Los Altos Hills City Council
December 19, 2024

1 City Council Regular Meeting Agenda
December 19, 2024

NOTICE TO PUBLIC
Any writings or documents provided to a majority of the City Council regarding any item on the open session portion of this agenda will be made available for public inspection in the City Clerk’s office located at 26379 Fremont Road, Los Altos Hills, California during normal business hours. These materials will also be made available on the City website at www.losaltoshills.ca.gov subject to Staff’s ability to post the documents before the meeting.

THURSDAY, DECEMBER 19, 2024, AT 6:00 P.M.

Meetings of the City Council are held in-person. As a courtesy, and in compliance with applicable state law, staff and members of the public may participate in the meeting in person at Town Hall or virtually via Zoom Video Conference. Members of the City Council may participate remotely from time to time in accordance with the provisions of Government Code section 54953.

To attend the meeting in person:

City Council Chambers, 26379 Fremont Road, Los Altos Hills, CA 94022 To provide Public Comment in person:

Members of the public wishing to speak are requested to complete a speaker card and submit it to the City Clerk at the meeting.

To participate in the meeting via Zoom Video Conference, please follow the instructions below:

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

If you wish to submit a public comment during the meeting, please use the following information. Before speaking, please identify yourself by name and where you reside. The City Council meeting will be live-streamed on the Town’s website and via zoom at the following location:
https://bit.ly/December19CityCouncilMeetingLAH
Webinar ID: 852 3746 7800
Passcode: 94022
Town of Los Altos Hills
City Council Regular Meeting Agenda
Thursday, December 19, 2024 at 6:00 PM
Council Chambers, 26379 Fremont Road
Los Altos Hills, California

2 City Council Regular Meeting Agenda
December 19, 2024

1. CALL TO ORDER (6:00 P.M.)

2. AGENDA REVIEW

3. PRESENTATIONS AND APPOINTMENTS
A. Presentation Recognizing Art Curator Daniela Friedmann (Staff: A. Miller) B. Presentation Honoring Los Altos Hills 2024 Lifetime Volunteer Award Recipient:

Roy Woolsey (Staff: Mayor Mok)
C. Presentation Honoring Outgoing Vice Mayor Lisa Schmidt (Staff: Council Member Tyson)
D. Vacating of Appointments to the Technology Committee - Rajiv Bhateja and Ron Haley (Staff: A. Miller)
E. Interim Appointment to the North County Library Association (Staff: A. Miller and Vice Mayor Schmidt)
F. Interim Appointment to the Santa Clara Valley Water District (Staff: A. Miller and Vice Mayor Schmidt)

4. PRESENTATIONS FROM THE FLOOR
Persons wishing to address the Council on any subject not on the agenda may do so now. Please complete a Speaker Card located on the back table of the Council Chambers and submit it to the City Clerk. Comments are limited to two (2) minutes per speaker. California law prohibits the Council from acting on items that do not appear on the agenda. Under a Resolution previously adopted by the Council, such items can be referred to staff for appropriate action, which may include placement on the next available agenda.

5. INFORMATIONAL REPORTS (items provided solely for informational purposes) A. Treasurer's Report (Staff: T. Leung)
B. Disbursement Report (Staff: T. Leung)

6. CONSENT CALENDAR
A. Approval of the Special City Council Meeting Minutes - November 20, 2024 (Staff:

A. Miller)

3 City Council Regular Meeting Agenda
December 19, 2024
B. Approval of Regular City Council Meeting Minutes - November 21, 2024 (Staff: A.

Miller)
C. Resolution Authorizing Deposit and Withdrawal from the Local Agency Investment Fund in the State Treasury (Staff: T. Leung)
D. Resolution Accepting the Town of Los Altos Hills Annual Comprehensive Financial Report for the Fiscal Year Ended June 30, 2024 (Staff: T. Leung) E. Receive and Accept the Annual Report on Development Impact Fees in Compliance with AB1600 for the Fiscal Year Ended June 30, 2023 (Staff: T. Leung) F. Receive and Accept the Annual Report on Development Impact Fees in Compliance with AB1600 for the Fiscal Year Ended June 30, 2024 (Staff: T. Leung) G. Resolution Authorizing the Write-Off of Uncollectible Deposits Aged Over Three Years (Staff: T. Leung)
H. Resolution Granting the Request for Extension of the Expiration Dates for Building Permits at 26759 Shady Oaks Ct. (Staff: J. Bradford)
I. Resolution Approving Amendment No. 1 to the Upper Ravensbury Avenue Sanitary Sewer Reimbursement Agreement between the Town of Los Altos Hills and Dave Jessen (Staff: D. Liang)
J. Resolution Approving a Treated Sewer Effluent Transfer Agreement between the Town of Los Altos Hills and the City of Palo Alto (Staff: W. Kim)

7. NEW BUSINESS
A. Consideration for Council Members and Staff International Travel to Participate in the ERAT Program for Advancement of AI In Government Operations (Staff P.

Pirnejad)
B. Consideration To Agendize A Discussion Of The Town’s Public Safety Approach Regarding The Town’s ALPR System And Private Security Contracts (Staff C.

Einfalt)

8. REPORTS FROM COMMITTEES, SUB-COMMITTEES, AND

COUNCILMEMBERS ON OUTSIDE AGENCIES

4 City Council Regular Meeting Agenda
December 19, 2024

9. COUNCIL INITIATED ITEMS

10. STAFF REPORTS
A. City Attorney
B. City Clerk
C. Community Development Director
D. Finance Director
E. Public Works Director
F. City Manager

11. SPECIAL ITEMS
A. Recognition of Mayor Stanley Mok

1. Remarks from Mayor Mok
B. Council Member-Elect Rajiv Bhateja Oath of Office
C. City Council Reorganization

1. Election of New Mayor and administration of Oath of Office

2. Election of New Vice Mayor and administration of Oath of Office

3. Comments by the New Mayor and Vice Mayor

12. ADJOURN
Pursuant to Ordinance No. 506, the Council Meeting shall adjourn no later than 10:00 p.m., unless otherwise approved by a majority of the Councilmembers present.

ASSISTANCE FOR PERSONS WITH DISABILITIES
In compliance with the Americans with Disabilities Act, if you need special assistance to participate in the meeting, please contact the City Clerk at 650-941-7222. Notification 48 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting.

Copies of all agenda reports and supporting data are available for inspection at Town Hall, 26379 Fremont Road and the Los Altos Main Library 72 hours in advance of the meeting. A complete agenda can be found on the Town’s webpage: http://www.losaltoshills.ca.gov. A complete packet of information is available for inspection during the meeting at the table to the back of the Council Chambers.

The Council may take action on any agendized matter in any manner deemed appropriate by Council.

ITEM 3D
DATE: December 19, 2024
TO: Honorable Mayor and Members of the Council
FROM: Arika Miller, City Clerk ABM
APPROVED: Peter Pirnejad, City Manager PP
SUBJECT: Vacating Appointment for the Los Altos Hills Technology Committee The Technology Committee plays a critical role in advising the City Council on technology-related initiatives and policies. Two members of the committee, Rajiv Bhateja and Ron Haley, are vacating their positions. Rajiv Bhateja has been elected to the City Council and is no longer eligible to serve on the committee. Ron Haley has submitted his resignation, leaving an additional vacancy.
 Rajiv Bhateja
 Ron Haley
Once these positions are vacated, the Technology Committee will have two (2) vacant seats.

TOWN OF LOS ALTOS HILLS

MEMORANDUM

ITEM 3E
TOWN OF LOS ALTOS HILLS December 19, 2024
Staff Report to the City Council
SUBJECT: INTERIM APPOINTMENT OF A REPRESENTATIVE TO THE NORTH

COUNTY LIBRARY AUTHORITY (NCLA)
FROM: Arika Miller, City Clerk ABM
APPROVED: Peter Pirnejad, City Manager PP
RECOMMENDATION: That the City Council:

Appoint a member to serve as the City’s representative on the North County Library Authority (NCLA), to fill the vacancy left by Outgoing Vice Mayor Lisa Schmidt should there be a meeting before the January 30, 2024, City Council Meeting.

BACKGROUND:

The North County Library Authority (NCLA) is a joint powers authority responsible for overseeing library services in the region. The Town of Los Altos Hills has traditionally been represented on the NCLA Board by a member of the City Council. Lisa Schmidt, the City’s current appointee, is no longer serving on the City Council, creating a vacancy that requires immediate attention.

Typically, the City Council makes appointments to regional boards and commissions during its Regular City Council Meeting in January. However, the NCLA’s next meeting is scheduled to occur before the January 30th meeting. To ensure continuous representation and participation, it is necessary to appoint a new representative at this meeting.

DISCUSSION:

The City’s participation in the NCLA is critical to ensuring our community’s interests are effectively represented in decisions regarding library services and funding. The timely appointment of a representative will ensure the City’s input is included in upcoming discussions at the NCLA meeting.

Staff recommends that the City Council consider appointing a current member to serve as the City’s representative to the NCLA. This interim appointment will remain in effect until the annual appointments are confirmed at the January 30th City Council meeting.

Staff Report to City Council Page 2
Appointment to the NCLA
December 19, 2024
2 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. 2024-25 CITY COUNCIL WORK PLAN
The report is for transparency and was not specified in the City Council’s 2024-25 work plan.

FISCAL IMPACT:

There is no fiscal impact associated with an Interim Appointment to the North County Library Authority (NCLA).

ITEM 3F
TOWN OF LOS ALTOS HILLS December 19, 2024
Staff Report to the City Council
SUBJECT: INTERIM APPOINTMENT OF A REPRESENTATIVE TO THE SANTA

CLARA VALLEY WATER DISTRICT (SCVWD)
FROM: Arika Miller, City Clerk ABM
APPROVED: Peter Pirnejad, City Manager PP
RECOMMENDATION: That the City Council:

Appoint a member to serve as the City’s representative on the Santa Clara Valley Water District (SCVWD), to fill the vacancy left by Outgoing Vice Mayor Lisa Schmidt. The SCVWD Regular Meetings are scheduled for January 14th and January 28th, 2025, both of which occur before the January 30th City Council Meeting.

BACKGROUND:

The Santa Clara Valley Water District (SCVWD) is responsible for managing water resources, flood protection, and environmental stewardship within the region. The Town of Los Altos Hills has traditionally been represented on the SCVWD Board by a member of the City Council. Lisa Schmidt, the City’s current appointee, is no longer serving on the City Council, creating a vacancy that requires immediate attention.

Typically, the City Council makes appointments to regional boards and commissions during its Regular Council Meeting in January. However, the SCVWD’s next meeting is scheduled to occur on January 14th and January 28th, 2025, prior to the City Council’s January 30th meeting. To ensure continuous representation and participation, it is necessary to appoint a new representative at this meeting.

DISCUSSION:

The City’s representation on the SCVWD is essential for ensuring local water management concerns are addressed and for participating in key discussions about regional water resources. A timely appointment will ensure the City’s voice is present at the upcoming SCVWD meeting.

Staff recommends that the City Council consider appointing a current member to serve as the City’s representative to the SCVWD. This interim appointment will remain in effect until the annual appointments are confirmed at the January 30th City Council meeting.

Staff Report to City Council Page 2
Appointment to the SCVWD
December 19, 2024
2 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. 2024-25 CITY COUNCIL WORK PLAN
The report is for transparency and was not specified in the City Council’s 2024-25 work plan.

FISCAL IMPACT:

There is no fiscal impact associated with an Interim Appointment to the Santa Clara Valley Water District (SCVWD).

ITEM 4, Supplement 1A

2 amendment submission. He provided a strong reference for Veronica Tam & Associates (VTA) and a copy of one of her documents is attachment#1. He also stated that if VTA has capacity to support additional clients, he has 100% confidence in her decisions, and has no concern if LAH wishes to engage her.
 The Carmel team have offered to share their experience directly with LAH including an introduction to Dale Byrne the new mayor of Carmel and to council member Hans Buder.

The purpose of this report is to make clear that the characterization, by the LAH Town Manager and City Counsel, that engaging with HCD over an amendment to the LAH HE is "risky" and "too time consuming" to be achievable is simply not substantiated based upon Real World Evidence. Although I have stated this several times, I encourage you to make contact with Carmel (and am happy to assist) .

There are three things required to complete the amendment of the LAH HE, the most important being under your control.

1. Time - the sooner LAH Council passes a motion directing Town staff to commence work on such an amendment, the more of this finite resource will be available! Town staff do not need to do any work for you to debate or pass such a resolution.

2. Focus - Given Town staff have identified their resource constraints, activities that are not required of, or of benefit to, LAH should be curtailed and not approved.

3. Collaboration - This HE and the amendment of the HE, is clearly the mandate of the LAH Planning Commission. They should be charged with formulation of a special committee reporting weekly to the Commissioners, to develop and execute the LAH amendment plan. Staff & the Planning Commission should report monthly to the Town Council.

Hopefully this HEAR has been useful, and I am available to provide any further information upon request.

John O'Connell
email:
tel:

107 S. Fair Oaks Avenue, Suite 212
Pasadena, CA 91105 P (626) 818-9488
October 7, 2024
To: Marnie Waffle
From: Veronica Tam
Subject: Carmel Housing Element Sites Strategy
Understanding
According to the City’s HCD-certified Housing Element, we understand that, accounting for units already permitted, the City has a remaining RHNA of 292 units. The City primarily relies on three City-owned sites to meet its remaining lower income RHNA. ADUs and hospitality employee housing are also components of the City’s lower income RHNA strategy.

We understand the City is interested in exploring options to lessen the burden on the Cityowned properties. This memo outlines potential options the City may explore further.

Table 1: Adopted Housing Element – Lower Income RHNA Summary Very Low Low Moderate
Above
Moderate Total
Remaining RHNA 106 67 37 82 292
Hospitality Employee
Housing 8 12 11 0 31
Projected ADUs 10 10 10 4 34
Site 1: Sunset Center North 20 10 3 0 33
Site 2: Sunset Center South 30 25 5 0 60
Site 3: Vista Lobos 28 11 17 0 56
Site 8: Carmel Foundation 11 10 0 0 21
Site 11: Forest Cottages SP 0 2 0 4 6
Total Capacity 107 80 46 8 241
ADU Options

1. Petition for a Higher Trend
The adopted Housing Element states the following:
“Using the more conservative number of 30 ADUs permitted between 2018 and 2022, extrapolated to the eight-year planning period for the 6th Cycle Housing Element update, this equates to 48 units…Based on the City’s permit history and active support for ADUs, as well as the continued interest by property owners in rehabilitating existing ADUs and constructing new ADUs, it is reasonable to estimate a minimum of 34 ADUs over the eight-year planning period, although City ITEM 4, Supplement 2a

107 S. Fair Oaks Avenue, Suite 212
Pasadena, CA 91105 P (626) 818-9488
staff expects to exceed this number. Following the rule of thumb recommended by HCD, these 34 units have been distributed to very low-, low-, moderate-, and above moderate-income households as follows: 30 percent, 30 percent, 30 percent, 10 percent, respectively.” (p. C-75)
Using current data (2023 and 2024), demonstrate that the City can easily exceed the projection of 48 units, let alone reducing that to 34 units as currently used in the Housing Element. This may have to couple with other City actions to facilitate/incentivize ADU construction. If successful, the City could add 14 additional units: 4 very low, 4 low, 4 moderate, and 2 above moderate.

2. Opportunities for Amnesty and Conversion of Guesthouses In 2020, AB 670 went into effect - a new bill that gives all Californians five years to legalize their unpermitted ADUs and granny flats by bringing the structure up to code. AB 2533 just signed by the Governor extends the ADU amnesty law to unpermitted ADUS and JADUs built before 2020. The City may explore the extent of illegally built ADUs and JADUs and property owners’ interest in pursuing the amnesty program. Most cities that have such amnesty programs generally have some knowledge if such units exist in the community and where they are concentrated. An actual survey is not recommended as it may raise concerns from homeowners regarding potential code enforcement citations.

Typically, an amnesty program allows homeowners to legalize their illegal ADUs as long as they meet basic building code standards. The city would have to “forgive” certain zoning infractions. The legalized units would be new housing units, eligible for RHNA credits once permitted. However, to use this as a RHNA strategy for sites, the City would have to gauge public interest, estimate the number of potential units, and develop a robust program to program the strategy. The objective is to entice HCD to accept a higher number for ADU projection.

In addition to legalizing illegal units, existing guesthouses may be used as rentals. There can also be opportunities for converting these into legal housing units using the same approach.

Housing at Hotel Sites

1. Hospitality Employee Housing
The adopted Housing Element states the following:
“To incentivize the development of on-site employee housing within existing sites for overnight visitor accommodations, the City has developed Program 1.3.D, which amends the Municipal Code to allow at least one on-site affordable employee housing unit in conjunction with one new overnight visitor accommodation room… Initially, the program would be voluntary. However, at the mid-cycle mark, if the program has not gained interest, it would become mandatory…As there are 46 hotels in the City, this program has the potential to add at least 31 moderate- and lower-income units to the City’s housing stock.” (p.

C-72 and C-73)

107 S. Fair Oaks Avenue, Suite 212
Pasadena, CA 91105 P (626) 818-9488
The Housing Element assumes 31 units (8 very low, 12 low, and 11 moderate income).

The City may consider modifying the program to indicate each hotel can have at least one unit but not exceed five percent of the number of rooms. Assuming larger hotels would require more employee housing units than smaller hotels, the City could potentially increase the number of employee housing units to 47 units, already a conservative assumption that hotels with fewer than ten rooms would not participate in the program.

Using the same income distribution for the additional 16 units, the City may be able to gain 4 very low, 5 low, and 7 moderate income units.

Table 2: Hotels by Size
APN Address
Overnight Visitor Accommodation
Establishment Name
No. of
Rooms
Up to
5%
010287008000 San Antonio, 4 SE of 13th Edgemere Cottages Closed 010264006000 8th & Camino Real La Playa Hotel 75 4
010095010000 Junipero between 5th & 6th Best Western Carmel Bay View Inn 56 3 010213003000 Ocean between Lincoln/Monte Verde The Pine Inn 49 2 010019061000 Ocean & Monte Verde Normandy Inn 48 2
010147008000 7th & Lincoln Ave Cypress Inn 44 2
010131025000 San Carlos at 5th Carmel Lodge/Stillwell Hotel 42 2 010124012000 4th & San Carlos Svensgaard’s Inn 35 2
010094002000 Ocean & Junipero Carmel Village Inn/Le Petit Pali 34 2 010142002000 San Carlos @ 7th Coachman’s Inn 30 2
010136023000 5th & San Carlos Best Western Carmel’s Townhouse Lodge 28 1 010123014000 4th & San Carlos Hotel Carmel 28 1
010214032000 Ocean @ Monte Verde Lobos Lodge 28 1
010109016000 Mission @ 3rd Ave Tradewinds Carmel 28 1
010124001000
010124014000
2 NW of 4th on San Carlos Hofsas House 26 1
010109015000 SWC 3rd & Junipero Horizon Inn 26 1
010021024000
010021025000
010021002000
010021003000
010021026000
010021027000
010021028000
010021029000
Carpenter between 1st & 2nd Carmel Resort Inn
25 1
010286015000 San Antonio & 13th Colonial Terrace/Carmel Beach Hotel & Spa
25 1
010087003000 Junipero between 7th & 8th The Hideaway/Le Petit Pali @ 8th 24 1 010087013000 7th & Mission Wayside Inn 22 1
010148015000 Dolores & 8th Adobe Inn 20 1
010136022000 San Carlos between 4th & 5th Candle Light Inn 20 1 010097007000 Junipero & 5th Carmel Inn & Suites 20 1
010191005000 Monte Verde @ 7th L’Auberge Carmel 20 1
010136021000 San Carlos @ 4th Carmel Fireplace Inn 18 1 010094001000 Torres & Ocean Ave Comfort Inn Carmel by the Sea 18 1 010195501500 7th & Casanova Carmel Green Lantern Inn 17 1 010097018000 Mission & 5th Carmel Oaks 17 1
010123005000 4th @ Mission Street Carmel Wayfarer Inn 15 1 010087002000 Junipero between 7th & 8th Carriage House Inn 13 1

107 S. Fair Oaks Avenue, Suite 212
Pasadena, CA 91105 P (626) 818-9488
Table 2: Hotels by Size
APN Address
Overnight Visitor Accommodation
Establishment Name
No. of
Rooms
Up to
5%
010136016000 Dolores & 7th Vagabond House 13 1
010131011000 San Carlos between 4th & 5th Briarwood Inn 12 1 010124009000 SE Dolores & 3rd Carmel Country Inn LLC 12 1 010214029000 Monte Verde & 6th Tally-Ho Inn 12 1
010104002000 4th & Torres Carmel Garden Inn 10 1
010196027000 Monte Verde & 7th Monte Verde Inn 10 1
010104005000 SEC 3rd & Junipero Ocean View Lodge 9 0
010273014000 Camino Real between 11th & 12th Sea View Inn 8 0 010201013000 Monte Verde @ 7th Monte Verde Inn East 7 0 010268008000 San Antonio & 8th Carmel Cottage Inn LLC 6 0 010261014000 SE Camino Real & Ocean Lamplighter Inn 6 0 010194018000 SS 8th between Monte Verde &
Casanova
Stonehouse Inn c/o Carmel Realty 6 0
010131013000 E/S San Carlos between 4th & 5th Briarwood Inn II/Holland Court Inn 5 0 010085005000 SW Ocean/Torres Forest Lodge 4 0
010261015000 Camino Real 2 SE of Ocean Sunset House 3 0 010148007000 NE Corner Lincoln & 8th The Homestead 3 0
SOURCE: City of Carmel-by-the-Sea 47

2. Transferable Development Rights
Program 1.3.B which encourages property owners to consider rehabilitating their sites as multi-family rental residences through a transfer of development rights. According to the Housing Element (p. C-74), of the 46 Overnight Visitor Accommodation sites listed in Table C-55, 5 meet the eligibility criteria for transfer of development rights to rehabilitate as multi-family residential. Each of these sites are located in the City’s Commercial District and are greater than 0.5 acres in size.

However, because there are no expressed interests in taking advantage of this program, the Housing Element has not assigned any RHNA units for this strategy. To be accepted by HCD for RHNA capacity, specific sites with expressed interest must be identified. Once specific locations are identified, the City could argue that the capacity and income distribution should be based on the proposed plans, regardless of lot sizes.

Housing on Church Properties
We recommend exploring SB 4 opportunities on the City’s religious facility properties. SB 4, the Affordable Housing on Faith Lands Act, provides a streamlined process for religious organizations and nonprofit colleges to develop affordable housing on their property. SB 4 makes it legal for faith-based institutions and non-profit colleges to build affordable, multi-family homes on lands they own by streamlining the permitting process and overriding local zoning restrictions. The bill also guarantees “by-right” approval of new homes, as long as they are consistent with all objective building standards and comply with existing environmental protections.

Objective standards include density consistent with State-established default density. For Carmel (a community with population less than 25,000), this is 20 units per acre. As for

107 S. Fair Oaks Avenue, Suite 212
Pasadena, CA 91105 P (626) 818-9488
height, the housing development is allowed a height of one story above the maximum height otherwise applicable to the parcel. Utilizing SB 4 is NOT considered rezoning.

107 S. Fair Oaks Avenue, Suite 212
Pasadena, CA 91105 P (626) 818-9488

1. First Church of Christ
Currently, the adopted Housing Element includes only one church property: Site 5 - First Church of Christ Parking Lot (0.28 acre) for 9 above moderate income units, utilizing SB 10 to streamline the subdivision of this site into 9 single-family lots. However, because these are intended as single-family lots, they are considered feasible as above moderate income housing only.

We understand that First Church of Christ had previously communicated with the City regarding its interest in redeveloping the entire site. The six parcels total 0.54 acre.

Assuming the SB 4 allowable density of 20 units per acre, this site can potentially yield 11 units (estimated at 3 very low, 3 low, and 5 moderate income). We understand that the church has expressed interest in doing much more than 11 units. However, this cannot be achieved unless their site is rezoned for higher density development. If this is a desired approach, a program to rezone the property would be needed in order to claim a higher number of units on this site for RHNA.

2. Carmel Presbyterian Church
The Carmel Presbyterian Church has four parcels that can potentially be used for affordable housing. These include the two parking parcels and two single-family homes that are currently used as housing for staff. These four parcels total only 0.46 acre only.

HCD may not accept this as adequate for facilitating lower income in the City given the allowable density of only 20 units per acre. However, the City may be able to assign these as moderate income units (estimated at 9 units).

3. Carmel Mission
We understand Carmel Mission has a large campus and has expressed interest in developing transitional/supportive housing. If the City is able to work with the Mission to identify a portion of the property for development, it could reduce the burden on the Cityowned properties. Allocation of approximately five acres on this campus can potentially replace all three City-owned sites.

Summary of Potential Unit Changes (excluding Downtown)
Without lot consolidation, it is extremely challenging to use Downtown properties for lower income RHNA units. Based on the strategies discussed above, the City has the potential to move all 25 moderate income units and some lower income units off the City-owned properties (see Table 3).

107 S. Fair Oaks Avenue, Suite 212
Pasadena, CA 91105 P (626) 818-9488
Table 3: Summary of Potential Additional Units
Very
Low Low Moderate
Above
Moderate Total
City-Owned Sites
Site 1: Sunset Center North 20 10 3 0 33
Site 2: Sunset Center South 30 25 5 0 60
Site 3: Vista Lobos 28 11 17 0 56
Total 78 46 25 0 149
Potential Additional Units
Projected ADUs 4 4 4 2 14
Hospitality Employee
Housing 4 5 7 0 16
First Church 3 3 5 0 11
Carmel Presbyterian 0 0 9 0 0
Carmel Mission -- -- -- -- --
Total 11 12 25 2 50
Remaining on City-Owned
Properties 67 34 0 -2
Downtown Properties

1. Underutilized Properties and Lot Consolidation Potential Sites feasible for lower income housing should be at least 0.5 acre. Given the small lot sizes, downtown properties are less feasible for lower income units, unless the City is able to identify properties with potential for lot consolidation or demonstrate with more recent examples of affordable housing projects on small lots. Our search must expand beyond City limits given that there has been only one project in the City more than six/seven years ago.

Nevertheless, even if HCD would not accept downtown sites for lower income units, the City can increase the capacity for moderate income units and thereby lowering the number of units on the City-owned properties.

Typical factors for identifying potential parcels are:
- Property owner interest in redevelopment - this is the most convincing factor to HCD
- Vacant lot
- Lot with vacated uses - for lease or for sale signs, boarded up, vacated - Existing uses - similar to uses being recycled in the region, such as retail and office uses, banks, and auto-related uses such as repair shops, gas stations, and used car sales
- Improvement to land value ratio (ILVR) less than 1.0 – higher thresholds may be used for retail and office uses if the City is able to demonstrate such uses with higher ILVR have been redeveloped in the region

107 S. Fair Oaks Avenue, Suite 212
Pasadena, CA 91105 P (626) 818-9488
- Age of structure or effective year at least 30 years - a threshold when major system upgrades are needed
- Floor Area Ratio (building square footage over lot area) less than 50% of allowable - Height – at least one story less than allowed
To utilize this strategy, in addition to identifying potential parcels, the City will also need to:
- Look for other examples of affordable housing development on small lots in the region and demonstrate that potential sites identified in Carmel are similar in characteristics as these project locations.
- Modify program to provide incentives for lot consolidation. HCD typically accepts these incentives:
o Ministerial process for lot consolidation
o Increased density or other flexible development standards o Reduced/deferred/waived fees
o Assistance with connecting property owners with developers

2. Office Conversion
City policy requires that conversion of second story space must be for residential uses.

Identifying potential conversion can provide possibly moderate income housing based on unit size and type. Typically, HCD would accept small multi-family units (especially rental) to be affordable to moderate income households. To utilize this strategy, the following information would be helpful:
- Property owner interest
- Available second story space - for lease signs or vacated - Examples of recent conversion - the Mill Valley example uses 1,000 square feet per unit but Carmel should be able to use a small unit size to estimate capacity Summary
Each of these strategies discussed above requires further assessment for actual potential. Only after the City has determined one or more of these strategies could yield an adequate number of units to replace or reduce the burden on the City-owned sites, we could arrange a meeting with HCD to obtain preliminary comments.

TOWN OF LOS ALTOS HILLS December 19, 2024
Staff Report to the City Council
SUBJECT: RECEIVE TREASURER’S REPORT FOR PERIOD ENDING OCTOBER 31, 2024
FROM: Thomas Leung, Finance Director
APPROVED: Peter Pirnejad, City Manager
RECOMMENDATION: That the City Council:

Review and accept the Treasurer’s Report for the month ending on October 31, 2024.

BACKGROUND:

California Government Code Section 41004 requires the City Treasurer to submit a written report and accounting of all receipts, disbursements, and fund balances to the City Clerk and the legislative body. This report fulfills that requirement, summarizing the Town’s financial transactions for its cash and investment accounts for the month.

DISCUSSION:

The attached Treasurer’s Report provides details of the Town’s cash and investment balances, including all receipts and disbursements for the month.

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. 2024 CITY COUNCIL WORK PLAN:

The report is for financial transparency and to comply with government code. It was not specified as one of the City Council’s Work Plan items for 2024.

FISCAL IMPACT:

There is no fiscal impact.

ATTACHMENT:

1. Treasurer’s Report as of October 31, 2024.

ITEM 5A Staff Report

Name Beginning
Balance Total Total Ending Balance
as of 10/01/24 Receipts (+) Disbursement (-) as of 10/31/24 CASH ACCOUNTS:

Cash on hand & Petty Cash 1,900.00 - - 1,900.00
Wells Fargo Bank 2,146,565.46 1,267,943.20 2,179,541.58 1,234,967.08 Total: 2,148,465.46 1,267,943.20 2,179,541.58 1,236,867.08 Ending Balance
as of 10/31/24
INVESTMENT ACCOUNTS:

Investments - Local Agency Investment Fund (LAIF) - per Par Value 3,902,984.81 Investments - CAMP Portfolio - per Market Value 22,048,164.60 Investments - PARS 115 Trust Pension - per Market Value - Restricted 1,261,990.88 Investments w/ Fiscal Agent - BNY Mellon - per Par Value - Restricted 161,414.02 Total: 27,374,554.31
TOTAL CASH & INVESTMENTS ACCOUNTS 28,611,421.39

DEPOSIT LIABILITIES
Building Dept Deposits 4,342,490.98
CASH & INVESTMENTS ACCOUNT BALANCE:

Prior Year
Carry forward Increase/ Ending Balance Current Current Ending Balance* Fund # Fund Name: Fund Classification: as of 7/1/24 (Decrease) as of 09/30/24 Increase (DR) Decrease (CR) as of 10/31/24 11 General Fund General Fund 20,972,714.16 (994,833.73) 19,977,880.43 1,003,047.08 1,496,580.36 19,484,347.15 16 Parks & Rec - In Lieu Fee Special Revenue 450,858.36 - 450,858.36 - - 450,858.36 19 ARPA - AMERICAN

RESCUE PLAN ACT
Special Revenue
813,105.06 - 813,105.06 - - 813,105.06
21 COPS FUND Special Revenue (10,840.64) (655.91) (11,496.55) 102,996.79 2,038.57 89,461.67 71 SPECIAL DONATIONS Special Revenue 34,472.90 - 34,472.90 - - 34,472.90 46 STREET CIP Streets Capital Projects (30,171.00) 328,991.69 298,820.69 258,593.99 628,064.63 (70,649.95) 41 GENERAL CIP FUND Other Capital Projects 714,826.17 (675,808.38) 39,017.79 - 112,251.46 (73,233.67) 42 PATHWAYS CIP Other Capital Projects 780,992.25 49,429.24 830,421.49 46,553.98 2,000.00 874,975.47 43 WESTWIND BARN CIP Other Capital Projects 230,335.22 14,307.07 244,642.29 4,815.78 - 249,458.07 45 DRAINAGE CIP Other Capital Projects 631,498.85 (58,364.35) 573,134.50 25,280.99 8,214.43 590,201.06 48 SEWER FUND CIP Enterprise-Sewer 3,881,884.80 (452,691.75) 3,429,193.05 - 1,240.00 3,427,953.05 51 SEWER FUND Enterprise-Sewer 2,780,932.41 (802,126.52) 1,978,805.89 197,338.16 288,372.66 1,887,771.39 31 SEWER ASSESSMENT D Fiduciary 318,213.34 (102,499.35) 215,713.99 609.85 1,339.83 214,984.01 61 GENERAL SERVICE FUNInternal Service Fund 1,149,611.14 (295,712.51) 853,898.63 320,423.67 536,605.48 637,716.82 32,718,433.02 (2,989,964.50) 29,728,468.52 1,959,660.29 3,076,707.42 28,611,421.39 *Fund balances are unaudited, and may not include all necessary adjustments. These figures will be updated in future reports once the FY23/24 independent audit is completed
Monthly Treasurer's Report
FY 2024-25
Month of October (Unaudited)
Pursuant to California Government Code Section 41004

TOTAL CASH & INVESTMENTS ACCOUNT
ITEM 5A Attachment 1

TOWN OF LOS ALTOS HILLS December 19, 2024
Staff Report to the City Council
SUBJECT: RECEIVE DISBURSEMENTS REPORT FOR PERIOD ENDING OCTOBER 2024
FROM: Thomas Leung, Finance Director
APPROVED: Peter Pirnejad, City Manager
RECOMMENDATION: That the City Council:

Receive the October 2024 Disbursements Report.

BACKGROUND:

The Disbursements Report is submitted to the City Council for transparency.

DISCUSSION:

The table below summarizes Accounts Payable and payroll disbursements. 1,746,939.79 Total Accounts Payable Disbursements
432,601.79 Total Payroll Disbursements
2,179,541.58 Total Disbursements
The table below provides a breakdown of payroll disbursements, as well as payments to vendors who received more than $10,000 in total during the month. These disbursements total $2,012,189.61, or approximately 92% of total disbursements for the month.

ITEM 5B Staff Report

Staff Report to City Council Page 2
Disbursements Report October 31, 2024
December 19, 2024
ENVIRONMENTAL REVIEW:

The Disbursements Report is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15061(b)(3) of the CEQA Guidelines. 2024 CITY COUNCIL WORK PLAN:

The report is for financial transparency and was not specified as one of the City Council’s Work Plan items for 2024.

Amounts Vendors Description
349,027.98 EFT: ADP- Payroll Services and other Bank adjustments/fees Pay Date: 10.04.24
Payroll: $84,755.27
Payroll Taxes: $26,063.01
Pay Date: 10.20.24
Payroll: $77,207.17
Payroll Taxes: $22,786.95
Payroll Date: 11.1.24
Payroll: $96,005.63
Payroll Taxes: $33,243.56
Bank Adjustments/Fees = $8,966.39
83,573.81 EFT: CalPERS (retirement and health) and Navia for Flex Spending
Employer contributions and employee
withholdings related to payroll benefits.
625,626.30 O'GRADY PAVING 2024 Pavement Rehabilitation
221,319.00 SANTA CLARA COUNTY SHERIFF'S DEPARTMENT October 2024 Sheriff Services 169,812.91 CITY OF LOS ALTOS Q1 FY 2024-25 Sewer System Billback 158,988.35 CSG CONSULTANTS INC Contract Services - Building, Code Enforcement
92,589.06 WEST BAY SANITARY DISTRICT August 2024 and September 2024 Sewer Maintenance Services
45,547.97 BELLECCI & ASSOCIATES INC El Monte Undergrounding Construction Management
45,340.56 PALAMERICAN SECURITY (SILICON VALLEY) INC Residential Patrol Services 37,102.26 MISSIONSQUARE Retirement Services
27,104.00 4LEAF, INC Contract Services - Permit Technician 20,815.00 EATON AND ASSOCIATES Monthly IT Services
20,559.75 THE KPA GROUP Heritage House Remodel Project
Management and Design
20,420.62 GRASSROOTS ECOLOGY Quarterly Payment for LAH Open Space Stewardship
20,060.05 CIVICPLUS CivicClerk and CivicPlus Software
19,181.50 REDWOOD PUBLIC LAW, LLP City Attorney Services 11,981.25 MILLER, TIFFANY Corp Yard Locker Room Design
11,211.50 S.R.ROSE ENGINEERING INC
Broadband Project Management and El
Monte Undergrounding Project
Management
11,019.70 WELLS FARGO - VISA Credit card misc. charges
10,680.00 HARPER, KEVIN W. Professional Accounting Services 10,228.04 PURISSIMA HILLS WATER October 2024 Water

Staff Report to City Council Page 3
Disbursements Report October 31, 2024
December 19, 2024
FISCAL IMPACT:

There is no fiscal impact.

ATTACHMENTS:

1. October 2024 Disbursements Report by Vendor.

12/2/2024 3:28:29 PM Page 1 of 16
Expense Approval Report
Town of Los Altos Hills By Vendor Name
Payment Dates 10/1/2024 - 10/31/2024
Vendor Name Payable Number Post Date Description (Item) Account Number Amount Vendor: 4LEAF01 - 4LEAF, INC
4LEAF, INC J4016-00S-1 10/24/2024 PERMIT TECH M GUZULES 7/1… 011-3200-6199 13,552.00 4LEAF, INC J4016-00T-1 10/24/2024 PERMIT TECH M GUZULES 8/1… 011-3200-6199 13,552.00 Vendor 4LEAF01 - 4LEAF, INC Total: 27,104.00
Vendor: ATKINS94023 - ALEXANDER ATKINS DESIGN INC
ALEXANDER ATKINS DESIGN I… 8400 10/09/2024 Our Town Quarterly Newslett… 011-1100-6304 6,250.00 Vendor ATKINS94023 - ALEXANDER ATKINS DESIGN INC Total: 6,250.00 Vendor: YOUNG10 - ALICE YOUNG
ALICE YOUNG 10.16.24 10/29/2024 NEIGHBORHOOD WATCH ORI… 011-2100-6399 357.84 Vendor YOUNG10 - ALICE YOUNG Total: 357.84
Vendor: ALLGUARD01 - ALL-GUARD ALARM SYSTEMS INC
ALL-GUARD ALARM SYSTEMS … S128443 10/17/2024 SVCS CALL FR CORP YARD ALA… 061-4300-6118 140.00 Vendor ALLGUARD01 - ALL-GUARD ALARM SYSTEMS INC Total: 140.00 Vendor: AMAZON30353 - AMAZON
AMAZON 1414-QYPM-1NDC 10/17/2024 OTHER GENERAL SUPPLIES 9/… 061-1480-6398 39.48 AMAZON 16LY-WNVM-CNTF 10/17/2024 COMPUTER DOCKING STATIO… 061-1480-6503 530.34 AMAZON 197J-WQYD-419P 10/17/2024 OTHER GENERAL SUPPLIES 9/… 061-1480-6398 53.67 AMAZON 1G9P-K7KP-61HL 10/17/2024 OTHER GENERAL SUPPLIES 9/… 061-1480-6398 55.10 Vendor AMAZON30353 - AMAZON Total: 678.59
Vendor: ANIMAL95037 - ANIMAL DAMAGE MANAGEMENT
ANIMAL DAMAGE MANAGEM… 354530 10/24/2024 2X MONTHLY PEST CONTROL … 011-5100-6130 650.00 Vendor ANIMAL95037 - ANIMAL DAMAGE MANAGEMENT Total: 650.00 Vendor: ARELLANO94022 - ARELLANO, OSWALDO
ARELLANO, OSWALDO 10.9.24 10/17/2024 RED WING SAFETY BOOTS 10/… 061-4300-6325 350.00 Vendor ARELLANO94022 - ARELLANO, OSWALDO Total: 350.00
Vendor: ATTMOBILITY - AT&T MOBILITY
AT&T MOBILITY 287319629759X10102024 10/17/2024 PARKS & REC SPECIALIST 9/3/… 011-1000-6362 50.13 AT&T MOBILITY 287319629759X10102024 10/17/2024 5G HOTSPOT 9/3/24-10/2/24 011-1200-6362 40.24 AT&T MOBILITY 287319629759X10102024 10/17/2024 LAH HOTSPOT 9/3/24-10/2/24 011-1200-6362 40.24 AT&T MOBILITY 287319629759X10102024 10/17/2024 MANAGEMENT ANALYST 9/3… 011-1200-6362 50.13 AT&T MOBILITY 287319629759X10102024 10/17/2024 CITY MANAGER 9/3/24-10/2/… 011-1200-6362 50.13 AT&T MOBILITY 287319629759X10102024 10/17/2024 ADMINISTRATIVE CLERK/TEC… 011-1300-6362 50.13 AT&T MOBILITY 287319629759X10102024 10/17/2024 CITY CLERK 9/3/24-10/2/24 011-1300-6362 50.13 AT&T MOBILITY 287319629759X10102024 10/17/2024 SIGNAL EL MONTE & VOORHE… 011-1400-6362 44.35 AT&T MOBILITY 287319629759X10102024 10/17/2024 FINANCE DIRECTOR 9/3/24-10…011-1400-6362 50.13 AT&T MOBILITY 287319629759X10102024 10/17/2024 SIGNAL EL MONTE & PERIMET…011-1400-6362 44.35 AT&T MOBILITY 287319629759X10102024 10/17/2024 SIGNAL EL MONTE & STONEB… 011-1400-6362 44.35 AT&T MOBILITY 287319629759X10102024 10/17/2024 ADMINISTRATIVE CLERK/TEC… 011-3100-6362 50.13 AT&T MOBILITY 287319629759X10102024 10/17/2024 PLANNING DIRECTOR CHRGS … 011-3100-6362 50.13 AT&T MOBILITY 287319629759X10102024 10/17/2024 PLANNING IPAD 9/3/24-10/2/… 011-3100-6362 40.24 AT&T MOBILITY 287319629759X10102024 10/17/2024 BUILDING INSPECTOR CHRGS … 011-3200-6362 50.13 AT&T MOBILITY 287319629759X10102024 10/17/2024 BUILDING IPAD 9/3/24-10/2/… 011-3200-6362 40.24 AT&T MOBILITY 287319629759X10102024 10/17/2024 ASSISTANT ENGINEER 9/3/24… 011-3300-6362 50.13 AT&T MOBILITY 287319629759X10102024 10/17/2024 PWD IPAD1 9/3/24-10/2/24 011-3300-6362 40.24 AT&T MOBILITY 287319629759X10102024 10/17/2024 PWD IPAD 2 9/3/24-10/2/24 011-3300-6362 40.24 AT&T MOBILITY 287319629759X10102024 10/17/2024 ASSISTANT ENGINEER 9/3/24-… 011-3300-6362 50.13 AT&T MOBILITY 287319629759X10102024 10/17/2024 PUBLIC WORKS IPAD 9/3/24-1…011-3300-6362 40.24 AT&T MOBILITY 287319629759X10102024 10/17/2024 UTILITY ENGINEERING MANA… 011-3300-6362 50.13 AT&T MOBILITY 287319629759X10102024 10/17/2024 MAINTENANCE WORKER 9/3/… 061-4300-6362 45.09 AT&T MOBILITY 287319629759X10102024 10/17/2024 MAINTENANCE WORKER 9/3… 061-4300-6362 45.09 AT&T MOBILITY 287319629759X10102024 10/17/2024 MAINTENANCE WORKER 9/3/… 061-4300-6362 45.09 AT&T MOBILITY 287319629759X10102024 10/17/2024 MAINTENANCE SUPERINTEND…061-4300-6362 50.13 ITEM 5B Attachment 1

Expense Approval Report Payment Dates: 10/1/2024 - 10/31/2024 12/2/2024 3:28:29 PM Page 2 of 16
Vendor Name Payable Number Post Date Description (Item) Account Number Amount AT&T MOBILITY 287319629759X10102024 10/17/2024 MAINTENANCE WORKER 9/3/… 061-4300-6362 30.73 Vendor ATTMOBILITY - AT&T MOBILITY Total: 1,232.42
Vendor: AT&T 60197_5014 - AT&T
AT&T 256795714 10.10.24 10/24/2024 INTERNET MONTHLY CHARGES…061-1480-6362 127.69 Vendor AT&T 60197_5014 - AT&T Total: 127.69
Vendor: AT&T PO9011 - AT&T
AT&T 000022414176 10/24/2024 PURISSIMA/ELENA PUMP STA… 051-4800-6362 28.86 AT&T 000022414179 10/24/2024 ALTERNATE EOC - FIRE STATI… 011-2100-6362 88.15 AT&T 000022414180 10/24/2024 HERITAGE HOUSE ALARM 09/… 011-2100-6362 30.94 AT&T 000022414181 10/24/2024 26379 FREMONT ROAD 09/10… 061-1480-6362 1,073.31 AT&T 000022414182 10/24/2024 26379 FREMONT ROAD - CH… 061-1480-6362 30.42 AT&T 000022414183 10/24/2024 WWB FIRE ALARM LINE 09/10… 011-5300-6362 59.29 AT&T 000022414184 10/24/2024 HERITAGE HOUSE DSL SVC 09… 011-2100-6362 60.32 AT&T 000022414185 10/24/2024 26379 FREMONT ROAD 09/10… 061-1480-6362 325.88 AT&T 000022414186 10/24/2024 HERITAGE HOUSE OES NEW P… 011-2100-6362 59.29 AT&T 000022414187 10/24/2024 12863 LA CRESTA EOC HAM R… 011-2100-6362 32.91 AT&T 000022414188 10/24/2024 28002 PURISSIMA RD - SANIT… 051-4800-6362 30.94 AT&T 000022414189 10/24/2024 27400 PURISSIMA RD - CORP … 061-4300-6362 60.34 AT&T 000022414659 10/24/2024 O'KEEFE LN AT NORMANDY LN…051-4800-6362 31.66 Vendor AT&T PO9011 - AT&T Total: 1,912.31
Vendor: ATLAS94583 - ATLAS TECHNICAL CONSULTANTS LLC
ATLAS TECHNICAL CONSULTA… 015024 10/09/2024 Technician: Nuclear Gauge and…048-6900-6206 80.00 ATLAS TECHNICAL CONSULTA… 015024 10/09/2024 Soil Technician - Backfill Comp…048-6900-6206 540.00 ATLAS TECHNICAL CONSULTA… 015159 10/09/2024 Soil Technician - Backfill Comp…048-6900-6206 540.00 ATLAS TECHNICAL CONSULTA… 015159 10/09/2024 Technician: Nuclear Gauge and…048-6900-6206 80.00 Vendor ATLAS94583 - ATLAS TECHNICAL CONSULTANTS LLC Total: 1,240.00 Vendor: BAYSCAPE01 - BAYSCAPE MANAGEMENT, INC.

BAYSCAPE MANAGEMENT, IN… 38596 10/09/2024 Landscape Maintenance Svcs … 011-4740-6125 450.00 BAYSCAPE MANAGEMENT, IN… 38596 10/09/2024 Landscape Maintenance Svcs 011-4740-6125 1,750.00 BAYSCAPE MANAGEMENT, IN… 38596 10/09/2024 Landscape Maintenance Svcs 011-4740-6125 2,500.00 BAYSCAPE MANAGEMENT, IN… 38596 10/09/2024 Landscape Maintenance Svcs 011-5100-6122 850.00 BAYSCAPE MANAGEMENT, IN… 38596 10/09/2024 Landscape Maintenance Svcs 011-5300-6122 1,750.00 BAYSCAPE MANAGEMENT, IN… 38596 10/09/2024 Landscape Maintenance Svcs 061-1480-6122 1,250.00 Vendor BAYSCAPE01 - BAYSCAPE MANAGEMENT, INC. Total: 8,550.00 Vendor: BAYSIDE94063 - BAYSIDE EQUIPMENT COMPANY
BAYSIDE EQUIPMENT COMPA… 84864 10/09/2024 SERVICES CALL ON GENERAC … 041-6900-6205 1,096.04 Vendor BAYSIDE94063 - BAYSIDE EQUIPMENT COMPANY Total: 1,096.04 Vendor: BELLECCI01 - BELLECCI & ASSOCIATES INC
BELLECCI & ASSOCIATES INC 200065.00 - 0000027 10/29/2024 PROF. SVCS UUD IN AREA EL … 041-6900-6206 45,547.97 Vendor BELLECCI01 - BELLECCI & ASSOCIATES INC Total: 45,547.97 Vendor: BRUNNER01 - BRUNNER, KEREN
BRUNNER, KEREN 10.17.24 10/24/2024 TUITION FOR CMC CLASS: FIN… 011-1300-6309 60.00 Vendor BRUNNER01 - BRUNNER, KEREN Total: 60.00
Vendor: CALWATER95194 - CALIFORNIA WATER SERVICE CO.

CALIFORNIA WATER SERVICE … 1865744444 10.21.24 10/24/2024 W EDITH AVE/W FREMONT RD…011-5100-6364 313.56 CALIFORNIA WATER SERVICE … 8540713534 10.21.24 10/24/2024 E EDITH AVE/W FREMONT RD… 011-5100-6364 95.88 Vendor CALWATER95194 - CALIFORNIA WATER SERVICE CO. Total: 409.44 Vendor: CHEVRON28272 - CHEVRON AND TEXACO CARD SERVICES CHEVRON AND TEXACO CARD …100222767 10/17/2024 SMALL TOOL FUEL 9/24 & 10/… 061-4300-6342 39.58 CHEVRON AND TEXACO CARD …100222767 10/17/2024 FLEET FUEL 9/24 & 10/24 061-4400-6342 462.32 Vendor CHEVRON28272 - CHEVRON AND TEXACO CARD SERVICES Total: 501.90 Vendor: CINTAS- UNIFORMS - CINTAS CORPORATION
CINTAS CORPORATION 4206398483 10/09/2024 HOUSEKEEPING SUPPLIES 9/2… 061-1480-6123 169.04 CINTAS CORPORATION 4206398483 10/09/2024 UNIFORMS SUPPLIES 9/26/24 061-4300-6324 228.71 CINTAS CORPORATION 4207150401 10/09/2024 HOUSEKEEPING SUPPLIES 10/… 061-1480-6123 247.93 CINTAS CORPORATION 4207150401 10/09/2024 UNFORMS SUPPLIES 10/3/24 061-4300-6324 235.84 CINTAS CORPORATION 4203561470 10/17/2024 HOUSEKEEPING SUPPLIES 8/2… 061-1480-6123 145.18

Expense Approval Report Payment Dates: 10/1/2024 - 10/31/2024 12/2/2024 3:28:29 PM Page 3 of 16
Vendor Name Payable Number Post Date Description (Item) Account Number Amount CINTAS CORPORATION 4203561470 10/17/2024 UNIFORMS SUPPLIES 8/29/24 061-4300-6324 240.94 CINTAS CORPORATION 4204201367 10/17/2024 HOUSEKEEPING SUPPLIES 9/5… 061-1480-6123 144.48 CINTAS CORPORATION 4204201367 10/17/2024 UNIFORMS SUPPLIES 9/5/24 061-4300-6324 242.94 CINTAS CORPORATION 4204991475 10/17/2024 HOUSEKEEPING SUPPLIES 9/1… 061-1480-6123 146.48 CINTAS CORPORATION 4204991475 10/17/2024 UNIFORMS SUPPLIES 9/12/24 061-4300-6324 240.94 CINTAS CORPORATION 4207850779 10/24/2024 HOUSEKEEPING SUPPLIES 10/… 061-1480-6123 84.01 CINTAS CORPORATION 4207850779 10/24/2024 UNIFORMS SUPPLIES 10/10/24 061-4300-6324 111.05 CINTAS CORPORATION 4208570640 10/29/2024 HOUSEKEEPING SUPPLIES 10/… 061-1480-6123 131.32 CINTAS CORPORATION 4208570640 10/29/2024 UNIFORMS SUPPLIES 10/17/24 061-4300-6324 113.95 Vendor CINTAS- UNIFORMS - CINTAS CORPORATION Total: 2,482.81 Vendor: LOSALTOS94022 - CITY OF LOS ALTOS
CITY OF LOS ALTOS IN100975 10/09/2024 P&E ELEC, SIGNL MAIN Q1 '25 011-4600-6145 74.86 CITY OF LOS ALTOS IN100976 10/24/2024 Q1 FY25 SEWER SYSTEM BILL… 051-4800-6120 169,738.05 Vendor LOSALTOS94022 - CITY OF LOS ALTOS Total: 169,812.91 Vendor: CIVIC66502 - CIVICPLUS
CIVICPLUS 311998 10/24/2024 CP MEDIA ANNL PREM (STOR… 011-3110-6398 6,018.02 CIVICPLUS 311998 10/24/2024 CIVIC CLERK PREM ANNL FEE … 061-1480-6210 14,042.03 Vendor CIVIC66502 - CIVICPLUS Total: 20,060.05
Vendor: COMBS01 - COMBS, CATHY
COMBS, CATHY 9/27/2024 10/09/2024 NEIGHBORHOOD WATCH DRI… 011-2100-6399 188.16 Vendor COMBS01 - COMBS, CATHY Total: 188.16
Vendor: COMCAST19380 - COMCAST BUSINESS
COMCAST BUSINESS 219078282 10/17/2024 #980056897 10.1.24 CALNET … 061-1480-6310 951.22 Vendor COMCAST19380 - COMCAST BUSINESS Total: 951.22
Vendor: COMCAST LOCAL ACCTS - COMCAST
COMCAST 0017176 10.3.24 10/17/2024 #8155200160017176 CABLE&… 061-1480-6310 216.24 Vendor COMCAST LOCAL ACCTS - COMCAST Total: 216.24
Vendor: CORELOGIC75284 - CORELOGIC INFORMATION SOLUTIONS, INC.

CORELOGIC INFORMATION SO…30735303 10/09/2024 RQ2 FLAT FEE LIMITED PACKA… 011-3100-6338 106.09 CORELOGIC INFORMATION SO…30735303 10/09/2024 RQ2 FLAT FEE LIMITED PACKA… 011-3200-6338 106.09 Vendor CORELOGIC75284 - CORELOGIC INFORMATION SOLUTIONS, INC. Total: 212.18 Vendor: CORODATA90084 - CORODATA SHREDDING INC.

CORODATA SHREDDING INC. DN 1492711 10/24/2024 1 21 GALL CONSOLE (24' TALL… 061-1480-6323 950.62 Vendor CORODATA90084 - CORODATA SHREDDING INC. Total: 950.62 Vendor: CSG94404 - CSG CONSULTANTS INC
CSG CONSULTANTS INC 58226 10/09/2024 CODE ENFORCEMENT 7/1/24-… 011-3120-6111 8,418.50 CSG CONSULTANTS INC 58226 10/09/2024 BULIDING INSPECTION 7/1/24…011-3200-6199 12,960.00 CSG CONSULTANTS INC 58227 10/09/2024 BUILDING INSPECTION SERVIC…011-3200-6199 17,280.00 CSG CONSULTANTS INC 58227 10/09/2024 CODE ENFORCEMENT SERVIC… 011-3210-6111 12,204.00 CSG CONSULTANTS INC B241562 10/09/2024 BUILDING PLAN REVIEW SVCS… 011-3200-6114 44,270.85 CSG CONSULTANTS INC 57391 10/29/2024 6/2024 BILLABLE CONTRACT S…011-0000-2301 19,800.00 CSG CONSULTANTS INC 57391 10/29/2024 6/2024 ADMIN FEE CONTRACT…011-0000-2301 1,980.00 CSG CONSULTANTS INC 57391 10/29/2024 6/2024 PASSTHRU REV CONT… 011-3300-4705 -19,800.00 CSG CONSULTANTS INC 57391 10/29/2024 6/2024 RECOG ADMIN FEE C… 011-3300-6175 -1,980.00 CSG CONSULTANTS INC 57391 10/29/2024 6/2024 PASSTHRU EXP CONT… 011-3300-6175 19,800.00 CSG CONSULTANTS INC 57570 10/29/2024 7/2024 ADMIN FEE CONTRACT…011-0000-2301 1,617.00 CSG CONSULTANTS INC 57570 10/29/2024 7/2024 BILLABLE CONTRACT S…011-0000-2301 16,170.00 CSG CONSULTANTS INC 57570 10/29/2024 7/2024 RECOG ADMIN FEE C… 011-0000-4685 -1,617.00 CSG CONSULTANTS INC 57570 10/29/2024 7/2024 PASSTHRU REV CONT… 011-3300-4705 -16,170.00 CSG CONSULTANTS INC 57570 10/29/2024 7/2024 PASSTHRU EXP CONT… 011-3300-6175 16,170.00 CSG CONSULTANTS INC 57571 10/29/2024 7/2024 BILLABLE CONTRACT S…011-0000-2301 5,775.00 CSG CONSULTANTS INC 57571 10/29/2024 7/2024 ADMIN FEE CONTRACT…011-0000-2301 577.80 CSG CONSULTANTS INC 57571 10/29/2024 7/2024 RECOG ADMIN FEE C… 011-0000-4685 -577.80 CSG CONSULTANTS INC 57571 10/29/2024 7/2024 PASSTHRU REV SVC-E… 011-3300-4705 -5,775.00 CSG CONSULTANTS INC 57571 10/29/2024 7/2024 PASSTHRU EXP CONT… 011-3300-6175 5,775.00 CSG CONSULTANTS INC 57572 10/29/2024 7/2024 BILLABLE CONTRACT S…011-0000-2301 7,590.00 CSG CONSULTANTS INC 57572 10/29/2024 7/2024 AMIN FEE CONTRACT … 011-0000-2301 759.00 CSG CONSULTANTS INC 57572 10/29/2024 7/2024 RECOG ADMIN FEE C… 011-0000-4685 -759.00

Expense Approval Report Payment Dates: 10/1/2024 - 10/31/2024 12/2/2024 3:28:29 PM Page 4 of 16
Vendor Name Payable Number Post Date Description (Item) Account Number Amount CSG CONSULTANTS INC 57572 10/29/2024 7/2024 PASSTHRU REV CONT… 011-3300-4705 -7,590.00 CSG CONSULTANTS INC 57572 10/29/2024 7/2024 PASSTHRU EXP CONT… 011-3300-6175 7,590.00 CSG CONSULTANTS INC 58036 10/29/2024 8/2024 BILLABLE CONTRACT S…011-0000-2301 1,980.00 CSG CONSULTANTS INC 58036 10/29/2024 8/2024 ADMIN FEE CONTRAC … 011-0000-2301 198.00 CSG CONSULTANTS INC 58036 10/29/2024 8/2024 RECOG ADMIN FEE C… 011-0000-4685 -198.00 CSG CONSULTANTS INC 58036 10/29/2024 8/2024 PASSTHRU REV CONT… 011-3300-4705 -1,980.00 CSG CONSULTANTS INC 58036 10/29/2024 8/2024 PASSTHRU EXP CONT… 011-3300-6175 1,980.00 CSG CONSULTANTS INC 58037 10/29/2024 8/2024 BILLABLE CONTRACT S…011-0000-2301 9,240.00 CSG CONSULTANTS INC 58037 10/29/2024 8/2024 ADMIN FEE CONTRACT…011-0000-2301 924.00 CSG CONSULTANTS INC 58037 10/29/2024 8/2024 RECOG ADMIN FEE C… 011-0000-4685 -924.00 CSG CONSULTANTS INC 58037 10/29/2024 8/2024 PASSTHRU REV CONT… 011-3300-4705 -9,240.00 CSG CONSULTANTS INC 58037 10/29/2024 8/2024 PASSTHRU EXP CONT… 011-3300-6175 9,240.00 CSG CONSULTANTS INC 58054 10/29/2024 8/2024 BILLABLE CONTRACT S…011-0000-2301 2,640.00 CSG CONSULTANTS INC 58054 10/29/2024 8/2024 ADMIN FEE CONTRACT…011-0000-2301 264.00 CSG CONSULTANTS INC 58054 10/29/2024 8/2024 RECOG ADMIN FEE C… 011-0000-4685 -264.00 CSG CONSULTANTS INC 58054 10/29/2024 8/2024 PASSTHRU REV CONT… 011-3300-4705 -2,640.00 CSG CONSULTANTS INC 58054 10/29/2024 8/2024 PASSTHRU EXP CONT… 011-3300-6175 2,640.00 CSG CONSULTANTS INC 58671 10/29/2024 9/2024 ADMIN FEE CONSTRA… 011-0000-2301 66.00 CSG CONSULTANTS INC 58671 10/29/2024 9/2024 BILLABLE CONSTRACT …011-0000-2301 660.00 CSG CONSULTANTS INC 58671 10/29/2024 9/2024 RECOG ADMIN FEE C… 011-0000-4685 -66.00 CSG CONSULTANTS INC 58671 10/29/2024 9/2024 PASSTHRU REV CONS… 011-3300-4705 -660.00 CSG CONSULTANTS INC 58671 10/29/2024 9/2024 PASSTHRU EXP CONST…011-3300-6175 660.00 Vendor CSG94404 - CSG CONSULTANTS INC Total: 158,988.35 Vendor: DIAMOND01 - DIAMOND QUALITY PRINTING INC.

DIAMOND QUALITY PRINTING …41482 10/09/2024 MULTIPLE COVER UP STICKERS…011-4120-6361 125.78 DIAMOND QUALITY PRINTING …41408 10/17/2024 MULTIPLE COVER UP STICKER …011-4120-6361 153.13 Vendor DIAMOND01 - DIAMOND QUALITY PRINTING INC. Total: 278.91 Vendor: CORBETT01 - DKG CONSULTANTS, LLC
DKG CONSULTANTS, LLC 2024-48 10/09/2024 CDD-HOUSEING ELEMENT;PL… 011-3100-6111 6,904.00 Vendor CORBETT01 - DKG CONSULTANTS, LLC Total: 6,904.00 Vendor: PRICE94022 - DUFFY PRICE
DUFFY PRICE 9/29/24 10/24/2024 10 WINE BOTTLES FR SPEAKER…011-1700-6209 306.90 Vendor PRICE94022 - DUFFY PRICE Total: 306.90
Vendor: EATON03 - EATON AND ASSOCIATES
EATON AND ASSOCIATES 90910 10/09/2024 UPGRADE LAH VMS PROJECT-… 011-3100-6313 7,650.00 EATON AND ASSOCIATES 91027 10/24/2024 Monthly IT Managed Services 061-1480-6111 13,165.00 Vendor EATON03 - EATON AND ASSOCIATES Total: 20,815.00
Vendor: SIGNIFICANT95125 - ECAPITAL COMMERCIAL FINANCE GROUP ECAPITAL COMMERCIAL FINA… 116179 10/09/2024 LITTLE LEAGUE OCT-2024 011-5100-6123 435.00 ECAPITAL COMMERCIAL FINA… 116179 10/09/2024 MULTIPURPOSE ROOM OCT-2… 011-5100-6123 195.00 ECAPITAL COMMERCIAL FINA… 116179 10/09/2024 WESTWIND BARN OCT-2024 011-5300-6123 430.00 ECAPITAL COMMERCIAL FINA… 116179 10/09/2024 PARKS & RECREATION BUILDI… 061-1480-6123 270.00 ECAPITAL COMMERCIAL FINA… 116179 10/09/2024 TOWN LOS ALTOS CITY HALL … 061-1480-6123 1,920.00 ECAPITAL COMMERCIAL FINA… 116179 10/09/2024 CORPORATION YARD OCT-2024 061-4300-6123 450.00 ECAPITAL COMMERCIAL FINA… 115945 10/17/2024 HOUSEKEEPING SUPPLEIS 8/3… 061-1480-6123 600.17 ECAPITAL COMMERCIAL FINA… 116128 10/17/2024 HOUSEKEEPING SUPPLEIS 9/3… 061-1480-6123 475.04 ECAPITAL COMMERCIAL FINA… 116139 10/17/2024 HOUSEKEEPING SUPPLEIS 9/3… 061-1480-6123 727.98 Vendor SIGNIFICANT95125 - ECAPITAL COMMERCIAL FINANCE GROUP Total: 5,503.19 Vendor: ENGEO94583 - ENGEO INCORPORATED
ENGEO INCORPORATED 295015 10/17/2024 MATADERO CREEK REPAIR TH… 045-6900-6206 817.50 ENGEO INCORPORATED 295779 10/24/2024 MATADERO CREEK REPAIR 7/… 045-6900-6206 2,372.50 Vendor ENGEO94583 - ENGEO INCORPORATED Total: 3,190.00
Vendor: EOA94612 - EOA, INC.

EOA, INC. LAH001-0824 10/17/2024 08/2024 BILLABLE CONTRACT …011-0000-2301 1,546.00 EOA, INC. LAH001-0824 10/17/2024 08/2024 ADMIN FEE CONTRA… 011-0000-2301 154.60 EOA, INC. LAH001-0824 10/17/2024 08/2024 RECOG ADMIN FEE C… 011-0000-4685 -154.60 EOA, INC. LAH001-0824 10/17/2024 08/2024 PASSTHRU REV CON… 011-3300-4705 -1,546.00

Expense Approval Report Payment Dates: 10/1/2024 - 10/31/2024 12/2/2024 3:28:29 PM Page 5 of 16
Vendor Name Payable Number Post Date Description (Item) Account Number Amount EOA, INC. LAH001-0824 10/17/2024 08/2024 PASSING THRU EXP … 011-3300-6179 1,546.00 Vendor EOA94612 - EOA, INC. Total: 1,546.00
Vendor: FRIEDMANN01 - FRIEDMANN, DANIELA
FRIEDMANN, DANIELA 9.23.24 10/09/2024 REFRESHMENTS FOR ARTIST R…011-1700-6209 376.87 Vendor FRIEDMANN01 - FRIEDMANN, DANIELA Total: 376.87
Vendor: GARDENLAND95008 - GARDENLAND CENTER INC.

GARDENLAND CENTER INC. 1129128 10/29/2024 PARTS FOR BLOWER 10/7/24 061-4300-6351 34.48 Vendor GARDENLAND95008 - GARDENLAND CENTER INC. Total: 34.48 Vendor: GRAINGER60038 - GRAINGER
GRAINGER 9243832947 10/09/2024 HOUSEKEEPING SUPPLEIS 9/1… 061-4300-6123 219.13 GRAINGER 9253272208 10/09/2024 REPLACEMNT HANDLE LADIES… 011-5100-6118 100.19 GRAINGER 9262661920 10/17/2024 PRECISION LINE MARKING PA… 061-4300-6398 136.72 Vendor GRAINGER60038 - GRAINGER Total: 456.04
Vendor: GRANICUS95161 - GRANICUS, INC.

GRANICUS, INC. 189915 10/17/2024 DISCLOSUREDOCS ETHICS MA… 011-1300-6209 543.34 Vendor GRANICUS95161 - GRANICUS, INC. Total: 543.34
Vendor: GRANITE95077 - GRANITEROCK
GRANITEROCK 27178704 10/17/2024 6 IN ACID SCRUB BRUSH W/H… 011-4600-6149 281.17 Vendor GRANITE95077 - GRANITEROCK Total: 281.17
Vendor: GRASSROOTS01 - GRASSROOTS ECOLOGY
GRASSROOTS ECOLOGY LAHBP0924 10/29/2024 QTRLY PYMNT FR LAH OPEN S… 041-6900-6199 20,420.62 Vendor GRASSROOTS01 - GRASSROOTS ECOLOGY Total: 20,420.62 Vendor: GREENCITIZEN01 - GREEN CITIZEN, INC
GREEN CITIZEN, INC 52468 10/29/2024 ELECTRONICS RECYCLING PICK…041-6900-6502 290.00 Vendor GREENCITIZEN01 - GREEN CITIZEN, INC Total: 290.00 Vendor: GREEN95112 - GREENWASTE RECOVERY INC
GREENWASTE RECOVERY INC 0007677524 10/24/2024 2 PARCEL DRIVE DISTANCE 9/… 011-1200-6398 1,320.33 GREENWASTE RECOVERY INC 033839 10/24/2024 MRF-OTHER & YARDWASTE S… 011-0000-1110 5,697.22 Vendor GREEN95112 - GREENWASTE RECOVERY INC Total: 7,017.55 Vendor: HARPER02 - HARPER, KEVIN W.

HARPER, KEVIN W. 10.9.24 10/24/2024 PROF SVCS N.NGOM @ 67.75… 011-1400-6199 10,680.00 Vendor HARPER02 - HARPER, KEVIN W. Total: 10,680.00
Vendor: HDL91765 - HDL COREN & CONE
HDL COREN & CONE SINO44264 10/29/2024 CONTRACT SERVICES PROPER… 011-1400-6199 1,760.61 Vendor HDL91765 - HDL COREN & CONE Total: 1,760.61
Vendor: HOME85062 - HOME DEPOT CREDIT SERVICES
HOME DEPOT CREDIT SERVICES 2511762 10/09/2024 OTHER SUPPLIES MATERIAL 9… 061-4300-6399 311.64 HOME DEPOT CREDIT SERVICES 3040818 10/09/2024 SUPPLIES FOR COUNCIL CHA… 061-1480-6118 273.25 HOME DEPOT CREDIT SERVICES 5524377 10/09/2024 TOWN HALL/COUNCIL CHAM… 061-1480-6118 107.30 Vendor HOME85062 - HOME DEPOT CREDIT SERVICES Total: 692.19 Vendor: HUERTA01 - HUERTA, HECTOR
HUERTA, HECTOR 10.9.24 10/17/2024 RED WING SAFETY BOOTS 10/… 061-4300-6325 350.00 Vendor HUERTA01 - HUERTA, HECTOR Total: 350.00
Vendor: VOLUNTEER - JOINT VOLUNTEER AWARDS COMMITTEE
JOINT VOLUNTEER AWARDS … 10/2/2024 10/09/2024 JOINT VOLUNTEER AWARDS … 011-1700-6340 3,000.00 Vendor VOLUNTEER - JOINT VOLUNTEER AWARDS COMMITTEE Total: 3,000.00 Vendor: RODRIGUEZ94538 - JOSE RODRIGUEZ
JOSE RODRIGUEZ 10/9/24 10/17/2024 RED WING SAFETY BOOTS 10/… 061-4300-6325 350.00 Vendor RODRIGUEZ94538 - JOSE RODRIGUEZ Total: 350.00
Vendor: KIA02 - KIA MOTORS FINANCE
KIA MOTORS FINANCE 2215089147 9.25.24 10/09/2024 2022 KIA NIRO EV #22150891… 061-4400-6506 361.06 KIA MOTORS FINANCE 2215089803 9.25.24 10/09/2024 2022 KIA NIRO EV #22150898… 061-4400-6506 361.06 KIA MOTORS FINANCE 2215089147 10.26.24 10/29/2024 2022 KIA NIREO EV 061-4400-6506 361.06 KIA MOTORS FINANCE 2215089803 10.26.24 10/29/2024 2022 KIA NIREO EV 22150898… 061-4400-6506 361.06 Vendor KIA02 - KIA MOTORS FINANCE Total: 1,444.24

Expense Approval Report Payment Dates: 10/1/2024 - 10/31/2024 12/2/2024 3:28:29 PM Page 6 of 16
Vendor Name Payable Number Post Date Description (Item) Account Number Amount Vendor: LAHARDWARE94022 - LOS ALTOS HARDWARE INC
LOS ALTOS HARDWARE INC 30097/1 10/09/2024 IRRIGATION REPAIR AT WWCB…011-5300-6122 56.74 LOS ALTOS HARDWARE INC 30216/1 10/09/2024 PARTS FOR DESK IN COUNCIL … 061-1480-6118 56.53 LOS ALTOS HARDWARE INC 30265/1 10/09/2024 2-RUST-OLEUM WHITE CHALK… 061-4300-6399 32.71 LOS ALTOS HARDWARE INC 30321/1 10/09/2024 SITE IMPROVEMENT MATADE… 045-6900-6622 309.50 LOS ALTOS HARDWARE INC 29491/1 10/17/2024 QTR PITT NOZZLE 8/9/24 061-4300-6398 31.07 LOS ALTOS HARDWARE INC 29842/1 10/17/2024 TOWN HALL LIGHT 8/30/24 061-1480-6118 65.44 LOS ALTOS HARDWARE INC 29888/1 10/24/2024 MAINTENANCE SUPPLIES 9/3/… 061-4300-6398 43.07 LOS ALTOS HARDWARE INC 29951/1 10/24/2024 SUPPLIES FOR HOE DOWN 9/6…011-4120-6361 111.24 LOS ALTOS HARDWARE INC 30055/1 10/24/2024 MAINTENANCE TOOLS 9/13/24 061-4300-6399 623.01 LOS ALTOS HARDWARE INC 30056/1 10/24/2024 MATADERO CREEK BYRNE PR… 045-6900-6622 1,044.36 LOS ALTOS HARDWARE INC 30408/1 10/24/2024 BACK FLOW REPAIR @ EDITH … 011-5100-6122 46.39 LOS ALTOS HARDWARE INC 30437/1 10/24/2024 HAREWARE SUPPLIES 10/7/24 061-4300-6398 7.62 LOS ALTOS HARDWARE INC 30444/1 10/24/2024 SUPPLIES 10/8/24 061-4300-6398 36.81 Vendor LAHARDWARE94022 - LOS ALTOS HARDWARE INC Total: 2,464.49 Vendor: CRIER94022 - LOS ALTOS TOWN CRIER
LOS ALTOS TOWN CRIER 71714 10/17/2024 HERITAGE HOUSE UPGRADE B…041-6900-6207 525.00 Vendor CRIER94022 - LOS ALTOS TOWN CRIER Total: 525.00
Vendor: TAAM01 - MALCOLM TAAM
MALCOLM TAAM 426 10/24/2024 LOS ALTOS HILS TWN TOUCH-… 011-4120-6361 418.75 Vendor TAAM01 - MALCOLM TAAM Total: 418.75
Vendor: MATRIX94040 - MATRIX CONSULTING GROUP INC
MATRIX CONSULTING GROUP …4 10/17/2024 PATHWAY FEE NEXUS STUDY … 042-6900-6199 2,000.00 Vendor MATRIX94040 - MATRIX CONSULTING GROUP INC Total: 2,000.00 Vendor: METRO94002 - METRO MOBILE COMMUNICATIONS INC.

METRO MOBILE COMMUNICA…241032 10/09/2024 8 PROTABLE RADIOS @$21 P/… 061-4300-6362 168.00 METRO MOBILE COMMUNICA…240923 10/17/2024 8-PORTABLE RADIOS@$21 P/… 061-4300-6362 168.00 Vendor METRO94002 - METRO MOBILE COMMUNICATIONS INC. Total: 336.00 Vendor: METLIFE64180 - METROPOLITAN LIFE INSURANCE COMPANY METROPOLITAN LIFE INSURA… TS05957300 0001 10.14.24 10/24/2024 DENTAL INSURANCE 11/1/24-… 061-0000-2233 5,042.60 Vendor METLIFE64180 - METROPOLITAN LIFE INSURANCE COMPANY Total: 5,042.60 Vendor: METROPOLITAN94043 - METROPOLITAN PLANNING GROUP INC METROPOLITAN PLANNING G… 2004683 10/09/2024 PRINCIPAL PLNNER 10728 MO…011-3100-6111 292.50 METROPOLITAN PLANNING G… 2004683 10/09/2024 PRINCICAL PLANNER THRU 8/… 011-3100-6111 243.75 Vendor METROPOLITAN94043 - METROPOLITAN PLANNING GROUP INC Total: 536.25 Vendor: MILLER05 - MILLER, TIFFANY
MILLER, TIFFANY 005-03 10/24/2024 4/9/24-8/29/24 CORP/YD LCK… 041-6900-6209 11,981.25 Vendor MILLER05 - MILLER, TIFFANY Total: 11,981.25
Vendor: MIRBACH01 - MIRBACH, SUSAN OR HENRY
MIRBACH, SUSAN OR HENRY 10/22/24 10/24/2024 NEIGHBORHOOD WATCH ME… 011-2100-6199 29.01 MIRBACH, SUSAN OR HENRY 10/22/24 10/24/2024 NEIGHBORHOOD WATCH FO… 011-2100-6199 113.26 Vendor MIRBACH01 - MIRBACH, SUSAN OR HENRY Total: 142.27 Vendor: MISSION02 - MISSION VALLEY FORD
MISSION VALLEY FORD 291319 10/17/2024 CUST#3271 REPAIR KUBOTA T… 061-4300-6117 6,191.47 Vendor MISSION02 - MISSION VALLEY FORD Total: 6,191.47
Vendor: MISSION01 - MissionSquare
MissionSquare PLAN# 100276 10.4.24 10/17/2024 401 CONTRIBUTION EE & 401A…061-0000-2204 2,646.83 MissionSquare PLAN# 100316 10.4.24 10/17/2024 40E - 401A EE 41A ER MATCH … 061-0000-2204 6,631.18 MissionSquare PLAN# 304465 10.4.24 10/17/2024 ICMA 457 EE 10/4/24 061-0000-2204 10,005.16 MissionSquare PLAN 100276 10.18.24 10/24/2024 PLAN 100276 10.18.24 401 ER…061-0000-2204 2,646.83 MissionSquare PLAN 100316 10.18.24 10/24/2024 PLAN 100316 10.18.24 40E-40…061-0000-2204 5,954.30 MissionSquare PLAN 304465 10.18.24 10/24/2024 PLAN 304465 ICMA 457 EE 10… 061-0000-2204 9,217.96 Vendor MISSION01 - MissionSquare Total: 37,102.26
Vendor: MRG94526 - MUNICIPAL RESOURCE GROUP, LLC
MUNICIPAL RESOURCE GROUP…241177-1 10/09/2024 HR ON DEMAND 8/15/24 011-1400-6199 1,300.00 Vendor MRG94526 - MUNICIPAL RESOURCE GROUP, LLC Total: 1,300.00

Expense Approval Report Payment Dates: 10/1/2024 - 10/31/2024 12/2/2024 3:28:29 PM Page 7 of 16
Vendor Name Payable Number Post Date Description (Item) Account Number Amount Vendor: MUTTMITT92128 - MUTT MITT
MUTT MITT 733851 10/29/2024 DOGGIE BAGS FOR THE PARKS…011-5300-6399 633.49 Vendor MUTTMITT92128 - MUTT MITT Total: 633.49
Vendor: NBS92592 - NBS GOVERNMENT FINANCE GROUP
NBS GOVERNMENT FINANCE … 202409--3053 10/24/2024 ANNUAL FEE SEWER & EXPEN… 051-4800-6199 6,696.74 NBS GOVERNMENT FINANCE … 202409-3178 10/24/2024 PROF SVCS FR 10/1-12/31/24… 031-0100-6203 1,339.83 Vendor NBS92592 - NBS GOVERNMENT FINANCE GROUP Total: 8,036.57 Vendor: OAK95031 - OAK ALARM CO
OAK ALARM CO 28991 10/17/2024 QUARTERLY MONITORING 9/1…051-4800-6118 75.00 Vendor OAK95031 - OAK ALARM CO Total: 75.00
Vendor: OGRADY94043 - O'GRADY PAVING INC
O'GRADY PAVING INC 7943 10/09/2024 24092-2024 PAVEMENT REHA… 046-6900-6151 625,626.30 Vendor OGRADY94043 - O'GRADY PAVING INC Total: 625,626.30 Vendor: OLYMPIA01 - OLYMPIA FOOTING LLC
OLYMPIA FOOTING LLC 1598 10/24/2024 LASER LEVEL UPPER AND LOW…011-5300-6398 7,240.00 Vendor OLYMPIA01 - OLYMPIA FOOTING LLC Total: 7,240.00
Vendor: PGE95899 - P G & E
P G & E 4405682412-9 10.17.24 10/24/2024 26379 Fremont Road 9/9/24-… 011-4600-6363 100.54 P G & E 4405682412-9 10.17.24 10/24/2024 Traffic Control Service @ El M… 011-4600-6363 86.35 P G & E 4405682412-9 10.17.24 10/24/2024 Traffic Control @ Stonebrook … 011-4600-6363 64.78 P G & E 4405682412-9 10.17.24 10/24/2024 26379 Fremont Road 9/9/24-… 011-4600-6363 63.65 P G & E 4405682412-9 10.17.24 10/24/2024 Traffic Control Service @ El M… 011-4600-6363 46.45 P G & E 4405682412-9 10.17.24 10/24/2024 Traffic Control Service @ El M… 011-4600-6363 43.87 P G & E 4405682412-9 10.17.24 10/24/2024 Traffic Control @ Stonebrook … 011-4600-6363 30.75 P G & E 4405682412-9 10.17.24 10/24/2024 Traffic Control Service @ El M… 011-4600-6363 19.57 P G & E 4405682412-9 10.17.24 10/24/2024 O'Keefe Ln @ Dover Ct * 9/9/… 051-4800-6363 7.45 P G & E 4405682412-9 10.17.24 10/24/2024 28002 Purissima Rd - Lift Stati… 051-4800-6363 259.65 P G & E 4405682412-9 10.17.24 10/24/2024 28002 Purissima Rd - Lift Stati… 051-4800-6363 489.78 P G & E 4405682412-9 10.17.24 10/24/2024 O'Keefe Ln @ Dover Ct * 9/9/… 051-4800-6363 -17.11 P G & E 4405682412-9 10.17.24 10/24/2024 26379 Fremont Road - City Hal…061-1480-6363 29.12 P G & E 4405682412-9 10.17.24 10/24/2024 26379 Fremont Road 9/9/24-… 061-1480-6363 17.79 P G & E 4405682412-9 10.17.24 10/24/2024 26379 Fremont Road - City Hal…061-1480-6363 14.34 P G & E 4405682412-9 10.17.24 10/24/2024 26375 Fremont Road 9/9/24-… 061-1480-6363 10.63 P G & E 4405682412-9 10.17.24 10/24/2024 26379 Fremont Road 9/9/24-… 061-1480-6363 7.29 P G & E 4405682412-9 10.17.24 10/24/2024 26375 Fremont Road 9/9/24-… 061-1480-6363 1.46 P G & E 4405682412-9 10.17.24 10/24/2024 26379 Fremont Road -NEMEX… 061-1480-6363 1,465.48 P G & E 4405682412-9 10.17.24 10/24/2024 26375 Fremont Road - SV Cle… 061-1480-6363 778.46 P G & E 4405682412-9 10.17.24 10/24/2024 27535 Purissima Road - VISCA… 061-4300-6363 419.73 P G & E 4405682412-9 10.17.24 10/24/2024 27400 Purissima Road - Corp … 061-4300-6363 238.29 P G & E 4405682412-9 10.17.24 10/24/2024 27535 Purissima Road - VISCA… 061-4300-6363 201.60 P G & E 4405682412-9 10.17.24 10/24/2024 27400 Purissima Road - Corp … 061-4300-6363 155.20 Vendor PGE95899 - P G & E Total: 4,535.12
Vendor: PACIFIC92806 - PACIFIC PRODUCTS AND SERVICES LLC PACIFIC PRODUCTS AND SERV… 34800 10/29/2024 CROSSWALK SIGNS 10/3/24 046-6900-6622 2,438.33 Vendor PACIFIC92806 - PACIFIC PRODUCTS AND SERVICES LLC Total: 2,438.33 Vendor: PALAMERICAN33716 - PALAMERICAN SECURITY (SILICON VALLEY) INC PALAMERICAN SECURITY (SILI… 131096 10/09/2024 Residential Patrol Services 011-2100-6199 22,705.38 PALAMERICAN SECURITY (SILI… 133064 10/24/2024 Residential Patrol Services 011-2100-6199 22,635.18 Vendor PALAMERICAN33716 - PALAMERICAN SECURITY (SILICON VALLEY) INC Total: 45,340.56 Vendor: PaloAlto94306 - PALO ALTO SHELL
PALO ALTO SHELL RO#8116076 10/17/2024 2008 FORD RANGER SPORTS R…061-4400-6351 61.75 PALO ALTO SHELL RO#8116083 10/17/2024 2003 TOYOTA TUNDERA REPA…061-4400-6351 61.75 PALO ALTO SHELL RO#8116092 10/17/2024 AUTO REPAIR OF 2003 DODGE…061-4400-6318 785.53 Vendor PaloAlto94306 - PALO ALTO SHELL Total: 909.03
Vendor: PESTMASTER89511 - PESTMASTER SERVICES INC.

PESTMASTER SERVICES INC. 450128 10/17/2024 SEPTEMBER 30TH, 2024 SERVI…011-4600-6131 2,661.90 PESTMASTER SERVICES INC. 450379 10/17/2024 OCTOBER 1ST, 2024 SERVICES 011-4600-6131 2,661.90

Expense Approval Report Payment Dates: 10/1/2024 - 10/31/2024 12/2/2024 3:28:29 PM Page 8 of 16
Vendor Name Payable Number Post Date Description (Item) Account Number Amount PESTMASTER SERVICES INC. 450618 10/17/2024 OCTOBER 2ND, 2024 SERVICES 011-4600-6131 2,661.90 Vendor PESTMASTER89511 - PESTMASTER SERVICES INC. Total: 7,985.70 Vendor: PINPOINT01 - PINPOINT TALENT, LLC
PINPOINT TALENT, LLC 8370 10/09/2024 PPT TEMP SVCS MSIULANGAP… 011-1400-6111 1,831.50 PINPOINT TALENT, LLC 8392 10/09/2024 PPT TEMP SVCS MSIULANGAP… 011-1400-6111 1,980.00 PINPOINT TALENT, LLC 8420 10/24/2024 PPT TEMP SVCS MSIULANGAP… 011-1400-6111 1,980.00 PINPOINT TALENT, LLC 8443 10/24/2024 PPT TEMP SVCS MSIULANGAP… 011-1400-6111 1,584.00 Vendor PINPOINT01 - PINPOINT TALENT, LLC Total: 7,375.50 Vendor: PITNEY15250 - PITNEY BOWES INC
PITNEY BOWES INC 1096-1328 10.13.24 10/24/2024 #8000-9000-1096-1328 METE… 061-1480-6303 200.00 Vendor PITNEY15250 - PITNEY BOWES INC Total: 200.00
Vendor: V0980 - PURISSIMA HILLS WATER
PURISSIMA HILLS WATER SEPT2024-2493 10/09/2024 Stonebrook Ave @ El Monte 061-4300-6364 205.00 PURISSIMA HILLS WATER SEPT2024-2496 10/09/2024 26379 Fremont Road - LAH- 061-1480-6364 283.75 PURISSIMA HILLS WATER SEPT2024-2497 10/09/2024 26379 Fremont Road - Irrigati… 061-1480-6364 299.50 PURISSIMA HILLS WATER SEPT2024-2498 10/09/2024 26379 Fremont Road - Heritag…061-1480-6364 112.88 PURISSIMA HILLS WATER SEPT2024-2500 10/09/2024 Little League Field-SEPT2024-… 011-5100-6364 9,012.70 PURISSIMA HILLS WATER SEPT2024-3112 10/09/2024 Elena & Purissima Sewer Lift S…051-4800-6364 38.23 PURISSIMA HILLS WATER SEPT2024-3760 10/09/2024 26379 Fremont Road-Recreati…061-1480-6364 38.23 PURISSIMA HILLS WATER SEPT2024-4523 10/09/2024 Fremont Road pathway irrigat…011-4740-6364 11.52 PURISSIMA HILLS WATER SEPT2024-4643 10/09/2024 Arastradero C2 Pathway Irrigat…011-4740-6364 38.23 PURISSIMA HILLS WATER 0117 10/29/2024 BACKFLOW TESTING FEE 7/3/… 011-4740-6364 188.00 Vendor V0980 - PURISSIMA HILLS WATER Total: 10,228.04
Vendor: REDWOOD94607 - REDWOOD PUBLIC LAW, LLP
REDWOOD PUBLIC LAW, LLP 12210 10/24/2024 LABOR&EMPLOYMENT LEGAL …011-1500-6112 3,353.68 REDWOOD PUBLIC LAW, LLP 12211 10/24/2024 LAHCF FRANCHISE/BROADBA… 011-1500-6112 2,248.49 REDWOOD PUBLIC LAW, LLP 12212 10/24/2024 Monthly Basic General Counse…011-1500-6201 13,465.00 REDWOOD PUBLIC LAW, LLP 12213 10/24/2024 PUBLIC WORKS CONTRACT RE… 041-6900-6209 114.33 Vendor REDWOOD94607 - REDWOOD PUBLIC LAW, LLP Total: 19,181.50 Vendor: WONG07 - RHONDA WONG
RHONDA WONG 10.22.24 10/29/2024 NEIGHBORHOOD WATCH FO… 011-2100-6199 44.85 Vendor WONG07 - RHONDA WONG Total: 44.85
Vendor: SRROSE95030 - S.R.ROSE ENGINEERING INC
S.R.ROSE ENGINEERING INC LAH-109 10/29/2024 PROJ MGMT ARPA-BRADBAND…041-6900-6199 5,520.50 S.R.ROSE ENGINEERING INC LAH-110 10/29/2024 PRJ MGMT EL MONTE FIRE ST… 041-6900-6199 5,691.00 Vendor SRROSE95030 - S.R.ROSE ENGINEERING INC Total: 11,211.50 Vendor: SCCSHERIFF - SANTA CLARA COUNTY SHERIFF'S DEPT
SANTA CLARA COUNTY SHERI… 1800091218 10/09/2024 SERVICES FOR OCT - 2024 011-2100-6152 221,319.00 Vendor SCCSHERIFF - SANTA CLARA COUNTY SHERIFF'S DEPT Total: 221,319.00 Vendor: SHARP91185 - SHARP BUSINESS SYSTEMS
SHARP BUSINESS SYSTEMS 9005040304 10/09/2024 #102455826 &103050113 BW…061-1480-6402 710.28 Vendor SHARP91185 - SHARP BUSINESS SYSTEMS Total: 710.28 Vendor: SIERRA95009 - SIERRA PACIFIC TURF SUPPLY INC
SIERRA PACIFIC TURF SUPPLY … 01016271 10/17/2024 SEEDS&FERTILIZER FOR PURIS… 011-5300-6122 5,443.13 Vendor SIERRA95009 - SIERRA PACIFIC TURF SUPPLY INC Total: 5,443.13 Vendor: SMELLY01 - SMELLY MEL'S PLUMBING INC.

SMELLY MEL'S PLUMBING INC. 43953973 10/17/2024 EMERGENCY REPLACEMENT O…011-5300-6118 1,500.00 Vendor SMELLY01 - SMELLY MEL'S PLUMBING INC. Total: 1,500.00 Vendor: STAPLES30348 - STAPLES BUSINESS CREDIT
STAPLES BUSINESS CREDIT 7639722954-000-001 10/09/2024 HOUSEKEEPING SUPPLIES 9/2… 061-1480-6398 207.87 STAPLES BUSINESS CREDIT 7639722954-000-002 10/09/2024 HOUSEKEEPING SUPPLEIS 9/2… 061-1480-6398 11.01 STAPLES BUSINESS CREDIT 7639722954-001-001 10/09/2024 HOUSEKEEPING SUPPLIES 9/2… 061-1480-6398 -4.58 STAPLES BUSINESS CREDIT 7639778456-000-001 10/09/2024 OFFICE SUPPLEIS 9/25/24 061-1480-6301 33.37 STAPLES BUSINESS CREDIT 7639855192-000-001 10/09/2024 OFFICE SUPPLIES 9/25/24 061-1480-6301 133.48 STAPLES BUSINESS CREDIT 7639952307-000-001 10/09/2024 OFFICE SUPPLIES 9/25/24 061-1480-6301 20.94 STAPLES BUSINESS CREDIT 7639952307-000-002 10/09/2024 OFFICE SUPPLIES 9/25/24 061-1480-6301 210.04 STAPLES BUSINESS CREDIT 7639952307-000-003 10/09/2024 OFFICE SUPPLIES 9/25/24 061-1480-6301 27.28

Expense Approval Report Payment Dates: 10/1/2024 - 10/31/2024 12/2/2024 3:28:29 PM Page 9 of 16
Vendor Name Payable Number Post Date Description (Item) Account Number Amount STAPLES BUSINESS CREDIT 7639952307-001-001 10/09/2024 OFFICE SUPPLIES 9/25/24 061-1480-6301 -1.57 STAPLES BUSINESS CREDIT 7639952307-002-001 10/09/2024 OFFICE SUPPLIES 9/25/24 061-1480-6301 -2.07 STAPLES BUSINESS CREDIT 7640105249-000-001 10/09/2024 OFFICE SUPPLEIS 9/25/24 061-1480-6301 55.62 STAPLES BUSINESS CREDIT 7640237858-000-001 10/09/2024 OFFICE SUPPLIES 9/25/24 061-1480-6301 69.50 STAPLES BUSINESS CREDIT 7640237858-000-002 10/09/2024 OFFICE SUPPLIES 9/25/24 061-1480-6301 13.96 STAPLES BUSINESS CREDIT 7640237858-001-001 10/09/2024 OFFICE SUPPLEIS 9/25/24 061-1480-6301 -6.65 STAPLES BUSINESS CREDIT 7640237858-002-001 10/09/2024 OFFICE SUPPLEIS 9/25/24 061-1480-6301 -1.72 STAPLES BUSINESS CREDIT 7640237858-003-001 10/09/2024 OFFICE SUPPLEIS 9/25/24 061-1480-6301 -2.42 STAPLES BUSINESS CREDIT 7641001554-000-001 10/09/2024 OFFICE SUPPLIES 9/25/24 061-1480-6301 204.82 STAPLES BUSINESS CREDIT 7641001554-001-001 10/09/2024 OFFICE SUPPLEIS 9/25/24 061-1480-6301 -7.19 STAPLES BUSINESS CREDIT 7641211295-000-001 10/09/2024 OFFICE SUPPLIES 9/25/24 011-1400-6301 58.58 STAPLES BUSINESS CREDIT 7641528662-000-001 10/09/2024 OFFICE SUPPLIES 9/25/24 061-1480-6301 595.40 STAPLES BUSINESS CREDIT 7907378202-001-001 10/09/2024 OFFICE SUPPLIES 9/25/24 061-1480-6301 -1.77 STAPLES BUSINESS CREDIT 7907378202-002-001 10/09/2024 OFFICE SUPPLIES 9/25/24 061-1480-6301 -10.28 STAPLES BUSINESS CREDIT 7907378202-003-001 10/09/2024 OFFICE SUPPLEIS 9/25/24 061-1480-6301 -1.24 Vendor STAPLES30348 - STAPLES BUSINESS CREDIT Total: 1,602.38 Vendor: STATCOMM01 - STATCOMM INC
STATCOMM INC 12622505 10/17/2024 INSP-FIREALARM&ANNUAL W…061-1480-6118 1,778.00 STATCOMM INC 12635090 10/24/2024 QTRLY ALARM MONITORING … 061-4300-6118 111.00 Vendor STATCOMM01 - STATCOMM INC Total: 1,889.00
Vendor: STEVENS95014 - STEVENS CREEK QUARRY
STEVENS CREEK QUARRY 4528 10/09/2024 LAHHA RIDING AREA @ PURI… 011-5300-6399 4,686.77 Vendor STEVENS95014 - STEVENS CREEK QUARRY Total: 4,686.77 Vendor: SUN64180 - SUN LIFE
SUN LIFE 925773-0001 10.17.24 10/24/2024 EMPLOYEE AD&D 11/1/24-11… 061-0000-2225 117.61 SUN LIFE 925773-0001 10.17.24 10/24/2024 EMPLOYEE LIFE 11/1/24-11/3… 061-0000-2225 911.46 SUN LIFE 925773-0001 10.17.24 10/24/2024 EMPLOYEE LONG TERM DISAB…061-0000-2226 1,416.38 Vendor SUN64180 - SUN LIFE Total: 2,445.45
Vendor: SUPERION60693 - SUPERION, LLC
SUPERION, LLC 418088 10/09/2024 ANNUAL ACCESS FEE 8/16/24 011-3200-6338 3,500.00 Vendor SUPERION60693 - SUPERION, LLC Total: 3,500.00
Vendor: CAIRNS02 - SUZANNE CAIRNS
SUZANNE CAIRNS 10.22.24 10/29/2024 NEIGHBORHOOD WATCH FO… 011-2100-6199 30.00 Vendor CAIRNS02 - SUZANNE CAIRNS Total: 30.00
Vendor: TENZING01 - TENZING, TERRY
TENZING, TERRY 10/7/24 10/24/2024 3 PONIES& MEDIUM PETTING …011-4120-6361 2,820.00 Vendor TENZING01 - TENZING, TERRY Total: 2,820.00
Vendor: THEKPA94566 - THE KPA GROUP
THE KPA GROUP H007 10/29/2024 HERITAGE HOUSE REMODEL 8…041-6900-6209 20,599.75 Vendor THEKPA94566 - THE KPA GROUP Total: 20,599.75
Vendor: TRAFFIC02 - TRAFFIC PATTERNS LLC
TRAFFIC PATTERNS LLC JULY-SEPT 2024 10/24/2024 PROFESSIONAL SERVICES 7/1/… 011-1400-6199 2,569.00 Vendor TRAFFIC02 - TRAFFIC PATTERNS LLC Total: 2,569.00 Vendor: TRIPEPI01 - TRIPEPI, SMITH AND ASSOCIATES, INC
TRIPEPI, SMITH AND ASSOCIA… 13362 10/24/2024 Communication and Graphic … 011-1100-6199 2,637.50 TRIPEPI, SMITH AND ASSOCIA… 13328 10/29/2024 GENERAL ACCT SUPPT&GRAP… 041-6900-6205 465.00 Vendor TRIPEPI01 - TRIPEPI, SMITH AND ASSOCIATES, INC Total: 3,102.50 Vendor: UNITED85072 - UNITED SITE SERVICES INC
UNITED SITE SERVICES INC INV-4830405 10/09/2024 RENTAL CHRGE SVCS EVERY 4… 011-5300-6398 64.92 Vendor UNITED85072 - UNITED SITE SERVICES INC Total: 64.92 Vendor: USBANK63179 - US BANK EQUIPMENT FINANCE
US BANK EQUIPMENT FINANCE 539710160 10/09/2024 POOL5 B&W 500-0698340-000…061-1480-6402 1,331.78 Vendor USBANK63179 - US BANK EQUIPMENT FINANCE Total: 1,331.78 Vendor: VALLEY94139 - VALLEY OIL COMPANY
VALLEY OIL COMPANY 202485 10/17/2024 FLEET FUEL 8/19/24 061-4400-6342 1,793.59

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Vendor Name Payable Number Post Date Description (Item) Account Number Amount VALLEY OIL COMPANY 26045 10/29/2024 FLEET FUEL 10/10/24 061-4400-6342 1,951.39 Vendor VALLEY94139 - VALLEY OIL COMPANY Total: 3,744.98 Vendor: VDE94041 - VICTORIA DYE EQUESTRIAN, LLC
VICTORIA DYE EQUESTRIAN, L… 10.2.24 10/09/2024 WestWind Barn Management …011-5300-6199 3,300.00 VICTORIA DYE EQUESTRIAN, L… 9.2.24 10/09/2024 WestWind Barn Management …011-5300-6199 3,300.00 VICTORIA DYE EQUESTRIAN, L… 13596 10/24/2024 WATER REIMB SVCS 8/1/24 - … 011-5300-6364 1,617.74 VICTORIA DYE EQUESTRIAN, L… 13602 10/29/2024 WATER REIMB SVCS 9/1-30/24…011-5300-6364 1,263.37 Vendor VDE94041 - VICTORIA DYE EQUESTRIAN, LLC Total: 9,481.11 Vendor: VSP94145 - VISION SERVICE PLAN INSURANCE CO
VISION SERVICE PLAN INSURA… 821511490 10.19.24 10/24/2024 VISION PLAN COVERAGE FOR … 061-0000-2233 512.15 Vendor VSP94145 - VISION SERVICE PLAN INSURANCE CO Total: 512.15 Vendor: WLI01 - Weiwen Li
Weiwen Li 10.19.24 10/29/2024 COSTUME GAME NIGHT P&R … 011-1700-6209 65.15 Vendor WLI01 - Weiwen Li Total: 65.15
Vendor: WF_VISA60197 - WELLS FARGO - VISA
WELLS FARGO - VISA 6429 10.3.24 10/03/2024 SOUTHWEST FLIGHT MSA CO… 061-4300-6308 84.96 WELLS FARGO - VISA 6429 10.3.24 10/03/2024 HUMANTIX MSA CONFERENCE…061-4300-6308 300.00 WELLS FARGO - VISA 6429 10.3.24 10/03/2024 EBAY REPLACEMENT STROBE … 061-4300-6351 27.27 WELLS FARGO - VISA 7986 10.3.24 10/03/2024 STARBUCKS MANAGEMENT T… 011-1100-6308 22.00 WELLS FARGO - VISA 7986 10.3.24 10/03/2024 SAFEWAY MANAGEMENT TE… 011-1100-6308 50.29 WELLS FARGO - VISA 7986 10.3.24 10/03/2024 MICHAELS FRAME FOR PROCL… 011-1100-6398 43.64 WELLS FARGO - VISA 7986 10.3.24 10/03/2024 STARLINK EMERGENCY PREPA… 011-1200-6199 120.00 WELLS FARGO - VISA 7986 10.3.24 10/03/2024 AMAZON OFFICE SUPPLIES 011-1200-6301 42.16 WELLS FARGO - VISA 7986 10.3.24 10/03/2024 AMAZON OFFICE SUPPLIES 011-1200-6301 15.27 WELLS FARGO - VISA 7986 10.3.24 10/03/2024 MARRIOTT CONFERENCE HOT… 011-1200-6308 1,133.50 WELLS FARGO - VISA 7986 10.3.24 10/03/2024 ROSEWATER DINNER CONFER… 011-1200-6308 46.00 WELLS FARGO - VISA 7986 10.3.24 10/03/2024 BEERCODE BREAKFAST CONE… 011-1200-6308 53.98 WELLS FARGO - VISA 7986 10.3.24 10/03/2024 UBER CONFERENCE TRAVEL 011-1200-6308 51.42 WELLS FARGO - VISA 7986 10.3.24 10/03/2024 UBER CONFERENCE TRAVEL 011-1200-6308 58.94 WELLS FARGO - VISA 7986 10.3.24 10/03/2024 BARCELONA PITTSBURGH DIN… 011-1200-6308 55.31 WELLS FARGO - VISA 7986 10.3.24 10/03/2024 WILLIAM PENN DINNER - CON…011-1200-6308 40.87 WELLS FARGO - VISA 7986 10.3.24 10/03/2024 COURTYARD PITTSBURGH BR… 011-1200-6308 29.69 WELLS FARGO - VISA 7986 10.3.24 10/03/2024 LADLES&LEAF BREAKFAST-CO… 011-1200-6308 24.98 WELLS FARGO - VISA 7986 10.3.24 10/03/2024 PIZZA PARMA DINNER CONFE… 011-1200-6308 17.03 WELLS FARGO - VISA 7986 10.3.24 10/03/2024 JIMMY JOHNS LUNCH - CONF… 011-1200-6308 15.07 WELLS FARGO - VISA 7986 10.3.24 10/03/2024 THE PENNSYLVANIA LUNCH C… 011-1200-6308 14.77 WELLS FARGO - VISA 7986 10.3.24 10/03/2024 UBER CONFERENCE TRAVEL 011-1200-6308 10.93 WELLS FARGO - VISA 7986 10.3.24 10/03/2024 PIZZA BOSA LUNCH-CONFERE… 011-1200-6308 10.59 WELLS FARGO - VISA 7986 10.3.24 10/03/2024 UNITED AIRLINE CREDIT (SEE … 011-1200-6308 -16.00 WELLS FARGO - VISA 7986 10.3.24 10/03/2024 CAL-ICMA NETWORKING EVE… 011-1200-6308 65.00 WELLS FARGO - VISA 7986 10.3.24 10/03/2024 THE POST CLERKS OFFICE TE… 011-1300-6398 128.56 WELLS FARGO - VISA 7986 10.3.24 10/03/2024 HULU EMERGENCY PREPARE… 011-2100-6199 81.99 WELLS FARGO - VISA 8455 10.3.24 10/03/2024 CPRS CONFERENCE 011-1000-6302 495.00 WELLS FARGO - VISA 8455 10.3.24 10/03/2024 AMAZON POWER CORD FOR S…011-1000-6398 11.99 WELLS FARGO - VISA 8455 10.3.24 10/03/2024 AMAZON POPCORN BAGS 011-1700-6209 38.18 WELLS FARGO - VISA 8455 10.3.24 10/03/2024 SAFEWAY 1ST YOUTH COMMI… 011-1700-6209 22.99 WELLS FARGO - VISA 8455 10.3.24 10/03/2024 DE MARTINI ORCHARD APPLES…011-4120-6361 220.00 WELLS FARGO - VISA 8455 10.3.24 10/03/2024 RONJEN WASH N FOLD HOED… 011-4120-6361 213.15 WELLS FARGO - VISA 8455 10.3.24 10/03/2024 HAPPY DONUTS TOUCH A TR… 011-4120-6361 108.15 WELLS FARGO - VISA 8455 10.3.24 10/03/2024 CAPELO'S BBQ HOEDOWN FO… 011-4120-6361 102.48 WELLS FARGO - VISA 8455 10.3.24 10/03/2024 SMART & FINAL POPCORN 011-4120-6361 98.97 WELLS FARGO - VISA 8455 10.3.24 10/03/2024 MICHAELS HOEDOWN FLOWE… 011-4120-6361 79.68 WELLS FARGO - VISA 8455 10.3.24 10/03/2024 FACEBOOK HOEDOWN AD 011-4120-6361 63.12 WELLS FARGO - VISA 8455 10.3.24 10/03/2024 WALMART.COM RETURN UN… 011-4120-6361 -21.90 WELLS FARGO - VISA 8455 10.3.24 10/03/2024 DOLLAR TREE HOEDOWN CRA… 011-4120-6361 27.54 WELLS FARGO - VISA 8455 10.3.24 10/03/2024 WALMART.COM RETURN UN… 011-4120-6361 -56.56 WELLS FARGO - VISA 8455 10.3.24 10/03/2024 COOKIESNCREAM HOEDOWN …011-4120-6361 25.24 WELLS FARGO - VISA 8455 10.3.24 10/03/2024 L/ALTOS PARADE.COMPARTIC… 011-4120-6361 400.00 WELLS FARGO - VISA 8455 10.3.24 10/03/2024 FACEBOOK HOEDOWN AD 011-4120-6361 3.40

Expense Approval Report Payment Dates: 10/1/2024 - 10/31/2024 12/2/2024 3:28:29 PM Page 11 of 16
Vendor Name Payable Number Post Date Description (Item) Account Number Amount WELLS FARGO - VISA 8455 10.3.24 10/03/2024 WALMART.COM RETUN-UNU… 011-4120-6361 -6.84 WELLS FARGO - VISA 8455 10.3.24 10/03/2024 WAL-MART HOEDOWN CRAFT…011-4120-6361 42.11 WELLS FARGO - VISA 8455 10.3.24 10/03/2024 WAL-MART RETURN UNUSED … 011-4120-6361 -36.98 WELLS FARGO - VISA 8455 10.3.24 10/03/2024 SAFEWAY MONTHLY CAKE FR … 061-1480-6361 38.99 WELLS FARGO - VISA 8711 10.3.24 10/03/2024 PHO CABIN TRAVEL MEETING … 011-1200-6308 48.37 WELLS FARGO - VISA 8711 10.3.24 10/03/2024 ICMA ONLINE T/MEETING CO… 011-1200-6308 55.00 WELLS FARGO - VISA 8711 10.3.24 10/03/2024 PITTSBURG MIRRIOT CITY CTR… 011-1200-6308 1,151.47 WELLS FARGO - VISA 8711 10.3.24 10/03/2024 HILTON TRAVEL MEETINGS:H… 011-1200-6308 334.29 WELLS FARGO - VISA 8711 10.3.24 10/03/2024 SOUTHWEST AIRLINES T/MEET…011-1200-6308 227.96 WELLS FARGO - VISA 8711 10.3.24 10/03/2024 UNITED AIRLINES T/MEETING … 011-1200-6308 159.99 WELLS FARGO - VISA 8711 10.3.24 10/03/2024 SFO PARKING T/MEETING L/T… 011-1200-6308 145.00 WELLS FARGO - VISA 8711 10.3.24 10/03/2024 THE SPECKLED EGG, PITTSGU… 011-1200-6308 79.94 WELLS FARGO - VISA 8711 10.3.24 10/03/2024 PHO CABIN, LOS ALTOS CA TR… 011-1200-6308 67.26 WELLS FARGO - VISA 8711 10.3.24 10/03/2024 TERMINAL A PARKING, SJ AIR… 011-1200-6308 60.00 WELLS FARGO - VISA 8711 10.3.24 10/03/2024 HUDSON NEWS, SJ AIRPORT T… 011-1200-6308 5.24 WELLS FARGO - VISA 8711 10.3.24 10/03/2024 DISTRICT MKT, SF CA T/MEETI… 011-1200-6308 48.72 WELLS FARGO - VISA 8711 10.3.24 10/03/2024 WESTIN PITTS COFFEE, PITTS… 011-1200-6308 5.46 WELLS FARGO - VISA 8711 10.3.24 10/03/2024 PHO CABIN LOS ALTO CA TRA… 011-1200-6308 45.80 WELLS FARGO - VISA 8711 10.3.24 10/03/2024 PHO CABIN LOS ALTOS CA TR… 011-1200-6308 44.50 WELLS FARGO - VISA 8711 10.3.24 10/03/2024 UBER TRAVE&MEETING IN-FL… 011-1200-6308 37.94 WELLS FARGO - VISA 8711 10.3.24 10/03/2024 COURTYARD, PITTSBURGH PA …011-1200-6308 29.96 WELLS FARGO - VISA 8711 10.3.24 10/03/2024 U/AIRLINES T/MEETING PRI/B… 011-1200-6308 24.00 WELLS FARGO - VISA 8711 10.3.24 10/03/2024 THE COFFEE VILL PITTSBURG … 011-1200-6308 15.12 WELLS FARGO - VISA 8711 10.3.24 10/03/2024 U/AIRLINES T/MEETING IN-FLI… 011-1200-6308 10.00 WELLS FARGO - VISA 8711 10.3.24 10/03/2024 U/AIRLINES T/MEETING IN-FLI… 011-1200-6308 10.00 WELLS FARGO - VISA 8711 10.3.24 10/03/2024 SOUTHWEST AIRLINES TRAVE… 011-1200-6308 8.00 WELLS FARGO - VISA 8711 10.3.24 10/03/2024 PHO CABIN LOS ALTOS CA TR… 011-1200-6308 45.80 WELLS FARGO - VISA 8711 10.3.24 10/03/2024 OPENAI; CHAT GPT SUSCRIPTI… 011-1200-6338 20.00 WELLS FARGO - VISA 8836 10.3.24 10/03/2024 SANTOUKA SJ MISTAKE-PERS… 011-3300-6308 37.08 WELLS FARGO - VISA 8836 10.3.24 10/03/2024 PAYPAL-ASCE SJ APWA/ASCE … 011-3300-6308 100.00 WELLS FARGO - VISA 8836 10.3.24 10/03/2024 POMPEI RISTORANTE TEAM L… 011-3300-6308 252.84 WELLS FARGO - VISA 8836 10.3.24 10/03/2024 DOORDASH-CHIPOTLE MONT… 011-3300-6308 281.54 WELLS FARGO - VISA 9636 10.3.24 10/03/2024 SAFEWAY TRAVEL&MEETING C…011-1100-6308 9.98 WELLS FARGO - VISA 9636 10.3.24 10/03/2024 REDWOOD GRILL TRAVEL&ME…011-1100-6308 406.78 WELLS FARGO - VISA 9636 10.3.24 10/03/2024 CAFE NUR TRAVEL&MEETING … 011-1100-6308 260.85 WELLS FARGO - VISA 9636 10.3.24 10/03/2024 LEAGUES OF CA CITIES T/MTG… 011-1100-6309 225.00 WELLS FARGO - VISA 9636 10.3.24 10/03/2024 HOBBY LOBBY SPECIAL EVENT… 011-1100-6361 4.37 WELLS FARGO - VISA 9636 10.3.24 10/03/2024 SAFEWAY SPECIAL EVEN&AW… 011-1100-6361 11.82 WELLS FARGO - VISA 9636 10.3.24 10/03/2024 MICHAELS STORES SPECIAL EV…011-1100-6361 50.34 WELLS FARGO - VISA 9636 10.3.24 10/03/2024 FLOWERS.COM SPECIAL EVEN… 011-1100-6361 174.60 WELLS FARGO - VISA 9636 10.3.24 10/03/2024 CAFE NUR T/MTG CITY MGR … 011-1200-6361 287.40 WELLS FARGO - VISA 9636 10.3.24 10/03/2024 URFA BISTRO T/MTG MONTH… 011-1300-6308 67.84 WELLS FARGO - VISA 9636 10.3.24 10/03/2024 SANTA CLARA RECORDER CITY…011-1300-6399 27.50 WELLS FARGO - VISA 9636 10.3.24 10/03/2024 STROYGROUP.COM FIN&ADM…011-1400-6301 528.34 WELLS FARGO - VISA 9636 10.3.24 10/03/2024 SAFEWAY TRAVEL MEETING P… 011-3100-6308 42.85 WELLS FARGO - VISA 9636 10.3.24 10/03/2024 SOUTHWEST AIRLINES TRAVE… 011-3100-6308 276.96 WELLS FARGO - VISA 9636 10.3.24 10/03/2024 DOORDASH T/MTG PLANNING…011-3110-6308 274.14 WELLS FARGO - VISA 9636 10.3.24 10/03/2024 DOORDASH MENDOCINO FA… 011-3110-6308 250.01 WELLS FARGO - VISA 9636 10.3.24 10/03/2024 OCCUSCREEN LLC TOWN REC… 061-1480-6332 76.00 WELLS FARGO - VISA 9636 10.3.24 10/03/2024 BASKIN ROBINS SPECIAL EVEN…061-1480-6361 71.99 WELLS FARGO - VISA 9636 10.3.24 10/03/2024 TONY'S COFFEE TOWN CENTE… 061-1480-6398 87.00 WELLS FARGO - VISA 9636 10.3.24 10/03/2024 TONY'S COFFEE TOWN CENTE… 061-1480-6398 82.80 WELLS FARGO - VISA 9636 10.3.24 10/03/2024 SAFEWAY TOWN CENTER; OT… 061-1480-6398 54.92 Vendor WF_VISA60197 - WELLS FARGO - VISA Total: 11,019.70 Vendor: WESTBAY94025 - WEST BAY SANITARY DISTRICT
WEST BAY SANITARY DISTRICT 2024/25-009 10/24/2024 Sewer Maintenance 051-4800-6140 57,144.74 WEST BAY SANITARY DISTRICT 2024/25-029 10/24/2024 Sewer Maintenance 051-4800-6140 35,444.32 Vendor WESTBAY94025 - WEST BAY SANITARY DISTRICT Total: 92,589.06

Expense Approval Report Payment Dates: 10/1/2024 - 10/31/2024 12/2/2024 3:28:29 PM Page 12 of 16
Vendor Name Payable Number Post Date Description (Item) Account Number Amount Vendor: ZUNINO01 - ZUNINO, VINCE
ZUNINO, VINCE 10.2.24 10/09/2024 PUMPKIN FOR TOWN HALL 10…011-4120-6398 500.00 Vendor ZUNINO01 - ZUNINO, VINCE Total: 500.00
Grand Total: 1,746,939.79

Expense Approval Report Payment Dates: 10/1/2024 - 10/31/2024 12/2/2024 3:28:29 PM Page 13 of 16
Report Summary
Fund Summary
Fund Payment Amount
011 - GENERAL FUND 615,341.83
031 - SEWER ASSESSMENT DISTRICT 1,339.83
041 - GENERAL CIP FUND 112,251.46
042 - PATHWAYS CIP 2,000.00
045 - DRAINAGE CIP 4,543.86
046 - STREET CIP 628,064.63
048 - SEWER FUND CIP 1,240.00
051 - SEWER FUND 269,968.31
061 - GENERAL SERVICE FUND 112,189.87
Grand Total: 1,746,939.79
Account Summary
Account Number Account Name Payment Amount
011-0000-1110 Receivable - Miscellaneo… 5,697.22
011-0000-2301 Planning Deposits 71,941.40
011-0000-4685 Administrative Charge -4,560.40
011-1000-6302 City Membership 495.00
011-1000-6362 Telephone 50.13
011-1000-6398 Other General Expense 11.99
011-1100-6199 Other Contract Services 2,637.50
011-1100-6304 Printing, copying & scann… 6,250.00
011-1100-6308 Travel & Meetings 749.90
011-1100-6309 Instruction & Training 225.00
011-1100-6361 Special Events & Awards 241.13
011-1100-6398 Other General Expense 43.64
011-1200-6199 Other Contract Services 120.00
011-1200-6301 Office Supplies 57.43
011-1200-6308 Travel & Meetings 4,271.90
011-1200-6338 Data Service Subscriptio… 20.00
011-1200-6361 Special Events & Awards 287.40
011-1200-6362 Telephone 180.74
011-1200-6398 Other General Expense 1,320.33
011-1300-6209 Other Program & Proj C… 543.34
011-1300-6308 Travel & Meetings 67.84
011-1300-6309 Instruction & Training 60.00
011-1300-6362 Telephone 100.26
011-1300-6398 Other General Expense 128.56
011-1300-6399 Other Supplies/Materials 27.50
011-1400-6111 Contract Personnel 7,375.50
011-1400-6199 Other Contract Services 16,309.61
011-1400-6301 Office Supplies 586.92
011-1400-6362 Telephone 183.18
011-1500-6112 Legal - Special Projects 5,602.17
011-1500-6201 Legal - City Attorney 13,465.00
011-1700-6209 Other Program & Proj C… 810.09
011-1700-6340 Grants & Subsidies 3,000.00
011-2100-6152 Law Enforcement 221,319.00
011-2100-6199 Other Contract Services 45,639.67
011-2100-6362 Telephone 271.61
011-2100-6399 Other Supplies/Materials 546.00
011-3100-6111 Contract Personnel 7,440.25
011-3100-6308 Travel & Meetings 319.81
011-3100-6313 Computer Software 7,650.00
011-3100-6338 Data Service Subscriptio… 106.09
011-3100-6362 Telephone 140.50
011-3110-6308 Travel & Meetings 524.15
011-3110-6398 Other General Expense 6,018.02

Expense Approval Report Payment Dates: 10/1/2024 - 10/31/2024 12/2/2024 3:28:29 PM Page 14 of 16
Account Summary
Account Number Account Name Payment Amount
011-3120-6111 Contract Personnel 8,418.50
011-3200-6114 Contract Plan Checks 44,270.85
011-3200-6199 Other Contract Services 57,344.00
011-3200-6338 Data Service Subscriptio… 3,606.09
011-3200-6362 Telephone 90.37
011-3210-6111 Contract Personnel 12,204.00
011-3300-4705 Engineer's Charges - Con… -65,401.00
011-3300-6175 Contract Services - Billab… 61,875.00
011-3300-6179 Engineering Chrgs - Billab… 1,546.00
011-3300-6308 Travel & Meetings 671.46
011-3300-6362 Telephone 271.11
011-4120-6361 Special Events & Awards 4,890.46
011-4120-6398 Other General Expense 500.00
011-4600-6131 Weed Spraying 7,985.70
011-4600-6145 Traffic Signal Maintenan… 74.86
011-4600-6149 Street Maintenance 281.17
011-4600-6363 Electric 455.96
011-4740-6125 Pathways Maintenance 4,700.00
011-4740-6364 Water 237.75
011-5100-6118 Facility Maint & Security 100.19
011-5100-6122 Lawncare/Landscaping 896.39
011-5100-6123 Housekeeping 630.00
011-5100-6130 Pest Control 650.00
011-5100-6364 Water 9,422.14
011-5300-6118 Facility Maint & Security 1,500.00
011-5300-6122 Lawncare/Landscaping 7,249.87
011-5300-6123 Housekeeping 430.00
011-5300-6199 Other Contract Services 6,600.00
011-5300-6362 Telephone 59.29
011-5300-6364 Water 2,881.11
011-5300-6398 Other General Expense 7,304.92
011-5300-6399 Other Supplies/Materials 5,320.26
031-0100-6203 Audit & Financial 1,339.83
041-6900-6199 Other Contract Services 31,632.12
041-6900-6205 Architectural & Design 1,561.04
041-6900-6206 Engineering Consultants 45,547.97
041-6900-6207 Advertising/Publishing 525.00
041-6900-6209 Other Program & Proj C… 32,695.33
041-6900-6502 Non-Capital Office Mach… 290.00
042-6900-6199 Other Contract Services 2,000.00
045-6900-6206 Engineering Consultants 3,190.00
045-6900-6622 Site Improvements 1,353.86
046-6900-6151 Street Construction Cont… 625,626.30
046-6900-6622 Site Improvements 2,438.33
048-6900-6206 Engineering Consultants 1,240.00
051-4800-6118 Facility Maint & Security 75.00
051-4800-6120 Los Altos Treatment Plant 169,738.05
051-4800-6140 Sewer Maintenance Wo… 92,589.06
051-4800-6199 Other Contract Services 6,696.74
051-4800-6362 Telephone 91.46
051-4800-6363 Electric 739.77
051-4800-6364 Water 38.23
061-0000-2204 Deferred Comp Payable 37,102.26
061-0000-2225 Life Insurance Payable 1,029.07
061-0000-2226 Long Term Disability Pay… 1,416.38
061-0000-2233 Dental & Vision Insuranc… 5,554.75
061-1480-6111 Contract Personnel 13,165.00
061-1480-6118 Facility Maint & Security 2,280.52

Expense Approval Report Payment Dates: 10/1/2024 - 10/31/2024 12/2/2024 3:28:29 PM Page 15 of 16
Account Summary
Account Number Account Name Payment Amount
061-1480-6122 Lawncare/Landscaping 1,250.00
061-1480-6123 Housekeeping 5,061.63
061-1480-6210 Website Program/Maint… 14,042.03
061-1480-6301 Office Supplies 1,329.50
061-1480-6303 Postage 200.00
061-1480-6310 On-Line Service 1,167.46
061-1480-6323 Disposal Services 950.62
061-1480-6332 Town Recruitment 76.00
061-1480-6361 Special Events & Awards 110.98
061-1480-6362 Telephone 1,557.30
061-1480-6363 Electric 2,324.57
061-1480-6364 Water 734.36
061-1480-6398 Other General Expense 587.27
061-1480-6402 Office Mach & Furniture… 2,042.06
061-1480-6503 Non-Capital Computer E… 530.34
061-4300-6117 Equipment Maint & Repa… 6,191.47
061-4300-6118 Facility Maint & Security 251.00
061-4300-6123 Housekeeping 669.13
061-4300-6308 Travel & Meetings 384.96
061-4300-6324 Uniforms 1,414.37
061-4300-6325 Safety Gear 1,050.00
061-4300-6342 Gas and Oil 39.58
061-4300-6351 Auto & Equipment Parts 61.75
061-4300-6362 Telephone 612.47
061-4300-6363 Electric 1,014.82
061-4300-6364 Water 205.00
061-4300-6398 Other General Expense 255.29
061-4300-6399 Other Supplies/Materials 967.36
061-4400-6318 Vehicle Repair 785.53
061-4400-6342 Gas and Oil 4,207.30
061-4400-6351 Auto & Equipment Parts 123.50
061-4400-6506 Non Capital - Vehicles &… 1,444.24
Grand Total: 1,746,939.79
Project Account Summary
Project Account Key Payment Amount
**None** 918,507.39
111765 376.87
111784 22.99
111790 103.33
111798 3,000.00
111799 306.90
410216 51,238.97
410218 1,561.04
410224 21,239.08
410227-25 290.00
410230 11,981.25
419300 5,520.50
427913-25 2,000.00
467209 4,234.36
467226-25 628,064.63
487918-24 1,240.00
EP24-0047 8,530.80
EP24-0064 42,471.00
EP24-0073 19,239.00
R4120-10 2,820.00
R4120-11 400.00
R4120-21 652.68

Expense Approval Report Payment Dates: 10/1/2024 - 10/31/2024 12/2/2024 3:28:29 PM Page 16 of 16
Project Account Summary
Project Account Key Payment Amount
R4120-7 153.13
R4120-8 864.65
SD24-0008 1,700.60
TR4169-25 20,420.62
Grand Total: 1,746,939.79

ITEM 6A
City Council Special Meeting Minutes
November 20, 2024
Town of Los Altos Hills
City Council Special Meeting Minutes
Wednesday, November 20, 2024 at 4:00 pm
Council Chambers, 26379 Fremont Road, Los Altos Hills, California

Present: Mayor Stanley Q. Mok, Vice Mayor Lisa Schmidt, Council Member Linda Swan, Council Member George Tyson, Council Member Kavita Tankha

Absent: None
Staff: City Manager Peter Pirnejad, Deputy City Manager Cody Einfalt, and City Clerk Arika Birdsong-Miller

1. CALL TO ORDER (5:15 P.M.) OPEN SESSION
Mayor Mok called the meeting to order at 4 pm.

2. ROLL CALL – All City Council Members were present.

3. PUBLIC COMMENT (Public Comment is Limited to Items which are the Subject of the Special Meeting)
There were no Public Comments.

4. ADJOURNED TO CLOSED SESSION TO DISCUSS THE FOLLOWING:

The City Council adjourned to a Closed Session at 4:01 pm to consider the following item:

A. CLOSED SESSION: Conference with Legal Counsel – Anticipated Litigation Significant Exposure to Litigation pursuant to Government Code Section54956.9(d)(2): Two cases

5. ADJOURN
The meeting adjourned.

Los Altos Hills Regular City Council Meeting Minutes
Thursday, November 21, 2024
Town of Los Altos Hills
City Council Regular Meeting Minutes
Thursday, November 21, 2024
Council Chambers, 26379 Fremont Road, Los Altos Hills, California

Present: Mayor Stanley Q. Mok, Vice Mayor Lisa Schmidt, Council Member Linda Swan, Council Member Kavita Tankha, Council Member George Tyson

Absent: None
Staff: City Manager Peter Pirnejad, City Attorney Steve Mattas, City Clerk Arika Birdsong-Miller, Deputy City Manager Cody Einfalt, Finance Director Thomas Leung, Community Development Director Jay Bradford, and Public Works Director WooJae Kim

1. CALL TO ORDER (6:00 P.M.)
Mayor Mok called the meeting to order at 6:00 P.M.

2. ROLL CALL
Mayor Stanley Mok, Vice Mayor Schmidt, Council Member Linda Swan, Council Member Kavita Tankha, and Council Member Tyson were present.

3. PLEDGE OF ALLEGIANCE- Recited

4. AGENDA REVIEW
The City Council Agenda was accepted as presented.

5. PRESENTATIONS AND APPOINTMENTS
A. Reappointment to the Parks and Recreation Committee- Vice Mayor Schmidt made a motion to reappoint Boxia Schmidt to the Parks and Recreation Committee. Council Member Swan seconded the motion. Approved, Vote 5-0
B. Appointment to the Pathways Committee – Council Member Swan made a motion to appoint Nick Erndt to the Pathways Committee. Council Member Tyson seconded the motion.

Approved, Vote 5-0
C. Appointment to the Pathways Committee – Vice Mayor Schmidt made a motion to appoint Helga Carson to the Pathways Committee. Council Member Swan seconded the motion.

Approved, Vote 5-0.

D. Vacating Appointment to the Emergency Preparedness and Response Committee – Council Member Tankha made the motion to terminate Bill Ralston’s appointment to the Emergency Preparedness and Response Committee. Council Member Tyson seconded the motion.

Approved, Vote 5-0.

ITEM 6B

Los Altos Hills Regular City Council Meeting Minutes
Thursday, November 21, 2024
E. Presentation from the Emergency Preparedness and Response Committee – Rabindra “Rob” Singh made a presentation from the Emergency Preparedness and Response Committee that focused on recommendations to improve Emergency Mass Notification throughout the Town of Los Altos Hills.

This item will be a part of the January 2025 Goal-setting Meeting proposal to the City Council.

F. Appointment to the Los Altos Hills Youth Commission – Vice Mayor Schmidt made a motion to appoint Allen Wu, Willaim Manche, and Nyssa Kansal to the Los Altos Hills Youth Commission. Council Member Tyson seconded the motion. Approved, Vote, 5-0.

G. Annual Presentation by the Los Altos Hills Youth Commission – Youth Commission CoChairs Alan Shen and Sofia Shah provided a comprehensive overview of the events the Youth Commission participated in over the past year and shared a preview of the exciting events planned for the upcoming year.

6. PRESENTATIONS FROM THE FLOOR

1. Michael Grady, a resident of Los Altos Hills, spoke about the Housing Element.

2. Martha Bowden, a resident of Los Altos Hills, spoke about the Housing Element.

3. Gerda Cristal, a resident of Los Altos Hills, addressed the Council regarding Chapter 8 of the Municipal Code and requested that it be updated.

4. Lanvi Evans, a resident of Los Altos Hills, spoke about the Housing Elements and a petition that is circulating.

5. Allan Epstein, a resident of Los Altos Hills, spoke about the Housing Element and expressed concerns that the consultants lack clear guidance.

6. Namrata, a resident of Los Altos Hills, spoke about her lack of support for the proposed development.

7. Rajiv Bhateja, a resident of Los Altos Hills, encouraged the Council to keep the Housing Element in place with modifications.

8. Vijay Chawla, a resident of Los Altos Hills, expressed support for distributing the housing allotment evenly and fairly throughout the Town.

9. RK And, a resident of Los Altos Hills, spoke about the Housing Element.

10. Buvana Dayanandan, a resident of Los Altos Hills, expressed concerns about the development of Twin Oaks.

11. Analyn Konark, a resident of Los Altos Hills, expressed concerns about the inequitable distribution of housing at the proposed development sites.

7. INFORMATIONAL REPORTS (items provided solely for informational purposes) A. Treasurer's Report – This item is provided solely for informational purposes.

B. Disbursement Report - This item is provided solely for informational purposes.

C. Quarterly Investment Report - This item is provided solely for informational purposes.

Los Altos Hills Regular City Council Meeting Minutes Page 3 Thursday, November 21, 2024

8. CONSENT CALENDAR
Council Member Tankha made a motion to approve the Consent Calendar with the removal of Items 8F and 8H for separate discussion and the complete removal of Item 8G from the agenda. Council Member Swan seconded the motion. Approved, Vote 5-0.

MOTION PASSED 5-0:

AYES: Mok, Schmidt, Swan, Tankha, Tyson
NOES: None
ABSTAIN: None
RECUSE: None
ABSENT: None
City Manager Pirnejad explained that Item 8G was a typographical error and was included within Item 8H on the Consent Calendar.

A. Approval of City Council Regular Meeting Minutes of October 22, 2024 Approved, Vote 5- 0 B. Rejection of Claim for Damages - ANFI Subrogation Department Approved, Vote 5-0 C. Rejection of Claim for Damages - Maggie Tan Approved, Vote 5-0 D. Resolution Adopting Revised Employee Handbook including the Personnel Rules and Regulations and Employee Classification and Compensation Plan Approved, Vote 5-0 E. Resolution Accepting the 2024 Pavement Rehabilitation and Drainage Improvement Project Approved, Vote 5-0
F. Request for Extension of the Expiration Date for Building Permit at 12869 La Cresta Drive

REMOVED FROM CONSENT CALENDAR
G. Request for Extension of the Expiration Date for Building Permit at 28008 Laura Court

REMOVED FROM AGENDA
H. Extension of the Expiration Dates for Building Permits for Various Residential Properties as listed in the Staff Report REMOVED FROM CONSENT CALENDAR I. Ordinance to Adopt and Waive Reading of the Town of Los Altos Hills amending Title 10 (Zoning and Site Development) of the Los Altos Hills Municipal Code to amend regulations relating to application processing and standing committee review procedures in accordance with program B-15 of the Los Altos Hills 2023-2031) Approved, Vote 5-0 J. Resolution Accepting Open Space Easement Agreement at 27340 Julietta Lane; Lands of Cheng and Li Approved, Vote 5-0

Los Altos Hills Regular City Council Meeting Minutes Page 4 Thursday, November 21, 2024
K. Resolution Accepting Open Space Easement Agreement at 13871 Robleda Road; Lands of Swaroop Approved, Vote 5-0
L. Resolution Accepting Dedication of Right-of-Way Easement at 13871 Robleda Road Approved, Vote 5-0
M. Resolution Accepting Open Space Easement Agreement at 23500 Camino Hermoso Drive; Lands of Eichner and Hokeness Approved, Vote 5-0
N. Resolution Accepting Dedication of Right-of-Way Easement at 23500 Camino Hermoso Drive; Lands of Eichner and Hokeness Approved, Vote 5-0 ITEM 8F- Request for Extension of the Expiration Date for Building Permit at 12869 La Cresta Drive.

Jay Bradford, Community Development Director, explained that the property owner is requesting an extension of Building Permit BLD19-0026 at 12869 La Cresta Drive which was originally issued on April 29, 2019. New residence construction is limited to 36 months following issuance of the building permit if the estimated value of the project is over $1,000,001. Since the estimated value of the project is over $1,000,001, the building permit expired on April 29, 2022. However, in the Construction Time Limits Ordinance, an extension of construction after the time limit is allowed since the project has not passed a final inspection in the allotted time as described in Section 8-10.04. Although the ordinance specifies that the extension must be granted prior to permit expiration, the applicant has submitted a request for an extension for up to a year to complete the work. This project, similar to others in the packet, experienced delays from COVID-19, construction, and contractor replacements.

Staff recommends granting an extension to allow for additional inspections necessary for project closeout. Previously, the Condition of Approval #21 states, “The project is subject to the Town’s Construction Time Limit Ordinance (Chapter 10, Title VIII of the Municipal Code). The maximum time for completion of the new residence shall be 36 months from the date of Building Permit issuance. Failure to complete the project in the allotted time may result in substantial penalties and fees.” Now, with this approved permit extension, the applicant will have a year from the City Council’s approval of this request to complete the project. Following a year, the applicant will have to pay the final deposit bond of $50,000 for which if they exceed the extension’s time limit, the applicant will face penalties again. In addition, they will be required to apply for another permit extension.

Pubic Comments:

1. Rajiv Bhateja, a Los Altos Hills resident, stated that many of the extension requests are way past the expiration date. Mr. Bhateja would like to enforce the Ordinance and allow some grace because of COVID.

2. Allan Epstein, a Los Altos Hills resident, explained that the Town failed to implement the Code.

Council Member Tankha inquired why we only are requesting $50,000 as a penalty when the project is this far past the expiration date of the permit.

Los Altos Hills Regular City Council Meeting Minutes Page 5 Thursday, November 21, 2024
Council Member Swan asked for an explanation of Town enforcement.

Jay Bradford, Community Development Director, explained that according to the Town of Los Altos Hills Municipal Code, construction projects have strict time limits based on their estimated value. For projects valued over $1,000,000, the allowed time is 36 months. When this limit is exceeded, a deposit is requested for $50,000 and penalties begin to accumulate, reaching $1,000 per day after 120 days, with a maximum penalty of $250,000.

Council Member Tyson explained that we should do better with delinquencies going forward and leave the penalty at $50,000 for this project.

Council Member Tyson made a motion to approve the Request for Extension of the Expiration Date for the Building Permit at 12869 La Cresta Drive as presented with the conversion of the $50,000 final deposit to the penalty fee. Vice Mayor Schmidt seconded the motion. Approved, Vote 5-0
MOTION PASSED 5-0:

AYES: Mok, Schmidt, Swan, Tankha, Tyson
NOES: None
ABSTAIN: None
RECUSE: None
ABSENT: None
ITEM 8H- Extension of the Expiration Dates for Building Permits for Various Residential Properties as listed in the Staff Report
Jay Bradford, Community Development Director, explained that the property owners for the various projects listed below have requested time extensions for their project entitlements or building permits due to construction delays, primarily resulting from impacts such as COVID19, contractor changes, or project complexity. In accordance with the Town's Construction Time Limits Ordinance (Section 8-10.04), extensions are permissible where reasonable delays have occurred, and work remains incomplete. Each of these projects has not passed final inspection within the originally allotted time, but no fiscal impact is expected from the extensions.

The individual project addresses are as follows:

1. Lands of Chelbxeiah De LLC - 27800 Via Feliz

2. Lands of Somekh Sasson - 13875 Mir Mirou Drive

3. Lands of Jaeger - 24250 Hillview Road

4. Lands of Doran - 23520 Ravensbury Avenue

5. Lands of Kagolanu and Talagadadeevi - 12857 La Cresta Drive

6. Lands of Lenz Marian - 24755 Prospect Avenue

7. Lands of Heidari - 10629 Magdalena Road

8. Lands of Klemm - 12033 Green Hills Court

Los Altos Hills Regular City Council Meeting Minutes Page 6 Thursday, November 21, 2024
Director Bradford went on to explain that the list of projects if approved, would result in a oneyear extension from the City Council’s approval. The approved permit extension resolutions would supersede any related conditions of approval in the planning entitlements and permitting compliance dates.

Pubic Comments:

1. Rajiv Bhateja, a Los Altos Hills resident, explained that some of the projects listed started as early as 2013 with others in 2017, 2018, and 2019.

2. Allan Epstein, a Los Altos Hills resident, stated that the Resolution staff is asking the Council to approve doesn’t say anything about deposits being required. Mr. Epstein stated that more projects like these haven’t been bought before Council.

Council Member Tyson made a motion to approve the Extension of the Expiration Dates for Building Permits for Various Residential Properties as listed in the Staff Report, ensuring that the $50,000 deposit is required. Mayor Mok seconded the motion. Approved, Vote 4-1.

Council Member Tankha voted in opposition to the motion.

MOTION PASSED 4-1:

AYES: Mok, Schmidt, Swan, Tyson
NOES: Tankha
ABSTAIN: None
RECUSE: None
ABSENT: None

9. ONGOING BUSINESS
A. Resolution Approving the Corporation Yard Locker Room Phase 1 Conceptual Designs and Directing Staff to Move Forward with Completing the Final Design and Construction Documents.

WooJae Kim, Public Works Director, explained that The Corporation Yard, located at 27400 Purissima Road next to Purissima Park, is the main operations facility for the Public Works maintenance staff. The facility is a two-story barn style building with 4,720 square feet of floor area. The ground level is primarily used for maintenance equipment and materials storage. The upper-level houses two offices, a single occupancy restroom with a shower, a street sign storage area, and general Town storage.

As adopted in the Operating and Capital Budgets for FY2024-2025 and FY2025-2026, the Corporation Yard Locker Room is a Capital Improvement Project that would add adequate locker room space with accessible shower/restroom facilities for the maintenance staff.

Currently, an office space on the second floor is shared as a makeshift locker room to store crew’s safety gear and personal items. Next to the office on the second floor is the only restroom in the building. The maintenance team is comprised of one superintendent, four maintenance workers, and one part-time maintenance worker.

The Corporation Yard Master Plan was completed in July 2024 outlining the scope, budget, and potential capital and maintenance projects for the next ten years. A locker room and

Los Altos Hills Regular City Council Meeting Minutes Page 7 Thursday, November 21, 2024
additional storage space were the top two capital improvement priorities identified in the master plan within the first two years.

Director Kim explained that in December 2023, the Town hired TDM Architect for the Corporation Yard Locker Room design services. The agreement amount for the design services was within the City Manager’s signing authority. Through the design process and preliminary consultations with the Town’s Building Department, building code requirements for the Americans with Disabilities Act (ADA) accessibility and fire suppression system were identified.

The budget for the Corporation Yard Locker Room approved by the City Council in the Operating and Capital Budgets for FY2024-2025 and FY2025-2026 is $340,000. All the proposed scope of work for the Corporation Yard Locker Room cannot be completed within the current project budget due to accessibility and fire suppression/sprinkler system requirements and improvements needed to the heating, ventilation, and air conditioning (HVAC) system as part of the project. Therefore, the staff is proposing to bifurcate the Corporation Yard Locker Room projects into two phases.

Director Kim explained Phase 1 of the Locker Room Project and stated that for accessibility and gender-inclusive requirements, a separate single occupancy unisex restroom with a shower is needed on the ground floor. Again, the only existing restroom and locker room space are located on the second floor. The proposed unisex restroom on the ground floor would fulfill the need for an accessible restroom for visitors to the Corporation Yard and the need for a gender-inclusive locker room space for up to two staff members. An existing 122- square-foot storage room on the first floor is proposed to be converted to a unisex restroom with a shower. This scope of the work would be included in Phase 1 of the project. See Attachment 2 for the Phase 1 conceptual design layout.

The additional scope proposed for Phase 1 of the locker room project is the upgrade of the HVAC system. Currently, there is a centralized gas furnace heating system for the second floor, which has no air conditioning. The mechanical consultant on the design team is proposing to replace the gas furnace with the ductless mini-split heat pump system for the second floor and the new restroom downstairs. Upgrading the gas furnace to an electric heat pump system would meet the Town’s goal to electrify Town facilities and also provide conditioned air for the maintenance staff.

Pubic Comments:

1. Rajiv Bhateja, a Los Altos Hills resident, stated that he likes the idea that the lockers are accessible without the need to go through the restroom.

2. Allan Epstein, a Los Altos Hills resident, stated the projected cost for this project is $300,000 and the building is 55 years old. Mr. Epstein questioned why Phase 1 of the project didn’t trigger a fire protection system.

3. Carol Gottlieb, a Los Altos Hills resident, stated her concerns about the heat pump affecting the horse's ability to move around the pathway.

Director Kim stated the heat pump shouldn’t affect the Pathways because it will be located inside the fenced area.

Los Altos Hills Regular City Council Meeting Minutes Page 8 Thursday, November 21, 2024
Council Member Swan made a motion to approve the Resolution Approving the Corporation Yard Locker Room Phase 1 Conceptual Designs and Directing Staff to Move Forward with Completing the Final Design and Construction Documents adding that the proposed area for the restroom be usable for more than one person at a time. Council Member Tyson seconded the motion. Approved, Vote 5-0
MOTION PASSED 5-0:

AYES: Mok, Schmidt, Swan, Tankha, Tyson
NOES: None
ABSTAIN: None
RECUSE: None
ABSENT: None
B. Receive an Informational Update on the 2024 Pathway Fee Nexus Study for Consideration and Feedback to Staff.

WooJae Kim, Public Works Director, explained that the Town enacted a pathway fee in March 1996 through the adoption of Ordinance 381. The ordinance established a Pathway Fund and revised requirements for dedication of pathway easements, construction of pathways, and payment of pathway fees. The pathway fee has been increased over time based on the increasing costs of pathway construction.

On September 19, 2019, the City Council approved amendments to the Pathways Element of the General Plan and to the Town Municipal Code Sections 3-3.303, 9-1.1112, 10-2.606, and 10-2.608 to adopt a new Pathway Development Impact Fees. Municipal Code amendments were as follows:
• Section 3-3.303 amended to specify that pathway fees are to be used exclusively for the construction of new pathways.
• Section 9-1.1112 amended to specify that pathway fees or pathway construction may be required in conjunction with a project. In the case of a subdivision, pathway construction is typically required with subdivision improvements. Individual site development projects will now pay a pathway fee and pathways will be constructed as Capital Improvements projects.

This will remove the burden on homeowners to construct or install new pathway segments. • Section 10-2.606 amended to change 'secondary dwelling unit' to 'accessory dwelling unit', and to specify that cumulative projects that add a total of 900 square feet within a 10-year period are required to pay a pathway fee and/or may be required to dedicate a pathway easement. If a property owner pays a pathway fee with a project that includes an addition or additions totaling 900 square feet or more, a pathway fee would not be required with a subsequent project.
• Section 10-2.608 amended to change 'secondary dwelling unit' to 'accessory dwelling unit', specify that barns for equestrian use are an eligible project, and excluding certain types of floor area from the 900 square foot trigger (kitchens, dining rooms, entryways, foyers, hallways, stairways and elevators).

Los Altos Hills Regular City Council Meeting Minutes Page 9 Thursday, November 21, 2024
Director Kim stated that due to new nexus analysis requirement per Assembly Bill (AB) 602, residential impact fees should be based on the area of development whenever possible. For the Pathway Development Impact Fee, the Town’s pathway construction cost data from the past two years were collected to determine an average cost per mile of pathways, which tabulated to around $1,060,659 per mile. With a total of 85.88 miles of pathways in the Town, the estimated pathway system cost equated to $91,089,362. That number was divided by a total number of parcels or households in the Town (3,151 parcels) for an average pathway cost per household of $28,908. This number is further divided by an average size of residential development in the Town (5,269 average square footage per household based on two-year permitting data average for projects greater than 900 square feet) to come up with a $5.49 per square footage of development impact fee for pathways.

Below table is a general breakdown of the Pathway Development Impact Fee methodology, which is further detailed in the 2024 Pathway Fee Nexus Study:

Proposed Cost Components Amount
Estimated Cost of Construction for 1 mile of Pathways $1,060,659 Estimated Current Pathway Miles 85.88
Total Estimated Pathway System Cost $91,089,362
Estimated Town Households 3,151
Estimated Pathway Cost per Household $28,908
Average Development Square Footage per Household 5,269
Pathway Cost per Development Square Footage $5.49
Additional Dwelling Units (ADUs) would continue to be exempt from the pathway impact fee. For properties that contributed to the pathway construction or fee in the past, the pathway impact fee may be assessed only on the square footage of any additions above the 5,269 average square footage per household number. The legality of such a proposal would need to be vetted through the City Attorney’s Office. With the pathway impact fee based on the square footage of developments, below is a table reflecting how much developers can anticipate paying in Pathway Development Impact Fee with the new fee methodology:

Proposed Pathway Impact Fee Current
Fee
Proposed Fee
Fee per Square Footage of Addition Not Applicable $5.49/sq. ft.

New Single-Family Residence (6,000 sq. ft.) $10,943 $32,940 Additions (900 sq ft, including barns) $3,826 $4,941

Los Altos Hills Regular City Council Meeting Minutes Page 10 Thursday, November 21, 2024
The Town had collected approximately $106,000 in Pathway Development Impact Fees in FY2022/23 and around $180,000 in FY2023/24. With the updated pathway impact fee, the Town anticipates collecting approximately $300,000 to $350,000 per year in Pathway Funds, which would continue to be used on primarily on new or capital pathway design and construction project. Once a fee update is approved by Council, staff will develop on a longterm pathways improvement plan to build more pathways annually with Pathway Fund revenue increases.

Public Comment:

1. Allan Epstein, a Los Altos Hills resident, stated the study didn’t include multi-family housing.

This was an information item only.

10. PUBLIC HEARING - NONE

11. NEW BUSINESS
A. Approval of the 2025 City Council Regular Meeting Schedule Arika Miller, City Clerk, explained that historically, the City Council has reviewed and adjusted its meeting schedule annually to account for holidays, significant events, and other potential conflicts. This practice ensures that meetings are scheduled at times that maximize attendance and participation by both Council Members and the public. The review also allows for the scheduling of special meetings as needed.

In the past, the City Council has scheduled a meeting recess during one of the summer months to avoid potential conflict with residents’ vacation plans. It has been suggested that the City Council recess for July 2025 with the ability to call a special meeting as needed.

The proposed schedule for the year 2025 includes City Council Regular Meetings on the third Thursday of each month, with adjustments for holidays and significant events. The following considerations have been taken into account:

1. January 2025: Council Member Tankha has requested to reschedule the Regular January 16, 2025, to Thursday, January 30, 2025, due to family obligations.

2. June 2025: Town Hall will be closed on Thursday, June 19, 2025, in observance of Juneteenth, the third Thursday of the month. It is recommended that the Regular Meeting for June 19, 2025, be canceled and rescheduled.

3. July 2025: Recess with the ability to call a Special Meeting as needed.

Following the City Council's direction, the City Clerk will post and distribute the appropriate notices.

Los Altos Hills Regular City Council Meeting Minutes Page 11 Thursday, November 21, 2024
Public Comment:

1. Allan Epstein, a Los Altos Hills resident, asked if Council could determine a date when the Joint City Council and Finance and Investment Committee.

Council Member Tyson moved to approve the 2025 City Council Regular Meeting Schedule, including rescheduling the June 19, 2025, meeting to June 26, 2025, and omitting a Regular Meeting in July. Council Member Swan seconded the motion. Approved, Vote 4-0-1. Vice Mayor Schmidt abstained from the vote.

MOTION PASSED 4-0-1:

AYES: Mok, Swan, Tankha, Tyson
NOES: None
ABSTAIN: Schmidt
RECUSE: None
ABSENT: None
B. Resolution Approving An Amended CHAC Joint Powers Agreement And Authorizing The City Manager To Execute The Amended CHAC Joint Powers Agreement Attorney Steve Mattas, asked the Council to consider adopting a Resolution approving an Amended CHAC Joint Powers Agreement, authorizing the City Manager to execute the Amended CHAC Joint Powers Agreement, and designating signature authority to the City Manager for the Town to provide written consent to dissolve the JPA once its remaining obligations are satisfied and provide notice to CHAC of the designated representative.

Council Member Swan made a motion to approve the Resolution Approving An Amended CHAC Joint Powers Agreement And Authorizing The City Manager To Execute The Amended CHAC Joint Powers Agreement and appoint Council Member George Tyson to the committee. Vice Mayor Schmidt seconded the motion. Approved, Vote 5-0.

MOTION PASSED 5-0:

AYES: Mok, Schmidt, Swan, Tankha, Tyson
NOES: None
ABSTAIN: None
RECUSE: None
ABSENT: None
C. Amendment to the Resolution Establishing Standing Committees and Adopting General and Special Rules Pertaining Thereto To Update The Emergency Preparedness And Response Committee Charter.

Cody Einfalt, Deputy City Manager, explained that the EPRC’s charter approved by the City Council currently is as follows:

Los Altos Hills Regular City Council Meeting Minutes Page 12 Thursday, November 21, 2024
I. Advise the Town on its emergency mitigation, preparedness, response, and recovery programs, goals, policies, plans, protocols, and priorities related to emergencies, and make recommendations to Staff and City Council.

II. Provide guidance and support to the emergency volunteer programs and community outreach
Currently, only residents of the Town can be appointed as full-voting members of the Committee; however, citizens who live outside of the Town boundaries can attend the public meetings and hold associate-level standing in the proceedings. Associate members cannot vote and do not count to the quorum of the members meeting.

Often times the programs and policies that are discussed at EPRC meetings involve residents of the County’s unincorporated area and residents of the Los Altos Hills County Fire District that are not within the Town boundaries. For these reasons, the Council can consider expanding membership of the EPRC to allow for Council appointments of non-residents to the Committee.

At the November 5, 2024 regular meeting of the EPRC, the Committee voted unanimous to recommend approval by the City Council to allow residents of the unincorporated area within the LAHCFD boundary to become full, voting members of the EPRC.

Public Comment:

1. Allan Epstein, a Los Altos Hills resident, inquired about increasing the size of the committee by 2 members.

2. Dave Stewart, a Los Altos Hills resident, stated the number of committee members is fine the way it is because 1 member with withdraw their membership.

Council Member Tankha made a motion to approve the Amendment to the Resolution Establishing Standing Committees and Adopting General and Special Rules Pertaining Thereto to Update The Emergency Preparedness And Response Committee Charter.

Council Member Swan seconded the motion. Approved, Vote 5-0.

MOTION PASSED 5-0:

AYES: Mok, Schmidt, Swan, Tankha, Tyson
NOES: None
ABSTAIN: None
RECUSE: None
ABSENT: None
Council Member Tyson moved to extend the Regular Council Meeting beyond 10 pm. Council Member Swan seconded the motion. Approved, Vote 5-0.

MOTION PASSED 5-0:

AYES: Mok, Schmidt, Swan, Tankha, Tyson
NOES: None
ABSTAIN: None

Los Altos Hills Regular City Council Meeting Minutes Page 13 Thursday, November 21, 2024
RECUSE: None
ABSENT: None

12. REPORTS FROM COMMITTEES, SUB-COMMITTEES, AND COUNCIL

MEMBERS ON OUTSIDE AGENCIES

1. Council Member Tyson gave an update on the Undergrounding Rule 20A project.

Council Member Tyson also alerted the Council and the community that Foothill College is moving forward with its Magical Bridge Learning Center.

2. Vice Mayor Schmidt provided an update on the North California Library Association and stated they have about $10 million dollars in their budget for library improvements.

Phase I of the improvement will begin next year.

13. STAFF REPORTS
A. City Attorney Steve Mattas explained that The Town of Los Altos Hills has undertaken comprehensive community outreach and engagement regarding the Housing Element, including hosting multiple discussions, gathering public feedback, and addressing key concerns raised by residents. With these efforts complete, the Council is now tasked with determining the path forward.

Specifically, the Council must decide whether to proceed with the current Housing Element proposal, which aligns with state requirements and reflects the input received, or to revisit and make further modifications. However, it is critical to understand that pursuing additional changes could result in significant delays and the potential loss of state certification for the Housing Element. This outcome could expose the Town to compliance risks, including state intervention, loss of local control, and potential legal or financial repercussions. The decision at hand will determine how the Town moves forward in meeting its housing obligations while maintaining compliance with state mandates.

B. City Clerk Arika Miller thanked the City Council for their efforts in spreading the word about committee vacancies and reported that 14 new members have been appointed to Town committees over the past four months. Mrs. Miller also gave a presentation on the proposed merger of the Parks and Recreation Committee and the Community Relations Committee. The City Council reached a consensus to place this item on a future agenda for further consideration.

C. Community Development Director Jay Bradford explained that on November 18, we hosted a Housing Element Forum, the third in a series of public meetings focused on Housing Element implementation. This event provided a valuable opportunity for our community to engage with a panel of distinguished experts in housing, development, and policy. The forum was moderated by our City Manager, Peter Pirnejad, and featured the following panelists:

Steve Mattas, the Town’s City Attorney
Frank Zerunyan, Councilmember, City of Rolling Hills
Randy Tsuda, CEO of Alta Housing, an affordable housing developer Dan Wery, Principal at Michael Baker International, the Town’s housing consultant Brady Guertin, Legislative Affairs Lobbyist for the League of California Cities

Los Altos Hills Regular City Council Meeting Minutes Page 14 Thursday, November 21, 2024
The forum was well-attended, with nearly 70 participants. We extend our gratitude to the panelists and community members for their active involvement.

Additionally, the department has been working diligently to return deposits held for completed building permits. Over the past four months, we have contacted homeowners and contractors to coordinate the return of these funds to the appropriate parties. CDD is anticipating to start issuing these refunds within the next month.

The department is also advancing several software upgrades to our permitting system.

Once completed, these upgrades will substantially fulfill the goals outlined in the 2024-2026 Work Plan.

Lastly, we have observed an increase in code enforcement requests, resulting in a sustained backlog in the program. We plan to evaluate the program in the coming months to address these challenges effectively.

D. Public Works Director WooJae Kim reported the following:

El Monte Fire Station Utility Undergrounding (Rule 20A) Project Phoenix Electric with the Town’s construction management team is progressing well on the project. I would say we are approximately 60% complete with the joint trench work. The contractor is currently working at the intersection of El Monte, Elena, and Moody Road, close to the El Monte Fire Station. The joint trench work is anticipated to be completed by January or February 2025 pending weather delays.

Once joint trench work is completed, PG&E, Comcast, and AT&T, in that order, will be conducting their overhead conversion to underground to fully underground all overhead lines and remove the power poles within the underground district. This process will take another year to complete.

The Town received the first reimbursement check from PG&E for around $1,067,000 for the Rule 20A project, while we are waiting for first reimbursement checks from AT&T and Comcast.

Fiber Broadband Project
Council approved the grant agreement to Los Altos Hills Community Fiber in October of this year. Community Fiber is currently working on the design plans to submit with the encroachment permit to the Town. We are anticipating for the encroachment permit package to be submitted early next year. Staff is planning to have a preliminary meeting to go over the design progress sometime in December.

Staff will also be meeting with the Foothill College staff to get updates on their fiber project under Highway 280. Staff will continue to update the Technology Committee and Council on the progress of this project.

Heritage House Upgrade
On October 22, the Town received five bids on the Heritage House Upgrade Project. Smelly Mel’s Plumbing, Inc. (or SMP) was deemed the lowest responsible and responsive bidder. As authorized by the City Council at a previous meeting, the City Manager awarded a construction contract to SMP. for $685,650, and the contract is now fully executed. Today, a pre-construction meeting was held for the project joined by the contractor, design team, a member of the History Committee and staff. Construction is anticipated to start next month.

Los Altos Hills Regular City Council Meeting Minutes Page 15 Thursday, November 21, 2024
Planting at Byrne Preserve
As an offsite mitigation measure for the Matadero Creek Restoration and Bank Stabilization Project, new plantings and horse exclusion fencing are required at the tributary area of Moody Creek at Byrne Preserve. The Town maintenance staff installed the split rail fence at the lower tributary area in Byrne Preserve, which saved good money for the project. For the planting work, the Town received bids from three contractors on October 1. On October 22, 2024, the City Council awarded the project to the lowest responsible and responsive bidder, Confluence Restoration, Inc.

After the award of the planting project, staff received few comments from community members concerned about coyote brushes being planted at Byrne Preserve. Few community members commented that coyote brushes are potential fire fuel or hazard and how they may be invasive species in nature. The Town selected coyote brush due to limited plant species that can survive current drought conditions, horses grazing, and wildlife habitats in the area. Staff discussed with the project designer and Grassroots Ecology and proposed amendments to substitute any coyote brush planting in the fenced area with other more diverse species of planting. Outside the fenced area, once coyote brushes are more established, staff plans to replace some of the coyote brushes near the creek channel with willows.

The pre-construction meeting with the contractor is scheduled for tomorrow. The plants with few substitutions as discussed will be picked up from the nursery early December and planting work will start soon after.

Storm Drain Issues
This is a message from our Maintenance staff. With the wet season here, if anyone notices public storm drains that may need to be cleared or cleaned out, please help report these issues through the Town’s website. On the main Town home page, one of the rectangular tabs is noted as “Report a Problem (Non-Emergency).” You can click the tab and report on work order issues and follow up on the status of the work. Since this is a busy time for our maintenance staff, it may take at least couple of days for our staff to respond.

E. Finance Director Thomas Leung explained the following:

Beth Viajar, the Town’s new Senior Accountant, started this week. She comes from the City of Cupertino, where she was the Senior Accountant for almost ten years.

Jocelyn Misola, who has been an Accountant with the Town for five years, was also recently promoted to Senior Accountant. This well-deserved promotion reflects her dedication and significant contributions, including helping maintain the Town’s financial operations during department vacancies.

The Town will also be posting a job posting for an Accounting Technician. Filling this vacancy will allow the department to be fully staffed and increase operational efficiency.

The annual financial audit is progressing well. The auditors expect to send us a draft by December 4. We aim to present the finalized ACFR to the City Council on December 19.

Los Altos Hills Regular City Council Meeting Minutes Page 16 Thursday, November 21, 2024
The Town's sweep account, which became operational on September 27, has already started generating returns. In the month of October, the Town earned $10k in dividends.

For fiscal year 2023-24, the Town ended with a $34,000 surplus, primarily due to cost-saving measures and unfilled positions. This is a notable outcome, especially considering that the original budget projected a $1.6 million deficit after accounting for transfers out to other funds.

At Mid-Year, we will present any necessary budget adjustments, a comprehensive analysis of FY 2023-24, and a long-term financial forecast.

F. City Manager Peter Pirnejad presented the following:

Informed the City Council about an exciting opportunity for the Town of Los Altos Hills to apply for the Tranter-Leong Fellowship. This prestigious fellowship provides grant funding to support international travel for municipal leaders to explore innovative practices, foster global connections, and bring back ideas that can benefit our community. If awarded, the grant would offset the travel expenses, ensuring that there would be no financial impact on the Town’s budget. I would like to take a small delegation with me. I believe this opportunity aligns with our values of continuous learning and innovation, and it has the potential to bring valuable insights to our governance and operations. At this time, I would like to move forward with the application process. However, I want to ensure that the Council is fully informed. If any members of the Council have concerns or would like to discuss the matter in more detail, I am happy to bring this back for further discussion. Otherwise, unless there are objections, I plan to proceed with the application to secure the grant funding take advantage of this unique opportunity, and bring back an official approval request on consent for international travel. • City Hall will be closed in observance of the Thanksgiving Holiday on Nov 28th and 29th.
• Friendsgiving with Town Staff yesterday
• The History Committee’s publication “Our Town” and the Town Newsletter called “The Quarterly” is also being released in the next month

UPCOMING EVENTS
Festival of Lights
Los Altos Hills is excited to join the Los Altos Festival of Lights Parade on December 1, 2024. Our Youth Commission will be pushing the Mother Goose float. The parade kicks off at 6:00 PM at First and State, promising an evening of lights, creativity, and local pride. We invite everyone to come out, enjoy the festive atmosphere, and celebrate the start of the holiday season with us.
����� Time: Parade begins at 6 PM
��������������� Date: 12/1/2024
��� Location: Downtown Los Altos
Barn Lighting
Celebrate the holiday season surrounded by friends and neighbors at the Westwind Community Barn. Share conversations over cookies, hot cider, and/or wine tasting while kids can enjoy seasonal games, craft tables, face painting, pony rides, and a petting zoo. Snap a photo with Santa as your little one shares their wish list. Close out

Los Altos Hills Regular City Council Meeting Minutes Page 17 Thursday, November 21, 2024
the afternoon with a community countdown to the barn lighting that will begin at 5:00 pm.
����� Time: 2-5 PM
��������������� Date: 12/7/2024
��� Location: Westwind Barn, 27210 Altamont

14. COUNCIL INITIATED ITEMS

1. Mayor Mok requested that an item be agendized to discuss the Municipal Code regarding how to reinstate the ability to develop property if solar panels are included in the Maximum Development Area (MDA).

15. ADJOURN
The meeting was adjourned at 10:46 P.M.

ITEM 6C Staff Report
TOWN OF LOS ALTOS HILLS December 19, 2024
Staff Report to the City Council
SUBJECT: RESOLUTION AUTHORIZING DEPOSIT AND WITHDRAWAL

FROM THE LOCAL AGENCY INVESTMENT FUND IN THE

STATE TREASURY
FROM: Thomas Leung, Finance Director
APPROVED: Peter Pirnejad, City Manager
RECOMMENDATION: That the City Council should:

Adopt a resolution to authorize the City Manager, Finance Director, and Senior Accountant to deposit and withdraw from the Local Agency Investment Fund in the State Treasury.

BACKGROUND:

The Local Agency Investment Fund (LAIF) was established pursuant to Chapter 730 of the Statutes of 1976 and is governed by Section 16429.1 of the California Government Code.

This fund was created to provide local agencies with a mechanism to invest surplus funds securely and efficiently. The LAIF is managed by the California State Treasurer’s Office, which oversees the investment of funds deposited by local agencies, including municipalities, counties, and special districts, among others.

The primary objectives of LAIF are to offer a safe investment environment and competitive returns on investments for local governments while maintaining liquidity and accessibility to funds. Local agencies, including the Town of Los Altos Hills, benefit from LAIF's professional investment management and the ability to participate in a diversified investment portfolio.

Resolution No. 1179 previously authorized the Town of Los Altos Hills to participate in LAIF. While it was amended on September 19, 2024, further revisions are now being proposed to align with the Town’s current organizational structure and to remove the clause allowing the delegation of duties to other staff.

This resolution outlined the personnel responsible for managing deposits and withdrawals.

The proposed amendment aims to update and clarify these authorizations.

DISCUSSION:

The proposed amendment to Resolution No. 1179 is intended to update and clarify the authorization process for managing the Town of Los Altos Hills' investments in the Local Agency Investment Fund (LAIF). The amendment designates the City Manager, Finance Director, and Senior Accountant as authorized signatories for transactions involving LAIF.

Staff Report to City Council Page 2
LAIF Authorization
December 19, 2024
This update is necessary to reflect the current organizational structure and ensure that financial operations are managed efficiently.

Deposits and withdrawals will be processed only through bank accounts authorized by the agency in writing and currently on file with LAIF. The bank accounts must be in the agency’s name.

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. 2024-25 CITY COUNCIL WORK PLAN:

This action was not identified in the City Council Work Plan.

FISCAL IMPACT:

There is no fiscal impact.

ATTACHMENTS:

1. Resolution

ITEM 6C Attachment 1
RESOLUTION __-24

A RESOLUTION OF THE CITY COUNCIL
OF THE TOWN OF LOS ALTOS HILLS AMENDING RESOLUTION 1179

AUTHORIZING DEPOSIT AND WITHDRAWAL FROM THE LOCAL AGENCY

INVESTMENT FUND IN THE STATE TREASURY
WHEREAS, Pursuant to Chapter 730 of the statutes of 1976 Section 16429.1 was added to the California Government Code to create a Local Agency Investment Fund in the State Treasury for the deposit of money of a local agency for purposes of investment by the State Treasurer; and WHEREAS, the Town of Los Altos Hills does hereby find that the deposit and withdrawal of money in the Local Agency Investment Fund in accordance with the provisions of Section 16429.1 of the Government Code for the purpose of investment as stated therein is in the best interest of the Town of Los Altos Hills;
NOW, THEREFORE, BE IT RESOLVED that the Town of Los Altos Hills, City Manager, Finance Director, and Senior Accountant shall be authorized to order the deposit or withdrawal of monies in the Local Agency Investment Fund.

The above and foregoing Resolution was passed and adopted by the City Council of the Town of Los Altos Hills at a special meeting held on the 19
th day of December 2024 by the following
vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

BY:

ATTEST: Stanley Mok, Mayor
Arika Birdsong-Miller, City Clerk

TOWN OF LOS ALTOS HILLS December 19, 2024
Staff Report to the City Council
SUBJECT: RESOLUTION ACCEPTING THE TOWN OF LOS ALTOS HILLS

ANNUAL COMPREHENSIVE FINANCIAL REPORT FOR THE
FISCAL YEAR ENDED JUNE 30, 2024
FROM: Thomas Leung, Finance Director
APPROVED: Peter Pirnejad, City Manager
RECOMMENDATION: That the City Council:

Adopt the attached Resolution accepting the Town of Los Altos Hills Annual Comprehensive Financial Report (ACFR) for the fiscal year ended June 30, 2024.

BACKGROUND:

The Town of Los Altos Hills annually conducts an independent audit of financial transactions. The FY 2023-24 financial report was completed in December, adhering to the Government Finance Officers Association (GFOA) best practices recommending a six-month completion timeframe from the fiscal year-end.

The Town continues to exceed minimum reporting standards by preparing an ACFR, which meets the highest standards in governmental accounting and financial reporting. Staff anticipates the FY 2023-24 ACFR will qualify for the GFOA’s Certificate of Achievement for Excellence in Financial Reporting.

The ACFR for fiscal year ended June 30, 2024, has been prepared by Maze & Associates, the Town’s independent auditing firm, in collaboration with the Finance Department. The FY 2023- 24 ACFR received an unmodified opinion from Maze & Associates, indicating that the auditors believe the ACFR fairly presents, in all material respects, the Town’s financial position as of June 30, 2024, and that the financial statements comply with generally accepted accounting principles.

The 2024 financial audit reported no findings or adjustments.

The Finance and Investment Committee (FIC) reviewed the ACFR at its December 16, 2024, special meeting and granted conditional approval, pending updates such as MD&A revisions, before submission to the City Council.

Staff acknowledges the diligence of Maze & Associates, the FIC, and the Finance Department in completing this comprehensive financial document, which provides a clear and organized overview of the Town’s financial position.

The Town’s ACFR present an easily readable and organized report of the Town’s financial transactions and provide the users of government financial statements with a wide variety of information needed to help them evaluate the financial condition of the Town. The final step in the formal process of preparing these financial statements is to present them to the City Council for its acceptance.

ITEM 6D
TL
PP

Staff Report to City Council
Annual Comprehensive Financial Report
December 19, 2024
2 The ACFR report is composed of the following parts:
• Introductory Section and Transmittal Letter;
• Independent Auditors’ Report;
• Management Discussion and Analysis (MD&A);
• Basic Town-Wide and Fund level Financial Statements;
• Notes to Financial Statements;
• Supplemental Information; and
• Statistical Section
The transmittal letter provides the management’s representation of the Town’s finances and describes all funds and activities of the Town. The letter also provides a discussion on the Town’s budget process, as well as factors affecting the Town’s financial conditions, including State budget and local economy, long-term financial planning, risk management, and employee benefit cost.

The MD&A provides an overview of the financial highlights for the fiscal year and a discussion of significant financial changes from the prior year.

DISCUSSION:

Management’s Discussion and Analysis (MD&A) section of the annual comprehensive financial report highlights the following:

Town-Wide Financial Highlights:
• The Town’s total assets and deferred outflows of resources exceeded its liabilities and deferred inflows of resources at June 30, 2024 by $65.3 million (net position). Of this amount, $22.1 million was reported as unrestricted net position, which may be used to meet ongoing obligations to citizens and creditors.
• Changes in Net Position – The Town’s total net position increased by $2.6 million as reflected in the government-wide statement of activities. Net position of governmental activities increased by $2.0 million. Revenue increased in all categories, especially investment income. Investment income increased $1 million from $201,651 in the prior year to $1,234,797 this year due to maturing investments being reinvested at markedly higher-yielding interest rates. Net position of business-type activities increased by $626,436, reflecting the impact of higher sewer rates and connection fees to provide for needed capital investment in sewer mains.
• Cash and investments at June 30, 2024, totaled $32.4 million, of which $25.7 million was classified as government activities and $6.6 million was under the business-type activities category (Sewer). The Town's cash and investments, including restricted cash and investments, increased $966,873, or 3.0% as compared to the prior year, due to revenues exceeding expenses.
• Accounts payable and other current liabilities at June 30, 2024, totaled $7.3 million. Of this amount, $2.0 million was reported in the Sewer Fund. There is $4.2 million in refundable deposits relating to development. There is no long-term bonded debt outstanding at the close of the fiscal year.

Staff Report to City Council
Annual Comprehensive Financial Report
December 19, 2024
3 Fund Highlights:
• Governmental Funds – Fund Balances – At the close of fiscal year, the Town’s governmental funds reported a combined fund balance of $20.7 million, a decrease of $172,821 or 0.8% from the prior year. Of the total, $2.3 million, or 11.3% of the fund balance is available for spending at the government’s discretion (unassigned fund balance). • General Fund unassigned fund balance at June 30, 2024, was $2.5 million, an increase of $81,643, or 3.3% over the previous year. The unassigned fund balance increased primarily because revenues exceeded expenditures due to vacancies and expenditure controls. • Sewer Fund unrestricted net position at June 30, 2024, was $4.6 million, an increase of $626,436, or 5% over the previous year. Total net position was $13,134,778, an increase of $288,909, or 7.0%, from the prior year. Charges for services increased by $270,963, or

8.3% above the previous year due to a 6% increase in sewer rates and the addition of new residential connections. Salaries and benefits decreased by $80,482 or 22.8% due to lower pension related expense and the decrease in staffing. The increase in expenditure was due primarily to the 25% increase in treatment and conveyance cost from the City of Palo Alto and City of Los Altos due in part to the start of a $360 million plant upgrade. • Pension – At the close of the fiscal year, the Town’s net pension liability totaled $3,109,217 as of June 30, 2024, an increase of $438,735—significantly lower than the $2,884,352 increase recorded in the prior year. The pension liability increases are due primarily to CalPERS investment returns being less than expected for the last two years. Offsetting this liability, the Town’s PARS 115 Trust held a balance of $1.2 million as of June 30, 2024.

The Town has one of the highest funding ratios of municipalities in the state according to CalPERS Actuarial Valuation Reports dated June 30, 2023. Town has three plans, Classic Miscellaneous group is 81.1% funded, 2nd Tier is at 88.2% and the PEPRA tier is at 88.9%. • Other Post-Employment Benefits (OPEB) – The Town’s California Employers' Retiree Benefit Trust (CERBT) is now underfunded by $59,461, a shift from last year’s OPEB asset of $233,039, updated actuarial assumptions, unexpected plan experience (including higher retirements and new hires), and lower-than-expected investment returns. The Town has requested reimbursements from the Trust Account to pay current OPEB expenses in fiscal year 2024.
• Reserves – Each year, the City Council reviews the current committed and assigned reserves and updates the balances of these reserves as necessary. Any changes are adopted by resolution of the City Council. General Fund committed and assigned reserves haven’t changed. General Fund restricted reserves increased due to investment gains in the Pension Trust.
• Leases – The Town adopted GASB Statement No. 87. This statement requires recognition of certain lease assets and liabilities for leases in FY 2023-24 and recognition as inflows of resources or outflows of resources based on the payment provision of the contract. The Town recognizes a lease receivable and a deferred inflow of resources in the governmentPage 69 of 395 Staff Report to City Council
Annual Comprehensive Financial Report
December 19, 2024
4 wide financial statements, as well as in the applicable funds for six cell phone communications sites. (see Note 5).

For a comprehensive understanding of the Town’s overall net position and activities, refer to the Annual Comprehensive Financial Report (ACFR). Key sections include:
• Introductory Section and Transmittal Letter: Summarizes the Town’s finances, budget process, and financial conditions.
• Independent Auditors’ Report: Provides the auditors' unmodified opinion. • Management’s Discussion and Analysis (MD&A): Highlights financial activities and significant changes.
• Financial Statements: Covers Town-wide and fund-level finances. • Notes to Financial Statements: Enhances understanding of financial data. • Statistical Section: Provides historical financial trends and additional insights.

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. 2024 CITY COUNCIL STRATEGIC PRIORITIES:

The audit and production of the Annual Comprehensive Financial Report is part of the 2024 City Council Strategic Priorities for financial transparency.

FISCAL IMPACT:

There is no fiscal impact associated with the adoption of this Resolution.

ATTACHMENTS:

1. Resolution

2. FY 2023-2024 Annual Comprehensive Financial Report

RESOLUTION No. xx-24

RESOLUTION OF THE CITY COUNCIL OF THE TOWN OF LOS ALTOS HILLS ACCEPTING THE TOWN’S ANNUAL FINANCIAL REPORTS FOR THE YEAR ENDED JUNE 30, 2024
WHEREAS, the independent audit provides annual reports on the financial condition of the Town in accordance with Municipal Code Section 2-3.221;
WHEREAS, the Town of Los Altos Hills contracted with the audit firm of Maze and Associates (Maze) to conduct an audit of the Town’s financial records in accordance with Governmental Accounting Standards Board (GASB); and
WHEREAS, the Annual Comprehensive Financial Report for the year ended June 30, 2024 was prepared in accordance with all relevant GASB pronouncement and best practices set by the Governmental Finance Officers Association and reviewed by Maze for fair presentation and free from material misstatement; and
WHEREAS, it is recommended that the City Council accept the Town’s ACFR for the year ended June 30, 2024 (by reference, available with the staff report); NOW THEREFORE, resolved by the City Council of the Town of Los Altos Hills that the Council hereby accepts the Town’s annual financial statements as prepared by Maze and Associates.

The above and foregoing Resolution was passed and adopted by the City Council of the Town of Los Altos Hills at a special meeting held on the 19th day of December 2024 by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

BY: _______________________________
Stanley Q. Mok, Mayor
ATTEST:
______________________________
Arika Birdsong-Miller, City Clerk
ITEM 6D, Attachment 1

Town of Los Altos Hills
Fiscal year ended June 30, 2024
Final Draft
ITEM 6D, Attachment 2

Final Draft

ANNUAL

COMPREHENSIVE

FINANCIAL REPORT
For the Fiscal Year Ended
June 30, 2024
Town of Los Altos Hills, California

PREPARED BY

DEPARTMENT OF FINANCE AND ADMINISTRATIVE SERVICES
Final Draft

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Final Draft

Table of Contents

INTRODUCTORY SECTION
Letter of Transmittal ........................................................................................................................................... i Town Organizational Chart ............................................................................................................................... vi Town Officers .................................................................................................................................................. vii City Council ..................................................................................................................................................... viii GFOA Certificate of Achievement .................................................................................................................... ix

FINANCIAL SECTION
Independent Auditor’s Report ......................................................................................................................... 1 Management’s Discussion and Analysis ........................................................................................................... 5 Basic Financial Statements
Government-wide Financial Statements:

Statement of Net Position ................................................................................................................. 24 Statement of Activities ...................................................................................................................... 25 Fund Financial Statements:

Balance Sheet – Governmental Funds .............................................................................................. 28 Reconciliation of the Governmental Funds Balance Sheet to the Government-wide Statement of Net Position ........................................................................ 29 Statement of Revenues, Expenditures and Changes in Fund Balances – Governmental Funds ..................................................................................................................... 30 Reconciliation of the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balances to the Government-wide
Statement of Activities and Changes in Net Position .................................................................... 31 Statement of Fund Net Position – Proprietary Funds ....................................................................... 34 Statement of Revenues, Expenses and Changes in Fund Net Position – Proprietary Funds ............ 35 Statement of Cash Flows – Proprietary Funds .................................................................................. 36 Statement of Fiduciary Net Position – Fiduciary Funds .................................................................... 38 Statement of Changes in Fiduciary Net Position – Fiduciary Funds .................................................. 39 Notes to Basic Financial Statements ............................................................................................... 41 Final Draft

FINANCIAL SECTION (Continued)
Required Supplemental Information
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual – General Fund ................................................................................................................................... 76 Schedule of Proportionate Share of the Net Pension Liability ............................................................. 77 Schedule of Contributions – Cost-Sharing Multiple-Employer Defined Pension Plan ......................... 78 Schedule of Changes in the Town’s Net OEPB Liability and Related Ratios ......................................... 79 Schedule of OPEB Contributions .......................................................................................................... 80 Notes to the Required Supplementary Information ............................................................................ 81 Supplemental Information
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual:

Street Capital Projects Fund ............................................................................................................ 84 Other Capital Projects Fund ............................................................................................................ 85 Sewer Enterprise Fund .................................................................................................................... 86 Nonmajor Governmental Funds:

Combining Balance Sheets .............................................................................................................. 88 Combining Statement of Revenues, Expenditures and Changes in Fund Balances ........................ 89 Combining Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual ......................................................................................................................... 90

STATISTICAL SECTION
Net Position by Component ........................................................................................................................... 94 Changes in Net Position .................................................................................................................................. 96 Fund Balances of Governmental Funds ................................................................................................... 100 Changes in Fund Balances of Governmental Funds ..................................................................................... 102 Assessed and Estimated Actual Value of Taxable Property ......................................................................... 104 Property Tax Rates – Direct and Overlapping Governments ....................................................................... 105 Principal Taxpayers ....................................................................................................................................... 106 Property Tax Levies and Collections ............................................................................................................. 107 Ratios of Outstanding Debt by Type............................................................................................................. 108 Direct and Overlapping Debt ........................................................................................................................ 109 Legal Debt Margin Information .................................................................................................................... 110 Demographics and Economic Statistics ........................................................................................................ 111 Principal Employers ...................................................................................................................................... 112 Full-Time Equivalent City Government Employees by Function .................................................................. 113 Operating Indicators by Function ................................................................................................................. 114 Capital Asset Statistics by Function .............................................................................................................. 116 Final Draft

INTRODUCTORY

SECTION
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Letter of Transmittal
i
Letter of Transmittal
December 16, 2024
To the Residents of the Town of Los Altos Hills,
Honorable Mayor and Members of the City Council
We are pleased to submit the Annual Comprehensive Financial Report (ACFR) for the Town of Los Altos Hills, California (Town), for the fiscal year ended June 30, 2024. This report was prepared in accordance with accounting principles generally accepted in the United States of America and contains information to help readers gain a reasonable understanding of the Town’s financial activities.

The responsibility for the accuracy of the information and the completeness and fairness of the presentation, including all disclosures, rests on the Town’s management. To the best of our knowledge, we believe that the information reported is accurate in all material respects and its presentation fairly shows the financial position and the results of the Town’s operations. In providing a reasonable basis for making these representations, management has established a thorough internal control system designed to protect the government’s assets from loss, theft, or misuse and to compile necessary information for preparing the Town’s financial statements. The financial statements are to provide reasonable, rather than absolute, assurance that they are free of any material misstatements.

The ACFR is presented in three major sections that provide introductory, financial as of June 30, 2024, and statistical information about the Town. The introductory section includes this transmittal letter, the Town's organizational chart, and a list of the Town's principal officials. The financial section includes the independent auditor's report, basic financial statements, notes to basic financial statements, required supplementary information, and supplementary information on non-major funds.

Maze & Associates, a firm of licensed certified public accountants, has issued an unmodified (“clean”) opinion on the Town’s financial statements for the fiscal year ended June 30, 2024. The independent auditor’s report is presented as the first component of the financial section of this report.

Management discussion and analysis (MD&A) immediately follows the independent auditor’s report and provides a narrative introduction, overview, and analysis of the basic financial statements. MD&A presents a comparative analysis of current and prior year results, changes in financial position, financial highlights, trends, and disclosure of any known significant events or decisions that affect the financial condition of the Town. This transmittal letter complements the MD&A and should be read in conjunction with it.

Town Profile
The Town of Los Altos Hills is a residential community located in Santa Clara County, California, approximately

18.6 miles northwest of San Jose and 38.5 miles southeast of San Francisco. The Town was incorporated on January 27, 1956, and covers 9 square miles. Additionally, the Town has influence over 5.2 square miles of Final Draft

Letter of Transmittal
ii
unincorporated land adjacent to its boundaries. The Town’s sphere of influence includes over 60 miles of pathways and 100 acres of open space.

The Town operates under a Council-Manager form of government. Policy-making and legislative authority rest with the City Council, which consists of five elected Councilmembers. These members serve overlapping four-year terms and, each December, appoint a Mayor and Vice Mayor from among themselves. The City Council is responsible for passing ordinances, adopting the budget, appointing members to the Planning Commission and Volunteer Committees, and hiring the City Manager and City Attorney. The City Manager, in turn, is responsible for implementing the policies and ordinances of the City Council, managing the day-today operations of the Town, and appointing Town staff.

The Town provides a full range of essential services through a combination of in-house staff and contracted services. The Town’s 28 full-time equivalent employees provide services such as planning, engineering, building inspection, public infrastructure maintenance, recreation, and limited parks and open space maintenance. Partnerships with neighboring cities, counties, and special districts allow the Town to deliver law enforcement, fire services, sewer conveyance and treatment, water services, and technology support.

Additionally, contract services are used for code enforcement, trash collection, payroll services, staff augmentation, and management of Westwind Barn.

The costs of providing these services are reviewed annually as part of the Town’s operating and capital budget process. The annual budget serves as the foundation for the Town’s financial planning, monitoring, and control. All Town departments are required to submit budget requests to the City Manager each spring. The City Manager reviews these requests and develops a proposed budget, which is submitted to the City Council for review prior to June 30 each year. The City Council holds public hearings, and a final budget is adopted on or before June 30.

Budgetary reviews and controls are outlined in the Notes to Required Supplementary Information. Budgetto-actual comparisons are provided for each major governmental fund with an adopted budget in the required supplementary and supplementary information sections of this report.

Throughout the year, the Finance Department monitors economic changes that may impact the Town’s revenue streams, collaborates with departments to identify changing needs, and presents budget adjustments to the City Council as part of the mid-year review. Public input is gathered through the Town’s standing committees and staff liaisons. These inputs are considered in the budget development process and are presented to the City Council for review as part of the annual budget process and throughout the year in separate Council action items.

Los Altos Hills Financial Outlook
As outlined in the Basic Financial Statements, the Town remains in a strong financial position. As of June 30, 2024, the total unrestricted fund balance for governmental activities stands at $17.6 million, of which $2.3 million is unassigned and available to address both current and future liabilities. The Town’s ability to maintain fiscal strength has been supported by the ongoing recovery from the COVID-19 pandemic and the Final Draft

Letter of Transmittal
iii
overall resilience of the economy. Strong assessed property values, coupled with continued development activity and building improvements, have contributed to stable revenue growth throughout the year.

However, despite the Town’s solid financial standing, pension costs and liabilities continue to rise significantly, driven by updated actuarial projections from CalPERS. These projections reflect anticipated lower long-term investment returns, higher employee compensation, longer life expectancies, and earlier retirements. In response, the Town has implemented several measures, including compliance with PEPRA pension benefits for new employees, increasing employee contributions to pension costs, and making voluntary payments to reduce long-term pension liabilities. Nonetheless, the Town’s unfunded pension liability grew in the past year, primarily due to CalPERS investment returns falling short of the assumed discount rate for the fiscal year ending June 30, 2023. Detailed information on the Town’s pension and OPEB obligations can be found in the Notes to the Financial Statements.

While the Town’s revenues exceeded expenditures in FY 2023-24, this surplus was largely the result of vacancies and reduced spending. As we move forward, we plan to fill these vacancies in alignment with rising service demands. Additionally, a significant portion of resources has been allocated to enhancing public safety, underscoring the Town’s ongoing commitment to community resilience and security.

Throughout the past fiscal year, the Town of Los Altos Hills successfully navigated a range of organizational and financial challenges. Despite limited staff capacity, the Town adopted a FY 2024-25 budget and a forwardlooking FY 2025-26 plan—its first-ever biennial budget. This accomplishment was particularly notable given unexpected staff turnover and budget constraints. The biennial budget also strategically utilizes fund balances accumulated in prior years to address critical services and capital improvement projects that have carried over into the upcoming fiscal years.

Key priorities for the next two-year cycle include enhancing service levels, filling vacancies while ensuring staff retention, improving operational efficiencies, and aligning with the Town Council’s goals. Other focal areas will include responding to evolving workplans, resolving deferred maintenance, investing in staff training and development, upgrading the Town’s IT infrastructure, complying with State mandates (such as the housing element, objective design standards, the Zoning Ordinance Update, and related CEQA compliance), and further strengthening community resilience and safety.

The Economy and Its Impact
Los Altos Hills has twelve non-residential properties and approximately 3,000 single-family residential properties. The twelve non-residential properties include Fremont Country Club, Purissima Hills Water District, the LAHCFD vacant lot (with the El Monte Fire Station part of Foothill College), Town Hall, Foothill College, four religious institutions, and three schools. With no commercial base, the Town’s primary revenue sources are property tax, other taxes, charges for services, and development permit fees from private development.

According to the latest property tax analysis by HdL, the local real estate market remains strong, with an increase in total assessed valuation. In 2024, single-family homes are selling for higher sale prices compared to last year. In the first 10 months of 2024, there have been 60 property sales, up from 55 in 2023 and 83 in 2022. The median sale price has increased from $5.3 million in 2023 to $5.8 million in 2024. This price growth Final Draft

Letter of Transmittal
iv
is primarily driven by higher interest rates and a limited supply of properties for sale. However, if the typical annual price increase for single-family homes of 2.5% to 3.5% slows to a more modest 1% to 2%, the forecast for 2025-26 may be less favorable.

Property tax revenues typically lag behind the housing market by one year. The property valuation used to calculate tax revenues for homes sold is based on the sale prices from the previous year. For FY 2023-24, the Town’s net taxable assessed value is $10.5 billion, reflecting an increase of 5.76% over FY 2022-23. For FY 2024-25, the net taxable assessed value is projected to reach $11.1 billion, representing an increase of $542.4 million, or 5.2%. This compares to a positive increase of $572.5 million, or 5.8%, in the 2023-24 tax year. Staff closely monitors property tax revenue projections from the County Controller-Treasurer’s Office and HdL to ensure that the Town’s revenue forecast incorporates the most up-to-date data.

Long-Term Financial Planning and Financial Policies
Town management is developing a five-year financial projection for all funds, covering anticipated revenues and expenditures. This approach enables the Town to identify potential fiscal challenges early, allowing time to strategically plan for economic cycles and ensure the provision of stable and consistent services to residents.

For capital projects, the Town maintains a five-year capital improvement plan, which is updated annually.

This plan offers a long-term forecast of identified capital projects and serves as a tool for Town management and the City Council to plan, prioritize, and monitor capital initiatives.

The Town has established a reserve policy to allocate unrestricted general fund balance for pension, operating contingency, disaster contingency, and technology/equipment replacement reserves. The Town intends to continue enhancing its financial policies, including the reserve policy, and will review these policies annually.
$-
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$7,000,000
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Single Family Homes Sales Value History
Median Sales Price Average Sales Price
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Letter of Transmittal
v
Award and Acknowledgement
The Government Finance Officers Association (GFOA) has awarded the Town of Los Altos Hills the Certificate of Achievement for Excellence in Financial Reporting for its ACFR for the fiscal year ending June 30, 2023. This prestigious award recognizes governments that publish an ACFR that is not only clear and well-organized but also complies with Generally Accepted Accounting Principles (GAAP) and meets all relevant legal requirements for financial reporting. The Certificate of Achievement is awarded for one year, and we believe our current ACFR continues to meet the rigorous standards of the GFOA’s program. As such, we are submitting the report for review to determine its eligibility for a renewal of this distinction.

The successful preparation of the ACFR is a team effort, and we extend our sincere appreciation to the Finance Department, as well as to all other departments, whose hard work and collaboration made this possible.

Finally, we would like to express our gratitude to the City Council and the Finance and Investment Committee for their ongoing commitment to the responsible management of the Town’s financial operations.

Respectfully submitted,
Peter Pirnejad
City Manager
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Residents of Los Altos Hills
ADMIN.CLERK/

TECHNICIAN

CITY MANAGER

PUBLIC WORKS DIRECTOR &

CITY ENGINEER CITY CLERK

ASSISTANT

COMMUNITY

DEVELOPMENT

DIRECTOR

ADMINISTRATIVE/

CLERK TECHNICIAN

ASSISTANT

ENGINEER
(2)

ASSOCIATE

ENGINEER

MAYOR AND CITY COUNCIL CITY ATTORNEY

PUBLIC WORKS

INSPECTOR

UTILITY ENGINEERING

MANAGER

SENIOR ACCOUNTANT

ADMINISTRATIVE

SERVICES / FINANCE

DIRECTOR

COMMUNITY DEVELOPMENT

DIRECTOR
SENIOR

PLANNER

BUILDING

TECHNICIAN/

INSPECTOR

COMMUNITY SERVICES

SUPERVISOR

ACCOUNTING

TECHNICIAN

ITSERVICES

CONTRACT

EMERGENCY

PREPAREDNESS

COORDINATOR

SHARED EMPLOYEE

PUBLIC SAFETY

CONTRACT
SCC Office of the Sheriff

ASSOCIATE

PLANNER

PLANNING COMMISSION

CITY COUNCIL VOLUNTEER
ADVISORY COMMITTEES (14)

MANAGEMENT

ANALYST

ASSISTANTTOCITYMANAGER

ACCOUNTANT

MAINTENANCE SERVICES

MAINTENANCE

SUPERINTENDENT

MAINTENANCE

WORKER I

MAINTENANCE
WORKER III (2)

MAINTENANCE

WORKER II
vi
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Town Officers
As of June 30, 2024
City Council
Stanley Mok, Mayor November 2024
Lisa Schmidt, Vice Mayor November 2024
Linda Swan November 2024
Kavita Tankha November 2026
George Tyson November 2026
City Council Appointed
Peter Pirnejad, City Manager
Steve Mattas, City Attorney (contract)
City Manager Appointed
Vacant, Finance Director
Bradley Evanson, Community Development Director
WooJae Kim, Public Works Director
Arika Birdsong-Miller, City Clerk
Cody Einfalt, Assistant to the City Manager
Term Expires
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2024 CITY COUNCIL
Vice Mayor Lisa H. Schmidt
Term of Office: November 2024
Councilmember Kavita Tankha
Term of Office: November 2026
Mayor Stanley Q. Mok
Term of Office: November 2024
Councilmember George K. Tyson
Term of Office: November 2026
Councilmember Linda G. Swan
Term of Office: November 2024
viii
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Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
Town of Los Altos Hills
California
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June 30, 2023
Executive Director/CEO
ix
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FINANCIAL

SECTION
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INDEPENDENT AUDITOR’S REPORT
To the Honorable Members of the Town Council
Town of Los Altos Hills, California
Opinions
We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the Town of Los Altos Hills, California (Town), as of and for the year ended June 30, 2024, and the related notes to the financial statements, which collectively comprise the Town’s basic financial statements as listed in the Table of Contents.

In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the Town as of June 30, 2024, and the respective changes in financial position and, where applicable, cash flows thereof, in the Table of Contents for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the Town and to meet our other ethical responsibilities, in accordance with the relevant ethical requirement relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Town’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.

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Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Misstatements are considered material if there is substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with generally accepted auditing standards, we:
• Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Town’s internal control. Accordingly, no such opinion is expressed.
• Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
• Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the Town’s ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.

Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the Management’s Discussion and Analysis and other required supplementary information as listed in the Table of Contents be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

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Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Town’s basic financial statements. The accompanying Supplementary Information, as listed in the Table of Contents, is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements.

The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the Supplementary Information is fairly stated, in all material respects, in relation to the basic financial statements as a whole.

Other Information
Management is responsible for the other information included in the annual report. The other information comprises the Introductory Section and Statistical Section listed in the Table of Contents, but does not include the basic financial statements and our auditor’s report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon.

In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report.

Pleasant Hill, California
DATE
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Management’s Discussion and Analysis
Management’s Discussion and Analysis
For the Year Ended June 30, 2024
As the management of the Town of Los Altos Hills, we offer readers of the Town's financial statements this narrative overview and analysis of the financial activities of the Town of Los Altos Hills for the year ended June 30, 2024. We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in our letter of transmittal, which can be found on pages i-v of this report.

FINANCIAL HIGHLIGHTS
Town-Wide Financial Highlights:
• The Town’s total assets and deferred outflows of resources exceeded its liabilities and deferred inflows of resources at June 30, 2024 by $65.3 million (net position). Of this amount, $22.1 million was reported as unrestricted net position, which may be used to meet ongoing obligations to citizens and creditors.
• Changes in Net Position – The Town’s total net position increased by $2.6 million as reflected in the government-wide statement of activities. Net position of governmental activities increased by $2.0 million. Revenue increased in all categories, especially investment income. Investment income increased $1 million from $201,651 in the prior year to $1,234,797 this year due to maturing investments being reinvested at markedly higher-yielding interest rates. Net position of business-type activities increased by $626,436, reflecting the impact of higher sewer rates and connection fees to provide for needed capital investment in sewer mains. • Cash and investments at June 30, 2024, totaled $32.4 million, of which $25.7 million was classified as government activities and $6.6 million was under the business-type activities category (Sewer).

The Town's cash and investments, including restricted cash and investments, increased $966,873, or 3.0% as compared to the prior year, due to revenues exceeding expenses. • Accounts payable and other current liabilities at June 30, 2024, totaled $7.3 million. Of this amount, $2.0 million was reported in the Sewer Fund. There is $4.2 million in refundable deposits relating to development. There is no long-term bonded debt outstanding at the close of the fiscal year.

Fund Highlights:
• Governmental Funds – Fund Balances – At the close of fiscal year, the Town’s governmental funds reported a combined fund balance of $20.7 million, a decrease of $172,821 or 0.8% from the prior year. Of the total, $2.3 million, or 11.3% of the fund balance is available for spending at the government’s discretion (unassigned fund balance).
• General Fund unassigned fund balance at June 30, 2024, was $2.5 million, an increase of $81,643, or 3.3% over the previous year. The unassigned fund balance increased primarily because revenues exceeded expenditures due to vacancies and expenditure controls.

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Management’s Discussion and Analysis
• Sewer Fund unrestricted net position at June 30, 2024, was $4.6 million, an increase of $626,436, or 5% over the previous year. Total net position was $13,134,778, an increase of $288,909, or

7.0%, from the prior year. Charges for services increased by $270,963, or 8.3% above the previous year due to a 6% increase in sewer rates and the addition of new residential connections. Salaries and benefits decreased by $80,482 or 22.8% due to lower pension related expense and the decrease in staffing. The increase in expenditure was due primarily to the 25% increase in treatment and conveyance cost from the City of Palo Alto and City of Los Altos due in part to the start of a $360 million plant upgrade.
• Pension – At the close of the fiscal year, the Town’s net pension liability totaled $3,109,217 as of June 30, 2024, an increase of $438,735—significantly lower than the $2,884,352 increase recorded in the prior year. The pension liability increases are due primarily to CalPERS investment returns being less than expected for the last two years. Offsetting this liability, the Town’s PARS 115 Trust held a balance of $1.2 million as of June 30, 2024. The Town has one of the highest funding ratios of municipalities in the state according to CalPERS Actuarial Valuation Reports dated June 30, 2023. Town has three plans, Classic Miscellaneous group is 81.1% funded, 2nd Tier is at 88.2% and the PEPRA tier is at 88.9%.
• Other Post-Employment Benefits (OPEB) – The Town’s California Employers' Retiree Benefit Trust (CERBT) is now underfunded by $59,461, a shift from last year’s OPEB asset of $233,039, updated actuarial assumptions, unexpected plan experience (including higher retirements and new hires), and lower-than-expected investment returns. The Town has requested reimbursements from the Trust Account to pay current OPEB expenses in fiscal year 2024. • Reserves – Each year, the City Council reviews the current committed and assigned reserves and updates the balances of these reserves as necessary. Any changes are adopted by resolution of the City Council. General Fund committed and assigned reserves haven’t changed. General Fund restricted reserves increased due to investment gains in the Pension Trust. • Leases – The Town adopted GASB Statement No. 87. This statement requires recognition of certain lease assets and liabilities for leases in FY 2023-24 and recognition as inflows of resources or outflows of resources based on the payment provision of the contract. The Town recognizes a lease receivable and a deferred inflow of resources in the government-wide financial statements, as well as in the applicable funds for six cell phone communications sites. (see Note 5).

OVERVIEW OF THE FINANCIAL STATEMENTS
This discussion and analysis are intended to serve as an introduction to the Town's basic financial statements, which consist of three components: government-wide financial statements, fund financial statements, and notes to the financial statements. This report also contains supplementary information in addition to the basic financial statements such as this discussion and analysis.

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Management’s Discussion and Analysis
Government-wide Financial Statements
The government-wide financial statements are designed to provide readers with a broad overview of the Town's finances, in a manner similar to private-sector business.

The Statement of Net Position presents information on all of the Town of Los Altos Hills' assets and liabilities, deferred inflows and outflows of resources, with the difference between the four components reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the Town is improving or deteriorating.

The Statement of Activities presents information showing how the Town's net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will result in cash outflows in future fiscal periods, for example, earned but unused vacation leave. These government-wide financial statements begin on page 26 of this report.

Fund Financial Statements
A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The Town uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All the funds of the Town can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds.

Governmental Funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in assessing a government’s near-term financing requirements.

Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government’s near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities.

The Town maintains seven individual governmental funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances for the General Fund, Street Capital Projects Fund, and Other Capital Projects, which are considered to be major funds. Data from the other four governmental funds are combined into a single aggregated presentation. Individual fund data for each of these nonmajor governmental funds is provided in the form of combining statements in the combining and individual fund statements and schedules section of this report commencing on page 88.

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Management’s Discussion and Analysis
The Town adopts an annual appropriated budget for all funds. A budgetary comparison statement has been provided for the General Fund to demonstrate compliance with this budget. The budgetary comparison schedule for the General Fund can be found on page 76.

The basic governmental fund financial statements can be found on pages 28-31 of this report.

Proprietary Funds. The Town maintains two different types of proprietary funds – enterprise funds and internal service funds. Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The Town uses an enterprise fund to account for the sewer operations. Internal service funds are an accounting device used to accumulate and allocate costs internally among the Town's various functions. The Town uses an internal service fund to account for the central town services, corporation yard services, and the repair and replacement of equipment and vehicles. Because these services predominantly benefit governmental rather than business-type functions, it has been included within governmental activities in the government-wide financial statements.

Proprietary funds provide the same type of information as the government-wide financial statements, only in more detail. The proprietary fund financial statements provide separate information for the sewer operations.

The basic proprietary fund financial statements can be found on page 34-36 of this report.

Fiduciary Funds. Fiduciary funds are used to account for resources held for the benefit of parties outside of the government. Fiduciary funds are not reported in the government-wide financial statements because the resources of those funds are not available to support the Town’s own programs. The accounting used for fiduciary funds is much like that used for proprietary funds.

The Town maintains an agency fund, which is used to report resources held by the Town in a custodial capacity for the West Loyola Special Assessment District.

The fiduciary fund financial statements can be found on page 38-39 of this report.

Notes to the Financial Statements. The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes to the financial statements can be found on pages 41-73 of this report.

Other Information. In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information concerning the Town's general fund budget to actual performance and progress in funding its obligation to provide pension and other post-employment benefits to its employees. Required supplementary information can be found on page 76-81 of this report.

The combining statements referred to earlier in connection with Nonmajor Governmental Funds are presented immediately following the required supplementary information. Combining and individual fund statements and schedules can be found on pages 84-90 and the Statistical Section follows on page 93.

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Management’s Discussion and Analysis

GOVERNMENT-WIDE OVERALL FINANCIAL ANALYSIS
Net Position
As noted above, net position may serve over time as a useful indicator of a government's financial position. In the case of the Town of Los Altos Hills, assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $65.3 million at the close of the fiscal year.

The government’s overall net position increased by $2.6 million, or 4.2%, from the previous year. This growth was driven by higher revenues from investment income, property taxes, licenses and permits, and franchise fees, combined with reduced expenditures due to lower pension expenses, vacancy savings, and expenditure controls.

The largest portion of the Town's net position, $40.6 million or 62.2%, represents its net investment in capital assets—land, buildings, machinery, equipment, and infrastructure. These capital assets are utilized to provide services to residents and are not available for future spending.

A portion of the Town’s net position, totaling $2.5 million, consists of restricted resources subject to external usage restrictions. The two largest components are the Section 115 Pension Trust, with $1,209,137, and American Rescue Plan Act funds, totaling $813,105. Additional restricted resources include in-lieu fees for parks, grants, and restricted donations. The remaining $22.1 million is unrestricted and available to support the Town’s ongoing services and operational needs, with $4.6 million specifically designated for sewer-related obligations.

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Management’s Discussion and Analysis
On June 30, 2024, the Town is able to report positive balances in all categories of net position, both for the government as a whole, as well as for its separate governmental and business-type activities. Total net position has generally increased over the most recent ten years for governmental activities and business-type activities as illustrated in the graph below. The Town of Los Altos Hills has maintained a stable financial position.

Changes in Net Position
The following schedule reflects the net changes in net position for the fiscal years 2024 and 2023. The Town’s overall net position increased by $2.6 million from the prior fiscal year. The reasons for this overall increase are discussed in the following sections for governmental activities and business-type activities.

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Management’s Discussion and Analysis
Town of Los Altos Hills
Statement of Activities and Changes in Net Position
Governmental Activities. In fiscal year 2024, the net position in governmental activities increased by $2.0 million, resulting in an ending balance of $52.1 million.

Major changes in revenues and expenses of governmental activities:
• Property tax totaled $8.5 million, an increase of $377,814, or 4.6%. The increase of property tax revenue is due to a strong real estate market and increases in assessed property values.

Governmental Business-Type Governmental Business-Type
Activities Activities Total Activities Activities Total Revenues
Program revenues
Charges for services $ 6,725,097 $ 3,534,615 $ 10,259,712 $ 5,988,758 $ 3,263,652 $ 9,252,410 Operating grants and contributions 219,153 - 219,153 950,243 - 950,243 Capital grants and contributions 506,455 154,081 660,536 445,174 97,754 542,928 Total program revenues 7,450,705 3,688,696 11,139,401 7,384,175 3,361,406 10,745,581 General revenues
Property taxes 8,531,557 8,531,557 - 8,153,743 8,153,743 - Other taxes 667,742 - 667,742 583,726 - 583,726
Franchise fees 665,597 - 665,597 391,130 - 391,130
Investment income 1,063,607 171,190 1,234,797 180,170 21,481 201,651 Other unrestricted revenue 30,136 13,194 43,330 54,058 480 54,538 Gain on disposal of capital assets - -
Total general revenues 10,958,639 184,384 11,143,023 9,362,827 21,961 9,384,788 Total revenues 18,409,344 3,873,080 22,282,424 16,747,002 3,383,367 20,130,369 Expenses
General government 2,335,260 2,335,260 - 4,781,296 4,781,296 - Public safety 4,038,777 4,038,777 - 3,026,838 3,026,838 - Community development 4,800,671 - 4,800,671 4,575,519 4,575,519 - Public works 3,522,098 3,522,098 - 3,571,203 3,571,203 - Parks and recreation 1,683,650 1,683,650 - 1,736,231 1,736,231 - Non-Departmental - - - 106,697 - 106,697
Sewer utilities 3,256,502 - 3,256,502 2,926,892 - 2,926,892 Total expenses 16,380,456 3,256,502 19,636,958 17,797,784 2,926,892 20,724,676 Increase (decrease) in net position
before transfers 2,028,888 616,578 2,645,466 (1,050,782) 456,475 (594,307) Transfers (9,858) 9,858 - (9,300) 9,300 -
Change in net position 2,019,030 626,436 2,645,466 (1,060,082) 465,775 (594,307) Net position at beginning of year 50,100,155 12,508,342 62,608,497 51,160,237 12,042,567 63,202,804 Net position at end of year $ 52,119,185 $ 13,134,778 $ 65,253,963 $ 50,100,155 $ 12,508,342 $ 62,608,497 Year Ended June 30, 2024 Year Ended June 30, 2023
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Management’s Discussion and Analysis
• Charges for services revenue totaled $6.7 million, reflecting an increase of $736,339, or 12%, primarily driven by higher residential development license and permit revenues. This increase followed the adoption of a revised master fee schedule for building and planning fees in fiscal year 2021-22 based on a Cost Allocation and User Fee Study conducted in fiscal year 2019-20. In fiscal year 2022-23, an investigation found a spike in residential building permit fees, and an audit of plan-check fees identified a potential anomaly. In October 2022, the Council approved recommendations to audit permits issued since the fee schedule’s adoption, adjust fees going forward, and conduct a new Cost Allocation and User Fee Study. In July 2023, the Town received a $304,359 refund from its plan-check contractor. In November 2024, the Council, in closed session, decided on handling these funds and directed staff to take necessary actions to distribute the funds appropriately to the original plan-check applicants. • Other taxes increased by $84,016, or 14%, due to increases in property transfer and sales tax revenue.
• Franchise fees totaled $665,597, an increase of $274,467, or 70%, mainly due to the restart of solid waste franchise fees after a four-year hiatus as part of the new agreement signed in 2019.

Beginning July 1, 2023, and annually thereafter, franchisee shall remit to the Town within ten days of the end of each month a franchise fee in the amount of 7.52% of all revenues received in the prior month relating to the performance of the agreement. • Capital grants and contribution revenue increased by $117,608, or 22%, mainly due to the increase in Measure B and VRF grants through VTA.
• The Town spent $264,451 of American Rescue Plan Act (ARPA) Funds, primarily on capital improvements. The remaining balance of $813,105 will be spent primarily on improving broadband connectivity in the Town in conjunction with a third-party. All funds have been obligated by 2024 year-end and will be expended by 2026. • Total expenses for all governmental activities amounted to $16.4 million in fiscal year 2023-24, representing a decrease of $1.4 million, or 8%, compared to the prior year. This reduction was primarily driven by a lower pension expense.
• The Town’s governmental activities expenses are related to 14.3% general government; 24.6% public safety; 29.3% community development; 21.5% public works; 10.3% parks and recreation. • Investment income increased significantly from $180,170 in the prior year to $1,063,607 in the current year. The increase of $883,437 was primarily due to maturing investments being reinvested at higher-yielding rates. For additional details, see Note 2: Deposits and Investments.

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Management’s Discussion and Analysis
The following graph depicts the expense and program revenues from charges for services by governmental activities for the fiscal year 2024.

The graph below illustrates the sources of revenue for governmental-type activities. Property taxes represent the largest share, accounting for 46.3% of total governmental revenue. Charges for services contribute significantly as well, comprising 36.5%. Other notable sources include investment income at

5.8%, franchise fees at 3.6%, capital grants and contributions at 2.8%, and operating grants and contributions at 1.2%.

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Management’s Discussion and Analysis

The table below shows the governmental activities, total costs of services and costs of net services for fiscal year 2024. This table identifies the cost of these services supported by charges for services, operating grants, and capital grants.

Business-type Activities. In fiscal year 2024, business-type activities increased the Town’s net position by $626,436, resulting in an ending balance of $13.1 million.

The Town has one business-type activity related to sewer utilities and sewer capital infrastructure.

Charges for services are the primary revenue source, totaled $3.5 million and accounting for 91.3% of total revenues. Charges for services increased by $270,963, or 8.3%, from the prior year. Additional revenue sources, including capital contributions, investment gains, and other income totaled $338,465.

Below is a graph illustrating the revenue composition for business-type activities.

Net Cost
Total Cost (Benefit)
of Services of Services % of
2024 2024 Total Costs
Governmental activities:

General government 2,335,260 $ 929,924 $ 14.26%
Public safety 4,038,777 (3,833,911) 24.66%
Community development 4,800,671 (2,365,719) 29.31%
Public works 3,522,098 (2,361,718) 21.50%
Parks and recreation 1,683,650 (1,298,327) 10.28%
Total governmental activities 16,380,456 $ $ 100.00% (8,929,751) Page | 14 Final Draft

Management’s Discussion and Analysis
The business-type activities charges for services were $3,534,615, capital contributions and grants were $154,081, expenses were $3,256,502, and the net benefits of services was $432,194. In addition, there was $9,858 transferred from the General Fund to the Sewer Fund account for the Town use of sewer system for the past year.

FUND FINANCIAL ANALYSIS
The Town uses fund accounting to ensure and demonstrate compliance with finance related legal requirements. The Town’s governmental funds are accounted for using the modified accrual basis of accounting. The Town’s proprietary funds provide the same type of information found in the governmentwide financial statements, but in more detail.

Governmental Funds
The Town’s governmental funds focus on near-term inflows, outflows, and balances of spendable resources, providing important insights into the Town’s financing requirements.

As of June 30, 2024, the Town’s governmental funds reported a combined ending fund balance of $20.7 million, a decrease of $172,821, or 0.8% from the prior year. Of this total, $2.3 million, or 11.1%, constitutes unassigned fund balance that is available for discretionary spending. The remaining balance is restricted, committed, or assigned for designated purposes.

Committed and assigned fund balances primarily consist of reserves for future uses, which are approved annually by the City Council during the budget process. A significant portion of these funds is allocated to capital projects, also approved during the annual budget cycle (see Note 8B). Further details on governmental funds revenues, expenditures, and changes in net position over the last ten years can be found in the Statistical Section on pages 100-101 of this report.

The General Fund, the Town’s primary operating fund, ended the fiscal year with an unassigned fund balance of $2.5 million, while the total fund balance increased to $16.9 million. The unassigned fund balance represents 17% of total General Fund expenditures of $15.0 million, reflecting the fund's liquidity and fiscal strength. The General Fund’s total fund balance increased by $187,460 from the prior year, primarily due to higher investment earnings and increased revenue.

General Fund Revenues for the year ending June 30, 2024 totaled $16.7 million, an increase of $2.1 million, or 14.3%. The following table summarizes revenues in major categories with a two-year comparison:

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Management’s Discussion and Analysis

The increase or decrease in revenue sources in the General Fund as compared to prior fiscal year are primarily attributable to the following:
• Property tax was $8.5 million, an increase of $377,814, or 4.6%. This increase was driven by an increase in single family home assessed value through property transfers, and allowed CPI increases on all properties.
• Taxes other than property were $599,107, an increase of $24,097, or 4.2%, as compared to the prior year. This increase is primarily attributable to other taxes (real property transfer tax and sales and use tax).
• Franchise fees were $665,597, an increase of $274,467, or 70.2%, during the current fiscal year mainly due to the resumption of solid waste franchise fees after a four-year hiatus under the contract.
• Licenses and permits totaled $1.8 million, an increase of $471,057, or 34.5% from the prior year.

The increase was primarily driven by higher residential development activity. • Intergovernmental revenue totaled $49,423, an increase of $10,984 or 28.6% from the prior year.

Intergovernmental revenue includes vehicle code fines, AB 939 fees, abandoned vehicle recovery, and supplemental grant funds for law enforcement. These revenues will fluctuate based on timing of payments and the amount of fees and recovery collected during the year. • Investment income was $1.0 million, an increase of $824,980, or 509.0%, due to higher interest rates.
• Charges for services totaled $1.1 million, an increase of $62,760 or 6.1%. Charges for services include various fees charged for Town services including administrative, community development, public works, parks and recreation, and engineering. Charges for services fluctuate year over year depending upon the services provided throughout the year. • Other revenue, totaled $31,000, a decrease of $27,230 or 46.8% from the prior year.

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Management’s Discussion and Analysis
The following table summarizes expenditure by department with a two-year comparison:

General Fund expenditures increased by $1,638,596, or 12.3% compared to the prior year. Public safety costs increased by $1,288,657 due to increases in the sheriff’s contract, overtime deputies, Automatic License Plate Readers (ALPRs), and private security. However, $432,877 of this increase is due to additional expense incurred in FY 2022-23, but was recorded in FY 2023-24 because the invoice and payment authorization occurred after the accrual period in the prior year. In FY 2022-23 the Town experienced an uptick in residential burglaries as compared to previous years. In response, law enforcement services were increased to reduce burglaries. While burglaries were lower in FY 2023-24, the Town continued the additional public safety measures, which resulted in increased costs. Community Development’s expenditures increased from the prior year mainly due to increased development activity.

General government expenses remained relatively unchanged, as a reduction in legal expenses offset higher consulting and other costs. Public Works, and Parks and Recreation expenses were also relatively unchanged.

The net between revenues and expenditures was $1.7 million before $1.5 million in net transfers to other funds. Transfers to other funds support capital improvement needs. Net transfers decreased by $1,061,418 from the prior year due to lower capital spending in the current year.

The Streets Capital Project Fund is classified as a major fund for the Town. Due to the amount transferred this year, the Streets Capital Project Fund had a balance of $212,184 as of June 30, 2024. 2024 2023 $ Variance % Variance
General government $ 2,875,773 $ 2,946,409 $ (70,636) -2.40% Public safety 3,630,943 2,342,286 1,288,657 55.02%
Community development 4,193,925 3,613,069 580,856 16.08% Public works 2,783,515 2,835,138 (51,623) -1.82%
Parks and recreation 1,481,576 1,494,966 (13,390) -0.90% Nondepartmental 95,268 (95,268) 0.00%
Total general fund expenditures $ 14,965,732 $ 13,327,136 $ 1,638,596 12.30% Revenue over expense $ 1,735,342 $ 1,284,077 $ 451,265 35.14% Increase(Decrease)
2024 2023 $ Variance % Variance
Intergovernmental
Gas Taxes $ 235,913 $ 218,868 $ 17,045 7.79%
SB1 Road Maintenance Rehab 219,429 189,766 29,663 15.63% Measure B 209,677 186,108 23,569 12.66%
Vehicle Registration 62,096 - 62,096 100.00%
Charges for Services 151,240 93,316 57,924 62.07%
Transfer In 474,651 648,181 (173,530) -26.77%
Total Revenues 1,353,006 1,336,239 16,767 1.25%
Less: Capital $ (1,363,950) $ (1,858,160) $ 494,210 -26.60% Net Change in Streets Capital
Improvement Fund $ (10,944) $ (521,921) $ 510,977 -25.34% Increase(Decrease)
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Management’s Discussion and Analysis
Excluding transfers in, total revenues were $878,355, an increase of $190,297, or 27.7%, primarily due to higher intergovernmental revenues for gas taxes, road maintenance rehabilitation, Measure B, and charges for services. Total spending was $1,363,950 for the annual street rehabilitation projects.

Proprietary Funds
The Town proprietary funds provide the same type of information found in the government-wide financial statements, but in more detail. The proprietary funds currently include an enterprise fund (Sewer Fund) and an Internal Service Fund.

The Town's Sewer Fund provides sanitary sewer services to roughly 60% of the parcels within the jurisdiction. Service fees are collected annually on the property tax roll. In May 2022, the City Council approved a sewer rate of 6 percent per year adjustment for a five-year period from fiscal year 2022-23 through fiscal year 2026-27. The increase in revenues will help the Town provide for rising operational costs and make improvements and perform routine preventive measures on the Town’s sewer infrastructure.

Unrestricted net position for the sewer utilities enterprise fund at the end of the fiscal year was $4,572,863. Total growth in net position for the sewer utilities enterprise fund was $626,436. Total sewer operating revenues increased by $283,677, or 8.7%, while sewer operating expenses increased by $329,610 or 11.3%. The increased expenses were primarily due to a significant increase in treatment and conveyance expenses charged by the City of Palo Alto and the City of Los Altos due in part to the $360 million upgrade of the treatment plant. Total interfund allocations increased by $17,711 or 7.5%, as compared to the prior fiscal year primarily due to increased overhead allocations. Sewer connection fees increased by $270,963 or 8.3%.

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Management’s Discussion and Analysis
Sewer Utility Enterprise Fund
Statement of Revenues, Expenses, and Changes in Fund Net Position 2024 2023 $ Variance % Variance
Operating Revenues
Sewer assessment charges 3,534,615 $ 3,263,652 $ 270,963 $ 8.30% Other 13,194 480 12,714 0.00%
Total Operating Revenues 3,547,809 3,264,132 283,677 8.69% Operating Expenses
Salaries and benefits 273,229 353,711 (80,482) -22.75%
Contract services - treatment plants 1,909,639 1,525,006 384,633 25.22% Professional services 13,470 18,220 (4,750) -26.07%
Support goods and services 2,174 4,329 (2,155) -49.78%
Repairs and maintenance 537,782 499,423 38,359 7.68%
Utilities 12,407 10,400 2,007 19.30%
Interfund charges: 0.00%
Town center allocation 23,614 26,273 (2,659) -10.12%
Vehicle and equipment allocation 8,532 9,559 (1,027) -10.75% Corp Yard allocation 29,996 30,905 (909) -2.94%
Overhead allocation 184,741 188,148 (3,407) -1.81%
Machinery and equipment - - 0.00%
Depreciation 260,918 260,918 - 0.00%
Total Operating Expenses 3,256,502 2,926,892 329,610 11.26% Earnings from operations 291,307 337,240 (45,933) -13.62% Nonoperating Revenues (Expenses)
Investment income 171,190 21,481 149,709 696.94%
Nonoperating Revene (Expenses), net 171,190 21,481 149,709 696.94% Income Before Contributions and Transfers
Capital Contributions - sewer connection fees 154,081 97,754 56,327 57.62% Transfers In 9,858 9,300 558 6.00%
Transfers out - - - 0.00%
Total Other Financing Sources and (uses) 163,939 107,054 56,885 63.62% Change in net position 626,436 465,775 160,661 34.49%
Net Position, beginning of year 12,508,342 12,042,567 465,775 3.87% Net Position, end of year $ 12,508,342 13,134,778 $ 626,436 $ 5.01% Increase(Decrease)
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Management’s Discussion and Analysis
The unrestricted net position for the Internal Service Fund at the end of the fiscal year was $822,323. Total decrease in net position for the internal service fund was $51,239, or 1.3%. Total operating revenues consist of interfund charges for services. These operating revenues decreased by $92,573, or 9.1% as compared to the prior fiscal year. Operating expenses decreased by $31,680, or 3.2%, as compared to the prior year.

Internal Service Fund
Statement of Revenues, Expenses, and Changes in Fund Net Position 2024 2023 $ Variance % Variance
Operating Revenues
Interfund Charges for Services
Other income $ 10,689 $ 11,601 $ (912) 0.00%
Town Hall services 674,828 750,820 -10.12% (75,992)
Corporate Maintenance Yard services 142,482 146,797 -2.94% (4,315) Vehicle services 94,342 105,696 -10.74% (11,354)
Total Operating Revenues 1,014,914 922,341 -9.12% (92,573) Operating Expenses
Salaries and benefits 229,387 180,153 27.33% 49,234
Professional services 89,143 88,081 1.21% 1,062
Support goods and services 124,387 106,018 -14.77% (18,369) IT support and maintenance 124,697 88,686 40.61% 36,011 Repairs and maintenance 128,245 146,076 -12.21% (17,831) Utilities 86,290 79,014 9.21% 7,276
Machinery and equipment 37,668 123,512 -69.50% (85,844) Depreciation 172,132 175,351 -1.84% (3,219)
Total Operating Expenses 1,005,260 973,580 -3.15% (31,680) Earnings (loss) from operations (51,239) 9,654 -630.75% (60,893) Nonoperating Revenues (Expenses)
Gain on disposal of capital assets - - 0.00% -
Other income - - 0.00% -
Nonoperating Revenues - - 0.00% -
Change in net position (51,239) 9,654 -630.75% (60,893) Net Position, beginning of year 4,019,716 4,010,062 0.24% 9,654 Net Position, end of year $ 4,019,716 3,968,477 $ $ -1.27% (51,239) Increase(Decrease)
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Management’s Discussion and Analysis

GENERAL FUND BUDGETARY HIGHLIGHTS
The Town’s budget process began after the mid-year financial update presentation to the Finance and Investment Committee and the City Council. The Finance Department facilitates the development and consolidates input from all Town departments. The consolidated budget inputs are reviewed by the City Manager and presented to the City Council and the Finance and Investment Committee in a joint budget study session. A budget is adopted by June 30 of each year. During the year, the departments will present to the City Council for contract awards for all services exceeding $60,000. Availability of budget for this award is part of the requests presented by the departments to the City Council. Additionally, the Finance Department monitors the budget during the year and prepares a mid-year financial update to the Finance and Investment Committee and the City Council. As part of this mid-year financial update, budget amendments are proposed to address any significant economic concerns and to incorporate prior City Council actions that had changed appropriation or for reallocation of budget items.

The actual general fund revenues were $16,701,074, which is more than the final budget of $15,881,160.

The actual general fund expenditures were $14,965,732, which were less than the final budget of $16,491,115, as the Town made a concentrated effort to control expenditures. Shown below are the expenditures by function for fiscal year 2024 as compared to the final budget.

CAPITAL ASSETS AND LONG-TERM DEBT ADMINISTRATION
Capital Assets
The Town's investment in capital assets for its governmental and business-type activities as of June 30, 2024, amounts to $40,596,499 (net of accumulated depreciation), an increase of $3,240,549 or 8.7%. The investment in capital assets includes land, buildings, equipment, vehicles, and infrastructure. Current year capital spending included $4,623,215 in infrastructure, $4,458 for SBITAs (Right-to-Use), $263,060 in vehicles, and $610,586 in the sewer collection system as compared with $3,295,563, $23,429, $0, and $607,668, respectively, in the prior year. No changes were recorded in land for the fiscal year. The table on the following page presents summarized information on capital assets net of depreciation for fiscal years 2024 and 2023. Additional information on the Town's capital assets can be found in Note 4 to the financial statements.

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Management’s Discussion and Analysis
Town of Los Altos Hills
Capital Assets (Net of depreciation)
Long-Term Debt
As of June 30, 2024, the Town has no long-term bonded debt. The Town’s remaining long-term obligations consist of pension and OPEB-related liabilities. The net pension liability stands at $3,109,217, an increase of $438,735 from the prior year, primarily driven by lower-than-expected investment returns and an increase in the Town’s share of assets and liabilities within the CalPERS 'Miscellaneous' pension pool. The Town’s OPEB-related obligations had a net OPEB liability of $59,461, reflecting an increase of $292,500 from the prior year’s net OPEB asset of $233,039. This shift was due to updated actuarial assumptions, unexpected plan experience—such as higher retirements and new hires—and lower-than-expected investment returns.

Economic Factors and Next Year’s Budgets
The Town of Los Altos Hills is a residential community. Its primary revenue sources are property tax and permit revenues from private development. The outlook for the housing market remains positive. While home sales volume stays flat, home prices continue to rise year after year. The Town’s assessed value grew at 5.8% in FY 2023-24 vs prior fiscal year. Property tax revenue is projected to be approximately $8.9 million in 2024-25, and permit and license revenues are estimated at $1.6 million.

Overall, the adopted FY 2024-25 General Fund budget reflects revenue below expenditures in the amount of $279,743 million before transfers. Total revenues are budgeted at $19.1 million, while total expenditures are budgeted at $19.3 million and transfers out are budgeted at $1.9 million, with the estimated total ending fund balance declining by $2.1 million to $13.9 million.

REQUESTS FOR INFORMATION
This financial report is designed to provide a general overview of the Town of Los Altos Hills' finances for all those with an interest in the government’s finances. Questions concerning any of the information provided in this report or requests for additional information should be addressed to:

Town of Los Altos Hills
Attn: Finance Director
26379 Fremont Road
Los Altos Hills, CA 94022
Governmental Business-Type Governmental Business-Type
Activities Activities Total Activities Activities Total Land $ 250,535 $ 250,535 - $ $ 250,535 $ 250,535 - $
Buildings 2,597,067 2,597,067 - 2,727,708 2,727,708 -
Office equipment - - - 4,180 - 4,180
Vehicles 411,546 411,546 - 183,338 183,338 -
Sewer collection system 8,561,915 8,561,915 8,212,247 8,212,247 SBITAs Asset (Right-to-Use) 4,458 4,458 16,173 16,173
Infrastructure 28,770,978 28,770,978 - 25,961,769 25,961,769 - Total capital assets, net 32,034,584 $ $ 8,561,915 $ 40,596,499 $ 29,143,703 $ 8,212,247 $ 37,355,950 Page | 22 Final Draft

Basic Financial Statement
Government Wide Financial Statements
Fund Financial Statements
Notes to Basic Financial Statements
Page | 23 Final Draft

Governmental Business‐type
Activities Activities Total
ASSETS
Current Assets:

Cash and investments $           24,542,755 $             6,654,392 $           31,197,147 Restricted cash and investments                 1,209,137 ‐                 1,209,137 Accounts receivables 846,368 8,425 854,793
Total Current Assets              26,598,260                 6,662,817              33,261,077 Noncurrent Assets:

Lease receivable                 3,198,473 ‐                 3,198,473 Materials, parts and supplies 51,091 ‐ 51,091
Capital Assets:

Non‐depreciable capital assets 250,535 ‐ 250,535
Depreciable capital assets, net of depreciation              31,784,049                 8,561,915              40,345,964 Total Capital Assets              32,034,584                 8,561,915              40,596,499 Total Non‐Current Assets              35,284,148                 8,561,915              43,846,063 Total Assets              61,882,408              15,224,732              77,107,140

DEFERRED OUTFLOWS OF RESOURCES
Related to pensions                 1,940,714 106,668                 2,047,382 Related to OPEB 388,115 21,332 409,447
Total Deferred Outflows of Resources                 2,328,829 128,000                 2,456,829 Total Assets and Deferred Outflows              64,211,237              15,352,732              79,563,969

LIABILITIES
Current Liabilities:

Accounts payable 869,792                 2,005,802                 2,875,594 Other liabilities 131,309 ‐ 131,309
Refundable deposits                 4,240,604 ‐                 4,240,604 Compensated absences due within one year 15,876 24 15,900 Total Current Liabilities                 5,257,581                 2,005,826                 7,263,407 Noncurrent Liabilities:

Compensated absences due in more than one year 138,844 11,183 150,027 Collective net pension liability                 2,947,227 161,990                 3,109,217 Net OPEB liability 56,363 3,098 59,461
Total Noncurrent Liabilities                 3,142,434 176,271                 3,318,705 Total Liabilities                 8,400,015                 2,182,097              10,582,112

DEFERRED INFLOWS OF RESOURCES
Related to leases                 3,039,646 ‐                 3,039,646 Related to pensions 420,977 23,138 444,115
Related to OPEB 231,414 12,719 244,133
Total Deferred Inflows of Resources                 3,692,037 35,857                 3,727,894

NET POSITION
Net investment in capital assets              32,034,584                 8,561,915              40,596,499 Restricted for:

Parks and recreation 450,858 ‐ 450,858
Art donations 34,473 ‐ 34,473
ARPA 813,105 ‐ 813,105
Pension trust                 1,209,137 ‐                 1,209,137 Unrestricted              17,577,028                 4,572,863              22,149,891 Total Net Position              52,119,185              13,134,778              65,253,963 Total Liabilities, Deferred Inflows and Net Position $           64,211,237 $           15,352,732 $           79,563,969 JUNE 30, 2024

TOWN OF LOS ALTOS HILLS

STATEMENT OF NET POSITION
See accompanying notes to financial statements
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Operating Capital
Charges for Contributions Contributions Governmental Business‐type Expenses Services and Grants and Grants Activities Activities Total Governmental Activities:

General government 2,335,260 $           $        3,223,304 $              ‐ 41,880 $ $              929,924 $ ‐ $           929,924 Public safety             4,038,777              186,159                18,707 ‐             (3,833,911) ‐          (3,833,911) Community development             4,800,671           2,434,952 ‐ ‐             (2,365,719) ‐          (2,365,719) Public works             3,522,098              495,359              158,566              506,455             (2,361,718) ‐          (2,361,718) Parks and recreation             1,683,650              385,323 ‐ ‐             (1,298,327) ‐          (1,298,327) Total Governmental Activities           16,380,456           6,725,097              219,153              506,455             (8,929,751) ‐          (8,929,751) Business‐type Activities:

Sewer             3,256,502           3,534,615 ‐              154,081 ‐               432,194               432,194 Total Business‐type Activities             3,256,502           3,534,615 ‐              154,081 ‐                432,194               432,194 Total Primary Government $       19,636,958 $     10,259,712 $           219,153 $           660,536 (8,929,751) 432,194 (8,497,557) General Revenues:

Taxes:

Property taxes 8,531,557 ‐ 8,531,557
Business license tax 225,405 ‐ 225,405
Real property transfer tax 236,319 ‐ 236,319
Sales and use tax 63,567 ‐ 63,567
Public safety sales tax 69,852 ‐ 69,852
Other taxes 72,599 ‐                 72,599
Franchise fees                 665,597 ‐               665,597 Investment income              1,063,607 171,190 1,234,797 Other unrestricted revenue 30,136                 13,194                 43,330 Transfers, net (9,858) 9,858 ‐
Total General Revenues and Transfers            10,948,781               194,242         11,143,023 Change in Net Position              2,019,030               626,436           2,645,466 Net Position, Beginning of Year            50,100,155          12,508,342         62,608,497 Net Position, End of Year $         52,119,185 $      13,134,778 $      65,253,963 See accompanying notes to financial statements
Program Revenues Net Revenue (Expense) and Change in Net Position

TOWN OF LOS ALTOS HILLS

STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2024
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Final Draft

Governmental Fund Financial Statements
General Fund accounts for financial resources traditionally associated with the governmental which are not required legally or by sound financial management to be accounted for in another fund.

Street Capital Projects Fund accounts for financial resources that are necessary for the acquisition or construction of streets.

Other Capital Projects Funds accounts for financial resources that are necessary for the acquisition or construction of major capital facilities.

Non-Major Governmental Funds are the aggregate of all the non-major governmental funds.

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Street Other Non-major
Capital Capital Governmental
General Projects Projects Funds Total
ASSETS
Cash and investments $ 19,779,928 $ - $ 2,629,492 $ 1,297,874 $ 23,707,294 Due from other funds 229,443 - - - 229,443
Restricted cash and investments 1,209,137 - - - 1,209,137 Receivables:

Property taxes 22,416 - - - 22,416
Taxes other than property 72,782 - - - 72,782
Intergovernmental 10,474 268,207 - - 278,681
Leases 2,403,672 - 794,801 - 3,198,473
Miscellaneous 328,014 - 2,262 562 330,838
Total Assets $ 24,055,866 $ 268,207 $ 3,426,555 $ 1,298,436 $ 29,049,064

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES AND FUND BALANCES

LIABILITIES
Accounts payable $ 587,454 $ 14,909 $ 200,416 $ 2,694 $ 805,473 Due to other funds - 41,114 - 188,329 229,443
Refundable deposits 4,240,604 - - - 4,240,604
Total Liabilities 4,828,058 56,023 200,416 191,023 5,275,520

DEFERRED INFLOWS OF RESOURCES
Related to leases 2,281,923 - 757,723 - 3,039,646
Deferred Inflows of Resources 2,281,923 - 757,723 - 3,039,646

FUND BALANCES
Restricted 1,209,137 - - 1,298,436 2,507,573
Committed 10,868,004 212,184 2,468,416 - 13,548,604
Assigned 2,328,858 - - - 2,328,858
Unassigned 2,539,886 - - (191,023) 2,348,863
Total Fund Balances 16,945,885 212,184 2,468,416 1,107,413 20,733,898

TOTAL LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES $ 24,055,866 $ 268,207 $ 3,426,555 $ 1,298,436 $ 29,049,064 JUNE 30, 2024

TOWN OF LOS ALTOS HILLS

GOVERNMENTAL FUNDS

BALANCE SHEET
See accompanying notes to financial statements
Page | 28 Final Draft

Fund Balances of Governmental Funds $      20,733,898
Amounts reported for governmental activities in the Statement of Net Position are different because:

Capital assets used in governmental activities are not financial resources and, therefore, are not reported in the governmental funds.          28,888,430 The Internal Service Fund is used by the Town to charge the cost of Town Hall, office, and corporate yard services.  The assets and liabilities of the Internal Service Fund are included in the Governmental Activities in the Statement of Net Position.           3,968,477
Deferred outflows of resources are not deemed available to pay current period expenditures and therefore are not reported as governmental fund assets:

Deferred outflows related to pensions            1,940,714 Deferred outflows related to OPEB               388,115 The liabilities below are not due and payable in the current period and therefore are not reported in the governmental funds:

Compensated absences              (144,468)
Net pension liability           (2,947,227)
Net OPEB liability                (56,363)
Deferred inflows of resources are not deemed due and payable in the current period and therefore are not reported as governmental fund liabilities:

Deferred inflows due to pension liabilities              (420,977) Deferred inflows due to OPEB liabilities              (231,414) Net Position of Governmental Activities $      52,119,185 JUNE 30, 2024

TOWN OF LOS ALTOS HILLS

RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE
SHEET TO THE GOVERNMENT‐WIDE STATEMENT OF NET POSITION
See accompanying notes to financial statements
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Street Other Non-major
Capital Capital Governmental
General Projects Projects Funds Total

REVENUES
Property taxes $ 8,531,557 $ - $ - $ 8,531,557 - $
Taxes other than property 599,107 - - - 599,107
Intergovernmental 49,423 727,115 183,383 186,160 1,146,081 Charges for services 1,095,806 151,240 239,003 64,632 1,550,681 Licenses and permits 1,837,123 - - - 1,837,123
Franchise fees 665,597 - - - 665,597
Fines and forfeitures 38,008 - - - 38,008
Rental income 125,015 - 66,488 - 191,503
Interfund charges 2,741,390 - - - 2,741,390
Investment income 987,048 61,463 - 6,886 1,055,397
Other revenues 31,000 - 21,065 835 52,900
Total Revenues 16,701,074 878,355 571,402 258,513 18,409,344

EXPENDITURES
Current:

General government 2,875,773 - 560,274 - 3,436,047
Public safety 3,630,943 - - 8,671 3,639,614
Community development 4,193,925 - - - 4,193,925
Public works 2,783,515 - - - 2,783,515
Parks and recreation 1,481,576 - - 1,701 1,483,277
Capital outlay - 1,363,950 1,407,128 264,851 3,035,929
Total Expenditures 14,965,732 1,363,950 1,967,402 275,223 18,572,307 Excess (Deficiency) of Revenues
Over Expenditures 1,735,342 (485,595) (1,396,000) (16,710) (162,963)

OTHER FINANCING SOURCES (USES)
Transfers in 177,488 474,651 1,280,861 1,933,000 -
Transfers out (1,725,370) - (40,000) (177,488) (1,942,858) Total Other Financing Sources (Uses) (1,547,882) 474,651 1,240,861 (177,488) (9,858) Net Change in Fund Balances 187,460 (10,944) (155,139) (194,198) (172,821) Fund Balances, Beginning of Year 16,758,425 223,128 2,623,555 1,301,611 20,906,719 Fund Balances, End of Year $ 16,945,885 $ 212,184 $ 2,468,416 $ 1,107,413 $ 20,733,898 See accompanying notes to financial statements
FOR THE YEAR ENDED JUNE 30, 2024

TOWN OF LOS ALTOS HILLS

GOVERNMENTAL FUNDS

STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES Page | 30 Final Draft

Net Change in Fund Balances ‐ Total Governmental Funds (172,821) $ Amounts reported for governmental activities in the Statement of Activities differs from the amounts reported in the Statement of Revenues, Expenditures, and Changes in Fund Balances because:

Governmental funds report capital outlays as expenditures but in the Statement of Activities, the cost of those assets is allocated over their estimated useful lives as depreciation and amortization expense or are allocated to the appropriate functional expense when the cost is below the capitalization threshold. This activity is reconciled as follows:

Capital outlays         4,649,103
Depreciation and amortization expense charged to governmental activities        (1,849,150) Change in Compensated absences               54,456
Government funds do not report pension expense as it does not require the use of current financial resources           (602,618)
Repayment of SBITAs principal is an expenditure in the governmental funds, but the repayment reduces long‐term liabilities in the Statement of Net Position SBITAs ‐ Zenacity               11,429
Government funds do not report OPEB expense as it does not require the use of current financial resources              (20,130)
Internal Service Funds are used by management to charge the costs of certain activities, such as cost of Town Hall, office, and corporate yard services to individual funds.

The portion of the net revenue (expense) of these Internal Service Funds, arising out of their transactions with Governmental Funds, is reported with governmental activities, because they service those activities.              (51,239) Change in Net Position of Governmental Activities $      2,019,030 See accompanying notes to financial statements
FOR YEAR ENDED JUNE 30, 2024

STATEMENT OF ACTIVITIES AND CHANGES IN NET POSITION

TOWN OF LOS ALTOS HILLS

RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES TO THE GOVERNMENT‐WIDE Page | 31
Final Draft

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Proprietary Fund Financial Statements
Sewer Fund accounts for the activities of the wastewater collection and treatment system, which provides service to the residents of the Town and some neighboring cities.

Internal Service Fund is used to account for the financing of goods and services provided by one department or agency to other departments or agencies on a cost reimbursement basis.

Page | 33 Final Draft

Business‐type
Activities
Governmental
Activities
Enterprise Internal
Fund Service
Sewer Fund
ASSETS
Current Assets:

Cash and investments 6,654,392 $ $ 835,461
Accounts receivable 8,425 141,651
Total Current Assets 6,662,817 977,112
Noncurrent Assets:

Materials, parts and supplies ‐ 51,091
Capital assets, net of accumulated
depreciation 8,561,915 3,146,154
Total Noncurrent Assets 8,561,915 3,197,245
Total Assets 15,224,732 4,174,357

DEFERRED OUTFLOWS OF RESOURCES
Related to pensions 106,668 ‐
Related to OPEB 21,332 ‐
Total Deferred Outflows of Resources 128,000 ‐
Total Assets and Deferred Outflows 15,352,732 4,174,357

LIABILITIES
Current Liabilities:

Accounts payable 2,005,802 64,319
Accrued payroll and related liabilities ‐ 131,309
Compensated absences due within one year 24 36
Total Current Liabilities 2,005,826 195,664
Noncurrent liabilities:

Compensated absences due in more than one year 11,183 10,216 Collective net pension liability 161,990 ‐
Net OPEB liability 3,098
Total noncurrent liabilities 176,271 10,216
Total Liabilities 2,182,097 205,880

DEFERRED INFLOWS OF RESOURCES
Related to pensions 23,138 ‐
Related to OPEB 12,719 ‐
Total Deferred Inflows of Resources 35,857 ‐

NET POSITION
Net investment in Capital Assets 8,561,915 3,146,154
Unrestricted 4,572,863 822,323
Total Net Position 13,134,778 3,968,477
Total Liabilities, Deferred Inflows and Net Position $                15,352,732 $ 4,174,357 See accompanying notes to financial statements
JUNE 30, 2024

TOWN OF LOS ALTOS HILLS

PROPRIETARY FUNDS

STATEMENT OF FUND NET POSITION
Page | 34
Final Draft

Business‐type
Activities
Governmental
Activities
Enterprise Internal
Fund Service
Sewer Fund

OPERATING REVENUES
Charges for services $ 3,534,615 $ ‐
Other income 13,194 10,689
Town Hall services ‐ 674,828
Corporate yard services ‐ 142,482
Vehicle services ‐ 94,342
Total Operating Revenues 3,547,809 922,341

OPERATING EXPENSES
Salaries and benefits 273,229 229,387
Contract services ‐ treatment plant 1,909,639 ‐
Professional services 13,470 89,143
Support goods and services 2,174 106,018
IT Support and maintenance ‐ 124,697
Repairs and maintenance 537,782 128,245
Utilities 12,407 86,290
Interfund charges 246,883 ‐
Machinery and equipment ‐ 37,668
Depreciation 260,918 172,132
Total Operating Expenses 3,256,502 973,580
Operating Income (Loss) 291,307 (51,239)

NONOPERATING REVENUES (EXPENSES)
Interest income 171,190 ‐
Nonoperating Revenues (Expenses), net 171,190 ‐
Net Income before Contributions and Transfers 462,497 (51,239) Capital Contributions ‐ sewer connection fees 154,081 ‐ Transfers in 9,858 ‐
Total Other Financing Sources and (Uses) 163,939 ‐
Changes in Net Position 626,436 (51,239)
Total Net Position, Beginning of Year 12,508,342 4,019,716 Total Net Position, End of Year $                13,134,778 $ 3,968,477 See accompanying notes to financial statements

TOWN OF LOS ALTOS HILLS

PROPRIETARY FUNDS

STATEMENT OF REVENUES, EXPENSES,
FOR THE YEAR ENDED JUNE 30, 2024

AND CHANGES IN FUND NET POSITION
Page | 35
Final Draft

Business‐type Governmental
Activities Activities
Enterprise Fund Internal Service
Sewer Fund
CASH  FLOWS FROM OPERATING ACTIVITIES
Receipts from customers 3,565,996 $              ‐ $
Receipts from interfund services provided ‐ 916,997
Payments for interfund services used (246,883) ‐
Payments to suppliers               (1,871,082) (561,356) Payments to employees (232,369) (219,000)
Net Cash From Operating Activities                 1,215,662 136,641

CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Interfund receipts 9,858 ‐
Net Cash From Noncapital Financing Activities 9,858 ‐

CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Acquisition of capital assets (610,586) (263,060)
Capital contributions received for connection fees 154,081 ‐ Net Cash From Capital and Related Financing Activities (456,505) (263,060)

CASH FLOWS FROM INVESTING ACTIVITIES
Investment income 171,190 ‐
Net Cash From Investing Activities 171,190 ‐
Net Increase in Cash and Investments 940,205 (126,419)
Cash and Cash Equivalents, Beginning of Year                 5,714,187 961,880 Cash and Cash Equivalents, End of Year $             6,654,392 $                 835,461

RECONCILIATION OF OPERATING INCOME (LOSS)

TO NET CASH FROM (FOR) OPERATING ACTIVITIES
Operating income $                 291,307 $ (51,239)
Adjustments to reconcile operating income (loss) to
net cash provided (used) by operating activities:

Depreciation 260,918 172,132
(Increase) decrease in accounts receivable 18,187 (5,344) (Increase) decrease in OPEB asset/liability 15,239 ‐
(Increase) decrease in materials ‐ 4,017
(Increase) decrease in deferred outflows related to pensions 4,859 ‐ (Increase) decrease in deferred outflows related to OPEB 4,784 ‐ Increase (decrease) in accounts payable 604,390 6,688
Increase (decrease) in other liabilities ‐ 8,967
increase (decrease) in compensated absences 3,665 1,420 Increase (decrease) in pension liability 22,857 ‐
Increase (decrease) in deferred inflows related to pensions 10,504 ‐ Increase (decrease) in deferred inflows related to OPEB (21,048) ‐

NET CASH PROVIDED (USED)
BY OPERATING ACTIVITIES $             1,215,662 $                 136,641 See accompanying notes to financial statements
FOR THE YEAR ENDED JUNE 30, 2024

TOWN OF LOS ALTOS HILLS

PROPRIETARY FUNDS

STATEMENT OF CASH FLOWS
Page | 36
Final Draft

Fiduciary Fund Financial Statement

CUSTODIAL FUND
West Loyola Special Assessment District #1 Custodial Fund accounts for assets that the Town is holding for the West Loyola Special Assessment District No. 01 for which the Town is acting as an agent.

Page | 37 Final Draft

West Loyola
Special Assessment
District #1
Custodial Fund
ASSETS
Restricted Cash and Investments 318,213 $
Miscellaneous receivables 631
Total Assets 318,844

LIABILITIES
Accrued liabilities 1,375
Total Liabilities 1,375

NET POSITION
Restricted for Bond Payments $ 317,469
JUNE 30, 2024

TOWN OF LOS ALTOS HILLS

STATEMENT OF FIDUCIARY NET POSITION
See accompanying notes to financial statements
Page | 38 Final Draft

West Loyola
Special Assessment
District #1
Custodial Fund

ADDITIONS
Special assessments $ 157,410
Less: administrative expenses (11,679)
Total Additions 145,731

DEDUCTIONS
Payments to bondholders 88,855
Other 55,000
Total Deductions 143,855
Change in net position 1,876
BEGINNING NET POSITION 315,593
ENDING NET POSITION $ 317,469
See accompanying notes to financial statements

TOWN OF LOS ALTOS HILLS

STATEMENT OF CHANGES IN FIDUCIARY

NET POSITION
FOR THE YEAR ENDED JUNE 30, 2024
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Notes to Basic Financial Statements – Index
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES ............................................................. 43 A. Reporting Entity ........................................................................................................................ 43 B. Basis of Presentation ................................................................................................................. 43 C. Basis of Accounting and Measurement Focus ........................................................................... 46 D. Cash and Cash Equivalents ....................................................................................................... 46 E. Fair Value Measurements ......................................................................................................... 46 F. Receivables................................................................................................................................ 47 G. Capital Assets ............................................................................................................................ 47 H. Deferred Inflows and Deferred Outflows of Resources ............................................................ 47 I. Property Taxes .......................................................................................................................... 48 J. Accumulated Compensated Absences ...................................................................................... 48 K. Interfund Transactions .............................................................................................................. 48 L. Use of Estimates ........................................................................................................................ 48 M. Leases ........................................................................................................................................ 49 N. New GASB Pronouncements .................................................................................................... 49 NOTE 2 – DEPOSITS AND INVESTMENTS ............................................................................................... 49 A. Policies ...................................................................................................................................... 49 B. Classification ............................................................................................................................. 50 C. Authorized Investments ............................................................................................................ 50 D. Interest Rate Risk and Fair Value Hierarchy .............................................................................. 51 E. Credit Risk ................................................................................................................................. 53 F. Concentration of Credit Risk ..................................................................................................... 53 NOTE 3 – INTERFUND TRANSACTIONS .................................................................................................. 53 NOTE 4 – CAPITAL ASSETS ..................................................................................................................... 54 NOTE 5 – LEASES ................................................................................................................................... 55 NOTE 6 – SUBSCRIPTION-BASED INFORMATION TECHNOLOGY ARRANGEMENTS ............................... 56 NOTE 7 – SPECIAL ASSESSMENT DEBT WITHOUT TOWN COMMITMENT ............................................. 57 NOTE 8 – NET POSITION/FUND BALANCES ............................................................................................ 57 A. Net Position ............................................................................................................................... 57 B. Fund Balances – Components ................................................................................................... 58 Page | 41 Final Draft

Notes to Basic Financial Statements
NOTE 9 – PENSION PLAN .................................................................................................................... 58 A. General Information About the Pension Plan ........................................................................ 58 B. Net Pension Liability ............................................................................................................... 60 C. Changes in the Net Pension Liability ...................................................................................... 62 D. Pension Expense and Deferred Outflows/Inflows of Resources Related to Pension ............. 63 E. Payable to Pension Plan ......................................................................................................... 63 NOTE 10 – RISK MANAGEMENT ......................................................................................................... 64 A. Risk Pool ................................................................................................................................. 64 NOTE 11 – CONTINGENT LIABILITIES .................................................................................................. 65 A. Commitments and Contingencies .......................................................................................... 65 B. Service Concession Arrangements (SCA) ................................................................................ 65 NOTE 12 – OTHER POSTEMPLOYMENT BENEFITS (OPEB) .................................................................. 65 A. General Information About the OPEB Plan ............................................................................ 65 B. Plan Description ..................................................................................................................... 65 C. Benefits Provided ................................................................................................................... 66 D. Employees Covered by Benefit Terms .................................................................................... 66 E. Contributions ......................................................................................................................... 66 F. OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB ..................... 68 G. Net OPEB Liability (Asset) ....................................................................................................... 69 H. Changes in Net OPEB Liability (Asset) .................................................................................... 71 I. Discount Rate ......................................................................................................................... 71 J. OPEB Liabilities, OPEB Expenses and Deferred Outflows/Inflows of Resources Related to OPEB .................................................................................................................. 72 NOTE 13 – STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY ...................................................... 73 A. Excess of Expenditures Over Appropriations ......................................................................... 73 B. Deficit Fund Balances ............................................................................................................. 73 Page | 42 Final Draft

Notes to Basic Financial Statements
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. Reporting Entity
The Town of Los Altos Hills (the Town) was incorporated in 1956, under the provisions of the State of California. The Town operates under a Council-Manager form of government and provides the following services: management, planning, code enforcement, engineering, building inspection, maintenance of public infrastructure, recreation, law enforcement, and sewer service.

For financial reporting purposes, the Town's basic financial statements include all financial activities that are controlled by or are dependent upon actions taken by the Town Council. There are no component units. The financial statements may be obtained by writing to the Town of Los Altos Hills, Administrative Services Department, 26379 Fremont Road, Los Altos Hills, California 94022.

The financial statements of the Town have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP) as applied to government units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. The more significant accounting principles of the government are described below.

B. Basis of Presentation
Government-wide Financial Statements
The Statement of Net Position and the Statement of Activities displays information about the Town. These statements include the financial activities of the overall government except for fiduciary activities. These statements distinguish between the governmental and business-type activities of the Town. Governmental activities, which normally are supported by taxes and intergovernmental revenues and other nonexchange transactions, are reported separately from business-type activities, which rely to a significant extent on fees charged to external parties.

The Statement of Net Position reports all of the financial and capital resources of the government as a whole in a format in which assets and deferred outflows of resources equal liabilities and deferred inflows of resources, plus net position. The Statement of Activities presents a comparison between direct expenses and program revenues for each segment of the business-type activities of the Town and for each function of the Town's governmental activities. Direct expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. Program revenues include 1) fees, fines, and charges paid by the recipients of goods and services offered by the programs and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues, including all taxes, are presented instead as general revenues.

Certain eliminations have been made as prescribed by Governmental Accounting Standards Board (GASB) Statement No. 34 in regards to interfund activities, payable and receivables. All internal balances in the Statement of Net Position have been eliminated except those representing balances between the governmental activities and the business-type activities. These are presented as internal balances and eliminated in the total primary government column. In the Statement of Activities, interfund transactions have been eliminated. However, the transactions between governmental and business-type activities, which are presented as transfers, have not been eliminated from the Statement of Activities.

Page | 43 Final Draft

Notes to Basic Financial Statements
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) B. Basis of Presentation (Continued)
Fund Financial Statements
The fund financial statements provide information about the Town's funds, including fiduciary funds.

Separate statements for each fund category – governmental, proprietary, and fiduciary – are presented. The emphasis of fund financial statements is on major governmental and enterprise funds, each displayed in a separate column. All remaining governmental funds are separately aggregated and reported as non-major funds.

Proprietary funds distinguish operating revenues and expenses and nonoperating items. Operating revenues and expenses result from providing services in connection with the fund's principal ongoing operations. The principal operating revenues of the Town's enterprise and internal service fund are charges for customer services including: sewer service fees, equipment maintenance and usage fees, and support charges.

Operating expenses for enterprise funds and internal service funds include the cost of services, administrative expenses, and depreciation of capital assets. All other revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses.

When both restricted and unrestricted resources are available for use, it is the Town's policy to use restricted resources first, then unrestricted resources as they are needed.

The Town reports the following major governmental funds:
• The General Fund accounts for resources traditionally associated with governmental activities that are not required legally or by sound financial management to be accounted for in another fund. • The Street Capital Projects Fund accounts for the acquisition and construction of streets. • The Other Capital Projects Fund accounts for financial resources that are necessary for the acquisition or construction of major capital facilities.

The Town reports the following major enterprise fund:
• The Sewer Fund accounts for the maintenance of the Town's sewer lines and related facilities. It is a self-supporting activity that provides services on a user charge basis to residences and businesses.

The Town reports the following additional funds:
• Internal Service Fund accounts for goods and services provided to city departments on a cost reimbursement basis. The goods and services provided include maintenance and replacement of vehicles and equipment, costs incurred for printing, copying, and mailing services; employee benefits; and expenses related to the maintenance of Town buildings. Internal Service Fund is included in the government activities at the government-wide level. • The Custodial Fund accounts for assets held by the Town in the capacity of agent. The Town's Custodial Fund includes West Loyola Sewer Assessment District #1. • The Special Revenue Funds account for specific revenues that are legally restricted to expenditures for particular purposes.

Page | 44 Final Draft

Notes to Basic Financial Statements
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) B. Basis of Presentation (Continued)
In prior years, the Town’s street, storm drain and pathway maintenance and operation expenditures were reported under special revenue funds; however, the operations were largely funded by transfers from the General Fund. Special revenues, such as gas tax, storm drain in-lieu fees, and pathway construction fees, were recorded in these special revenue funds but these revenues were transferred to capital project funds at the end of the year. To minimize the number of interfund transfers between the General Fund, these special revenue funds and Capital Project Funds, the City Council authorized the Administrative Services Department to record the revenues for storm drains, pathways, and streets directly into the corresponding capital project funds and to merge the ongoing operating cost into the General Fund.

Fund Balance Classification
Fund balance is classified in accordance with current governmental accounting standards, which requires classification of fund balances into five different components, where applicable. The components are nonspendable, restricted, committed, assigned and unassigned. • Nonspendable resources are not in spendable form or required to be maintained intact such as an endowment.
• Restricted resources are subject to externally enforceable legal restrictions or imposed by law through constitutional provisions or enabling legislation. • Committed resources are constrained to specific purposes by a formal action of the City Council such as an ordinance or resolution, whereby an ordinance is more binding than a resolution. The constraint remains binding unless removed in the same formal manner by the City Council. Council action to commit fund balance must occur within the fiscal reporting period while the amount committed may be determined subsequently. All use of committed fund balance requires the City Council, which is the highest level of decision making authority, to take formal action with resolution, including budget resolutions, to modify or rescind a committed fund balance. • Assigned resources are constrained by the Town's intent to be used for specific purposes, but are neither restricted nor committed. The City Council, by action, has the authority to assign amounts to be used for specific purposes. Unlike commitments, assignments generally only exist temporarily.

In other words, an additional action does not normally have to be taken for the removal of an assignment.
• Unassigned fund balance is the residual classification and includes all amounts not contained in the other classifications. Unassigned amounts are technically available for any purpose. The general fund is the only fund that reports a positive unassigned fund balance.

When expenditures are incurred for purposes for which both restricted and unrestricted (committed, assigned, or unassigned) fund balances are available, the Town's policy is to first apply restricted fund balance. When expenditures are incurred for purposes for which committed, assigned or unassigned fund balances are available, the Town's policy is to first apply committed fund balance. It is at the discretion of the Council's designee to then apply the remaining expenditures to assigned or unassigned fund balance.

Page | 45 Final Draft

Notes to Basic Financial Statements
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) C. Basis of Accounting and Measurement Focus
The government-wide and proprietary financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time that liabilities are incurred, regardless of when the related cash flows take place.

Non-exchange transactions, in which the Town gives or receives value without directly receiving or giving equal value in exchange, include property and sales tax, grants, entitlements, franchise fees and donations.

On an accrual basis, revenue from property taxes is recognized in the fiscal year for which the taxes are levied. Revenues from sales tax are recognized when the underlying transactions take place. Revenues from grants, entitlements, and donations are recognized in the fiscal year in which all eligibility requirements have been satisfied.

Governmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable and available.

Property and sales tax, interest, certain state, and federal grants, and charges for services are accrued when their receipt occurs within sixty days after the end of the accounting period so as to be both measurable and available. Expenditures are generally recorded when a liability is incurred, as under accrual accounting.

However, debt service expenditures, as well as expenditures related to claims and judgments, are recorded only when payment is due. General capital assets acquisitions are reported as expenditures in governmental funds. Proceeds of long-term debt and capital leases are reported as other financing sources.

Fiduciary funds are custodial in nature (i.e. assets equal liabilities) and do not involve the measurement of the results of operations. The Town has one fiduciary fund for the West Loyola Sewer Assessment District.

D. Cash and Cash Equivalents
For purposes of the statement of cash flows, the Town considers all highly liquid investments with maturity of three months or less when purchased to be cash equivalents.

E. Fair Value Measurements
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Town categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles.

The fair value hierarchy categorizes the inputs to valuation techniques used to measure fair value into three levels based on the extent to which inputs used in measuring fair value are observable in the market. − Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities. − Level 2 inputs are inputs – other than quoted prices included within level 1 – that are observable for an asset or liability, either directly or indirectly.
− Level 3 inputs are unobservable inputs for an asset or liability.

If the fair value of an asset or liability is measured using inputs from more than one level of the fair value hierarchy, the measurement is considered to be based on the lowest priority level input that is significant to the entire measurement.

Page | 46 Final Draft

Notes to Basic Financial Statements
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) F. Receivables
During the course of normal operations, the Town carries various receivable balances for taxes, franchise fees, interest, license fees, and sewer fees. As of June 30, 2024, accounts receivable are shown at $433,686 in the General Fund, $268,207 in the Street Capital Projects Fund, $2,262 in the Other Capital Projects Fund and $8,425 in the Sewer Fund. Non-major funds have $193,880 of receivables as of year-end.

G. Capital Assets
Capital assets, including infrastructure acquired prior to GASB 34, are recorded at historical cost or at estimated historical cost if actual historical cost is not available. Contributed capital assets are valued at their estimated acquisition value on the date of contribution. Capital assets include public domain (infrastructure) general capital assets consisting of certain improvements including roads, bridges, water/sewer, lighting systems, drainage systems, and flood control. The Town defines capital assets as assets with an estimated useful life in excess of three years and an initial, individual cost of $15,000.

Capital assets used in the operation are depreciated using the straight-line method over their estimated useful lives in the government-wide statements and proprietary funds. The estimated useful lives are as follows:

Infrastructure 20 - 50 Years
Structure and Improvements 10 - 30 Years
Vehicles 5 - 10 Years
Equipment 3 - 10 Years
Maintenance and repairs are charged to operations when incurred. Betterments and major improvements, which significantly increase values, change capacities, or extend useful lives, are capitalized. Upon sale or retirement of capital assets, the cost and related accumulated depreciation are removed from the respective accounts and any resulting gain or loss is included in the results of operations.

H. Deferred Inflows and Deferred Outflows of Resources
In addition to assets, the Statement of Net Position or balance sheet reports a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net assets that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. The Town has pension-related and OPEB-related deferred outflows of resources arising from certain changes in the collective net pension liability and net OPEB liability.

In addition to liabilities, the Statement of Net Position or balance sheet reports a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net assets or fund balance that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The Town has deferred inflows of resources arising from certain changes in the collective net pension liability, net OPEB liability as well as leases. These amounts are deferred and amortized over a stated period.

Page | 47 Final Draft

Notes to Basic Financial Statements
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) I. Property Taxes
Revenue is recognized in the fiscal year for which the tax and assessment are levied. The County of Santa Clara levies, bills, and collects property taxes for the Town. Under the Teeter Bill, the County remits the entire amount levied and handles the delinquencies, retaining interest and penalties.

Secured property taxes attach as an enforceable lien on property as of January 1. Taxes are payable in two installments on November 1 and February 1 and become delinquent on December 10, and April 10, respectively. Unsecured property taxes are payable in one installment on or before August 31.

J. Accumulated Compensated Absences
The Town accrues the cost for compensated absences (vacation and comp time) when they are earned.

Employees have a vested interest in accrued vacation time and all vacation hours will eventually either be used or paid by the Town. Generally, employees earn and use their current vacation hours with a small portion being accrued or unused each year. As this occurs, the Town incurs an obligation to pay for these unused hours. Sick leave benefits do not vest and no liability is recorded.

All compensated absences for governmental activities are paid out of the general fund. Compensated absences as of June 30, 2024 are as follows:

Governmental
Activities
Business-Type
Activities Total
Beginning Balance $ 207,756 $ 7,542 $ 215,298
Additions 47,824 4,789 52,613
Reductions (100,860) (1,124) (101,984)
Ending Balance $ 154,720 $ 11,207 $ 165,927
Current Portion $ 15,876 $ 24 $ 15,900
K. Interfund Transactions
Interfund transactions are reflected as services provided, reimbursements, or transfers. Services provided, deemed to be at market, or near market rates, are treated as revenues and expenditures/expenses.

Reimbursements are when one fund incurs a cost, charges the appropriate benefit fund, and reduces its related cost as a reimbursement. All other interfund transactions are treated as transfers. Transfers within governmental and proprietary funds are netted as part of the reconciliation to the government-wide presentation.

L. Use of Estimates
The preparation of the basic financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates.

Page | 48 Final Draft

Notes to Basic Financial Statements
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) M. Leases
A lease is defined as a contract that conveys control of the right to use another entity’s nonfinancial asset (the underlying asset) as specified in the contract for a period of time in an exchange or exchange-like transaction. Examples of nonfinancial assets include buildings, land, vehicles, and equipment.

N. New GASB Pronouncements
GASB Statement No. 100 – in June 2022, GASB issued Statement No. 100, Accounting for Changes and Error Corrections. The primary objective of this Statement is to enhance accounting and financial reporting requirements for accounting changes and error corrections to provide more understandable, reliable, relevant, consistent, and comparable information for making decisions or assessing accountability. This Statement is effective for reporting periods beginning after June 15, 2023, or the fiscal year 2023-24. The provisions of this Statement were implemented during fiscal year 2024. The implementation had no effect on the financial statements for the current year.

NOTE 2 – DEPOSITS AND INVESTMENTS
The Town pools cash from all sources and all funds so that it can be invested at the maximum yield consistent with safety and liquidity, while individual funds can make expenditures at any time.

A. Policies
The Town invests in individual investments and in investment pools. Individual investments are evidenced by specific identifiable securities instruments, or by an electronic entry registering the owner in the records of the institution issuing the security, called the book entry system.

California Law requires banks and savings and loan institutions to pledge government securities with a market value of 110% of the Town’s cash on deposit, or first trust deed mortgage notes with a market value of 150% of the deposit, as collateral for these deposits. Under California Law this collateral is held in a separate investment pool by another institution in the Town’s name and places the Town ahead of general creditors of the institution.

The Town’s investments are carried at fair value, as required by generally accepted accounting principles.

The Town adjusts the carrying value of its investments to reflect their fair value at each fiscal year end, and it includes the effects of these adjustments in income for that fiscal year.

The Town shall not engage in leveraged investing, such as in margin accounts or any form of borrowing for the purpose of investment. The Town also shall not invest in instruments whose principal and interest have no backing, such as options and future contracts, nor in derivatives, outside of authorized pools. The Town's investments were in compliance with the above provisions as of and for the year ended June 30, 2024.

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Notes to Basic Financial Statements
NOTE 2 – DEPOSITS AND INVESTMENTS (CONTINUED)
B. Classification
As of June 30, 2024, cash and investments are classified in the accompanying financial statements as follows:

Cash on hand $ 1,900
Deposits with financial institutions 6,047,138
Investments 25,307,434
Investments with fiscal agent 158,888
Investments held in pension trust 1,209,137
Total Cash and Investments $ 32,724,497
As of June 30, 2024, cash and investments consist of the following:

Statement of Net Position:

Cash and investments 31,197,147 $
Restricted cash and investments 1,209,137
Fiduciary funds:

Cash and investments - West Loyola 318,213
Total Cash and Investments 32,724,497 $
C. Authorized Investments
The table below identifies the investment types that are authorized for the Town by the California Government Code and are further limited by the Town's investment policy. Limitations as they relate to interest rate risk, credit risk, and concentration of credit risk are indicated in the schedules below:

Authorized Investment Type
Maximum
Maturity
Maximum
Percentage/Dollar
of Portfolio
Maximum
Investment in
One Issuer
Securities issued by the U.S. Treasury 5 years No limit No limit U.S. Agency Securities 5 years No limit No limit
Municipal Securities 5 years 30% No limit
State Treasury Notes/Bonds 5 years 30% 5%
Bankers' Acceptances 180 days 40% 30%
Commercial Paper 270 days 25% 5%
Negotiable Certificates of Deposit 5 years 30% 5%
Local Government Investment Pools (LAIF) 5 years $75.0 mil No limit Insured savings account and bank money market accounts 5 years No limit 5% Money market mutual funds registered with SEC 5 years 20% 20% California Asset Management Program (CAMP) 5 years No limit No limit Medium-term corporate notes with A or better rating 5 years 30% 5% Supranationals 5 years 30% No limit
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Notes to Basic Financial Statements
NOTE 2 – DEPOSITS AND INVESTMENTS (CONTINUED)
D. Interest Rate Risk and Fair Value Hierarchy
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. The Town manages its exposure to interest rate risk by purchasing only shorter term investments as necessary to provide the cash flow and liquidity needed for operations.

As of June 30, 2024, the Town had the following investments:
12 Months 13 to 25 to
or less 24 Months 60 Months Total
U.S. Treasury Bonds/Notes $ 665,033 $ 3,944,480 $ 5,577,982 $10,187,495 Federal Agency Collateralized
Mortgage Obligation 395,784 2,856,753 3,252,537 -
U.S. Agency Notes 959,041 - 959,041 -
Municipal Bonds 19,686 510,701 46,767 577,154
Certificates of Deposit - 400,193 - 400,193
LAIF Investment Pool 3,800,155 - 3,800,155 -
Money Market Mutual Funds 1,368,025 - 1,368,025 -
Corporate Notes 157,794 506,353 5,403,971 6,068,118
CAMP Investment Pool 62,741 - - 62,741
Total Investments $ 6,073,434 $ 6,316,359 $ 14,285,666 $ 26,675,459 The Town categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure fair value of the assets. Level 1 inputs are quoted prices in an active market for identical assets; Level 2 inputs are significant other observable inputs; and Level 3 inputs are significant unobservable inputs.

Investments by Fair Value Level: Level 1 Level 2 Total
U.S. Treasury Bonds/Notes 10,187,495 $ - $ $ 10,187,495 Federal Agency Collateralized
Mortgage Obligation 3,252,537 - 3,252,537
U.S. Agency Notes 959,041 959,041 -
Municipal Bonds 577,154 577,154 -
Certificates of Deposit 400,193 400,193 -
Corporate Notes 6,068,118 6,068,118 -
CAMP Investment Pool - 62,741 62,741
Total Investments $ 10,187,495 $ 11,319,784 21,507,279
Investments Measured at Amortized Cost:

Money Market Mutual Funds 1,368,025
Local Agency Investment Fund 3,800,155
Cash in banks and on hand 6,049,038
Total Cash and investments $ 32,724,497
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