Agenda — Monte Sereno City Council, April 19, 2022

AGENDA
City of Monte Sereno
Tuesday, April 19, 2022
City Council
7:00 PM
Monte Sereno City Council Chambers - 18041 Saratoga -
Los Gatos Road, Monte Sereno, Ca 95030

MEMBERS OF THE PUBLIC MAY ATTEND IN-PERSON

OR UTILIZE THE VIRTUAL OPTION
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You will be prompted to install the webinar client appropriate for your device. Attendees are encouraged to install the needed software in advance at the following locations depending on the device being used. If you are unable to participate in real-time, you may email to the City Clerk at [email protected] with the subject line "Public Comment Item #__ " (insert the item number relevant to your comment) or "Verbal Communications - Non Agenda Item." Comments received by email will be read into the record, with a maximum allowance of three (3) minutes per individual comment, subject to the Mayor's discretion.

All comments should be a maximum of 350 words, which corresponds to approximately three (3) minutes of speaking time. If a comment is received after the agenda item is heard but before the close of the meeting, the comment will still be included as a part of the record of the meeting but will not be read into the record. Any member of the public who needs accommodations should email or call the City Manager who will use his best efforts to provide reasonable accommodations to provide as much accessibility as possible while also maintaining public safety in accordance with the City procedure for resolving reasonable accommodation requests. In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the City Manager at 408-498-5285 or [email protected]. If requested of the City Manager, agendas and documents in the agenda packet can be made available in appropriate alternative formats to persons with a disability.

Page

CALL TO ORDER

PLEDGE OF ALLEGIANCE

ROLL CALL

ORDERS OF THE DAY
The Mayor, or a majority of the Council by vote, may change the order of business, except for public hearings on the agenda for a set time.

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PRESENTATIONS

1. Arbor Day Proclamation
Proclamation
Photo #1
Photo #2
Photo #3
Photo #4
5 - 9

2. Eid Al-Fitr Proclamation
Proclamation
10 - 11

3. Silicon Valley Clean Energy 2022 Reach Codes Report
Presentation

ORAL COMMUNICATIONS
Persons wishing to address the Council on any matter of City business not listed on the agenda may do so at this time. Each speaker will normally be allotted three minutes, subject to the Mayor or a majority of the Council’s ability to limit the amount of time allocated to speakers based on the number of speakers and the need for expedient administration of City business in light of the number and length of items on the agenda.

WRITTEN COMMUNICATIONS
Copies of communications have been provided to Council for review prior to this meeting. Council Members desiring to read or discuss any written communication may do so at this time. No action may be taken except to place a particular item on a future agenda for Council consideration.

CONSENT CALENDAR
It is recommended that all items listed below be acted on simultaneously unless separate discussion and/or action is required by a Councilmember. One public comment period will be provided, although speakers speaking on more than one item may be allocated additional time by the Mayor or a majority of the Council.

1. Approve Warrant List Dated April 19, 2022 in the Amount of $48,776.46 Staff recommends the City Council approve the Warrant List Staff Report - SR-22-091 - Pdf
12 - 13

2. Accept the Treasurer's Report for the Period Ending March 31, 2022 Staff recommends the City Council accept the Treasurer's Report for the period ending March 31, 2022
Staff Report - SR-22-083 - Pdf
14 - 15

3. Accept the LAIF Investment Report for March 31, 2022 Staff recommends the Council accept the LAIF Investment Report for March 2022
Staff Report - SR-22-086 - Pdf
16 - 18

4. Accept Revenues and Expenditures Report for the Month Ending March 31, 2022
19 - 30

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Staff recommends the Council accept the Revenues and Expenditures Report for the month ending March 31, 2022
Staff Report - SR-22-084 - Pdf

5. Accept the Significant Full Year To Date Variances to Budget Narrative for the Month of March 2022
Staff Report - SR-22-085 - Pdf
31 - 33

6. Accept the FY 2021-22 Mid-Year Budget Report
Staff recommends the Council accept the FY 2021-22 Mid-Year Budget Report
Staff Report - SR-22-087 - Pdf
34 - 54

7. Consider and Adopt Resolution Extending Teleconferencing of City Council Meetings Pursuant to Government Code Section 54953 (AB 361)
Staff recommends that the City Council consider and adopt a resolution extending teleconferencing of City Council meeting pursuant to AB 361.

Staff Report - SR-22-082 - Pdf
55 - 58

PUBLIC HEARINGS

UNFINISHED BUSINESS

NEW BUSINESS

1. Consider and Provide Direction to Staff on SB-9 Ordinance Modifications
Staff recommends that the City Council direct staff to prepare a draft ordinance to revise the Municipal Code standards for SB9 Residential Development projects as follows:
• Review the maximum building size allowed;
• Review the covered porch square footage limitations; and • Review the impervious coverage requirements.

Staff Report - SR-22-089 - Pdf
Public Comments
59 - 129

2. Accept Housing Element Update on Site Inventory and the April 23, 2022 Community Workshop Overview and Provide Direction to Staff Staff recommends that the City Council receive the Housing Element Update and provide any feedback or direction to staff.

Staff Report - SR-22-088 - Pdf
Presentation
130 - 184

3. Consider and Accept the City Manager's Quarterly Report 185 - 244

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Staff recommends that the City Council consider and accept the City Manager's quarterly report.

Staff Report - SR-22-092 - Pdf

COMMITTEE/COMMISSION REPORTS
This time is set aside to allow Councilmembers serving on Council committees or appointed by the City to serve on the boards, commissions or committees of other agencies to present a verbal report on the activities of the respective boards, commissions or committees on which they serve. No discussion or action may be taken other than to place the matter on a future agenda.

Cities Association Board of Directors - Ellahie/Mekechuk Cities Association Legislative Action Committee - Ellahie/Mekechuk Cities Association City Selection Committee - Ellahie/Lawler Valley Transportation Authority PAC - Mekechuk/Leuthold Silicon Valley Animal Control Authority - Lawler/Turner Silicon Valley Clean Energy Authority - Ellahie/Mekechuk West Valley Clean Water Board - Mekechuk/Turner
West Valley Mayors and Managers - Ellahie/Mekechuk
West Valley Sanitation District - Turner/Leuthold
West Valley Solid Waste/Recycling JPA - Mekechuk/Turner Youth Commission - Lawler/Turner

COUNCIL MEMBER COMMENTS
This time is set aside to allow Councilmembers to make brief announcements or reports on the Councilmember’s own activities. No discussion or action may be taken other than to place the matter on a future agenda.

CITY MANAGER’S REPORT

FUTURE AGENDA ITEMS
This time is set aside to allow Councilmembers to make a specific request for an item to be placed on a future agenda. No discussion or other action may be taken.

ADJOURN
* All items on the agenda are subject to action/or change by the City Council In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the City Clerk (408) 354-7635. If requested of the City Clerk, agendas and documents in the agenda packet can be made available in appropriate alternative formats to persons with a disability. Notification 48 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting. [28CFR 35.102-35.104 ADA Title II]

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OFFICIAL PROCLAMATION
WHEREAS in 1872, the Nebraska Board of Agriculture established a special day to be set aside for the planting of trees, and
WHEREAS this holiday, called Arbor Day, was first observed with the planting of more than a million trees in Nebraska, and
WHEREAS Arbor Day is now observed throughout the nation and the world, and
WHEREAS trees can be a solution to combating climate change by reducing the erosion of our precious topsoil by wind and water, cutting heating and cooling costs, moderating the temperature, cleaning the air, producing life-giving oxygen, and providing habitat for wildlife, and
WHEREAS trees are a renewable resource giving us paper, wood for our homes, fuel for our fires, and countless other wood products, and WHEREAS trees in our city increase property values, enhance the economic vitality of business areas, and beautify our community, and WHEREAS trees — wherever they are planted — are a source of joy and spiritual renewal.

NOW, THEREFORE, I, , Mayor of the City of
, do hereby proclaim
as ARBOR DAY
In the City of , and I urge all citizens
to celebrate Arbor Day and to support efforts to protect our trees and woodlands, and
FURTHER, I urge all citizens to plant trees to gladden the heart and promote the well-being of this and future generations.

DATED THIS day of ,
Mayor

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PROCLAMATION

PROCLAMATION RECOGNIZING THE CELEBRATION OF EID AL-FITR MARKING THE END OF

THE ISLAMIC HOLY MONTH OF RAMADAN
WHEREAS, Eid al-Fitr, also called the “Festival of Breaking the Fast,” will begin on the evening of Monday May 2, 2022, and will end in the evening of Tuesday May 3, 2022; and
WHEREAS, Eid al-Fitr marks the end of Ramadan, the Islamic holy month of fasting and spiritual renew celebrated by approximately 1,800,000,000 Muslims worldwide; and
WHEREAS, the observance of the Islamic holy month of Ramadan, in which the holy Quran was revealed, commenced on April 2, 2022, and ends on Sunday May 1, 2022; and
WHEREAS, in the month of Ramadan Muslims are reminded that their religion requires them to give charity, feed the hungry and the needy, respect and honor their neighbors and all their fellow human beings, and WHEREAS, Eid al-Fitr is celebrated to pay respect to God for providing strength and perseverance to sustain the month-long fasting rituals; and
WHEREAS, Eid al-Fitr falls on the first day of the Islamic holy month Shawwal, the tenth month of the lunar based Islamic calendar, a month symbolic of new life and renewal after a month of fasting and spiritual cleansing.

NOW, THEREFORE, I, Javed I. Ellahie, Mayor of Monte Sereno, and on behalf of the City Council, hereby recognize the commencement of Ramadan and the celebration of the Islamic holiday of Eid al-Fitr, which marks the end of the holy month of Ramadan, which is observed and celebrated by over one billion people worldwide.

IN WITNESS WHEREOF, I have hereunto set my hand and affixed the seal of the City of Monte Sereno this 19th day of April 2022.
________________________________

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Javed I. Ellahie, Mayor

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STAFF REPORT
Meeting: City Council - Apr 19 2022
Agenda Heading: CONSENT CALENDAR
Staff Contact: Reynold Samoranos,
Department: Finance Manager
Title: Approve Warrant List Dated April 19, 2022 in the Amount of $48,776.46 Recommendation(s):

Staff recommends the City Council approve the Warrant List Fiscal Impact:

There are no unbudgeted fiscal impacts with this agenda item.

Public Noticing:

The City Council’s agenda was posted at City Hall and the agenda and this report appear on the City’s website.

Attachments:
2022 04 19 Warrants List

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CITY OF MONTE SERENO
REGISTER OF ACCOUNTS PAYABLE AS OF THESE DATES:

April 19, 2022
CHECK
NO. TO FOR AMOUNT ACCOUNT NO.
19742 Aisha Shelton Adam Interview selected MS Staff employees. 2,775.00 01-427 19743 Alana Consulting, LLC Plan Check consulting - 02/28/2022 to 03/27/2022 14,892.50 01-765
19744 Anago Franchising, Inc Janitorial services for City Hall plus supplies. 395.81 01-860
19745 Bay Cities Joint Power
Insurance General Liability Insurance contribution 3,494.00 01-540 19746 BKF Engineers Hwy 9 Safety Improvement Gap Closure Project (CIP-2022-E) 1,607.50 05-870
19747 BMI Imaging Systems Web Hosting - March 2022 225.00 01-715 19748 COMCAST Internet services for City Hall 106.67 01-720 19749 CONTRACT Sweeping
Services
Residential street sweeping for January
and March 2022 3,665.60 12-865
19750 Diana Perkins Reimburse certified mailing of Housing Element Project documents. 203.88 01-711
19751 Dicar Networks, Inc. Management and maintenance of server and IT consulting services 1,325.00 01-535
19752 First Choice Coffee
Services
Coffee and drinking water services for
City Hall 280.50 01-710
19753 Frontier
Communications Landline for City Hall 63.70 01-720
19754 Hillview Design Print
Media Five name plates 123.63 01-725
19755 Ridley Master Legal expenses for Padgett case 117.00 01-427 19756 State Compensation Ins
Fund
Workers' Compensation insurance
premium 545.75 01-642
19757 TL Engineering Neighborhood Improvement Project - Daves Neighborhood (CIP-2022-C) 9,785.00 05-870
19758 Wells Fargo Bank
Office supplies $0.7k, ICMA Membership
$1.5k, Attend City Clerk conferences /
workshops $0.8k, and software licenses
$0.8k.
5,126.34
01-710
01-718
01-710
01-770
01-811
19759 Shestin Swartley Refund building permit #2021-0218 1,126.94 01-236 19760 Vantagepoint Transfer
Agent-30 Funding 457 Plan - March 2022 2,916.64 01-660
Total $48,776.46

I, REYNOLD SAMORANOS, FINANCIAL AND ADMINISTRATION OFFICER DO HEREBY CERTIFY THAT THE

PROCEEDING ACCOUNTS HAVE BEEN CHECKED AND FOUND CORRECT TO THE BEST OF MY KNOWLEDGE AND BELIEF.

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STAFF REPORT
Meeting: City Council - Apr 19 2022
Agenda Heading: CONSENT CALENDAR
Staff Contact: Reynold Samoranos,
Department: Finance Manager
Title: Accept the Treasurer's Report for the Period Ending March 31, 2022 Recommendation(s):

Staff recommends the City Council accept the Treasurer's Report for the period ending March 31, 2022
Background Information:

Analysis:

California Environmental Quality Act:

Fiscal Impact:

There are no unbudgeted fiscal impacts with this agenda item.

Public Noticing:

The City Council's agenda was posted at City Hall and the agenda and this report appear on the City's website.

Attachments:

TREASURERS REPORT 2022 03 31 (Final 04-11-2022)

Page 14 of 244 ends

TREASURER'S REPORT For the period ending
March 31, 2022
March 31, 2022 February 28, 2022 Changes Higher /
(Lower) Comment
BEGINNING BALANCE $423,358.45 $719,620.53 ($296,262.08) Receipts and Interest Earned
Receipts for the period 412,579.27 $121,236.32 $291,342.95 In March 2022, received from Santa Clara County Secured tax $187k, Property transfer tax $7k, COPS ELEAS pass-thru Grant to Los Gatos Police Services ($8k) and SB-813 Supplemental property tax ($5k) and building permits on Seaborn Ct ($70k), Bancroft Ave ($12k) and Daves Ave ($10k).

Investment receipts during the period $750,000.00 $0.00 $750,000.00 Transferred $750k from LAIF to Savings WFB to help pay for La Rinconada Phase 2 Neighborhood Project invoice.($591k)
Interest earned $0.00 $0.00
Total Receipts and Interest Earned $1,162,579.27 $121,236.32 $1,041,342.95 Less: Disbursements
Cash disbursements during the period $823,415.05 $368,370.58 $455,044.47 In March, paid $591k McKim Corp for La Rinconada Phase 2 Neighborhood improvement project (CIP-2022-D), $81k for Police services, $54k net pay to Staff, $38k for Enforecement, Building Inspector and Plan Check consultants, $18k legal services and $9k to Bartell Associates for Acturaial work for the FY 2021 Audit.

Invested during the period $0.00
GASB Report & SSA fee $0.00
EFT(PERS retirement) $13,330.70 $12,514.09 $816.61 Added staff payback of CalPERS loan EFT (payroll taxes) $23,333.20 $22,754.86 $578.34 Employee increased federal tax withholdings EFT (PERS health) $10,066.96 $8,348.56 $1,718.40 Catchup on health premiums two months for staff employee EFT (EDD payroll taxes) $5,210.30 $5,510.31 ($300.01)
Bank fees $18.16 $18.16
Total Disbursements $875,374.37 $417,498.40 $457,875.97 ENDING BALANCE $710,563.35 $423,358.45 $287,204.90

BALANCE IN DEMAND ACCOUNTS
Checking $59,882.62 $53,877.68 $6,004.94
Savings $650,680.73 $369,480.77 $281,199.96
TOTAL DEMAND ACCOUNTS $710,563.35 $423,358.45 $287,204.90

FUND DISTRIBUTION IN DEMAND ACCOUNTS
General ($112,528.98) ($496,386.52) $383,857.54
Law Enforcement $111,516.22 $103,182.89 $8,333.33 Received COPS ELEAS Grant pass-thru Grant ($8k).

Traffic Safety $233.56 $120,379.28 ($120,145.72) Help pay for La Rinconada Neighborhood Improvement Project (CIP-2022- D)
Gas Tax (2107) $210,638.19 $198,158.08 $12,480.11 Received Gas Tax Revenue ($12k) Storm Drain $497,148.86 $494,718.86 $2,430.00 Received storm drain fees for projects on Seaborn Ct.

Surety Trust $72.75 $72.75 $0.00
Loma Serena Ltg $3,443.81 $3,194.17 $249.64
Rose/Andrews Ltg. $38.94 $38.94 $0.00
Total $710,563.35 $423,358.45 $287,204.90

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STAFF REPORT
Meeting: City Council - Apr 19 2022
Agenda Heading: CONSENT CALENDAR
Staff Contact: Reynold Samoranos,
Department: Finance Manager
Title: Accept the LAIF Investment Report for March 31, 2022 Recommendation(s):

Staff recommends the Council accept the LAIF Investment Report for March 2022 Fiscal Impact:

There are no unbudgeted fiscal impacts with this agenda item.

Public Noticing:

The City Council's agenda was posted at City Hall and the agenda and this report appear on the City's website.

Attachments:

LAIF Investment Report 2022 03 31 (Final 04-11-2022)

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City of Monte Sereno
Investment Accounts
Local Agency Investment Fund Wells Fargo Accounts Custodian For the period ending
March 31, 2022

ALL FUNDS REPORT

LAIF GENERAL FUND RESERVE ACCOUNT
Undesignated Reserve
Economic Fluctuation Reserve
Capital Improvement Program Reserve
Property Improvement Reserve
Other Post Emplpoyment Benefits
(OPEB)
01-025 Subtotal Unrestricted Reserves
05-025 Trafffic Safety
12-025 2107 GAS TAX
25-025 Storm Drain
30-025 Surety Trust
Building Fund
40-024 Loma Serena Ltg.

Subtotal Restricted Reserve
Total General Fund Reserve -
LAIF
2/28/2022
Revenue Interest
and
(Disbursements )
Transfers within
WFB between
5508 and 2153
Transfer in/(Out)
(From WFB 5508
to LAIF)
3/31/2022 Comments
`
1,093,972.24 (450,000.00) 643,972.24 Help pay for La Rinconada Neighborhood Improvement Project (CIP-2022-D)
3,500,000.00 3,500,000.00
500,000.00 500,000.00
200,000.00 200,000.00

0.00 0.00
5,293,972.24 0.00 0.00 (450,000.00) 4,843,972.24
300,000.00 (300,000.00) 0.00 Help pay for La Rinconada Neighborhood Improvement Project (CIP-2022-D)
130,755.19 130,755.19
21,000.00 21,000.00
27,042.53 27,042.53

0.00 0.00
6,751.00 6,751.00
485,548.72 0.00 0.00 (300,000.00) 185,548.72
5,779,520.96 0.00 0.00 (750,000.00) 5,029,520.96
NOTES:

Interest is deposited directly to LAIF account. This monthly report is in compliance with the City's investment policy and demonstrates the City's ability to meet its expenditure requirements for the next six months.

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City of Monte Sereno
Investment Accounts
Local Agency Investment Fund Wells Fargo Accounts Custodian For the period ending
March 31, 2022

ALL FUNDS REPORT
SAVINGS ACCOUNT #5508
01-015 General
03-015 Law Enforecment
05-015 Traffic Safety
12-015 Gas Tax (2107)
25-015 Storm Drain
30-015 Surety Trust
40-015 Loma Serena Ltg.
50-015 Rose/Andrews Ltg
Total
WARRANT CHECKING ACCOUNT #2153
01-010 Total
Total All Funds
2/28/2022
Revenue Interest
and
(Disbursements )
Transfers within
WFB between
5508 and 2153
Transfer in/(Out)
(From WFB 5508
to LAIF)
3/31/2022 Comments
(550,264.20) 208,182.90 (280,330.30) 450,000.00 (172,411.60) In March 2022, received from Santa Clara County
Secured tax $187k, Property transfer tax $7k, COPS
ELEAS pass-thru Grant to Los Gatos Police
Services ($8k) and SB-813 Supplemental property
tax ($5k) and building permits on Seaborn Ct ($70k),
Bancroft Ave ($12k) and Daves Ave ($10k).
103,182.89 8,333.33 111,516.22 Received COPS ELEAS Grant pass-thru ($8k). 120,379.28 233.56 (420,379.28) 300,000.00 233.56
198,158.08 12,480.11 210,638.19 Received Gas Tax SB-1 Revenue($12k) 494,718.86 2,430.00 497,148.86

72.75 0.00 72.75
3,194.17 249.64 3,443.81 Received Secured Property Taxes.

38.94 0.00 38.94
369,480.77 231,909.54 (700,709.58) 750,000.00 650,680.73 53,877.68 (694,704.64) 700,709.58 59,882.62
In March, paid $591k McKim Corp for La Rinconada
Phase 2 Neighborhood improvement project (CIP2022-D), $81k for Police services, $54k net pay to Staff, $38k for Enforecement, Building Inspector
and Plan Check consultants, $18k legal services
and $9k to Bartell Associates for Acturaial work for
the FY 2021 Audit.
6,202,879.41 (462,795.10) 0.00 0.00 5,740,084.31
NOTES:

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STAFF REPORT
Meeting: City Council - Apr 19 2022
Agenda Heading: CONSENT CALENDAR
Staff Contact: Reynold Samoranos,
Department: Finance Manager
Title: Accept Revenues and Expenditures Report for the Month Ending March 31, 2022
Recommendation(s):

Staff recommends the Council accept the Revenues and Expenditures Report for the month ending March 31, 2022
Fiscal Impact:

There are no unbudgeted fiscal impacts with this agenda item.

Public Noticing:

The City Council's agenda was posted at the City Hall and the agenda this report appear on the City's website.

Attachments:

REVENUE AND EXPENDITURES MONTHLY REPORT 2022 03 31 (Final 04-11-2022)

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THE CITY OF MONTE SERENO

REVENUES AND EXPENDITURES REPORT

FOR THE MONTH OF
March 2022

75.0% OF FY 2021-22 Adopted Budget

REVENUES

PROPERTY TAX

LICENSE & PERMITS

FRANCHISE TAX

INTERGOVERNMENTAL

OTHER REVENUE

GAS TAX

INTEREST

REAL PROPERTY TAX

SALES TAX
FINES

TOTAL REVENUE
FY 2021-22 Adopted
Budget

CURRENT MONTH
March 2022
FY 2021-22 YTD
ACTUAL
FY 2021-22 YTD
vs. FY 2021-22 Full
Year Budget -
Higher/(Lower)
% OF YTD
ACTUAL VS.

Full Year

ADOPTED
BUDGET
2,274,100 187,160 1,588,258 (685,842) 69.8%
666,525 116,349 759,059 92,534 113.9%
310,700 34,052 195,867 (114,833) 63.0%
227,250 9,088 140,578 (86,672) 61.9%
385,600 33,713 170,351 (215,249) 44.2%
176,000 12,480 115,105 (60,895) 65.4%
24,800 0 6,841 (17,959) 27.6%
205,245 7,279 145,252 (59,993) 70.8%
581,325 2,058 421,745 (159,580) 72.5%
3,500 234 2,055 (1,445) 58.7%
4,855,045 402,412 3,545,111 (1,309,934) 73.0%
Page: 1 of 11 File: REVENUE AND EXPENDITURES MONTHLY REPORT 2022 03 31 (Final 04-11-2022) Page 20 of 244

THE CITY OF MONTE SERENO

REVENUES AND EXPENDITURES REPORT

FOR THE MONTH OF
March 2022

75.0% OF FY 2021-22 Adopted Budget

PROPERTY TAX
01-202 Secured
01-204 Unsecured
01-210 Homeowners Exemption
01-214 SB 813 Supplemental
03-316 Law Enforcement Tax (See Notes
Below)
40-366 Secured
40-368 Unsecured
40-370 Homeowners Exemption
40-378 Homeowner Exempt/SB813
50-402 Assessment

TOTAL PROPERTY TAX
Notes to Law Enforcement Tax - $106,000
03-316
Police Special Tax Assessment
two payments received January &
June - $106,000

SALES TAX
01-296 Sales and UseTax
01-298 Coronavirus Relief Fund (State)

TOTAL SALES TAX

GAS TAX
12-328 Gas Tax
12-333 Gas Tax (SB-1)

TOTAL GAS TAX

FRANCHISE TAX
01-262 Gas
01-263 Electricity
01-264 Water
01-266 Refuse
01-267 Recycle HHW & JPA fees
01-268 Cable TV

TOTAL FRANCHISE TAX
FY 2021-22 Adopted
Budget

CURRENT MONTH
March 2022
FY 2021-22 YTD
ACTUAL
FY 2021-22 YTD
vs. FY 2021-22 Full
Year Budget -
Higher/(Lower)
% OF YTD
ACTUAL VS.

Full Year

ADOPTED
BUDGET
2,039,700 183,031 1,373,449 (666,251) 67.3%
87,000 0 85,304 (1,696) 98.1%
5,000 0 2,686 (2,314) 53.7%
35,000 3,880 13,655 (21,345) 39.0%
106,000 0 111,515 5,515 105.2%
1,400 244 1,513 113 108.1%
0 0 114 114 N/A
0 0 4 4 N/A
0 5 19 19 N/A
0 0 0 0 N/A
2,274,100 187,160 1,588,258 (685,842) 69.8%
7,825 2,058 11,840 4,015 151.3%
573,500 0 409,905 (163,595) 71.5%
581,325 2,058 421,745 (159,580) 72.5%
176,000 6,889 61,230 (114,770) 34.8%
0 5,591 53,875 53,875 N/A
176,000 12,480 115,105 (60,895) 65.4%
17,600 0 0 (17,600) 0.0%
38,000 0 0 (38,000) 0.0%
29,600 0 33,550 3,950 113.3%
120,100 29,633 98,244 (21,856) 81.8%
31,700 4,418 26,638 (5,062) 84.0%
73,700 0 37,434 (36,266) 50.8%
310,700 34,052 195,867 (114,833) 63.0%

Page: 2 of 11 File: REVENUE AND EXPENDITURES MONTHLY REPORT 2022 03 31 (Final 04-11-2022) Page 21 of 244

THE CITY OF MONTE SERENO

REVENUES AND EXPENDITURES REPORT

FOR THE MONTH OF
March 2022

75.0% OF FY 2021-22 Adopted Budget

REAL PROPERTY TAX
01-222 Real Prop Transfer Tax
01-225 SB 2 Real Estate Transactions
TOTAL REAL PROP. TAX

LICENSE AND PERMIT FEES
01-231 SB1186 Fees
01-232 Business License
01-234 ConstructionTax
01-235 SMIP
01-236 Construction Permits
01-237 Grading Permits
01-238 SB1473 (BSASRF)
01-240 Subdivision Fee
01-241 Site Development\Use\Variance\
01-242 Zoning Fees
01-244 Encroachments
01-245 Community Planning Fee
. TOTAL LICENSE & PERMITS
FINES
01-293 Alarm Soundings
05-322 Traffic Safety (Bails & Fines)

TOTAL FINES

INVESTMENT INCOME
01-282 Interest - General (See Notes
Below)
12-332 Gas Tax Interest
. TOTAL INTEREST
.

Notes to Interest - General - $24,150
01-282
LAIF interest payment received in
arrears - 1st Qtr in October
($3,515 Actual), 2nd Qtr in
January, 3rd Qtr in April and 4th
Qtr in July.

FY 2021-22 Adopted
Budget

CURRENT MONTH
March 2022
FY 2021-22 YTD
ACTUAL
FY 2021-22 YTD
vs. FY 2021-22 Full
Year Budget -
Higher/(Lower)
% OF YTD
ACTUAL VS.

Full Year

ADOPTED
BUDGET
95,000 7,279 145,252 50,252 152.9%
110,245 0 0 (110,245) 0.0%
205,245 7,279 145,252 (59,993) 70.8%
1,175 52 680 (495) 57.9%
21,000 959 13,128 (7,872) 62.5%
12,200 7,109 32,995 20,795 270.4%
1,700 782 4,755 3,055 279.7%
500,000 74,625 554,429 54,429 110.9%
32,000 13,836 48,762 16,762 152.4%
700 241 2,698 1,998 385.4%
0 0 186 186 N/A
0 2,800 8,477 8,477 N/A
3,350 0 0 (3,350) 0.0%
53,000 4,660 36,105 (16,895) 68.1%
41,400 11,286 56,845 15,445 137.3%
666,525 116,349 759,059 92,534 113.9%
0 0 0 0 N/A
3,500 234 2,055 (1,445) 58.7%
3,500 234 2,055 (1,445) 58.7%
24,150 0 6,110 (18,040) 25.3%
650 0 730 80 112.4%
24,800 0 6,841 (17,959) 27.6%
Page: 3 of 11 File: REVENUE AND EXPENDITURES MONTHLY REPORT 2022 03 31 (Final 04-11-2022) Page 22 of 244

THE CITY OF MONTE SERENO

REVENUES AND EXPENDITURES REPORT

FOR THE MONTH OF
March 2022

75.0% OF FY 2021-22 Adopted Budget

INTERGOVERNMENTAL
01-287 AB939 (recycle incentive)
01-288 Abandoned Vehicle Abatement
01-300 Motor vehicle (state)
01-305 Miscellaneous
03-318 COPS grant revenue
05-323 Miscellaneous (Measure B &VRF)
See Notes Below

TOTAL OTHER REVENUE
Notes to Miscellaneous (01-292) $283,600
01-292 Secured Grant for Annex Building
Project $198,600
01-292 Housing Element - Leap Grant
$65,000
01-292 Housing Element - Reap Grant
$20,000

TOTAL REVENUE
FY 2021-22 Adopted
Budget

CURRENT MONTH
March 2022
FY 2021-22 YTD
ACTUAL
FY 2021-22 YTD
vs. FY 2021-22 Full
Year Budget -
Higher/(Lower)
% OF YTD
ACTUAL VS.

Full Year

ADOPTED
BUDGET
2,500 0 1,096 (1,404) 43.9%
1,750 754 2,002 252 114.4%
3,000 0 4,164 1,164 138.8%
0 0 0 0 N/A
100,000 8,333 111,285 11,285 111.3%
120,000 0 22,031 (97,969) 18.4%
227,250 9,088 140,578 (86,672) 61.9%
90,000 29,458 145,553 55,553 161.7%
0 0 140 140 N/A
6,000 1,825 6,968 968 116.1%
283,600 0 35 (283,565) 0.0%
0 0 0 0 N/A
0 0 0 0 N/A
6,000 2,430 17,656 11,656 294.3%
0 0 0 0 N/A
0 0 0 0 N/A
0 0 0 0 N/A
385,600 33,713 170,351 (215,249) 44.2%
4,855,045 402,412 3,545,111 (1,309,934) 73.0%
Page: 4 of 11 File: REVENUE AND EXPENDITURES MONTHLY REPORT 2022 03 31 (Final 04-11-2022) Page 23 of 244

THE CITY OF MONTE SERENO

REVENUES AND EXPENDITURES REPORT

FOR THE MONTH OF
March 2022

75.0% OF FY 2021-22 Adopted Budget

EXPENDITURES

PERSONNEL

LAW ENFORCEMENT

CONSTRUCTION

GENERAL GOVERNMENT

MAINTENANCE

ADMINISTRATION

CITY ATTORNEY

BUILDING MAINTENANCE

EQUIPMENT / IMPROVEMENT

CITY AUDIT

ENGINEERING

SPECIAL DISTRICTS

TOTAL EXPENDITURES

NET SURPLUS / (DEFICIT)
FY 2021-22 Adopted
Budget

CURRENT MONTH
March 2022
FY 2021-22 YTD
ACTUAL
FY 2021-22 YTD
vs. FY 2021-22 Full
Year Budget -
Higher/(Lower)
% OF YTD
ACTUAL VS.

Full Year

ADOPTED
BUDGET
1,302,975 110,358 929,624 (373,351) 71.3%
1,067,085 80,590 682,550 (384,535) 64.0%
405,406 0 565 (404,841) 0.1%
495,588 27,024 388,694 (106,894) 78.4%
2,723,100 581,329 1,386,135 (1,336,965) 50.9%
465,880 31,987 314,480 (151,400) 67.5%
171,200 17,579 122,393 (48,807) 71.5%
645,000 4,439 26,895 (618,105) 4.2%
132,800 300 21,442 (111,358) 16.1%
58,600 11,537 14,127 (44,473) 24.1%
50,000 0 0 (50,000) 0.0%
0 418 1,170 1,170 N/A
7,517,634 865,561 3,888,076 (3,629,558) 51.7%
(2,662,589) (463,149) (342,965) 2,319,624 12.9%
Page: 5 of 11 File: REVENUE AND EXPENDITURES MONTHLY REPORT 2022 03 31 (Final 04-11-2022) Page 24 of 244

THE CITY OF MONTE SERENO

REVENUES AND EXPENDITURES REPORT

FOR THE MONTH OF
March 2022

75.0% OF FY 2021-22 Adopted Budget

EXPENDITURES

GENERAL GOVERNMENT
01-505 Council Trvl, Mtgs,Protocol
01-506 Youth Commission Programs
01-507 Community Interface
01-515 Council Memberships
01-520 Elections
01-521 Municipal Code Revision
01-522 Environmental Services
01-531 Disbursement SMIP
01-532 SB1473 (BSASRF)
01-533 Disbruse SB1186 Fees
01-535 Professional Services
01-540 Insurance & Bonding
01-545 Code Enforcement
01-550 Community Based Organizations
01-555 Emergency Services
01-560 Annexation
01-565 Legal Ads/Notices/Recording fees
01-570 General Plan Revise
01-575 Misc/Refunds
01-576 Sales Tax
01-585 Animal Control

TOTAL GENERAL GOVERNMENT
FY 2021-22 Adopted
Budget

CURRENT MONTH
March 2022
FY 2021-22 YTD
ACTUAL
FY 2021-22 YTD
vs. FY 2021-22 Full
Year Budget -
Higher/(Lower)
% OF YTD
ACTUAL VS.

Full Year

ADOPTED
BUDGET
15,000 0 1,990 (13,010) 13.3%
3,000 0 0 (3,000) 0.0%
11,000 0 3,200 (7,800) 29.1%
12,000 0 1,672 (10,328) 13.9%
0 0 0 N/A
2,678 0 2,875 197 107.4%
22,035 0 6,014 (16,021) 27.3%
11,460 0 0 (11,460) 0.0%
500 0 0 (500) 0.0%
200 0 0 (200) 0.0%
232,000 4,117 183,332 (48,668) 79.0%
87,215 0 86,391 (824) 99.1%
30,000 15,209 39,273 9,273 130.9%
20,000 0 25,000 5,000 125.0%
12,000 0 0 (12,000) 0.0%
0 0 0 0 N/A
2,500 0 8,003 5,503 320.1%
0 0 0 0 N/A
1,000 0 150 (850) 15.0%
0 0 0 0 N/A
33,000 7,699 30,794 (2,206) 93.3%
495,588 27,024 388,694 (106,894) 78.4%
Page: 6 of 11 File: REVENUE AND EXPENDITURES MONTHLY REPORT 2022 03 31 (Final 04-11-2022) Page 25 of 244

THE CITY OF MONTE SERENO

REVENUES AND EXPENDITURES REPORT

FOR THE MONTH OF
March 2022

75.0% OF FY 2021-22 Adopted Budget

PERSONNEL
01-605 Regular Full Time
01-615 Part Time
01-620 Long Term Disablity Ins
01-625 Retirement Employer
01-627 Retirement Employee
01-630 Health Insurance
01-635 Dental Insurance
01-642 Workers Comp. Insurance
01-645 Social Security
01-647 Medicare
01-650 Unemployment
01-660 Deferred Compensation
01-665 Benefits Allowance

TOTAL PERSONNEL

ADMINISTRATION
01-705 Office Utilities
01-710 Office Supplies
01-711 Postage
01-715 Office Equip Maintenance
01-718 Bank Fee Finance Charge
01-720 Communications
01-725 Reproduction/Printing
01-740 Mtgs/Trvl/Mileage reimb.
01-745 Publications/Memberships
01-755 Professional Services
01-765 Contract Services
01-770 Training
01-775 Miscellaneous
01-885 Horticultural/Arborist Services
01-999 City Mangers Revolving Account

TOTAL ADMINISTRATION
FY 2021-22 Adopted
Budget

CURRENT MONTH
March 2022
FY 2021-22 YTD
ACTUAL
FY 2021-22 YTD
vs. FY 2021-22 Full
Year Budget -
Higher/(Lower)
% OF YTD
ACTUAL VS.

Full Year

ADOPTED
BUDGET
893,194 78,760 688,524 (204,670) 77.1%
0 0 0 0 N/A
0 0 0 0 N/A
136,947 7,177 60,333 (76,614) 44.1%
32,775 2,049 17,974 (14,801) 54.8%
101,807 10,910 69,118 (32,689) 67.9%
7,267 363 5,814 (1,453) 80.0%
11,165 546 3,950 (7,215) 35.4%
53,592 5,038 39,973 (13,619) 74.6%
13,398 1,178 10,308 (3,090) 76.9%
294 0 336 42 114.3%
24,693 2,637 18,456 (6,237) 74.7%
27,843 1,700 14,838 (13,005) 53.3%
1,302,975 110,358 929,624 (373,351) 71.3%
11,500 1,172 6,078 (5,422) 52.9%
15,000 296 13,722 (1,278) 91.5%
5,000 0 1,399 (3,601) 28.0%
14,280 480 25,510 11,230 178.6%
0 183 183 N/A
32,500 94 22,960 (9,540) 70.6%
8,500 418 3,579 (4,921) 42.1%
5,600 1,103 9,651 4,051 172.3%
22,000 200 16,451 (5,549) 74.8%
0 0 0 0 N/A
335,000 23,172 208,795 (126,205) 62.3%
7,000 5,053 6,153 (848) 87.9%
0 0 0 N/A
7,000 0 0 (7,000) 0.0%
2,500 0 0 (2,500) 0.0%
465,880 31,987 314,480 (151,400) 67.5%
Page: 7 of 11 File: REVENUE AND EXPENDITURES MONTHLY REPORT 2022 03 31 (Final 04-11-2022) Page 26 of 244

THE CITY OF MONTE SERENO

REVENUES AND EXPENDITURES REPORT

FOR THE MONTH OF
March 2022

75.0% OF FY 2021-22 Adopted Budget

EQUIPMENT/IMPROVEMENTS
01-805 Office
01-810 Field
01-811 Computer, Hard/Software
01-815 Building Improvements

TOTAL EQUIPMENT / IMPROVEMENTS

LAW ENFORCEMENT
03-545 Police Services
01-546 Booking & CAL-ID
03-548 Disburse COPS grant funds

TOTAL LAW ENFORCEMENT

BUILDING MAINTENANCE
01-860 Building & Ground Maint
01-920 Building & Ground Const

TOTAL BUILDING MAINTENANCE

MAINTENANCE
01-845 Pavement Management Program
12-845 Pavement Management Program
05-850 Storm Drain Maintenance
05-870 Traffic Safety (signs & markings)
05-880 Traffic Safety (emergency calls&repairs)
05-890 Traffic Safety ( street lighting)
12-865 Street Sweeping
25-850 Storm Drain Maintenance

TOTAL MAINTENANCE
FY 2021-22 Adopted
Budget

CURRENT MONTH
March 2022
FY 2021-22 YTD
ACTUAL
FY 2021-22 YTD
vs. FY 2021-22 Full
Year Budget -
Higher/(Lower)
% OF YTD
ACTUAL VS.

Full Year

ADOPTED
BUDGET
15,000 0 0 (15,000) 0.0%
0 0 0 0 N/A
117,800 300 21,442 (96,358) 18.2%
0 0 0 0 N/A
132,800 300 21,442 (111,358) 16.1%
967,085 80,590 571,265 (395,820) 59.1%
0 0 0 0 N/A
100,000 0 111,285 11,285 111.3%
1,067,085 80,590 682,550 (384,535) 64.0%
45,000 4,439 25,400 (19,600) 56.4%
600,000 0 1,495 (598,505) 0.2%
645,000 4,439 26,895 (618,105) 4.2%
2,500 0 11,605 9,105 464.2%
0 0 0 0 N/A
0 0 0 N/A
2,685,000 581,329 1,354,193 (1,330,807) 50.4%
10,000 0 5,170 (4,830) 51.7%
4,200 0 2,765 (1,435) 65.8%
11,400 0 1,833 (9,567) 16.1%
10,000 0 10,570 570 105.7%
2,723,100 581,329 1,386,135 (1,336,965) 50.9%
Page: 8 of 11 File: REVENUE AND EXPENDITURES MONTHLY REPORT 2022 03 31 (Final 04-11-2022) Page 27 of 244

THE CITY OF MONTE SERENO

REVENUES AND EXPENDITURES REPORT

FOR THE MONTH OF
March 2022

75.0% OF FY 2021-22 Adopted Budget

CONSTRUCTION
01-905 Gen Fund Road Proj.(FY2018/19)
01-915 Neighborhood St. Improve Project
05-905 Traffic Safety Project
05-925 Traffic Safety Misc Bike/Ped Improv
12-915 Gas Tax Road Project
25-910 Storm Drain Project

TOTAL CONSTRUCTION

ENGINEERING
Mapping and Records System
12-875 Congestion Management
25-805 WV Clean Water Administration

TOTAL ENGINEERING

SPECIAL DISTRICTS
40-935 Loma Serena Lighting
50-945 Rose/Andrews Lighting

TOTAL SPECIAL DISTRICTS
FY 2021-22 Adopted
Budget

CURRENT MONTH
March 2022
FY 2021-22 YTD
ACTUAL
FY 2021-22 YTD
vs. FY 2021-22 Full
Year Budget -
Higher/(Lower)
% OF YTD
ACTUAL VS.

Full Year

ADOPTED
BUDGET
60,000 0 0 (60,000) 0.0%
0 0 0 0 N/A
0 0 0 0 N/A
340,000 0 0 (340,000) 0.0%
0 0 0 0 N/A
5,406 0 565 (4,841) 10.4%
405,406 0 565 (404,841) 0.1%
0 0 0 N/A
18,000 0 0 (18,000) 0.0%
32,000 0 0 (32,000) 0.0%
50,000 0 0 (50,000) 0.0%
331 782 782 N/A
87 389 389 N/A
0 418 1,170 1,170 N/A
Page: 9 of 11 File: REVENUE AND EXPENDITURES MONTHLY REPORT 2022 03 31 (Final 04-11-2022) Page 28 of 244

THE CITY OF MONTE SERENO

REVENUES AND EXPENDITURES REPORT

FOR THE MONTH OF
March 2022

75.0% OF FY 2021-22 Adopted Budget

CITY ATTORNEY
01-425 Retainer
01-427 Litigation
01-430 City Attorney litigation
01-435 Mtg, Trv, Prot.

TOTAL CITY ATTORNEY

CITY AUDIT
01-470 Audit
12-472 Gas Tax Audit
01-480 Misc/Bank charges

TOTAL CITY AUDIT

TOTAL EXPENDITURES

NET SURPLUS / (DEFICIT)
FY 2021-22 Adopted
Budget

CURRENT MONTH
March 2022
FY 2021-22 YTD
ACTUAL
FY 2021-22 YTD
vs. FY 2021-22 Full
Year Budget -
Higher/(Lower)
% OF YTD
ACTUAL VS.

Full Year

ADOPTED
BUDGET
111,200 6,708 58,980 (52,220) 53.0%
60,000 10,871 63,413 3,413 105.7%
0 0 0 0 N/A
0 0 0 0 N/A
171,200 17,579 122,393 (48,807) 71.5%
50,100 8,600 8,600 (41,500) 17.2%
3,500 2,576 2,576 (924) 73.6%
5,000 361 2,952 (2,048) 59.0%
58,600 11,537 14,127 (44,473) 24.1%
7,517,634 865,561 3,888,076 (3,629,558) 51.7%
(2,662,589) (463,149) (342,965) 2,319,624 12.9%
Page: 10 of 11 File: REVENUE AND EXPENDITURES MONTHLY REPORT 2022 03 31 (Final 04-11-2022) Page 29 of 244

THE CITY OF MONTE SERENO

REVENUES AND EXPENDITURES REPORT

FOR THE MONTH OF
March 2022

75.0% OF FY 2021-22 Adopted Budget

TOTAL FUND RESERVES

WARRANT CHECKING ACCOUNT
01-010 TOTAL WARRANT CHECKING

SAVINGS ACCOUNT
01-015 General
03-015 Law Enforecment
05-015 Traffic Safety
12-015 Gas Tax (2107)
25-015 Storm Drain
30-015 Surety Trust
40-015 Loma Serena Ltg.
50-015 Rose/Andrews Ltg

TOTAL SAVINGS

TOTAL DEMAND ACCOUNTS

LAIF GENERAL FUND ACCOUNT
Undesignated Reserve
Economic Fluctuation Reserve
Capital Improvement Program Reserve
Property Improvement Reserve
Other Post Emplpoyment Benefits (OPEB)
01-025 Subtotal Unrestricted Reserve
05-025 Trafffic Safety
12-025 2107 GAS TAX
25-025 Storm Drain
30-025 Surety Trust
40-024 Loma Serena Lighting District
Subtotal Restricted Reserve

TOTAL GENERAL FUND RESERVE

TOTAL ALL FUNDS
FY 2021-22 Adopted
Budget

CURRENT MONTH
March 2022
FY 2021-22 YTD
ACTUAL
FY 2021-22 YTD
vs. FY 2021-22 Full
Year Budget -
Higher/(Lower)
% OF YTD
ACTUAL VS.

Full Year

ADOPTED
BUDGET
13,695 6,005 59,883 46,188 437.3%
1,796,361 377,853 (172,412) (1,968,773) -9.6%
(811,083) 8,333 111,516 922,599 -13.7%
(2,570,127) (120,146) 234 2,570,361 0.0%
214,966 12,480 210,638 (4,328) 98.0%
30,369 2,430 497,149 466,780 1637.0%
73 0 73 (0) 99.7%
2,888 250 3,444 556 119.2%
39 0 39 (0) 99.8%
(1,336,514) 281,200 650,681 1,987,195 -48.7%
(1,322,819) 287,205 710,563 2,033,382 -53.7%
533,850 (450,000) 643,972 110,122 120.6%
3,500,000 0 3,500,000 0 100.0%
500,000 0 500,000 0 100.0%
200,000 0 200,000 0 100.0%
0 0 0 0 N/A
4,733,850 (450,000) 4,843,972 110,122 102.3%
100,000 (300,000) 0 (100,000) 0.0%
129,793 0 130,755 962 100.7%
21,000 0 21,000 0 100.0%
27,043 0 27,043 0 100.0%
6,751 0 6,751 0 100.0%
284,587 (300,000) 185,549 (99,038) 65.2%
5,018,437 (750,000) 5,029,521 11,084 100.2%
3,695,618 (462,795) 5,740,084 2,044,467 155.3%
Page: 11 of 11 File: REVENUE AND EXPENDITURES MONTHLY REPORT 2022 03 31 (Final 04-11-2022) Page 30 of 244

STAFF REPORT
Meeting: City Council - Apr 19 2022
Agenda Heading: CONSENT CALENDAR
Staff Contact: Reynold Samoranos,
Department: Finance Manager
Title: Accept the Significant Full Year To Date Variances to Budget Narrative for the Month of March 2022
Background Information:

Staff recommends the Council accept the Budget Narrative Variance to Budget Report for the month of March 2022.

Fiscal Impact:

There are no unbudgeted fiscal impacts with this agenda item.

Public Noticing:

The City Council's agenda was posted at City Hall and the agenda and this report appear on the city's website.

Attachments:

SIGNIFICANT YEAR TO DATE VARIANCES TO BUDGET NARRATIVE 2022 03 31 (Final 04- 12-2022)

Page 31 of 244 ends

1 | P a g e
Significant Revenue and Expenditures Narrative
March 2022

75.0% of FY 2021-22 Adopted Budget
Revenues

SIGNIFICANT FULL YEAR VARIANCES TO ADOPTED BUDGET NARRATIVE  Revenues $3.5 Million (73.0% of FY 2021-22 Adopted Budget) - Property Tax $1,588k, 69.8% of FY 2021-22 Adopted Budget: In March received Secured Property Tax $183k (01-202) and SB 813 Supplemental tax $4k (01-214).

- Licenses and Permits $759k, 113.9% of FY 2021-22 Adopted Budget: Licenses and Permits activities continue to be robust this year. In March, led by $75k Building Permits (01-236) on Seaborn Ct $70k and Daves Ave $10k.
- Franchise Fees $196k, 63.0% of FY 2021-22 Adopted Budget: Received $34k franchise tax from West Valley Collection franchise fees (01-266/01-267).
- Intergovernmental $141k, 61.9% of FY 2021-22 Adopted Budget: Received $8k COPS ELEAS pass-thru grant revenue (03-318).
- Other Revenues $170k, 44.2% of FY 2021-22 Adopted Budget: In March, received $29k Road Impact Fees from projects on Seaborn Ct, Bancroft Ave, Bicknell Rd and Daves Ave. (01-246). - Gas Tax $115k, 65.4% of FY 2021-22 Adopted Budget: Received $6k from SB-1 Road Maintenance & Rehabilitation revenue (12-333) and $7k from 2107 Revenue (02-328). - Real Property Tax $145k, 70.8% of FY 2021-22 Adopted Budget: In March, received $7k in real property transfer tax for the month of February 2022 (01-222).
- Sales and Use Tax $422k, 72.5% of FY 2021-22 Adopted Budget: Already received Coronavirus Relief Fund of $410k. In March, received $2k from Board of Equalization sales tax from 1st Quarter 2022 (January - March) (01- 296)
- Investment Income/Interest $7k, 27.9% of FY 2021-22 Adopted Budget: none.

Page 32 of 244 ends

2 | P a g e
Significant Revenue and Expenditures Narrative
March 2022

75.0% of FY 2021-22 Adopted Budget
Expenditures

SIGNIFICANT FULL YEAR VARIANCES TO ADOPTED BUDGET NARRATIVE  Expenditures $3.9 Million, 51.7% of FY 2021-22 Adopted Budget - Personnel $930k, 71.3% of FY 2021-22 Adopted Budget: Salaries and benefits tracking budget. Unfunded Pension liabilities lower versus the Adopted Budget.
- Law Enforcement $683k, 64.0% of FY 2021-22 Adopted Budget: Paid monthly Police services $81k (03-545). - Construction $565, 0.1% of FY 2021-22 Adopted Budget: None during month March 2022. - General Government $389k, 78.4% of FY 2021-22 Adopted Budget: In March, CSG Consultants, Inc $15k for two months Code Enforcement consultant, M-Group $3k for Object Design Standards project and Dicar Networks $1k for IT consulting services for March.
- Maintenance $1,386k, 50.9% of FY 2021-22 Adopted Budget: In March, paid $591k to McKim Corporation for La Rinconada Neighborhood St Improvement Project, (05-870). - Administration $314k, 67.5% of FY 2021-22 Adopted Budget: In March, paid Alana Consulting $15k for Plan Check services and $8k to CSG Consultants for Building Inspector consultant. (01-765). - City Attorney $122k, 71.5% of FY 2021-22 Adopted Budget: City Attorney expenses $7k (01-425) and $11k for legal representation for open cases – Shekar, Padgett, and Greenwood Lane cases (01-427). - Building Maintenance $27k, 4.2% of FY 2021-22 Adopted Budget: Paid $4k to Prime Tree Care to cut Pine trees on Robin Anne Ln. (01-860).
- Equipment / Improvements $21k, 16.1% of FY 2021-22 Adopted Budget: None paid in March 2022. - City Audit $14k, 24.1% of FY 2021-22 Adopted Budget: In March, paid Bartell Associates $9k for actuarial report that was included in the FY 2020-21 audit and $2k to State Controller’s Office for the Gas Tax audit report.

Page 33 of 244 ends

STAFF REPORT
Meeting: City Council - Apr 19 2022
Agenda Heading: CONSENT CALENDAR
Staff Contact: Reynold Samoranos,
Department: Finance Manager
Title: Accept the FY 2021-22 Mid-Year Budget Report
Recommendation(s):

Staff recommends the Council accept the FY 2021-22 Mid-Year Budget Report Background Information:

The purpose of this report is to update the City of Monte Sereno' City Council on the status of the City's fiscal status as of March 31, 2022. This report includes highlights of major changes in revenue and expenditures from the original FY 2021-22 Adopted Budget. Staff also provided details of all accounts in the FY 2021-22 Budget.

Analysis:

Staff has completed a comprehensive review of the Fiscal Year 2021-22 Budget and is providing the City Council with a status report as of the end of March 31, 2022. Staff's process was to download from the Sage General Ledger all transactions from July 1, 2021 through March 31, 2022 and thoroughly analyze all revenue and expenditure transactions.

Overall, the City's Budget is balanced and the City is projected to achieve $5.0 Million in revenues ($194k higher) versus the FY 2021-22 Adopted Budget.

The City is projected to spend $7.3 Million in expenditures ($191k lower) versus the FY 2021- 22 Adopted Budget. Net draw against fund reserves is expected to be $2.3 Million, ($385k lower) versus the FY 2021-22 Adopted Budget.

Attached is a FY 2021-22 Mid-Year Budget vs. Adopted Budget Narrative Report that details the major revenue and expenditure changes.

Fiscal Impact:
• Revenues $5.0 Million in FY 2021-22 Mid-Year Budget, $194k higher vs. Adopted Budget.
• Expenditures $7.3 Million in FY 2021-22 Mid Year Budget, $191k lower vs Adopted Budget.

Page 34 of 244 ends

• Net draw against Fund Reserves $2.3 Million in FY 2021-22 Mid-Year Budget, $385k lower vs Adopted Budget.

Conclusion:

Overall, the FY 2021-22 Mid-Year Budget Report is balanced. Staff recommends acceptance of the presented FY 2021-22 Mid-Year Budget Report.

Public Noticing:

The City of Monte Sereno's council meeting agenda was posted on the bulletin board outside of Monte Sereno's City Hall and the agenda with this staff report can be accessed on the City of Monte Sereno's website located at www.montesereno.org.

Attachments:

FY 2021-22 Mid-Year Budget vs. Adopted Budget Revenue and Expenditure Report (Final) FY 2021-22 Mid-Year Budget vs. Adopted Budget Variance Narrative (Final)

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THE CITY OF MONTE SERENO
FY 2021-22 MID-YEAR BUDGET vs.

Adopted Budget

REVENUES

PROPERTY TAX

LICENSE & PERMITS

FRANCHISE TAX

INTERGOVERNMENTAL

OTHER REVENUE

GAS TAX

INTEREST

REAL PROPERTY TAX

SALES TAX
FINES

TOTAL REVENUE
FY 2021-22 Adopted
Budget
FY 2021-22
March YTD
ACTUAL
FY 2021-22
Apr May Jun MidYear Forecast
FY 2021-22 MidYear Budget
FY 2021-22 MidYear vs. FY 2021-
22 Full Year
Budget -
Higher/(Lower)
% OF MIDYEAR VS. Full
Year ADOPTED
BUDGET
2,274,100 1,588,258 701,083 2,289,341 15,241 100.7%
666,525 759,059 91,800 850,859 184,334 127.7%
310,700 195,867 114,700 310,567 (133) 100.0%
227,250 140,578 100,369 240,947 13,697 106.0%
385,600 170,351 316,265 486,616 101,016 126.2%
176,000 115,105 38,400 153,505 (22,495) 87.2%
24,800 6,841 2,400 9,241 (15,559) 37.3%
205,245 145,252 134,395 279,647 74,402 136.3%
581,325 421,745 3,900 425,645 (155,680) 73.2%
3,500 2,055 600 2,655 (845) 75.9%
4,855,045 3,545,111 1,503,912 5,049,023 193,978 104.0%
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THE CITY OF MONTE SERENO
FY 2021-22 MID-YEAR BUDGET vs.

Adopted Budget

REVENUES

TOTAL PROPERTY TAX
Notes to Law Enforcement Tax - $106,000
03-316 Police Special Tax Assessment
received $111,515 payment.

SALES TAX
01-296 Sales and UseTax
01-298 Coronavirus Relief Fund (State)

TOTAL SALES TAX

GAS TAX
12-328 Gas Tax
12-333 Gas Tax (SB-1)

TOTAL GAS TAX
FY 2021-22 Adopted
Budget
FY 2021-22
March YTD
ACTUAL
FY 2021-22
Apr May Jun MidYear Forecast
FY 2021-22 MidYear Budget
FY 2021-22 MidYear vs. FY 2021-
22 Full Year
Budget -
Higher/(Lower)
% OF MIDYEAR VS. Full
Year ADOPTED
BUDGET
2,039,700 1,373,449 693,387 2,066,836 27,136 101.3%
87,000 85,304 1,696 87,000 0 100.0%
5,000 2,686 900 3,586 (1,414) 71.7%
35,000 13,655 4,500 18,155 (16,845) 51.9%
106,000 111,515 0 111,515 5,515 105.2%
1,400 1,513 600 2,113 713 150.9%
0 114 0 114 114 N/A
0 4 0 4 4 N/A
0 19 0 19 19 N/A
0 0 0 0 0 N/A
2,274,100 1,588,258 701,083 2,289,341 15,241 100.7%
7,825 11,840 3,900 15,740 7,915 201.1%
573,500 409,905 0 409,905 (163,595) 71.5%
581,325 421,745 3,900 425,645 (155,680) 73.2%
176,000 61,230 20,400 81,630 (94,370) 46.4%
0 53,875 18,000 71,875 71,875 N/A
176,000 115,105 38,400 153,505 (22,495) 87.2%
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THE CITY OF MONTE SERENO
FY 2021-22 MID-YEAR BUDGET vs.

Adopted Budget

REVENUES FRANCHISE TAX
01-262 Gas
01-263 Electricity
01-264 Water
01-266 Refuse
01-267 Recycle HHW & JPA fees
01-268 Cable TV

TOTAL FRANCHISE TAX

REAL PROPERTY TAX
01-222 Real Prop Transfer Tax
01-225 SB 2 Real Estate Transactions
TOTAL REAL PROP. TAX
FY 2021-22 Adopted
Budget
FY 2021-22
March YTD
ACTUAL
FY 2021-22
Apr May Jun MidYear Forecast
FY 2021-22 MidYear Budget
FY 2021-22 MidYear vs. FY 2021-
22 Full Year
Budget -
Higher/(Lower)
% OF MIDYEAR VS. Full
Year ADOPTED
BUDGET
17,600 0 17,600 17,600 0 100.0%
38,000 0 38,000 38,000 0 100.0%
29,600 33,550 4,800 38,350 8,750 129.6%
120,100 98,244 32,700 130,944 10,844 109.0%
31,700 26,638 9,000 35,638 3,938 112.4%
73,700 37,434 12,600 50,034 (23,666) 67.9%
310,700 195,867 114,700 310,567 (133) 100.0%

95,000 145,252 24,150 169,402 74,402 178.3%
110,245 0 110,245 110,245 0 100.0%
205,245 145,252 134,395 279,647 74,402 136.3%
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THE CITY OF MONTE SERENO
FY 2021-22 MID-YEAR BUDGET vs.

Adopted Budget

REVENUES LICENSE AND PERMIT FEES
01-231 SB1186 Fees
01-232 Business License
01-234 ConstructionTax
01-235 SMIP
01-236 Construction Permits
01-237 Grading Permits
01-238 SB1473 (BSASRF)
01-240 Subdivision Fee
01-241 Site Development\Use\Variance\
01-242 Zoning Fees
01-244 Encroachments
01-245 Community Planning Fee
. TOTAL LICENSE & PERMITS
FINES
01-293 Alarm Soundings
05-322 Traffic Safety (Bails & Fines)

TOTAL FINES
FY 2021-22 Adopted
Budget
FY 2021-22
March YTD
ACTUAL
FY 2021-22
Apr May Jun MidYear Forecast
FY 2021-22 MidYear Budget
FY 2021-22 MidYear vs. FY 2021-
22 Full Year
Budget -
Higher/(Lower)
% OF MIDYEAR VS. Full
Year ADOPTED
BUDGET
1,175 680 300 980 (195) 83.4%
21,000 13,128 4,500 17,628 (3,372) 83.9%
12,200 32,995 2,775 35,770 23,570 293.2%
1,700 4,755 1,500 6,255 4,555 367.9%
500,000 554,429 46,200 600,629 100,629 120.1%
32,000 48,762 16,200 64,962 32,962 203.0%
700 2,698 900 3,598 2,898 514.0%
0 186 0 186 186 N/A
0 8,477 2,700 11,177 11,177 N/A
3,350 0 0 0 (3,350) 0.0%
53,000 36,105 12,000 48,105 (4,895) 90.8%
41,400 56,845 4,725 61,570 20,170 148.7%
666,525 759,059 91,800 850,859 184,334 127.7%
0 0 0 0 0 N/A
3,500 2,055 600 2,655 (845) 75.9%
3,500 2,055 600 2,655 (845) 75.9%
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THE CITY OF MONTE SERENO
FY 2021-22 MID-YEAR BUDGET vs.

Adopted Budget

REVENUES INVESTMENT INCOME
01-282 Interest - General (See Notes
Below)
12-332 Gas Tax Interest
. TOTAL INTEREST
.

Notes to Interest - General - $24,150
01-282
LAIF interest payment received in
arrears - 1st Qtr in October
($3,515 Actual), 2nd Qtr in
January, 3rd Qtr in April and 4th
Qtr in July.

TOTAL INTERGOVERNMENTAL
Notes to Miscellaneous (05-323) - $120,000
05-323
Measure B - $70,000 for
Winchester Blvd Class IV
Proteced Bike Lanes (received
$22,031 October 2021)
05-323
VRF - $23,500 for Winchester
Blvd Class IV Proteced Bike
Lanes
05-323 Highway 9 Safety Improvements
Gap Closure - $26,500
FY 2021-22 Adopted
Budget
FY 2021-22
March YTD
ACTUAL
FY 2021-22
Apr May Jun MidYear Forecast
FY 2021-22 MidYear Budget
FY 2021-22 MidYear vs. FY 2021-
22 Full Year
Budget -
Higher/(Lower)
% OF MIDYEAR VS. Full
Year ADOPTED
BUDGET
24,150 6,110 2,100 8,210 (15,940) 34.0%
650 730 300 1,030 380 158.5%
24,800 6,841 2,400 9,241 (15,559) 37.3%
2,500 1,096 300 1,396 (1,104) 55.9%
1,750 2,002 600 2,602 852 148.7%
3,000 4,164 1,500 5,664 2,664 188.8%
0 0 0 0 0 N/A
100,000 111,285 0 111,285 11,285 111.3%
120,000 22,031 97,969 120,000 0 100.0%
227,250 140,578 100,369 240,947 13,697 106.0%
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THE CITY OF MONTE SERENO
FY 2021-22 MID-YEAR BUDGET vs.

Adopted Budget

REVENUES
. OTHER REVENUE
01-246 Road Impact fees
01-290 BCJPIA/State fund Ins. rebate
01-291 Microfilm Fee
01-292 Miscellaneous (See Notes Below)
01-294 Reimb. Publication
01-295 Code Enforcement Collections
25-352 Storm drain dev fees
25-354 Storm Drain maintenance/Administration
General Fund Transfer for CIP
Beginning Equity Balance

TOTAL REVENUE
FY 2021-22 Adopted
Budget
FY 2021-22
March YTD
ACTUAL
FY 2021-22
Apr May Jun MidYear Forecast
FY 2021-22 MidYear Budget
FY 2021-22 MidYear vs. FY 2021-
22 Full Year
Budget -
Higher/(Lower)
% OF MIDYEAR VS. Full
Year ADOPTED
BUDGET
90,000 145,553 24,300 169,853 79,853 188.7%
0 140 0 140 140 N/A
6,000 6,968 2,400 9,368 3,368 156.1%
283,600 35 283,565 283,600 0 100.0%
0 0 0 0 0 N/A
0 0 0 0 0 N/A
6,000 17,656 6,000 23,656 17,656 394.3%
0 0 0 0 0 N/A
0 0 0 0 0 N/A
0 0 0 0 0 N/A
385,600 170,351 316,265 486,616 101,016 126.2%
4,855,045 3,545,111 1,503,912 5,049,023 193,978 104.0%
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THE CITY OF MONTE SERENO
FY 2021-22 MID-YEAR BUDGET vs.

Adopted Budget

REVENUES EXPENDITURES

PERSONNEL

LAW ENFORCEMENT

CONSTRUCTION

GENERAL GOVERNMENT

MAINTENANCE

ADMINISTRATION

CITY ATTORNEY

BUILDING MAINTENANCE

EQUIPMENT / IMPROVEMENT

CITY AUDIT

ENGINEERING

SPECIAL DISTRICTS

TOTAL EXPENDITURES

NET SURPLUS / (DEFICIT)
FY 2021-22 Adopted
Budget
FY 2021-22
March YTD
ACTUAL
FY 2021-22
Apr May Jun MidYear Forecast
FY 2021-22 MidYear Budget
FY 2021-22 MidYear vs. FY 2021-
22 Full Year
Budget -
Higher/(Lower)
% OF MIDYEAR VS. Full
Year ADOPTED
BUDGET
1,302,975 929,624 312,300 1,241,924 (61,051) 95.3%
1,067,085 682,550 395,820 1,078,370 11,285 101.1%
405,406 565 350,455 351,020 (54,386) 86.6%
495,588 388,694 96,166 484,860 (10,728) 97.8%
2,723,100 1,386,135 1,337,072 2,723,207 107 100.0%
465,880 314,480 105,000 419,480 (46,400) 90.0%
171,200 122,393 73,220 195,613 24,413 114.3%
645,000 26,895 606,905 633,800 (11,200) 98.3%
132,800 21,442 78,700 100,142 (32,658) 75.4%
58,600 14,127 32,400 46,527 (12,073) 79.4%
50,000 0 50,000 50,000 0 100.0%
0 1,170 300 1,470 1,470 N/A
7,517,634 3,888,076 3,438,338 7,326,414 (191,220) 97.5% (2,662,589) (342,965) (1,934,426) (2,277,391) 385,198 85.5% Page: 7 of 15 File: FY 2021-22 Mid-Year Budget vs. Adopted Budget REVENUE AND EXPENDITURES REPORT (Final 04-12-2022)

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THE CITY OF MONTE SERENO
FY 2021-22 MID-YEAR BUDGET vs.

Adopted Budget

REVENUES

EXPENDITURES

TOTAL GENERAL GOVERNMENT
FY 2021-22 Adopted
Budget
FY 2021-22
March YTD
ACTUAL
FY 2021-22
Apr May Jun MidYear Forecast
FY 2021-22 MidYear Budget
FY 2021-22 MidYear vs. FY 2021-
22 Full Year
Budget -
Higher/(Lower)
% OF MIDYEAR VS. Full
Year ADOPTED
BUDGET
15,000 1,990 600 2,590 (12,410) 17.3%
3,000 0 0 0 (3,000) 0.0%
11,000 3,200 1,200 4,400 (6,600) 40.0%
12,000 1,672 600 2,272 (9,728) 18.9%
0 0 0 0 N/A
2,678 2,875 900 3,775 1,097 141.0%
22,035 6,014 2,100 8,114 (13,921) 36.8%
11,460 0 11,460 11,460 0 100.0%
500 0 0 0 (500) 0.0%
200 0 0 0 (200) 0.0%
232,000 183,332 61,200 244,532 12,532 105.4%
87,215 86,391 0 86,391 (824) 99.1%
30,000 39,273 13,200 52,473 22,473 174.9%
20,000 25,000 0 25,000 5,000 125.0%
12,000 0 0 0 (12,000) 0.0%
0 0 0 0 0 N/A
2,500 8,003 2,700 10,703 8,203 428.1%
0 0 0 0 0 N/A
1,000 150 0 150 (850) 15.0%
0 0 0 0 0 N/A
33,000 30,794 2,206 33,000 0 100.0%
495,588 388,694 96,166 484,860 (10,728) 97.8%
Page: 8 of 15 File: FY 2021-22 Mid-Year Budget vs. Adopted Budget REVENUE AND EXPENDITURES REPORT (Final 04-12-2022)

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THE CITY OF MONTE SERENO
FY 2021-22 MID-YEAR BUDGET vs.

Adopted Budget

REVENUES

TOTAL PERSONNEL
FY 2021-22 Adopted
Budget
FY 2021-22
March YTD
ACTUAL
FY 2021-22
Apr May Jun MidYear Forecast
FY 2021-22 MidYear Budget
FY 2021-22 MidYear vs. FY 2021-
22 Full Year
Budget -
Higher/(Lower)
% OF MIDYEAR VS. Full
Year ADOPTED
BUDGET
893,194 688,524 232,500 921,024 27,830 103.1%
0 0 0 0 0 N/A
0 0 0 0 0 N/A
136,947 60,333 20,100 80,433 (56,514) 58.7%
32,775 17,974 6,000 23,974 (8,801) 73.1%
101,807 69,118 23,100 92,218 (9,589) 90.6%
7,267 5,814 1,800 7,614 347 104.8%
11,165 3,950 1,200 5,150 (6,015) 46.1%
53,592 39,973 13,200 53,173 (419) 99.2%
13,398 10,308 3,300 13,608 210 101.6%
294 336 0 336 42 114.3%
24,693 18,456 6,300 24,756 63 100.3%
27,843 14,838 4,800 19,638 (8,205) 70.5%
1,302,975 929,624 312,300 1,241,924 (61,051) 95.3%
Page: 9 of 15 File: FY 2021-22 Mid-Year Budget vs. Adopted Budget REVENUE AND EXPENDITURES REPORT (Final 04-12-2022)

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THE CITY OF MONTE SERENO
FY 2021-22 MID-YEAR BUDGET vs.

Adopted Budget

REVENUES ADMINISTRATION
01-705 Office Utilities
01-710 Office Supplies
01-711 Postage
01-715 Office Equip Maintenance
01-718 Bank Fee Finance Charge
01-720 Communications
01-725 Reproduction/Printing
01-740 Mtgs/Trvl/Mileage reimb.
01-745 Publications/Memberships
01-755 Professional Services
01-765 Contract Services
01-770 Training
01-775 Miscellaneous
01-885 Horticultural/Arborist Services
01-999 City Mangers Revolving Account

TOTAL ADMINISTRATION
FY 2021-22 Adopted
Budget
FY 2021-22
March YTD
ACTUAL
FY 2021-22
Apr May Jun MidYear Forecast
FY 2021-22 MidYear Budget
FY 2021-22 MidYear vs. FY 2021-
22 Full Year
Budget -
Higher/(Lower)
% OF MIDYEAR VS. Full
Year ADOPTED
BUDGET
11,500 6,078 2,100 8,178 (3,322) 71.1%
15,000 13,722 4,500 18,222 3,222 121.5%
5,000 1,399 600 1,999 (3,001) 40.0%
14,280 25,510 8,400 33,910 19,630 237.5%
183 0 183 183 N/A
32,500 22,960 7,800 30,760 (1,740) 94.6%
8,500 3,579 1,200 4,779 (3,721) 56.2%
5,600 9,651 3,300 12,951 7,351 231.3%
22,000 16,451 5,400 21,851 (149) 99.3%
0 0 0 0 0 N/A
335,000 208,795 69,600 278,395 (56,605) 83.1%
7,000 6,153 2,100 8,253 1,253 117.9%
0 0 0 0 N/A
7,000 0 0 0 (7,000) 0.0%
2,500 0 0 0 (2,500) 0.0%
465,880 314,480 105,000 419,480 (46,400) 90.0%
Page: 10 of 15 File: FY 2021-22 Mid-Year Budget vs. Adopted Budget REVENUE AND EXPENDITURES REPORT (Final 04-12-2022)

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THE CITY OF MONTE SERENO
FY 2021-22 MID-YEAR BUDGET vs.

Adopted Budget

REVENUES

EQUIPMENT/IMPROVEMENTS
01-805 Office
01-810 Field
01-811 Computer, Hard/Software
01-815 Building Improvements

TOTAL EQUIPMENT / IMPROVEMENTS

LAW ENFORCEMENT
03-545 Police Services
01-546 Booking & CAL-ID
03-548 Disburse COPS grant funds

TOTAL LAW ENFORCEMENT

BUILDING MAINTENANCE
01-860 Building & Ground Maint
01-920 Building & Ground Const

TOTAL BUILDING MAINTENANCE

TOTAL MAINTENANCE
FY 2021-22 Adopted
Budget
FY 2021-22
March YTD
ACTUAL
FY 2021-22
Apr May Jun MidYear Forecast
FY 2021-22 MidYear Budget
FY 2021-22 MidYear vs. FY 2021-
22 Full Year
Budget -
Higher/(Lower)
% OF MIDYEAR VS. Full
Year ADOPTED
BUDGET
15,000 0 15,000 15,000 0 100.0%
0 0 0 0 0 N/A
117,800 21,442 63,700 85,142 (32,658) 72.3%
0 0 0 0 0 N/A
132,800 21,442 78,700 100,142 (32,658) 75.4%
967,085 571,265 395,820 967,085 0 100.0%
0 0 0 0 0 N/A
100,000 111,285 0 111,285 11,285 111.3%
1,067,085 682,550 395,820 1,078,370 11,285 101.1%
45,000 25,400 8,400 33,800 (11,200) 75.1%
600,000 1,495 598,505 600,000 0 100.0%
645,000 26,895 606,905 633,800 (11,200) 98.3%
2,500 11,605 0 11,605 9,105 464.2%
0 0 0 0 0 N/A
0 0 0 0 N/A
2,685,000 1,354,193 1,330,807 2,685,000 (0) 100.0%
10,000 5,170 4,830 10,000 0 100.0%
4,200 2,765 1,435 4,200 0 100.0%
11,400 1,833 0 1,833 (9,567) 16.1%
10,000 10,570 0 10,570 570 105.7%
2,723,100 1,386,135 1,337,072 2,723,207 107 100.0%
Page: 11 of 15 File: FY 2021-22 Mid-Year Budget vs. Adopted Budget REVENUE AND EXPENDITURES REPORT (Final 04-12-2022)

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THE CITY OF MONTE SERENO
FY 2021-22 MID-YEAR BUDGET vs.

Adopted Budget

REVENUES

TOTAL CONSTRUCTION

ENGINEERING
Mapping and Records System
12-875 Congestion Management
25-805 WV Clean Water Administration

TOTAL ENGINEERING

SPECIAL DISTRICTS
40-935 Loma Serena Lighting
50-945 Rose/Andrews Lighting

TOTAL SPECIAL DISTRICTS
FY 2021-22 Adopted
Budget
FY 2021-22
March YTD
ACTUAL
FY 2021-22
Apr May Jun MidYear Forecast
FY 2021-22 MidYear Budget
FY 2021-22 MidYear vs. FY 2021-
22 Full Year
Budget -
Higher/(Lower)
% OF MIDYEAR VS. Full
Year ADOPTED
BUDGET
60,000 0 0 0 (60,000) 0.0%
0 0 0 0 0 N/A
0 0 0 0 0 N/A
340,000 0 345,614 345,614 5,614 101.7%
0 0 0 0 0 N/A
5,406 565 4,841 5,406 (0) 100.0%
405,406 565 350,455 351,020 (54,386) 86.6%
0 0 0 0 N/A
18,000 0 18,000 18,000 0 100.0%
32,000 0 32,000 32,000 0 100.0%
50,000 0 50,000 50,000 0 100.0%
782 300 1,082 1,082 N/A
389 0 389 389 N/A
0 1,170 300 1,470 1,470 N/A
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THE CITY OF MONTE SERENO
FY 2021-22 MID-YEAR BUDGET vs.

Adopted Budget

REVENUES CITY ATTORNEY
01-425 Retainer
01-427 Litigation
01-430 City Attorney litigation
01-435 Mtg, Trv, Prot.

TOTAL CITY ATTORNEY

CITY AUDIT
01-470 Audit
12-472 Gas Tax Audit
01-480 Misc/Bank charges

TOTAL CITY AUDIT

TOTAL EXPENDITURES

NET SURPLUS / (DEFICIT)
FY 2021-22 Adopted
Budget
FY 2021-22
March YTD
ACTUAL
FY 2021-22
Apr May Jun MidYear Forecast
FY 2021-22 MidYear Budget
FY 2021-22 MidYear vs. FY 2021-
22 Full Year
Budget -
Higher/(Lower)
% OF MIDYEAR VS. Full
Year ADOPTED
BUDGET
111,200 58,980 52,220 111,200 0 100.0%
60,000 63,413 21,000 84,413 24,413 140.7%
0 0 0 0 0 N/A
0 0 0 0 0 N/A
171,200 122,393 73,220 195,613 24,413 114.3%
50,100 8,600 30,900 39,500 (10,600) 78.8%
3,500 2,576 0 2,576 (924) 73.6%
5,000 2,952 1,500 4,452 (548) 89.0%
58,600 14,127 32,400 46,527 (12,073) 79.4%
7,517,634 3,888,076 3,438,338 7,326,414 (191,220) 97.5% (2,662,589) (342,965) (1,934,426) (2,277,391) 385,198 85.5% Page: 13 of 15 File: FY 2021-22 Mid-Year Budget vs. Adopted Budget REVENUE AND EXPENDITURES REPORT (Final 04-12-2022)

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THE CITY OF MONTE SERENO
FY 2021-22 MID-YEAR BUDGET vs.

Adopted Budget

REVENUES

TOTAL FUND RESERVES

WARRANT CHECKING ACCOUNT
01-010 TOTAL WARRANT CHECKING

SAVINGS ACCOUNT
01-015 General
03-015 Law Enforecment
05-015 Traffic Safety
12-015 Gas Tax (2107)
25-015 Storm Drain
30-015 Surety Trust
40-015 Loma Serena Ltg.
50-015 Rose/Andrews Ltg

TOTAL SAVINGS

TOTAL DEMAND ACCOUNTS
FY 2021-22 Adopted
Budget
FY 2021-22
March YTD
ACTUAL
FY 2021-22
Apr May Jun MidYear Forecast
FY 2021-22 MidYear Budget
FY 2021-22 MidYear vs. FY 2021-
22 Full Year
Budget -
Higher/(Lower)
% OF MIDYEAR VS. Full
Year ADOPTED
BUDGET
13,695 59,883 0 59,883 46,188 437.3%
1,796,361 (172,412) 180,953 8,542 (1,787,819) 0.5%
(811,083) 111,516 (111,516) 0 811,083 0.0%
(2,570,127) 234 15,883 16,117 2,586,244 -0.6%
214,966 210,638 20,700 231,338 16,372 107.6%
30,369 497,149 (440,746) 56,403 26,034 185.7%
73 73 0 73 (0) 99.7%
2,888 3,444 300 3,744 856 129.6%
39 39 0 39 (0) 99.8%
(1,336,514) 650,681 (334,426) 316,255 1,652,769 -23.7%
(1,322,819) 710,563 (334,426) 376,138 1,698,957 -28.4%
Page: 14 of 15 File: FY 2021-22 Mid-Year Budget vs. Adopted Budget REVENUE AND EXPENDITURES REPORT (Final 04-12-2022)

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THE CITY OF MONTE SERENO
FY 2021-22 MID-YEAR BUDGET vs.

Adopted Budget

REVENUES LAIF GENERAL FUND ACCOUNT
Undesignated Reserve
Economic Fluctuation Reserve
Capital Improvement Program Reserve
Property Improvement Reserve
Other Post Emplpoyment Benefits (OPEB)
01-025 Subtotal Unrestricted Reserve
05-025 Trafffic Safety
12-025 2107 GAS TAX
25-025 Storm Drain
30-025 Surety Trust
40-024 Loma Serena Lighting District
Subtotal Restricted Reserve

TOTAL GENERAL FUND RESERVE

TOTAL ALL FUNDS
FY 2021-22 Adopted
Budget
FY 2021-22
March YTD
ACTUAL
FY 2021-22
Apr May Jun MidYear Forecast
FY 2021-22 MidYear Budget
FY 2021-22 MidYear vs. FY 2021-
22 Full Year
Budget -
Higher/(Lower)
% OF MIDYEAR VS. Full
Year ADOPTED
BUDGET
533,850 643,972 (600,000) 43,972 (489,878) 8.2%
3,500,000 3,500,000 (300,000) 3,200,000 (300,000) 91.4% 500,000 500,000 (500,000) 0 (500,000) 0.0%
200,000 200,000 (200,000) 0 (200,000) 0.0%
0 0 0 0 0 N/A
4,733,850 4,843,972 (1,600,000) 3,243,972 (1,489,878) 68.5% 100,000 0 0 0 (100,000) 0.0%
129,793 130,755 0 130,755 962 100.7%
21,000 21,000 0 21,000 0 100.0%
27,043 27,043 0 27,043 0 100.0%
6,751 6,751 0 6,751 0 100.0%
284,587 185,549 0 185,549 (99,038) 65.2%
5,018,437 5,029,521 (1,600,000) 3,429,521 (1,588,916) 68.3% 3,695,618 5,740,084 (1,934,426) 3,805,659 110,041 103.0% Page: 15 of 15 File: FY 2021-22 Mid-Year Budget vs. Adopted Budget REVENUE AND EXPENDITURES REPORT (Final 04-12-2022)

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1 | P a g e
FY 2021-22 Mid-Year Budget vs. Adopted Budget Narrative FY 2021-22 Mid-Year Budget
Vs. Adopted Budget Narrative
Revenues

SIGNIFICANT FULL YEAR VARIANCES TO ADOPTED BUDGET NARRATIVE  Revenues $5.0 Million (104.0% of FY 2021-22 Adopted Budget)  Property Tax $2.3 Million, 100.7% of FY 2021-22 Adopted Budget:
- Secured property taxes +$27k higher per Assessors Report dated 02-22-2022 - SB 813 Supplemental tax -$17k lower based on 9 month average run rate. - Law Enforcement Police Special Tax Assessment received higher $5k.  Licenses and Permits $850k, 127.7% of FY 2021-22 Adopted Budget:
- Permit activity robust, estimated $164k higher based on 9 month average run rate. - Community Planning fee higher by $20k based on 9-month average run rate.  Franchise Fees $311k, 100% of FY 2021-22 Adopted Budget:
- No Change vs. Adopted Budget
 Intergovernmental $241k, 106.0% of FY 2021-22 Adopted Budget:
- COPS Grant Revenue $11k higher vs. Adopted Budget.
 Other Revenues $511k, 132.5% of FY 2021-22 Adopted Budget:
- Road Impact fees higher $80k based on 9-month average run rate. - Storm drain development fees $18k higher based on 9-month average run rate.  Gas Tax $154k, 87.2% of FY 2021-22 Adopted Budget:
- Gas tax $22k lower based on 9-month average run rate.  Real Property Tax $280k, 136.3% of FY 2021-22 Adopted Budget:
- Real property transfer tax $74k higher based on 9-month average run rate.  Sales and Use Tax $426k, 73.2% of FY 2021-22 Adopted Budget:
- Received $410k Corona Virus Relief Fund, $164k lower than budgeted.  Investment Income/Interest $9k, 37.3% of FY 2021-22 Adopted Budget:
- Significantly lower interest rates, lower by $16k.

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2 | P a g e
FY 2021-22 Mid-Year Budget vs. Adopted Budget Narrative FY 2021-22 Mid-Year Budget
Vs. Adopted Budget Narrative
Expenditures

SIGNIFICANT FULL YEAR VARIANCES TO ADOPTED BUDGET NARRATIVE  Expenditures $7.3 Million, 97.5% of FY 2021-22 Adopted Budget  Personnel $1.2 Million, 95.3% of FY 2021-22 Adopted Budget - Salary $28k higher vs. budget while employer retirement funding lower by $65k. - Health insurance premiums lower by $10k,Workers’ Compensation lower by $6k, and benefit allowances lower by $8k.
 Law Enforcement $1.1Million, 101.1% of FY 2021-22 Adopted Budget - Disbursement COPS grant funds pass-thru $11k higher vs. Adopted Budget.  Construction $351k, 86.6% of FY 2021-22 Adopted Budget:
- Net savings of $54k on Winchester Class IV Protected Bike Lane project (CIP-2022-F) vs. Adopted Budget.  General Government $485k, 97.8% of FY 2021-22 Adopted Budget:
-
 Maintenance $2.7 Million, 100.0% of FY 2021-22 Adopted Budget:
- No Change vs. Adopted Budget
 Administration $419k, 90.0% of FY 2021-22 Adopted Budget:
- Office furniture and supplies $20k higher, offset by $57k lower Contract Services Building Official Consultant and $7k from not using a Horticulture/Arborist services.  City Attorney $196k, 114.3% of FY 2021-22 Adopted Budget:
- City Attorney on budget but higher litigation related legal expenses +$24k based on 9-month average rate.  Building Maintenance $634k, 98.3% of FY 2021-22 Adopted Budget:
- Includes $600k Annex Building project (CIP-2022-B).
 Equipment / Improvements $100k, 75.4% of FY 2021-22 Adopted Budget:
- Includes $60k computer / systems upgrade project (GEN-2022-A), offset by lower software related license fees.
 City Audit $47k, 79.4% of FY 2021-22 Adopted Budget:
- Actuarial Consultant Bartell $11k lower vs. Adopted Budget.

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3 | P a g e
FY 2021-22 Mid-Year Budget vs. Adopted Budget Narrative FY 2021-22 Mid-Year Budget
Vs. Adopted Budget Narrative
Fund Reserves

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4 | P a g e
FY 2021-22 Mid-Year Budget vs. Adopted Budget Narrative

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STAFF REPORT
Meeting: City Council - Apr 19 2022
Agenda Heading: CONSENT CALENDAR
Staff Contact: Michelle Estabillo, City Clerk
Department: City Clerk
Title: Consider and Adopt Resolution Extending Teleconferencing of City Council Meetings Pursuant to Government Code Section 54953 (AB 361) Recommendation(s):

Staff recommends that the City Council consider and adopt a resolution extending teleconferencing of City Council meeting pursuant to AB 361.

Background Information:

AB 361 was signed by the Governor of the State of California and went into effect immediately upon signature by the governor. It amends the Brown Act to allow local legislative bodies to continue having purely virtual meetings using teleconferencing and virtual meeting technology as long as there is a gubernatorial “proclaimed state of emergency,” and either (1) state or local officials imposing or recommending measures that promote social distancing or (2) the legislative body finding that meeting in person would present an imminent safety risk to attendees.

The key differences between existing Executive Order N-08-21, which expires September 30, 2021, and AB 361 is that AB 361 imposes particular requirements with respect to public comment, however, the City of Monte Sereno’s current practices with respect to live public comment via Zoom already satisfy all of the new requirements in AB 361. Additionally, public agencies must either make findings by majority vote that the state of emergency still exists and continues to directly impact the ability of the members to meet safely in person, or that health officials continue to impose or recommend measures to promote social distancing.

Determinations by the local agency that the emergency impacts the ability to meet safely inperson must be re-visited every 30 days.

At its September 21, 2021 meeting, the City Council adopted Resolution No. 21-3826 authorizing virtual City Council meetings during declared state of emergency pursuant to Government Code. The City Council determined that the pandemic of COVID-19 creates an imminent safety risk to councilmembers and other potential attendees of City Council meetings. At present, risk of COVID-19 due the delta and omicron variant remains high; the CDC reports that for the period between the period between April 7, 2022 and April 14, 2022 that Santa Clara County had “low” community transmission with 35.64 case rate per 100,000 population, 3.1 new COVID-19 admissions per 100,000 population, and 2.4% staffed inpatient

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beds in use by patients with confirmed COVID-19. Due to the ongoing state of emergency, staff believes that the City Council can re-adopt its previous findings, and authorize continued virtual meetings for the next 30 days.

Fiscal Impact:

There are no unbudgeted fiscal impacts with this agenda item.

Public Noticing:

The City Council’s agenda was posted at City Hall and the agenda, and this report appear on the City’s website.

Attachments:

Resolution

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RESOLUTION NO. 22-XXXX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MONTE SERENO

AUTHORIZING VIRTUAL CITY COUNCIL MEETINGS DURING DECLARED STATE OF EMERGENCY PURSUANT TO GOVERNMENT CODE SECTION 54953 (AB 361) WHEREAS, AB 361 was recently signed by the Governor of the State of California, enacting certain changes to the Brown Act as set forth in Government Code section 54953; and
WHEREAS AB 361 authorizes local legislative bodies to continue having purely virtual meetings using teleconferencing and virtual meeting technology as long as there is a gubernatorial “proclaimed state of emergency,” and either (1) state or local officials imposing or recommending measures that promote social distancing or (2) the legislative body finding that meeting in person would present an imminent safety risk to attendees; and
WHEREAS, the state of emergency proclaimed by the Governor on March 4, 2020 related to the pandemic of coronavirus commonly as COVID-19 has not been rescinded and remains in effect; and
WHEREAS, new variants of COVID-19 have developed, and risks of illness or death due to such variants remains significant to the general public; and WHEREAS, the CDC reports that for the period between April 7, 2022 and April 14, 2022 that Santa Clara County had “low” community transmission with 35.64 case rate per 100,000 population, 3.1 new COVID-19 admissions per 100,000 population, and 2.4% staffed inpatient beds in use by patients with confirmed COVID-19; WHEREAS, the County of Santa Clara Health Officer ordered on August 2, 2021, that face coverings be used in all indoor settings, including all governmental meetings, and recommended that governmental entities move operations and activities outdoors where possible as a result of the continued transmission of the Delta and Omicron Variant of COVID-19;
WHEREAS, the City Council, acting as a legislative body pursuant to Government Code section 54952(a) and for the benefit of the commissions, committees and other bodies that were created by the City Council pursuant to Government Code section

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54952(b) (collectively referred to as “Legislative Bodies”), finds that the current conditions meet the circumstances set forth in Government Code section 54953(e)(3) to allow Legislative Bodies to continue to use teleconferencing to hold open and public meetings if the Legislative Bodies comply with the requirements set forth in Government Code section 54953(e)(2) to ensure the public can safely participate in and observe local government meetings.

NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Monte Sereno that:

1. The City Council determines that the pandemic of COVID-19 creates an imminent safety risk to councilmembers and other potential attendees of City Council meetings.

2. In accordance with AB 361, the City Council shall re-consider the passage of this resolution not less than every 30 days to determine whether state of emergency continues to directly impact the ability of the members to meet safely in person, or whether state or local officials continue to impose or recommend measures to promote social distancing, until this resolution is rescinded.

3. The Legislative Bodies, and City staff, are hereby authorized to take all actions necessary to carry out the intent and purpose of this Resolution, including conducting open and public meetings in accordance with Government Code section 54953(e)(2) and other applicable provisions of the Brown Act.

REGULARLY passed and adopted this 19th day of April, 2022.

AYES:

NOES:

ABSENT:

ABSTAIN:

APPROVED:

Javed I. Ellahie, Mayor
ATTEST:

Michelle Estabillo, City Clerk

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STAFF REPORT
Meeting: City Council - Apr 19 2022
Agenda Heading: NEW BUSINESS
Staff Contact: Diana Perkins, City Planner
Department: City Planner
Title: Consider and Provide Direction to Staff on SB-9 Ordinance Modifications Recommendation(s):

Staff recommends that the City Council direct staff to prepare a draft ordinance to revise the Municipal Code standards for SB9 Residential Development projects as follows:
• Review the maximum building size allowed;
• Review the covered porch square footage limitations; and • Review the impervious coverage requirements.

Background Information:

Senate Bill (SB) 9 was signed into law by Governor Newsom on September 16, 2021 and was effective on January 1, 2022. The most significant component of this bill is that it requires the City allow for the following for single-family zoned lots meeting specific eligibility requirements:
(1) ministerial approval of up to two housing units (Residential Development), and (2) ministerial approval of a one-time, two-lot subdivision (Urban Lot Split).

Although the new law supersedes varying local regulations regarding subdivision and development standards, SB-9 preserves some authority for local agencies to enact regulations for these projects through the adoption of new objective standards, provided that they do not prohibit the construction of at least two dwelling units of at least 800 square feet.

On January 4, 2022 the City Council adopted an ordinance that incorporated the state SB-9 regulations with additional local objective standards for these projects. The ordinance is included as Attachment 1 to this report. Attachments 2 and 3 include the City’s informational brochures for the SB-9 Urban Lot Split and Residential Development, which summarize the main requirements of the current ordinance.

Analysis:

Staff has received numerous inquiries over the past several months from customers regarding potential SB-9 projects; however, no applications have been submitted. The feedback received has consistently stated that the 800 square foot building size limit makes an SB-9 project impractical.

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On March 22, 2022, the City Council received a letter from Berliner Cohen LLP (Attachment 4) on behalf of several Monte Sereno property owners regarding the city’s SB-9 ordinance. The letter raises questions regarding several aspects of the city’s SB-9 ordinance and urges the City Council to revisit certain aspects of the current ordinance.

Staff met with the property owners who are represented by Berliner Cohen LLP and their designer to hear their concerns with the current standards and suggestions for revisions. The main issues raised by these property owners were as follows:
• The 800 square foot limit for new dwelling units
• The 150 square foot limit for covered porches/patios
• Requirement that Impervious Coverage to limited to the underlying zoning district rather than the effective zoning district
• The inability to use the standard discretionary permit process (i.e. Site Development Permit heard by the Site and Architectural Commission) for lots created with an Urban Lot Split For reference, the property owners provided examples of the potential Urban Lot Splits for their properties (Attachment 7). These are examples of how existing lots may be split under the current SB-9 Urban Lot Split requirements. The proposed structure shown on these examples would not be allowed under the city’s current SB-9 Residential Development requirements as new buildings are limited to 800 square feet in size. However, the property owners provided these as examples of what a new house may be if the SB-9 Residential Development standards were revised based on their request.

Comparison with Other Local Jurisdictions
As there was a relatively short timeframe between when the Governor signed the SB-9 legislation on September 16, 2021 and when the new laws were effective on January 1, 2022, cities throughout the state were developing their ordinances concurrently. While there was much discussion between staff in local jurisdictions, the urgency to have an ordinance in place by January 1, 2022 did not allow for full a full comparative analysis of what other jurisdictions may have been pursuing. Additionally, some local jurisdictions have revised their SB-9 ordinance since the initial adoption.

Attachment 5 includes a comparison between the Monte Sereno requirements and other local jurisdictions for several of the major requirements for SB-9 projects.

Housing Element Regional Housing Needs Allocation (RHNA) As part of the Housing Element update that is currently in process, the city is required to plan for an additional 193 housing units over the planning period from 2023-2031. Staff has been working extensively with EMC Planning Group, the city’s consultant, to provide options to the community and the City Council for meeting this requirement. While preliminary, it appears that city can expect to have adequate sites in its housing inventory for 88 new Accessory Dwelling Units and up another 86 new housing units (pending approval of potential re-zoning by the Council for nine existing lots to R-1-8).

This totals 174 units, which is 19 short of the 193 requirement and does not include any additional buffer (recommended at 20% - 30% of the RHNA allocation). Typically, it is recommend that the City’s housing element and inventory include a buffer of adequate sites in excess of what is required by the RHNA, to avoid triggering requirements under California’s No Net Loss law (Government Code Section 65863) to zone for additional adequate sites if a development of a parcel is approved at a lower density

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than anticipated in the housing element. Additionally, including a buffer is more likely to result in the actual construction of the number of units called for by the RHNA.

Revisiting the SB-9 ordinance to provide standards that would encourage the development of additional housing units is a path to meeting the RHNA requirements without specifically rezoning to allow for more multi-family housing.

SB-9 Fact Sheet
In March, the California Department of Housing and Community Development (HCD) published an SB9 Fact Sheet (Attachment 6). This Fact Sheet was published by HCD for informational purposes and is not intended to provide interpretation of the state law. It provides information on the key provision of the state SB-9 law and on the relationship with other state housing laws.

Alternatives:

1. Direct staff to prepare a draft ordinance to revise the Municipal Code standards for SB9 Residential Development projects as follows:
• Review the maximum building size allowed;
• Review the covered porch square footage limitations; and • Review the impervious coverage requirements.

Such draft ordinance would be presented to the Site and Architectural Commission for their review and recommendation to the City Council before being presented to the City Council for final action.

2. Direct staff to prepare a draft ordinance to revise the Municipal Code to modify the SB9 Residential Development standards as deemed necessary by Council. Such draft ordinance would be presented to the Site and Architectural Commission for their review and recommendation to the City Council before being presented to the City Council for final action.

3. Take no action.

Public Noticing:

The City of Monte Sereno's City Council meeting agenda was posted on the bulletin board outside of Monte Sereno City Hall and the agenda with this staff report can be accessed on The City of Monte Sereno's website located at www.montesereno.org. Additionally, notification of this meeting was sent through email to a list of interested community members.

Attachments:

1. Current SB-9 Ordinance

2. SB-9 Urban Lot Split Brochure with Current Requirements

3. SB-9 Residential Development with Current Requirements

4. Letter Received from Berliner Cohen LLP dated March 22, 2022

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5. Comparison of SB-9 Regulations

6. SB 9 Fact Sheet HCD

7. Sample Urban Lot Split Projects

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Attachment 2
SB-9 Urban Lot Split Brochure with
Current Requirements

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CITY OF MONTE SERENO
18041 SARATOGA-LOS GATOS ROAD, MONTE SERENO, CA 95030
(408) 354-7635 • FAX (408) 395-7653 • WWW.CITYOFMONTESERENO.ORG P:\Front Counter\Urban Lot Split SB9 Information.docx Page 1 of 3 Revised 12/2021
URBAN LOTS SPLITS (SB-9)
IN ACCORDANCE WITH GOVERNMENT CODE SECTION 66411.7
Senate Bill (SB) 9 was signed into law by Governor Newsom on September 16, 2021 and was effective on January 1, 2022. The most significant component of this bill is that it requires (1) ministerial approval of up to two housing units per lot (Residential Development) and (2) ministerial approval of a one-time, two-lot subdivision of any single-family zoned lot meeting specific requirements (Urban Lot Split). This handout summarizes the requirements for Urban Lots Splits based on the Monte Sereno Municipal Code section 13.06.

This brochure is intended to provide general information, contact the Planning Division or Engineering Division for any questions or additional information.

Eligible Parcels
To be eligible for an Urban Lot Split, the existing parcel shall meet all the following requirements:

1. The parcel to be subdivided is located within a single-family residential zoning district.

2. The parcel is not located within a historic district.

3. The parcel has not been established through prior Urban Lot Split.

4. Neither the owner of the parcel being subdivided nor any person acting in concert with the owner has previously subdivided an adjacent parcel using an Urban Lot Split provisions.

5. The existing dwelling unit(s) has not been occupied by a tenant in the last three years.

Use and Development Requirements
Following is a summary of use and development standards specific to parcels created using an Urban Lots Splits:

1. New dwelling units constructed shall be no more than 800 square feet each.

2. A maximum of two dwellings are allowed on a lot, not Accessory Dwelling Unit or Junior Accessory Dwelling is allowed.

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City Of Monte Sereno Urban Lot Split
P:\Front Counter\Urban Lot Split SB9 Information.docx Page 2 of 3 Revised 12/2021

3. New dwelling units shall comply with the requirements of the SB9 Residential Development standards. See handout titled Residential Developments (SB-9) for more information.

The maximum impervious coverage shall be that which was applicable to the original parcel prior to the approval of the Urban Lot Split as set forth in Chapter 10.05.

4. No rental of any unit(s) shall be allowed for less than 30 days.

Subdivision Requirements
Following is a summary of subdivision standards:

1. The Urban Lot Split will create no more than two new parcels and each of the newly created parcel shall meet the following requirements:
• Has at least 1,200 square feet in size,
• Has at least 40 percent of the lot area of the original parcel, • Has access to or adjoins the public right-of-way, sufficient to allow development on the parcel to comply with any property access requirements of the Santa Clara County Fire Marshal. • New parcel lines that abut a street shall maintain right angles to streets, or radial to the centerline of curved streets, or be parallel to existing parcel lines. • A minimum of one off-street parking space shall be provided on each parcel. • No setback shall be required for an existing structure. New structures shall have a minimum four-foot setback from the side and rear property lines.

3. The owner of the parcel to be subdivided signs an affidavit under penalty of perjury declaring all the following to be true:
• The housing units proposed to be demolished or altered have not been occupied by a tenant at any time within three years.
• The owner of the parcel intends to occupy one of the housing units as their principal residence for a minimum of three years.
• The owner has not previously subdivided an adjacent parcel using an Urban Lot Split nor has acted in concert with any person that has.

Filing, Processing, and Action
Following is a summary of application processing and review requirements:

1. Parcel Maps shall be prepared, filed, and recorded in accordance with the Map Act. Applications shall include a current title report.

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City Of Monte Sereno Urban Lot Split
P:\Front Counter\Urban Lot Split SB9 Information.docx Page 3 of 3 Revised 12/2021

2. Right-of-way dedication, construction of off-site improvements, or correct non-conforming conditions are not required unless necessary for a parcel to have access to the right-of-way.

3. The City Engineer shall deny the tentative map if any of the following is found:
• The map fails to meet or perform one of more objective requirements imposed by the Subdivision Map Act or by this title. Any such requirement or condition shall be specified. • The building official makes a written finding, based upon a preponderance of the evidence, that the proposed subdivision would have a specific, adverse impact, as defined and determined in paragraph (2) of subdivision (d) of Section 65589.5, upon public health and safety or the physical environment and for which there is no feasible method to satisfactorily mitigate or avoid the specific, adverse impact.

5. The City Engineer shall send notices to property owners within 600 feet of a proposed Urban Lot Split upon submission of an application, and again upon completion of such application.

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Attachment 3
SB-9 Residential Development with
Current Requirements

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CITY OF MONTE SERENO
18041 SARATOGA-LOS GATOS ROAD, MONTE SERENO, CA 95030
(408) 354-7635 • FAX (408) 395-7653 • WWW.CITYOFMONTESERENO.ORG P:\Front Counter\Residential Development SB9 Information.docx Page 1 of 3 Revised 12/2021
RESIDENTIAL DEVELOPMENTS (SB-9)
IN ACCORDANCE WITH GOVERNMENT CODE SECTION 65852.21
Senate Bill (SB) 9 was signed into law by Governor Newsom on September 16, 2021 and was effective on January 1, 2022. The most significant component of this bill is that it requires (1) ministerial approval of up to two housing units per lot (Residential Development) and (2) ministerial approval of a one-time, two-lot subdivision of any single-family zoned lot meeting specific requirements (Urban Lot Split). This handout summarizes the requirements for Residential Developments based on the Monte Sereno Municipal Code section 10.05.080.

This handout is intended to provide general information, contact the Planning Division for any questions or additional information.

Requirements
A Residential Development is a development that proposes no more than two new dwelling units in total on a parcel as follows:
• If a parcel includes an existing single-family dwelling, one additional unit may be developed pursuant to this section.
• If a parcel does not include an existing single-family dwelling, or if an existing single-family dwelling is proposed to be demolished in connection with the creation of a two-unit residential development, two units may be developed pursuant to this section.

Such an application, meeting all requirements of Monte Sereno Municipal Code section 10.05.080 shall be reviewed city staff without discretionary review or a public hearing.

Eligible Parcels
To be eligible for a Residential Development, the existing parcel shall meet all the following requirements:

1. The parcel is located within a single-family residential zoning district.

2. The parcel is not located within a historic district.

3. The existing dwelling unit(s) has not been occupied by a tenant in the last three years.

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City Of Monte Sereno Residential Developments (SB-9)
P:\Front Counter\Residential Development SB9 Information.docx Page 2 of 3 Revised 12/2021
Use and Development Requirements
Residential Developments shall conform to all objective property development regulations of the applicable zoning district including, but not limited to, setbacks, building height, building size, structural coverage, and impervious coverage, and any objective requirements in the City’s design guidelines. However, following are modifications to these standards that specifically apply to Residential Developments:

Objective Design Standards. Residential developments shall comply with the City’s Objective Design Standards.

Setbacks. A setback of at least four feet is required from the rear and side property lines. Front yard setbacks are required based on the zoning district standards as shown below:

Zoning District Front Yard Setback
R-1-8 25 Feet - First Floor
30 Feet - Second Floor
R-1-20 30 Feet - First Floor
40 Feet - Second Floor
R-1-44 30 Feet – First Floor
45 Feet – Second Floor
No setback shall be required for an existing structure, or a structure constructed in the same location and to the same dimensions as an existing structure.

Building Height. Any portion of a new dwelling unit located in the side or rear setbacks of the zoning district as shown below, shall be no more than 16 feet in height:

Zoning District Side Yard Rear Yard
R-1-8 6 Feet 30 Feet
R-1-20 15 Feet 30 Feet
R-1-44 20 Feet 30 Feet
Building Size. Each new dwelling unit constructed shall be a maximum of 800 square feet.

Exterior Access. All dwelling units created shall have independent exterior access. Interior access between attached dwelling units shall be prohibited.

Separation Between Buildings. Each dwelling unit shall be separated by a distance of at least ten feet from any other structure on the parcel. However, units may be adjacent or connected if the structures meet building code safety standards and are sufficient to allow a separate conveyance.

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City Of Monte Sereno Residential Developments (SB-9)
P:\Front Counter\Residential Development SB9 Information.docx Page 3 of 3 Revised 12/2021
Parking. A minimum of one off-street parking space shall be provided for each dwelling unit unless the parcel is within ½ mile of public transit or within one block of a car share vehicle.

Decks, Balconies, and Covered Areas. Second story exterior decks and balconies, and rooftop decks, are prohibited.

Additionally, exterior covered space that is attached to the dwelling unit (including but not limited to covered porches and patios) shall not exceed a total of 150 square feet, with at least one third of such square footage at the front of the dwelling unit.

Exterior Materials. When construction of a new dwelling unit is proposed on a parcel with an existing dwelling unit, the new dwelling unit shall utilize the same exterior materials and colors as the existing dwelling unit. Where two new units are proposed to be constructed on a parcel, each unit shall utilize the same exterior materials and colors as the other unit.

Electric Vehicle Chargers. Each new dwelling unit shall provide pre-wiring for one electrical vehicle charger as required by the California Green Building Standards Code section 4.106.4.1.

No Short-Term Rental. Dwelling units shall not be rented for a period of less than thirty days.

Utility Connections. Each dwelling unit shall have separate utility connection directly between each dwelling unit and the utility for water, sewer, and electrical services. Gas utility connections shall be prohibited for such dwelling units.

Onsite Wastewater Treatment. If a proposed dwelling unit will be connected to an onsite wastewater treatment system, the applicant shall provide a percolation test completed within the last five years, or, if the percolation test has been recertified, within the last ten years.

Filing, Processing, and Action
A Site Development Permit application shall be filed for all Residential Development projects. Such applications will be reviewed ministerially and without a public hearing by the City Planner.

The City Planner shall deny a Site Development Permit application if the building official makes a written finding, based upon a preponderance of the evidence, that the proposed project would have a specific, adverse impact, as defined and determined in paragraph (2) of subdivision (d) of Section 65589.5, upon public health and safety or the physical environment and for which there is no feasible method to satisfactorily mitigate or avoid the specific, adverse impact.

The City Planner shall send notices to property owners within 600 feet of a proposed Residential Development upon the submission of an application, and again upon completion of such application.

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Attachment 4
Letter Received from Berliner Cohen
LLP dated March 22, 2022

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____________ ____________

FOUNDERS
SANFORD A. BERLINER (d. 2020)
SAMUEL J. COHEN

OF COUNSEL
STEVEN L. HALLGRIMSON
FRANK R. UBHAUS
RALPH J. SWANSON
NANCY L. BRANDT
LESLIE KALIM McHUGH

BRADLEY HEBERT
ERIC D. CAPRON
BRUCE J. HENDRICKS
STUART B. SPENCER

TEN ALMADEN BOULEVARD

ELEVENTH FLOOR
SAN JOSE, CALIFORNIA 95113-2233
TELEPHONE: (408) 286-5800
FACSIMILE: (408) 998-5388
www.berliner.com
Branch Offices
Merced, CA • Modesto, CA
March 22, 2022
VIA U.S. AND ELECTRONIC MAIL
Mayor Ellahie & Members of the City Council
City of Monte Sereno
18041 Saratoga - Los Gatos Road
Monte Sereno, CA 95030
Re: Ordinance No. NS-229, Implementing SB 9
Dear Mayor Ellahie & Members of the City Council:

The purpose of this letter is to advise the City of inconsistencies between Ordinance NS229 (the “Ordinance”) and state and federal law. This firm represents several Monte Sereno homeowners who would like to subdivide their property under SB 9, but who are being prevented from doing so by the Ordinance. These homeowners include Joy and Trevor Schwartz, Anne and Kevin Hayes, and Janet and Barry Chaffin. Each couple owns a parcel of property approximately one acre in size or more that is ideally suited for treatment under SB 9. In each case, SB 9 would facilitate the clients’ ability to foster their own personal and family aspirations without leaving the community, while also contributing to the City’s housing production goals.

Those objectives cannot be achieved, however, because of the Ordinance’s restrictions on the use of SB 9. SB 9 prohibits local agencies from applying objective design and subdivision standards that preclude the construction of two dwelling units at least 800 square feet in size. The Ordinance treats this minimum unit size as a maximum. It also limits exterior covered space ANDREW L. FABER
PEGGY L. SPRINGGAY
SAMUEL L. FARB
JAMES P. CASHMAN
STEVEN J. CASAD
NANCY J. JOHNSON
JEROLD A. REITON
JONATHAN D. WOLF
KATHLEEN K. SIPLE
KEVIN F. KELLEY

MARK MAKIEWICZ

JOLIE HOUSTON
BRIAN L. SHETLER
HARRY A. LOPEZ
CHARLES W. VOLPE
CHRISTINE H. LONG
AARON M. VALENTI
CHRISTIAN E. PICONE
SUSAN E. BISHOP
SANDRA G. SEPÚLVEDA
MICHAEL B. IJAMS
KIMBERLY G. FLORES
DAWN C. SWEATT
TYLER A. SHEWEY
JAMES F. LANDRUM, JR.

MICHAEL J. CHENG
EILEEN P. KENNEDY

JOSHUA BORGER
BENJAMIN M. JOHNSON
STEPHEN C. SCORDELIS
C. DAVID SPENCE
THOMAS P. MURPHY
ALESHIA M. WHITE

DENNIS CHIN
EDWARD C. HSU
ALEXANDRIA N. NGUYEN
ANDREW J. DIGNAN

ERIK RAMAKRISHNAN
LEILA N. SOCKOLOV
TIMOTHY K. BOONE

ANGELA SHAW
DAVID A. BELLUMORI
MARY T. NGUYEN
ELLEN M. TAYLOR
NATHAN C. BRADY
BRANDON L. REBBOAH
LINDSAY I. WALCZAK
LEA M. NEMETH
IRIS C. CHIU
MAKAYLA A. WHITNEY
MARISA J. MARTINSON
MARIA I. PALOMARES
BENJAMIN H. WOHLFORD
KEVIN S. LANDIS
CHRISTIAN D. WICK
JENNIFER N. WISE

SAM ATABAY BIDGOLI

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Mayor & Council
March 22, 2022
-2-
attached to dwelling units, including porches and patios, to 150 square feet, with at least one-third of this area attached to the front of the dwelling.1
These restrictions are unreasonable, and the only conceivable purpose for them is effectively to prohibit SB 9 projects by rendering them infeasible. Under existing zoning rules, on a lot that is at least one acre in the R-1-44 zoning district, each of our clients could construct up to 8,300 square feet of living accommodation, including a residence, accessory dwelling unit, and junior accessory dwelling unit. But as soon as any property owner seeks to take advantage of SB 9, the Ordinance restricts the maximum unit size to 800 square feet, regardless of the size of the lot.2
For reasons explained below, attempting to thwart SB 9 in this way violates both SB 9 and the Housing Crisis Act of 2019 (SB 330) and is unconstitutional.

Despite these concerns, if our clients could subdivide their lots using SB 9’s procedures for ministerial Urban Lot Splits, to achieve standard sized units they would be willing to undergo the City’s discretionary process for site development approval. However, the Ordinance does not allow this,3 which, as explained below, is contrary to the plain text of SB 9.

1. The Ordinance Violates SB 9 and SB 330
A local ordinance violates SB 9 if it is intended to thwart SB 9. Such an ordinance also violates SB 330. This was made clear in a March 15, 2022 letter from the Attorney General to the City of Pasadena.4
In the letter, the Attorney General advised Pasadena that its attempt to thwart SB 9 by declaring large parts of the City “landmark districts” violates state law. At pages 4 and 5 of the letter, the Attorney General explained that by seeking to thwart the law, Pasadena had abused its discretion under SB 9. At page 4, the Attorney General also stated that Pasadena’s actions violated Government Code Section 66300(b)(1)(B)(i) (enacted as part of SB 330), which prohibits any local zoning regulation that has the effect of restricting or limiting housing development.

The Ordinance was intended primarily to discourage the use of SB 9 within the City. This was made clear when the City Council discussed the Ordinance at its January 4, 2022 meeting, at which time the following comments were made by councilmembers:
• Around 32 minutes into the meeting, one councilmember indicated that the City had proposed a “strict” ordinance “so there is not a lot of change immediately” and to “try to maintain the status quo.”
• At around 36 minutes, a councilmember indicated that the goal of the Ordinance was “not to create a financial incentive for people to go and split their lots.” • At around 38 minutes, one councilmember described the Ordinance as a “preventative measure.”
1 Muni. Code, § 10.05.080.F.8, 12. 2 Note that the smallest size lot any of our clients can create under SB 9 is approximately 16,500 square feet.

Applying the R-1-20 regulations, a house size of 4,500 square feet would apply to each of the resulting parcels. 3 Muni. Code, § 13.06.040.C, D. 4 https://oag.ca.gov/system/files/attachments/pressdocs/AG%20Letter%20to%20Pasadena%20re%20SB%209%20Urgency%20Ordinance.pdf.

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Mayor & Council
March 22, 2022
-3-
• Starting around 39 minutes into the meeting, two councilmembers justified the Ordinance as an effort to retain local control.

Like with Pasadena’s ordinance, by adopting the Ordinance to thwart SB 9, the City Council abused its discretion. Also, because the purpose and effect of the Ordinance is to restrict or limit housing development that state law expressly allows, the Ordinance violates SB 330.

2. The Ordinance Is Unconstitutional
A zoning regulation is unconstitutional if it is arbitrary and capricious.5 In other words, the regulation must have a legitimate purpose rooted in the health, safety, or welfare of the general public. Here, however, the Ordinance was intended to discourage the use of SB 9. Discouraging or preventing property owners from taking advantage of rights under state law is not a legitimate purpose rooted in the health, safety, and welfare of the general public. A homeowner in the City can construct a 3,300 square foot primary dwelling unit plus accessory and junior accessory dwelling units on some of the smallest lots in the City. Given that circumstance, there is no rational basis to limit unit sizes for projects processed under SB 9 to 800 square feet regardless of lot size.

The restriction is therefore arbitrary and capricious, which in turn renders it unconstitutional.

3. Property Owners Should Be Allowed to Seek Discretionary Approvals for New Units in Connection with SB 9 Urban Lot Splits
Even though the Ordinance’s restrictions on building size are unlawful, as set forth above, our clients would be willing to undergo the City’s discretionary procedures for building site approvals if they could process Urban Lot Splits under SB 9. However, the Ordinance prohibits this. This prohibition is contrary to the plain text of SB 9.

SB 9 has two main parts. First, it adds Government Code Section 65852.21 to the Planning and Zoning Law, which provides for ministerial building site approvals of up to two primary residences per residential lot. Second, it adds Government Code Section 66411.7 to the Subdivision Map Act, which establishes procedures for ministerial approval of an Urban Lot Split.

The separate purpose of these statutes coupled with their enactment in different divisions of the Government Code makes clear that each statute rests on its own bottom.

If there were any unclarity that each statute functions independently of the other, Government Code Section 65852.21(f) resolves the ambiguity, by stating that: “Notwithstanding Section 65852.2 or 65852.22, a local agency shall not be required to permit an accessory dwelling unit or a junior accessory dwelling unit on parcels that use both the authority contained within this section and the authority contained in Section 66411.7.6 The fact that subdivision (f) describes
rules that will apply if a property owner uses the authority under both statutes shows that a property owner may choose to use only one of the statutes.
5 Hamer v. Ross (1963) 59 Cal.2d 776, 781 (determining that spot zoning was arbitrary and capricious under the circumstances, and therefore unconstitutional). 6 Emphasis added.

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Mayor & Council
March 22, 2022
-4-
SB 9 is sufficiently comprehensive that it can be said to occupy the field of legislation relating to the subject matter covered by the law, except to the extent that it expressly preserves local authority. SB 9 itself does not require property owners to take advantage of both Government Code Section 65852.21 and 66411.7, and nothing in SB 9 allows a local agency to impose such a requirement. The City is therefore preempted from prohibiting property owners from using discretionary design review processes in connection with an Urban Lot Split.

I would appreciate the opportunity to discuss these concerns further with a representative of the City, and I urge you to revisit the Ordinance. Each of our clients desires to propose a welldesigned project that will enhance the character of the City. There is no basis in SB 9 to impose unreasonable impediments to achieving this goal.

Very Truly Yours,

BERLINER COHEN, LLP

ERIK RAMAKRISHNAN
[email protected]
Cc: Steve Leonardis ([email protected]); Sergio Rudin ([email protected])

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Attachment 5
Comparison of Monte Sereno
Requirements with other Local
Jurisdictions

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Comparison of Main SB-9 Regulations with Other Local Jurisdictions Item Town of Los Gatos City of Saratoga Town of Los Altos Hills City of Monte Sereno Building Size As allowed by the zoning
district; except that the
first unit shall have 1,200
square feet maximum
As allowed by the zoning
district for two units
combined
800 square feet
maximum, or 1,600 if
increased side/rear yard
setbacks are met
800 square feet maximum
Building Height 16 feet when located
within the side or rear
yard setback of zoning
district. Otherwise,
standard building height
allowed by zoning district.
16 feet when located
within the side or rear
yard setback of zoning
district. Otherwise,
standard building height
allowed by zoning district.
16 feet 16 feet when located
within the side or rear
yard setback of zoning
district. Otherwise,
standard building height
allowed by zoning district.

Impervious Coverage As allowed by the zoning
district
As allowed by the zoning
district
2,100 square feet in
addition to the buildings
Based on actual zoning
district, not effective
zoning district
Decks and Balconies Second story
decks/balconies and
rooftop deck are
prohibited.

Rooftop decks are
prohibited
Roof deck prohibited and
balconies shall meet
standard setbacks
Second story
decks/balconies and
rooftop deck are
prohibited.

Exterior Covered Areas If a front porch is
proposed, a minimum of 6
feet in depth and a
minimum width of 25% of
the building
As allowed by the zoning
district
As allowed by the zoning
district
Covered porches and
patios limited to 150
square feet with at least
1/3 in the front of the
building.

Distance Between
Buildings
5 feet As allowed by the zoning
district
As allowed by the zoning
district
10 feet
Lot Frontage 20 feet 50% of the original parcel 25 feet for flag lots as frontage or easement
access
No specified minimum,
but needs to comply with
access requirements of
the Santa Clara County
Fire Marshal

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Attachment 6
California Department of Housing
and Community Development SB-9
Fact Sheet

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California Department of Housing and Community Development SB 9 Fact Sheet
On the Implementation of Senate Bill 9 (Chapter 162, Statutes of 2021)
Housing Policy Development Division
March 2022

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California Department of Housing and Community Development – SB 9 Fact Sheet 1 This Fact Sheet is for informational purposes only and is not intended to implement or interpret SB 9. HCD does not have authority to enforce SB 9, although violations of SB 9 may concurrently violate other housing laws where HCD does have enforcement authority, including but not limited to the laws addressed in this document. As local jurisdictions implement SB 9, including adopting local ordinances, it is important to keep these and other housing laws in mind. The Attorney General may also take independent action to enforce SB 9. For a full list of statutes over which HCD has enforcement authority, visit HCD’s Accountability and Enforcement webpage.

Executive Summary of SB 9
Senate Bill (SB) 9 (Chapter 162, Statutes of 2021) requires ministerial approval of a housing development with no more than two primary units in a single-family zone, the subdivision of a parcel in a single-family zone into two parcels, or both. SB 9 facilitates the creation of up to four housing units in the lot area typically used for one single-family home. SB 9 contains eligibility criteria addressing environmental site constraints (e.g., wetlands, wildfire risk, etc.), anti-displacement measures for renters and low-income households, and the protection of historic structures and districts. Key provisions of the law require a local agency to modify or eliminate objective development standards on a project-by-project basis if they would prevent an otherwise eligible lot from being split or prevent the construction of up to two units at least 800 square feet in size. For the purposes of this document, the terms “unit,” “housing unit,” “residential unit,” and “housing development” mean primary unit(s) unless specifically identified as an accessory dwelling unit (ADU) or junior ADU or otherwise defined.

Single-Family Residential Zones Only (Reference: Gov. Code, §§ 65852.21, subd. (a); 66411.7 subd. (a)(3)(A)) The parcel that will contain the proposed housing development or that will be subject to the lot split must be located in a single-family residential zone. Parcels located in multifamily residential, commercial, agricultural, mixed-use zones, etc., are not subject to SB 9 mandates even if they allow single-family residential uses as a permitted use. While some zones are readily identifiable as single-family residential zones (e.g., R-1 “SingleFamily Residential”), others may not be so obvious. Some local agencies have multiple single-family zones with subtle distinctions between them relating to minimum lot sizes or allowable uses. In communities where there may be more than one single-family residential zone, the local agency should carefully review the zone district descriptions in the zoning code and the land use designation descriptions in the Land Use Element of the General Plan. This review will enable the local agency to identify zones whose primary purpose is single-family residential uses and which are therefore subject to SB 9.

Considerations such as minimum lot sizes, natural features such as hillsides, or the permissibility of keeping horses should not factor into the determination.

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California Department of Housing and Community Development – SB 9 Fact Sheet 2 Residential Uses Only
(Reference: Gov. Code, §§ 65852.21, subd. (a))
SB 9 concerns only proposed housing developments containing no more than two residential units (i.e., one or two). The law does not otherwise change the allowable land uses in the local agency’s single-family residential zone(s). For example, if the local agency’s single-family zone(s) does not currently allow commercial uses such as hotels or restaurants, SB 9 would not allow such uses.

Ministerial Review
(Reference: Gov. Code, §§ 65852.21, subd. (a); 66411.7, subds. (a), (b)(1)) An application made under SB 9 must be considered ministerially, without discretionary review or a hearing. Ministerial review means a process for development approval involving no personal judgment by the public official as to the wisdom of carrying out the project. The public official merely ensures that the proposed development meets all the applicable objective standards for the proposed action but uses no special discretion or judgment in reaching a decision. A ministerial review is nearly always a “staff-level review.” This means that a staff person at the local agency reviews the application, often using a checklist, and compares the application materials (e.g., site plan, project description, etc.) with the objective development standards, objective subdivision standards, and objective design standards.

Objective Standards
(Reference: Gov. Code, §§ 65852.21, subd. (b); 66411.7, subd. (c)) The local agency may apply objective development standards (e.g., front setbacks and heights), objective subdivision standards (e.g., minimum lot depths), and objective design standards (e.g., roof pitch, eave projections, façade materials, etc.) as long as they would not physically preclude either of the following:

Up to Two Primary Units. The local agency must allow up to two primary units (i.e., one or two) on the subject parcel or, in the case of a lot split, up to two primary units on each of the resulting parcels.

Units at least 800 square feet in size. The local agency must allow each primary unit to be at least 800 square feet in size.

The terms “objective zoning standards,” “objective subdivision standards,” and “objective design review standards” mean standards that involve no personal or subjective judgment by a public official and are uniformly verifiable by reference to an external and uniform benchmark or criterion available and knowable by both the development applicant or proponent and the public official prior to submittal. Any objective standard that would physically preclude either or both of the two objectives noted above must be modified or

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California Department of Housing and Community Development – SB 9 Fact Sheet 3 waived by the local agency in order to facilitate the development of the project, with the following two exceptions:

Setbacks for Existing Structures. The local agency may not require a setback for an existing structure or for a structure constructed in the same location and to the same dimensions as an existing structure (i.e., a building reconstructed on the same footprint).

Four-Foot Side and Rear Setbacks. SB 9 establishes an across-the-board maximum four-foot side and rear setbacks. The local agency may choose to apply a lesser setback (e.g., 0-4 feet), but it cannot apply a setback greater than four feet. The local agency cannot apply existing side and rear setbacks applicable in the single-family residential zone(s). Additionally, the four-foot side and rear setback standards are not subject to modification. (Gov. Code, §§ 65852.21, subd. (b)(2)(B); 66411.7, subdivision (c)(3).)
One-Unit Development
(Reference: Gov. Code, §§ 65852.21, subd. (a); 65852.21, subd. (b)(2)(A)) SB 9 requires the ministerial approval of either one or two residential units. Government Code section 65852.21 indicates that the development of just one single-family home was indeed contemplated and expected. For example, the terms “no more than two residential units” and “up to two units” appear in the first line of the housing development-related portion of SB 9 (Gov. Code, § 65852.21, subd. (a)) and in the line obligating local agencies to modify development standards to facilitate a housing development. (Gov. Code, § 65852.21, subd. (b)(2)(A).)
Findings of Denial
(Reference: Gov. Code, §§ 65852.21, subd. (d); 66411.7, subd. (d)) SB 9 establishes a high threshold for the denial of a proposed housing development or lot split. Specifically, a local agency’s building official must make a written finding, based upon a preponderance of the evidence, that the proposed housing development would have a specific, adverse impact, as defined in Government Code section 65589.5, subdivision (d)(2), upon public health and safety or the physical environment and for which there is no feasible method to satisfactorily mitigate or avoid the specific, adverse impact. “Specific, adverse impact” means a significant, quantifiable, direct, and unavoidable impact, based on objective, identified written public health or safety standards, policies, or conditions as they existed on the date the application was deemed complete. (Gov. Code, § 65589.5, subd. (d)(2).)

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California Department of Housing and Community Development – SB 9 Fact Sheet 4 Environmental Site Constraints
(Reference: Gov. Code, §§ 65852.21, subd. (a)(2) and (a)(6); 66411.7, subd. (a)(3)(C) and (a)(3)(E)) A proposed housing development or lot split is not eligible under SB 9 if the parcel contains any of the site conditions listed in Government Code section 65913.4, subdivision (a)(6)(B-K). Examples of conditions that may disqualify a project from using SB 9 include the presence of farmland, wetlands, fire hazard areas, earthquake hazard areas, flood risk areas, conservation areas, wildlife habitat areas, or conservation easements. SB 9 incorporates by reference these environmental site constraint categories that were established with the passing of the Streamlined Ministerial Approval Process (SB 35, Chapter 366, Statutes of 2017). Local agencies may consult HCD’s Streamlined Ministerial Approval Process Guidelines for additional detail on how to interpret these environmental site constraints.

Additionally, a project is not eligible under SB 9 if it is located in a historic district or property included on the State Historic Resources Inventory or within a site that is designated or listed as a city or county landmark or as a historic property or district pursuant to a city or county ordinance.

California Environmental Quality Act (CEQA)
Reference: Gov. Code, §§ 65852.21, subd. (j); 66411.7, subd. (n)) Because the approval of a qualifying project under SB 9 is deemed a ministerial action, CEQA does not apply to the decision to grant an application for a housing development or a lot split, or both. (Pub. Resources Code, § 21080, subd. (b)(1) [CEQA does not apply to ministerial actions]; CEQA Guidelines, § 15268.) For this reason, a local agency must not require an applicant to perform environmental impact analysis under CEQA for applications made under SB 9. Additionally, if a local agency chooses to adopt a local ordinance to implement SB 9 (instead of implementing the law directly from statute), the preparation and adoption of the ordinance is not considered a project under CEQA. In other words, the preparation and adoption of the ordinance is statutorily exempt from CEQA.

Anti-Displacement Measures
(Reference: Gov. Code, §§ 65852.21, subd. (a)(3); 66411.7, subd. (a)(3)(D)) A site is not eligible for a proposed housing development or lot split if the project would require demolition or alteration of any of the following types of housing: (1) housing that is subject to a recorded covenant, ordinance, or law that restricts rents to levels affordable to persons and families of moderate, low, or very low income; (2) housing that is subject to any form of rent or price control through a public entity’s valid exercise of its police power; or (3) housing that has been occupied by a tenant in the last three years.

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California Department of Housing and Community Development – SB 9 Fact Sheet 5 Lot Split Requirements
(Reference: Gov. Code, § 66411.7)
SB 9 does not require a local agency to approve a parcel map that would result in the creation of more than two lots and more than two units on a lot resulting from a lot split under Government Code section 66411.7. A local agency may choose to allow more than two units, but it is not required to under the law. A parcel may only be subdivided once under Government Code section 66411.7. This provision prevents an applicant from pursuing multiple lot splits over time for the purpose of creating more than two lots. SB 9 also does not require a local agency to approve a lot split if an adjacent lot has been subject to a lot split in the past by the same property owner or a person working in concert with that same property owner.

Accessory Dwelling Units
(Reference: Gov. Code, §§ 65852.21, subd. (j); 66411.7, subd. (f)) SB 9 and ADU Law (Gov. Code, §§ 65852.2 and 65858.22) are complementary. The requirements of each can be implemented in ways that result in developments with both “SB 9 Units” and ADUs. However, specific provisions of SB 9 typically overlap with State ADU Law only to a limited extent on a relatively small number of topics. Treating the provisions of these two laws as identical or substantially similar may lead a local agency to implement the laws in an overly restrictive or otherwise inaccurate way. “Units” Defined. The three types of housing units that are described in SB 9 and related ADU Law are presented below to clarify which development scenarios are (and are not) made possible by SB 9. The definitions provided are intended to be read within the context of this document and for the narrow purpose of implementing SB 9.

Primary Unit. A primary unit (also called a residential dwelling unit or residential unit) is typically a single-family residence or a residential unit within a multi-family residential development. A primary unit is distinct from an ADU or a Junior ADU.

Examples of primary units include a single-family residence (i.e., one primary unit), a duplex (i.e., two primary units), a four-plex (i.e., four primary units), etc.

Accessory Dwelling Unit. An ADU is an attached or a detached residential dwelling unit that provides complete independent living facilities for one or more persons and is located on a lot with a proposed or existing primary residence. It includes permanent provisions for living, sleeping, eating, cooking, and sanitation on the same parcel on which the single-family or multifamily dwelling is or will be situated.

Junior Accessory Dwelling Unit. A Junior ADU is a unit that is no more than 500 square feet in size and contained entirely within a single-family residence. A Junior ADU may include separate sanitation facilities or may share sanitation facilities with the existing structure.

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California Department of Housing and Community Development – SB 9 Fact Sheet 6 The terms “unit,” “housing unit,” “residential unit,” and “housing development” mean primary unit(s) unless specifically identified as an ADU or Junior ADU or otherwise defined. This distinction is critical to successfully implementing SB 9 because state law applies different requirements (and provides certain benefits) to ADUs and Junior ADUs that do not apply to primary units.

Number of ADUs Allowed. ADUs can be combined with primary units in a variety of ways to achieve the maximum unit counts provided for under SB 9. SB 9 allows for up to four units to be built in the same lot area typically used for a single-family home. The calculation varies slightly depending on whether a lot split is involved, but the outcomes regarding total maximum unit counts are identical.

Lot Split. When a lot split occurs, the local agency must allow up to two units on each lot resulting from the lot split. In this situation, all three unit types (i.e., primary unit, ADU, and Junior ADU) count toward this two-unit limit. For example, the limit could be reached on each lot by creating two primary units, or a primary unit and an ADU, or a primary unit and a Junior ADU. By building two units on each lot, the overall maximum of four units required under SB 9 is achieved. (Gov. Code, § 66411.7, subd. (j).) Note that the local agency may choose to allow more than two units per lot if desired.

No Lot Split. When a lot split has not occurred, the lot is eligible to receive ADUs and/or Junior ADUs as it ordinarily would under ADU law. Unlike when a project is proposed following a lot split, the local agency must allow, in addition to one or two primary units under SB 9, ADUs and/or JADUs under ADU Law. It is beyond the scope of this document to identify every combination of primary units, ADUs, and Junior ADUs possible under SB 9 and ADU Law. However, in no case does SB 9 require a local agency to allow more than four units on a single lot, in any combination of primary units, ADUs, and Junior ADUs.

See HCD’s ADU and JADU webpage for more information and resources.

Relationship to Other State Housing Laws
SB 9 is one housing law among many that have been adopted to encourage the production of homes across California. The following represent some, but not necessarily all, of the housing laws that intersect with SB 9 and that may be impacted as SB 9 is implemented locally.

Housing Element Law. To utilize projections based on SB 9 toward a jurisdiction’s regional housing need allocation, the housing element must: 1) include a site-specific inventory of sites where SB 9 projections are being applied, 2) include a nonvacant sites analysis demonstrating the likelihood of redevelopment and that the existing use will not constitute an impediment for additional residential use, 3) identify any governmental constraints to the use of SB 9 in the creation of units (including land use controls, fees,

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California Department of Housing and Community Development – SB 9 Fact Sheet 7 and other exactions, as well as locally adopted ordinances that impact the cost and supply of residential development), and 4) include programs and policies that establish zoning and development standards early in the planning period and implement incentives to encourage and facilitate development. The element should support this analysis with local information such as local developer or owner interest to utilize zoning and incentives established through SB 9. Learn more on HCD’s Housing Elements webpage.

Housing Crisis Act of 2019. An affected city or county is limited in its ability to amend its general plan, specific plans, or zoning code in a way that would improperly reduce the intensity of residential uses. (Gov. Code, § 66300, subd. (b)(1)(A).) This limitation applies to residential uses in all zones, including single-family residential zones. “Reducing the intensity of land use” includes, but is not limited to, reductions to height, density, or floor area ratio, new or increased open space or lot size requirements, new or increased setback requirements, minimum frontage requirements, or maximum lot coverage limitations, or any other action that would individually or cumulatively reduce the site’s residential development capacity. (Gov. Code, § 66300, subd. (b)(1)(A).) A local agency should proceed with caution when adopting a local ordinance that would impose unique development standards on units proposed under SB 9 (but that would not apply to other developments). Any proposed modification to an existing development standard applicable in the single-family residential zone must demonstrate that it would not result in a reduction in the intensity of the use. HCD recommends that local agencies rely on the existing objective development, subdivision, and design standards of its singlefamily residential zone(s) to the extent possible. Learn more about Designated Jurisdictions Prohibited from Certain Zoning-Related Actions on HCD’s website.

Housing Accountability Act. Protections contained in the Housing Accountability Act (HAA) and the Permit Streaming Act (PSA) apply to housing developments pursued under SB 9. (Gov. Code, §§ 65589.5; 65905.5; 65913.10; 65940 et seq.) The definition of “housing development project” includes projects that involve no discretionary approvals and projects that include a proposal to construct a single dwelling unit. (Gov. Code, § 65905.5, subd. (b)(3).) For additional information about the HAA and PSA, see HCD’s Housing Accountability Act Technical Assistance Advisory.

Rental Inclusionary Housing. Government Code section 65850, subdivision (g), authorizes local agencies to adopt an inclusionary housing ordinance that includes residential rental units affordable to lower- and moderate-income households. In certain circumstances, HCD may request the submittal of an economic feasibility study to ensure the ordinance does not unduly constrain housing production. For additional information, see HCD’s Rental Inclusionary Housing Memorandum.

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Attachment 7
Sample Urban Lot Split Projects

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T.H.I.S. DESIGN & DEVELOPMENT P.O.Box 1518, Los Gatos, CA 95031 Tel: 408.354.1833 Fax: 408.354.1823
MEMO: EXAMPLES OF SB-9 PROJECTS IN MONTE SERENO
DATE: APRIL 10TH, 2022
TO: CITY OF MONTE SERENO
FROM: TONY JEANS
I have been asked by the City Manager and the City Planner to provide Representational Schematics that show how a number of Monte Sereno Residents would like to utilize the ‘Urban Lot Split’ aspect of SB-9 based on communication and conversations they have had with the City. Some, but not all, of these are clients of mine who would like me to design homes for them.

In order to do this, I met with four of them to discuss their needs and thinking and then used a combination of Google Maps, Google Earth and Topographic maps to show what each project would entail, if it were to be allowed. They have reviewed what I have included and agree to its general accuracy and its use.

Some of these would-be applicants have growing families, others are nearing retirement and their children have left home. All have slightly different reasons in wishing to use SB-9 but none of them is a ‘developer’ and most of are long-term Monte Sereno residents. They plan to remain residents - and will be living in one of the resulting homes for at least the ensuing 3 years mandated by the Law.

The common theme is that none of these projects would be allowed under the present iteration of the Monte Sereno SB-9 ordinance, primarily because all SB-9 residential units are restricted to a maximum of 800 sq ft and this would not permit them to move forward.

In talking to the owners, they would also be prepared to use the Discretionary Review Process of ‘Site and Architecture’ if their proposals did not fall within the ‘Objective Design Standards’ for Ministerial Projects adopted by the City. But this process was explicitly eliminated by the ordinance even though other Cities allow it. SB-9 does not require such a restriction.

The ordinance itself is a constraint to those residents of Monte Sereno who wish to develop their properties in the manner for which SB-9 is intended.

I hope that this set of schematics [2 for each resident] helps you to understand how you might improve the ordinance to become more useful to residents of your City. It would turn unused land into useful land and would not result in an intensification of use over current zoning rules - complying with the spirit and vision of Monte Sereno remaining primarily a Single Family Residential Community, while still permitting more flexibility in property ownership.

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From: Janet Chaffin
To: City Clerk
Subject: April 19 Council Meeting re SB-9
Date: Sunday, April 17, 2022 9:18:27 PM
Members of the City Council:

I am writing regarding the impact of Monte Sereno's SB-9 ordinance on our situation in hopes of persuading you to consider revamping the current 800 sq ft home limitation for a split lot to provide greater flexibility for homeowners like us in our planning, as this is up for consideration at the Council Hearing, #2 on Tuesday's agenda. I also noticed that item #3 on the agenda is the Housing Element seeking more properties in Monte Sereno to address housing needs. Maybe amending the SB-9 Ordinance could be part of the solution.

The 800 sq ft home size limitation on the SB-9 split lot makes it impractical for us to take advantage of this program. Our lot is nearly 1 1/2 acres which could easily allow for our desired two 3000-3500 sq ft homes, that is, no more than the total square footage currently allowed by zoning on our lot. We would be happy to have Site & Architecture review for both designs to ensure Monte Sereno's unique character is preserved. Please consider allowing this flexibility in the Monte Sereno SB-9 Ordinance.

Thank you!
Janet & Barry Chaffin

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STAFF REPORT
Meeting: City Council - Apr 19 2022
Agenda Heading: NEW BUSINESS
Staff Contact: Diana Perkins, City Planner
Department: City Planner
Title: Accept Housing Element Update on Site Inventory and the April 23, 2022 Community Workshop Overview and Provide Direction to Staff Recommendation(s):

Staff recommends that the City Council receive the Housing Element Update and provide any feedback or direction to staff.

Background Information:

The Housing Element is part of the City’s General Plan and identifies policies and programs to meet the housing needs of the city’s current and future residents. State law (Government Code Sections 65580-65589.8) requires that every city and county in California adopt a Housing Element, approximately every five or eight years. In addition, the State Department of Housing and Community Development (HCD) reviews and certifies that each Housing Element meets all the requirements of the law. Monte Sereno’s current Housing Element was adopted in 2015 and the new document must be adopted by January 2023, but the state’s approval process can take several months.

The Housing Element Process has mandatory public participation requirements:
• Prior to submittal of the first draft within a planning period to HCD, the local government must make the draft available for public comment for 30 days and if any comments were received, take at least 10 business days to consider and incorporate public comments.
• Submit draft to HCD for review/approval.
• Revise and adopt (or adopt without changes).
• For any subsequent revisions, the local government must post the draft revision on its website and email a link to all individuals and organizations that have previously requested notices relating to the local government’s housing element at least seven days before submitting the draft revision to HCD.

Attachment 3 to this report includes a schedule for this housing element update.

Housing Element Overview

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Monte Sereno’s current Housing Element covered 2015 to 2023 and was adopted on May 19, 2015. The new Housing Element will be for the 2023 to 2031 planning period. The Housing Element typically includes the following major components:

1. Housing Needs Assessment: An analysis of housing needs of the City's population, including analysis of population, housing characteristics, projected housing needs by income group, housing needs of special needs populations (including elderly, persons with disabilities, etc.), existing housing stock conditions, and existing units in need of replacement or rehabilitation.

2. Constraints Analysis: An analysis of housing constraints that impact housing production, including city land use controls, local ordinances, permit requirements, fees, and the way that they may impact housing production.

3. Evaluation of Past Performance: Assess progress in implementing the policies and programs from the prior Housing Element.

4. Housing Sites Inventory: Identify housing sites available for development or redevelopment, ensuring that there is sufficient capacity to address the Regional Housing Needs Allocation.

5. Policies and Programs: Establish policies and programs to address the identified housing needs.

6. Community Outreach and Engagement: Conduct a thorough program of community engagement, with a particular focus on outreach to traditionally underrepresented groups.

7. Affirmatively Further Fair Housing (AFFH): Actions that promote and further fair housing opportunities, including descriptions of fair housing enforcement and analysis of integration and segregation patterns and trends.

Regional Housing Needs Allocation (RHNA)
Every city in California receives a required number of homes to plan for. This is called the Regional Housing Needs Allocation or RHNA. Monte Sereno’s RHNA for this upcoming Housing Element is 193, an over 300% increase from last cycle’s RHNA of 61. Under state law, cities do not need to ensure these homes are built, but do need to identify adequate housing sites, as part of their sites inventory, and put in place the proper zoning and address development constraints, so that the private sector can build the housing. The RHNA is broken down by income category, Monte Sereno’s income specific RHNA is:

Very Low Income: 53
Low Income: 30
Moderate Income: 31
Above Mod Income: 79
Total: 193
Almost all jurisdictions in the region (and in other regions) had a higher RHNA this cycle. This is primarily due to changes required by state legislation to account for existing overcrowding.

This cycle, a jurisdiction’s RHNA is based on the following factors:

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• Projected 2050 population according to Plan Bay Area
• Proximity to jobs (both by car and public transportation) • The percent of households living in high opportunity areas (based on school, environmental
• hazards, jobs, etc.)
Sites Inventory
The Sites Inventory is a required portion of a Housing Element. Government Code Section 65583(a)(3) requires local governments to prepare an inventory of land suitable for residential development, including vacant sites and sites having the potential for redevelopment, and an analysis of the relationship of zoning and public facilities and services to these sites. The inventory of land suitable for residential development shall be used to identify sites that can be developed for housing within the planning period. The purpose of the inventory is to identify specific sites that are suitable for residential development in order to compare the local government’s regional housing needs allocation (RHNA) with its residential development capacity. Pursuant to SB 6 (2019), the site inventory must be prepared using the standards, form, and definitions adopted by HCD. HCD publishes a comprehensive guidebook regarding the process and required criteria, available at https://www.hcd.ca.gov/communitydevelopment/housing-element/docs/sites_inventory_memo_final06102020.pdf.

The inventory must include all of the following:
• A parcel-specific listing of sites, using assessor parcel number(s) (APN). Sites identified in the inventory as available to accommodate the RHNA for above moderate-income households, located in areas not served by public sewer systems, need not be listed on a parcel-by-parcel basis.
• The general plan and zoning designations of sites.
• A description of parcel size. This is important as parcel size can be a key factor in determining development viability, capacity, and affordability. • A map showing the location of sites. In terms of scale, a jurisdiction’s general plan landuse diagram or map is appropriate. • A description of existing uses of any non-vacant sites. • A description of whether the parcel has available or planned and accessible infrastructure.
• The income category (above moderate-, moderate-, or lower- income) that the site is expected accommodate.
• If the parcel was identified in a previous planning period site inventory.

The attachment 2 to this report includes the first draft of “Appendix D Vacant and Available Sites” to the Housing Element, which describes and details the sites that have been preliminarily identified for further discussion.

Property owners of each of these sites have been notified that their property has been identified on the Sites Inventory and asked for their feedback and desire for their property to be included in this analysis.

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April 23, 2022 Community Workshop
A community workshop is scheduled for Saturday, April 23 from 2:00pm to 4:00pm. This workshop will be held remotely through Zoom. The purpose of this workshop is to provide the community with the background and status of the Housing Element update, answer questions, and receive input from community members to shape the development of the Housing Element.

The memorandum from EMC Planning Group (attachment 1) includes further details of the planned workshop activities and outline.

Public Noticing:

The City of Monte Sereno's council meeting agenda was posted on the bulletin board outside of Monte Sereno City Hall and the agenda with this staff report can be accessed on The City of Monte Sereno's website located at www.montesereno.org. Additionally, information about this meeting was published on the Housing Element website at www.AtHomeinMonteSereno.com and emailed to a list of interested parties.

Attachments:

1. Memorandum from EMC Planning Group

2. Draft Appendix D – Vacant and Available Sites

3. Housing Element Project Schedule

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Attachment 1
Memorandum from EMC Planning
Group

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To: Monte Sereno City Council
From: Ande Flower, Principal Planner; Lauren Hoerr, Associate Planner, EMC Planning Group Date: April 19, 2022
Re: Potential Sites for the 6th Cycle Housing Element Update; April 23rd Community Workshop

SUMMARY
This memorandum prepares the Monte Sereno community and decision-makers for an in-depth discussion about potential sites to accommodate Monte Sereno’s RHNA (Regional Housing Needs Allocation) of 193 housing units for the 6th Cycle Housing Element Update.

The first section of this memo provides context for the sites inventory process and outlines the purpose of the related attachments. The second section of this memo provides a brief overview of the agenda and goals of the Saturday April 23rd Community Workshop, which will be held virtually via Zoom from 2:00 to 4:00 pm.

For more information about Monte Sereno’s 6th Cycle Housing Element Update process, please visit our dedicated housing element website, www.athomeinmontesereno.com.

MONTE SERENO’S STRATEGY FOR THE SITES INVENTORY
What is the Sites Inventory?
The sites inventory is one important component of the housing element process and the final policy document. The purpose of the sites inventory is to identify and analyze specific sites that are available and suitable for residential development from 2023 to 2031 in order to accommodate Monte Sereno’s assigned regional housing need allocation (RHNA) of 193 housing units. These 193 housing units are distributed across varying levels of affordability. The City doesn’t build the housing but creates the programs and policies to plan for where it should go and how many units could be on potential sites. See table below for more details.

Income Level # of Housing Units
Very Low (0-50% AMI) 53
Low (50-80% AMI) 30
Moderate (80-120% AMI) 31
Above Moderate (120%+ AMI) 79
TOTAL 193
Note: AMI stands for Area Median Income.

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Site Inventory Strategy
Attachment A is an initial draft of Appendix D, which—after incorporating feedback from City decisionmakers, the public and HCD—will be part of the final Housing Element document. The attachment provides a narrative description and aerial images of the potential sites being considered from previous cycles. Attachment B is a table summarizing the quantitative details of these same sites as well as the anticipated number of Accessory Dwelling Units that can be counted towards our RHNA requirement In preparing the work shown in Attachments A and B, staff and consultants have tentatively concluded that Monte Sereno is unable to meet its RHNA without changes to its Zoning Map and Zoning Code. The work currently shown in Attachments A and B test the efficacy of two amendments:

1. Rezoning of nine (9) sites along Vineland Avenue from R-1-44 to R-1-8. The rezoning would reduce lot sizes on the identified land from 43,560 square feet (one acre) to 8,000 square feet (approximately 1/5th of an acre). Single-family housing—albeit on smaller lots—would remain the permittable form of development on these rezoned sites; and

2. Requiring all new single-family housing development to include at least one (1) accessory dwelling unit that is deed restricted to ensure affordability to very low-income families.

Even with these two Zoning amendments in place, staff and consultants found that the sites inventory process remains incomplete. The nine (9) rezoned sites, plus two (2) additional sites (not appropriate for rezoning), plus expected ADU development, results in a housing sites inventory that achieves 90% of the City’s RHNA. Keeping in mind that the goal is to achieve something on the order of 120% to 130% of RHNA1
, that means that there are still additional changes required to obtain Housing Element certification from the California Department of Housing and Community Development (HCD).

One additional policy tool that is available to decision makers is referred to as SB9, which allows owners of a single-family property to divide their lot into two parcels. Each of these parcels would then have the capacity for two units each. Some Monte Sereno residents have expressed interest in such SB9 development, so this might be an avenue for the Site and Architectural Commission and City Council to explore. With such a tool in place, staff and consultants are somewhat confident that Monte Sereno could adopt a new housing element able to obtain certification by HCD.

WORKSHOP OBJECTIVES
Staff and consultants are requesting feedback on the list of sites being considered. Staff and consultants will also briefly discuss potential policies and programs that the City could implement to incentivize or remove barriers for developers and homeowners to create housing units through either the construction of either ADUs or housing units from the SB9 process.
1 Per recent changes in state law, the City is required to maintain “no net loss” of the housing capacity represented by housing sites inventory. Under this new policy, should the City approve development that is inconsistent with the parcel’s planned capacity (as shown in the inventory table), it is required to either identify one or more available sites to replace the lost housing or make a finding that the remaining inventory remains sufficient to meet the City’s 6th Cycle RHNA. The strategy employed in this housing element is to develop a sites inventory that is 120% to 130% of RHNA, which would allow some degree of flexibility for decisionmakers as they approve new housing development.

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APRIL 23RD COMMUNITY WORKSHOP
A Community Workshop will be held on Saturday April 23rd via Zoom from 2-4pm (see agenda below).

The workshop will include a brief overview of the Housing Element process and the importance of equity in this 6th Cycle. The focus of the presentation will be explaining Monte Sereno’s strategy for the Sites Inventory, reviewing potential sites, and explaining how the public can provide feedback on this Sites Inventory process.

Throughout the presentation, attendees will be able to submit questions through a Zoom tool that may be answered during the first Q&A session or answered after the workshop in a summary document that will be available on the website. Additionally, attendees can ask questions live during the longer Q&A session at the end of the workshop. Live polls will also provide an opportunity for audience feedback.

For those that will not be able to make attend, the presentation slides and a video recording of the workshop will be available on the website by the following Tuesday.

Agenda for April 23rd Community Workshop (2-4 pm)
Part 1: Housing Element Update Overview
Part 2: The Importance of Equity
10 Minute Q&A Session
Part 3: Monte Sereno’s Strategy for Sites
Ways to Provide Feedback
Part 4: 40 Minute Q&A Session
ATTACHMENTS:

ABAG Document: Programs to rezone Memo
ABAG Document: ADU projections Memo

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Association of Bay Area Governments | Bay Area Metro Center | 375 Beale Street, Suite 700 | San Francisco, CA 94105 | abag.ca.gov Programs To Rezone
Technical Memo
*Please note: This is a summary of the rules regarding programs to rezone. In some cases, details have been omitted for clarity. Please discuss with your City Attorney or County Counsel.

Adequate Sites Program
If a jurisdiction’s Housing Element does not identify enough existing, properly zoned sites to accommodate its RHNA, the Housing Element must have a program to rezone properties for housing to make up for the shortfall. This program can be an overlay zone on specific sites. The following rules apply to the sites that need to be rezoned (i.e., the zoning is not in place on January 31, 2023).

Program Requirements
Requirements that Apply to Sites Regardless of Income Level • Listed in sites inventory: All sites that are proposed to be rezoned must be listed in the sites inventory.
• Replacement requirements: All sites, including those listed in the site inventory, must be subject to the lower income replacement housing requirements contained in density bonus law, even if they do not have any deed restricted housing. • Sufficient sites: The jurisdiction must identify enough sites to rezone to cover any shortfall. • Rezoned in sufficient time: The jurisdiction should also identify a timeline that matches state law (see below).

Requirements that Apply to Low and Very Low Income Sites The rules regarding very low and low income sites are more complicated. If the rezoning occurs after January 31, 2023, the rezoning program(s) must include the following components:
• By right approval: The zoning must allow for by-right approvals if at least 20% of the units in a project are affordable to lower income households and the project does not need a subdivision.

See below for definition of “by right.”
• Limits on small sites: The site must be large enough for at least 16 units under the rezoning. • Minimum 20/30 units per acre: The zoning must allow at least 20/30 units per acre, depending on the agency’s default density, unless adequate justification can be provided to HCD to support a lower density as suitable for lower income housing. If you don’t know your default density, HCD provides guidance here.

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Association of Bay Area Governments | Bay Area Metro Center | 375 Beale Street, Suite 700 | San Francisco, CA 94105 | abag.ca.gov • Limits on mixed-use development: There are limits on using mixed-use sites. Specifically, the jurisdiction must meet one of the two following conditions:

1. At least half of the lower income units must be placed in zoning districts that are exclusively residential, or

2. The rules must allow for 100% residential development and must require that the proposed development be at least 50% residential by floor area.

Definition of By Right
Applies to lower income sites if 20% of units are affordable to lower income households and no subdivision is required.

Jurisdictions may not require a conditional-use permit, a planned unit development permit, or any other discretionary permit. Any CEQA review must be done at the time of the rezoning approval. The housing project itself is not subject to CEQA.

Any subdivision of a site is subject to the Subdivision Map Act, CEQA, and all other local laws. Design review is acceptable as long as:

1. It does not trigger CEQA,

2. It is based on objective standards, and

3. It does not result in the project being rejected or the density reduced.

See the end of the memo for the statutory language regarding by right approvals.

Timing
The rezoning program should be implemented as early as possible. The timing of the rezoning depends on when whether the Housing Element is certified within 120 days of the Housing Element deadline. (The deadline is January 31, 2023, and 120 more days is May 31, 2023.)

1. If a Housing Element is certified by May 31, 2023, the rezoning must happen by May 31, 2026 (3+ years from the deadline).

2. If the Housing Element is not certified by May 31, 2023, the rezoning must be completed by January 31, 2024.

3. If rezoning is needed because the agency failed to complete all required rezoning in the fifth cycle, the “carryover” rezoning must be completed by January 31, 2024.

Please note: Of the 197 jurisdictions in the Southern California region, 2 were certified within 120 days of the deadline.

Under certain circumstances, if jurisdictions complete 75% of their rezoning on time, they may be eligible for an extension for the final 25%.

Consequences of Not Rezoning on Time
If a local government fails to complete the rezoning by the deadline, HCD may decertify a housing element and may refer the jurisdiction to the Attorney General. Per the Housing Accountability Act, for housing development projects where at least 20% of the total units are affordable, in most cases a locality cannot reject a proposed development project on a site identified by the rezoning program.

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Association of Bay Area Governments | Bay Area Metro Center | 375 Beale Street, Suite 700 | San Francisco, CA 94105 | abag.ca.gov Sample Language
HCD offers the following sample language that could be included in a Housing Element, with edits in red.

Sample Program 1:

To accommodate the remaining lower-income RHNA of 89 units, the City of X will identify and rezone a minimum of 4.5 acres of vacant land to the R3 zoning district, allowing exclusively residential uses and a minimum of 20 units per acre to a maximum of 30 units per acre by June 30 January 31, 2024. Rezoned sites will permit owner-occupied and rental multifamily uses by right pursuant to Government Code section 65583.2(i) for developments in which 20 percent or more of the units are affordable to lower income households and do not require a subdivision and will be selected from sites 20 through 30 in the parcel listing (Appendix A). As reflected in Appendix A, each site has the capacity to accommodate at least 16 units and will be available for development in the planning period where water, sewer, and dry utilities can be provided.

Objective: Create opportunity for at least 89 units of multifamily housing for lower income households
Responsible Agency: Community Development Department
Timeline: Sites rezoned by June 30, 2024
Funding Source(s): General fund
Sample Program 2: Rezone Program on Mixed-use Sites
To accommodate the remaining lower-income RHNA of 150 units, the City will identify and rezone 8 acres of sites within the MU-30 zoning district, allowing owner-occupied and rental multifamily residential uses “by-right”, at a minimum of 20 units per acre by June 30, 2017 January 31, 2024.

Sites will allow projects to be 100 percent residential by-right but shall require residential uses to occupy at least 50 percent of the total floor area of the mixed-use project. Rezoned sites will permit owner-occupied and rental multifamily uses by right pursuant to Government Code section 65583.2(i) for developments in which 20 percent or more of the units are affordable to lower income households and do not require a subdivision and will be selected from sites 15 through 30 in the parcel listing (Appendix A) and have the capacity for at least 16 units per site.

Objective: Create opportunity for at least 150 units of rental housing for lower income households Responsible Agency: Community Development Department
Timeline: Sites rezoned by June 30, 2024
Funding Source(s): General fund

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Association of Bay Area Governments | Bay Area Metro Center | 375 Beale Street, Suite 700 | San Francisco, CA 94105 | abag.ca.gov Statutory Language Regarding By Right
For purposes of this section and Section 65583, the phrase “use by right” shall mean that the local government's review of the owner-occupied or multifamily residential use may not require a conditional use permit, planned unit development permit, or other discretionary local government review or approval that would constitute a “project” for purposes of Division 13 (commencing with Section 21000) of the Public Resources Code. Any subdivision of the sites shall be subject to all laws, including, but not limited to, the local government ordinance implementing the Subdivision Map Act. A local ordinance may provide that “use by right” does not exempt the use from design review. However, that design review shall not constitute a “project” for purposes of Division 13 (commencing with Section 21000) of the Public Resources Code. Use by right for all rental multifamily residential housing shall be provided in accordance with subdivision (f) of Section 65589.5

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Association of Bay Area Governments | Bay Area Metro Center | 375 Beale Street, Suite 700 | San Francisco, CA 94105 | abag.ca.gov Using ADUs to Satisfy RHNA
Technical Memo
Background
Jurisdictions are allowed to use ADUs to help satisfy their RHNA requirements; however, the process is somewhat different than other aspects of the sites inventory. The standard method is to estimate the number of ADUs that will be developed in the planning period, then distribute those estimated units into each of the income categories.

Estimating Production
The estimate should be based on the average number of ADU building permits issued each year, multiplied by eight (because there are eight years in a housing element cycle). Most cities base their determination of annual ADU permits by averaging the building permits approved each year since 2019, when state law made it easier to construct the units.

There is a small amount of flexibility in the calculations. If numbers were low in 2019 but were high in 2020, 2021, and 2022, a jurisdiction could potentially use 2020-2022 as the baseline. This rationale would be bolstered if there was a logical explanation for the change, e.g., the jurisdiction further loosened regulations in 2020.

Projecting a higher number of ADUs than what has been demonstrated through permit approvals in recent years may be possible, but more challenging. A slightly larger number may be warranted if a robust, funded, and clear plan to increase production has been put in place. However, you are strongly encouraged to coordinate with HCD before deviating from the standard methodology.

ADU sites are not listed in the site inventory, rather they are summarized and tallied in their own subsection.

Determining the Income Distribution
ABAG conducted an analysis of ADU affordability and concluded that in most jurisdictions, the following assumptions are generally applicable. Many jurisdictions are choosing to use these numbers in lieu of conducting their own affordability analysis.

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Association of Bay Area Governments | Bay Area Metro Center | 375 Beale Street, Suite 700 | San Francisco, CA 94105 | abag.ca.gov Table 1. Percent of ADUs Affordable to Different Income Categories Percent Income Category
30% Very low income
30% Low income
30% Moderate income
10% Above moderate
Please contact your County Collaborative Technical Assistance Provider for more information on affordability. A few key points are summarized below:
• Use building permits issued for the estimate.
• Jurisdictions do not need to list the addresses for potential ADUs. • Make sure the assumptions in your Housing Element match the numbers reported in past year APRs.

Please visit the ABAG Housing Technical Assistance page for more information, including a webinar that covers this topic.

Sample Housing Element Write Up
The following is what a jurisdiction might include in their sites inventory section of the housing element.

Since City amended its ordinance in 2019, the number of ADUs permitted has significantly increased.

City’s ordinance goes beyond state law and allows 1,200 square foot ADUs. Additionally, the City website has an entire section devoted to ADUs with clear information about the standards and approval process. On average, the building department provides comments to completed ADU applications in 10 days.

Since 2019, the City has issued an average of 12.75 ADU permits per year, as listed below.

Year Building Permits
2017 2
2018 1
2019 10
2020 15
2021 10
2022 16 (estimate based on first 6 months)

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Association of Bay Area Governments | Bay Area Metro Center | 375 Beale Street, Suite 700 | San Francisco, CA 94105 | abag.ca.gov Based on the annual average of 12.75 ADU permits per year since 2019, the City is projecting 102 ADUs being permitted over the eight year planning period and is using ABAG’s survey data to distribute the projected units by income category:

Income Category Percentages Totals
Very low 30% 30
Low 30% 31
Moderate 30% 31
Above moderate 10% 10
Based on these calculations, the City is able to meet approximately 1/7 of its RHNA through ADUs, and must accommodate another 598 units on the sites detailed in the sites inventory. See table below for a summary:

V Low Low Mod Above Mod Total
RHNA 200 200 100 200 700
Pipeline / Approved Units 0 0 0 0 0
ADUs 30 31 31 10 102
Remaining RHNA 170 169 69 190 598
ADUs and Level of Scrutiny of Other Sites in Housing Elements Cities that are heavily dependent on redevelopment sites (or technically nonvacant sites) face more scrutiny in their lower income sites inventory. ADUs can help some cities avoid this additional scrutiny/analysis. To simplify: if greater than 50 percent of the lower income RHNA can be satisfied by vacant sites, under construction (pipeline) projects, and projected ADUs, cities can avoid the higher standard.

For example: If the lower income RHNA is 100 and there are ten units under construction and sites for ten vacant units, a jurisdiction can avoid the heightened scrutiny if ADU projections are at least 31 units for the housing element period. (Half of 100 is 50. 10 under construction plus 10 vacant plus 31 ADUs is 51, or greater than 50.)

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Attachment 2
Draft Appendix D – Vacant and
Available Sites

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TABLE OF CONTENTS
APPENDIX D VACANT AND AVAILABLE SITES............................................. D-1 D.1 Introduction...............................................................................................D-1 D.2 Regional Housing Needs Allocation......................................................D-1 D.3 Overview RHNA Strategy.......................................................................D-3 D.4 Site Inventory ............................................................................................D-3 D.5 Summary and Conclusions ...................................................................D-20 Figures
Figure D-1 Potential Sites Inventory Map.............................................................D-4 Figure D-2 Karl Avenue (Site 01A).........................................................................D-5 Figure D-3 Vineland Avenue (Site 02A) ................................................................D-6 Figure D-4 Vineland Avenue (Site 02B).................................................................D-7 Figure D-5 Vineland Avenue (Site 02C).................................................................D-8 Figure D-6 Vineland Avenue (Site 02D) ................................................................D-9 Figure D-7 Vineland Avenue (Site 02E)...............................................................D-10 Figure D-8 Vineland Avenue (Site 02F) ...............................................................D-11 Figure D-9 Vineland Avenue (Site 02G) ..............................................................D-12 Figure D-10 Vineland Avenue (Site 02H)..............................................................D-13 Figure D-11 Vineland Avenue (Site 02I)................................................................D-14 Figure D-12 Palos Verdes Drive (Site 03A)............................................................D-15 Tables
Table D-1 Monte Sereno’s Regional Housing Needs Allocation – 2023–2031 D-2 Table D-2 Monte Sereno’s Adjusted RHNA........................................................D-3 Table D-3 Vacant/Partially Vacant and Available Sites...................................D-18

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D-1 EMC Planning Group Inc.

Appendix D
Vacant and Available Sites
D.1 INTRODUCTION
The Plan Bay Area 2050 Final Blueprint1 forecasts that the nine-county Bay Area will add 1.4 million new households between 2015 and 2050. For the eight-year time frame covered by this Housing Element Update, the Department of Housing and Community Development (HCD) has identified the region’s housing need as 441,176 units. The total number of housing units assigned by HCD is separated into four income categories that cover housing types for all income levels, from very low-income households to market rate housing. This calculation, known as the Regional Housing Needs Allocation (RHNA), is based on population projections produced by the California Department of Finance as well as adjustments that incorporate the region’s existing housing need. The adjustments result from recent legislation requiring HCD to apply additional adjustment factors to the baseline growth projection from California Department of Finance, in order for the regions to get closer to healthy housing markets. To this end, adjustments focus on the region’s vacancy rate, level of overcrowding and the share of cost burdened households, and seek to bring the region more in line with comparable ones. These new laws governing the methodology for how HCD calculates the RHNA resulted in a significantly higher number of housing units for which the Bay Area must plan compared to previous cycles.

D.2 REGIONAL HOUSING NEEDS ALLOCATION
In December 2021, ABAG adopted a Final Regional Housing Needs Allocation (RHNA) Methodology. For Monte Sereno, the RHNA required to be planned for this cycle is 193 units, a slated increase from the last cycle.
1 Plan Bay Area 2050 is a long-range plan charting the course for the future of the nine-county San Francisco Bay Area. It covers four key issues: the economy, the environment, housing and transportation

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Appendix D Vacant and Available Sites
D-2 EMC Planning Group Inc.

RHNA Summary
Monte Sereno’s share of the regional housing need for the seven-year period from 2023 to 2031 is 193 units, which is a 316 percent increase over the 61 units required by the 2014 to 2022 RHNA. The housing need is divided into the five income categories of housing affordability. Table D-1 shows Monte Sereno’s RHNA for the planning period 2023 through 2031 in comparison to the RHNA distributions for Santa Clara County and the Bay Area region.

Table D-1 Monte Sereno’s Regional Housing Needs Allocation – 2023–2031 Income
Group
Monte
Sereno
Units
Percent
Santa
Clara
County
Units
Percent Bay Area
Units Percent
Very Low
Income (<50%
of AMI)
53 27.5% 32,316 24.9% 114,442 25.9%
Low Income
(50%-80% of
AMI)
30 15.5% 18,607 14.4% 65,892 14.9%
Moderate
Income (80%-
120% of AMI)
31 16.1% 21,926 16.9% 72,712 16.5%
Above
Moderate
Income
(>120% of AMI)
79 40.9% 56,728 43.8% 188,130 42.6%
Total 193 100.0% 129,577 100.0% 441,176 100.0%
SOURCE: ABAG 2021
Progress to Date
The RHNA planning period for the 2023-2031 Housing Element (6th Cycle) is June 30, 2022 through December 31, 2030. The statutory adoption date for the 6th Cycle Housing Element is January 1, 2023—a full six months after the beginning of the planning period. To account for this discrepancy, the City of Monte Sereno must account for the number of housing units permitted prior to adoption of the 6th Cycle Housing Element and apply these to the 2023- 2031 RHNA. Accordingly, the units permitted in this period count towards the 2023-2031 planning period RHNA and are subtracted from the 6th-Cycle RHNA. Table D-2 shows the City of Monte Sereno’s adjusted RHNA, which accounts for progress made prior to the adoption of the updated Housing Element document.

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Monte Sereno 6th Cycle Housing Element Update
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Table D-2 Monte Sereno’s Adjusted RHNA
Very LowIncome
Units
LowIncome
Units
ModerateIncome
Units
Above
ModerateIncome
Units
Total
Units
2023–2031 RHNA 53 30 31 79 193
Units permitted between June
30, 2022 and January 1, 2023
Remaining RHNA
SOURCE: City of Monte Sereno 2014
NOTE:

D.3 OVERVIEW RHNA STRATEGY
[Discuss the HESS tool and related tools used to build consensus on housing sites inventory] D.4 SITE INVENTORY
The purpose of the sites inventory is to identify and analyze specific sites that are available and suitable for residential development from 2023-2031 in order to accommodate Monte Sereno’s assigned 193 housing units. The City doesn’t build the housing but creates the programs and policies to plan for where it should go and how many units could be on potential sites.

Overview of Selected Sites
This section provides information on the current list of potential sites under consideration for determining how the City will accommodate the State’s required minimum of 193 housing units. Please note that the site numbers listed here are added only as an additional way to reference the site and easily label it on a map. The site number is not any indication of preference or priority. Figure D-1 shows an overview of the potential sites inventory map being developed for Monte Sereno’s 6th-Cycle Housing Element Update.

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Appendix D Vacant and Available Sites
D-4 EMC Planning Group Inc.

Figure D-1 Potential Sites Inventory Map
Sites Details
This section provides information on each of the sites selected for inclusion in the inventory of vacant/partially vacant and available sites.

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Site 01A: Karl Avenue
Address: 15191 Karl Avenue
Minimum Number of Housing Units: 10
“By Right” + 20% Affordable: Required – Used in previous cycle Description: The Karl Avenue 01A site is located in the Karl Avenue neighborhood, which is characterized by single-family residential homes on large lots. Current use of the site includes open space, and neighboring uses include large-lot single-family dwellings.

The single-family dwellings built on this site would each include an accessory dwelling unit (ADU) affordable to very low-income residents. This site contains one existing single-family dwelling; the net total net new units (SFDs + ADUs) on this site would be 10 units, five (5) of which would be affordable.

Constraints: slope; heritage trees; neighboring single-family residential uses Figure D-2 shows an aerial view of the Karl Avenue 01A Site.

Figure D-2 Karl Avenue (Site 01A)

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Appendix D Vacant and Available Sites
D-6 EMC Planning Group Inc.

Site 02A: Vineland Avenue
Address: 17821 Vineland Avenue
Minimum Number of Housing Units: 9
“By Right” + 20% Affordable: Not Required – Not used in previous cycle Description: The Vineland Avenue 02A site is located in the Vineland Avenue neighborhood, which is predominately defined by single-family residential homes on large lots. Current use of the site includes a large single-family dwelling. Neighboring uses include open space and large single-family dwellings. This site has been targeted for rezoning to five (5) dwelling units per acre (R-1-8), and each single-family dwelling would include an ADU affordable to very low-income residents. This site contains one existing single-family dwelling; the net total new units (SFDs + ADUs, minus existing) would be seven (9) dwelling units, five (5) of which would be affordable.

Constraints: rezoning required; neighboring single-family residential uses Figure D-3 shows an aerial view of the Vineland Avenue 02A Site.

Figure D-3 Vineland Avenue (Site 02A)

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Site 02B: Vineland Avenue
Address: 17795 Vineland Avenue
Minimum Number of Housing Units: 9
“By Right” + 20% Affordable: Not Required – Not used in previous cycle Description: The Vineland Avenue 02B site is located in the Vineland Avenue neighborhood, which is predominately defined by single-family residential homes on large lots. Current use of the site includes a large single-family dwelling. Neighboring uses include open space and large single-family dwellings. The single-family dwelling would include an ADU affordable to very low-income residents. This site contains one existing single-family dwelling; the net total new units (SFD + ADU, minus existing) would be nine (9) dwelling unit, five (5) of which would be affordable.

Constraints: rezoning required; neighboring single-family residential uses Figure D-4 shows an aerial view of the Vineland Avenue 02B Site.

Figure D-4 Vineland Avenue (Site 02B)

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Appendix D Vacant and Available Sites
D-8 EMC Planning Group Inc.

Site 02C: Vineland Avenue
Address: 17771 Vineland Avenue
Minimum Number of Housing Units: 14
“By Right” + 20% Affordable: Not Required – Not used in previous cycle Description: The Vineland Avenue 02C site is located in the Vineland Avenue neighborhood, which is predominately defined by single-family residential homes on large lots. Current use of the site includes open space. Neighboring uses include large single-family dwellings. The single-family dwelling would include an ADU affordable to very low-income residents. The net total new units (SFD + ADU) would be fourteen (14) dwelling units, seven (7) of which would be affordable.

Constraints: rezoning required; neighboring single-family residential uses.

Figure D-5 shows an aerial view of the Vineland Avenue 02C Site.

Figure D-5 Vineland Avenue (Site 02C)

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Site 02D: Vineland Avenue
Address: 17705 Vineland Avenue
Minimum Number of Housing Units: 3
“By Right” + 20% Affordable: Not Required – Not used in previous cycle Description: The Vineland Avenue 02D site is located in the Vineland Avenue neighborhood, which is predominately defined by single-family residential homes on large lots. Current use of the site includes a large single-family dwelling. Neighboring uses include open space and large single-family dwellings. This site has been targeted for rezoning to five (5) dwelling units per acre (R-1-8), and the single-family dwelling would include an ADU affordable to very low-income residents. This site contains one existing single-family dwelling; the net total new units (SFD + ADU, minus existing) would be three (3) dwelling units, two (2) of which would be affordable.

Constraints: rezoning required; neighboring single-family residential uses Figure D-6 shows an aerial view of the Vineland Avenue 02D Site.

Figure D-6 Vineland Avenue (Site 02D)

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Appendix D Vacant and Available Sites
D-10 EMC Planning Group Inc.

Site 02E: Vineland Avenue
Address: 15445 Karl Avenue
Minimum Number of Housing Units: 3
“By Right” + 20% Affordable: Not Required – Not used in previous cycle Description: The Vineland Avenue 02E site is located in the Vineland Avenue neighborhood, which is predominately defined by single-family residential homes on large lots. Current use of the site includes a large single-family dwelling. Neighboring uses include large single-family dwellings. This site has been targeted for rezoning to five (5) dwelling units per acre (R-1-8), and the single-family dwelling would include an ADU affordable to very low-income residents. This site contains one existing single-family dwelling; the net total new units (SFD + ADU, minus existing) would be three (3) dwelling units, two (2) of which would be affordable.

Constraints: rezoning required; neighboring single-family residential uses Figure D-7 shows an aerial view of the Vineland Avenue 02E Site.

Figure D-7 Vineland Avenue (Site 02E)

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Site 02F: Vineland Avenue
Address: 15420 Karl Avenue
Minimum Number of Housing Units: 9
“By Right” + 20% Affordable: Not Required – Not used in previous cycle Description: The Vineland Avenue 02F site is located in the Vineland Avenue neighborhood, which is predominately defined by single-family residential homes on large lots. Current use of the site includes a large single-family dwelling. Neighboring uses include large single-family dwellings. This site has been targeted for rezoning to five (5) dwelling units per acre (R-1-8), and each single-family dwelling would include an ADU affordable to very low-income residents. This site contains one existing singlefamily dwelling; the net total new units (SFDs + ADUs, minus existing) would be nine (9) dwelling units, five (5) of which would be affordable.

Constraints: rezoning required; neighboring single-family residential uses Figure D-8 shows an aerial view of the Vineland Avenue 02F Site.

Figure D-8 Vineland Avenue (Site 02F)

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Appendix D Vacant and Available Sites
D-12 EMC Planning Group Inc.

Site 02G: Vineland Avenue
Address: 17597 Vineland Avenue
Minimum Number of Housing Units: 9
“By Right” + 20% Affordable: Not Required – Not used in previous cycle Description: The Vineland Avenue 02G site is located in the Vineland Avenue neighborhood, which is predominately defined by single-family residential homes on large lots. Current use of the site includes a large single-family dwelling. Neighboring uses include large single-family dwellings. This site has been targeted for rezoning to five (5) dwelling units per acre (R-1-8), and each single-family dwelling would include an ADU affordable to very low-income residents. This site contains one existing singlefamily dwelling; the net total new units (SFDs + ADUs, minus existing) would be nine (9) dwelling units, five (5) of which would be affordable.

Constraints: rezoning required; neighboring single-family residential uses Figure D-9 shows an aerial view of the Vineland Avenue 02G Site.

Figure D-9 Vineland Avenue (Site 02G)

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Monte Sereno 6th Cycle Housing Element Update
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Site 02H: Vineland Avenue
Address: 17585 Vineland Avenue
Minimum Number of Housing Units: 9
“By Right” + 20% Affordable: Not Required – Not used in previous cycle Description: The Vineland Avenue 02H site is located in the Vineland Avenue neighborhood, which is predominately defined by single-family residential homes on large lots. Current use of the site includes a large single-family dwelling. Neighboring uses include large single-family dwellings. This site has been targeted for rezoning to five (5) dwelling units per acre (R-1-8), and each single-family dwelling would include an ADU affordable to very low-income residents. This site contains one existing singlefamily dwelling; the net total new units (SFDs + ADUs, minus existing) would be nine (9) dwelling units, five (5) of which would be affordable.

Constraints: rezoning required; neighboring single-family residential uses Figure D-10 shows an aerial view of the Vineland Avenue 02H Site.

Figure D-10 Vineland Avenue (Site 02H)

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Appendix D Vacant and Available Sites
D-14 EMC Planning Group Inc.

Site 02I: Vineland Avenue
Address: 17551 Vineland Avenue
Minimum Number of Housing Units: 9
“By Right” + 20% Affordable: Not Required – Not used in previous cycle Description: The Vineland Avenue 02I site is located in the Vineland Avenue neighborhood, which is predominately defined by single-family residential homes on large lots. Current use of the site includes a large single-family dwelling. Neighboring uses include large single-family dwellings. This site has been targeted for rezoning to five (5) dwelling units per acre (R-1-8), and each single-family dwelling would include an ADU affordable to very low-income residents. This site contains one existing singlefamily dwelling; the net total new units (SFDs + ADUs, minus existing) would be nine (9) dwelling units, five (5) of which would be affordable.

Constraints: rezoning required; neighboring single-family residential uses Figure D-11 shows an aerial view of the Vineland Avenue 02I Site.

Figure D-11 Vineland Avenue (Site 02I)

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Site 03A: Palos Verdes Drive
Address: 15541 Palos Verdes Drive
Minimum Number of Housing Units: 2
“By Right” + 20% Affordable: Not Required – Not used in previous cycle Description: The Palos Verde 03A site is located in the Palos Verde Drive neighborhood, which is predominately defined by single-family residential homes on large lots. Current use of the site includes two single-family dwellings. Neighboring uses include large single-family dwellings. Each single-family dwelling would include an ADU affordable to very low-income residents. This site contains two existing single-family dwellings; the net total new units (SFDs + ADUs, minus existing) would be two (2) dwelling units, two (2) of which would be affordable.

Constraints: neighboring single-family residential uses Figure D-12 shows an aerial view of the Palos Verdes Drive 03A Site.

Figure D-12 Palos Verdes Drive (Site 03A)

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Appendix D Vacant and Available Sites
D-16 EMC Planning Group Inc.

Accessory Dwelling Units (ADUs and Junior ADUs)
Address: Various Locations
Minimum Number of Housing Units: 88
“By Right” + 20% Affordable: Not required – Instead, formula exists for projecting the next 8-year cycle, along with assumption of 30%, 30%, 30%, 10% affordability with categories.

Description: Secondary units according to ADU Ordinance Constraints: To have HCD consider more than 88 units as a reasonable expectation for construction in this eight-year cycle, either relaxation of current ordinance and/or property owner declared interest in excess of the projected number of units (88).

Secondary Units with SB-9 (Duplexes, Lot splits)
Address: Various Locations
Minimum Number of Housing Units: Dependent on Property Owner Interest “By Right” + 20% Affordable: Not required – Not used in previous cycle Description: Secondary units according to the SB-9 Ordinance Constraints: To have HCD consider SB-9 units as a reasonable expectation for construction in this eight-year cycle, either relaxation of current ordinance and/or property owner declared interest is necessary.

Inventory of Vacant/Partially Vacant and Available Sites This section provides the formal inventory of sites that the City of Monte Sereno will rely on in the 6th housing element planning cycle. Per state law and Housing Policy, the City is required to maintain “no net loss” of the housing capacity represented by this list of parcels and the sites they comprise. To facilitate this, the inventory presented below has been designed with excess capacity.2 This allows some degree of flexibility in decision making for individual development projects as they come forward for approval by City Council. 2 Excess capacity is primarily comprised of the development potential created by SB9, which allows owners of a single-family property to divide their property into two parcels. Each of these parcels would then have the capacity for three units each— the main residence, plus and ADU and a Junior ADU.

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Monte Sereno 6th Cycle Housing Element Update
EMC Planning Group Inc. D-17
In short, with some limited flexibility, the City is committed to permitting housing on each of the parcels listed in the table below, and in so doing ensuring that the number of units listed for each parcel in the table—"planned capacity”—is achieved. Should the City approve development that is inconsistent with the parcel’s planned capacity, it is then required as part of that approval to:

1. Find, based on quantitative evidence, that the remaining inventory of housing sites is still sufficient to meet the City’s 6th Cycle RHNA, or

2. Identify one or more available sites with the realistic development capacity to replace the housing that would have otherwise been developed had consistency with planned capacity been achieved.

Table D-3 provides details and capacity estimates for each of the parcels that comprise the 11 housing sites identified in the section above.

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Table D-3 Vacant/Partially Vacant and Available Sites
Site
#
Site
Address/Intersection
Zoning
Designation
(Current)
Zoning
Designation
(New)
Minimum
Density
Allowed
(units/acre)
Parcel
Size
(Gross
Acres)
No. of
Existing
Units
Very
LowIncome
Capacity
Lower
Income
Capacity
Moderate
Income
Capacity
Above
ModerateIncome
Capacity
(Net)
Total
Capacity Comments
1A 15191 Karl Ave R-1-44 same 1.0 5.61 0 10 10
Assume 5.61 acres of

10.4-acre site
developed
2A 17821 Vineland Ave R-1-44 R-1-8 5.4 1.08 1 9 9
2B 17795 Vineland Ave R-1-44 R-1-8 5.4 1.00 1 9 9
2C 17771 Vineland Ave R-1-44 R-1-8 5.4 1.32 0 14 14
2D 17705 Vineland Ave R-1-44 R-1-8 5.4 0.48 1 3 3
2E 15445 Karl Ave R-1-44 R-1-8 5.4 0.52 1 3 3
2F 15420 Karl Ave R-1-44 R-1-8 5.4 0.97 1 9 9
2G 17597 Vineland Ave R-1-44 R-1-8 5.4 0.98 1 9 9
2H 17585 Vineland Ave R-1-44 R-1-8 5.4 1.01 1 9 9
2I 17551 Vineland Ave R-1-44 R-1-8 5.4 1.01 1 9 9
3A 15541 Palos Verdes Dr R-1-20 same 2.0 1.00 2 2 2 Page 165 of 244 ADUs 27 27 26 8 88
Monte Sereno 6th Cycle Housing Element Update
EMC Planning Group Inc. D-19
Site
#
Site
Address/Intersection
Zoning
Designation
(Current)
Zoning
Designation
(New)
Minimum
Density
Allowed
(units/acre)
Parcel
Size
(Gross
Acres)
No. of
Existing
Units
Very
LowIncome
Capacity
Lower
Income
Capacity
Moderate
Income
Capacity
Above
ModerateIncome
Capacity
(Net)
Total
Capacity Comments
SB9 ? ? ? ? ?
Based on responses
from Property Owner
Interest letter
Total 27 27 26 94 174 90%
RHNA 53 30 31 79 193
Diff -26 -3 -5 +15 -19
SOURCE: City of Monte Sereno; EMC Planning Group Inc.

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Monte Sereno 6th Cycle Housing Element Update
EMC Planning Group Inc. D-20
D.5 SUMMARY AND CONCLUSIONS
The vacant, partially vacant, and underutilized sites identified in this report are sufficient to accommodate approximately 90 percent of the Monte Sereno’s Regional Housing Needs Allocation for the 6th-Cycle planning period. This 90 percent does not accommodate the recommended buffer of 15 to 30 percent above RHA, which would equal capacity for between 29 to 58 additional units. This “cushion” for capacity above the base RHNA number is highly recommended because of the state’s no-net-loss policy, which precludes jurisdictions from approving development that results in an overall housing site deficit. The “cushion” essentially provides a degree of flexibility for policy makers as they make development decisions. Many of the sites identified in this report have existing uses that would need to be demolished before new housing could be constructed.

For communities like Monte Sereno that are largely built out and surrounded on all sides by other communities, redevelopment and densification is the only practical solution to providing a fair share of future housing for the San Francisco Bay Area. By its nature, such redevelopment is more costly and more time consuming than building new units on vacant land. To offset these constraints, modestly higher densities are proposed in some areas.

These higher densities act as a market incentive to offset the added cost and time required build new housing on redeveloped sites. Property owner interest will be pivotal for facilitating single-family site opportunities to policies to add housing through Senate Bill 9 (SB – 9), which allows for up to four units on a property zoned for a single house.

Monte Sereno’s unique built environment, which is nearly exclusively zoned for singlefamily neighborhoods, has been taken into consideration with this plan to accommodate future housing with minimum impact. Transformation in Monte Sereno through the next eight-year Housing Element cycle may continue to appear incremental, with sustained massing and scale limitations, evocative of a suburban bedroom community.

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Attachment 3
Housing Element Project Schedule

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Activity Name
October November December January February March April May June July August September October November December January 2021 2022 2023
October November December January February March April May June July August September October November December January Project Start
HE Data & Background
Site Exploration
CC/AS Introduction
Draft Site Options Report
Stakeholder Meeting 1
Draft HE Programs
Community Meeting 1
Ad Draft HE / SE
Community Meeting 2
AS Report - HE Draft
HE Revisions
CC Report for HE Draft
AB-215 Notice
HCD 90-day Review
Ad Draft CEQA
Stakeholder Meeting 2
Draft CEQA Public Review
HE Revisions
Final EIR
PC Hearing
Stakeholder Meeting 3
CC Hearing
HE Revisions
CEQA NOD Filing
Final HE Revisions
File HE with HCD
1 2
3 4
5 6
7 8
9 10
11 12
13 14
15 16
17 18
19 20
21 22
23 24
25 26
27 February 15, 2022
City of Monte Sereno Housing Element Update
Updated Schedule November 30, 2021

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City Council Meeting
April 19th, 2022

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• Monte Sereno’s Strategies for Sites
• Discussion
Agenda

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www.athomeinmontesereno.com
Dedicated Housing Element Website

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Income Group Units Percentage
Very Low Income
(<50% of AMI) 53 27.5%
Low Income
(50-80% of AMI) 30 15.5%
Moderate Income
(80-120% of AMI) 31 16.0%
Above Moderate Income
(>120% of AMI) 79 41.0%
Total 193 100%
RHNA for Monte Sereno’s 6th Cycle Housing Element
AMI: Area Median Income

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Monte Sereno’s Timeline
Spring
Summer Winter
Fall
April 23
Workshop
Ongoing

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One important component of the Housing Element
process and final policy document.

A specific list of sites that demonstrates to HCD
where and how the City plans to accommodate
the assigned 193 housing units within the
2023-2031 planning period.

What is a Sites Inventory?

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1. Rezone 9 sites on Vineland Ave from R-1-44 to
R-1-8 to reduce lot sizes from 1 acre to 1/5 acre.

2. Require all new single-family housing to include at
least one (1) ADU to ensure affordability variety.

These two strategies are not enough, only
achieving 90% of the required 193 units.

Creative Strategies for Monte Sereno

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Reasonable Sites for Future Housing
Clarity and
predictability
of permitting
Community
support
Owner
interest to
develop

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What is SB-9?
Legislation passed in 2021
• Facilitates the creation
of up to 4 housing units in
the lot area typically
used for 1 single-family
home.
• Cities may limit the unit
size to 800 square feet.

Image Source: County of Santa Clara
Department of Planning and Development

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• Online site surveys
• Property Owner Interest Form
• www.athomeinmontesereno.com
• Comments/ suggestions/ questions
Ways to Provide Feedback on Sites

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Having a robust plan for Monte Sereno’s
secondary housing unit potential can
help achieve RHNA # of 193.

Monte Sereno residents can help
increase the likelihood of HCD approval.

Fill out our Property Owner Interest Form
to learn more about the process of adding
a secondary housing unit to your property.
https://forms.gle/9vv2HDcUJNh7KbVY6
Property Owner Interest Form

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www.athomeinmontesereno.com
Discussion and
Feedback

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Join us this Saturday!
Housing Element Community Workshop
April 23rd, 2-4pm
via Zoom
Visit www.athomeinmontesereno.com
for more information.

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www.athomeinmontesereno.com
Thank you!

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STAFF REPORT
Meeting: City Council - Apr 19 2022
Agenda Heading: NEW BUSINESS
Staff Contact: Steve Leonardis,
Department: City Manager
Title: Consider and Accept the City Manager's Quarterly Report Recommendation(s):

Staff recommends that the City Council consider and accept the City Manager's quarterly report.

Fiscal Impact:

There are no unbudgeted fiscal impacts with this agenda item.

Public Noticing:

The City Council’s agenda was posted at City Hall and the agenda and this report appear on the City’s website.

Attachments:

Jan-Mar 2022 Mgr's report
The City of Monte Sereno FY 2022-23 Budget Kick-Off Memorandum (Final 03-01-2022) Info Brochure
Sample Public Hearing Notice

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City Manager’s Report
01/01/2022 – 03/31/2022
Building permit activity for the last quarter was as follows:

January-March 2022
Permits/Inspections
Building Permits Issued 137
Construction Valuation $14,697,414
Building Permit Revenue $420,952
Inspection Completed 203
Building Department Information Brochures and Web Page
Monte Sereno staff is currently updating the Building Department web page to re-organize the information into a more customer-friendly format. Additionally, 15 information brochures have been developed to assist customers with code requirements, permitting, and inspection information for common remodel projects (i.e./ kitchen remodel, water heater replacement, re-roof etc). These information brochures will be placed on the web page and samples of these are included in this report.

Building Department Standardized Plan Check Notes
Staff has developed standardized plan check notes for various project types. These notes are placed on the plans to ensure the contractor is aware of the requirements for the specific project as well as to assist the field inspector in referencing requirements during inspections. These standardized notes will reduce the plan review time and expedite the permit issuance timeframe as staff will not need to provide comments to a project applicant asking for the designer to note such requirements.

Updated Public Hearing Notices
Staff has updated the format and information provided on public hearings notices. These notices are mailed to surrounding property owners as well as posted at the project site for Planning projects that require a public hearing. The notices have been modified to prominently show the meeting information and project description. Also, a location map of the project site has been added. Attached is a sample of the updated notice.
18041 Saratoga-Los Gatos Road
Monte Sereno, California 95030-4299
Telephone: 408.354.7635
Fax: 408.395.7653
www.cityofmontesereno.org

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Housing Element
Staff continues to work extensively with EMC Planning Group on the Housing Element update.

Feedback and direction were provided by the Site and Architectural Commissioners and City Councilmembers at a Joint Study Session in February. An article was published in the Spring 2022 Peaceful Mountain Monitor to inform the community about this project and seek their input. The draft Sites Inventory is currently underway, and the draft programs/policies will follow shortly after. These will be presented in the coming months to the City Council for input and direction.

The project web site provides information about the Housing Element, offers ways to participate in the update process, and includes community surveys about the future housing in the city. The web site is:
www.AtHomeinMonteSereno.com
City Clerk Highlights
• Continued implementation of Boards and Commissions module on iCompass. This module is approximately 80% complete; the iCompass programmers are updating format, questions, and output of application details per consultation with the City Clerk on April 11, 2022. • Continued Records Management Project which includes identifying off-site storage facilities and looking into electronic file management best practices. This project is ongoing. • Continued work on the Monte Sereno-branded SeeClickFix application. The new name of it is Fix It Monte Sereno and it is expected to go live on the Google Play and Apple App Stores on April 13.
• Continued work on the City’s Records Management project. Have acquired an off-site storage location for storing permanent records and have sent approximately 20 boxes out for off-site storage.
• Deputy City Clerk Gonzales-Langarica attended two training conferences for her Certified Municipal Clerk designation.

Neighborhood Improvement Projects/Pavement Management Program Construction of new curb and gutter and paving on Clara Street and Natalye Road was completed by McKim Corporation in February. With the completion of the La Rinconada Neighborhood Improvement Project three of the City’s worst condition streets (average PCI of 46) have been brought up to a PCI of 100.

The City of Monte Sereno has received the final Pavement Management Program PTAP 22 Budget Options Report. The PMP update indicates that the City’s overall PCI has increased three points, from 69 in 2019 to 72 in 2021 which is in the “good” category. There is a total of eight streets, or approximately one mile of streets, in “poor” condition in the city (a decrease from 18 streets in 2019), there are no streets in “very poor” condition. Staff will be presenting the full results of this report at the May 3, 2022 Council meeting.

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The City of Monte Sereno has contracted with KTUA to complete the Bicycle and Pedestrian Master Plan Updates and preliminary research and field work is nearly complete. A project specific webpage will be launched in late spring for the community to provide feedback on the Plan update via map and survey. KTUA will attend the “Picnic in the Park” on August 21, 2022 to host an information table for community input. Existing conditions, community input to date, and draft recommendations will be presented on boards, and community input collected via a dot voting exercise.

The City of Monte Sereno’s Budget Process – FY 2022-2023 Attached for your information is the annual budget process calendar. The Monte Sereno annual budgeting process is a year-long endeavor. The process never ends as one fiscal year concludes; another begins. Included is a sample of the structured process being employed to help create the current Monte Sereno FY 2022-2023 budget cycle, which includes inputs from all city departments.

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1 | P a g e
March 1, 2022
To: All Staff
From: Steve Leonardis, City Manager
Cc: Reynold Samoranos, Financial and Administrative Officer RE: FY 2022-23 Annual Budget Kick-Off Memorandum
The City of Monte Sereno’s Budget Process – FY 2022-23
The annual budget process is the period for reviewing the organization’s existing resources and requests needed to meet the City of Monte Sereno’s mission, strategic plan, and business plan priorities. The strategic goals of the organization, the mission of the City of Monte Sereno, and the priorities of our stakeholders are incorporated into the budget process.

Pursuant to the City of Monte Sereno’s Budget Policy, the City of Monte Sereno’s budget is a financial plan for the spending and allocation of resources needed to meet the organization’s mission, vision, and values necessary to build and maintain high quality services that are economically efficient. The City directly provides administrative services; building permits and inspections; planning and design review; engineering and public works; city clerk and election services; and finance. The rigorous budget process is an ongoing budget planning activity that considers the priorities of the organization as well as the City of Monte Sereno’s values and mission as the basis for determining how and where to use resources and be the best steward of public funds.

The City of Monte Sereno’s has two formal budget processes during the fiscal year -- the Annual and Mid-year Budget processes.

Annual Budget
• Annual Fiscal Year budget
• Fiscal Year July 1st - June 30th
• Preliminary Budget approval in May of each year
Mid-Year Budget
• Six-month funding source
• For City Council directed, unanticipated, emergency Mid-Year needs and realistic assumptions.
• Budget approval in December of each year
The annual budget process is designed to review the organization’s existing operational resource needs to maintain current service levels, as well as prioritize resource requests for new services, initiatives and projects required to meet the City of Monte Sereno’s mission, strategic goals, and business plan priorities.

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2 | P a g e
The City’s budget process usually begins in January of each year with the release of the Financial Office’s Annual Budget Kick-off Memo to department team leaders that provides a universal message detailing instruction, budget policy direction, and communication of expectations and objectives. This year with all the changes in Monte Sereno Staff and the changing pandemic world events, some of the steps in a regular budget process has been skipped. Accordingly, I’m asking for your revenue and expenditure FY 2022-23 Budget information that pertains specifically to your department area.

FY 2022-23 Operating and Capital Budget
Calendar of Action Items
Deliverable
Date Action Items Delivered by
March 22,
2022
City Council sets Mission, Strategic Goals and Business Plan Priorities for FY 2022-23 - Start with a vision, goals, and a strategic plan City Council April 11, 2022
All City Departments create their budgets with an eye towards the vision, goals and strategic objectives established above and submit to the Finance Department for review and consolidation.

All
Department
Team
Leaders
April 13, 2022 Finance department meets with the City Manager to discuss department budget requests and Finance Department’s budget analysis and recommendations. SL, RS April 26, 2022 Finance Department completes preparation of the proposed operating and capital budget documents based on the City Manager’s direction. RS May 17, 2022
The City Manager releases and presents the proposed operating and capital budgets to the City Council and posts the budget document on the City’s website. The City of Monte Sereno conducts a series of public hearings and recommends the budget with or
without amendments by City Council.

SL
June 21, 2022
Final Adoption: Fiscal Year 2022-23 Proposed Budget document and supplemental materials distributed to the City Council, City Manager, and are made available for public review at several City locations and on the City’s website.

City Council
July 1, 2022 Final Approved FY 2022-23 Budget posted on City’s website MB February 10,
2023
The mid-year budget process is to amend the approved budget to reduce funds needed or request additional funds if Board-directed, critical, emergency, unforeseen circumstances, or an assumption becomes more realistic arise, after the start of the new fiscal year requiring funding in the current year.

All
Department
Team
Leaders
March 5, 2023
Finance Department completes preparation of the proposed Mid-Year Operating and Capital Budget documents based on the City Manager’s direction.

RS
February 20,
2023
The City Manager releases and presents the proposed operating and capital budgets to the City Council and posts the budget document on the City’s website. The City Council conducts a series of public hearings and recommends the budget with or without amendments by the City Council.

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3 | P a g e
March 15,
2022 City Council adopts FY 2022-23 Mid-Year Budget City Council Deliverable Date: March 22, 2022
Start with a vision, goals, and a strategic plan. The budget supports what a municipality and its citizens want to accomplish – now and in the future. Therefore, a successful budget process should begin with city leaders articulating a clear vision, identifying community and department goals, and undertaking a strategic plan that will help mitigate conflicting goals. While it is important for leaders to push the vision forward, it is also important for citizen input to inform and guide that vision as it develops.

1. _____________________________________________________

2. _____________________________________________________

3. _____________________________________________________

4. _____________________________________________________

5. _____________________________________________________ Prioritize. Choose to focus on addressing key challenges in a given budget year.

Attempting to tackle everything at once is not only inefficient, but it also commonly leads to staff burnout. Identify a focus area and come up with a clear strategy to address it, taking care to report the results back to the community.

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4 | P a g e
Deliverable Date: April 11, 2022
Empower and foster collaboration among internal departments. In creating a budget, it is important for all department staff to understand the vision and goals underlying it, as well as how their departments factor into achieving those goals.

Garnering buy-in across departments occurs when staff at all levels are engaged from the outset of the budget planning process and when they can collaborate easily on budget requests and revisions. Each department leader lists their department’s goals and objectives as they relate to the initiatives listed in Item #2.

Building Department

1.______________________________________________________

2.______________________________________________________

3.______________________________________________________ City Clerk

1.______________________________________________________

2.______________________________________________________

3.______________________________________________________ City Manager

1.______________________________________________________

2.______________________________________________________

3.______________________________________________________ Engineering Department

1.______________________________________________________

2.______________________________________________________

3.______________________________________________________

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5 | P a g e
Finance Department

1.______________________________________________________

2.______________________________________________________

3.______________________________________________________ Planning Department

1.______________________________________________________

2.______________________________________________________

3.______________________________________________________ Administrative Support – Front Counter

1.______________________________________________________

2.______________________________________________________

3.______________________________________________________

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6 | P a g e
Deliverable Date: April 26, 2022
All City Departments create their budgets with an eye towards the vision, goals and strategic objectives established above and submit to the Finance Department for review and consolidation. The Finance Officer will work collaboratively with department team leaders through this process to analyze the operational needs of the organization while ensuring alignment with The City of Monte Sereno’s strategic goals and business plan.

Programs requesting resources related to new services, initiatives, and projects submit detailed formal budget request documents should be included in department submittal to the Finance Department. Please provide budget information that pertains to your department (Green Cells).
(See attached Excel Budget spreadsheet for each department).

Revenue – Detailed line by line budgeting
Expenditures – Detailed line by line budgeting

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7 | P a g e
Major Capital Projects
Provide the following on Major Capital Projects:

1. Name

2. Describe Purpose

3. Source Funding

4. Duration
Deliverable Date: April 13, 2022
Finance Officer meets with City Manager to review submitted departmental budgets. They discuss and collaborate with department team leaders, all submissions will be reviewed and discussed with the City Manager prior to the final proposed budget being submitted to the City Council for review and consideration.

Deliverable Date: April 26 2022
The Finance Officer will then conduct a thorough analysis of the formal budget requests as part of the technical preparation of the budget. All program areas participate in the budget preparation process, including the development of programs and services consistent with the vision, goals and strategic plan for the new fiscal year.

The City of Monte Sereno’s development of budget requests specify anticipated resources to carry out those programs and services while considering strategic planning goals and objectives, cost efficiencies, risks, business planning initiatives, City Council mandates, and workload capacity.

Deliverable Date: May 17 2022
The City Manager releases and presents the proposed operating and capital budgets to the City Council and posts the budget document on the City’s website. The City conducts a series of public hearings and recommends the budget with or without amendments to the City Council.

Deliverable Date: June 21, 2022

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8 | P a g e
Final Adoption: Fiscal Year 2022-23 Proposed Budget document and supplemental materials distributed to the City Council, Executive Team, and budget representatives and are made available for public review at several City locations and on the City’s website
Should you have any questions regarding this budget process, please contact Steve Leonardis, City Manager or Reynold Samoranos, Financial and Administrative Officer for clarification or discussion.

We look forward to working with you,
Steve Leonardis, City Manager
Cc: Reynold Samoranos
Financial and Administrative Officer
Steve Leonardis, City Manager

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9 | P a g e
Revenue FY 2018-19
Actual
Mid-Year
Budget
FY 2019-20
Draft Budget
FY 2022-23
01-202 Property tax (secured)
2289128

2,187,726
01-204 Property tax (unsecured)
93,250

87,011
01-210 Property tax (homeowner
exemption)

5,504

4,841
01-214 SB813
49,745

23,003
03-316 Direct Assessment(teeter)
181,467

183,150
40-366 Secured
2,143

1,950
40-368 Unsecured
145

127
40-370 Homeowners Exemption
9 10
40-378 SB813
78 72
50-402 Secured
1,447

1,500
3010 Property Tax
2,152,154

2,489,389
01-296 Sales & Use tax (state)
15,516

8,926
3011 Sales Tax
15,516

8,926
12-328 2107 Revenue
79,715

93,605
12-333 SB-1 Gas Tax
59,063

62,797
3012 Total Gas Tax
138,778

156,402
01-262 Franchise tax gas
17,610

17,600
01-263 Franchise tax electric
37,567

37,700
01-264 Franchise tax water
29,571

29,600
01-266 Franchise tax refuse

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10 | P a g e
122,493 120,174
01-267 Recycle HHW & JPA fees
31,680

31,745
01-268 Franchise tax cable tv
73,271

73,734
06-270
-

-
3013 Total Franchise Fees
312,193

310,552
01-222 Real Property Transfer
Tax

71,636

66,118
3014 Real Property Transfer
71,636

66,118
01-231 SB1186 fees
2,000

1,896
01-232 Business Licenses
33,580

33,008
01-234 Construction Tax
19,130

41,475
01-235 SMIP
2,149

4,516
01-236 Building Permits
422,964

525,000
01-237 Grading Permits
30,855

50,053
01-238 SB1473 (BSASRF)
707

1,086
01-240 Subdivision fees
3,350

3,000
01-242 Zoning fees
56,600

50,060
01-244 Encroachment permits
57,319

50,000
01-245 Community Planning Fee
29,068

65,921
3015 Licenses and Permit Fees
657,722

826,016
01-293 Alarm Soundings fees
200

800
05-322 Traffic Safety fines
3,381

3,392
3016 Fines
3,581

4,192
01-282 Interest (general)
134,451

122,190
12-332 Interest
3,128

3,228
3017 Investment Income

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11 | P a g e
137,580 125,418
01-287T AB939 Recycle revenue
1,551

1,902
01-288 AVASA (abandon
vehicles)

1,622

377
01-300 Motor vehicle (state)
1,742

1,750
03-318 COPS grant revenue
100,000

100,000
05-323 Miscellaneous
28,367

172,406
3018 Intergovernmental
133,283

276,434
01-246 Road Impact Fee
79,776

148,841
01-290 BCJPIA/State Fund Ins
rebates

1,372

-
01-291 Microfilm fee (copies)
7,082

9,057
01-292 Miscellaneous
7,271

35,350
01-294 Reimbursed Publications
421

3 25-352 Storm Drain Fees
7,350

18,042
25-354 Storm Drain Assessment
revenue

32,257

21,563
01-025 General Fund Reserve
Transfer for CIP

600,000

1,100,000
3019 Miscellaneous
735,529

1,332,855
25-353 Non-point rent & exp
-

-
3020 Current Service Charges
-

-
3000 Total Revenues
4,357,970

5,596,303

EXPENSES
General Government
01-505 Council travel, meetings
19,194

10,000

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12 | P a g e
01-506 Youth Commission
Programs

2,488

3,000
01-507 Community Interface
-

13,193
01-515 Council memberships
11,508

12,000
01-520 Elections
7,113

-
01-521 Municipal Code Revision
2,593

2,400
01-522 Environmental Services
13,100

13,000
01-531 Disbursement SMIP
972

1,977
01-532 SB1473 (BSASRF)
307

561
01-533 Disbuse SB1186 fees
166

44 01-535 Professional Services
52,030

146,059
01-540 Insurance & Bonding
62,302

68,790
01-545 Code Enforcement
24,551

18,648
01-550 Community Assist
19,500

24,500
01-555 Emergency Services
1,750

13,000
01-560 Annexations
500

-
01-565 Legal Ads
833

200
01-575 Miscellaneous
4,302

1,000
01-576 Miscellaneous
20 38
01-585 Animal control expense
22,540

32,470
Total General Government
245,768

360,880
Administration
01-705 Office utilities & rent
11,923

13,000
01-710 Office supplies & postage
4,010

13,000
01-711 Postage
6,319

2 01-715 Office Equip & Rental

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13 | P a g e
9,514 11,000
01-720 Communications
26,923

33,000
01-725 Reproduction & Printing
2,816

1,500
01-740 Meetings, Travel &
Protocol

24,314

21,004
01-745 Publications, Books&
Membership

11,009

11,000
01-765 Contract Services
123,210

193,492
01-770 Training & Development
8,648

10,000
01-885 Horticultural/Arborist
Services

500
01-999 City Manager Revolving
account

851

2,500
Total Administration
229,537

309,999
Equipment Improvements
-

-
01-805 Office, Acquisitions &
Improvements

2,383

11,112
01-810 Field, Acquisitions &
Improvements

105
01-811 Computer Hard/Software
15,602

43,500
01-815 Building, Acquisitions,
Improvements

14,944

-
Total Equipment Improvements
17,328

11,217
Law Enforcement
03-545 Law Enforcement
831,444

873,840
03-546 Booking & Cal ID
-

-
03-548 Disburse COPS Grant
100,000

100,000
Total Law Enforcement
931,444

973,840
Building Maintenance
01-860 Building & Grounds
Maintenance

21,832

20,000
01-920 Buildings & Grounds
(Const)

9,022

35,000
Total Building Maintenance
30,854

55,000
Maintenance

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14 | P a g e
01-845 Street Maintenance
780,483

2,012
01-845 Pavement Management
Program

310,000
05-870 Traffic Safety (lights,
signs, cross guards)

679

1,899
05-880 Emergency Calls &
Repairs

6,397

10,000
05-890 Street lighting Utility
3,538

4,000
12-865 Street Sweeping
8,585

8,925
25-850 Storm Drain Maintenance
5,271

13,000
Total Maintenance
804,953

349,835
Construction
01-905 Road Projects
592,390

832,014
01-915 Neighborhood St.

Improve Project

4,540

90,300
05-905 Road Projects
-

-
05-925 Bicycle-Pedestrian Safety
Proj

-
12-915 Traffic Safety Projects
-

20,000
25-910 Storm Drain Project
-

15,000
Total Construction
596,930

957,314
12-875 Congestive Management
2,203

2,300
25-805 WV Clean Water Program
42,869

30,500
Total Engineering
45,072

32,800
Special Districts
40-935 Loma Serena Lighting
2,351

2,708
50-945 Rose Andrews Lighting
1,546

715
Total Special Districts
3,897

3,424
Attorney and City Treasurer
01-425 City Attorney retainer
70,284

99,217
01-427 Attorney code

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15 | P a g e
enforce/Litigation 40,250 9,992
01-435 City Attorney meetings,
travel, pro

500

-
01-470 City Treasurer audit
30,200

32,000
01-480 City Treasurer
miscellaneous

185

366
12-472 Accounting Assistance
(gas tax)

1,816

1,701
Total Attorney and City Treasury
143,235

143,276
Total Expenditures
4,308,540

4,425,060

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18041 Saratoga-Los Gatos Road
Monte Sereno, California 95030-4299
Telephone: 408.354.7635
Fax: 408.395.7653
www.cityofmontesereno.org

NOTICE OF PUBLIC HEARING

SITE AND ARCHITECTURAL COMMISSION
WEDNESDAY, APRIL 6, 2022 AT 7:00PM
This hearing before the Site and Architectural Commission will be virtual and no physical location will be open to the public for this meeting. To participate in this meeting, please see instructions on the back of this page and any updated instructions that may be posted in the public agenda on the City’s website (https://montesereno.civicweb.net/portal/).

Application Number: 2022-3015
Location: 17399 Zena Avenue (APN: 409-32-022)
Proposed Project: Site Development Permit and a Tree Removal Permit to construct a new 4,950 square foot one-story house and remove four trees.

Environmental Review: This project is exempt from the California Environmental Quality Act (CEQA) pursuance to Section 15303 – New Construction
Staff Contact: City Planner (408) 354-7635 or [email protected] Location:

Page 243 of 244 ends

Join the Meeting
From a PC, Mac,
iPad, iPhone or
Android device:

Please click this URL to join.
https://us06web.zoom.us/j/82668016692?pwd=YlRoNWU3cjNyMUtsT05lMG9FSGl5dz09 Passcode: 559855
By Phone: Dial (for higher quality, dial a number based on your current location):

US: +1 253 215 8782 or +1 346 248 7799 or +1 720 707 2699 or +1 301 715 8592 or +1 312 626 6799 or +1 646 558 8656
Webinar ID: 826 6801 6692
Passcode: 559855
International numbers available: https://us06web.zoom.us/u/kerOUue4tf One Tap Mobile: +12532158782,,82668016692#,,,,*559855# US (Tacoma) +13462487799,,82668016692#,,,,*559855# US (Houston)
To Provide Comments Regarding this Project
All interested persons are invited to participate and express their views thereon per the instructions in this notice. For additional information or to provide written comments interested persons may contact the City Planner, Monte Sereno City Hall, 18041 Saratoga-Los Gatos Road, Monte Sereno, CA 95030, Telephone: 408-354-7635, Email: [email protected] Written comments are encouraged to be sent prior to the meeting to ensure receipt by the City.

Comments will be read into the record, with a maximum allowance of 3 minutes per individual comment, subject to the Chairperson’s discretion. All comments should be a maximum of 350 words, which corresponds to approximately 3 minutes of speaking time. If a comment is received after the agenda item is heard but before the close of the meeting, the comment will still be included as a part of the record of the meeting but will not be read into the record.

Accommodations (Americans with Disabilities Act)
Any member of the public who need accommodations should email or call the City Planner 48 hours in advance of the meeting at (408) 354-7635 or [email protected].

Government Code Section 65009(b)(2)
If you challenge the decision of the Site Development Permit and Tree Removal Permit in court, you may be limited to raising only those issues you or someone else raised at the public hearing described in this notice, or in written correspondence delivered to the Site and Architectural Commission at, or prior to, the public hearing.

Dated: March 22, 2022
Site and Architectural Commission

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Monte Sereno City CouncilApril 19, 2022

Monte Sereno City Council
April 19, 2022