Agenda packet — Los Altos Hills City Council, May 14, 2026 (part 2 of 7)

21 City Council Regular Meeting Minutes
April 16, 2025
priorities for the budget.

Staff has developed a five-year financial forecast. The FY 2026–27 budget is close to balanced, with a smaller cushion than in prior years. A structural deficit emerges in the later years of the forecast, driven primarily by an approximately $800,000 increase in the law enforcement contract. The Town has also released a budget survey seeking community input on how to balance the budget given rising law enforcement costs, resident priorities, and how the Town should allocate its resources. The survey link is available in the City Manager’s Weekly.

E. Public Works Director WooJae Kim provided an update on the Council Chambers HVAC project, noting that Fuse Services replaced two failed gas furnaces with heat pump units last week. As the work was a like-for-like replacement, the building permit process was streamlined, and both units are now operational. He added that the remaining gas furnace in the Council Chambers will be replaced with a heat pump unit before the end of the year.

Director Kim also provided an update on the Magdalena Road Pathway Project, stating that staff plan to bring finalized plans and specifications to Council in May for a project that includes approximately 1,500 linear feet of roadside pathway from Camino Hermoso Drive to Blandor Way. Staff is currently conducting outreach to residents along Magdalena Road to inform them of the project, noting that some screening vegetation within the public right-of-way may need to be removed. Notices have been sent, and staff plans to visit impacted properties. The project will also be discussed at the Pathways Committee meeting on April 27.

Director Kim further reported that the contractor, G. Bortolotto, for the FY26 Road Rehabilitation Project is scheduled to begin the dig-out repair work on Corbetta Lane and Elena Road on May 4, with work on Fremont Road to begin in mid-May. Construction is anticipated to be completed by June or July, and residents should expect one-lane road closures during the work.

F. City Manager Cody Einfalt provided an update on several ongoing initiatives and projects. He reported that approximately 50 applications were received for the Summer Internship Program.

He also discussed emergency management efforts, noting exploration of a part-time shared services model with the County Fire District.

Einfalt shared that the speed feedback signs continue to rotate every two weeks through identified hotspots in Town. He provided an update on targeted traffic enforcement, stating that citations have decreased since January and that many violations involve out-of-town drivers, such as delivery and construction vehicles. He noted that staff are evaluating reducing enforcement presence back to normal levels.

Regarding recent wire thefts, Einfalt reported that he has met with AT&T and Comcast. AT&T is offering a reward for information leading to an arrest, and Comcast is partnering on proposed legislation (AB 1941) addressing issues related to recycling agencies. Sheriff patrols remain increased at this time.

Einfalt also provided an update on the Sheriff’s contract, noting a Town Hall is scheduled for Tuesday, and he is continuing discussions with representatives, including a meeting with James, to review proposals and pursue cost negotiations. He reported that the Town will be issuing a new Request for Proposals for private security services, with the goal of having a contract in place by the end of the fiscal year, and that staff are working with neighborhood leaders to evaluate service needs.

He further noted that the Environmental Programs and Resources Committee selected Genesis to conduct the Town’s sound study, which is expected to be completed by the end of the fiscal year.

Lastly, Einfalt highlighted upcoming events, including the 24th Annual Los Altos Hills Pathways Run/Walk scheduled for May 9 at 9:00 a.m.

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22 City Council Regular Meeting Minutes
April 16, 2025

11. COUNCIL INITIATED ITEMS
Councilmember Swan raised the upcoming 250th anniversary of the United States and inquired about the status of the De Anza plaque installation, noting the History Committee’s interest in completing the project. She also mentioned that a 250th anniversary flag has been procured and expressed interest in flying it in July. Additionally, she referenced a nationwide initiative to read the Constitution aloud on July 8 at 3:00 p.m. Pacific Time and suggested coordinating with the City of Los Altos, noting that Mayor Meadows has expressed interest in participating.

12. ADJOURN
Mayor Bhateja adjourned the meeting at 11:58 PM.

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ITEM 5D
Town of Los Altos Hills
City Council Special Meeting Minutes
Friday, April 17, 2026 at 7:30 A.M.

Fremont Hills Country Club, 12889 Viscaino Place, Los Altos Hills, CA 94022

Present: Mayor Rajiv Bhateja, Vice Mayor Bhateja George Tyson, Council Member Stanley Mok, Council Member Linda Swan, and Council Member Kavita Tankha

Absent: None
Staff: City Attorney Steve Mattas and City Clerk Arika Birdsong-Miller CALL TO ORDER (7:30 A.M.)
Mayor Bhateja called the meeting to order at 7:30 A.M.

1. ROLL CALL
Mayor Rajiv Bhateja, Vice Mayor George Tyson, Council Member Stanley Mok, Council Member Linda Swan, and Council Member Kavita Tankha were present.

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

3. ADJOURN TO CLOSED SESSION TO DISCUSS THE FOLLOWING:

A. CLOSED SESSION – Public Employment
(Pursuant to Government Code Section 54957)
Title: City Manager

Mayor Bhateja adjourned to Closed Session at 7:32 A.M.

4. REPORT OUT OF CLOSED SESSION
Attorney Steve Mattas announced that there were no reportable actions from Closed Session.

5. ADJOURN
Mayor Bhateja adjourned the meeting.

Respectfully submitted,
Arika Birdsong-Miller

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ITEM 5E
Town of Los Altos Hills
City Council Special Meeting Minutes
Wednesday, April 29, 2026, 2026 at 4:00 P.M.

Council Chambers, 26379 Fremont Road, Los Altos Hills, California,

Present: Mayor Rajiv Bhateja, Vice Mayor Bhateja George Tyson, Council Member Stanley Mok, Council Member Linda Swan, and Council Member Kavita Tankha

Absent: None
Staff: Acting City Manager Cody Einfalt, Community Development Director Jay Bradford, City Attorney Steve Mattas, Assistant City Attorney Claire Lai and City Clerk Arika Birdsong-Miller
CALL TO ORDER (4:00 P.M.)
Mayor Bhateja called the meeting to order at 4:01 P.M.

ROLL CALL
Mayor Rajiv Bhateja, Vice Mayor George Tyson, Council Member Stanley Mok, Council Member Linda Swan, and Council Member Kavita Tankha were present.

1. PUBLIC COMMENT (Public Comment is Limited to Items which are the Subject of the Special Meeting)
City Attorney Steve Mattas clarified for the record that the public comments received earlier during Public Communications would be incorporated into the public hearing record for the item.

2. PUBLIC HEARING

1. Consideration of: (1) Waiver of Reading and Introduction of an Ordinance Amending Article 16 (Multi-Family Development Standards) of Chapter 2 (Zoning) of Title 10 (Zoning and Site Development) of the Los Altos Hills Municipal Code to Revise Muli-Family Development Standards; and (2) Adoption of a Resolution Amending the Land Use Element of the General Plan Making Conforming Changes Regarding Multi-Family Land Uses (Staff:

J. Bradford)
Community Development Director Jay Bradford and Michael Baker International Consultant Dan Wery presented the proposed amendments to the Town’s Multi-Family Development Standards and corresponding Land Use Element amendments. The presentation explained that the amendments were prepared in response to a February 10, 2026 letter from the California Department of Housing and Community Development (HCD), which confirmed that the Town’s Housing Element remained certified while identifying several multifamily development standards that HCD considered potential constraints to housing production. Staff stated that the Town met with HCD multiple times throughout March and April 2026 to review draft revisions and confirm that the proposed amendments would address HCD’s comments.

The presentation summarized the proposed zoning amendments to the Town’s multifamily development standards, including reducing the minimum multifamily development site size

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Los Altos Hills Special City Council Meeting Minutes Page 2 Wednesday, April 29, 2026
from 3.5 acres to 0.5 acre and retaining the 10-acre maximum site size. Staff explained that the change was intended to increase development feasibility, align with Housing Element sites, and remove potential governmental constraints identified by HCD.

Staff and the consultant also reviewed proposed setback revisions, including reducing setbacks adjacent to single-family residential zoning from 60 feet to 35 feet and establishing setbacks of 35 feet front, 10 feet side, and 20 feet rear adjacent to multifamily or nonresidential properties. The proposal also removed the 25-foot overlay setback requirement. Staff explained that the revisions were intended to maintain compatibility with adjacent uses while allowing more efficient multifamily site design and eliminating standards HCD viewed as overly restrictive.

The presentation further described proposed changes to unit size and floor area standards.

Staff explained that HCD identified the Town’s average unit size requirement as a potential constraint on housing development. In response, the proposed amendments removed the average unit size requirement and unit mix standards and instead established a 0.45 floor area ratio (FAR) standard for habitable floor area. The proposal also established a 350-square-foot minimum unit size and an 1,800-square-foot maximum unit size. Additional FAR incentives were proposed, including a 0.05 FAR bonus for senior and assisted living housing and an anticipated 0.05 FAR bonus for affordable housing developments through the future Inclusionary Housing Ordinance or related policy. Staff stated that these changes were intended to provide additional flexibility while maintaining objective development standards.

The presentation also reviewed proposed Land Use Element amendments intended to maintain consistency between the General Plan and Zoning Code. Staff explained that the amendments updated references to multifamily development standards, setbacks, floor area calculations, and minimum multifamily parcel sizes while preserving the Town’s broader land use framework and Housing Element policies.

Staff noted that the Planning Commission reviewed the proposed amendments during special meetings on April 13 and April 22, 2026, and recommended City Council approval. The presentation concluded with a discussion of environmental review, explaining that the proposed amendments are exempt from CEQA pursuant to CEQA Guidelines Section 15061(b)(3) and Public Resources Code Sections 21080.17 and 21080.27 because the amendments are regulatory actions supporting implementation of the Housing Element, do not approve specific development projects, and do not create the potential for significant environmental impacts.

PUBLIC COMMENTS:

1. Michael Grady, a Los Altos Hills resident, provided comments regarding proposed multifamily lot size ranges. He concurred with John O’Connell’s suggestion to establish a minimum lot size of approximately one to two acres and expressed concern that developments larger than six or seven acres could create an undesirable concentration of multifamily housing.

Mr. Grady also stated that allowing multifamily development on half-acre lots could result in developers seeking setback waivers because the proposed setbacks may not leave sufficient buildable area to achieve the permitted density.

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Los Altos Hills Special City Council Meeting Minutes Page 3 Wednesday, April 29, 2026
Michael Grady further commented that he was confused regarding how the state-required floor area ratio provisions would apply to a three-quarter-acre multifamily development site. Mr.

Grady noted that the Town’s proposed multifamily zoning standards require a minimum density of 20 dwelling units per acre, which would result in approximately 15 units on a three-quarteracre parcel, and questioned how the state provisions related to projects containing three to ten units and the associated 1.25 floor area ratio would apply in that circumstance.

2. Jim Waschura, a Los Altos Hills resident, spoke in his personal capacity as a member of the Planning Commission and commented on recent discussions with HCD regarding Housing Element revisions. He stated that progress had been made on resolving several issues raised by HCD and credited Town staff for their efforts. Mr. Waschura expressed concern that reducing the minimum multifamily lot size to one-half acre could conflict with other state laws, resulting in developments with significantly greater floor area ratios than originally intended by the Town. He explained that increasing the minimum lot size to three-quarters of an acre could address the issue while still responding to HCD’s concerns. Mr. Waschura recommended that the Council approve the staff recommendations with the modification to change the minimum lot size from one-half acre to three-quarters of an acre and direct staff to discuss the proposed adjustment with HCD.

3. Rajiv Patel, a Los Altos Hills resident, spoke in his personal capacity as a Planning Commissioner and expressed support for the comments made by Commissioner Jim Waschura.

Mr. Patel stated that increasing the minimum multifamily lot size from one-half acre to threequarters of an acre would eliminate only a limited number of parcels and would not create significant new constraints on multifamily housing opportunities. He also discussed concerns regarding setbacks, noting that the Planning Commission had previously supported a simplified fixed setback approach to address HCD concerns. Mr. Patel suggested that the newly formed Housing Element standing committee could further evaluate more variable setback approaches for future consideration. He concluded by acknowledging the complexity of the issue and offered to answer questions from the Council.

Rajiv Patel further commented that he observed that the Town had previously spent more than a year developing a complex unit-mix approach that HCD ultimately rejected, whereas the newly proposed floor area ratio (FAR) approach was accepted within one week, suggesting that HCD responds more favorably to straightforward proposals.

4. John O’Connell, a Los Altos Hills resident, commented on HCD’s role in reviewing zoning ordinances and determining whether development standards constitute constraints or downzoning that could require the Town to identify additional housing sites. Mr. O’Connell expressed concern that the proposed fixed 60-foot setbacks would create development constraints, particularly on smaller parcels, and stated that applying the same setbacks to both large and small parcels was not practical. He also discussed the use of standard zoning tools such as floor area ratios and noted that HCD had accepted a proposed 0.45 floor area ratio. Mr.

O’Connell cautioned that once the proposed standards are adopted, it may be difficult to modify them in the future.

John O’Connell further commented regarding state default density provisions and stated that the one-half-acre to ten-acre range relates to an optional default density framework used by jurisdictions to demonstrate suitability for lower-income housing. Mr. O’Connell stated that parcels smaller than one-half acre may be considered unsuitable for lower-income housing, but

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Los Altos Hills Special City Council Meeting Minutes Page 4 Wednesday, April 29, 2026
expressed the opinion that there is no statutory requirement mandating jurisdictions to zone parcels within a specific acreage range.

Mr. O’Connell also discussed existing Town setback regulations, noting that larger structures and taller buildings currently require increased setbacks under Town standards. He expressed concern that the proposed multifamily standards would reduce setbacks for properties adjacent to other multifamily developments and stated that existing zoning protections for residents were not being fully considered.

Mr. O’Connell further stated that the proposed multifamily zoning standards would still provide significant development capacity, including up to 24 dwelling units per acre, substantial floor area allowances, and high coverage area ratios, which he believed should not be considered constraints on development if clearly explained to HCD. Mr. O’Connell urged the Council not to approve the proposed standards without additional discussions with HCD and recommended that a Planning Commissioner participate in those discussions.

5. Jim Waschura, a Los Altos Hills resident, provided additional comments regarding the implications of allowing multifamily development on one-half-acre lots. He stated that although the Town may choose not to zone existing half-acre parcels for multifamily housing, including such standards in the Land Use Element could create future expectations for development on approximately 60 undeveloped half-acre lots within Town. Mr. Waschura expressed concern that housing advocates or developers could rely on those standards to request multifamily zoning on smaller parcels in the future. He further stated that increasing the minimum lot size at a later date could be difficult and reiterated his recommendation to establish a three-quarter-acre minimum now to address concerns related to floor area ratio consistency across multifamily zones.

Jim Waschura further commented that his original proposal was to direct staff to discuss a three-quarter-acre minimum lot size with HCD while recognizing that the Town would likely proceed with the one-half-acre standard if HCD did not support the request. Mr. Waschura stated that he believed it was worthwhile to have the discussion with HCD and reiterated that the practical impact of the one-half-acre standard would likely affect only a very limited number of cases, while setbacks remained the larger concern.

Council Member Linda Swan asked whether the Town is required under state law to allow multifamily development on parcels as small as one-half acre and whether increasing the minimum lot size to three-quarters of an acre would place the Town out of compliance with state law.

City Attorney Steve Mattas responded that HCD has indicated to staff that it expects the Town to allow a minimum multifamily lot size of one-half acre. Mr. Mattas explained that HCD believes smaller lots provide additional opportunities for housing development and noted that HCD is responsible for reviewing and commenting on the Town’s zoning regulations.

Mayor Rajiv Bhateja asked about the applicability of state “safe harbor” provisions related to multifamily developments on parcels between one-half acre and ten acres.

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Los Altos Hills Special City Council Meeting Minutes Page 5 Wednesday, April 29, 2026
City Attorney Steve Mattas responded that California law establishes minimum floor area ratios for certain multifamily developments, including projects with three to seven units or eight to ten units, regardless of local standards. Mr. Mattas explained that these state requirements apply only to properties designated by the Town for multifamily zoning and noted that the Town Council retains authority over which parcels receive multifamily designations.

Council Member Tankha asked staff for their thoughts regarding the Planning Commissioners’ proposal to increase the minimum multifamily development site size from one-half acre to three-quarters of an acre.

Mayor Bhateja asked about the interaction between the 0.5-acre minimum and state FAR requirements. The City Attorney explained that multifamily zoning requires a minimum of 20 units per acre, and that a developer on a qualifying lot could elect to use either the Town's

0.45 FAR or the state mandated FAR, potentially resulting in fewer units than anticipated.

Mayor Bhateja asked whether a lot of exactly 0.5001 acres could be reduced to exactly 0.5 acres to trigger the state law provision. Staff confirmed this was theoretically possible, but noted that the provision requires the lot to be zoned multifamily, a designation the Council controls, and that the buildable area (not gross acreage) is what matters.

Council Member Swan asked about the June 10th deadline and whether requesting a 0.75- acre minimum from HCD could cause the Town to miss it and expose it to Builder's Remedy. The City Attorney confirmed this was a risk if HCD did not grant an extension, and noted that HCD's preferred position is actually no minimum lot size at all.

Council Member Mok raised concerns about how residents would perceive allowing multifamily development on one-half-acre lots and asked whether requesting a three-quarteracre minimum from HCD was feasible. The City Attorney advised that HCD has indicated it expects a one-half-acre minimum lot size and that requesting a three-quarter-acre minimum could be viewed as a constraint that may result in HCD rejecting the zoning or delaying final action.

Council Member Tyson commented on the broader context of California’s housing challenges and acknowledged that the State is requiring jurisdictions, including Los Altos Hills, to contribute toward addressing the housing shortage. Council Member Tyson stated that the Town has historically sought to preserve its semi-rural character, but has also committed to finding ways to comply with state housing requirements while maintaining as much local control as possible over development standards and outcomes.

Council Member Tyson further stated that the Town has engaged in an ongoing dialogue with HCD and has found HCD willing to listen and respond to the Town’s concerns. Drawing from his experience with negotiations, Council Member Tyson expressed concern about continuing to reopen issues late in the process and stated that HCD had clearly communicated its expectations regarding the one-half-acre minimum lot size. Council Member Tyson stated that he had not heard a compelling argument demonstrating a significant practical difference between one-half-acre and three-quarter-acre minimums and expressed support for proceeding with the one-half-acre standard in order to demonstrate partnership with HCD, meet the required deadline, and continue protecting the Town’s interests to the extent possible under state law.

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Los Altos Hills Special City Council Meeting Minutes Page 6 Wednesday, April 29, 2026
.

Council Member Mok commented, “A bird in the hand is worth far more than two in the bush.”
Council Member Swan asked whether the Council could approve the ordinance with a conditional provision establishing a three-quarter-acre minimum if HCD agreed, and otherwise retain the one-half-acre minimum. The City Attorney advised that the ordinance must be introduced in its final adoptable form and could not include a conditional provision.

However, the Council could introduce the ordinance with the one-half-acre standard while simultaneously directing staff to request HCD approval for a three-quarter-acre minimum.

Attorney Mattas further explained that if HCD approved the revised standard, the ordinance would need to be reintroduced.

Council Member Swan ultimately stated that she would support the one-half-acre minimum, noting that the practical impact would affect only a small number of cases and that setbacks were the more significant concern.

Mayor Bhateja made a motion to Waive the Reading and Introduce an Ordinance Amending Article 16 (Multi-Family Development Standards) of Chapter 1 (Zoning) of Title 10 (Zoning and Site Development) of the Los Altos Hills Municipal Code to revise Multi-family Development Standards, and to Adopt a Resolution Amending the Land Use Element of the General Plan to make conforming changes regarding Multi-family Land Uses.

Mayor Bhateja amended the motion to additionally direct staff to contact HCD and request approval to increase the minimum multifamily lot size from one-half acre to three-quarters of an acre while proceeding with introduction of the ordinance as presented. Council Member Tankha seconded the amended motion. During discussion of the motion, the City Attorney clarified that if HCD agreed to the requested change, the ordinance would need to be reintroduced at a Special Meeting prior to adoption in order to remain on the May 14, 2026 timeline. Council Member Tyson confirmed that if HCD did not support the requested increase, the ordinance would proceed as introduced with the one-half-acre minimum standard.

Attorney Mattas confirmed that the ordinance would be introduced with two errata corrections, including one correcting a reference to state law in the zoning ordinance and another correcting a reference in the resolution that incorrectly identified it as a Planning Commission Resolution instead of a City Council Resolution.

Attorney Mattas also noted that if HCD approved the three-quarter-acre minimum request, the Council would need to reintroduce the ordinance at a special meeting in early May and subsequently adopt the ordinance at the May 14, 2026 regular meeting, with at least five days required between introduction and adoption.

MOTION PASSED: 5-0
AYES: Bhateja, Tyson, Mok, Swan, Tankha
NOES: None
RECUSE: None

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Los Altos Hills Special City Council Meeting Minutes Page 7 Wednesday, April 29, 2026
ABSTAIN: None
ABSENT: None

3. CLOSED SESSION
A. CLOSED SESSION: Conference with Legal Counsel – Existing Litigation Pursuant to Government Code Section 54956.9(d)(1) Name of Case: California Housing Defense Fund v.

Town of Los Altos Hills (Case No. 26CV491087)
Following the Closed Session, City Attorney Steve Mattas reported that for this matter, the Council by 5-0 directed that Redwood Public Law handle defense of the litigation

4. ADJOURN
Mayor Bhateja adjourned the meeting.

Respectfully submitted,
Arika Birdsong-Miller

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TOWN OF LOS ALTOS HILLS May 14, 2026
Staff Report to the City Council
SUBJECT: RESOLUTION DIRECTING THAT THE PRIDE FLAG BE RAISED FOR THE MONTH OF JUNE 2026
FROM: Joram Parcutilo, Management Analyst
APPROVED: Cody Einfalt, Acting City Manager
RECOMMENDATION: That the City Council should:

Adopt the attached resolution (Attachment 1) directing that the Pride Flag be raised in Town from June 1-30th, 2026.

DISCUSSION:

On October 20, 2022, the City Council adopted a Display Flag Poles Policy regulating ceremonial and commemorative flags on Town flag poles (Attachment 2). These poles are not public forums, but reflect the official sentiment of the City Council.

The attached resolution (Attachment 1) authorizes raising the Pride Flag from June 1–30, 2026 in support of the LGBTQIA+ (lesbian, gay, bisexual, transgender, queer or questioning, intersex, asexual, and more) community.

ENVIRONMENTAL REVIEW:

Raising a flag is exempt from California Environmental Quality Act (CEQA) due to the proposal not being defined as a “project” under CEQA.

CITY COUNCIL WORK PLAN:

Raising the Pride Flag was not identified in the City Council Work Plan, however the proposal requires minimal work and could be absorbed into staff’s available bandwidth.

FISCAL IMPACT:

There is no anticipated fiscal impact for the adoption of the attached resolution.

ATTACHMENTS:

1. Proposed Resolution

2. Display Flag Poles Policy & Procedures (October 20, 2022) ITEM 5F

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Resolution __ -25 Page 1
RESOLUTION __ -26

RESOLUTION DIRECTING THAT THE PRIDE FLAG BE RAISED FOR THE MONTH OF JUNE 2026
WHEREAS, the City Council desires to display ceremonial and commemorative flags on Display Flag Poles as an expression of the City Council’s official sentiments; and WHEREAS, on October 20, 2022, the City Council adopted a Display Flag Poles Policy & Procedure; and
WHEREAS, the Town’s Display Flag Poles are not intended to serve as forums for free speech or expression by the public, and are intended only to display ceremonial and commemorative flags that express the official sentiment of the City Council; and WHEREAS, the City Council desires to raise the Pride Flag for the month of June 2026 in support of the LGBTQIA+ community (lesbian, gay, bisexual, transgender, queer or questioning, intersex, asexual, and more) on Town owned flag poles.

NOW THEREFORE, the City Council of the Town of Los Altos Hills hereby directs that the Pride Flag be raised from June 1-30th, 2026.

The above and foregoing Resolution was passed and adopted by the City Council of the Town of Los Altos Hills at a Regular meeting held on 14h of May 2026 by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

By:

Rajiv Bhateja, Mayor
ATTEST:
_____
Arika Miller, City Clerk
ITEM 5F, ATTACHMENT 1

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TOWN OF LOS ALTOS HILLS
26379 Fremont Road
Los Altos Hills, CA 94022
Phone: (650) 941-7222
www.losaltoshills.ca.gov
Display Flag Poles Policy & Procedures
Approved by City Council: October 20, 2022

1. Purpose
The purpose of this document is to establish the policy and procedures to be followed by all Town employees regarding the display of ceremonial or commemorative flags on the flag poles throughout the Town (“Display Flag Poles”).

2. Policy
All flags shall be displayed in accordance with federal and state regulations, including Title 4, Chapter 1 of the United States Code, and Sections 430 through 439 of the California Government Code. Display Flag Poles are not intended to be a forum for free expression by the public.

Ceremonial or commemorative flags shall be displayed as an expression of the Town’s official sentiments. Ceremonial and commemorative flags elected for display will reflect the Town’s speech, not that of an individual community member or group, and therefore must be approved by City Council resolution.

The display of ceremonial or commemorative flags other than the flags of the United States of America, State of California, and Town of Los Altos Hills must be supported by at least one Council member for Council consideration. The Council will not review proposals for the display of ceremonial or commemorative flags from third parties directly, nor will the Town use its Display Flag Poles to sponsor the expression of a third party. Flag raising ceremonies shall be conducted in accordance with all applicable provisions of federal and state laws.

3. Procedures
The Town will authorize the display of ceremonial or commemorative flags on Display Flag Poles as an expression of the Town’s official sentiments upon adoption of City Council resolution:

A. A councilmember who wishes to propose the display of ceremonial or commemorative flags will contact the City Manager to request a draft resolution be presented to City Council.

B. Town staff will draft and present a resolution to City Council including a proposed date of flag-raising, the length of flag display, and expression of the Town’s official sentiments regarding the proposed flag.

ITEM 5F, ATTACHMENT 2

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Draft Flag Display Policy and Procedures

Page 2 ends

C. The resolution must be approved by a majority of City Council members to be adopted.

B. Upon adoption of the City Council Resolution to display a ceremonial or commemorative flag, Town staff will follow the following guidelines:
a. The procurement of the flags for each Display Flag Pole shall be the responsibility of the Town.
b. Any flag-raising ceremony will not be allowed to take place in the street or in any other way block the public right of way.
c. Speakers may be permitted to speak on the Town’s behalf to present background information on the flag display.

C. Any exceptions to these guidelines must be approved by resolution of City Council.

D. If any of these guidelines are not followed, the Office of the City Manager has the right to suspend or cancel a flag-raising ceremony.
5171557.2

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TOWN OF LOS ALTOS HILLS May 14, 2026
Staff Report to the City Council
SUBJECT: WAIVE SECOND READING AND ADOPT AN ORDINANCE
AMENDING TITLE 2, CHAPTER 1 “COUNCILMEMBER SALARIES”

OF THE LOS ALTOS HILLS MUNICIPAL CODE TO INCREASE THE
COUNCILMEMBERS’ SALARIES TO NINE HUNDRED FIFTY

DOLLARS A MONTH
FROM: Joram Parcutilo, Management Analyst JP
APPROVED: Cody Einfalt, Acting City Manager CE
RECOMMENDATION: That the City Council:

1. Waive the second reading and adopt an Ordinance (Attachment 1) Amending Title 2, Chapter 1 (“Councilmember salaries”) of the Los Altos Hills Municipal Code to:
a. Increase City Councilmember salaries from three hundred dollars ($300) per month to nine hundred fifty dollars ($950) per month.
b. While the ordinance itself becomes effective 30 days after adoption, the increase will not take effect until December 2028 with the seating of the new City Council.

BACKGROUND:

California Government Code Section 36516 authorizes city councils in general law cities to establish salaries for their members by ordinance, based on the population of the city. The salary schedule set forth in Section 36516(a)(1) remained unchanged since 1984 until legislative action in 2023 to update salary levels to keep pace with the evolving scope, time commitment, and complexity of local governance.

On June 29, 2023, the California Legislature enacted Senate Bill (SB) 329, which amended Section 36516 to update the population-based salary schedule by ordinance for city council members in general law cities, including the Town of Los Altos Hills (Town). In adopting SB 329, the Legislature expressed its intent to reduce financial barriers to public service and to support greater diversity among city councils by enabling individuals from a broader range of income levels to serve and continue serving in elected office while supporting their families.

On February 10, 2026, the City Council discussed potential increase to City Council compensation amounts and provided direction to staff to present an ordinance to increase Councilmembers’ salaries to $950 per month for Council consideration, as well as review the schedule for the two-meeting/public hearing process consistent with SB 329. Town Staff and the City Attorney’s Office completed a review of the current Municipal Code in February 2026.

A redline version showing the updated Municipal Code to reflect this change is included in this report (Attachment 1).

ITEM 5G

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Staff Report to City Council
Ordinance Amending the Municipal Code to Increase Councilmember Salaries May 14, 2026 2
The proposed ordinance would amend Title 2, Chapter 1 of the Municipal Code to reflect the approved salary level.

This item was presented during a public hearing at the March 19, 2026 City Council meeting but did not pass due to a tie vote (Attachment 2).

The proposed amendment (Attachment 1) was reintroduced at the April 16, 2026 meeting, in which the item passed (Attachment 3). Council directed staff to return with the ordinance for final consideration and adoption. This increase will not take effect until December 21, 2028 with the seating of the new City Council
DISCUSSION:

Per SB 329 amendments to Section 36516(a)(2), salaries approved by ordinance shall be up to and including $950 per month for cities with a population size of 35,000 or smaller. Based on the U.S. Census, the Town’s population size was 8,489 as of 2020.

SB 329 also amended Section 36516(a)(4) to allow future adjustments beyond the base maximum amount, provided that any increase does not exceed the greater of:
• Five percent (5%) per calendar year from the operative date of the last adjustment, or • Inflation since January 1, 2024, based on the California Consumer Price Index, not to exceed ten percent (10%) per calendar year.

In addition, SB 329 added procedural requirements under Sections 36516(g)(1)-(3), requiring that an ordinance increasing Councilmembers’ salaries be considered at a minimum of two regular City Council meetings. Section 36516(g) requires that the ordinance must be introduced at one regular meeting and adopted at a subsequent regular meeting at least seven days after the first meeting.

Government Code Section 36516.5 further provides that any change in salary will take effect prospectively and does not apply to a Councilmember during their current term of office. Any increase will only take effect for all Councilmembers serving staggered terms upon any Councilmember beginning a new term of office.

ANALYSIS:

The proposed salary of $950 per month:
• Is within the statutory maximum allowed under Government Code Section 36516(a)(2);
• Aligns with State law requirements under SB 329; and
• Reflects prior City Council direction per the April 16th, 2026 meeting Pursuant to Government Code Section 36516.5:
• Importantly, pursuant to Government Code Section 36516.5 and as stated in the ordinance, the salary increase does not take effect immediately upon adoption.

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Staff Report to City Council
Ordinance Amending the Municipal Code to Increase Councilmember Salaries May 14, 2026 3
• Instead: The ordinance becomes effective 30 days after adoption, consistent with Government Code Section 36933; however,
This means that current Councilmembers will continue receiving the existing salary during their current terms, and the increase will apply prospectively to future terms specifically, beginning with the seating of City Council in December 2028.

ENVIRONMENTAL REVIEW:

The proposed ordinance is exempt from California Environmental Quality Act (CEQA) pursuant to Section 15061(b)(3) of the CEQA Guidelines. Amendments to the Municipal Code do not create any physical changes, approve any projects, or alter any environmental or land uses and therefore does not have the potential or possibility to create significant environmental effects. As such, the proposed ordinance is exempt from CEQA.

FISCAL IMPACT:

At $950 per month, the annual salary per Councilmember would total $11,400.

For five Councilmembers, the sum of all annual salaries would be $57,000, exclusive of payroll taxes and any optional benefit participation.

Any increase will not take effect for a Councilmember during their current term of office pursuant to Government Code Section 36516.5 and will only take effect for all Councilmembers upon beginning with the seating of City Council in December 2028.

ATTACHMENTS:

1. Ordinance Amending Councilmember Salaries

2. City Council Regular Meeting Recap: March 19, 2026

3. City Council Regular Meeting Recap: April 16, 2026

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ITEM 5G, ATTACHMENT 1
ORDINANCE ______
AN ORDINANCE OF THE TOWN OF LOS ALTOS HILLS AMENDING TITLE 2, CHAPTER 1 “COUNCILMEMBER SALARIES” OF THE LOS ALTOS HILLS MUNICIPAL CODE TO INCREASE COUNCILMEMBERS’ SALARIES TO NINE

HUNDRED FIFTY DOLLARS A MONTH
WHEREAS, Title 2, Chapter 1 of the Los Altos Hills Municipal Code (“Councilmember salaries”) was adopted to establish the Town of Los Altos Hill’s (Town) salaries for City Councilmembers; and
WHEREAS, California Government Code Section 36516 authorizes city councils in general law cities to establish salaries for their members by ordinance based on the population of the city, and the salary schedule set forth in Section 36516(a)(1) has remained unchanged since 1984; and
WHEREAS, Senate Bill (SB) 329 of 2023 amended Section 36516 to update the population-based salary schedule by ordinance for city council members in general law cities, including salary increases up to $950 per month for cities with a population size of 35,000 or smaller; and
WHEREAS, the current Ordinance sets City Councilmembers salaries’ at $300 per month and the Town’s population size was most recently estimated to be 8,489 based on the 2020 U.S.

Census; and
WHEREAS, City Councilmembers devote significant time and effort to Town business, including regular and special City Council meetings; study sessions, subcommittee assignments, and regional agency participation; review of staff reports and agenda materials in preparation for council meetings; responding to resident inquiries and conducting community outreach; and attendance at Town events and ceremonial functions; and WHEREAS, City Councilmember responsibilities routinely extend beyond formal meeting hours and have increased in complexity due to regulatory mandates, fiscal oversight responsibilities, housing law requirements, regional coordination efforts, and heightened community engagement expectations; and
WHEREAS, the proposed Ordinance increases City Councilmember salaries from $300 per month to $950 per month; and
WHEREAS, during the February 10, 2026 City Council meeting, Council discussed and gave direction to Town staff to prepare an ordinance to increase the Council salary to $950 per month. The Council, in giving this direction, concluded that such increase is an appropriate salary level within the statutory maximum for the Town’s population size and consistent with salary approaches used by neighboring jurisdictions; and
WHEREAS, any increase will not take effect for a Councilmember during their current term of office pursuant to Government Code Section 36516.5 and will only take effect for all Councilmembers upon any Councilmember beginning a new term of officestarting in December 2028; and

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Page 2 of 3 ends

WHEREAS, pursuant to Government Code Section 36516(g), the ordinance must be introduced at one regular meeting and adopted at a subsequent regular meeting at least seven days after the first meeting; and
WHEREAS, adoption of this proposed Ordinance will align with the Legislature’s stated intent under SB 329 to reduce financial barriers to public service and recognize that modernized salary levels may help encourage broader participation in local governance, including greater involvement from younger generations and working professionals who may otherwise face financial constraints in serving.

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

SECTION I. FINDINGS.

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

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

2. Based on the entirety of the record before it, the City Council hereby finds that this proposed Ordinance is exempt from review under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15061(b)(3). Under Section 15061(b)(3), CEQA applies only to projects that have the potential for causing a significant effect on the environment, and where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. In this case, the proposed amendment does not create any physical changes, approve any projects, or alter any environmental or land uses and therefore does not have the potential or possibility to create significant environmental effects. As such, the proposed Ordinance is exempt from CEQA.

3. The proposed Ordinance is consistent with the Legislature’s stated intent under SB 329 to reduce financial barriers to public service and recognize that modernized salary levels may help encourage broader participation in local governance, including greater involvement from younger generations and working professionals who may otherwise face financial constraints in serving.

SECTION II. AMENDMENT.

Chapter 1 of Title 2 of the Town of Los Altos Hills Municipal Code is hereby amended to read as set forth in full herein.

The following sections in Title 2, Chapter 1 are amended as follows, with additions in red double underline and deletions in strikethrough. Sections, subsections, paragraphs, and texts not modified by this amendment are not included below and shall remain in full force and effect. § 2-1.201. Councilmember salaries.

Each member of the City Council shall receive, as salary, $300950 per month starting December 2028.

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Page 3 of 3 ends

SECTION III. SEVERABILITY.

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

SECTION IV. EFFECTIVE DATE AND PUBLICATION.

Pursuant to the provisions of Government Code Section 36933, a summary of this Ordinance shall be prepared by the City Attorney. At least five (5) days prior to the Council meeting at which this Ordinance is scheduled to be adopted, the City Clerk shall (1) publish the Summary, and (2) post in the City Clerk’s Office a certified copy of this Ordinance. Within fifteen (15) days after the adoption of this Ordinance, the City Clerk shall (1) publish the summary, and (2) post in the City Clerk’s Office a certified copy of the full text of this Ordinance along with the names of those City Council members voting for and against this Ordinance or otherwise voting.

This Ordinance shall become effective upon the later of: (1) thirty (30) days from and after its adoption, and (2) the date upon which one or more members of the City Council begins a new term of office following the general municipal electionon December 2028.

INTRODUCED: ______________, 2026
PASSED: _______________, 2026
AYES:

NOES:

ABSTENTIONS:

ABSENT:

BY: _________________________
Mayor
ATTEST:
_________________________
City Clerk
APPROVED AS TO FORM:
_________________________
City Attorney

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1 City Council Regular Meeting Recap
March 19, 2025
Town of Los Altos Hills, California

CITY COUNCIL REGULAR MEETING RECAP
Thursday, March 19, 2026 – 6:00 P.M.

THE FOLLOWING INFORMATION IS A SUMMARY OF CITY COUNCIL ACTIONS FROM THE REGULAR CITY COUNCIL MEETING ON MARCH 19, 2026.

OFFICIAL MINUTES FROM THE MEETING WILL BE POSTED UPON ADOPTION BY

THE CITY COUNCIL

CITY COUNCIL MEETING RECAP
THURSDAY, MARCH 19, 2026
CALL TO ORDER (6:00 P.M.)
Mayor Bhateja called the meeting to order at 6:03 P.M.

ROLL CALL
Mayor Rajiv Bhateja, Council Member Stanley Mok, Council Member Linda Swan, and Council Member Tankha were present.

Vice Mayor Tyson was absent.

PLEDGE OF ALLEGIANCE – Recited

1. AGENDA REVIEW
Council Member Swan made a motion to continue Item 7B, Waiver of Reading and Introduction of an Ordinance amending Title 2, Chapter 1, ‘Councilmember Salaries,’ of the Los Altos Hills Municipal Code, to the next regular City Council meeting on April 16, 2026. Council Member Mok seconded the motion. MOTION FAILED, VOTE 2-2

2. PRESENTATIONS AND APPOINTMENTS
A. Proclamation Recognizing March 2026 as Youth Arts Month in the Town of Los Altos Hills Mayor Bhateja presented the proclamation recognizing March 2026 as Youth Arts Month to Sofia Fojas, Art Coordinator for the Santa Clara County Office of Education B. Proclamation Recognizing March 2026 as Red Cross Month in the Town of Los Altos Hills Mayor Bhateja presented the proclamation recognizing March 2026 as Red Cross Month to Larry Hebb, the American Red Cross Silicon Valley Chapter
ITEM 5G, ATTACHMENT 2

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2 City Council Regular Meeting Recap
March 19, 2025
C. Proclamation Recognizing March 2026 as Women’s History Month in the Town of Los Altos Hills Council Member Swan presented the proclamation recognizing March 2026 as Women’s History Month in the Town of Los Altos Hills to Carol Gottlieb and all the women present.

D. Reappointment to the Los Altos Hills Open Space Committee Council Member Swan made a motion to reappoint Peter Brown to the Los Altos Hills Open Space Committee. Council Member Mok seconded the motion. APPROVED, VOTE 4-0 E. Reappointments (3) to the Los Altos Hills Technology Committee Mayor Bhateja made a motion to reappoint Ameesh Divatia, Annie Ju, and George Lee to the Los Altos Hills Technology Committee. Council Member Tankha seconded the motion. APPROVED, VOTE 4-0
F. Reappointment to the Los Altos Hills History Committee Council Member Swan made a motion to reappoint Sylvia Jensen to the Los Altos Hills History Committee. Council Member Tankha seconded the motion. APPROVED, VOTE 4-0 G. Report from the Los Altos Hills Community Fire District General Manager J. Logan of the Los Altos Hills County Fire District presented a report on the status of fire and emergency medical services. The presentation highlighted the approval of a new 10- year Fire and Emergency Medical Services Agreement (2027–2036) with Santa Clara County Central Fire Protection District, which maintains current service levels, financial structure, and ongoing partnerships. The agreement supports long-term stability, continued 24/7 service, emergency preparedness efforts, and potential future expansion, including consideration of a new fire station.

The report also noted regional coordination efforts and recent actions related to fire service delivery in Los Altos and surrounding areas.

3. PRESENTATIONS FROM THE FLOOR

1. John O’Connell

2. Eric Bredo

3. Rajiv Patel

4. Elizabeth Wilson

4. INFORMATIONAL REPORTS (item provided solely for informational purposes only) A. Treasurer’s Report - This item is provided solely for informational purposes.

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

5. CONSENT CALENDAR
Council Member Tankha made a motion to approve the Consent Calendar, removing ITEM 5L.

Council Member Swan seconded the motion. APPROVED, VOTE 4-0 A. Approval of the Special City Council Meeting Minutes January 15, 2026 – APPROVED, VOTE 4-0

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3 City Council Regular Meeting Recap
March 19, 2025
B. Approval of the City Council Special Meeting Minutes January 21, 2026 - APPROVED, VOTE 4-0
C. Approval of the City Council Special Meeting Minutes February 2, 2026– APPROVED, VOTE 4-0
D. Approval of the City Council Special Meeting (Goal Setting) February 4, 2026 – APPROVED, VOTE 4-0
E. Approval of the City Council Regular Meeting February 10, 2026 – APPROVED, VOTE 4-0 F. Vacating Appointment to the Los Altos Hills Pathway Committee – Mike Henshaw - APPROVED, VOTE 4-0
G. Resolution Accepting the Proposed Donated Architectural Services from M Designs Architect for the Replacement of the Parks and Recreation Building- APPROVED, VOTE 4-0 H. Resolution Terminating the Emergency Declaration for the Town Hall Heating, Ventilation, and Air Conditioning System Repair/Replacement Project - APPROVED, VOTE 4-0 I. Resolution Awarding a Construction Contract for the FY25/26 Pavement Rehabilitation and Drainage Improvement Project to G. Bortolotto & Company, Inc., the Lowest Responsible and Responsive Bidder, for an Amount of $1,103,936 and Authorizing the City Manager to Execute the Construction Contract; and Approving Project Contingency Funds of $165,000 and Authorizing the Public Works Director to Approve Potential Contract Change Orders Within the Said Funds - APPROVED, VOTE 4-0
J. Resolutions Granting Various Extensions for Various Building Permits - APPROVED, VOTE 4- 0 K. Notification of Fast Track Approval at 10225 West Loyola Drive - APPROVED, VOTE 4-0 L. Letter of Support for AB 2517 – REMOVED FROM THE CONSENT CALENDAR ITEM 5L- Letter of Support for AB 2517 –
Public Comments:

1. John O’Connell

2. Elizabeth Wilson
Item 5L was removed from the Consent Calendar. A motion was made for approval; however, the motion failed due to the lack of a second.

6. ONGOING BUSINESS
A. Discussion and Possible Action on Establishing a Housing Element Ad Hoc Committee

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4 City Council Regular Meeting Recap
March 19, 2025
Public Comments:

1. John O’Connell

2. Mike Grady

3. Carol Gottlieb

4. Bridgett Morgan

5. Yatin Mutgar

6. Brian O’Neil

7. Jitze Couperus
Council Member Tankha made a motion to create a Housing Element Standing Committee and provided direction to staff. Council Member Mok seconded the motion.

APPROVED, VOTE 3-1

7. PUBLIC HEARING
A. Resolution Approving a Conditional Use Permit and Variance for modification and improvements to Pinewood School at 26800 Fremont Road; Lands of Palo Alto Unified School District; File #CUP25-0004
Public Comments:

1. Michael Xie

2. Michael Li

3. Manisha Gupta

4. Katia Kamangar

5. Mike Gupta

6. Aaron Xie

7. Madeline Wheatley

8. Caitlyn Kramer

9. Kathleen Pickett
Mayor Bhateja made a motion to approve the Resolution granting a Conditional Use Permit and Variance for modifications and improvements to Pinewood School, located at 26800 Fremont Road (Lands of Palo Alto Unified School District), with the following conditions:
• Removal of Condition No. 9, eliminating reference to Los Altos Garbage Company as the source of the debris box; and
• Within six months following commencement of operations at the new facility, Pinewood School shall return to the Planning Commission for a review of traffic conditions.

Council Member Mok seconded the motion. APPROVED, VOTE 4-0 B. Waiver of Reading and Introduction of an Ordinance Amending Title 2, Chapter 1 “Councilmember Salaries” of the Los Altos Hills Municipal Code to Increase the Councilmembers’ Salaries to Nine Hundred Fifty Dollars a Month
Council Member Swan made a motion to Waive Reading and introduce an Ordinance Amending Title 2, Chapter 1 “Councilmember Salaries” of the Los Altos Hills Municipal Code to Increase the

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5 City Council Regular Meeting Recap
March 19, 2025
Councilmembers’ Salaries to Nine Hundred Fifty Dollars a month. Council Member Mok seconded the motion. FAILED, VOTE 2-2
C. Consideration of a Waiver of Reading and Introduction of an Ordinance Amending Title 10, Chapter 1 of the Municipal Code Regarding the Town’s Accessory Dwelling Unit Regulation Council Member Tankha made a motion to Waive the Reading and Introduce an Ordinance Amending Title 10, Chapter 1 of the Municipal Code Regarding the Town’s Accessory Dwelling Unity Regulation. Council Member Swan seconded the motion. APPROVED, VOTE 4-0

8. NEW BUSINESS
A. Receive 2025-26 Mid-Year Financial Report and Adopt Resolution Approving Mid-Year Budget Appropriations
Council Member Swan made a motion to Receive 2025-26 Mid-Year Financial Report and Adopt a Resolution Approving the Mid-Year Budget Appropriations. Council Member Mok seconded the motion. APPROVED, VOTE 4-0
B. Discussion on Next Steps for the Green Sheets Ballot Initiative Measure Public Comments:

1. John O’Connell

2. Jitze Couperus

3. Rajiv Patel

4. Carol Gottlieb

5. Allan Epstein
Council Member Swan made a motion to create an Ad Hoc Committee composed of Council Member Swan and Council Member Tankha to determine which items in the Green Sheets should be codified in a Council-Initiated Ballot Measure. Council Member Tankha seconded the motion. APPROVED, VOTE 4-0

9. REPORTS FROM COMMITTEES, SUB-COMMITTEES, AND COUNCILMEMBERS ON

OUTSIDE AGENCIES
Mayor Bhateja reported on the Public Safety Ad Hoc Committee, noting that he and Councilmember Swan have been meeting with representatives from Saratoga, Cupertino, and Los Altos Hills, along with city managers, legal counsel, and consultants, to discuss sheriff service contract negotiations with the County. The group recently submitted a counterproposal proposing a more moderate cost increase of approximately 12% for the first year, with remaining increases phased over two additional years. A response from the County is anticipated. Mayor Bhateja also noted plans for a multi-city town hall in April to update residents. He highlighted that the current contract cost is approximately $2.75 million, while the proposed contract would increase to approximately $3.5 million, representing an estimated 20–24% increase, which the participating agencies consider excessive.

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6 City Council Regular Meeting Recap
March 19, 2025

10. STAFF REPORTS
A. City Attorney Steve Mattas reported that there was no reportable action from Closed Session, though direction was provided regarding an exposure to litigation matter.

B. City Clerk Arika Miller provided an update on the records management project, noting that staff anticipates beginning the relocation of records from the Corporation Yard by the end of March or early April. She also reported that negotiations on the “Our Town” contract are ongoing.

C. Planning Director Jay Bradford reported on Housing Element implementation efforts, including ongoing coordination with the California Department of Housing and Community Development (HCD) and upcoming items to be presented to the Planning Commission and City Council. He also noted outreach efforts, including thank-you letters to partner organizations, and provided updates on ADU-related coordination with fire officials and design professionals. Additionally, he reported that the deadline for MEP fee refund requests is April 16, 2026, and that work on the Town’s fee schedule is progressing, with anticipated review by the Finance and Investment Committee in early April.

D. Finance Director Thomas Leung reported on the implementation of AI-based tools to improve bank reconciliation and financial reporting processes. He also provided updates on the FY 2026–2027 budget process, including upcoming meetings with the Finance and Investment Committee and City Council.

E. Public Works Director WooJae Kim provided updates on the Town Hall HVAC project, including completion of mini-split installations and next steps for Council Chamber HVAC replacements. He also reported on ongoing sewer charge negotiations with the Cities of Palo Alto and Los Altos, and provided a status update on the Heritage House project, which is anticipated to be completed near the end of March.

F. City Manager Cody Einfalt provided updates on several initiatives and upcoming activities. He reported that staff is exploring a part-time, shared emergency management services model with the County Fire District. In preparation for spring break periods throughout April, increased patrols from the Sheriff’s Office and PalAmerican Security will be implemented, and residents are encouraged to submit patrol check requests when traveling.

He provided updates on the Victoria Dye Equestrian (VDE) and Little League agreements, noting continued progress with support from Council ad hoc committees and subcommittees of the Finance and Investment Committee and Parks and Recreation Commission. The VDE Conditional Use Permit and supplemental agreements, including the Westwind Riding Institute agreement, will be reviewed prior to Council consideration.

The City Manager also noted that Town Hall was opened as a cooling center during recent heat events, reinforcing the Town’s role as a resource for the community. He reported ongoing engagement with Town committees to support goal-setting efforts, including empowering committees to pursue priorities not included in the Council work plan. • Drive-Thru Shred Event
The Town will host a free Drive-Thru Shred Event on Saturday, March 21, 2026, from 8:00

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7 City Council Regular Meeting Recap
March 19, 2025
a.m. to 11:00 a.m. at Town Hall. Residents may securely dispose of confidential documents, with a limit of up to 15 standard file boxes or paper bags per household. Proof of residency is required.
• Hoppin’ Hounds Event
The Town will host the annual Hoppin’ Hounds Event on Saturday, April 4, 2026, from 9:00 a.m. to 10:30 a.m. at Westwind Community Barn. This family-friendly event features a festive biscuit hunt, golden egg surprises, and supports Pets In Need’s Palo Alto Animal Shelter. Dogs must be on leash, and advance registration is encouraged. • 24th Annual Pathways Run/Walk
The Pathways Run/Walk will take place on Saturday, May 9, 2026, beginning at Westwind Community Barn. The event includes a 5K and 10K run/walk, as well as a 1-mile fun run.

The 5K/10K begins at 9:00 a.m., followed by the 1-mile fun run at 10:30 a.m.

11. COUNCIL INITIATED ITEMS
A. Consideration of a Town of Los Altos Hills Poet Laureate Council Member Swan made a motion to create a Poet Laureate Ad Hoc Committee consisting of Council Member Swan, Council Member Tankha, and City Manager Cody Einfalt to develop an advertisement for the position. Council Member Tankha seconded the motion. APPROVED, VOTE 4-0

12. ADJOURN
Mayor Bhateja adjourned the meeting at 11:23 PM.

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1 City Council Regular Meeting Recap
April 17, 2025
Town of Los Altos Hills, California

CITY COUNCIL REGULAR MEETING RECAP
Thursday, April 16, 2026 – 5:30 P.M.

THE FOLLOWING INFORMATION IS A SUMMARY OF CITY COUNCIL ACTIONS FROM THE REGULAR CITY COUNCIL MEETING ON APRIL 16, 2026.

OFFICIAL MINUTES FROM THE MEETING WILL BE POSTED UPON ADOPTION BY

THE CITY COUNCIL

CITY COUNCIL MEETING RECAP
THURSDAY, APRIL 16, 2026
CALL TO ORDER (5:30 P.M.)
Mayor Bhateja called the meeting to order at 5:41 P.M.

ROLL CALL
Mayor Rajiv Bhateja, Vice Mayor Tyson, Council Member Stanley Mok, Council Member Linda Swan, and Council Member Tankha were present.

PUUBLIC COMMENT
There were no public comments.

CLOSED SESSION
A. CLOSED SESSION - Public Employment
(Pursuant to Government Code Section 54957)
Title: City Manager
B. CLOSED SESSION - Conference With Legal Counsel—Existing Litigation Pursuant to Government Code Section 54956.9(d)(1)Name of case: California Housing Defense Fund v. Town of Los Altos Hills (Case No. 26CV491087)
Mayor Bhateja adjourned to Closed Session.

REPORT OUT OF CLOSED SESSION
Attorney Mattas reported that the City Council met in Closed Session regarding labor negotiations for the City Manager position. During Closed Session, the Council appointed an ad hoc subcommittee to work with the recruiter on negotiation of the City Manager’s contract. The members of the ad hoc subcommittee are Councilmember Swan and Vice Mayor Tyson. This was the only reportable action.

ITEM 5G, ATTACHMENT 3

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2 City Council Regular Meeting Recap
April 17, 2025

CALL TO ORDER
Mayor Bhateja reconvened the meeting in Open Session for the Regular Meeting of the Los Altos Hills City Council at 6:01 p.m.

ROLL CALL
Mayor Rajiv Bhateja, Vice Mayor Tyson, Council Member Stanley Mok, Council Member Linda Swan, and Council Member Tankha were present.

PLEDGE OF ALLEGIANCE – Recited

1. AGENDA REVIEW
Community Development Director Jay Bradford requested that Item 5J, Resolution Authorizing the City Manager to Execute a Contract with Selectron Technologies, Inc. to Purchase an Automatic Notification and Online Inspection Scheduling Software for a Total Purchase Price of $100,000, be removed from the Consent Calendar and continued to a future meeting.

There was consensus among the Council to remove the item from the agenda.

2. PRESENTATIONS AND APPOINTMENTS
A. Appointment as the Los Altos Hills Poet Laureate
Council Member Swan made a motion to appoint William Manche as the 2026 Poet Laureate for the Town of Los Altos Hills. Mayor Bhateja seconded the motion. APPROVED, VOTE 5-0 B. Los Altos Hills County Fire District Discussion on Emergency Management, Shared Services, and Tree Hazard Assessment and Rebate Program
Los Altos Hills County Fire District General Manager J. Logan presented the 8th Monthly Fire District Report and outlined a proposed partnership between the Fire District and the Town to develop programs aligned with the Town’s priority work plan goals. Two key focus areas were identified: (1) enhancing emergency preparedness and resiliency through a shared emergency management services model, and (2) developing a tree hazard assessment and rebate program to address fire risk.

Logan reported that coordination is underway with Town staff, the Fire Department, and Santa Clara County to explore staffing, budgeting, and implementation strategies for these programs. He noted that both initiatives will require further analysis, including development of operational plans, timelines, and funding sources.

Logan requested Council feedback on these program areas and indicated that updates will be provided at future Council and Fire District Commission meetings as the programs are further developed.

C. Santa Clara Valley Transportation Authority – Regional Transportation Revenue Measure VTA’s Strategy and Transformation Director Sam Sargent provided an overview of the Regional Transportation Revenue Measure and VTA’s role. He explained that the proposed five-county measure would generate funding through a 1.5% sales tax over 14 years, with a portion allocated to Santa Clara County for transit-related investments.

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3 City Council Regular Meeting Recap
April 17, 2025
Sargent noted that funds would primarily support public transit operations and roadway improvements on transit-served corridors. He outlined VTA’s focus on three key outcomes:
increasing ridership, improving efficiency, and enhancing the customer experience, including safety and reliability.

He described potential investment categories, including maintaining core transit services, improving service frequency and efficiency, and advancing new technologies and infrastructure. Sargent emphasized that VTA is currently seeking input from local agencies and the public to help guide funding priorities and project types, with a final investment plan expected to be considered by the VTA Board in June.

3. PRESENTATIONS FROM THE FLOOR

1. Jim Waschura

2. John O’Connell

3. Michael Grady

4. INFORMATIONAL REPORTS (item provided solely for informational purposes only) A. Treasurer’s Report - This item is provided solely for informational purposes.

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

5. CONSENT CALENDAR
Council Member Tankha made a motion to approve the Consent Calendar, removing ITEM 5J.

Council Member Swan seconded the motion. APPROVED, VOTE 5-0 A. Approval of the City Council Special Meeting Minutes March 19, 2026 APPROVED, VOTE 5-0 B. Approval of the City Council Regular Meeting Minutes March 19, 2026 APPROVED, VOTE 5-0 C. Approval of the City Council Special Meeting Minutes March 30, 2026 APPROVED, VOTE 5-0 D. Consideration of Adding a Regular City Council Meeting on Thursday, May 14, 2026, at 6:00 p.m., and Canceling the Scheduled Regular City Council Meeting on Thursday, May 21, 2026, at 6 p.m.

APPROVED, VOTE 5-0
E. Resolution Approving the Plans and Specifications for 2026 Sanitary Sewer Repair and Replacement Project, and Authorizing Staff to Advertise the Project for a Formal Bid APPROVED, VOTE 5-0
F. Resolution Authorizing Staff to Submit 2026 Valley Water Standard Grants Program Applications for Byrne Preserve Restoration and Heritage House Native Garden APPROVED, VOTE 5-0 G. Resolution Adopting the 2026 Sewer System Management Plan Update APPROVED, VOTE 5-0 H. Resolution Authorizing the City Manager to Auction or Donate the 2003 Dodge Dakota and 2008 Ford Ranger, and to Procure Two Electric Vehicles for Maintenance Services in an Amount Not to

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4 City Council Regular Meeting Recap
April 17, 2025
Exceed $190,000, Funded Through FY26 and FY27 Vehicle and Equipment Replacement Capital Projects APPROVED, VOTE 5-0
I. Waive Reading and Adoption of an Ordinance Amending Title 10, Chapter 1 of the Municipal Code Regarding the Town's Accessory Dwelling Unit Regulations APPROVED, VOTE 5-0 J. Resolution Authorizing the City Manager to Execute a Contract with Selectron Technologies, Inc. to Purchase an Automatic Notification and Online Inspection Scheduling Software for a Total Purchase Price of $100,000 (Staff: J. Bradford)
This item was removed from consideration on this agenda.

K. Review and Accept the 2025 General Plan Annual Progress Report APPROVED, VOTE 5-0 L. Review and Accept the 2025 Housing Element Annual Progress Report APPROVED, VOTE 5-0 M. Notification of Fast Track Approval at 26918 Dezahara Way - File # SD25-0066 - Lands of Yuen APPROVED, VOTE 5-0

6. ONGOING BUSINESS
A. Discussion and Direction on Housing Element Implementation Standing Committee Charter, Membership, Meeting Logistics, and Reporting Structure
Public Comments:

1. Jim Waschura

2. John O’Connell

3. Ann Duwe

4. Cheryl Evans
Mayor Bhateja made a motion to approve the Amended Resolution to “Establishing Standing Committees and Adopting General and Special Rules Pertaining Thereto. Council Member Tankha seconded the motion. APPROVED, VOTE 5-0
B. Consideration and Direction on Next Steps Related to Draft Initiatives Measure Regarding the “Green Sheets”
Public Comments:

1. John O’Connell

2. Allan Epstein

3. Eric Bredo

4. Jim Waschura

5. Carol Gottlieb

6. John Swan

7. Cheryl Evans

8. Kjell Karlsson

9. Michael Grady

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5 City Council Regular Meeting Recap
April 17, 2025
Council Member Swan made a motion to move the Draft Initiative Measure Regarding the “Green Sheets” forward to the next meeting on May 14, 2026. Council Member Mok seconded the motion.

FAILED, VOTE 2-3
Mayor Bhateja made a motion to pursue a ballot initiative that would eliminate or prevent new industrial, large-scale commercial, or retail land uses, except on Town-owned property, with the inclusion of provisions related to animals. Council Member Swan seconded the motion.

APPROVED, VOTE 3-2

7. NEW BUSINESS
A. Discussion of Notification Methods and Outreach to Residents Regarding Town Projects and Meetings
Public Comments:

1. Jim Waschura
The City Council provided direction to staff.

B. Fire Hazard Severity Zone (FHSZ) Designations and Enforcement Framework for Mixed FHSZ Parcels
Public Comments:

1. Allan Epstein

2. Jim Waschura

3. Eric Evans
There was no action taken on this item by the City Council.

C. Discussion of Inclusionary Housing, Residential Impact Fee, and Related Policy Direction Under Housing Element Programs A-6 and E-11
Mayor Bhateja made a motion to approve Inclusionary Housing, Residential Impact Fee, and Related Policy Direction Under Housing Element Programs A-6 and E-11, including: (1) Rental Inclusionary:

Include extremely low-income to low-income requirements and (2) Ownership Inclusionary: Include low-income and moderate-income requirements. Vice Mayor Tyson seconded the motion.

APPROVED, VOTE 5-0
D. Resolution Approving a Hybrid Public Meeting Disruption Policy Pursuant to Senate Bill 707 and Allowing for Committee Remote Participation Consistent with City Council Practices Mayor Bhateja made a motion to approve the Resolution Approving a Hybrid Public Meeting Disruption Policy Pursuant to Senate Bill 707 and Allowing for Committee Remote Participation Consistent with City Council Practices. Council Member Mok seconded the motion. APPROVED, VOTE 5-0

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6 City Council Regular Meeting Recap
April 17, 2025

8. PUBLIC HEARINGS
A. Waiver of Reading and Introduction of an Ordinance Amending Title 2, Chapter 1 "Councilmembers Salaries" of the Los Altos Hills Municipal Code to Increase the Councilmembers' Salaries to Nine Hundred Fifty Dollars a Month Public Comments:

1. John O’Connell

2. Jim Waschura

3. Kjell Karlsson

4. Allan Epstein
Vice Mayor Tyson made a motion to Waive the Reading and Introduce an Ordinance Amending Title 2, Chapter 1 "Councilmembers Salaries" of the Los Altos Hills Municipal Code to Increase the Councilmembers' Salaries to Nine Hundred Fifty Dollars a Month beginning with the seating of City Council in December 2028. Council Member Mok seconded the motion. APPROVED, VOTE 3-2 B. Waiver of Reading and Introduction of an Ordinance Amending Title 10, Chapter 3 of the Municipal Code to Adopt Reasonable Accommodations Procedures for Land Use and Zoning Decisions Consistent with Housing Element Program B-9
Public Comments:

1. Jim Waschura

2. John O’Connell

3. Allan Epstein
Council Member Swan made a motion to Waive the Reading and Introduce an Ordinance Amending Title 10, Chapter 3 of the Municipal Code to Adopt Reasonable Accommodations Procedures for Land Use and Zoning Decisions Consistent with Housing Element Program B-9 Adding a required check-in to verify if accommodation is still required every 3 years. Council Member Mok seconded the motion. APPROVED, VOTE 5-0

9. REPORTS FROM COMMITTEES, SUB-COMMITTEES, AND COUNCILMEMBERS ON

OUTSIDE AGENCIES
A. Report Out for Community Survey Ad Hoc Committee
B. Report Out for Mayoral Rotation Ad Hoc Committee
Public Comments:

1. Jim Waschura

2. Allan Epstein

3. John O’Connell

4. Kjell Karlsson
Council Member Swan made a motion to approve Selection Policy of Vice Mayor and Mayor as presented. Council Member Tyson seconded the motion. APPROVED, VOTE 4-1

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7 City Council Regular Meeting Recap
April 17, 2025

10. STAFF REPORTS
A. City Attorney Steve Mattas had no report.

B. City Clerk Arika Miller provided an update on the records management project, noting that approximately 300 boxes have been relocated from the Corporation Yard to a secure, fireproof and waterproof storage facility. She shared progress photos and commended the maintenance crew and consultant for their outstanding work, noting their efforts were instrumental in the successful execution of the project.

C. Planning Director Jay Bradford provided an update on the upcoming April 22 Planning Commission meeting and the April 29 special City Council meeting. He also reported that interviews for the Assistant Planner position are scheduled for May.

D. Finance Director Thomas Leung reported that the Accounting staff completed the March bank reconciliation using new software, reducing processing time by over 90 percent. Staff are continuing to refine processes to streamline reconciliations and reporting.

A joint meeting of the City Council and the Finance and Investment Committee is scheduled for May 15 to review the FY 2025–26 Proposed Budget. A preliminary budget will be presented to the Committee on May 4, with an additional meeting tentatively scheduled for May 11. Staff also met 1:1 with Council over the past two weeks to review projections and gather input on priorities for the budget.

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8 City Council Regular Meeting Recap
April 17, 2025
F. City Manager Cody Einfalt provided an update on several ongoing initiatives and projects. He reported that approximately 50 applications were received for the Summer Internship Program.

He also discussed emergency management efforts, noting exploration of a part-time shared services model with the County Fire District.

He further noted that the Environmental Programs and Resources Committee selected Genesis to conduct the Town’s sound study, which is expected to be completed by the end of the fiscal year.

Lastly, Einfalt highlighted upcoming events, including the 24th Annual Los Altos Hills Pathways Run/Walk scheduled for May 9 at 9:00 a.m.

12. ADJOURN
Mayor Bhateja adjourned the meeting at 11:58 PM.

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ITEM 5H
TOWN OF LOS ALTOS HILLS May 14, 2026
Staff Report to City Council
_____________________________________________________________________________ SUBJECT: WAIVE SECOND READING AND ADOPT AN ORDINANCE AMENDING TITLE 10 (ZONING AND SITE DEVELOPMENT) OF THE LOS ALTOS

HILLS MUNICIPAL CODE TO ESTABLISH REASONABLE

ACCOMMODATION PROCEDURES FOR LAND USE AND ZONING
DECISIONS CONSISTENT WITH HOUSING ELEMENT PROGRAM B-9
FROM: Behrouz Amirbadvy, Management Analyst
APPROVED: Jay Bradford, Community Development Director
_____________________________________________________________________________ RECOMMENDATION:

Staff recommends that the City Council waive the second reading and adopt an ordinance amending Title 10 of the Municipal Code to codify a reasonable accommodation procedure for land use and zoning decisions, consistent with Housing Element Program B‑9.

BACKGROUND:

The purpose of the reasonable accommodation procedure is to ensure that individuals with disabilities have equal access to housing opportunities in the Town of Los Altos Hills by establishing a clear, objective, and administrative process for requesting exceptions to land use and zoning rules.

Federal and state fair housing laws require local jurisdictions to grant reasonable accommodations when necessary to afford persons with disabilities equal opportunity to use and enjoy housing.

These include the Federal Fair Housing Act, the ADA, Section 504, and the California Fair Employment and Housing Act.

The Housing Element requires the Town to codify its reasonable accommodation procedure. The Planning Commission reviewed the ordinance on April 2 and recommended approval with modifications.

At the April 16, 2026, City Council meeting, the Council introduced the ordinance (first reading).

The updated ordinance presented today incorporates City Council direction provided at that meeting.

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UPDATED COUNCIL DIRECTION – CHECK-IN REQUIREMENTS
• The three‑year check‑in replaces the annual check‑in previously recommended by the Planning Commission and included in the first‑reading version of the ordinance. • Staff, not the resident, will be responsible for initiating the three‑year verification. • If the Town does not receive a response to its verification request, the non‑response will constitute grounds for rescission of the approved accommodation. • These requirements replace the annual check‑in language contained in the first‑reading staff report and attachments.

DISCUSSION:

The ordinance establishes a streamlined, ministerial process administered by the Community Development Director to review requests and apply the objective findings contained in the procedure.

The updated ordinance continues to include:
• Definitions of disability and reasonable accommodation • Application procedures and decision timelines
• Administrative review by the Community Development Director • Appeal procedures
• Objective evaluation matrix
• Findings for approval
• Conditions of approval
• Confidentiality provisions
• Relationship to other permit requirements
The ordinance has been updated to implement Council’s direction:

1. Three‑year staff‑initiated check‑in has been incorporated into the ordinance text.

2. Elimination of the annual check‑in previously recommended by the Planning Commission.

3. Explicit authority to rescind accommodations if the resident does not respond to the Town’s verification request.

These revisions also align with the ordinance summary prepared for adoption, which identifies a three‑year check‑in requirement administered by the Town.

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ENVIRONMENTAL REVIEW:

The ordinance is exempt from CEQA under Guidelines Section 15061(b)(3), as the adoption of administrative procedures has no potential to cause a physical environmental impact. The ordinance does not approve development, alter development standards, or grant entitlements.

FISCAL IMPACT:

There is a limited administrative fiscal impact associated with adopting the ordinance.

NEXT STEPS:

If adopted, the ordinance will take effect 30 days following adoption.

ATTACHMENTS:

1. Draft Ordinance

2. Ordinance Summary

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ITEM 5H Attachment 1
ORDINANCE NO. XXX
AN ORDINANCE OF THE TOWN OF LOS ALTOS HILLS AMENDING TITLE 10 (ZONING AND SITE DEVELOPMENT) OF THE LOS ALTOS HILLS MUNICIPAL

CODE TO ADOPT REASONABLE ACCOMMODATION PROCEDURES FOR LAND

USE AND ZONING DECISIONS CONSISTENT WITH HOUSING ELEMENT PROGRAM B-9
WHEREAS, California Housing Element Law (Gov. Code §65580 et seq.), specifically Government Code section 65583(c)(3), requires housing elements to address, and when appropriate and legally possible, to remove constraints to housing for those with disabilities, including providing reasonable accommodations for housing designed for, intended for occupancy by, or with supportive services for persons with disabilities; and
WHEREAS, both federal and state law (i.e. 42 USC §3604(f)(3)(B); Gov. Code §12927(c)(1)) impose upon cities an affirmative duty to make “reasonable accommodations” in their zoning and land use laws when the accommodation is necessary to give persons with disabilities an equal opportunity to use and enjoy a home. The federal Fair Housing Act (FHA) and California Fair Employment and Housing Act (FEHA) forbid land use actions that make housing “unavailable” or discriminate against certain protected classes. (42 USC §3604; Gov. Code §12955(l).). The Fair Housing A makes it unlawful to “discriminate against any person in the terms, conditions, or privileges of sale or rental of a dwelling, or in the provision of services or facilities in connection with such dwelling, because of a handicap.” (42 U.S.C. § 3604(f)(2).); and WHEREAS, the Town of Los Altos Hills (“Town”) state-certified 2023-2031 Housing Element contains several goals, policies and programs to ensure accessibility, increase housing mobility, and provide for special needs housing. Among those, Program B-9 provides for the Town to adopt a clear and objective procedure for reasonable accommodation requests for land use and zoning decisions and procedures to ensure that housing for people with disabilities is attainable without discretionary review; and
WHEREAS, this Reasonable Accommodations procedure will include procedures and findings to ensure certainty and provide for clear decision-making standards for the process; and WHEREAS, as evaluated in the Housing Element, the Town conducted review of its zoning code, building regulations, and permit handling process; this review did not identify any regulations that would prohibit or impair any reasonable accommodation request. The Town also currently has administrative processes to allow for reasonable accommodation requests consistent with federal and state fair housing laws, and with the recent adoption of new multi-family zoning districts, desires to codify a reasonable accommodations procedure as set forth in Program B-9; and WHEREAS, the Town has prepared this Ordinance amending Title 10 of the Los Altos Hills Municipal Code to codify a Reasonable Accommodations procedure pertaining to zoning and land use decisions to implement Program B-9 (the “Ordinance”); and WHEREAS, under the California Environmental Quality Act (“CEQA”), CEQA only applies to projects which have the potential for causing a significant effect on the environment; and

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Ordinance No.____ Page 2
WHEREAS, on April 2, 2026, the Los Altos Hills Planning Commission held a public hearing to consider a recommendation to the Los Altos Hills City Council regarding the proposed Ordinance. At the public hearing, the Planning Commission reviewed and carefully considered all testimony, comments, and evidence presented in the record and during the hearing; and WHEREAS, at its April 2, 2026, meeting, the Planning Commission by Resolution No. 09- 26 recommended the City Council adopt the Reasonable Accommodation Ordinance; and WHEREAS, on April 16, 2026, the Los Altos Hills City Council held a public hearing to consider proposed Ordinance and the Planning Commission recommendation. At the public hearing, the City Council reviewed and carefully considered the proposed Ordinance, and all related testimony and evidence presented in the record and during the hearing. All interested parties were provided with an opportunity to participate and be heard.

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

SECTION I. FINDINGS.

Based on the entirety of the record before it, which includes, without limitation, the California Environmental Quality Act, Public Resources Code §21000, et seq. and the CEQA Guidelines, 14 California Code of Regulations §15000, et seq. (collectively, “CEQA”); the Los Altos Hills General Plan and Housing Element; the Los Altos Hills Municipal Code; the SB 131 Statutory Exemption Report dated September 2025 prepared by Michael Baker International; all reports, minutes, and public testimony submitted as part of the Planning Commission’s April 2, 2026 public hearing and the City Council’s April 16, 2026 public hearing, and any and all other evidence (within the meaning of Public Resources Code §21080(e) and §21082.2), the City Council of the Town of Los Altos Hills hereby finds as follows:

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

2. The documents and other material constituting the record for these proceedings are located at the Community Development Department for the Town of Los Altos Hills, 26379 Fremont Road, Los Altos Hills, and in the custody of the Community Development Director.

3. This Ordinance is exempt from CEQA pursuant CEQA Guidelines section 15061(b)(3) as CEQA only applies to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. This Ordinance establishes a procedure for applicants to request reasonable accommodations from zoning and land use regulations, and does not approve any projects, alter any development standards, or grant any entitlements. Each project will be subject to independent environmental evaluation based on the type of work proposed. As such, this Ordinance is a regulatory act taken by the Town and does not physically change the environment. Therefore, it is exempt from CEQA as it does not have the potential for causing a significant effect on the environment.

4. This Ordinance was prepared and adopted in accordance with the requirements of Planning

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Ordinance No.____ Page 3
and Zoning Law (Government Code, sections 65853-65860) and meets all of the requirements thereunder.

5. This Ordinance is consistent with and supports the Los Altos Hills General Plan by implementing housing goals, programs and strategies in the 2023-2031 Housing Element, specifically Program B-9. This Ordinance is consistent with Program B-9, and supports the Town’s goals, policies and programs to expand accessibility, support special needs housing, encourage housing mobility, and provide housing opportunities to the disabled population.

It also allows the Town to comply with state Housing Element and Housing Laws in furtherance of its Housing Element.

SECTION II. AMENDMENT.

1. Amendments to Title 10 “Zoning and Site Development” of the Municipal Code.

A new Chapter 3, “Administration and Procedures” and a new Article 1, “Reasonable Accommodation”, are hereby added to Title 10 of the Municipal Code to read as follows. Other chapters, articles, sections, subsections, paragraphs and texts in Title 10 are not amended and shall continue in full force and effect.

Chapter 3 Administration and Procedures
Article 1 Reasonable Accommodation
§ 10-3.101 Purpose and Intent
§ 10-3.102 Applicability
§ 10-3.103 Procedures
§ 10-3.104 Required Findings
§ 10-3.105 Conditions of Approval
§ 10-3.106 Appeals; Expiration, Extensions, and Modifications § 10-3.107 Fees
§ 10-3.101 Purpose and Intent.

The purpose of this Article is to provide a procedure for making reasonable accommodations in land use and zoning regulations when necessary to afford individuals with disabilities equal opportunity to use and enjoy housing consistent with the Federal Fair Housing Act, the Americans with Disabilities Act, and the California Fair Employment and Housing Act. It is the intent of the Town of Los Altos Hills pursuant to the fair housing laws to provide individuals with disabilities reasonable accommodation(s) in rules, policies, practices and procedures to ensure equal access to housing and facilitate the development of housing for individuals with disabilities. § 10-3.102 Applicability.

This article applies to requests for reasonable accommodation in zoning and land use regulations, policies, procedures, development standards, or operational requirements related to housing.

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Ordinance No.____ Page 4
§ 10-3.103 Procedures.
(a) Notice of Procedures. A notice shall be displayed at the Community Development Department advising the public of the availability of a reasonable accommodation procedure for eligible individuals in accordance with this article. The Community Development Department shall maintain an application form and adopt an administrative procedure/policy to implement the requirements of this article. (b) Application. An application for reasonable accommodation shall be filed with the Community Development Department using the application form maintained by the Department. The application shall provide all of the information required on said form and contained in the administrative procedure/policy adopted by the Department. (c) Review and Approval Authority. The Community Development Director shall review and act upon requests for reasonable accommodation.
(1) An application for reasonable accommodation pursuant to this article will be reviewed by the Community Development Director or designee for consideration. (2) The Community Development Director shall issue a written decision approving or denying the application within thirty (30) days from receiving a complete application containing all the information required in subsection (b) above. (d) Decision. The Community Development Director shall issue a written decision within thirty (30) days from receiving a complete application containing all the information required in subsection (b) above, which decision may grant the reasonable accommodation application, grant with modifications, or deny the application.
(1) All written decisions shall explain in detail the basis of the decision consistent with this article and shall give notice of the right to appeal and to request reasonable accommodation in the appeals process.
(2) While any request for reasonable accommodation is pending, all laws and regulations otherwise applicable to the property that is the subject of the request shall remain in full force and effect.
(e) Review with Other Discretionary Permits or Approvals. Reasonable accommodation applications shall be reviewed and decided independently of other discretionary approvals and shall not be considered or reconsidered as part of those approvals but shall be regarded as an independent entitlement. A reasonable accommodation application being granted does not relieve the applicant of its obligation to obtain all other applicable zoning, land use, and building approvals.
(f) Three-Year Check-In Requirement. Applicants and property owners who have been granted accommodations shall be required to respond to three-year staff-initiated check-ins with the Town to determine whether the grounds for granting the requested accommodations pursuant to this article are still present. Staff would hold explicit authority to rescind accommodations if the resident does not respond to the Town’s verification request. (g)

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Ordinance No.____ Page 5
(h) Changes in Circumstances. The applicant and property owner shall notify the Town when the need for accommodation granted herein is no longer present due to changes in occupancy or other relevant changes in circumstance, within 60 days of such change occurring.
§ 10-3.104 Required Findings
(a) The Community Development Director shall approve a reasonable accommodation application if all of the following findings are made:
(1) The applicant has, or serves as the authorized representative of an individual with, a disability as defined by applicable state or federal fair housing laws; (2) The housing or other property which is the subject of the request for reasonable accommodation will be used by an individual or organization entitled to protection under applicable state or federal fair housing laws;
(3) The request for accommodation is necessary to make specific housing available to an individual protected under applicable state or federal fair housing laws or to afford equal opportunity to use and enjoy a dwelling for such individual; (4) The request for accommodation is reasonable and would not have a specific, adverse impact upon the public health and safety;
(5) The request for accommodation does not impose an undue financial and administrative burden on the Town; and
(6) The request for accommodation does not fundamentally alter the Town’s zoning and land use regulations, policies, procedures, development standards, or operational requirements related to housing.
§ 10-3.105 Conditions of Approval.

The Community Development Director may impose conditions of approval to provide for rescission or automatic expiration based on a change of occupancy or other relevant change in circumstance. § 10-3.106 Appeals.

The decision of the Community Development Director may be appealed in accordance with Section 10-1.1002.
§ 10-3.107 Fees.

The Town shall not charge a fee for the processing or review of a reasonable accommodation request. Applicants shall be responsible for applicable permit fees and costs, provided such fees and costs are required for the applicable permit application at issue and would apply irrespective of the reasonable accommodation request.

SECTION III. SEVERABILITY.

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Ordinance No.____ Page 6
If any provision of this Ordinance or the application thereof to any person or circumstance is held invalid or unconstitutional the remainder of this Ordinance, including the application of such part or provision to other persons or circumstances shall not be affected thereby and shall continue in full force and effect. To this end, provisions of this Ordinance are severable. The City Council of the Town of Los Altos Hills hereby declares that it would have passed each section, subsection, subdivision, paragraph, sentence, clause, or phrase hereof irrespective of the fact that any one or more sections, subsections, subdivisions, paragraphs, sentences, clauses, or phrases be held unconstitutional, invalid, or unenforceable.

SECTION IV. EFFECTIVE DATE AND PUBLICATION.

INTRODUCED:

PASSED:

AYES:

NOES:

ABSTENTIONS:

ABSENT:

BY: _________________________
Mayor
ATTEST:
_________________________
City Clerk
APPROVED AS TO FORM:
_________________________
City Attorney

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ITEM 5H Attachment 2

TOWN OF LOS ALTOS HILLS
SUMMARY OF AN ORDINANCE AMENDING TITLE 10 (ZONING AND SITE DEVELOPMENT) OF THE TOWN OF LOS ALTOS HILLS’ MUNICIPAL CODE TO

ADOPT REASONABLE ACCOMMODATION PROCEDURES FOR LAND USE AND

ZONING DECISIONS
NOTICE IS HEREBY GIVEN the Town of Los Altos Hills’ City Council has introduced, on April 16, 2026, and proposes to adopt, on May 14, 2026, an Ordinance to amend Title 10 of the Town of Los Altos Hills’ Municipal Code to adopt regulations relating to reasonable accommodation procedures. If adopted, the Ordinance would establish certain criteria and objective standards for the Town to receive, review and decide on reasonable accommodation requests for land use and zoning decisions for applicants with disabilities. The Ordinance establishes the application process, reviewing and decision-making findings, and the criteria for conditions of approval. The Ordinance, if required, would also require three-year check-in and follow up by the Town with applicants that have received reasonable accommodations to ensure the circumstances necessitating the accommodation are still present. The Ordinance is prepared in compliance with federal and state fair housing laws as well as Program B-10 of the Housing Element.

Adoption of the proposed Ordinance is exempt from CEQA pursuant CEQA Guidelines section 15061(b)(3) as CEQA only applies to projects which have the potential for causing a significant effect on the environment. This Ordinance establishes a procedure for applicants to request reasonable accommodations from zoning and land use regulations, and does not approve any projects, alter any development standards, or grant any entitlements. Each project will be subject to independent environmental evaluation based on the type of work proposed. As such, this Ordinance is a regulatory act taken by the Town and does not physically change the environment.

This Ordinance Summary was prepared pursuant to Government Code Section 36933. The full text of the ordinance is available from the Town’s City Clerk’s Office at 26379 Fremont Road, Los Altos Hills, CA, or on the Town’s website at www.losaltoshills.ca.gov.

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CITY CLERK'S CERTIFICATION

1. PRIOR TO ADOPTION.

I, ARIKA MILLER, City Clerk of the Town of Los Altos Hills, CERTIFY that on the _____ day of ______________, 2026, at least five days prior to the City Council meeting set for the _____ day of ______________, 2026, when this Ordinance was scheduled for adoption (1) the Summary was published and circulated in the Town, and (2) a certified copy of the full text of this Ordinance was posted in my office, all in accordance with Government Code Section 36933.

DATE: ___________________
_______________________________
Arika Miller, City Clerk

2. AFTER ADOPTION.

I, ARIKA MILLER, City Clerk of the Town of Los Altos Hills, CERTIFY that this Ordinance was adopted on the _____ day of ______________, 2026. _____ days thereafter (1) the Summary of this Ordinance, a copy of which is attached, was published in the “Los Altos Town Crier,” a newspaper of general circulation published and circulated in the Town, and (2) a certified copy of this Ordinance, with the names of those City Council members voting for or against this Ordinance, or otherwise voting, was posted in my office, all in accordance with Government Code Section 36933.

DATE: ____________________
_________________________________
Arika Miller, City Clerk

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3. CERTIFICATION AND POSTING PRIOR TO ADOPTION
A certified copy of the full text of this Ordinance is posted in the Office of the City Clerk, Town Hall, 26379 Fremont Road, Los Altos Hills, California. The Ordinance was read for the first time on the ______ day of _________________, 2026, and is scheduled for second reading and adoption on the _____ day of ______________, 2026.

DATE: ___________________ _______________________________ Arika Miller, City Clerk

4. CERTIFICATION AND POSTING AFTER ADOPTION
This Ordinance was adopted on the _____ day of ______________, 2026, and a certified copy of the full text, together with the names of the City Council members voting for and against the Ordinance, or otherwise voting, is posted in the Office of the City Clerk.

The vote was recorded as follows:

FOR: Councilmembers
AGAINST:

ABSTAIN:

ABSENT:

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TOWN OF LOS ALTOS HILLS May 14, 2026
Staff Report to the City Council
SUBJECT: WAIVE READING AND ADOPT AN ORDINANCE AMENDING
ARTICLE 16 (MULTIFAMILY DEVELOPMENT STANDARDS) OF
CHAPTER 1 (ZONING) OF TITLE 10 (ZONING AND SITE

DEVELOPMENT) OF THE LOS ALTOS HILLS MUNICIPAL CODE TO

REVISE MULTIFAMILY DEVELOPMENT STANDARDS
FROM: Jay Bradford, Community Development Director
APPROVED: Cody Einfalt, Acting City Manager
RECOMMENDATION:

That the City Council waive reading and adopt an ordinance amending Article 16 (Multifamily Development Standards) of Chapter 1 (Zoning) of Title 10 (Zoning and Site Development) of the Los Altos Hills Municipal Code to revise multifamily development standards (see Attachments 1 and 2).

BACKGROUND:

On February 10, 2026, the California Department of Housing and Community Development (HCD) confirmed that the Town’s Housing Element remains certified and that the adopted rezoning program complies with State Housing Element Law. HCD’s correspondence also identified several multifamily development standards that could constrain housing production and requested that the Town address these standards within four months. Following receipt of the HCD letter, staff coordinated with HCD through meetings held on March 12, April 6, and April 23, 2026, to review draft amendments and confirm that the proposed revisions would satisfy State requirements while maintaining objective development standards. Town staff prepared an Ordinance making amendments to Article 16 Multi-Family Development Standards (“Ordinance”) and corresponding Land Use Element amendments. The proposed amendments respond directly to HCD’s February 10, 2026, correspondence and focus on three primary areas: minimum site size, setbacks, and unit size standards.

The Planning Commission reviewed the proposed Ordinance and LUE amendments at special meetings on April 13 and April 22, 2026, and recommended City Council approval. The City Council subsequently considered the item at its April 29, 2026, special meeting; at the meeting, the Council adopted the LUE amendments by resolution and introduced the Ordinance inclusive of an errata sheet. The Council also gave direction regarding potential additional discussions with HCD for further modifications to the proposed standards.

The introduced Ordinance and Exhibit A containing the amended multi-family regulations are included in Attachments 1 and 2.

DISCUSSION:

At the April 29th meeting, the Council introduced the Ordinance which makes the following modifications to multi-family development standards (See Attachment 2):

ITEM 5I

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• Setbacks established at 35 feet front, 10 feet side, and 20 feet rear adjacent to multifamily zones or nonresidential lots. Setbacks from single-family lots in R-A zone at 35 feet. • Floor area ratio (FAR) of 0.45 for habitable floor area per acre of contiguous buildable area, • A minimum unit size of 350 square feet and a maximum size of 1,800 square feet, • A minimum lot size of 0.5 gross acres
• Additional clarification that FAR required by state law under Government Code section 65913.11 for projects between 3-10 units would apply (included via errata).

With introduction of the Ordinance, the Council gave direction for Town staff and consultants to approach HCD again to discuss the idea of increasing the minimum lot size of 0.75 gross acres instead of the 0.5 gross acres, and whether that increase would be acceptable to HCD.

Town staff and consultants made multiple attempts to schedule a meeting with HCD, but HCD did not respond to or accept the meeting requests. HCD did, however, specifically communicated to the Town’s consultant after the April 29 Council meeting took place that HCD would support only a 0.5-gross-acre minimum site size. Accordingly, staff recommends the Council adopt the Ordinance as introduced on April 29, 2026, inclusive of the 0.5-acre minimum site size.

Public comments received
The Town received a comment letter from the housing advocate organization CalHDF approximately six minutes before the start of the April 29, 2026 meeting. The comment letter claims, in summary, that the FAR standard would impeded multi-family development and that the proposed Ordinance and LUE Amendments are not consistent with state housing element law requirements. A response letter to the CalHDF comment prepared by Town staff and consultants has been included as Attachment 3.

ENVIRONMENTAL REVIEW:

The proposed amendments are exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines § 15061(b)(3) and Public Resources Code §§ 21080.17 and 21080.27. These amendments support the multifamily rezoning required by state law and the Town’s Housing Element, do not approve any projects or grant any entitlements, and are land use policy/regulatory actions taken by the Town that have no potential to create significant environmental impacts.

FISCAL IMPACT:

There is no immediate fiscal impact associated with the proposed amendments. Future development facilitated by these standards may contribute to permit and development-related revenues and support implementation of inclusionary housing programs.

ATTACHMENTS

1. Ordinance amending Article 16 (Multifamily Development Standards) of Chapter 2 (Zoning) of Title 10 (Zoning and Site Development) of the Los Altos Hills Municipal Code

2. Exhibit A to Ordinance Multifamily Development Standards Amendments (Article 16)

3. Response to CalHDF comment letter.

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ORDINANCE NO. XXX
AN ORDINANCE OF THE TOWN OF LOS ALTOS HILLS AMENDING TITLE 10 (ZONING AND SITE DEVELOPMENT) OF THE LOS ALTOS HILLS MUNICIPAL

CODE TO AMEND CERTAIN STANDARDS IN THE MULTI-FAMILY ZONES WHEREAS, a severe housing crisis exists in the State of California with the demand for housing outstripping supply; and
WHEREAS, the adopted and state-certified 2023-2031 Housing Element (“Housing Element”) of the Town of Los Altos Hills (“Town”) contains numerous goals, policies and programs to meet its RHNA obligations, including an inventory of sites in the Town suitable to accommodate housing units at various income levels under RHNA, programs to rezone such sites to multi-family zoning districts to accommodate RHNA units and to ensure that parcels would be developed at appropriate minimum densities, and to streamline residential development projects and promote housing opportunities and mobility; and
WHEREAS, on December 9, 2025, the City Council of the Town of Los Altos Hills (“City Council”) adopted an ordinance creating new Multi-Family zone and Multi-Family Overlay zones and associated development standards. The ordinance facilitates multi-family development to accommodate a portion of its RHNA obligations inclusive of a no-net-loss buffer pursuant to Government Code section 65583, in accordance with Housing Element Programs A-1, A-4, and A-5; and WHEREAS, on December 9, 2025, the City Council also concurrently adopted certain amendments to its Land Use element and Housing Element to provide further clarity and consistency across land use and zoning documents while maintaining the rezoning approach and projected unit yields already identified in the 2023-2031 Housing Element, with the Housing Element amendment effective contingent upon HCD certification ; and
WHEREAS, the State Housing and Community Development Department (“HCD”) has reviewed the Town’s multi-family rezoning ordinance and on February 10, 2026 issued a letter to the Town providing further direction to revise certain development standards in order to expand multi-family development opportunities and to avoid potential constraints. In its letter, HCD specifically affirms that the Town’s Housing Element, as amended on December 9, 2025, remains certified by the Department and is in substantial compliance with state Housing Element law; and WHEREAS, the Town has prepared an ordinance amending certain development standards including average unit size, development site size, and setbacks (the “Ordinance”); and WHEREAS, under the California Environmental Quality Act (“CEQA”), a rezoning that implements the schedule of actions contained in an approved housing element pursuant to subdivision (c) of Section 65583 of the Government Code is statutorily exempt from the requirements of CEQA pursuant to Public Resources Code section 21080.085, unless such rezoning would allow for would allow for the construction of a distribution center or for oil and gas infrastructure or would allow construction to occur within the boundaries of any “natural and protected lands” as defined pursuant to Public Resources Code section 21067.5; and
ITEM 5I ATTACHMENT 1

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Ordinance No.____ Page 2
WHEREAS, CEQA Guidelines section 15061(b)(3) provides that CEQA does not apply to activities that would not have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA; and WHEREAS, on April 2, 2026, the Los Altos Hills Planning Commission held a duly noticed public hearing, which was continued to April 13, 2026, to consider a recommendation to the City Council regarding the proposed Ordinance. At the public hearing, the Planning Commission reviewed and carefully considered the proposed Ordinance and related legislative actions, and all related testimony and evidence presented in the record and during the hearing; and WHEREAS, at its April 13, 2026, meeting, the Planning Commission by Resolution No. XXX recommended the City Council adopt the Ordinance; and
WHEREAS, on April 22, 2026, the Planning Commission held an additional public meeting to consider additional modifications to its recommendation on April 13, 2026 regarding unit size and unit mixes standards for multi-family development; the Planning Commission received public testimony and thereafter transmitted additional modifications made at that meeting to the City Council for consideration; and
WHEREAS, on April 29, 2026, the City Council held a duly noticed public hearing to consider the proposed Ordinance. At the public hearing, the City Council reviewed and carefully considered the proposed Ordinance, and all related testimony and evidence presented in the record and during the hearing.

All interested parties were provided with an opportunity to participate and be heard; and WHEREAS, based on the entirety of the record before it, the City Council desires to adopt the proposed Ordinance in furtherance of its goals to facilitate multi-family development and encourage housing production as set forth in the 2023-2031 Housing Element.

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

SECTION I. FINDINGS.

Based on the entirety of the record before it, which includes, without limitation, the California Environmental Quality Act, Public Resources Code §21000, et seq. and the CEQA Guidelines, 14 California Code of Regulations §15000, et seq. (collectively, “CEQA”); the Los Altos Hills General Plan and Housing Element; the Los Altos Hills Municipal Code; all reports, minutes, and public testimony submitted as part of the Planning Commission’s duly noticed April 2 and April 13, 2026 public hearings, the Planning Commission’s April 22, 2026 public meeting, and the City Council’s duly noticed April 29, 2026 public hearing, and any and all other evidence (within the meaning of Public Resources Code §21080(e) and §21082.2), the City Council of the Town of Los Altos Hills hereby finds as follows:

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

3. Exhibits A attached to this Ordinance is incorporated herein by reference as if set forth fully herein.

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Ordinance No.____ Page 3

4. This Ordinance is statutorily exempt from CEQA pursuant to Section 21080.085 of the Public Resources Code as CEQA does not apply to a rezoning that implements the schedule of actions contained in an approved housing element pursuant to subdivision (c) of Section 65583 of the Government Code. This Ordinance continues to implement the multi-family rezonings under Program A-1 of the Town’s adopted and state-certified 2023-2031 Housing Element pursuant to Government Code section 65583(c) by refining development standards to facilitate multi-family housing production. Additionally, this Ordinance is exempt from CEQA pursuant to CEQA Guidelines section 15061(b)(3) because it does not have the potential for causing a significant effect on the environment. The Ordinance amends multi-family development standards but does not approve any development or grant any entitlements. Subsequent project proposals in multifamily zoning districts will undergo separate environmental review. Thus, this Ordinance is a regulatory action by the Town and it can be seen with certainty that there is no possibility that it may have a significant effect on the environment. Therefore, it is exempt from CEQA.

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

6. This Ordinance is consistent with and supports the Los Altos Hills General Plan by furthering housing goals, programs and strategies in the 2023-2031 Housing Element, including but not limited to Program A-1, A-4, and A-5. This Ordinance allows the Town to further its strategies in meeting its RHNA obligation and maintain compliance with state law.

SECTION II. AMENDMENT.

1. Amendments to the Land Use Table under Section 10-1.1611 “Development Standards” of Article 16 “Multi-Family Development Standards” under Chapter 1 “Zoning”, Title 10 “Zoning and Site Development” of the Municipal Code.

Table 1: Multi-Family Development Standards under Section 10-1.1611 shall be amended as shown in Exhibit A. Other sections, subsections, paragraphs and texts not amended are not included in Exhibit A and shall continue in full force and effect.

SECTION III. SEVERABILITY.

SECTION IV. EFFECTIVE DATE AND PUBLICATION.

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Ordinance No.____ Page 4
the City Clerk shall (1) publish the summary, and (2) post in the City Clerk’s Office a certified copy of the full text of this Ordinance along with the names of those City Council members voting for and against this Ordinance or otherwise voting. This Ordinance shall become effective thirty (30) days from and after its adoption.

INTRODUCED:

PASSED:

AYES:

NOES:

ABSTENTIONS:

ABSENT:

BY: _________________________
Mayor
ATTEST:
_________________________
City Clerk
APPROVED AS TO FORM:
_________________________
City Attorney

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Page 1 of 2 ends

Exhibit A to Ordinance
Existing Table 1 is reformatted as shown below and amendments to development standards, all as introduced via ordinance inclusive of an errata sheet on April 29, 2026 by the City Council, are shown in redline Amendments to Table 1: Multi-Family Development Standards Title 10, Chapter 1, Article 16, Section 10-1.1611
Standard MF Zone MFO Zone FMFO Zone
Density
(dwelling units per acre of contiguous buildable
area)
Minimum
Maximum
20 24
20 24
20 24
Maximum Average Square Feet Per Dwelling
Unit (1)
(total habitable floor area of all buildings divided
by the total number of dwelling units)
750 750 750
Maximum Floor Area Ratio (5)
(habitable floor area per acre of contiguous buildable
area)
• Bonus FAR for Senior and Assisted Living
Housing
• Bonus FAR for Affordable Housing as set forth
in the Inclusionary Housing Ordinance or
related policy or ordinance

0.45 +0.05

0.45 +0.05
Development Site Lot Size
(gross acres)
Minimum
Maximum

3.5 0.5

10.0 3.5 0.5

10.0 Unit Size (square feet) Minimum
Maximum 350 (1)
2,0001,800
350 (1)
2,0001,800
350 (1)
2,0001,800
Unit Mix
(bedrooms)
Minimum
Maximum
2 different unit
types
50% of any one
unit type
2 different unit
types
50% of any one
unit type
2 different unit
types
50% of any one
unit type
Setbacks from Single-family Lots in R-A Zone 60 35feet 60 35 feet 60 35 feet Setbacks from Multifamily Lots in MF, MFO,
FMFO zone or to Non-Residential Use Lot
Front 60 35 feet 60 35 feet 60 35 feet
Side 60 10 feet (2) 60 10 feet (2) 60 10 feet (2)
Rear 60 20 feet (2) 60 20 feet (2) 60 20 feet (2)
Structure Height 32 feet (3)(4) 32 feet (3)(4) 32 feet (3)(4) Private Recreation Space 40 sf/du for not
less than 20% of
total units
40 sf/du for not
less than 20% of
total units
40 sf/du for not
less than 20% of
total units
Common Recreation Space 100 square feet
per dwelling unit
100 square feet
per dwelling unit
100 square feet
per dwelling unit
ITEM 5I ATTACHMENT 2

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Notes:
(1) 1,000 square foot per unit average for Senior Housing, Assisted Living developments; the maximum unit size is 2,000 square feet.
(1) Excluding Single Room Occupancy Units.
(2) 25 feet minimum within an overlay zone and Not less than 50 feet between multi-family buildings and primary educational facility buildings where such uses or structures are on the same property. (3) The provisions of 10-1.504 Height shall not apply to multi-family buildings in the MF, MF Overlay, and Floating MF Overlay zones.
(4) Excluding:
a. Non -habitable basement or underground parking where the garage or basement entrance is not more than 25 feet wide and the exposed portion of the garage or basement is not more than 25% of the area of the façade of the habitable floor above it;
b. One-half of the height between the eave and the peak of a pitched roof; c. Up to 4 feet of exposed foundation below the finished first floor elevation to the finished grade of any common area or walkway within 15 horizontal feet of the building wall; and d. Uninhabited roof structures up to 10 feet in height that conceal mechanical equipment, elevators, stair overruns that cover less than 10% of the roof area and are setback at least 10 feet from the nearest exterior building wall.
(5) For a housing development project between 3 – 10 units, floor area ratio shall be as provided for in Government Code section 65913.11.

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Response to
Cal HDF Letter dated Apr 29, 2026
On 4/29/26 at 3:54 p.m., approximately six minutes before the 4 p.m. City Council meeting, the Town received a comment letter from James Lloyd on behalf of CalHDF. The letter, in summary, claims that the proposed Ordinance amending multi-family standards(1) impedes multi-family development (2) creates constraints that were not analyzed in the Housing Element; (3) violates New Commune DTLA LLC v. City of Redondo Beach (2025) 115 Cal.App.5th 111 and state fair housing laws.

The Town has prepared the following response to the comments raised by CalHDF. The individual comments from CalHDF is shown below, followed by the Town’s responses in red.

Comment #1: Floor Area Ratio Restriction Will Impede Multifamily Development CalHDF states:
“The Town is proposing to limit multifamily development by imposing a draconian floor area ratio (FAR) limitation of 0.45. This will have the effect of severely limiting average unit sizes, as the following calculation indicates.
1 acre = 43,560 sf
43,560 sf of lot area * 0.45 FAR = 19,602 sf of floor area 19,602 / 20 units per acre = 980 sf per unit (gross)
19,602 / 24 units per acre = 817 sf per unit (gross)
At 20 units per acre, once you subtract 20% for circulation space, that results in 784 square feet per unit, not much different than the previously proposed 750 square foot average unit size.

At 24 units per acre, once you subtract 20% for circulation, that results in 653 square feet per unit, which is much smaller than the 750 square foot average unit size previously proposed.

The proposed standard will make it challenging to develop multifamily housing on an economically feasible basis.”
Town Response:

The Town of Los Altos Hills has done more analysis to demonstrate the viability of the zoning standards and the feasibility of the permitted multifamily development than most jurisdictions. Thus, the FAR standard does not create a constraint or impede multi-family development.

Regarding the MF Zone development standards, the Town tested the ability to construct typical multifamily development on each of the RHNA and proposed rezone sites. The Town developed case study scenarios that considered and evaluated:

1. The features and constraints of each site

2. Developed conceptual site development plans for each consistent with the proposed development standards.

ITEM 5I ATTACHMENT 3

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Responses to 4-29-26 Cal HDF Letter re: Amendments to MF Zone Standards 2 The scenarios evaluated typical housing types including parking, access, building height, setbacks, and open space requirements. The scenarios demonstrated that each of the rezoning sites could easily accommodate the maximum permissible density and the number of units committed to in the Housing Element.

The Town conducted a market trends analysis of nearly 500 existing multifamily projects nearest to Los Altos Hills. The analysis evaluated unit mix and sizes and rents. The results were used to inform and guide the feasibility study and the development standards. If considering things from an average unit size perspective, it should be noted that the proposed 0.45 FAR results in average unit sizes of 817 and 980 noted by the commentor fit squarely in the range of unit sizes for the region. 487 MF Projects Nearest Los Altos Hills AVERAGE SF/UNIT TYPE PROJECTS UNITS ALL UNITS STUDIO 1BR 2BR 3BR
All MF Nearest LAH 487 31,950 824 505 682 959 1,273
Below Market Rate 97 8,235 769 458 656 910 1,198
Market Rate 391 23,971 841 524 692 973 1,309
Since 2020 39 4,655 929 568 689 1,024 1,509
9% of MF units in the area are 3 or more bedrooms; 54% are Studios or 1-bedroom units, and 37% are 2-br units. The 1-br units average only 682 sf, the 2-bedroom units average only 959 sf and the 3 br units average 1,273 sf. Again, these align well with the 0.45 FAR, and the desired mix of small, medium and large MF units and complements the thousands of large SF homes to meet the needs of larger households.

The commentor assumes an automatic 20% reduction in the floor area for circulation. This is a very high percentage reflective of a very inefficient design and should not be used as a base assumption.

It is often reduced and eliminated with good building design. Many developments in the 20-24 dwelling unit per acre density range are developed with direct unit access and zero floor area is lost to circulation.

Further, the Los Altos Hills standard is based on net habitable floor area that accounts and compensates for such lost spaces.

Similarly, the Town prepared a project feasibility study that tested each of the three rezoning sites independently. The feasibility study used a series of independently and compounding or additive conservative assumptions based on industry standards and norms as well as documented regional trends. The study demonstrated that each of the sites could be developed profitably with the permitted density, size of units and both surface and structured parking scenarios.

Together, these two studies tested and demonstrated that the proposed zoning is reasonable, follows industry trends and standards, and is not an unreasonable constraint on the development of housing in Los Altos Hills.

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Responses to 4-29-26 Cal HDF Letter re: Amendments to MF Zone Standards 3 Comment #2: Lack of Required Constraints Analysis
CalHDF states:
“Housing Element Law requires local governments to analyze governmental constraints on housing production. (Gov. Code, § 65583, subd. (a)(5).) The results of this analysis then inform the policies and programs in the housing element. (See id.; id. at subd. (c)(3); Californians for Homeownership, Inc. v. City of Beverly Hills (2023) Los Angeles County Superior Court, Case No. 23STCP00143, at p. 6, [finding planned rezonings for housing element site inventory must consider constraints identified by the housing element’s constraints analysis] [opinion attached to this letter].)
However, because the new constraints included in the Town’s rezoning proposal were not analyzed in the Town’s housing element, the Town cannot rely on the rezoning proposal to produce as many units as it is required to unless the Town analyzes the effects of the new constraints and offsets their impact on housing production. The Multifamily, Multifamily Overlay, and Floating Multifamily Overlay (MF/MFO/FMFO) impose the following, unanalyzed constraints:
● MF/MFO/FMFO imposes a requirement that each development site shall contain a contiguous buildable area, exclusive of steep slopes greater than 25% with a minimum horizontal measurement of 25 feet, with a minimum dimension not less than 50 feet wide. This was not analyzed in the Housing Element and this will make development of these sites challenging given the gradients involved.”
Town Response: The assertion and statement above is false. The Housing Element explicitly noted the known constraints of steep slopes on portions of the RHNA sites. The Housing Element explicitly projected the number of units to meet the RHNA based on estimates of the amount of suitable nonsteep buildable area for each site. The net buildable area was used as the basis of the projected RHNA units and was presumed to be used as the basis of future zoning development standards and the calculation of permissible density. The use of a net lot area ensures that the permitted development is proportionate to the ability of the property to accommodate the development. This led to the definition of the Contiguous Net Buildable Area (CBA). The premise of the CBA is based on zoning and land development techniques that have been used by many cities as a best planning practice for decades and is not an unreasonable constraint on housing development. To the contrary, it helps ensure that proposed and projected housing development is feasible and likely. “● MF/MFO/FMFO has a minimum development site size of 0.5 acres and a maximum lot size of 10 acres. ○ This was not analyzed in the Housing Element and these standards prevent the entire Twin Oaks site from being developed and it also inhibits the development of individual parcels within the Twin Oaks site.”
Town Response: The 0.5 to 10.0 minimum lot size was established by the State of California as the most suitable and appropriate size of development sites based on decades of multifamily development. Sites in this range area are considered a “safe harbor” and have been determined by

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Responses to 4-29-26 Cal HDF Letter re: Amendments to MF Zone Standards 4 HCD to not be a constraint on housing development, and do not require further substantiation as to their suitability. Sites outside this range do require further evidence and substantiation to demonstrate to HCD that they are capable and are not a constraint on housing development. “● MF/MFO/FMFO has minimum front setbacks of 35 feet, minimum side setbacks of 10 feet, and minimum rear setbacks of 20 feet. Increased setbacks diminish the amount of buildable area on a parcel and these setbacks were not analyzed in the Housing Element.” Town Response: The setbacks have been decreased, not increased as suggested, and are not an unreasonable constraint on development. As noted in the response above, the Town prepared conceptual site plans that demonstrated the ability of each site could easily accommodate the maximum permitted density and the setbacks are not an unreasonable constraint on housing development. The analysis was conducted with much larger setbacks than ultimately adopted and cited above.
“● MF/MFO/FMFO establishes a maximum floor area ratio (FAR) average of 0.45. The Housing Element instead held that every parcel was allowed at least a 2,500 square foot dwelling.” Town Response: The 0.45 FAR is based on and consistent with and permits floor areas typical of multifamily development in the region. As noted above, the Town conducted an analysis of nearly 500 multifamily projects near Los Altos Hills. The Housing Element did not contain a flat requirement for 2,500 square foot dwelling on every parcel. The 2,500 sf reference is to the existing single-family R-A zoning standard, not a projection for future development. The MF zone does not need to, nor is it appropriate to allow 2,500 sf per home in an MF zone. That would far exceed the 800-900 sf average sf / unit in the region and does not take into account the impact of such large size units on the units’ affordability.
“● MF/MFO/FMFO establishes a requirement for 40 square feet of private recreation space per dwelling. This was not analyzed in the Housing Element and private recreation space is challenging for affordable housing given the expense of constructing and maintaining balconies.”
Town Response: As noted in the responses above, the Town developed conceptual site development plans for each of the MF zone and RHNA sites. The plans demonstrated that each site could easily accommodate the maximum densities consistent with the proposed development standards and is not an unreasonable constraint on housing development.
“● MF/MFO/FMFO establishes a requirement for 100 square feet of common recreation space per dwelling unit. This was not analyzed in the Housing Element and, when coupled with the above maximum average gross floor area per dwelling unit, this imposes a dramatic constraint on housing development.”
Town Response: As noted in the responses above, the Town developed conceptual site development plans for each of the MF zone and RHNA sites. The plans demonstrated that each site could easily accommodate the maximum densities consistent with the proposed development standards and is not an unreasonable constraint on housing development. The assertion that the maximum average gross

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Responses to 4-29-26 Cal HDF Letter re: Amendments to MF Zone Standards 5 floor area per dwelling unit creates a special constraint when combined with the open space requirement is illogical. A limit on the total floor area will result in more land area being available for open space and other uses, not less. The common recreation area is not a significant project development cost. Each site has been demonstrated to have adequate land area to meet the total floor area, setbacks, open space and recreational and other site development requirements. “● MF/MFO/FMFO establishes a building-to-building separation requirement of 50 feet. This was not analyzed in the Housing Element and this will impose another barrier to housing, particularly on mixed-use sites.”
Town Response: As noted in the responses above, the Town developed conceptual site development plans for each of the MF zone and RHNA sites. The plans demonstrated that each site could easily accommodate the maximum densities consistent with the proposed development standards and is not an unreasonable constraint on housing development. This cited 50-foot separation is limited to scenarios where housing may be developed on a school site without separate property lines or typical minimum yard setback requirements. In that scenario, the 50-foot separation provides a reasonable separation between buildings of different uses and allows room for existing and future vehicular access and service areas between the uses and buildings. It is not an unreasonable constraint. “● MF/MFO/FMFO establishes a height limit of 32 feet for multifamily buildings ○ The Town’s Housing Element specifically found that (page 154) a 32 foot height limit would present a constraint on development: “This 32-foot height limit does not limit the ability to achieve the maximum density in the R-A zone, which has a density of 1 unit per acre, and is not a constraint for building lower-density multifamily or affordable housing for densities up to 20 dwelling units per acre but would likely be a constraint for densities greater than 20 dwelling units per acre.” (emphasis added)”
Town Response: This statement was an oversimplification, taken out of context, and has been demonstrated to be false. The next sentence will address the potential constraints created by building height through its creation of a multifamily zone and overlay zone, which will amend the Zoning Ordinance to ensure development standards like height limits do not inhibit the development of multifamily housing in multifamily zones.” In the subsequent period, the Town prepared the conceptual development plans that demonstrated that the maximum density and units for each lot can be accommodated easily on the MF-zoned sites. Further, the measurement of the 32-foot height in the MF zones was modified to be more generous and exclude from the maximum height portions that are included in the R-A zone, namely pitched roofs, rooftop mechanicals, exposed foundations, stoops and external stairs and parking.

As noted in the responses above, the Town developed conceptual site development plans for each of the MF zone and RHNA sites. The plans demonstrated that each site could easily accommodate the maximum densities consistent with the proposed development standards including the 32 feet in height standard and is not an unreasonable constraint on housing development. There are many multifamily housing projects of similar 2 to 3 story and 32 foot heights that achieve far greater densities than 24 dwelling units per acre. HCD assumes a standard “safe harbor” height of 10 feet of building height for every 10 dwelling units per acre. At a maximum of 24 du/ac, HCD would assume

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Responses to 4-29-26 Cal HDF Letter re: Amendments to MF Zone Standards 6 that a height of 24 feet would be adequate. By HCD’s standards and practice, no further analysis of substantiation of the height of 32 feet is required.
“Based on all these various new constraints, it is entirely unclear whether the lower-income sites will be able to generate the number of units committed to by the Housing Element.” Town Response: The specific site capacity and site feasibility studies conducted by the Town of Los Altos Hills demonstrated that each site could easily accommodate the maximum densities consistent with the proposed development standards and that the adopted development standards are not an unreasonable constraint on housing development.

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Responses to 4-29-26 Cal HDF Letter re: Amendments to MF Zone Standards 7 Comment #3: Problematic Use of ”Development Site”
CalHDF states:
“Zoning codes almost always base standards on lot size. This proposed zoning code amendment introduces the undefined term “development site.” It is unclear who will define the development site, or whether development sites will be allowed to include slopes greater than 25%. The Town should instead base their development standards on lot sizes, as is standard practice in California.”
Town Response: The development site and lot size terms are interchangeable. “Development site” was used to differentiate between the size of the lot subject to a multifamily development application versus the size of a lot that may be created for portions or individual units of a multifamily development site. In many cases, such lots are subdivided into smaller parcels as part of the overall multifamily development. Use of the term “development site” avoids a possible misinterpretation or restriction on the possible future subdivision.
“We also reiterate our objection to Code sections 10-1.1614, 10-1.1609, and 10-1.1611, given their potential interaction with the concept of “development site.” Code section 10-1.1614 prohibits or strictly limits development on/near ridgelines, hilltops, steep slopes, hillsides, and near riparian corridors. These constraints were not analyzed in the Housing Element and this will impose another barrier to housing, particularly on mixed-use sites.”
Town Response: There are no mixed-use sites in Los Altos Hills where primary residential and primary non-residential uses coexist in the same zoning district. Additionally, the Town did evaluate the possible constraints of ridgelines, hilltops, steep slopes, hillsides and riparian corridors. The Housing Element explicitly noted the known constraints of steep slopes on portions of the RHNA sites and specifically noted potential environmental constraints such as seismic faults and impacts to hillsides in Los Altos Hills. The Housing Element also specifically noted that development would be restrained within 25 feet of creeks and riparian habitats, such as at the Foothill College site. These constraints were also considered in the site suitability and selection process during the preparation of the Housing Element. The selected sites have been evaluated and tested via the preparation of conceptual site development plans. The each contain adequate buildable, non-constrained lands, that have been demonstrated to be able to easily accommodate the maximum permitted density. These features do not pose an unreasonable constraint on housing development for the MF zoned sites. “Code section 10-1.1609 provides the following definition of ‘Contiguous Buildable Area:’ The contiguous area of a parcel, lot or development site with a minimum dimension not less than 50 feet wide and excluding areas of steep slopes greater than 25% measured over a minimum horizontal distance of 25 feet. The contiguous area may include small individual areas of slopes greater than 25% where such small individual areas are less than 1,000 square feet in area and are surrounded by slopes less than 25% on all sides of said area.

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Responses to 4-29-26 Cal HDF Letter re: Amendments to MF Zone Standards 8 Then, proposed code section 10-1.1611 defines density as ‘dwelling units per acre of contiguous buildable area.’”
Town Response: Same response as above. CBA ensures that each site has adequate and suitable buildable area without significant constraints so that the maximum permitted density and projected number of housing units can be accommodated.

Comment #4: Fair Housing Implications
CalHDF states:
“The proposed multifamily development standards will result in an average unit size between 653 and 784 square feet per unit. This will require projects to be predominantly studios and one-bedroom apartments, resulting in disparate impact against families with children.

Furthermore, by including an FAR incentive for age-restricted and assisted living, the Town is further discouraging development of housing appropriate for families with children. Local governments have an obligation under California to refrain from any actions that would discriminate against protected classes based on protected characteristics (Gov. Code, § 65008, subds. (a)(1)(A). One such protected characteristic is familial status. (Gov. Code, § 12955, subd. (a).)
By forcing the units in these developments to be, on average, predominantly studios and onebedrooms, the Town will make it vastly more challenging to develop housing units that are large enough to accommodate families with children. It is not surprising that the Town is engaging in this practice, given that the addition of lower-income children to the local school district is often highly opposed by the residents of high-income communities across the state and country.

Both local governments and California state agencies are tasked with affirmatively further fair housing, requiring “meaningful actions, in addition to combating discrimination, that overcome patterns of segregation and foster inclusive communities free from barriers that restrict access to opportunity based on protected characteristics.” (Gov. Code, § 8899.50, subd. (a)(1).) The obligation to affirmatively further fair housing works in conjunction with, and independently of, local government’s housing element obligations. Local governments are required to include a plan to affirmatively further fair housing as part of a compliant housing element, and are required to carry out this plan and other policies consistent with their obligation to affirmatively further fair housing. (Id., § 65583, subd. (a)(3), (b)(1).) The Town’s proposed rezoning therefore fails to meet its obligations under state fair housing law and housing element law.”
Town Response: The development standards allow units up to 1,800 square feet. This is more than adequate to accommodate the needs of larger family or household sizes. The FAR and unit size limits will encourage a range of unit sizes to meet a variety and diversity of household sizes and housing

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Responses to 4-29-26 Cal HDF Letter re: Amendments to MF Zone Standards 9 needs. Contrary to the commentors suggestion, there is a greater need for housing for smaller households in Los Altos Hills. There are almost exclusively large homes available in Los Altos Hills and the prices limit availability to smaller households.

The incentive for senior and assisted living housing will allow and enable seniors to move out of their large single-family homes, yet remain in Los Altos Hills. This will make those larger homes occupied by small empty nester households for larger families and households that need and make better use of the space. The incentive is not a constraint on housing development, but rather is increasing housing supply and availability of existing housing that is appropriate for families with children.

Aside from the senior housing incentives, the Town also included in its Housing Element several programs to promote housing mobility and further fair housing. These include but are not limited to Program A-12, E-4, F-2, F-6, G-2. The development standards in the multi-family zoning are designed to facilitate different housing products and affordable housing types. These fair housing and housing mobility programs have been certified by HCD to comply with state law. The comment’s expression of bias and prejudicial assumptions do not show the Town’s Housing Element, zoning, and related regulations are invalid.

Comment #5: Problematic General Plan Land Use Element
CalHDF provides a lengthy list of items in the Land Use Element that it claims to not have been analyzed in the Housing Element. These include setbacks, height limits, standards applicable to low-density residential zone (i.e. the R-A single family zone), slope, minimum parcel size for R-A zone, and the Lot Unit Factor (which applies only in the R-A zone). CalHDF also states that restricting development on steep slopes imposes a constraint that was not analyzed in the Town’s Housing Element. Furthermore, by making density contingent on buildable area it violates the minimum density requirements of Housing Element law, as decided in New Commune DTLA LLC v. City of Redondo Beach (2025) 115 Cal.App.5th 111. And the proposed densities of 20 to 24 dwelling units per acre fail to live up to the commitments of the Town’s May 2023 Housing Element.

Town Response: These assertions are incorrect. As noted in the above responses, the standards pointed to by CalHDF are either analyzed in the Housing Element, included as a part of the sites suitability analysis, and development scenarios conducted by the Town to determine project capacity and feasibility analyses. Alternatively, the standards cited apply on in the single-family R-A zone.

Finally, the Town has zoned the inventory sites at a minimum of 20 dwelling units per acre consistent with housing element law and the Redondo Beach decision. It then employs the CBA as a development standard to ensure that each site has adequate and suitable buildable area without significant constraints so that the maximum permitted density and projected number of housing units can be accommodated.

CalHDF next states that the description of Foothill College and private schools in Los Altos Hills show that “neither of these sites has any real chance of being developed, as we have communicated to the Town numerous times in previous correspondence. The Diocese in particular has specifically and repeatedly objected to the inclusion of the St. Nicholas School in the Housing Element and has expressed its unwillingness to develop housing on the site.”

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Responses to 4-29-26 Cal HDF Letter re: Amendments to MF Zone Standards 10 Town Response: These comments ignore the fact that the Town has conducted substantial feasibility analysis to show that multi-family development of various housing product types are feasible at all inventory sites. They also ignore the fact that both the College and St. Nicholas School have expressed continuing interest to working with the Town on land use development potentials at the sites, and that the Twin Oaks property owner has submitted various kinds of development applications for the site over the course of negotiations with the Town. Like the responses above noted, the Town has carefully analyzed project capacity and feasibility at the three sites and concluded that they are suitable and feasible to accommodate the RHNA projections.

CalHDF finally states “The Town’s proposed zoning changes and amended General Plan Land Use Element fail to substantially comply with the Housing Element Law, with state fair housing law, and with binding precedent from the California Court of Appeal.” Town Response: The responses above and the Town’s specific project capacity and feasibility analyses demonstrate that the Town has properly studied the zoning standards and housing policies and demonstrated that they do not unreasonably constrain housing development. Rather, the Town has acted diligently and in good faith and has worked closely with and maintained good standing with HCD to meet the challenge of creating new multifamily zones in an effective and timely manner.

The new zones provide significant opportunity for new multifamily housing, a range and variety of housing types and sizes to meet a variety and diversity of housing needs. This is the most important and significant action the Town could take to affirmatively further fair housing in Los Altos Hills. It has done so willingly, diligently, and in good faith and effect.

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Apr 29, 2026
Town of Los Altos Hills
26379 Fremont Road
Los Altos Hills, CA 94022
By Email: [email protected]; [email protected]; [email protected]; [email protected]; [email protected]
CC: [email protected]; [email protected]; [email protected]; [email protected]; Re: Proposed Zoning Text Amendments and General Plan Amendment Dear Los Altos Hills City Council and Staff,
The California Housing Defense Fund (“CalHDF”) submits this correspondence as comment regarding agenda item 2.1 for the April 29, 2025 Council meeting, proposed amendments to the Town of Los Altos Hills (“Town”) General Plan and zoning code.

The proposed rezoning does not fulfill the Town’s obligations under Housing Element law.

The proposal also violates a recently decided binding Court of Appeal decision and state fair housing law.

Problematic Zoning Constraints
Floor Area Ratio Restriction Will Impede Multifamily Development The Town is proposing to limit multifamily development by imposing a draconian floor area ratio (FAR) limitation of 0.45. This will have the effect of severely limiting average unit sizes, as the following calculation indicates.
1 acre = 43,560 sf
43,560 sf of lot area * 0.45 FAR = 19,602 sf of floor area 19,602 / 20 units per acre = 980 sf per unit (gross)
19,602 / 24 units per acre = 817 sf per unit (gross)
2201 Broadway, PH1, Oakland, CA 94612
www.calhdf.org
ITEM 5I, Supplement 1

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At 20 units per acre, once you subtract 20% for circulation space, that results in 784 square feet per unit, not much different than the previously proposed 750 square foot average unit size.

At 24 units per acre, once you subtract 20% for circulation, that results in 653 square feet per unit, which is much smaller than the 750 square foot average unit size previously proposed.

The proposed standard will make it challenging to develop multifamily housing on an economically feasible basis.

Lack of Required Constraints Analysis
Housing Element Law requires local governments to analyze governmental constraints on housing production. (Gov. Code, § 65583, subd. (a)(5).) The results of this analysis then inform the policies and programs in the housing element. (See id.; id. at subd. (c)(3); Californians for Homeownership, Inc. v. City of Beverly Hills (2023) Los Angeles County Superior Court, Case No. 23STCP00143, at p. 6, [finding planned rezonings for housing element site inventory must consider constraints identified by the housing element’s constraints analysis] [opinion attached to this letter].)
However, because the new constraints included in the Town’s rezoning proposal were not analyzed in the Town’s housing element, the Town cannot rely on the rezoning proposal to produce as many units as it is required to unless the Town analyzes the effects of the new constraints and offsets their impact on housing production. The Multifamily, Multifamily Overlay, and Floating Multifamily Overlay (MF/MFO/FMFO) impose the following, unanalyzed constraints:
● MF/MFO/FMFO imposes a requirement that each development site shall contain a contiguous buildable area, exclusive of steep slopes greater than 25% with a minimum horizontal measurement of 25 feet, with a minimum dimension not less than 50 feet wide.
○ This was not analyzed in the Housing Element and this will make development of these sites challenging given the gradients involved. ● MF/MFO/FMFO has a minimum development site size of 0.5 acres and a maximum lot size of 10 acres.
○ This was not analyzed in the Housing Element and these standards prevent the entire Twin Oaks site from being developed and it also inhibits the development of individual parcels within the Twin Oaks site. ● MF/MFO/FMFO has minimum front setbacks of 35 feet, minimum side setbacks of 10 feet, and minimum rear setbacks of 20 feet.
○ Increased setbacks diminish the amount of buildable area on a parcel and these setbacks were not analyzed in the Housing Element. 2 of 8

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● MF/MFO/FMFO establishes a maximum floor area ratio (FAR) average of 0.45 ○ The Housing Element instead held that every parcel was allowed at least a 2,500 square foot dwelling..
● MF/MFO/FMFO establishes a requirement for 40 square feet of private recreation space per dwelling.
○ This was not analyzed in the Housing Element and private recreation space is challenging for affordable housing given the expense of constructing and maintaining balconies.
● MF/MFO/FMFO establishes a requirement for 100 square feet of common recreation space per dwelling unit.
○ This was not analyzed in the Housing Element and, when coupled with the above maximum average gross floor area per dwelling unit, this imposes a dramatic constraint on housing development.
● MF/MFO/FMFO establishes a building-to-building separation requirement of 50 feet. ○ This was not analyzed in the Housing Element and this will impose another barrier to housing, particularly on mixed-use sites.
● MF/MFO/FMFO establishes a height limit of 32 feet for multifamily buildings ○ The Town’s Housing Element specifically found that (page 154) a 32 foot height limit would present a constraint on development: “This 32-foot height limit does not limit the ability to achieve the maximum density in the R-A zone, which has a density of 1 unit per acre, and is not a constraint for building lower-density multifamily or affordable housing for densities up to 20 dwelling units per acre but would likely be a constraint for densities greater than 20 dwelling units per acre.” (emphasis added)
Based on all these various new constraints, it is entirely unclear whether the lower-income sites will be able to generate the number of units committed to by the Housing Element.

Problematic Use of ”Development Site”
Zoning codes almost always base standards on lot size. This proposed zoning code amendment introduces the undefined term “development site.” It is unclear who will define the development site, or whether development sites will be allowed to include slopes greater than 25%.

The Town should instead base their development standards on lot sizes, as is standard practice in California.

We also reiterate our objection to Code sections 10-1.1614, 10-1.1609, and 10-1.1611, given their potential interaction with the concept of “development site.” 3 of 8

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Code section 10-1.1614 prohibits or strictly limits development on/near ridgelines, hilltops, steep slopes, hillsides, and near riparian corridors. These constraints were not analyzed in the Housing Element and this will impose another barrier to housing, particularly on mixed-use sites.

Code section 10-1.1609 provides the following definition of “Contiguous Buildable Area:” The contiguous area of a parcel, lot or development site with a minimum dimension not less than 50 feet wide and excluding areas of steep slopes greater than 25% measured over a minimum horizontal distance of 25 feet. The contiguous area may include small individual areas of slopes greater than 25% where such small individual areas are less than 1,000 square feet in area and are surrounded by slopes less than 25% on all sides of said area.

Then, proposed code section 10-1.1611 defines density as “dwelling units per acre of contiguous buildable area.”
Fair Housing Implications
The proposed multifamily development standards will result in an average unit size between 653 and 784 square feet per unit. This will require projects to be predominantly studios and one-bedroom apartments, resulting in disparate impact against families with children.

Furthermore, by including an FAR incentive for age-restricted and assisted living, the Town is further discouraging development of housing appropriate for families with children.

Local governments have an obligation under California to refrain from any actions that would discriminate against protected classes based on protected characteristics (Gov. Code, § 65008, subds. (a)(1)(A). One such protected characteristic is familial status. (Gov. Code, § 12955, subd. (a).)
By forcing the units in these developments to be, on average, predominantly studios and one-bedrooms, the Town will make it vastly more challenging to develop housing units that are large enough to accommodate families with children. It is not surprising that the Town is engaging in this practice, given that the addition of lower-income children to the local school district is often highly opposed by the residents of high-income communities across the state and country.

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subd. (a)(1).) The obligation to affirmatively further fair housing works in conjunction with, and independently of, local government’s housing element obligations. Local governments are required to include a plan to affirmatively further fair housing as part of a compliant housing element, and are required to carry out this plan and other policies consistent with their obligation to affirmatively further fair housing. (Id., § 65583, subd. (a)(3), (b)(1).) The Town’s proposed rezoning therefore fails to meet its obligations under state fair housing law and housing element law.

Problematic General Plan Land Use Element
The Town is proposing to adopt an amendment to its General Plan Land Use Element.

Numerous policies and provisions in the proposed Land Use Element fail to substantially comply with state law:
● Policy 1.4 Multifamily uses will be limited to areas with suitable access to collector and arterial roads, freeway and expressway access, and on lands with contiguous buildable areas excluding steep slopes to accommodate larger buildings and development footprints, access to public sewer services and on or near non-residential or institutional uses where possible
● 115. The Multifamily Residential designation allows residential densities between 20 and 24 dwelling units per acre of contiguous buildable area exclusive of steep slopes over 25 percent. No single-family uses are permitted. Senior housing, assisted living facilities, single-room occupancies, transitional and supportive housing, and accessory dwelling units are also permitted.
● 122. Low-density residential development can be compatible with hillside protection, especially where slopes are not excessively steep. Higher density and intensity multifamily housing has larger buildings and larger development footprints than single-family homes. Multifamily development needs larger contiguous areas for development without significant environmental constraints, particularly areas without steep slopes. As discussed in the USGS report in Appendix A, environmental concerns increase progressively as the slope of the terrain increases. To the maximum extent feasible, steep slopes, canyons and ravines, as well as natural swales and drainage channels, and geological hazard areas within areas designated for residential development should be left undisturbed and preserved in their natural condition.
● 123. Slope Density Standards for Subdivisions and Multifamily Development. ...Multifamily residential development shall be limited to areas with slopes of less than 25 percent. Limited disturbances to areas with slopes over 25 percent (e.g., not more than 10 percent of the contiguous building area exclusive of slopes greater than 25 percent) may be permitted where necessary to provide access and overall design efficiency.
5 of 8

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● 124. The lot unit factor (LUF) for any parcel designated for low density use is based on lot size and average slope as determined by a formula established in the Town’s Zoning Ordinance. Newly created lots must have a LUF of one or more. Some lots with a LUF of less than one were created early in the Town’s history, prior to incorporation.

These lots are considered nonconforming and their development is restricted today.

Lots with a LUF of less than one may not be created today. Lots with a LUF of less than .50 require a conditional development permit. Multifamily development shall be subject to a minimum contiguous buildable area requirement (exclusive of steep slopes) instead of a LUF calculation.

Restricting development on steep slopes imposes a constraint that was not analyzed in the Town’s Housing Element. Furthermore, by making density contingent on buildable area it violates the minimum density requirements of Housing Element law, as decided inNew Commune DTLA LLC v. City of Redondo Beach (2025) 115 Cal.App.5th 111. And the proposed densities of 20 to 24 dwelling units per acre fail to live up to the commitments of the Town’s May 2023 Housing Element.
● 126. Building Setbacks
Setbacks regulate the placement of buildings with respect to their property lines in order to provide a minimum amount of open space between buildings on adjacent parcels and between buildings and street rights-of-way. Setbacks for single-family residences are generally 40 feet from the front property line and 30 feet from the sides and rear property lines. Increased setbacks are required for estate homes over 10,000 square feet in size. Setbacks for multifamily residences are generally 35 feet from the front, side, and rear abutting single-family residential uses, and 10 and 20 feet respectively from side and rear yards abutting non-residential or institutional uses.

As discussed infra, the Town failed to analyze these setbacks in its Housing Element. ● Height Limits
127. The vertical height of buildings is limited to 27 feet for single-family residences in order to maintain a consistent, low profile that is compatible with the Town’s semi-rural character. Building height may be increased to a maximum of 32 feet if setbacks are increased as specified in the Town’s Zoning Ordinance. The vertical height of multi-family residences is limited to 32 feet, excluding basement and underground parking where the exposed portions do not exceed 25% of the façade of the story above it, and excluding necessary rooftop mechanicals where less than 10% of the roof area, and other architectural features.

As discussed infra, the proposed height limit of 32 feet was found to be a constraint on multifamily development in the Town’s Housing Element.
6 of 8

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● Policy 2.2 The minimum parcel size for single-family dwellings shall be at least one acre and shall increase as the steepness of the land increases; and approximately 0.5 acres for multifamily development over 20 dwelling units per acre.

As discussed infra, the Town’s Housing Element failed to analyze this minimum parcel size.

Additionally, the General Plan Land Use Element refers to minimum parcel size while the zoning refers to development site size.
● Foothill Community College
134. The Town is served by an excellent community college in its midst, Foothill Community College. Like other public school districts, Foothill College generally is not subject to the Town’s zoning and site development ordinances. However, the district is required to obtain conditional use permits for certain uses such as wireless communication antennas. The Town continues to work with the Foothill College administration to maximize the school’s benefits to Town residents and minimize any traffic impacts and disruptions experienced by residents living near the campus.

The college is an appropriate location for incorporation of multifamily housing on underutilized portions of the property along with the continued use of the property for educational institutional uses. This can help meet the Town’s housing needs and provide financial support for the continued use and health of the college. ● Private Schools
135. Private schools in the Los Altos Hills planning area include St. Nicholas School (K-8), Pinewood High School and the Waldorf School. The latter two are located on public school sites as discussed above. Like Foothill Community College, the St.

Nicholas School has been identified as an appropriate location for the addition of multifamily housing on underutilized portions of the property.

Neither of these sites has any real chance of being developed, as we have communicated to the Town numerous times in previous correspondence. The Diocese in particular has specifically and repeatedly objected to the inclusion of the St. Nicholas School in the Housing Element and has expressed its unwillingness to develop housing on the site. ⧫ ⧫ ⧫
7 of 8

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The Town’s proposed zoning changes and amended General Plan Land Use Element fail to substantially comply with the Housing Element Law, with state fair housing law, and with binding precedent from the California Court of Appeal.

CalHDF is a 501(c)3 non-profit corporation whose mission includes advocating for increased access to housing for Californians at all income levels, including low-income households.

You may learn more about CalHDF at www.calhdf.org.

Sincerely,
Dylan Casey
CalHDF Executive Director
James M. Lloyd
CalHDF Director of Planning and Investigations
8 of 8

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ITEM 5J
TOWN OF LOS ALTOS HILLS May 14, 2026
Staff Report to the City Council
SUBJECT: RESOLUTION AMENDING THE EMPLOYEE HANDBOOK TO
ESTABLISH A JULY 1 COST OF LIVING ADJUSTMENT (COLA)

SCHEDULE
FROM: Thomas Leung, Finance Director TL
APPROVED: Cody Einfalt, City Manager
RECOMMENDATION: That the City Council:

Adopt a resolution (Attachment 1) amending the Employee Handbook to establish a July 1 Cost of Living Adjustment (COLA) schedule for employees
BACKGROUND:

The Employee Handbook (the “Handbook”) is the Town’s comprehensive document that outlines all the rules, procedures, and regulations for employees, and it also includes pertinent information related to salaries/wages and benefits. The Handbook was last revised in September 2025.

Currently, the Town provides Cost of Living Adjustments (COLA) to employees based on individual employee anniversary dates throughout the fiscal year. Under this system, salary adjustments occur at different times depending on each employee’s hire date.

As part of the Town’s recent employee stay interview process conducted by Dr. Frank Benest, employees identified the timing and administration of COLAs as an area for improvement. The resulting stay interview report recommended implementing a July 1 COLA schedule aligned with the Town’s annual budget process. Staff is therefore proposing this change to take effect beginning July 1, 2026.

Aligning COLAs with the fiscal year would improve consistency in compensation administration and better align salary adjustments with adopted salary schedules and the Town’s annual budget process.

DISCUSSION:

Under the proposed change, annual COLAs would occur on July 1 of each year rather than on employee anniversary dates. This approach is commonly used by public agencies to align compensation adjustments with budget adoption and fiscal planning.

This proposed change modifies only the timing of COLAs and does not increase employee compensation levels. Historically, employees received both COLA and merit-based salary increases on their anniversary date. Under the proposed approach, only the timing of COLAs

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Staff Report to City Council Page 2
Employee Handbook Update
May 14, 2026
would change, with COLAs occurring uniformly on July 1 each year. Merit-based salary increases would continue to occur separately in accordance with the Town’s existing personnel policies.

The proposed transition would provide several operational and administrative benefits, including:
• Aligning employee COLA adjustments with the fiscal year. • Ensuring all employees receive COLA adjustments at the same time each year. • Helping maintain alignment between employee salaries and adopted salary schedules when salary ranges are adjusted annually.
• Improving transparency by clearly distinguishing annual COLAs from merit-based salary increases.
• Responding to feedback received during the Town’s stay interview process regarding compensation administration and employee retention.

During the transition year, employees may experience timing differences in when COLAs are received depending on their anniversary date. Following the transition year, all employees would receive COLA adjustments on the same annual schedule.

ENVIRONMENTAL REVIEW:

Approving the revised Handbook is exempt from the California Environmental Quality Act (CEQA) due to this action not being a “project” which has a potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment, as defined under CEQA Guidelines 15378.
2025-26 CITY COUNCIL WORK PLAN:

Updates to the Employee Handbook support the “Continue Employee Enhancement and Retention” initiative in the 2025-26 City Council Work Plan.

FISCAL IMPACT:

Transitioning to a July 1 COLA schedule would result in an estimated one-time salary cost increase of approximately $37,000, which would be absorbed by the merit contingency bucket.

After the transition year, there would be no ongoing fiscal impact beyond the Town’s normal annual COLA practices. The one-time transition cost can be absorbed within the existing budget.

ATTACHMENTS:

1. Resolution Adopting the Revised Employee Handbook

2. Revised Employee Handbook – Redlined

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Resolution -26 Page 1
ITEM 5J Attachment 1
RESOLUTION -26

RESOLUTION AMENDING THE EMPLOYEE HANDBOOK TO ESTABLISH A JULY 1 COST OF LIVING ADJUSTMENT (COLA) SCHEDULE
WHEREAS, the Employee Handbook (the “Handbook”) is an essential document for the effective and efficient operation of the Town by providing the Personnel Rules and Regulations and the Classification and Compensation Plan; and
WHEREAS, periodically updating the Handbook is necessary to ensure compliance with the law and adherence to best practices; and
WHEREAS, the last comprehensive review and update of the Handbook was in 2025; and WHEREAS, the Handbook has been reviewed and updated in 2026 to reflect additional modifications necessary for the effective and efficient operation of the Town.

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

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

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

The above and foregoing Resolution was passed and adopted by the City Council of the Town of Los Altos Hills at a regular meeting held on the 14th of May 2026 by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

ATTEST:

By:

Rajiv Bhateja, Mayor
Arika Birdsong-Miller, City Clerk

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TOWN OF LOS ALTOS HILLS
Employee Handbook
Personnel Rules and Regulations

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TABLE OF CONTENTS
PERSONNEL RULES AND REGULATIONS.......................................................................... 9 SECTION 1 – GENERAL PROVISIONS ............................................................................. 11

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

4.4 NOTICE OF REJECTION OF APPLICATION......................................................20

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

8.1 PERFORMANCE EVALUATION PROVISIONS..................................................48 SECTION9 – TRANSFER, RESIGNATION, LAYOFF, REINSTATEMENT, REEMPLOYMENT .... 49

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

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

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

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

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

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

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

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

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

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

10.6 PROCEDURES FOR TAKING DISCIPLINARY ACTION.......................................53 SECTION 11 – APPEALS HEARING AND GRIEVANCE PROCEDURES.................................. 55

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

11.2 GRIEVANCE PROCESS....................................................................................58

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SECTION 12 – RECORDS AND REPORT .......................................................................... 60

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

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

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

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

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

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

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

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

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

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

14.7 NON–SMOKINGPOLICY................................................................................75

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

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

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

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

14.12 VIOLENCE IN THE WORKPLACE ..................................................................101 CLASSIFICATIONAND COMPENSATION PLAN............................................................. 104 SECTION100 – AUTHORIZED CLASSIFICATION AND SALARIES ..................................... 106 100.1 MONTHLY SALARY SCHEDULE BY PERMANENT EMPLOYEE CLASSIFICATION..........106 SECTION 200 – LEAVE ................................................................................................ 108 SECTION 300 – HEALTH AND WELFARE....................................................................... 109 300.1 CAFETERIA AND FLEXIBLE BENEFIT PLAN ...................................................109 300.2 DESIGNATED HEALTH CONTRIBUTION TOWARD HEALTH PREMIUM ........109 300.3 DENTAL PLAN .............................................................................................110 300.4 VISION PLAN...............................................................................................110

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300.5 EMPLOYEE WELLNESS ................................................................................110 300.6 LIFE AND ACCIDENTAL DEATH AND DISMEMBERMENT INSURANCE.........110 300.7 LONG TERM DISABILITY INSURANCE ..........................................................111 300.8 WORKERS’ COMPENSATION.......................................................................111 300.9 EMPLOYEE ASSISTANCE PROGRAM............................................................112 300.10 UNIFORMS AND SAFETY GEAR ...................................................................112 SECTION 400 – OTHER BENEFITS ................................................................................ 114 400.1 DEFERRED COMPENSATION.......................................................................114 400.2 CREDIT UNION............................................................................................115 400.3 AUTOMOBILE ALLOWANCE........................................................................115 400.4 PARKS & RECREATION PROGRAM REGISTRATION FEES.............................115 400.5 TUITION REIMBURSEMENT ........................................................................115 SECTION 500 – RETIREMENT...................................................................................... 117 500.1 PENSION – TIER I.........................................................................................117 500.2 PENSION – TIER II........................................................................................118 500.3 PENSION – TIER III.......................................................................................120 500.4 RETIREE MEDICAL REIMBURSEMENT .........................................................121

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Personnel Rules and Regulations

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

GENERAL PROVISIONS

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

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

1.2 PERSONNEL ORDINANCE
These Personnel Rules and Regulations are adopted pursuant to Resolution No. xx‐24 adopted September19, 2023 May 19, 2016 by the City Council of the Town of Los Altos Hills.

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

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

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

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

Employees of the Town shall also have the right to refuse to join or participate in the activities of employee organizations, and shall have the right to represent themselves

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Town of Los Altos Hills
Personnel Rules & Regulations
12 individually in their employment relations with the Town.

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

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

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

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

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

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

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

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

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

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Town of Los Altos Hills
Personnel Rules & Regulations
14 2.8 DEMOTION
The movement of an employee from one position to another which is allocated to a classification having a lower maximum rate of pay.

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

2.10 DOMESTIC PARTNER
See “Registered Domestic Partner.”

2.11 ELECTED OFFICIAL
City Council members.

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

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

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

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

2.15 EXAMINATION

2.15.1 Open examination:

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

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Town of Los Altos Hills
Personnel Rules & Regulations
15 2.15.2 Promotional examination:

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

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

These employees are listed in Section 7.5.

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

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

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

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

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

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Town of Los Altos Hills
Personnel Rules & Regulations
16 2.22 MANAGEMENT EMPLOYEE
An employee who holds a position designated as “management.” These employees are listed in Section 5.2.

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

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

2.25 PERSONNEL ACTION FORM
A multi‐purpose form approved by the City Manager for use in processing changes in an employee'ssalary rate, employment status, or other matters set forth in this Handbook.

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

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

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

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

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

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Town of Los Altos Hills
Personnel Rules & Regulations
17 2.31 REGULAR EMPLOYEE
An employee in the competitive service who hassuccessfully completed the introductory period and has been retained with regular status as hereafter provided in these Rules.

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

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

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

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

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

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

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

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

2.40 TOWN
The Town of Los Altos Hills.

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Town of Los Altos Hills
Personnel Rules & Regulations
18 2.41 TRANSFER
A change of an employee from one position to another position in the same class or in a comparable class with the same maximum rate of pay.

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

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

CLASSIFICATION

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

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

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

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

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

THE SELECTION AND APPOINTMENT PROCESS

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

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

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

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

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

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

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

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

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

6. Directly or indirectly obtained information regarding examinations;

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Personnel Rules & Regulations
21 7. Failed to submit the employment application correctly or within the prescribed time limits;

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

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

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

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

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

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

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

4.7.1 Promotion within a Job Series

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Town of Los Altos Hills
Personnel Rules & Regulations
22 Full‐time employees may be promoted within the same job series based on performance evaluations, without a formal recruitment process. To qualify for promotion, employees must have completed at least one year in their current role and meet or exceed performance standards. Promotions within a job series require the Supervisor and City Manager’s approval. The City Manager or designee will review evaluations and make the final decision.

Job Series:

1. City Manager Series
● Assistant City Manager
● Deputy City Manager
● Assistant to the City Manager

2. City Clerk Series
● City Clerk
● Admin Clerk/Technician

3. Management Analyst Series
● Management Analyst II
● Management Analyst

4. Finance Series
● Finance Manager
● Senior Accountant
● Accountant
● Accounting Technician
● Accounting Office Assistant

5. Community Development Series
● Assistant Community Development Director/Building Official ● Principal Planner
● Senior Planner
● Associate Planner
● Assistant Planner

6. Building Services Series
● Assistant Community Development Director/Building Official ● Deputy Building Official/Plan Examiner
● Senior Building Inspector
● Building Inspector
● Building Technician

7. Engineering Series
● Utility Engineering Manager
● Project Manager
● Senior Civil Engineer
● Associate Engineer
● Assistant Engineer
● Engineering Technician

8. Public Works Inspector
● Senior Public Works Inspector
● Public Works Inspector

9. Maintenance Series
● Senior Maintenance Superintendent

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Town of Los Altos Hills
Personnel Rules & Regulations
23 ● Maintenance Superintendent
● Maintenance Worker III
● Maintenance Worker II
● Maintenance Worker I

10. Community Services Series
● Community Services Manager
● Community Services Supervisor
● Recreation Specialist

4.7.2 Promotion from Interim to Permanent
Full‐time employees holding an interim appointment may be promoted to a permanent position based on performance evaluations, without a formal recruitment process. An “interim” appointment is a temporary role filled by an employee to manage the position until a permanent replacement is found. To qualify for promotion, employees must have completed at least three months in the interim role and meet or exceed performance standards. Promotionsfrom interim to permanent require the Supervisor and City Manager’s approval. The City Manager or designee will review evaluations and make the final decision.

4.8 CONDUCT OF SELECTION PROCESS
The City Manager or designee may prepare and administer or contract with any competent agency or individual for the administration of any part of the selection process, as they deem most appropriate.

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

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

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

Notwithstanding any other provision of these rules, if there are less than three (3) names on an eligible list, the City Manager may declare such list void and fill the position(s) by any method permitted by these Personnel Rules, including, but not limited to, undertaking new

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Town of Los Altos Hills
Personnel Rules & Regulations
24 recruiting and selection procedures. Eligible lists shall become effective upon the approval by the City Manager.

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

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

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

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

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

4.16 PROVISIONAL APPOINTMENTS
In the absence of appropriate eligibility lists, a provisional appointment may be made by the City Manager for an individual who meets the minimum training and experience qualifications for the position or is on track to secure the necessary qualifications, such as certifications, diplomas, or other credentials, provided they can effectively perform the job.

The Supervisor and City Manager have the discretion to make this appointment under the condition that the Supervisor ensures the employee is actively working toward obtaining the required credentials. The employee will be granted up to one year from the date of the provisional appointment to secure these qualifications, with the possibility of extending this provisional period for an additional year if the employee continuesto make satisfactory

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Town of Los Altos Hills
Personnel Rules & Regulations
25 progress toward obtaining the required credentials. An employment list must be established within six (6) monthsfor any regular position filled by provisional appointment.

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Town of Los Altos Hills
Personnel Rules & Regulations
26 Furthermore, the City Manager may extend the provisional appointment for up to ninety (90) days beyond the initial or extended period through a single action. It is important to note that no special credit will be granted for service under a provisional appointment in terms of meeting qualifications, testing, or establishing open, competitive promotional lists.

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

EMPLOYMENT STATUS

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

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

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

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

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

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

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

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Town of Los Altos Hills
Personnel Rules & Regulations
29 5.3 REGULAR EMPLOYMENT
Regular Full‐Time Employment: Employees who successfully complete their introductory period and who regularly work a minimum of forty (40) hours per week shall become full‐ time regular employees and shall be entitled to all the benefits provided herein.

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

5.4 TEMPORARY EMPLOYMENT
Without following the rules regarding recruitment and selection, the Town may hire employees on a temporary basis, usually for up to 125 days or 1000 hours in a fiscal year for completion of a specific task or project or to address a need of limited duration.

Temporary employees may be removed at any time without cause, notice or any right of appeal. Temporary employees are eligible for California Paid Sick Leave (AB 1522) but are not eligible for other benefits.

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

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

ATTENDANCE AND LEAVES OF ABSENCE

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

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

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

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

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

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

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

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

The accrual and use of sick leave shall be governed by the following provisions:

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

2. Temporary employees shall be allotted 5 days or 40 hours at the beginning of each 12‐month period. An employee is only eligible to use the leave after 90 days of employment with the Town. Paid sick leave shall be taken in increments of no less than two (2) hours.

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

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

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

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

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32 6.3 CATASTROPHIC LEAVE
On an annual basis, employees may “donate” up to forty (40) hours of their accrued sick leave to a catastrophic leave bank. Catastrophic leave may be granted to an employee at the discretion of the City Manager when the employee is absent because of a serious illness, injury, pregnancy, short‐term disability, exposure to contagious disease or caring for a sick member of the employee’s immediate family. Such leave will be granted only when the employee has exhausted all accrued paid leave. The maximum amount of catastrophic leave an employee may receive is capped at one hundred and sixty (160) hours per qualifying event.

1. Donations are strictly voluntary and must be made in whole-hour increments.

2. Only sick leave may be donated. Vacation, administrative, compensatory time, or floating holiday hours are not eligible for donation.

3. Donors must retain a minimum of forty (40) hours of accrued sick leave after the donation.

4. Donated hours, once transferred to the catastrophic leave bank, are irrevocable and may not be returned to the donor.

5. Human Resources shall administer the program, maintain confidentiality of donors and recipients, and ensure compliance with payroll procedures.

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

If the holiday falls upon a Saturday, the Friday preceding shall be observed as the holiday.

If a non‐exempt employee is required to work on the actual holiday, the employee will be compensated double time. Non-exempt employees are not entitled to additional holiday credits or floating holiday hours, as double time compensation is already provided.

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

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

6.4.1 Floating Holidays
If an exempt employee is required to work on a recognized holiday to meet Town obligations, and with prior approval from the Department Head or City Manager, the employee may convert that workday into a Floating Holiday. This Floating Holiday must be used within the same calendar year in which it is earned and cannot be cashed out or carried over to the next year.

Each employee is entitled to 24 hours of floating holiday credit per calendar year, equivalent to three 8-hour workdays. These hours may be used at the employee’s discretion, subject to supervisor approval.

The floating holiday credit is provided in lieu of the following observed holidays:

1. Columbus Day – 8 hours

2. Cesar Chavez Day – 8 hours

3. Juneteenth – 8 hours
Employees may choose to use their floating holiday hours on any day they wish, including the holidays listed above.

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

Vacation time shall be initially earned at the rate of eight (8) hours for each month of service, or ninety‐six (96) hours per year. Commencing with the third‐year of employment with the Town, including introductory period, an employee shall earn ten (10) hours for each month of service. Commencing with the sixth‐year of service with the Town, including introductory period, an employee shall earn thirteen and one third (13.33) hours for each month of service. Commencing with the ninth year of service with the Town, including introductory period, an employee shall earn sixteen and two third (16.67) hours for each month of service. Commencing with the twelfth year of service with the Town, including introductory period, an employee shall earn twenty (20) hours for each month of service.

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34 In summary vacation accrues as follows and each year thereafter shall be credited as follows:

Years of
Service
Vacation Hours Earned
Per Month
Vacation Hours
Earned Per Year
Vacation Days Earned Per
Year
0‐2 8 96 12
2‐5 10 120 15
5‐8 13.33 160 20
8‐11 16.67 200 25
11+ 20 240 30
At time of hiring, the City Manager may provide a new employee credit for years of service in another public agency for purposes of determining eligibility for vacation accrual.

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

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

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

However, at no time may an employee have a total balance of vacation hours in excess of

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35 320 hours. When the employee reaches the maximum accrual, they shall cease earning vacation until the vacation leave balance falls below 320 hours. If they use up sufficient benefits to fall below the benefit cap, they will resume accruing benefits for future service beginning with the following month.

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

6.5.1 Vacation Cashout
Once each calendar year an employee may cash out up to their full annual accrual of vacation time, provided that the employee has taken 40 hours of leave (Vacation or Administrative) in the previous 12 months and retains 80 hours of accrued leave.

1. To be eligible for cash out vacation, employees must pre‐elect the number of vacation hours they will cash out during the following calendar year up to their full accrual, prior to the start of that calendar year. The election will apply only to vacation hours accrued in the next tax year and eligible for cash out. The election to cash out vacation hours in each designated year will be irrevocable. This means that employees who elect to cash out vacation hours must cash out the number of accrued hours pre‐designated on the election form provided by the Town.

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

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

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

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

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

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36 6.7 STANDBY ASSIGNMENT AND COMPENSATION
The City Manager may schedule standby assignments for employees on an as‐needed basis. Standby assignments shall be made to provide services outside the regular work schedule. Standby shall be assigned for the months of October through April, with additionalstandby periodsto be determined on an as‐needed basis at the discretion of the City Manager.

Using a list of non‐exempt maintenance employees, standby assignments shall be offered by rotation based on seniority. Each rotation will last for seven (7) days. Assignments of standby duty is recommended for one full week (Sunday to Saturday) at the discretion of the City Manager and the department director. Seniority for the purpose of this section is defined as total continuous service to the Town. The Town will first ask for standby assignment volunteers. In the absence of volunteers, the Town shall assign standby to employees. To the best of its ability, the Town shall schedule standby assignments as far in advance as possible. In an effort to encourage standby assignment volunteers, the Town shall provide additional compensation for standby assignments at a rate of fifty dollars ($50) per day of standby assignment. Standby assignment compensation is provided in addition to the employees overtime pay. Town shall provide a cell phone to employees or those employees electing to receive a stipend may use their own cell phone while on standby assignment.

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

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

6.9 BEREAVEMENT LEAVE
Employees shall be allowed paid time off in the event of a death in the immediate family.

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

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37 bereavement leave.

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

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

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

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

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38 6.13 CALIFORNIA FAMILY RIGHTS ACT (CFRA ‐ SB 1383)

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

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

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

C. To care for the employee’s newborn child, within one (1) year of the birth (also known as child/baby bonding), or for the placement of a child for adoption or foster care, within one (1) year of placement.

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

6.13.2. Definitions
A. "Child" ‐ means a person either under 18 years of age, or an adult dependent child. An employee's "child" is a biological, adopted, foster, step–child or legal ward or to whom the employee stands in loco parentis.

Either day‐to‐ day care or financialsupport may establish an in loco parentis relationship where the employee intends to assume responsibilities of a parent with regard to a child.

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

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

1. Inpatient care; or

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

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

4. Prenatal care by a health care provider.

D. "Spouse or registered domestic partner" ‐ If both spouses or registered domestic partners (as defined or recognized under state law) work for the Town, their total leave in any twelve (12)‐ month period may be limited to twelve (12) weeks each if the leave is taken for either the birth or placement for adoption or foster care of a child or to care for a sick parent."Continuing Treatment" ‐ means:

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

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

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

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

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40 6.13.3. Coverage and Eligibility
To be eligible for CFRA an employee must:

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

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

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

2. The employee may be required to transfer temporarily to a position with equivalent pay and benefits that better accommodates recurring periods of leave when the leave is planned based on scheduled medical treatment.

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

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

6.13.5. Substitution of Paid Vacation Time
A. If an employee requestsleave for any reason permitted underthis policy,

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41 they must exhaust all accrued leaves (except sick leave) in connection with the leave. The exhaustion of accrued leave will run concurrently with the leave under this policy.

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

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

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

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

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

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42 fifteen (15) days after leave is requested, or as soon as is reasonably possible.

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

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

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

B. If applicable, employees may make the appropriate contributions for continued coverage under their health insurance plans either through payroll deduction or by direct payment to the Finance Department. The employee will be advised in writing at the beginning of the leave period as to the amount and method. Employee contribution amounts are subject to any change in rates that occurs while the employee is on leave.If an employee's contribution is more than thirty (30) days late, the Town may terminate the employee's insurance coverage.

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

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

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

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

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

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

6.13.10. Family/Medical Leave Forms to Be Submitted By The Employee Employees must fill out the following applicable formsin connection with leave under this policy.

1. Requestfor Family/Medical Leave Form

2. Certification of Physician or Practitioner

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

4. Fitnessfor Duty to Return from Leave

5. Certification of Qualifying Exigency for Military Family Leave

6.14 PREGNANCY DISABILITY LEAVE
An employee unable to work due to pregnancy is eligible for up to four (4) months of unpaid pregnancy disability leave (PDL) as defined by law, so long as the employee's attending physician certifiesthat they are physically unable to work due to pregnancy or a pregnancy‐

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

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

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

Under the California Family Rights Act (CFRA) eligible employees are entitled up to 12 additional weeks of leave to bond with the baby. To be eligible for the CFRA bonding leave, employee must be employed by the Town for at least one year and have worked at least 1250 hours during the year preceding the leave. The leave is unpaid, but the employee may use floating holiday, compensatory time and vacation leave in order to receive pay during the leave. The employee may use sick leave for a baby’s illness or doctor’s appointment when applicable to receive pay during the leave. Bonding leave must be used within one year of the birth of the baby.An employee who plans to take PDL must give reasonable notice (not lessthan 4 weeksif anticipated or assoon as possible if the leave is unforeseen) before the date employee expects to take the leave.

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

Failure to return to work after the authorized four‐month leave period results in the

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45 employee having no reinstatement rights.

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

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

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

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

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

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

6.16 SUPERVISORY DISCRETION
Department heads shall have the discretion to place employees on sick leave when in the

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46 judgment of the department head, the presence of the employee at work would endanger the health and welfare of other employees or where the illness or injury of the employee interferes with the performance of such employee's duties.

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47 SECTION 7

COMPENSATION AND PAYROLL PRACTICES

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

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

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

7.3 AUTHORIZATION OF OVERTIME
Forthe purpose of this provision, overtime includes double‐time, call‐out, and stand‐by.

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

1. To take care of operating emergencies;

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

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

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

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Personnel Rules & Regulations
48 5. On occasions as deemed necessary in the judgment of the responsible supervisor.

Non–exempt employeesshall not be allowed to perform any overtime work unless such work has been authorized in‐writing by their supervisor.

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

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

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

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

7.4 DEFINITION OF EXEMPT EMPLOYEE
Exempt employees are paid on a salary basis and are not subject to the overtime pay requirements of the Fair Labor Standards Act. The Town has determined that various executive, administrative and/or professional employees are exempt from the overtime requirements of the Fair Labor Standards Act (FLSA). Employees in the following job classifications are considered exempt:
● City Manager
● Assistant City Manager

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

Exempt employees shall be paid "emergency overtime" for each hour worked in a proclaimed/ declared emergency performing disaster response activities so long as the hour, when combined with the hours of the employee's regular work in the same work week, exceeds 40 hours. For example, if an employee actually works a total of fewer than 40 hours of combined regular work and disaster relief work in the applicable week (e.g. due to vacation or sick leave taken that same week), the employee would not be entitled to any emergency overtime. And, regardless of whether an employee worked 40, 45 or 50 hours of regular work in the same week in which the employee also worked l 0 hours of disaster relief, the employee would be entitled to 10 hours of emergency overtime.

The EOC Director, working with Human Resources shall strive to ensure overtime is equitably assigned to all qualified personnel.

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

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

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

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

7.4.1 Exempt Employee Workday
In accordance with the Fair Labor Standards Act (FLSA) and California law, exempt employees are paid on a salaried basis and are expected to work the full schedule necessary to carry out their duties, which generally means a full workday and, when required, additional hours to meet the needs of the Town. This expectation is a fundamental condition of exempt employment and is not altered by this provision.

Consistent with the FLSA salary-basis test, exempt employees’ pay will not be reduced for partial-day absences. For payroll and leave accounting purposes, exempt employees shall be considered to have worked a full day if they perform more than half of the scheduled workday. If an exempt employee works half a day or less, the absence will be recorded as a full-day absence and charged to accrued leave (vacation, sick leave, or administrative leave, as applicable).

This clarification is solely for compliance with the FLSA and for internal leave accounting purposes. It shall not be construed to authorize or condone routine partial-day schedules. Supervisors retain the authority to hold employees accountable for attendance, availability, and performance expectations.

7.5 MISCELLANEOUS PAY PROVISIONS

7.5.1. Out‐of‐Classification Pay

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Personnel Rules & Regulations
51 Employees who by assignment from their department head or the City Manager perform the essential functions of a position with a higher salary classification than which they are regularly employed shall receive increased compensation beginning on the first work day that the employee performs such functions; said increased compensation will provide the employee an increase ranging from five percent to ten percent of their current base pay. The specific amount of the increase will be determined based on the assignment’s length, complexity, and workload. Determinations regarding whether an employee is entitled to out‐of‐classification pay shall be made in the sole discretion of the City Manager. Out‐of‐classification assignments may be terminated by a department head or the City Manager at any time. Out of class assignments shall be limited to nine‐hundred and sixty (960) hours per fiscal year in accordance with Government Code Section 20480.

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

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Town of Los Altos Hills
Personnel Rules & Regulations
52 7.5.3 Salary Placement/Advancement
The Compensation Plan is designed to establish a reasonable range of wages for each position of employment, and allows for adequate budgetary appropriations to be made for salary costs each fiscal year. The plan provides flexibility in wages in order to compensate for an employee’s increased competence, experience and value added to the organization. No salary advancement shall be made so as to exceed any maximum rate established in the Compensation Plan for the employee’s position.

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

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

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

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

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Town of Los Altos Hills
Personnel Rules & Regulations
53 7.5.3.3 Cost of Living Adjustments (COLA)
Cost of Living Adjustments (COLA), if approved by the City Council through the annual budget process or other Council action, shall become effective on July 1 of the applicable fiscal year unless otherwise directed by the City Council.

COLA adjustments are separate from salary advancement reviews and merit-based increases described in Section 7.5.3.2.

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Town of Los Altos Hills
Personnel Rules & Regulations
54 7.5.4 Workweek
The basic work week for full–time, non‐exempt employees shall be forty (40) hours, rendered in units of eight (8) hours per day in a work‐week which begins on Sunday at midnight and ends on the consecutive Saturday at 11:59 p.m.

Counter hours will be open from Monday through Thursday from 9am – 4pm with 1 hour lunch from 12pm – 1pm.

The Town recognizes that flexible work arrangements can support both employee work-life balance and the effective delivery of public services.

Approval decisions will take into account operational needs, the nature of the employee’s duties, and the employee’s performance, and will be made in a fair and consistent manner. To ensure continuity of operations and collaboration, employees are generally expected to be in the office from Tuesday through Thursday, unless otherwise approved.

Employees may, with approval of the City Manager and their department director or supervisor, be authorized to work remotely 1 day a week (Monday or Friday) and/or work a “9/80” work schedule, or work a “4/10” work schedule. The City Manager may authorize an additional remote work day or grant temporary exceptions to standard schedules based on operational needs or employee circumstances. An example where this could be applicable is if an employee requested to work from home more than regularly scheduled on a temporary basis to care for an ill dependent, or if an employee has a contagious illness that prevents them from being at their worksite but otherwise does not prevent them from working. In these cases, consideration will be given to employees based on their ability to effectively serve the community and meet their job responsibilities from a remote location.

Remote work approval may be modified or revoked at any time based on operational needs, performance concerns, or other legitimate business reasons. Employees approved for remote work are expected to maintain full productivity, remain accessible during regular work hours, respond promptly to email and other communications, and comply with all Town technology use and information security policies.

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

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

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

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

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

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

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

7.6.2 Part‐Time Regular Employees
Employees holding a part‐time position shall accrue vacation, sick leave, and holiday credits in the proportion that their average workweek in relation to that of full‐time employees. To the extent possible, other benefits afforded full‐ time positions shall also be pro‐rated.

Employees scheduled to work in positions of less than 20 hours per week shall not be provided any benefits other than those required by state or federal law.

7.6.3 Other Employees

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Personnel Rules & Regulations
56 Employees holding a temporary, provisional, emergency or other non‐regular appointment or position shall not be provided any benefits other than those required by State or Federal law.

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

PERFORMANCE EVALUATIONS

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

The City Manager shall prescribe forms for such performance evaluations and shall be responsible for assuring that such evaluations are adequate to provide information to both the employee and the Town for the purposes set forth in this section.

A satisfactory performance evaluation is required in order to be eligible for a salary increase or promotion.

Performance evaluations are intended to provide constructive feedback, guide professional development, and inform decisions about compensation and advancement.

If significant performance deficiencies are identified, the supervisor may initiate corrective or disciplinary action separately, in accordance with Section 11 of these Rules.

Department heads or manager/supervisor shall rate the performance of each employee; however, the department heads may delegate the responsibility forrating the performance of specified employees in their departmentsto that employee's supervisor. Interim reports may be completed as necessary when changes in work performance occur. Each employee shall be informed in such reports of their strengths and weaknesses. Each performance report shall be discussed with the employee. The employee must sign the report, acknowledging that his performance evaluation has been reviewed with them. Such signature shall not necessarily mean they fully endorse the contents of said report. Neither the performance evaluation process nor the performance reports shall be subject to any grievance and/or appeal procedure.

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

TRANSFER, RESIGNATION, LAYOFF, REINSTATEMENT, REEMPLOYMENT

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

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

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

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

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

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

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Town of Los Altos Hills
Personnel Rules & Regulations
59 9.4 LAYOFF POLICY AND PROCEDURE

9.4.1 Statement of Intent
Whenever, in the judgment of the City Council, it becomes necessary to abolish or eliminate any position or employment, the employee holding such position or employment shall be laid off or demoted without disciplinary action and without the right of appeal or ability to bring a grievance.

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

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

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

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

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

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Los Altos Hills City CouncilMay 14, 2026

Los Altos Hills City Council
May 14, 2026