The Services are currently estimated to start within two (2) weeks but no later than four (4) weeks from signatures and have an estimated end date of four months after project kick off (“End Date”) or on other dates mutually agreed to between you and OpenGov.
2.8. Illustrative Project Timelines
The typical project timelines are for illustrative purposes only and may not reflect your use cases.
2.9. Charges
The Services will be conducted on a Fixed Price basis.This fixed price is exclusive of any travel and living expenses and other reasonable expenses incurred in connection with the Services. All charges are exclusive of any applicable taxes.
2.10. Offer Expiration Date
This offer will expire on November 30, 2023 unless extended by OpenGov in writing. 2023 Statement of Work v1.1.1
8
Appendix A: Engagement Charter
A-1: Communication and Escalation Procedure
Active engagement throughout the implementation process is the foundation of a successful deployment. To help assess progress, address questions, and minimize risk during the course of deployment both parties agree to the following:
● Regular communication aligned to the agreed upon project plan and timing. ○ OpenGov expects our customers to raise questions or concerns as soon as they arise. OpenGov will do the same, in order to be able to address items when known. ● Executive involvement
○ Executives may be called upon to clarify expectations and/or resolve confusion. ○ Executives may be needed to steer strategic items to maximize the value through the deployment.
● Escalation Process:
○ OpenGov and Customer agree to raise concerns and follow the escalation process, resource responsibility, and documentation in the event an escalation is needed to support issues raised
● Identification of an issue impeding deployment progress, outcome or capturing the value proposition, that is not acceptable. ● Customer or OpenGov Project Manager summarizes the problem statement and impasse.
● Customer and OpenGov Project Managers jointly will outline solution, acceptance or schedule Executive review.
● Resolution will be documented and signed off following Executive review. ● Phase Sign-Off
○ OpenGov requests sign-offs at various stages during the implementation of the project. Once the Customer has signed-off, any additional changes requested by Customer on that stage will require a paid change order for additional hours for OpenGov to complete the requested changes.
A-2: Change Order Process
This SOW and related efforts are based on the information provided and gathered by OpenGov.
Customers acknowledge that changes to the scope may require additional effort or time, resulting in additional cost. Any change to scope must be agreed to in writing or email, by both Customer and OpenGov, and documented as such via a:
● Change Order - Work that is added to or deleted from the original scope of this SOW.
Depending on the magnitude of the change, it may or may not alter the original contract amount or completion date and be paid for by Customer. Changes might include:
o Timeline for completion
o Sign off process
o Cost of change and Invoice timing
o Amending the SOW to correct an error.
2023 Statement of Work v1.1.1
9
o Extension of work as the complexity identified exceeds what was expected by Customer or OpenGov.
o Change in type of OpenGov resources to support the SOW.
A-3: Deliverable Materials Acceptance Procedure
Deliverable Materials as defined herein will be reviewed and accepted in accordance with the following procedure:
● The deliverable Material will be submitted to your Project Manager. ● Your Project Manager will have decision authority to approve/reject all project Criteria, Phase Acceptance and Engagement Acceptance.
● Within five (5) business days of receipt, your Project Manager will either accept the deliverable Material or provide OpenGov’s Project Manager a written list of requested revisions. If OpenGov receives no response from your Project Manager within five (5) business days, then the deliverable Material will be deemed accepted. The process will repeat for the requested revisions until acceptance.
● All acceptance milestones and associated review periods will be tracked on the project plan.
● Both OpenGov and Customer recognize that failure to complete tasks and respond to open issues may have a negative impact on the project.
● For any tasks not yet complete, OpenGov and/or Customer will provide sufficient resources to expedite completion of tasks to prevent negatively impacting the project. ● Any conflict arising from the deliverable Materials Acceptance Procedure will be addressed as specified in the Escalation Procedure set forth in Appendix A-1. As set forth in the “Customer Delays” provision of the Agreement, if there are extended delays (greater than 10 business days) in Customer’s response for requested information or deliverable; OpenGov may opt to put the project on an "On Hold" status. After the Customer has fulfilled its obligations, Professional Services can be resumed and the project will be taken off the "On-Hold" status.
● Putting a project “on Hold” may have several ramifications including, but not restricted, to the following:
○ Professional Services to the customer could be stopped; ○ Delay to any agreed timelines; or
○ Not having the same Professional Services team assigned. 2023 Statement of Work v1.1.1
10 Page 152
Appendix B: Implementation Activities
B-1: OpenGov Procurement Suite
Instance Creation
Procurement Suite
Description OpenGov Responsibilities Customer Responsibilities Website Instance
Creation
OpenGov will:
● Build customer portal and
upload Customer’s logo.
Customer will:
● Provide logo.
● Confirm access to the Portal.
Technical Project Review
Description OpenGov Responsibilities Customer Responsibilities Technical Project
Review
OpenGov will:
● Provide up to one (1) two-hour
working session at the
beginning of the project to:
o Finalize list of
templates
o Review technical
requirements
o Provide documentation
on requirements and
processes
OpenGov Assumptions:
● Boilerplate language will be
provided within two (2) weeks
immediately following the
kick-off meeting.
Customer will:
● Identify relevant participants
for attendance.
● Confirm deliverables.
● Gather and provide relevant
data for the project.
Supplier Engagement, Evaluation and Award Configuration Description OpenGov Responsibilities Customer Responsibilities Vendor Portal OpenGov will: Customer will:
● Allocate resources to create
the Vendor Portal.
2023 Statement of Work v1.1.1
11
● Provide the Customer with
iframe code and documentation
to create the Vendor Portal.
● Import the list of vendors
provided by Customer.
OpenGov Assumptions:
● Customer will provide a
complete and accurate vendor
list for import to OpenGov.
OpenGov clean up/correction of
imported files are not included
in the scope of this project.
● Provide vendor email list and
send vendor email/letter.
● Ensure that Vendor Portal
will be active before
OpenGov begins
configuration of templates
or the Solicitation
Development phase.
Generic Template OpenGov will:
● Deploy generic templates
● Provide OpenGov's “Paper to
Paperless Language Transition
Guide” to assist transition from
paper to electronic.
Customer will:
● Provide a copy of the next
solicitation document.
● Provide information to
complete the generic
solicitation upload template
including forms and an
example recent solicitation.
● Provide the category code
set used by the agency
(NIGP, NAICS, or UNSPSC).
Solicitation Development Configuration
Description OpenGov Responsibilities Customer Responsibilities Solicitation
Development
Solution
OpenGov will:
● Review and confirm the
Solicitation Templates and
forms provided by Customer.
● Work with Customer to design
and get sign off on the first
template.
● Following the sign off of the
first template, configure the
remaining templates in the
system.
OpenGov Assumptions:
Customer will:
● Provide templates with
standard boilerplate
language.
● Provide forms associated
with solicitation templates.
● Provide admin documents.
● Select the first solicitation
type (usually ITB or RFP), to
work with OpenGov for the
design
● Sign off on the first
template before beginning
the subsequent templates.
2023 Statement of Work v1.1.1
12
● OpenGov will configure up to
One (1) Solicitation
Template(s) with standard
boilerplate language:
○ Request for Proposal
for Services
● Validate and provide signoff
on Solicitation Templates.
Intake Configuration
Description OpenGov Responsibilities Customer Responsibilities Intake Process OpenGov will:
● Review current intake
Process.
● Perform basic intake
Training.
● Perform a gap analysis
● Configure “Review/
Approval” workflow
defaults for each
department.
● Build the Intake/Project
Request Template.
Customer will:
● Provide OpenGov with any
Intake/Project RequestForms
(templates) in current use.
● Validate and provide signoff on
Intake/ Project Request
template.
Contract Management Configuration
Description OpenGov Responsibilities Customer Responsibilities Create and Manage
Contracts
OpenGov will:
● Provide one (1) - one hour
Overview of the Contract
Management Solution to
Customer’s System
Administrator(s).
● Provide guidance and
instruction to System
Administrator on creating
and managing contracts.
Customer will:
● Attend scheduled System
Overview
● Create and manage contract
records in the system with
guidance from OpenGov.
Historical and/or
Active Contracts
OpenGov will:
● Provide a mapping
document for the metadata
of contracts to be uploaded
into the system.
Customer will
● Provide contract log per the
mapping document.
2023 Statement of Work v1.1.1
13
● Import the contract
records listed in the
contract log.
OpenGov Assumptions:
● Customer will provide a
complete and accurate
contracts log for import to
OpenGov. OpenGov clean
up/correction of imported
logs are not included in the
scope of this project.
Contract Template
Deployment
OpenGov will:
● Review & configure agreed
upon contract templates.
OpenGov Assumptions:
● OpenGov will configure up
to One (1) Contract
Template(s) with standard
boilerplate language:
○ Services
Agreement
Customer will:
● Provide templates with
standard boilerplate language.
● Validate and provide signoff on
Contract templates.
Working Sessions and Trainings
Description OpenGov Responsibilities Customer Responsibilities Procurement
Working Sessions
OpenGov will:
● Assign practice exercises
to Customer to gain
familiarization.
● Assist Customer during
first real-life solicitation
posting, and opening (if
during deployment).
● Respond to questions
regarding configured
system functionality.
Customer will:
● Complete practice exercises
to gain familiarization.
● Identify internal Admin Users
& security permissions for all
other users.
Procurement
Training
OpenGov will:
● Provide training on system
functionality. Topics
include:
Customer will:
● Attend training sessions as
scheduled by the Project
Manager and agreed to in the
Project Plan.
2023 Statement of Work v1.1.1
14
○ Creating Bids with
Generic Templates
○ Live Bid
Management &
Vendor Experience
○ Evaluation and
Awarding
○ Writing
Solicitations using
templates
○ Contract Document
Developer Tools
○ Intake Training and
Workflow
Appendix C: Technical Requirements
C-1: OpenGov Procurement Suite
Procurement Suite
Description Technical Requirements
Logo ● .png or .jpg file
● At least 300KB but not larger than 500KB
Vendor List ● Single Flat file
● .csv or .xlsx format
Historical/Active
Contracts
● Single Flat file
● .csv or .xlsx format
Templates with
boilerplate
language
● PDF or Word format
Intake/Project
Request Templates
● PDF or Word format
Admin Documents ● PDF or Word format
2023 Statement of Work v1.1.1
15
PREPARED BY: Gitta Ungvari
Finance Director
Reviewed by: Town Manager, Assistant Town Manager, and Town Attorney 110 E. Main Street Los Gatos, CA 95030 ● 406-354-6832
www.losgatosca.gov
TOWN OF LOS GATOS
TOWN COUNCIL AGENDA REPORT
MEETING DATE: 11/21/2023
ITEM NO: 14
DATE: November 14, 2023
TO: Mayor and Town Council
FROM: Laurel Prevetti, Town Manager
SUBJECT: Receive the Monthly Financial and Investment Report for September 2023 RECOMMENDATION:
Receive the Monthly Financial and Investment Report for September 2023.
BACKGROUND:
California Government Code Section 41004 requires that the Town Treasurer submit to the Town Clerk and the legislative body a written report and accounting of all receipts, disbursement, and fund balances. The Finance Director assumes the Town Treasurer role.
Attachment 1 contains the September 2023 Monthly Financial and Investment Report which fulfills this requirement. This report will be presented to the Finance Commission at its December 11, 2023 regular meeting.
DISCUSSION:
September 2023 Monthly Financial and Investment Report includes a Fund Balance Schedule, representing estimated funding available for all funds at the end of the September 2023. The fund balances are estimated at a point in time and will be finalized at the final close of the fiscal year.
Please note that the amount in the Fund Schedule differs from the Portfolio Allocation and Treasurer’s Cash Fund Balances Summary schedule because assets and liabilities are components of the fund balance.
As illustrated in the summary below, Total Cash is adjusted by the addition of Total Assets less the amount of Total Liabilities to arrive at the Ending Fund Balance – which represents the actual amount of funds available.
PAGE 2 OF 3
SUBJECT: Monthly Financial and Investment Reports September 2023 for Fiscal Year 2023/24
DATE: November 14, 2023
DISCUSSION (continued):
As of September 30, 2023, the Town’s financial position (Assets $81.67M, Liabilities $29.34M, and Fund Equity $52.34M) remains strong and there are no issues meeting financial obligations in the near future.
As of September 30, 2023, the Town’s weighted portfolio yield for investments under management was 3.77% which was 18 basis points above the Local Agency Investment Fund (LAIF) yield of 3.53% for the same reporting period. Currently, the LAIF portfolio’s weighted average maturity (WAM) is 256 days versus the Town’s longer WAM of 495 days. The longer maturity (WAM) for Town assets under management reflects the Town’s strategy to take advantage of higher yields associated with longer maturities balanced with shorter term yields available on investments held with the State’s LAIF. The Town’s weighted average rate of return on investments under management of 3.77% at the close of August was 6 basis points higher when compared to the prior month’s return of 3.71 % reported as of August 31, 2023.
Since December 31, 2022, LAIF yields had climbed from 217 basis points (2.17%) to 353 basis points (3.53%) through the end of September 2023.
Staff, in coordination with the Town’s investment advisor, continued primarily replacing maturing investments with shorter to medium term maturities in the two- to three-year maturity range. These investments capture current yields that exceed the rates expected to be earned in the LAIF pool during that same time period. The State LAIF pool typically lags the market when current market yields are either increasing or decreasing.
On March 22, 2023, the Federal Reserve voted to approve a ¼ percentage basis point increase from 4.75% to 5.00%. This action was followed with additional hikes in May 2023 from 5.00% to 5.25% and July from 5.25 % to 5.5 %. Through these actions over time, the Federal Open Market Committee’s (FOMC) goal is to bring year to year inflation to its targeted level of 2%.
Labor market conditions remained tight overall. The unemployment rate unexpectedly increased from 3.5% to 3.8%, which was partly driven by the participation rate increasing from
62.6% to 62.8%.
The Town's investments are in compliance with the Town's Investment Policy dated February 21, 2023, and also in compliance with the requirements of Section 53600 at seq. of the Total Cash $ 66,196,260
Plus: Assets $ 15,479,675
Less: Liabilities $ (29,335,967)
Estimated Fund Balance $ 52,339,969
Reconciling Cash to Fund Balance - September 30, 2023
PAGE 3 OF 3
SUBJECT: Monthly Financial and Investment Reports September 2023 for Fiscal Year 2023/24
DATE: November 14, 2023
DISCUSSION (continued):
California State Code. Based on the information available, the Town has sufficient funds to meet the cash demands for the next six months.
CONCLUSION:
Receive the Monthly Financial and Investment Report for September 2023.
ATTACHMENT:
1. Financial and Investment Report (September 2023)
Weighted Average YTM Portfolio Yield on Investments
under Management 3.77%
Weighted Average Maturity (days) 495
This Month Last Month One year ago
Portfolio Allocation & Treasurer's Cash Balances $66,196,260 $69,093,001 $62,736,952 Cert. of Participation 2002 Lease Payment Fund
Managed Investments $49,276,078
Local Agency Investment Fund $11,138,242
Reconciled Demand Deposit Balances $5,781,940
Portfolio Allocation & Treasurer's Cash Balances $66,196,260 Benchmarks/ References:
Town's Average Yield 3.77% 3.71% 1.80%
LAIF Yield for month 3.53% 3.43% 1.51%
3 mo. Treasury 5.46% 5.47% 3.29%
6 mo. Treasury 5.55% 5.51% 3.97%
2 yr. Treasury 5.05% 4.87% 4.28%
5 yr. Treasury (most recent) 4.61% 4.26% 4.09%
10 Yr. Treasury 4.57% 4.11% 3.84%
Town of Los Gatos
Summary Investment Information
September 30, 2023
0 - 1 year
60%
1 - 2 years
8%
2 - 3 years
11%
3 - 5 years
21%
Portfolio Maturity Profile
Compliance: The Town's investments are in compliance with the Town's investment policy dated February 21, 2023 and also in compliance with the requirements of Section 53600 at seq. of the California State Code. Based on the information available, the Town has sufficient funds to meet the cash demands for the next six months.
ATTACHMENT 1
Month YTD
Cash & Investment Balances - Beginning of Month/Period $ 69,093,000.93 $ 78,384,947.79 Receipts 6,049,493.39 17,050,953.33
Disbursements (8,946,234.68) (29,239,641.48)
Cash & Investment Balances - End of Month/Period $66,196,259.64 $66,196,259.64 Portfolio Allocation Amount % of Portfolio
Max. % or $ Allowed
per State Law or Policy
BNY MM $134,420.97 0.22% 20% of Town Portfolio
US Treasury Notes $17,490,610.47 28.95% No Max. on US Treasuries Government Agency Debenture Notes $17,580,861.65 29.10% No Max. on Non-Mortgage Backed Corporate Medium Term Bonds $14,070,185.01 23.29% 30% of Town Portfolio Local Agency Investment Fund $11,138,241.57 18.44% $75 M per State Law Subtotal - Investments 60,414,319.67 100.00%
Reconciled Demand Deposit Balances 5,781,939.97
Total Portfolio Allocation & Treasurer's Cash Balances $66,196,259.64 Town of Los Gatos
Portfolio Allocation & Treasurer's Cash Balances
September 30, 2023
BNY MM
0.22%
US Treasury Notes
28.95%
Government Agency Debenture
Notes
29.10%
Corporate Medium Term Bonds
23.3%
Local Agency Investment Fund
18.4%
Portfolio Investment Allocation
$62.7 M $66.2 M
$0.0 M
$10.0 M
$20.0 M
$30.0 M
$40.0 M
$50.0 M
$60.0 M
$70.0 M
$80.0 M
$90.0 M
Sep-22 Oct-22 Nov-22 Dec-22 Jan-23 Feb-23 Mar-23 Apr-23 May-23 Jun-23 Jul-23 Aug-23 Sep-23 Treasurer's Fund Balances
August 2023 August 2023 August 2023
Beginning Deposits Interest/ Ending
Balance Realized Gain/Adj. Earnings Withdrawals Balance Non-Treasury Funds:
Cert. of Participation 2002 Series A Reserve Fund $ 701,134.51 $ 2,871.01 $ 704,005.52 Note 1 Cert. Of Participation 2010 Ser A Lease Pymt Fund 780.70 3.19 783.89 Note 1 Cert. of Participation 2002 Lease Payment Fund 431.44 1.74 433.18 Note 1 Cert. of Participation 2010 Series Reserve Fund 1,329,825.63 5,860.55 1,335,686.18 Note 2 Total Restricted Funds: $ 2,032,172.28 $ - $ 8,736.49 $ - $ 2,040,908.77 CEPPT IRS Section 115 Trust 1,396,058.25 (44,155.59) $ 1,351,902.66 Grand Total COP's and CEPPT Trust $ 3,428,230.53 $ - $ (35,419.10) $ - $ 3,392,811.43 These accounts are not part of the Treasurer's fund balances reported elsewhere in this report, as they are for separate and distinct entities.
Note 1: The three original funds for the Certificates of Participation 2002 Series A consist of construction funds which will be expended over the next few years, reserve funds which will guarantee the payment of lease payments, and a third fund for the disbursement of lease payments and initial delivery costs.
Note 2: The 2010 COP Funds are all for the Library construction, reserves to guarantee lease payments, and a lease payment fund for the life of the COP issue. The COI fund was closed in September 2010.
Note 3: The CEPPT Section IRS Section 115 Trust was established as an irrevocable trust dedicated to accumulate resources to fund the Town's unfunded liabilities related to pension and other p Town of Los Gatos
Non-Treasury Restricted Fund Balances
September 30, 2023
July 2023 $ 133,845.42
August 2023 129,679.93
September 2023 158,361.71
October 2023 -
November 2023 -
December 2023 -
January 2024 -
February 2024 -
March 2024 -
April 2024 -
May 2024 -
June 2024 -
$ 421,887.06
Interest by Month
Town of Los Gatos
Statement of Interest Earned
September 30, 2023
Town of Los Gatos Investment Schedule
September 30, 2023
Market Value Maturity Yield to Interest Interest Interest Days Deposit Par Original Market Above (Under) Purchased Date or Maturity Received Earned Earned to Institution CUSIP # Security Coupon Date Value Cost Value Cost Interest Call Date or Call to Date Prior Yrs. Current FY Maturity US Treasury 91282CAP6 US Treasury Note 0.13% 6/30/2021 1,000,000.00 995,390.63 998,130.00 2,739.37 10/15/2023 0.33% $ 2,240.44 $ 6,520.12 $ 821.71 15 US Treasury 91282CDD0 US Treasury Note 0.38% 1/13/2022 1,100,000.00 1,090,675.78 1,095,688.00 5,012.22 10/31/2023 0.85% $ 5,344.27 $ 13,599.56 $ 2,347.39 31 FFCB 3133EKMX1 Gov. Agency Debenture 2.23% 8/2/2019 1,000,000.00 1,014,400.00 986,790.00 (27,610.00) 2/23/2024 1.90% $ 96,075.83 $ 74,902.07 $ 4,825.62 146 FFCB 3133EMBE1 Gov. Agency Debenture 0.30% 10/8/2020 1,600,000.00 1,598,000.00 1,559,744.00 (38,256.00) 3/28/2024 0.34% $ 14,253.34 $ 14,655.57 $ 1,355.09 180 FFCB 3133EMCQ3 Gov. Agency Debenture 0.28% 10/16/2020 2,000,000.00 1,998,000.00 1,995,880.00 (2,120.00) 10/13/2024 0.31% $ 13,953.33 $ 16,496.92 $ 1,537.71 379 Apple 037833DB3 Corporate Bond 2.90% 12/20/2022 1,300,000.00 1,228,591.00 1,200,576.00 (28,015.00) 6/21/2027 4.19% $ 27,437.22 $ 28,170.97 $ 13,498.59 1360 Cert. of Participation 2002 Lea437076BM3 Corporate Bond 3.00% 8/4/2022 1,000,000.00 991,960.00 948,250.00 (43,710.00) 1/1/2026 3.04% $ 19,750.00 $ 29,252.66 $ 8,155.29 824 US Treasury 912828ZW3 US Treasury Note 0.25% 8/9/2022 350,000.00 322,096.88 321,671.00 (425.88) 6/30/2025 3.16% $ 779.89 $ 9,366.72 $ 2,651.50 639 IBM 459200JY8 Corporate Bond 3.00% 3/25/2021 1,000,000.00 1,071,040.00 983,010.00 (88,030.00) 5/15/2024 0.71% $ 64,166.67 $ 16,751.96 $ 1,863.58 228 FFCB 3133EN5V8 Gov. Agency Debenture 4.13% 1/17/2023 236,000.00 239,174.20 230,697.08 (8,477.12) 1/11/2027 3.76% $ 4,705.25 $ 4,016.30 $ 2,253.05 1199 US Treasury 91282CBT7 US Treasury Note 0.75% 9/30/2022 800,000.00 712,565.18 723,440.00 10,874.82 3/31/2026 4.14% $ 6,000.00 $ 23,165.06 $ 7,806.54 913 FFCB 3133ENP95 Gov. Agency Debenture 4.25% 9/30/2022 900,000.00 900,939.60 884,862.00 (16,077.60) 9/30/2025 4.14% $ 38,250.00 $ 28,374.86 $ 9,562.22 731 US Treasury 91282CDA6 US Treasury Note 0.25% 1/31/2022 1,100,000.00 1,085,222.44 1,100,000.00 14,777.56 9/30/2023 1.07% $ 4,570.74 $ 16,417.94 $ 2,932.91 0 US Treasury 91282CAW1 US Treasury Note 0.25% 7/15/2021 1,200,000.00 1,199,437.50 1,192,572.00 (6,865.50) 11/15/2023 0.27% $ 5,502.72 $ 6,348.21 $ 816.83 46 American Honda 02665WCZ2 Corporate Bond 2.40% 11/27/2019 1,000,000.00 1,012,410.01 975,410.00 (37,000.01) 6/27/2024 2.12% $ 96,733.34 $ 76,483.79 $ 5,367.28 271 JP Morgan Chase 46625HRS1 Corporate Bond 3.20% 9/23/2022 500,000.00 474,660.00 470,195.00 (4,465.00) 3/15/2026 4.70% $ 11,644.44 $ 17,865.15 $ 5,869.98 897 Honeywell Int'l. 438516BW5 Corporate Bond 2.30% 11/20/2019 1,000,000.00 1,014,660.00 972,140.00 (42,520.00) 7/15/2024 1.64% $ 85,483.33 $ 71,679.55 $ 5,003.43 289 Caterpillar Financial Serv 14913Q2V0 Corporate Bond 2.85% 2/23/2021 1,000,000.00 1,077,370.00 982,340.00 (95,030.00) 5/17/2024 0.44% $ 63,650.00 $ 10,677.18 $ 1,146.21 230 FNMA 3135G0V75 Gov. Agency Debenture 1.75% 10/17/2019 1,100,000.00 1,105,833.30 1,069,640.00 (36,193.30) 7/2/2024 1.63% $ 71,706.25 $ 66,718.86 $ 4,540.04 276 US Bancorp 91159HHV5 Corporate Bond 3.38% 12/24/2019 1,000,000.00 1,049,040.00 990,450.00 (58,590.00) 1/5/2024 2.12% $ 121,968.75 $ 75,978.33 $ 5,443.93 97 FFCB 3133EKQA7 Gov. Agency Debenture 2.08% 10/21/2019 1,000,000.00 1,019,780.00 966,710.00 (53,070.00) 9/10/2024 1.66% $ 80,831.11 $ 61,888.40 $ 4,223.84 346 FHLB 3135G05X7 Gov. Agency Debenture 0.38% 6/10/2022 1,200,000.00 1,102,952.40 1,097,712.00 (5,240.40) 8/25/2025 3.04% $ 5,437.50 $ 36,626.55 $ 8,752.32 695 US Treasury 912828ZL7 US Treasury Note 0.38% 4/12/2022 1,700,000.00 1,583,927.57 1,576,019.00 (7,908.57) 4/30/2025 2.72% $ 6,691.99 $ 54,017.06 $ 11,192.72 578 JP Morgan Chase 46625HJT8 Corporate Bond 3.88% 9/23/2019 1,400,000.00 1,485,414.00 1,390,060.00 (95,354.00) 2/1/2024 2.39% $ 209,163.89 $ 130,689.90 $ 8,737.99 124 US Treasury 912828V23 US Treasury Note 2.25% 11/29/2021 1,000,000.00 1,032,933.04 992,030.00 (40,903.04) 12/31/2023 0.66% $ 35,706.52 $ 10,649.43 $ 1,695.07 92 US Treasury 91282CBE0_2 US Treasury Note 0.13% 10/7/2021 1,000,000.00 994,768.98 985,000.00 (9,768.98) 1/15/2024 0.36% $ 2,214.67 $ 6,137.79 $ 894.89 107 FHLB 3130ALH98 Gov. Agency Debenture 0.25% 2/26/2021 1,000,000.00 997,610.00 978,880.00 (18,730.00) 2/26/2024 0.33% $ 6,250.00 $ 7,713.30 $ 830.94 149 FHLB 3130AQF65 Gov. Agency Debenture 1.25% 11/30/2022 1,300,000.00 1,160,559.40 1,161,030.00 470.60 12/21/2026 4.15% $ 9,072.92 $ 29,385.32 $ 12,752.12 1178 US Treasury 912828U57 US Treasury Note 2.13% 7/31/2019 1,000,000.00 1,011,875.00 994,550.00 (17,325.00) 11/30/2023 1.84% $ 81,458.33 $ 72,526.17 $ 4,666.02 61 US Treasury 912828X70 US Treasury Note 2.20% 12/30/2019 1,000,000.00 1,010,589.29 980,390.00 (30,199.29) 4/30/2024 1.75% $ 73,703.30 $ 68,481.11 $ 4,929.78 213 US Treasury 912828XT2 US Treasury Note 2.00% 10/31/2019 1,000,000.00 1,015,667.41 977,230.00 (38,437.41) 5/31/2024 1.64% $ 71,639.34 $ 60,792.37 $ 4,180.04 244 American Honda 02665WCQ2 Corporate Bond 3.63% 9/14/2021 950,000.00 1,012,871.00 949,601.00 (63,270.00) 10/10/2023 0.41% $ 54,143.40 $ 7,316.05 $ 1,029.17 10 FFCB 3133EJ3Q0 Gov. Agency Debenture 2.88% 8/28/2019 1,500,000.00 1,587,503.75 1,491,465.00 (96,038.75) 12/21/2023 2.12% $ 164,473.96 $ 87,804.46 $ 5,761.78 82 US Treasury 91282CBE0 US Treasury Note 0.13% 9/15/2021 650,000.00 647,615.46 640,250.00 (7,365.46) 1/15/2024 0.28% $ 1,488.12 $ 3,281.18 $ 462.28 107 FHLB 3130APJH9 Gov. Agency Debenture 0.75% 1/17/2023 1,000,000.00 907,010.00 901,670.00 (5,340.00) 10/28/2026 4.17% $ 2,104.17 $ 14,420.85 $ 8,089.74 1124 FFCB 3133EN5N6 Gov. Agency Debenture 4.00% 2/8/2023 1,700,000.00 1,706,732.00 1,648,677.00 (58,055.00) 1/6/2028 3.91% $ 27,955.56 $ 25,921.64 $ 16,794.30 1559 Freddie Mac 3137EAEX3 Gov. Agency Debenture 0.04% 5/1/2023 750,000.00 689,032.50 683,850.00 (5,182.50) 156.26 9/23/2025 3.97% $ (156.26) $ 4,222.09 $ 6,473.87 724 American Honda 02665WED9 Corporate Bond 4.70% 5/11/2023 600,000.00 608,856.00 583,122.00 (25,734.00) 1/12/2028 4.34% $ 4,778.33 $ 3,603.61 $ 6,630.64 1565 US Treasury 91282CEF4 US Treasury Note 2.50% 6/9/2023 1,500,000.00 1,416,626.12 1,393,470.00 (23,156.12) 3/31/2027 4.09% $ 11,577.87 $ 3,416.23 $ 14,966.36 1278 US Treasury 91282CGA3 US Treasury Note 4.00% 6/20/2023 2,100,000.00 2,080,558.59 2,056,530.00 (24,028.59) 1,147.54 12/15/2025 4.40% $ (1,147.54) $ 2,515.25 $ 23,140.27 807 Colgate-Palmolive 194162AR4 Corporate Bond 4.60% 7/14/2023 500,000.00 504,655.00 494,610.00 (10,045.00) 2/1/2028 4.37% $ 3,002.79 $ - $ 4,696.73 1585 FannieMae 3135G06G3 Gov. Agency Debenture 0.50% 7/14/2023 500,000.00 455,157.00 454,730.00 (427.00) 465.28 11/7/2025 4.63% $ (465.28) $ - $ 4,663.83 769 FFCB 3133EPQC2 Gov. Agency Debenture 4.63% 7/17/2023 500,000.00 501,957.50 495,405.00 (6,552.50) 7/17/2026 4.48% $ - $ - $ 4,617.76 1021 FFCB 3133EPBM6 Gov. Agency Debenture 4.13% 7/14/2023 600,000.00 596,220.00 585,246.00 (10,974.00) 8/23/2027 4.29% $ 2,681.25 $ - $ 5,485.47 1423 PNC Bank 69353RFJ2 Corporate Bond 3.25% 7/25/2023 1,000,000.00 921,490.00 905,030.00 (16,460.00) 270.83 12/23/2027 5.23% $ (270.83) $ - $ 9,228.89 1545 US Treasury 91282CFU0 US Treasury Note 4.13% 7/31/2023 1,300,000.00 1,290,660.60 1,272,271.00 (18,389.60) 13,406.25 10/31/2027 4.31% $ (13,406.25) $ - $ 9,328.83 1492 Toyota Motor Credit 89236TKL8 Corporate Bond 5.45% 8/25/2023 1,600,000.00 1,617,168.00 1,605,728.00 (11,440.00) 25,433.33 11/10/2027 5.16% $ (25,433.33) $ - $ 8,198.70 1502 Subtotal $ 49,536,000.00 $ 49,141,657.13 $ 47,942,751.08 $ (1,198,906.05) $ 40,879.49 $ 1,567,711.35 $ 1,298,850.54 $ 280,223.25 BNY MM Money Market 134,420.97 134,420.97 0.00 0.00% 1
LAIF State Investment Pool 11,138,241.57 10,985,733.86 (152,507.71) 3.53% 139,864.59 1 $60,414,319.67 $59,062,905.91 ($1,351,413.76) $40,879.49 $ 1,567,711.35 $ 1,298,850.54 $ 420,087.84 Matured Assets
PNC Financial 69349LAM0 Corporate Bond 3.80% 2/7/2022 1,000,000.00 1,033,470.00 7/25/2023 1.49% $ 55,733.33 $ 20,987.56 $ 1,032.85 US Treasury 91282CCN9 US Treasury Note 0.13% 1/13/2022 1,200,000.00 1,188,375.00 7/31/2023 0.75% $ 2,323.37 $ 13,176.45 $ 766.36 Toyota Motor Credit 89236THA6_1 Corporate Bond 1.35% 4/12/2021 500,000.00 510,580.00 8/25/2023 0.45% $ 15,993.75 $ 5,065.91 $ 350.67 Toyota Motor Credit 89236THA6 Corporate Bond 1.35% 1/11/2022 1,100,000.00 1,107,315.00 8/25/2023 0.94% $ 24,090.00 $ 15,144.57 $ 1,585.23 Total Investments "Matured" $ 1,799.21
Total Interest FY 23_24 Matured and Current $ 421,887.06 Maturity Profile Amount Percent
0-1 year $ 35,317,547.69 60%
1-2 years $5,006,976.85 8%
2-3 years $6,806,830.37 11%
3-5 years $ 12,197,742.32 21%
$59,329,097.23
Security Description Maturity Date Par/Shares Moody Rating S&P Rating Insight ESG Rating Environment Social Governance AMERICAN HONDA FINANCE 3.625% 10OCT2023 10/10/2023 $ 950,000 A3 A- 2 1 3 3 X JPMORGAN CHASE & CO 3.875% 01FEB2024 2/1/2024 $ 1,400,000 A1 A- 3 1 3 4 x US BANCORP 3.375% 05FEB2024 (CALLABLE 05JAN24) 2/5/2024 $ 1,000,000 A3 A 3 3 4 4 x IBM CORP 3.0% 15MAY2024 5/15/2024 $ 1,000,000 A3 A- 2 1 2 3 x CATERPILLAR FIN SERVICES 2.85% 17MAY24 5/17/2024 $ 1,000,000 A2 A 4 4 3 4 x AMERICAN HONDA FINANCE 2.4% 27JUN2024 6/27/2024 $ 1,000,000 A3 A- 2 1 3 3 x HONEYWELL INTERNATIONAL 2.3% 15AUG2024 (CALLABLE 15JUL24) 8/15/2024 $ 1,000,000 A2 A 4 3 4 3 x HOME DEPOT INC. 3% 01APR2026 (CALLABLE 01JAN2026) 4/1/2026 $ 1,000,000 A2 A 2 2 2 3 x JPMORGAN CHASE & CO 3.2 15JUN2026 (CALLABLE 15MAR2026) 6/15/2026 $ 500,000 A1 A- 3 1 3 4 x APPLE INC. 2.9% 12SEP2027 (CALLABLE 12JUN2027) 9/12/2027 $ 1,300,000 Aaa AA+ 4 1 4 5 x TOYOTA MOTOR CREDIT CORP 5.45% 10NOV2027 11/10/2027 $ 1,600,000 A1 A+ 3 2 3 4 x AMERICAN HONDA FINANCE 4.7% 12JAN2028 1/12/2028 $ 600,000 A3 A- 2 1 3 3 x PNC BANK NA 3.25% 22JAN2028 (CALLABLE 01 FEB28) 1/22/2028 $ 1,000,000 A2 A 3 2 3 3 x COLGATE-PALMOLIVE CO 4.6% 01MAR2028 (CALLABLE 01FEB28) 3/1/2028 $ 500,000 Aa3 AA- 3 3 3 3 x Total/Average $ 13,850,000 2.9 1.9 3.1 3.5
*ESG ratings are from 1 to 5, with 1 as the highest rating and 5 as the lowest. All ratings are weighted by industry rankings, based on the importance of the category within the individual industry.
Town of Los Gatos
Insight ESG Ratings as of September 30, 2023
Fund Schedule
Fund
Number Fund Description
Current
Revenue
Current
Expenditure
Transfer
In Transfer Out
GENERAL FUND
Non-Spendable:
Loans Receivable 159,000 - - - - - 159,000
Restricted Fund Balances:
Pension 1,400,163 - - - - - 1,400,163
Land Held for Resale 44,338 - - - - - 44,338
Committed Fund Balances:
Budget Stabilization 6,129,774 - - - - - 6,129,774
Catastrophic 6,129,775 - - - - - 6,129,775
Pension/OPEB 300,000 - - - - - 300,000
Measure G District Sales Tax 590,581 - - - - - 590,581
Assigned Fund Balances:
Open Space 410,000 - - - - - 410,000
Sustainability 140,553 - - - - - 140,553
Capital/Special Projects 10,359,577 - - - - - 10,359,577 Carryover Encumbrances 37,698 - - - - - 37,698
Compensated Absences 1,580,623 - - - - - 1,580,623
ERAF Risk Reserve 689,608 - - - - - 689,608
Council Priorities - Economic Recovery 1,556,614 - - - - - 1,556,614 Unassigned Fund Balances:
111 Other Unassigned Fund Balance Reserve (Pre YE distribution) - (2,199,604) 1,017,592 (2,911,590) - - (4,093,602) General Fund Total 29,528,304 (2,199,604) 1,017,592 (2,911,590) - - 25,434,702 * Interfund transfers and ARPA funding allocation to be performed as part of the fiscal year end closing entries. ** Interfund transfers to be performed as part of the fiscal year end closing entries.
Sep 2023
Prior Year
Carryforward
7/1/2023*
Increase/
(Decrease)
July - August
Estimated Fund
Balance
9/30/2023**
Fund Schedule
Fund
Number Fund Description
Current
Revenue
Current
Expenditure Transfer In Transfer Out
SPECIAL REVENUE
211/212 CDBG 166,653 - - - - - 166,653
222 Urban Runoff (NPDES) 629,843 1,845 - (15,367) - - 616,322 231-236 Landscape & Lighting Districts 176,964 (2,520) - (3,558) - - 170,886 241 ARPA - - - - - - -
251 Los Gatos Theatre 74,991 10,842 5,514 (15,259) - - 76,088 711-716 Library Trusts 530,173 (12,355) 87,300 (1,543) - - 603,575 Special Revenue Total 1,578,624 (2,188) 92,814 (35,727) - - 1,633,524
CAPITAL PROJECTS
411 GFAR - General Fund Appropriated Reserve 21,725,837 (163) 8,000 (1,714,695) - - 20,018,979 421 Grant Funded Projects (406,890) 471,046 - (167,604) - - (103,448) 461-463 Storm Basin Projects 3,218,331 10,631 31,615 - - - 3,260,577 471 Traffic Mitigation Projects 431,079 - 4,175 (4,175) - - 431,079 472 Utility Undergrounding Projects 3,438,996 - - - - 3,438,996 481 Gas Tax Projects 1,671,245 168,134 - (367,232) - - 1,472,147 Capital Projects Total 30,078,598 649,648 43,790 (2,253,706) - - 28,518,330
INTERNAL SERVICE FUNDS
611 Town General Liability 212,022 (992,484) - (16,541) - - (797,003) 612 Workers Compensation 514,813 (319,546) - (4,599) - - 190,668 621 Information Technology 2,474,618 (387,365) 10,079 (19,866) - - 2,077,466 631 Vehicle & Equipment Replacement 2,413,719 1,460 - (26,035) - - 2,389,144 633 Facility Maintenance 927,699 (61,081) 5,933 (119,621) - - 752,930 Internal Service Funds Total 6,542,871 (1,759,016) 16,012 (186,662) - - 4,613,205 Trust/Agency
942 RDA Successor Agency (6,187,789) (1,671,877) - (127) - - (7,859,793) Trust/Agency Fund Total (6,187,789) (1,671,877) - (127) - - (7,859,793) Total Town 61,540,608 1,170,208 (5,387,812) - - 52,339,968 * Interfund transfers and ARPA funding allocation to be performed as part of the fiscal year end closing entries. ** Interfund transfers to be performed as part of the fiscal year end closing entries.
Deposit Accounts of Interest:
111-23541 General Plan Update deposit account balance $950,229.66 111-23521 BMP Housing deposit account balance $4,021,280.60 Prior Year
Carryforward
7/1/2023*
Increase/
(Decrease)
July - August
Sep 2023
Estimated Fund
Balance
9/30/2023**
PREPARED BY: Katy Nomura
Assistant Town Manager
Reviewed by: Town Manager, Assistant Town Manager, Town Attorney, and Finance Director 110 E. Main Street Los Gatos, CA 95030 ● (408) 354-6832 www.losgatosca.gov
TOWN OF LOS GATOS
COUNCIL AGENDA REPORT
MEETING DATE: 11/21/2023
ITEM NO: 15
DATE: November 9, 2023
TO: Mayor and Town Council
FROM: Laurel Prevetti, Town Manager
SUBJECT: Receive an Update on the Interim Community Center and Provide Direction RECOMMENDATION:
Receive an update on the Interim Community Center and provide direction.
BACKGROUND:
On August 15, 2023, the Town Council allocated $866,281 to a Community Center Development Fund to design and construct near-term improvements to the Adult Recreation Center to achieve two major purposes. One purpose is to facilitate the use of space for a variety of nonprofit agencies to provide services to the community. The second purpose is to reconfigure the existing space to provide better services to adults by making it more open and inviting to the community.
The near-term improvements would be informed by convening a group of interested residents and community partners focused on older adult services and general community services. This group would be engaged in making recommendations about improvements to the existing facility. The group would include representatives of the Community Health and Senior Services Commission (CHSSC), Los Gatos Friends of Older Adults that Thrive, Los Gatos-Saratoga (LGS) Recreation, Successful Aging Solutions & Community Consulting (SASSC), non-profits who provide services, faith leaders, potentially representation from Supervisor Joe Simitian’s Office, and others. The Town Council motion requested that the recommendation(s) from staff and this group would be considered by the Town Council during the development of the 2024 Capital Budget.
PAGE 2 OF 6
SUBJECT: Community Center Interim Solution
DATE: November 9, 2023
BACKGROUND (continued):
Over the years, the Town has completed several improvements at the Adult Recreation Center.
The following table includes a list of completed projects since 2020 as well as projects in the pipeline and anticipated needs.
Adult Recreation Center- Improvements and Repairs Since 2020 Project Contractor Cost Completed
1 Boiler replacement Air Systems Inc. $17,000 2020
2 Chiller replacement Foothill Heat and AC $55,600 2020 3 Water heater replacement OC McDonald $4,934 2021
4 ADA restroom architect
plans & specifications The KPA Group $35,000 2021
5 Move out/in for flooring Ind Facility Resource $11,600 2022 6 Flooring - entire building Shaw Flooring Inc. $140 ,000 2022 7 Door trimming for flooring
(12) PPW-Facilities $1,570.90 2022
8 HVAC units (18) /interior
paint Foothill Heat and AC $195,000 2023
9 ADA parking lot &
entrance – plans &
specifications and survey
The KPA Group $30,000 2023
10 ADA restroom Tucker Const. Inc. $276,000 Est. 6/30/24 11 FY 23-24 Community
Grant: new kitchen
appliances
N/A $12,000 2024
TOTAL $766,705
Anticipated and Unfunded
Needs Contractor Estimated Cost Recommended
12 ADA compliant parking lot
& entrance $400,000 ASAP
13 Window replacements -
wall patch/paint $150,000 2024/25
14 Roof tune-up (adds 5 years
of life to roof) Facilities/Cal Roofing $5,000 2025
15 Exterior paint $40,000 2027
16 Roof replacement $100,000 2030
TOTAL $707,000
PAGE 3 OF 6
SUBJECT: Community Center Interim Solution
DATE: November 9, 2023
DISCUSSION:
A full remodel of the Adult Recreation Center to transform it into a Community Center would be a multi-million-dollar project that would need to be considered as part of the longer-term Capital Improvement Program. Any large investments to remodel the facility should be reserved for the full remodel to ensure that the transformation of the facility is planned holistically and that financial resources are used in the most efficient manner possible.
With that in mind, this discussion focuses on near-term improvements that can be implemented in the interim without substantial remodeling. It is staff’s understanding that the intention of these near-term improvements is to reposition the Adult Recreation Center as a Community Center and to provide space for community partners to engage the public.
The following sections outline opportunities and considerations to achieve this goal. The Town is still in the very early stages of this process and will continue to seek input from the Town Council, the CHSSC, residents, and community partners. As directed by the Town Council in August, staff is planning to host a convening in the form of a CHSSC meeting dedicated to an interim Community Center discussion in which residents, community partners, faith leaders, non-profits, and the public will all be invited to participate. Council’s direction on the items in this report is useful to preparing for the convening.
Physical Space and Improvements
Since the Adult Recreation Center is leased to LGS Recreation, staff discussed with LGS Recreation what physical space might be available for community partners to use. While much of the facility is fully programmed, LGS Recreation saw the value in bringing in community partners and was able to offer two desk spaces near the front entrance (roughly 45 square feet) as well as a small meeting room (roughly 130 square feet) without impacting existing services.
The total size of this available space is approximately 175 square feet. Depending on the uses, other spaces could be considered based on availability; however, there are operational considerations as discussed later in this report.
Staff recognizes that there may be a desire to rename the facility to reposition the Adult Recreation Center as the Los Gatos Community Center. If a renaming is pursued in the interim, a new sign for the building would need to be made and installed with an estimated cost of $5,000 to $10,000 for metal cut out letters or $20,000 to $30,000 for an electrical illuminated sign.
While improvements have been made to the lobby over the years, including new lighting and paint, the addition of wayfinding signage and modifications to prevent unauthorized access upstairs could be beneficial in the near-term. These improvements are estimated to cost $30,000 to $40,000.
PAGE 4 OF 6
SUBJECT: Community Center Interim Solution
DATE: November 9, 2023
DISCUSSION (continued):
Other minor near-term improvements may surface as input is received and as community partners are identified.
Staff will return to the Town Council with recommended near-term improvements. The Council motion directed staff to bring the recommendations for consideration during the Capital Budget process. While the Proposed FY 2024/25 Capital Improvement Budget would include the Interim Community Center project and its funding, there are additional steps that would need to be taken prior to construction.
For this reason, after the convening, staff would prepare the community and staff’s recommended near-term improvements for Council consideration in late winter/early spring 2024. Town Council would be asked to prioritize the recommended near-term improvements as it is likely that there will be more ideas than the funding would support. Then, staff would hire an architect to cost the items. This expenditure would be deducted from the allotted funding for the project. With cost estimates, Council would then be asked to select the preferred near-term improvements for design and bidding.
Operational Considerations
Cost of the Space and Associated Services
Due to the existing lease with LGS Recreation, the costs of the space used by the community partners would need to be borne by either the Town or the community partners. For example, the Town could enter into a potential lease amendment to reduce LGS Recreation’s rent for the Adult Recreation Center as they will be leasing less space for their services. The Town could then subsidize the square footage used by the community partners by not charging rent or charging a reduced rent.
Alternatively, the Town could maintain the existing lease with LGS Recreation and enter into a separate service agreement where the Town would pay LGS Recreation for providing coordination and hosting of community partners, including room scheduling, client coordination, office support, janitorial services, etc.
A third approach could be a hybrid of the two in which the lease with LGS Recreation remains unchanged and LGS Recreation enters into agreements with the community partners who would pay a fee to use the space as well as their fair share of the costs for use of LGS Recreation equipment (e.g., copiers), security, storage, internet, janitorial services, and other administrative support.
PAGE 5 OF 6
SUBJECT: Community Center Interim Solution
DATE: November 9, 2023
DISCUSSION (continued):
It would be beneficial for the Town Council to provide direction as to whether it is expected that community partners should contribute to these costs or if space and other services should be provided to them for free.
Selection of Community Partners
The selection of community partners needs to be part of a competitive Request for Proposals (RFP) process. The RFP would include selection criteria to evaluate community partner proposals. Any suggestions the Town Council has for selection criteria are welcome at this time. Input will also be solicited from the community attendees at the forthcoming CHSSC convening regarding the Community Center near-term improvements. The Council will review the draft RFP and selection criteria prior to it being issued. The final selection of community partners will also be brought to the Town Council for consideration.
After community partners are selected, an agreement with the Town and/or LGS Recreation would likely be needed to address the cost, service, and operational considerations mentioned earlier in the previous section.
CONCLUSION:
Any interim improvements to transition the Adult Recreation Center to a community center should be relatively minor without substantial remodeling. A competitive RFP process will be conducted to select community partners for the community center. Physical improvements and community partner selection will be informed by a CHSSC meeting dedicated to an interim Community Center discussion in which residents, community partners, faith leaders, nonprofits, and the public will all be invited to participate. Recommendations on physical improvements as well as community partner selection will be brought to the Town Council for future consideration.
The Town Council is welcome to provide additional direction on the interim use of the Adult Recreation Center/Community Center based on the information contained in this report.
COORDINATION:
The preparation of this report was coordinated with the Town Attorney, the Parks and Public Works Department, and LGS Recreation.
PAGE 6 OF 6
SUBJECT: Community Center Interim Solution
DATE: November 9, 2023
FISCAL IMPACT:
The $866,281 allocated to the Community Center Development Fund can be used for near-term improvements to the Adult Recreation Center/Community Center. Additional funding may be required to support the operational and administrative needs of coordinating the community partners and providing the additional services.
PUBLIC COMMENT:
Attachment 1 contains public comment received on this topic.
ENVIRONMENTAL ASSESSMENT:
This is not a project defined under CEQA, and no further action is required.
ATTACHMENT:
1. Public Comment
1 Katy Nomura
From: Daniel B Snyder
Sent: Wednesday, October 4, 2023 11:51 AM
To: Mary Badame; Rob Moore; Rob Rennie; Maria Ristow; Matthew Hudes Cc: Laurel Prevetti
Subject: Town Priorities for a "Town" Center
Dear Town Council Members‐
I have read many arƟcles and columns in local papers about the need for a new Senior Center, and how the town approved a grant to remodel the current adult center. Granted, given local construcƟon costs, $1m will more likely fund a “tweak” than a remodel, but that is a separate discussion about raƟonal percepƟons. I could also tell you the story of signing up for a program there, and being dropped because I was apparently too young for the group.
Anyway, I’d like to remind the council that while ~50% of local acƟve voters are senior ciƟzens (65+), they are just 20% of Los Gatos residents. Children 18 and under are actually 23% (US Census). So, where is the discussion or evaluaƟon of our youth's needs? To be fair to seniors, arguably, the Senior Center should be pushed out into a separate JPA, like the LG Rec department was, back in the 70s. There, it could struggle to find funding (and retain staff), sourced from fees charged for services to seniors (or their caregivers).
Ok, I am being a bit over the top. But as a parent of two older teenagers, and a trustee for LGUSD, I have seen first‐hand how under served our youth (and middle aged adults) are compared to similar local communiƟes. Many have numerous town athleƟc fields that are not just a park. They have community gyms and pools, so residents don’t have to pay $300‐ 600 per month to a company for stay fit.
What I would really like to see is that some funding be directed to truly evaluate all of the faciliƟes needs of the Los Gatos community, not just for the 20% of residents who have a loud voice at Council meeƟngs. I firmly believe that if Los Gatos had a clear Strategic/FaciliƟes Master Plan (beyond roads), it could be a rallying point for our community, uniƟng us around our common needs and benefits.
Then, we could unite for a bond measure to actually fund those prioriƟes, rather than always slashing the opƟons because there isn’t any money in the General Fund (which there isn’t). And, if the community clearly wanted more annual services as part of that plan, it is the perfect basis for a parcel tax to fund them.
This is what local school districts have done, and Ɵme and again, Los Gatos has risen to fund the prioriƟes that we all share.
But, baring that, please don’t limit the current adult center to only senior ciƟzens. Make sure the town serves all our residents.
Thanks,
Daniel Snyder
ATTACHMENT 1
PREPARED BY: Katy Nomura
Assistant Town Manager
Reviewed by: Town Manager, Assistant Town Manager, Town Attorney, and Finance Director 110 E. Main Street Los Gatos, CA 95030 ● (408) 354-6832 www.losgatosca.gov
TOWN OF LOS GATOS
COUNCIL AGENDA REPORT
MEETING DATE: 11/21/2023
ITEM NO: 15
DESK ITEM
DATE: November 21, 2023
TO: Mayor and Town Council
FROM: Laurel Prevetti, Town Manager
SUBJECT: Receive an Update on the Interim Community Center and Provide Direction REMARKS:
This addendum is to provide additional information that may be helpful to the Town Council’s discussion on this item.
An updated table outlining improvements and repairs to the Adult Recreation Center (ARC) since 2020 is included as Attachment 2, with changes in red.
To provide additional clarity, these are the next steps that staff anticipates taking prior to returning to the Town Council with a recommended list of physical near-term improvements to the ARC/Community Center:
1. Host a convening, as outlined in the staff report, to receive community input on:
a. Preferred types of community partners/services,
b. Community partner selection criteria, and
c. Ideas for near-term improvements to the ARC/Community Center.
2. Receive the Community Health and Senior Services Commission’s (CHSSC) recommendation on items relevant to the Request for Proposals (RFP) for community partners, such as the types of community partners and community partner selection criteria.
3. Return to Council with CHSSC’s recommendation for Council input and approval on items relevant to the Request for Proposals (RFP) for community partners, such as the types of community partners and community partner selection criteria.
4. Issue the RFP.
5. Return to Council with the final selection of community partners.
6. Discuss any potential physical near-term improvements and operational support needed by selected community partners with Los Gatos Saratoga Recreation (LGS Recreation).
PAGE 2 OF 2
SUBJECT: Community Center Interim Solution
DATE: November 9, 2023
7. Receive CHSSC’s recommendation on near-term improvements and operational support for Council’s consideration, taking into account ideas shared at the community convening and budget constraints.
8. Return to Council with CHSSC’s recommendation on near-term improvements and operational support for consideration. If physical near-term improvements are expected to exceed the funding available, Council would be asked to prioritize the items. While timing may vary, staff aims to return to Council in spring 2024 with this item.
9. Hire an architect to provide cost estimates for the prioritized items.
10. Return to Council with cost estimates for selection of which prioritized items to move forward for design and bidding.
Attachment Previously Received with the Staff Report:
1. Public Comment
Attachments Received with this Desk Item:
2. Updates to Adult Recreation Center Improvements and Repairs Since 2020 Table
ATTACHMENT 2
Adult Recreation Center- Improvements and Repairs Since 2020 Project Contractor Cost Completed
1 Boiler replacement Air Systems Inc. $17,000 2020
2 Chiller replacement Foothill Heat and AC $55,600 2020 3 Water heater replacement OC McDonald $4,934 2021
4 ADA restroom architect
plans & specifications The KPA Group $35,000 2021
5 Move out/in for flooring Ind Facility Resource $11,600 2022 6 Flooring - entire building
(Replaced subfloor and
window trim as needed)
Shaw Flooring Inc. $140 ,000 2022
7 Door trimming for flooring
(12) PPW-Facilities $1,570.90 2022
8 HVAC units (18) /interior
paint (Cleaned/replaced
drywall behind units)
Foothill Heat and AC $195,000 2023
9 ADA parking lot and
building entrance – plans,
specifications, and survey
The KPA Group $30,000 2023
10 ADA restroom Tucker Const. Inc. $276,000 Est. 6/30/24 11 FY 23-24 Community
Grant: new kitchen
appliances
N/A $12,000 2024
TOTAL $778,705
Anticipated and Unfunded
Needs Contractor Estimated Cost Recommended
12 ADA compliant parking lot
and building entrance
$400,000 ASAP
13 Window replacements -
Water intrusion repair,
wall patch, and paint.
$200,000 2024/25
14 Roof tune-up (adds 5 years
of life to roof) Facilities/Cal Roofing $5,000 2024
15 Exterior paint $40,000 2027
16 Roof replacement $100,000 2027
17 Deck seal, drain
replacement, water
intrusion repair
$100,000 2024
TOTAL $845,000
PREPARED BY: Nicolle Burnham
Parks and Public Works Director
Reviewed by: Town Manager, Assistant Town Manager, Town Attorney, and Finance Director 110 E. Main Street Los Gatos, CA 95030 ● (408) 354-6832 www.losgatosca.gov
TOWN OF LOS GATOS
COUNCIL STUDY SESSION REPORT
MEETING DATE: 11/21/2023
ITEM NO: 16
DATE: November 10, 2023
TO: Mayor and Town Council
FROM: Laurel Prevetti, Town Manager
SUBJECT: Complete the Following Actions in Support of the Town’s Transportation Impact Fee Program:
a. Review the Transportation Impact Nexus Study dated November 2023 (including the Town’s Transportation Capital Improvement Plan – Appendix 1); and
b. Set a Public Hearing for January 16, 2024 to Adopt the Nexus Study, Adopt a Resolution to Establish the Updated Transportation Impact Fee, Introduce an Ordinance Amending Article VII of Section 15 of the Town Code, “Traffic Impact Mitigation Fees,” and Modify Town Council Policy 1- 08, “Transportation Impact Policy.”
RECOMMENDATION:
Complete the following actions in support of the Town’s Transportation Impact Fee Program:
a. Review the Transportation Impact Nexus Study dated November 2023 (including the Town’s transportation capital improvement plan – Appendix 1) (Attachment 1); and b. Set a public hearing for January 16, 2024 to adopt the Nexus Study, adopt a resolution to establish the updated Transportation Impact Fee, introduce an ordinance amending Article VII of Section 15 of the Town Code, “Traffic Impact Mitigation Fees,” and modify Town Council Policy 1-08, “Transportation Impact Policy.”
PAGE 2 OF 6
SUBJECT: Review the Transportation Impact Fee Nexus Study and Schedule a Public Hearing to Take Multiple Actions to Enact a Transportation Impact Fee Including Modifications to the Town Code
DATE: November 10, 2023
BACKGROUND:
Since early 2022, staff has been working with DKS Associates to complete a Transportation Nexus Study, update the current Traffic Impact Fee amount and consider a Vehicle Miles Traveled Impact Fee. One aspect of the work would rename the current Traffic Impact Fee to Transportation Impact Fee. As the Town completes the work associated with modifying an impact fee, the Town must comply with Assembly Bill 602 (passed in 2021) affecting California Government Code Sections 65940.1 and 66019. Specifically, AB 602 requires that jurisdictions charging impact fees must: 1) complete an impact fee nexus study; 2) calculate the fees for residential developments based on square footage of the proposed units (or justify why square footage cannot be used); and 3) update the nexus study every eight years. The current Traffic Impact Fee was established in 2014.
On May 2, 2023, the Town Council received a report on the technical work to calculate a recommended fee for each land use type. On October 10, 2023, a study session was held to respond to questions that Town Council had posed at the May 2, 2023 meeting. At that October meeting, Council took a series of actions that provided the direction and feedback needed for staff to propose a Transportation Impact Fee for adoption.
DISCUSSION:
This discussion begins with responding to certain questions and outstanding issues that arose from the study session on October 10, 2023. Following that discussion, the two requested actions are presented for consideration.
Outstanding Questions from October 10, 2023
Accessory Dwelling Units: Staff recommended that Transportation Impact Fees be levied against Accessory Dwelling Units (ADUs) 750 square feet or larger. Council supported this recommendation and directed staff to count these as multi-family units for the purpose of calculating the fee and asked staff how other jurisdictions charge for ADUs. Staff identified the following jurisdictions that charge impact fees for ADUs: San Carlos, Los Altos, Redwood City, Gilroy, Sunnyvale, Cupertino, and Morgan Hill. The fees for ADUs in all jurisdictions identified are charged in proportion to the fees for single-family residences to meet the requirements of State law. In other words, the Town must consider ADUs as single-family residences for purposes of the calculation.
PAGE 3 OF 6
SUBJECT: Review the Transportation Impact Fee Nexus Study and Schedule a Public Hearing to Take Multiple Actions to Enact a Transportation Impact Fee Including Modifications to the Town Code
DATE: November 10, 2023
DISCUSSION (continued):
Methods for projecting future development as basis for the fees: Staff was asked why the General Plan 2040 was used as the basis for calculating the new impact fee as opposed to the Housing Element, the Regional Housing Needs Allocation, or General Plan 2020. The General Plan 2020 Land Use Element addresses land use designations but does not include development projections. As such, the Plan does not provide the information necessary to develop the Transportation Impact Fee.
The Regional Housing Needs Allocation (RHNA) calls for Los Gatos to build 1,993 housing units over an eight-year planning horizon. General Plan 2040 calculated that 2,685 units may be constructed in Los Gatos over the 20-year planning horizon, and this is reflected in the proposed fee calculation.
Staff recommends using the General Plan 2040 housing projection for the impact fee calculation. The larger number of housing units serves to lower the fee.
What is the fiscal impact of a 100% credit for extremely low- and very low-income developments? The RHNA calls for a total of 537 units in the low- and very low-income categories. Assuming these are all multi-family units, the revenue impact for a 100% credit (i.e., not charging any fees at all) would be $6,249,187. This is approximately 15% of the total project cost of $42,106,083. The proposed modifications to the Town Code and policies (described below) include credit for low- and very-low-income categories.
Should the units currently in the entitlement process be removed from the new fee calculation? The best practice is to deduct housing units that are fully entitled with all Planning approvals from the fee calculation, and to assume projects that are in the process of securing Planning approvals are not built. If the units in the Planning approval were excluded from the fee calculation the proposed impact fee would increase.
This question arose because of the number of units without Planning approvals that have “locked in” the current impact fee. With those units paying the existing (lower) fee, the project list will be underfunded. Regardless, staff still does not recommend that these units be removed from the calculations as it is not uncommon for developments to get entitled but not move to construction. As such, assuming these projects are built and excluding them from the fee introduces a complexity that cannot be easily mitigated.
PAGE 4 OF 6
SUBJECT: Review the Transportation Impact Fee Nexus Study and Schedule a Public Hearing to Take Multiple Actions to Enact a Transportation Impact Fee Including Modifications to the Town Code
DATE: November 10, 2023
DISCUSSION (continued):
Draft Transportation Impact Fee Nexus Study
Attachment 1 presents the draft Nexus Study dated November 2023 prepared by DKS Associates. As required by Government Code Section 66016.5, the Nexus Study includes a Transportation Capital Improvement Plan as Appendix 1. This report documents the underlying assumptions and calculations that were used to develop the project list, the development scenarios, and the resulting impact fee. Since the Nexus Study documents how the updated fee calculations were developed and is required by the State Mitigation Fee Act, staff recommends that Council review the Nexus Study and schedule a public hearing for its adoption at least 30 days from the date of this meeting as required by Government Code Section 66016.5.
Establishment of Updated Impact Fees
Throughout the process of developing the Nexus Study, two fee calculations were considered:
a Transportation Improvement Fee and a Vehicle Miles Traveled (“VMT”) Fee. The Transportation Improvement Fee addresses additional demand that would result from the expected growth, providing funds to expand or enhance functionality of the Town’s circulation network. The VMT fee was considered to address mitigation of VMT impacts as outlined in Town Council Policy 1-08, “Transportation Impact Policy.” For simplicity of administration, staff is proposing that the Transportation Improvement fee and the VMT fee be combined into one Transportation Impact Fee.
Table 1 presents the proposed Transportation Impact Fee documented in the Nexus Study.
Table 1. Proposed Transportation Impact Fee 2023
Land Use Classification Fee Presented May
2023
Proposed Fee
Presented
November 20231
Single Family Residential (per dwelling unit) $20,078 $16,282 Multi-Family Residential (per dwelling unit) $14,365 $11,637 Retail (per 1,000 square feet) $28,037 $22,713
Office (per 1,000 square feet) $24,705 $20,015
Industrial (per 1,000 square feet) $11,588 $9,388
Notes: Taken from Nexus Study Table 8 by DKS Associates.
The per dwelling unit fee would be converted to square footage per State law.
PAGE 5 OF 6
SUBJECT: Review the Transportation Impact Fee Nexus Study and Schedule a Public Hearing to Take Multiple Actions to Enact a Transportation Impact Fee Including Modifications to the Town Code
DATE: November 10, 2023
DISCUSSION (continued):
The final proposed fees are lower than fees that were considered in earlier Council discussions.
This is due to the addition of ADUs of 750 square feet or larger in the fee calculation. This increased the number of housing units, which changed the calculation for Dwelling Unit Equivalents (DUEs) and carried through the calculations to lower the overall fees in all land use categories.
The proposed fees (November 2023) for the residential land uses will be converted to a per square foot basis in accordance with current California Government Code requirements prior to final adoption. The average square footage of a single-family unit in Los Gatos was calculated to be 2,632. This is lower than the 3,660 square feet that was presented in the October 2023 report to Town Council. The smaller square footage used in the final calculation is attributed to the inclusion of accessory dwelling units of 750 square feet or larger in the final calculation.
The average square footage of multi-family units remains 1,649 square feet as was presented in October 2023.
Adopting the resolution to update the fees requires that Town Council conduct a public hearing. Given the 30-day noticing requirements for the public hearing, staff is recommending that hearing be held on January 16, 2024. If the resolution is adopted to update the fees, the proposed fees would become effective 60 days after adoption.
Proposed Modifications to Town Code Section 15, Article VII In updating the Nexus Study and new fees, certain changes will be recommended to the Town Code Section 15, Article VII, Traffic Impact Mitigation Fees. These changes include renaming this section to ‘Transportation Impact Fees’ to reflect the fact that traffic mitigation may include modes of transportation other than cars, such as bicycle infrastructure.
Other changes will include adding definitions of Vehicle Miles Traveled to reflect the current analytical requirements for traffic impacts, clarifying the methodology used to calculate the mitigation fees, and adding a section on credits to be applied against the fee.
Modifications to Town Council Policy 1-08 Transportation Impact Policy Changes will also be proposed to the Transportation Impact Policy to support the adopted fee program and credits. The most substantive changes will be the inclusion of fees being charged to ADUs of 750 square feet or larger, and 100% credit for Transportation Impact Fees for deed restricted low- and very-low income residential units.
PAGE 6 OF 6
SUBJECT: Review the Transportation Impact Fee Nexus Study and Schedule a Public Hearing to Take Multiple Actions to Enact a Transportation Impact Fee Including Modifications to the Town Code
DATE: November 10, 2023
CONCLUSION:
The actions in this report are the review of the Nexus Study, and scheduling a January 16, 2024 public hearing on the (a) adoption of the Nexus Study, (b) adoption of a Resolution updating the Transportation Impact Fee, (c) introduction of an Ordinance to modify Town Code Section 15, Article VII “Traffic Impact Mitigation Fees,” and (d) an update to Town Council Policy 1-08 “Transportation Impact Fees.”
COORDINATION:
This agenda item was coordinated with the Town Manager, Town Attorney, and the Finance Directors.
FISCAL IMPACT:
There is no fiscal impact associated with Town Council accepting the nexus study and setting the public hearing.
ENVIRONMENTAL ASSESSMENT:
In accordance with CEQA Guidelines Section 15378(b)(4), these actions are fiscal activities and are not projects as defined in CEQA, and no further action is required.
Attachment:
1. Transportation Impact Fee Nexus Study – DRAFT, prepared by DKS Associates, dated November 2023
TRANSPORTATION IMPACT FEE NEXUS REPORT
NOVEMBER 2023
DRAFT
PREPARED FOR:
TOWN OF LOS GATOS
ATTACHMENT 1
TOWN OF LOS GATOS TRANSPORTATION IMPACT FEE • NEXUS STUDY • NOVEMBER 2023 2
PREPARED FOR TOWN OF LOS GATOS
PREPARED BY DKS ASSOCIATES
IN COORDINATION WITH URBAN ECONOMICS AND RINCON
TOWN OF LOS GATOS TRANSPORTATION IMPACT FEE • NEXUS STUDY • NOVEMBER 2023 3
TABLE OF CONTENTS
INTRODUCTION AND BACKGROUND .................................................................................................................... 5 SUMMARY OF FINDINGS ......................................................................................... 5 EXISTING AND FORECASTED LAND USE .............................................................................................................. 6 TRANSPORTATION DEMAND FACTORS................................................................................................................. 6 TRANSPORTATION IMPROVEMENTS .................................................................................................................. 10 TOWN-WIDE MULTIMODAL TRANSPORTATION INFRASTRUCTURE.................................................................... 12 INVENTORY OF TOWN WIDE TRANSPORTATION INFRASTRUCTURE .............................. 12
EXISTING LEVEL OF INVESTMENT AND MAXIMUM JUSTIFIABLE FEE FOR THE TRANSPORTATION IMPACT FEE .............................................................................. 12 TRANSPORTATION IMPROVEMENTS AND COST PER DUE ............................................. 15 FEE SCHEDULE................................................................................................................................................... 16 RECOMMENDED FEE SCHEDULE .............................................................................. 16 Residential Fees per Square Foot......................................................................................................................17 Fees for Specialized Land Uses.........................................................................................................................18 COMPARABLE FEE RATES ...................................................................................... 18 PROJECTS SUBJECT TO THE FEE PROGRAM ............................................................... 20 REVENUE PROJECTIONS AND USE ........................................................................... 20 APPENDIX ......................................................................................................................................................... 22 SECTION 1. PROJECT LIST .................................................................................... 24 SECTION 2. UNIT COST DETAIL ............................................................................. 26
TOWN OF LOS GATOS TRANSPORTATION IMPACT FEE • NEXUS STUDY • NOVEMBER 2023 4
LIST OF FIGURES
FIGURE 1: MAP OF TOWN -WIDE INFRASTRUCTURE ....................................................... 14 FIGURE 2: TIF PROJECTS ...................................................................................... 25
LIST OF TABLES
TABLE 1: EXISTING AND FORECASTED DEVELOPMENT ..................................................... 7 TABLE 2: DWELLING UNIT EQUIVALENT (DUE) RATES ..................................................... 8 TABLE 3: TRANSPORTATION DEMAND BY DWELLING UNIT EQUIVALENTS (DUES) .................... 9 TABLE 4: TRANSPORTATION IMPROVEMENT PROJECTS ................................................... 11 TABLE 5: TRANSPORTATION INFRASTRUCTURE UNIT COSTS (2022 $) ................................ 13 TABLE 6: EXISTING FACILITY STANDARD & LEVEL OF INVESTMENT .................................. 15 TABLE 7: TRANSPORTATION IMPROVEMENT COST PER DWELLING UNIT EQUIVALENT ............. 16 TABLE 8: RECOMMENDED FEE SCHEDULE ................................................................... 17 TABLE 9: CALCULATION OF RESIDENTIAL FEES PER SQUARE FOOT ................................... 17 TABLE 10: TRANSPORTATION IMPACT FEES IN COMPARABLE JURISDICTIONS ...................... 19 TABLE 11: MAXIMUM REVENUE PROJECTION ............................................................... 21
TOWN OF LOS GATOS TRANSPORTATION IMPACT FEE • NEXUS STUDY • NOVEMBER 2023 5
INTRODUCTION AND BACKGROUND
This report documents the update of the Transportation Impact Fee (TIF) for the Town of Los Gatos. The updated fee program will fund all eligible transportation improvements based on a reasonable relationship to transportation demand impacts from new development. The TIF will fund expansion of the Town-wide multimodal transportation infrastructure. This report presents the results of the fee calculations along with supporting documentation for the nexus study prepared by DKS Associates with the assistance of Urban Economics and Rincon Associates.
SUMMARY OF FINDINGS
California local agencies may adopt impact fees under authority granted by the Mitigation Fee Act (the Act), contained in Sections 66000 to 66025 of the California Government Code. This report presents the key findings required by the act for adopting or increasing a development fee with respect to the following reasonable relationships1:
Project effects– There must be a reasonable relationship established between new development and the need for public facilities.
• This finding is based on the need to supply adequate transportation network improvements to offset transportation demand associated with new development.
Benefit – There must be a reasonable relationship between new development and the use of fee revenue for public facilities to accommodate that development. • This finding is based on the use of fee revenue for expansions to the Town-wide multimodal transportation network.
Proportionality – There must be a reasonable relationship between the amount of the fee and the portion of public facilities cost associated with new development. • This finding is based on the cost of planned improvements to Town-wide multimodal transportation infrastructure per unit of new development and ensuring that this cost per unit is not greater than the level of investment in existing infrastructure for existing development.
In addition to the above findings, the Act also requires findings regarding the purpose of the fee and a description of the public facilities to be funded by the fee:
• The purpose of the fee is to expand the Town-wide multimodal transportation network to accommodate increased demand from new development. The multimodal improvements to be funded by the fee are described under “Transportation Improvements”. 1 California Government Code, section 66001(a)(3), 66001(a)(4), and 66001(b)
TOWN OF LOS GATOS TRANSPORTATION IMPACT FEE • NEXUS STUDY • NOVEMBER 2023 6 The proposed TIF also meets newer statutory requirements brought about by Assembly Bill 602, including preparation of a nexus study and calculation of fees for residential developments proportionate to square footage. The following additional findings are made:
a) The existing level of service is the historical level of investment made per unit of development to fund the Town’s multimodal transportation network. This level of investment will not be exceeded by the proposed fee.
b) The purpose of the fee to expand the Town-wide multimodal transportation network to accommodate increased demand from new development.
c) The funds collected by the proposed fee will be used to deliver the projects described under “Transportation Improvements”.
d) The reasonable relationship between the fee’s use and the type of development project is derived from the relative levels of transportation demand associated with each land use category.
e) The need for public facilities to be funded by the proposed fee has been documented by the adopted planning documents that serve as the source for the transportation improvements list.
EXISTING AND FORECASTED LAND USE
The proposed fee program is based on the demand for transportation infrastructure associated with new development. This section documents the additional transportation demand from new development in terms of “dwelling unit equivalents” (DUEs), a measure of transportation demand across both residential and nonresidential land use categories that is based on key travel characteristics.
Table 1 summarizes the existing and forecasted growth by type of land use. The forecasted growth is consistent with that assumed for the Town’s most recent General Plan and Housing Element.
TRANSPORTATION DEMAND FACTORS
Scaling factors based on relative levels of transportation demand are applied to the different types of land use to create a common land use unit. These common units or Dwelling Unit Equivalents (DUEs) are equivalent to the transportation demand generated by one single family residential unit. Once basic fee levels are calculated, the DUE rates are used to appropriately scale the fee across different land use categories.
TOWN OF LOS GATOS TRANSPORTATION IMPACT FEE • NEXUS STUDY • NOVEMBER 2023 7 TABLE 1: EXISTING AND FORECASTED DEVELOPMENT
a Residential based on CA Dept. of Finance. Nonresidential based on job estimate in General Plan Background Report multiplied by employment density factors derived from trip generation data published by the Institute for Transportation Engineers (471, 307, and 637 sq. ft. per job for retail/commercial, office, and industrial, respectively). Office land use includes institutional uses.
b Nonresidential includes intensification of development on existing developed parcels and deducts loss of 19,860 square feet of existing nonresidential development (assumed to be retail/commercial) due to redevelopment. c Existing (2021) based on detached and attached single family. Growth (2022-2040) based on low and medium density residential land use categories.
d Existing (2021) includes all multi-family dwellings plus mobile homes. Growth (2022-2040) includes high density residential land use and units in mixed use and nonresidential land uses. e Accessory Dwelling Units (ADUs) of less than 750 square feet are exempt from impact fees. The number of ADUs that would be subject to the fee is estimated based on 500 ADUs, per the Housing Element, and analysis of permit data from the last 5 years showing that about 44% of ADUs have been 750 square feet or larger.
Sources: State of California, Department of Finance, E-5 Population and Housing Estimates for Cities, Counties, and the State — January 1, 2021-2022. Sacramento, California, May 2022; Institute for Transportation Engineers (ITE), Trip Generation Handbook, 11th Edition, Sept. 2021; Town of Los Gatos 2040 General Plan Background Report, March 2019, Table 2.3-14, p. 2-34; Town of Los Gatos 2040 General Plan, June 2022, Table 3-1, p. 3-4; Town of Los Gatos, Resi and ADU SF Final.xlsx (September 2023).
LAND USE EXISTING
(2021) a
GROWTH
(2022-2040) b
TOTAL
2040
RESIDENTIAL (DWELLING UNITS)
SINGLE FAMILY c 10,100 113 10,213
MULTI-FAMILY d 3,792 2,072 5,864
TOTAL 13,892 2,185 16,077
ADD ESTIMATED ACCESSORY DWELLING UNITS (ADUs) 750 SF OR LARGER SINGLE-FAMILY UNITS 113
NON-EXEMPT ADUs e 220
SINGLE-FAMILY FEEPAYING UNITS
333
NONRESIDENTIAL (BUILDING SQUARE FEET)
RETAIL/COMMERCIAL 2,633,475 367,860 3,001,335
OFFICE 3,987,091 146,548 4,133,639
INDUSTRIAL 1,061,766 157,440 1,219,206
TOTAL 7,682,332 671,848 8,354,180
TOWN OF LOS GATOS TRANSPORTATION IMPACT FEE • NEXUS STUDY • NOVEMBER 2023 8 TABLE 2: DWELLING UNIT EQUIVALENT (DUE) RATES
LAND USE ITE LAND USE
(CODE)
AVG.
WEEKDAY
TRIP RATE
PERCENT
NEW
TRIPS A
TRIP
LENGTH
FACTOR B
DEMAND
FACTOR B
DWELLIN
G UNIT
EQUIVALE
NT
SINGLE-FAMILY
(PER DWELLING
UNIT)
Single Family
Homes (210)
9.43 100 7.9 74.50 1.00
MULTI-FAMILY
(PER DWELLING
UNIT)
Multifamily
Mid-rise (221)
6.74 100 7.9 53.25 0.71
RETAIL (PER 1,000
SQUARE FEET)
Shopping
Center (820)
37.01 78 3.6 103.92 1.40
OFFICE (PER 1,000
SQUARE FEET)
General Office
(710)
10.84 96 8.8 91.58 1.23
INDUSTRIAL (PER
1,000 SQUARE
FEET)
General Light
Industrial
(110)
4.87 98 9.0 42.95 0.58
a Includes diverted trips.
b Trip length and VMT factors provide a relative measure of transportation demand among land uses, and a reasonable method for allocating improvement costs across land use categories to calculate the impact fee. Based on factors commonly used in planning studies. Absolute values for Los Gatos may differ.
Sources: Institute for Transportation Engineers (ITE), Trip Generation, 11th Edition; San Diego Association of Governments (SANDAG), Brief Guide of Vehicular Trip Generation Rates, April 2002.
The DUE rates and travel demand factors are calculated using the daily trip rates from the 11th Edition of the Trip Generation Manual, published by the Institute of Transportation Engineers (ITE).
The details of this calculation are shown in Table 2. The DUE rates are applied to the quantities of land use growth shown in Table 1 to arrive at growth in DUEs as shown in Table 3.
TOWN OF LOS GATOS TRANSPORTATION IMPACT FEE • NEXUS STUDY • NOVEMBER 2023 9 TABLE 3: TRANSPORTATION DEMAND BY DWELLING UNIT EQUIVALENTS (DUEs) Sources: Table 1 and Table 2.
LAND USE EXISTING DUEs
(2021)
GROWTH DUEs
(2023-2040)
TOTAL DUEs
(2040)
RESIDENTIAL
SINGLE FAMILY 10,100 333 10,433
MULTI-FAMILY 2,710 1,481 4,191
SUBTOTAL 12,810 1,814 14,624
NONRESIDENTIAL
RETAIL/COMMERCIAL 3,674 513 4,187
OFFICE 4,901 180 5,081
INDUSTRIAL 612 91 703
SUBTOTAL 9,187 784 9,971
TOTAL 21,997 2,598 24,595
SHARE 90% 10% 100%
TOWN OF LOS GATOS TRANSPORTATION IMPACT FEE • NEXUS STUDY • NOVEMBER 2023 10
TRANSPORTATION IMPROVEMENTS
This section summarizes the projects needed to expand the transportation network to accommodate growth. A detailed list of projects may be found in the Appendix, Section 1.
Table 4 summarizes the improvements identified to expand the Town-wide circulation network to maintain the Town’s historical level of investment. Note that project cost estimates have been escalated where appropriate and historical levels of supplemental funding have been assumed to derive the costs allocated to the fee calculations. There are seven categories of projects in this list:
1. Bicycle and Pedestrian Plan Priority Projects: These projects are selected from the Bicycle and Pedestrian Master Plan of the Town of Los Gatos (Connect Los Gatos, 2020).
2. Complete Streets projects carried over from the existing traffic impact fee project list. The funding of these projects continues to be a high priority for the Town and including these projects ensures that the impact fees previously collected will be used to deliver projects from the previously planned list.
3. Lighting and Signage projects will be drawn from needs identified in the Town’s Downtown Parking Roadmap. The costs are based on delivery of about $50,000 per year in improvements.
4. Bicyclist and Pedestrian Safety Projects identified in Connect Los Gatos.
5. New bicycle and pedestrian facilities identified in Connect Los Gatos.
6. Safety and Capacity Improvements are largely associated with the Town’s estimated local match contribution to the State Route 17 (SR-17) Corridor Congestion Relief Project – Among other objectives, this project will reduce cut-through traffic through the Town of Los Gatos and features improvements to the ramp intersections as well as the freeway mainline.
While funding for final design and construction has not been finalized, it is expected to include a combination of Measure B, local funds, and other funds. Also included in this category is the Shannon Road widening and safety improvements project.
7. Upgrades to the Town’s traffic signal system – This category of projects includes signal upgrades including but not limited to; signal synchronization; signal interconnects; signal head replacements and fiber optic lines. In the past, the Town has sought and received state and federal funding for this type of project and an assumption of continued grant funding has been made for calculating costs allocated to the TIF program.
TOWN OF LOS GATOS TRANSPORTATION IMPACT FEE • NEXUS STUDY • NOVEMBER 2023 11 TABLE 4: TRANSPORTATION IMPROVEMENT PROJECTS
CATEGORY UNFUNDED CAPITAL COSTS
($2022)
BPMP PRIORITY PROJECTS $13,201,857
COMPLETE STREETS (CARRYOVER) $3,522,227
LIGHTING AND SIGNAGE $400,000
OTHER BPMP PROJECTS - BICYCLIST AND PEDESTRIAN SAFETY $1,000,000 OTHER BPMP PROJECTS - NEW FACILITIES $2,600,000
SAFETY AND CAPACITY IMPROVEMENTS $13,382,000
TRAFFIC SIGNAL IMPROVEMENTS $8,000,000
SUBTOTAL $42,106,083
CURRENT TIF FUND BALANCE a $405,570
ALLOCATED COST FOR FEE CALCULATION $41,700,514
a Fund balance as of November 1, 2023.
Source: Connect Los Gatos, Town of Los Gatos
TOWN OF LOS GATOS TRANSPORTATION IMPACT FEE • NEXUS STUDY • NOVEMBER 2023 12
TOWN-WIDE MULTIMODAL TRANSPORTATION INFRASTRUCTURE
This section presents the Town’s standard for multimodal transportation infrastructure based on the existing level of investment in that infrastructure. This standard is used to calculate the Transportation Impact Fee (TIF).
INVENTORY OF TOWN WIDE TRANSPORTATION INFRASTRUCTURE
The investment that the Town has made to date in its transportation network depends upon the multimodal transportation network that connects residential neighborhoods, retail and employment centers, and other destinations across and outside the Town. Streets and other transportation infrastructure that only provide access to individual residential properties and do not provide connectivity between neighborhoods are excluded from this inventory.
The Town-wide multimodal transportation infrastructure was quantified using street centerline Geographic Information System (GIS) data, the map of streets by classification published in the Town’s General Plan 2040, and online aerial photographs. The transportation network is defined as arterials and collectors that provide connectivity among different neighborhoods in Los Gatos and to regional destinations. This network includes the entire roadway curb-to-curb (vehicle travel lanes, bicycle lanes, and on street parking), as well as adjacent sidewalks, medians, traffic signals, and off-street paths. As mentioned above, the network excludes local streets used primarily for access to individual properties within specific neighborhoods.
Figure 1 shows a map of the Town’s existing citywide transportation network that is eligible for improvement or expansion projects funded by the proposed Transportation Impact Fee. Note that in addition to the collector streets shown in the map, there are some additional facilities that provide access to school sites2. These facilities function as collectors, although not formally classified as such, and would be eligible for TIF funded improvements.
EXISTING LEVEL OF INVESTMENT AND MAXIMUM JUSTIFIABLE FEE FOR THE
TRANSPORTATION IMPACT FEE
Total unit costs for transportation infrastructure are provided in Table 5. Additional details on the unit costs may be found in the Appendix, Section 2. Quantities for each component of the inventory and estimated historical level of investment per DUE are summarized in Table 6. 2 These facilities include Fischer Avenue and Roberts Road.
TOWN OF LOS GATOS TRANSPORTATION IMPACT FEE • NEXUS STUDY • NOVEMBER 2023 13 TABLE 5: TRANSPORTATION INFRASTRUCTURE UNIT COSTS (2022 $) a) Construction costs include temporary traffic control where applicable. b) Percent of total before contingency. Includes 20% for project design, 15% for construction engineering, and 5% for project management.
c) Construction Cost*(1+Design Management%) * (1+ Contingency%). d) Cost of street lighting, water pollution prevention, street furniture and drainage not included in unit cost Source: DKS Associates
INFRASTRUCTURE
TYPE
UNIT CONSTRUCTION
COST a
DESIGN &
MANAGEMENT
COST b
CONTINGENCY TOTAL UNIT
COST c
ROADWAY Square Foot $56 40% 20% $94
SIDEWALK Square Foot $38 40% 20% $64
CURB & GUTTER Linear Foot $127 40% 20% $214
MEDIAN Square Foot $50 40% 20% $85
BICYCLE PATH Square Foot $38 40% 20% $65
BICYCLE LANE Linear Foot $8 40% 20% $14
TRAFFIC SIGNAL Intersection $654,000 40% 20% $1,098,720
TOWN OF LOS GATOS TRANSPORTATION IMPACT FEE • NEXUS STUDY • NOVEMBER 2023 14 FIGURE 1: MAP OF TOWN-WIDE INFRASTRUCTURE
TOWN OF LOS GATOS TRANSPORTATION IMPACT FEE • NEXUS STUDY • NOVEMBER 2023 15 TABLE 6: EXISTING FACILITY STANDARD & LEVEL OF INVESTMENT Note: All dollars in 2022 $.
Source: Table 10.
TRANSPORTATION IMPROVEMENTS AND COST PER DUE
The required projects identified to maintain the existing level of investment to accommodate future growth are summarized in Table 4. A detailed listing of transportation improvements or projects is provided in the Appendix, Section 1. Dividing the cost of the transportation improvements by the expected growth in DUEs results in the cost per DUE or recommended fee level as shown in Table 7.
INFRASTRUCTURE
TYPE
INVENTORY
EXISTING
DWELLING
UNITS
EQUIVALENTS
DUE
EXISTING
FACILITIES
STANDARD
UNITS PER
DUE
REPLACEMENT
COSTS
PER UNIT
EXISTING
LEVEL OF
INVESTMENT
($ PER DUE)
ROADWAY 11,208,202 square feet 21,997 509.5 $94 $47,936 SIDEWALK 1,481,236 square feet 21,997 67.3 $64 $4,299
CURB &
GUTTER
311,245 linear feet 21,997 14.1 $214 $3,024
MEDIAN 88,386 square feet 21,997 4.0 $85 $340
BICYCLE
PATH
244,859 square feet 21,997 11.1 $65 $718
BICYCLE
LANE
65,719 linear feet 21,997 3.0 $14 $42
TRAFFIC
SIGNAL
31 intersections 21,997 0.001 $1,098,720 $1,548
Total $57,907
TOWN OF LOS GATOS TRANSPORTATION IMPACT FEE • NEXUS STUDY • NOVEMBER 2023 16 TABLE 7: TRANSPORTATION IMPROVEMENT COST PER DWELLING UNIT EQUIVALENT
ALLOCATED TRANSPORTATION IMPROVEMENT
COSTS
$41,700,514
GROWTH (2022-2040) IN DWELLING UNIT
EQUIVALENTS (DUES)
2,598
COST PER DUE (TRANSPORTATION
IMPROVEMENT FEE PER DUE)
$16,051
Sources: Table 5 and Table 3.
FEE SCHEDULE
This section summarizes the Town’s planned transportation improvements along with associated costs to demonstrate a reasonable relationship between new development and the use of fee revenues to accommodate that development.
The Town may adopt any fee level below the maximum justified fees, taking into account economic development policy, other policy considerations, and fee levels charged by comparable jurisdictions (see Table 11). The Town may also adopt fees with varying levels of discount by land use category based on reasonable policy considerations, such as more deeply discounting industrial fees to encourage industrial development as part of an economic development policy.
The allocated cost of the transportation capital improvements list totals $41,700,514. The full list of projects and estimated costs is provided in the Appendix, Section 1.
The estimated cost to build out the capital improvement program is summarized in Table 4. Only capital projects eligible for funding through the TIF program are listed. The estimated costs account for known funding from other sources, such as the countywide Measure B program. The included projects would improve, enhance, and/or expand the Town’s existing transportation system.
The basic fees per DUE described in the preceding sections are scaled according to relative transportation demand rates to arrive at fee schedules by type of land use. The factors scaling the fee by transportation demand (DUE rates) have been calculated using daily trip generation rates, as explained under the section titled, “Transportation Demand Factors”.
RECOMMENDED FEE SCHEDULE
The recommended fee schedule shown in Table 8 is the cost per DUE to deliver the planned Transportation Improvement projects and is below the maximum justifiable fee (historical level of investment).
TOWN OF LOS GATOS TRANSPORTATION IMPACT FEE • NEXUS STUDY • NOVEMBER 2023 17 TABLE 8: RECOMMENDED FEE SCHEDULE
LAND USE
IMPROVEMENT
COST PER
DWELLING UNIT
EQUIVALENT
DWELLING UNIT
EQUIVALENT PER
UNIT
FEE UNIT
SINGLE-FAMILY
RESIDENTIAL
$16,051 1.00 $16,051 per dwelling unit
MULTI-FAMILY
RESIDENTIAL
$16,051 0.71 $11,472 per dwelling unit
RETAIL $16,051 1.40 $22,391 per 1,000 square
feet
OFFICE $16,051 1.23 $19,731 per 1,000 square
feet
INDUSTRIAL $16,051 0.58 $9,255 per 1,000 square
feet
Sources: Table 3 and Table 7
RESIDENTIAL FEES PER SQUARE FOOT
Per AB 602, residential fees adopted after July 1, 2022, must be charged proportionally to the size of the dwelling unit. Fees per DUE are divided by the average size of single family and multifamily units to arrive at a fee per residential square foot. The average size of single family and multi family dwelling units is derived from the five years of building permit data in Los Gatos. Note that the square footage is based on the physical coverage of the living quarters of the residential unit (i.e., does not reflect yard, garage, or other areas of the property). The resulting residential fees per square foot are summarized in Table 9.
TABLE 9: CALCULATION OF RESIDENTIAL FEES PER SQUARE FOOT a Includes ADUs of 750 or more square feet.
Source: Town of Los Gatos.
TOTAL TIF
PROGRAM FEES
AVERAGE SIZE
(SQUARE FEET)
TIF PROGRAM FEES
PER SQUARE FOOT
SINGLE FAMILY DWELLING
UNITS a
$16,051 2,632 $6.10
MULTI FAMILY DWELLING
UNITS
$11,472 1,649 $6.96
TOWN OF LOS GATOS TRANSPORTATION IMPACT FEE • NEXUS STUDY • NOVEMBER 2023 18
FEES FOR SPECIALIZED LAND USES
Fees for development projects that do not correspond to one of the given generic land use categories may be determined by multiplying the fee per single family dwelling unit by the appropriate DUE rate and the quantity of specialized land use. The DUE rate is calculated with the applicable average weekday trip generation rate using the following formula:
DUE Rate = Average weekday trips per unit of specialized land use/ Average weekday trips per single family dwelling unit /
The transportation impact fees are given by:
Fee per single family dwelling unit * DUE rate * specialized land use quantity Example: Fees for self-storage project
Average daily trip generation rates:
Single family dwelling unit = 9.43 trips per dwelling unit (DUE) Mini warehouse or self-storage = 1.45 trips per thousand square feet (KSF) DUE Rate = 1.45/9.43 = 0.15 DUE/KSF
Fee per KSF of mini warehouse = 0.15 DUE/KSF*$16,282/DUE = $2,407 per KSF
COMPARABLE FEE RATES
When adopting a fee level, one consideration is the level of fees charged by nearby jurisdictions as well as the current transportation impact fees being collected in Los Gatos. Table 10 shows the fees charged by several South Bay jurisdictions as well as the current fee level for Los Gatos.
TOWN OF LOS GATOS TRANSPORTATION IMPACT FEE • NEXUS STUDY • NOVEMBER 2023 19 TABLE 10: TRANSPORTATION IMPACT FEES IN COMPARABLE JURISDICTIONS a Based on $1,015 per daily trip.
Sources:
Menlo Park: Development guidelines City of Menlo Park, rates updated June 2022. San Mateo: San Mateo 2022-2023 Fee Schedule. San Carlos: City of San Carlos Development Impact Fees 2022-2023 rates (cost is assessed as $7.316*PM peak hour trips). Los Altos: City of Los Altos Proposed 2022-2023 Fees. Redwood City: Redwood City Development Fee Schedule (downtown area discounted fees not shown). Palo Alto: FY22 Impact Fee Information Sheet, $8,572.00 per net new PM peak hour trip, Charleston/Arastradero special zone discounted fees not shown. East Palo Alto: East Palo Alto Master Fee Schedule 2022, pm peak hour vehicle trip rate of $7,868.71 per trip, with internal trips percentage considered.
Mountain View: Mountain View Development Fee Schedule 2022-2023, other low-trip-generating uses are charged at $3,100.00/am and pm peak-hour trip. Cupertino: City of Cupertino Engineering Fee Schedule 2022. Gilroy: City of Gilroy 2022 Impact Fees. Morgan Hill: City of Morgan Hill Fee Schedule, 2021. Santa Clara: Santa Clara Master Fee Schedule (rates shown apply for projects entitled after Oct 22, 2018). Implementation Policy and Revenue Projections
JURISDICTION
(UPDATE YEAR)
SINGLE
FAMILY
RESIDENTIAL
PER DU
MULTIFAMILY
RESIDENTIAL
PER DU
OFFICE
(PER KSF)
RETAIL
(PER KSF)
HOTEL
(PER ROOM)
MENLO PARK $18,845 $6,352 $21,880 $12,760 $11,422
SAN MATEO $6,868 $3,468 $8,367 $27,735 $4,368
SAN CARLOS $7,243 $4,097 $8,413 $27,874 $4,390
LOS ALTOS $6,774 $4,159 $9,994 $12,409
REDWOOD CITY $1,617 $992 $2,380 $940 $945
PALO ALTO Citywide: $9,266 per net new PM peak hour trip Charleston/Arastradero district: $460/KSF commercial or $1,599 per DUE EAST PALO ALTO $2,870 $2,025 $8,360 8,360
MOUNTAIN VIEW $5,364 $3,004 $5,720 5,720 $3,317
CUPERTINO $6,797 $4,215 $19,150 10,940 $3,278
GILROY
“Low-Density”
$13,012
“High-Density”
$10,548
Low Traffic Commercial: 14,397
High Traffic Commercial:
$29,082
MORGAN HILL $3,585
>1,200SF:
$2222
<1,200: $1399
All remaining uses charged using $3,585/peak
hour trip
CITY OF SANTA
CLARA $1,391 $618 $1,610
Retail
elements
>50KSF:
$5,350
$843
CURRENT LOS
GATOS FEES a $9,571 $6,841 $1,015 per daily trip
PROPOSED LOS
GATOS FEES $16,051 $11,472 $19,731 $22,391
TOWN OF LOS GATOS TRANSPORTATION IMPACT FEE • NEXUS STUDY • NOVEMBER 2023 20
PROJECTS SUBJECT TO THE FEE PROGRAM
The Town’s Transportation Impact Policy provides for the following:
1. Projects that are determined by the Town to generate one or more new net Average Daily Trips (ADT) are subject to the Policy (and would presumably pay into the TIF program).
2. Accessory Dwelling Units (ADUs) smaller than 750 square feet shall be exempted from the requirements of Transportation Analysis and the TIF program3.
3. The Town Council may exempt housing developments for extremely low, very-low, low-, and moderate-income residents (as defined by Town Ordinance, General Plan, or statute) from all or a portion of the traffic impact mitigation fee upon making a finding that the development provides a significant community benefit by meeting current needs for affordable housing. Any such exemptions will reduce the amount of revenue expected to be collected and require additional supplemental funding sources to fully deliver the project list.
In addition, the Town’s TIF program will be subject to the requirements of California Government Code Section 66005.1, which requires a discounted fee rate reflecting lower automobile trip generation rates for qualifying housing developments. To qualify a development must be located within a half mile of a transit station (as defined in California Government Code Section 65460.1), include convenience retail uses a half mile of the housing, and limit parking spaces. Although the Town does not currently have a transit station meeting the statutory requirement, this statute may become applicable at some point in the future.
REVENUE PROJECTIONS AND USE
The amount of revenue that can be collected under the new TIF program will depend on the fee levels adopted by the Town as well as the expected growth over the planning horizon. Table 11 shows the estimated revenue to be collected by the updated TIF program assuming adoption of the recommended Transportation Improvement Fee.
3 Proposed change to current policy which exempts all ADUs.
TOWN OF LOS GATOS TRANSPORTATION IMPACT FEE • NEXUS STUDY • NOVEMBER 2023 21 TABLE 11: MAXIMUM REVENUE PROJECTION
LAND USE TIF FEES PER UNIT EXPECTED
GROWTH
REVENUE
ESTIMATE
SINGLE FAMILY
RESIDENTIAL
$16,051 per dwelling unit 333 $5,344,918
MULTI-FAMILY
RESIDENTIAL
$11,472 per dwelling unit 2,072 $23,770,305
RETAIL $22,391 per 1,000 square
feet
368 $8,236,767
OFFICE $19,731 per 1,000 square
feet
147 $2,891,486
INDUSTRIAL $9,255 per 1,000 square
feet
157 $1,457,037
Total $41,700,514
Sources: Table 1 and Table 8.
APPENDIX
TOWN OF LOS GATOS TRANSPORTATION IMPACT FEE • NEXUS STUDY • NOVEMBER 2023 23
CONTENTS
SECTION 1. PROJECT LIST
SECTION 2. UNIT COST DETAIL
TOWN OF LOS GATOS TRANSPORTATION IMPACT FEE • NEXUS STUDY • NOVEMBER 2023 24 SECTION 1. PROJECT LIST
Town of Los Gatos TIF Project List
ID Project Name Category Source Description
Fee Program
Component
Cost Estimate
($2022)
Estimated
Funding fromOther Sources
Unfunded Cost
Allocated to TIF
Calculation
1 State Route 17 Corridor Congestion Relief Project 1 Safety and Capacity Improvements Santa Clara VTA Measure B Projects Modify the SR 17/SR 9 interchange’s on- and off-ramps Implement advance transportation technology Install traffic signals control system, traveler information system, and ramp meters TI 110,820,000 $ $ 99,738,000 $ 10,482,000 2 Shannon Rd Widening and Safety Improvements Safety and Capacity Improvements Town of Los Gatos Capital
Improvement Program
Add shoulders and retaining wall between Santa Rosa Drive and Diduca Way. TI 4,371,513 $ $ 1,471,513 $ 2,900,000
3 Union Avenue Widening and Sidewalks Complete Streets (Carryover) Carryover from previous TIF project list Add sidewalks and bike lanes between Blossom Valley Dr to Lynne Ave TI 4,226,672 $ $ 3,170,004 $ 1,056,668
4 Traffic Signal Modernization Program Traffic Signal
Town of Los Gatos Capital
Improvement Program
Smart Signals Project will modernize and upgrade the Town’s traffic signals/communications equipment to provide real‐ time data for the advanced traffic management and adaptive traffic control systems TI 20,452,114 $ $ 12,452,114 $ 8,000,000 5 Highway 17 Bicycle & Pedestrian Overcrossing BPMP Priority Projects Bicycle and Pedestrian Master Plan Overcrossing of SR‐17 south of Blossom Hill Road VMT 25,288,625 $ $ 18,966,469 $ 6,322,156 6 Kennedy Sidewalk & Bike Lanes BPMP Priority Projects Kennedy Road Add sidewalks and Class II bicycle lanes from Los Gatos Bld to Englewood Ave VMT 1,402,065 $ $ 138,740 $1,263,325
7 Sidewalk Gap Filling Projects Other BPMP Projects ‐ New Facilities Bicycle and Pedestrian Master Plan Fill gaps in sidewalks, multiple locations on Town‐wide circulation network VMT 600,000 $ $ 600,000
8 New and Expanded Bicycle and Pedestrian
Facilities (Non Priority Projects) Other BPMP Projects ‐ New Facilities Bicycle and Pedestrian Master Plan Construct new bicycle lanes, cycle tracks and multiuse paths VMT 2,000,000 $ $ 2,000,000 9 Los Gatos Almaden Road Complete Streets
Improvements Complete Streets (Carryover) Carryover from previous TIF project list Fill gaps in sidewalks between Peach Blossom Lane and
Camino del Cerro TI 4,226,672 $ $ 3,170,004 $ 1,056,668 10 Los Gatos Boulevard Multimodal Widening Complete Streets (Carryover) Carryover from previous TIF project list Add sidewalks and bicycle lanes between Samaritan Drive and Camino Del Sol TI 5,635,562 $ $ 4,226,672 $ 1,408,891
11 Parking Program Implementation Lighting and Signage Downtown Parking Roadmap Add lighting, signage, and other project elements TI 400,000 $ $ 400,000 12 Bicyle and Pedestrian Improvements Program ‐
Safety Improvements
Other BPMP Projects ‐ Bicyclist and
Pedestrian Safety
Bicycle and Pedestrian Master Plan;
Local Road Safety Plan
High visibility crosswalks, midblock crossings, pedestrian beacons, and other project elements on Town‐wide
circulation network TI 1,000,000 $ $ 1,000,000
13 Priority Projects from Bicycle and Pedestrian
Master Plan BPMP Priority Projects Bicycle and Pedestrian Master Plan Work towards implement priority projects from BPMP as
feasible VMT 11,232,751 $ $ 5,616,375 $ 5,616,375
Notes: Total: 42,106,083 $
1) Unfunded cost for this project reduced by 2023 transfer of traffic impact fee funding to project account. 11/14/2023
TOWN OF LOS GATOS TRANSPORTATION IMPACT FEE • NEXUS STUDY • NOVEMBER 2023 25 FIGURE 2: TIF PROJECTS
TOWN OF LOS GATOS TRANSPORTATION IMPACT FEE • NEXUS STUDY • NOVEMBER 2023 26 SECTION 2. UNIT COST DETAIL
# Infrastructure Type Unit
Total Unit
Cost1 Total Quantity Total Cost
1 Roadway Square Foot $ 94 11,208,202 $ 1,054,467,624 2 Sidewalk Square Foot $ 64 1,481,236 $ 94,562,121 3 Curb & Gutter Linear Foot $ 214 311,245 $ 66,511,907 4 Median Square Foot $ 85 88,386 $ 7,483,786 5 Bicycle Path Square Foot $ 65 244,859 $ 15,796,361 6 Bicycle Lane* Linear Foot $ 14 65,719 $ 927,422 7 Traffic Signal** Intersection 1,098,72 $ 0 31 $ 34,060,320 Sum 1,273,809,54 $ 0
1 See Unit Cost Table for detailed information
Town of Los Gatos Impact Fee
Transportation Infrastructure Costs (2022)
P:\P\22\22046‐000 Los Gatos TIF Update\05 Analysis\03 Inventory\Los Gatos Transportation Impact Fee Unit Costs 11‐21‐2022
# Infrastructure Type Unit Construction
Cost ($)
Design &
Management
Cost1
Contingency
Total Unit
Cost2
1 Roadway3 Square Foot 56 $ 40% 20% 94 $ 2 Sidewalk Square Foot $ 38 40% 20% 64 $ 3 Curb & Gutter Linear Foot $ 127 40% 20% 214 $ 4 Median Square Foot $ 50 40% 20% 85 $ 5 Bicycle Path Square Foot $ 38 40% 20% 65 $ 6 Bicycle Lane Linear Foot $ 8 40% 20% 14 $ 7 Traffic Signal Intersection 654,00 $ 0 40% 20% 1,098,72 $ 0 1 2 Construction Cost*(1+Design Management%)*(1+ Contingency%) 3 Cost of street lighting, water pollution prevention, street furniture and drainage not included in unit cost Transportation Infrastructure Unit Costs (2022)
Town of Los Gatos Impact Fee
Percent of total before contingency. Includes 20% for project design, 15% for construction engineering, and 5% for project management
Appendix, Section 2 ‐ 2
DKS Associates Planning Cost Estimate
1970 Broadway Ste 740, Oakland CA 94612 Project Number
Infrastructure Type: Roadway
Date of Estimate: Jul. 9, 2022 Revision No.
Revision Date
Prepared by: Tommy Cho Revised by
No. Description Quantity Units Unit Cost Total
1 Clearing and Grubbing 1.00 SF $3.48 3.48 $
2 Remove Existing Pavement (Obliteration) 1.00 SF $6.50 6.50 $ 3 Roadway Excavation (2' depth) 0.07 CY $190.00 14.07 $ 4 Finish Grading within Right of Way 1.00 SF $0.38 0.38 $ 5 Class 2 Aggregate Base (18") 0.06 CY $196.00 11.76 $
6 Asphalt Concrete (6")(Type A, assume 150
lbs/CF) 0.04 Ton $280.00 10.50 $
7 Temporary Traffic Control 1.00 LS $4.70 4.70 $
8 Mobilization 1 LS 4.70 $ 4.70 $
CONTRACT ITEMS LESS MOBILIZATION AND TEMP TRAFFIC CONTROL (TO NEAREST 1,000) 47.00 $ Total Contract Items 56.00 $
Click here if this project is a surface treatment or overlay project.
Click here if the project schedule for this project is to be 50 days or more; also click here if this is a bridge Appendix, Section 2 ‐ 3
DKS Associates Planning Cost Estimate
1970 Broadway Ste 740, Oakland CA 94612 Project Number
Infrastructure Type: Sidewalk
Date of Estimate: Jul. 9, 2022 Revision No.
Revision Date
Prepared by: Tommy Cho Revised by
No. Description Quantity Units Unit Cost Total
1 Clearing and Grubbing 1.00 SF $0.63 0.63 $
2 Finish Grading within Right of Way 1.00 SF $0.38 0.38 $ 3 Concrete Sidewalk 1.00 SF $28.63 28.63 $
5 Curb Ramp 0.0002 EA $5,000.00 1.00 $
6 Temporary Traffic Control 1 LS 3.10 $ 3.10 $
7 Mobilization 1 LS 3.10 $ 3.10 $
CONTRACT ITEMS LESS MOBILIZATION AND TEMP TRAFFIC CONTROL (TO NEAREST 1,000) 31 Total Contract Items 38 $
Click here if this project is a surface treatment or overlay project.
Click here if the project schedule for this project is to be 50 days or more; also click here if this is a bridge Appendix, Section 2 ‐ 4
DKS Associates Planning Cost Estimate
1970 Broadway Ste 740, Oakland CA 94612 Project Number
Infrastructure Type: Curb and Gutter
Date of Estimate: Jul. 9, 2022 Revision No.
Revision Date
Prepared by: Tommy Cho Revised by
No. Description Quantity Units Unit Cost Total
1 Curb and Gutter 1 LF $106.40 106 $
2 Sawcut Gutter 1 LF - $
3 Temporary Traffic Control 1 LS $10.60 11 $
4 Mobilization 1 LS $10.60 11 $
CONTRACT ITEMS LESS MOBILIZATION AND TEMP TRAFFIC CONTROL (TO NEAREST 1,000) 106 $ Total Contract Items 127 $
Click here if this project is a surface treatment or overlay project.
Click here if the project schedule for this project is to be 50 days or more; also click here if this is a bridge Appendix, Section 2 ‐ 5
DKS Associates Planning Cost Estimate
1970 Broadway Ste 740, Oakland CA 94612 Project Number
Infrastructure Type: Median
Date of Estimate: Jul. 9, 2022 Revision No.
Revision Date
Prepared by: Tommy Cho Revised by
No. Description Quantity Units Unit Cost Total
1 Median (Island) Paving 1.00 SF $17.00 17 $
2 Class 2 Aggregate Base (6”) 1.00 SF $4.00 4 $
3 Curb 0.20 LF $106.40 21 $
4 Temporary Traffic Control 1 LS $4.20 4 $
5 Mobilization 1 LS 4.20 $ 4 $
CONTRACT ITEMS LESS MOBILIZATION AND TEMP TRAFFIC CONTROL (TO NEAREST 1,000) 42 $ Total Contract Items 50 $
Click here if this project is a surface treatment or overlay project.
Click here if the project schedule for this project is to be 50 days or more; also click here if this is a bridge Appendix, Section 2 ‐ 6
DKS Associates Planning Cost Estimate
1970 Broadway Ste 740, Oakland CA 94612 Project Number
Infrastructure Type: Bicycle Path (Shared Use Path)
Date of Estimate: Jul. 9, 2022 Revision No.
Revision Date
Prepared by: Tommy Cho Revised by
No. Description Quantity Units Unit Cost Total
1 Clearing and Grubbing 1.00 SF $3.48 3.48 $
2 Remove Existing Pavement (Obliteration) 1.00 SF $6.50 6.50 $ 3 Roadway Excavation (1.5') 0.06 CY $190.00 11.40 $
3 Finish Grading within Right of Way 1.00 SF $0.38 0.38 $ 4 Class 2 Aggregate Base (4") 0.02 CY $196.00 2.94 $
5 Hot Mix Asphalt (Type A) (4")(assume 150
lbs./CF) 0.03 Ton $280.00 7.00 $
6 Temporary Traffic Control 1 LS $3.20 3.20 $
7 Mobilization 1 LS 3.20 $ 3.20 $
CONTRACT ITEMS LESS MOBILIZATION AND TEMP TRAFFIC CONTROL (TO NEAREST 1,000) 32 $ Total Contract Items 38 $
Click here if this project is a surface treatment or overlay project.
Click here if the project schedule for this project is to be 50 days or more; also click here if this is a bridge Appendix, Section 2 ‐ 7
DKS Associates Planning Cost Estimate
1970 Broadway Ste 740, Oakland CA 94612 Project Number
Infrastructure Type: Bicycle Lane (Class II)
Date of Estimate: Jul. 9, 2022 Revision No.
Revision Date
Prepared by: Tommy Cho Revised by
No. Description Quantity Units Unit Cost Total
1 Remove existing striping 1.00 LF $2.30 2.30 $
2 Striping 1.00 LF $4.51 4.51 $
3 Signage 0.0008 EA $500.00 0.38 $
4 Temporary Traffic Control 1 LS $0.70 0.70 $
5 Mobilization 1 LS 0.70 $ 0.70 $
CONTRACT ITEMS LESS MOBILIZATION AND TEMP TRAFFIC CONTROL (TO NEAREST 1,000) 7 $ Controtal Contract Items 8 $
Click here if this project is a surface treatment or overlay project.
Click here if the project schedule for this project is to be 50 days or more; also click here if this is a bridge Appendix, Section 2 ‐ 8
DKS Associates Planning Cost Estimate
1970 Broadway Ste 740, Oakland CA 94612 Project Number
Infrast Traffic Signal for One Intersection
Date oJul. 9, 2022 Revision No.
Revision Date
PreparTommy Cho Revised by
No. Description Quantity Units Unit Cost* Total
1 Furnish & Install Cabinet and Controller on New Foundation 1 EA $45,000.00 45,000 $ 2 Furnish and Install Fiber Switch In Controller Cabinet. 1EA $2,500.00 2 $ ,500 3 Terminate fiber optic cable in cabinet 1EA $2,500.00 2 $ ,500 4 Splice 12 Strand SMFO Cable to trunk cable in vault 1EA $1,000.00 1 $ ,000 5 Furnish & Install Opticom EVP system in signal cabinet 1EA $7,500.00 7 $ ,500 6 Furnish & Install Opticom Card Rack 1 EA $1,000.00 $ 1,000 7 Furnish & Install Opticom Detector 4 EA $1,200.00 $ 4,800 8 Furnish & Install VIVDS System, incl. cameras, comms
manager, and SDLC hub (per intersection) 1 EA $25,000.00 25,000 $ 9 Furnish & Install CCTV Camera 1EA $5,000.00 $ 5,000
10 Furnish & Install Detector Handhole 4 EA $500.00 $ 2,000 11 Furnish & Install Detector Loops (6'x6') 8EA $2,000.00 $ 16,000 12 Furnish & Install LED Countdown Pedestrian Signal Head 8EA $800.00 6 $ ,400 13 Furnish & Install Polara Navigator Pedestrian Pushbutton 8EA $1,200.00 $ 9,600 14 Furnish & Install Polara CCU in Cabinet 1 EA $4,500.00 $ 4,500 15 Furnish & Install SNS on Mast Arm 4 EA $2,000.00 $ 8,000 16 Furnish & Install LED Luminaire 4 EA $1,500.00 $ 6,000 17 Furnish & Install Photoelectric Control Unit (PEU) 1EA $500.00 $ 500 18 Furnish & Install Pull Box #5 4 EA $900.00 $ 3,600
19 Furnish & Install Pull Box #6 2 EA $1,000.00 $ 2,000 20 Furnish & Install Fiber Optic Splice Vault 1 EA $1,250.00 $ 1,250 21 Furnish and install 2" conduit with backfill and trenching 100 LF $120.00 $ 12,000 22 Furnish and install 3" conduit with backfill and trenching 1000 LF $125.00 $ 125,000 23 Furnish and install 4" conduit with backfill and trenching 100 LF $130.00 $ 13,000 24 Furnish & Install Type 1-B 4' Pole and Foundation 4EA $3,500.00 $ 14,000 25 Furnish & Install Type 1-B 10' Pole and Foundation 4EA $6,500.00 $ 26,000 26 Furnish & Install Type 28-5-100 Pole and Foundation 4EA $26,000.00 $ 104,000 27 Furnish & Install Signal Head Mount Type SV-1-T 4EA $700.00 $ 2,800 28 Furnish & Install Pedestrian Signal Head Mount SP-2-T 4EA $1,000.00 $ 4,000 29 Furnish & Install #14 Conductors 7000 LF $1.50 $ 10,500 30 Furnish & Install #10 Conductors 1500 LF $2.00 $ 3,000 31 Furnish & Install #8 Conductors 600 LF $2.50 $ 1,500 32 Furnish & Install #6 Conductors 50 LF $3.00 $ 150
33 Furnish & Install #2 Conductors 1000 LF $4.00 $ 4,000 34 Furnish & Install Detector Lead-in Cables 250 LF $3.00 $ 750 35 Furnish & Install EVP Cable (Opticom Model 138) 500 LF $3.00 $ 1,500 36 Furnish & Install CCTV Cable (CAT6) 100 LF $3.00 $ 300 37 Furnish & Install VIVDS Cable (3-wire) 500 LF $3.00 $ 1,500 38 Furnish & Install 12-strand Fiber Optic Cable 300 LF $5.00 $ 1,500 39 Furnish & Install Trace Cable (#10) 300 LF $2.00 $ 600 40 Temporary Traffic Control 1 LS $54,500.00 $ 54,500
41 Mobilization 1 LS 54,500.00 $ $ 54,500
*2020 unit costs
$ 545,000
Total Contract Items 654,000 $
CONTRACT ITEMS LESS MOBILIZATION AND TEMP TRAFFIC CONTROL, ESC TO 2022 AT 3% (TO NEAREST 1,000)
Click here if this project is a surface treatment or overlay project.
Click here if the project schedule for this project is to be 50 days or more; also click here if this is Appendix, Section 2 ‐ 9
PREPARED BY: Nicolle Burnham
Parks and Public Works Director
Reviewed by: Town Manager and Town Attorney
110 E. Main Street Los Gatos, CA 95030 ● (408) 354-6832 www.losgatosca.gov
TOWN OF LOS GATOS
COUNCIL AGENDA REPORT
MEETING DATE: 11/21/2023
ITEM NO: 17
DATE: November 16, 2023
TO: Mayor and Town Council
FROM: Laurel Prevetti, Town Manager
SUBJECT: Receive a Report on Traffic Management at the Shannon Road Repair (CIP Project No 811-0008) Location (Between Diduca Way and Santa Rosa Drive) and Provide Feedback
RECOMMENDATION:
Receive a report on traffic management at the Shannon Road repair (CIP Project No 811-0008) location (between Diduca Way and Santa Rosa Drive) and provide feedback.
BACKGROUND:
The northerly travel lane of Shannon Road between Diduca Way and Santa Rosa Drive was in disrepair before the Town annexed the area from the County of Santa Clara. The County completed some repairs prior to the Town’s acceptance of the road, but additional repairs are needed.
Staff has been working with a consultant team to develop plans to repair this section of the roadway. The repair will include removal of the failing road base, construction of a retaining wall on the north side of the road, and reconstruction of the pavement, including the installation of guiderails and other necessary safety measures. The design work is complete, but property owner coordination is pending completion.
In July, the Town identified marked deterioration of the travel lane. Options to address this were considered and a one-way alternating traffic pattern with temporary traffic signals was selected as the preferred temporary measure due to the fact that project bidding was planned for the late fall 2023. The temporary measures allow the road to remain open for public use while preventing use of the travel lane, which is considered a hazard due to uneven pavement and at risk of failure.
PAGE 2 OF 3
SUBJECT: Receive a Report on Traffic Management at the Shannon Road Repair Location and Provide Feedback
DATE: November 16,2023
DISCUSSION:
The alternating traffic signal pattern has achieved the goal of preventing use of the deteriorated travel lane. Unfortunately, during the time it has been in place, staff has received numerous reports of drivers not obeying the signal, proceeding through the closure on the red light, and meeting on-coming traffic that progressed on the green light. Staff understands that drivers are impatient due to the length of time it takes for the one-way traffic to travel the distance of the impacted segment; however, drivers should be following basic traffic rules of stopping at a red signal.
Staff is considering three potential mitigation strategies as outlined below. Depending on the length of time required to secure the required approvals for construction, more than one of these may be required.
Strategy 1: Retain the existing traffic control and enhance signage and outreach to drivers and residents about how the lights function (including the fact that wait times could be three to four minutes) and observe if behavior improves.
Strategy 2: Re-evaluate implementing temporary improvements to the travel lane in question.
Staff had considered temporary repairs before implementing the alternating traffic pattern. At that time, it appeared that construction would begin in late winter of early spring of 2024 and it was not prudent to spend capital funds for a temporary repair. Depending on how long it takes to secure the approvals, this alternative may be reconsidered.
Strategy 3: Explore a full closure of Shannon Road. This approach would prevent drivers from ignoring the traffic control that is in place; however, staff is keenly aware that this strategy would create significant hardship for the community. If this is Council’s preferred option, staff would undertake legal research regarding the Town’s authority to close the road. If authorized, the Town would develop a work plan that includes communications to residents and the necessary infrastructure to support the closure.
CONCLUSION:
Staff will discuss the three strategies in more detail at the meeting and receive feedback from Town Council.
COORDINATION:
This memorandum has been coordinated with the Town Manager, Town Attorney and Finance Director.
PAGE 3 OF 3
SUBJECT: Receive a Report on Traffic Management at the Shannon Road Repair Location and Provide Feedback
DATE: November 16,2023
FISCAL IMPACT:
Each strategy will require expenditure of capital funds. Staff will provide estimates of these prior to the Council Meeting in an Addendum or Desk Item. The current balance in the CIP project budget is $3,748,617.
ENVIRONMENTAL ASSESSMENT:
The Shannon Road Repair project is a project as defined under CEQA but is Categorically Exempt (Sections 15301, 15302, 15303 and 15304). A Notice of Exemption has not been filed.
PREPARED BY: Nicolle Burnham
Director of Parks and Public Works
110 E. Main Street Los Gatos, CA 95030 ● (408) 354-6832 www.losgatosca.gov
TOWN OF LOS GATOS
COUNCIL AGENDA REPORT
MEETING DATE: 11/21/2023
ITEM NO: 17
DESK ITEM
DATE: November 21, 2023
TO: Mayor and Town Council
FROM: Laurel Prevetti, Town Manager
SUBJECT: Receive a Report on Traffic Management at the Shannon Road Repair (CIP Project No 811-0008) Location (Between Diduca Way and Santa Rosa Drive) and Provide Feedback
REMARKS
This Desk Item provides preliminary estimates of cost associated with the three strategies outlined in the staff report. It also provides the current engineer’s estimate for implementation of completed design for the full repair.
Strategy 1 – Maintain Existing One-Way Traffic Control
This option would retain the existing one-way traffic control, provide additional enhanced signage, and provide outreach to drivers and residents about how the lights function. The associated costs are as follows:
Fixed Costs
Initial implementation of one-way road closure: $33,800 (Prior Spending) Additional safety signage: $1,000 (New Spending)
Additional outreach: $250 (New Spending)
Total Fixed Cost: $35,300
Monthly Costs for the Duration of the Closure
Monthly signal rental: $7,300
Monthly fuel cost for generators: $1,400
Total Monthly Cost (per Month): $8,700
PAGE 2 OF 3
SUBJECT: Shannon Road Pedestrian and Bikeway Improvements Project (CIP No. 813- 0218)
DATE: November 21, 2023
REMARKS (continued):
Strategy 2 – Temporary Road Repairs
This option would construct temporary pavement repairs in the northern lane of Shannon Road, which is the area that generated the need for the one-way closure. This would allow Shannon Road to be reopened to two-way traffic until construction of the Shannon Road Repair Project. The temporary road repair would not provide any benefit towards the ultimate road repair project improvements and it would require the full closure of Shannon Road during the period of construction.
Estimated Cost to Repair Shannon Road Pavement: $150,000 - $200,000 Outreach: $250
Implementation of Traffic Control Plan: $12,500
Total Cost: $162,750 – $212,750
Strategy 3 – Full Closure of Shannon Road
This option would close Shannon Road between Santa Rosa Drive and Diduca Way from December 2023 through construction of the repair.
Outreach: $750
Implementation of Traffic Control Plan: $40,000
Total Cost: $40,270
FISCAL IMPACT:
Each strategy will require expenditure of capital funds. The staff report reported an incorrect current balance in the project budget as $3,748,617. The current budget balance is $4,184,770 as demonstrated in the fiscal table below. The $224,270 balance would be available to implement the traffic control strategies outlined above. If construction bids exceed the engineer’s estimate then additional funding may be needed for the permanent repair and this would be addressed at award of the construction bid.
PAGE 3 OF 3
SUBJECT: Shannon Road Pedestrian and Bikeway Improvements Project (CIP No. 813- 0218)
DATE: November 21, 2023
FISCAL IMPACT (continued):
Budget Costs
GFAR $ 4,879,064
Total Budget $ 4,879,064
Costs
Consultant Agreement & Construction Services (Includes
Expenses and Encumbrance) $ 694,294
Total Costs $ 694,294
Current Available Balance $ 4,184,770
Additional Expenditures:
Expenditure Budget Transfer (Requested in 11/21/23 Staff Report) $ 3,000
Engineer's Construction Estimate $ 3,597,700
10% Contingency $ 359,800
Subtotal $ 3,960,500
Total Costs $ 4,654,794
Available Balance $ 224,270
CIP No. 811-0008
Reviewed by: Town Manager
110 E. Main Street Los Gatos, CA 95030 ● (408) 354-6832 www.losgatosca.gov
TOWN OF LOS GATOS
COUNCIL AGENDA REPORT
MEETING DATE: 11/21/2023
ITEM NO: 18
DATE: November 12, 2023
TO: Mayor and Town Councilmembers
FROM: Gabrielle Whelan, Town Attorney
SUBJECT: Discuss and Provide Direction to Potentially Modify Town Policies and Procedures, Including Town Council Policy 2-04, “Town Council Code of Conduct,” Town Council Policy 2-05, “Planning Commission Policies and Procedures,” Town Council Policy 2-11, “Commission Appointments, Residency, and Attendance Requirements, and Establishing a Quorum,” and the Commissioner Handbook
RECOMMENDATION:
Discuss and provide direction to potentially modify Town Policies and Procedures, including Town Council Policy 2-04, “Town Council Code of Conduct,” Town Council Policy 2-05, “Planning Commission Policies and Procedures,” Town Council Policy 2-11, “Commission Appointments, Residency, and Attendance Requirements, and Establishing a Quorum,” and the Commissioner Handbook.
BACKGROUND:
The purpose of this agenda item is for the Town Council to discuss potential updates to the various Town documents that address Councilmember and Board and Commission member conduct. Currently the Town has a number of Town Council Policies relating to this topic:
Town Council Policy 2-04: Town Council Code of Conduct includes a disciplinary process and states its “expectations of conduct” apply to Board and Commission members as well (Attachment 1).
Town Council Policy 2-05: Planning Commission Policies and Procedures addresses legal and ethical standards, but not discipline (Attachment 2). The Commissioner Handbook provides:
PAGE 2 OF 4
SUBJECT: Direction on Potential Changes to Town Council Code of Conduct Policy and Related Policies
DATE: November 12, 2023
BACKGROUND (continued):
“If a member of a Town Board, Commission, or Committee does not follow the Commissioners Handbook, the Mayor or his/her designee will counsel that member regarding the rules and their importance to the Council and the Town (see Resolution 1999-167 and the Town Council Code of Conduct Policy).” In addition, Town Council Policy 2-11: Commission Appointments, Residency, and Attendance Requirements, and Establishing a Quorum provides that a Commissioner may be removed by a 3/5 vote of the Town Council for, among other things, failure to comply with all Town Policies, Guidelines, and Handbooks (Attachment 3, page 7). 1 At its February 17th meeting, the Policy Committee discussed potential modifications to the documents referenced above. A copy of the staff report with its attachments is included as Attachment 4. The Policy Committee recommended:
1) Clarifying that the Code of Conduct applies to members of Town Boards, Commissions, and Committees in addition to Town Councilmembers.
2) Providing specific examples of what constitutes a major as opposed to a minor violation of the Code of Conduct.
3) Setting forth a process for subject of a complaint to present facts to the Town Council. 4) In the event that a public hearing is held regarding recommended discipline, providing the subject of the complaint with ten minutes to make an introductory statement and five minutes at the end of the public hearing to make an additional statement. 5) Providing that censure be done by adoption of a written statement. 6) Providing clarification regarding the rules that apply when one is speaking on behalf of a Board or Commission versus providing one’s individual opinion.
The Policy Committee considered this topic again on March 28, 2023. Attachment 5 contains a copy of the staff report and its attachments. At the March 28th meeting, the Policy Committee recommended that this topic come to the full Town Council for discussion.
In October, staff brought to the Policy Committee’s attention that the Commission Appointment Policy contains language pertaining to conflict of interest which is better suited for the Town Council Code of Conduct Policy. The Committee agreed that when the Council discusses the Code of Code Policy, staff should suggest this modification and the removal of the conflict language from the Commission Appointment Policy.
1 In addition, Town Code Section 2.40.030 provides that the Town Council may remove any member of a Town board or commission from office prior to the expiration of the member’s term by the affirmative vote of not less than 3/5 of all the members of the Town Council.
PAGE 3 OF 4
SUBJECT: Direction on Potential Changes to Town Council Code of Conduct Policy and Related Policies
DATE: November 12, 2023
DISCUSSION:
The Town Clerk requested Codes of Conduct from all Santa Clara County jurisdictions. 2 Staff
has noted the following general themes:
The Code of Conduct can encompass both the Council and the Boards and Commissions or there can be separate Codes of Conduct for Councilmembers as opposed to Board and Commission members.
Some Codes of Conduct do not provide for Commissioner discipline. Instead, the Codes of Conduct provide that Commissioners can be removed by a 4/5 vote of the Council. Many Codes of Conduct do not establish a formal process for reviewing complaints.
Staff seeks direction from the Town Council on the following general questions:
1) Does the Town Council prefer that the Code of Conduct address only conduct? Or that the “Code of Conduct” be one chapter in a broader policy addressing Councilmember roles and responsibilities?
2) Should the complaint intake and processing procedure in the “Code of Conduct” apply to Board/Commission members as well as Town Councilmembers? If yes:
a. Should there continue to be a pre-determined evaluation committee or should complaints be handled on a case by case basis?
b. If there is a pre-determined evaluation committee, should the evaluation committee be the same for both Councilmember complaints and Board/Commission member complaints?
3) Should there be an option to discipline Board/ Commission members or should the option be removal only?3
a. If the option is removal only, should it be by a 3/5 or a 4/5 Town Council vote? 4) If there is an option for Board/Commission member discipline, should the options be the same as those for Councilmember discipline?
5) The Code of Conduct Policy currently provides that investigations will be conducted by contract attorneys. Does the Town Council prefer to use contract attorneys, non-lawyer investigators, or either?
2 A summary of local codes of conduct is contained in Attachment 6. 3 Town Council Policy 2-11: Commission Appointments, Residency, and Attendance Requirements and Establishing a Quorum currently provides that Commissioners may be removed by a majority vote of the Town Council for violations of the Code of Conduct. Other jurisdictions have policies providing that Commissioners may be removed by a majority vote (or in some instances, a 4/5 vote) of the Town Council.
PAGE 4 OF 4
SUBJECT: Direction on Potential Changes to Town Council Code of Conduct Policy and Related Policies
DATE: November 12, 2023
CONCLUSION:
Based on the Town Council’s feedback, staff will make proposed edits to the Code of Conduct Policy and conforming edits to any other affected Policies and the Commissioner Handbook and return to the Town Council for its consideration of the proposed revisions.
COORDINATION:
The preparation of this report was coordinated with the Town Manager’s Office.
FISCAL IMPACT:
Potential modifications to Council Policies and the Commissioner Handbook have no fiscal impact.
ENVIRONMENTAL ASSESSMENT:
This is not a project as defined in the California Environmental Quality Act, and no further action is required.
Attachments:
1. Town Council Policy 2-04: Town Council Code of Conduct
2. Town Council Policy 2-05: Planning Commission Policies and Procedures
3. Town Council Policy 2-11: Commission Appointments, Residency, and Attendance Requirements, and Establishing a Quorum
4. Staff report for February 28, 2023, Policy Committee meeting
5. Staff report for March 28, 2023, Policy Committee meeting
6. Summary of Code of Conduct Provisions from Other County Jurisdictions
Title: Planning Commission Policies and Procedures Policy Number: 2-05 Effective Date: 1983
Enabling Actions:
PURPOSE
Pages: 11
Revised Date: 5/8/1985; 11/18/1987;
9/22/93; 11/16/1998;4/16/2001;
12/6/2010;4/21/2015;9/20/2016;
8 20
-------
2019
This Policy is to inform Planning Commission Members of their roles, responsibilities, and functions, as well as operating procedures for meetings.
SCOPE
Since 1983, the Town Council has adopted Planning Commission Policies and Procedures. The Procedures address topics including the agenda format, Commissioner conduct at Planning Commission meetings, absences, evidence outside of formal hearings, findings, voting, and other issues. Periodically, the Town Council adopts revisions to the Procedures.
POLICY AND PROCEDURES
1. ORGANIZATION, OFFICERS, DUTIES
1.1 Organization.
The Planning Commission consists of seven voting members and shall be organized as prescribed by Town Code Section 29.20. 750 and the Town Council. All Planning Commissioners shall be appointed by the Town Council. Commissioners serve at the pleasure of the Town Council and may be removed prior to the end of his or her term by a four-fifths vote of the Town Council.
1.2 Officers.
A Chairperson (hereinafter Chair) and Vice-Chairperson (hereinafter Vice Chair) shall be elected annually from among the Commission's membership at the first meeting in January, to serve at the pleasure of the Commission for a term of office of one year.
ATTACHMENT 2
Page: Policy Number:
Title: Planning Commission Policies and Procedures 2 of 12 2- 05 The Chair shall:
a) Preside at all meetings of the Commission.
b) Sign documents of the Commission.
c) Determine meeting schedule and agenda items consistence with state law noticing requirements.
During the absence, disability or disqualification of the Chair, the Vice -Chair shall perform all the duties and be subject to all the responsibilities of the Chair.
The Vice -Chair shall succeed the Chair if he or she vacates the office before his or her term is completed and shall serve the unexpired term of the vacated office. ( A new Vice -Chair shall be elected at the next regular meeting.)
In the absence of the Chair and Vice -Chair, any other Commissioner shall call the Commission to order whereupon a Chair pro tem shall be elected from the Commissioners present to preside.
1. 3 Duties.
The functions, powers and duties of the Planning Commission shall consist of all those functions, powers and duties of a Planning Commission as provided in Chapters 3 and 4 of Title 7, commencing with Section 65100 of the California Government Code ( Planning and Zoning Law) and as the same may be hereafter amended. The Planning Commission shall perform such other duties and functions as may be designated in Town Code and by the Town Council.
1. 4 Support.
The Secretary of the Planning Commission is the Community Development Director or designee.
The Chair shall set the Agenda in consultation with the Secretary.
2. LEGAL AND ETHICAL STANDARDS
Planning Commissioners must serve as a model of leadership and civility to the community and treat all members of the public, each other, and the issues before them with respect to ensure open and effective government.
Page: Policy Number:
Title: Planning Commission Policies and Procedures 3 of 12 2- 05 To ensure the highest standards of respect and integrity during public meetings, Planning Commissioners shall:
1. Use formal titles. The Commissioners shall refer to one another formally during Commission meetings such as Chair, Vice Chair, Commissioner, or Mr., Mrs., or Ms., followed by the individual' s last name.
2. Practice civility and decorum in discussions and debate. Difficult questions, tough challenges to a particular point of view, and criticism of ideas and information are legitimate elements of free democracy in action. This does not allow, however, Commissioners to make abusive, slanderous, and personal comments, and/ or physical actions that could be construed as threatening. During public discussions, Commissioners shall be respectful of others and diverse opinions, practice objectivity, and allow for the debate of issues.
3. Honorthe role ofthe Chair in maintaining order and equity, and respect the Chair' s efforts to focus discussion on current agenda items. Objections to the Chair' s actions should be voiced politely and with reason.
4. Demonstrate effective problem -solving approaches. Commissioners are role models for residents, business people, and other stakeholders involved in public debate.
5. Base decisions on the -. written evidence, arguments or testimony and decisions should be made objectively and based upon the merits and substance of the matter at hand, not through established coalitions or well- defined voting blocks. Judgment of decisions should be reserved until all applicable information has been presented.
6. Be prepared and knowledgeable. To effectively lead and inform the public, Commissioners shall be prepared and informed about issues on the agenda.
7. Be respectful of other people' s time. Commissioners should stay focused, listen attentively, and act efficiently during public meetings. During public testimony, Commissioners should refrain from engaging the speaker in dialogue; however, for purposes of clarification, Commissioners may ask the speaker questions. Commission comment and discussion should commence upon the conclusion of all public testimony.
3. MEETINGS, STUDY SESSIONS, AGENDAS, AND STAFF REPORTS
3. 1 Quorum and Attendance at Meetings.
A quorum to conduct business shall consist of a majority of the total number of filled seats consistent with Town Council Resolution 2014-041. For example, if all seven Commissioners are seated, then a quorum consists of a minimum total of four members of the Commission. A quorum is not required for workshops.
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Title: Planning Commission Policies and Procedures 4 of 12 2- 05 Requests by Commissioners to attend a Commission meeting via telephonic appearance are actively discouraged. Telephonic attendance shall only be permitted in the event of extraordinary events such as a medical, family, or similar emergency requiring a Commissioner' s absence or in the event the Commissioner is out of the area on official Town business. In addition, at least a quorum of the Commission must participate from a location within the Town.
3. 2 Public Meetings.
All meetings shall be held in full compliance with the provisions of state law, ordinances of the Town, and these Policies and Procedures.
3. 3 Regular Meetings.
Regular meetings of the Commission shall be held on the second and fourth Wednesdays of each month in Town Council Chambers at 110 E. Main Street, Los Gatos, unless otherwise determined by the Commission. All regular meetings of the Commission will be called to order at 7: 00 p. m., unless advertised otherwise, canceled, or rescheduled.
The Commission with the consent of the majority of the Commission, adjourn its meetings on or before 11: 30 p. m. with any unfinished business being continued to the next regular, adjourned, or special meeting, unless the Commission votes to extend the meeting. At approximately 11: 15 p. m., the Chairperson will call for review of any remaining agenda items to consider whether they will likely be completed by 11: 30 p. m., or whether continuances should be considered. The Secretary of the Planning Commission, or designee, will post notice of any continued hearing or other unfinished business, as required by law.
3.4 Special Meetings.
A special meeting may be called at any time by the Chairperson of the Commission, or by a majority of its membership on its own motion, or at the direction of the Town Council. Notice shall be sent in compliance with the Ralph M. Brown Act, Government Code section 54950, et seq. (" Brown Act") and the Los Gatos Town Code.
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Title: Planning Commission Policies and Procedures 5 of 12 2- 05
3. 5 Adjourned Meetings.
The Commission may adjourn any regular or special meeting to a time and place specified pursuant to the procedures set forth in the Brown Act.
3. 6 Workshops/ Study Sessions.
The Commission may hold a workshop as part of a regular or special meeting. When a matter is set for a workshop, public testimony on each item will generally be limited to three (3) minutes per person, at the discretion of the Chair. A workshop shall be for discussion only and the Commission will take no action on the workshop item.
3. 7 Agendas.
At least seventy-two ( 72) hours before a regular meeting, copies of the Commission' s agenda shall be posted in a location that is available for viewing by the public and made available on the Town website and at the Community Development Department. In accordance with the Brown Act, the Commission may not take action on any item that did not appear on the posted agenda, unless an exception is made as permitted under Government Code section 54954. 2. The Chair may rearrange the order of presentation of items appearing on the agenda as he or she may deem necessary or desirable for the conduct of the meeting. No person shall be entitled to rely upon the order in which public hearing items appear on the posted agenda, and any public hearing on any agenda may commence immediately upon the time the meeting is called to order.
3. 8 Staff Reports.
Staff Reports shall be made public whenever they are distributed to the Commission, except in the case of attorney/ client privilege memoranda. Staff reports will usually be prepared with recommendations and shall include the basis for these recommendations and included in the hearing record on any application.
If, in reviewing a staff report, a Commissioner sees omissions, has questions, or is looking for specific information, it is advisable that the Commissioner contact the Community Development Director or designee prior to the hearing.
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Title: Planning Commission Policies and Procedures 6 of 12 2- 05
3. 9 Order of Meetings.
The Order of Business shall be as follows subject to the Chairperson' s final approval:
1. Roll Call
2. Pledge of Allegiance
3. Written Communications
4. Requested Continuances
5. Sub -Committee Reports
6. Verbal Communications
7. Consent Calendar
8. Continued Public Hearings
9. New Public Hearings
10. Continued Other Business
11. New Other Business
12. Adjournment
3. 10 Chair' s Rules of Order.
After issuing a warning, the Chair may order from the meeting location any person( s) who commit the following acts with respect to a regular or special meeting of the Commission:
1. Disorderly, contemptuous or insolent behaviortoward the Commission, or any member thereof, which interrupts the due and orderly course of said meeting.
2. A breach of the peace, boisterous conduct or violent disturbance which interrupts the due and orderly course of said meeting.
After a warning by the Chair, if more than one individual at a given meeting continues to engage in disruptive or unruly behavior to the extent that it is preventing Commissioners from adequately participating in the meeting, the Chair may order that the meeting location be cleared of all members of the public ( with the exception of members of the press who are not participating in the disruption), and/ or ( c) adjournment of the meeting to another time or place so that the meeting may continue uninterrupted.
Any Commissioner may move to require the Chair at the meeting to enforce the rules, and the affirmative vote of a majority of the Commissioners present shall require him or her to so act.
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Title: Planning Commission Policies and Procedures 7 of 12 2- 05
4. PRESENTATION OF AGENDA ITEMS
4. 1 Minutes and Recording.
Commission meetings are recorded and the recording is permanently preserved by the Town.
The recording of the meeting is used by the Secretary of the Commission to prepare minutes of the hearing which must be approved by the Commission. The minutes of the Commission' s proceedings shall show the vote of each Commissioner, including if they were absent or failed to vote on a matter considered.
4. 2 Order of Presentation.
The order of the presentation shall be as follows:
1. The Chair shall announce the subject of the agenda item.
2. Presentation of staff report, including any environmental analysis or recommendation.
3. Questions of staff by Commissioners.
4. Public hearing opened.
5. Presentation of the applicant( s) or appellant( s).
6. Public comment.
7. Rebuttal comments by the applicant( s) or appellant( s).
8. Public hearing closed.
9. Commission discussion and action.
4. 3 Public Participation.
The Commission welcomes participation and comment on any matter within its subject matter jurisdiction. It is the Commission' s intent to create and maintain an environment where people feel comfortable participating in the public process and an atmosphere of respect for all who participate in the Town' s public meetings. To maintain civility and respect and to allow the Commission to complete its work in a timely manner, the Commission requests that all attendees and participants show respect for every speaker regardless of his or her viewpoint, and to refrain from conduct that may inhibit others from addressing the Commission. Disrespectful conduct, such as hissing, booing, whistling, cheering, chanting, and judgmental hand gestures, are all inappropriate. The Commission also discourages profane remarks or personal attacks or insults to any member of the Commission, staff, other attendees or speakers, or the general public.
Accordingly, the Commission requests the cooperation of all in maintaining a meeting
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Title: Planning Commission Policies and Procedures 8 of 12 2- 05 environment where persons can feel comfortable participating in the public process and expressing their views and opinions, and an atmosphere of respect for all.
4. 4 Rules of Evidence.
Hearings and meetings before the Commission need not be conducted according to formal rules of evidence. Any relevant evidence may be considered if it is the sort of evidence upon which reasonable persons are accustomed to rely on in the conduct of serious affairs.
4. 5 Written Evidence.
Written evidence that members of the public wish to submit to the Commission in advance of a Commission agenda item should be submitted by 11: 00 a. m. on the Wednesday one week prior to the Commission meeting in order for such evidence to be provided to the Commission with its agenda packet in advance of the meeting. Any written evidence submitted afterthis day and time but prior to 11: 00 a. m. on the day of the hearing will be distributed to the Commission in an Addendum or Desk Item.
Written or pictorial evidence distributed to the Commission at the meeting may not be effective, as the Commission may not have enough time to absorb its content. Although late correspondence is highly discouraged for this reason, any participant may submit written and pictorial evidence to the Commission during the public hearing on an item.
4. 6 Oral Evidence, Time Limits, and Number of Speakers.
A speaker' s card to speak on an item should be submitted to the Secretary of the Commission or designee.
The Chair' s instructions to the audience will generally follow these guidelines:
1. Any person desiring to speak must first be recognized by the Chair.
2. All participants must speak from the podium.
3. All speakers are requested to first state their full name and full address, and to speak into the microphone as all meetings are recorded. To ensure correct spelling of names and addresses, all speakers are encouraged to submit a speaker' s card to the Secretary of the Commission or designee.
Page: Policy Number:
Title: Planning Commission Policies and Procedures 9 of 12 2- 05
4. All comments shall be directed to the Commission as a body, and not to any particular Commissioner, staff person or audience. No person, otherthan Commissioners, staff, and the person having the floor shall be permitted to enter into the discussion.
Commissioners shall only ask questions of the speakers through the Chair. Each applicant and appellant shall be limited to a five ( 5) minute presentation at the start of the public hearing and a three ( 3) minute rebuttal after all other speakers have been heard. All members of the applicant' s or appellant' s team shall be heard as a group within these time limits. Questions by the members of the Commission do not count against the time.
Members of the public who wish to speak on any items will be limited to up to 3 minutes each. No person shall be allowed to speak a second time per item. In order to assure the opportunity for all those desiring to speak before the Commission, there is no yielding of time to another speaker. The Chair, at his or her discretion, may allocate more or less time for speakers due to the complexity of the issues and/ or due to a large number of speakers on a particular item. Except for the applicant or appellant, all speakers shall be limited to the same amount of time to speak.
4. 7 Evidence Received Outside a Hearing.
Applications before the Planning Commission involve quasi- judicial matters, legislative matters and matters that have attributes of each. On quasi- judicial matters California law requires decisions to be based on findings, and findings to be based on evidence presented at the hearing.
Accordingly, the actual decision of the Commission on a quasi- judicial matter must be supported by evidence presented at the hearing, i. e. the staff report, testimony given during the hearing and comments from other Commissioners. A Commissioner may not state or predetermine his or her decisions on an application prior to the hearing.
In order to avoid the appearance of bias or impropriety, individual Commissioners are prohibited from discussing, outside of the public hearing process, the substance of any project with project proponents, opponents and member of the public. This prohibition shall apply to all projects, whether conceptual or proposed, that can be considered by the Commission in reviewing an application, on appeal or on remand. Study sessions may be used as a means of facilitating informal communication. Individual Commissioners who have engaged in prohibited discussions shall recuse themselves from consideration of the project.
Incidental contacts that do not address the substance of any project are not prohibited. Incidental contacts are those that are not reasonably understood to influence a Commissioner' s decision and include speaking with an interested party to obtain approval to enter a property and to
Page: Policy Number:
Title: Planning Commission Policies and Procedures 10 of 12 2- 05 obtain information intended to orient the Commissioner about the physical aspects of the property or a project.
5. MOTIONS
Action upon an order, resolution, ordinance, or any other action of the Commission may be proposed by any Commissioner by a motion. Before a motion can be considered or debated it must be seconded, at which time it shall be on the floor and must be considered. If not seconded, the motion dies for lack of a second and shall be so declared by the Chair. Substitute motions and other parliamentary procedures shall follow Robert' s Rules of Order.
Pursuant to Planning Commission Resolution No. 78- 4, adopted May 10, 1978, the Planning Commission will not accept requests for continuances from applicants after 12: 00 noon of the Friday preceding any Commission meeting, provided, however, that the Commission retains the right to make exceptions when it finds that a genuine emergency exists which was not known to the applicant.
A motion to adopt or approve staff recommendations or simply to approve the action under consideration shall, unless otherwise particularly specified be deemed to include adoption of all proposed findings and execution of all actions recommended in both the written staff report on file on the matter, any verbal staff report, and other evidence presented during the hearing.
6. VOTING AND ABSENTEES
Voting of not less than three ( 3) votes shall be required to carry a motion, unless a larger number of votes is required by applicable ordinance or other law.
If a Commissioner is not eligible to participate in the consideration of an item due to a conflict of interest, the Commissioner shall be disqualified and shall recuse him or herself from the voting, in which case the Commissioner cannot be included in the quorum. Prior to consideration of the matter, the conflicted Commissioner shall recuse on the record, stating the basis for the recusal, and shall then leave the room, unless legally entitled to remain under applicable law.
If a majority of the Commission shall be disqualified to vote on a matter by reason of actual or apparent conflict of interest, the Commission shall select by lot, or other means of random
Page: Policy Number:
Title: Planning Commission Policies and Procedures 11 of 12 2- 05 selection, that number of disqualified Commissioners which, when added to the Commissioners eligible to vote, shall constitute a quorum.
A Commissioner who expects to be absent should notify the Chair and the Community Development Department prior to the meeting.
Pursuant to Resolution 2011- 012, any Commissioner who is absent from eight ( 8) regular meetings held in a twelve ( 12) consecutive month period, shall, as a result, surrender his or her office on the Planning Commission and the office shall be considered vacant.
A Commissioner who is absent from any portion of a hearing conducted by the Commission may vote on the matter at the time it is acted upon, provided that he or she viewed the video recording of the entire portion of the hearing from which he or she was absent, and he or she has examined all of the staff reports and minutes presented during the portion of the hearing from which he or she was absent; and he or she states for the record before voting that the Commissioner deems himself or herself to be as familiar with the record and with the evidence presented at the hearing as he or she would have been had he or she personally attended the entire hearing.
7. LEGAL REQUIREMENTS
The Planning Commission operates under a series of laws that regulate its operations as well as the conduct of its members. The Town Attorney serves as the Town' s legal officer and is available to advise the Commission on these matters.
The Ralph M. Brown Act requires that meetings of the Planning Commission be open and public.
Meetings" occur whenever four ( 4) or more members of the Commission hear, discuss, or deliberate on any matter that is relevant to the Town. This includes discussions that occur face to face, serially, through third parties, or through written, telephonic, or e- mail communications.
The Political Reform Act controls conflicts of interests through disclosure of financial interests and prohibition in participating in decision making. Commissioners are prohibited from making, participating in or in any way attempting to use their official position to influence a governmental decision in which they know or have reason to know they have a financial interest. Financial interests can arise out of property ownership, business investment, leadership in a business entity, and receipt of money or gifts.
Page: Policy Number:
Title: Planning Commission Policies and Procedures 12 of 12 2- 05
8. CONSTRUCTION AND EFFECT
These Policies and Procedures shall be construed and applied so as to ensure a full and fair hearing of relevant evidence which is offered on a land use matter and to facilitate an orderly analysis of evidence and issues by the Commission. Failure to comply with the strict provisions of these Policies and Procedures shall not necessarily invalidate any action taken by the Commission.
9. RULES OF ORDER.
Except as otherwise provided in these Policies and Procedures, Roberts Rules of Order shall be used as a guide for the conduct of the meetings of the Planning Commission. No omission to conform to said rules of order shall in any instance be deemed to invalidate any action taken by the Commission.
10. AMENDMENT.
These Policies and Procedures may only be amended by the Town Council.
APPROVED AS TO FORM:
Robert Schult 1, To Attorney
ATTACHMENT 3
TOWN OF LOS GATOS
COUNCIL POLICY COMMITTEE AGENDA
FEBRUARY 28, 2023
TELECONFERENCE
5:00 PM
Rob Moore, Chair
Mathew Hudes, Vice Chair
IMPORTANT NOTICE
This meeting is being conducted utilizing teleconferencing and electronic means consistent with Government Code Section 54953, as Amended by Assembly Bill 361, in response to the state of emergency relating to COVID-19 and enabling teleconferencing accommodations by suspending or waiving specified provisions in the Ralph M. Brown Act (Government Code § 54950 et seq.). Consistent with AB 361 and Town of Los Gatos Resolution 2021-044, this meeting will not be physically open to the public and the Council will be teleconferencing from remote locations.
Members of the public can only participate in the meeting by joining the Zoom webinar (log in information provided below).
PARTICIPATION
To provide oral comments in real-time during the meeting:
Zoom webinar. Join from a PC, Mac, iPad, iPhone or Android device: Please click this URL to join: https://losgatoscagov.zoom.us/j/83046365193?pwd=ckFQUVBDWEVNZTBQZXhFbjhDL3B1QT09 Passcode: 812858. You can also type in 830 463 65193 in the “Join a Meeting” page on the Zoom website at https://zoom.us/join.
Join by telephone. Dial: USA 877 336 1839 US Toll-free or 636 651 0008 US Toll. Conference code: 686100
When the Chair announces the item for which you wish to speak, click the “raise hand” feature in Zoom. If you are participating by phone on the Zoom app, press *9 on your telephone keypad to raise your hand. If you are participating by calling in, press #2 on your telephone keypad to raise your hand.
When called to speak, you will be asked to provide your full name and your town/city of residence. This identifying information is optional and not a requirement for participation. Please limit your comments to three (3) minutes, or such other time as the Chair may decide, consistent with the time limit for speakers at a Council Policy Committee meeting.
If you wish to speak to an item or items on the Consent Calendar, please state which item number(s) you are commenting on at the beginning of your time.
If you are unable to participate in real-time, you may email to [email protected] the subject line “Public Comment Item #__ ” (insert the item number relevant to your comment). Comments received by 11:00 a.m. the day of the meeting will be reviewed and distributed before the meeting. All comments received will become part of the record.
ATTACHMENT 4
RULES OF DECORUM AND CIVILITY
To conduct the business of the community in an effective and efficient manner, please follow the meeting guidelines set forth in the Town Code and State law.
The Town does not tolerate disruptive conduct, which includes but is not limited to:
· Addressing the Committee without first being recognized; · Interrupting speakers, Committee Members, or Town staff; · Continuing to speak after the allotted time has expired; · Failing to relinquish the microphone when directed to do so; · Repetitiously addressing the same subject.
Town Policy does not allow speakers to cede their commenting time to another speaker. Disruption of the meeting may result in a violation of Penal Code Section 403.
MEETING CALL TO ORDER
ROLL CALL
CONSENT ITEMS (Items appearing on the Consent Items are considered routine Town business and may be approved by one motion. Any member of the Committee may request to have an item removed from the Consent Items for comment and action. Members of the public may provide input on any or multiple Consent Item(s) when the Chair asks for public comments on the Consent Items. If you wish to comment, please follow the Participation Instructions contained on Page 2 of this agenda. If an item is removed, the Chair has the sole discretion to determine when the item will be heard.)
1. Approve Draft Minutes of the January 23, 2023 Council Policy Committee Meeting.
VERBAL COMMUNICATIONS (Members of the public are welcome to address the Policy Committee on any matter that is not listed on the agenda. To ensure all agenda items are heard and unless additional time is authorized by the Chair, this portion of the agenda is limited to 30 minutes and no more than three (3) minutes per speaker. In the event additional speakers were not able to be heard during the initial Verbal Communications portion of the agenda, an additional Verbal Communications will be opened prior to adjournment.) OTHER BUSINESS (Up to three minutes may be allotted to each speaker on any of the following items.)
2. Confirm 2023 Work Plan Items for the Council Policy Committee.
3. Discuss and Provide Direction to Potentially Modify Town Council Policy 2-04: Town Council Code of Conduct, Town Council Policy 2-05: Planning Commission Policies and Procedures, Town Council Policy 2-11: Commission Appointments, Residency and Attendance Requirements, and Establishing a Quorum, and the Commissioner Handbook.
ADJOURNMENT
110 E. Main Street Los Gatos, CA 95030 ● 408-354-6832
www.losgatosca.gov
TOWN OF LOS GATOS
TOWN COUNCIL
POLICY COMMITTEE
MEETING DATE: 02/28/2023
ITEM NO: 1
DRAFT
Minutes of the Town Council Policy Committee Meeting
January 23, 2023
The Town Council Policy Committee of the Town of Los Gatos conducted a special meeting utilizing teleconference and electronic means consistent with Government Code Section 54953, as Amended by Assembly Bill 361, in response to the state of emergency relating to COVID-19 and enabling teleconferencing accommodations by suspending or waiving specified provisions in the Ralph M. Brown Act (Government Code § 54950 et seq.) and Town of Los Gatos Resolution 2021-044 on Monday, January 23, 2023, at 5:00 p.m.
MEETING CALLED TO ORDER AT 5:02 P.M.
ROLL CALL
Members Present: Rob Moore, Matthew Hudes
Staff Present: Laurel Prevetti, Town Manager; Gabrielle Whelan, Town Attorney; Wendy Wood, Town Clerk; Joel Paulson, Community Development Department Director; Jennifer Armer, Planning Manager.
APPOINT CHAIR AND VICE CHAIR
Rob Moore was appointed Chair and Matthew Hudes was appointed Vice Chair by unanimous vote of the Committee.
CONSENT ITEMS (TO BE ACTED UPON BY A SINGLE MOTION)
1. Approve Draft Minutes of the September 17, 2022 Council Policy Committee.
2. Approve the Town Council Policy Committee Meeting Schedule for 2023.
Approved.
VERBAL COMMUNICATIONS
None.
PAGE 2 OF 3
SUBJECT: Draft Minutes of the Council Policy Committee Meeting of January 23, 2023 DATE: February 28, 2023
OTHER BUSINESS
3. Recommend to the Town Council Modifications to Town Council Policy 2-01: Agenda Format and Rules Regarding Town Remote Attendance for Town Boards, Commissions, and Committees.
Laurel Prevetti, Town Manager, presented the staff report.
Opened public comment.
Cindy Walker from the Complete Streets and Transportation Committee commented in favor of hybrid meetings for all Boards, Commissions, and Committees due to concerns regarding Committee members being unable to attend in person and to increase the opportunity for public participation.
Susan Burnett from the Planning Commission asked for clarification regarding the discussion and commented in favor of in-person and video meetings, and not in support of audio only meetings.
Closed Public Comment.
After discussion, the Committee was split with Vice Chair Hudes recommending the Council approve the proposed changes with the exception of conducting hybrid meetings for the Planning Commission and Finance Commission. Chair Moore requested that Council consider the staff recommendation as well as additional information regarding the feasibility and cost of options for audio only and audio with video hybrid meetings for all Board, Commission, and Committee meetings.
4. Identify Future Work Plan Items for the Council Policy Committee.
Laurel Prevetti, Town Manager, presented the staff report.
Opened public comment.
None.
Closed Public Comment.
After discussion, the Committee approved the proposed 2023 Work Plan with the following additions:
Review of Ethics and Conflict of Interest Policies.
PAGE 3 OF 3
SUBJECT: Draft Minutes of the Council Policy Committee Meeting of January 23, 2023 DATE: February 28, 2023
Review Policies for Commission, Board, Committee, and Council Recusal. Review the Brown Act and Council Communications with Regards to Forums such as Democracy Tent.
Review Conflicts of Interest for Political Endorsements from Organizations Funded by the Town.
Reexamine the Policy Committee’s Enabling Resolution. Consider a Capital Improvement Equity Policy.
Consider a Commercial Rent Control Policy.
And the following deletions, recognizing that the other Commissions should be the recommending body to Town Council:
Consider the Creation of a Reorganization Policy.
Potential Amendments to the Story Pole and Netting Policy. Consider a Los Gatos Election Policy.
Consider Home Occupancy Permit Criteria and Limitations. Discuss Guidelines for Tree Planting In-Lieu Fees When Additional Trees Would Conflict with Maintaining Defensible Space.
Discuss Transportation Impact Mitigation Policy and Fees. Consider the Definition of “Specialty Retail.”
Review Zoning Requirements for Banks in the Downtown District. Continue to Consider Land Use Streamlining Modifications and Review of Items in the Land Use Policies Binder.
The Committee asked staff to return with a revised Work Plan for review based on their input.
ADJOURNMENT
The meeting adjourned at 6:25 p.m.
This is to certify that the foregoing is a true
and correct copy of the minutes of the
January 23, 2023 meeting as approved by the
Town Council Policy Committee.
Holly Young, Senior Management Analyst
PREPARED BY: Holly Young
Senior Management Analyst
Reviewed by: Town Manager and Town Attorney
110 E. Main Street Los Gatos, CA 95030 ● (408) 354-6832 www.losgatosca.gov
TOWN OF LOS GATOS
COUNCIL POLICY COMMITTEE REPORT
MEETING DATE: 02/28/2023
ITEM NO: 2
DATE: February 28, 2023
TO: Council Policy Committee
FROM: Laurel Prevetti, Town Manager
SUBJECT: Confirm 2023 Work Plan Items for the Council Policy Committee RECOMMENDATION:
Confirm 2023 work plan items for the Council Policy Committee.
REMARKS:
On January 23, 2023, the Council Policy Committee discussed a proposed 2023 Work Plan. The Committee provided input on the proposed Plan including requesting various items be added and deleted. The Committee asked staff to return with a revised Work Plan for review based on the discussion (see Attachment 1).
The revised Work Plan is arranged loosely in priority order. The Work Plan also includes two items directed by the Town Council:
An evaluation of remote participation for Boards, Committees, and Commissions later in 2023; and
Modifications to Town Policies to address Commissioner discipline.
COORDINATION:
The preparation of this report was coordinated with the Town Manager’s Office (including Economic Vitality and the Clerk Department), Community Development Department, Parks and Public Works Department, and the Town Attorney’s Office.
PAGE 2 OF 2
SUBJECT: 2023 Work Plan Items
DATE: February 28, 2023
FISCAL IMPACT:
There is no associated fiscal impact.
ENVIRONMENTAL ASSESSMENT:
This is not a project defined under the California Environmental Quality Act, and no further action is required.
Attachment:
1. Revised 2023 Draft Work Plan
ATTACHMENT 1
2023 Town Council Policy Committee Work Plan Items (Revised) Determine Modifications to Town Policies to Address Commissioner Discipline. Consider an Emergency Procurement Policy.
Consider Legislative Advocacy Priorities/Principles (Building from Existing Legislative Policy).
Consider Finance Commission Recommendation to Create a Public Input and Outreach in Labor Negotiations Policy Modeled after Menlo Park.
Consider Finance Commission Recommendation for Council Not to Engage in Confidential Agreements with Bargaining Units that Would Prevent Disclosure that Would Otherwise be Properly Disclosed under the Brown Act. Review of Ethics and Conflict of Interest Policies.
Review Policies for Commission, Board, Committee, and Council Recusal. Review the Brown Act and Council Communications with Regards to Forums, such as Democracy Tent.
Review Conflicts of Interest for Political Endorsements from Organizations Funded by the Town.
Consider a Capital Improvement Equity Policy.
Consider a Commercial Rent Control Policy.
Reexamine the Policy Committee’s Enabling Resolution. Evaluate the Remote Participation Provisions for Boards, Committees, and Commissions as Contained in the Agenda Format and Rules Policy.
Reviewed by: Town Manager and Town Attorney
110 E. Main Street Los Gatos, CA 95030 ● (408) 354-6832 www.losgatosca.gov
TOWN OF LOS GATOS
COUNCIL POLICY COMMITTEE REPORT
MEETING DATE: 02/28/2023
ITEM NO: 3
3 DATE: February 17, 2023
TO: Council Policy Committee
FROM: Laurel Prevetti, Town Manager
SUBJECT: Discuss and Provide Direction to Potentially Modify Town Council Policy 2-04:
Town Council Code of Conduct, Town Council Policy 2-05: Planning Commission Policies and Procedures, Town Council Policy 2-11: Commission Appointments, Residency and Attendance Requirements, and Establishing a Quorum, and the Commissioner Handbook
RECOMMENDATION:
Discuss and provide direction to potentially modify Town Council Policy 2-04: Town Council Code of Conduct, Town Council Policy 2-05: Planning Commission Policies and Procedures, Town Council Policy 2-11: Commission Appointments, Residency and Attendance Requirements, and Establishing a Quorum, and the Commissioner Handbook.
BACKGROUND:
Currently the Town has a patchwork of Town Council Policies that are used to evaluate a potential disciplinary issue with a Commissioner. The Commissioner Handbook states that for enforcement:
If a member of a Town Board, Commission, or Committee does not follow the Commissioner’s Handbook, the Mayor or his/her designee will counsel that member regarding the rules and their importance to the Council and the Town (see Resolution 1999-167 and Town Council Code of Conduct Policy).
Town Council Policy 2-04: Town Council Code of Conduct has a specific disciplinary process that has been used for Commissioners (see Attachment 1).
In addition, Town Council Policy 2-11: Commission Appointments, Residency and Attendance Requirements, and Establishing a Quorum states the grounds for dismissal of a Commissioner (see Attachment 2, page 7). Since this Policy does not provide a process for evaluating a policy violation, the Town’s practice has been to follow the procedure in the Code of Conduct.
PAGE 2 OF 3
SUBJECT: Discuss and Provide Direction on Potential Modifications to Several Council Policies and the Commissioner Handbook
DATE: February 17, 2023
BACKGROUND (continued):
After a recent disciplinary proceeding, the Town Council asked the Council Policy Committee to review the applicable Policies and make recommendations to improve the procedure to discipline Commissioners.
DISCUSSION:
This agenda item provides the Policy Committee an opportunity to provide direction to staff to improve the procedure. The Committee may want to consider the following questions in its deliberations:
Should the discipline procedure in the Code of Conduct Policy in its entirety apply to Commissioners?
If not, are there any elements of the discipline procedure from the Code of Conduct that should apply? For example:
o Should the evaluation committee consist of the same members? o Should the same Minor and Major distinction apply?
o Under what circumstances should a third party conduct an initial interview with the subject Commissioner and report the findings to the evaluation committee? o What discipline options should be available for Commissioners? What other procedural steps would the Committee recommend? What other guidance should be contained in Town Policies regarding this matter? In addition to the above referenced Policies, the Planning Commission Policy is contained in Attachment 3.
Based on the direction of the Committee, staff will return at a subsequent meeting with draft language for the Committee’s review. Once the Committee has completed its work, the matter will go before the entire Council for final consideration and action.
CONCLUSION:
Staff looks forward to the Committee’s discussion and direction. Based on the direction, staff will return to subsequent Policy Committee meetings to review draft specific redline modifications.
COORDINATION:
The preparation of this report was coordinated with the Town Attorney.
PAGE 3 OF 3
SUBJECT: Discuss and Provide Direction on Potential Modifications to Several Council Policies and the Commissioner Handbook
DATE: February 17, 2023
FISCAL IMPACT:
Potential modifications to Council Policies and the Commissioner Handbook have no fiscal impact.
ENVIRONMENTAL ASSESSMENT:
This is not a project defined under the California Environmental Quality Act, and no further action is required.
Attachments:
1. Town Council Policy 2-04: Town Council Code of Conduct
2. Town Council Policy 2-11: Commission Appointments, Residency and Attendance Requirements, and Establishing a Quorum
3. Town Council Policy 2-05: Planning Commission Policies and Procedures
ATTACHMENT
1
Title: Planning Commission Policies and Procedures Policy Number: 2- 05 Effective Date: 1983 Pages: 11
Enabling Actions: Revised Date: S/ 8/ 1985; 11/ 18/ 1987; 9/ 22/ 93; 11/ 16/ 1998; 4/ 16/ 2001;
12/ 6/ 2010; 4/ 21/ 2015; 9/ 20/ 2016;
8/ 20/ 2019
PURPOSE
This Policy is to inform Planning Commission Members of their roles, responsibilities, and functions, as well as operating procedures for meetings.
SCOPE
Since 1983, the Town Council has adopted Planning Commission Policies and Procedures. The Procedures address topics including the agenda format, Commissioner conduct at Planning Commission meetings, absences, evidence outside of formal hearings, findings, voting, and other issues. Periodically, the Town Council adopts revisions to the Procedures.
POLICY AND PROCEDURES
1. ORGANIZATION, OFFICERS, DUTIES
1. 1 Organization.
The Planning Commission consists of seven voting members and shall be organized as prescribed by Town Code Section 29. 20. 750 and the Town Council. All Planning Commissioners shall be appointed by the Town Council. Commissioners serve at the pleasure of the Town Council and may be removed prior to the end of his or her term by a four -fifths vote of the Town Council.
1. 2 Officers.
A Chairperson ( hereinafter Chair) and Vice -Chairperson ( hereinafter Vice Chair) shall be elected annually from among the Commission' s membership at the first meeting in January, to serve at the pleasure of the Commission for a term of office of one year.
ATTACHMENT 3
Page: Policy Number:
Title: Planning Commission Policies and Procedures 2 of 12 2- 05 The Chair shall:
a) Preside at all meetings of the Commission.
b) Sign documents of the Commission.
c) Determine meeting schedule and agenda items consistence with state law noticing requirements.
During the absence, disability or disqualification of the Chair, the Vice -Chair shall perform all the duties and be subject to all the responsibilities of the Chair.
The Vice -Chair shall succeed the Chair if he or she vacates the office before his or her term is completed and shall serve the unexpired term of the vacated office. ( A new Vice -Chair shall be elected at the next regular meeting.)
In the absence of the Chair and Vice -Chair, any other Commissioner shall call the Commission to order whereupon a Chair pro tem shall be elected from the Commissioners present to preside.
1. 3 Duties.
The functions, powers and duties of the Planning Commission shall consist of all those functions, powers and duties of a Planning Commission as provided in Chapters 3 and 4 of Title 7, commencing with Section 65100 of the California Government Code ( Planning and Zoning Law) and as the same may be hereafter amended. The Planning Commission shall perform such other duties and functions as may be designated in Town Code and by the Town Council.
1. 4 Support.
The Secretary of the Planning Commission is the Community Development Director or designee.
The Chair shall set the Agenda in consultation with the Secretary.
2. LEGAL AND ETHICAL STANDARDS
Planning Commissioners must serve as a model of leadership and civility to the community and treat all members of the public, each other, and the issues before them with respect to ensure open and effective government.
Page: Policy Number:
Title: Planning Commission Policies and Procedures 3 of 12 2- 05 To ensure the highest standards of respect and integrity during public meetings, Planning Commissioners shall:
1. Use formal titles. The Commissioners shall refer to one another formally during Commission meetings such as Chair, Vice Chair, Commissioner, or Mr., Mrs., or Ms., followed by the individual' s last name.
2. Practice civility and decorum in discussions and debate. Difficult questions, tough challenges to a particular point of view, and criticism of ideas and information are legitimate elements of free democracy in action. This does not allow, however, Commissioners to make abusive, slanderous, and personal comments, and/ or physical actions that could be construed as threatening. During public discussions, Commissioners shall be respectful of others and diverse opinions, practice objectivity, and allow for the debate of issues.
3. Honorthe role ofthe Chair in maintaining order and equity, and respect the Chair' s efforts to focus discussion on current agenda items. Objections to the Chair' s actions should be voiced politely and with reason.
4. Demonstrate effective problem -solving approaches. Commissioners are role models for residents, business people, and other stakeholders involved in public debate.
5. Base decisions on the -. written evidence, arguments or testimony and decisions should be made objectively and based upon the merits and substance of the matter at hand, not through established coalitions or well- defined voting blocks. Judgment of decisions should be reserved until all applicable information has been presented.
6. Be prepared and knowledgeable. To effectively lead and inform the public, Commissioners shall be prepared and informed about issues on the agenda.
7. Be respectful of other people' s time. Commissioners should stay focused, listen attentively, and act efficiently during public meetings. During public testimony, Commissioners should refrain from engaging the speaker in dialogue; however, for purposes of clarification, Commissioners may ask the speaker questions. Commission comment and discussion should commence upon the conclusion of all public testimony.
3. MEETINGS, STUDY SESSIONS, AGENDAS, AND STAFF REPORTS
3. 1 Quorum and Attendance at Meetings.
A quorum to conduct business shall consist of a majority of the total number of filled seats consistent with Town Council Resolution 2014-041. For example, if all seven Commissioners are seated, then a quorum consists of a minimum total of four members of the Commission. A quorum is not required for workshops.
Page: Policy Number:
Title: Planning Commission Policies and Procedures 4 of 12 2- 05 Requests by Commissioners to attend a Commission meeting via telephonic appearance are actively discouraged. Telephonic attendance shall only be permitted in the event of extraordinary events such as a medical, family, or similar emergency requiring a Commissioner' s absence or in the event the Commissioner is out of the area on official Town business. In addition, at least a quorum of the Commission must participate from a location within the Town.
3. 2 Public Meetings.
All meetings shall be held in full compliance with the provisions of state law, ordinances of the Town, and these Policies and Procedures.
3. 3 Regular Meetings.
Regular meetings of the Commission shall be held on the second and fourth Wednesdays of each month in Town Council Chambers at 110 E. Main Street, Los Gatos, unless otherwise determined by the Commission. All regular meetings of the Commission will be called to order at 7: 00 p. m., unless advertised otherwise, canceled, or rescheduled.
The Commission with the consent of the majority of the Commission, adjourn its meetings on or before 11: 30 p. m. with any unfinished business being continued to the next regular, adjourned, or special meeting, unless the Commission votes to extend the meeting. At approximately 11: 15 p. m., the Chairperson will call for review of any remaining agenda items to consider whether they will likely be completed by 11: 30 p. m., or whether continuances should be considered. The Secretary of the Planning Commission, or designee, will post notice of any continued hearing or other unfinished business, as required by law.
3.4 Special Meetings.
A special meeting may be called at any time by the Chairperson of the Commission, or by a majority of its membership on its own motion, or at the direction of the Town Council. Notice shall be sent in compliance with the Ralph M. Brown Act, Government Code section 54950, et seq. (" Brown Act") and the Los Gatos Town Code.
Page: Policy Number:
Title: Planning Commission Policies and Procedures 5 of 12 2- 05
3. 5 Adjourned Meetings.
The Commission may adjourn any regular or special meeting to a time and place specified pursuant to the procedures set forth in the Brown Act.
3. 6 Workshops/ Study Sessions.
The Commission may hold a workshop as part of a regular or special meeting. When a matter is set for a workshop, public testimony on each item will generally be limited to three (3) minutes per person, at the discretion of the Chair. A workshop shall be for discussion only and the Commission will take no action on the workshop item.
3. 7 Agendas.
At least seventy-two ( 72) hours before a regular meeting, copies of the Commission' s agenda shall be posted in a location that is available for viewing by the public and made available on the Town website and at the Community Development Department. In accordance with the Brown Act, the Commission may not take action on any item that did not appear on the posted agenda, unless an exception is made as permitted under Government Code section 54954. 2. The Chair may rearrange the order of presentation of items appearing on the agenda as he or she may deem necessary or desirable for the conduct of the meeting. No person shall be entitled to rely upon the order in which public hearing items appear on the posted agenda, and any public hearing on any agenda may commence immediately upon the time the meeting is called to order.
3. 8 Staff Reports.
Staff Reports shall be made public whenever they are distributed to the Commission, except in the case of attorney/ client privilege memoranda. Staff reports will usually be prepared with recommendations and shall include the basis for these recommendations and included in the hearing record on any application.
If, in reviewing a staff report, a Commissioner sees omissions, has questions, or is looking for specific information, it is advisable that the Commissioner contact the Community Development Director or designee prior to the hearing.
Page: Policy Number:
Title: Planning Commission Policies and Procedures 6 of 12 2- 05
3. 9 Order of Meetings.
The Order of Business shall be as follows subject to the Chairperson' s final approval:
1. Roll Call
2. Pledge of Allegiance
3. Written Communications
4. Requested Continuances
5. Sub -Committee Reports
6. Verbal Communications
7. Consent Calendar
8. Continued Public Hearings
9. New Public Hearings
10. Continued Other Business
11. New Other Business
12. Adjournment
3. 10 Chair' s Rules of Order.
After issuing a warning, the Chair may order from the meeting location any person( s) who commit the following acts with respect to a regular or special meeting of the Commission:
1. Disorderly, contemptuous or insolent behaviortoward the Commission, or any member thereof, which interrupts the due and orderly course of said meeting.
2. A breach of the peace, boisterous conduct or violent disturbance which interrupts the due and orderly course of said meeting.
After a warning by the Chair, if more than one individual at a given meeting continues to engage in disruptive or unruly behavior to the extent that it is preventing Commissioners from adequately participating in the meeting, the Chair may order that the meeting location be cleared of all members of the public ( with the exception of members of the press who are not participating in the disruption), and/ or ( c) adjournment of the meeting to another time or place so that the meeting may continue uninterrupted.
Any Commissioner may move to require the Chair at the meeting to enforce the rules, and the affirmative vote of a majority of the Commissioners present shall require him or her to so act.
Page: Policy Number:
Title: Planning Commission Policies and Procedures 7 of 12 2- 05
4. PRESENTATION OF AGENDA ITEMS
4. 1 Minutes and Recording.
Commission meetings are recorded and the recording is permanently preserved by the Town.
The recording of the meeting is used by the Secretary of the Commission to prepare minutes of the hearing which must be approved by the Commission. The minutes of the Commission' s proceedings shall show the vote of each Commissioner, including if they were absent or failed to vote on a matter considered.
4. 2 Order of Presentation.
The order of the presentation shall be as follows:
1. The Chair shall announce the subject of the agenda item.
2. Presentation of staff report, including any environmental analysis or recommendation.
3. Questions of staff by Commissioners.
4. Public hearing opened.
5. Presentation of the applicant( s) or appellant( s).
6. Public comment.
7. Rebuttal comments by the applicant( s) or appellant( s).
8. Public hearing closed.
9. Commission discussion and action.
4. 3 Public Participation.
The Commission welcomes participation and comment on any matter within its subject matter jurisdiction. It is the Commission' s intent to create and maintain an environment where people feel comfortable participating in the public process and an atmosphere of respect for all who participate in the Town' s public meetings. To maintain civility and respect and to allow the Commission to complete its work in a timely manner, the Commission requests that all attendees and participants show respect for every speaker regardless of his or her viewpoint, and to refrain from conduct that may inhibit others from addressing the Commission. Disrespectful conduct, such as hissing, booing, whistling, cheering, chanting, and judgmental hand gestures, are all inappropriate. The Commission also discourages profane remarks or personal attacks or insults to any member of the Commission, staff, other attendees or speakers, or the general public.
Accordingly, the Commission requests the cooperation of all in maintaining a meeting
Page: Policy Number:
Title: Planning Commission Policies and Procedures 8 of 12 2- 05 environment where persons can feel comfortable participating in the public process and expressing their views and opinions, and an atmosphere of respect for all.
4. 4 Rules of Evidence.
Hearings and meetings before the Commission need not be conducted according to formal rules of evidence. Any relevant evidence may be considered if it is the sort of evidence upon which reasonable persons are accustomed to rely on in the conduct of serious affairs.
4. 5 Written Evidence.
Written evidence that members of the public wish to submit to the Commission in advance of a Commission agenda item should be submitted by 11: 00 a. m. on the Wednesday one week prior to the Commission meeting in order for such evidence to be provided to the Commission with its agenda packet in advance of the meeting. Any written evidence submitted afterthis day and time but prior to 11: 00 a. m. on the day of the hearing will be distributed to the Commission in an Addendum or Desk Item.
Written or pictorial evidence distributed to the Commission at the meeting may not be effective, as the Commission may not have enough time to absorb its content. Although late correspondence is highly discouraged for this reason, any participant may submit written and pictorial evidence to the Commission during the public hearing on an item.
4. 6 Oral Evidence, Time Limits, and Number of Speakers.
A speaker' s card to speak on an item should be submitted to the Secretary of the Commission or designee.
The Chair' s instructions to the audience will generally follow these guidelines:
1. Any person desiring to speak must first be recognized by the Chair.
2. All participants must speak from the podium.
3. All speakers are requested to first state their full name and full address, and to speak into the microphone as all meetings are recorded. To ensure correct spelling of names and addresses, all speakers are encouraged to submit a speaker' s card to the Secretary of the Commission or designee.
Page: Policy Number:
Title: Planning Commission Policies and Procedures 9 of 12 2- 05
4. All comments shall be directed to the Commission as a body, and not to any particular Commissioner, staff person or audience. No person, otherthan Commissioners, staff, and the person having the floor shall be permitted to enter into the discussion.
Commissioners shall only ask questions of the speakers through the Chair. Each applicant and appellant shall be limited to a five ( 5) minute presentation at the start of the public hearing and a three ( 3) minute rebuttal after all other speakers have been heard. All members of the applicant' s or appellant' s team shall be heard as a group within these time limits. Questions by the members of the Commission do not count against the time.
Members of the public who wish to speak on any items will be limited to up to 3 minutes each. No person shall be allowed to speak a second time per item. In order to assure the opportunity for all those desiring to speak before the Commission, there is no yielding of time to another speaker. The Chair, at his or her discretion, may allocate more or less time for speakers due to the complexity of the issues and/ or due to a large number of speakers on a particular item. Except for the applicant or appellant, all speakers shall be limited to the same amount of time to speak.
4. 7 Evidence Received Outside a Hearing.
Applications before the Planning Commission involve quasi- judicial matters, legislative matters and matters that have attributes of each. On quasi- judicial matters California law requires decisions to be based on findings, and findings to be based on evidence presented at the hearing.
Accordingly, the actual decision of the Commission on a quasi- judicial matter must be supported by evidence presented at the hearing, i. e. the staff report, testimony given during the hearing and comments from other Commissioners. A Commissioner may not state or predetermine his or her decisions on an application prior to the hearing.
In order to avoid the appearance of bias or impropriety, individual Commissioners are prohibited from discussing, outside of the public hearing process, the substance of any project with project proponents, opponents and member of the public. This prohibition shall apply to all projects, whether conceptual or proposed, that can be considered by the Commission in reviewing an application, on appeal or on remand. Study sessions may be used as a means of facilitating informal communication. Individual Commissioners who have engaged in prohibited discussions shall recuse themselves from consideration of the project.
Incidental contacts that do not address the substance of any project are not prohibited. Incidental contacts are those that are not reasonably understood to influence a Commissioner' s decision and include speaking with an interested party to obtain approval to enter a property and to
Page: Policy Number:
Title: Planning Commission Policies and Procedures 10 of 12 2- 05 obtain information intended to orient the Commissioner about the physical aspects of the property or a project.
5. MOTIONS
Action upon an order, resolution, ordinance, or any other action of the Commission may be proposed by any Commissioner by a motion. Before a motion can be considered or debated it must be seconded, at which time it shall be on the floor and must be considered. If not seconded, the motion dies for lack of a second and shall be so declared by the Chair. Substitute motions and other parliamentary procedures shall follow Robert' s Rules of Order.
Pursuant to Planning Commission Resolution No. 78- 4, adopted May 10, 1978, the Planning Commission will not accept requests for continuances from applicants after 12: 00 noon of the Friday preceding any Commission meeting, provided, however, that the Commission retains the right to make exceptions when it finds that a genuine emergency exists which was not known to the applicant.
A motion to adopt or approve staff recommendations or simply to approve the action under consideration shall, unless otherwise particularly specified be deemed to include adoption of all proposed findings and execution of all actions recommended in both the written staff report on file on the matter, any verbal staff report, and other evidence presented during the hearing.
6. VOTING AND ABSENTEES
Voting of not less than three ( 3) votes shall be required to carry a motion, unless a larger number of votes is required by applicable ordinance or other law.
If a Commissioner is not eligible to participate in the consideration of an item due to a conflict of interest, the Commissioner shall be disqualified and shall recuse him or herself from the voting, in which case the Commissioner cannot be included in the quorum. Prior to consideration of the matter, the conflicted Commissioner shall recuse on the record, stating the basis for the recusal, and shall then leave the room, unless legally entitled to remain under applicable law.
If a majority of the Commission shall be disqualified to vote on a matter by reason of actual or apparent conflict of interest, the Commission shall select by lot, or other means of random
Page: Policy Number:
Title: Planning Commission Policies and Procedures 11 of 12 2- 05 selection, that number of disqualified Commissioners which, when added to the Commissioners eligible to vote, shall constitute a quorum.
A Commissioner who expects to be absent should notify the Chair and the Community Development Department prior to the meeting.
Pursuant to Resolution 2011- 012, any Commissioner who is absent from eight ( 8) regular meetings held in a twelve ( 12) consecutive month period, shall, as a result, surrender his or her office on the Planning Commission and the office shall be considered vacant.
A Commissioner who is absent from any portion of a hearing conducted by the Commission may vote on the matter at the time it is acted upon, provided that he or she viewed the video recording of the entire portion of the hearing from which he or she was absent, and he or she has examined all of the staff reports and minutes presented during the portion of the hearing from which he or she was absent; and he or she states for the record before voting that the Commissioner deems himself or herself to be as familiar with the record and with the evidence presented at the hearing as he or she would have been had he or she personally attended the entire hearing.
7. LEGAL REQUIREMENTS
The Planning Commission operates under a series of laws that regulate its operations as well as the conduct of its members. The Town Attorney serves as the Town' s legal officer and is available to advise the Commission on these matters.
The Ralph M. Brown Act requires that meetings of the Planning Commission be open and public.
Meetings" occur whenever four ( 4) or more members of the Commission hear, discuss, or deliberate on any matter that is relevant to the Town. This includes discussions that occur face to face, serially, through third parties, or through written, telephonic, or e- mail communications.
The Political Reform Act controls conflicts of interests through disclosure of financial interests and prohibition in participating in decision making. Commissioners are prohibited from making, participating in or in any way attempting to use their official position to influence a governmental decision in which they know or have reason to know they have a financial interest. Financial interests can arise out of property ownership, business investment, leadership in a business entity, and receipt of money or gifts.
Page: Policy Number:
Title: Planning Commission Policies and Procedures 12 of 12 2- 05
8. CONSTRUCTION AND EFFECT
These Policies and Procedures shall be construed and applied so as to ensure a full and fair hearing of relevant evidence which is offered on a land use matter and to facilitate an orderly analysis of evidence and issues by the Commission. Failure to comply with the strict provisions of these Policies and Procedures shall not necessarily invalidate any action taken by the Commission.
9. RULES OF ORDER.
Except as otherwise provided in these Policies and Procedures, Roberts Rules of Order shall be used as a guide for the conduct of the meetings of the Planning Commission. No omission to conform to said rules of order shall in any instance be deemed to invalidate any action taken by the Commission.
10. AMENDMENT.
These Policies and Procedures may only be amended by the Town Council.
APPROVED AS TO FORM:
Robert Schult 1, To Attorney
TOWN OF LOS GATOS
COUNCIL POLICY COMMITTEE AGENDA
MARCH 28, 2023
110 EAST MAIN STREET
TOWN COUNCIL CHAMBERS
5:00 PM
Rob Moore, Chair
Matthew Hudes, Vice Chair
This meeting will be held in-person at the Town Council Chambers at 110 E. Main Street.
Members of the public may only provide public comments for the agenda item in-person.
PARTICIPATION IN THE PUBLIC PROCESS
The Town of Los Gatos strongly encourages your active participation in the public process, which is the cornerstone of democracy. If you are interested in providing oral comments during the meeting, you must attend in-person and complete a “speaker’s card” located on the back of the chamber benches and return it to the staff. If you wish to speak to an item on the agenda, please list the item number. The time allocated to speakers may change to better facilitate the Board meeting. You are welcome to submit written comments via email to [email protected].
Public Comment During the Meeting:
When called to speak, please limit your comments to three (3) minutes, or such other time as the Chair may decide, consistent with the time limit for speakers at a Town meeting.
Speakers at public meetings will be asked to provide their full name and to state whether they are a resident of the Town of Los Gatos. This information is optional and not required.
Deadlines for Public Comment and Presentations are as follows:
If you are unable to participate in person, you may email [email protected] with the subject line “Public Comment Item #_” (insert the item number relevant to your comment). Persons wishing to submit written comments to be included in the materials provided to Board must provide the comments as follows:
o For inclusion in the regular packet: by 11:00 a.m. the Friday before the Committee meeting
o For inclusion in an Addendum: by 11:00 a.m. the Monday or Tuesday before the Committee meeting
o For inclusion in a Desk Item: by 11:00 a.m. on the day of the Committee meeting Persons wishing to make an audio/visual presentation on any agenda item must submit the presentation electronically, either in person or via email to [email protected] to the by 3:00 p.m. the day of the meeting.
ATTACHMENT 5
MEETING CALL TO ORDER
ROLL CALL
RULES OF DECORUM AND CIVILITY
To conduct the business of the community in an effective and efficient manner, please follow the meeting guidelines set forth in the Town Code and State law.
The Town does not tolerate disruptive conduct, which includes but is not limited to:
· Addressing the Committee without first being recognized; · Interrupting speakers, Committee Members, or Town staff; · Continuing to speak after the allotted time has expired; · Failing to relinquish the microphone when directed to do so; · Repetitiously addressing the same subject.
Town Policy does not allow speakers to cede their commenting time to another speaker. Disruption of the meeting may result in a violation of Penal Code Section 403.
CONSENT ITEMS (Items appearing on the Consent Items are considered routine Town business and may be approved by one motion. Any member of the Council may request to have an item removed from the Consent Items for comment and action. Members of the public may provide input on any or multiple Consent Item(s) when the Chair asks for public comments on the Consent Items. If you wish to comment, please follow the Participation Instructions contained on Page 2 of this agenda. If an item is removed, the Chair has the sole discretion to determine when the item will be heard.)
1. Approve Minutes of the February 28, 2023 Council Policy Committee Meeting.
VERBAL COMMUNICATIONS (Members of the public are welcome to address the Committee on any matter that is not listed on the agenda. To ensure all agenda items are heard and unless additional time is authorized by the Chair, this portion of the agenda is limited to 30 minutes and no more than three (3) minutes per speaker. In the event additional speakers were not able to be heard during the initial Verbal Communications portion of the agenda, an additional Verbal Communications will be opened prior to adjournment.) OTHER BUSINESS (Up to three minutes may be allotted to each speaker on any of the following items.)
2. Discuss Proposed Changes to Council Code of Conduct Policy, and Commission Appointments, Residency and Attendance Requirements and Establishing a Quorum Policy.
3. Recommend Legislative Priorities to the Town Council.
ADJOURNMENT
110 E. Main Street Los Gatos, CA 95030 ● 408-354-6832
www.losgatosca.gov
TOWN OF LOS GATOS
TOWN COUNCIL
POLICY COMMITTEE
MEETING DATE: 03/28/2023
ITEM NO: 1
DRAFT
Minutes of the Town Council Policy Committee Meeting
February 28, 2023
The Town Council Policy Committee of the Town of Los Gatos conducted a regular meeting utilizing teleconference and electronic means consistent with Government Code Section 54953, as Amended by Assembly Bill 361, in response to the state of emergency relating to COVID-19 and enabling teleconferencing accommodations by suspending or waiving specified provisions in the Ralph M. Brown Act (Government Code § 54950 et seq.) and Town of Los Gatos Resolution 2021-044 on Tuesday, February 28, 2023, at 5:00 p.m.
MEETING CALLED TO ORDER AT 5:01 P.M.
ROLL CALL
Members Present: Rob Moore, Matthew Hudes
Staff Present: Laurel Prevetti, Town Manager; Gabrielle Whelan, Town Attorney; Wendy Wood, Town Clerk; Joel Paulson, Community Development Department Director; Holly Young, Senior Management Analyst.
CONSENT ITEMS (TO BE ACTED UPON BY A SINGLE MOTION)
1. Approve Draft Minutes of the January 23, 2023 Council Policy Committee.
Approved.
VERBAL COMMUNICATIONS
Abc123 commented that the meeting was not on the calendar system on the Town website.
Lee Quintana commented that the meeting is on the Town’s agenda calendar, but not on the monthly calendar.
OTHER BUSINESS
2. Confirm 2023 Work Plan Items for the Council Policy Committee.
Laurel Prevetti, Town Manager, presented the staff report.
PAGE 2 OF 3
SUBJECT: Draft Minutes of the Council Policy Committee Meeting of February 28, 2023 DATE: March 28, 2023
Opened public comment.
Lee Quintana commented that the second to last item of reexamining the Policy Committee’s enabling resolution should be moved up in importance because it has to do with the role of the Committee itself.
Closed Public Comment.
After discussion, the Committee agreed to adopt the items as listed in loose priority order with staff using discretion to group items together and the following adjustments:
Move the two items regarding labor negotiations recommended by the Finance Commission (items 4 and 5) down the list to just above the last item; Move the item regarding reexamining the Policy Committee’s enabling resolution up the list to the #5 position;
Delete the commercial rent control item; and
Add a review of Senate Bill 1439 to the review of Ethics and Conflict of Interest Policies item.
3. Discuss and Provide Direction to Potentially Modify Town Council Policy 2-04: Town Council Code of Conduct, Town Council Policy 2-05: Planning Commission Policies and Procedures, Town Council Policy 2-11: Commission Appointments, Residency and Attendance Requirements, and Establishing a Quorum, and the Commissioner Handbook.
Laurel Prevetti, Town Manager, and Gabrielle Whelan, Town Attorney, presented the staff report.
Opened public comment.
Karen Delaney commented that in 2018, she asked the Committee to revise the Code of Conduct, requested that a third party be brought in to investigate violations, and said that the policy should meet or exceed best practices.
Lee Quintana commented that the Code of Conduct policy should be clarified with definitions of minor and major infractions, minor infractions should be handled privately, there should be appropriate actions for varying degrees of major infractions, a third party should investigate major infractions, and the subject of a violation should be treated as an appellant.
Susan Burnett commented that errors in judgment should be defined and that many minor errors should be considered a major error. She commented that errors should be documented as to how they should be handled and that censures should be specified as written or verbal.
Closed Public Comment.
PAGE 3 OF 3
SUBJECT: Draft Minutes of the Council Policy Committee Meeting of February 28, 2023 DATE: March 28, 2023
After discussion, the Committee asked staff to return to the Committee with a revised Code of Conduct Policy that includes: a fair process for discipline of varying degrees, specific definitions/examples, clear enforcement direction, a process for the subject of a violation to be able to present facts to the Council, clarification regarding speaking on behalf of a Commission versus as an individual, use of a third party to review major violations, and other adjustments.
The Committee asked that staff consolidate disciplinary items to the Code of Conduct and remove similar guidance from the other policies.
ADJOURNMENT
The meeting adjourned at 6:32 p.m.
This is to certify that the foregoing is a true
and correct copy of the minutes of the
February 28, 2023 meeting as approved by the
Town Council Policy Committee.
Holly Young, Senior Management Analyst
Reviewed by: Town Manager
110 E. Main Street Los Gatos, CA 95030 ● (408) 354-6832 www.losgatosca.gov
TOWN OF LOS GATOS
COUNCIL POLICY COMMITTEE REPORT
MEETING DATE: 03/28/2023
ITEM NO: 2
DATE: March 22, 2023
TO: Council Policy Committee
FROM: Gabrielle Whelan, Town Attorney
SUBJECT: Discuss Proposed Changes to Council Code of Conduct Policy, and Commission Appointments, Residency and Attendance Requirements and Establishing a Quorum Policy
RECOMMENDATION:
Discuss proposed changes to Town Council Policy 2-04, the “Code of Conduct” as well as potential changes to Town Council Policy 2-11, “Commission Appointments, Residency, and Attendance Requirements and Establishing a Quorum” and provide direction to staff.
BACKGROUND:
At its February meeting, the Policy Committee discussed potential modifications to Town Council Policy 2-04, “Code of Conduct.” The Committee preferred that all guidance pertaining to discipline of Commissioners be contained in a single policy.
DISCUSSION:
The Policy Committee’s discussion focused on Town Council Policy 2-04, “Code of Conduct.” Specifically, the Policy Committee discussed:
1) Clarifying that the Code of Conduct applies to members of Town Boards, Commissions, and Committees in addition to Town Councilmembers;
2) Potentially changing the current composition of the Evaluation Committee to consist primarily of elected officials;
3) Providing examples of what will constitute major and minor violations of the Code of Conduct;
4) In the event that a public hearing is held regarding recommended discipline, providing the subject of the complaint with ten minutes to make an introductory statement and five minutes at the end of the public hearing to make an additional statement. 5) Specifying that censure consists of a written statement.
PAGE 2 OF 3
SUBJECT: Proposed Changes to Council Code of Conduct Policy and Related Policies DATE: March 22, 2023
DISCUSSION (continued):
Staff has the following additional questions for the Policy Committee’s consideration:
1) Several sections of the existing policy are unrelated to “conduct.” These are sections pertaining to: the Mayoral and Vice Mayoral Selection Process and Mayoral and Vice Mayoral Roles, Responsibilities, and Relationships. Does the Policy Committee recommend that these topics move to separate policies?
2) The Section titled “Maintaining Civility at Council Meetings” duplicates language in the Council’s “Agenda Format and Rules Policy.” Does the Policy Committee recommend removing this Section from the “Code of Conduct Policy?” 3) A subsection regarding “Training” lists the type of training that will be provided. Should this section be revised to state that members of legislative bodies are required to attend training that is provided in the listed subject areas?
4) The Code of Conduct Policy currently provides that investigations will be conducted by contract attorneys. Does the Policy Committee recommend using contract attorneys or non-lawyer investigators or either?
5) Town Council Policy 2-11, “Commission Appointments, Residency, and Attendance Requirements and Establishing a Quorum” currently provides that Commissioners may be removed by a majority vote of the Town Council for violations of the Code of Conduct. Other jurisdictions have policies providing that Commissioners may be removed by a majority vote of the Town Council for any or no reason. Does the Policy Committee recommend revising Policy 2-11 to provide that Commissioners may be removed by majority vote of the Town Council for any or no reason? Alternatively, this Policy could be modified to refer matters of discipline and removal to the Code of Conduct Policy.
CONCLUSION:
Based on the Policy Committee’s feedback, staff will make additional proposed edits to the Code of Conduct Policy and conforming edits to any other affected Policies and the Commissioner Handbook and either return to the Policy Committee or schedule the revisions for consideration by the Town Council.
COORDINATION:
The preparation of this report was coordinated with the Town Manager’s Office.
FISCAL IMPACT:
Potential modifications to Council Policies and the Commissioner Handbook have no fiscal impact.
PAGE 3 OF 3
SUBJECT: Proposed Changes to Council Code of Conduct Policy and Related Policies DATE: March 22, 2023
ENVIRONMENTAL ASSESSMENT:
This is not a project as defined in the California Environmental Quality Act, and no further action is required.
Attachment:
1. Redline of Council Code of Conduct Policy
ATTACHMENT 1 Page 9 Page 306
Reviewed by: Town Attorney and Finance Director
110 E. Main Street Los Gatos, CA 95030 ● (408) 354-6832 www.losgatosca.gov
TOWN OF LOS GATOS
COUNCIL POLICY COMMITTEE REPORT
MEETING DATE: 03/28/2023
ITEM NO: 3
DATE: March 23, 2023
TO: Council Policy Committee
FROM: Laurel Prevetti, Town Manager
SUBJECT: Recommend Legislative Priorities to the Town Council RECOMMENDATION:
Recommend legislative priorities to the Town Council.
BACKGROUND:
In 2016, the Town Council adopted Council Policy #2-18: Legislative Policy (Attachment 1). This Policy sets forth the procedures for engagement in the legislative process and the types of issues that are appropriate for the Town to state a position.
Last year, the Policy Committee requested that staff prepare a list of potential legislative priorities for the Committee to discuss and forward to the Town Council. Due to other workload, this item was not completed in 2022 and carried over to the 2023 Policy Committee work plan. These priorities are intended to be helpful to Town Council members as they engage in discussions with State legislators and as the Town considers which bills it chooses to endorse, oppose, or recommend amendments.
DISCUSSION:
Consistent with the Legislative Policy, the following draft legislative priorities align with proposals that clearly impact our Town and funding resources:
Concealed Weapons: In light of the recent Supreme Court ruling, the Town should advocate for legislation that clarifies the concealed carry weapons process and protects sensitive places from the presence of concealed weapons. Senate Bill (SB) 2 is an example of a such a bill. The Town is currently working to update its concealed carry weapons ordinance and a draft sensitive places ordinance.
PAGE 2 OF 2
SUBJECT: Recommend Legislative Priorities to the Town Council DATE: March 23, 2023
DISCUSSION (continued):
Clarifications regarding SB 9: The Town may want to advocate for legislation that clarifies SB lot splits and developments in Very High Fire Hazard Severity Zones, affordability requirements, and the attestation of intent to occupy. Reform of Proposition 47 and 57: Several bills are expected to address the unintended consequences of these ballot measures For example, AB 1708 would increase accountability for repeat theft offenders and offer pathways for pre-plea diversion programming.
Protect Vehicle License Fee (VLF) and Educational Revenue Augmentation Fund (ERAF):
As the State considers how it will address expected budget shortfalls, it is critical that the State not take funding from local government. In the past, these two funding sources have been redirected to the State for its own budgeting purposes. Internet Sales Tax: With the exception of our Measure G district sales tax, internet sales tax goes into a pool and is distributed based on a jurisdiction’s share of the overall sales tax collected in the respective County. In contrast, the Measure G district sales tax is distributed based on the buyer’s location, yielding higher revenue for the Town. Changes to the general distribution of sales tax would benefit Los Gatos.
CONCLUSION:
The Committee is encouraged to discuss these and other potential priorities.
COORDINATION:
The preparation of this report was coordinated with all Town Department Directors and the Town Attorney.
FISCAL IMPACT:
There is no fiscal impact associated with recommending legislative priorities to the Town Council.
ENVIRONMENTAL ASSESSMENT:
This is not a project defined under CEQA, and no further action is required.
Attachment:
1. Council Policy #2-18: Legislative Policy
Title: Legislative Policy
Date: 10/ 5/ 16
Enabling Actions: 11evi ate:
Policy Number: 2 -18
Pages: 3
PURPOSE
The purposes of the Legislative Policy are to: identify opportunities for the Town to participate in state, federal, and regional legislation and other policy matters, and describe a process for Town positions, actions, and related activities.
BACKGROUND
Council Members have the opportunity to learn of legislative issues from their work on the Council, general awareness of current topics, and their service on other Board and Committees as representatives ofthe Town. The Town Manager encourages all Town Departments to monitor and be knowledgeable of any legislative issues related to their disciplines. The Town Manager and Town Attorney similarly stay engaged with their professions as well as monitor the activities of the League of California Cities and other organizations. The Town benefits from a Legislative Policy to articulate overarching legislative principles to guide the Town' s engagement in the legislative process as outlined in this Policy.
LEGISLATIVE PRINCIPLES
The Town should take a position and advocate for the position when proposed federal, state, County, or other agency legislative or measure has a potential direct impact on the Town.
Direct impact includes and is not limited to issues of local control, revenue reductions, grant eligibility, unfunded mandates and regulatory burdens.
POLICY GOALS
1. Advocate the Town' s legislative interests at the federal, state, regional, and County levels.
2. Inform and provide information to our legislators, Town Council, and staff on the key issues and legislation that could have potential impact on the Town.
3. Serve as an active participant with other local governments, the League of California Cities, local profession organizations, and /or other entities on legislative /regulatory issues that are important to the Town and our region.
4. Seek grant and funding assistance for Town projects, services, and programs to enhance services for our community.
Page: Policy Number:
Title: Legislative Policy 2 of 3 2 -18
LEGISLATIVE STRATEGIES
1. Communicate legislative positions on proposed federal, state, and County legislation, measures, initiatives, and governmental regulations.
2. Work with Town Departments to develop positions on proposed federal and state legislative measures based on analysis done by the League of California Cities, communication with legislators' offices, and other local government / professional associations in formulating our positions.
3. Take positions only on proposals that clearly impact our Town or are a threat to local control.
4. Actively track key bills through the legislative process, utilizing various legislative websites, government / professional associations, and other means.
5. Communicate the Town' s position to our federal, state, regional, and County members, bill author( s), Committees, and /or other governmental bodies through correspondence, testimony, and in- person meetings.
6. Work cooperatively with other cities, associations and the League of California Cities on advocating our legislative positions.
7. As necessary, participate in the drafting and amending of proposed federal, state, regional, and /or County measures that have the potential to significantly impact the Town.
8. Meet with legislators and their representatives, as well as other federal, state, regional, and /or County government officials on a regular basis to discuss local government issues, proposed legislation, requests for funding assistance, and Town programs and services.
9. Seek federal, state, and County funding through earmarks, grants, and other discretionary funding for Town projects, services, and programs.
10. Annually identify Town projects for potential submittal for federal earmark consideration and develop a submittal packet for legislators that provides information and need for the projects.
11. Provide information to Town Departments on potential grant funding opportunities and recognition programs.
12. Advocate and request letters of support for Town projects and grant applications or other resources that are being considered for federal, state, regional, and/ or County funding.
LEGISLATIVE POSITION PROCESS
The process for responding to legislative proposals is as follows:
1. Once the Town Manager and /or Town Attorney determines that a legislative proposal may impact the Town, a letter outlining the Town' s position ( support, neutral or oppose) will be drafted for the Mayor' s signature.
2. The Town Manager will circulate the draft position letter to the Town Council for review.
3. Ifthere is Council objection, the position letter will be placed on the next Town Council agenda for consideration.
Page: Policy Number:
Title: Legislative Policy 3 of 3 1 2 -18
4. Ifthere is no objection, staff will finalize the position letter for the Mayor' s signature and forward the signed letter to the bill' s author, the League of California Cities, and other stakeholders as deemed appropriate.
5. A copy of the final letter will be distributed to the Town Council.
APPROVED AS TO FORM:
Robert Schultz, T w Attorney
Atachment 6
Summary of Code of Conduct Provisions from Other County of Santa Clara Jurisdic�ons City of Campbell
• Code of Conduct focuses on conflicts of interest and requires recusal for perceived conflicts of interest
• Provides that any Board or Commission member may be removed by majority vote of Council
City of Cuper�no
• Has adopted an Ethics Policy
o Provides that Board and Commission members may be removed by a majority vote of the Council
City of Gilroy
• Has adopted City Council Norms – does not contain discipline procedures City of Los Altos
• Separate policy regarding admoni�on and censure
• Applies to City Council only
• Requires two viola�ons of law or policy and a warning prior to censure • Censure adopted by resolu�on
• Three or more Councilmembers may place discipline or removal of a Board or Commission member on a Town Council agenda
City of Mountain View
• Board and Commission conduct addressed in one chapter of Council Code of Conduct • Board or Commission member subject to removal by 4/5 vote of Council City of San Jose
• Joint Council/Commission Code of Conduct – focus on avoiding perceived conflicts of interest
• Council Conduct Policy
o Council may ini�ate an inves�ga�on of allega�ons
o Provides for remedies of admoni�on, sanc�on, and censure
Atachment 6
City of Saratoga
• Adopted Resolu�on Establishing a Code of Ethics
o Aspira�onal statements
o No discipline procedures
City of Sunnyvale
• Separate policy for Board and Commission members
• Counseling, verbal reprimands, and writen warnings given by Mayor privately • Censure imposed by a majority of the City Council publicly • Board or Commission member can be removed by 4/5 vote of Council for enumerated reasons