Agenda — Monte Sereno City Council, June 21, 2022 (part 1 of 2)

AGENDA
City of Monte Sereno
Tuesday, June 21, 2022
City Council
7:00 PM
Monte Sereno City Council Chambers - 18041 Saratoga -
Los Gatos Road, Monte Sereno, Ca 95030
How to Participate
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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.

PRESENTATIONS

ORAL COMMUNICATIONS

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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 the Minutes of the May 17, 2022 and June 7, 2022 Regular City Council Meeting
Staff recommends approval of the minutes of the May 17, 2022 and June 7, 2022 Regular City Council Meeting.

Staff Report -SR-22-148 - Pdf
6 - 16

2. Approve Warrant List Dated June 21, 2022 in the Amount $97,440.04 Staff recommends the City Council approve the Warrant List.

Staff Report - SR-22-149 - Pdf
17 - 19

3. Accept the Treasurer's Report for the Period Ending April 30, 2022 Staff recommends the City Council accept the Treasurer's Report for the period ending April 30, 2022
Staff Report - SR-22-142 - Pdf
20 - 21

4. Accept Revenues and Expenditures Report for the Month Ending April 30, 2022
Staff recommends that City Council authorize the City Manager to submit applications for the One Bay Area Grant (OBAG) Cycle 3 to the Santa Clara Valley Transportation Authority (VTA) for the Daves Avenue Complete Streets, Highway 9 Safety Improvements Gap Closure, and Winchester Boulevard Complete Streets South Segment Projects.

Staff recommends the Council accept the Revenues and Expenditures Report for the month ending April 30, 2022
Staff Report - SR-22-140 - Pdf
22 - 33

5. Accept the Significant Full Year To Date Variances to Mid Year Budget Narrative for the month of April 2022
34 - 36

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Staff recommends the Council accept the April 2022 YTD Narrative Variance to MId-Year Budget Report for the month ending April 30, 2022 Staff Report - SR-22-141 - Pdf

6. Accept the LAIF Investment Report for April 30, 2022 Staff recommends the Council accept the LAIF Investment Report for April 2022
Staff Report - SR-22-143 - Pdf
37 - 39

7. Authorize the City Manager to Submit Applications for the One Bay Area Grant (OBAG) Cycle 3 to the Santa Clara Valley Transportation Authority (VTA) for Three Candidate Projects
One Bay Area Grant Cycle 3 Program and Project Selection Criteria Staff Report - SR-22-138 - Pdf
40 - 64

PUBLIC HEARINGS

UNFINISHED BUSINESS

NEW BUSINESS

1. Consider and Approve Fiscal Year 2022-2023 Operating and Capital Budget and Adopt a Resolution Adopting the Proposed Fiscal Year 2022-2023 Operating and Capital Budget
Staff recommends that the City Council consider and approve the FY 2022-2023 Operating and Capital Budget and adopt a resolution adopting the proposed FY 2022-2023 Operating and Capital Budget.

Staff Report - SR-22-144 - Pdf
65 - 152

2. Consider and Approve the First Amendment to Agreement Between the City of Monte Sereno and Steven Leonardis for Employment as City Manager
Staff recommends that the City Council consider and approve the first amendment to the agreement between the City of Monte Sereno and Steven Leonardis for employment as City Manager.

Staff Report - SR-22-147 - Pdf
153 - 155

3. Discuss and Provide Direction to Staff Regarding Reducing Building Permit and Plan Check Fees for Accessory Dwelling Units When the Property Owner has Formally Notified the City of their Intention to Construct an Accessory Dwelling Unit for the Next RHNA Cycle Staff recommends the City Council provide direction regarding approving a reduction of plan check and permitting fees for Accessory Dwelling Units (ADUs) where the property owner has formally notified the City in writing of their intention to construct an ADU by September 16, 2022 and such building permit is issued by December 31, 2029.

Staff Report - SR-22-145 - Pdf
156 - 161

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4. Discussion and Provide Direction to the Mayor on the City of Monte Sereno's Position on Legislation Being Considered by the Santa Clara County Cities Association
Staff recommends that the Council discuss and provide direction to the Mayor on the City's position on legislation being considered by the Santa Clara County Cities Association.

Staff Report - SR-22-139 - Pdf
162 - 163

5. Housing Element Update: Draft Programs and Project Schedule Staff recommends that the Site and Architectural Commission and the City Council receive the Housing Element Update and provide feedback on programs for inclusion in the Draft Housing Element.

Staff Report - SR-22-150 - Pdf
Public Comment Received as of 5pm on 6-21-22
164 - 193

ADJOURN TO CLOSED SESSION

1. LIABILITY CLAIMS
(Government Code Section 54956.95)
Claimant: Rowena Turner
Agency claimed against: City of Monte Sereno

RECONVENE TO OPEN SESSION

REPORT ON ACTION TAKEN DURING CLOSED SESSION

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
Santa Clara County Library JPA - Leuthold/Lawler

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

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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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STAFF REPORT
Meeting: City Council - Jun 21 2022
Agenda Heading: CONSENT CALENDAR
Staff Contact: Michelle Estabillo, City Clerk
Department: City Clerk
Title: Approve the Minutes of the May 17, 2022 and June 7, 2022 Regular City Council Meeting
Recommendation(s):

Staff recommends approval of the minutes of the May 17, 2022 and June 7, 2022 Regular City Council Meeting.

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:
5-17-22 Regular Meeting Minutes DRAFT-DP
6-7-22 Regular Meeting Minutes DRAFT

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MONTE SERENO CITY COUNCIL

MEETING MINUTES

REGULAR MEETING
7:00 p.m.

May 17, 2022

MEETING CALLED TO ORDER
At approximately 7:00 p.m., Mayor Ellahie called the meeting to order.

PLEDGE OF ALLEGIANCE
Councilmember Lawler conducted the Pledge of the Allegiance.

ROLL CALL

Present: Councilmember Lawler, Councilmember Leuthold, Councilmember Turner, Mayor Pro Tempore Mekechuk, and Mayor Ellahie

Absent: None
Staff Present: City Manager Leonardis, City Attorney Rudin, Finance Officer Samaranos, City Clerk Estabillo and Deputy City Clerk Gonzalez-Langarica

ORDERS OF THE DAY
There were no changes.

PRESENTATIONS

1. Palestinian Cultural Day Proclamation
Mayor Ellahie presented the proclamation.

2. West Valley Community Services Presentation
Sujatha Venkatraman presented West Valley Community Services provided an update.

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ORAL COMMUNICATIONS
Carl Guardino
Edgardo Laber
Philp Levine
Susan Ng
There were none.

WRITTEN COMMUNICATIONS
There were none.

CONSENT CALENDAR (TO BE ACTED UPON BY A SINGLE MOTION)

1. Approve the April 19, 2022 and May 3, 2022 Regular Meeting Minutes and May 3, 2022 Special Meeting

2. Approved the Warrant List Dated May 17, 2022, in the Amount of $195,343.74

3. Adopted Resolution Extending Teleconferencing of City Council Meetings Pursuant to Government Code Section 54953 (AB 361) RESOLUTION NO. 22-3847 MOTION: Motion by Mayor Pro Tempore Mekechuk to approve the Consent Calendar with amendments to the April 19, 2022 Regular Meeting minutes. Seconded by Councilmember Leuthold.

VOTE: Motion passed unanimously. (5-0-0)

PUBLIC HEARINGS
There were none.

UNFINISHED BUSINESS
There were none.

NEW BUSINESSS

1. Evaluate, Consider, and Accept Community (CBO) Grant Application Submittals Mayor Ellahie recused himself for discussion of consideration of grant request by KCAT due to conflict of interest.

Public comment was received from the following people:

Melissa Toren with KCAT
MOTION: Motion by Councilmember Turner to approve grant donation of $5,000 to KCAT. Seconded by Councilmember Lawler.

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VOTE: Motion passed unanimously. (4-0-1)
Mayor Ellahie returned for further discussion on the remaining Grant Applicants.

Public comment was received from the following people:

Philip Levin
Sujatna Venkatraman
MOTION: Motion by Mayor Pro Tempore Mekechuk to approve and accept Community Based Organization Grants (CBO) according to policy guidelines fund allocations for Fiscal Year 2022-2023. Seconded by Councilmember Lawler.

VOTE: Motion passed unanimously. (5-0-0)

2. Consider and confirm the 2022 Monte Sereno Social Justice Award Winner Selected by the Monte Sereno Youth Commission
MOTION: Motion by Councilmember Lawler to award the Social Justice Award to Next Door Solutions as submitted by Maya Segev and selected by the Monte Sereno Youth Commission. Seconded by Mayor Pro Tempore Mekechuk.

VOTE: Motion passed unanimously. (5-0-0)

3. Study Session - Fiscal Year 2022-23 Proposed Budget
Finance Officer Samaranos presented staff report and extensive Council discussion was held. By consensus, the Council directed staff to incorporate its feedback to the FY2022- 23 Budget and return with Council for consideration at its June 21, 2022 meeting.

COMMITTEE/COMMISSION REPORTS
Mayor Pro Tempore Mekechuk reported he attended the following meetings and provided updates:

Valley Transportation Authority Political Action Committee, Silicon Valley Clean Energy, West Valley Clean Water, West Valley Solid Waste Management Authority.

Council Member Lawler requested to include West Valley Water Commission to the reporting list.

She also stated that she attended the Youth Commission’s final meeting for Calendar Year 2021-22 and that the Silicon Valley Animal Control has a meeting next week.

Council Member Leuthold stated he had nothing to report.

Mayor Ellahie reported he attended the Santa Clara County Cities Association and provided an update.

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COUNCILMEMBER COMMENTS
Councilmember Turner stated that Monte Sereno residents Philip Levine and Susan Ng has concerns that need to be addressed. She suggested that one or two Council Members participate in in-person meetings with the residents.

Councilmember Leuthold shared the same concerns Councilmember Turner had regarding Monte Sereno residents Levine and Ng and stated that construction hours do not match what the requirements are.

Councilmember Lawler stated she agreed with the previous comments provided by Councilmembers Turner and Leuthold and stated that contractors need to be held accountable.

CITY MANAGER’S REPORT
City Manager Leonardis reported that the ballot box for the June 7, 2022 Primary Election is located at the entrance of City Hall. He also stated that there is a Special Joint Meeting with the City Council and Site and Architectural Commission scheduled for May 24, 2022 to discuss the Housing Element and SB 9.

Deputy City Clerk Gonzalez-Langarica suggested that a reminder of work hours and observed holidays be sent to all contractors. .

FUTURE AGENDA ITEMS
Councilmember Leuthold suggested a Closed Session meeting be scheduled prior to budget finalization to discuss the general Memorandum of Understanding needs and other issues for City employees.

Councilmember Turner requested that the City Clerk provide an update on SeeClickFix and stated she would like to provide an update to SB9 and SB10.

Councilmember Lawler requested that discussion on Youth Commission member attendance requirements as well as reducing the number of meetings.

Mayor Ellahie requested that discussion on continuing the City’s participation in the Santa Clara County Cities’ Association.

ADJOURN
The meeting adjourned at approximately 9:42 p.m.

Javed I. Ellahie, Mayor
ATTEST:

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_______________________________
Gloisy Gonzalez-Langarica, Deputy City Clerk

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MONTE SERENO CITY COUNCIL

MEETING MINUTES

REGULAR MEETING
7:00 p.m.

June 7, 2022

MEETING CALLED TO ORDER
At approximately 7:00 p.m., Mayor Ellahie called the meeting to order.

PLEDGE OF ALLEGIANCE
Councilmember Turner conducted the Pledge of the Allegiance.

ROLL CALL

Present: Councilmember Leuthold, Councilmember Turner, Mayor Pro Tempore Mekechuk, and Mayor Ellahie

Absent: Councilmember Lawler
Staff Present: City Attorney Rudin, Finance Officer Samaranos, City Planner Perkins, City Clerk Estabillo and Deputy City Clerk Gonzalez-Langarica

Absent: City Manager Leonardis

ORDERS OF THE DAY
There were no changes.

ORAL COMMUNICATIONS
Monte Sereno resident Philip Levine provided Public Comment.

WRITTEN COMMUNICATIONS
There were none.

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CONSENT CALENDAR (TO BE ACTED UPON BY A SINGLE MOTION)

1. Approved the Warrant List Dated June 7, 2022, in the Amount of $188,572.60

2. Approval of Settlement Agreement for Four Eighteen Holdings, LLC v. City of Monte Sereno, Santa Clara County Superior Court Case No. 20CV370686 in the Amount of $50,000

3. Consideration to Approve and Authorize the City Manager to Execute Amendment #1 to the Professional Services Agreement with EMC Planning Group for the Housing Element Update Increasing the Contract Amount by $51,600 to a Total Not to Exceed Amount of $221,960.

4. Appointment of Monte Sereno Representative to the Valley Transportation Authority Bicycle and Pedestrian Advisory Committee

5. Consider and Adopt Resolution Extending Teleconferencing of City Council Meetings Pursuant to Government Code Section 54953 (AB 361)

6. Review and Accept Biennial Review of the City of Monte Sereno's Conflict of Interest Code MOTION: Motion by Mayor Pro Tempore Mekechuk to approve the Consent Calendar. Seconded by Councilmember Leuthold.

VOTE: Motion passed unanimously. (4-0-1; Absent: Lawler)

PUBLIC HEARINGS
There were none.

UNFINISHED BUSINESS
There were none.

NEW BUSINESSS

1. Consider and Appoint Members to the 2022-2023 Monte Sereno Youth Commission MOTION: Motion by Councilmember Leuthold to accept and appoint Illaria Costello, Sahil Varma, Matthew Evans, Vardaan Ghai, Portia Zeidler, and Johann Jacob to the 2022-2023six Youth Commission and extend the recruitment deadline and consider applications as it is submitted to the City Clerk.

Seconded by Mayor Pro Tempore Mekechuk.

VOTE: Motion passed unanimously. (4-0-1; Absent: Lawler)

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2. Adopt a Resolution Ordering and Calling a General Municipal Election to be held in the City of Monte Sereno on November 8, 2022; Requesting the Services of the Registrar of Voters; Requesting Consolidation of Elections and Specifying Certain Policies and Procedures for the Consolidated Election; Determining to Levy a Cost of Candidate Statements; Requiring Payment of Candidate's Filing Fee; and Providing for Giving Notice of Election MOTION: Motion by Councilmember Leuthold to adopt a resolution ordering and calling a General Municipal Election to be held in the City of Monte Sereno on November 8, 2022; requesting the services of the Registrar of Voters; requesting consolidation of elections and specifying certain policies and procedures for the Consolidated Election; determining to levy a cost of candidate statements; requiring payment of candidate's filing fee; and providing for giving Notice of Election. Seconded by Mayor Pro Tempore Mekechuk.

VOTE: Motion passed unanimously. (3-0-2)

3. Discussion and Consideration of Forming a Housing Element Update Ad Hoc Committee and Appointment of Ad Hoc Committee Members
MOTION: Motion by Mayor Pro Tempore Mekechuk to form a Housing Element Update Ad Hoc Committee and Council Member Leuthold and Mayor Pro Tempore Mekechuk to the Ad Hoc Committee. Seconded by
Councilmember Turner.

VOTE: Motion passed unanimously. (4-0-1; Absent: Lawler)

4. Consider and Adopt a Resolution Setting the Appropriations Limit for Fiscal Year 2022-2023 MOTION: Motion by Mayor Pro Tempore Mekechuk to adopt the resolution Setting he Appropriations Limit for Fiscal Year 2022-2023 as amended.

Seconded by Councilmember Leuthold.

VOTE: Motion passed unanimously. (4-0-1; Absent: Lawler)

5. Conduct Second Review of the Fiscal Year 2022-23 Budget and Provide Direction to Staff City Finance Officer Samaronos presented report and discussion was held by Council. No action was taken.

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ADJOURN TO CLOSED SESSION
The Council adjourned to Closed Session at approximately 8:15 p.m.

1. CONFERENCE WITH LABOR NEGOTIATORS
(Government Code § 54957.6)
Agency designated representatives: City Attorney
Unrepresented employee: City Manager

RECONVENE TO OPEN SESSION
The Council reconvened to Open Session at approximately 8:54 p.m. with all Councilmember Leuthold, Mayor Pro Tempore Mekechuk, and Mayor Ellahie present.

REPORT ON ACTION TAKEN DURING CLOSED SESSION
Mayor Ellahie stated there was nothing to report.

COMMITTEE/COMMISSION REPORTS
Mayor Pro Tempore Mekechuk reported that he attended a meeting with Clean Energy Committee and there is nothing to report on this meeting. He stated that Solid Waste is continuing with the Request for Proposal for garbage hauling. Mayor Pro Tempore Mekechuk also reported that he attended a meeting with Clean Water and there is nothing to report. Lastly, he stated that Valley Transportation Authority has a meeting scheduled for next week.

Mayor Ellahie reported that Silicon Valley Clean Energy will provide another grant for users and more information will be provided soon. He also reported that the West Valley Mayors and Managers met for the first time in person and general discussion was held on each municipality.

Council Member Leuthold reported he attended the Santa Clara County Joint Powers Authority (JPA) and commended the Library JPA for the services it provides to the public.

COUNCILMEMBER COMMENTS
Mayor Pro Tempore shared he hosted Don Rocha from Valley Water to tour the annex building and discussion was held on how the City is looking at ways to partner with local agencies to assist with the remodel of the annex building.

CITY MANAGER’S REPORT
There was no report.

FUTURE AGENDA ITEMS
There were none.

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ADJOURN
The meeting adjourned at approximately 9:03 p.m.

Javed I. Ellahie, Mayor
ATTEST:
_______________________________
Michelle Estabillo, City Clerk

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STAFF REPORT
Meeting: City Council - Jun 21 2022
Agenda Heading: CONSENT CALENDAR
Staff Contact: Reynold Samoranos,
Department: Finance Manager
Title: Approve Warrant List Dated June 21, 2022 in the Amount $97,440.04 Recommendation(s):

Staff recommends the City Council approve the Warrant List.

Fiscal Impact:

There are no unbudgeted fiscal impact 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 06 21 Warrants List Final

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

June 21, 2022
CHECK
NO. TO FOR AMOUNT ACCOUNT NO.
19827 Alana Consulting, LLC Plan Checks (05/09/2022 to 06/05/2022) $6785 and ePermit Consultant (6497.50) 13,282.50 01-765 19828 Association of Bay Area
Governments Utilities - Natural gas for City Hall 199.42 01-705 19829 American Public Works
Assoc.

Membership dues for American Public
Works Association 222.00 01-745
19830 Cathy Arias Law Trust
Account
City Association settled the Andi Jordan
Claim 4,730.00 01-427
19831 City Clerks Association
of California
Membership dues for City Clerks
Association of California 200.00 01-745
19832 CLEAR GOV INC. Digital Budget Book Suite 2,864.43 01-811 19833 COMCAST Internet services for City Hall 106.67 01-720 19834 corodata Shredding,
Inc. 64 Gallon bin for shredded documents 80.87 01-710
19835 Delta Dental of
California Dental premiums June 2022 484.48 01-635
19836 Dicar Networks, Inc. Monthly Managed IT Services ($1325) and Software licenses ($548) 1,873.00 01-535 01-811
19837 Digium Cloud Service,
LLC Office phone services 288.94 01-720
19838 EOS Integration
Datto Cloud software license ($298) and
Non Contract Infrastructure Support
($250)
548.00 01-811
01-535
19839 First Choice Coffee
Services
Drinking water and coffee supplies for
City Hall 157.22 01-710
19840 Frontier
Communications Dedicated landline for City Hall 63.70 01-720 19841 James Kim Duplicate payment received from permit
#2022-0012 - property on Creekside Ct. 577.77 01-236
19842 Liberty Plugins, Inc. Quarterly administrative fee 300.00 01-811 19843 Liebert Cassidy
Whitmore Legal services - re Personnel Question 195.00 01-427 19844 RICOH USA, INC. Copy cost b/w and colored (03/01/22 to 05/31/22) 568.31 01-715
19845 San Jose Water Water services City Hall ($132) and Annex Building ($237) 368.87 01-705
19846 TL Engineering Daves Neighborhood Improvement
Project (CIP-2022-C) 6,710.00 05-870
19847 Void Void Void Void
19848 Wells Fargo Bank
Office Supplies ($566), Office Phone
Services ($289), Membership Dues
($110), Software licenses ($560) and
Building repair materials ($103)
1,628.18
01-710
01-720
01-745
01-811
01-860
19849 State Compensation Ins
Fund Workers' Comp premiums 545.75 01-642

Page 18 of 193 ends

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

June 21, 2022
19850 Town of Los Gatos
Finance Department
TCD Inspection and Cleaning of storm
drains 1,111.60 25-850
19851 Town of Los Gatos
Finance Department
Feb 2022 COPS ELEAS Grant pass-thru
disbursement to Police Department 8,333.33 03-548
19852 Four Eighteen Holdings,
LLC
Per settlement agreement June 7, 2022
(Four Eighteen Holdings, LLC vs. City of
Monte Sereno)
50,000.00 01-427
19853 GKW Architects, Inc. Annex building project - Achitectural design 2,000.00 01-920
Total $97,440.04

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 - Jun 21 2022
Agenda Heading: CONSENT CALENDAR
Staff Contact: Reynold Samoranos,
Department: Finance Manager
Title: Accept the Treasurer's Report for the Period Ending April 30, 2022 Recommendation(s):

Staff recommends the City Council accept the Treasurer's Report for the period ending April 30, 2022
Fiscal Impact:

There are no unbudgeted fiscal impacts with this agenda item.

Alternatives:

Conclusion:

Public Noticing:

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

Attachments:

TREASURERS REPORT 2022 04 30 (Final 06-03-2022)

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TREASURER'S REPORT For the period ending
April 30, 2022
April 30, 2022 March 31, 2022 Changes Higher /
(Lower) Comment
BEGINNING BALANCE $710,563.35 $423,358.45 $287,204.90
Receipts and Interest Earned
Receipts for the period 865,008.45 $412,579.27 $452,429.18 In April, received $282k for Secured Property Taxes 3rd Advance, $247k VLF SWAP (redirecting a portion of property taxes from schools to counties and cities), $83k Secured Property Taxes 4th Advance, $58k Franchise Tax from PG&E, $22k from various building permits on Daves Avenue and $8k for February 2022 COPS ELEAS Grant pass-thru.

Investment receipts during the period $0.00 $750,000.00 ($750,000.00) In March, Transferred $750k from LAIF to Savings WFB to help pay for La Rinconada Phase 2 Neighborhood Project invoice.($591k)
Interest earned $0.00
Total Receipts and Interest Earned $865,008.45 $1,162,579.27 ($297,570.82) Less: Disbursements
Cash disbursements during the period $646,274.19 $823,415.05 ($177,140.86) In April, paid $346k for Winchester Blvd. Class IV Protected bike lane project, $81k for Police Services, Building Official / Plan checks Consultant $48k (12-16-2021 through 3-27-2022 services), $12k Burke, Williams & Sorensen for City Attorney Services and litigation cases and $7k ePermit development for Planning & Engineering departments.

Invested during the period $0.00
GASB Report & SSA fee $0.00 $0.00 $0.00
EFT(PERS retirement) $13,519.36 $13,330.70 $188.66 Increase salary for Staff employee EFT (payroll taxes) $23,818.52 $23,333.20 $485.32 Increase salary for Staff employee EFT (PERS health) $5,498.39 $10,066.96 ($4,568.57) In March, Catchup on health premiums two months for staff employee EFT (EDD payroll taxes) $5,337.44 $5,210.30 $127.14 Increase salary for Staff employee Bank fees $18.16 ($18.16)
Total Disbursements $694,447.90 $875,374.37 ($180,926.47) ENDING BALANCE $881,123.90 $710,563.35 $170,560.55

BALANCE IN DEMAND ACCOUNTS
Checking $63,651.50 $59,882.62 $3,768.88
Savings $817,472.40 $650,680.73 $166,791.67
TOTAL DEMAND ACCOUNTS $881,123.90 $710,563.35 $170,560.55 $0.00

FUND DISTRIBUTION IN DEMAND ACCOUNTS
General $33,639.21 ($112,528.98) $146,168.19
Law Enforcement $119,849.55 $111,516.22 $8,333.33 Received COPS ELEAS Grant pass-thru Grant ($8k).

Traffic Safety $573.12 $233.56 $339.56
Gas Tax (2107) $223,330.50 $210,638.19 $12,692.31 Received $6k SB-1 revenue and $7k Gas Tax revenue.

Storm Drain $499,667.26 $497,148.86 $2,518.40 Received storm drain fees for projects on Ridgecrest Av and Creekside Ct.

Surety Trust $72.75 $72.75 $0.00
Loma Serena Ltg $3,952.57 $3,443.81 $508.76 Received Loma Serena Ltg Secured Property Tax.

Rose/Andrews Ltg. $38.94 $38.94 $0.00
Total $881,123.90 $710,563.35 $170,560.55

Page 21 of 193 ends

STAFF REPORT
Meeting: City Council - Jun 21 2022
Agenda Heading: CONSENT CALENDAR
Staff Contact: Reynold Samoranos,
Department: Finance Manager
Title: Accept Revenues and Expenditures Report for the Month Ending April 30, 2022
Recommendation(s):

Staff recommends the Council accept the Revenues and Expenditures Report for the month ending April 30, 2022
Background Information:

Analysis:

California Environmental Quality Act:

Fiscal Impact:

There are no unbudgeted fiscal impacts with this agenda item.

Alternatives:

Conclusion:

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 04 30 (Final 06 03 2022)

Page 22 of 193 ends

THE CITY OF MONTE SERENO

REVENUES AND EXPENDITURES REPORT

FOR THE MONTH OF
April 2022

83.3% 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
Mid-Year Budget

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

Full Year MidYear Budget
2,289,341 623,786 2,212,044 (77,297) 96.6%
850,859 95,113 854,173 3,313 100.4%
310,567 70,854 266,720 (43,847) 85.9%
240,947 8,333 148,911 (92,036) 61.8%
486,616 20,483 190,834 (295,782) 39.2%
153,505 12,692 127,798 (25,708) 83.3%
9,241 4,449 11,290 2,049 122.2%
279,647 32,147 177,399 (102,248) 63.4%
425,645 179 421,923 (3,721) 99.1%
2,655 340 2,394 (260) 90.2%
5,049,023 868,375 4,413,486 (635,537) 87.4%
Page: 1 of 11 File: REVENUE AND EXPENDITURES MONTHLY REPORT 2022 04 30 (Final 06 03 2022) Page 23 of 193

THE CITY OF MONTE SERENO

REVENUES AND EXPENDITURES REPORT

FOR THE MONTH OF
April 2022

83.3% 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
Mid-Year Budget

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

Full Year MidYear Budget
2,066,836 612,355 1,985,805 (81,032) 96.1%
87,000 3,980 89,284 2,284 102.6%
3,586 0 2,686 (900) 74.9%
18,155 6,941 20,596 2,441 113.4%
111,515 0 111,515 0 100.0%
2,113 494 2,007 (106) 95.0%
114 5 119 5 104.7%
4 0 4 0 100.0%
19 9 28 9 150.5%
0 0 0 0 N/A
2,289,341 623,786 2,212,044 (77,297) 96.6%
15,740 179 12,018 (3,721) 76.4%
409,905 0 409,905 0 100.0%
425,645 179 421,923 (3,721) 99.1%
81,630 6,518 67,748 (13,882) 83.0%
71,875 6,174 60,049 (11,826) 83.5%
153,505 12,692 127,798 (25,708) 83.3%
17,600 22,310 22,310 4,710 126.8%
38,000 43,210 43,210 5,210 113.7%
38,350 0 33,550 (4,800) 87.5%
130,944 3,403 101,647 (29,297) 77.6%
35,638 1,930 28,569 (7,070) 80.2%
50,034 0 37,434 (12,600) 74.8%
310,567 70,854 266,720 (43,847) 85.9%
Page: 2 of 11 File: REVENUE AND EXPENDITURES MONTHLY REPORT 2022 04 30 (Final 06 03 2022) Page 24 of 193

THE CITY OF MONTE SERENO

REVENUES AND EXPENDITURES REPORT

FOR THE MONTH OF
April 2022

83.3% 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
Mid-Year Budget

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

Full Year MidYear Budget
169,402 32,147 177,399 7,997 104.7%
110,245 0 0 (110,245) 0.0%
279,647 32,147 177,399 (102,248) 63.4%
980 44 724 (256) 73.9%
17,628 853 13,981 (3,647) 79.3%
35,770 5,474 38,469 2,699 107.5%
6,255 2,259 7,014 759 112.1%
600,629 66,429 620,858 20,229 103.4%
64,962 7,358 56,120 (8,842) 86.4%
3,598 146 2,844 (754) 79.0%
186 0 186 0 100.0%
11,177 3,788 12,265 1,088 109.7%
0 0 0 0 N/A
48,105 3,300 39,405 (8,700) 81.9%
61,570 5,463 62,308 738 101.2%
850,859 95,113 854,173 3,313 100.4%
0 0 0 0 N/A
2,655 340 2,394 (260) 90.2%
2,655 340 2,394 (260) 90.2%
8,210 3,698 9,809 1,598 119.5%
1,030 751 1,481 451 143.8%
9,241 4,449 11,290 2,049 122.2%
Page: 3 of 11 File: REVENUE AND EXPENDITURES MONTHLY REPORT 2022 04 30 (Final 06 03 2022) Page 25 of 193

THE CITY OF MONTE SERENO

REVENUES AND EXPENDITURES REPORT

FOR THE MONTH OF
April 2022

83.3% 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 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
. 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 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
Mid-Year Budget

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

Full Year MidYear Budget
1,396 0 1,096 (300) 78.5%
2,602 0 2,002 (600) 76.9%
5,664 0 4,164 (1,500) 73.5%
0 0 0 0 N/A
111,285 8,333 119,618 8,333 107.5%
120,000 0 22,031 (97,969) 18.4%
240,947 8,333 148,911 (92,036) 61.8%
169,853 16,731 162,285 (7,569) 95.5%
140 0 140 0 100.0%
9,368 1,233 8,200 (1,167) 87.5%
283,600 0 35 (283,565) 0.0%
0 0 0 0 N/A
0 0 0 0 N/A
23,656 2,518 20,174 (3,482) 85.3%
0 0 0 0 N/A
0 0 0 0 N/A
0 0 0 0 N/A
486,616 20,483 190,834 (295,782) 39.2%
5,049,023 868,375 4,413,486 (635,537) 87.4%
Page: 4 of 11 File: REVENUE AND EXPENDITURES MONTHLY REPORT 2022 04 30 (Final 06 03 2022) Page 26 of 193

THE CITY OF MONTE SERENO

REVENUES AND EXPENDITURES REPORT

FOR THE MONTH OF
April 2022

83.3% 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
Mid-Year Budget

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

Full Year MidYear Budget
1,241,924 106,462 1,036,085 (205,838) 83.4%
1,078,370 80,590 763,140 (315,229) 70.8%
351,020 0 565 (350,455) 0.2%
484,860 32,567 421,261 (63,599) 86.9%
2,723,207 22,373 1,408,509 (1,314,699) 51.7%
419,480 74,250 388,731 (30,750) 92.7%
195,613 23,859 146,252 (49,361) 74.8%
633,800 1,056 27,951 (605,849) 4.4%
100,142 4,239 25,681 (74,461) 25.6%
46,527 487 14,614 (31,913) 31.4%
50,000 0 0 (50,000) 0.0%
1,470 171 1,342 (129) 91.2%
7,326,414 346,054 4,234,130 (3,092,283) 57.8%
(2,277,391) 522,321 179,356 2,456,747 -7.9%
Page: 5 of 11 File: REVENUE AND EXPENDITURES MONTHLY REPORT 2022 04 30 (Final 06 03 2022) Page 27 of 193

THE CITY OF MONTE SERENO

REVENUES AND EXPENDITURES REPORT

FOR THE MONTH OF
April 2022

83.3% 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
Mid-Year Budget

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

Full Year MidYear Budget
2,590 0 1,990 (600) 76.8%
0 0 0 0 N/A
4,400 0 3,200 (1,200) 72.7%
2,272 0 1,672 (600) 73.6%
0 0 0 0 N/A
3,775 0 2,875 (900) 76.2%
8,114 0 6,014 (2,100) 74.1%
11,460 0 0 (11,460) 0.0%
0 0 0 0 N/A
0 0 0 0 N/A
244,532 25,248 208,580 (35,952) 85.3%
86,391 3,494 89,885 3,494 104.0%
52,473 3,825 43,098 (9,375) 82.1%
25,000 0 25,000 0 100.0%
0 0 0 0 N/A
0 0 0 0 N/A
10,703 0 8,003 (2,700) 74.8%
0 0 0 0 N/A
150 0 150 0 100.0%
0 0 0 0 N/A
33,000 0 30,794 (2,206) 93.3%
484,860 32,567 421,261 (63,599) 86.9%
Page: 6 of 11 File: REVENUE AND EXPENDITURES MONTHLY REPORT 2022 04 30 (Final 06 03 2022) Page 28 of 193

THE CITY OF MONTE SERENO

REVENUES AND EXPENDITURES REPORT

FOR THE MONTH OF
April 2022

83.3% 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
Mid-Year Budget

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

Full Year MidYear Budget
921,024 79,957 768,480 (152,543) 83.4%
0 0 0 0 N/A
0 0 0 0 N/A
80,433 7,283 67,616 (12,817) 84.1%
23,974 2,049 20,023 (3,951) 83.5%
92,218 5,498 74,616 (17,602) 80.9%
7,614 484 6,298 (1,316) 82.7%
5,150 546 4,496 (654) 87.3%
53,173 5,112 45,085 (8,088) 84.8%
13,608 1,196 11,504 (2,104) 84.5%
336 0 336 0 100.0%
24,756 2,637 21,093 (3,663) 85.2%
19,638 1,700 16,538 (3,100) 84.2%
1,241,924 106,462 1,036,085 (205,838) 83.4%
8,178 676 6,754 (1,424) 82.6%
18,222 1,463 15,185 (3,037) 83.3%
1,999 204 1,602 (396) 80.2%
33,910 4,979 30,489 (3,421) 89.9%
183 (141) 43 (141) 23.3%
30,760 757 23,717 (7,043) 77.1%
4,779 384 3,963 (816) 82.9%
12,951 3,219 12,870 (81) 99.4%
21,851 2,550 19,001 (2,850) 87.0%
0 0 0 0 N/A
278,395 59,851 268,647 (9,749) 96.5%
8,253 308 6,461 (1,792) 78.3%
0 0 0 0 N/A
0 0 0 0 N/A
0 0 0 0 N/A
419,480 74,250 388,731 (30,750) 92.7%
Page: 7 of 11 File: REVENUE AND EXPENDITURES MONTHLY REPORT 2022 04 30 (Final 06 03 2022) Page 29 of 193

THE CITY OF MONTE SERENO

REVENUES AND EXPENDITURES REPORT

FOR THE MONTH OF
April 2022

83.3% 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
Mid-Year Budget

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

Full Year MidYear Budget
15,000 0 0 (15,000) 0.0%
0 0 0 0 N/A
85,142 4,239 25,681 (59,461) 30.2%
0 0 0 0 N/A
100,142 4,239 25,681 (74,461) 25.6%
967,085 80,590 651,856 (315,229) 67.4%
0 0 0 0 N/A
111,285 0 111,285 0 100.0%
1,078,370 80,590 763,140 (315,229) 70.8%
33,800 1,056 26,456 (7,344) 78.3%
600,000 0 1,495 (598,505) 0.2%
633,800 1,056 27,951 (605,849) 4.4%
11,605 0 11,605 0 100.0%
0 0 0 0 N/A
0 0 0 0 N/A
2,685,000 18,708 1,372,900 (1,312,099) 51.1%
10,000 0 5,170 (4,830) 51.7%
4,200 0 2,765 (1,435) 65.8%
1,833 3,666 5,498 3,666 300.0%
10,570 0 10,570 0 100.0%
2,723,207 22,373 1,408,509 (1,314,699) 51.7%
Page: 8 of 11 File: REVENUE AND EXPENDITURES MONTHLY REPORT 2022 04 30 (Final 06 03 2022) Page 30 of 193

THE CITY OF MONTE SERENO

REVENUES AND EXPENDITURES REPORT

FOR THE MONTH OF
April 2022

83.3% 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
Mid-Year Budget

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

Full Year MidYear Budget
0 0 0 0 N/A
0 0 0 0 N/A
0 0 0 0 N/A
345,614 0 0 (345,614) 0.0%
0 0 0 0 N/A
5,406 0 565 (4,841) 10.4%
351,020 0 565 (350,455) 0.2%
0 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%
1,082 171 953 (129) 88.1%
389 0 389 0 100.0%
1,470 171 1,342 (129) 91.2%
Page: 9 of 11 File: REVENUE AND EXPENDITURES MONTHLY REPORT 2022 04 30 (Final 06 03 2022) Page 31 of 193

THE CITY OF MONTE SERENO

REVENUES AND EXPENDITURES REPORT

FOR THE MONTH OF
April 2022

83.3% 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
Mid-Year Budget

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

Full Year MidYear Budget
111,200 7,550 66,531 (44,670) 59.8%
84,413 16,308 79,721 (4,692) 94.4%
0 0 0 0 N/A
0 0 0 0 N/A
195,613 23,859 146,252 (49,361) 74.8%
39,500 0 8,600 (30,900) 21.8%
2,576 0 2,576 0 100.0%
4,452 487 3,438 (1,013) 77.2%
46,527 487 14,614 (31,913) 31.4%
7,326,414 346,054 4,234,130 (3,092,283) 57.8%
0 N/A
0 N/A
(2,277,391) 522,321 179,356 2,456,747 -7.9%
Page: 10 of 11 File: REVENUE AND EXPENDITURES MONTHLY REPORT 2022 04 30 (Final 06 03 2022) Page 32 of 193

THE CITY OF MONTE SERENO

REVENUES AND EXPENDITURES REPORT

FOR THE MONTH OF
April 2022

83.3% 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
Mid-Year Budget

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

Full Year MidYear Budget
59,883 3,769 63,652 3,769 106.3%
8,542 142,399 (30,012) (38,554) -351.4%
0 8,333 119,850 119,850 N/A
16,117 340 573 (15,544) 3.6%
231,338 12,692 223,331 (8,008) 96.5%
56,403 2,518 499,667 443,264 885.9%
73 0 73 0 100.0%
3,744 509 3,953 209 105.6%
39 0 39 0 100.0%
316,255 166,792 817,472 501,217 258.5%
376,138 170,561 881,124 504,986 234.3%
43,972 3,698 647,671 603,698 1472.9%
3,200,000 0 3,500,000 300,000 109.4%
0 0 500,000 500,000 N/A
0 0 200,000 200,000 N/A
0 0 0 0 N/A
3,243,972 3,698 4,847,671 1,603,698 149.4%
0 0 0 0 N/A
130,755 751 131,506 751 100.6%
21,000 0 21,000 0 100.0%
27,043 0 27,043 0 100.0%
6,751 0 6,751 0 100.0%
185,549 751 186,300 751 100.4%
3,429,521 4,449 5,033,970 1,604,449 146.8%
3,805,659 175,010 5,915,094 2,109,436 155.4%
Page: 11 of 11 File: REVENUE AND EXPENDITURES MONTHLY REPORT 2022 04 30 (Final 06 03 2022) Page 33 of 193

STAFF REPORT
Meeting: City Council - Jun 21 2022
Agenda Heading: CONSENT CALENDAR
Staff Contact: Reynold Samoranos,
Department: Finance Manager
Title: Accept the Significant Full Year To Date Variances to Mid Year Budget Narrative for the month of April 2022
Recommendation(s):

Staff recommends the Council accept the April 2022 YTD Narrative Variance to MId-Year Budget Report for the month ending April 30, 2022
Background Information:

Analysis:

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 04

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

83.3% of FY 2021-22 Mid-Year Budget
Revenues

SIGNIFICANT FULL YEAR VARIANCES TO MID-YEAR BUDGET NARRATIVE  Revenues $4.4 Million (87.4% of FY 2021-22 Mid-Year Budget) - Property Tax $2,212k, 96.6% of FY 2021-22 Mid-Year Budget: In April received Secured Property Tax $365k (01-202), VLF SWAP $247k (01-202) and SB 813 Supplemental tax $7k (01-214).

- Licenses and Permits $854k, 100.4% of FY 2021-22 Mid-Year Budget: Licenses and Permits activities continue to be robust this year. In April, led by $66k Building Permits on Ridgecrest $23k, Daves $14k and Greenwood $9k and $621k April 2022 YTD (01-236).
- Franchise Fees $267k, 85.6% of FY 2021-22 Mid-Year Budget: Received $66k franchise tax from Pacific Gas & Electric (01-262/01-263) and $5k from West Valley Collection franchise fees (01-266/01-267). - Intergovernmental $149k, 61.8% of FY 2021-22 Mid-Year Budget: Received $8k COPS ELEAS pass-thru grant revenue (03-318).
- Other Revenues $191k, 39.2% of FY 2021-22 Mid-Year Budget: In April, received $17k Road Impact Fees from projects on Vineland Ave, Ridgecrest Ave, Daves Ave, Dorado Ln, Poppy Ln, and Vineland Ct. - Gas Tax $128k, 83.3% of FY 2021-22 Mid-Year Budget: Received $6k from SB-1 Road Maintenance & Rehabilitation revenue (12-333) and $7k from 2107 Revenue (02-328). - Real Property Tax $177k, 63.4% of FY 2021-22 Mid-Year Budget: In April, received $32k in real property transfer tax for the month (01-222).
- Sales and Use Tax $422k, 99.1% of FY 2021-22 Mid-Year Budget: Already received Coronavirus Relief Fund of $410k. In April, received $49 from Board of Equalization sales tax and Public Safety Sales Tax $130. - Investment Income/Interest $11k, 122.2% of FY 2021-22 Mid-Year Budget: In April, received $4k interest from LAIF or the 3rd Quarter 2022>

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

83.3% of FY 2021-22 Mid-Year Budget
Expenditures

SIGNIFICANT FULL YEAR VARIANCES TO MID-YEAR BUDGET NARRATIVE  Expenditures $4.2 Million, 57.8% of FY 2021-22 Mid-Year Budget - Personnel $1,036k, 83.4% of FY 2021-22 Mid-Year Budget: Salaries and benefits tracking Mid-Year Budget. - Law Enforcement $763k, 70.8% of FY 2021-22 Mid-Year Budget: Paid monthly Police services $81k (03- 545).
- Construction $565k, 0.2% of FY 2021-22 Mid-Year Budget: No activity during month April 2022. - General Government $421k, 86.9% of FY 2021-22 Mid-Year Budget: In April, paid EMC Planning Group $18k for Housing Element Project, $2.5k to EOS Integration for providing information to Dicar and $3.3k to Shawn Spano for leading the FY 2023 Strategic Planning Session (01-535). CSG Consultants, Inc $3.8k for Code Enforcement consultant. Paid $3.5k to Bay Cities Joint Power Insurance for additional premiums on FY22 policy. - Maintenance $1,409k, 51.7% of FY 2021-22 Mid-Year Budget: In April, paid $10k to TL Engineering for Neighborhood Improvement Project – Daves Neighborhood, $4k to BKF Engineers for Hwy 9 Safety Improvement Gap Closure project and $5k to property owner of 14960 Natalye Rd for City damaging property (05-870).

Contract Sweeping services $4k for residential street sweeping. - Administration $389k, 92.7% of FY 2021-22 Mid-Year Budget: In April, paid Alana Consulting $55k for Plan Check services (12/169/2021 through 03/27/2022) and $5k to CSG Consultants for Building Inspector consultant (01-765). Recuring auto allowance for City Engineer ($400) and City Manager ($400). Deputy City Clerk to attend City Clerk workshop $1.6k and office desks for City Hall $4k. (01-740). - City Attorney $146k, 74.8% of FY 2021-22 Mid-Year Budget: City Attorney expenses $7.6k (01-425) and $16k for legal representation for open cases – Greenwood Ln., general litigation, Padgett, and Shekar cases (01-427). - Building Maintenance $28k, 4.4% of FY 2021-22 Mid-Year Budget: Paid $1k for two months janitorial services and supplies. (01-860).
- Equipment / Improvements $26k, 25.6% of FY 2021-22 Mid-Year Budget: Paid $3k to EOS Integration services for software licenses not yet transferred to Dicar. (01-811). - City Audit $15k, 31.4% of FY 2021-22 Mid-Year Budget: In April, paid $487 bank fees and ADP payroll processing services.

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STAFF REPORT
Meeting: City Council - Jun 21 2022
Agenda Heading: CONSENT CALENDAR
Staff Contact: Reynold Samoranos,
Department: Finance Manager
Title: Accept the LAIF Investment Report for April 30, 2022 Recommendation(s):

Staff recommends the Council accept the LAIF Investment Report for April 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 04 30 (Final 06-03-2022)

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City of Monte Sereno
Investment Accounts
Local Agency Investment Fund Wells Fargo Accounts Custodian For the period ending
April 30, 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
3/31/2022
Revenue Interest
and
(Disbursements)
Transfers within
WFB between
5508 and 2153
Transfer in/(Out)
(From WFB 5508
to LAIF)
4/30/2022 Comments
`
643,972.24 3,698.39 647,670.63 Interest earned for the FY 2021-22 3rd Qtr Period (01- 01-2022 through 03-31-2022)
3,500,000.00 3,500,000.00
500,000.00 500,000.00
200,000.00 200,000.00

0.00 0.00
4,843,972.24 3,698.39 0.00 0.00 4,847,670.63

0.00 0.00
130,755.19 750.94 131,506.13 Interest earned for the FY 2021-22 3rd Qtr Period (01- 01-2022 through 03-31-2022)
21,000.00 21,000.00
27,042.53 27,042.53

0.00 0.00
6,751.00 6,751.00
185,548.72 0.00 0.00 0.00 186,299.66
5,029,520.96 4,449.33 0.00 0.00 5,033,970.29
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
April 30, 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
3/31/2022
Revenue Interest
and
(Disbursements)
Transfers within
WFB between
5508 and 2153
Transfer in/(Out)
(From WFB 5508
to LAIF)
4/30/2022 Comments
(172,411.60) 840,616.09 (698,216.78) (30,012.29)
In April, received $282k for Secured Property Taxes
3rd Advance, $247k VLF SWAP (redirecting a
portion of property taxes from schools to counties
and cities), $83k Secured Property Taxes 4th
Advance, $58k Franchise Tax from PG&E, $22k from
various building permits on Daves Avenue
111,516.22 8,333.33 119,849.55 Received $8k for February 2022 COPS ELEAS Grant 233.56 339.56 573.12
210,638.19 12,692.31 223,330.50 Received $6k SB-1 revenue and $7k Gas Tax revenue.
497,148.86 2,518.40 499,667.26 Received storm drain fees for projects on Ridgecrest Av and Creekside Ct.

72.75 0.00 72.75
3,443.81 508.76 3,952.57 Received Loma Serena Ltg Secured Property Tax.

38.94 0.00 38.94
650,680.73 865,008.45 (698,216.78) 0.00 817,472.40
59,882.62 (694,447.90) 698,216.78 63,651.50
In April, paid $346k for Winchester Blvd. Class IV
Protected bike lane project, $81k for Police
Services, Building Official / Plan checks Consultant
$48k (12-16-2021 through 3-27-2022 services), $12k
Burke, Williams & Sorensen for City Attorney
Services and litigation cases and $7k ePermit
development for Planning & Engineering
departments.
5,740,084.31 175,009.88 0.00 0.00 5,915,094.19
NOTES:

Page 39 of 193 ends

Date: May 5, 2022
Current Meeting: June 2, 2022
Board Meeting: June 2, 2022

BOARD MEMORANDUM
TO: Santa Clara Valley Transportation Authority
Board of Directors
THROUGH: General Manager/CEO, Carolyn M. Gonot
FROM: Chief Planning and Programming Officer, Deborah Dagang SUBJECT: One Bay Area Grant Cycle 3 Program and Project Selection Criteria Policy-Related Action: No Government Code Section 84308 Applies: No

ACTION ITEM
RECOMMENDATION:

Recommend that the VTA Board of Directors:

1. Approve the One Bay Area Grant Cycle 3 (OBAG 3) program and project selection criteria.

2. Approve $10 million for CMA/CTA planning and programming activities to be implemented and managed for fiscal years 2023-2026.

EXECUTIVE SUMMARY:
• The One Bay Area Grant (OBAG) is a Metropolitan Transportation Commission (MTC) program that works closely with each county to distribute Federal Highway Administration funds to local projects and programs.
• Staff recommends the Board of Directors adopt the OBAG 3 program and project selection criteria.
• Adopting the criteria will allow for the release of the countywide call-for-projects in a timely manner and meet MTC's deadlines
• The programmatic recommendations should incentivize a higher rate of successfully delivered projects.
• The adoption of the OBAG 3 program includes allocation of $10 million for Congestion Management Agency planning and programming activities for fiscal years 2023-2026.

STRATEGIC PLAN/GOALS:

Implementation of the OBAG program falls under Business Line 2 of VTA's Strategic Plan:

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Delivering Projects and Programs. Business Line 2 charges VTA to "Provide a comprehensive line of services, technical support, funding programs, and mobility solutions to the public and Member Agencies."
FISCAL IMPACT:

This action prioritizes federal programming for local Congestion Management Program Member Agency projects. Only funds programmed to VTA for its own projects will flow to VTA. The budget impacts of those projects will be addressed in a separate memorandum. The Member Agencies will obtain their funding through Caltrans. If adopted as proposed, $10 million will be made available for future VTA Congestion Management Program budgets covering fiscal years 2023 through 2026.

BACKGROUND:

The One Bay Area Grant program (OBAG) was created by the Metropolitan Transportation Commission (MTC) in May 2012 to better integrate the region's discretionary Federal Highway Administration's funding program with the Regional Transportation Plan and Sustainable Communities Strategy, collectively known as Plan Bay Area 2050. The primary objective of the program is to strategically advance Plan Bay Area 2050 implementation through OBAG investments and policies.

The OBAG program is divided into a Regional Program, managed by MTC, and a County & Local Program, managed by MTC in partnership with the nine Bay Area County Transportation Agencies (CTAs). VTA is the CTA for Santa Clara County. MTC is preparing for the third round of OBAG funding known as OBAG 3.

MTC adopted final OBAG 3 guidelines for the County & Local Program on March 23, 2022.

The funding sources for the four-year program include Surface Transportation Block Grant Program (STP) and Congestion Mitigation and Air Quality (CMAQ) funds.

MTC OBAG 3 Program Changes
For this cycle, there are several major changes to the program. Most significantly, MTC has developed fund targets rather than providing a guaranteed funding amount for each county. In previous cycles, VTA issued a call-for-projects and developed a project list based on a guaranteed funding amount provided by MTC. For OBAG 3, counties are only provided with an estimated funding amount provided by MTC. The funding estimate for Santa Clara County is approximately $91 million. In addition, the CTA is expected to over program the project list to 120% of the base amount, which is approximately $109.2 million.

While VTA will still issue a call-for-projects and develop a list of projects, MTC will make the final project selection based on: a) CTA prioritization (75 points), b) regional impact (15 points), c) deliverability (10 points), and d) air quality for CMAQ-eligible projects only (10 points).

The second significant change is that MTC will no longer allow guaranteed funding amounts for specific types of projects. In prior cycles, the Santa Clara County OBAG program consisted of guaranteed funds for local streets and roads rehabilitation as well as competitive programs for Safe Routes to School, complete streets, and Priority Development Area (PDA) planning.

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Therefore, all project types will compete with each other on both the local and regional level.

DISCUSSION:

To prepare for the call-for-projects and projects selection process, VTA has developed draft project selection criteria by assigning points to various categories on MTC's template application. The Technical Advisory Committee's Capital Improvements Program Working Group (CIPWG) requested aligning the criteria with the application.

After much consideration, the criteria points were chosen based on a) staff knowledge of the objectives of Plan Bay Area 2050 and the program guidelines; b) regional level discussions on program development with MTC and CTAs; and c) the unique needs of the county expressed by CIPWG members. Additionally, the criteria align well with MTC’s goals which should allow for Santa Clara County projects to compete well within the region.

The criteria and corresponding evaluation points are shown in Attachment A - One Bay Area Grant (OBAG 3) - County & Local Program-Santa Clara County Project Selection Criteria.

Project Categories
As in prior cycles, MTC carried forward the investment policy that requires large populated counties to program seventy percent of the funds in Priority Development Areas. Therefore, once the 30 percent non-PDA threshold of ranked projects has been reached, the remaining projects must meet the PDA definition. With that restriction in mind, staff proposes the following project categories with approximate target percentages for the Santa Clara County OBAG 3 program.

Fix-it First Road Preservation (approximately 30%)
STP fund are available to local jurisdictions for road preservation. While VTA supports and encourages the use of these funds within or supporting the PDAs, it is not required. Consistent with previous Board-adopted programs, the first expected use will be for rehabilitation and reconstruction of Federal-Aid eligible roads with a pavement condition index (PCI) of 70 or less.

Complete Streets (approximately 51%)
The category rewards projects that are in or support a PDA by MTC definition. The predominate federal fund source is CMAQ but may include STP funds. It is open to all jurisdictions within the county and VTA to fund pedestrian, bicycle, and signal systems projects designed to support dense development and use of alternative transportation modes by installing complete streets elements.

Safe Routes to School - infrastructure only (approximately 6%) The Safe Routes to School (SRTS) category is funded exclusively by federal CMAQ. CMAQ funds in this category focus on reducing greenhouse gases as well as the health and safety of school-aged children by promoting walking, biking, transit and carpooling to school, targeting grades K-12. Additional programming in the Complete Streets category would be available for SRTS projects.

Note that MTC has established an investment target of $25 million for SRTS at the regional level as well as $200 million for Active Transportation Projects.

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Planning (approximately 2%)
Under OBAG 3, various planning exercises are available for STP funds. These may include local plans for "other new PBA 2050 Growth Geographies", PDA plans, safety, Vision Zero, community-based transportation plans, mobility hub, and regional advance mitigation planning.

CMA/CTA Planning (approximately 9%)
VTA recommends programming $10 million for Congestion Management Agency (CMA) planning and programming over the four-year period FY 2023-2026 to implement, develop and manage the program. This is a similar to OBAG 2 when the VTA Board allocated $10.9 million.

Typically, CMA/CTA activities are funded through Member Agency fees, Planning, Programming & Monitoring (PPM) funds from the State Transportation Improvement Program (STIP) and the OBAG program STP Planning funds. The funds are not subject to the prioritization process.

Federal-Aid Secondary, county only (approximately 2%)
California Streets and Highways Code Section 182.6(d)(2) requires that a portion of STP funds be set aside and guaranteed for use by each unincorporated county area, and based on 110% of the apportionment of Federal-Aid Secondary (rural) funding. The funds are not subject to the prioritization process.

Schedule
MTC has developed an expedited five-month OBAG 3 timeline which will require VTA and Member Agencies to evaluate projects very quickly. During prior cycles, the county's program development and project submission spanned eleven months.

Based on MTC’s timeline, VTA has developed the Santa Clara County OBAG 3 program schedule as shown in Table 1.

Table 1 - 2022 Santa Clara County OBAG 3 Program Schedule Milestone Date
MTC releases county/local program Call-for-Projects 5/01/2022 TAC/CAC/BPAC/PAC/CMPP review criteria May 2022
DRAFT Compete Streets Checklist due to VTA 5/25/2022
VTA Board adopts criteria 6/02/2022
VTA releases Call-for-Projects 6/03/2022
VTA BPAC reviews Compete Streets Checklists 6/08/2022
Applications due to VTA 7/08/2022
VTA staff review applications (tentative) 7/11-15/2022
CIPWG Scoring Committee reviews applications (tentative) 7/18-21/2022 TAC/CAC/BPAC/PAC/CMPP review Prioritized list of Projects August 2022 Board adopts Prioritized list of Projects 9/1/2022
Prioritized list of Projects due to MTC 9/30/2022
Project Evaluation

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Following board-adopted policy, the applications will be reviewed and ranked by a scoring committee drawn from CIPWG.

All VTA member agencies are represented in CIPWG. However, evaluation committee participation is voluntary. No agency may have more than one representative. The committee minimum size is three, and the maximum is ten. In addition, committee members may not evaluate their own project to avoid a conflict.

ALTERNATIVES:

The VTA Board may modify the program, the project selection criteria, and/or the criteria points.

Any delay in adopting the criteria could lead to issues in delivering a project list to MTC within their expedited timeline.

CLIMATE IMPACT:

The projects identified in the OBAG program focus on transit, bicycle and pedestrian infrastructure. These improvements promote mode shift that can have a transformative impact on climate change by reducing vehicle miles traveled and greenhouse gas emissions.

Prepared by: Celeste Fiore
Memo No. 8179
ATTACHMENTS:
• Attach A_8179_Criteria (PDF)
• Attach B_8179_Acronyms (PDF)

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ATTACHMENT A - One Bay Area Grant (OBAG 3) – County & Local Program – Santa Clara County Project Selection Criteria Template Application Form (v1) 1 Project Information
Project Name: Project name
Project Sponsor: Project sponsor
Sponsor Single
Point of Contact:

Contact name
Contact phone
Contact email
Project Location: Project location
Brief Project
Description:

Project description
Program Eligibility
Federal Fund
Eligibility
Is the project eligible
for federal
transportation funds?
Select the OBAG 3 federal fund source(s) for which the project is eligible:
☐ Surface Transportation Block Grant (STP) Program (See FHWA fact sheet) ☐ Congestion Mitigation & Air Quality Improvement (CMAQ) Program (See FHWA fact sheet)
Note: projects eligible for CMAQ funding must provide inputs for air quality improvement calculations, using templates provided on the OBAG 3 webpage.

Eligible Project
Type
Is the project an
eligible project type?
Select the eligible project type(s) (refer to MTC Resolution No. 4505 for detailed eligibility guidelines):

Growth Framework Implementation
☐ PDA Planning Grant
☐ Local Planning Grant (for other Plan
Bay Area 2050 Growth Geographies)
Complete Streets & Community Choice
☐ Bicycle/Pedestrian Infrastructure
☐ Bicycle/Pedestrian Program
☐ Safe Routes to School (SRTS) NonInfrastructure program ☐ SRTS Infrastructure
☐ Safety project
☐ Safety Planning efforts
☐ Complete Streets improvements
☐ Streetscape improvements
☐ Local Streets and Roads Preservation
☐ Rural Roadway Improvement
☐ Community-Based Transportation
Plan (CBTP) or Participatory
Budgeting (PB) Process in an Equity
Priority Community (EPC)
☐ CBTP/PB Project Implementation
Climate, Conservation, & Resilience
☐ Transportation Demand Management
(TDM) Program
☐ Mobility Hub
☐ Parking/Curb Management
☐ Car/Bike Share Capital
☐ Open Space Preservation and
Enhancement
☐ Bicycle/Pedestrian Access to Open
Space/Parkland
☐ Regional Advance Mitigation Planning
(RAMP)
Multimodal Systems Operations &
Performance
☐ Transit Capital Improvement
☐ Transit Station Improvement
☐ Transit Transformation Action Plan
Project Implementation
☐ Active Operational Management
☐ Mobility Management and
coordination

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ATTACHMENT A - One Bay Area Grant (OBAG 3) – County & Local Program – Santa Clara County Project Selection Criteria Template Application Form (v1) 2 Max Points
which ones and how
Supports Transportation strategies pts
Yes 10
Partially 5
No 1
Policy Alignment
Federal
Performance
Goals
How does the
project support
federal
performance
measures?
MAX 5 points
Select the federal performance measures that are supported by the project:
☐ Safety: Significantly reduce traffic fatalities and serious injuries for all users on all public roads and improve the safety of all public transportation systems. ☐ Infrastructure Condition: Improve the pavement condition on the Interstate and National Highway System (NHS) and NHS bridges and maintain the condition of public transit assets in a state of good repair.
☐ Congestion Reduction: Significantly reduce congestion on the NHS in urbanized areas.
☐ System Reliability: Improve the reliability of the Interstate system and NHS. ☐ Freight Movement and Economic Vitality: Improve the reliability of the Interstate system for truck travel.
☐ Environmental Sustainability: Maximize emission reductions from CMAQ-funded projects.

Describe how the project supports the selected federal performance measure(s):

Please describe
Plan Bay Area 2050
Strategies
How does the project
align with Plan Bay
Area 2050?
Describe how the project supports Plan Bay Area 2050 Strategies and/or Implementation Plan:

Please describe
Regional Policy
Alignment
How does the project
align with other
regional policies and
plans?
Select the regional plans and policies with which the project is aligned:
☐ Regional Safety/Vision Zero Policy
☐ MTC’s Equity Platform
☐ Regional Active Transportation Plan
☐ Transit Oriented Communities Policy
☐ Blue Ribbon Transit Transformation
Action Plan
Describe how the project aligns with the selected regional plans and/or policies:

Please describe
Regional Growth
Geographies
Does the project
support PBA
2050 Growth
Geographies?
Indicate the project’s relationship to Plan Bay Area 2050 Growth Geographies:

Priority Development Area (PDA)
☐ Meets the uniform definition of a PDA-supportive project (within one mile or less of a PDA boundary)
☐ Does not meet the uniform definition of a PDA-supportive project, but otherwise has a clear and direct connection to PDA implementation Please describe
☐ Included in a locally-adopted PDA plan (e.g. Specific Plan, PDA Investment and Growth Strategy)
Locally-adopted PDA plan reference
Transit Rich Area (TRA)
☐ Within a TRA or otherwise supportive of a TRA (see Growth Geographies map) Please describe
Priority Production Area (PPA)
☐ Supports the preservation of a PPA (see Growth Geographies map) Please describe
5 10
5 10
1 1
1 1
1 1
10 10
4 10
8 MAX 10
points
Check all
applicable
boxes

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ATTACHMENT A - One Bay Area Grant (OBAG 3) – County & Local Program – Santa Clara County Project Selection Criteria Template Application Form (v1) 3 Max Points Equity Priority
Communities
Does the
project
invest in
historically
underserved
communities?
Indicate how the project invests in historically underserved communities, including Plan Bay Area 2050 Equity Priority Communities (EPCs):
☐ Located within and supportive of an EPC (see Equity Priority Communities map) ☐ Not located within an EPC, but is otherwise supportive of an EPC or other historically underserved community
Description of how project supports an EPC or other historically underserved community
Local Housing
Policies
Is the project located in
a jurisdiction with
policies that
support
affordable
housing?
Indicate if the project is locate in a jurisdiction that has adopted policies which support the “3Ps” approach to affordable housing by listing the relevant adopted policies for each element of the 3Ps. Additional guidance and resources on affordable housing policies are provided on the OBAG 3 webpage. ☐ Protect current residents from displacement (with emphasis on policies that have demonstrated effectiveness in community stabilization and anti-displacement).

List of applicable policies
☐ Preserve existing affordable housing (with emphasis on policies that have demonstrated effectiveness in community stabilization and anti-displacement).

List of applicable policies
☐ Produce new housing at all income levels.

List of applicable policies
Community Support
Community
Support
Does the
project have
community support,
particularly if it is
located in a historically
underserved
community?
MAX 10 points
____________________
MAX 10 points
Indicate if the project has demonstrated community support through one or more of the following:
☐ Public outreach responses specific to this project, including comments received at public meetings or hearings, feedback from community workshops, or survey responses.

Summary of public outreach responses
☐ Project is consistent with an adopted local transportation plan.

Description of project consistency with local plan
Indicate if the project has demonstrated support from communities disproportionately impacted by past discriminatory practices, including redlining, racial covenants, urban renewal, and highway construction that divided low income and communities of color. Resources for identifying impacted communities are available on the OBAG 3 webpage. Community support may be demonstrated through one or more of the following:
☐ Prioritization of the project in a Community Based Transportation Plan (CBTP) or Participatory Budgeting (PB) process, or a local plan that includes the proposed project.

CBTP or PB reference
☐ Endorsements from a Community-Based Organizations representing historically underserved and potentially impacted communities.

Description of CBO endorsement
10 10
10 10
10 5
4 3
3 10
5 10
5

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ATTACHMENT A - One Bay Area Grant (OBAG 3) – County & Local Program – Santa Clara County Project Selection Criteria Template Application Form (v1) 4 Max Points Deliverability & Readiness
Project Readiness
Is the project ready to
be delivered?
Not applicable for
non-capital projects
Describe the readiness of the project, including right-of-way impacts and the type of environmental document/clearance required:

Project readiness, right-of-way, environment
If the project touches Caltrans right-of-way, include the status and timeline of the necessary Caltrans approvals and documents, the status and timeline of Caltrans requirements, and approvals such as planning documents (PSR or equivalent) environmental approval, encroachment permit.

Caltrans approvals status and timeline
Deliverability
Are there any barriers
to on-time delivery?
Describe the project’s timeline and status, as well as the sponsor’s ability to meet the January 31, 2027 obligation deadline:

Project timeline, status, and obligation deadline
Identify any known risks to the project schedule, and how the CTA and project sponsor will mitigate and respond to those risks:

Project risks and mitigation strategies
Project Cost & Funding
Grant Minimum
Does the project meet
the minimum grant
size requirements?
☐ Project meets the minimum grant size requirements. Projects must be a minimum of $500,000 for counties with a population over 1 million (Alameda, Contra Costa, and Santa Clara counties) and $250,000 for counties with a population under one million (Marin, Napa, San Francisco, San Mateo, Solano, and Sonoma counties).

Exception request to minimum grant size
Local Match
Does the project meet
local match
requirements?
☐ Project sponsor will provide a local match of at least 11.47% of the total project cost.

Notes on local match, optional
Fix-It First Road
Preservation
Preservation of the
local streets and roads
on federally eligible
arterials and collectors
☐ Project meets the requirements for federal-aid eligible system. Confirmation is required through the Highway Performance Monitoring System and attached to the application prior to award of funds.

Please describe and include location map(s) indicating segment(s). 10 5
5 2 points for match up to 15%.
5 points for match greater than or equal to 20%.
match.
10

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ATTACHMENT A - One Bay Area Grant (OBAG 3) – County & Local Program – Santa Clara County Project Selection Criteria Template Application Form (v1) 5 Project Cost & Funding
OBAG 3 Grant Request:

Total Grant Request $
Project Cost & Schedule:

Project Phases Total Cost
Secured Funds Unsecured Funds Schedule
(Start dates:

Planned, Actual) Amount Fund Sources OBAG 3 Grant
Request
Remaining
Funding Needed
Planning/
Conceptual $ $ Secured fund sources, notes $ $ Month/Year Environmental
Studies (PA&ED) $ $ Secured fund sources, notes $ $ Month/Year Design
Engineering
(PS&E)
$ $ Secured fund sources, notes $ $ Month/Year
Right-of-way $ $ Secured fund sources, notes $ $ Month/Year Construction $ $ Secured fund sources, notes $ $ Month/Year Total $ $ $ $
Project Investment by Mode:

Mode Share of project
investment
Auto %
Transit %
Bicycle/Pedestrian %
Other %
Total 100%

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STAFF REPORT
Meeting: City Council - Jun 21 2022
Agenda Heading: CONSENT CALENDAR
Staff Contact: Jessica Kahn,
Department: City Engineer
Title: Authorize the City Manager to Submit Applications for the One Bay Area Grant (OBAG) Cycle 3 to the Santa Clara Valley Transportation Authority (VTA) for Three Candidate Projects
Recommendation(s):

Staff recommends that City Council authorize the City Manager to submit applications for the One Bay Area Grant (OBAG) Cycle 3 to the Santa Clara Valley Transportation Authority (VTA) for the Daves Avenue Complete Streets, Highway 9 Safety Improvements Gap Closure, and Winchester Boulevard Complete Streets South Segment Projects.

Background Information:

One Bay Area Grant Cycle 3 (OBAG 3) will provide more than $750 million in federal funding for projects from 2023 to 2026 in the nine-County Bay Area. The OBAG 3 program is divided into a Regional Program, managed by the Metropolitan Transportation Commission (MTC), and a County & Local Program, managed by MTC in partnership with the nine Bay Area County Transportation Agencies (CTAs). The Santa Clara Valley Transportation Authority (VTA) is the CTA for Santa Clara County. MTC has set up a website to share documents and information on this program: https://mtc.ca.gov/funding/federal-funding/federalhighwayadministration-grants/one-bay-area-grant-obag-3 A call-for-applications was released on June 3, with a deadline to submit applications by July

25. This program, with approximately $91 million available in Santa Clara County, will fund eligible transportation projects in several categories, is further described in the Program and Project Selection Criteria (Attachment 1).

Better Streets Commission Recommendation
This item was discussed by the Better Streets Commission at their June 9, 2022 meeting. The Commissioners discussed each project and provided recommendations for additional information and clarification to their associated MTC Complete Streets Checklists as required by the OBAG program. The Commission agreed that if funding were only to be available for one of the City’s applications that the Highway 9 Safety Improvements Gap Closure holds the highest priority as it is the most “shovel ready” project and is likely to be the most competitive application. The Commission unanimously recommended (3-0-1, Commissioner Saxena

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absent.) to the City Council support the Monte Sereno application submissions to OBAG as proposed by staff.

Analysis:

Staff reviewed the City’s priority capital projects and is recommending three candidate projects for further consideration in OBAG 3. These projects are included in the 5-Year Capital Improvements Plan (CIP), meet the eligibility requirements, and are considered to be competitive projects under the draft Selection Criteria. This funding program requires local matching funds of at least 11.47% of the total project cost, however proving a match of 20% or more will result in a more competitive project application and is proposed for two of the three projects below.

Daves Avenue Complete Streets Project
This grant application will request funding to design and construct Complete Streets improvements between Winchester Boulevard and the City limits.

This complete streets project combines several previously proposed projects (most notably the sidewalk gap closure between Equestrian Way and the City limits) and maintenance activities for Daves Avenue between Winchester Boulevard and the City limits. Improvements include enhanced bike lanes, pedestrian crossings, sidewalk improvements and gap closure, and intersection modifications for safer biking and walking. Design work for this project is scheduled in the City’s CIP for design in FY23-24 and construction in FY26-27 but may be expedited if award grant funding. The grant application will request funds for both the design and construction phases. The project will include both safety improvements and street resurfacing components.

Table 1. Daves Avenue Conceptual Cost Estimates
Task Cost Estimate
Final Design
Engineering and Permitting $180,000
Project Management & Outreach $12,000
Contingency $36,000
Final Design Total $228,000
Construction
Construction $1,200,000
Construction Management $120,000
Project Management & Outreach $12,000
Minor Contract Revisions $90,000
Contingency $240,000
Construction Total $1,662,000
GRAND TOTAL $1,890,000
Table 2. Daves Avenue Proposed Funding Sources

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Final Design and
Construction Costs $ 1,890,000
OBAG Request $ 1,512,000
Local Match (20%) $ 378,000
Total Funds Required $ 378,000
Highway 9 Safety Improvements Gap Closure
This grant application will request funding to for the construction of a pedestrian walkway on the north side of Highway 9.

This project consists of the completion of pedestrian improvements of the Highway 9 Phase II Improvement Project. This project is fully designed and awaiting permitting approval by Caltrans, who may require minor revisions for approval.

Table 3. Highway 9 Cost Estimates
Task Cost
Estimate
Construction
Final Permitting $30,000
Construction $539,200
Construction Management $53,900
Project Management & Outreach $5,400
Minor Contract Revisions $40,400
Contingency $107,800
GRAND TOTAL $776,700
Table 4. Highway 9 Proposed Funding Sources
Construction Costs $ 776,700
OBAG Request $ 621,360
Local Match (20%) $ 155,340
TDA funding (secured funds) $ 26,500
Total Funds Required $ 128,840
Winchester Boulevard Complete Streets South Segment
This grant application will request funding to for the final design and construction of Complete Streets improvements between Blossom Hill Road and Lark Avenue. This is a joint application with Town of Los Gatos as lead agency. The Town intended on submitting a separate application for improvements on Winchester Boulevard north of Lark Avenue.

In 2020 the Town of Los Gatos completed a conceptual street improvements design which recommended Complete Streets improvements, such as Class IV bike lanes with hard separations, a landscaped median, new sidewalk, and enhanced pedestrian crossings. The Class IV bike lanes between Blossom Hill Road and Albright Way were installed in 2021. The

Page 52 of 193 ends

final design of this project was awarded a Measure B capital grant in the amount of $1,734,250.

The City would contribute matching funds to this grant in an amount proportional to the capital improvements within the City limits. Based on the Winchester Boulevard Class IV Bikeway Project completed earlier this calendar year, this is estimated to be 17% of the total project.

Staff coordinated with Town of Los Gatos staff regarding the Winchester South project. At its meeting on June 21, the Los Gatos Town Council will consider a similar staff recommendation to submit a joint grant application.

Table 5. Winchester Boulevard Conceptual Cost Estimates Task Cost Estimate
Final Design
Engineering and Permitting $2,595,500
Project Management & Outreach $173,100
Contingency $830,600
Final Design Total $3,599,200
Construction
Construction $17,303,200
Construction Management $1,730,400
Project Management & Outreach $173,100
Minor Contract Revisions $1,301,000
Contingency $6,152,400
Construction Total $26,660,100
GRAND TOTAL $30,260,000
Table 6. Winchester Boulevard Proposed Funding Sources
Final Design and Construction Costs $ 30,260,000
OBAG Request $ 26,789,178
Required Local Match (11.47%) $ 3,470,822
Measure B Grant (secured funds) $ 1,225,616
Total Funds Required $ 2,245,206
Funds from Monte Sereno
(approximately 17%) $ 381,685
California Environmental Quality Act:

Submitting a grant application is not a project defined under CEQA, and no further action is required.

Fiscal Impact:

There is no fiscal impact as a result of the recommended action. If the grant applications are awarded, the Council will have the opportunity to review the funding agreement to accept the grant funds and commit to local match funds. The City’s local match amount would depend on the outcomes of the grant applications, fund required for each project are summarized below.

Page 53 of 193 ends

Table 7. Estimated Local Match Requirements
Project Total Project Costs Monte Sereno
Match Required
Daves Avenue Complete Streets
Project $1,890,000 $378,000
Highway 9 Safety Improvements
Gap Closure $776,700 $128,840
Winchester Boulevard Complete
Streets South Segment $30,260,000 $381,685
All Projects $32,926,700 $888,525
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:

One Bay Area Grant Cycle 3 Program and Project Selection Criteria

Page 54 of 193 ends

Date: May 5, 2022
Current Meeting: June 2, 2022
Board Meeting: June 2, 2022

ACTION ITEM
RECOMMENDATION:

Recommend that the VTA Board of Directors:

1. Approve the One Bay Area Grant Cycle 3 (OBAG 3) program and project selection criteria.

2. Approve $10 million for CMA/CTA planning and programming activities to be implemented and managed for fiscal years 2023-2026.

STRATEGIC PLAN/GOALS:

Implementation of the OBAG program falls under Business Line 2 of VTA's Strategic Plan:

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Page 2 of 5 ends

BACKGROUND:

MTC adopted final OBAG 3 guidelines for the County & Local Program on March 23, 2022.

The funding sources for the four-year program include Surface Transportation Block Grant Program (STP) and Congestion Mitigation and Air Quality (CMAQ) funds.

Page 56 of 193 ends

Page 3 of 5 ends

Therefore, all project types will compete with each other on both the local and regional level.

DISCUSSION:

The criteria and corresponding evaluation points are shown in Attachment A - One Bay Area Grant (OBAG 3) - County & Local Program-Santa Clara County Project Selection Criteria.

Note that MTC has established an investment target of $25 million for SRTS at the regional level as well as $200 million for Active Transportation Projects.

Page 57 of 193 ends

Page 4 of 5 ends

Based on MTC’s timeline, VTA has developed the Santa Clara County OBAG 3 program schedule as shown in Table 1.

Page 58 of 193 ends

Page 5 of 5 ends

Following board-adopted policy, the applications will be reviewed and ranked by a scoring committee drawn from CIPWG.

ALTERNATIVES:

The VTA Board may modify the program, the project selection criteria, and/or the criteria points.

Any delay in adopting the criteria could lead to issues in delivering a project list to MTC within their expedited timeline.

CLIMATE IMPACT:

Prepared by: Celeste Fiore
Memo No. 8179
ATTACHMENTS:
• Attach A_8179_Criteria (PDF)
• Attach B_8179_Acronyms (PDF)

Page 59 of 193 ends

Contact name
Contact phone
Contact email
Project Location: Project location
Brief Project
Description:

Eligible Project
Type
Is the project an
eligible project type?
Select the eligible project type(s) (refer to MTC Resolution No. 4505 for detailed eligibility guidelines):

Page 60 of 193 ends

Describe how the project supports the selected federal performance measure(s):

Please describe
Plan Bay Area 2050
Strategies
How does the project
align with Plan Bay
Area 2050?
Describe how the project supports Plan Bay Area 2050 Strategies and/or Implementation Plan:

Please describe
Regional Growth
Geographies
Does the project
support PBA
2050 Growth
Geographies?
Indicate the project’s relationship to Plan Bay Area 2050 Growth Geographies:

Page 61 of 193 ends

List of applicable policies
☐ Preserve existing affordable housing (with emphasis on policies that have demonstrated effectiveness in community stabilization and anti-displacement).

List of applicable policies
☐ Produce new housing at all income levels.

Summary of public outreach responses
☐ Project is consistent with an adopted local transportation plan.

CBTP or PB reference
☐ Endorsements from a Community-Based Organizations representing historically underserved and potentially impacted communities.

Description of CBO endorsement
10 10
10 10
10 5
4 3
3 10
5 10
5

Page 62 of 193 ends

Project timeline, status, and obligation deadline
Identify any known risks to the project schedule, and how the CTA and project sponsor will mitigate and respond to those risks:

Exception request to minimum grant size
Local Match
Does the project meet
local match
requirements?
☐ Project sponsor will provide a local match of at least 11.47% of the total project cost.

Please describe and include location map(s) indicating segment(s). 10 5
5 2 points for match up to 15%.
5 points for match greater than or equal to 20%.
match.
10

Page 63 of 193 ends

ATTACHMENT A - One Bay Area Grant (OBAG 3) – County & Local Program – Santa Clara County Project Selection Criteria Template Application Form (v1) 5 Project Cost & Funding
OBAG 3 Grant Request:

Total Grant Request $
Project Cost & Schedule:

Project Phases Total Cost
Secured Funds Unsecured Funds Schedule
(Start dates:

Mode Share of project
investment
Auto %
Transit %
Bicycle/Pedestrian %
Other %
Total 100%

Page 64 of 193 ends

STAFF REPORT
Meeting: City Council - Jun 21 2022
Agenda Heading: NEW BUSINESS
Staff Contact: Reynold Samoranos,
Department: Finance Manager
Title: Consider and Approve Fiscal Year 2022-2023 Operating and Capital Budget and Adopt a Resolution Adopting the Proposed Fiscal Year 2022- 2023 Operating and Capital Budget
Recommendation(s):

Staff recommends that the City Council consider and approve the FY 2022-2023 Operating and Capital Budget and adopt a resolution adopting the proposed FY 2022-2023 Operating and Capital Budget.

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 for FY 2022-2023 Proposed Budget
(1) FY 2022-23 Proposed Budget (Final 06-21-2022)
FY 2022-23 Proposed Budget vs FY 2021-22 Mid Year Budget Narrative (06-21-2021) CIP FY 2022-23 Proposed Budget
Table on Grants for Funding Source CIP FY 2022-23 Proposed Budget Proposed FY2022-23 Digital Budget Book

Page 65 of 193 ends

RESOLUTION NO. XXXX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MONTE

SERENO ADOPTING THE BUDGET FOR THE CITY OF MONTE SERENO FOR THE FISCAL YEAR 2022-2023 AND MAKING APPROPRIATIONS

THEREFORE
WHEREAS, there has been presented to this City Council for its Consideration and adoption an annual budget (“Budget”) for the City of Monte Sereno for the Fiscal Year 2022- 2023 and
WHEREAS, the City Council has considered the Budget; and WHEREAS, the City Council has approved the Budget, the total amount of operating expenditures for all funds is $3,933,098 and the total amount of the capital budget for all funds is $1,830,000 for a total Budget of $5,763,098.

BE IT RESOLVED by the City Council of the City of Monte Sereno that the Budget is hereby adopted as the Budget for the City of Monte Sereno for the Fiscal Year 2022-2023.

BE IT FURTHER RESOLVED that amounts set out as expenses in the Budget for the purposes expressed therein are hereby appropriated.

REGULARLY passed and adopted this 21st day of June, 2022.

AYES:

NOES:

ABSTAIN:

ABSENT:

BY:_____________________________________
Javed I. Ellahie, Mayor
ATTEST:
____________________________
Michelle Estabillo, City Clerk

Page 66 of 193 ends

THE CITY OF MONTE SERENO
FY 2022-23 Proposed Budget vs. FY 2021-22 Mid Year Budget Accoun Ac Date

REVENUES

PROPERTY TAX

LICENSE & PERMITS

FRANCHISE TAX

INTERGOVERNMENTAL

OTHER REVENUE

GAS TAX

INTEREST

REAL PROPERTY TAX

SALES TAX
FEDERAL RELIEF FUNDS and OTHER
FINES

TOTAL REVENUE
FY 2021-22
Mid-Year Budget
FY 2022-23
Proposed
Budget
FY 2023 Proposed
Budget vs. FY
2022 Mid-Year
Budget
FY 2023
Proposed
Budget vs. FY
2022 Mid-Year
Budget
Customer Name
2,289,341 2,326,700 37,359 1.6%
850,859 914,100 63,241 7.4%
310,567 310,000 (567) -0.2%
240,947 236,485 (4,462) -1.9%
486,616 280,700 (205,916) -42.3%
153,505 191,000 37,495 24.4%
9,241 11,200 1,959 21.2%
279,647 145,000 (134,647) -48.1%
15,740 12,000 (3,740) -23.8%
409,905 772,100 362,195 88.4%
2,655 3,000 345 13.0%
5,049,023 5,202,285 153,262 3.0%
Page: 1 of 12 File: FY 2022-23 Proposed Budget (Final 06-21-2022).xlsx Page 67 of 193

THE CITY OF MONTE SERENO
FY 2022-23 Proposed Budget vs. FY 2021-22 Mid Year 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 - $89,000
03-316 Police Special Tax Assessment per Assessor's Report May 5, 2022 - $89,000

SALES TAX
01-296 Sales and UseTax

TOTAL SALES TAX
01-298 Relief Fund (Federal)

TOTAL FEDERAL RELIEF FUNDS
Notes to Relief Funds (Federal) $897k
01-298 Silicon Valley Clean Energy ($18k) - Secured if usd for solar panel/battery Prop 68 Per Capita Program ($180k) - Secured if expended by 12/31/2023

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

TOTAL GAS TAX
FY 2021-22
Mid-Year Budget
FY 2022-23
Proposed
Budget
FY 2023 Proposed
Budget vs. FY
2022 Mid-Year
Budget
FY 2023
Proposed
Budget vs. FY
2022 Mid-Year
Budget
2,066,836 2,108,700 41,864 2.0%
87,000 89,000 2,000 2.3%
3,586 5,000 1,414 39.4%
18,155 35,000 16,845 92.8%
111,515 89,000 (22,515) -20.2%
2,113 0 (2,113) -100.0%
114 0 (114) -100.0%
4 0 (4) -100.0%
19 0 (19) -100.0%
0 0 0 NA
2,289,341 2,326,700 37,359 1.6%
Police Special Tax Assessment per Assessor's Report May 5, 2022 - $89,000 15,740 12,000 (3,740) -23.8%
15,740 12,000 (3,740) -23.8%
409,905 772,100 362,195 88.4%
409,905 772,100 362,195 88.4%
Silicon Valley Clean Energy ($18k) - Secured if usd for solar panel/battery Prop 68 Per Capita Program ($180k) - Secured if expended by 12/31/2023 81,630 109,000 27,370 33.5%
71,875 82,000 10,125 14.1%
153,505 191,000 37,495 24.4%
Page: 2 of 12 File: FY 2022-23 Proposed Budget (Final 06-21-2022).xlsx Page 68 of 193

THE CITY OF MONTE SERENO
FY 2022-23 Proposed Budget vs. FY 2021-22 Mid Year Budget

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

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
01-243 Planning Miscellaneous
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
Mid-Year Budget
FY 2022-23
Proposed
Budget
FY 2023 Proposed
Budget vs. FY
2022 Mid-Year
Budget
FY 2023
Proposed
Budget vs. FY
2022 Mid-Year
Budget
17,600 17,600 0 0.0%
38,000 38,000 0 0.0%
38,350 38,400 50 0.1%
130,944 130,000 (944) -0.7%
35,638 36,000 362 1.0%
50,034 50,000 (34) -0.1%
310,567 310,000 (567) -0.2%
169,402 145,000 (24,402) -14.4%
110,245 0 (110,245) -100.0%
279,647 145,000 (134,647) -48.1%
980 680 (300) -30.6%
17,628 12,320 (5,308) -30.1%
35,770 36,000 230 0.6%
6,255 6,300 45 0.7%
600,629 697,000 96,371 16.0%
64,962 50,000 (14,962) -23.0%
3,598 3,000 (598) -16.6%
186 200 14 7.5%
11,177 8,500 (2,677) -23.9%
0 0 0 NA
100 100 NA
48,105 40,000 (8,105) -16.8%
61,570 60,000 (1,570) -2.5%
850,859 914,100 63,241 7.4%
0 0 0 NA
2,655 3,000 345 13.0%
2,655 3,000 345 13.0%
Page: 3 of 12 File: FY 2022-23 Proposed Budget (Final 06-21-2022).xlsx Page 69 of 193

THE CITY OF MONTE SERENO
FY 2022-23 Proposed Budget vs. FY 2021-22 Mid Year Budget

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

Notes to Interest - General - $11,200
01-282 LAIF interest payment received in arrears - Estimated $11,200 FY 2023.

TOTAL INTERGOVERNMENTAL
Notes to Miscellaneous (05-323) - $129,185
05-323 Measure B - Pavement Management Program (Annual) - $80,685 05-323 TDA - Highway 9 Safety Improvement Gap Closure - $26,500 05-323 VRF - To be determined allocation - $22,000
FY 2021-22
Mid-Year Budget
FY 2022-23
Proposed
Budget
FY 2023 Proposed
Budget vs. FY
2022 Mid-Year
Budget
FY 2023
Proposed
Budget vs. FY
2022 Mid-Year
Budget
8,210 10,000 1,790 21.8%
1,030 1,200 170 16.5%
9,241 11,200 1,959 21.2%
LAIF interest payment received in arrears - Estimated $11,200 FY 2023. 1,396 1,100 (296) -21.2%
2,602 2,000 (602) -23.1%
5,664 4,200 (1,464) -25.8%
0 0 0 NA
111,285 100,000 (11,285) -10.1%
120,000 129,185 9,185 7.7%
240,947 236,485 (4,462) -1.9%
Measure B - Pavement Management Program (Annual) - $80,685 TDA - Highway 9 Safety Improvement Gap Closure - $26,500 Page: 4 of 12 File: FY 2022-23 Proposed Budget (Final 06-21-2022).xlsx Page 70 of 193

THE CITY OF MONTE SERENO
FY 2022-23 Proposed Budget vs. FY 2021-22 Mid Year Budget . 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 OTHER REVENUE
Notes to Miscellaneous (01-292) $85,000
01-292 Housing Element - Leap Grant $65,000
01-292 Housing Element - Reap Grant $20,000
FY 2021-22
Mid-Year Budget
FY 2022-23
Proposed
Budget
FY 2023 Proposed
Budget vs. FY
2022 Mid-Year
Budget
FY 2023
Proposed
Budget vs. FY
2022 Mid-Year
Budget
169,853 170,000 147 0.1%
140 500 360 257.1%
9,368 7,200 (2,168) -23.1%
283,600 85,000 (198,600) -70.0%
0 0 0 NA
0 0 0 NA
23,656 18,000 (5,656) -23.9%
0 0 0 NA
0 0 0 NA
0 0 0 NA
486,616 280,700 (205,916) -42.3%
Page: 5 of 12 File: FY 2022-23 Proposed Budget (Final 06-21-2022).xlsx Page 71 of 193

THE CITY OF MONTE SERENO
FY 2022-23 Proposed Budget vs. FY 2021-22 Mid Year Budget

EXPENDITURES

PERSONNEL

LAW ENFORCEMENT

CONSTRUCTION

GENERAL GOVERNMENT

MAINTENANCE

ADMINISTRATION

CITY ATTORNEY

BUILDING MAINTENANCE

EQUIPMENT AND IMPROVEMENTS

BUILDING AND IMPROVEMENTS

CITY AUDIT

ENGINEERING

SPECIAL DISTRICTS

TOTAL EXPENDITURES

NET SURPLUS / (DEFICIT)
FY 2021-22
Mid-Year Budget
FY 2022-23
Proposed
Budget
FY 2023 Proposed
Budget vs. FY
2022 Mid-Year
Budget
FY 2023
Proposed
Budget vs. FY
2022 Mid-Year
Budget
1,241,924 1,506,832 264,908 21.3%
1,078,370 1,110,604 32,234 3.0%
351,020 1,000 (350,020) -99.7%
484,860 456,000 (28,860) -6.0%
2,723,207 975,000 (1,748,207) -64.2%
419,480 528,660 109,180 26.0%
195,613 249,550 53,937 27.6%
33,800 30,000 (3,800) -11.2%
100,142 89,600 (10,542) -10.5%
600,000 725,000 125,000 20.8%
46,527 54,600 8,073 17.4%
50,000 33,272 (16,728) -33.5%
1,470 2,980 1,510 102.7%
7,326,414 5,763,098 (1,563,316) -21.3%
(2,277,391) (560,813) 1,716,578 -75.4%
Page: 6 of 12 File: FY 2022-23 Proposed Budget (Final 06-21-2022).xlsx Page 72 of 193

THE CITY OF MONTE SERENO
FY 2022-23 Proposed Budget vs. FY 2021-22 Mid Year 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
01-523 GIS Mapping
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
Mid-Year Budget
FY 2022-23
Proposed
Budget
FY 2023 Proposed
Budget vs. FY
2022 Mid-Year
Budget
FY 2023
Proposed
Budget vs. FY
2022 Mid-Year
Budget
2,590 2,000 (590) -22.8%
0 3,000 3,000 NA
4,400 15,000 10,600 240.9%
2,272 2,000 (272) -12.0%
0 15,000 15,000 NA
3,775 3,000 (775) -20.5%
8,114 12,000 3,886 47.9%
15,000 15,000 NA
11,460 6,300 (5,160) -45.0%
0 0 0 NA
0 0 0 NA
244,532 215,000 (29,532) -12.1%
86,391 89,000 2,609 3.0%
52,473 0 (52,473) -100.0%
25,000 20,000 (5,000) -20.0%
0 12,500 12,500 NA
0 0 0 NA
10,703 10,000 (703) -6.6%
0 0 0 NA
150 200 50 33.3%
0 0 0 NA
33,000 36,000 3,000 9.1%
484,860 456,000 (28,860) -6.0%
Page: 7 of 12 File: FY 2022-23 Proposed Budget (Final 06-21-2022).xlsx Page 73 of 193

THE CITY OF MONTE SERENO
FY 2022-23 Proposed Budget vs. FY 2021-22 Mid Year Budget

TOTAL PERSONNEL

TOTAL ADMINISTRATION
FY 2021-22
Mid-Year Budget
FY 2022-23
Proposed
Budget
FY 2023 Proposed
Budget vs. FY
2022 Mid-Year
Budget
FY 2023
Proposed
Budget vs. FY
2022 Mid-Year
Budget
921,024 1,091,235 170,212 18.5%
0 0 0 NA
0 0 0 NA
80,433 95,593 15,160 18.8%
23,974 24,824 850 3.5%
92,218 135,177 42,959 46.6%
7,614 7,260 (354) -4.6%
5,150 8,400 3,250 63.1%
53,173 68,877 15,705 29.5%
13,608 16,143 2,535 18.6%
336 336 0 0.0%
24,756 38,586 13,830 55.9%
19,638 20,400 762 3.9%
1,241,924 1,506,832 264,908 21.3%
8,178 8,800 622 7.6%
18,222 14,580 (3,642) -20.0%
1,999 1,500 (499) -24.9%
33,910 40,760 6,850 20.2%
183 250 67 36.4%
30,760 24,300 (6,460) -21.0%
4,779 7,100 2,321 48.6%
12,951 19,700 6,749 52.1%
21,851 22,470 619 2.8%
0 0 0 NA
278,395 361,000 82,605 29.7%
8,253 18,700 10,448 126.6%
0 0 0 NA
0 7,000 7,000 NA
0 2,500 2,500 NA
419,480 528,660 109,180 26.0%
Page: 8 of 12 File: FY 2022-23 Proposed Budget (Final 06-21-2022).xlsx Page 74 of 193

THE CITY OF MONTE SERENO
FY 2022-23 Proposed Budget vs. FY 2021-22 Mid Year Budget

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

TOTAL EQUIPMENT / IMPROVEMENTS

BUILDING/IMPROVEMENTS
01-814 Building Acquisition
01-815 Building Improvements

TOTAL BUILDING / 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
FY 2021-22
Mid-Year Budget
FY 2022-23
Proposed
Budget
FY 2023 Proposed
Budget vs. FY
2022 Mid-Year
Budget
FY 2023
Proposed
Budget vs. FY
2022 Mid-Year
Budget
15,000 15,000 0 0.0%
0 0 0 NA
85,142 74,600 (10,542) -12.4%
100,142 89,600 (10,542) -10.5%
NA
600,000 725,000 20.8%
600,000 725,000 0 20.8%
967,085 1,010,604 43,519 4.5%
0 0 0 NA
111,285 100,000 (11,285) -10.1%
1,078,370 1,110,604 32,234 3.0%
33,800 30,000 (3,800) -11.2%
0 0 0 NA
33,800 30,000 (3,800) -11.2%
Page: 9 of 12 File: FY 2022-23 Proposed Budget (Final 06-21-2022).xlsx Page 75 of 193

THE CITY OF MONTE SERENO
FY 2022-23 Proposed Budget vs. FY 2021-22 Mid Year Budget

TOTAL MAINTENANCE

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
Mid-Year Budget
FY 2022-23
Proposed
Budget
FY 2023 Proposed
Budget vs. FY
2022 Mid-Year
Budget
FY 2023
Proposed
Budget vs. FY
2022 Mid-Year
Budget
11,605 310,000 298,395 2571.3%
0 0 0 NA
0 0 0 NA
2,685,000 627,000 (2,058,000) -76.6%
10,000 12,000 2,000 20.0%
4,200 3,000 (1,200) -28.6%
1,833 11,000 9,167 500.2%
10,570 12,000 1,430 13.5%
2,723,207 975,000 (1,748,207) -64.2%
0 0 0 NA
0 0 0 NA
0 0 0 NA
345,614 0 (345,614) -100.0%
0 0 0 NA
5,406 1,000 (4,406) -81.5%
351,020 1,000 (350,020) -99.7%
0 0 0 NA
18,000 0 (18,000) -100.0%
32,000 33,272 1,272 4.0%
50,000 33,272 (16,728) -33.5%
1,082 2,040 958 88.6%
389 940 551 141.8%
1,470 2,980 1,510 102.7%
Page: 10 of 12 File: FY 2022-23 Proposed Budget (Final 06-21-2022).xlsx Page 76 of 193

THE CITY OF MONTE SERENO
FY 2022-23 Proposed Budget vs. FY 2021-22 Mid Year 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
Mid-Year Budget
FY 2022-23
Proposed
Budget
FY 2023 Proposed
Budget vs. FY
2022 Mid-Year
Budget
FY 2023
Proposed
Budget vs. FY
2022 Mid-Year
Budget
111,200 84,550 (26,650) -24.0%
84,413 165,000 80,587 95.5%
0 0 0 NA
0 0 0 NA
195,613 249,550 53,937 27.6%
39,500 45,300 5,800 14.7%
2,576 3,000 424 16.5%
4,452 6,300 1,848 41.5%
46,527 54,600 8,073 17.4%
7,326,414 5,763,098 (1,688,316) -21.3%
(2,277,391) (560,813) 1,716,578 -75.4%
Page: 11 of 12 File: FY 2022-23 Proposed Budget (Final 06-21-2022).xlsx Page 77 of 193

THE CITY OF MONTE SERENO
FY 2022-23 Proposed Budget vs. FY 2021-22 Mid Year 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

TOTAL GENERAL FUND RESERVE

TOTAL ALL FUNDS
FY 2021-22
Mid-Year Budget
FY 2022-23
Proposed
Budget
FY 2023 Proposed
Budget vs. FY
2022 Mid-Year
Budget
FY 2023
Proposed
Budget vs. FY
2022 Mid-Year
Budget
59,883 59,883 0 0.0%
(172,412) 551,246 723,658 -419.7%
111,516 (810,088) (921,604) -826.4%
234 (509,581) (509,815) -217869.7%
210,638 388,838 178,200 84.6%
497,149 468,877 (28,272) -5.7%
73 73 0 0.0%
3,444 1,404 (2,040) -59.2%
39 (901) (940) -2410.3%
650,681 89,868 (560,813) -86.2%
710,564 149,751 (560,813) -78.9%
643,972 643,972 0 0.0%
3,500,000 3,500,000 0 0.0%
500,000 500,000 0 0.0%
200,000 200,000 0 0.0%
0 0 0 NA
4,843,972 4,843,972 0 0.0%
0 0 0 NA
130,755 130,755 0 0.0%
21,000 21,000 0 0.0%
27,043 27,043 0 0.0%
6,751 6,751 0 0.0%
185,549 185,549 0 0.0%
0 NA
5,029,521 5,029,521 0 0.0%
0 NA
5,740,085 5,179,272 (560,813) -9.8%
Page: 12 of 12 File: FY 2022-23 Proposed Budget (Final 06-21-2022).xlsx Page 78 of 193 1 | P a g e
Significant Revenue and Expenditures Narrative – Proposed FY 2022-23 Budget vs. FY 2021-22 Mid-Year Budget Proposed FY 2022-23 Budget
Significant Changes Proposed FY 2022-23 Budget
versus FY 2021-22 Mid-Year Budget
 Revenues $5.2 Million, +$0.2M or +3.0% higher vs. FY 2021-22 Mid-Year Budget - Property Tax $2.3 Million, +$37k or 1.6% higher versus FY 2021-22 Mid-Year Budget: FY 2023 Property taxes higher by $50k offset by lower Police Special Tax Assessment by $23k.

- Licenses and Permits $0.9 Million, $63 higher versus FY 2021-22 Mid-Year Budget: Licenses and Permit activities continue to be robust this year, FY 2023 Budget reflects continued momentum. - Franchise Fees $310k, Flat versus FY 2021-22 Mid-Year Budget: FY 2023 Budget includes Franchise Fees from PG&E $55k, San Jose Water $38k, West Valley Collection $166k and Comcast $50k. - Intergovernmental $236k, Flat versus of FY 2021-22 Mid-Year Budget: Relatively flat to FY 2022 Mid-Year Budget. Revenue from Intergovernmental include Measure B-Pavement Management Program $81k, TDA Highway 9 Safety Improvement Gap Closure $27k, COPS ELEAS Pass-thru Grant $100k and VRF $22k. - Other Revenues $281k, Lower by $206k versus FY 2021-22 Mid-Year Budget: FY 2023 includes Road Impact Fees $170k, Housing Element Leap Grants- $65k and Grant REAP Grant $20k and Road Impact Fees $18k. - Gas Tax $191k, Higher by $37k versus FY 2021-22 Mid-Year Budget: FY 2023 includes Gas Tax $109k and SB1 RMRA Funds $82k.
- Real Property Tax $145k, Lower by $135k versus FY 2021-22 Mid-Year Budget: FY 2023 includes lower estimate of Real Property Transfer tax lower by $24k and SB-2 Grant ended in FY 2021-22 lower by $120k. - Sales and Use Tax $12k, lower by $4k versus FY 2021-22 Mid-Year Budget: FY 2023 lower due to potential recession.
- Federal Relief Funds and Other $772k, higher by $362k versus FY 2021-22 Mid-Year Budget: FY 2023 includes – Silicon Valley Clean Energy $18k, Proposition 68 Per Capita Program $180.1k, Coronavirus State and Local Fiscal Recovery Fund $409.5k and Unidentified potential funding sources from Energy, Parks or Rescue Funding $164k.

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2 | P a g e
Significant Revenue and Expenditures Narrative – Proposed FY 2022-23 Budget vs. FY 2021-22 Mid-Year Budget Proposed FY 2022-23 Budget
Significant Changes Proposed FY 2022-23 Budget
versus FY 2021-22 Mid-Year Budget
 Expenditures $5.6 Million, $1.7 Million lower FY 2021-22 Mid-Year Budget - Personnel $1.5 Million, $264k higher versus FY 2021-22 Mid-Year Budget: Salaries and benefits includes a 2% increase per MOU plus a new combined Building Inspector and Code Enforcement staff position +$168k. - Law Enforcement $1.1 Million, $32k higher versus FY 2021-22 Mid-Year Budget: Police services increased by +2.5% or +24k offset by lower COPS Grant Funds pass-thru funds to $100k or lower by -$11k. - Construction $1k, $350k lower versus FY 2021-22 Mid-Year Budget: Completed a Winchester Boulevard Class IV Protected Bike Lane Project (CIP-2022-F) $345k in FY 2022. No construction projects planned in FY 2023 but left $1k for small contingency projects.
- General Government $456k, $29k lower versus FY 2021-22 Mid-Year Budget: Converted Code Enforcement CSG Consultant to Staff employee (lower $52k) offset by GIS Mapping Consultant (higher $15k). Major expenses for Professional Services $215k (01-535) include Dicar Networks for IT Consulting $16k, EMC Planning Group for Housing Element Project $118k and M-Group for Objective Standard Design project. Liability Insurance $89k, Donations to Community based Organizations $20k, Elections $15k, Community Interface events $15k, Emergency Services CERT $12.5k, and Animal Control services $36k. - Maintenance $975k, $1.8 Million lower versus FY 2021-22 Mid-Year Budget: FY 2023 includes Pavement Management Program ($310k), Neighborhood Improvement Daves CIP-2022-C ($27k) and Highway 9 Safety Improvement Gap Closure CIP-2022-E ($600k).
- Administration $529k, $109k higher versus FY 2021-22 Mid-Year Budget: Converted Building Inspector CSG Consultant to Staff employee (lower $56k) offset by development and maintenance of ePermit modules for Planning & Engineering departments (higher $50k). Professional Services $361k includes Alana Consulting for Plan Checks $310k and ePermit Consultant for $50k. Office equipment and rental $41k includes BMI Imaging for permit documents $35k, and office copier $6k. Communications $24k including Civic Plus $18k for website hosting and Office Phone Services $5k. Copying and printing services $7k, Meetings and Travel $20k including auto allowances for City Manager $4.8k and City Engineer $4.8k, fees for conferences and workshops $11k.

Renew membership dues $22k including Cities Assn of Santa Clara County $6.5k, and various other for City Manager, City Engineer, City Clerk and City Planner. Training and Development for Staff $18.7k. - City Attorney $250k, $54k higher versus FY 2021-22 Mid-Year Budget: City Attorney retainer increased by

2.5% to $85k plus ongoing cases $165k for Shekar, Padgett, and Greenwood Lane and new litigation cases.

Provisions to settle outstanding case $50k
- Building Maintenance $30k, $4k lower versus FY 2021-22 Mid-Year Budget: Grounds and Landscape maintenance $10k, Janitorial Services and supplies $5k and contingency for unexpected repairs $15k.

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3 | P a g e
Significant Revenue and Expenditures Narrative – Proposed FY 2022-23 Budget vs. FY 2021-22 Mid-Year Budget Expenditures Continued
- Equipment / Improvements $90k, $11k lower versus FY 2021-22 Mid-Year Budget: Lower computer purchases for City Hall. ClearGov license for Budget Book and portal $10k, Various software license renewals $29k, Liberty Pluggins $5k, Hardware purchases $8k, iCompass for posting Council meeting materials $11k, SeeClick Fix license $10.5k, and Blue Software for Engineering, Building and Planning $3k. Contingency for equipment needed for the office $15k.
- Building / Improvements $725k, $125k higher versus FY 2021-22 Mid-Year Budget: Includes Annex Building Project ($600k) and City Hall Parking Log GSI Retrofit new Project ($125k) - City Audit $55k, $8k higher versus FY 2021-22 Mid-Year Budget: FY 2023 includes Actuarial Consultant $10k, Annual Audit $30k, SCO Report prep $2k, Gas Tax Audit $3k and Annual Street Report to State Controllers office $3k and ADP payroll and HR compliance services $6k. - Engineering $33k, $17k lower versus FY 2021-22 Mid-Year Budget: FY 2023 includes lower WV Clean Water Administration assessment fee to $33k

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4 | P a g e
Significant Revenue and Expenditures Narrative – Proposed FY 2022-23 Budget vs. FY 2021-22 Mid-Year Budget Proposed FY 2022-23 Budget
- Significant Changes Proposed FY 2022-23 Budget
- versus FY 2021-22 Mid-Year Budget
 June 30, 2023 Ending Fund Balances $5.2 Million, $0.7 Million lower vs.

FY 2021-22 Mid-Year Budget
$5,740k Beginning Fund Balance – March 31, 2022
Surplus / (Deficit) from Operations
$96k Operating Budget – General Fund
($38k) Pavement Management Program (Annual)
($33k) Housing Element Project
($50k) Planning & Engineering ePermit Tracking System
($384k) Annex Building Project
($27k) Neighborhood Improvement Project – Daves
Neighborhood
$0 Highway 9 Safety Improvements Gap Closure
(125k) City Hall Parking Lot GSI Retrofit
($561k) Net Deduction from Fund Balances
$5,179k Ending Fund Balance – June 30, 2023

Page 82 of 193 ends

THE CITY OF MONTE SERENO
FY 2022-23 Proposed Budget vs. FY 2021-22 Mid Year Budget

REVENUES

PROPERTY TAX

LICENSE & PERMITS

FRANCHISE TAX

INTERGOVERNMENTAL

OTHER REVENUE

GAS TAX

INTEREST

REAL PROPERTY TAX

SALES TAX
FEDERAL RELIEF FUNDS and OTHER
FINES

TOTAL REVENUE

TOTAL EXPENDITURES

NET SURPLUS / (DEFICIT)
FY 2021-22
Mid-Year Budget
FY 2022-23
Proposed
Budget
General Fund
Pavement
Management
Program (Annual)
Housing Element
Project

CARRYOVER
Planning &
Engineering
ePermit Tracking
System (New)
Annex Building

CARRYOVER
Neighborhood
Improvement
Project - Daves
Neighborhood

CARRYOVER
Highway 9 Safety
Improvements
Gap Closure

CARRYOVER
City Hall Parking
Lot GSI Retrofit
NEW
Total General and
Capital
Improvement
Projects
PMP Annual GEN-2022-B GEN-2023-D CIP-2022-B CIP-2022-C CIP-2022-E CIP-2023-G 2,289,341 2,326,700 2,326,700 0 0 0 0 0 0 0 0
850,859 914,100 914,100 0 0 0 0 0 0 0 0
310,567 310,000 310,000 0 0 0 0 0 0 0 0
240,947 236,485 129,300 80,685 0 0 0 0 26,500 0 107,185 486,616 280,700 177,700 0 85,000 0 18,000 0 0 0 103,000 153,505 191,000 0 191,000 0 0 0 0 0 0 191,000
9,241 11,200 11,200 0 0 0 0 0 0 0 0
279,647 145,000 145,000 0 0 0 0 0 0 0 0
15,740 12,000 12,000 0 0 0 0 0 0 0 0
409,905 772,100 0 0 0 0 198,600 0 573,500 0 772,100
2,655 3,000 3,000 0 0 0 0 0 0 0 0
5,049,023 5,202,285 4,029,000 271,685 85,000 0 216,600 0 600,000 0 1,173,285 7,326,414 5,763,098 3,933,098 310,000 118,000 50,000 600,000 27,000 600,000 125,000 1,830,000 (2,277,391) (560,813) 95,902 (38,315) (33,000) (50,000) (383,400) (27,000) 0 (125,000) (656,715) Page: 1 of 1 File: FY 2022-23 Proposed Budget (Final 06-21-2022).xlsx

Page 83 of 193 ends

Project Funding Sources
FY 2022-23 Proposed Budget
Project Funding/Revenue Source Amount
Final
Proposed
Allocation
Secured / Status
Measure B Pavement
Management Program Annual
(05-323)
Yes, high confidence 80,685
Gas Tax (12-328) 109,000 Yes, high confidence
SB-1 Gas Tax (12-333) 82,000 Yes, high confidence
General Fund (01-015) 38,315 38,315
Balanced charged against General
Fund $38k
Total 310,000 310,000
Housing Element - Leap Grant
(01-292) Grant Awarded 65,000
Housing Element - Reap Grant
(01-292) Grant Awarded 20,000
General Fund (01-015) 33,000 33,000
Balanced charged against General
Fund $33k
Total 118,000 118,000
General Fund (01-015) 50,000 50,000
Balanced charged against General
Fund $50k
Total 50,000 50,000
271,685
85,000
Pavement Management
Program (Annual)
Housing Element Project
Planning & Engineering
ePermit Tracking System

Page 1 of 3 ends

Page 84 of 193 ends

Project Funding Sources
FY 2022-23 Proposed Budget
Project Funding/Revenue Source Amount
Final
Proposed
Allocation
Secured / Status
Road Impact Fee (01-246) 18,000 Yes, Secured
Silicon Valley Clean Energy (01-
298) 18,475 Yes, Secured if used for solar panel/battery Propostion 68 Per Capita
Program (01-298) 180,125 Yes, Secured if expended by December 31, 2023 General Fund (01-015) 383,400 383,400 Balanced charged against General Fund $383k
Total 600,000 600,000
General Fund (01-015) 27,000 27,000
Balanced charged against General
Fund $27k
Total 27,000 27,000
Neighborhood
Improvement Project -
Daves Neighborhood
Annex
Building/Community
Center
216,600

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Page 85 of 193 ends

Project Funding Sources
FY 2022-23 Proposed Budget
Project Funding/Revenue Source Amount
Final
Proposed
Allocation
Secured / Status
Transportation Development
Act (TDA) Highway 9 Safety
Improvement Gap Closure (05-
323)
26,500
Yes, secured and guaranteed as
long as they're expended by fiscal
year 23-24
Federal Relief Funds and Other
(01-298) 409,500
Yes, Secured allocate balance of
Coronavirus State and Local Fiscal
Recovery Funds $410k.

Federal Relief Funds and Other
(01-298) 164,000 Unidentified Energy, Parks, or Rescue Funding.

Total 600,000 600,000
General Fund (01-015) 125,000 125,000 Balanced charged against General Fund $125k
Total 125,000 125,000
Identfied and Secured 1,009,285 Secured or Identified Funding Sources
Pending Funding Sources 164,000 Pending Funding Sources / Not commited or awarded
General Fund (01-015) 656,715 656,715 Balance charged against General Fund
Total Grant Funding 1,830,000 1,830,000
600,000
1,173,285
ALL Projects
Highway 9 Walkway
City Hall Parking Lot GSI
Retrofit

Page 3 of 3 ends

Page 86 of 193 ends

City of Monte Sereno
Proposed Fiscal Year 2022-23 Budget
Proposed Version
Last updated 06/18/22
City of Monte Sereno | Budget Book 2023 Page 87 of 193 Page 1

TABLE OF CONTENTS
Introduction 3
Transmittal Letter 4
Organization Chart 6
City Councilmembers 7
Monte Sereno at a Glance 12
History of City 13
Demographics 15
What is a Budget? 19
Basis of Budgeting 20
Fund Structure 21
Financial Policies 22
Budget Process 28
Budget Acknowledgments 29
Los Gatos Monte Sereno Police Department 29
Budget Overview 29
Priorities & Issues 30
Executive Overview 30
Strategic Plan 30
Short-term Factors 33
Fund Summary By Category 33
Fund Summaries 37
All Fund Accounts 38
Reserve Policy for the General Fund 45
Special Districts 46
Departments 46
Public Safety 47
Capital Improvement Projects 48
General and Capital Improvement Summary 49
General Projects 52
Permit Billing System 53
Capital Improvement Projects 53
Emergency Backup Generator 57
City Hall Parking Lot 57
City Hall and Annex Building ADA Project 57
Pavement Management Program 57
Winchester Boulevard Design 57
Capital Improvement Projects - Five Year Plan 57
Supplemental Information 61
Acknowledgements 62
Adopted FY 2021-22 Budget - Revenue Summary & Details 66 Adopted FY 2021-22 Budget - Expenditure Summary & Details 66 Proposed FY 2021-22 Budget - Fund Balances 66
Los Gatos Monte Sereno Police Department Memo 66
City of Monte Sereno | Budget Book 2023 Page 88 of 193 Page 2

INTRODUCTION
City of Monte Sereno | Budget Book 2023 Page 89 of 193 Page 3 Transmittal Letter
Steven Leonardis, City Manager
June 21, 2022
Dear, Honorable Mayor, City Council Members, and Residents of Monte Sereno, I am pleased to present to you the Monte Sereno FY 2022-2023 Budget.

In FY 2021-2022, the City of Monte Sereno received increased revenues from continued robust planning and building activities, which exceeded estimates by $0.2 million vs. the Adopted FY 2022 Budget. These revenues were largely driven by low interest rates and a strong local economy which in turn continues to fuel Santa Clara County’s real estate and development activities.

In addition, property tax revenue increased to yet another all-time high increasing 5.63%. This number represents one of the highest increases in all of Santa Clara County in the 2021—2022 tax calendar year.

Also, in FY 2021-2022, The City Council of Monte Sereno received detailed reports on Other Post-Employment Benefits (OPEB) and CalPERS Miscellaneous Pension Plan expenses. The City Council developed policy language to address these liabilities consistently on an annual basis which helped Monte Sereno realize significant savings in FY 2021-2022.

Monte Sereno received 819K from the Federal Government for American Rescue Plan monies. Monte Sereno utilized these funds to backfill a large drainage/sewer improvement project located on Zena, Natalye, and La Rinconada Avenues. Completed under budget, the City of Monte Sereno realized savings of approximately 50K on the project by bidding the project in two pieces instead of one piece.

Monte Sereno through its Better Streets Commission and Pavement Management Program (PMP) achieved 72% on it’s audited Pavement Condition Index (PCI). This figure represents a PCI on the highest end of the spectrum in all of Santa Clara County.

In 2020, Monte Sereno staff created and implemented a Community Based Grants (CBO) evaluation and acceptance policy and an online application process. An annual limit of $20K was established for Council to award to CBO organizations with a nexus to the Monte Sereno Community. Monte Sereno awarded 20K in CBO grants for FY 2022- 2023. Monte Sereno continues to value it’s investment with partners such as KCAT, West Valley Community Services, Los Gatos Music and Arts, and Art Docents. These organizations return great value to the City of Monte Sereno and the surrounding community.

In FY 2021-2022 significant savings have been realized in operations. Staff continues efforts to reduce operating expenses, create efficiencies, and provide better services for residents. Recommended investments in facilities, infrastructure, software, and office equipment are included in the FY 2022-2023 Budget.

Monte Sereno was awarded an SB2 Grant of $160K in FY 2019-2020. The SB2 Grant was awarded to help Monte Sereno facilitate housing in the City of Monte Sereno.

Monte Sereno staff and City Council members have been diligently working with consultants and the community to develop a housing element due by December 31 , 2022. Monte Sereno City Council recognizes and values the importance of the 2023 Housing Element Document and has supported staff and the community both fiscally and with policymaking to assure a successful process.

Monte Sereno has requested grant funding for FY 2022-2023 from the State of California for $550K for pedestrian and bicycle improvements on Highway 9 (Saratoga-Los Gatos Road) also know is the “sidewalk gap project.” In March of 2020, Council voted to fund a design of the Highway 9 safety improvements utilizing funds left over from st
City of Monte Sereno | Budget Book 2023 Page 90 of 193 Page 4 Better Streets projects the previous fiscal year. This is the third year in a row Monte Sereno has requested funds for this project from either the state or federal government. Monte Sereno is presently waiting for Caltrans to approve the design submitted by the City of Monte Sereno in 2021.

On March 22nd of 2022, The City Council of Monte Sereno re-adopted five goals derived from the General Plan to develop a work plan for FY 2022-2023. These five goals are Quality Public Service, Community Character, Enhanced Mobility, Community Safety and Environmental Sustainability.

In this budget document, a comprehensive list of the annual goals and work items are provided. Council has earmarked funding for work items included in the Capital Improvement Project (CIP), software, environmental sustainability, and pension liabilities.

Major notable expense items in FY 2022-2023 are the Los Gatos Monte Sereno Police Department (LGMSPD) service costs increasing by 2%. Monte Sereno employee salaries and benefits are projected to be $0.2 million higher versus the adopted FY 2021-2022 Budget. These budget line items represent 67%of operating expenses.

In addition, the Monte Sereno Community Room remains a line item on the capital improvement budget. Monte Sereno City Council first allocated funds to this project in FY 2020-2021 of 600K. This sum remains a line item on the CIP budget as a carry-over from the previous adopted figure. In addition, there are two grants which continue to be carried over from 2020 which can be used if the project moves forward in FY 2022-2023. The Prop 68 and Silicon Valley Clean Energy (SVCE) grants total 178K.

For FY 2022-2023, property tax revenues are projected to remain stable after several years of increases. Franchise fees are tracking even with FY 2021-2022. Permit and licensing revenues are projected to trend slightly lower in FY 2022-2023, due to increasing interest rates and continued inflationary pressures.

Monte Sereno as part of the Joint Powers Authority (JPA) for West Valley Collection and Recycling (WVCR), will be reviewing its contract in 2023. There may be potential for increased revenues to Monte Sereno through the contract negotiation process.

Monte Sereno does not rely on revenue sources other public agencies rely upon like sales taxes and transient occupancy taxes (TOT’s) which are impacted by the economic cycles. Monte Sereno continues to receive most of its revenue through residential property taxes and building and planning activities.

Monte Sereno has strong reserves and stable recurring expenses. However, economic uncertainty persists with the prospect of continued rising inflation and potential for an economic recession in 2023. Monte Sereno must continue to follow financial policies it adopted in 2020 to provide continued fiscal stability.

In conclusion, I am pleased to present this budget to the City Council of Monte Sereno for consideration and action.

I believe this budget will allow the City Council of Monte Sereno to execute its work plan for FY 2022-2023 and greatly benefit the City of Monte Sereno residents by providing quality services and maintaining Monte Sereno’s fiscal position in FY 2022-2023 and beyond.

Respectfully submitted,
Steven Leonardis
City Manager
City of Monte Sereno | Budget Book 2023 Page 91 of 193 Page 5 City of Monte Sereno Organization Chart
The City of Monte Sereno, like most cities in the State of California, operates under a "Council Manager" form of government. The residents of Monte Sereno are tasked with choosing City Councilmembers (https://city-montesereno-ca-budget-book.cleargov.com/budget-fy-2020_21-copy/2021/introduction/organization-chart) of Monte Sereno at election time. Councilmembers act as a "board of directors." Not unlike a corporation, the residents are "shareholders" or stakeholders of their "corporation" or community. The City Council of Monte Sereno selects a City Manager who acts as "CEO" or chairperson of the board. The City Manager, under direction of the City Council, admininsters day-to-day operations of the City of Monte Sereno.

City of Monte Sereno | Budget Book 2023 Page 92 of 193 Page 6 Javed Ellahie, Mayor
Javed Ellahie has had the privilege and pleasure to live in Monte Sereno since 1987 with his wife Naveeda and has
raised four children in this town. Monte Sereno – with its streets and homes laced with majestic redwood and
pine trees, and deer roaming through it - offers a great environment to raise a healthy family.

This is Javed’s first time on the Monte Sereno City
Council. He previously served on the West ValleyMission Community College Board. He has also served on the Board of Trustees and on the Executive Board of
the Santa Clara County Bar Association.

Javed enjoys participating in marathons (as a walker)
with Team in Training that raises funds for the
Lymphoma and Leukemia Foundation (Go Team) and
has participated in the Turkey Trot, the Great Race and other local marathons.

Javed received his B.S.E.E. from California State
University - Fresno; his J.D. from Santa Clara University Law School and his L.L.M. (Tax) from Golden Gate
University. He worked as an electronic engineer for
Fairchild and National Semiconductors and as a
consultant for Rockwell International. He started his law practice in Santa Clara County in 1977. He was
appointed as a Bankruptcy Dispute Resolution Advocate
by the United States Bankruptcy Judges and serves as an arbitrator and mediator to resolve disputes. He is
admitted to practice before the U.S. Supreme Court.

Monte Sereno has been well served by the City Councils
that have gone before. It is among one of the only cities that has fully funded its pension liability and whose
councilpersons serve in the spirit of volunteerism and
strive to do what is best for its residents.

This City is inhabited by outstanding and experienced
individuals, who are actively involved with City matters.

In the November 2018 mid-terms, 81% of the registered
voters turned out to vote, putting Monte Sereno near
the top of the voter turnout in the Bay Area. Every
resident of this city, regardless of class, language,
national origin, immigration status, or voter
registration status, is a valuable member of our
community, has invaluable insights to offer this City
Council and is encouraged to share the same with the
City Council.

I thank you for your support and look forward to your
inspiration and guidance. Our combined efforts will
ensure that Monte Sereno continues to be the best city
in the Bay Area.

City of Monte Sereno | Budget Book 2023 Page 93 of 193 Page 7 Monte Sereno City Councilmembers
The citizens of Monte Sereno elect five councilmembers at large. Elections are held in even calendar years corresponding with State of California and United States Presidential elections. Councilmembers serve four year terms. The Mayor and Mayor Pro-Tempore serve at the pleasure of a majority of their respective council, and are chosen in December each year.

Bryan Mekechuk, Mayor Pro-Tempore
Bryan Mekechuk became a U.S. citizen in 2019, after
immigrating to California from Toronto, Canada in 1995.

Bryan and his wife, Jo-Anne Sinclair, moved to Monte
Sereno in 1997, where their son, Nik, was born (1999)
and their daughter, Kate, was born (2003).

Bryan was awarded a Bachelor of Commerce in Business
Administration from the University of Alberta (1983),
became a CPA/Chartered Accountant (1985) and earned
an MBA from the University of Western Ontario (1991).

Bryan worked for Ernst & Young Canada from 1983
through 1995, when he joined EY’s management
consulting practice in San Jose. Subsequently, he worked for several start-ups and boutique management
consulting firms in the Silicon Valley. Over his career, Bryan’s clients included Acer America, American Airlines, American Express, Apollo Group, Applied Materials, Bank of America, British Telecom, CSX Conrail, Electronic Arts, First Traders, Hewlett-Packard, LAM Research, MasseyFerguson, Nova Scotia Power, Silicon Graphics and Sun Microsystems; client engagements took him to Australia, Bermuda, Brazil, Costa Rica, Germany, India, Italy,
Mexico, the Netherlands, and the U.K.

His wife Jo-Anne is the Chief Legal Officer with an artificial intelligence start-up focused on improving customer
service; Nik graduated from Santa Clara University and
will be joining PwC’s San Jose office in September 2021; and Kate is a senior at Presentation High School and will be at Barnard College at Columbia University in
September 2021. Both Nik and Kate served on Monte
Sereno’s Youth Commission.

Prior to being elected to City Council, Bryan served on Silicon Valley Clean Energy’s Customer Program Advisory Group and on Monte Sereno’s Site & Architectural
Commission.

Currently, Bryan is the Chair of the Audit Committee and Vice Chair of the Finance and Administration Committee
for Silicon Valley Clean Energy. He is Vice Chair of both West Valley Clean Water Authority and West Valley Solid Waste Management Authority.

Bryan’s interests include family, environmental
sustainability, architecture, local history, mountain
biking, and wine. He looks forward to meeting and
City of Monte Sereno | Budget Book 2023 Page 94 of 193 Page 8 hearing from Monte Sereno residents on a phone/Zoom
call, over a coffee, or on a mountain bike ride.

Rowena Turner, Councilmember
Rowena Turner immigrated from the Philippines in the
70s. She has lived in Monte Sereno since 1986. She holds a BA Degree in Mathematics from San Francisco State
University. She received her Master’s Degree in
Education and her California Teaching Credential from
San Jose State University. She worked for several Silicon Valley companies, including Intel Corporation, Sun
Microsystems, Tandem Computers and Hewlett-Packard,
managing corporate marketing and creating worldwide
certification programs. She left the computer industry
and taught high school Computer Science and Math at a
facility for incarcerated youth.

Rowena is married; she and her husband have one son,
who is an Engineering Director for a start-up company in San Francisco.

Rowena is excited about making an impact on the City
Council. She strives to conduct business with
uncompromising integrity and professionalism. She
believes that it is absolutely crucial that the council listens and responds to its citizens and stakeholders.

Maintaining respect and trust is critical to providing a community that is safe and comfortable for the
residents of Monte Sereno.

Shawn Leuthold, Councilmember
Shawn Leuthold received his J.D. (cum laude) with a
certificate in High-Technology Law from Santa Clara
University in 1995. As a practicing business and family law attorney for over 20 years, he handles matters
ranging from business start-ups and complex litigation
to family law. He advises clients in both Mandarin
Chinese and English. Prior to attending law school, his background was in business administration, where he
worked for several years as a public relations and
marketing manager in the tech industry.

Shawn grew up in Colorado, Oregon, and California. He
met his wife of 30 years, Amy, while studying in Taiwan.

They have two grown daughters who attended Los Gatos
public schools.

Shawn and his family originally lived in the Cambrian
neighborhood of San Jose before moving to Seattle,
where he practiced law for several years. His family has lived in Monte Sereno since returning to the Bay Area in 2007.

In his free time, Shawn enjoys reading, woodworking,
classic cars and travelling.

As your representative, his priorities are:

City of Monte Sereno | Budget Book 2023 Page 95 of 193 Page 9 • Finding solutions to the state housing mandate and
keeping Monte Sereno in compliance with State law. His
specific ideas include forming a citizens’ commission to explore regional solutions and lobbying for change in
Sacramento.
• Continuing to improve transparency and
communications between the council, city staff and
community through the earlier publication of City
Council agendas.
• Organizing local events to increase emergency
preparedness and public safety.
• Overseeing the city budget process and avoiding
unnecessary litigation.

Shawn is excited to work with the council for positive
change. Please reach out with your concerns or ideas to improve our community and our local government.

Liz Lawler, Councilmember
Liz Lawler was born and raised in Los Angeles, the
youngest of four children. She attended Marlborough
School, and went on to graduate from UC Berkeley in
1987, with a B.A. in Political Science. While at Berkeley, she met her husband, Greg, and they married in 1988.

She then worked in advertising for several years before having children.

While raising her three children in Pacific Palisades, CA, Liz was very active in fundraising for Children’s Hospital Los Angeles, serving as President of her auxiliary group through the hospital. She was always very active in her children’s schools, and served as her youngest son’s den mother for his Cub Scout troop. During this time, she
also obtained her CA Real Estate license. In 2013, Liz and her family relocated to Monte Sereno for her husband’s
work, and soon became involved with the community,
serving on the newly formed Better Streets Commission.

Liz is an avid skier and outdoor enthusiast. She loves to run, hike, SUP and play tennis. She is honored to have
been elected to serve on the Monte Sereno City Council
and looks forward to working with her fellow council
members for the benefit of Monte Sereno and its
residents.

City of Monte Sereno | Budget Book 2023 Page 96 of 193 Page 10 Welcome to City Hall
Monte Sereno hosts city council meetings the first and third Tuesdays of each month except in the month of July. Monte Sereno City Council meetings begin at 7pm at Monte Sereno City Hall located at 18041 Saratoga-Los Gatos Road, Monte Sereno California, 95030. Monte Sereno City Council meetings are open to the public.

City of Monte Sereno | Budget Book 2023 Page 97 of 193 Page 11 Welcome to Monte Sereno
Incorporated May 14, 1957
Popluation 3,501
Elevation 502

1.6 square miles
1,291 parcels
City of Monte Sereno | Budget Book 2023 Page 98 of 193 Page 12 History & Governance of Monte Sereno
The geographical location known as the City of Monte Sereno was established in the early 1900’s as a rural agricultural community. Originally part of the El Rancho Rinconada de Los Gatos Mexican land grant, the area was dotted with ranch houses, orchards, dairies, and livestock. The slopes of the southern portion of El Sereno Mountain hosted summer homes, recreational properties, and a few large estates.

The beauty and tranquility of the area attracted artists and writers looking for a peaceful and inspirational place to pursue their craft. City of Monte Sereno points of interest are the home in which American author, John Steinbeck, wrote the “Grapes of Wrath” and “Of Mice and Men” and the original site of the Billy Jones Wildcat Railroad.

Unlike other cities in Santa Clara County, Monte Sereno did not form a historic shopping village. Consequently, no commercial district or business core were ever developed in the City of Monte Sereno.

Monte Sereno incorporated in 1957 under the leadership of retired United States Navy Admiral, Thomas B. Inglis Senior, in response to the ever-increasing pressure of annexation from neighboring jurisdictions. Residents ultimately decided incorporation, rather than annexation, was the best way to preserve their quality of life. Today, Monte Sereno exists as a peaceful residential community, approximately 1.6 square miles in size with a population of 3,501 residents.

Monte Sereno is a General Law City, comprised of a Council Manager form of government. Voters elect five councilmembers to serve four-year terms on city council. The City Council of Monte Sereno appoints a professional City Manager to serve as the Chief Administrative Officer. Under direction of city council, the City Manager is responsible for day-to-day operations of the city and administration of city services. The Monte Sereno City Council meets on the first and third Tuesday of each month at 7:00 pm in the Monte Sereno City Council Chambers located at 18041 Saratoga-Los Gatos Road, Monte Sereno, California.

Monte Sereno provides services to residents directly or by working with partner agencies. It is through these partnerships Monte Sereno can provide high quality services which are economically efficient.

City of Monte Sereno | Budget Book 2023 Page 99 of 193 Page 13 The City of Monte Sereno directly provides administrative services, building permits/inspections, planning/design review, engineering/public works, City Clerk/election services, and financial administration. Partnering agencies provide Monte Sereno residents services including collection and recycling, library, fire, police, sanitation, water, power, and animal control.

John Steinbeck
Did you know world renowned author and Nobel Prize
winner, John Steinbeck, once resided in Monte Sereno?
Carol and John Steinbeck purchased a 1.639-acre plot of land in what was then Los Gatos (now Monte Sereno) in
1936.

In the summer of 1936, Carol and John’s 1,452 square
foot home was built. A carved wooden plaque which
read “Arroyo del Ajo” or “Garlic Gulch” was placed at the entrance gate.

Steinbeck completed “Of Mice and Men” and all 464
pages of his Pulitzer Prize winning work titled “The
Grapes of Wrath” whilst residing in Monte Sereno.

Subsequently, “The Grapes of Wrath” became a feature
film in 1940. The film was directed by legendary
Hollywood director John Ford and the part of the book’s lead character, Tom Joad, was played by Henry Fonda.

Carol and John Steinbeck moved from Monte Sereno in
1938 as they began to lose their privacy due to John’s
success as a great American author. Subsequently, the
Steinbeck home was added to the National Register of
Historic Places in 1989.

City of Monte Sereno | Budget Book 2023 Page 100 of 193 Page 14 Population Overview

TOTAL POPULATION
3,511
.9%
vs. 2019

GROWTH RANK
131 out of 484
Municipalities in California

DAYTIME POPULATION
2,697
Daytime population represents the effect of persons coming into or leaving a community for work, entertainment, shopping, etc. during the typical workday. An increased daytime population puts greater demand on host community services which directly impacts operational costs. * Data Source: American Community Survey, 2010 Census, 2000 US Census and 1990 US Census

POPULATION BY AGE GROUP
Aging affects the needs and lifestyle choices of residents. Municipalities must adjust and plan services accordingly. * Data Source: American Community Survey, 2010 Census, 2000 US Census and 1990 US Census * Data Source: American Community Survey, 2010 Census, 2000 US Census and 1990 US Census 1990
1991
19921993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
20122013
2014
2015
2016
2017
2018
2019
2020
3200
3300
3400
3500
3600
3700
<5 5-9 10-14 15-19 20-24 25-34 35-44 45-54 55-59 60-64 65-74 75-84 >85 City of Monte Sereno | Budget Book 2023 Page 101 of 193 Page 15 Household Analysis

TOTAL HOUSEHOLDS
1,211
Municipalities must consider the dynamics of household types to plan for and provide services effectively. Household type also has a general correlation to income levels which affect the municipal tax base.
* Data Source: American Community Survey, 2010 Census, 2000 US Census and 1990 US Census Family Households
76%
Married Couples
.5%
Singles
-888,888,888.0000%
Senior Living Alone
6%
City of Monte Sereno | Budget Book 2023 Page 102 of 193 Page 16 Economic Analysis
Household income is a key data point in evaluating a community’s wealth and spending power. Pay levels and earnings typically vary by geographic regions and should be looked at in context of the overall cost of living.

HOUSEHOLD INCOME
Above $200,000
60%
Median Income
$250,001
Below $25,000
10%
* Data Source: American Community Survey, 2010 Census, 2000 US Census and 1990 US Census Over $200,000
$150,000 to $200,000
$125,000 to $150,000
$100,000 to $125,000
$50,000 to $75,000
$25,000 to $50,000
Below $25,000
City of Monte Sereno | Budget Book 2023 Page 103 of 193 Page 17 Housing Overview
2020 MEDIAN HOME VALUE
$2,000,001
* Data Source: 2020 US Census Bureau (http://www.census.gov/data/developers/datasets.html), American Community Survey. Home value data includes all types of owneroccupied housing.

HOME VALUE DISTRIBUTION
* Data Source: 2020 US Census Bureau (http://www.census.gov/data/developers/datasets.html), American Community Survey. Home value data includes all types of owneroccupied housing.

HOME OWNERS VS RENTERS
Monte Sereno
5%
Rent
95%
Own
State Avg.
%
Rent
%
Own
* Data Source: 2020 US Census Bureau
(http://www.census.gov/data/developers/data-sets.html), American Community Survey. Home value data includes all types of owner-occupied housing.
2009
2010
2011
20122013
2014
201520162017
2018
2019
2020
750k
1,000k
1,250k
1,500k
1,750k
2,000k
2,250k
> $1,000,000
$750,000 to $999,999
$500,000 to $749,999
$400,000 to $499,999
$300,000 to $399,999
$250,000 to $299,999
$200,000 to $249,999
$150,000 to $199,999
$100,000 to $149,999
$50,000 to $99,999
< $49,999
City of Monte Sereno | Budget Book 2023 Page 104 of 193 Page 18 What is a Budget?
Policy Document that:
> Serves as a Financial Plan and Guide
> Reflects City Council and Community Priorities and Goals > Establishes Funding Levels for City Services
City of Monte Sereno | Budget Book 2023 Page 105 of 193 Page 19 Budgetary Basis
This budget is prepared in accordance with Generally Accepted Accounting Principles. The budget for governmental funds has been prepared on a modified accrual basis. The modified accrual basis recognizes expenditures when the related fund liability is incurred. Revenues are recognized when they become both measurable and available. “Measurable” means the amount of the transaction can be determined and “available” means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period.

City of Monte Sereno | Budget Book 2023 Page 106 of 193 Page 20 Fund Structure
The accounts of the City of Monte Sereno are made up of funds that help organize and account for restricted resources. A fund is defined as a fiscal and accounting entity with a self-balancing set of accounts (comprised of assets, liabilities, fund equity, revenues, and expenditures), which are segregated for the purpose of carrying out specific activities or attaining certain objectives in accordance with regulatory requirements. The City of Monte Sereno has the following fund type categories:

Governmental Fund Types
The Governmental funds include the General, Special Revenue, and Capital Project Funds. Governmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. The General Fund is the City of Monte Sereno's primary operating fund. It accounts for all financial resources of the general government, except those accounted for in another fund.

Fiduciary Fund Types
The Fiduciary funds track assets held by the City of Monte Sereno in trust or as an agent for various assessment. These funds are used to account for assets held by the city in a trustee capacity or as an agent for individuals, private organizations, other governmental units, and/or other funds. The City of Monte Sereno maintains one such agency type fund: Performance Surety Agency Fund – Acts as a trustee for funds deposited by homeowners to assure any repairs and improvements needed to city streets as a result of construction.

Law Enforcement Special Revenue Fund Types
The Law Enforcement Special Revenue Fund accounts for all financial activity related to the City of Monte Sereno's Law Enforcement Services. The fund’s major source of revenue is a special assessment tax.

City of Monte Sereno | Budget Book 2023 Page 107 of 193 Page 21 Core Values of Financial Sustainability
The City Council of Monte Sereno adopted a comprehensive list of financial policies to guide current and future Monte Sereno policy makers to achieve fiscal stewardship.

Core Values of Financial Sustainability
Financial Stability—The City of Monte Sereno will create financial stability to provide the community with a consistent and adequate level of public service. The City of Monte Sereno will take a long-term approach to its finances by developing and maintaining long-term plans, carefully weighing the cost and benefits of opportunities and adhering to sound debt, reserve and investment policies.

Quality of Life and Local Economic Vitality—The City of Monte Sereno will provide effective and efficient services to ensure a safe and healthy atmosphere for its residents and visitors while preserving and enhancing its unique cultural and environmental attributes.

Accountability and Financial Planning—The City of Monte Sereno will institute financial planning which will ensure city services are provided at the best value, and that services are in alignment with the needs and wants of the community.

Environmental and Economic Sustainability — The City of Monte Sereno’s financial strategy will support continued investment in the renovation and maintenance of physical infrastructure/facilities and in policies and programs that support a clean and healthy natural environment.

Transparency and Engagement— The City of Monte Sereno will be accountable for producing value for the community by producing, planning, and reporting mechanisms which make it clear how the city plans to use resources to achieve community objectives. The City of Monte Sereno is committed to engaging the public as a partner in formulating plans and delivering services.

Website Presentation of Financial Documents — The City of Monte Sereno will use its website to present financial documents of the city and other financial documents which may be of interest to the public.

City of Monte Sereno | Budget Book 2023 Page 108 of 193 Page 22 City of Monte Sereno | Budget Book 2023 Page 109 of 193 Page 23 Financial Policies
I. BUDGETING PROCESS
The budget process begins each year in February with a Pre-Budget Policy meeting with the City Council goals, identifying upcoming issues that may affect the budget and a chance for the City Council to discuss policy issues that may impact budget preparation. Department Heads prepare estimates of revenues and departmental expenditures for submission to the Finance Director. The City Manager and Finance Director meet with each department to review the estimates and discuss requests. From these meetings, the preliminary budget is developed. The Capital Improvement Budget, which is part of the same document, follows the same process.

The City Manager is required to submit a preliminary budget to the City Council on or before May 15th of each year. One or two public workshops are held in May and June to review the budget and receive public input. One formal public hearing is held in June, prior to budget adoption. The City Council must adopt an annual budget, by resolution, on or before June 30 for the coming fiscal year (July 1 – June 30). If the budget is not adopted by that date, the current fiscal year budget, except for capital outlays, goes into effect until the budget is adopted.

A First Quarter and Mid-Year budget review will be conducted for the City Council to determine the status of projected revenues, expenditures, and other financial situations, along with consideration of needed budget amendments. A Third Quarter review will be included in the presentation of the upcoming fiscal year's proposed budget. An internal Fourth Quarter appropriation review is conducted, and budget amendments are presented to the City Council as needed.

II. BUDGETING POLICY
The City of Monte Sereno will adopt an annual budget for the fiscal year beginning July 1st no later than June 30th of the same calendar year.

The adopted budget will be balanced with current year operating expenditures fully funded by current year recurring revenues. In the event that a balanced budget is not adopted, a specific plan will be presented to the City Council for returning the budget to a balanced position.

Fund balance reserves for the General Fund will be used only for non-recurring expenditures such as capital projects, studies, etc. and not for on-going operations. If fund balance reserves are used for recurring (operational) expenditures, the City Council will be notified prior to adoption of the annual budget.

The budget may be amended during the year as necessary by resolution of the City Council.

The City Manager is authorized to implement programs as approved in the adopted budget.

III. CAPITAL IMPROVEMENT POLICY
The City of Monte Sereno will identify the estimated costs and potential funding sources for each capital project prior to its submittal to the City Council for approval.

Capital projects involve the purchase or construction of major capital assets such as land; equipment; infrastructure; building or permanent improvements including additions, replacements, and major alterations; having a long-life expectancy; and costing $5,000 or more.

Capital projects are funded by a variety of funding sources, which are often restricted for a specific purpose.

Prior to a capital project being included in the annual budget, a determination must be made that the project is an appropriate use of the funds and that there is enough funding available.

IV. REVENUE POLICY
The City of Monte Sereno shall use a conservative approach in projecting revenues.

Recurring expenditures will be funded by recurring revenue.

Recurring expenditure increases that exceed recurring revenue growth should not be approved. If recurring expenditure increases exceed recurring revenue growth, the City Council will be notified prior to adoption of the annual budget.

One-time revenues may be used for one-time expenditures or enhancement of reserves.

Any new or expanded programs should be required to identify new funding sources and/or offsetting reductions in expenditures.

The City of Monte Sereno shall update its user fees and charges periodically to recover costs of providing that service for which a fee is charged. Each annual budget will differentiate between those services and associated expenditures which are subject to cost recovery and those which are not.

City of Monte Sereno | Budget Book 2023 Page 110 of 193 Page 24 All potential grants shall be carefully reviewed for matching requirements, maintenance of effort requirements, and on-going future expenditure requirements.

Intergovernmental grants will be evaluated to determine the long term operating and maintenance costs associated with the grant.

V. RESERVE POLICY
Adequate reserve levels are a necessary component of the City of Monte Sereno’s overall financial management strategy. The specific purpose of the reserves is to provide funding to meet operational appropriation requirements if the City of Monte Sereno experiences shortfalls in the level of anticipated revenues or unanticipated expenses. It is the responsibility of the City Council to maintain a sufficient level of reserve funds to provide for the orderly provision of services to the citizens of the City of Monte Sereno. The City Council has the authority to decide the circumstances under which the reserves can be used. The City Manager makes recommendations as to the level of reserve funds necessary for prudent fiscal management.

Reserve levels shall be reviewed at least annually during the budget process to ensure that they are consistent with the conditions faced by the City of Monte Sereno. All uses of reserves require a resolution of the City Council or will be incorporated in the annual adopted budget.

The reserve policy for the General Fund requires that a minimum of one year of current fiscal year operating budget (expenditures) be reserved. If the General Fund reserve falls below the desired level, a specific plan will be presented to the City Council for returning the reserve to the desired level.

Part of the annual budget review shall include setting aside a prudent portion of each year’s annual budget appropriations to be contributed to the City’s reserve.

Whenever possible, if the city is aware of the need to budget for a large expenditure which may need appropriations for more than one fiscal year, it is the intent of the Council to try to reserve those funds incrementally over time, provided the appropriations for such a purpose comply with applicable laws.

The City has a reserve that consists of “restricted” and “unrestricted” funds. “Restricted funds” are those funds collected therein and can only be used for the specific purposes established by the applicable laws. “Unrestricted funds” are funds that have been appropriated to the City’s reserve fund for future needs but are subject to the discretion of the Council regarding the manner in which they will be expended.

Unrestricted funds shall be identified and designated by the Council for various purposes, which may be changed from time to time by the Council as deemed appropriate.

The reserve funds designated by the Council will be used only for the purposes designated.

VI. TRANSFER AUTHORITY
The following criteria establish the transfer authority for appropriations as set forth in the fiscal year budget.

Transfers between departments, within the same fund, will require the City Manager's approval.

Transfers between the capital expenditure classification and the operating expenditure classifications can only be made with an approved City Council resolution.

Transfers between different funds can only be made with an approved City Council resolution.

The Finance/Administrative Services Officer will review all budget transfers and make recommendations to the City Manager.

VII. FISCAL MANAGEMENT AND INTERNAL CONTROLS
The City of Monte Sereno’s independent auditor will perform an annual financial and compliance audit according to General Accepted Auditing Standards (GAAS) federal and state laws, and City of Monte Sereno rules and regulations.

A system of effective internal controls will be maintained which assures only properly authorized expenditures, recordings of financial transactions, and accounting entries are executed and provide for the physical security of City of Monte Sereno funds and assets.

The City of Monte Sereno’s cash handling practices are also reviewed in conjunction with the independent audit.

A competitive request for proposal, or RFP will be issued every five years to evaluate and select external auditing firm.

City of Monte Sereno | Budget Book 2023 Page 111 of 193 Page 25 VIII. INVESTMENTS
The City of Monte Sereno will continue to have a written investment policy statement, Resolution Number 3561, which may be changed when necessary by City Council resolution. The policy for investments in priority order is safety, liquidity, and yield.

The City Council will receive reports on the cash position and performance of City of Monte Sereno investments on a quarterly basis.

IX.CAPITAL ASSETS
Assets exceeding the value of $5,000 are considered capital assets.

All assets will be maintained at a level that protects capital investment and minimizes future maintenance costs.

X. DEBT MANAGEMENT
The City of Monte Sereno will not issue long-term debt to finance current operations. Debt financing should only be used for long-term capital improvement projects or purchases of capital assets, which have a useful life exceeding the term of the financing. In addition, revenue sources shall be identified to allow for the principal, interest, and other related payments (debt service) of the long-term debt.

The City of Monte Sereno will seek to maintain a high credit rating through sound financial practices as a basis for minimizing borrowing costs.

The City of Monte Sereno will monitor all forms of debt. Annually, the status of all long-term debt will be reported to the City Council in the annual budget.

The City of Monte Sereno will monitor its compliance with bond covenants and continuing disclosures if applicable.

XI. PENSION FUNDING
The City of Monte Sereno’s retirement plan for full-time employees is provided through the California Public Employees Retirement System (CalPERS). The City of Monte Sereno’s contributions to the plan fluctuate each year based on an annual actuarial valuation. This variable rate employer contribution includes the normal cost of providing contracted benefits plus or minus an amortization of plan changes and net actuarial gains and losses since the last evaluation period. The Plan’s Funded Ratio is an assessment of the need for future employer contributions based on the selected actuarial cost method used to fund the plan. The Unfunded Accrued Liability (UAL) is the present value of the future normal cost contributions for service that has already been earned and is in addition to future normal cost contributions for active members.

The City of Monte Sereno shall make contributions to the plan equating to 100% of the actuarially required contribution (ARC) for the current year.

The City of Monte Sereno shall seek to make annual adjustment contributions to the plan equating to a 100% Funded Ratio. Previous year to current year adjustment contributions shall be budgeted as a separate recurring personnel expense. Adjustment contributions prior to the previous year shall be budgeted as a separate onetime personnel expense. In the event that the Funded Ratio falls below 100%, a specific plan will be presented to the City Council for returning the Funded Ratio to the desired level.

XII. OTHER POST EMPLOYMENT BENEFIT (OPEB) FUNDING
City of Monte Sereno | Budget Book 2023 Page 112 of 193 Page 26 Varying benefits are provided according to the City’s Memorandums of Understanding (MOU’s) with each employee group. The City of Monte Sereno does not accrue funds in advance for Other Post Employment Benefit (OPEB) expense obligations.

The City of Monte Sereno shall fund Other Post Employment Benefit (OPEB) expenses on a pay-as-you-go basis and shall budget Other Post Employment Benefit (OPEB) expenses as a separate recurring personnel expense.

City of Monte Sereno | Budget Book 2023 Page 113 of 193 Page 27 Budget Timeline

BUDGETING PROCESS
The budget process begins each year in February with a Pre-Budget Policy meeting with the Council goals, identifying upcoming issues that may affect the budget and a chance for the City Council to discuss policy issues that may impact budget preparation. Department Heads prepare estimates of revenues and departmental expenditures for submission to the Finance Director. The City Manager and Finance Director meet with each department to review the estimates and discuss requests. From these meetings, the preliminary budget is developed. The Capital Improvement Budget, which is part of the same document, follows the same process.

The City Manager is required to submit a preliminary budget to the City Council on or before May 15 of each year.

One or two public workshops are held in May and June to review the budget and receive public input. One formal public hearing is held in June, prior to budget adoption. The City Council must adopt an annual budget, by resolution, on or before June 30 for the coming fiscal year (July 1 — June 30). If the budget is not adopted by that date, the current fiscal year budget, except for capital outlays, goes into effect until the budget is adopted.

A First Quarter and Mid-year budget review will be conducted for the City Council to determine the status of projected revenues, expenditures, and other financial situations, along with consideration of needed budget amendments, A Third Quarter review will be included in the presentation of the upcoming fiscal year's proposed budget. An internal Fourth Quarter appropriation review is conducted, and budget amendments are presented to the City Council as needed.
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City of Monte Sereno | Budget Book 2023 Page 114 of 193 Page 28

BUDGET OVERVIEW
City of Monte Sereno | Budget Book 2023 Page 115 of 193 Page 29 Mission Statement
The Mission of the City of Monte Sereno is to provide high-quality services to residents in an efficient, transparent and fiscally responsible manner that preserves and enhances the unique residential character of Monte Sereno, protects natural resources and minimizes resident impacts to the environment, and protects and enhances the health, safety, mobility, and welfare of residents.

City of Monte Sereno | Budget Book 2023 Page 116 of 193 Page 30 Goal Setting Session
The City Council of Monte Sereno hosted their annual goal-setting session on March 22, 2022. Council adopted five goals to develop a work plan for FY 2022 -2023. Those five adopted goals were captured by artist Melinda Walker in this artistic rendition of the meeting minutes.

Quality Public Service
Community Character
Enhanced Mobility
Community Safety
Environmental Sustainability
City of Monte Sereno | Budget Book 2023 Page 117 of 193 Page 31 FY 2021-22 Strategic Goals
City of Monte Sereno | Budget Book 2023 Page 118 of 193 Page 32 Proposed FY 2022-23 Budget - Fund Balances Citywide
The Proposed FY 2022-23 Budget Fund Balance are projected at $5.2 million by fiscal year end June 30, 2023. Staff estimates a draw of $0.7 million from fund balances to fund various FY 2023 CIP projects. These drawdowns include the following:

City of Monte Sereno | Budget Book 2023 Page 119 of 193 Page 33 City of Monte Sereno | Budget Book 2023 Page 120 of 193 Page 34 Proposed FY 2022-23 Budget - Revenue Summary
Total Proposed FY 2022-23 Budget has a projected $5.1 million in revenues, $4.0 recurring and $1.2 non-recurring to be used for FY 2023 CIP projects. The main sources of recurring $4.0M revenue include: Property Tax ($2.3M), License & Permit Fees ($0.9M), and Franchise Fees ($0.3M) or 88% of total recurring revenues. The main sources of non-recurring $1.2 million include:

Coronavirus State and Local Fiscal Recovery Fund ($0.4M), Measure B Pavement Management Program ($81k), SB-1 and Gas Tax ($0.2M) and Proposition 68 Per Capita Program ($0.2M) or 75% of total non-recurring revenues.

City of Monte Sereno | Budget Book 2023 Page 121 of 193 Page 35 Proposed FY 2022-23 Budget - Expenditure Summary
The Proposed FY 2022-23 Budget has a projected $5.7 million in expenditures, $3.9 million recurring and $1.8 million non-recurring. The majority of recurring expenditures include: Personnel ($1.5M), Police Services ($1.1M) and Administration ($0.5M) or 80% of total recurring expenditures. Most of the non-recurring expenditures include: Annex Building ADA Improvement project ($0.6M), Highway 9 Safety Improvements Gap Closure ($0.6M) and Pavement Management program ($0.3M) or 83% of total non-recurring expenditures.

City of Monte Sereno | Budget Book 2023 Page 122 of 193 Page 36

FUND SUMMARIES
City of Monte Sereno | Budget Book 2023 Page 123 of 193 Page 37 All Funds
Proposed FY 2022-23 Budgeted Revenue Summary
City of Monte Sereno | Budget Book 2023 Page 124 of 193 Page 38 All Fund Revenue Accounts
City of Monte Sereno | Budget Book 2023 Page 125 of 193 Page 39 Proposed FY 2022-23 Budgeted Expenditure Summary
Total Proposed FY 2022-23 Budget Expenditures are $5.7 million, $3.9 million recurring and $1.8 million for General and CIP related projects. Recurring expenses of $3.9 million increased $0.3 million versus the FY 2022-23 Mid-Year Budget primarily related to personnel and police service expenses. CIP Projects related to the $1.8 million include Pavement Management Program ($0.3M), Housing Element Project ($0.1M), ePermit Project ($50k), Annex Building Improvement Project ($0.6M), Daves Neighborhood Improvement Project ($27k), Highway 9 Safety Improvement Gap Closure project ($0.6M), and City Hall Parking Lot GSI Retrofit ($0.1M).

City of Monte Sereno | Budget Book 2023 Page 126 of 193 Page 40 Proposed FY 2022-23 Budget - Expenditure
City of Monte Sereno | Budget Book 2023 Page 127 of 193 Page 41 All Fund Expenditures
City of Monte Sereno | Budget Book 2023 Page 128 of 193 Page 42 All Fund Balance Descriptions
GENERAL FUND RESERVES– Savings (01-015) and LAIF (01-025) The General Fund contains a conservative proactive fiscal management across all funds including a $3.5 million Economic Fluctuation Reserve in the General Fund. The General Fund reserve also includes provisions for Capital Improvement Program $500,000, and Property Improvement Reserve $200,000.

For FY 2022-23, the City plans significant draws from the reserves to cover CIP and other project expenses:
a. Pavement Management Program ($38k)
b. Housing Element Project ($33k)
c. ePermit Tracking System ($50k)
d. Annex Building ADA Improvement Project ($343k)
e. Daves Neighborhood Improvement Project ($27k)
f. City Hall Parking Lot GSI Retrofit ($125k)
LAW ENFORECEMENT – Savings (03-015)
Provision for receipt of grant Law Enforcement funds which is a pass-through account to pay police services.

TRAFFIC SAFETY – Savings (05-015) and LAIF (05-025)
Reserve for road and traffic safety projects. Currently accumulating reserves for Daves and La Rinconada Neighborhood projects.

GAS TAX (2107) – Savings (12-015) and LAIF (12-025)
Reserves for future Pavement Management Program projects. In FY 2021-22 Budget, the City plans to draw from reserves for Winchester Boulevard Class IV Protected Bike Lanes project.

STORM DRAIN – Savings (25-015) and LAIF (25-025)
Reserves for an unexpected storm drain issues. Current balance Storm Drain (25-015) $71,775 and LAIF (25-025) $21,000 as of April 30, 2021.

SURETY TRUST – Savings (30-015) and LAIF (30-025)
Surety Required. If the City Engineer determines that the nature of the proposed work is such that, if left incomplete, it will interfere with any natural or artificial drainage, or will endanger persons or public or private property, or will constitute a nuisance or if he determines that the proposed work involves the removal or deposition of more than fifty (50) cubic yards of material are moved, the applicant for the grading permit shall post with the City Engineer a surety executed by the applicant and secured, at the option of applicant, by (1) a corporate surety bond executed by a surety company authorized to do business in the State of California, or (2) by deposit with the City of cash money or its equivalent, or (3) by deposit with the City of an instrument of credit from a financial institution subject to regulation by the State of California or the Federal government pledging that the funds necessary to meet the performance are on deposit and guaranteed for payment upon demand and agreeing that the funds designated by the instrument shall be trust funds for the purposes set forth in the instrument. The form of the bond and the security shall be subject to approval by the City Engineer and the City Attorney. Current combined reserve balance $27,116 as of April 30, 2021.

LOMA SERENA LIGHTING DISTRICT – Savings (40-015) and LAIF (40-024) Reserve account to collect tax revenues from residents in the Loma Serena Lighting district to pay for utility and maintenance expenses for street lighting.

City of Monte Sereno | Budget Book 2023 Page 129 of 193 Page 43 Proposed FY 2022-23 Budget Fund Reserve Balance Detail
City of Monte Sereno | Budget Book 2023 Page 130 of 193 Page 44 Reserve Policy for the General Fund
The reserve policy for the General Fund requires that a minimum of one year of current fiscal year operating budget (expenditures) be reserved. If the General Fund reserve falls below the desired level, a specific plan will be presented to the City Council for returning the reserve to the desired level.

The Proposed FY 2022-23 Operating Budget Expenditures is $3.9 million. Total Proposed FY 2022-23 ending fund balances after funding all General and CIP projects is $4.8 million, $0.9 million ahead of this reserve requirement.

City of Monte Sereno | Budget Book 2023 Page 131 of 193 Page 45

DEPARTMENTS
City of Monte Sereno | Budget Book 2023 Page 132 of 193 Page 46 Public Safety
Jamie Field
Police Chief
Jamie Field
New Los Gatos-Monte Sereno
Police Chief
After a competitive nationwide search, Jamie Field was appointed the next Los Gatos-Monte Sereno Police Chief.

Recruiting firm Bob Murray & Associates ran the hiring process under the guidance of retired Walnut Creek Police Chief Joel Bryden.

The process included opportunities for the public and Police Department staff to provide input on the qualities they would like to see in the next Chief. A community meeting held in November involved residents and elected officials from both Monte Sereno and Los Gatos. Several meetings were held with Police Department sworn and civilian staff. Mr. Bryden also made himself available for phone conversations and email comments. This input was critical in the evaluation of the candidates. The candidates underwent rigorous panel interviews, including one panel consisting of three current Bay Area Police Chiefs. The finalists participated in an additional panel review.

Chief Jamie Field has been a sworn law enforcement professional for over 20 years. Chief Field has worked with the Los Gatos-Monte Sereno Police Department (LGMSPD) since 2009, starting as an Officer and successfully rising through the ranks to Captain. At the time of her promotion to Police Chief, she was serving as Interim Police Chief for the Department.

Los Gatos Mayor Rob Rennie said, "I am excited about Chief Field and have confidence in her leadership to guide the Department in its community policing mission with specific attention to staffing, training, and succession planning."
City of Monte Sereno | Budget Book 2023 Page 133 of 193 Page 47

CAPITAL IMPROVEMENT PROJECTS
City of Monte Sereno | Budget Book 2023 Page 134 of 193 Page 48 Proposed FY 2022-23 Budget - Citywide Projects
During the General and Capital Improvement Projects (CIP) budget process, departments develop project requests for all their anticipated capital improvement needs, both funded and unfunded. The requests capture the total project costs and funding sources where possible. Additional operating costs related to completed capital projects are included in the respective operating budgets. Projects are prioritized and recommended for funding based on a review with City Manager, Department Heads and the Financial Officer.

In the Proposed FY 2022-23 Budget, projected costs for both General and CIP projects is $1.8 million. Projects include Pavement Management Program ($0.3M), Housing Element Project ($0.1M), ePermit Tracking Project ($50k), Annex Building ADA Improvement Project ($0.6M), Daves Neighborhood Improvement Project ($27k), Highway 9 Safety Improvement Gap Closure ($0.6M) and City Hall parking lot GSI retrofit ($0.1M). The City expects to receive $1.2 million from various funding sources for these projects and will require a draw of $0.6 million from fund reserves. Below is a list of all General and CIP projects in the Proposed FY 2022-23 Budget.

City of Monte Sereno | Budget Book 2023 Page 135 of 193 Page 49 Proposed FY 2022-23 Project Funding Source Detail - $1.2 Million City of Monte Sereno | Budget Book 2023 Page 136 of 193 Page 50 City of Monte Sereno | Budget Book 2023 Page 137 of 193 Page 51 General Projects
ePermit Tracking System
The $50k funds will be used to develop online permitting for minor building permits (i.e. water heater replacement, furnace replacement) to allow customers to obtain building permits online without having to travel to City Hall during business hours.

Additionally, the funds will be used to develop an electronic tracking system for code enforcement cases. Currently, code enforcement cases are tracked manually, which is time consuming and does not allow for ease of reporting statistics on cases.

And maintenance on these systems as well as the existing building permit tracking and planning permit tracking.

Housing Element Project
The Housing Element
The Housing Element is part of the City of Monte Sereno’s General Plan. It is a comprehensive policy document that identifies where, how, and how much housing Monte Sereno is mandated to plan to accommodate existing and projected future housing needs for people of all income groups. In accordance with State law, the City of Monte Sereno must update its Housing Element every 8 years. This is the sixth time the City will have updated its Housing Element and may also be referred to as the 6th Cycle Housing Element Update. This update will apply to the timespan of 2023-2031.

In this 6th Cycle Update, the City is required to plan for an additional 193 new housing units. With roughly 3,500 residents living in an area of 1.6 square miles with all residential zoning, the City expects that the 193 new housing units can mostly be accommodated through Accessory Dwelling Units (ADUs) and other secondary housing units.

With residents’ participation and input, the City will plan for this growth while minimizing impacts on Monte Sereno’s unique culture and character.

At Home in Monte Sereno (www.AtHomeinMonteSereno.com) is the City’s online community forum to engage in this project. This is a pivotal opportunity to shape the future of Monte Sereno. The website is the go-to place to learn about and be a part of the City’s work on housing and to help guide decision makers on the direction of future housing. This online platform will be open and updated throughout the Housing Element Update process, ending in December 2022.

This site will be updated regularly with information on upcoming meetings, summaries of input and feedback received from the community, and overall project status. Please register to participate or subscribe to stay informed and receive the latest information on the update process.

City of Monte Sereno | Budget Book 2023 Page 138 of 193 Page 52 Capital Improvement Project Summary
City Hall Parking Lot GSI Retrofit
City Hall Parking Lot GSI Retrofit (FY22/23) Retrofit of the City Hall parking lot with green stormwater infrastructure to meet the requirements of the Municipal Regional Stormwater NPDES Permit consistent with the City’s GI Plans Green Stormwater Infrastructure Plan adopted in August 2019.

City of Monte Sereno | Budget Book 2023 Page 139 of 193 Page 53 City Hall and Annex Building Improvement ADA Project
Monte Sereno Community Center (FY22/23, carry over from FY21/22) Conversion of Annex Building to Community space inclusive of ADA accessibility improvements. Here are some suggested ideas for uses as currently envisioned: Meetings, gatherings, book clubs, bunko, Thai-Chi, guest speakers, events for seniors, movie nights, yoga classes, a cooling station, community resource center (CRC), emergency operation center, (EOC) lounge space and parties.

Daves Neighborhood Improvement Project
Neighborhood Improvement Project - Daves Neighborhood (FY22/23, FY24/25) This project will design and construct pavement rehabilitation and curb and gutter for improved drainage on Bruce and Vista Avenues. Work in FY22/23 includes the finalization of project plans initiated in FY21/22 (no increase in project budget).

City of Monte Sereno | Budget Book 2023 Page 140 of 193 Page 54 Pavement Management Program (Annual)
Pavement Management Program (Annual) - Annual street maintenance program to preserve and repair surface conditions on public streets, funded upon Council direction from the pavement management study conducted in 2021. Streets selected for Pavement Management Program are prioritized based on annual condition assessment and the timing of major projects by West Valley Sanitation District, San Jose Water Company, and PG&E.

Highway 9 Safety Improvement Gap Closure Project
Highway 9 Safety Improvements Gap Closure (FY22/23, carry over from FY21/22) Completion of pedestrian improvements of the Highway 9 Phase 2 Improvement Project. Project is fully designed and awaiting approval by Caltrans.

City of Monte Sereno | Budget Book 2023 Page 141 of 193 Page 55 Housing Element Project
The Housing Element
The Housing Element is part of the City of Monte Sereno’s General Plan. It is a comprehensive policy document that identifies where, how, and how much housing Monte Sereno is mandated to plan to accommodate existing and projected future housing needs for people of all income groups. In accordance with State law, the City of Monte Sereno must update its Housing Element every 8 years. This is the sixth time the City will have updated its Housing Element and may also be referred to as the 6th Cycle Housing Element Update. This update will apply to the timespan of 2023-2031.

With residents’ participation and input, the City will plan for this growth while minimizing impacts on Monte Sereno’s unique culture and character.

City of Monte Sereno | Budget Book 2023 Page 142 of 193 Page 56 Capital Improvement Projects - Five Year Plan
Capital Improvement Projects – Five Year Plan
Background and discussion
The Five-Year Capital Improvement Plan (CIP) is a planning tool designed to identify facilities and infrastructure improvements which will be considered for development over a five-year time frame beginning in FY 2022-23 through FY 2026-27. This item includes CIP tables showing improvements and their currently estimated expenses as well as identified revenues for funding those improvements. The CIP is a companion portion of the budget process for the fiscal year 2022-2023 budget.

A 5-Year CIP is useful in:

Identifying long-term capital improvement objectives with direction from Council Identifying possible funding opportunities
Enhancing coordination and communication between other entities involved in the development of capital projects Increasing alignment between infrastructure and facilities projects and the Council’s goals, objectives and annual budget process
Increasing the awareness of planned capital projects for the public and community partners The CIP is intended to be dynamic in nature and will change from year to year as priorities, needs and funding change. The CIP is a guide for the consideration, selection, and development of roads, drainage facilities, and other City facilities. There will be continual refinement of this information moving forward.

Staff is meeting with the City Council at the Budget Workshop to review the CIP improvements and priorities, estimated costs, and revenues. This CIP will be updated for the FY 2022-23 budget to incorporate Council comments and new information received.

The following tables are included:

Project Expenses show capital projects included in this year’s budget as well as the next four fiscal years for road resurfacing, drainage infrastructure, and other City facilities.

Funding Sources - Revenues show the projected revenue sources for the capital projects.

FISCAL, RESOURCE AND TIMELINE IMPACTS
This CIP shows rough estimated expenses and revenues to fund the City’s future capital projects through FY 2026-27. Many of the expense estimates are very preliminary and are anticipated to change as scopes and designs move forward on the respective projects. Figures will be updated as better information becomes known.

PROJECTS
Pavement Management Program (Annual) - Annual street maintenance program to preserve and repair surface conditions on public streets, funded upon Council direction from the pavement management study conducted in 2021. Streets selected for Pavement Management Program are prioritized based on annual condition assessment and the timing of major projects by West Valley Sanitation District, San Jose Water Company, and PG&E.

Neighborhood Improvement Project - Daves Neighborhood (FY22/23, FY24/25) This project will design and construct pavement rehabilitation and curb and gutter for improved drainage on Bruce and Vista Avenues. Work in FY22/23 includes the finalization of project plans initiated in FY21/22 (no increase in project budget).

Monte Sereno Community Center (FY22/23, carry over from FY21/22) Conversion of Annex Building to Community space inclusive of ADA accessibility improvements.

Highway 9 Safety Improvements Gap Closure (FY22/23, carry over from FY21/22) Completion of pedestrian improvements of the Highway 9 Phase 2 Improvement Project. Project is fully designed and awaiting approval by Caltrans.

City Hall Parking Lot GSI Retrofit (FY22/23) Retrofit of the City Hall parking lot with green stormwater infrastructure to meet the requirements of the Municipal Regional Stormwater NPDES Permit consistent with the City’s GI Plans Green Stormwater Infrastructure Plan adopted in August 2019.

Striping on Daves Avenue (FY23/24) Design and construction of striping for traffic movement and bike and pedestrian safety on Daves Avenue, to be completed concurrent with pavement maintenance under the Pavement Management Program.

Daves Avenue Sidewalk Gap Closure (FY23/24, FY26/27) Design and construction of approximately 1,600 ft (0.3 miles) of sidewalk to close the gap between Equestrian Way and 170 ft west of Via Caballero, creating a continuous sidewalk on the south side of Daves Avenue.

Highway 9 Bicycle Safety Study (FY24/25) This study would recommend and develop improvements along SR 9 including infrastructure improvements that directly address pedestrian and bicycle safety, and design features that promote driverawareness of pedestrians and bicycles.

City of Monte Sereno | Budget Book 2023 Page 143 of 193 Page 57 Winchester Boulevard Complete Streets Final Design (TBD) It envisioned that Winchester Boulevard can be improved with Complete Streets treatments, including enhanced bike lanes, pedestrian crossings, sidewalk improvements, pedestrian refuse islands, landscaped median, and intersection modifications for safer biking and walking. A Santa Clara County Measure B program grant was awarded for the final design of the project, based on funding availability, final design will take place in 2022- 24 or 2024-26, with construction anticipated in 2028. City and Town staff are currently pursuing grant funding for the construction of this project.

City of Monte Sereno | Budget Book 2023 Page 144 of 193 Page 58 FY 2022-23 Proposed Five Year Capital Improvement Plan Budget Capital Improvement Projects – Five Year Plan
Background and discussion
The Five-Year Capital Improvement Plan (CIP) is a planning tool designed to identify facilities and infrastructure improvements which will be considered for development over a five-year time frame beginning in FY 2022-23 through FY 2026-27. This item includes CIP tables showing improvements and their currently estimated expenses as well as identified revenues for funding those improvements. The CIP is a companion portion of the budget process for the fiscal year 2022-2023 budget.

A 5-Year CIP is useful in:

The following tables are included:

Project Expenses show capital projects included in this year’s budget as well as the next four fiscal years for road resurfacing, drainage infrastructure, and other City facilities.

Funding Sources - Revenues show the projected revenue sources for the capital projects.

City of Monte Sereno | Budget Book 2023 Page 145 of 193 Page 59 Neighborhood Improvement Project - Daves Neighborhood (FY22/23, FY24/25) This project will design and construct pavement rehabilitation and curb and gutter for improved drainage on Bruce and Vista Avenues. Work in FY22/23 includes the finalization of project plans initiated in FY21/22 (no increase in project budget).

Monte Sereno Community Center (FY22/23, carry over from FY21/22) Conversion of Annex Building to Community space inclusive of ADA accessibility improvements.

Winchester Boulevard Complete Streets Final Design (TBD) It envisioned that Winchester Boulevard can be improved with Complete Streets treatments, including enhanced bike lanes, pedestrian crossings, sidewalk improvements, pedestrian refuse islands, landscaped median, and intersection modifications for safer biking and walking. A Santa Clara County Measure B program grant was awarded for the final design of the project, based on funding availability, final design will take place in 2022- 24 or 2024-26, with construction anticipated in 2028. City and Town staff are currently pursuing grant funding for the construction of this project.

City of Monte Sereno | Budget Book 2023 Page 146 of 193 Page 60

SUPPLEMENTAL INFORMATION
City of Monte Sereno | Budget Book 2023 Page 147 of 193 Page 61 Fix it! Monte Sereno
Fix it! Monte Sereno
The City of Monte Sereno has launched a new online and mobile application for a request management system called “Fix it! Monte Sereno” to provide residents with an effortless way to participate in community-based reporting via their smartphones, other mobile devices, or from their desktop computers.

A resident may snap a picture of a problem and send it to the City via Fix it! Monte Sereno. Issues will automatically be entered into the database system and channeled to the appropriate department to be resolved.

Fix it! Monte Sereno also allows residents to track submissions and engage other members of the community. The City will provide updates as submissions are acknowledged and resolved.

To download this free app, please go to the iPhone and Android app stores City of Monte Sereno | Budget Book 2023 Page 148 of 193 Page 62 La Rinconada Neighborhood Improvement Project Completed Completed the La Rinconada Neighborhood
project under budget at $1.6 million. The
project consist of pavement rehabilitation and
new curb and gutter for improved drainage on
Zena Avenue, Clara Street, and Natalye Road.

Engineering design has been completed for
this project.

City of Monte Sereno | Budget Book 2023 Page 149 of 193 Page 63 Tree City USA - Official Proclamation
City of Monte Sereno | Budget Book 2023 Page 150 of 193 Page 64 Monte Sereno Social Justice Award
The City of Monte Sereno congratulates two outstanding Los Gatos High School students on their being selected as co-winners of the 2021 Monte Sereno Social Justice Award. This year’s co-awardees are Junior Tatum Thomas and Senior Alexa Kupor.

The Monte Sereno Youth Commission chartered the Monte Sereno Social Justice award to recognize students working to support human rights and bring social change in their community. The winner is selected annually in the month of May by the Monte Sereno Youth Commission.

Tatum Thomas works at Good Samaritan Hospital assisting those in need with financial aid and affordable resources obtaining healthcare. Subsequently, Tatum Thomas initiated and launched an international nonprofit organization called Evolution Hope. In the past year, Evolution Hope has provided resources and educational enrichment to rural communities in Peru.

Alexa Kupor is co-president of Sexual Violence Free LG (SVFreeLG), and For Survivors (FSFS). Alexa volunteered at a the first ever Los Gatos based “Stand for Survivor Solidarity” event and participated in a silent march. These events and speaking during public comments at Santa Clara County Board of Supervisors meetings helped persuade the Board of Supervisors to change legislation and double their funding allocations. Alexa subsequently organized and joined forces with student run organizations to publish and send articles nationally to voters about survivor’s federal Title IX rights. Alexa is currently working for the Enough is Enough Voter Project, supporting efforts to prevent online sex trafficking and ending spousal rape exception laws.

City of Monte Sereno | Budget Book 2023 Page 151 of 193 Page 65

APPENDIX
City of Monte Sereno | Budget Book 2023 Page 152 of 193 Page 66

STAFF REPORT
Meeting: City Council - Jun 21 2022
Agenda Heading: NEW BUSINESS
Staff Contact: Sergio Rudin,
Department: City Attorney
Title: Consider and Approve the First Amendment to Agreement Between the City of Monte Sereno and Steven Leonardis for Employment as City Manager
Recommendation(s):

Staff recommends that the City Council consider and approve the first amendment to the agreement between the City of Monte Sereno and Steven Leonardis for employment as City Manager.

Attachments:

City Manager Agreement First Amendment

Page 153 of 193 ends

OAK #4886-8147-4085 v1 1

FIRST AMENDMENT TO AGREEMENT BETWEEN

THE CITY OF MONTE SERENO AND

STEVEN LEONARDIS FOR EMPLOYMENT AS CITY MANAGER
THIS FIRST AMENDMENT is made and entered into as of June 21, 2022, by and between the City of Monte Sereno, a municipal corporation (“City”) and Steven Leonardis (“Manager”).

RECITALS
A. Manager was selected by the City Council of the City (“City Council”) to serve as City Manager of the City and was chosen on the basis of his executive, administrative and management qualifications and knowledge in the field of governmental and municipal administration.

B. Manager and City entered into that Agreement Between the City of Monte Sereno and Steven Leonardis for Employment as City Manager, dated December 11, 2019 (the “Agreement”).

C. The parties desire to enter into this First Amendment to increase compensation provided for under the Agreement for services rendered by Manager.

AGREEMENT
NOW, THEREFORE, in consideration of the promises, covenants and conditions contained herein the parties agree as follows:

1. Amendment of Compensation. Section 2 of the Agreement is hereby amended to read in its entirety as follows:
“2. Salary. Commencing December 21, 2019, as compensation for the services to be performed for City, Manager shall receive an annual base salary of One Hundred and Eighty Thousand Dollars ($180,000.00) per annum, payable in the manner customarily followed by City with respect to payment of other full-time employees of the City. Commencing July 1, 2022, the annual base salary provided to Manager for services rendered to the City shall be increased by $6,300 and shall be One Hundred and Eighty Six Thousand, Three Hundred ($186,300), payable in the manner followed by the City for other full-time employees.”

2. Remaining Terms of Agreement in Effect. Except as expressly modified herein by this First Amendment, all other remaining terms of the Agreement shall remain in full force and effect.

Page 154 of 193 ends

OAK #4886-8147-4085 v1 2
IN WITNESS WHEREOF, this Agreement is executed by the City and Manager to be effective as of the date first set forth above, at Monte Sereno, California.

CITY OF MONTE SERENO: MANAGER:

BY:_____________________________ ________________________________ Javed Ellahie, Mayor Steven Leonardis
ATTEST:
________________________________
Michelle Estabillo, City Clerk
APPROVED AS TO FORM:
________________________________
Sergio Rudin, City Attorney

Page 155 of 193 ends

STAFF REPORT
Meeting: City Council - Jun 21 2022
Agenda Heading: NEW BUSINESS
Staff Contact: Diana Perkins, City Planner
Department: City Planner
Title: Discuss and Provide Direction to Staff Regarding Reducing Building Permit and Plan Check Fees for Accessory Dwelling Units When the Property Owner has Formally Notified the City of their Intention to Construct an Accessory Dwelling Unit for the Next RHNA Cycle Recommendation(s):

Staff recommends the City Council provide direction regarding approving a reduction of plan check and permitting fees for Accessory Dwelling Units (ADUs) where the property owner has formally notified the City in writing of their intention to construct an ADU by September 16, 2022 and such building permit is issued by December 31, 2029.

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.

Regional Housing Needs Allocation (RHNA)
Every city in California receives a required number of homes to plan for in the updated Housing Element. This is called the Regional Housing Needs Allocation (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

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Above Mod Income: 79
Total: 193
There are three main options for the Council to consider in order to plan for the required number of additional housing units: ADUs, projects constructed under the new SB-9 regulations, and rezoning sites to a higher density to allow for additional housing units. These options were discussed at the Joint Special Meeting of the City Council and Site and Architectural Commission on May 24, 2022, the consensus from the Council and Commissioners was that efforts should be focused on meeting the RHNA requirements through the construction of ADUs.

Analysis:

The standard methodology to estimate the number of ADUs that will be constructed during the 2023-2031 planning period is based on the average number of such units constructed since 2019, when the state law made it easier to construct such units. This is described in Attachment 1, the Association of Bay Area Governments (ABAG) Technical Memo for Using ADUs to Satisfy RHNA. The following table shows the number building permits that were issued for construction of new ADUs each calendar year since 2019:

Year Building Permits Issued for New ADUs
2019 14
2020 9
2021 14
2022
(Projected based on 9 units issued through June
15)
18 Average 13.75
A straight projection of the average above would total 110 ADU which could be planned for the update Housing Element. However, as shown above, the number of building permits issued in 2020 for new ADUs was low. This is likely due to the beginning of the Covid 19 Pandemic and local health orders which required non-essential construction to cease for several months. The attached Technical Memo does indicate that a small amount of flexibility may be allowed to the straight average projection. If 2020 is excluded, the total number of ADU permits issued in 2019, 2021, and projected for 2022 is 46, which would project to 122 for the eight-year planning period of 2023-2031 in the updated Housing Element.

As noted in the Attachment 1, the Association of Bay Area Governments (ABAG) Technical Memo for Using ADUs to Satisfy RHNA, a jurisdiction may project a higher number of ADUs that will be constructed during the 2023-2031 planning period if a robust, funded, and clear plan is developed to increase the production of ADUs.

As part of such program to justify an increased ADU projection, the City Council Ad Hoc Committee and the Site and Architectural Commission Ad Hoc Committee for the Housing Element Update have both recommended that the City Council consider a fee reduction program to encourage the construction of ADUs. The proposed reduction amount is 50% of the permitting and plan review fees. Depending on the size of the ADU, these fees total

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approximately $7,200 for each new ADU, which would be reduced by $3,600. It is important to note that there are other fee items that are not part of the proposed reduction program such as the City’s adopted Construction Tax and other fees that are state mandated. The Construction Tax is a voter approved tax that cannot be altered without an approved ballot measure. The other fees are not considered user fees as they are collected to cover the costs of specific impacts and state mandates.

The Ad Hoc Committees are working to develop a neighborhood canvassing program where residents will be informed of the updated Housing Element and the RHNA allocation as well as, if approved, the fee reduction program for ADUs. The intent of this effort is to inform the community of the Housing Element issues and request written intention from those residents interested in constructing an ADU by December 31, 2029.

Fiscal Impact:

A 50% reduction in the permitting and plan review fees would result in approximately $3,600 per ADU permit, depending on the size on the building. If 193 ADU permits were issued under the fee reduction program, this would result in decreased revenue of $694,800 over the eightyear period, or $86,850 on average each year.

Public Noticing:

Attachments:

1. ABAG Technical Memo - Using ADUs to Satisfy RHNA

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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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STAFF REPORT
Meeting: City Council - Jun 21 2022
Agenda Heading: NEW BUSINESS
Staff Contact: Javed Ellahie, Mayor
Department: Mayor
Title: Discussion and Provide Direction to the Mayor on the City of Monte Sereno's Position on Legislation Being Considered by the Santa Clara County Cities Association
Recommendation(s):

Staff recommends that the Council discuss and provide direction to the Mayor on the City's position on legislation being considered by the Santa Clara County Cities Association.

Background Information:

Mayor Ellahie requested that this item be placed on the June 21, 2022 City Council agenda for discussion and direction. The following legislation will be considered at the Santa Clara County Cities Association meeting on June 23, 2022:

AB 2181 (Berman) Santa Clara Valley Transportation Authority: Board of Directors This bill, on and after July 1, 2023, would revise the membership of the Valley Transportation Authority board of directors, impose city or county residency requirements on the community members serving on the board of directors, authorize the board of directors to include ex officio nonvoting members from regional transportation or governmental bodies, and would increase the directors’ terms of office to four (4) years.

AB 2011(Wicks)Affordable Housing and High Road Jobs Act of 2022 This bill would require almost all cities to ministerially approve certain affordable and mixed use housing developments in areas of a city where office, retail or parking are principally allowed even if it conflicts with a local government’s general plan, specific plan, zoning ordinance or regulation.

AB 2097 (Friedman) Residential and Commercial Development. Parking Requirements This bill would prohibit a local government from imposing or enforcing a minimum automobile parking requirement on residential, commercial, or other developments, if the development is located on a parcel within one-half mile of public transit.

SB 897 (Wieckowski) Accessory Dwelling Units

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This bill would amend the statewide standards that apply to locally adopted ordinances concerning the construction of accessory dwelling units (ADUs). SB 897 would require cities to allow ADUs to be constructed with a height of up 25 feet.

Public Noticing:

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

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STAFF REPORT
Meeting: City Council - Jun 21 2022
Agenda Heading: NEW BUSINESS
Staff Contact: Diana Perkins, City Planner
Department: City Planner
Title: Housing Element Update: Draft Programs and Project Schedule Recommendation(s):

Staff recommends that the Site and Architectural Commission and the City Council receive the Housing Element Update and provide feedback on programs for inclusion in the Draft Housing Element.

Background Information:

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.

Housing Element Overview
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:

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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 Outreachand 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.

Housing Element Programs Overview and Quantified Objectives The Housing Element is required to contain a program which sets forth a schedule of actions the jurisdiction is undertaking or intends to undertake to implement the policies and achieve the goals and objectives of the Housing Element through the administration of land use and development controls, provision of regulatory concessions and incentives, and the utilization of appropriate federal and state financing and subsidy programs when available Government Code Section 65583(c).

The Housing Element is also required to include a statement of the community’s goals, quantified objectives, and policies relative to affirmatively furthering fair housing and to the maintenance, preservation, improvement, and development of housing. (Government Code Section 65583(b)).

Analysis:

Each jurisdiction must identify specific programs in its Housing Element that will allow it to implement the stated policies and achieve the stated goals and objectives. Programs must include specific action steps the jurisdiction will take to implement its policies and achieve its goals and objectives. Programs must also include a specific timeframe for implementation, identify the agencies or officials responsible for implementation, describe the jurisdiction’s specific role in implementation, and (whenever possible) identify specific, measurable outcomes. Programs should reflect the results and analyses of the jurisdiction’s local housing needs, available land and financial resources, and the mitigation of identified governmental and non-governmental constraints.

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Requisite Program Components
Cities are required by law to make adequate provision for the housing needs of people in all income levels, and a jurisdiction must, at a minimum, identify programs that do all the following:
• Identify adequate sites, with appropriate zoning and development standards and services to accommodate the locality’s share of the regional housing needs for each income level
• Assist in the development of adequate housing to meet the needs of extremely low-, very low-, low-, and moderate-income households.
• Address and, where possible, remove governmental constraints to the maintenance, improvement, and development of housing, including housing for people at all income levels, as well as housing for people with disabilities. • Conserve and improve the condition of the existing affordable-housing stock. • Preserve assisted housing developments at-risk of conversion to market-rate. • Promote equal housing opportunities for all people, regardless of race, religion, sex, marital status, ancestry, national origin, color, familial status, or disability.

Effective programs include the following:
• Definite time frames for implementation
• Identification of agencies and officials responsible for implementation • Description of the local government’s specific role in program implementation • Description of the specific action steps to implement the program. • Proposed measurable outcomes
• Demonstration of a firm commitment to implement the program • Identification of specific funding sources, where appropriate Draft Goals, Policies, and Programs
As described in the attached memorandum from EMC Planning Group, the draft Goals, Policies, and Programs are a combination of items carried over from the current Housing Element as well as new policy language. The draft Goals are as follows:
• Goal H-1: Facilitate Housing Construction
• Goal H-2: Provide New Affordable and Equal Opportunity Housing • Goal H-3: Maintain and Improve the Existing Housing Stock • Goal H-4: Publicize Resources
Each of the above Goals include Policies that state the how each Goal will be achieved. And the Programs are the detailed actions that will implement the Goal and Policy. The new program language included in the attached draft Goals, Policies, and Programs are as follows:
• Goal H-1: Facilitate Housing Construction

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Program: Facilitate Parcel Maps. Aligning the process for subdivisions of four or fewer lots with the parcel map process in the Subdivision Map Act reduces the administrative burden and incentivizes the establishment of new lots for development. The City will revise Municipal Code Section 13.01.050 by December 2025 to eliminate requirements for a Tentative Map requirement for subdivisions of two or more lots and replace it with a Parcel Map requirement for four lots or fewer consistent with the Subdivision Map Act.

Staff Comments: The Subdivision Map Act allows for creation of subdivisions of less than five parcels via a parcel map, which may be processed via a more streamlined method than a tentative map. Parcel maps are approved as a single step, and are usually approved by a designated City board or officer rather than a City Council in many jurisdictions. Under the existing municipal code, the City of Monte Sereno requires approval of a tentative map and a final map for all subdivisions in the City, even subdivisions as small as two lots — while legal, this is not typical practice in most jurisdictions. The present municipal code requires a public hearing for the City Council to first approve a tentative map for any subdivision, and the final map must also be approved at a future, additional City Council hearing (typically a Consent Calendar item, since the Map Act prohibits denial of a final map that is substantially in compliance with the tentative map). The Municipal Code currently requires that all small subdivisions (which in most jurisdictions are approved by parcel map) be treated the same as a larger subdivision, thereby requiring at least two scheduled City Council meetings (one Public Hearing regarding the tentative map and one to approve the final map). This draft program would review this Municipal Code requirement and consider streamlining the process to match the Subdivision Map Act requirements for Parcel Maps. • Goal H-1: Facilitate Housing Construction
Program: Facilitate Parcel Maps. Flag lots are a method to increase the number of lots in the City available for residential development. The City will evaluate Municipal Code Section 13.02.300 flag lot regulations and update the requirements to facilitate new flag lots including reviewing minimum lot sizes, setbacks and frontage requirements.

Staff Comments: The Municipal Code requirements for flag lots are minimal. With this Program, staff would review these requirements, assess best practices used by other jurisdictions, and recommend any necessary modifications to improve and clarify the current standards. Any recommended changes would be reviewed by the Site and Architectural Commission and the City Council.
• Goal H-1: Facilitate Housing Construction
Program: Facilitate Subdivision. Evaluate SB 9 regulations to facilitate new construction and consider revisions to SB 9 development standards.

Staff Comments: The Municipal Code includes regulations for SB 9 Residential Developments as well as Urban Lot Splits. However, as part of the Housing Element

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analysis, the current regulations may be considered a constraint on development. This is an issue that the Site and Architectural Commission and City Council Ad Hoc committees are working on, including developing informational brochures, conducting outreach to the community, and receiving feedback in order to consider possible changes to the SB 9 regulations.
• Goal H-4: Promote and Enforce Fair Housing
Program: Communicating to the public about fair housing laws and available programs is essential to raise awareness and to connect people with resources. The City will provide written information on fair housing laws and resources at the Planning Department counter as well as on the City’s website. Further, the City will promote the use of Project Sentinel, a HUD approved housing counseling agency in Santa Clara County as a resource for fair housing information and advisory services. The City will work with other organizations to promptly address complaint of discrimination in the sale, rent and development of housing in Monte Sereno.

Staff Comments: This is a new goal and program proposed for the updated Housing Element to emphasize the importance of communicating fair housing resources to the community and underscore the City’s commitment to providing such resources in an easily accessible manner to the community.

The other draft programs are continuations of programs in the current Housing Element, which focus on on-going efforts for permit streamlining, site development review, fair housing, housing for special populations, and maintenance of housing stock and infrastructure. The existing Housing Element includes a program to encourage the construction of Accessory Dwelling Units (ADUs). The draft Program G expands on the current efforts by including the consideration of a possible building permit fee reduction for ADU permits and a public outreach effort to encourage residents to construct an ADU. These were items discussed at the May 24, 2022 joint meeting with the City Council and Site and Architectural Commission as well as the Ad Hoc Committees.

Draft Housing Element Project Schedule
The upcoming major milestone for the Housing Element update is to submit a draft document to HCD for their review and comment. This will allow the City to adjust the final document based on the feedback received. The draft document will include the Sites Inventory information discussed above as modified based on direction provided by the Site and Architectural Commission and City Council. Following are planned milestone dates to complete the Draft Housing Element:
• June 21, 2022 – Review Policies and Programs (Joint Meeting with Site and Architectural Commission and City Council)
• July 1, 2022 - Draft Housing Element Published for 30-Day Public Review • August 2, 2022 - Approve the Draft Housing Element (City Council Meeting) • August 15, 2022 – Submit Draft Housing Element to HCD for review

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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. EMC Planning Group Memorandum and Draft Goals, Policies, and Programs

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To: Monte Sereno City Council
From: Ande Flower, Principal Planner EMC Planning Group Date: June 21, 2022
Re: Initial meeting for Goals, Policies and Programs Discussion

SUMMARY
This memorandum initiates discussion topics for the Goals, Policy and Programs Chapter to address the 6th Cycle Housing Element update. For more information about Monte Sereno’s 6th Cycle Housing Element Update process, please visit our dedicated housing element website, www.athomeinmontesereno.com.

BACKGROUND
The Goals, Policies and Actions chapter of the Housing Element forms a critical part of the Housing Element and are intended to address the housing needs of Monte Sereno. In order to craft the chapter for the 6th cycle Housing Element, an analysis of the impediments to fair housing choice is conducted and forms the basis of policy development. The analysis:
• Provides a demographic profile of Monte Sereno;
• Assesses the extent of housing needs among specific groups; • Evaluates the range of available housing choices;
• Produces an analysis of private market and public sector conditions that may limit housing choices or impede a person’s access to housing (still under development); • Identifies impediments that may prevent equal housing access (still under development); and • Develops solutions to mitigate or remove such impediments.

DISCUSSION
Proposed Reorganization of Goals for Greater Clarity
The City is responsible for enabling the production of housing by reducing regulatory barriers, providing incentives, and supporting programs that create or preserve housing, especially for vulnerable populations. In order to improve the Housing Element communication and messaging, the following four potential goals are listed below for consideration:
 Facilitate Housing Construction; formerly,
 Goal H-1: Provide Housing Consistent with the Character of the Community, and  Goal H-2: Construct Additional Housing to Meet the Identified Needs of All Income Groups in Monte Sereno
 Provide New Affordable and Equal Opportunity Housing; formerly,

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 Goal H-2: Construct Additional Housing to Meet the Identified Needs of All Income Groups in Monte Sereno;
 Goal H-4: Support a Continuum of Housing Opportunities for Members of the Monte Sereno Community in all Stages of Life, Including Those With or Without Special Needs, and
 Goal H-5: Ensure Equal Housing Opportunities
 Maintain and Improve the Existing Housing Stock
 Stays the same as Goal H-3 Maintain and Improve the Existing Housing Stock  Publicize Resources
 New goal
The proposed goals represent a reorganization and of the five goals in the existing 5th cycle housing element. The new goals help to convey the urgency of the housing need, and provide a greater ease to locate appropriate policies that target new housing construction in general, construct new affordable and equal opportunity housing units, improving the quality of the existing housing units, and importantly, publicizing resources. Policies and associated actions are reorganized under the appropriate new goal.

New Policy Language Considerations
New policy language is proposed for consideration. There was policy interest noted from staff related to:
1) aligning City regulations regarding subdivisions with the Parcel Map process in the Subdivision Map Act; 2) amending Flag Lot provisions to facilitate additional Flag Lot development 3) evaluating and updating the Zoning Code to address SB9 subdivision regulations; and 4) better outreach and publication of resources. The attached document includes example policy and action suggestions to initiate discussion.

HCD also introduced major new policy areas for the 6th cycle housing element primarily related to Affirmatively Furthering Fair Housing (AFFH). According to HCD’s AFFH Guidance Memo, AFFH is understood as meaningful actions, in addition to combating discrimination, that overcome patterns of segregation and foster inclusive communities free from barriers that restrict access to opportunities based on protected characteristics. This policy area will also complement the social justice policies in the Draft General Plan. Meaningful action areas include:
• Mobility Strategies
• New Housing Choices in Areas of Opportunity
• Place-Based Strategies
• Anti-Displacement Strategies
• Fair Housing Outreach and Enforcement.

Root Policy subconsultants are undertaking the AFFH analysis for the City and will suggest potential AFFH targeted policies when their analysis is completed in late June. Additionally, a Constraints Analysis is underway and will also play a role in future policy development.

OUTREACH
In tandem, outreach to both the broader community and targeted underserved populations is underway. Information gathered will be presented to the Council and will inform policy development, particularly in the realm of AFFH, at a future meeting.

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ATTACHMENTS:

Attachment A: Draft Chapter 2 Goals, Policies and Actions

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Table of Contents

2.0 GOALS, POLICIES, AND PROGRAMS...................................................................................1

2.1 Introduction ................................................................................................................................... 1

2.2 Program Overview and Quantified Objectives......................................................................... 1

2.3 Goals, Policies, and Programs..................................................................................................... 2 Appendices
Appendix A Title
Appendix B Title
Tables
Table 2-1 Quantified Objectives...................................................................................................1

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DRAFT Monte Sereno 2023-2031 Housing Element
1 2.0
Goals, Policies, and Programs

2.1 Introduction
The City is responsible for enabling the production of housing by reducing regulatory barriers, providing incentives, and supporting programs that create or preserve housing, especially for vulnerable populations. To enable the construction of quality housing, the City has identified four Goals:
 H-1 Facilitate Housing Construction
 H-2 Provide New Affordable and Equal Opportunity Housing  H-3 Maintain and Improve the Existing Housing Stock
 H-4 Publicize Resources

2.2 Program Overview and Quantified Objectives
Quantified objectives estimate the number of units likely to be constructed, rehabilitated, or conserved/preserved by income level during the planning period. The quantified objectives do not represent a ceiling on development, but rather set a target goal for the jurisdiction to achieve, based on needs, resources, and constraints.

Table 2-1 Quantified Objectives
Income Category New Construction Rehabilitation Conservation/Preservation Extremely low 29 1 0
Very Low 29 1 0
Low 58 2 0
Moderate 58 5 0
Above Moderate 29 20 0

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DRAFT Monte Sereno 2023-2031 Housing Element
2 2.3 Goals, Policies, and Programs
GOAL H-1: FACILITATE HOUSING CONSTRUCTION
Policies
Policy H-1.1 Efficient Development Processing
Remove constraints to the production and availability of housing, consistent with other General Plan policies.
(Formerly Policy H-1.1.2)
Policy H-1.2 Housing Design Principles
Require that residential development is well-integrated into the natural environment and physical landscape of the site and scenic qualities are preserved such as hills and ridgelines.
(Formerly Policy H-1.2)
Policy H-1.3 Adequate Housing Sites
Ensure that sites are provided as needed for a variety of housing types for all income levels to accommodate Monte Sereno’s RHNA for 2023-2031. (Formerly Policy H-2.4 modified)
Programs
A Improve Permit Processing Timelines
Risk and costs associated with the planning entitlement timelines act as a deterrent to housing developers. The City will monitor average processing times for ministerial and discretionary development permits, and use data on processing times and applications to track review times and trends in development. The City will identify revisions to the City’s procedures in order to expedite the development review process, such as removing multiple permit requirements, especially for special needs housing and affordable housing for very low, low and moderate-income households.

Responsibility: City Staff and Council
Time Frame: Review and update annually.

Funding Source: General Fund
(Formerly Program H-4.3 modified)

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DRAFT Monte Sereno 2023-2031 Housing Element
3 B Site Development Permits
Consistent application of City regulations and Design Standards facilitate new development and increase certainty for housing developers. The City will continue to require Site Development Permit approval for all new dwelling units and require project consistency with the applicable design standards. The following project types require ministerial review and approval in accordance with State Law:
 Accessory Dwelling Units and Junior Accessory Dwelling Units  Units created pursuant to provisions of SB 9.

Responsibility: City Staff and Council
Time Frame: Annually, ongoing through the 2023-2031 planning period Funding Source: None required
(Formerly Program H-1.1 modified)
C Facilitate Parcel Maps
Aligning the process for subdivisions of four lots or fewer reduces the administrative burden and incentivizes the establishment of new lots for development. The City will revise Municipal Code Section 13.01.050 by December 2025 to eliminate the Tentative Map requirement for subdivisions of two or more lots and replace it with a Parcel Map requirement for four lots or fewer consistent with the Subdivision Map Act.

Responsibility: City Staff and Council
Time Frame: 2024 –2025
Funding Source: General Fund
Quantified Objective: 6 Above Moderate-income units
(New)
D Flag Lots
Flag lots are a method to increase the number of lots in the City available for residential development. The City will evaluate Municipal Code Section 13.02.300 Flag Lot regulations and update the requirements to facilitate new flag lots including reviewing minimum lot sizes, setbacks and frontage requirements.

Responsibility: City Staff and Council

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DRAFT Monte Sereno 2023-2031 Housing Element
4 Time Frame to Amend Ordinance and Complete Necessary General Plan Amendments:
2025 – December 2026
Funding Source: General Fund
Quantified Objective: 3 Above Moderate
(New)
E Facilitate Subdivision
The City will evaluate existing SB 9 regulations to facilitate new construction and consider revisions to the SB 9 development standards.

Responsibility: City Staff and Council
Time Frame to Amend Ordinance and Complete Necessary General Plan Amendments:
2025 – December 2026
Funding Source: General Fund
Quantified Objective: 4 Above Moderate
(New)
GOAL H-2: PROVIDE NEW AFFORDABLE AND EQUAL

OPPORTUNITY HOUSING
Policy H-2.1 Fair Housing
Support special need population groups gaining access to housing and continue to enforce fair housing laws prohibiting arbitrary discrimination in the building, financing, selling or renting of housing on the basis of race, religion, family status, national origin, physical disability or other such factors. (Formerly Policy H-4.1)
Policy H-2.2 Housing Options for Seniors
Assist seniors as a growing proportion of the Monte Sereno Community in identifying and developing suitable living situations.
(Formerly Policy H-4.2)

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DRAFT Monte Sereno 2023-2031 Housing Element
5 Policy H-2.3 Accessory Dwelling Units
Encourage the construction of new Accessory Dwelling Units through incentives and increased public outreach to meet the need for lower income housing in the City.
(Formerly Policy H-2.1 modified)
Programs
F Development Incentives
An effective tool for increasing housing production are development incentives. The City will make specific outreach efforts with developers of housing affordable to lower income and special need households, including incentives such as density bonuses, fee waivers or other incentives. The City will also assist with identifying and/or applying for project funding from other sources including, but not limited to, CDBG and HOME funds, at the request of the developer.

Responsibility: City Staff and Council
Time Frame to Amend Ordinance and Complete Necessary General Plan Amendments:
2025 – 2026
Time Frame for Developer Assistance: Biannually.
(Formerly Program H-2.5)
G Accessory Dwelling Units
Accessory dwelling units are complete independent housing units that can be either detached or attached from an existing single-family residence. Based on their relatively small size, and because they do not require paying for land or major new infrastructure, accessory dwelling units ("ADUs") are considered affordable by design. ADUs can provide affordable housing options for family members, seniors, students, in-home health care providers, and other small household types. ADUs can also be useful to generate additional rental income for the homeowner. The City will continue to administer and improve the Accessory Dwelling Units (ADU) Program, with the following actions:
 Continue to survey affordability and use of ADUs.
 Establish incentives for ADU construction by creating a building permit fee waiver/reduction program.

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DRAFT Monte Sereno 2023-2031 Housing Element
6  Create an outreach program to each resident to inform them of the ADU code allowances and building permit fee waiver/reduction program.  Establish pre-approved ADU plans that meet all building, fire, and zoning codes.

This would assist property owners with the planning of a new ADU by lowering design costs and streamlining the architectural work. Monte Sereno will work with the Santa Clara County Housing Collaborative on the option of coordinating this program with other local jurisdictions.
 Publish and advertise the available incentives for ADUs through the City website and at City Hall front counter (ongoing).
 Provide the Accessory Dwelling Unit Handbook published by the State Department of Housing and Community Development (HCD) directly to Monte Sereno residents.

Responsibility: City Staff and Council
Time Frame: 2025-2026: Approve Program amendments to remove identified constraints to Accessory Dwelling Unit production.

Quantified Objective: 193 Total New Accessory Dwelling Units, as follows: 29 Extremely Low, 29 Very Low, 58 Low, 58 Moderate.
(Formerly Program H-2.1 modified)
H Special Needs Households
Households with Special Needs (including physically and developmentally disabled) oftentimes have difficulty securing affordable and appropriate housing. In order to encourage the development of housing that meets the needs of this population, the City will:
 Promote the use of Accessory Dwelling Units as an opportunity to provide affordable housing for special needs individuals, such as seniors (and their caregivers) and disabled family members,
 Continue to allow transitional housing, supportive housing and residential care facilities, including group homes for six or less persons, as a use by right in all R-1 neighborhoods,  Annually contact nonprofit housing sponsors, such as West Valley Community Services, to coordinate and implement a strategy for developing or making housing available for lower and moderate-income households, including special needs households, and Responsibility: City Staff and Council

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DRAFT Monte Sereno 2023-2031 Housing Element
7 Time Frame: Annually, ongoing through the 2023-2031 planning period (Formerly Program H-4.1)
I Seniors and Accessory Dwelling Units
The City will assist seniors to “age in place” and better utilize existing housing and residential lots by promoting Accessory Dwelling Units as viable housing option. Staff will develop an outreach plan specifically targeted at seniors to encourage the development of ADUs.

Responsibility: City Staff and Council
Time Frame: December 2025.
(Formerly Program H-4.2 modified)
J Shared Housing Options
The City will explore and implement if appropriate other options to provide additional affordable housing opportunities within its existing housing stock. For example, shared housing or renting rooms is an option for creating housing opportunities in a community such as Monte Sereno that has many large housing units capable of housing more people. Shared Housing programs, such as COVIA, match persons needing housing with homeowners and others who have space to rent. At a minimum, the City will contact shared housing agencies and publicize opportunities to share housing.

Responsibility: City Staff and Council
Time Frame: Annually, ongoing through the 2023-2031 planning period Quantified Objective: 5 Extremely Low and 5 Very Low-Income Persons (Formerly Program H-2.2)
K Countywide Cooperation
The City will work with nearby communities to explore countywide affordable housing needs and solutions. On an annual basis, the City Manager will provide a summary report of activities in cooperation with other jurisdictions/agencies to further increase the supply of affordable housing in the County of Santa Clara. Also, included in this report will be a description of the City’s efforts to meet its RHNA goals. This information will also be included in the City’s annual Housing Element update to HCD.

Responsibility: City Staff and Council

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DRAFT Monte Sereno 2023-2031 Housing Element
8 Time Frame: Annually, ongoing through the 2023-2031 planning period (Formerly Program H-2.4)
L Reasonable Accommodation
The City will continue to implement its “Reasonable Accommodations” procedures as contained in the Municipal Code.

Responsibility: City Staff and Council
Time Frame: Annually, ongoing through the 2023-2031 planning period (Formerly Program H-5.1)
M Fair Housing
The City will work with other organizations to promptly address complaint of discrimination in the sale, rent and development of housing in Monte Sereno.

Responsibility: City Staff and Council
Time Frame: Annually, ongoing through the 2023-2031 planning period (Formerly Program H-5.2)
GOAL H-3: MAINTAIN AND IMPROVE THE EXISTING HOUSING STOCK.

Policies
Policy H-3.1 Property and Housing Conditions
Support the efforts of property owners to maintain and improve homes in Monte Sereno.
(Formerly Policy H-3.1)
Policy H-3.2 Infrastructure
Ensure adequate investments in public services and facilities to maintain a highquality living environment in older residential neighborhoods. (Formerly Policy H-3.2)
Policy H-3.3 Energy Conservation
Encourage energy conserving practices in the maintenance of existing dwellings and in new residential development.

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DRAFT Monte Sereno 2023-2031 Housing Element
9 (Formerly Policy H-3.3)
Program
N Housing Maintenance
Maintenance and upkeep of housing is critical to ensure health and safety, prevent major costly damages, and ensure a high-quality housing stock. The City will continue to pursue code enforcement on homes that are not maintained in compliance with City codes.

Responsibility: City Staff and Council
Time Frame: Annually, ongoing through the 2023-2031 planning period (Formerly Program H-3.1)
O Infrastructure Capital Improvements
City infrastructure, including roads, are critical for housing. The City will review and revise on a biannual basis the Capital Improvement Program (CIP) to identify public infrastructure priorities that will maintain the community's residential neighborhoods.

Responsibility: City Staff and Council
Time Frame: Biannually, ongoing through the 2023-2031 timeframe (Formerly Program H-3.2)
P Energy Conservation
Conserving energy helps preserve the integrity of the electrical grid and reduces emissions that contribute to climate change. The City will encourage energy conservation practices for new and existing residential dwelling units by enforcing State and local regulations and encouraging incentives for energy conservation “best practices.” Suggested actions include:
 Continue to offer streamlining and reduced permitting fees for solar panel installations,
 Continue to implement the CALGreen building code requirements,  Continue to evaluate “Reach Codes” for all-electric building requirements,  Provide information regarding rebate programs and energy audits available through PG&E, and
 Provide resource materials regarding green building and conservation programs.

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DRAFT Monte Sereno 2023-2031 Housing Element
10 Responsibility: City Staff and Council
Time Frame: Annually, ongoing through the 2023-2031 planning period (Formerly Program H-3.3)
GOAL H-4: PUBLICIZE RESOURCES
Policies
Policy H-4.1 Promote and Enforce Fair Housing
Continue to promote and enforce fair housing laws prohibiting arbitrary discrimination in the building, financing, selling or renting of housing on the basis of race, religion, family status, national origin, physical disability or other such factors.
(New)
Programs
Q Communicating to the public about fair housing laws and available programs is essential to raise awareness and to connect people with resources. The City will provide written information on fair housing laws and resources at the Planning Department counter as well as on the City’s website. Further, the City will promote the use of Project Sentinel, a HUD approved housing counseling agency in Santa Clara County as a resource for fair housing information and advisory services. The City will work with other organizations to promptly address complaint of discrimination in the sale, rent and development of housing in Monte Sereno.

Responsibility: City Staff and Council
Time Frame: Annually, ongoing through the 2023-2031 planning period (Formerly Program H)

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From: Steven Walker
To: Diana Perkins
Cc: [email protected]; Patricia Lively; David W. Lively; Richard Brossart Subject: Objection to Vineland Avenue Rezoning
Date: Tuesday, June 21, 2022 2:00:59 PM
Diana,
I also strongly join in the council’s decision to not consider the possibility of rezoning a portion of the properties on Vineland Avenue from the current one-acre lot size (R-1- 44 zoning district) to one-half-acre lot sizes (R-1-20 zoning district), and work towards meeting the requirements for new housing solely through the construction of Accessory Dwelling Units.

Also, please place me on the service list for further notices.

Environmental Impact to Wildlife
Rezoning a portion of the properties on Vineland Avenue would destroy the neighborhood and the environment. My family has lived in Monte Sereno since 1970, and there is a reason why people move here – the closeness to nature, open spaces, and peacefulness. The word “Monte Sereno” in fact is Spanish for Serene Mountain, and it was established in 1900s as a rural agricultural community. Some of the old apricot trees can still be found on properties, along with other historic structures that the City has taken steps to preserve.

It is simply not the Monte Sereno way to value housing over preserving the environment. What are we to think years from now if densely packed housing were allowed on a two-way, hilly winding road? Why are we also not thinking about the environment? For those who may not know, Vineland is also a known habitat for many species who roam through our neighborhood (mountain lions, coyotes, great horn owls, birds, rabbits, bobcats, etc.), as there are creeks that run through the neighborhood, and the wildlife follows the creeks. This is a compelling and standalone reason not to rezone, and an easy win in court.

Is the solution to push out the wildlife so we can push in more people? Preserving the environment is of utmost importance and takes precedent over highdensity housing. The environmental impact has somehow been lost in all of this. Yet the wildlife called Monte Sereno home long before any of us came here.

Environmentalists cite high-density housing in rural areas as the number one cause contributor to the destruction of the environment and loss of wildlife Woodside froze SB9 projecting citing an exemption for mountain lion habitats.

Monte Sereno should follow Woodside’s lead and find another solution that satisfies all needs. See https://www.almanacnews.com/news/2022/02/02/woodside-freezessb-9-projects-with-town-citing-excemption-for-mountain-lion-habitats.

Conclusion

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The City of Monte Sereno must consider and balance the needs of the environment and find a less intrusive solution than building high-density housing. Vineland has historically been a quiet and charming road, and we plan to keep it that way.

I also only recently found out about this issue and am wondering why the City did not give notice to all impacted residents. Why are we left to hear about this through word of mouth?
Best regards,
Steven
Steven L. Walker
Law Offices of Steven L. Walker
A Professional Law Corporation
Silicon Valley Center
2550 North First Street, Suite 302
San Jose, CA 95131
Direct: 408.295.5800 | Fax: 408.295.5855 | Cell: 408.828.9989 [email protected] | www.walk-law.com
From: David W. Lively <[email protected]>
Sent: Tuesday, June 21, 2022 12:58 PM
To: [email protected]
Cc: [email protected]; Steven Walker <[email protected]>; Patricia Lively <[email protected]>
Subject: Vineland Avenue rezoning
Good afternoon Diana,
I am providing a statement of position which I request be read into the record as part of tonight's meeting.

I strongly join in that the council’s decision to not consider the possibility of rezoning a portion of the properties on Vineland Avenue from the current one acre lot size (R-1-44 zoning district) to one half acre lot sizes (R-1-20 zoning district), and work towards meeting the requirements for new housing solely through the construction of Accessory Dwelling Units. Further, to the extent that SB 9 conversions are considered, that the resulting subdivision be limited to two lots that are created from the original parcel.

Also, please place me on the service list for further notices.

David W. Lively
Shareholder

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Hopkins & Carley | A Law Corporation
San Jose | Palo Alto
70 South First Street San Jose, California 95113
Main: 408.286.9800 | Fax: 408.998.4790
[email protected]
hopkinscarley.com | LinkedIn | H&C on Twitter | Blog
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Any tax advice contained in this correspondence (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding tax-related penalties under federal, state or local tax law or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein. This email and any attachments thereto may contain private, confidential, and privileged material for the sole use of the intended recipient. Any review, copying, or distribution of this email (or any attachments thereto) by others is strictly prohibited.

If you are not the intended recipient, please contact the sender immediately and permanently delete the original and any copies of this email and any attachments thereto. For more information about Hopkins & Carley, visit us at http://www.hopkinscarley.com/.

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From: David W. Lively
To: Diana Perkins
Cc: [email protected]; [email protected]; Patricia Lively Subject: Vineland Avenue rezoning
Date: Tuesday, June 21, 2022 12:58:07 PM
Good afternoon Diana,
I am providing a statement of position which I request be read into the record as part of tonight's meeting.

Also, please place me on the service list for further notices.

David W. Lively
Shareholder
Hopkins & Carley | A Law Corporation
San Jose | Palo Alto
70 South First Street San Jose, California 95113
Main: 408.286.9800 | Fax: 408.998.4790
[email protected]
hopkinscarley.com | LinkedIn | H&C on Twitter | Blog
___________________________________________________________________________________________ Any tax advice contained in this correspondence (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding tax-related penalties under federal, state or local tax law or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein.

This email and any attachments thereto may contain private, confidential, and privileged material for the sole use of the intended recipient. Any review, copying, or distribution of this email (or any attachments thereto) by others is strictly prohibited.

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From: Marie Peterson
To: Diana Perkins
Cc: Claudio Mariani
Subject: 193 Additional ADU meeting 6/21/22
Date: Monday, June 20, 2022 4:59:01 PM
Hello Diana,
Thank you so much for taking a meeting with my neighbor and me today; explaining, how the City of Monte Sereno is hoping to satisfy the State of California with 193 ADU’s rather then re zone and create higher density housing per parcel.

We really appreciate you taking our concerns of any re zoning of our neighborhood property along Vineland Ave and Bicknell Road seriously, as we are too! I have sent out emails to 9 different families in my neighborhood explaining your desire to satisfy the State by the additional 193 ADU’s over a 8 year period until 2031 as well as, your apparent desire to work with us in the reasonable approval in the permitting timing and lessen the cost of city permits.

I can’t thank you enough for helping us all solve this issue without a re zoning of 1 acre parcels to a 1/2 or less then to allow for the increase in Low Income Housing. I am very grateful for Monte Sereno to keep us posted and work with us to get this objective of adding ADU’s to existing parcels even if we have used our maximum square foot coverage; rather then, sub divide and lower our property values as well as creating an additional increase in traffic with the density increase.

Please share my concerns with your committee tomorrow evening; I am extremely grateful for your help in this matter.

Kindest regards,
Marie and Claudio Mariani
17624 Vineland Court
Monte Sereno.

Marie Christine Peterson | Owner & Principal
Chelsea Court Designs
O 408 399 7720
C 408 221 7740
F 408 399 7723
San Francisco by Appt. 415 431 4965
100 Los Gatos-Saratoga Rd, Suite D
Los Gatos, CA 95032
INSTAGRAM | HOUZZ | FACEBOOK

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Monte Sereno City CouncilJune 21, 2022

Monte Sereno City Council
June 21, 2022