ 195,000 $200,000 $245,300
C2R Engineering was established as the lowest responsible bidder, and the Town executed a construction contract for “Base Bid plus Alternate 2” with C2R for a contract amount of $160,000 on June 30. Alternate 1 work at Story Hill Lane Siltation Basin was not awarded to C2R due to the high cost of the bid item. Staff was able to negotiate a separate contract for the Alternate 1 work with Smelly Mel’s Plumbing for an amount not to exceed $25,000.

DISCUSSION:

Construction work on Purissima Park and Oak Park Court started on August 7, 2023, and the work was substantially completed on August 18. The construction of the Storm Drain Improvements project has been inspected and managed by staff. The project at Purissima Park and Oak Park Court is now deemed completed. Below is the project account summary:

Approved Actual
Total Approved Construction Budget $ 220,000
Base Contract (C2R Engineering) $ 160,000
Contract Change Orders (C2R Engineering) $ 20,000
Total Project Expenditure $ 180,000
Contract for Alternate 1 Work at Story Hill Lane $ 25,000 Project Balance $ 15,000

Staff Report to City Council Page 3
Acceptance of Storm Drain Improvements at Purissima Park, Story Hill Lane, and Oak Park Court September 21, 2023
The final contract expenditures for C2R include two (2) contract change orders for a total amount of $20,000.

Staff recommends that the City Council accept the Storm Drain Improvements project by C2R to be complete and allow the remittance of the five percent retention to the contractor 35 days following the project acceptance. A Notice of Completion will be filed for the project upon approval by the City Council.

ENVIRONMENTAL REVIEW:

Repair and maintenance of publicly owned utilities is defined as Class 1 Categorically Exempt per the California Environmental Quality Act (CEQA) Existing Facilities Section 15301(b). 2023 CITY COUNCIL WORK PLAN:

This action was not identified on the 2023 City Council Work Plan, but it supports the council priorities to “Maintain Quality of Life” and “Protect and Maintain Infrastructure.” FISCAL IMPACT:

The total project expenditure will be within the City Council approved budget of $220,000 for the Storm Drain Improvements at Purissima Park, Story Hill Lane, and Oak Park Court Project. The remaining balance in the FY2023-24 Storm Drain Improvements project will be spent on other capital drainage improvements per the approved CIP.

ATTACHMENTS:

1. Resolution

2. Notice of Completion

RESOLUTION NO. _________

A RESOLUTION ACCEPTING THE STORM DRAIN IMPROVEMENTS AT

PURISSIMA PARK, STORY HILL LANE, AND OAK PARK COURT PROJECT AS

COMPLETE, AUTHORIZING FINAL RETENTION PAYMENT TO THE

CONTRACTOR, AND DIRECTING THE CITY CLERK TO FILE NOTICE OF

COMPLETION
WHEREAS, the Storm Drain Improvements is a capital project in the Adopted FY23-24 Operative Budget and FY2024-2028 Five Year Capital Improvement Plan with designated funding; and
WHEREAS, On May 17, 2023, the City Council adopted a resolution to approve the plans and specifications for the Storm Drain Improvements at Purissima Park, Story Hill Lane, and Oak Park Court Project, to advertise this project for a formal bid, and to authorize the City Manager to award a construction contract not to exceed $220,000; and WHEREAS, the City Manager executed a construction contract in the amount of $160,000, excluding the work on Story Hill Lane, and awarded the project to C2R Engineering, Inc. on June 30, 2023; and
WHEREAS, the contracted work at Purissima Park and Oak Park Court was substantially completed on August 18, 2023; and
WHEREAS, the contracted work has been inspected by staff, and the project is now deemed completed; and
WHEREAS, once the City Council accepts the project, staff will remit the five percent retention to the contractor 35 days following the project acceptance.

NOW, THEREFORE, the City Council of the Town of Los Altos Hills does RESOLVE as follows:

Section 1. As recommended by staff, the City Council accept the Storm Drain Improvements at Purissima Park and Oak Park Court by C2R Engineering, Inc. as complete and authorize staff to make the final retention payment concerning the above-described work.

Section 2. The City Clerk is hereby directed to file the notice of the completion of said project with the County Recorder of the County of Santa Clara, within ten (10) days from the date of this Resolution.

The above and foregoing resolution was passed and adopted by the City Council of the Town of Los Altos Hills at a regular meeting held on the 21st day of September 2023 by the following vote:

Attachment 1

AYES:

NOES:

ABSTAIN:

ABSENT:

By:

Linda G. Swan, Mayor
ATTEST:

Deborah L. Padovan, City Clerk

This Document is Recorded
For the Benefit of the
Town of Los Altos Hills
And is Exempt from Fee
Per Government Code
Sections 6103 and 27383
When Recorded, Mail to:

Town of Los Altos Hills
26379 Fremont Road
Los Altos Hills, CA 94022
Attention: City Clerk

NOTICE OF COMPLETION
NOTICE IS HEREBY GIVEN that C2R Engineering, Inc. on June 30, 2023, entered into a contract for the Storm Drain Improvements at Purissima Park, Story Hill Lane, and Oak Park Court Project, in Los Altos Hills, situated in Santa Clara County, with the Town of Los Altos Hills.

Said improvements (excluding the work at Story Hill Lane not awarded with the contract) were completed in accordance with the Plans and Specifications adopted by the City Council and upon the terms and conditions set forth and identified by the written contract.

On the 21st day of September 2023, the work provided to be done under the contract was fully completed with the terms of the contract.

NOTICE IS FURTHER GIVEN that the public board for whom the above-described work was done is the City Council of the Town of Los Altos Hills, a municipal corporation of the State of California, and that the name and address of the political subdivision for which the abovedescribed work was done is the Town of Los Altos Hills, State of California, Town Hall, 26379 Fremont Road, Los Altos Hills, California 94022.

NOTICE IS FURTHER GIVEN that the name of the contractor by whom the abovedescribed work was done is as follows:

CONTRACTOR: C2R Engineering, Inc.

Wei Lien Liang
Utility Engineering Manager
Town of Los Altos Hills
DATE:

Attachment 2

I, Deborah Padovan, duly appointed City Clerk for the Town of Los Altos Hills, do hereby certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing is true and correct.

WITNESS my hand and official seal.
___________________________________
Deborah Padovan, City Clerk
Date: _______________
Place: Town Hall
Town of Los Altos Hills
26379 Fremont Road
Los Altos Hills, CA 94022

AGENDA ITEM #4.M
(Adjourned from September 21, 2023)

TOWN OF LOS ALTOS HILLS September 28, 2023
Staff Report to the City Council
SUBJECT: RESOLUTION REPEALING RESOLUTION 24-22 RELATED TO MANDATORY COVID-19 VACCINE AND TESTING POLICY
FROM: Peter Pirnejad, City Manager
RECOMMENDATION:

That the City Council consider adopting a resolution repealing Resolution 24-22 related to the mandatory COVID-19 vaccine and testing policy.

BACKGROUND:

On February 17, 2022, the City Council adopted Resolution 24-22, which established a policy that requires Town employees, Councilmembers, and Planning Commissioners who work in Town facilities on a regular basis to be vaccinated for COVID-19 and be up to date on boosters (Policy). This policy remains in place and is effective for prospective employees of the Town as well.

DISCUSSION:

The Policy was adopted shortly after the Santa Clara County Health Officer issued an order requiring up to date COVID-19 vaccinations for workers in certain high-risk settings as a result of a rapid surge in cases due to the Omicron variant. The Town followed suit with its own policy as an emergency public health response to mitigate the negative public health consequences associated with increased incidents and the prevalence of new COVID-19 variants.
18 months later, the Town, like most employers in both public and private sector, has adjusted to a new post-pandemic normal. This new normal includes things such as hybrid work schedules and hybrid Council/Commission meetings. Furthermore, knowledge about the virus and the efficacy of vaccines has continued to evolve over time. This includes a better understanding of how the vaccine and subsequent boosters are more likely to prevent severe outcomes from the virus as opposed to preventing transmission of the virus.

One of the Council’s strategic priorities is improving employee attraction and retention. Part of achieving this is reducing barriers to employment for prospective employees. As the Town moves further away from operating in a pandemic-based environment, it is important to review policies and procedures adopted during that time. As a result, based on what is known about vaccines/boosters and the impact this requirement could have on hiring qualified candidates, staff recommends that Council repeal Resolution 24-22 to rescind the Policy.

ENVIRONMENTAL REVIEW:

This action does not qualify as a “Project” as defined in California Government Code Section 15378(b) of the Guidelines for California Environmental Quality Act.

AGENDA ITEM #4.N
(Adjourned from September 21, 2023)

Staff Report to City Council Page 2
COVID-19 Vaccination Policy
September 21, 2023
2023 CITY COUNCIL STRATEGIC PRIORITIES:

This proposal supports the following 2023 City Council Strategic Priorities:
• Improve employee attraction and retention.

FISCAL IMPACT: This action does not have any direct or indirect impact on the Town’s financials.

ATTACHMENTS:

1. Resolution
5482959.1

Resolution __ -23 Page 1
RESOLUTION __ -23

RESOLUTION OF THE CITY COUNCIL OF THE TOWN OF LOS ALTOS HILLS REPEALING RESOLUTION 24-22 RELATED TO THE COVID-19 TESTING AND

VACCINE POLICY
WHEREAS, on February 17, 2022, the Town of Los Altos Hills adopted Resolution 24-22 establishing a COVID-19 testing and vaccination policy (Policy); and WHEREAS, the Policy was adopted shortly after the Santa Clara County Health Officer issued an order requiring up to date COVID-19 vaccinations for workers in certain high-risk settings as a result of a rapid surge in cases due to the Omicron variant; and WHEREAS, the Policy requires vaccinations and up to date boosters for all Town employees, Councilmembers, and Planning Commissioners who utilize Town facilities on a regular basis, and is also applicable to prospective employees of the Town; and WHEREAS, the Town is now operating in a post-pandemic environment and continues to adjust operations accordingly; and
WHEREAS, the City Council now desires to repeal Resolution 24-22 to rescind the Policy and no longer require COVID-19 vaccinations for Town employees, Councilmembers, Planning Commissioners, or prospective employees of the Town.

NOW THEREFORE, BE IT RESOLVED that the City Council of the Town of Los Altos Hills hereby repeals Resolution 24-22 related to the COVID-19 testing and vaccination policy.

BE IT FURTHER RESOLVED that this Resolution shall go into effect immediately upon adoption by the City Council.

The above and foregoing Resolution was passed and adopted by the City Council of the Town of Los Altos Hills at a regular meeting held on 21st of September 2023 by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

By:

Linda G. Swan, Mayor
ATTEST:
__________________________
Deborah L. Padovan, City Clerk
Attachment 1

TOWN OF LOS ALTOS HILLS September 28, 2023
Staff Report to the City Council
SUBJECT: RESOLUTION APPOINTING REPRESENTATIVES TO PLAN JPA ON

BEHALF OF THE TOWN OF LOS ALTOS HILLS
FROM: Cody Einfalt, Interim Assistant to the City Manager APPROVED: Peter Pirnejad, City Manager
RECOMMENDATION: That the City Council should:

Adopt the attached resolution (Attachment 1) authorizing representatives to PLAN JPA on behalf of the Town of Los Altos Hills

BACKGROUND
The Association of Bay Area Governments Pooled Liability Assurance Network (ABAG PLAN) was established in 1986 as a non-profit corporation to establish a stable, cost-effective selfinsurance, risk sharing and risk management program option for ABAG members. Los Altos Hills has participated in the ABAG PLAN since 1986 to obtain coverage and risk management services related to liability, property, automobile physical damage and other ancillary lines of coverage.

During 2017, ABAG transitioned into a nonprofit, PLAN JPA. This separate JPA model aligns Los Altos Hills and other PLAN JPA members with pooling industry best practices, allowing for program continuity. The Council passed Resolution 72-17 on December 17, 2017 authorizing the Town of Los Altos Hills to participate in the Pooled Liability Assurance Network Joint Powers Authority (PLAN JPA).

DISCUSSION
Pursuant to PLAN JPA Bylaws Article VII Section 3, one director and one alternate director serve at the respective Member Entity's pleasure. A copy of the PLAN JPA Bylaws can seen in Attachment 2.

The Town currently designates the Administrative Services Director as the board representative and Management Analyst as alternate.

Staff recommends updating the representatives as follows:
• Primary Representative: Administration Service Director • Alternate Representative: Assistant to the City Manager AGENDA ITEM #4.O
(Adjourned from September 21, 2023)

Staff Report to City Council Page 2
PLAN JPA Representative
September 21, 2023
ENVIRONMENTAL REVIEW:

The proposed representative to PLAN JPA is exempt from California Environmental Quality Act (CEQA) due to the proposal not being defined as a “project” under CEQA. 2023 CITY COUNCIL WORK PLAN:

Participation in PLAN JPA is not designated on the work plan, but rather is considered part of the day-to-day activities of staff.

FISCAL IMPACT:

There is no fiscal impart related to passing this resolution.

ATTACHMENTS

1. Proposed Resolution

2. PLAN JPA Bylaws

Resolution __ -22 Page 1
RESOLUTION __ -23

RESOLUTION TO APPOINTING REPRESENTATIVES TO PLAN JPA ON BEHALF

OF THE TOWN OF LOS ALTOS HILLS
WHEREAS, the Town of Los Altos Hills has been a charter member of ABAG PLAN Corporation since 1986; and
WHEREAS, the Town of Los Altos Hills resolved to relieve ABAG of (i) the right to act as Trustee for, invest and disburse moneys of the Claims Payment Funds, (ii) administrative and clerical support for the day-to-day management of PLAN, (iii) internal accounting for PLAN, and (iv) promotional and educational activities; and
WHEREAS, the Town the Los Altos Hills resolved to transition these services to the newly formed entity PLAN JPA; and
WHEREAS, PLAN JPA provides the City with liability insurance, property insurance, and employee bonds; and
WHEREAS, PLAN JPA is a self-insurance pool serving public agencies; and WHEREAS, the operations of these programs are governed by a Board of Directors consisting of one representative from each member agency; and
WHEREAS, historically the Town of Los Altos Hills designated a primary and alternate member to the board of directors; and
WHEREAS, participation on the Board of Directors has been carried out by Town Staff as part of its regular duties and does not result in any remuneration to the employee; and NOW THEREFORE, resolved by the City Council of the Town of Los Altos Hills does hereby designate the representatives for the Town as follows:
• Primary Representative: Administration Service Director • Alternate Representative: Assistant to the City Manager The above and foregoing Resolution was passed and adopted by the City Council of the Town of Los Altos Hills at a regular meeting held on 21st of August 2023 by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Attachment 1

Attachment 2

BYLAWS OF POOLED LIABILITY ASSURANCE

NETWORK JOINT POWERS AUTHORITY
(PLAN JPA)

ARTICLE I
NAME
The name of this group self-insurance program shall be Pooled Liability Assurance Network Joint Powers Authority (PLAN JPA).

ARTICLE II

OFFICES

1. Principal Office. The principal office for the management of the business of PLAN JP A ("principal executive office") is located at 1750 Creekside Oaks Drive, Sacramento, CA 95833. The Board of Directors may change the principal executive office from one location to another. Any change of this location shall be noted by the Secretary on these Bylaws, or this section may be amended to state the new location.

2. Other Offices. For purposes of PLAN JPA, the jurisdictional area of PLAN JPA is the territory of the member entities. The Board of Directors may at any time establish branch or subordinate offices at any place or places where PLAN JPA is qualified to conduct its activities.

ARTICLE III

RECITALS AND OBJECTIVES

1. The cities listed in Appendix I (each a "Member Entity" and collectively the "Member Entities") have entered into a Joint Powers Agreement (the "Agreement") effective as of July 1, 2018. Under the Agreement, PLAN JP A has agreed to provide liability and other lines of coverage, claims management, and risk management services to each Member Entity. In return, each Member Entity has agreed to make premium payments including Administrative and Program Premiums to PLAN JP A, and to cooperate with PLAN JP A in the claims management and risk management programs.

2. The purpose of the Agreement is to benefit the citizens of each Member Entity by establishing a stable, cost-effective self-insurance, risk sharing and risk management program (PLAN JPA) for each Member Entity.

3. The objectives of PLAN JPA shall be to benefit the citizens of each Member Entity in the area of risk management, including:
a. Establish overall policy in implementing the Agreement; b. Receive and collect all of the Administrative Premium and Program Premiums and all other amounts required to be paid to PLAN JP A pursuant to the Agreement; c. Exercise such rights and remedies conferred on PLAN JP A pursuant to the Agreement as may be necessary or convenient:
i. to enforce payment of the Administrative and Program Premiums and any other amounts -3-
PLAN JPA BYLAWS July 1, 2018
40

required to be paid to PLAN JP A,

11. otherwise to protect the interests of PLAN JP A in the event of a default by any Member Entity under the Agreement; and
d. The right to establish the policy for a mandatory claims management and risk management program.

4. PLAN JPA does not have employees. Directors, Alternate Directors, Officers, and Committee Members are employees of their respective Member Entities. Each Member Entity is therefore responsible for its own employment and post-employment obligations. PLAN JP A Members do not jointly or severally have employment liabilities as participants in PLAN JP A.

5. All capitalized terms shall have the meaning given to them in the Agreement.

ARTICLE IV

NONPARTISAN ACTIVITIES
PLAN JPA is formed under the California Government Code Sections 6500, et seq., for the public purposes described above, and it shall be nonprofit and nonpartisan. PLAN JPA shall not participate or intervene (including publishing or distributing statements) in any political campaign on behalf of any candidate for public office.

ARTICLEV

DEDICATION OF ASSETS
The properties and assets of PLAN JP A are irrevocably dedicated to promoting the social welfare of the citizens of the Member Entities. No part of the net earnings, properties, or assets of PLAN JPA, on dissolution or otherwise, shall inure to the benefit of any private person or individual, or any Director of PLAN JP A. On liquidation or dissolution, all properties and assets and obligations shall be distributed and paid over to the Member Entities.

ARTICLE VI

MEMBERSHIP

1. All Prior ABAG PLAN members that duly sign the appropriate resolution and Joint Powers Agreement are included as members of PLAN JP A at its formation.

2. As respects any potential future Member Entities (Members), any governmental agency which is authorized to participate in a joint powers agreement under the Government Code and is located within the State of California may become a Member of PLAN JPA by agreeing to be bound by the Governing Documents and by complying with all of the following requirements:
a. Submit a completed application for membership 90 days before the start of the program year.

The application must be accompanied by the Board of Directors' approved fee, which shall be returned if membership is approved;
b. Submit a signed resolution acknowledging participation under the terms and conditions which then prevail;
-4-
PLAN JPA BYLAWS July 1, 2018
41

c. Execute the Agreement then in effect and agree to be bound by any subsequent amendments to the Agreement;
d. Agree to be a Member for at least three consecutive fiscal years after commencement of membership;
e. Be accepted for membership by a two-thirds vote of the Board of Directors; f. Appoint, in writing, a Director and one Alternate Director to the Board; and g. Ensure the Director and Alternate Director file with the Administrator the required Fair Political Practices Commission (FPPC) forms upon assuming office, annually, and upon termination of office.

3. The Administrator shall evaluate each applicant, including its most recent audited financial statement and associated management letters, and may schedule and coordinate a safety inspection of the facilities of the applicant. The Administrator shall report the results of the evaluation and inspections to the Executive Committee who shall provide a recommendation to the Board of Directors. A twothirds vote of the Board of Directors is required to approve the application, based upon the Executive Committee's recommendation, the application, and any evaluations, inspections, reports, or other material pertinent to the decision.

1. Powers.

ARTICLE VII

DIRECTORS
a. General Powers. Subject to the provisions of the Government Code and any limitations in the Agreement, and these Bylaws, the business and affairs of PLAN JP A shall be managed, and all delegated powers shall be exercised, by or under the direction of the Board of Directors. b. Specific powers. Without prejudice to these general powers, and subject to the same limitations, the Directors shall have the power to:
i. select and remove all Officers of PLAN JP A and legal counsel to PLAN JP A; prescribe any powers and duties for them that are consistent with law, the Joint Powers Agreement, and with these Bylaws; and fix their compensation, if any;

11. change the principal executive office or the principal business office in the State of California from one location to another;
iii. borrow money and incur indebtedness on behalf of PLAN JPA, as authorized by the Joint Powers Agreement; annually set Administrative Premium, and Program Premiums within the standards and criteria set forth in the Bylaws;
iv. annually set an Administrative Premium allocation formula; v. provide legal defense, claims management and risk management services for Member Entities; and
vi. collect Program Premiums and Administrative Premiums.

2. Numbers. The authorized number of Directors shall be equal to the number of Member Entities in PLAN JPA.
-5-
PLAN JPA BYLAWS July 1, 2018
42

3. Appointment of Directors and Alternates.
a. The governing body of each Member Entity in PLAN JPA shall each appoint one (1) Director and one (1) voting Alternate Director (Alternate) to serve at the respective Member Entity's pleasure.
b. Each appointment shall set forth the Director's or Alternate Director's name and his/her position with the Member Entity.

4. Alternate Directors. Alternate Directors may attend any meeting of the Board of Directors but may vote only if the Director for whom the Alternate Director serves is absent. All provisions of these Bylaws relating to Directors shall also apply to Alternate Directors.

5. Vacancies.
a. Events Causing Vacancy. A vacancy or vacancies in the Board of Directors shall be deemed to exist on the occurrence of the following:
i. the death, resignation, or removal of any Director;
ii. the removal, dismissal or resignation of a Director from the position he/she held with the appointing Member Entity at the time of his/her appointment; iii. the declaration by resolution of the Board of Directors of a vacancy of the office of a Director who has been declared of unsound mind by an order of court or convicted of a felony or has been found by final order or judgment of any court to have breached a duty under the Joint Powers Agreement or California Government Code Section 6500 et seq.; or iv. the increase of the authorized number of Directors. b. Resignations. Except as provided in this paragraph, any Director may resign, which resignation shall be effective on giving written notice to the President or the Secretary unless the notice specifies a later time for the resignation to become effective. No Director may resign when PLAN JP A would then be left without a duly elected Director or Alternate Director in charge of its affairs.
c. Vacancies. Pursuant to Section 3 of this Article, the Member Entity shall appoint a Director, or Alternate Director, at any time to fill any vacancy or vacancies. d. Reduction or Increase in Number of Directors. The authorized number of Directors shall be reduced by one (1) for each Member Entity who has withdrawn, has been expelled from PLAN JP A or whose Coverage has been canceled. The authorized number of Directors shall be increased by one (1) for each addition or reinstatement of a Member Entity. e. Interested Directors. The Directors shall be subject to the California Law pertaining to Local Agencies, including but not limited to Conflict of Interest Codes, the Fair Political Practices Act, the Ralph M. Brown Act ("Brown Act") and Government Code Section 1090.

6. Place of Meetings: Meetings by Telephone. Upon seventy-two (72) hours' notice, regular meetings of the Board of Directors may be held at any place permitted under the Brown Act. Special meetings of the Board shall be held at any place permitted by the Brown Act. Any meeting, regular or special, may be held by conference telephone or similar communication equipment, with notice as provided by the Brown Act and, so long as all Directors and members of the public participating in the meeting -6-
PLAN JPA BYLAWS July 1, 2018
43

can hear those remotely participating, and a majority of the quorum of the Directors are present in person at such meeting.

7. Regular Meetings. Regular meetings of the Board of Directors shall be held at such time as shall from time to time, and no less than one time per fiscal year, and be fixed by the Board of Directors.

8. Special Meetings.
a. Authority to call. Special meetings of the Board of Directors for any purpose may be called at any time by the President, Vice President, the Secretary, or any three (3) Directors.

9. Notice.
a. Manner of Giving -- Regular Meetings. Notice of the time and place of regular meetings shall be given by posting at the location of the meeting in compliance with the Brown Act and to each Director by one of the following methods:
i. by personal delivery of written notice;
ii. by first-class mail, postage paid;
iii. by facsimile; or
iv. by email.
b. Manner of Giving -- Special Meetings. Notice of the time and place of special meetings shall be in compliance with the Brown Act and given to each Director by any of the methods set forth in Subsection 9(a), or by telephone communication, either directly to the Director or to a person at the Director's office who would reasonably be expected to communicate such notice promptly to the Director.
c. Address. All such notices shall be given or sent to the Director's address or telephone number as shown on the records of PLAN JP A.
d. Notice Contents. The notice shall state the time and place for the meeting, and the purpose(s) of the meeting.
e. Ralph M. Brown Act. The noticing and conduct of all meetings shall comply with the Brown Act.

10. Quorum. A majority of the authorized number of Directors shall constitute a quorum for the transaction of business, except to adjourn as provided in Section 11 of this Article VII. Every act or decision done or made by a majority of the Directors present at a meeting duly held at which a quorum is present shall be regarded as the act of the Board of Directors

11. Adjournment. A majority of the Directors present, whether or not constituting a quorum, may adjourn . any meeting to another time and place as provided in the Brown Act.

12. Reimbursement. Directors and members of committees may receive such reimbursement of expenses as may be determined by resolution of the Board of Directors to be just and reasonable.

13. Delegation of Powers. The Board of Directors may delegate any of its powers. -7-
PLAN JPA BYLAWS July 1, 2018
44

ARTICLE VIII

COMMITTEES

1. Committees of Directors. In addition to the Claims Committee, Actuarial Committee, Risk Management Committee, and Finance Committee, the Board of Directors may, by resolution adopted by a majority of the Directors then in office, designate one (1) or more committees, each consisting of two (2) or more Directors, to serve at the pleasure of the Board. Any committee, to the extent provided in the resolution of the Board, shall have all the authority of the Board, except that no committee, regardless of Board resolution, may:
a. Take any final action on matters which, under the Law governing Joint Powers Authorities or California Law regarding Local Agencies, requires approval of a majority of all the Directors; b. Approve reimbursements of the Directors for serving on the Board or on any committee; c. Amend or repeal bylaws or adopt new bylaws;
d. Amend or repeal any resolution of the Board of Directors which by its express terms is not so amendable or repealable;
e. Appoint any other committees of the Board of Directors or the members of these committees; or f. Approve any transaction (1) to which PLAN JPA is a party and one (1) or more Directors have a material financial interest; or (2) between PLAN JPA and one (1) or more of its Directors or between PLAN JPA or any person or entity in which one (1) or more of its Directors have a material financial interest.

2. Meetings and Action of Committees. Meetings and action of committees shall be governed by, and held and taken in accordance with, the provisions of Article VII of these Bylaws, concerning meetings of Directors, with such changes in the context of these Bylaws as are necessary to substitute the committee and its members for the Board of Directors and its members, except that the time for regular meetings of committees may be determined either by resolution of the Board of "' Directors or by resolution of the Executive Committee. Special meetings of committees may also be called by the President or committee chair. Notice of special meetings of committees shall also be given to any and all Alternate Directors, who shall have the right to attend all meetings of the committee. Minutes shall be kept of each meeting of any committee and shall be filed with the corporate records. The Board of Directors may adopt rules for the government of any committee not inconsistent with the provisions of these Bylaws.

3. Executive Committee. A standing committee consisting of nine members: the President and Vice President, the Chair of each standing committee, or if the chair of a standing committee is the President or Vice President of the Board, a representative of such standing committee appointed by the committee and three at-large members of the Board elected by the Board. The Executive Committee may exercise all powers of the Board necessary to further the timely and orderly conduct of business, except it may not:
a. Set premiums;
b. Select or remove Officers or legal counsel to PLAN JP A, except in cases of emergency or where the legal counsel is unavailable or unable to perform his or her duties until the next meeting of the -8-
PLAN JPA BYLAWS July 1, 2018
45

Board of Directors. Any selection of legal counsel shall be subject to ratification by the Board of Directors at its next meeting;
c. Borrow money; or
d. Amend these Bylaws or the Joint Powers Agreement.

4. Claims Committee (Liability). A standing committee consisting of no less than three (3) Directors and any other person(s) appointed by the Board shall be charged with the duty and responsibility of:
a. Reviewing and authorizing all payment of settlements which exceed a Member Entity's deductible or upon request by PLAN JPA or Member Entity, b. Establishing a defense counsel list, and hearing the initial appeal on all staff determinations of coverage for, and settlement of, a third party claim against a Member Entity.

5. Actuarial Committee (Liability). A standing committee consisting of no less than three (3) Directors and any other person(s) appointed by the Board shall be charged with the duty and responsibility of:
a. Issuing a Request for Proposals for an actuarial consultant to annually set total Program Funding (Liability) and allocate total Program Funding (Liability) among the Member Entities (Actuarial Report). The committee may issue a separate Request for Proposals for, or in the same Request for Proposals require, an actuarial consultant to serve any other purpose required or as determined by the Board of Directors. The committee shall review all proposals submitted and select an actuarial consultant for the Board of Directors. The committee shall have oversight of the preparation of the annual Actuarial Report and shall be charged with the duty and responsibility of:
i. evaluating excess insurance, reinsurance, stop loss insurance and other third party risk transfer mechanisms for compatibility with PLAN JP A goals, cost effectiveness and security; ii. recommending yearly Program Funding based on the Actuarial Report and the PLAN JP A Funding Policy; and
iii. recommending amendments to the Memorandum of Coverage based on legal or actuarial evidence of the soundness of such amendments.

6. Risk Management Committee. A standing committee consisting of no less than three (3) Directors and any other person(s) appointed by the Board shall be charged with the duty and responsibility of:
a. Reviewing and making recommendations to the Board for risk management programs, including but not limited to, voluntary and mandatory program changes in Member Entity activities, and restrictions on coverage; and
b. Reviewing and making recommendations to the Board on applications for admissions, expulsion, withdrawal notices and proposals for cancellation, including but not limited to, the terms and conditions under which such admissions, withdrawals, expulsions and cancellations are implemented.

7. Finance Committee. A standing committee consistip.g of no less than three Directors and any other person(s) appointed by the Board shall be charged with the duty and responsibility of reviewing and making recommendations to the Board on the results of PLAN JPA's annual financial audit, reviewing and making recommendations to the Board regarding PLAN JPA's investments and -9-
PLAN JPA BYLAWS July 1, 2018
46

Investment Policy.

ARTICLE IX

OFFICERS

1. Officers. The officers of PLAN JPA shall be the President and Vice President, and a Treasurer. All officers shall be Directors.

2. Election of Officers. At the first meeting of the Board of Directors, and at each annual meeting thereafter, nominations for the officers shall be made and seconded by a Director. If more than two (2) names are received in nomination for any one office, balloting shall occur until a nominee receives a majority of the votes cast; provided that after the first ballot the nominee receiving the fewest votes shall be dropped from the balloting. Each officer shall serve a two (2) year term. Any officer except the President and Vice President may succeed himself/herself and may serve any number of consecutive or non-consecutive terms. The President and Vice President may succeed himself/herself only if his/her first term was filled as a result of a vacancy in the office.

3. Removal of Officers. An Officer may be removed, with or without cause, by a two-thirds (2/3) vote of the Board of Directors at a regular or special meeting.

4. Vacancies. Any vacancy in any office because of death, resignation, removal, disqualification, or any other cause shall be filled for the balance of the vacated term in the manner prescribed in these Bylaws for regular appointments to that office; provided, however, that such vacancies may be filled at any regular or special meeting of the Board of Directors.

5. Resignation of Officers. Any Officer may resign at any time by giving written notice to the President or Secretary. Any resignation shall take effect at the date of the receipt of that notice or at any later time specified in that notice; and, unless otherwise specified in that notice, the acceptance of the resignation shall not be necessary to make it effective. Any resignation is without prejudice to the rights, if any, of PLAN JP A under any contract to which the Officer is a party.

6. Responsibilities of Officers and Assigned Positions. a. President of the Board. The President of the Board shall preside at meetings of the Board of I Directors and exercise and perform such other powers and duties as may be from time to time assigned to him/her by the Board of Directors or prescribed by the Bylaws. b. Vice President of the Board. The Vice President of the Board shall fulfill all the duties of the President in his/her absence.
c. Secretary. The General Manager for PLAN JP A shall serve as the Secretary and shall be appointed by the President. The Secretary may assign certain responsibilities to an Assistant Secretary of his/her choosing. The Secretary shall attend to the following:
i. Book of minutes. The Secretary shall keep or cause to be kept, at the principal executive office or such other place as the Board of Directors may direct, a book of minutes of all meetings and actions of Directors and committees of Directors, with the time and place of holding, whether regular or special, and, if special, how authorized, the notice given, the -10-
PLAN JPA BYLAWS July 1, 2018
47

names of those present at such meetings and the proceedings of such meetings. ii. Notices, seal and other duties. The Secretary shall give, or cause to be given, notice of all meetings of the Board of Directors required by the Bylaws to be given. He or she shall keep the seal of PLAN JPA, if any, in safe custody. He or she shall have such other powers and perform such other duties as may be prescribed by the Board of Directors or the Bylaws. d. Treasurer. The Treasurer may assign responsibilities to an Assistant Treasurer, who shall be the Finance Manager for PLAN JP A. Together, the Treasurer and Assistant Treasurer shall attend to . the following:
t. Books of account. Keep and maintain, or cause to be kept and maintained, adequate and correct books and records of accounts of the properties and business transactions of the PLAN JPA, including accounts of its assets, liabilities, receipts, disbursements, gains, losses, capital, retained earnings, and other matters customarily included in financial statements. The books of account shall be open to inspection by any Director at all reasonable times.
ii. Deposit and disbursement of money and valuables. Deposit all money and other valuables in the name and to the credit of PLAN JPA with such depositories as may be designated by the Board of Directors; shall disburse the funds of PLAN JP A as may be ordered by the Board of Directors; ,shall render to the President and Directors, whenever they request it, an account of all of his/her transactions as Treasurer and Assistant Treasurer and of the financial condition of PLAN JP A; and shall have other powers and perform such other duties as may be prescribed by the Board of Directors or the Bylaws.

ARTICLEX

PURCHASE OF INSURANCE
Purchase of Coverage. In conformance with the procedures and criteria set forth in Article III of these Bylaws, the Board of Directors may cause PLAN JPA to purchase commercial insurance or reinsurance or terminate commercial insurance or reinsurance upon a majority vote of the membership of the Board of Directors.

ARTICLE XI

INDEMNIFICATION OF DIRECTORS, OFFICERS,

EMPLOYEES, AND OTHER AGENTS

1. Definitions. For the purpose of this Article, "agent" means any person who is or was a Director, Officer, employee, or other agent of PLAN JPA, or is or was serving at the request of PLAN JPA as a director, officer, employee, or agent of another foreign or domestic corporation, partnership, joint venture, trust, or other enterprise, or was a director, officer, employee, or agent of a foreign or domestic corporation that was a predecessor of this PLAN JP A or of another enterprise at the request of the predecessor ABAG PLAN; "proceeding" means any threatened, pending, or completed action or proceeding, whether civil, criminal, administrative, or investigative; and "expenses" includes, -11-
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without limitation, all attorneys' fees, costs, and any other expenses incurred in the defense of any claims or proceedings against an agent by reason of his position or relationship as agent and all attorneys' fees, costs, and other expenses incurred in establishing a right to indemnification under this Article.

2. Successful Defense by Agent. To the extent that an agent of PLAN JP A has been successful on the merits in the defense of any proceeding referred to in this Article, or in the defense of any claim, issue, or matter therein, the agent shall be indemnified against expenses actually and reasonably incurred by the agent in connection with the claim. If an agent either settles any such claim or sustains a judgment rendered against him or her, then the provisions of Sections 3 through 5 of this Article shall determine whether the agent is entitled to indemnification.

3. Actions Brought by Persons Other Than PLAN JP A. Subject to the required findings to be made pursuant to Section 5 of this Article, below, PLAN JPA shall indemnify any person who was or is a party, or is threatened to be made a party, to any proceeding other than an action brought by, or on behalf of, PLAN JP A or the Attorney General for any breach of duty relating to assets held by PLAN JP A, by reason of the fact that such person is or was an agent of PLAN JP A, for all expenses, judgments, fines, settlements, and other amounts actually and reasonably incurred in connection with the proceeding.

4. Action Brought by or On Behalf of PLAN JP A.
a. Claims settled out of court. If an agent settles or otherwise disposes of a threatened or pending action brought by or on behalf of PLAN JP A, with or without court approval, the agent shall receive no indemnification for either amounts paid pursuant to the terms of the settlement or other disposition or for any expenses incurred in defending against the proceeding, unless it is settled with the approval of the Attorney General.
b. Claims and suits awarded against agent. PLAN JP A shall indemnify any person who was or is a party or is threatened to be made a party to any threatened, pending, or completed action brought by or on behalf of PLAN JP A by reason of the fact that the person is or was an agent of PLAN JP A, for all expenses actually and reasonably incurred in connection with the defense of that action, provided that both of the following are met:
i. the determination of good faith conduct required by Section 5, below, must be made in the manner provided for in that section; and
ii. upon application, the court in which the action was brought must determine that, in view of all the circumstances of the case, the agent should be entitled to indemnity for the expenses incurred. If the agent is found to be so entitled, the court shall determine the appropriate amount of expenses to be reimbursed.

5. Determination of Agent's Good Faith Conduct. The indemnification granted to an agent in Sections 3 and 4 of this Article above is conditioned on the following:
a. Required standard of conduct. The agent seeking reimbursement must be found, in the manner provided below, to have acted in good faith, in a manner he/she believed to be in the best interest of PLAN JPA, and with such care, including reasonable inquiry, as an ordinarily prudent person -12-
PLAN JPA BYLAWS July 1, 2018
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in a like position would use in similar circumstances. The termination of any proceeding by judgment, order, settlement, conviction, or on a plea of noel contendere or its equivalent shall not, of itself, create a presumption that the person did not act in good faith or in a manner which he/she reasonably believed to be in the best interest of PLAN JPA or that he/she had reasonable cause to believe that his/her conduct was unlawful. In the case of a criminal proceeding, the person must have had no reasonable cause to believe that his/her conduct was unlawful. b. Manner of determination of good faith conduct. The determination that the agent did act in a manner complying with Paragraph (a) above shall be made by:
i. the Board of Directors by a majority vote of a quorum consisting of Directors who are not parties to the proceeding; or

11. the court in which the proceeding is or was pending. Such determination may be made on application brought by PLAN JP A or the agent or the attorney or other person rendering a defense to the agent, whether or not the application by the agent, attorney, or other person is opposed by PLAN JP A.

6. Limitations. No indemnification or advance shall be made under this Article, except as provided in Sections 2 or S(b)(iii), above, in any circumstance when it appears:
a. That the indemnification or advance would be inconsistent with a provision of the Articles or an agreement in effect at the time of the accrual of the alleged cause of action asserted in the proceeding in which the expenses were incurred or other amounts were paid, which prohibits or otherwise limits indemnification; or
b. that the indemnification would be inconsistent with any condition expressly imposed by a court in approving a settlement.

7. Advance of Expenses. Expenses incurred in defending any proceeding may be advanced by PLAN JP A before the final disposition of the proceeding on receipt of an undertaking by or on behalf of the agent to repay the amount of the advance unless it is determined ultimately that the agent is entitled to be indemnified as authorized in this Article.

8. Contractual Rights of Non-directors and Non-officers. Nothing contained in this Article shall affect any right to indemnification to which persons other than Directors and Officers of PLAN JP A, or any subsidiary hereof, may be entitled by contract or otherwise.

9. Insurance. The Board of Directors may adopt a resolution authorizing the purchase and maintenance of Director's and Officer's insurance, or any other insurance, on behalf of any agent of PLAN JPA against any liability deemed appropriate by the Board.

ARTICLE XII

RECORDS AND REPORTS

1. Maintenance of Corporate Records. PLAN JPA shall keep:
a. Adequate and correct books and records of account; and b. Minutes in written form of the proceedings of its Board, and committees of the Board.

All such records shall be kept at PLAN JP A's principal executive office, or if its principal executive -13-
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office is not in the State of California, at its principal business office in this state.

2. Inspection Rights.
a. Any Member Entity may inspect the accounting books and records and minutes of the proceedings of the Board and committees of the Board, at any reasonable time, for a purpose reasonably related to such person's interest.
b. Any inspection and copying under this section may be made in person or by an agent or attorney or the entity entitled thereto and the right of inspection includes the right to copy and make extracts.

3. Maintenance and Inspection of Articles and Bylaws. PLAN JPA shall keep at its principal executive office, or if its principal executive office is not in the State of California, at its principal business office located in this state, the original or copy of the Articles and Bylaws as amended to date, which shall be open to inspection by any Member Entity at all reasonable times during office hours. If the principal executive office of PLAN JP A is outside the State of California and PLAN JP A has no principal business office in this state, the Secretary shall, on the written request of any member of the governing body of a Member Entity furnish to that member a copy of the Articles and Bylaws as amended to date.

4. Inspection by Directors. Every Director shall have the absolute right at any reasonable time to inspect all books, records, and documents of every kind and the physical properties of PLAN JP A. This inspection by a Director may be made in person or by an agent or attorney, and the right of inspection includes the right to copy and make extracts of documents.

5. Annual Report.
a. Not later than one hundred twenty (120) days after the close of PLAN JP A's fiscal year, the Board shall cause an annual report/financial audit prepared by a certified public accountant to be sent to the governing body of each Member Entity. Such report shall contain the following information in reasonable detail:

1. the assets and liabilities, including the trust funds, of the PLAN JP A as of the end of the fiscal year;

11. the principal changes in assets and liabilities, including trust funds, during the fiscal year; iii. the revenue or receipts of PLAN JP A, both unrestricted and restricted to particular purposes, for the fiscal year; and
1v. the expenses or disbursements of PLAN JPA, for both general and restricted purposes, during the fiscal year.
b. The report required by this Section shall be accompanied by any report thereon of independent accountants, or, if there is no such report, by the certificate of an authorized Officer of PLAN JPA that such statements were prepared without audit from the books and records of PLAN JP A.

6. Fiscal Year. PLAN JP A's fiscal year shall be from July 1 to June 30. -14-
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ARTICLE XIII

CONSTRUCTION AND DEFINITIONS
Unless the context requires otherwise, the general provisions, rules of construction, and definitions in the California Government Code Section 65000, et seq. and the California Government Code related to Local Agencies shall govern the construction of these Bylaws. Without limiting the generality of the above, the masculine gender includes the feminine and neuter, the singular number includes the plural, the plural number includes the singular, the term "person" includes both PLAN JPA and a natural person and any capitalized term not defined in these Bylaws shall have the meaning ascribed to them in the Agreement.

ARTICLE XIV

AMENDMENTS

1. Amendment by Directors. Subject to the limitations set forth below, the Board of Directors may adopt, amend or repeal Bylaws. Such power is subject to the following limitations:
a. The Board of Directors may not amend a bylaw provision fixing the authorized number of directors or the minimum and maximum number of directors. b. If any provision of these Bylaws requires the vote of a larger proportion of the Directors than otherwise required by law, such provision may not be altered, amended or repealed except by vote of such larger number of Directors.
c. The Board of Directors may not delete or amend Bylaw provisions requiring compliance with the Agreement except as provided in the Agreement.
-15-
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TOWN OF LOS ALTOS HILLS September 28, 2023
Staff Report to the City Council
SUBJECT: RESOLUTION ADOPTING REVISED EMPLOYEE HANDBOOK

INCLUDING THE PERSONNEL RULES AND REGULATIONS AND

EMPLOYEE CLASSIFICATION AND COMPENSATION PLAN
FROM: Peter Pirnejad, City Manager
RECOMMENDATION: That the City Council should:

Adopt the attached resolution adopting the revised Employee Handbook, which includes the Town’s Personnel Rules and Regulations, as well as the Classification and Compensation Plan.

BACKGROUND:

The Employee Handbook (the “Handbook”) is the Town’s comprehensive document that outlines all the rules, procedures, and regulations for employees, and it also includes pertinent information related to salaries/wages and benefits. The Handbook was last revised April 19, 2018, and the current proposed update includes modifications to reflect changes in the law and in technology, as well as a new section to address violence in the workplace. The major changes to the Handbook are discussed in detail below.

DISCUSSION:

A “redlined” version of the proposed update to the Handbook is included as Attachment 2.

Significant changes include:
• Updating language throughout the document to modernize terminology, predominantly related to changes in technology. As an example, in Section 4.1 (Application Process), the language was changed to reflect the fact that job openings are now typically posted on webbased applications such as CalOpps. • Updating language to remove gender-specific pronouns such as “he” or “she” and replacing those terms with gender-neutral pronouns such as “they.” • The Assistant to the City Manager, Community Development Director, Assistant Community Development Director/Chief Building Official, and Finance Manager were added as management (at-will) employees (Section 5.2).
• In the Sick Leave section (6.2.6), language was added to allow managers to require verification of sick leave for leaves of three days or greater and/or when abuse of sick leave is suspected.
• Cesar Chavez Day (March 31st) and Juneteenth (June 19th) were added as recognized holidays, and the second Monday in October was changed to recognize Indigenous Peoples’ Day (Holidays – 6.4).
• Vacation leave accrual amounts were increased from a maximum of 240 hours to 280 hours or two times an employee’s annual accrual, whichever is greater. This provision was initially adjusted in 2022 (Resolution 34-22) to bring the maximum to 280 hours. The AGENDA ITEM #4.P
(Adjourned from September 21, 2023)

Staff Report to City Council Page 2
Employee Handbook Update
September 21, 2023
proposed revision increases the maximum to up to two times the employee’s annual accrual, which could be as high as 320 hours. These increases help address issues with longer-tenured employees not being able to take vacation due to a lack of organizational depth. Furthermore, the requirement that employees be with the Town six months before they are eligible to take vacation was removed. (Vacation – 6.5). • A vacation cash-out option of up to 40 hours was added with the provision that employees are only eligible for the cash-out if they have taken at least 40 hours of vacation in the prior year. The procedure for the cash out was also outlined to ensure that the cash out complies with IRS provisions related to vacation accruals and cash-outs (Vacation – 6.5.1). • A section was added to allow the City Manager to assign standby assignments as needed for services outside the regular work schedule. This section includes information on processes, procedures, and compensation for these assignments (Standby – 6.7). • The Bereavement Leave section (6.9) was modified to provide up to five days of leave (from three) and to clarify eligibility, timelines, and required documentation. • Language in the Administrative Leave section (6.12) was added to clarify eligibility and usage.
• The Family and Medical Leave section (6.13) was renamed the California Family Rights Act (CRFA) section and was significantly amended to align it with the law to which the Town is subject.
o Specific and related sections on Pregnancy Disability Leave (6.14) and Adoption Leave (6.15) were added to ensure compliance with the CRFA. • Multiple positions (Community Development Director, Assistant Community Development Director/Chief Building Official, Utility Engineering Manager, Principal Planner, Community Services Manager, Management Analyst II, Assistant to the City Manager, Senior Engineer, Senior Planner, Senior Accountant, and Senior Building Inspector) were added to the list of exempt employees, and a provision was added to allow for compensation for “emergency overtime” for these employees (7.4). • Language was added in the Out-of-Classification Pay section (7.5.1) to clarify minimum pay rates for these assignments and limit these assignments to 960 hours in a fiscal year to comply with Government Code Section 20480.
• Language was added to address allowances for working at home, the “9/80” schedule, the “4/10” schedule, and hours of operation for the counters open to the public (7.5.4). • Language was added in the Personnel Files section (12.1) to state that employee personnel files are confidential and need to be kept up to date, and to cover the employee’s right to access their personnel files, including the process to do so. • Section 14.1, the Anti-Harassment, Discrimination, and Retaliation Policy, was updated to add ethnicity, citizenship status, and military status to the list of characteristics for which harassment, discrimination, and retaliation are prohibited. • Section 14.6, the Policy Prohibiting the Use of Drugs and Alcohol, was updated to comprehensively reflect the new law (AB2188) that prohibits employers from discriminating against employees or applicants for their use of cannabis away from the workplace (will be effective January 1, 2024).
• The amount of reimbursement from an employee to the Town for personal use of a Townissued mobile device was increased from $15 to $30 per month (14.8.3).

Staff Report to City Council Page 3
Employee Handbook Update
September 21, 2023
• Subject to City Manager approval, the amount of reimbursement from the Town to an employee for business use of a personal device was increased from $15 to $30 per month (14.8.4).
• The Internet and Electronic Mail Policy was changed to the Information Technology Policy (14.9), and the entire policy was rewritten. In general, the rewritten policy reflects more up-to-date provisions regarding the technology and its use by Town employees. Some of the more specific and material changes include:
o The oversight of all information services, including oversight of the managed services provider, shifted from the Administrative Services Director to the Assistant to the City Manager (14.9.2). This change was approved by the Council at the regular Council meeting held on August 17, 2023 (Resolution 70-23). o The overview policy statement indicating IT systems and their content are property of the Town was amended (14.9.4(A)).
o Information and requirements for employees regarding the security, protection, and overall usage of Town technology assets and the Town’s retention policies were updated (14.9.4(B) – 14.9.4(X)).
 This includes information specific to the City Council (14.9.4(W)). o An Employee Security Statement was added, which is a document the Town will require employees sign acknowledging agreement and compliance with all information services-related policies and procedures.
• The section on distracted driving (14.11.2) was amended to allow for hands-free use of mobile phones in compliance with existing laws. It should be noted that a prohibition on any form of manual use of phones while driving, such as texting, remains in place. • Section 14.12 was added to address violence in the workplace. This section covers policies, processes, and procedures for addressing any acts of violence, or potential acts of violence, in the workplace.
• The Classification and Compensation Plan was revised to provide for updated salary/wage ranges and cafeteria/flexible/other benefit plan amounts. This includes the updated information on eligibility for retiree health benefits for employees hired on or after October 12, 2007.

ENVIRONMENTAL REVIEW:

Approving the revised Handbook is exempt from California Environmental Quality Act (CEQA) due to this action not being a “project” which has a potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment, as defined under CEQA Guidelines 15378.
2023 CITY COUNCIL WORK PLAN
Updating the Employee Handbook is a 2023 milestone under the “Improve Employee Attraction and Retention” initiative in the 2023 City Council Work Plan.

Staff Report to City Council Page 4
Employee Handbook Update
September 21, 2023
FISCAL IMPACT:

Certain revisions to the Employee Handbook, such as adding Standby Pay and increasing the reimbursement for business use of a personal cellphone, result in a minor increase in Town expenditures. These increases can be absorbed within existing departmental budget appropriations.

ATTACHMENTS:

1. Resolution Adopting the Revised Employee Handbook
a. Exhibit 1, Revised Employee Handbook

2. Revised Employee Handbook – Redlined

Resolution __ -23 Page 1
RESOLUTION __ -23

RESOLUTION ADOPTING REVISED EMPLOYEE HANDBOOK INCLUDING THE

PERSONNEL RULES AND REGULATIONS AND EMPLOYEE CLASSIFICATIONS

AND COMPENSATION PLAN
WHEREAS, the Employee Handbook (the “Handbook”) is an essential document for the effective and efficient operation of the Town by providing the Personnel Rules and Regulations and the Classification and Compensation Plan; and
WHEREAS, periodically updating the Handbook is necessary to ensure compliance with the law and adherence to best practices; and
WHEREAS, the last comprehensive review and update of the Handbook was in 2006 and the last revision was in 2018; and
WHEREAS, the Handbook has been reviewed and comprehensively updated.

NOW THEREFORE, BE IT RESOLVED that the City Council of the Town of Los Altos Hills hereby adopts the revised Employee Handbook including the Personnel Rules and Regulations and Employee Classifications and Compensation Plan, included as Exhibit A.

BE IT FURTHER RESOLVED that all prior versions of the Employee Handbook shall be of no further force or effect.

BE IT FURTHER RESOLVED that this Resolution shall be effective immediately upon its adoption.

The above and foregoing Resolution was passed and adopted by the City Council of the Town of Los Altos Hills at a regular meeting held on 21st of September 2023 by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

By:

Linda G. Swan, Mayor
ATTEST:
__________________________
Deborah L. Padovan, City Clerk
5485551.1
Attachment 1

TOWN OF LOS ALTOS HILLS
Employee Handbook
Personnel Rules and Regulations
– and –
Classification and Compensation Plan
Exhibit A to Resolution

TABLE OF CONTENTS
PERSONNEL RULESANDREGULATIONS............................................................................9 SECTION 1 – GENERAL PROVISIONS ..............................................................................11

1.1 COVERAGE....................................................................................................11

1.2 PERSONNEL ORDINANCE .............................................................................11

1.3 AMENDMENT OF RULES...............................................................................11

1.4 VIOLATION OF RULES ...................................................................................11

1.5 MEMBERSHIP IN EMPLOYEE REPRESENTATION ORGANIZATIONS .............11 SECTION 2 – DEFINITION OF TERMS ..............................................................................12

2.1 ANNIVERSARY DATE.....................................................................................12

2.2 APPOINTING AUTHORITY.............................................................................12

2.3 AUTHORIZED POSITION ...............................................................................12

2.4 BENEFITS ......................................................................................................12

2.5 CLASSIFICATION ...........................................................................................12

2.6 COMPENSATION PLAN.................................................................................12

2.7 COMPETITIVE SERVICE.................................................................................12

2.8 DEMOTION...................................................................................................13

2.9 DEPARTMENT HEAD.....................................................................................13

2.10 DOMESTIC PARTNER....................................................................................13

2.11 ELECTED OFFICIAL ........................................................................................13

2.12 ELIGIBLE........................................................................................................13

2.13 ELIGIBLE LIST ................................................................................................13

2.14 EMPLOYEE....................................................................................................13

2.15 EXAMINATION..............................................................................................13

2.16 EXEMPT EMPLOYEE......................................................................................14

2.17 GROSS MISCONDUCT...................................................................................14

2.18 HOURLY EMPLOYEE .....................................................................................14

2.19 IMMEDIATE FAMILY MEMBER.....................................................................14

2.20 INTRODUCTORY PERIOD..............................................................................14

2.21 NON‐EXEMPT EMPLOYEE.............................................................................14

2.22 MANAGEMENT EMPLOYEE..........................................................................15

2.23 OVERTIME WORK.........................................................................................15

2.24 PART‐TIME POSITION...................................................................................15

2.25 PERSONNEL ACTION FORM..........................................................................15

2.26 PERSONNEL OFFICER....................................................................................15

2.27 POSITION......................................................................................................15

2.28 PROMOTION ................................................................................................15

2.29 RECLASSIFICATION.......................................................................................15

2.30 REGISTERED DOMESTIC PARTNER ...............................................................15

2.31 REGULAR EMPLOYEE....................................................................................16

2.32 REINSTATEMENT..........................................................................................16

2.33 REJECTION....................................................................................................16

2.34 SALARY ADVANCEMENT ..............................................................................16

2.35 SALARY REDUCTION.....................................................................................16

2.36 SUSPENSION.................................................................................................16

2.37 TEMPORARY APPOINTMENT .......................................................................16

2.38 TEMPORARY POSITION ................................................................................16

2.39 TERMINATION..............................................................................................16

2.40 TOWN...........................................................................................................16

2.41 TRANSFER.....................................................................................................17

2.42 WORK WEEK.................................................................................................17 SECTION 3 – CLASSIFICATION........................................................................................18

3.1 PREPARATION AND MAINTENANCE OF PLAN..............................................18

3.2 ADOPTION OF PLAN .....................................................................................18

3.3 NEW POSITIONS ...........................................................................................18

3.4 RECLASSIFICATION.......................................................................................18 SECTION 4 – THE SELECTION AND APPOINTMENT PROCESS..........................................19

4.1 APPLICATION PROCESS ................................................................................19

4.2 APPLICATION FORMS ...................................................................................19

4.3 DISQUALIFICATION OF APPLICATIONS ........................................................19

4.4 NOTICE OF REJECTIONOF APPLICATION......................................................20

4.5 SELECTION PROCESS ....................................................................................20

4.6 WAIVER OF RESPONSIBILITY ........................................................................20

4.7 PROMOTIONAL EXAMINATIONS ..................................................................20

4.8 CONDUCT OF SELECTION PROCESS ..............................................................21

4.9 SCORING AND QUALIFYING GRADE .............................................................21

4.10 NOTICE OF RESULTS .....................................................................................21

4.11 ELIGIBLE LIST ................................................................................................21

4.12 ELIGIBLE LIST DURATION..............................................................................21

4.13 REMOVAL OF NAME.....................................................................................21

4.14 TYPE OF APPOINTMENTS .............................................................................22

4.15 APPOINTMENTS ...........................................................................................22

4.16 PROVISIONAL APPOINTMENTS....................................................................22 SECTION 5 – EMPLOYMENT STATUS..............................................................................23

5.1 INTRODUCTORY EMPLOYMENT...................................................................23

5.2 MANAGEMENT EMPLOYEES ........................................................................24

5.3 REGULAR EMPLOYMENT..............................................................................24

5.4 TEMPORARY EMPLOYMENT ........................................................................24

5.5 EMERGENCY EMPLOYMENT ........................................................................25 SECTION 6 – ATTENDANCE AND LEAVES OF ABSENCE ...................................................26

6.1 REQUIREMENTS OF ATTENDANCE/PUNCTUALITY ......................................26

6.2 SICK LEAVE AND VERIFICATION ...................................................................26

6.3 CATASTROPHIC LEAVE..................................................................................28

6.4 HOLIDAYS .....................................................................................................28

6.5 VACATION ....................................................................................................29

6.6 COMPENSATORY TIME OFF..........................................................................30

6.7 STANDBY ASSIGNMENT AND COMPENSATION...........................................30

6.8 JURY DUTY/COURT APPEARANCES ..............................................................31

6.9 BEREAVEMENT LEAVE..................................................................................31

6.10 MILITARY LEAVE ...........................................................................................31

6.11 INDUSTRIAL ACCIDENT LEAVE......................................................................32

6.12 ADMINISTRATIVE LEAVE ..............................................................................32

6.13 CALIFORNIA FAMILY RIGHTS ACT (CFRA ‐ SB 1383).....................................32

6.14 PREGNANCY DISABILITY LEAVE ....................................................................38

6.16 LEAVE WITHOUT PAY ...................................................................................40

6.17 SUPERVISORY DISCRETION ..........................................................................40 SECTION 7 – COMPENSATION AND PAYROLL PRACTICES...............................................41

7.1 PREPARATION OF COMPENSATION PLAN ...................................................41

7.2 ADOPTION OF PLAN .....................................................................................41

7.3 AUTHORIZATION OF OVERTIME...................................................................41

7.4 DEFINITION OF EXEMPT EMPLOYEE ............................................................42

7.5 MISCELLANEOUS PAY PROVISIONS..............................................................44

7.6 ELIGIBILITY FOR BENEFITS............................................................................46 SECTION 8 – PERFORMANCE EVALUATIONS..................................................................48

8.1 PERFORMANCE EVALUATION PROVISIONS.................................................48 SECTION 9 – TRANSFER, RESIGNATION, LAYOFF, REINSTATEMENT, REEMPLOYMENT...49

9.1 TRANSFER.....................................................................................................49

9.2 RESIGNATION...............................................................................................49

9.3 JOB ABANDONMENT....................................................................................49

9.4 LAYOFF POLICY AND PROCEDURE................................................................49

9.5 REINSTATEMENT..........................................................................................50 SECTION 10 – DISCIPLINARY ACTIONS...........................................................................51

10.1 SUSPENSION.................................................................................................51

10.2 REDUCTION IN PAY.......................................................................................51

10.3 DEMOTION...................................................................................................51

10.4 DISMISSAL ....................................................................................................51

10.5 GROUNDS FOR DISCIPLINE...........................................................................51

10.6 PROCEDURES FOR TAKING DISCIPLINARY ACTION......................................53

SECTION 11 – APPEALS HEARING AND GRIEVANCE PROCEDURES .................................55

11.1 APPEALS HEARING PROCEDURE ..................................................................55

11.2 GRIEVANCE PROCESS ...................................................................................58 SECTION 12 – RECORDS AND REPORT ...........................................................................60

12.1 PERSONNEL FILES.........................................................................................60

12.2 PERSONNEL ACTION FORMS........................................................................60

12.3 DESTRUCTION OF RECORDS.........................................................................60 SECTION 13 – MANAGEMENT RIGHTS...........................................................................61

13.1 MANAGEMENT RIGHTS PROVISION ............................................................61 SECTION 14 – MISCELLANEOUS POLICIES ......................................................................62

14.1 ANTI‐HARASSMENT, DISCRIMINATION AND RETALIATION POLICY ............62

14.2 OUTSIDE EMPLOYMENT...............................................................................68

14.3 USE OF TOWN EQUIPMENT PROHIBITED.....................................................69

14.4 EMPLOYEE DRESS CODE...............................................................................69

14.5 NEPOTISM POLICY........................................................................................70

14.6 POLICY PROHIBITING THE USE OF DRUGS AND ALCOHOL...........................71

14.7 NON–SMOKING POLICY ...............................................................................75

14.8 MOBILE TELECOMMUNICATION DEVICES POLICY.......................................75

14.9 INFORMATION TECHNOLOGY (IT) POLICY ...................................................77

14.10 FRAUD POLICY..............................................................................................92

14.11 DRIVER SELECTION POLICY...........................................................................98

14.12 VIOLENCE IN THE WORKPLACE..................................................................101 CLASSIFICATIONANDCOMPENSATION PLAN .............................................................. 104 SECTION 100 – AUTHORIZED CLASSIFICATION AND SALARIES..................................... 106 100.1 MONTHLY SALARY SCHEDULE BY PERMANENT EMPLOYEE CLASSIFICATION ........106 SECTION 200 – LEAVE.................................................................................................. 108

SECTION 300 – HEALTH AND WELFARE........................................................................ 109 300.1 CAFETERIA AND FLEXIBLE BENEFIT PLAN ...................................................109 300.2 DESIGNATED HEALTH CONTRIBUTION TOWARD HEALTH PREMIUM.......109 300.3 DENTAL PLAN .............................................................................................110 300.4 VISION PLAN...............................................................................................110 300.5 EMPLOYEE WELLNESS................................................................................110 300.6 LIFE AND ACCIDENTAL DEATH AND DISMEMBERMENT INSURANCE .........110 300.7 LONG TERM DISABILITY INSURANCE ..........................................................111 300.8 WORKERS’ COMPENSATION ......................................................................111 300.9 EMPLOYEE ASSISTANCE PROGRAM...........................................................112 300.10 UNIFORMS AND SAFETY GEAR ...................................................................112 SECTION 400 – OTHER BENEFITS ................................................................................. 114 400.1 DEFERRED COMPENSATION ......................................................................114 400.2 CREDIT UNION............................................................................................115 400.3 AUTOMOBILE ALLOWANCE........................................................................115 400.4 PARKS & RECREATION PROGRAM REGISTRATION FEES............................115 400.5 TUITION REIMBURSEMENT........................................................................115 SECTION 500 – RETIREMENT ....................................................................................... 117 500.1 PENSION – TIER I.........................................................................................117 500.2 PENSION – TIER II........................................................................................118 500.3 PENSION – TIER III ......................................................................................120 500.4 RETIREE MEDICAL REIMBURSEMENT .........................................................121

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Town of Los Altos Hills Personnel Rules & Regulations
Personnel Rules and Regulations

Town of Los Altos Hills
Personnel Rules & Regulations
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Town of Los Altos Hills
Personnel Rules & Regulations
11 SECTION 1

GENERAL PROVISIONS

1.1 COVERAGE
These rules establish the personnelsystem for the Town of Los Altos Hills. These rulesshall apply to all employees of the Town except Sections 10 and 11, which shall not apply to employees excluded from the competitive service. Furthermore, any section or provision which excludes a particular category of employment from coverage or defines the category of employment that is covered shall govern, and employees not covered by the section or provision shall not be entitled to the benefits or rights described therein.

In addition, the provisions of Section 14.1, the Town’s Anti‐Discrimination and Harassment Policy, shall also apply to all elective officers and their duly appointed deputies, members of appointive boards, commission and committees, persons engaged under contract, and volunteer personnel.

1.2 PERSONNEL ORDINANCE
These Personnel Rules and Regulations are adopted pursuant to Resolution No. xx‐23 18‐16 adopted August __, 2023 May 19, 2016 by the City Council of the Town of Los Altos Hills.

1.3 AMENDMENT OF RULES
Amendment and revisions of these rules and regulations shall become effective upon adoption by the City Council.

1.4 VIOLATION OF RULES
Violation of the provisions of these rules and regulations shall be grounds for rejection of applicants or disciplinary action of incumbent employees, including suspension, demotion or dismissal.

1.5 MEMBERSHIP IN EMPLOYEE REPRESENTATION ORGANIZATIONS The City Manager shall designate the employees by job titles who have been determined to be management and confidential employees. Management and confidential employees may not represent any employee organization which represents other employees on matters within the scope of representation.

All other employees of the Town shall have the right to form, join and participate in the activities of employee organizationsrepresenting appropriate bargaining units of their own choosing for the purposes of representation on all matters of employer‐employee relations, including, but not limited to, wages, hours, and other terms and conditions of employment.

Employees of the Town shall also have the right to refuse to join or participate in the activities of employee organizations, and shall have the right to represent themselves individually in their employment relations with the Town.

Town of Los Altos Hills
Personnel Rules & Regulations
12 SECTION 2

DEFINITION OF TERMS
The following terms, wherever used in these Rules, shall be defined as follows:

2.1 ANNIVERSARY DATE
The future date on which a regular or introductory employee is eligible, on the basis of a satisfactory job performance evaluation for a prescribed period, for a merit salary advancement within the salary range established for the class of position they occupy.

2.2 APPOINTING AUTHORITY
The City Manager shall have the authority to approve or disapprove appointment of employees in accordance with the Municipal Code and these rules and regulations.

2.3 AUTHORIZED POSITION
Any position authorized by the City Council to be filled by the City Manager.

2.4 BENEFITS
That listing of benefits provided or accrued to all persons employed by the Town in a regular position. The benefits listing is an integral part of the Compensation Plan as approved by the City Council for each fiscal year.

2.5 CLASSIFICATION
All positions sufficiently similar in duties and responsibilities, and working conditions, to permit grouping under a common classification with a common title, and to permit the application with equity of common standards of selection, transfer, promotion, and salary.

2.6 COMPENSATION PLAN
The assignment by City Council Resolution of salary ranges and/or salary rates, and related employee benefits.

2.7 COMPETITIVE SERVICE
The positions and employments which are included or which may hereafter be included in the Classification Plan, excluding management,temporary, provisional, emergency or other non‐regular positions.

Town of Los Altos Hills
Personnel Rules & Regulations
13 2.8 DEMOTION
The movement of an employee from one position to another which is allocated to a classification having a lower maximum rate of pay.

2.9 DEPARTMENT HEAD
The person appointed by the City Manager to be in charge of a department.

2.10 DOMESTIC PARTNER
See “Registered Domestic Partner.”

2.11 ELECTED OFFICIAL
City Council members.

2.12 ELIGIBLE
A person whose name is on an employment list which has been approved by the City Manager.

2.13 ELIGIBLE LIST
A list, approved by the City Manager, of names of persons who have successfully completed an examination ‐ which may include written, oral, practical and/or interview components ‐ for a given classification in the competitive service, and are ranked on the list in the order of the score received.

2.14 EMPLOYEE
Any person hired to work for the Town at a regular salary in a position the duties of which are subject to direct supervision and control by or on behalf of the City Manager.

Independent contractors and members of Town Committees and Commissions, whether or not compensated, shall not be deemed to be employees within the meaning of these Rules, with the exception that elected official will be considered as employees solely for the purpose of eligibility for health, dental and vision benefits.

2.15 EXAMINATION

2.15.1 Open examination:

Open to all persons meeting the minimum qualifications established by the City Manager or designee.

Town of Los Altos Hills
Personnel Rules & Regulations
14 2.15.2 Promotional examination:

Limited to regular and introductory employeesin the competitive service who meet the minimum qualifications established by the City Manager.

2.16 EXEMPT EMPLOYEE
An exempt employee shall be defined, for compensation purposes, as an employee who is exempt from overtime compensation pursuant to the Federal Fair Labor Standards Act.

These employees are listed in Section 7.5.

2.17 GROSS MISCONDUCT
Gross or egregious misconduct, including but not limited to conduct such as assault, battery, discrimination, harassment, fraud, theft, embezzlement, and other conduct prejudicial to the public welfare and the functioning of the employee's department or Town.

2.18 HOURLY EMPLOYEE
An employee whose compensation is based on an hourly rate.

2.19 IMMEDIATE FAMILY MEMBER
Immediate Family Member shall be defined as a child, (which for purposes of this article means a biological, adopted, or foster child, stepchild, legal ward, or a child to whom the employee standsin loco parentis. This definition of a child is applicable regardless of age or dependency status), a biological, adoptive, or foster parent, stepparent, or legal guardian of an employee or the employee’s spouse or registered domestic partner, or a person who stood in loco parentis when the employee was a minor child, a spouse, a registered domestic partner, a grandparent, a grandchild, a sibling, a step sibling, or in‐laws.

2.20 INTRODUCTORY PERIOD
A working test period during which an employee in a position in the competitive service is required to demonstrate fitnessforthe dutiesto which the employee is appointed by actual performance of the duties of the position. Employees in positions outside of the competitive service are not subject to an introductory period because those positions are at‐will.

2.21 NON‐EXEMPT EMPLOYEE
A non‐exempt employee shall be defined, for compensation purposes, as an employee who is not exempt from overtime compensation under the Federal Fair Labor Standards Act.

Town of Los Altos Hills
Personnel Rules & Regulations
15 2.22 MANAGEMENT EMPLOYEE
An employee who holds a position designated as “management.” These employees are listed in Section 5.2.

2.23 OVERTIME WORK
Work by non‐exempt employees which is authorized and in excess of forty (40) hoursin a designated work week.

2.24 PART‐TIME POSITION
A position having a work‐week of fewer hours than the work‐week established for full‐ time positions in the class. A part‐time position may be either regular or temporary.

2.25 PERSONNEL ACTION FORM
A multi‐purpose form approved by the City Manager for use in processing changesin an employee'ssalary rate, employmentstatus, or other mattersset forth in this Handbook.

2.26 PERSONNEL OFFICER
The City Manager or designated representative (designee).

2.27 POSITION
A particular job assignment which includes certain duties and responsibilities assigned to a single employee and performed on either a full‐time or part‐time basis.

2.28 PROMOTION
The movement of an employee from one position to another which is allocated to a classification with a higher maximum rate of pay.

2.29 RECLASSIFICATION
The reassignment of a position from one class to a different class in accordance with a re‐ evaluation of the minimum qualifications, duties and responsibilities of the position.

2.30 REGISTERED DOMESTIC PARTNER
Individual who is registered, along with another person, with the California Secretary of State as Domestic Partners.

Town of Los Altos Hills
Personnel Rules & Regulations
16 2.31 REGULAR EMPLOYEE
An employee in the competitive service who has successfully completed the introductory period and has been retained with regular status as hereafter provided in these Rules.

2.32 REINSTATEMENT
The re‐employment without examination of a former employee.

2.33 REJECTION
The separation of an employee from service during the introductory period.

2.34 SALARY ADVANCEMENT
A salary increase within the limits of the pay range established for a classification.

2.35 SALARY REDUCTION
A salary decrease within the limits of the pay range established for a classification.

2.36 SUSPENSION
The temporary separation from the service of an employee without pay for disciplinary purposes.

2.37 TEMPORARY APPOINTMENT
An appointment to a position of limited duration of a person who possesses the minimum qualifications established for a particular class.

2.38 TEMPORARY POSITION
A full‐time or part‐time position of limited duration.

2.39 TERMINATION
The separation of an employee from the Town service because of retirement, resignation, layoff, death, dismissal, inability to perform the essential functions of a position, or for any other lawful reason.

2.40 TOWN
The Town of Los Altos Hills.

Town of Los Altos Hills
Personnel Rules & Regulations
17 2.41 TRANSFER
A change of an employee from one position to another position in the same class or in a comparable class with the same maximum rate of pay.

2.42 WORK WEEK
The standard work week for full‐time employees of the Town shall be forty (40) hours. For purposes of payroll, the work week begins on Sunday (midnight) and ends on the next consecutive Sunday (midnight). At the discretion of the City Manager, alternative work schedules and work weeks may be offered. For those employees participating in a “9/80” work schedule, the work week will begin at the midpoint of the workday the employee is regularly scheduled to work eight hours.

Town of Los Altos Hills
Personnel Rules & Regulations
18 SECTION 3

CLASSIFICATION

3.1 PREPARATION AND MAINTENANCE OF PLAN
The City Manager shall ascertain and record the duties and responsibilities of all positions in the competitive service and, after consultation with heads of departments affected, prepare and maintain the Classification Plan. The Classification Plan shall consist of a list of every classification in use by the Town. The Classification Plan shall also contain, as an addendum, job descriptions for each position, which shall include the class title; a description of the position; examples of typical duties and responsibilities; and a description of abilities and other qualifications for the position.

3.2 ADOPTION OF PLAN
Before the classification plan or any part thereof shall become effective, it shall first be approved by the City Council. The job classification plan shall be amended or revised when required in the same manner as originally established.

3.3 NEW POSITIONS
When a new position is created by City Council action, before the same may be filled, and except as otherwise provided by Municipal Code or these Rules, no person shall be appointed or employed to fill such position until the classification plan shall have been amended to provide, therefore.

3.4 RECLASSIFICATION
Positions, the duties of which have changed materially to necessitate reclassification, shall be assigned by the City Manager to a more appropriate class, whether new or already created. Reclassification shall not be used for the purpose of avoiding restrictions concerning demotions and promotions.

Town of Los Altos Hills
Personnel Rules & Regulations
19 SECTION 4

THE SELECTION AND APPOINTMENT PROCESS

4.1 APPLICATION PROCESS
All openings shall be publicized utilizing modern recruitment methodologies such as posting to web‐based job search sites, particularly those utilized to advertise governmental positions, and by such other recruiting activities as the City Manager deems necessary or advisable to fill a particular position in a way which meets the Town’s goal of obtaining the most qualified employees.

The announcement shall include: Title and pay for the position; the nature of the work to be performed; the minimum qualifications; the essential functions of the position; the method of applying; the closing date for the application, if one is established; and such other information as seems desirable in the discretion of the City Manager.

4.2 APPLICATION FORMS
Job applications shall be made on forms provided by the City Manager or designee. All applications must be completed in full and signed by the person applying.

4.3 DISQUALIFICATION OF APPLICATIONS
The Town through the City Manager or the Administrative Services Director or their designees shall reject an application, or after examination, shall disqualify or remove the applicant's name from an eligible list, if the applicant:

1. Has made false statements, or practiced any deception or fraud on the application, declarations, or in securing eligibility for appointment;

2. Is found to lack any of the requirements, certifications, or qualifications for the position involved;

3. Is physically or psychologically unfit for the performance of the position duties, and cannot be reasonably accommodated;

4. Has been convicted of a crime (including no contest pleas), either a misdemeanor involving moral turpitude or felony that to the position duties that the applicant would perform or would be inimical the workplace;

5. Used or attempted to use inappropriate political pressure or bribery to secure an advantage in the examination or appointment;

6. Directly or indirectly obtained information regarding examinations;

Town of Los Altos Hills
Personnel Rules & Regulations
20 7. Failed to submit the employment application correctly or within the prescribed time limits;

8. Has had their privilege to operate a motor vehicle in the State of California suspended or revoked, if driving is a job requirement;

9. For any material cause which in the judgment of the City Manager or designee would render the applicant unfit for the position.

4.4 NOTICE OF REJECTIONOF APPLICATION
Defective applicationsmay be returned, at the sole discretion of the hiring manager or City Manager,  to the applicant with notice to amend and refile, provided that the time limit for receiving applications has not expired.

4.5 SELECTION PROCESS
After the time limit for receiving applications for a particular position has expired, the City Manager or designee shall determine the total number of applicants who meet the minimum qualificationsfor the positions. The chosen applicantsshall then be given further consideration for the position by being allowed to participate further in the selection process by the hiring manager and Human Resources.

4.6 WAIVER OF RESPONSIBILITY
Candidates required to take part in physical agility or demonstration tests will be required to sign a waiver of responsibility freeing the Town of all liability arising from injury incurred during the examination.

4.7 PROMOTIONAL EXAMINATIONS
When the City Manager finds that it is in the best interests of the Town, vacancies in the competitive service shall be filled by promotion from within the competitive service, after an eligibility list is established. Only employees who meet the requirements for the classification set forth in the promotional examination announcements may be admitted to promotional examinations. If, in the opinion of the City Manager, it isin the best interest of the Town to use an open, competitive examination instead of a closed, promotional examination, then they shall call for applications for the vacancy and arrange for an open, competitive examination and for the preparation and certification of an eligible list. If, in their judgment, it is in the Town's best interest, the City Manager may arrange an examination which is both open and promotional.

When an employee is promoted, their salary shall be that approved by the City Manager, except that the salary shall be at least equal to or higher in salary than the employee's present base salary.

Town of Los Altos Hills
Personnel Rules & Regulations
21 4.8 CONDUCTOF SELECTION PROCESS
The City Manager or designee may prepare and administer or contract with any competent agency or individual for the administration of any part of the selection process, as they deem most appropriate.

4.9 SCORING AND QUALIFYING GRADE
Failure in one part of the examination, or to meet established standards described in the job announcement, will be grounds for declaring such applicant as failing in the entire examination or as disqualified for subsequent parts of an examination. A candidate's final score in a given examination shall be the average of the scores on each competitive part of the examination on which the applicant qualified, weighted as shown in the examination announcement.

4.10 NOTICE OF RESULTS
Each applicant shall be notified  of the examination results, including the final earned score and ranking on the eligible list, if applicable.

4.11 ELIGIBLE LIST
After completion of any open or promotional examination, the City Manager or designee shall prepare an eligible list consisting of the names of candidates who passed the entire selection process, arranged in order of final standing, from the highest to the lowest.

Notwithstanding any other provision ofthese rules, ifthere are lessthan three (3) names on an eligible list, the City Manager may declare such list void and fill the position(s) by any method permitted by these Personnel Rules, including, but not limited to, undertaking new recruiting and selection procedures. Eligible lists shall become effective upon the approval by the City Manager.

4.12 ELIGIBLE LIST DURATION
Eligible listsshall remain in effect for twelve (12) months, unlessthe City Manager abolishes the list, or the list is exhausted or extended by the City Manager. The City Manager may abolish or extend the list at any time prior to the expiration of the list if they determine that it is in the best interest of the Town to do so.

4.13 REMOVAL OF NAME
The name of any person appearing on an eligible list shall be removed by the City Manager if the eligible applicant so requests in writing, or fails to respond within ten (10) days to a notification of an opening from the City Manager.

Town of Los Altos Hills
Personnel Rules & Regulations
22 4.14 TYPE OF APPOINTMENTS
Vacancies may be filled by reemployment, promotion, transfer, demotion, appointment of hourly employees, or from the appropriate eligible list, if available. No specific list shall have priority over other lists. The City Manager shall decide in what manner the vacancy is to be filled.

4.15 APPOINTMENTS
The City Manager shall make final appointments. When a position is to be filled from a promotional or open eligible list, the City Manager, after consultation with the department head, shall choose from the specified list any of the candidates on the eligible list. If no person among the candidates indicates a willingness to accept the appointment, or if the CityManagerdeterminesthatitisin the bestinterest ofthe Town to do so, the City Manager may request a new examination to establish a new eligible list, or may fill the position by any other method authorized by these Personnel Rules.

The person accepting appointmentshall report to the City Manager on the date designated by the City Manager; otherwise, the applicant shall be deemed to have declined the appointment.

4.16 PROVISIONAL APPOINTMENTS
In the absence of appropriate eligibility lists, a provisional appointment may be made by the City Manager, of a person meeting the minimum training and experience qualifications for the position. An employment list shall be established within six (6) months for any regular position filled by provisional appointment. The City Manager may extend the period for any provisional appointment for not more than ninety (90) days by any one action.

No special credit shall be allowed in meeting any qualifications or in the giving of any test or the establishment of any open, competitive promotional lists, for service rendered under a provisional appointment.

Town of Los Altos Hills
Personnel Rules & Regulations
23 SECTION 5

EMPLOYMENT STATUS

5.1 INTRODUCTORY EMPLOYMENT
All original and promotional appointments to positions in the competitive service shall be tentative and subject to an introductory period of one (1) year of actual and continuous service from the date of appointment. Positions excluded from the competitive service include all management, temporary, provisional, emergency, or other non‐regular positions. The City Manager shall have the discretion to extend the introductory period for any appointment, and an employee shall not pass the introductory period unless the City Manager affirms in writing that the employee has passed the introductory period and attained regular status. Time spent on a protected leave of absence of ten (10) business days or longer shall not count towards the introductory period.

5.1.1 Introductory Period Objective
The introductory period shall be regarded as a part of the testing process and shall be used for closely observing the employee's work to determine the employee's fitness for the position.

5.1.2 Rejection During Introductory Period
An employee may be rejected at any time during the introductory period without cause and without the right of appeal or grievance.

5.1.3 Introduction Period After Promotion
On accepting a promotion, an employee serves a new introductory period of six (6) months of actual and continuous service. An employee does not acquire regular status in the promotional position until the successful completion of this introductory period. If the employee fails to satisfactorily complete the introductory period in the promotional position, the employee shall be entitled toreturn tothe position held priorto promotion atthe range and salary held prior to promotion if such position is available and has not been eliminated pursuant to a layoff, reorganization or for other budgetary purposes. The employee is not entitled to notice, a hearing, a right of appeal, or grievance if rejected during introduction.

Performance reports shall be prepared for every employee during their introductory period pursuant to these Rules. The performance report for the final three months of introduction for any employee shall be prepared and forwarded by the department head to the City Manager at least fifteen (15) days prior to the last day of the introductory period. This performance reportshall be

Town of Los Altos Hills
Personnel Rules & Regulations
24 accompanied by the Personnel Action Form on which employee shall either be recommended for rejection prior to the end of the introductory period or recommended for approval as a regular employee commencing at the end of the introductory period.

5.2 MANAGEMENT EMPLOYEES
Employees in the positions listed below are considered management employees. The City Manager position is held at the will of the City Council; all other management positions are held at the will of the City Manager. Benefits and rights afforded to management employees differ from non‐management employees as described in these Personnel Rules and Regulations and any applicable provisions of a compensation plan.  City Manager
 City Clerk
 Assistant to the City Manager
 Administrative Services Director
 Finance Manager
 Community Development Director
 Assistant Community Development Director/Chief Building Official  Public Works Director/City Engineer
The City Council may designate additional employeesto qualify as management employees without the need to amend these personnel rules.

5.3 REGULAR EMPLOYMENT
Regular Full‐Time Employment: Employees who successfully complete their introductory period and who regularly work a minimum of forty (40) hours per week shall become full‐ time regular employees and shall be entitled to all the benefits provided herein.

Regular Part‐Time Employment: Employees who work in part‐time positions of at least twenty (20) hours per week and who successfully complete their introductory period shall become part‐time regular employees and shall be entitled to regular status equal to the hours worked when compared to forty (40) hours per week. Benefits provided for part‐ time employment shall be pro‐rated based upon the comparison of hours worked to forty (40) hours per week.

5.4 TEMPORARY EMPLOYMENT
Without following the rules regarding recruitment and selection, the Town may hire employees on a temporary basis, usually for up to 125 days or 1000 hoursin a fiscal year for completion of a specific task or project or to address a need of limited duration. Temporary employees may be removed at any time without cause, notice or any right of appeal.

Temporary employees are eligible for California Paid Sick Leave (AB 1522) but are not eligible for other benefits.

Town of Los Altos Hills
Personnel Rules & Regulations
25 5.5 EMERGENCY EMPLOYMENT
To meet the immediate requirements of an emergency condition, such as a flood, earthquake, or other public calamity which threatens public life or property, the City Manager may employ such persons as may be needed for the duration of the emergency without regard to these rules and regulations affecting appointments.

Town of Los Altos Hills
Personnel Rules & Regulations
26 SECTION 6

ATTENDANCE AND LEAVES OF ABSENCE

6.1 REQUIREMENTS OF ATTENDANCE/PUNCTUALITY
Employees shall be in attendance at their work during the hours assigned by the department head. Each department head shall submit attendance records to Payroll on standardized forms and at times specified by the City Manager or designee.

Individual work efforts are very important for the Town’s overall success.   The Town depends on employees to report to work regularly and at the agreed time.   Poor attendance and tardiness disrupt productivity and make it difficult to function effectively and properly.

Any unauthorized absence or tardiness may be cause for disciplinary action, up to and including discharge from employment. Authorized absence is defined as permission to be absent from duty for a specified purpose, with the right to return before or upon the expiration of the leave period.

The Town provides several types of leave accruals as a benefit for regular employees, as described in the benefits listing approved by Council as part of the Compensation Plan.

Employees are responsible for the management of their leave balances and the appropriate use thereof. Nothing in this policy should be construed as infringing on an employee’s rights under federal or state disability laws, or the laws governing protected leaves of absence (i.e. CFRA, Pregnancy Disability Leave, Workers’ Compensation leave, etc.).

Except in extraordinary circumstances, an employee who is unable to report for work at the beginning of their workday orshift as established by the department head,shall notify their immediate supervisor or the City Manager before commencement of such shift. If the employee becomes ill while at work or must leave the office for some other reason before the end of the workday, the employee shall inform their immediate supervisor or the City Manager of the situation prior to leaving work, or as soon thereafter as practicable in emergency circumstances.

6.2 SICK LEAVE AND VERIFICATION
As of July 1, 2015 California Law requires employers to provide employees, who work in California for 30 or more days within a year from the commencement of employment, with 3 days or 24 hours paid sick leave. An employee is not eligible to begin using any accrued sick leave until after 90 days of employment with the Town.

Sick leave is defined as absence because of illness, injury, exposure to contagious disease, caring for a sick member of the employee's immediate family, or doctor and dental appointments when it is not feasible to schedule them on the employee's own time.

Town of Los Altos Hills
Personnel Rules & Regulations
27 The accrual and use of sick leave shall be governed by the following provisions:

1. Permanent employees shall accrue sick leave at the rate of eight (8) hours for each full month of service, or at the designated prorated rate.

2. Temporary employees shall be allotted 3 days or 24 hours at the beginning of each 12‐month period. An employee is only eligible to use the leave after 90 days of employment with the Town. Paid sick leave shall be taken in increments of no less than two (2) hours.

3. Sick leave shall not be considered as a privilege which an employee may use at their discretion, but shall be allowed only in case of necessity and actual sickness or disability of the employee or a member of the employee’s immediate family.

4. Consistent with SB 579, an employee shall be allowed to use up to one‐half of their annual sick leave accrual for the following reasons:
a. the diagnosis, care or treatment of an existing health condition of, or preventative care for, an employee;
b. the diagnosis, care or treatment of an existing health condition of, or preventative care for, an immediate family member; or
c. an employee who is the victim of domestic violence, sexual assault, or stalking. Any such use shall not be a basis for any punitive action by the Town.

5. In order to be entitled to sick leave, an employee who is unable to report for work shall so notify their supervisor prior to commencement of their shift. In addition, if the employee is absent on sick leave for more than one (1) day, the employee shall keep the supervisor informed as to the date they expect to return to work.

6. A department head, manager, or supervisor may at their discretion require employees to furnish reasonable acceptable evidence, including a doctor’s certificate, to substantiate a request for sick leave if the sick leave exceed three (3) consecutive workdays.   A department head, manager, or supervisor may also require a doctor’s certificate or other form of verification where leave abuse is suspected.  If it appears that an employee is abusing sick leave or is using sick leave excessively, the employee will be counseled that the continued use of sick leave may result in a requirement to furnish a medical certificate for each such subsequent absence forsick leave regardless of duration.  Continued abuse of leave or excessive use of sick leave may constitute grounds for discipline up to and including dismissal. The policy outlined above pertainsto sick leave verification. For information on medical certification requirements under the CFRA, please consult with Section 6.13 of this handbook.

Town of Los Altos Hills
Personnel Rules & Regulations
28 6.3 CATASTROPHIC LEAVE
On an annual basis, employees may “donate” up to sixteen (16) hours of their accrued sick leave to a catastrophic leave bank. Catastrophic leave may be granted to an employee at the discretion of the City Manager when the employee is absent because of a serious illness, injury, short‐term disability, exposure to contagious disease or caring for a sick member of the employee’s immediate family. Such leave will be granted only when the employee has exhausted all accrued paid leave and is capped at 80 hours.

6.4 HOLIDAYS
Each regular and management employee of the Town shall be entitled to the following holidays with pay and no others:
 New Year's Day January 1
 Martin Luther King Day Third Monday in January
 Presidents' Day Third Monday in February
 Cesar Chavez Day March 31
 Memorial Day Last Monday in May
 Juneteenth June 19
 Independence Day July 4
 Labor Day First Monday in September
 Indigenous Peoples’ Day Second Monday in October
 Veterans' Day November 11
 Thanksgiving Day Fourth Thursday in November
 Day after Thanksgiving Fourth Friday in November
 Christmas Eve Day December 24
 Christmas Day December 25
If any holiday falls upon a Sunday, the Monday following shall be  observed as the holiday.

If the holiday falls upon a Saturday, the Friday preceding shall be observed asthe holiday. If a non‐exempt employee is required to work on the actual  holiday, the employee will be compensated double time.  The observed holiday is not considered working on the holiday.

No employee shall be entitled to compensation for any holiday herein specified unlesssuch an employee shall have been employed by the Town on the day preceding and the day following such holiday. For the purposes of this paragraph, an employee who is absent on any authorized paid leave shall be deemed to be employed at such time.

Temporary, provisional, emergency or other non‐regular positions are not entitled to compensation for Town holidays.

Town of Los Altos Hills
Personnel Rules & Regulations
29 6.5 VACATION
All management employees and full‐time regular employees shall be entitled to vacation leave with pay. Regular Part‐Time employees are entitled to a vacation leave with pay prorated according to hours worked. Vacation time shall be credited on the first payroll date of employment and every pay period thereafter for each regular employee.

Vacation time shall be earned at the rate of eight (8) hours for each month of service, or ninety‐six (96) hours per year. Commencing with the fifth year anniversary, including introductory period, an employee shall earn ten (10) hours for each month of service.

Commencing with the eleventh year anniversary, including introductory period, an employee shall earn thirteen and one third (13.33) hours for each month of service. In summary vacation accrues asfollows and each year thereafter shall be credited as follows:

Years of Service Vacation Hours Earned Per
Month
1 through 5 08.00
6 through 10 10.00
11 + 13.33
At time of hiring, the City Manager may provide a new employee credit for years of service in another public agency for purposes of determining eligibility for vacation accrual.

All vacation leave must be pre‐approved by the department head, manager, or supervisor.

Approval of leave does not indicate that the employee has available leave hours. The employee is responsible for ensuring that the leave hours are available prior to requesting approval from the department head. Use of vacation leave in less than four‐hour increments shall be discouraged.

Use of vacation leave earned in a given year may be deferred to the following year.

However, at no time may an employee have a total balance of vacation hours in excess of 280 hours or two times their annual accrual amount, whichever is greater. When the employee reaches the maximum accrual, they shall cease earning vacation until the vacation leave balance falls below 280 hours or two times their annual accrual amount, whichever amount is applicable. If they use up sufficient benefits to fall below the benefit cap, they will resume accruing benefits for future service beginning with the following month.

Where a paid holiday falls during the period of an employee's vacation leave, that day shall not be charged against the employee's vacation accrual.

6.5.1  Vacation Cashout
Once each calendar year an employee may cash out up to forty (40) hours of vacation accrual, provided that the employee has taken 40 hours of vacation in the previous 12 months.

Town of Los Altos Hills
Personnel Rules & Regulations
30 1. To be eligible for cash out vacation, employees must pre‐elect the number of vacation hours they will cash out during the following calendar year up to a maximum of 40 hours, prior to the start of that calendar year.  The election will apply only to vacation hours accrued in the next tax year and eligible for cash out.

2. The election to cash out vacation hours in each designated year will be irrevocable.  This meansthat employees who elect to cash out vacation hours must cash out the number of accrued hours pre‐designated on the election form provided by the Town.

3. Employees who do not pre‐designate or decline a cash out amount by the annual deadline established by the Town will be deemed to have waived the right to cash out any leave in the following tax year and will not be eligible to cash out vacation hours in the next tax year.

4. Employees who pre‐designate cash out amounts may request a cash out at any time in the designated tax year by submitting a cash out form to payroll.

Payroll will complete the cash out upon request, provided the requested cash out amount has accrued and is consistent with the amount the employee pre‐ designated.  If the full amount of hours designated for cash out is not available at the time of cash out request, the maximum available will be paid.

5. For employees who have not requested payment of the elected cash out amount by November 1 of each year.  Payroll will automatically cash out the pre‐designated amount in a paycheck issued on or after the payroll date including November 1.

6.6 COMPENSATORY TIME OFF
Compensatory time off can be earned by non‐exempt employees pursuant to Section 7.5, at a rate of one and a half (1.5) hours of paid time off, to be taken at a later date, for each hour of overtime worked. Compensatory time off may be accrued to a limit of  Forty (40) hours and may be used in lieu of other types of leave, following the provisions and requirements of vacation leave. On the last full pay period each December all unused compensatory time shall be cashed out at the employee’s rate of pay.

6.7 STANDBY ASSIGNMENT AND COMPENSATION
The City Manager may schedule standby assignments for employees on an as‐needed basis.  Standby assignments shall be made to provide services outside the regular work schedule.  Standby shall be assigned for the months of November through March, with additionalstandby periodsto be determined on an as‐needed basis at the discretion of the City Manager.

Using a list of non‐exempt maintenance employees, standby assignments shall be offered by rotation based on seniority.  Each rotation will last for seven (7) days.  Assignments of standby duty is recommended for one full week (Sunday to Saturday) at the discretion of the City Manager and the department director.  Seniority for the purpose of this section is defined as total continuous service to the Town. The Town will first ask for standby

Town of Los Altos Hills
Personnel Rules & Regulations
31 assignment volunteers.  In the absence of volunteers, the Town shall assign standby to employees.  To the best of its ability, the Town shall schedule standby assignments as far in advance as possible.

In an effort to encourage standby assignment volunteers, the Town shall provide additional compensation for standby assignments at a rate of fifty dollars ($50) per day of standby assignment. Standby assignment compensation is provided in addition to the employees overtime pay.   Town shall provide a cell phone to employees or those employees electing to receive a stipend may use their own cell phone while on standby assignment.

6.8 JURY DUTY/COURT APPEARANCES
Every employee who is called or required to serve as a juror shall be entitled to be absent during the period ofsuch service. Undersuch circumstances, the employee shallsurrender any payment received for jury service except for mileage compensation. The Town will pay the employee their regular salary for this duty.

An employee who is subpoenaed to appear in court in an official capacity shall be allowed to do so without loss of compensation. An employee subpoenaed to appear in court in a matter unrelated to their official capacity as an employee shall be permitted to use accrued vacation or compensatory leave for this purpose, except where the underlying matter is brought by the employee against the Town.

6.9 BEREAVEMENT LEAVE
Employeesshall be allowed paid time off in the event of a death in the immediate family. Up to five   (5) days of such leave shall be allowed for the death of each member of the immediate family. The employee may request, and the City Manager may approve in their absolute discretion, bereavement leave in the event of the death of other individuals unpaid bereavement leave for greater than five (5) daysis unpaid leave.  Bereavementleave must be completed within three (3) months of death of the family member; however, leave days don’t need to be consecutive.   The Town may require documentation (includes death certificate, published obituary or written verification of death, burial, or memorial services from a mortuary, funeral home, burial society, crematorium, religious institution or governmental agency) of death of family member within 30 days of the first day of bereavement leave.

6.10 MILITARY LEAVE
Military leave shall be granted by the City Manager in accordance with applicable provisions of State and Federal law. An employee requestingmilitary leave shall provide the City Manager with notice as soon as possible and shall provide the City Manager with a copy of any military orders or other information necessary to make a determination regarding the employee’s request for leave. An employee requesting military leave shall give the City Manager an opportunity, within the limits of State and Federal law, to determine when such military leave shall be taken, and the City Manager may modify the

Town of Los Altos Hills
Personnel Rules & Regulations
32 employee's work schedule to accommodate approved military leave.

6.11 INDUSTRIAL ACCIDENT LEAVE
Industrial accident leave means the absence from duty of an employee because of work‐ incurred illness or bodily injury when such absence has been accepted for coverage under the provisions of the Workers’ Compensation laws of the State of California. Employees on workers’ compensation leave may use accrued sick leave time to supplement any monetary difference between their normal rate of pay and workers’ compensation temporary disability benefits. Upon exhaustion of accrued sick leave time, employees may elect to supplement with accrued vacation time. However, such supplementation shall not entitle employees to continue employment if otherwise qualified for separation from Town service due to disability retirement or for any other lawful reason.

6.12 ADMINISTRATIVE LEAVE
The City Manager may grant leave to exempt personnel who are not eligible for overtime pay up to a maximum accrual of ninety‐six (96) hours per calendar year. Administrative leave is fully accrued for the year upon the first pay period in January of every calendar year, or on a pro‐rated basis for any employee that starts their employment after this pay period.. All administrative leave shall be utilized for time off before any vacation leave is used. Such administrative leave shall not be deducted from vacation credits. Use of administrative leave accrued in a given year may be deferred to the following year.

However, at no time may an employee have a total balance of administrative leave hours in excess of ninety‐six (96) hours. Employees shall only be entitled to cash‐out accrued unused administrative leave upon separation from employment. Use of administrative leave is allowed at the discretion of the City Manager.

6.13 CALIFORNIA FAMILY RIGHTS ACT (CFRA ‐ SB 1383)

6.13.1. Statement of Policy
The Town of Los Altos Hills will grant CFRA leave to eligible employees for up to twelve (12) work weeks per twelve (12)–month period for any one or more of the following reasons:

A. The employee’s own serious health condition that makes the employee unable to perform the functions of their position, except for leave taken for disability on account of pregnancy, childbirth, or related medical conditions (instead, this is covered under Pregnancy Disability Leave, which does not run concurrently with leave under the CFRA).

B. To care for an immediate family member (employee’s spouse, parent, registered domestic partner, child or registered domestic partner’s child of any age, sibling, grandparent or grandchild), or designated person with a serious health condition.

Town of Los Altos Hills
Personnel Rules & Regulations
33 C. To care for the employee’s newborn child, within one (1) year of the birth (also known as child/baby bonding), or for the placement of a child for adoption or foster care, within one (1) year of placement.

D. A qualifying military exigency related to the covered active duty or call to covered active duty of an employee’s spouse, domestic partner, child (of any age) or parent in the United States armed forces, asspecified in Section 3302.2 of the Unemployment Insurance Code.

6.13.2. Definitions
A. "Child" ‐ means a person either under 18 years of age, or an adult dependent child. An employee's "child" is a biological, adopted, foster, step–child or legal ward or to whom the employee stands in loco parentis. Either day‐to‐ day care or financial support may establish an in loco parentis relationship where the employee intends to assume responsibilities of a parent with regard to a child.

B. "Twelve (12)‐Month Period"  ‐ means a rolling twelve (12)‐month period measured backward from the date leave is taken and continuous with each additional leave day taken.

C. "Serious Health Condition"  ‐  means an illness, injury, impairment, or a physical or mental condition that involves:

1. Inpatient care; or

2. Any period of incapacity requiring absence from work for more than three calendar days AND that involves continuing treatment by a health care provider; or

3. Continuing treatment by a health care provider for a chronic or long‐ term health condition that is incurable or which, if left untreated, would likely result in a period of incapacity of more than three calendar days and two visits to a health care provider, or one visit to a health care provider and a continuing regimen of care; an incapacity caused by a chronic condition or permanent or long‐term conditions; or absences due to multiple treatments. Other situations may also meet the definition of “continuing treatment.”; or

4. Prenatal care by a health care provider.

D. "Spouse or registered domestic partner"  ‐  If both spouses or registered domestic partners (as defined or recognized under state law) work for the Town, their total leave in any twelve (12)‐ month period  may be limited to

Town of Los Altos Hills
Personnel Rules & Regulations
34 twelve (12) weeks each if the leave istaken for eitherthe birth or placement for adoption or foster care of a child or to care for a sick parent.

E. "Continuing Treatment" ‐ means:

1. Two or more visits to a health care provider; or

2. Two or more treatments by a health care practitioner on referral from, or under the direction of, a health care provider; or

3. A single visit to a health care provider that results in a regimen of continuing treatment; or

4. In the case of a serious, long‐term or chronic condition or disability that cannot be cured, being under the continuing supervision of, but not necessarily being actively treated by, a health care provider.

6.13.3. Coverage and Eligibility
To be eligible for CFRA an employee must:

A. Have worked forthe Town of Los Altos Hillsfor at least twelve (12) months prior to the commencement of leave; and
B. Have actually worked at least 1,250 hours for the Town during the twelve (12) month period immediately preceding the commencement of the leave.

6.13.4. Intermittent or Reduced Leave
A. An employee may take leave intermittently (a few days or a few hours at a time) or on a reduced leave schedule to care for an immediate family member with a serious health condition or because of a serious health condition of the employee when "medically necessary." Employees who require intermittent or reduced‐schedule leave must try to schedule their leave so that it will not unduly disrupt the Town’s operations. Intermittent leave is permitted in intervals of at least one hour or at the same intervals as provided in the Town’s sick leave, vacation or paid‐time‐off policy, whichever increments are smaller.

1. "Medically necessary" means there must be a medical need for the leave and that the leave can best be accomplished through an intermittent or reduced leave schedule.

Town of Los Altos Hills
Personnel Rules & Regulations
35 2. The employee may be required to transfer temporarily to a position with equivalent pay and benefits that better accommodates recurring periods of leave when the leave is planned based on scheduled medical treatment.

B. An employee may take leave intermittently or on a reduced leave schedule for birth or placement for adoption or foster care of a child only with the City Manager's consent.

For regular part–time employees who qualify, the family and medical leave entitlement is calculated on a prorated basis. A weekly average of the hours worked over the twelve (12) weeks prior to the beginning of the leave will be used for calculating the employee's normal work week.

6.13.5. Substitution of Paid Vacation Time
A. If an employee requests leave for any reason permitted under this policy, they must exhaust all accrued leaves(exceptsick leave) in connection with the leave. The exhaustion of accrued leave will run concurrently with the leave under this policy.

B. If an employee requests leave for their own serious health condition, in addition to exhausting accrued leave, the employee must also exhaust accrued sick leave.

6.13.6. Notice Requirement
A. Although the Town recognizes that emergencies arise which may require employees to request immediate leave, employees are required to give as much notice as possible of their need for leave. If leave is foreseeable, at least thirty (30) days notice is required and employees should consult with their supervisor regarding scheduling of planned medical treatment or supervision in order to minimize disruption to the Town’s operations.

If the employee cannot provide 30 days’ notice, the employee must inform the Town as soon as practical. In addition, if an employee knows thatthey will need leave in the future, but does not know the exact date(s) (e.g. for the birth of a child or to take care of a newborn), the employee shall inform their supervisor as soon as possible that such leave will be needed.

B. If the Town determines that an employee's notice is inadequate or the employee knew about the leave in advance of the request, the Town may delay the granting of the leave until it can, in its discretion; adequately cover the position with a substitute.

Town of Los Altos Hills
Personnel Rules & Regulations
36 6.13.7. Medical Certification
A. For leavestaken because of the employee's or a covered family member's or a designated person’s serious health condition, the employee must submit a completed "Physician or Practitioner Certification" form or equivalent notice and return the certification to the City Manager or designee. If leave is needed to care for a sick family member or designated person, the employee must submit a “Physician or Practitioner Certification” stating: date of commencement of the serious health condition; probable duration of the condition; estimated amount of time for care by the health care provider; and confirmation that the serious health condition warrants your participation. If leave is needed for the employee’s serious health condition, the employee must submit a “Physician or Practitioner Certification” stating: date of commencement of the serious health condition; probable duration of the condition; and the employee’s inability to work at all or to perform any one or more of the essential functions of the position because of the serious health condition. Medical certification must be provided by the employee within fifteen (15) days after leave is requested, or as soon as is reasonably possible.

B. The Town may require a second or third opinion (at Town's expense), periodic reports on the employee's status and intent to return to work, and a fitness‐for‐duty report to return to work.

C. All documentation related to the employee's, family member's, or registered domestic partner’s medical condition will be held in confidence and maintained in the employee's medical records file separate from the regular personnel file.

6.13.8. Effect on Benefits
A. Leave under this policy is unpaid. While on leave, the employee’s health insurance premiums will be paid by the Town to the extent that they are paid while the employee is on the job. However, employees will not continue to receive other benefits which are not provided pursuant to the Town's group health plans. Employees will be eligible to participate in employment benefit plans, however, to the same extent and under the same conditions as would apply to employees on unpaid leave granted by the employer for purposes other than CFRA Leave.

B. If applicable, employees may make the appropriate contributions for continued coverage under their health insurance plans either through payroll deduction or by direct payment to the Finance Department. The employee will be advised in writing at the beginning of the leave period

Town of Los Altos Hills
Personnel Rules & Regulations
37 as to the amount and method. Employee contribution amounts are subject to any change in rates that occurs while the employee is on leave.

C. If an employee's contribution is more than thirty (30) days late, the Town may terminate the employee's insurance coverage.

D. Employees may re‐enroll in those insurance plans that they have chosen to discontinue while on unpaid leave on the first of the month following their return.

E. If the employee fails to return from CFRA leave for reasons other than (1) the continuation of a serious health condition of the employee or a covered family member or (2) circumstances beyond the employee's control (certification required within thirty (30) days of failure to return for either reason), the Town may seek reimbursement from the employee for the portion of the premiums paid by the Town on behalf of that employee (also known as the employer contribution) during the period of leave. Likewise, if the employee fails to return from CFRA leave, the Town’s obligation to maintain the employee’s group health plan benefits ends (subject to any applicable COBRA rights).

F. An employee is not entitled to seniority or benefit accrual during periods of unpaid leave but will not lose accruals earned prior to leave. Time counted towards an employee’s anniversary date shall also be deferred for the time of the leave without pay.

6.13.9. Job Protection
A. If the employee returnsto work before or at the end of twelve (12) weeks following a family/medical leave, they will be reinstated to their former position or an equivalent position with equivalent pay, benefits, status and authority.

B. The employee's restoration rights are the same as they would have been had the employee not been on leave. Thus, if the employee's position would have been eliminated or the employee would have been terminated but for the leave, the employee would not have the right to be reinstated upon return from leave.

C. If the employee fails to return at the end of a family/medical leave, the employee will be reinstated to their same or similar position only if the position is available and the Town deems that it is appropriate to do so, in accordance with applicable laws and these Personnel Rules.

Town of Los Altos Hills
Personnel Rules & Regulations
38 6.13.10. Family/Medical Leave Forms to Be Submitted By The Employee Employees must fill out the following applicable forms in connection with leave under this policy.

1. Request for Family/Medical Leave Form

2. Certification of Physician or Practitioner

3. Authorization for Payroll Deduction for Benefit Plan Coverage Continuation During a Family/Medical Leave of Absence

4. Fitness for Duty to Return from Leave

5. Certification of Qualifying Exigency for Military Family Leave

6.14 PREGNANCY DISABILITY LEAVE
An employee unable to work due to pregnancy is eligible for up to four(4) months of unpaid pregnancy disability leave (PDL) as defined by law, so long as the employee's attending physician certifiesthat they are physically unable to work due to pregnancy or a pregnancy‐ related condition. During said leave of absence without pay, the employee has the option of using accumulated sick leave, compensatory time and/or vacation credits. The maximum combined leave for California employees for both Pregnancy Disability and Family Care Leave for the birth of a child is four (4) months plus twelve (12) work weeks, assuming that the employee is disabled by pregnancy for four (4) months and requests and is eligible for twelve (12) weeks of CFRA Leave.  Insurance premiums will be paid by the Town to the extent that they were paid when the employee was at work only while they are using accrued leave time. They will be responsible for paying  for their own insurance premiums while they are on unpaid leave. Information regarding such payments will be available in the Finance Department.

After PDL and CFRA leave, if applicable, expires and if the employee is on unpaid status or the employee has less than 20 hours per week on their timesheet, the employee may elect to continue and enroll in COBRA benefits at employee’s expense.

The employee will be accruing sick leave, floating holiday and vacation leave during the period of time, if any, the employee isin paid status.  Any time the employee’s hours adjust to less than 40 hours per week, regardless  of paid status, the employee’s accrual rate (sick leave, vacation leave, floating holiday) will be prorate and adjusted accordingly.  Sick leave, floating holiday and vacation leave do not continue to accrue during any period the employee is on unpaid status.

Under the California Family Rights Act (CFRA) eligible employees are entitled up to 12 additional weeks of leave to bond with the baby.  To be eligible for the CFRA bonding leave, employee must be employed by the Town for at least one year and have worked at least

Town of Los Altos Hills
Personnel Rules & Regulations
39 1250 hours during the year preceding the leave.  The leave is unpaid, but the employee may use floating holiday, compensatory time and vacation leave in order to receive pay during the leave.   The employee may use sick leave for a baby’s illness or doctor’s appointment when applicable to receive pay during the leave.  Bonding leave must be used within one year of the birth of the baby.

An employee who plans to take PDL must give reasonable notice (not less than 4 weeks if anticipated or as soon as possible if the leave is unforeseen) before the date employee expects to take the leave.

Upon expiration of the approved leave, the employee shall be reinstated to her former position or to an available comparable position. The comparable position is one having similar terms of pay, location, job content and promotional opportunities. However, as with Family Leave, an employee has no greater right to reinstatement or to other benefits or conditions of employment than if the employee had been continuously employed during the pregnancy or pregnancy leave. Prior to the employee being reinstated, the department head may require a statement from the attending physician that the employee is physically capable of resuming the regular duties of her position.  If an employee requires reasonable accommodations as a result of pregnancy, employee should consult with Human Resources.  Employees disabled by pregnancy and employees on leave to bond with a baby may be eligible for benefits under State Disability Insurance.  Additional information is available at www.edd.ca.gov/Disability.

Failure to return to work after the authorized four‐month leave period results in the employee having no reinstatement rights.

6.15 ADOPTION LEAVE
Upon request, a leave of absence without pay for up to four (4) work weeks will be granted to adoptive parents.  Such leave must be used within one year of the adoption.  The Town will pay health and welfare benefits for the duration of the leave as the same rate as prior to the leave consistent with the contributions as provided for under the existing Employee Handbook.

If the employee is eligible for CFRA (employed by the Town for at least one year and worked at least 1250 hours during the year preceding the leave), employee may be eligible for up to 12 work weeks total (the above four (4) work weeks plus an additional eight (8) work weeks) for bonding with the adopted child during the first year after adoption.   The employee may be eligible for health benefits during the twelve (12) work week period at the same rate as prior to the leave as provided for under the existing Employee Handbook.

During adoption leave, accrued vacation may be used by the employee at their option in order to receive pay during the leave.  Sick leave may only be used during the leave in the event of illness or medical appointments for the adoptive child during the leave.

Town of Los Altos Hills
Personnel Rules & Regulations
40 6.16 LEAVE WITHOUT PAY
Upon the request of the employee and the recommendation of the department head, a leave of absence without pay may be granted by the City Manager, in their absolute discretion, to an employee. Requests for leave of absence without pay shall state specifically the reason for the request, the date when it is desired to begin the leave, and the date of return. A leave of absence without pay may be granted for a period not to exceed one year.

Failure of the employee to return to their employment upon the termination of any authorized leave of absence shall constitute a separation from service of that employee subject to due process procedures for separation.

Leave of absence without pay shall not be construed as a break in service or employment, and rights accrued at the time the leave is granted shall be retained by the employee; however, vacation credits, sick leave credits, all other paid leaves, holidays and fringe benefits and other similar benefits shall not accrue to a person granted such leave during the period of absence. Nor shall the employer be required to maintain contributions toward group insurance or retirement coverage. During the period of such leaves, all service and leave credits shall be retained at the levels existing as of the effective date of the leave. However, time counted toward an employee’s anniversary date shall be deferred for the time of the leave without pay. The employee shall be reinstated to their former position or to an available comparable one if the former position is abolished during the period of leave and the employee would otherwise not have been laid off.

6.17 SUPERVISORY DISCRETION
Department heads shall have the discretion to place employees on sick leave when in the judgment of the department head, the presence of the employee at work would endanger the health and welfare of other employees or where the illness or injury of the employee interferes with the performance of such employee's duties.

Town of Los Altos Hills
Personnel Rules & Regulations
41 SECTION 7

COMPENSATION AND PAYROLL PRACTICES

7.1 PREPARATION OF COMPENSATION PLAN
The City Manager or designee, or the person or agency employed for that purpose, shall, during the budget preparation period each year or whenever directed by the City Council, prepare a Compensation Plan covering all classes of positions, excluding the City Manager position, showing a range of pay for each position.

7.2 ADOPTION OF PLAN
The Compensation Plans for all positions shall be adopted by the City Council and may be amended from time to time by resolution of the City Council. Amendments and revisions ofthe plans may be suggested by an interested party. Atthe discretion of the City Manager, such amendments and revisions may be submitted to the City Council. The City Manager may approve an hourly rate of compensation fortemporary positions, based on the Council‐ approved hourly Compensation Plan with adjustments for special circumstances.

Notice of City Council consideration of the proposed Compensation Plan, amendments, or revisions shall be posted in the manner prescribed by State Law. No position shall be assigned a salary not in conformance with the salary schedule unlessthe salary schedule for the class is amended in the same manner as herein provided.

7.3 AUTHORIZATION OFOVERTIME
For the purpose of this provision, overtime includes double‐time, call‐out, and stand‐by.

Non–exempt employees may be required to work overtime at the discretion of their supervisor. The supervisor shall be empowered to authorize or require overtime as needed, including but not limited to the following types of situations:

1. To take care of operating emergencies;

2. To handle peak workloads or to finish incomplete work when it is not possible or practical to employ additional personnel;

3. To attend meetings connected to Town business outside of regular work hours;

4. To meet temporary conditions where the Town is unable to secure qualified personnel to fill authorized positions; or

5. On occasions as deemed necessary in the judgment of the responsible supervisor. Non–exempt employees shall not be allowed to perform any overtime work unlesssuch work has been authorized in‐writing by their supervisor.

Town of Los Altos Hills
Personnel Rules & Regulations
42 7.3.1 Overtime Pay at Time‐and‐a‐Half
Non‐exempt employees shall be compensated for overtime worked at the rate of one and one‐half (1 1/2) times their regular hourly rate for all hours worked in excess of forty (40) hours in a workweek.

Subject to the limitations described in Section 6.6, an employee may choose to receive compensatory time off hours at the rate of one and one‐half (1.5) hours for each hour of overtime worked. The time when compensating time off may be taken shall be at the discretion of the supervisor.

Hours worked shall be defined, for the purpose of determining overtime as those hours for which an employee is compensated by the Town for regular work, holidays, sick leave, vacation and compensatory time off. These hours shall be counted toward the accumulation of the work week as defined in this manual.

7.3.2 Overtime Pay at Double
In compliance with California Labor Law, non‐exempt employees shall be compensated for overtime worked at the rate of two (2) times of their regular hourly rate for
 all hours worked in excess of 12 hours in any workday  all hours worked in excess of eight on the seventh consecutive day of work in a workweek; or
 all hours worked on official holiday (listed on Section 6.4)

7.4 DEFINITION OF EXEMPT EMPLOYEE
Exempt employees are paid on a salary basis and are not subject to the overtime pay requirements of the Fair Labor Standards Act. The Town has determined that various executive, administrative and/or professional employees are exempt from the overtime requirements of the Fair Labor Standards Act (FLSA). Employees in the following job classifications are considered exempt:
 City Manager
 City Clerk
 Administrative Services Director (Finance Director)
 Community Development Director
 Assistant Community Development Director/Chief Building Official  Public Works Director/City Engineer
 Finance Manager
 Utility Engineering Manager

Town of Los Altos Hills
Personnel Rules & Regulations
43  Principal Planner
 Community Services Manager
 Maintenance Superintendent (Public Works Department)
 Management Analyst II
 Senior Engineer / Senior Planner / Senior Accountant / Senior Building Inspector  Assistant to the City Manager
Notwithstanding, in the event that the existence or threatened existence of a "local emergency" proclaimed in accordance with Title 4, Chapter 1, section 4‐1.08 of the Municipal Code, and/or a disaster or a state of emergency that affects the Town of Los Altos Hills is proclaimed by the County of Santa Clara, the State of California, or declared by the President, exempt employees shall be paid overtime for the hours that they work as official Disaster Service Workers performing functions related to emergency response activities as follows.

Exempt employees shall be paid "emergency overtime" for each hour worked in a proclaimed/ declared emergency performing disaster response activities so long as the hour, when combined with the hours of the employee's regular work in the same work week, exceeds 40 hours. For example, if an employee actually works a total of fewer than 40 hours of combined regular work and disaster relief work in the applicable week (e.g. due to vacation or sick leave taken that same week), the employee would not be entitled to any emergency overtime. And, regardless of whether an employee worked 40, 45 or 50 hours of regular work in the same week in which the employee also worked l0 hours of disaster relief, the employee would be entitled to 10 hours of emergency overtime. The EOC Director, working with Human Resources shall strive to ensure overtime is equitably assigned to all qualified personnel.

Emergency overtime shall be paid at the straight time base hourly rate of pay. The hourly rate of pay shall be calculated by dividing the exempt employee's current monthly salary by 173.33 (straight time).

This method of accounting for "Exempt Employee Disaster Overtime Pay" shall be followed in all disasters, proclaimed or declared at any level.

Emergency overtime will be paid until such time as the imminent threat to life safety, public health and/or improved property shall cease to exist. The EOC Director shall determine the termination date of emergency overtime based on emergency circumstances for a specific disaster proclamation. In any case of disaster overtime shall not be paid when the Emergency Operations Center ceases to operate.

If a request for Mutual Aid is received and an exempt employee is assigned to be a Disaster Service Worker in another jurisdiction, exempt employee compensation will be based on the Mutual Aid or Assistance for Hire agreement established for that specific event, and not subject to this policy.

Town of Los Altos Hills
Personnel Rules & Regulations
44 7.5 MISCELLANEOUS PAY PROVISIONS

7.5.1. Out‐of‐Classification Pay
Employees who by assignment from their department head or the City Manager perform the essential functions of a position with a higher salary classification than which they are regularly employed shall receive increased compensation beginning on the third (3rd) consecutive work day that the employee performs such functions; said increased compensation will provide the employee the pay rate of the higher classification at the same step on the salary schedule or an increase of five percent, whichever is greater. Determinations regarding whether an employee is entitled to out‐of‐classification pay shall be made in the sole discretion of the City Manager. Out‐of‐classification assignments may be terminated by a department head or the City Manager at any time.  Out of class assignmentsshall be limited to nine‐hundred and sixty (960) hours per fiscal year in accordance with Government Code Section 20480.

7.5.2 Call Out Pay
Should a non‐exempt employee be directed to report to duty by the City Manager or designee, orrespond to a clear and immediate emergency during off‐ duty hours, they will be compensated for hours worked at twice their regular hourly rate. Employees will be compensated for a minimum of two (2) hours for each response to an authorized call out.

7.5.3 Salary Placement/Advancement
The Compensation Plan is designed to establish a reasonable range of wages for each position of employment, and allows for adequate budgetary appropriations to be made for salary costs each fiscal year. The plan provides flexibility in wages in order to compensate for an employee’s increased competence, experience and value added to the organization. No salary advancement shall be made so as to exceed any maximum rate established in the Compensation Plan for the employee’s position.

7.5.2.1 Initial Placement
New employees or those assigned to new classifications shall be assigned a salary within the range for the classification which the City Manager, with recommendation from the appropriate department head, finds to be most appropriate according to the experience, past performance, educational accomplishments and other qualifications of the employee concerned, provided adequate budgetary
appropriations exist.

Town of Los Altos Hills
Personnel Rules & Regulations
45 7.5.3.2 Salary Increase
Advancement within a salary range may, but will not automatically, occur at intervals of one (1) year in length effective with each satisfactory performance review. An exception may be made for newly hired or promoted employees, who shall have a salary advancement review six (6) months after their date of initial hire or promotion. The salary advancement review shall be contingent upon recommendation of the City Manager, based upon his/her review of the employee’sperformance, including but notlimited to review of the following factors: increased service value of an employee to the Town, as exemplified by recommendations of his/her department head, performance records, special projects accomplished, training undertaken, or other pertinent evidence.

In the event an employee is denied a salary increase based on unsatisfactory performance, the City Manager may at any time during the ensuing year approve the increase effective on the date of approval, based upon a satisfactory performance review.

Failure to receive a salary increase shall not be considered disciplinary action and is not subject to any right of appeal or grievance process.

7.5.4 Workweek
The basic work week for full–time, non‐exempt employees shall be forty (40) hours, rendered in units of eight (8) hours per day in a work‐week which begins on Sunday at midnight and ends on the consecutive Saturday at 11:59 p.m.. At the discretion of the City Manager, alternative work schedules may be offered.

Approval of alternative work schedules will include consideration of what best serves the Town’s residents and what schedule is most conducive to the work being performed. Counter hours will be open from Monday through Thursday from 9am – 4pm with 1 hour lunch from 12pm – 1pm.   Employees can choose to work remotely 1 day a week (Monday or Friday) or work a “9/80” work schedule, or work a “4/10” work schedule at the discretion of the City Manager and the department director or manager/supervisor. The City Manager can authorize an additional day to work from home at their sole discretion.

For any employee participating in a “9/80” work schedule, the work week will begin at the midpoint on the workday the employee is regularly scheduled to work eight hours.  Any employee who is on a “9/80” or a “4/10” work schedule will only receive 8 hours for holiday pay and must take the appropriate accrued leave hours to account for the additional one or two hours or work an additional one or two hours to make up the time according to the employee’s work schedule.  If the employee’s 9/80 off day falls on a Friday, the employee has the option to take the opposite Friday in the pay period or take a Monday (in the

Town of Los Altos Hills
Personnel Rules & Regulations
46 same pay period) or bank 8 hours of straight comp time of 8 hours to use for another day at the discretion of the City Manager and department director.

7.5.5 Pay Day
Pay day shall be bi‐weekly. In the event that this day falls on a weekend or holiday, pay day will be the preceding workday.

7.5.6 Preparation of Payroll
The payroll shall be prepared under the direction of the City Manager in accordance with the Compensation Plan. No changesin the names orsalaries on the payroll shall be made unless written instruction is received from the City Manager.

7.5.7 Meal Period
A meal period up to one (1) hour, non–compensated, shall be provided all employees who work at least eight (8) hours in one day. With prior approval of the City Manager, the meal period may be reduced to forty‐five (45) minutes or thirty (30) minutes. The minimum meal period shall be thirty 30 minutes. Non‐ Exempt Employees will be relieved of all duties during meal periods.

7.6 ELIGIBILITY FOR BENEFITS
Benefits are determined and set by the City Council.

7.6.1 Full Time Regular Employees
Employees holding a full‐time position shall be eligible for all benefits currently authorized by the City Council except for those benefits specifically limited to management employees. All benefits shall be listed and authorized with the approval of the Compensation Plan.

7.6.2 Part‐Time Regular Employees
Employees holding a part‐time position shall accrue vacation, sick leave, and holiday credits in the proportion that their average workweek in relation to that of full‐time employees. To the extent possible, other benefits afforded full‐ time positions shall also be pro‐rated. Employees scheduled to work in positions of less than 20 hours per week shall not be provided any benefits other than those required by state or federal law.

Town of Los Altos Hills
Personnel Rules & Regulations
47 7.6.3 Other Employees
Employees holding a temporary, provisional, emergency or other non‐regular appointment or position shall not be provided any benefits other than those required by State or Federal law.

Town of Los Altos Hills
Personnel Rules & Regulations
48 SECTION 8

PERFORMANCE EVALUATIONS

8.1 PERFORMANCE EVALUATION PROVISIONS
All employees should receive an annual performance review on or near their anniversary date, whether or not a pay increase is being considered. The City Manager shall provide a method of reporting on individual employee performance which includes but is not limited to quantity and quality of work, ability, reliability, discipline, attendance, and other factors.

The City Manager shall prescribe forms for such performance evaluations and shall be responsible for assuring thatsuch evaluations are adequate to provide information to both the employee and the Town for the purposes set forth in this section. An employee must have a satisfactory performance evaluation in order to be eligible for a salary increase or promotion. Deficiencies in performance by an employee may result in a decrease in salary, suspension, demotion, or dismissal.

Department heads or manager/supervisor shall rate the performance of each employee; however, the department heads may delegate the responsibility for rating the performance of specified employees in their departments to that employee's supervisor.

Interim reports may be completed as necessary when changes in work performance occur.

Each employee shall be informed in such reports of their strengths and weaknesses. Each performance report shall be discussed with the employee. The employee must sign the report, acknowledging that his performance evaluation has been reviewed with them.

Such signature shall not necessarily mean they fully endorse the contents of said report.

Neither the performance evaluation process nor the performance reports shall be subject to any grievance and/or appeal procedure.

Town of Los Altos Hills
Personnel Rules & Regulations
49 SECTION 9

TRANSFER, RESIGNATION, LAYOFF, REINSTATEMENT, REEMPLOYMENT

9.1 TRANSFER
No person shall be transferred to a position for which they do not possess the minimum qualifications; except that department heads may, on a temporary basis, assign employees to duties other than those prescribed in their classification specification or job description, where the need therefore results from injury or illness, vacation, or other leaves of absence, or where workloads temporarily create the need therefore and the best interest of the Town would be served. Upon notice to the City Manager, an employee may be transferred by the department head at any time from one position to another position in a comparable classification. For transfer purposes, a comparable classification is one with the same maximum salary, and requires substantially the same basic qualifications.

If the transfer involves a change of an employee from one department to another, both department heads and the City Manager must consent thereto. Transfer shall not be used to effectuate a promotion, demotion, advancement, or reduction, each of which may be accomplished only as provided in these Rules and Regulations.

Whenever possible, an employee being transferred from one position to another position in the same class or a comparable class at the same salary levelshall receive five (5) working days’ notice. If the transfer requires the employee to move equipment from one location to another, the employee shall receive seven (7) working days notice when possible.

9.2 RESIGNATION
Resignation occurs when an employee tenders a written notice of their intention to resign.

A resignation becomes final when accepted by a supervisor, department head or the City Manager. Once a resignation has been accepted by the Town, it cannot be withdrawn without the approval of the City Manager. Employees intending on leaving the Town in good standing should give a minimum of two (2) weeks’ notice of their intent to resign.

9.3 JOB ABANDONMENT
An employee shall be deemed to have resigned if the employee is absent for three (3) consecutive workdays without prior authorization and/or without notification during that period of the reason for absence. If an employee in the competitive service that has passed probation is terminated for job abandonment, and that employee challenges the determination that they have abandoned their job, the sole issue for determination in any appeal shall be whether the employee was absent for (3) consecutive workdays without prior authorization and/or without notification.

9.4 LAYOFF POLICY AND PROCEDURE

Town of Los Altos Hills
Personnel Rules & Regulations
50 9.4.1 Statement of Intent
Whenever, in the judgment of the City Council, it becomes necessary to abolish or eliminate any position or employment, the employee holding such position or employmentshall be laid off or demoted without disciplinary action and without the right of appeal or ability to bring a grievance.

9.4.2 Notification
Employees to be laid off or demoted under non‐disciplinary circumstance shall be given a minimum of thirty (30) calendar days prior notice, except in exigent circumstances.

9.4.3 Order of Layoff
Employees shall be laid off in the inverse order of their seniority in their classification. Seniority is determined based upon time worked in the specific classification versus overallservice to the Town. In cases where there are two or more employees in the classification from which the lay‐off is to be made who have the same seniority date, such employees shall be laid off on the basis of the last evaluation rating in the class.

A lay‐off out of the inverse order of seniority may be made if, upon recommendation of the department head and approval of the City Manager, itis determined that retention of special job skills are required or a less senior employee has a higher level of performance. Within each class employees shall be laid off in the following order, unlessspecial skills are required or the leave of performance dictates otherwise: temporary, hourly, introductory, regular.

9.5 REINSTATEMENT
A regular employee who has resigned or has otherwise been separated while in good standing, may be considered for reinstatement, upon recommendation of the department head and approval of the City Manager, to their former position, if vacant, or to a vacant position in the same or a comparable classification for a period of one (1) year after resignation or separation. An employee returning to work may be required to undergo fitness for duty testing at the discretion of the City Manager.

Upon reinstatement, the employee shall be considered as though they had received an original appointment, unless other conditions are made a part of the reinstatement by the City Manager. An employee reinstated to a position in the competitive service will serve a new introductory period.

Town of Los Altos Hills
Personnel Rules & Regulations
51 SECTION 10

DISCIPLINARY ACTIONS
Section 10 only applies to employees in the competitive service that have passed probation.

10.1 SUSPENSION
Suspension is a temporary separation from Town service without pay for disciplinary purposes. The department head may suspend an employee without pay.

10.2 REDUCTION IN PAY
Reduction in pay is a decrease in compensation paid to an employee for a fixed period of time for disciplinary purposes. The department head may impose a reduction in pay to an employee.

10.3 DEMOTION
Demotion isthe movement of an employee from one position to another which is allocated to a classification having a lower maximum rate of pay. A department head may demote an employee whose performance of their required duties is below standard, or for other disciplinary purposes. No employee shall be demoted to a position for which they does not possess the minimum qualifications.

10.4 DISMISSAL
The department headmay dismiss an employeewhose performance oftheirrequired duties is below standard, or for other disciplinary purposes. Such action results in an immediate termination of the employee from Town service consistent with the provisions of this section.

10.5 GROUNDS FOR DISCIPLINE
The Town's standards of conduct are established for the guidance of all employees. These standards are only a partial list of unacceptable behaviors and conduct and are not the exclusive list of grounds for discipline:

A. Fraud in securing employment or making a false statement on an application for employment;
B. Incompetence;
C. Inefficiency or inexcusable neglect of duty;

Town of Los Altos Hills
Personnel Rules & Regulations
52 D. Disobedience and insubordination, a failure to submit to duly appointed and acting supervision or to conform to duly established orders or directions of persons in a supervisory position;
E. Dishonesty;
F. Being under the influence of alcohol or dangerous drugs or narcotics while on duty; G. Excessive absenteeism or tardiness;
H. Inexcusable absence;
I. Abuse of sick leave, i.e., taking sick leave without a doctor's certificate when one is required, or misuse of sick leave;
J. The conviction of either a misdemeanor involving moral turpitude or any felony shall constitute grounds for dismissal of any employee. The record of conviction shall be conclusive evidence only of the fact that the conviction occurred. The department head may inquire into the circumstances surrounding the commission of the crime in order to fix the degree of discipline, or the determination if such conviction is an offense involving moral turpitude. A plea or verdict of guilty, or a conviction showing a plea of nolo contendere made to charge a felony or any offense involving moral turpitude, is deemed to be a conviction within the meaning of this Section;
K. Discourteous treatment of the public or other employees; L. Improper or unauthorized use of Town property;
M. Refusal to subscribe to any oath or affirmation which is required by law in connection with Town employment;
N. Any act of conduct, either during or outside of duty hours which is of such a nature that it causes discredit to the Town;
O. Inattention to duty, tardiness, indolence, carelessness or negligence in the care or handling of Town property;
P. Violation of the ordinances, resolutions, rules and regulations established by the employee's department;
Q. Outside employment not specifically authorized by the appointing authority in accordance with Town procedures;

Town of Los Altos Hills
Personnel Rules & Regulations
53 R. Acceptance from any source of a reward, gift, or other form of remuneration in addition to regular compensation to an employee for the performance of their official duties;
S. The refusal to testify under oath before any Grand Jury having jurisdiction over any then pending cause of inquiry in which the investigation of government bribery or misconduct;
T. Improper political activity;
U. Violation of the Town’s Fraud Policy;
V. Unauthorized overtime;
W. Any similar misconduct pursuant to the Town’s discretion.

10.6 PROCEDURES FOR TAKING DISCIPLINARY ACTION
Disciplinary action shall be taken in compliance with the following procedures:

10.6.1 Notice of Intent
Whenever the Town intends to suspend an employee, demote an employee, reduce the employee in pay or dismiss the employee for disciplinary purposes, the Town shall give the employee a written notice of the intended discipline which sets forth the following:

A. The disciplinary action intended;
B. The specific charges upon which the action is based; C. A factual summary of the grounds upon which the charges are based; D. A copy of all written materials, reports, or documents upon which the discipline is based;
E. Notice of the employee's right to respond to the charges either orally or in writing to the department head;
F. The date, time and person before whom the employee may respond; G. Notice that failure to respond at the time specified shall constitute a waiver of the right to respond prior to final discipline being imposed.

Town of Los Altos Hills
Personnel Rules & Regulations
54 10.6.2 Response by Employee
The employee shall have the rightto respond to the Town orally orin writing. The employee shall have a rightto be represented at any suchmeeting. Such meeting will only be permitted once and continued for no more than two (2) days. An employee must request such a meeting or submit a written response within five (5) working days after being served with a notice of intent to discipline.

10.6.3 Final Notice
After the response or the expiration of the employee's time to respond to the notice of intent, the appropriate authority shall: (1) dismiss the notice of intent and take no disciplinary action against the employee or (2) modify the intended disciplinary action or (3) prepare and serve upon the employee a final notice of disciplinary action. The final notice of disciplinary action shall include the following:

A. The disciplinary action taken;
B. The effect of the disciplinary action taken;
C. Specific charges upon which the action is based;
D. A factual summary of the grounds upon which the charges are based; E. The written materials, reports and documents upon which the disciplinary action is based;
F. The employee's right to appeal, if any.

Town of Los Altos Hills
Personnel Rules & Regulations
55 SECTION 11

APPEALS HEARING AND GRIEVANCE PROCEDURES
Section 11 only applies to employees in the competitive service that have passed probation.

11.1 APPEALS HEARING PROCEDURE
The appeal procedure described herein shall apply only to cases of disciplinary suspensions, reductions in pay, demotions and dismissals affecting regular part‐time and full‐time employees in the competitive service. All other positions and all other forms of discipline shall not be entitled to any appeal rights.

11.1.1 If an employee is served with a final notice of disciplinary action which specifies thatthe employee hasthe rightto appealsaid action,the employee hasthe right, within five (5) working days after receipt of this notice, to request a hearing on the charges by filing a written request with the City Manager.

11.1.2 If, within the five‐day (5) appeal period, the employee does not file a written request for an appeal, the discipline shall become final and shall take effect as prescribed.

11.1.3 If the City Manager receives a timely written request for an appeal, the City Manager shall, unless good cause exists otherwise, set a time for an appeal not less than twenty (20) working days, from the date of the filing of the appeal. All interested parties shall be notified in writing of the date, time, and place of the hearing at least ten (10) working days prior to the hearing.

11.1.4 The City Manager may, in their discretion, refer the appeal hearing to another hearing officer. In such case, all following references to the City Manager shall be deemed to apply to said hearing officer.

11.1.5 All hearings shall be private.

11.1.6 Five (5) working days prior to the date set for the hearing each party shall serve upon the other party and submit to the City Manager a list of all witnesses and copies of all exhibits. The employer's exhibits shall be designated by number.

The employee exhibits shall be designated by alphabetical letter.

11.1.7 The hearing will not be conducted in accordance with technical rules relating to evidence and witnesses but hearings shall be conducted in a manner most conducive to determination of the truth. Any relevant evidence may be admitted if it is the type of evidence on which responsible persons are accustomed to rely in the conduct of serious affairs, regardless of the existence of any common law orstatutory rules which might make improper the admission

Town of Los Altos Hills
Personnel Rules & Regulations
56 of such evidence over objection in civil actions. Hearsay evidence may be used for the purpose of supplementing or explaining any direct evidence but shall not be sufficient in‐and‐of‐itself to support a finding unless it would be admissible over objection in civil actions. The rules dealing with privilegesshall be effective to the same extent that they are now or hereafter may be recognized in civil actions, and irrelevant and unduly repetitious evidence may be excluded.

Decisions made by the City Manager shall not be invalidated by any informality in the proceedings.

11.1.8 The City Manager shall rule on the admission or exclusion of evidence.

11.1.9 Each party shall have these rights: To be represented by legal counsel or other person of their choice; to call and examine witnesses; to introduce evidence; to cross‐examine opposing witnesses on any matter relevant to the issues; to impeach any witnessregardless of which party first called them to testify; and to rebut the evidence against them. If the employee does not testify on their own behalf, they may be called and examined as if under cross‐examination.

11.1.10 Oral evidence shall be taken only on oath or affirmation.

11.1.11 The hearing shall proceed in the following order, unless the City Manager for special reason, otherwise directs:

A. The party imposing discipline shall be permitted to make an opening statement.

B. The appealing party shall be permitted to make an opening statement.

C. The party imposing disciplinary action shall produce the evidence on their part.

D. The party appealing from such disciplinary action may then open their defense and offer their evidence in support thereof.

E. The parties may then, in order, respectively offer rebutting evidence only, unless the City Manager for good reason, permits them to offer evidence upon their original case.

F. Arguments shall be permitted in the discretion of the City Manager. The party with the burden of proof shall have the right to close the hearing by making the last argument.

The City Managershall determine relevancy, weight, and credibility of testimony and evidence, and shall base their findings on the preponderance of evidence

Town of Los Altos Hills
Personnel Rules & Regulations
57 11.1.12 During the examination of a witness, all other witnesses, except the parties,shall be excluded from the hearing upon motion of either party.

11.1.13 No still photographs, moving pictures, or television pictures shall be taken in the hearing chamber during a hearing.

11.1.14 The City Manager, prior to or during a hearing, may grant a continuance for any reason they believesto be important to their reaching a fair and proper decision.

11.1.15 The City Manager shall render their findings and decision as soon after the conclusion of the hearing as possible, and in no event, later than ten (10) working days after conducting the hearing unless otherwise stipulated by the parties. The City Manager's decision shall set forth the findings as to each of the charges and the reasonstherefore. If the City Manager assigns an outside hearing officer, the hearing officer is only a fact finder and shall not make a determination regarding level of penalty or discipline.

11.1.16 The City Manager may recommend the sustaining or rejecting of any or all of the charges filed against the employee. The City Manager may recommend sustaining, rejecting, or modifying the disciplinary action invoked against the employee.

11.1.17 The decision of the City Manager is final unless appealed to the City Council. The proposed decision shall be filed with the charged employee and the department head, or manager/supervisorshallset forth the recommended effective date the employee is to be reinstated , which may be any time on or after the date the disciplinary action went into effect.

11.1.18 Either party may file a written appeal to the proposed decision, findings, and conclusions of the City Manager within ten (10) working days of the City Manager's decision with the City Clerk.

11.1.19 The party desiring to contest the decision of the City Manager may request a transcript for review within ten (10) working days of the City Manager's decision.

If the appealing party requests a transcript, that party shall pay the cost of the transcript.

11.1.20 The City Council shall determine whether, in its absolute discretion, to review such appeal within twenty (20) working days of filing of the appeal. If the Council decides to review the matter, it shall review all transcripts, exhibits, and other documents it deems pertinent. The Council may ratify, modify or reverse the City Manager's decision. The decision of the City Council shall be final.