Monte Sereno City Council
June 6, 2023

AGENDA
City of Monte Sereno
Tuesday, June 6, 2023
City Council
7:00 PM
Monte Sereno City Council Chambers -
18041 Saratoga - Los Gatos Road,
Monte Sereno, CA 95030

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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
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 2, 2023 Special and Regular City Council Meeting and May 30, 2023 Special City Council Meeting Staff recommends approval of the Minutes of the May 2, 2023 Special and Regular City Council Meeting and May 30, 2023 Special City Council Meeting.

Staff Report - SR-23-105 - Pdf
6 - 15

2. Approve the Minutes of the June 1, 2023 Special City Council Meeting Staff recommends approval of the Minutes of the June 1, 2023 Special City Council Meeting.

Staff Report - SR-23-128 - Pdf
16 - 18

3. Accept the Treasurer's Report for the Period Ending February 28, 2023 Staff recommends the City Council accept the Treasurer's Report for the period ending February 28, 2023.

Staff Report - SR-23-120 - Pdf
19 - 37

4. Approve Warrant List Dated June 6, 2023 in the Amount $59,685.11 Staff recommends the City Council approve the Warrant List.

Staff Report - SR-23-119 - Pdf
38 - 39

5. Approve and ratify the agreement with Logan & Powell, LLP for City Attorney services and confirm appointment of Kirsten Powell as City Attorney for Monte Sereno.

Staff recommends approval and ratifying of the agreement with Logan & Powell, LLP for City Attorney services and confirm appointment of Kirsten Powell as City Attorney for Monte Sereno.

Logan Powell Monte Sereno Agreement
40 - 43

PUBLIC HEARINGS

UNFINISHED BUSINESS

1. Housing Element Update: Discuss and Provide Direction on Second Review Comments Received from the California Department of Housing and Community Development (HCD)
Staff recommends that the City Council discuss the second review comments received from the California Department of Housing and Community Development (HCD)and provide direction to staff on addressing the comments.

Staff Report - SR-23-121 - Pdf
Public Comment as of 6.6.23
44 - 94

2. Second Study Session - Fiscal Year 2023-24 Proposed Budget Staff recommends that the Council conduct a second Study Session to review and discuss the proposed FY 2023-24 Budget.

Staff Report - SR-23-122 - Pdf
95 - 120

NEW BUSINESS

1. Adopt a Resolution to Adopt a List of Projects for Fiscal year 2023/24 Funded by SB 1: The Road Repair and Accountability Act of 2017 Staff recommends the City Council adopt a resolution to adopt the list of City projects
to be funded in fiscal year (FY) 2023/24 by SB 1: the Road Repair and Accountability Act of 2017.

Staff Report - SR-23-117 - Pdf
121 - 124

2. Acceptance of Deeds or Grants of Easements or Interests in Real Property
Staff recommends that the City Council adopts a resolution authorizing the City Engineer to accept deeds or grants conveying any interest in or easements upon real property on behalf of the City.

Staff Report - SR-23-118 - Pdf
125 - 131

3. S-Curb Adoc Committee Report on activities to Date
Discussion only, no action required.

4. Completion of Labor Negotiations and Adoption of Memorandum of Understanding and Resolution
Staff recommends that the City Council approve the Memorandum of Understanding with the Monte Sereno Association of City Employees and Resolution.

Staff Report - SR-23-127 - Pdf
132 - 166

5. Consider Adoption of a Resolution Declaring Hazardous Vegetation (Brush) a Public Nuisance
Staff recommends that the City Council adopt a resolution declaring hazardous vegetation (brush) a public nuisance.

Staff Report - SR-23-108 - Pdf
167 - 171

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.

Last Meeting Next Meeting
Craig
Monte Sereno Youth Commission 05/16/23 08/08/23
Santa Clara County Library JPA 04/27/23
Ellahie
Cities Association – Board of Directors 05/11/23
Cities Association – Legislative Action Committee 05/11/23 Joint Venture Silicon Valley Network

Turner
West Valley Sanitation District 04/12/23 05/10/23
VTA State Route 85 Policy Advisory Board
Comprehensive County Expressway Planning Study

Wolsheimer
Silicon Valley Animal Control Authority 05/24/23
Santa Clara Valley Water District Commission 04/12/23 08/23/23 Mekechuk
Valley Transportation Authority Policy Advisory Committee 05/11/23 06/08/23 West Valley Clean Water Board 05/04/23 09/07/23
West Valley SolidWaste/RecyclingJPA 05/04/23 09/07/23
Silicon Valley CleanEnergyAuthority 05/10/23 06/14/23
Association of BayAreaGovernments 03/16/23 06/16/23
League of California Cities Peninsula Division
West Valley Mayors & Managers 05/24/23 6/28/23
Cities Selection Committee 05/12/23 TBD in 2024
Mayor of Santa Clara County June 2023

1. Mayor Mekechuk Council Report 172 - 174

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

CITY MANAGER’S REPORT

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

ADJOURN
* All items on the agenda are subject to action/or change by the City Council In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the City Clerk (408) 354-7635. If requested of the City Clerk, agendas and documents in the agenda packet can be made available in appropriate alternative formats to persons with a disability.

Notification 48 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting. [28CFR 35.102-35.104 ADA Title II]

STAFF REPORT
Meeting: City Council - Jun 06 2023
Agenda Heading: CONSENT CALENDAR
Staff Contact: Gloisy Gonzalez-Langarica, City Clerk
Department: City Clerk
Title: Approve the Minutes of the May 2, 2023 Special and Regular City Council Meeting and May 30, 2023 Special City Council Meeting
Recommendation(s):

Staff recommends approval of the Minutes of the May 2, 2023 Special and Regular City Council Meeting and May 30, 2023 Special 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:
05-02-23 Special Meeting Minutes DRAFT
05-02-23 Regular Meeting Minutes DRAFT
05-30-23 Special Meeting Minutes DRAFT

MONTE SERENO CITY COUNCIL

MEETING MINUTES

SPECIAL MEETING
5:30 p.m.

May 2, 2023

MEETING CALLED TO ORDER
At 5:34 p.m., Mayor Mekechuk called the meeting to order.

ROLL CALL
Present – Chambers: Councilmember Craig, Councilmember Ellahie, Councilmember Turner and Mayor Mekechuk

Absent: Vice Mayor Wolsheimer
Staff: Assistant City Attorney Bazzano, City Planner Perkins, City Manager Leonardis and City Clerk Gonzalez-Langarica

PUBLIC COMMUNICATION REGARDING CLOSED SESSION ITEMS
None.

ADJOURN TO CLOSED SESSION
Mayor Mekechuk opened the item for Public Comment.

With no one wishing to speak, Public Comment was closed.

City Council adjourned to Closed Session at approximately 5:35 p.m.

CLOSED SESSION

1. Conference with Labor Negotiators pursuant to Government Code 54957.6 Agency designated representatives: Steve Leonardis, City Manager and Lisa Charbonneau with Liebert Cassidy Whitmore (LCW)
Employee organization: City of Monte Sereno Association of City Employees

2. Conference with Legal Counsel-Anticipated Litigation pursuant to Government Code 54956.9(d)(2)(e)(1): (One potential case)

RECONVENE TO OPEN SESSION
City Council reconvened to Open Session at approximately 7:15 p.m. with Mayor Mekechuk,

Councilmember Craig, Councilmember Ellahie, and Councilmember Turner present. (Absent: Vice Mayor Wolsheimer)

REPORT ON ACTION TAKEN DURING CLOSED SESSION
Mayor Mekechuk stated there was no reportable action for Item #1.

Mayor Mekechuk stated the Council would continue to meet at a recess to closed session after ending the Regular City Council to conclude with Item #2.

Concluding the Regular City Council agenda, Mayor Mekechuk resumed the Special Meeting at 8:43 p.m.

RECESS TO CLOSED SESSION

2. Conference with Legal Counsel-Anticipated Litigation pursuant to Government Code 54956.9(d)(2)(e)(1): (One potential case)

RECONVENE TO OPEN SESSION
City Council reconvened to Open Session at approximately 9:12 p.m. with Mayor Mekechuk, Councilmember Craig, Councilmember Ellahie and Councilmember Turner present. (Absent: Vice Mayor Wolsheimer)

REPORT ON ACTION TAKEN DURING CLOSED SESSION
Mayor Mekechuk stated there was no reportable action for Item #2.

ADJOURN
The meeting of the Special City Council Meeting adjourned at approximately 9:14 p.m.

Bryan Mekechuk, Mayor
ATTEST:

Gloisy Gonzalez-Langarica, City Clerk

MONTE SERENO CITY COUNCIL MEETING MINUTES

REGULAR MEETING
7:00 p.m.

May 2, 2023

MEETING CALLED TO ORDER
At approximately 7:19 p.m., Mayor Mekechuk called the meeting to order.

PLEDGE OF ALLEGIANCE
Youth Commissioner Zeidler conducted the Pledge of Allegiance.

ROLL CALL
Present – Chambers: Councilmember Craig, Councilmember Ellahie, Councilmember Turner and Mayor Mekechuk

Absent: Vice Mayor Wolsheimer
Staff: Assistant City Attorney Bazzano, City Planner Perkins, City Manager Leonardis and City Clerk Gonzalez-Langarica

ORDERS OF THE DAY
None.

PRESENTATIONS

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

2. Presentation on the Senior Services Roadmap for Los Gatos from Tom Picraux and Nancy Pearson
Tom Picraux and Nancy Pearson provided the Council with a presentation on the Los Gatos Senior Services Roadmap.

ORAL COMMUNICATIONS
Former Mayor Jack Lucas expressed his gratitude for the consideration of the grant for the Community Concert Program. He shared he will not be available to attend next meeting where the City Council will be considering the applications and therefor wanted to speak on it this evening.

Lastly, he extended an invitation to all for any of next year’s performances.

WRITTEN COMMUNICATIONS

None.

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

1. Approve the Minutes of the April 1, 2023 Special City Council Meeting, April 6, 2023 Joint Special Meeting of the City Council and Community Center Committee and April 18, 2023 Regular City Council Meeting

2. Approve Warrant List Dated May 2, 2023 in the Amount $27,560.48

3. Consideration to Approve and Authorize the City Manager to Execute Amendment #2 to the Professional Services Agreement with EMC Planning Group for the Housing Element Update Increasing the Contract Amount by $85,960 to a Total Not to Exceed Amount of $304,270.

4. Waive Second Reading and Adopt Ordinance No. NS-235, an Ordinance of the City Council of the City of Monte Sereno Amending Section 10.06.130 (Height of Fences), Section 10.06.140 (Accessory Dwelling Units; Junior Accessory Dwelling Units; Standards And Requirements), Section 10.08.050 (Permit Process), and removing Section 10.08.060 (Appeal To Council), and Section 10.14 (Building Site Approval).

Councilmember Ellahie requested to pull Item #3 from the Consent Calendar.

Mayor Mekechuk opened the item for Public Comment. With no one wishing to speak, Mayor Mekechuk closed Public Comment.

MOTION: Motion by Councilmember Craig to approve the Consent Calendar items #1, #2 and #4. Seconded by Councilmember Turner.

VOTE: Motion passed. (4-0-1 Absent: Wolsheimer)

3. Consideration to Approve and Authorize the City Manager to Execute Amendment #2 to the Professional Services Agreement with EMC Planning Group for the Housing Element Update Increasing the Contract Amount by $85,960 to a Total Not to Exceed Amount of $304,270.

Councilmember Ellahie expressed being unhappy with the services provided by EMC Planning Group.

Mayor Mekechuk opened the item for Public Comment. With no one wishing to speak, Mayor Mekechuk closed Public Comment.

MOTION: Motion by Councilmember Craig to Approve and Authorize the City Manager to Execute Amendment #2 to the Professional Services Agreement with EMC Planning Group for the Housing Element Update Increasing the Contract Amount by $85,960 to a Total Not to Exceed Amount of $304,270. Seconded by Councilmember Turner.

VOTE: Motion passed. (4-0-1 Absent: Wolsheimer)

PUBLIC HEARINGS
None.

UNFINISHED BUSINESS

1. Waive Second Reading and Adopt Ordinance No. NS-234 an Ordinance of the City Council of the City of Monte Sereno Amending Section 10.01.020 (Definitions – Specific Terms)

City Planner Perkins provided a staff report and answered questions from the Council.

Mayor Mekechuk opened the item for Public Comment.

Public Comment
▪ Terry McCarthy asked that swimming pools remain in the definition of structural coverage
With no one wishing to speak, Mayor Mekechuk closed Public Comment.

MOTION: Motion by Councilmember Craig Waive Second Reading and Adopt Ordinance No. NS-234 an Ordinance of the City Council of the City of Monte Sereno Amending Section 10.01.020 (Definitions – Specific Terms).

Seconded by Councilmember Turner.

VOTE: Motion passed. (3-1-1 Noes: Mekechuk, Absent: Wolsheimer)

NEW BUSINESS
None.

COMMITTEE/COMMISSION REPORTS
Councilmember Craig reported on the Youth Commission’s participation at the recent Earth Day event held by the Town of Los Gatos. He shared the Youth Commissioners who attended worked with West Valley Clean Water Authority to interview folks attending this event, asking the public questions for a short video they are putting together. He also shared that at the last Youth Commission meeting, the Commissioners decided they will be hosting an Ice Cream Social on May 16, 2023 before the City Council Meeting.

Councilmember Ellahie stated nothing to report.

Councilmember Turner shared that she participated in Supervisor Simitian’s event regarding Lehigh Southwest Cement Plant and Permanente Quarry. She shared Lehigh is considering turning the quarry into a landfill, hauling material from the surrounding area and using the quarry as a landfill.

State Law requires that quarry land be reclaimed but no reclamation efforts are underway.

Supervisor Simitian is looking for ways to prevent Lehigh’s continued use of this property for industrial applications. She will bring more information to Council in the near future on the negative impact of the quarry.

Mayor Mekechuk provided City Clerk Gonzalez-Langarica a hard copy of his Committee and Commission Reports, but briefly highlighted the following items:

Mayor Mekechuk shared that Supervisor Simitian attended the West Valley Mayors and Managers meeting last week, where Supervisor Simitian did a comprehensive report on what was just shared by Councilmember Turner.

Mayor Mekechuk made a friendly reminder to everyone that they are invited to attend the Scholarship Presentation this Thursday. He also shared Monte Sereno will be hosting the West Valley Clean Water Authority and West Valley Solid Waste/ Recycling JPA this Thursday. Lastly Mayor Mekechuk shared the City Selection Committee is meeting next week.

COUNCILMEMBER COMMENTS
Mayor Mekechuk shared photos of a truck turned on its side on the S-Curve on Daves Avenue. The

collision occurred after 3:00 pm on Friday, April 28, 2023. Reducing vehicle speed on the S-Curve should be brought to Council in the near future.

Councilmember Craig would like the City to look into awarding the Youth Commissioners when they conduct the Pledge of Allegiance, as a form of a thank you. He also stated noticing the podium needs repairing.

CITY MANAGER’S REPORT
City Manager Leonardis shared he will be meeting with Vice Mayor Wolsheimer this Friday to look at the S-Curve and look into a short-term solution before a longer-term solution can be found.

FUTURE AGENDA ITEMS
Councilmember Ellahie would like City Manger to place the topic of swimming pools on a future agenda when Council can discuss what limitations can be placed on pools, if any.

Mayor Mekechuk expressed he would like to look into the City’s Investment Policy and bring it to a future meeting. He also mentioned, would like the S-Curve topic brought to a future meeting.

Concluding the Regular City Council agenda, Mayor Mekechuk resumed the Special Meeting at 8:43 p.m.

RECESS TO CLOSED SESSION

2. Conference with Legal Counsel-Anticipated Litigation pursuant to Government Code 54956.9(d)(2)(e)(1): (One potential case)

RECONVENE TO OPEN SESSION
City Council reconvened to Open Session at approximately 9:12 p.m. with Mayor Mekechuk, Councilmember Craig, Councilmember Ellahie and Councilmember Turner present. (Absent: Vice Mayor Wolsheimer)

REPORT ON ACTION TAKEN DURING CLOSED SESSION
Mayor Mekechuk stated there was no reportable action for Item #2.

ADJOURN CLOSED SESSION
The meeting of the Special City Council Meeting adjourned at approximately 9:14 p.m., while also reassuming to the Regular City Council Meeting.

RECESS TO CLOSED SESSION
Mayor Mekechuk opened the item for Public Comment.

With no one wishing to speak, Public Comment was closed.

The City Council adjourned to Closed Session at approximately 9:15 p.m.

Councilmember Turner left the meeting at 9:15 p.m. before the Council went into closed session.

CLOSED SESSION

1. PUBLIC EMPLOYMENT
Government Code Section 54957
Title: City Attorney

RECONVENE TO OPEN SESSION
City Council reconvened to Open Session at approximately 9:39 p.m. with Mayor Mekechuk, Councilmember Craig and Councilmember Ellahie present. (Absent: Councilmember Turner, Vice Mayor Wolsheimer)

REPORT ON ACTION TAKEN DURING CLOSED SESSION
Mayor Mekechuk stated there was no reportable action for Item #1.

ADJOURN
The meeting adjourned at approximately 9:41 p.m.

Bryan Mekechuk, Mayor
ATTEST:
____________________________________
Gloisy Gonzalez-Langarica, City Clerk

MONTE SERENO CITY COUNCIL

MEETING MINUTES

SPECIAL MEETING
7:00 p.m.

May 30, 2023

MEETING CALLED TO ORDER
At 7:10 p.m., Mayor Mekechuk called the meeting to order.

ROLL CALL
Present – Chambers: Councilmember Craig, Councilmember Ellahie, Councilmember Turner, Vice Mayor Wolsheimer and Mayor Mekechuk

Absent: None
Staff: City Clerk Gonzalez-Langarica

PUBLIC COMMUNICATION REGARDING CLOSED SESSION ITEMS
None.

Mayor Mekechuk opened the item for Public Comment.

With no one wishing to speak, Mayor Mekechuk closed Public Comment.

City Council adjourned to Closed Session at approximately 7:13 p.m.

CLOSED SESSION

1. Conference with Labor Negotiators pursuant to Government Code 54957.6 Agency designated representatives: Steve Leonardis, City Manager and Lisa Charbonneau with Liebert Cassidy Whitmore (LCW)
Employee organization: City of Monte Sereno Association of City Employees

2. PUBLIC EMPLOYMENT
Government Code Section 54957
Title: City Attorney

RECONVENE TO OPEN SESSION
City Council reconvened to Open Session at approximately 8:14 p.m. with Mayor Mekechuk, Councilmember Craig, Councilmember Ellahie, Councilmember Turner and Vice Mayor Wolsheimer present.

REPORT ON ACTION TAKEN DURING CLOSED SESSION
For Item #1 Mayor Mekechuk stated there was no reportable action.

For Item #2 Mayor Mekechuk reported that City Attorney Burke, Williams & Sorensen, LLP had resigned. The City Council has authorized Mayor Mekechuk to negotiate an agreement with a new City Attorney.

ADJOURN
The meeting of the Special City Council Meeting adjourned at approximately 8:15 p.m.

Bryan Mekechuk, Mayor
ATTEST:

Gloisy Gonzalez-Langarica, City Clerk

STAFF REPORT
Meeting: City Council - Jun 06 2023
Agenda Heading: CONSENT CALENDAR
Staff Contact: Gloisy Gonzalez-Langarica, City Clerk
Department: City Clerk
Title: Approve the Minutes of the June 1, 2023 Special City Council Meeting Recommendation(s):

Staff recommends approval of the Minutes of the June 1, 2023 Special 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:
06-01-23 Special Meeting Minutes DRAFT

MONTE SERENO CITY COUNCIL

MEETING MINUTES

SPECIAL MEETING
5:00 p.m.

June 1, 2023

MEETING CALLED TO ORDER
At 5:05 p.m., Mayor Mekechuk called the meeting to order.

ROLL CALL
Present – Chambers: Councilmember Ellahie, Vice Mayor Wolsheimer and Mayor Mekechuk

Absent: Councilmember Craig and Councilmember Turner
Staff: City Clerk Gonzalez-Langarica
Mayor Mekechuk shared Councilmember Turner is not present as she does not feel well and wished her a speedy recovery. Mayor Mekechuk also shared Councilmember Craig is traveling today and wished him safe travels.

PUBLIC COMMUNICATION REGARDING CLOSED SESSION ITEMS
Mayor Mekechuk opened the item for Public Comment.

With no one wishing to speak, Mayor Mekechuk closed Public Comment.

City Council adjourned to Closed Session at approximately 5:08 p.m.

CLOSED SESSION

1. Pursuant To Government Code Section 54954.5 the City Council will meet in Closed Session to discuss Public Employee Appointment/Public Employment. Title: City Attorney

RECONVENE TO OPEN SESSION
City Council reconvened to Open Session at approximately 5:24 p.m. with Mayor Mekechuk, Councilmember Ellahie and Vice Mayor Wolsheimer present. (Absent: Councilmember Craig and Councilmember Turner)

REPORT ON ACTION TAKEN DURING CLOSED SESSION
Mayor Mekechuk reported the City Council recommended the agreement with Logan & Powell, LLP be placed on the Consent Calendar for consideration and approval at the June 6, 2023 City

Council meeting.

ADJOURN
The meeting of the Special City Council Meeting adjourned at approximately 5:25 p.m.

Bryan Mekechuk, Mayor
ATTEST:

Gloisy Gonzalez-Langarica, City Clerk

STAFF REPORT
Meeting: City Council - Jun 06 2023
Agenda Heading: CONSENT CALENDAR
Staff Contact: Reynold Samoranos,
Department: Finance Manager
Title: Accept the Treasurer's Report for the Period Ending February 28, 2023 Recommendation(s):

Staff recommends the City Council accept the Treasurer's Report for the period ending February 28, 2023.

Background Information:

In compliance with Government Code, Section 41004 California Government Code section 41004 states: "Regularly, at lease once each month, the City Treasurer shall submit to the city clerk a written report and accounting of all receipts, disbursements, and fund balances.

City staff has provided the new compliant monthly Treasurer's Report in four parts:

Compliant Treasurer's Report
• Part 1 - Receipts and Disbursement Report
• Part 2 - Significant Variances Actuals versus Budget Narrative • Part 3 - Demand Account Report
• Part 4 - LAIF Investment Fund and Wells Fargo Custodian Report Fiscal Impact:

There are no unbudgeted fiscal impacts with this agenda item.

Public Noticing:

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

Attachments:

Part 1 - RECEIPTS AND DISBURSEMENT MONTHLY REPORT 2023 02 28 (Final 05-07- 2023)
Part 2 - SIGNIFICANT VARIANCES TO BUDGET NARRATIVE 2023 02 28 (Final 05-07-2023) Part 3 - DEMAND ACCOUNT REPORT 2023 02 28 (Final 05-07-2023)

Part 4 - LAIF Investment Report 2023 02 28 (Final 05-07-2023)

THE CITY OF MONTE SERENO

RECEIPTS AND DISBURSEMENT REPORT

FOR THE MONTH OF
February 2023

66.7% OF FY 2022-23 Adopted Budget
Treasurer's Report
Part 1 of 4

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 2022-23
Adopted Budget

CURRENT MONTH
February 2023
FY 2022-23 YTD
ACTUAL
FY 2022-23 YTD
vs. FY 2022-23 Full
Year Adopted
Budget -
Higher/(Lower)
% OF YTD
ACTUAL VS.

Full Year
Adopted
Budget
2,326,700 7,523 1,531,296 (795,404) 65.8%
914,100 109,670 549,883 (364,217) 60.2%
310,000 57,225 189,685 (120,315) 61.2%
236,485 8,351 140,012 (96,473) 59.2%
280,700 38,091 154,336 (126,364) 55.0%
191,000 6,389 106,256 (84,744) 55.6%
11,200 0 51,715 40,515 461.7%
145,000 7,207 64,133 (80,867) 44.2%
12,000 139 5,307 (6,693) 44.2%
772,100 0 409,905 (362,195) 53.1%
3,000 532 1,248 (1,752) 41.6%
5,202,285 235,128 3,203,776 (1,998,509) 61.6%
Page: 1 of 12 File: Part 1 - RECEIPTS AND DISBURSEMENT MONTHLY REPORT 2023 02 28 (Final 05-07-2023) Page 21 of 174

THE CITY OF MONTE SERENO

RECEIPTS AND DISBURSEMENT REPORT

FOR THE MONTH OF
February 2023

66.7% OF FY 2022-23 Adopted Budget
Treasurer's Report
Part 1 of 4

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 - Total $89,000

SALES TAX
01-296 Sales and UseTax

TOTAL SALES TAX
01-298 Coronavirus Relief Fund (State)

TOTAL FEDERAL RELIEF FUNDS
Notes to Relief Funds (Federal & Other) $772k
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
Federal Relief Funds ($409.5k) -
Awarded Coronavirus State and local
Fiscal Recovery Funds.

Unidentified energy, Parks, or
Rescue Funding ($164k) - To be
determined
FY 2022-23
Adopted Budget

CURRENT MONTH
February 2023
FY 2022-23 YTD
ACTUAL
FY 2022-23 YTD
vs. FY 2022-23 Full
Year Adopted
Budget -
Higher/(Lower)
% OF YTD
ACTUAL VS.

Full Year
Adopted
Budget
2,108,700 0 1,277,498 (831,202) 60.6%
89,000 0 90,605 1,605 101.8%
5,000 0 2,690 (2,310) 53.8%
35,000 7,523 47,158 12,158 134.7%
89,000 0 111,842 22,842 125.7%
0 0 1,328 1,328 N/A
0 0 119 119 N/A
0 0 2 2 N/A
0 0 53 53 N/A
0 0 0 0 N/A
2,326,700 7,523 1,531,296 (795,404) 65.8%
12,000 139 5,307 (6,693) 44.2%
12,000 139 5,307 (6,693) 44.2%
772,100 0 409,905 (362,195) 53.1%
772,100 0 409,905 (362,195) 53.1%
Page: 2 of 12 File: Part 1 - RECEIPTS AND DISBURSEMENT MONTHLY REPORT 2023 02 28 (Final 05-07-2023) Page 22 of 174

THE CITY OF MONTE SERENO

RECEIPTS AND DISBURSEMENT REPORT

FOR THE MONTH OF
February 2023

66.7% OF FY 2022-23 Adopted Budget
Treasurer's Report
Part 1 of 4

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

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
FY 2022-23
Adopted Budget

CURRENT MONTH
February 2023
FY 2022-23 YTD
ACTUAL
FY 2022-23 YTD
vs. FY 2022-23 Full
Year Adopted
Budget -
Higher/(Lower)
% OF YTD
ACTUAL VS.

Full Year
Adopted
Budget
109,000 0 55,460 (53,540) 50.9%
82,000 6,389 50,796 (31,204) 61.9%
191,000 6,389 106,256 (84,744) 55.6%
17,600 0 0 (17,600) 0.0%
38,000 0 0 (38,000) 0.0%
38,400 36,101 36,101 (2,299) 94.0%
130,000 1,252 77,053 (52,947) 59.3%
36,000 1,561 21,739 (14,261) 60.4%
50,000 18,311 54,792 4,792 109.6%
310,000 57,225 189,685 (120,315) 61.2%
145,000 7,207 64,133 (80,867) 44.2%
0 0 0 0 N/A
145,000 7,207 64,133 (80,867) 44.2%
680 56 832 152 122.4%
12,320 1,114 14,808 2,488 120.2%
36,000 6,561 20,067 (15,933) 55.7%
6,300 868 2,882 (3,418) 45.7%
697,000 77,083 401,809 (295,191) 57.6%
50,000 7,822 28,883 (21,117) 57.8%
3,000 267 971 (2,029) 32.4%
200 0 0 (200) 0.0%
8,500 0 13,460 4,960 158.4%
0 0 0 0 N/A
100 0 1,699 1,599 1699.2%
40,000 2,900 20,273 (19,727) 50.7%
60,000 12,999 44,198 (15,802) 73.7%
914,100 109,670 549,883 (364,217) 60.2%
Page: 3 of 12 File: Part 1 - RECEIPTS AND DISBURSEMENT MONTHLY REPORT 2023 02 28 (Final 05-07-2023) Page 23 of 174

THE CITY OF MONTE SERENO

RECEIPTS AND DISBURSEMENT REPORT

FOR THE MONTH OF
February 2023

66.7% OF FY 2022-23 Adopted Budget
Treasurer's Report
Part 1 of 4
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 - $11,200
01-282
LAIF interest payment received in
arrears - Estimated $11,200 FY
2023.

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) - $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 2022-23
Adopted Budget

CURRENT MONTH
February 2023
FY 2022-23 YTD
ACTUAL
FY 2022-23 YTD
vs. FY 2022-23 Full
Year Adopted
Budget -
Higher/(Lower)
% OF YTD
ACTUAL VS.

Full Year
Adopted
Budget
0 500 500 500 N/A
3,000 32 748 (2,252) 24.9%
3,000 532 1,248 (1,752) 41.6%
10,000 0 46,469 36,469 464.7%
1,200 0 5,245 4,045 437.1%
11,200 0 51,715 40,515 461.7%
1,100 0 729 (371) 66.3%
2,000 0 1,665 (335) 83.2%
4,200 0 0 (4,200) 0.0%
0 0 0 0 N/A
100,000 8,351 106,956 6,956 107.0%
129,185 0 30,663 (98,522) 23.7%
236,485 8,351 140,012 (96,473) 59.2%
Page: 4 of 12 File: Part 1 - RECEIPTS AND DISBURSEMENT MONTHLY REPORT 2023 02 28 (Final 05-07-2023) Page 24 of 174

THE CITY OF MONTE SERENO

RECEIPTS AND DISBURSEMENT REPORT

FOR THE MONTH OF
February 2023

66.7% OF FY 2022-23 Adopted Budget
Treasurer's Report
Part 1 of 4
. 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 Election Candidate Fees
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 (Budget)
01-292 Housing Element - Leap Grant
$65,000 (Budget)
01-292 Housing Element - Reap Grant
$20,000 (Budget)

TOTAL REVENUE
FY 2022-23
Adopted Budget

CURRENT MONTH
February 2023
FY 2022-23 YTD
ACTUAL
FY 2022-23 YTD
vs. FY 2022-23 Full
Year Adopted
Budget -
Higher/(Lower)
% OF YTD
ACTUAL VS.

Full Year
Adopted
Budget
170,000 32,721 109,305 (60,695) 64.3%
500 0 0 (500) 0.0%
7,200 1,280 6,665 (535) 92.6%
85,000 0 30,000 (55,000) 35.3%
0 0 0 0 N/A
0 0 2,770 2,770 N/A
18,000 4,090 5,596 (12,404) 31.1%
0 0 0 0 N/A
0 0 0 0 N/A
0 0 0 0 N/A
280,700 38,091 154,336 (126,364) 55.0%
5,202,285 235,128 3,203,776 (1,998,509) 61.6%
Page: 5 of 12 File: Part 1 - RECEIPTS AND DISBURSEMENT MONTHLY REPORT 2023 02 28 (Final 05-07-2023) Page 25 of 174

THE CITY OF MONTE SERENO

RECEIPTS AND DISBURSEMENT REPORT

FOR THE MONTH OF
February 2023

66.7% OF FY 2022-23 Adopted Budget
Treasurer's Report
Part 1 of 4

EXPENDITURES

PERSONNEL

LAW ENFORCEMENT

CONSTRUCTION

GENERAL GOVERNMENT

MAINTENANCE

ADMINISTRATION

CITY ATTORNEY

BUILDING MAINTENANCE

EQUIPMENT AND IMPROVEMENT

BUILDING AND IMPROVEMENT

CITY AUDIT

ENGINEERING

SPECIAL DISTRICTS

TOTAL EXPENDITURES

NET SURPLUS / (DEFICIT)
FY 2022-23
Adopted Budget

CURRENT MONTH
February 2023
FY 2022-23 YTD
ACTUAL
FY 2022-23 YTD
vs. FY 2022-23 Full
Year Adopted
Budget -
Higher/(Lower)
% OF YTD
ACTUAL VS.

Full Year
Adopted
Budget
1,506,832 102,242 839,826 (667,006) 55.7%
1,110,604 92,550 671,457 (439,147) 60.5%
1,000 1,829 14,577 13,577 1457.7%
456,000 26,882 301,378 (154,622) 66.1%
975,000 21,918 470,379 (504,621) 48.2%
528,660 53,948 382,295 (146,365) 72.3%
249,550 8,496 51,596 (197,954) 20.7%
30,000 8,715 42,852 12,852 142.8%
89,600 6,642 29,068 (60,532) 32.4%
725,000 0 14,257 (710,743) 2.0%
54,600 695 4,740 (49,860) 8.7%
33,272 0 11,247 (22,025) 33.8%
2,980 47 1,212 (1,768) 40.7%
5,763,098 323,963 2,834,885 (2,928,213) 49.2%
(560,813) (88,836) 368,891 929,704 -65.8%
Page: 6 of 12 File: Part 1 - RECEIPTS AND DISBURSEMENT MONTHLY REPORT 2023 02 28 (Final 05-07-2023) Page 26 of 174

THE CITY OF MONTE SERENO

RECEIPTS AND DISBURSEMENT REPORT

FOR THE MONTH OF
February 2023

66.7% OF FY 2022-23 Adopted Budget
Treasurer's Report
Part 1 of 4

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 2022-23
Adopted Budget

CURRENT MONTH
February 2023
FY 2022-23 YTD
ACTUAL
FY 2022-23 YTD
vs. FY 2022-23 Full
Year Adopted
Budget -
Higher/(Lower)
% OF YTD
ACTUAL VS.

Full Year
Adopted
Budget
2,000 107 17,681 15,681 884.0%
3,000 0 0 (3,000) 0.0%
15,000 0 13,538 (1,462) 90.3%
2,000 0 0 (2,000) 0.0%
15,000 0 2,770 (12,230) 18.5%
3,000 0 0 (3,000) 0.0%
12,000 1,642 3,264 (8,736) 27.2%
15,000 0 0 (15,000) 0.0%
6,300 0 0 (6,300) 0.0%
0 0 0 0 N/A
0 0 0 0 N/A
215,000 24,907 83,302 (131,698) 38.7%
89,000 0 93,646 4,646 105.2%
0 0 38,073 38,073 N/A
20,000 0 21,000 1,000 105.0%
12,500 0 0 (12,500) 0.0%
0 0 0 0 N/A
10,000 225 4,175 (5,825) 41.7%
0 0 0 0 N/A
200 0 2 (198) 1.1%
0 0 0 0 N/A
36,000 0 23,927 (12,073) 66.5%
456,000 26,882 301,378 (154,622) 66.1%
Page: 7 of 12 File: Part 1 - RECEIPTS AND DISBURSEMENT MONTHLY REPORT 2023 02 28 (Final 05-07-2023) Page 27 of 174

THE CITY OF MONTE SERENO

RECEIPTS AND DISBURSEMENT REPORT

FOR THE MONTH OF
February 2023

66.7% OF FY 2022-23 Adopted Budget
Treasurer's Report
Part 1 of 4

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 2022-23
Adopted Budget

CURRENT MONTH
February 2023
FY 2022-23 YTD
ACTUAL
FY 2022-23 YTD
vs. FY 2022-23 Full
Year Adopted
Budget -
Higher/(Lower)
% OF YTD
ACTUAL VS.

Full Year
Adopted
Budget
1,091,235 73,969 626,094 (465,142) 57.4%
0 0 0 0 N/A
0 0 0 0 N/A
95,593 5,989 50,936 (44,657) 53.3%
24,824 1,087 11,750 (13,074) 47.3%
135,177 10,899 73,096 (62,081) 54.1%
7,260 1,645 4,700 (2,560) 64.7%
8,400 1,400 4,370 (4,030) 52.0%
68,877 4,730 35,249 (33,629) 51.2%
16,143 1,106 9,330 (6,813) 57.8%
336 15 378 42 112.5%
38,586 1,402 14,325 (24,261) 37.1%
20,400 0 9,600 (10,800) 47.1%
1,506,832 102,242 839,826 (667,006) 55.7%
8,800 931 5,831 (2,969) 66.3%
14,580 4,230 24,684 10,104 169.3%
1,500 0 0 (1,500) 0.0%
40,760 1,435 7,144 (33,616) 17.5%
250 0 0 (250) 0.0%
24,300 695 23,848 (452) 98.1%
7,100 279 13,092 5,992 184.4%
19,700 800 9,936 (9,764) 50.4%
22,470 3,126 19,222 (3,248) 85.5%
0 0 0 0 N/A
361,000 42,453 270,804 (90,196) 75.0%
18,700 0 7,734 (10,966) 41.4%
0 0 0 0 N/A
7,000 0 0 (7,000) 0.0%
2,500 0 0 (2,500) 0.0%
528,660 53,948 382,295 (146,365) 72.3%
Page: 8 of 12 File: Part 1 - RECEIPTS AND DISBURSEMENT MONTHLY REPORT 2023 02 28 (Final 05-07-2023) Page 28 of 174

THE CITY OF MONTE SERENO

RECEIPTS AND DISBURSEMENT REPORT

FOR THE MONTH OF
February 2023

66.7% OF FY 2022-23 Adopted Budget
Treasurer's Report
Part 1 of 4

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 EQUIPMENT / IMPROVEMENTS
Notes to Building Improvement (01-815) $725k
01-815 Annex Building Project $600,000
(Budget)
01-815 City Hall Retrofit Parking Lot
$125,000 (Budget)

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 2022-23
Adopted Budget

CURRENT MONTH
February 2023
FY 2022-23 YTD
ACTUAL
FY 2022-23 YTD
vs. FY 2022-23 Full
Year Adopted
Budget -
Higher/(Lower)
% OF YTD
ACTUAL VS.

Full Year
Adopted
Budget
15,000 0 0 (15,000) 0.0%
0 0 0 0 N/A
74,600 6,642 29,068 (45,532) 39.0%
89,600 6,642 29,068 (60,532) 32.4%
0 0 0 N/A
725,000 0 14,257 (710,743) 2.0%
725,000 0 14,257 (710,743) 2.0%
1,010,604 84,217 589,519 (421,085) 58.3%
0 0 0 0 N/A
100,000 8,333 81,938 (18,062) 81.9%
1,110,604 92,550 671,457 (439,147) 60.5%
30,000 8,715 33,232 3,232 110.8%
0 0 9,620 9,620 N/A
30,000 8,715 42,852 12,852 142.8%
310,000 19,895 400,974 90,974 129.3%
0 0 0 0 N/A
0 0 0 0 N/A
627,000 0 45,826 (581,174) 7.3%
12,000 0 890 (11,110) 7.4%
3,000 190 691 (2,309) 23.0%
11,000 1,833 5,498 (5,502) 50.0%
12,000 0 16,500 4,500 137.5%
975,000 21,918 470,379 (504,621) 48.2%
Page: 9 of 12 File: Part 1 - RECEIPTS AND DISBURSEMENT MONTHLY REPORT 2023 02 28 (Final 05-07-2023) Page 29 of 174

THE CITY OF MONTE SERENO

RECEIPTS AND DISBURSEMENT REPORT

FOR THE MONTH OF
February 2023

66.7% OF FY 2022-23 Adopted Budget
Treasurer's Report
Part 1 of 4

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 2022-23
Adopted Budget

CURRENT MONTH
February 2023
FY 2022-23 YTD
ACTUAL
FY 2022-23 YTD
vs. FY 2022-23 Full
Year Adopted
Budget -
Higher/(Lower)
% OF YTD
ACTUAL VS.

Full Year
Adopted
Budget
0 0 0 0 N/A
0 0 0 0 N/A
0 0 1,810 1,810 N/A
0 1,829 12,767 12,767 N/A
0 0 0 0 N/A
1,000 0 0 (1,000) 0.0%
1,000 1,829 14,577 13,577 1457.7%
0 0 0 0 N/A
0 0 0 0 N/A
33,272 0 11,247 (22,025) 33.8%
33,272 0 11,247 (22,025) 33.8%
2,040 0 886 (1,154) 43.4%
940 47 326 (614) 34.7%
2,980 47 1,212 (1,768) 40.7%
Page: 10 of 12 File: Part 1 - RECEIPTS AND DISBURSEMENT MONTHLY REPORT 2023 02 28 (Final 05-07-2023) Page 30 of 174

THE CITY OF MONTE SERENO

RECEIPTS AND DISBURSEMENT REPORT

FOR THE MONTH OF
February 2023

66.7% OF FY 2022-23 Adopted Budget
Treasurer's Report
Part 1 of 4

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 2022-23
Adopted Budget

CURRENT MONTH
February 2023
FY 2022-23 YTD
ACTUAL
FY 2022-23 YTD
vs. FY 2022-23 Full
Year Adopted
Budget -
Higher/(Lower)
% OF YTD
ACTUAL VS.

Full Year
Adopted
Budget
84,550 7,145 45,989 (38,561) 54.4%
165,000 1,351 5,607 (159,393) 3.4%
0 0 0 0 N/A
0 0 0 0 N/A
249,550 8,496 51,596 (197,954) 20.7%
45,300 0 700 (44,600) 1.5%
3,000 0 0 (3,000) 0.0%
6,300 695 4,040 (2,260) 64.1%
54,600 695 4,740 (49,860) 8.7%
5,763,098 323,963 2,834,885 (2,928,213) 49.2%
(560,813) (88,836) 368,891 929,704 -65.8%
Page: 11 of 12 File: Part 1 - RECEIPTS AND DISBURSEMENT MONTHLY REPORT 2023 02 28 (Final 05-07-2023) Page 31 of 174

THE CITY OF MONTE SERENO

RECEIPTS AND DISBURSEMENT REPORT

FOR THE MONTH OF
February 2023

66.7% OF FY 2022-23 Adopted Budget
Treasurer's Report
Part 1 of 4

TOTAL FUND RESERVES

WARRANT CHECKING ACCOUNT
01-010 TOTAL WARRANT CHECKING

SAVINGS ACCOUNT
01-015 General
03-015 Law Enforcement
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 2022-23
Adopted Budget

CURRENT MONTH
February 2023
FY 2022-23 YTD
ACTUAL
FY 2022-23 YTD
vs. FY 2022-23 Full
Year Adopted
Budget -
Higher/(Lower)
% OF YTD
ACTUAL VS.

Full Year
Adopted
Budget
Actual Year End
Balances
June 30, 2022
117,450 39,159 221,670 104,219 188.7%
83,711 (148,568) 318,761 235,051 380.8%
241,391 8,351 253,714 12,323 105.1%
630 32 32,041 31,411 5087.5%
242,274 6,389 348,531 106,256 143.9%
69,524 0 69,524 0 100.0%
73 0 73 0 100.0%
2,805 0 4,308 1,503 153.6%
39 0 39 0 100.0%
640,447 (133,795) 1,026,991 386,544 160.4%
757,897 (94,636) 1,248,661 490,764 164.8%
647,671 0 194,140 (453,531) 30.0%
3,500,000 0 3,500,000 0 100.0%
500,000 0 500,000 0 100.0%
200,000 0 200,000 0 100.0%
0 0 0 0 N/A
4,847,671 0 4,394,140 (453,531) 90.6%
0 0 0 0 N/A
131,506 0 136,752 5,245 104.0%
21,000 0 21,000 0 100.0%
27,043 0 27,043 0 100.0%
6,751 0 6,751 0 100.0%
186,300 0 191,545 5,245 102.8%
5,033,970 0 4,585,685 (448,285) 91.1%
5,791,868 (94,636) 5,834,346 42,479 100.7%
Page: 12 of 12 File: Part 1 - RECEIPTS AND DISBURSEMENT MONTHLY REPORT 2023 02 28 (Final 05-07-2023) Page 32 of 174 1 | P a g e
Significant Revenue and Expenditures Narrative Treasurer’s Report – Part 2 of 4 February 2023

66.7% of FY 2022-23 Adopted Budget
Revenues
SIGNIFICANT FULL YEAR VARIANCES TO FY 2022-23 ADOPTED BUDGET NARRATIVE  Revenues $3.2 Million (61.6% of FY 2022-23 Adopted Budget FULL YEAR) - Property Tax $1,531.3 Thousand, 65.8% of FY 2022-23 Adopted Budget FULL YEAR: Received ($7.5k) supplemental 1% property tax.

- Licenses and Permits $549.9 Thousand, 60.2% of FY 2022-23 Adopted Budget FULL YEAR: In February, nine new business licenses processed and received $k in construction permits including major projects on Lancaster Rd ($4k); Grosvenor Ct ($4k); Viewfield Rd ($7.5k); Bicknell Rd ($11.3k); Karl Ave ($11.6k); Carril Ct ($13.4k); Zena Ave ($24.5k) and Via Bonita ($26.4k).
- Franchise Fees $189.7 Thousand, 61.2% of FY 2022-23 Adopted Budget FULL YEAR: Received franchise fees from Comcast ($18.3k); San Jose Water Company ($36.1k); and West Valley Collection ($2.8k). - Intergovernmental $140.0 Thousand, 59.2% of FY 2022-23 Adopted Budget FULL YEAR: In February, received FY 2023 COPS ELEAS pass-thru for December 2022 ($8.3k), - Other Revenues $154.3 Thousand, 55.0% of FY 2022-23 Adopted Budget FULL YEAR: Received ($32k) Road Impact fees from project on Zena Ave, Via Bonita, Viewfield Rd, Saratoga-Los Gatos Rd., Montalvo Oaks, Carril Ct, Bicknell Rd and Karl Ave. Storm drain fees ($4.1k) from projects on Zena Ave and Bio Bonita. - Gas Tax $106.3 Thousand, 55.6% of FY 2022-23 Adopted Budget FULL YEAR: Received Gas Tax revenue SB-1 revenue ($6.4k).
- Real Property Tax $64.1 Thousand, 44.2% of FY 2022-23 Adopted Budget FULL YEAR: In February 2023, received ($7.2) real property transfer tax.
- Sales and Use Tax $5.3 Thousand, 44.2% of FY 2022-23 Adopted Budget FULL YEAR: Received ($139) sales tax from Board of Equalization.
- Federal Relief Funds and Other $409.9 Thousand, 53.1% of FY 2022-23 Adopted Budget Full Year: Already received $409.9k Corona Virus Fiscal Recovery 2021 Budget Act YTD. - Investment Income/Interest $51.7 Thousand, 461.7% of FY 2022-23 Adopted Budget FULL YEAR: In February 2023, none received.

2 | P a g e
Significant Revenue and Expenditures Narrative Treasurer’s Report – Part 2 of 4 February 2023

66.7% of FY 2022-23 Adopted Budget
Expenditures
SIGNIFICANT FULL YEAR VARIANCES TO FY 2022-23 ADOPTED BUDGET NARRATIVE  Expenditures $2.8 Million, 49.2% of FY 2022-23 Adopted Budget FULL YEAR - Personnel $839.8 Thousand, 55.7% of FY 2022-23 Adopted Budget FULL YEAR: Slightly below budget with delayed hiring of combined Building Inspector/Enforcement Officer position – Filled December 17, 2022 by Alan Cunningham. City Engineer resigned September 30, 2022 and City Clerk resigned October 14, 2022 and promoted Deputy City Clerk to City Clerk November 2022. No change in FTE (Full-time Equivalent) in February. - Law Enforcement $671.5 Thousand, 60.5% of FY 2022-23 Adopted Budget FULL YEAR: Paid monthly police services ($84.2k) and disbursement of COPS ELEAS pass-thru Grant ($8.3k) along with Growth COPS ELEAS. - Construction $14.6 Thousand, 1457.7% of FY 2022-23 Adopted Budget FULL YEAR: In February, paid ($1.8k) on Hwy 9 Safety Improvement Gap Closure project. - General Government $301.4 Thousand, 66.1% of FY 2022-23 Adopted Budget FULL YEAR: In February, paid Dicar Networks Monthly Managed Care Services ($1.7k), and EMC Planning Group Consultants for Housing Element Project ($23.2k).
- Maintenance $470.4 Thousand, 48.2% of FY 2022-23 Adopted Budget FULL YEAR: In February, paid $19.9k to McKim Corp for the 2022 Annual Pavement Improvement Project. - Administration $328.3 Thousand, 72.3% of FY 2022-23 Adopted Budget FULL YEAR: Paid $11.2K for City Engineer Consultant and ($26.4k) Plan Check Consultant services for Hourly Services two months (12/05/2022 to 01/29/2023) and ePermit Project ($7k).
- City Attorney $51.6 Thousand, 20.7% of FY 2022-23 Adopted Budget FULL YEAR: In February, paid $7.1k for City Attorney Services and ($1.3k) for general litigation matters. - Building Maintenance $42.9 Thousand, 142.8% of FY 2022-23 Adopted Budget FULL YEAR: Paid Prime Tree Care to remove branches near and around Daves, Winchester, Constitution, Alecia, Alain Ct and Ranch Ave during storm ($6.8k); City Hall landscape maintenance ($550); and City Hall custodial services 2-months ($1.4k). - Equipment / Improvements $29.1 Thousand, 32.4% of FY 2022-23 Adopted Budget FULL YEAR: Paid total of ($5.7k) for Microsoft Office / software licenses renewal.

DEMAND ACCOUNT REPORT For the period ending
February 28, 2023
Treasurer's Report - Part 3 of 4
February 28, 2023 January 31, 2023 Changes Higher /
(Lower) Comment
BEGINNING BALANCE $1,343,296.71 $948,081.83 $395,214.88 Receipts and Interest Earned
Receipts for the period 235,351.84 777,212.74 ($541,860.90) In February 2023, received Permit fees from projects on Via Bonita ($40.1k) , Zena Ave ($36.5k); Carril Ct ($18k); Bickwell Rd ($11.4k); and Karl Ave ($9.8k). Also received a total of ($23.3k) from Santa Clara County for Supplemental 1% Tax ($7.5k), FY 2023 COPS ELEAS December 2022 passthru grant ($8.3k) and Transfer Tax ($7.2k). Franchise fees from Comcast ($18.3k) and San Jose Water Company ($36.1k).

Investment receipts during the period $0.00
Interest earned $0.00
Total Receipts and Interest Earned $235,351.84 $777,212.74 ($541,860.90) Less: Disbursements
Cash disbursements during the period $281,162.20 $332,290.30 ($51,128.10) In February 2023, paid $84.2k for Police Services, $50k staff net pay salary, $24.2k for Building Official/Plan Check Consultant 12/05/2022 to 01/29/2023, $11.2k for City Engineer Consultant, $23.2k to EMC Planning Group for Housing Element project, $20k to McKim Corporation for 2022 Annual Pavement Improvement project, $13.8k CalPERS Health Insurance premium, $8.5k to Burke, Williams Sorensen for City Attorney Services and general litigation matters and $8.3k COPS ELEAS pass-thru grant to Town of Los Gatos Police department.

Invested during the period $0.00
GASB 68 Report & SSA fee $0.00
EFT(PERS retirement) $10,852.31 $11,127.59 ($275.28)
EFT (payroll taxes) $19,880.54 $19,979.30 ($98.76)
EFT (PERS health) $13,806.53 $14,345.82 ($539.29)
EFT (EDD payroll taxes) $4,286.02 $4,254.85 $31.17
Bank fees $0.00
Total Disbursements $329,987.60 $381,997.86 ($52,010.26) ENDING BALANCE $1,248,660.95 $1,343,296.71 ($94,635.76)

BALANCE IN DEMAND ACCOUNTS
Checking $221,669.67 $182,510.18 $39,159.49
Savings $1,026,991.28 $1,160,786.53 ($133,795.25)
TOTAL DEMAND ACCOUNTS $1,248,660.95 $1,343,296.71 ($94,635.76)

FUND DISTRIBUTION IN DEMAND ACCOUNTS
General $540,431.16 $649,839.21 ($109,408.05) Refer to detail above for cash disbursements.

Law Enforcement $253,714.43 $245,363.21 $8,351.22 Received FY 2023 COPS ELEAS December 2022 pass-thru grant ($8.3k) Traffic Safety $32,040.74 $32,008.63 $32.11 Received Bails and Fines from December 2022 ($32) Gas Tax (2107) $348,530.67 $342,141.71 $6,388.96 Received SB-1 Revenue ($6.4k) Storm Drain $69,523.86 $69,523.86 $0.00
Surety Trust $72.75 $72.75 $0.00
Loma Serena Ltg $4,308.40 $4,308.40 $0.00
Rose/Andrews Ltg. $38.94 $38.94 $0.00
Total $1,248,660.95 $1,343,296.71 ($94,635.76)

City of Monte Sereno
Investment Accounts
Local Agency Investment Fund Wells Fargo Accounts Custodian For the period ending
February 28, 2023
Treasurer's Report - Part 4 of 4

ALL FUNDS REPORT
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
1/31/2023
Revenue Interest
and
(Disbursements)
Transfers within
WFB between 5508
and 2153
Transfer in/(Out)
(From WFB 5508 to
LAIF)
2/28/2023 Comments
194,140.10 194,140.10
3,500,000.00 3,500,000.00
500,000.00 500,000.00 No Activity
200,000.00 200,000.00

0.00 0.00
4,394,140.10 0.00 0.00 0.00 4,394,140.10

0.00 0.00
136,751.55 136,751.55
21,000.00 21,000.00 No Activity
27,042.53 27,042.53

0.00 0.00
6,751.00 6,751.00
191,545.08 0.00 0.00 0.00 191,545.08
4,585,685.18 0.00 0.00 0.00 4,585,685.18
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.

City of Monte Sereno
Investment Accounts
Local Agency Investment Fund Wells Fargo Accounts Custodian For the period ending
February 28, 2023
Treasurer's Report - Part 4 of 4

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
1/31/2023
Revenue Interest
and
(Disbursements)
Transfers within
WFB between 5508
and 2153
Transfer in/(Out)
(From WFB 5508 to
LAIF)
2/28/2023 Comments
467,329.03 220,579.55 (369,147.09) 318,761.49
In February 2023, received Permit fees from projects on Via Bonita ($40.1k) , Zena Ave ($36.5k); Carril Ct ($18k); Bickwell Rd ($11.4k); and Karl Ave ($9.8k). Also received a total of ($23.3k) from Santa Clara County for Supplemental 1% Tax ($7.5k), and Transfer Tax ($7.2k). Franchise fees from Comcast ($18.3k) and San Jose Water Company ($36.1k).
245,363.21 8,351.22 253,714.43 FY 2023 COPS ELEAS December 2022 pass-thru grant ($8.3k) and Transfer Tax ($7.2k)
32,008.63 32.11 32,040.74 Received Bails and Fines from December 2022 ($32) 342,141.71 6,388.96 348,530.67 Received SB-1 Revenue ($6.4k) 69,523.86 0.00 69,523.86

72.75 0.00 72.75
4,308.40 0.00 4,308.40

38.94 0.00 38.94
1,160,786.53 235,351.84 (369,147.09) 0.00 1,026,991.28
182,510.18 (329,987.60) 369,147.09 221,669.67
In February 2023, paid $84.2k for Police Services, $50k staff net pay salary, $24.2k for Building Official/Plan Check Consultant 12/05/2022 to 01/29/2023, $11.2k for City Engineer Consultant, $23.2k to EMC Planning Group for Housing Element project, $20k to McKim Corporation for 2022 Annual Pavement Improvement project, $13.8k CalPERS Health Insurance premium, $8.5k to Burke, Williams Sorensen for City Attorney Services and general litigation matters and $8.3k COPS ELEAS pass-thru grant to Town of Los Gatos Police department.
5,928,981.89 (94,635.76) 0.00 0.00 5,834,346.13
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.

STAFF REPORT
Meeting: City Council - Jun 06 2023
Agenda Heading: CONSENT CALENDAR
Staff Contact: Reynold Samoranos,
Department: Finance Manager
Title: Approve Warrant List Dated June 6, 2023 in the Amount $59,685.11 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:
2023 06 06 Warrants List

CITY OF MONTE SERENO

REGISTER OF ACCOUNTS PAYABLE
AS OF THESE DATES:

June 6, 2023
CHECK
NO. TO FOR AMOUNT ACCOUNT NO.
20309 Alamo Landscaping &
Maintenance Landscape maintenance City Hall April 2023 530.00 01-860 20310 Alana Consulting, LLC
Building Official Hourly Services 05/08/2023 to
06/04/2023 ($7130) and ePermit Development
($4830)
11,960.00 01-765
20311 BKF Engineers Hwy 9 Safety Improvement Gap closure thru Monte Sereno project 2,187.00 05-925
20312 BMI Imaging Systems Web hosting May 2023 225.00 01-715 20313 Burke,Williams &
Sorensen, LLP City Attorney Services March 2023 8,817.12 01-425 20314 City Clerks Association of
California
Membership dues - City Clerks Assn of California
($200) & Candidate nomination process and initiatives
($75)
275.00 01-745
20315 CIVICPLUS Municode administrative support fee 250.00 01-720 20316 Corodata Shredding Inc. Container rental fee 10.00 01-710 20317 Delta Dental of California Dental insurance premium June 2023 704.94 01-635 20318 Dicar Networks, Inc.

Two months services - Total managed service Total
Care $2650 and Microsoft Office & Datto Backup
software licenses ($2183)
4,832.50 01-535
01-811
20319 EMC Planning Group,
Inc. Housing Element Update 5,453.70 01-535
20320 Folger Graphics Leaf Blower Postcards #1550 ($635) & Quarterly Newsletter Spring 2023 ($2084) 2,719.68 01-725
20321 International League of
Cities Annual membership directory listing 250.00 01-745 20322 Javed Ellahie Reimbursement for attending Convention League Cal Cities 2023 in Sacremento 855.22 01-505
20323 Kelex Security Annual alarm monitoring services 540.00 01-765 20324 KTUA Monte Sereno BPMP project final payment 943.00 05-925 20325 Liebert Cassidy Whitmore Negotiation services - Monte Sereno and A.C.E. 1,657.50 01-427 20326 MissionSquare - 301546 Fund 457 Plan - May 2023 1,184.64 01-660 20327
Metropolitan
Transportation
Commission
Street Saver Annual Subscription 1,000.00 01-845
20328 Pacific Gas & Electric
Electricity services - City Hall ($558); Loma Serena Ltg Dist ($182); MS Street Lights ($195); Rose Andrews
Ltg Dist ($48)
982.62
01-705
40-935
05-890
50-945
20329 RICOH USA, INC. Copier rental for City Hall 480.23 01-705 20330 Rowena Turner Mileage reimbursement to attend Committee Event Meetings - TPAC, Lehigh, Cupertino, Mountain View. 76.96 01-505 20329 The A.I.M.S. Corporation Don Wimberly City Engineer Consultant 05/01/2023 thru 05/28/2023 13,750.00 01-765
TOTAL WARRANT LIST $59,685.11

I, REYNOLD SAMORANOS, FINANCE OFFICER DO HEREBY CERTIFY THAT THE

PROCEEDING ACCOUNTS HAVE BEEN CHECKED AND FOUND CORRECT TO THE BEST OF MY KNOWLEDGE AND BELIEF.
1 of 1 Page 39 of 174
1 PROFESSIONAL SERVICES AGREEMENT
This PROFESSIONAL SERVICES AGREEMENT is made and entered into this 6th day of June, 2023, by and between the City of Monte Sereno, a California general law city and municipal corporation of the State of California (hereinafter “City”) and Logan & Powell, LLP (hereinafter "Attorney").

Effective June 10, 2023, the City and Attorney hereby agree as follows:

1. Retainer Services: Except as provided elsewhere in this Agreement, Attorney shall provide, in a professional manner, all of the usual, customary and necessary services, usually and normally provided by a City Attorney to the City of Monte Sereno as those services are required. Scope of services to be provided in the monthly retainer shall include the following:
a. Attend all regularly scheduled and special City Council meetings and City Council study sessions as requested.
b. Provide legal services either on-site or virtually during office hours at City Hall as needed.
c. Attend Commission, committee and other meetings at City Hall or via conference call as required by the City Council or the City Manager.
d. Advise the City Council; any City Commissions, Committees, Boards, Authorities or Agencies; City staff and other City officials; on all legal matters pertaining to City business.
e. Prepare, review, and approve as to form, contracts, agreements, resolutions, ordinances, and all other standard City documents.
f. Prepare such written or oral legal opinions as shall, from time to time, be requested by the City.
g. Perform such other routine legal services as are required, from time to time, by the City Council or the City Manager. Represent the City and the City’s officials, officers, and employees in administrative proceedings as directed by the City Council or the City Manager.
h. At the request of the City, perform special projects, tasks or legal analysis assigned by the City Council (but not by individual councilmembers). i. The City specifically reserves the right to retain, at its sole option, other legal counsel for litigation and other specialized legal matters. The City Attorney will supervise outside legal counsel's work.

2. Services Provided Outside of Retainer Services (Litigation and Extraordinary Services):

In the event Attorney provides litigation and extraordinary services, Attorney shall be compensated on an hourly basis. Litigation services, if provided by Attorney, include all services related to the prosecution, defense or oversight of any matter being heard before any administrative board or tribunal (except the City Council), federal or state court where the City is a party or cases handled by the City’s insurance pool, as well as time expended for depositions court hearings, trials, conferences or other administrative or judicial appearances, preparation of any papers, briefs, documents and other matters related to any administrative or court proceeding, as well as preparation for any hearings before any public administrative agency, body or court.

2 Extraordinary services include review of annexation applications, development agreements, employee negotiations, bond issuances, federal, state or local emergencies, eminent domain, general or specific plans and zoning text amendments, environmental documents or any other matters for which the City receives refunds from the developer for purposes of reimbursement of legal expenses.

It is the obligation of City to make payments directly to Attorney for Extraordinary Services in a timely manner after billing those services. City may direct Attorney not to proceed on Extraordinary Services until City is satisfied that sufficient funds have been deposited with City to cover the costs of the required extraordinary services. In addition, the City may order Attorney to cease any Extraordinary Services at any time to assure that sufficient funds will be available for completion of the services.

3. Compensation and Reimbursement: For June 2023, City shall compensate Attorney for all services under the monthly retainer described in Section 1 herein in the amount of Five Thousand Dollars ($5,000.00). Beginning July 1, 2023, City shall compensate Attorney for all services performed under the monthly retainer described in Section 1 herein in the amount of Seven Thousand Five Hundred Dollars ($7,500.00) per month for 400 hours per fiscal year. For any hours over 400 billed in a fiscal year, such hours will be billed and paid at an hourly rate of $275/hour. All attorney services rendered for Services outside the retainer shall be compensated at an hourly rate of $275/hour.

Attorney shall be entitled to reimbursement for all expenses incurred by it in the performance of legal services hereto, provided that the same are first approved by the City Manager.

Reimbursable expenses to which Attorney shall be entitled shall include, but are not limited to, duplication costs; mileage, in amounts as authorized for other City officers or employees except that non-productive mileage between Attorney’s offices and City Hall shall not be reimbursable; extraordinary mail costs; messenger services; and other costs customarily made as part of the performance of legal services by Attorney. The designated City Attorney shall be entitled to reimbursement for the cost of attending professional conferences and seminars, which may be shared with other clients, as approved or directed by the City Manager or City Council.

4. Adjustments to Compensation: Beginning July 1, 2024, Attorney’s compensation for Retainer services shall be increased July 1st of each year by the United States Consumer Price Index for Urban Wage Earners, San Francisco, California, all Items Series A (“CPI”) for the previous 12 months prior to review. Compensation for litigation and extraordinary services shall be increased $5 per year on July 1st of each year. City shall consider any additional adjustments to compensation at the same time it reviews Attorney’s performance in accordance with section 13 below.

5. Term: This contract shall remain in full force and effect until terminated by either City or Attorney as set forth herein.

6. Defense and Indemnification: City agrees to provide a defense to Attorney for any civil action or proceeding brought against Attorney in their official or individual capacity, or both, on account of an act or omission in the scope of Attorney’s duties as City Attorney in the same fashion as required of public agencies regarding City’s employees pursuant to Government Code section 825 et seq.

3 7. Professional Liability Coverage: During the term of this Agreement, Attorney shall maintain professional liability insurance in an amount of no less than $1 million. A copy of such insurance shall be provided to City upon request.

8. Indemnification. Attorney agrees to defend, indemnify and hold the City harmless from and against claims or liabilities arising out of the negligent errors or omissions of Attorney discharging its obligation under this Agreement, excluding claims or liabilities arising out of the City's negligent errors or omissions to the extent that such errors or omissions are attributable to the City’s negligent errors or omissions.

9. Billing: Attorney shall submit monthly statements to the City within thirty (30) days of the end of the month for all Retainer, Litigation and Extraordinary Services for which services were rendered. The statements will itemize those services related to Litigation and Extraordinary Services performed during the preceding calendar month. The statement shall indicate the nature of the service, the date and time expended. All bills are due and payable thirty (30) days after receipt of the statement.

10.Designation of City Attorney: Kirsten Powell shall be designated as City Attorney.

11.Special Counsel: Attorney shall determine if special legal services are required for highly specialized or complicated legal services or litigation such as bond counsel. The Attorney, in consultation with the City Manager, shall recommend the retention of special outside counsel to the City Council.

12.Office Hours and Facilities: City shall provide office space for Attorney while performing Retainer Services conducive to rendering legal advice. This includes providing office furniture, telephone, office supplies, postage, copying facilities and other usual office support services.

13.Annual Review: The City Council shall review the performance of the Attorney in providing the services described herein and the compensation provisions thereof in June 2024 and thereafter annually on or before the adoption of the annual budget. Such review shall occur during the annual budget review process so as to incorporate any proposed changes in compensation.

The parties may agree to changes or amendments hereto, which changes or amendments shall be evidenced by written agreement. Nothing in this paragraph shall be deemed to prevent or inhibit more frequent review of performance, compensation, Attorney/client relationships, or otherwise inhibit the free and candid exchange of views between the parties hereto to the end that the legal interests of the City shall be best served.

14.Termination. Either party hereto may terminate this Agreement, without cause, by giving the other party sixty (60) days written notice. Attorney shall be paid the compensation and accrued reimbursable expenses incurred and earned up to cessation of services. Attorney shall use best efforts to limit the amount of expenses incurred subsequent to giving or receiving notice of termination as provided herein. In the event of termination, the parties shall cooperate to achieve an orderly transition and assumption of duties by any succeeding City Attorney. All files, documents and other City property shall be returned in good order to the City.

15.Nonassiqnability: The legal services to be provided under this Agreement are personal in nature and this contract cannot be assigned.

16.Notices: Written notices required hereunder shall be delivered electronically or by mail to Kirsten Powell, Logan & Powell, LLP, 15466 Los Gatos Blvd., Suite 109, Los Gatos, CA 95032 or by depositing same with the City Clerk of the City of Monte Sereno, or to such other address

4 as the parties may designate in writing.

17.Independent Contractor: Attorney and City understand and agree that Attorney is an independent contractor and City shall not be liable for Workers' Compensation, retirement or unemployment benefits for Attorney or Attorney's agents or employees. Attorney shall not receive any benefits normally provided to full-time employees of City except as otherwise provided in this agreement.

18.Entire Agreement: This agreement contains the entire understanding between the parties with respect to the subject matter herein. There are no representations, agreements or understandings between the parties relating to the subject of this agreement which are not fully expressed herein. This agreement shall not be amended except pursuant to a written instrument signed by all parties.

IN WITNESS WHEREOF, this Professional Services Agreement between the City of Monte Sereno and Logan & Powell, LLP is hereby executed on the date written above. “CITY” “ATTORNEY”

CITY OF MONTE SERENO LOGAN & POWELL, LLP
__________________________ __________________________
Bryan Mekechuk, Kirsten M. Powell,
Mayor Managing Partner
ATTEST:
__________________________
City Clerk

STAFF REPORT
Meeting: City Council - Jun 06 2023
Agenda Heading: UNFINISHED BUSINESS
Staff Contact: Diana Perkins, City Planner
Department: City Planner
Title: Housing Element Update: Discuss and Provide Direction on Second Review Comments Received from the California Department of Housing and Community Development (HCD)
Recommendation(s):

Staff recommends that the City Council discuss the second review comments received from the California Department of Housing and Community Development (HCD)and provide direction to staff on addressing the comments.

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 on January 31, 2023, however, HCD provided comments on March 31, 2023 finding that further revisions were required to the adopted Housing Element in order to reach substantial compliance with Housing Element law.

Below is an anticipated schedule for further revisions:

Anticipated Schedule
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 any draft
revision to HCD.

Planned for June 21, 2023
Council Review of Revised Housing Element Planned for end of June 2023

Anticipated Schedule
Submittal of Revised Housing Element to
HCD
Planned for early July 2023
Housing Element Overview
Monte Sereno’s current Housing Element covers the 2023 to 2031 planning period. The Housing Element is required to include the following components:

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

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

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

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

5. Policies and Programs: Establish policies and programs to be carried out during the 2023-2031 planning period to fulfill 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): Analyze and address significant disparities in housing needs and access to opportunity by proposing housing goals, objectives, and policies that aid in replacing segregated living patterns with truly integrated and balanced living patterns, transforming racially and ethnically concentrated areas of poverty into areas of opportunity, and fostering and maintaining compliance with civil rights and fair housing laws.

New Requirements for the 6th Cycle Housing Element Update Pursuant to recent State legislation, the following items are now required as part of the Housing Element Update process:
• Affirmatively Furthering Fair Housing (AFFH). Assembly Bill 686 (AB 686), passed in 2018, created new requirements for jurisdictions to affirmatively further fair housing. According to AB 686, affirmatively furthering fair housing means to take “meaningful actions, in addition to combating discrimination, which overcome patterns of segregation and foster inclusive communities free from barriers that restrict access to opportunity based on protected characteristics” and is Federally mandated by the 1968 Fair Housing Act. The four main goals are to:

• Address significant disparities in housing needs and in access to opportunity, and • Replace segregated living patterns with truly integrated and balanced living patterns, and • Transform racially and ethnically concentrated areas of poverty into areas of opportunity, and • Foster and maintain compliance with civil rights and fair housing laws. • Public Comment on Draft Revisions. Assembly Bill 215 (2021), requires local governments to make the first draft revision of their housing element update available for public comment for at least 30 days. Further, if any comments are received, a local government must take at least ten additional business days to consider and incorporate public comments into the draft revision before submitting to HCD. HCD must review the draft and report its written findings to the planning agency within 90 days of receiving the first draft submittal for each housing element revision or within 60 days of its receipt for a subsequent draft amendment or adoption.

Penalties for Non-Compliance
During the 6th Housing Element cycle, jurisdictions face a number of new consequences for not having a certified Housing Element. Under legislation enacted in recent years, if a city does not comply with State housing law, HCD may refer the City to the Attorney General. Significant fines may be imposed if a City does not comply with a court order requiring adoption of a compliant housing element. A court finding a Housing Element inadequate may also limit local land use decision-making authority until the jurisdiction brings its Housing Element into compliance, or local governments may lose the right to deny certain projects.

Conversely, an HCD-certified housing element makes cities eligible for, or with higher priority for, numerous sources of funding, such as Local Housing Allocations, Affordable Housing and Sustainable Communities Grants, SB 1 Planning Grants, CalHOME Program Grants, Infill Infrastructure Grants, Pro-Housing Design funding, Local Housing Trust Funds, and Regional Transportation Funds (such as MTC’s OneBayArea Grants).

Summary of Prior Meetings and Study Sessions
Over the last 16 months, Monte Sereno has conducted a comprehensive community engagement and outreach strategy as required by Government Code to assist in informing the 6th cycle Housing Element Update Process. This strategy has included a series of community meetings and public meetings as summarized below:
• February 24, 2022 – City Council study session to provide an overview of the Housing Element process and schedule.
• April 19, 2022 – City Council meeting to discuss sites inventory. • May 24, 2022 – Joint Meeting with the City Council and Site and Architectural Commission to discuss sites inventory.
• June 21, 2022 – City Council meeting to discuss ADU incentives/fee reductions and also to review draft programs.
• July 21, 2022 – Special City Council meeting where the Ad Hoc Housing Element committee provided an update on their plans to incentive ADU construction.

Additionally, the City Council approved a resolution at this meeting to offer a building permit fee reduction for ADU construction.

• September 6, 2022 – City Council meeting to discuss remove of ADU development constraints of owner occupancy requirements and a potential amnesty program. Also, the Draft Housing Element was reviewed at this meeting. • November 1, 2022 – City Council meeting where an ordinance was introduced to remove owner occupancy requirements for ADUs, create and amnesty program for unpermitted ADUs, and update the Municipal Code for the new state laws related to ADUs effective 2023.
• December 12, 2022 – Community meeting to provide information, various perspectives, and receive feedback on ADU construction in the West Valley region. • December 20, 2022 – City Council meeting to providing an update on the status of the Housing Element update.
• January 17, 2023 – City Council meeting to review comments received by HCD on the draft Housing Element.
• January 31, 2023 – Joint City Council and Site and Architectural Commission meeting to consider adoption of the revised Housing Element.

Feedback received throughout the ongoing community engagement and outreach process has assisted staff and the consulting team in preparing the Housing Element Update and related items.

Draft 2023-2031 Housing Element
The City Council approved the draft Housing Element at the September 6, 2022 City Council meeting. The draft Housing Element consists of the following sections:

1. Introduction: Explains the purpose, process, and contents of the Housing Element.

2. Goals, Policies, and Programs: Details specific policies and programs the city will undertake over the 2023-2031 Planning Period to address the housing goals.

3. Overview of Housing Needs and Constraints: Reviews governmental constraints, including land use controls, fees, and processing requirements, as well as nongovernmental constraints, such as construction costs, availability of land and financing, physical environmental conditions that may impede the development, preservation, and maintenance of housing.

4. Vacant and Available Sites: Describes the city’s strategy to achieve the RHNA requirements and identifies land suitable to accommodate these additional housing units.

5. Energy Conversation: Identifies opportunities and programs for energy conservation.

The 2023-2031 Housing Element also includes seven technical appendices with detailed analysis and information that supports the findings and conclusions in the main document. The following is a summary of the major elements of the Draft 2023-2031 Housing Element:

Affirmatively Furthering Fair Housing (AFFH)
One of the new requirements for the 6th cycle Housing Element Update is AFFH. Assembly Bill (AB) 686, passed in 2018, created new requirements for jurisdictions to affirmatively further fair housing. According to AB 686, affirmatively furthering fair housing means to take “meaningful actions, in addition to combating discrimination, that overcome patterns of segregation and foster inclusive communities free from barriers that restrict access to opportunity based on protected characteristics.” The four main goals are to:
• Address significant disparities in housing needs and in access to opportunity • Replace segregated living patterns with truly integrated and balanced living patterns • Transform racially and ethnically concentrated areas of poverty into areas of opportunity • Foster and maintain compliance with civil rights and fair housing laws AFFH is discussed in Chapter 1 and more thoroughly analyzed in Appendices A and G.

Housing Goals, Policies, and Programs
The Housing Goals in Chapter 2 are organized into the following categories:
• 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
The list of policies and programs in this chapter include the policies approved by the City Council at the June 21, 2022 meeting, including the addition of water conservation requirements discussed at that meeting (Program S), and additional policies suggested by the Santa Clara County Planning Collaborative and the consultant team for compliance with HCD requirements.

Regional Housing Needs Allocation (RHNA) and Sites Inventory In January of 2022, HCD approved the Association of Bay Area Governments (ABAG) adopted Final RHNA Plan which establishes a total RHNA of 441,176 residential units for the San Francisco Bay Area’s 6th Cycle Housing Element Update. Monte Sereno’s RHNA for this upcoming Housing Element is 193, an increase of over 300% from last cycle’s RHNA of 61.

Monte Sereno’s assigned RHNA for this housing cycle is distributed across four income categories as follows:

Very Low
Income
Low Income Moderate
Income
Above Moderate
Income
Total
53 30 31 79 193
Under state law, cities are not responsible for building such housing, 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.

To meet the RHNA for the 6th cycle, the city’s strategy is to create a robust outreach program to encourage the creation of ADUs within the city. Ad Hoc Committees to spearhead this goal were created by the City Council and the Site and Architectural Commission. The Committees developed a community-wide public outreach program to encourage creation of ADU units which included the following:
• Informational postcards mailed to each resident/property owner; • Door-to-door neighborhood canvassing;
• Direct mailings to property owners regarding the ADU incentive program; • Direct e-mails to interested parties, contractors, architects/designers; • Social media postings; and
• Information to be provided at the City-wide picnic on August 21, 2022 Additionally, the City Council approved a 50% reduction in building permit and plan review fees for building permit that create a new ADU, through new construction of the conversation of an existing structure (i.e. pool house, garage).

Analysis:

Comments Received HCD – March 31, 2023
The adopted Housing Element was submitted to HCD on February 1, 2023 for their review.

Comments were received on March 31, 2023 and are included in Attachment 1 to this staff report. A detailed listing of each comment and the staff recommended response is included in Attachment 2. Following is a summary of main comments and recommendations.

Section A – Review and Revision
HCD has asked for additional and expanded analysis and summary of the outcomes of the programs from the previous 5th Cycle Housing Element, particularly the lack of multi-family zoned properties within the city. An analysis of the cumulative effectiveness of past goals, policies, and related action in meeting the needs of special need populations is needed.

Specifically, HCD requested further analysis and review of Program HE-2.2 (Shared Housing), Program HE-2.3 (ADU Monitoring), Program HE-2.5 (Multifamily Zoning), Program HE-4.1 (Special Needs), and Program HE-4.2 (Senior Housing) from the prior housing element to discuss whether these programs should be continued in the current housing element.

Staff recommends that the review of programs from the previous 5th Cycle Housing Element be expanded to more fully describe how each program was addressed and what effects resulted on the availability of housing within the city. Additionally, the requested cumulative analysis will be provided for all of the goals together and additional analysis will discuss what effect was seen on new residential development within the city. Where the past program goals were not fully achieved, the programs in the updated Housing Element will be revised to address those areas. Staff will provide additional analysis of all programs specifically mentioned in HCD’s comment letter.

Section B – Housing Needs, Resources, and Constraints

1. Affirmatively Further Fair Housing
HCD requested that the Housing Element incorporate local data and knowledge and other relevant factors unique to the City related to historical assessment of fair housing. For example, the element could incorporate planning documents such as locally adopted ordinances, other elements of the general plan, infrastructure assessments, and mobility assessments to fully describe the impacts on fair housing patterns and trends. In addition, the element must discuss other relevant factors such as historical land use (zoning, initiatives, growth control that impacted socio-economic patterns.

Additional historical data and fair housing analysis will be included in the revised Housing Element as noted by HCD. Based on this assessment, the Programs will be revised to prioritize addressing contributing factor to fair housing issues.

2. Analysis of Population and Employment Trends and Projected Housing Needs for All Income Levels, Including Extremely Low-Income Households.

Additional background data and analysis is needed regarding the existing needs of extremely low-income households as well and trends and characteristics of housing needs for special housing needs.

This additional information will be provided, particularly through the outreach and interviews conducted by West Valley Community Services. Information will be obtained from their clients to determine how to address their housing needs, particularly for the very low-income population.

3. Inventory of Land Suitable for Residential Development.

The main focus of the comments in this section are regarding the projected number of ADUs that will be constructed during the planning period and used to meet the City’s RHNA requirements. As a result of a robust community outreach and Council-approved incentives, the city received written intentions from 225 property owners to construct an ADU in the next seven years. However, HCD is not receptive to considering that 225 ADUs will be constructed in Monte Sereno as this far exceeds the actual average number of permits issued which is approximately 13 annually.

Additional comments in this section are related to including programs to update the municipal code requirements for Emergency Shelters, By-right Permanent Supportive Housing, ADUs, and Manufactured Housing to comply with current state laws.

Staff was able to meet with HCD staff to discuss these comments. While HCD acknowledges that the City is allowed under state law to meet RHNA using an ADU-based strategy, HCD has indicated it disagrees with the City’s assumptions about how many ADUs are realistic to develop:

Calculation of Past Trends: As noted in the prior review, given the reliance on ADUs, the element should utilize averages based on all years since 2018. In response, the element continues to assume 225 ADUs over the planning period. These assumptions far exceed trends since 2018 and even exceed more recent trends since 2020 (approximately 12 to 15

ADUs per year). The element must rescale ADU assumptions in line with recent trends. Please see HCD’s prior review for additional information.

At the meeting with HCD staff to discuss their written comments, HCD indicated they would accept a projection of 20 new ADUs a year over the planning period, based on information already provided by the City. This equates to 160 new dwelling units towards the required RHNA of 193 new units; however, best practice is that the Housing Element should plan for additional 15% beyond the RHNA which is 223 units. The following table shows the revised ADU projections compared with the RHNA requirements:

Revised ADU Projections Compared with RHNA
Income Category RHNA (with 15%
Buffer)
ADU Projections Other Housing
Needed
Very Low 61 48 13
Low 35 48 13 Above
Moderate 36 48 12 Above
Above Moderate 91 16 75
Total 223 160 63
One option to address the revised Sites Inventory shortfall of 63 units is to incentivize SB9 projects, as discussed in Section C below.

Additionally, staff recommend further revisions to address HCD’s comments on affordability.

HCD also provided comments indicating that the City was required to “identify and analyze significant and realistic opportunities for multifamily development in the planning period as part of this update.” Additionally, staff recommend including revisions as may be required by AB2339 related to emergency shelters.

4. Analysis of Potential and Actual Governmental Constraints.

This section notes several additional information on the evaluation of existing standards that are a constraint to the development of housing including land use standards, permitting procedures, reasonable accommodation considerations, and group homes.

Additional analysis will be provided regarding the development standards notes and programs added to address the constraints identified.

Section C – Housing Programs
HCD comments in this section focus on specifying more commitments to meaningful action and committing to earlier completion dates for the housing programs. Following is a summary of the recommended program revisions to address these comments:

Program E (Review SB9 Regulations)
The program should commit to complying with state law and consider additional modifications that further enhance the state law.

SB9 is a state law that was effective on January 1, 2022. The law contains two main provisions for lots zoned for single family use; the first is allowing an additional dwelling unit on each lot and the second is to allow a two-lot subdivision for each lot. In January 2022, the City Council adopted an ordinance to incorporate the state SB9 law into the Municipal Code. In that ordinance, each new dwelling unit constructed under the SB9 regulations is limited to 800 square feet.

In addition to SB9, there are several other state laws that have been adopted to encourage the production of housing in the state which local governments are required to adopt and implement. One such law is the Housing Crisis Act of 2019. This law limits the ability of a city to amend its general plan, specific plans, or zoning code to a “less intensive land use” to those in effect on January 1, 2018. Such reductions in intensity include, but are not limited to, reductions to height, density, or floor area ratio, new or increased open space or lot size requirements, new or increased setback requirements, minimum frontage requirements, or maximum lot coverage limitations, or any other action that would individually or cumulatively reduce the site’s residential development capacity.

HCD staff believe that reducing the allowable building size of SB9 projects to a lesser area than what is otherwise allowed by a specific zoning district, is a reduction in intensity of land use that is a violation of the Housing Crisis Act of 2019, even though SB9 did not exist in 2018.

However, one benefit of removing the building size limit in the City’s SB9 regulations is that staff anticipates an increase in SB9 projects will result.

Staff recommends that the Housing Element be revised to include the anticipated SB9 projects that will likely be constructed over the planning period in the Sites Inventory so that the anticipated new units can be credited towards achieving the RHNA shortfall with the reduced ADU projections described above. In order to include projects in the Sites Inventory, written letters of intention will need to be obtained from interested property owners.

Program G (Develop Incentives)
HCD provided comment that the City’s program for development of affordable housing needs additional outreach to developers, and “given the lack of progress in the previous planning periods, this Program must specifically, annually reach out to affordable developers and apply for funding in addition to ‘at the request of the developer’.” HCD requested additional analysis of the City’s prior implementation.

This program will be revised to strengthen the language as noted and will be modified to address the needs of low-income and special needs populations as determined with the additional outreach to these populations as described above.

Program I (Accessory Dwelling Units)
HCD requested that the Program should clearly commit to removing restrictive requirements and specifically revise the ADU ordinance in compliance with ADU law. In addition, the Program now only commits to survey affordability and use but should survey affordability, use

and production. Further, the Program only commits to take alternative action at a mid-cycle review of the housing element if construction goals or affordability are not met. Alternative action should be taken annually within six months of an annual review and should be triggered by production, affordability and availability or use.

The program will be updated as directed by HCD.

Program Q (Analyze Multifamily Housing)
The comments from HCD require that the City commit to making sites and appropriate zoning (e.g. 20 units per acre) available to allow for multifamily housing. Such development standards should encourage and facilitate multifamily housing.

Staff was able to meet with HCD staff to discuss this comment and the multifamily zoning requirement. HCD staff emphasized the need for multifamily zoned property within the city.

While the comment made reference to a density of 20 units per acre (current multifamily housing zoning at Montalvo Oaks is approximately 9 units per acre), HCD staff clarified in the meeting that if the RHNA is met without including any multifamily zoning, the 20 units per acre standards would not be applicable. For example, if the RHNA requirement is met with ADUs and potentially SB9 project commitments, the creation of multifamily zoning is still required, by the 20 units per acre standard would not apply.

One option to create multifamily zoning within the city is to use SB10 provisions of state law.

SB10 is a state law that allows a city to create development standards for a specific lot. For example, the building setbacks, size, height, and landscape requirements can all be determined for a specific property, which may assist in mitigating impacts of a multifamily development on neighboring properties.

Staff recommends that the City Council provide direction on committing to rezoning two properties within the city to multifamily housing using the SB10 laws. Such rezoning will need to be completed by January 31, 2024.

Section D – Quantified Objectives
The comment from HCD require that numerical targets be added for the ADU amnesty program, Program Q (Housing Maintenance), Program R (Infrastructure Capital Improvements), Program S (Energy Conservation), Program T (Water Conservation) and Program U (Fair Housing).

Staff recommends that the anticipated or targeted outcome be added to each of these programs to provide an estimate of the actual number of housing unit affected by each program.

Section E – Public Participation
HCD’s comment requested that additional public outreach be made to lower-income and special needs groups to understand and address their housing needs.

Since these comments were received, the city has been further worked with West Valley Community Services to reach out to the lower-income and special needs groups within the community. Additional outreach to lower-income and special needs populations has been made by West Valley Community Services and the Housing Element will be updated to include the information received and how the needs of lower-income and special needs populations will be met through various programs.

Additionally, a new appendix will be added to the Housing Element that details each public comment that has been received and how the comments were addressed in the revised document.

Staff Recommended Next Steps
Staff recommends that the City Council provide direction on the following items:
• Commit to revising the current Municipal Code requirements for SB9 projects, including modifications to the the maximum square footage of new dwelling units, by December 31, 2023.
• Commit to rezoning two sites for multi-family housing (possibly using SB10) by January 31, 2024.
• Direct staff to proceed with revising the Housing Element as noted in this report for the other comments.
• Any additional direction from Council.

Staff anticipates publishing the revised Housing Element for public review, with the direction provided from Council, on June 19, 2023 and present the revised Housing Element to the City Council for adoption by the end of June 2023. Submittal to HCD is anticipated for the first week of July 2023. HCD’s review and comment timeframe is 60 days from the submittal date.

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.

The draft Housing Element that was reviewed HCD is available on the Housing Element website at www.AtHomeinMonteSereno.com.

Attachments:

1. HCD Comment Letter March 31, 2023

2. HCD 2nd Review Comments with Description of Proposed Revisions

3. HCD SB9 Fact Sheet

STATE OF CALIFORNIA - BUSINESS, CONSUMER SERVICES AND HOUSING AGENCY GAVIN NEWSOM, Governor

DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT

DIVISION OF HOUSING POLICY DEVELOPMENT
2020 W. El Camino Avenue, Suite 500
Sacramento, CA 95833
(916) 263-2911 / FAX (916) 263-7453
www.hcd.ca.gov
March 31, 2023
Steve Leonardis, City Manager
City of Monte Sereno
18041 Saratoga-Los Gatos Road
Monte Sereno, CA, 95030
Dear Steve Leonardis:

RE: City of Monte Sereno’s 6th Cycle (2023-2031) Adopted Housing Element Thank you for submitting the City of Monte Sereno’s (City) housing element that was adopted January 31, 2023 and received for review on February 1, 2023. Pursuant to Government Code section 65585, subdivision (h), the California Department of Housing and Community Development (HCD) is reporting the results of its review. In addition, HCD considered comments from South Bay YIMBY pursuant to Government Code section 65585, subdivision (c).

The adopted housing element addresses some statutory requirements described in HCD’s January 9, 2022 review; however, additional revisions are necessary to substantially comply with State Housing Element Law (Article 10.6 of the Gov. Code).

The enclosed Appendix describes the revisions needed to comply with State Housing Element Law.

Public participation in the development, adoption and implementation of the housing element is essential to effective housing planning. During the housing element revision process, the City must continue to engage the community, including organizations that represent lower-income and special needs households, by making information regularly available while considering and incorporating comments where appropriate. Please be aware, any revisions to the element must be posted on the local government’s website and to 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 to HCD.

For your information, pursuant to Assembly Bill 1398 (Chapter 358, Statutes of 2021), if a local government fails to adopt a compliant housing element within 120 days of the statutory deadline (February 15, 2023), then any rezoning to make prior identified sites available or accommodate the regional housing needs allocation shall be completed no later than one year from the statutory deadline pursuant to Government Code sections 65583, subdivision (c) and 65583.2, subdivision (c). Otherwise, the local government’s

housing element will no longer comply with State Housing Element Law, and HCD may revoke its finding of substantial compliance pursuant to Government Code section 65585, subdivision (i). Please be aware, if the City fails to adopt a compliant housing element within one year from the statutory deadline, the element cannot be found in substantial compliance until these rezones are completed.

For your information, some general plan element updates are triggered by housing element adoption. HCD reminds the Cityo consider timing provisions and welcomes the opportunity to provide assistance. For information, please see the Technical Advisories issued by the Governor’s Office of Planning and Research at:
https://www.opr.ca.gov/planning/general-plan/guidelines.html.

HCD appreciates the commitment and cooperation provided throughout the housing element update and review. We are committed to assist the City in addressing all statutory requirements of State Housing Element Law. If you have any questions or need additional technical assistance, please contact Brandon Yung, of our staff, at [email protected].

Sincerely,
Paul McDougall
Senior Program Manager
Enclosure

City of Monte Sereno’s 6th Cycle Adopted Housing Element Page 1 March 31, 2023

APPENDIX

CITY OF MONTE SERENO
The following changes are necessary to bring the City’s housing element into compliance with Article 10.6 of the Government Code. Accompanying each recommended change, we cite the supporting section of the Government Code.

Housing element technical assistance information is available on HCD’s website at https://www.hcd.ca.gov/planning-and-community-development/hcd-memos. Among other resources, the housing element section contains HCD’s latest technical assistance tool, Building Blocks for Effective Housing Elements (Building Blocks), available at https://www.hcd.ca.gov/planning-and-community-development/housing-elements/buildingblocks and includes the Government Code addressing State Housing Element Law and other resources.

A. Review and Revision
Review the previous element to evaluate the appropriateness, effectiveness, and progress in implementation, and reflect the results of this review in the revised element. (Gov. Code, § 65588 (a) and (b).)
As noted in the prior review, the element should evaluate programs geared toward promoting housing variety and affordability, housing mobility and inclusion into and throughout Monte Sereno. Most notably, the element should acknowledge the depth and importance of facilitating multifamily housing within City boundaries and should evaluate the effectiveness of multifamily zoning and programs geared toward promoting housing variety, mobility, and affordability. In response, the element continues to report on permitted accessory dwelling units and notes an alternative project was approved instead of multifamily zoning. However, the element should clearly evaluate whether zoning was successful in promoting multifamily development, including affordability and if not, examine the lack of effectiveness to formulate an appropriate programmatic response. In addition, the element should analyze the progress and effectiveness of programs geared toward promoting housing variety (e.g., multifamily), mobility and affordability, as follows:
• Program HE-2.2 (Shared Housing): The element must still discuss whether the City proactively contacted agencies and if not, incorporate the lack of outreach into new programs.
• Program HE-2.3 (ADU Monitoring): This Program had a specific trigger to revise multifamily zoning and densities if ADUs for all income were not constructed in specified time intervals. In response, the element indicates ADUs were constructed but should also discuss whether ADUs were permitted for all income groups and if not, discuss why multifamily zoning, including appropriate densities were not established. Then, the element should incorporate lessons learned in new programs. • Program HE-2.5 (Multifamily Zoning): As noted above, the element should evaluate the lack of effectiveness in establishing multifamily, including promoting affordability through outreach to developers of housing affordable to lower income and special need households.

City of Monte Sereno’s 6th Cycle Adopted Housing Element Page 2 March 31, 2023
• Program HE-4.1 (Special Needs): The element still must discuss attempts, success or effectiveness of outreach with non-profit developers and revise new programs as appropriate.
• Program HE-4.2 (Senior Housing): The element should evaluate the program’s appropriateness and determine whether it should be modified or continued into the current planning period.

In addition, the element still must provide an evaluation of the cumulative effectiveness of past goals, policies, and related actions in meeting the housing needs of special needs populations (e.g., elderly, persons with disabilities, large households, female-headed households, farmworkers, and persons experiencing homelessness) and revise programs as appropriate.

B. Housing Needs, Resources, and Constraints

1. Affirmatively further[ing] fair housing in accordance with Chapter 15 (commencing with Section 8899.50) of Division 1 of Title 2…shall include an assessment of fair housing in the jurisdiction. (Gov. Code, § 65583, subd. (c)(10)(A).) Local Data and Knowledge and Other Relevant Factors: The element now discusses past redlining in the broader Santa Clara County but should incorporate local data and knowledge and other relevant factors unique to the City. For example, the element could incorporate planning documents such as locally adopted ordinances, other elements of the general plan, infrastructure assessments, and mobility assessments to fully describe the impacts on fair housing patterns and trends. In addition, the element must discuss other relevant factors such as historical land use (zoning, initiatives, growth control that impacted socio-economic patterns.

Contributing Factors: Based upon a complete analysis, the element must re-assess and prioritize contributing factors to fair housing issues and add or modify programs as appropriate.

2. Include an analysis of population and employment trends and documentation of projections and a quantification of the locality's existing and projected needs for all income levels, including extremely low-income households. (Gov. Code, § 65583, subd. (a)(1).)
Analyze any special housing needs such as elderly; persons with disabilities, including a developmental disability; large families; farmworkers; families with female heads of households; and families and persons in need of emergency shelter. (Gov. Code, § 65583, subd. (a)(7).)
Extremely Low-income (ELI) Households: The element now identifies the projected housing need for ELI households but must still analyze the existing needs of these households. Please see HCD’s prior review for additional information.

City of Monte Sereno’s 6th Cycle Adopted Housing Element Page 3 March 31, 2023
Special Needs: While the element now includes some brief discussion of potential solutions to address special housing needs, it should still discuss trends and characteristics of housing needs to better formulate strategies and modify programs as appropriate.

3. An inventory of land suitable and available for residential development, including vacant sites and sites having realistic and demonstrated potential for redevelopment during the planning period to meet the locality’s housing need for a designated income level, and an analysis of the relationship of zoning and public facilities and services to these sites. (Gov. Code, § 65583, subd. (a)(3).)4
Adequate Sites and Accessory Dwelling Units (ADU): As noted in the prior review, the element may demonstrate adequate sites to accommodate the regional housing need allocation (RHNA) entirely with ADUs, however, given the reliance on one strategy, it must include robust and commensurate analysis or utilize alternative strategies. The element still proposes to accommodate essentially the entire RHNA for all income groups with ADUs and as a result, still must include robust and commensurate analysis, as follows:
• Calculation of Past Trends: As noted in the prior review, given the reliance on ADUs, the element should utilize averages based on all years since 2018. In response, the element continues to assume 225 ADUs over the planning period.

These assumptions far exceed trends since 2018 and even exceed more recent trends since 2020 (approximately 12 to 15 ADUs per year). The element must rescale ADU assumptions in line with recent trends. Please see HCD’s prior review for additional information.
• Affordability: The element generally was not revised to address this finding. In addition, the element should address to comments submitted on this and prior review. Please see HCD’s prior review for additional information. • Other Relevant Factors: The element now includes information on the availability of ADUs for rent; stating that 93 percent of past ADUs were made available for rent. As a result, the element should incorporate this information into ADU assumptions for the planning period.

If the above analyses necessitate identifying sites to accommodate the RHNA, including by income group, the identification of sites and analysis must meet all requirements pursuant to Government Code section 65583.2, including but not limited to parcel listing, map of identified sites, identified sites and AFFH, environmental and other constraints, infrastructure, size of sites, nonvacant sites, calculation of realistic residential capacity and appropriate zoning to accommodate housing for lower-income households. For more information, please see the Building Blocks at https://www.hcd.ca.gov/planning-and-community-development/housingelements/building-blocks.

Electronic Sites Inventory: Although the City has submitted electronic sites inventory as described in the prior review, if any changes occur, the City should submit revisions as part of any future re-adoption or submittal. Please see HCD’s housing element

City of Monte Sereno’s 6th Cycle Adopted Housing Element Page 4 March 31, 2023
webpage at https://www.hcd.ca.gov/planning-and-community-development/housingelements for additional information.

Zoning for a Variety of Housing Types:
• Multifamily: While the element was updated to include a program to “analyze” opportunities for multifamily zoning, it still must identify and analyze significant and realistic opportunities for multifamily development in the planning period as part of this update. The identification and analysis should address sites, any known constraints or impediments, parcel size, appropriateness of densities and methodology for calculating residential capacity. Based on the outcomes of this analysis, the element must include programs to make sites available with appropriate zoning, allowable densities (e.g., 20 units per acre) and development standards to encourage and facilitate multifamily development at maximum allowable densities.
• Emergency Shelters: HCD’s prior review found the element should clarify that byright is without discretionary action and add a discussion of acreage, parcel sizes. reuse and redevelopment opportunities and proximity to transportation and services as well as evaluate development standards. In response, the element now states only one site is available; a school site. The element must still clarify whether emergency shelters are permitted without discretionary action and should demonstrate how the one school site could accommodate at least one emergency shelter or identify other zones and capacity. In addition, the element must still analyze development standards, including parking requirements and add or modify programs to address any constraints.

Please be aware Chapter 654, Statues of 2022 (AB 2339), adds specificity on how cities and counties plan for emergency shelters and ensure sufficient and suitable capacity. Future submittals of the housing element may need to address these statutory requirements. For additional information and timing requirements, please see HCD’s memo at
https://www.hcd.ca.gov/sites/default/files/docs/planning-and-community/ab2339- notice.pdf.
• By-right Permanent Supportive Housing: The element now includes a Program S (Allow Single Room Occupancy) to permit supportive housing by-right in the Public zoning district. However, by-right permanent supportive housing shall be a use by-right in zones where multifamily and mixed uses are permitted, including nonresidential zones permitting multifamily uses pursuant to Government Code section 65651. Future efforts to establish multifamily zoning should comply with these requirements.
• Accessory Dwelling Units: Based on a cursory review, the City’s ADU ordinance does not comply with ADU law. The element must include a program to amend the ADU ordinance and comply with ADU law. HCD will send additional information upon a complete review of the ordinance under separate cover.

City of Monte Sereno’s 6th Cycle Adopted Housing Element Page 5 March 31, 2023
• Manufactured Housing: The element now clarifies that manufactured homes are permitted in the same manner as conventional homes and a specific standard will be added to confirm manufactured homes will be reviewed consistent with state law when the City updates its objective design standards. The element should modify programs to reflect this confirmation in the update of objective design standards.

4. An analysis of potential and actual governmental constraints upon the maintenance, improvement, or development of housing for all income levels, including the types of housing identified in paragraph (1) of subdivision (c), and for persons with disabilities as identified in the analysis pursuant to paragraph (7), including land use controls, building codes and their enforcement, site improvements, fees and other exactions required of developers, and local processing and permit procedures... (Gov. Code, § 65583, subd. (a)(5).)
Land Use Controls: HCD’s prior review generally found the element must evaluate all development standards and land use controls, impacts of a predominant large lot land use patter and compliance with Government Code sections 65852.21 and 66411.7 (SB 9). However, the element must still be revised, as follows:
• Development Standards and Land Use Controls: The element was not revised to address this requirement. Please see HCD’s prior review for additional information.
• Lack of a Variety of Lot Sizes: The element now notes that a majority of the City is large lots over two acres and as a result, should include programs to provide a variety of lot sizes – beyond complying with State law. Programs should be specific and not limited to reviewing options.
• Government Code sections 65852.21 and 66411.7 (SB 9): The element now includes Program E (SB 9 Regulations) to review regulations. However, the Program should specifically commit to amend zoning and comply with state law.

Processing and Permit Procedures: The element generally was not revised to address HCD’s prior finding. Please see HCD’s prior review for additional information.

Streamlining Provisions: HCD’s prior review found the element should clarify whether the City has procedures consistent with streamlining procedures pursuant to Government Code section 65913.4 (SB 35) and include programs as appropriate. In response, the element now concludes the City is in compliance with RHNA and is not subject to SB 35. However, these conditions may change and the element should add a program with specific commitment to establish a written procedure to comply with Government Code section 65913.4 by a specified date.

Constraints on Housing for Persons with Disabilities: The element must still include an analysis of potential constraints on housing for persons with disabilities, as follows:

City of Monte Sereno’s 6th Cycle Adopted Housing Element Page 6 March 31, 2023
• Reasonable Accommodation: The element indicates the City has a reasonable accommodation procedure that involves a “hearing” (p. C-10). The element should clarify if this is a public hearing and if so, evaluate the impacts as a potential constraint on housing for persons with disabilities. In addition, the element now lists several decision-making criteria but should also evaluate some of those criteria as constraints on housing for persons with disabilities. For example, decision-making criteria such as demonstrating a special need, benefit, compatibility with surrounding uses, alternative accommodations and that a household with a disability is truly a household appear to be a constraint. The element should evaluate these decision-making criteria and add or modify programs as appropriate.
• Group Homes for Seven or More Persons: The element now explains group homes for seven or more persons are allowed in all residential zones, however, also mentions these uses are limited to licensed homes. As a result, the element should include a program to amend zoning and remove the licensing requirement.

C. Housing Programs

1. Include a program which sets forth a schedule of actions during the planning period, each with a timeline for implementation, which may recognize that certain programs are ongoing, such that there will be beneficial impacts of the programs within the planning period, that the local government is undertaking or intends to undertake to implement the policies and achieve the goals and objectives of the Housing Element... (Gov. Code, § 65583, subd. (c).)
To have a beneficial impact in the planning period and achieve the goals and objectives of the housing element, programs must have discrete timing early in the planning period (e.g., at least annually or by 2025) and specific commitment to housing outcomes (e.g., refrain from language such as “explore”, “develop”, “consider”). Examples of programs to be revised include:
• Program E (Review SB9 Regulations): As noted in the prior review, the Program should go beyond reviewing and amending as needed. The Program should at least clearly commit to comply with law and could consider additional modification that further enhance the state law.
• Program G (Develop Incentives): The updated Program does not respond to the previous finding. Especially given the lack of progress in the previous planning periods, this Program must specifically, annually reach out to affordable developers and apply for funding in addition to “at the request of the developer”.

Additionally, the Program should include quantified objectives and should be further modified based on the outcomes of complete analyses as noted in Findings A and B. Please see HCD’s prior review for additional information.

City of Monte Sereno’s 6th Cycle Adopted Housing Element Page 7 March 31, 2023
• Program I (Accessory Dwelling Units): The updated Program does not respond to the previous finding. The Program should clearly commit to removing restrictive requirements and specifically revise the ADU ordinance in compliance with ADU law. In addition, the Program now only commits to survey affordability and use but should survey affordability, use and production. Further, the Program only commits to take alternative action at a mid-cycle review of the housing element if construction goals or affordability are not met. Alternative action should be taken annually within six months of an annual review and should be triggered by production, affordability and availability or use.

2. Identify actions that will be taken to make sites available during the planning period with appropriate zoning and development standards and with services and facilities to accommodate that portion of the city’s or county’s share of the regional housing need for each income level that could not be accommodated on sites identified in the inventory completed pursuant to paragraph (3) of subdivision (a) without rezoning, and to comply with the requirements of Government Code section 65584.09. Sites shall be identified as needed to facilitate and encourage the development of a variety of types of housing for all income levels, including multifamily rental housing, factory-built housing, mobilehomes, housing for agricultural employees, supportive housing, single-room occupancy units, emergency shelters, and transitional housing. (Gov. Code, § 65583, subd. (c)(1).)
As noted in Finding B3, the element does not include a complete site analysis, therefore, the adequacy of sites and zoning were not established. Based on the results of a complete sites inventory and analysis, the City may need to add or revise programs to address a shortfall of sites or zoning available to encourage a variety of housing types.

In addition, the element now includes Program Q (Analyze Multifamily Housing) to analyze sites and analyze the potential application of SB 10. However, this Program generally does not commit to any meaningful outcomes in the planning period, especially when considering the past lack of effectiveness in promoting multifamily and affordability. As noted in the prior review, this Program should be modified based on the outcomes of a complete analysis as described throughout this review. The Program must at least commit to make sites and appropriate zoning (e.g., 20 units per acre) available with development standards to encourage and facilitate multifamily development at maximum densities and may need to address specific requirements related to a shortfall of adequate sites, including rezoning sizes to meet by-right requirements.

3. The Housing Element shall contain programs which assist in the development of adequate housing to meet the needs of extremely low-, very low-, low- and moderateincome households. (Gov. Code, § 65583, subd. (c)(2).) The element was not revised to address this finding. In addition, programs must be revised based on the outcomes of a complete analysis as described in Findings A and B.

City of Monte Sereno’s 6th Cycle Adopted Housing Element Page 8 March 31, 2023

4. Address and, where appropriate and legally possible, remove governmental and nongovernmental constraints to the maintenance, improvement, and development of housing, including housing for all income levels and housing for persons with disabilities. The program shall remove constraints to, and provide reasonable accommodations for housing designed for, intended for occupancy by, or with supportive services for, persons with disabilities. (Gov. Code, § 65583, subd. (c)(3).) As noted in Findings B4, the element requires a complete analysis of potential governmental and nongovernmental constraints. Depending upon the results of that analysis, the City may need to revise or add programs and address and remove or mitigate any identified constraints.

In addition, as noted in Finding B4, the City lacks a variety of minimum lot sizes and densities and the element should add programs to create a variety of lot sizes, increased densities, and modified development standards to facilitate maximum densities.

6. Promote and affirmatively further fair housing opportunities and promote housing throughout the community or communities for all persons regardless of race, religion, sex, marital status, ancestry, national origin, color, familial status, or disability, and other characteristics... (Gov. Code, § 65583, subd. (c)(5).)
As noted in Finding B1, the element requires revision to complete an assessment of fair housing. Depending upon the results of a complete analysis, the City must add or modify goals and actions. Goals and actions must specifically respond to the analysis and to the identified and prioritized contributing factors to fair housing issues and must be significant and meaningful enough to overcome identified patterns and trends.

Actions must have specific commitment, milestones, geographic targeting and metrics or numerical targets and, as appropriate, address housing mobility enhancement, new housing choices and affordability in higher opportunity or higher income areas, placebased strategies for community revitalization and displacement protection.

In addition, promoting housing mobility removes barriers to higher opportunity areas and strategically enhances access to housing choices and affordability. Among other factors, the City is entirely the highest resource category in access opportunity, wholly a concentrated area of affluence and predominantly consists of households with the highest median income, a stark contrast to the rest of the region. As a result, the element should include a significant and robust suite of actions (not limited to the RHNA) to promote housing mobility and increasing housing choices and affordability throughout the City.

D. Quantified Objectives
Establish the number of housing units, by income level, that can be constructed, rehabilitated, and conserved over a five-year time frame. (Gov. Code, § 65583, subd. (b)(1 & 2).)

City of Monte Sereno’s 6th Cycle Adopted Housing Element Page 9 March 31, 2023
The element does not respond to the previous finding. While the element includes quantified objectives for new construction by income level, it currently targets no objectives for rehabilitation and conservation and should be revised accordingly. For example, quantified objectives could incorporate numerical targets for ADU amnesty or anticipated outcomes from Programs U (Infrastructure Capital Improvements), V (Energy Conservation), W (Water Conservation) and X (Fair Housing Enforcement).

E. Public Participation
Local governments shall make a diligent effort to achieve public participation of all economic segments of the community in the development of the Housing Element, and the element shall describe this effort. (Gov. Code, § 65583, subd.(c)(9).) HCD’s prior review found the City must employ additional methods for public outreach efforts, particularly including lower-income and special needs households. In response, the element now describes how the City partnered with the West Valley Community Services (WVSC) but should also provide discussion about the comments and input and how that input was incorporated into the housing element. In addition, the City should continue to employ a variety of methods and target outreach to additional organizations that represent lower-income and special needs households. Finally, HCD received comments with many meaningful suggestions related to ADU production assumptions, ADU surveys, segregation and integration, and other issues related to zoning and affirmatively furthering fair housing.

HCD encourages the City to consider these comments.

Number Section HCD Second Review Comment HCD First Review Comment Second Review Staff Recommended Response/Revision A Review and
Revision -
Previous
Housing
Element Goals
and Policies
As noted in the prior review, the element should evaluate programs geared toward promoting housing variety and affordability, housing mobility and inclusion into and throughout Monte Sereno. Most notably, the element should acknowledge the depth and importance of facilitating multifamily housing within City boundaries and should evaluate the effectiveness of multifamily zoning and programs geared toward promoting housing variety, mobility, and affordability. In response, the element continues to report on permitted accessory dwelling units and notes an alternative project was approved instead of multifamily zoning. However, the element should clearly evaluate whether zoning was successful in promoting multifamily development, including affordability and if not, examine the lack of effectiveness to formulate an appropriate programmatic response. In addition, the element should analyze the progress and effectiveness of programs geared toward promoting housing variety (e.g., multifamily), mobility and affordability, as follows:
• Program HE-2.2 (Shared Housing): The element must still discuss whether the City proactively contacted agencies and if not, incorporate the lack of outreach into new programs. • Program HE-2.3 (ADU Monitoring): This Program had a specific trigger to revise multifamily zoning and densities if ADUs for all income were not constructed in specified time intervals. In response, the element indicates ADUs were constructed but should also discuss whether ADUs were permitted for all income groups and if not, discuss why multifamily zoning, including appropriate densities were not established. Then, the element should incorporate lessons learned in new programs.

The review requirement is one of the most important features of the element update. The review of past programs should describe progress in implementation of previous actions, including results compared to objectives and evaluate the effectiveness of actions to make appropriate adjustments in the current planning period. In several cases, the element appears to either omit or not describe and evaluate actions from the prior planning period. Most notably, the review and revise does not evaluate actions related to accommodating the regional housing need allocation (RHNA) (accessory dwelling units (ADU)), providing realistic opportunities for multifamily development and outreach to affordable housing developers, including nonprofits. These programs were geared toward promoting housing variety and affordability, housing mobility and inclusion into Monte Sereno. Yet, the current element does not evaluate past commitments or consider appropriate actions. For example, Program H-2.5 committed to establish multifamily zoning and if not successful, provide alternative multifamily opportunities and amend the element to correct inconsistencies. The Program also committed to make specific outreach to developers of housing affordable to lower income and special needs households and apply for funding. The current element includes some discussion that the multifamily zoning was repealed and instead a project was developed on a multifamily zoned site. The project occurred on a site that was committed to be zoned multifamily in the prior planning period for the same reasons (See Program HE 3.10 from the 4th cycle) – to promote a variety of housing types. Instead, the site was zoned at precariously marginal densities and that development ended up being single-family – not multifamily. The element omits the depth and importance of this commitment and did not discuss or evaluate the effectiveness of multifamily zoning, lack of alternative measures taken and outreach efforts. Other examples of programs geared toward promoting housing variety, mobility and affordability from the prior review include:

Program HE-2.2 (Shared Housing). Additional information to be added to explain that due to staff turnover, it cannot be determined when the City protactively reached out to various affordable housing developers. To ensure the annual proactive outreach occurs in the future, Program L will be updated to state that the proactive annual outreach will be reported on each year in the Annual Progress Report.

Program HE-2.3 (ADU Monitoring). Additional information will be added to the reporting of this program to clarify that the RHNA requirements for Very Low Income and Low Income levels were exceeded, Moderate Income levels were not met, and the overall Above Moderate Income level was exceeded (although not through ADUs alone).

Program HE-2.5 (Multifamily Zoning). Additional information will be added to clarify the multi-family housing project that was constructed included one 4- unit building, one 3-unit building, four 2-unit buildings, and 21 detached houses.

To ensure the annual proactive outreach occurs in the future, Program G will be updated to state that the proactive annual outreach will be reported on each year in the Annual Progress Report. Additionally, Program G will be updated to specify that a minimum of three sites will be identified and zoned for multi-family housing.
• Program HE-2.5 (Multifamily Zoning): As noted above, the element should evaluate the lack of effectiveness in establishing multifamily, including promoting affordability through outreach to developers of housing affordable to lower income and special need households.
• Program HE-4.1 (Special Needs): The element still must discuss attempts, success or effectiveness of outreach with nonprofit developers and revise new programs as appropriate. • Program HE-4.2 (Senior Housing): The element should evaluate the program’s appropriateness and determine whether it should be modified or continued into the current planning period. • Program HE-2.1 (Evaluate ADU): The element does not discuss changes to development standards, results of the survey or achieving the program objectives.
• Program HE-2.2 (Shared Housing): The element does not address contacting agencies or publicizing the program.
• Program HE-2.3 (ADU Monitoring): This program had a specific trigger to revise multifamily zoning and densities if ADUs for all income were not constructed in specified time intervals. The current element omits any discussion of these commitments.
• Program HE-4.1 (Special Needs): The element does not discuss the attempts, success or effectiveness of outreach with non-profit developers.
• Program HE-4.2 (Senior Housing): The Program’s focus was to develop innovative housing. Instead, the element discusses the City’s attempts at partnerships with the County Department of Aging.

Program HE 4.1 (Special Needs). Additional information will be added to explain that due to staff turnover, it cannot be determined when the City protactively reached out to various non-profit housing developers. To ensure the annual proactive outreach occurs in the future, Program G will be updated to state that the proactive annual outreach will be reported on each year in the Annual Progress Report.

Program HE4.2 (Senior Housing). Information will be added to describe how many senior members of the community have expressed a strong desire to agein-place on their property and how ADUs have allowed that. The ADUs have been a successful in meeting the changing needs of seniors and this program should be continued. Program K is included to continue to promote ADUs as housing options for seniors and to remove any constraints, such as considering an increase in the maximum size of an ADU to better accommodate the needs of seniors down-sizing.

In addition, the element still must provide an evaluation of the cumulative effectiveness of past goals, policies, and related actions in meeting the housing needs of special needs populations (e.g., elderly, persons with disabilities, large households, female-headed households, farmworkers, and persons experiencing homelessness) and revise programs as appropriate.

In addition, the element must provide an evaluation of the cumulative effectiveness of past goals, policies, and related actions in meeting the housing needs of special needs populations (e.g., elderly, persons with disabilities, large households, female-headed households, farmworkers, and persons experiencing homelessness) and revise programs as appropriate.

A description of the cumulative analysis of the 5th Cycle Housing Element programs is provided in the Summary section starting on sheet E-14. This section can be re-titled to "Cumulative Effectiveness" and expand on this analysis.

Department of Housing and Community Development
Comments on Draft Housing Element Dated March 31, 2023

Number Section HCD Second Review Comment HCD First Review Comment Second Review Staff Recommended Response/Revision B.1 Housing
Needs,
Resources, and
Constraints
Income and Racial Concentration of Affluence (RCAA): The element briefly mentions incomes in the City compared to the region and notes it is safe to speculate the City has neighborhoods that are RCAAs; however, the entire City is a RCAA and the element should incorporate this information. Please see HCD’s Affirmatively Furthering Fair Housing (AFFH) Data Viewer at https://affh-data-resources-cahcd.hub.arcgis.com/. The element should include specific analysis of income and RCAA at a regional level (City compared to the broader region).

The analysis should at least address trends, conditions, coincidence with other fair housing factors (e.g., race, highest resource, overpayment), effectiveness or absence of past strategies (e.g., lack of publicly assisted housing and lack of multifamily zoning), local data and knowledge and other relevant factors. The element must add or modify meaningful programs based on the outcomes of this analysis, including actions to improve housing mobility within and beyond City boundaries.

Local Data and Knowledge and Other Relevant Factors: The element now discusses past redlining in the broader Santa Clara County but should incorporate local data and knowledge and other relevant factors unique to the City. For example, the element could incorporate planning documents such as locally adopted ordinances, other elements of the general plan, infrastructure assessments, and mobility assessments to fully describe the impacts on fair housing patterns and trends. In addition, the element must discuss other relevant factors such as historical land use (zoning, initiatives, growth control that impacted socio-economic patterns.

Local Data and Knowledge and Other Relevant Factors: The element includes state and federal data but must utilize other sources of local data and knowledge to supplement the data and mapping including planning documents such as locally adopted ordinances, other elements of the general plan, infrastructure assessments, and mobility assessments to fully describe the impacts on fair housing patterns and trends. In addition, the element must discuss other relevant factors such as historical land use (zoning, initiatives, growth control) that impacted socio-economic patterns.

Additional historical context will be provided, including in the areas specifically identified by HCD.

Contributing Factors: Based upon a complete analysis, the element must re-assess and prioritize contributing factors to fair housing issues and add or modify programs as appropriate.

Contributing Factors to Fair Housing Issues: Upon a complete AFFH analysis, the element must assess and prioritize contributing factors to fair housing issues and add or modify programs as appropriate.

With the additional historical context included as noted above, the programs that address the contributing factors wilkl be prioritized with early start/completion dates.

B.2 Housing
Needs,
Resources, and
Constraints
Include an analysis of population and employment trends and documentation of projections and a quantification of the locality's existing and projected needs for all income levels, including extremely low-income households. (Gov. Code, § 65583, subd. (a)(1).)
Analyze any special housing needs such as elderly; persons with disabilities, including a developmental disability; large families; farmworkers; families with female heads of households; and families and persons in need of emergency shelter. (Gov. Code, § 65583, subd. (a)(7).)
Extremely Low-income (ELI) Households: The element now identifies the projected housing need for ELI households but must still analyze the existing needs of these households. Please see HCD’s prior review for additional information.

Extremely Low-Income (ELI) Households: While the element quantifies existing ELI households, it must also identity projected ELI housing needs and analyze their housing needs. The projected housing need for ELI households can be calculated by using available census data to determine the number of very low-income households that qualify as ELI households or presume that 50 percent of the RHNA for very low-income households qualify as ELI households. The analysis of existing ELI housing needs should address tenure, disproportionate impacts (overcrowding, overpayment, housing situations), comparisons to other income groups, effectiveness of past strategies and magnitude of needs (including projected).

Additional analysis will be added, including the assumption that 50% of the very low-income housing will be ELI households.

Housing Conditions: While the element includes information on the age of structures and lack of kitchen and plumbing facilitate, it must still estimate the number of units in need of rehabilitation and replacement. In addition, the element could consider discussion of any patterns from code enforcement as areas of more frequent enforcement to compliment the assessment of fair housing (See AFFH above, including local Housing Costs: The element currently utilizes American Community Survey (ACS) data to evaluate rental costs but should consider additional data sources to better reflect market conditions (e.g., Zillow, Apartments.com). If minimal rental data is available, the element could consider market conditions in comparable nearby communities.

Special Needs: While the element now includes some brief discussion of potential solutions to address special housing needs, it should still discuss trends and characteristics of housing needs to better formulate strategies and modify programs as appropriate.

Special Needs: While the element reports data on special needs groups, it must still include analysis including trends, characteristics, magnitude of need, resources, and potential strategies to mitigate identified housing issues.

Additional information about trends and characteristics of special need populations will be added as noted by HCD.

Number Section HCD Second Review Comment HCD First Review Comment Second Review Staff Recommended Response/Revision B.3 Housing
Needs,
Resources, and
Constraints
Adequate Sites and Accessory Dwelling Units (ADU): As noted in the prior review, the element may demonstrate adequate sites to accommodate the regional housing need allocation (RHNA) entirely with ADUs, however, given the reliance on one strategy, it must include robust and commensurate analysis or utilize alternative strategies. The element still proposes to accommodate essentially the entire RHNA for all income groups with ADUs and as a result, still must include robust and commensurate analysis, as follows:
• Calculation of Past Trends: As noted in the prior review, given the reliance on ADUs, the element should utilize averages based on all years since 2018. In response, the element continues to assume 225 ADUs over the planning period. These assumptions far exceed trends since 2018 and even exceed more recent trends since 2020 (approximately 12 to 15 ADUs per year). The element must rescale ADU assumptions in line with recent trends. Please see HCD’s prior review for additional information.
• Affordability: The element generally was not revised to address this finding. In addition, the element should address to comments submitted on this and prior review. Please see HCD’s prior review for additional information. • Other Relevant Factors: The element now includes information on the availability of ADUs for rent; stating that 93 percent of past ADUs were made available for rent. As a result, the element should incorporate this information into ADU assumptions for the planning period.

If the above analyses necessitate identifying sites to accommodate the RHNA, including by income group, the identification of sites and analysis must meet all requirements pursuant to Government Code section 65583.2, including but not limited to parcel listing, map of identified sites, identified sites and AFFH, environmental and other constraints, infrastructure, size of sites, nonvacant sites, calculation of realistic residential capacity and appropriate zoning to accommodate housing for lower-income households. For more information, please see the Building Blocks at https://www.hcd.ca.gov/planning-and-community-development/housing-elements/building-blocks.

Adequate Sites and Accessory Dwelling Units (ADU): The element identifies a RHNA of 193 units, including a lower-income RHNA of 83 units and moderate-income RHNA of 31 units and proposes to accommodate essentially the entire RHNA for all income groups with ADUs. While the element may demonstrate adequate sites entirely with ADUs, given the reliance on one strategy, it must include robust and commensurate analysis, as follows:
• Calculation of Past Trends: The element excludes 2020 permit numbers and then average permits to approximately 16 ADUs per year. However, even this calculation is incorrect and appears to exclude 2018 and 2020 numbers. Given the reliance on ADUs, the element should utilize averages based on all years since 2018. • Affordability: The element uses the Association of Bay Area analysis of ADU rents. However, these assumptions should consider public comments on this review and market rents from comparable and nearby communities. • Other Relevant Factors: The analysis, policies, and programs and ADU assumptions for the planning period should account for the availability of ADUs for rent. This is particularly important given the reliance on ADUs and lack of housing choices, affordability and mobility into the City. • Owner Intentions and Past Surveys: The element concludes the City’s robust outreach and incentives have resulted in 225 residential owners expressing their intentions in developing ADUs in the planning period.

However, the element must include substantial evidence to support this conclusion, especially considering even the most favorable recent trends would result in a significantly lesser number of ADUs in the planning period. For example, the element should discuss the survey tool, how the survey was administered, list the actual responses, and evaluate the likelihood of owners converting intentions into permitted ADUs in the planning period, including availability for rent. This analysis could incorporate past surveys and analyses as a result of programs in the prior planning period.

Calculation of Past Trends - Starting on page 4-6, a description of the ADU strategy is detailed. The ADU projections are higher than the historical averages as we have written documentation from 225 property owners stating their intention to construct an ADU on their property in the next seven years.

Incentives are provided to encourage this construction. The written intentions from property owners has been used to develop the site inventory. However, in April 7 meeting, HCD staff stated they are comfortable with projecting 20 ADUs each year of the planning perior = 160 ADUs. The document will be updated to adjust the ADU projections as directed by HCD.

Affordability - the affordability projections for ADU is discussed starting on page 4-6. Page 4-9 includes a table showning the results of annual survey's conducted by the city showing how ADUs constructed are used. This shows specifically what is happening in Monte Sereno. As part of the APR preparation each year, staff surveys property owners who received a building permit for a new ADU in the last year to ask how the building is used and what rent is charged. This information is used to report the affordiability levels. For the ADUs where the surveys are not returned, we break out the affordability based on the ABAG Technical Memo Using ADUs to Meet RHNA (30% very low, 30% low, 30% moderate, 10% above moderate). This information will be added to the Housing Element.

Other Relevent Factors: We will clarify that survey results show that 93% of ADU are used as dwelling units.

Environmental Constraints: While the element includes some general discussion of environmental constraints, it should also relate that discussion to the development of ADUs, including any other known constraints that preclude development in the planning period.

Electronic Sites Inventory: Although the City has submitted electronic sites inventory as described in the prior review, if any changes occur, the City should submit revisions as part of any future re-adoption or submittal. Please see HCD’s housing element webpage at https://www.hcd.ca.gov/planning-and-community-development/housing-elements for additional information.

Electronic Sites Inventory: For your information, pursuant to Government Code section 65583.3, the City must submit an electronic sites inventory with its adopted housing element. The City must utilize standards, forms, and definitions adopted by HCD. Please see HCD’s housing element webpage at https://www.hcd.ca.gov/planningand-community-development/housing-elements for a copy of the form and instructions. The City can reach out to HCD at [email protected] for technical assistance.

Revised electronic sites inventory will be included in the next submittal.

Multifamily: While the element was updated to include a program to “analyze” opportunities for multifamily zoning, it still must identify and analyze significant and realistic opportunities for multifamily development in the planning period as part of this update. The identification and analysis should address sites, any known constraints or impediments, parcel size, appropriateness of densities and methodology for calculating residential capacity. Based on the outcomes of this analysis, the element must include programs to make sites available with appropriate zoning, allowable densities (e.g., 20 units per acre) and development standards to encourage and facilitate multifamily development at maximum allowable densities.

Multifamily: While the element mentions that the City has established a multifamily zoning district, it must still discuss how multifamily zoning encourages and facilitates a variety of housing types including density, development standards and permit procedures. In addition, the element must identify significant and realistic opportunities for multifamily development in the planning period, including but not limited to identification of sites, any known constraints or impediments, parcel size, appropriateness of densities and methodology for calculating residential capacity. Based on the outcomes of this analysis, the element must include programs to identify sites and appropriate zoning (e.g., 20 units per acre) and development standards to encourage and facilitate multifamily development.

This comment will be addressed as directed by the City Council.

Number Section HCD Second Review Comment HCD First Review Comment Second Review Staff Recommended Response/Revision • Emergency Shelters: HCD’s prior review found the element should clarify that by-right is without discretionary action and add a discussion of acreage, parcel sizes. reuse and redevelopment opportunities and proximity to transportation and services as well as evaluate development standards. In response, the element now states only one site is available; a school site. The element must still clarify whether emergency shelters are permitted without discretionary action and should demonstrate how the one school site could accommodate at least one emergency shelter or identify other zones and capacity. In addition, the element must still analyze development standards, including parking requirements and add or modify programs to address any constraints.

Please be aware Chapter 654, Statues of 2022 (AB 2339), adds specificity on how cities and counties plan for emergency shelters and ensure sufficient and suitable capacity. Future submittals of the housing element may need to address these statutory requirements. For additional information and timing requirements, please see HCD’s memo at https://www.

Emergency Shelters: While the element states that emergency shelters are allowed by-right, it should clarify that by-right is without discretionary action. In addition, the element should add a discussion of acreage, parcel sizes. reuse and redevelopment opportunities and proximity to transportation and services as well as list and analyze development standards, including parking. If constraints are identified, the element must add or revise programs.

Additional analysis of development standards for emergency shelters will be included in the revised document.
• By-right Permanent Supportive Housing: The element now includes a Program S (Allow Single Room Occupancy) to permit supportive housing by-right in the Public zoning district. However, by-right permanent supportive housing shall be a use by-right in zones where multifamily and mixed uses are permitted, including nonresidential zones permitting multifamily uses pursuant to Government Code section 65651. Future efforts to establish multifamily zoning should comply with these requirements.

By-Right Permanent Supportive Housing: By-right permanent supportive housing shall be a use by-right in zones where multifamily and mixed uses are permitted, including nonresidential zones permitting multifamily uses pursuant to Government Code section 65651. The element must demonstrate compliance with this requirement and include programs as appropriate.

Program S will be modified as noted in the comment by HCD.

Single Room Occupancy (SRO) Units: While the element includes some information on SROs, it must still discuss zoning, development standards and permitting procedures. This is particularly important given the lack of implementation in the prior planning period and programs should be added or modified to establish appropriate zoning and capacity early in the planning period.
• Accessory Dwelling Units: Based on a cursory review, the City’s ADU ordinance does not comply with ADU law. The element must include a program to amend the ADU ordinance and comply with ADU law. HCD will send additional information upon a complete review of the ordinance under separate cover.

Accessory Dwelling Units: The element must demonstrate that the City’s ADU ordinance is incompliance with state law and add or modify programs to comply with State ADU Law.

A program will be added to address the comment by HCD.
• Manufactured Housing: The element now clarifies that manufactured homes are permitted in the same manner as conventional homes and a specific standard will be added to confirm manufactured homes will be reviewed consistent with state law when the City updates its objective design standards. The element should modify programs to reflect this confirmation in the update of objective design standards.

Manufactured Housing: Manufactured homes that are built on a permanent foundation must be allowed in the same manner and in the same zones as conventional or stick-built structures. Specifically, manufactured homes on a permanent structure should only be subject to the same development standards as a conventional singlefamily residential dwelling. The element must demonstrate consistency with this requirement or add or modify programs as appropriate.

A program will be added to address the comment by HCD.

B.4 Housing
Needs,
Resources, and
Constraints
Land Use Controls: HCD’s prior review generally found the element must evaluate all development standards and land use controls, impacts of a predominant large lot land use patter and compliance with Government Code sections 65852.21 and 66411.7 (SB 9). However, the element must still be revised, as follows:
• Development Standards and Land Use Controls: The element was not revised to address this requirement. Please see HCD’s prior review for additional information.
• Lack of a Variety of Lot Sizes: The element now notes that a majority of the City is large lots over two acres and as a result, should include programs to provide a variety of lot sizes – beyond complying with State law. Programs should be specific and not limited to reviewing options.
• Government Code sections 65852.21 and 66411.7 (SB 9): The element now includes Program E (SB 9 Regulations) to review regulations. However, the Program should specifically commit to amend zoning and comply with state law.

Land Use Controls: While the element generally describes land-use controls, it must evaluate all development standards and other land use controls for impacts on housing supply (number of units), cost, feasibility, timing and ability to achieve maximum densities. For example, the analysis should address how density is defined and any and all standards that regulate intensity, especially for multifamily housing and parking.

In addition, much of the City consists of large lots and there are no multifamily units in the City. While the element lists four residential zoning districts, none of the districts allow more than eight units per acre and, while the City does have a single-family zone allowing five units per acre, most single family zoning is no more than two units per acre. Essentially, there is a lack of a variety of minimum lot sizes and allowable densities. The lack of a variety of lot sizes and densities can impact housing supply, choices and affordability. As a result, the element should include analysis of the impacts of an apparent predominant large lot land use pattern and include programs as appropriate.

Finally, the element should include a discussion of how the City complies with Government Code sections 65852.21 and 66411.7 (SB 9) and add or modify programs (Program E) as appropriate to comply with state law.

Additonal analysis on the current development standards and land use controls will be added. Program E revisions will be based on direction provided by the City Council.

Number Section HCD Second Review Comment HCD First Review Comment Second Review Staff Recommended Response/Revision Fees and Exaction: The element lists total development fees for single-family and multifamily development (Table C-4) but should also list the various fees that comprise the total fees per unit. For example, the element should list and evaluate the various impact fees per unit for impacts on housing cost.

Processing and Permit Procedures: The element generally was not revised to address HCD’s prior finding. Please see HCD’s prior review for additional information.

Processing and Permit Procedures: While the element generally describes processing and permitting procedures, it must still list and evaluate site development permit and design review, including typical approval findings, typical number of hearings, and timing and then evaluate impacts on housing supply, cost, feasibility and approval certainty.

Permit processing timeframes are included, but this information can be highlighted. Also, additional information can include the standard Conditions of Approval for new housing projects.

Streamlining Provisions: HCD’s prior review found the element should clarify whether the City has procedures consistent with streamlining procedures pursuant to Government Code section 65913.4 (SB 35) and include programs as appropriate.

In response, the element now concludes the City is in compliance with RHNA and is not subject to SB 35. However, these conditions may change and the element should add a program with specific commitment to establish a written procedure to comply with Government Code section 65913.4 by a specified date.

Streamlining Provisions: The element should clarify whether the City has procedures consistent with streamlining procedures pursuant to Government Code section 65913.4 (SB 35) and include programs as appropriate.

A program will be added to address the comment by HCD.

Constraints on Housing for Persons with Disabilities: The element must still include an analysis of potential constraints on housing for persons with disabilities, as follows:
• Reasonable Accommodation: The element indicates the City has a reasonable accommodation procedure that involves a “hearing” (p. C-10). The element should clarify if this is a public hearing and if so, evaluate the impacts as a potential constraint on housing for persons with disabilities. In addition, the element now lists several decision-making criteria but should also evaluate some of those criteria as constraints on housing for persons with disabilities. For example, decisionmaking criteria such as demonstrating a special need, benefit, compatibility with surrounding uses, alternative accommodations and that a household with a disability is truly a household appear to be a constraint. The element should evaluate these decision-making criteria and add or modify programs as appropriate. • Group Homes for Seven or More Persons: The element now explains group homes for seven or more persons are allowed in all residential zones, however, also mentions these uses are limited to licensed homes. As a result, the element should include a program to amend zoning and remove the licensing requirement.

Constraints on Housing for Persons with Disabilities: The element must include an analysis of potential constraints on housing for persons with disabilities, as follows:
• Reasonable Accommodation: The element indicates the City has a reasonable accommodation procedure but must still describe these procedures including approval findings and evaluate potential constraints on housing for persons with disabilities.
• Family Definition: The element concludes the City has a definition of family that does not limit the number of persons. However, the element should describe the actual definition of family and evaluate its potential impacts, including impacts on unrelated persons.
• Group Homes: The element broadly mentions residential care homes are allowed but it should specifically identify which zones allow the uses, how the uses are allowed (e.g., permit type), any other relevant factors and evaluate potential constraints. The analysis should be conducted for both group homes for six or fewer persons and seven or more persons.

A program will be added to update the Municpal Code as noted by HCD.

Local Ordinances: The element must specifically analyze locally adopted ordinances such as inclusionary ordinances or short-term rental ordinances that directly impact the cost and supply of residential development.

Zoning and Fees Transparency: The element must clarify its compliance with new transparency requirements for posting all zoning and development standards for each parcel on the jurisdiction’s website pursuant to Government Code section 65940.1(a)(1).

Number Section HCD Second Review Comment HCD First Review Comment Second Review Staff Recommended Response/Revision C.1 Housing
Programs
To have a beneficial impact in the planning period and achieve the goals and objectives of the housing element, programs must have discrete timing early in the planning period (e.g., at least annually or by 2025) and specific commitment to housing outcomes (e.g., refrain from language such as “explore”, “develop”, “consider”). Examples of programs to be revised include:
• Program E (Review SB9 Regulations): As noted in the prior review, the Program should go beyond reviewing and amending as needed. The Program should at least clearly commit to comply with law and could consider additional modification that further enhance the state law.
• Program G (Develop Incentives): The updated Program does not respond to the previous finding. Especially given the lack of progress in the previous planning periods, this Program must specifically, annually reach out to affordable developers and apply for funding in addition to “at the request of the developer”. Additionally, the Program should include quantified objectives and should be further modified based on the outcomes of complete analyses as noted in Findings A and B. Please see HCD’s prior review for additional information. • Program I (Accessory Dwelling Units): The updated Program does not respond to the previous finding. The Program should clearly commit to removing restrictive requirements and specifically revise the ADU ordinance in compliance with ADU law. In addition, the Program now only commits to survey affordability and use but should survey affordability, use and production. Further, the Program only commits to take alternative action at a mid-cycle review of the housing element if construction goals or affordability are not met. Alternative action should be taken annually within six months of an annual review and should be triggered by production, affordability and availability or use.

To have a beneficial impact in the planning period and achieve the goals and objectives of the housing element, programs must have discrete timing early in the planning period (e.g., at least annually or by 2025) and specific commitment to housing outcomes (e.g., refrain from language such as “explore”, “develop”, “consider”) The programs will be updated as noted by HCD. Additional commitments may be included in Program E based on direction from the City Council.

C.2 Housing
Programs
As noted in Finding B3, the element does not include a complete site analysis, therefore, the adequacy of sites and zoning were not established. Based on the results of a complete sites inventory and analysis, the City may need to add or revise programs to address a shortfall of sites or zoning available to encourage a variety of housing types.

In addition, the element now includes Program Q (Analyze Multifamily Housing) to analyze sites and analyze the potential application of SB 10. However, this Program generally does not commit to any meaningful outcomes in the planning period, especially when considering the past lack of effectiveness in promoting multifamily and affordability. As noted in the prior review, this Program should be modified based on the outcomes of a complete analysis as described throughout this review. The Program must at least commit to make sites and appropriate zoning (e.g., 20 units per acre) available with development standards to encourage and facilitate multifamily development at maximum densities and may need to address specific requirements related to a shortfall of adequate sites, including rezoning sizes to meet by-right requirements.

As noted in Finding B3, the element does not include a complete site analysis; therefore, the adequacy of sites and zoning were not established. Based on the results of a complete sites inventory and analysis, the City may need to add or revise programs to address a shortfall of sites or zoning available to encourage a variety of housing types. In addition, the element should be revised as follows:
• Multifamily Zoning: As noted in Finding B3, the element must include a program to identify sites and appropriate zoning (e.g., 20 units per acre) and development standards to encourage and facilitate multifamily development.
• Program P (Low Barrier Navigation Centers): The Program should specifically commit to permit low barrier navigation centers without discretionary action and in compliance with Government Code section 65661.

This comment will be addressed as directed by the City Council.

C.3 Housing
Programs
The element was not revised to address this finding. In addition, programs must be revised based on the outcomes of a complete analysis as described in Findings A and B.

The element must include a program to assist in the development of adequate housing to meet the needs of lower and moderate-income households, including ELI and Special Needs households. These actions should be significant and specific, given the lack of implementation and results in the prior planning periods. Examples of actions include proactive an annual outreach to developers of affordable housing, assisting with funding, supporting funding applications, land acquisition, priority processing, fee waivers, concessions and incentives beyond State Density Bonus Law, assistance with infrastructure and site improvements and monitoring and adjustment at least annually.

Based on the additional AFFH analysis and outreach by West Valley Community Services, programs will be modified as necessary.

Number Section HCD Second Review Comment HCD First Review Comment Second Review Staff Recommended Response/Revision C.4 Housing
Programs
As noted in Findings B4, the element requires a complete analysis of potential governmental and nongovernmental constraints. Depending upon the results of that analysis, the City may need to revise or add programs and address and remove or mitigate any identified constraints.

In addition, as noted in Finding B4, the City lacks a variety of minimum lot sizes and densities and the element should add programs to create a variety of lot sizes, increased densities, and modified development standards to facilitate maximum densities.

As noted in Findings B4 and B5, the element requires a complete analysis of potential governmental and nongovernmental constraints. Depending upon the results of that analysis, the City may need to revise or add programs and address and remove or mitigate any identified constraints.

In addition, as noted in Finding B4, the City lacks a variety of minimum lot sizes and densities and the element should add programs to create a variety of lot sizes, increased densities, and modified development standards to facilitate maximum densities.

Additional analysis on the governmental contraints will be added, including a review of minimum development standards noted.

C.5 Housing
Programs
As noted in Finding B1, the element requires revision to complete an assessment of fair housing. Depending upon the results of a complete analysis, the City must add or modify goals and actions. Goals and actions must specifically respond to the analysis and to the identified and prioritized contributing factors to fair housing issues and must be significant and meaningful enough to overcome identified patterns and trends. Actions must have specific commitment, milestones, geographic targeting and metrics or numerical targets and, as appropriate, address housing mobility enhancement, new housing choices and affordability in higher opportunity or higher income areas, place-based strategies for community revitalization and displacement protection.

In addition, promoting housing mobility removes barriers to higher opportunity areas and strategically enhances access to housing choices and affordability. Among other factors, the City is entirely the highest resource category in access opportunity, wholly a concentrated area of affluence and predominantly consists of households with the highest median income, a stark contrast to the rest of the region. As a result, the element should include a significant and robust suite of actions (not limited to the RHNA) to promote housing mobility and increasing housing choices and affordability throughout the City.

As noted in Finding B1, the element requires a complete AFFH analysis. Depending upon the results of that analysis, the City may need to revise or add or modify goals and actions. Goals and actions must specifically respond to the analysis and to the identified and prioritized contributing factors to fair housing issues and must be significant and meaningful enough to overcome identified patterns and trends. Actions must have specific commitment, milestones, geographic targeting and metrics or numerical targets and, as appropriate, address housing mobility enhancement, new housing choices and affordability in higher opportunity or higher income areas, place-based strategies for community revitalization and displacement protection. For example, the element must add significant and meaningful housing mobility actions to overcome the existing patterns in the City related to the broader region.

Based on the additional AFFH analysis and outreach by West Valley Community Services, programs will be modified as necessary.

D Quantified
Outreach
The element does not respond to the previous finding. While the element includes quantified objectives for new construction by income level, it currently targets no objectives for rehabilitation and conservation and should be revised accordingly. For example, quantified objectives could incorporate numerical targets for ADU amnesty or anticipated outcomes from Programs U (Infrastructure Capital Improvements), V (Energy Conservation), W (Water Conservation) and X (Fair Housing Enforcement).

While the element includes quantified objectives for new construction by income level, it currently targets no objectives for rehabilitation and conservation and should be revised accordingly. For example, quantified objectives could incorporate numerical targets for ADU amnesty or anticipated outcomes from Programs Q (Housing Maintenance), R (Infrastructure Capital Improvements), S (Energy Conservation), T (Water Conservation) and U (Fair Housing).

Information will be added to the quanitified objectives as noted by HCD.

E Public
Participation
HCD’s prior review found the City must employ additional methods for public outreach efforts, particularly including lowerincome and special needs households. In response, the element now describes how the City partnered with the West Valley Community Services (WVSC) but should also provide discussion about the comments and input and how that input was incorporated into the housing element. In addition, the City should continue to employ a variety of methods and target outreach to additional organizations that represent lower-income and special needs households. Finally, HCD received comments with many meaningful suggestions related to ADU production assumptions, ADU surveys, segregation and integration, and other issues related to zoning and affirmatively furthering fair housing. HCD encourages the City to consider these comments.

The element should employ additional methods of public outreach and participation moving forward to include all segments of the community in the public participation process, including engaging organizations which represent lower-income and special needs groups. In addition, the element should describe comments and how they were incorporated into the housing element.

An appendix will be added that includes all comments received and notes how each has been addressed.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

From: Zhang Xiaoyu
To: Diana Perkins; Bryan Mekechuk; City Manager
Subject: advocate for changes of SB9 ordinance for the benefit of housing element Date: Monday, June 5, 2023 11:00:37 PM
Dear members of the Monte Sereno City Council,
I am Xiaoyu (Johnny) Zhang, a resident of Monte Sereno residing at 17795 Vineland Ave. I am writing to emphasize the urgent need for modifications to the existing SB9 ordinance. My purpose is to advocate for changes that would benefit my family and positively impact the entire community of Monte Sereno. Allow me to elaborate on the reasons behind my request.

The current SB9 ordinance limits construction on splitter lots to only two 800 sqft buildings, which is impractical for anyone in Monte Sereno. The lack of SB8 applicants clearly indicates that such small houses are not desired by residents.

Despite our previous requests for modifications, we are still awaiting action from the city. Furthermore, the denial of Monte Sereno's 6th cycle of house elements by HCD (Housing and Community Development) underscores the need to reopen discussions on modifying the SB9 ordinance.

While initially there may be concerns about SB9 resulting in smaller lots in Monte Sereno, a closer examination reveals its value in effectively utilizing vacant land and enhancing the comprehensiveness of house element plans. Cities like Atherton, striving for HCD approval of their house element proposals, have adopted a comprehensive approach that includes high-density housing, re-zoning, ADUs, and SB9. While residents may have reservations about leveraging SB9 in our city, failing to comply with and obtain HCD certification for our house element plan would expose us to a worse outcome : the Builder's Remedy (AKA the zoning holiday), allowing up to six houses per parcel with limited intervention from the city. I ask all esteemed council members and fellow Monte Sereno neighbors who may be affected to consider this: would you prefer your neighbor's property to be divided into two houses that blend well with the surrounding community or have six houses built on their lot? Undoubtedly, the former option is preferable.

In our neighborhood, 17795 Vineland Ave, my next-door neighbor owns a complete empty 1.5-acre lot. Additionally, there is another family on Robin Anne Ln with at least a half-acre vacant lot, and another family with a similar layout lot on Vineland Ave. Without certifying Monte Sereno's housing element by the HCD, these lots are all potentially available for external builders to construct high-density complexes using the builder's remedy. This is precisely what we are trying to prevent, and we are united as a community in this effort.

By sensibly modifying the SB9 ordinance, we can strike a balance between

effectively utilizing available land and preserving the character of our community.

This approach would make our house element package more comprehensive and align with the plans adopted by other cities. It also increases our chances of securing HCD approval for our house element proposal. I urge you to consider the long-term benefits and make the necessary modifications to the SB9 ordinance.

Thank you for your time and attention.

Sincerely,
Johnny Zhang

From: Alex Qiao
To: Diana Perkins
Cc: City Manager; Bryan Mekechuk
Subject: Comment about housing element update.

Date: Monday, June 5, 2023 9:25:19 PM
Dear Diana,
Please include the comment to the housing element discussion in the upcoming Council meeting. Thanks in advance!
Alex
Dear Council Members, City planner and City manager,
I hope this message finds you well. As an engaged member of the Monte Sereno community, I would like to sincerely draw your attention to an important matter regarding our city's housing element. It has come to our attention, based on the comments provided by the Department of Housing and Community Development (HCD), that Monte Sereno's current housing element does not substantially comply with the State Housing Element Law. It is evident that relying solely on Accessory Dwelling Units (ADUs) will not be sufficient to meet the requirements set forth by the HCD. The City need to provide a variety of options, develop a comprehensive strategic proposal, and conduct robust and commensurate analysis to effectively meet the Regional Housing Needs Allocation (RHNA).

We have previously expressed our concerns and would like to reiterate our suggestion once again. Firstly, the SB9 ordinance should be amended to address the impracticality of the current house development standard in Monte Sereno, which limits homes to 800 square feet.

Revising this restriction will better accommodate residents' needs and offer more viable housing options for those utilizing SB9. Secondly, rezoning some R144 parcels to R120 should be incorporated into our housing strategy. This adjustment will allow for efficient land use, promote a balanced housing mix, and effectively address our community's housing demands.

The above considerations align with HCD's guidance and offer practical solutions that fit within the missing middle housing concept. Additionally, we should discuss and explore other alternative options, as clinging to the status quo will not advance Monte Sereno's housing element.

I kindly urge the City to thoroughly evaluate these options and promptly incorporate them into Monte Sereno's 6th cycle housing element during the upcoming council meeting on June 6th.

It is crucial that we address this issue without any delay or deferral. Failing to comply with state regulations could trigger the builder's remedy, as outlined by the California Housing Accountability Act. This means that if our city does not adequately plan for the required number of homes, we will be obligated to approve any housing project that meets the affordability requirements, even if it is a high density project. We must not underestimate the potential consequences of non-compliance, as they could significantly impact our community.

While high-density housing projects may align with the HCD's goals, we need to carefully assess their potential effects and prioritize alternatives that comply with state regulations while

benefiting our community and addressing its unique needs.

Allow me to share my personal experience to illustrate the importance of embracing SB9.

My family owns a one-acre lot, half of which is currently vacant and flat. Our aspiration is to divide the vacant portion and build a home that seamlessly integrates into our community, providing comfort and support to our beloved family members. To finance this project, we plan to sell the other half of our property, where our current home stands. We firmly believe that this proposal makes financial sense and aligns with city planning principles. However, the current form of the City SB9 ordinance poses an obstacle, restricting the size of new homes to 800 square feet, which is unreasonable for a half-acre lot. We earnestly hope that the city can modify the ordinance to remove these design restrictions and apply the same standards as regular single-family houses, avoiding discriminatory standards for SB9 split parcels. It is important to emphasize that our objective is to utilize the provisions of SB9 to develop homes that meet our families' needs and it will align with the characteristics of the what a home be in a R120 zone in Monte Sereno. Given the uniqueness of our city, with its large lot sizes, this represents a typical and appropriate use case for SB9 in Monte Sereno. Our aim is to create a housing landscape that preserves the neighborhood's character and avoids the creation of highdensity regions, which could be triggered by the builder's remedy and may not be wellreceived by the community. This approach aligns with our goal of maintaining the integrity of our neighborhood while meeting our housing needs. That is what SB9 meant for Monte Sereno,
In light of our real-life scenario and the needs of many families in Monte Sereno and the broader region, I sincerely believe that now is the opportune time to discuss and prioritize the SB9 ordinance modification. Neglecting the real demand and refusing to address this issue would be a passive-aggressive approach to our housing element concerns. Our proposed changes not only align with the purpose of the housing element but also contribute significantly to a more inclusive and vibrant neighborhood. I urge the City Council to give favorable consideration to our suggestions, taking into account the latest guidance from HCD, and make the necessary modifications to Monte Sereno's housing element. This demonstrates our unwavering commitment to addressing housing needs and promoting a prosperous and harmonious future for our community.

Thank you for your time, attention, and understanding. We have faith in your dedication to the well-being of Monte Sereno.

Sincerely,
Alex,
Resident on Vineland Ave.

From: [email protected]
To: Steve Leonardis; Diana Perkins; Gloisy Gonzalez-Langarica; [email protected]; Burton Craig; Javed Ellahie; [email protected]; Rowena Turner; Evert Wolsheimer Subject: Public Comments for June 6 council meeting
Date: Monday, June 5, 2023 12:31:30 PM
Monte Sereno City Council Members,
I'd like to send this public statement and question ahead of tomorrow's council meeting regarding the open business on the Housing Element. Could you recognize this communication and respond with clarity?

1. In the agenda documentation for the June 6 meeting, the following statement is noted:
" In January 2022, the City Council
adopted an ordinance to incorporate the state SB9 law into the Municipal Code. In that ordinance, each new dwelling unit constructed under the SB9 regulations is limited to 800 square feet. "
While I understand that anyone would be hard pressed to find a Monte Sereno resident supporting a goal of density (20 units on an acre), we must face the reality that managing growth allows us to manage the end result. A self imposed restriction of this significance, in my opinion, is a clear road block for development. We all would like to keep Monte Sereno as the hidden, country feel gem that it is but the state of California clearly has other ideas.

If the council is sincere about encouraging "managed development" to meet the housing element requirements, should there not be consideration of modifying this component of our current building restrictions? For example, a resident looking to sub divide an acre property could create two half acre lots, put a 2800 square foot home on each, and an 800 sq foot ADU. The ADUs could be used for elderly parents on fixed income, caregivers, traveling nurses, teachers, students, all likely to qualify for the low income category. And the owner might have a fighting chance for the build numbers to pencil out. Restricting to single 800 sq ft buildings does not seem to represent the spirit of the exercise and it will not financially make sense for the land owner. Dealing with two homes and two ADUs sure seems like a better compromise than 20 homes on that acre.

2. In the comments section of the Housing Element response, it states that the "Staff recommends that the City Council provide direction on committing to rezoning two properties within the city to multifamily housing using the SB10 laws. Such rezoning will need to be completed by January 31, 2024.

I am unable to find in any of the documentation which parcels are being identified for this discussion. Can you advise?
Regards,
Michelle Walsh

From: Tony Jeans
To: Gloisy Gonzalez-Langarica
Subject: Fwd: Housing Element Update
Date: Friday, June 2, 2023 10:12:12 AM
Attachments: Housing Element SB-9 6-1-23.pdf
17785 Vineland 6-1-23 SB-9 Lot Split.pdf
Tony
Sent from my iPhone
Begin forwarded message:

From: Tony Jeans <[email protected]>
Date: June 2, 2023 at 9:59:01 AM PDT
To: Diana Perkins <[email protected]>
Subject: Housing Element Update
Diana:

I would appreciate it if this could be added to the Housing Element Packet, if there is time.

Thanks You
Tony

T.H.I.S. DESIGN & DEVELOPMENT P.O.Box 1518, Los Gatos, CA 95031 Tel: 408.354.1863 Fax: 408.350.1823
City of Monte Sereno
18041 Saratoga Ls Gatos Rd
Monte Sereno CA 95030
June 1st, 2023
Housing Element & SB-9 Projects – Moving Forward
Dear Council, S&A Committee and Planning:

I am not sure where to start, but I want to solicit your help in resolving this issue.

In short, we have submitted an application for an SB-9 Lot Split. It is for one of several clients in similar positions who would benefit from SB-9 if the City had chosen to implement the law as it was intended. You will recall that the ordinance is punitive in the restrictions on any “residence” that can be built on a lot created using SB-9.

In this instance the property in question is one of the R1-44 parcels on Vineland that was seriously considered by the City in the early ‘Housing Element’ Deliberation for potential re-zoning to R1:20. That is exactly what my client is proposing. Using SB-9 we are splitting the property into 2 separate parcels. It is their intent to submit a subsequent application for their new home, to be built on the newly created vacant lot. They will live in the existing home while the new one is being built and then sell it when they move in.

We have spoken to the immediate neighbors, who have no objection – in fact they are supportive of building a reasonable sized [4,500 sq ft] new house and an ADU-sized Accessory building and like the fact that we are purposely abiding by all Monte Sereno R1:20 zoning rules rather than the more liberal SB-9 rules to maintain neighborhood character. The neighbors would seriously object to any attempt to build only 2 small 800 sq ft units on the property, as it would not be in keeping with the community feel.

So – where do we go from here? At present such an application would be in violation of the City SB-9 ordinance. But [in my belief] the SB-9 Ordinance is in violation of SB-9 law.

At present, prior to Housing Element confirmation, we could simply submit the house as a building application, which is not ideal. Could the City please prioritize revisiting SB-9 so that reasonable projects can be designed in a non-confrontational manner? It might also aid with ‘Housing Element’ diversification, which needs to be addressed too.

Thank You
Tony Jeans
Attachments: Vineland SB-9 Lot Split Application example.

DRAWN
CHECKED THIS DOCUMENT CONSTITUTES ORIGINAL COPYRIGHTED MATERIAL PRODUCED AS AN INSTRUMENT OF SERVICE BY THE DESIGNER, TONY JEANS. THESE DOCUMENTS SHALL NOT BE UTILIZED AND/OR DUPLICATED

WITHOUT THE PERMISSION, IN
WRITING, OF THE DESIGNER. THE

DESIGN REMAINS THE SOLE
PROPERY OF T.H.I.S. DESIGN AND/

OR TONY JEANS
T.H.I.S.

DESIGN AND DEVELOPMENT
P.O. BOX 1518, LOS GATOS, CA 95031
408 354 1833
REVISIONS Zhang and Qiao Family 17795 Vineland Ave
Monte Sereno CA 95030
DRAWN T.H.I.S. DESIGN AND DEVELOPMENT
5-3-2023
5-31-2023
T1Title Sheet

A PROPOSED LOT SPLIT AT
17795 Vineland Ave
Monte Sereno, CA
by
T.H.I.S. DESIGN

DRAMATIS PERSONAE
Owner: The Zhang and Qiao Family
17795 Vineland Ave
Monte Sereno, CA 95030
Designer: THIS Design by Tony Jeans
P.O. Box 1518
Los Gatos, CA 95031
Civil Engineer: Westfall Engineers, Inc.
14583 Big Basin Way
Saratoga, CA 95070
Soils Engineer: Pollak Engineer
61 East Main St. Suite D
Los Gatos, CA 95030

VICINITY MAP

TABLE OF CONTENTS

1. Title Sheet - T1

2. Topo

3. Google Maps Aerial View

4. Tentative Map

5. Site Plan - C1

6. Parcel Map Cover Sheet

7. Parcel Map

ABBREVIATIONS AND SYMBOLS
< less than
> greater than
# number
& and
+ and, addition
@ at
' foot, feet; minute (metes and bounds)
" inch, inches; seconds (metes and bounds)
x,x by, times
% percent
˚ degree
Ø diameter
AC, A/C asphalt curb
AFCI arc-fault circuit interrupter
AFF above finished floor
AFS above finished slab
AFUE annual fuel utilization efficiency
AKA also known as
AMI according to manufacturer's instructions
ANSI American National Standards Institute
approxapproximately
ASF above subfloor
ASD According to Structural Drawings
avg average
bldg building
blkg blocking
bm beam
BO building official
CBC California Building Code
CEC California Electrical Code
CFM cubic feet per minute
ccSPF closed cell Spray Polyurethane Foam
cl centerline
clg ceiling
CMC California Mechanical Code
C/O cased opening
conc concrete
cont continuous
CPC California Plumbing Code
(D), demo demolition, to be demolished
dbl double
dept department
DF douglas fir
dia, Ø diameter
dim dimension
DS downspout
dn down
DR door
DW dishwasher
(E), E existing, to remain
ea each
EE each end
elec electrical
elev elevator
EN edge nailing
EPDM ethylene propylene diene monomer (M-class) rubber
eq equal
equip equipment
EW each way
ext exterior
FAU forced air unit
fdn foundation
flr floor
FFL Finished Floor Level (top of wood, tile, carpet flooring) FSL Finished Slab Level (top of tile or stone on slab)
FG finished grade
fin finished
FN field nailing
FS finished slab
ft foot (feet)
ftg footing
G gas supply line
ga gauge
gal gallon
galv galvanized
GFCI ground-fault circuit interrupter
GI galvanized iron
glu-lam, GLB glue-laminated beam
GPM gallon per minute
GWB gypsum wall board
HD hold-down
horiz horizontal
ht height
IAW in accordance with
ICBO International Conference Of Building Officials
in inch (inches)
incl including
info information
ins insulation
inst instructions
int interior
JP joint utility pole
jst joist
JT joint utility trench
L&L listed and labelled
loc location
LVL laminated veneer lumber
mat material
max maximum
mech mechanical
MEP Mechanical, Electrical, Plumbing
mfr manufacturer
min minimum
misc miscellaneous
mtl metal
(N), N new
NEC National Electrical Code
NLT not less than
NMT not more than
nom nominal
o/ over
OC on center
ov oven
pl plate or property line
ply plywood
pre-fab pre-fabricated
PSL parallel strand lumber
PSI pounds per square inch
PT pressure-treated
qty quantity
req'd required
rev revision
rf roof
rfgr refrigerator
rftr rafter
ro rough opening
SFL Structural Floor Level (top of subfloor sheathing)
SSL Structural Slab Level (top of concrete)
T&B top and bottom
T&G tongue and groove
Temp. Tempered/safety glass
TJI truss joist
TV television
typ typical
S+P shelf and pole
SF square feet
shwr shower
sim similar
spec's specifications
sq ft square feet
sq in square inches
SS sanitary sewer
struct'l structural drawings / calculations / specifications UL Underwriters’ Laboratories
UNO unless noted otherwise
vert vertical
W water supply line
w/ with
WC water closet
w/in within
w/o without
WIC walk-in closet
WP waterproof

THIS DESIGN PROJECT SUMMARY
Scope: Proposed 2 parcel subdivision per SB-9
APN: 409-41-013
Zoning: R-1-44 zoning district, R-1-20 effective zoning district Trees: All trees shown on plan are California Live Oak, UNO Utilities (existing): San Jose Water
West Valley Sanitation District
PG&E
Comcast/AT&T
Site Constraints Analysis: Fire - Not in UWI Hazard zone Wetlands - Project not in wetlands
Parcel Calculations for Existing and Proposed Lots
Parcel
Number
Gross
Site Area
Net Site
Area
Site Area
(% gross)
Average
Slope
Site Area,
Slope
Adjusted
Lot Frontage
(100’ min.)
Allowable Floor
Area
Actual/Proposed
Floor Area
Maximum
Structural
Coverage
Actual
Structural
Coverage
Maximum
Impervious
Coverage
Actual
Impervious
Coverage
Maximum ADU
Size
Existing 40,956 sf 38,000 sf 100% 9.9% N/A 252.67’ + 20’ easement N/A 2,600 sf - Existing, no change 20% = 7,600 sf 3,590 sf 30% = 11,400 sf 8,076 sf 1,200 sf Parcel 1 22,755 sf 19,745 sf 55.6% 11.4% N/A 122.67’ 4,950 sf 2,600 sf - Existing, no change 30% = 5,965 sf 2,715 sf 40% = 7,953 sf 7,201 sf 850 sf (1 bdrm) 1000 sf (2 bdrm) Parcel 2 18,255 sf 18,255 sf 44.4% 7.9% 18,255 sf 130.00’ 4,950 sf (1 story) 4,500 sf (2 story) 4,500 sf 30% = 5,435 sf 3,550 sf 40% = 7,247 sf 5,340 sf 850 sf (1 bdrm) 1000 sf (2 bdrm)

DRAWN
CHECKED THIS DOCUMENT CONSTITUTES ORIGINAL COPYRIGHTED MATERIAL PRODUCED AS AN INSTRUMENT OF SERVICE BY THE DESIGNER, TONY JEANS. THESE DOCUMENTS SHALL NOT BE UTILIZED AND/OR DUPLICATED

WITHOUT THE PERMISSION, IN
WRITING, OF THE DESIGNER. THE

DESIGN REMAINS THE SOLE
PROPERY OF T.H.I.S. DESIGN AND/

OR TONY JEANS
T.H.I.S.

DESIGN AND DEVELOPMENT
P.O. BOX 1518, LOS GATOS, CA 95031
408 354 1833
REVISIONS Zhang and Qiao Family 17795 Vineland Ave
Monte Sereno CA 95030
DRAWN T.H.I.S. DESIGN AND DEVELOPMENT
5-3-2023
5-31-2023
C1Proposed Site Subdivision Plan
X
X
X
X X X 3” fruit tree 3” fruit tree
3” fruit tree
12” tree
8” tree
9” tree
16” tree
14” tree
8” tree
14” tree
20” Palm
14” tree
12” tree
14” tree
15” tree
12” tree
13” tree
New Trees
JP
SSMH

VINELAND AVENUE
S79˚29’35”E 145.00’
PARCEL 2
18,255 SF
Contour length 720’
Contour interval 2’
Avg slope 7.9%

SITE PLAN N
0 10 20
5 15 40
Scale 1” = 10’
concrete
RW
RW
WM
CO
JP JP
SSMH

IP SDMH
TCDI
WM
CO
CO
IRRIG
IRRIG
DRINK

FOUNTAIN
SHED
SHED
BARN
S79˚29’35”E 127.29’
20' 0"

INGRESS, EGRESS, PUE
20' 0"

INGRESS, EGRESS, PUE
N10˚25’12”E 150.49’
concrete
concrete
concrete
concrete
driveway
SHED
N10˚33’50”E 150.52’
N79˚30’0”W 130.00’ N79˚30’0”W 142.67’

EDGE OF PAVEMENT EDGE OF PAVEMENT

ROBIN ANNE LANE
N 15˚ 37’ 22” W 48.39’
N 10˚ 30’ 00” E 20.50’
N 43˚ 55’ 45” W 66.21’
PARCEL 1
22,755 SF GROSS
17,745 SF NET
Contour length 1301’
Contour interval 2’
Avg slope 11.4%

EXISTING STRUCTURE

TO BE REMOVED

REAR YARD WITH

SPORTS COURT

EXISTING HOUSE TO
REMAIN

EXISTING

POOL TO
REMAIN

DEMOLISH SHEDS
RW

PRIVATE DRIVEWAY

CONCEPTUAL NEW HOUSE
±4500 SF TOTAL
±1800 sf UPPER FLOOR
1 STORY
1 STORY
1 STORY PORCH
800 sf 1 BED ADU
-or1000 sf 2 BED ADU
Guest and ADU
parking Semi-pervious pavers
driveway
N 10˚ 30’ 00” E 31.30’

CL KAVIN LANE
400
390
390
380
380
380
378
376
376
378
384
384
384
382
384
386
388
392
386
392
386
388
394
396
398
15' 0"
1st Flr Setback
30' 0"
1st Flr Setback
30' 0"
1st Flr Setback
15' 0"
1st Flr setback
15' 0"
30' 0"
22' 6"
Side corner setback
30' 0"
20' 0"
2nd Flr Setback
20' 0"
2nd Flr Setback
6' 0"
6' 0"
40' 0"
2nd Flr Setback
40' 0"
2nd Flr Setback

STAFF REPORT
Meeting: City Council - Jun 06 2023
Agenda Heading: UNFINISHED BUSINESS
Staff Contact: Reynold Samoranos,
Department: Finance Manager
Title: Second Study Session - Fiscal Year 2023-24 Proposed Budget Recommendation(s):

Staff recommends that the Council conduct a second Study Session to review and discuss the proposed FY 2023-24 Budget.

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:
1 FY 2023-24 Proposed Budget - Flow of Funds (Final)
2 FY 2023-24 Proposed Budget vs Mid-Year Budget (Final) 3 FY 2023-24 Proposed Budget Narrative (Final)
4 FY 2023-24 Proposed Budget - Revenue Matrix (Final)
5 FY 2023-24 Proposed Budget - Expenditures Matrix (Final) 6 CIP Narrative FY 2023-24 Budget (06-01-2023)
7 FY 2023-24 Proposed Budget - Fund Reserve Balances

THE CITY OF MONTE SERENO
PROPOSED FY 2023-24 BUDGET
July 1, 2023 to June 30, 2024
June 6, 2023 Review

FLOW OF FUNDS
FY 2023-24
Proposed Budget
(Ver 06-6-2023)
Total
Percentage
Beginning Fund Balances 5,788,099 $

REVENUES
PROPERTY TAX 2,844,000 51.8%
LICENSE & PERMITS 739,000 13.5%
FEDERAL RELIEF FUNDS AND OTHER 738,000 13.4%
FRANCHISE TAX 342,400 6.2%
INTERGOVERNMENTAL 246,666 4.5%
GAS TAX 185,000 3.4%
OTHER REVENUE 177,500 3.2%
REAL PROPERTY TAX 106,900 1.9%
INTEREST 100,500 1.8%
SALES TAX 9,000 0.2%
FINES 2,100 0.0%
TOTAL REVENUE 5,491,066 100.0%

EXPENDITURES
PERSONNEL 1,626,928 27.0%
BUILDING AND IMPROVEMENT 1,325,000 22.0%
LAW ENFORCEMENT 1,192,665 19.8%
ADMINISTRATION 503,262 8.4%
GENERAL GOVERNMENT 413,289 6.9%
CONSTRUCTION AND C.I.P. 391,700 6.5%
MAINTENANCE 226,200 3.8%
CITY ATTORNEY 125,000 2.1%
EQUIPMENT AND IMPROVEMENT 109,052 1.8%
CITY AUDIT 57,950 1.0%
BUILDING MAINTENANCE 34,000 0.6%
ENGINEERING 12,000 0.2%
SPECIAL DISTRICTS 2,700 0.0%
TOTAL EXPENDITURES 6,019,746 100.0%
NET SURPLUS / (DEFICIT) (528,680)
FUND ENDING BALANCE $ 5,259,419
85%
84%
Page: 1 of 1 File: FY 2023-25 Proposed Budget (Final 06-06-2023) Page 96 of 174

THE CITY OF MONTE SERENO
PROPOSED FY 2023-24 BUDGET
June 6, 2023 Review

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 2022-23 MidYear Budget
FY 2023-24
Proposed Budget
(Ver 05-16-2023)
FY 2022-23 MidYear Budget vs.

FY 2023-24 Full
Year Proposed
Budget -
Higher/(Lower)
% Change FY
2023 Mid-Year
Budget vs.

Proposed FY
2024 Budget
2,363,347 2,844,000 480,653 20.3%
746,300 739,000 (7,300) -1.0%
310,000 342,400 32,400 10.5%
232,285 246,666 14,381 6.2%
204,970 177,500 (27,470) -13.4%
191,000 185,000 (6,000) -3.1%
50,259 100,500 50,241 100.0%
97,600 106,900 9,300 9.5%
8,900 9,000 100 1.1%
607,500 738,000 130,500 21.5%
1,200 2,100 900 75.0%
4,813,361 5,491,066 677,705 14.1%
Page: 1 of 14 File: FY 2023-25 Proposed Budget (Final 06-06-2023) Page 97 of 174

THE CITY OF MONTE SERENO
PROPOSED FY 2023-24 BUDGET
June 6, 2023 Review

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

TOTAL PROPERTY TAX
Notes to Law Enforcement Tax - $89,000
03-316T
Police Special Tax Assessment
per Assessor's Report May 5,
2023 - Total $89,000

SALES TAX
01-296T Sales and UseTax

TOTAL SALES TAX
FY 2022-23 MidYear Budget
FY 2023-24
Proposed Budget
(Ver 05-16-2023)
FY 2022-23 MidYear Budget vs.

FY 2023-24 Full
Year Proposed
Budget -
Higher/(Lower)
% Change FY
2023 Mid-Year
Budget vs.

Proposed FY
2024 Budget
2,108,700 2,600,600 491,900 23.3%
90,605 95,000 4,395 4.9%
4,600 5,400 800 17.4%
45,000 52,000 7,000 15.6%
111,842 89,000 (22,842) -20.4%
2,300 2,000 (300) -13.0%
200 0 (200) -100.0%
0 0 0 NA
100 0 (100) -100.0%
0 0 0 NA
2,363,347 2,844,000 480,653 20.3%
8,900 9,000 100 1.1%
8,900 9,000 100 1.1%
Page: 2 of 14 File: FY 2023-25 Proposed Budget (Final 06-06-2023) Page 98 of 174

THE CITY OF MONTE SERENO
PROPOSED FY 2023-24 BUDGET
June 6, 2023 Review

FEDERAL AND STATE FUNDS
01-298T Federal and State Fund Sources

TOTAL FEDERAL & STATE FUNDS
Notes to (Federal & Other) $738k
01-298
California Automated Permit
Processing (CalAPP) Program Grant
in the Amount of $40,000.

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

SILICON VALLEY CLEAN ENERGY

DECARBONIZATION GRANT
PROGRAM AGREEMENT $500k
used by December 31, 2024

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

TOTAL GAS TAX
FY 2022-23 MidYear Budget
FY 2023-24
Proposed Budget
(Ver 05-16-2023)
FY 2022-23 MidYear Budget vs.

FY 2023-24 Full
Year Proposed
Budget -
Higher/(Lower)
% Change FY
2023 Mid-Year
Budget vs.

Proposed FY
2024 Budget
607,500 738,000 130,500 21.5%
607,500 738,000 130,500 21.5%
109,000 105,000 (4,000) -3.7%
82,000 80,000 (2,000) -2.4%
191,000 185,000 (6,000) -3.1%
Page: 3 of 14 File: FY 2023-25 Proposed Budget (Final 06-06-2023) Page 99 of 174

THE CITY OF MONTE SERENO
PROPOSED FY 2023-24 BUDGET
June 6, 2023 Review

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

TOTAL FRANCHISE TAX

REAL PROPERTY TAX
01-222T Real Prop Transfer Tax
01-225T SB 2 Real Estate Transactions
TOTAL REAL PROP. TAX
FY 2022-23 MidYear Budget
FY 2023-24
Proposed Budget
(Ver 05-16-2023)
FY 2022-23 MidYear Budget vs.

FY 2023-24 Full
Year Proposed
Budget -
Higher/(Lower)
% Change FY
2023 Mid-Year
Budget vs.

Proposed FY
2024 Budget
17,600 20,000 2,400 13.6%
38,000 40,600 2,600 6.8%
38,400 35,000 (3,400) -8.9%
129,900 149,500 19,600 15.1%
34,600 24,200 (10,400) -30.1%
51,500 73,100 21,600 41.9%
310,000 342,400 32,400 10.5%
97,600 106,900 9,300 9.5%
0 0 0 NA
97,600 106,900 9,300 9.5%
Page: 4 of 14 File: FY 2023-25 Proposed Budget (Final 06-06-2023) Page 100 of 174

THE CITY OF MONTE SERENO
PROPOSED FY 2023-24 BUDGET
June 6, 2023 Review

LICENSE AND PERMIT FEES
01-231T SB1186 Fees
01-232T Business License
01-234T ConstructionTax
01-235T SMIP
01-236T Construction Permits
01-237T Grading Permits
01-238T SB1473 (BSASRF)
01-240T Subdivision Fee
01-241T Site Development\Use\Variance\
01-242T Zoning Fees
01-243T Planning Miscellaneous
01-244T Encroachment Permits
01-245T Community Planning Fee
. TOTAL LICENSE & PERMITS
FINES
01-293T Alarm Soundings
05-322T Traffic Safety (Bails & Fines)

TOTAL FINES
FY 2022-23 MidYear Budget
FY 2023-24
Proposed Budget
(Ver 05-16-2023)
FY 2022-23 MidYear Budget vs.

FY 2023-24 Full
Year Proposed
Budget -
Higher/(Lower)
% Change FY
2023 Mid-Year
Budget vs.

Proposed FY
2024 Budget
1,300 1,200 (100) -7.7%
15,000 17,700 2,700 18.0%
23,200 25,000 1,800 7.8%
3,500 3,500 0 0.0%
556,700 550,000 (6,700) -1.2%
36,100 40,000 3,900 10.8%
1,200 1,200 0 0.0%
0 0 0 NA
23,100 10,000 (13,100) -56.7%
0 0 0 NA
2,900 0 (2,900) -100.0%
29,800 30,400 600 2.0%
53,500 60,000 6,500 12.1%
746,300 739,000 (7,300) -1.0%
0 1,000 1,000 NA
1,200 1,100 (100) -8.3%
1,200 2,100 900 75.0%
Page: 5 of 14 File: FY 2023-25 Proposed Budget (Final 06-06-2023) Page 101 of 174

THE CITY OF MONTE SERENO
PROPOSED FY 2023-24 BUDGET
June 6, 2023 Review

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

Notes to Interest - General - $100,500
01-282 Oct -Dec 2022 Quarter Run Rate

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

TOTAL INTERGOVERNMENTAL
Notes to Miscellaneous (05-323) - $143,066
05-323
Measure B Santa Clara Valley
Transporation Authority (Per City
Engineer) $87,066 (FY 2024) and
$90,505 (FY 2025)
05-323
Ped Education and
Encouragement Allocation:
$10,000 (FY 2024) and $10,000
(FY 2025)
05-323 TDA (Per City Engineer) $25,000
FY 2022-23 MidYear Budget
FY 2023-24
Proposed Budget
(Ver 05-16-2023)
FY 2022-23 MidYear Budget vs.

FY 2023-24 Full
Year Proposed
Budget -
Higher/(Lower)
% Change FY
2023 Mid-Year
Budget vs.

Proposed FY
2024 Budget
48,742 97,500 48,758 100.0%
1,517 3,000 1,483 97.8%
50,259 100,500 50,241 100.0%
1,100 1,100 0 0.0%
2,000 2,500 500 25.0%
0 21,000 21,000 NA
0 0 0 NA
100,000 100,000 0 0.0%
129,185 122,066 (7,119) -5.5%
232,285 246,666 14,381 6.2%
Page: 6 of 14 File: FY 2023-25 Proposed Budget (Final 06-06-2023) Page 102 of 174

THE CITY OF MONTE SERENO
PROPOSED FY 2023-24 BUDGET
June 6, 2023 Review
. OTHER REVENUE
01-246T Road Impact fees
01-290T BCJPIA/State fund Ins. rebate
01-291T Microfilm Fee - Archive
01-292T Miscellaneous (See Notes Below)
01-294T Reimb. Publication
01-295T Election Candidate Fees
25-352T Storm drain dev fees
25-354T Storm Drain maintenance/Administration

TOTAL OTHER REVENUE
Notes to Miscellaneous (01-292)
01-292

TOTAL REVENUE
FY 2022-23 MidYear Budget
FY 2023-24
Proposed Budget
(Ver 05-16-2023)
FY 2022-23 MidYear Budget vs.

FY 2023-24 Full
Year Proposed
Budget -
Higher/(Lower)
% Change FY
2023 Mid-Year
Budget vs.

Proposed FY
2024 Budget
100,000 150,000 50,000 50.0%
0 0 0 NA
9,200 7,500 (1,700) -18.5%
85,000 0 (85,000) -100.0%
0 0 0 NA
2,770 0 (2,770) -100.0%
8,000 10,000 2,000 25.0%
0 10,000 10,000 NA
204,970 177,500 (27,470) -13.4%
4,813,361 5,491,066 677,705 14.1%
Page: 7 of 14 File: FY 2023-25 Proposed Budget (Final 06-06-2023) Page 103 of 174

THE CITY OF MONTE SERENO
PROPOSED FY 2023-24 BUDGET
June 6, 2023 Review

EXPENDITURES

PERSONNEL

LAW ENFORCEMENT
CONSTRUCTION AND C.I.P.

GENERAL GOVERNMENT

MAINTENANCE

ADMINISTRATION

CITY ATTORNEY

BUILDING MAINTENANCE

EQUIPMENT AND IMPROVEMENT

BUILDING AND IMPROVEMENT

CITY AUDIT

ENGINEERING

SPECIAL DISTRICTS

TOTAL EXPENDITURES

NET SURPLUS / (DEFICIT)

EXPENDITURES

GENERAL GOVERNMENT
01-505T Council Trvl, Mtgs,Protocol
01-506T Youth Commission Programs
01-507T Community Interface
FY 2022-23 MidYear Budget
FY 2023-24
Proposed Budget
(Ver 05-16-2023)
FY 2022-23 MidYear Budget vs.

FY 2023-24 Full
Year Proposed
Budget -
Higher/(Lower)
% Change FY
2023 Mid-Year
Budget vs.

Proposed FY
2024 Budget
1,270,959 1,626,928 355,969 28.0%
1,110,604 1,192,665 82,061 7.4%
45,788 391,700 345,912 755.5%
327,035 413,289 86,254 26.4%
582,414 226,200 (356,214) -61.2%
629,528 503,262 (126,266) -20.1%
99,550 125,000 25,450 25.6%
47,273 34,000 (13,273) -28.1%
36,286 109,052 72,766 200.5%
600,000 1,325,000 725,000 120.8%
54,600 57,950 3,350 6.1%
11,247 12,000 753 6.7%
1,843 2,700 857 46.5%
4,817,127 6,019,746 1,202,619 25.0%
(3,766) (528,680) (524,914) 13938.2%
17,754 16,250 (1,504) -8.5%
0 3,000 3,000 NA
13,841 15,000 1,159 8.4%
Page: 8 of 14 File: FY 2023-25 Proposed Budget (Final 06-06-2023) Page 104 of 174

THE CITY OF MONTE SERENO
PROPOSED FY 2023-24 BUDGET
June 6, 2023 Review
01-515T Council Memberships
01-520T Elections
01-521T Municipal Code Revision
01-522T Environmental Services
01-523T GIS Mapping
01-531T Disbursement SMIP
01-532T SB1473 (BSASRF)
01-533T Disbruse SB1186 Fees
01-535T Professional Services
01-540T Insurance & Bonding
01-545T Code Enforcement
01-550T Community Based Organizations
01-555T Emergency Services
01-560T Annexation
01-565T Legal Ads/Notices/Recording fees
01-570T General Plan Revise
01-575T Misc/Refunds
01-576T Sales Tax
01-585T Animal Control

TOTAL GENERAL GOVERNMENT
FY 2022-23 MidYear Budget
FY 2023-24
Proposed Budget
(Ver 05-16-2023)
FY 2022-23 MidYear Budget vs.

FY 2023-24 Full
Year Proposed
Budget -
Higher/(Lower)
% Change FY
2023 Mid-Year
Budget vs.

Proposed FY
2024 Budget
0 2,000 2,000 NA
2,770 0 (2,770) -100.0%
0 0 0 NA
3,274 0 (3,274) -100.0%
0 15,000 15,000 NA
7,999 3,500 (4,499) -56.2%
2,341 1,200 (1,141) -48.7%
0 0 0 NA
87,199 134,529 47,330 54.3%
95,421 100,200 4,779 5.0%
38,763 0 (38,763) -100.0%
21,000 20,000 (1,000) -4.8%
0 12,500 12,500 NA
0 0 0 NA
4,768 6,000 1,232 25.8%
0 50,000 50,000 NA
2 0 (2) -100.0%
0 0 0 NA
31,903 34,110 2,207 6.9%
327,035 413,289 86,254 26.4%
Page: 9 of 14 File: FY 2023-25 Proposed Budget (Final 06-06-2023) Page 105 of 174

THE CITY OF MONTE SERENO
PROPOSED FY 2023-24 BUDGET
June 6, 2023 Review

PERSONNEL
01-605T Regular Full Time
01-615T Part Time
01-620T Long Term Disablity Ins
01-625T Retirement Employer
01-627T Retirement Employee
01-630T Health Insurance
01-635T Dental Insurance
01-636T Vision Care
01-642T Workers Comp. Insurance
01-645T Social Security
01-647T Medicare
01-650T Unemployment
01-660T Deferred Compensation
01-665T Benefits Allowance

TOTAL PERSONNEL
FY 2022-23 MidYear Budget
FY 2023-24
Proposed Budget
(Ver 05-16-2023)
FY 2022-23 MidYear Budget vs.

FY 2023-24 Full
Year Proposed
Budget -
Higher/(Lower)
% Change FY
2023 Mid-Year
Budget vs.

Proposed FY
2024 Budget
926,469 1,146,825 220,356 23.8%
0 0 0 NA
0 0 0 NA
77,529 96,214 18,685 24.1%
16,097 13,693 (2,404) -14.9%
133,925 150,454 16,529 12.3%
7,754 11,843 4,089 52.7%
2,683 2,683 NA
7,365 12,597 5,232 71.0%
53,976 64,564 10,588 19.6%
13,710 17,090 3,380 24.7%
363 692 329 90.7%
24,171 16,825 (7,346) -30.4%
9,600 93,450 83,850 873.4%
1,270,959 1,626,928 355,969 28.0%
Page: 10 of 14 File: FY 2023-25 Proposed Budget (Final 06-06-2023) Page 106 of 174

THE CITY OF MONTE SERENO
PROPOSED FY 2023-24 BUDGET
June 6, 2023 Review

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

TOTAL ADMINISTRATION

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

TOTAL EQUIPMENT / IMPROVEMENTS
FY 2022-23 MidYear Budget
FY 2023-24
Proposed Budget
(Ver 05-16-2023)
FY 2022-23 MidYear Budget vs.

FY 2023-24 Full
Year Proposed
Budget -
Higher/(Lower)
% Change FY
2023 Mid-Year
Budget vs.

Proposed FY
2024 Budget
8,617 11,200 2,583 30.0%
38,522 22,900 (15,622) -40.6%
0 0 0 NA
9,687 10,000 313 3.2%
0 0 0 NA
27,005 26,200 (805) -3.0%
14,959 11,300 (3,659) -24.5%
15,276 18,500 3,224 21.1%
25,772 26,000.00 228 0.9%
0 0 0 NA
480,026 366,662 (113,364) -23.6%
9,484 10,500 1,016 10.7%
180 0 (180) -100.0%
0 0 0 NA
0 0 0 NA
629,528 503,262 (126,266) -20.1%
0 0 0 NA
0 45,000 45,000 NA
36,286 64,052 27,766 76.5%
36,286 109,052 72,766 200.5%
Page: 11 of 14 File: FY 2023-25 Proposed Budget (Final 06-06-2023) Page 107 of 174

THE CITY OF MONTE SERENO
PROPOSED FY 2023-24 BUDGET
June 6, 2023 Review

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

TOTAL EQUIPMENT / IMPROVEMENTS
Notes to Building Improvement (01-815) $1,200,000
01-815 Annex Building Project
$1,200,000 (Budget)
01-815 Green Stormwater Infrastructure
Project $125,000 (Budget)

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

TOTAL LAW ENFORCEMENT

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

TOTAL BUILDING MAINTENANCE

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

TOTAL MAINTENANCE
FY 2022-23 MidYear Budget
FY 2023-24
Proposed Budget
(Ver 05-16-2023)
FY 2022-23 MidYear Budget vs.

FY 2023-24 Full
Year Proposed
Budget -
Higher/(Lower)
% Change FY
2023 Mid-Year
Budget vs.

Proposed FY
2024 Budget
0 0 0 NA
600,000 1,325,000 725,000 120.8%
600,000 1,325,000 725,000 120.8%
1,010,604 1,092,665 82,061 8.1%
0 0 0 NA
100,000 100,000 0 0.0%
1,110,604 1,192,665 82,061 7.4%
37,653 34,000 (3,653) -9.7%
9,620 0 (9,620) -100.0%
47,273 34,000 (13,273) -28.1%
405,044 0 (405,044) -100.0%
0 35,000 35,000 NA
28,340 100,000 71,660 252.9%
85,500 45,000 (40,500) -47.4%
33,030 0 (33,030) -100.0%
3,000 3,200 200 6.7%
11,000 13,000 2,000 18.2%
16,500 30,000 13,500 81.8%
582,414 226,200 (356,214) -61.2%
Page: 12 of 14 File: FY 2023-25 Proposed Budget (Final 06-06-2023) Page 108 of 174

THE CITY OF MONTE SERENO
PROPOSED FY 2023-24 BUDGET
June 6, 2023 Review

CONSTRUCTION - CIP
01-905T Gen Fund Road Proj.(FY2018/19)
01-915T Neighborhood St. Improve Project
05-905T Traffic Safety Project
05-925T Traffic Safety Misc Bike/Ped Improv
12-906T Greenwood Rd to End Project
12-907T Constitution Ave to Daves Project
05-870T Daves Ave-Winchester-Equestrian
12-915T Gas Tax Road Project
25-910T Storm Drain Project

TOTAL CONSTRUCTION

ENGINEERING
12-875T Congestion Management
25-805T WV Clean Water Administration

TOTAL ENGINEERING

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

TOTAL SPECIAL DISTRICTS

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

TOTAL CITY ATTORNEY

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

TOTAL CITY AUDIT

TOTAL EXPENDITURES

NET SURPLUS / (DEFICIT)
FY 2022-23 MidYear Budget
FY 2023-24
Proposed Budget
(Ver 05-16-2023)
FY 2022-23 MidYear Budget vs.

FY 2023-24 Full
Year Proposed
Budget -
Higher/(Lower)
% Change FY
2023 Mid-Year
Budget vs.

Proposed FY
2024 Budget
0 0 0 NA
0 0 0 NA
1,810 0 (1,810) -100.0%
37,133 0 (37,133) -100.0%
131,700 131,700 NA
200,000 200,000 NA
Daves Ave-Winchester-Equestrian 60,000 60,000 NA
6,845 0 (6,845) -100.0%
0 0 0 NA
45,788 391,700 345,912 755.5%
0 0 0 NA
11,247 12,000 753 6.7%
11,247 12,000 753 6.7%
1,422 2,100 678 47.7%
421 600 179 42.5%
1,843 2,700 857 46.5%
84,550 90,000 5,450 6.4%
15,000 35,000 20,000 133.3%
0 0 0 NA
0 0 0 NA
99,550 125,000 25,450 25.6%
45,300 50,150 4,850 10.7%
3,000 3,000 0 0.0%
6,300 4,800 (1,500) -23.8%
54,600 57,950 3,350 6.1%
4,817,127 6,019,746 1,202,619 25.0%
(3,766) (528,680) (524,914) 13938.2%
Page: 13 of 14 File: FY 2023-25 Proposed Budget (Final 06-06-2023) Page 109 of 174

THE CITY OF MONTE SERENO
PROPOSED FY 2023-24 BUDGET
June 6, 2023 Review

TOTAL FUND RESERVES

WARRANT CHECKING ACCOUNT
01-010 TOTAL WARRANT CHECKING

SAVINGS ACCOUNT
01-015 General
03-015 Law Enforcement
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 2022-23 MidYear Budget
FY 2023-24
Proposed Budget
(Ver 05-16-2023)
FY 2022-23 MidYear Budget vs.

FY 2023-24 Full
Year Proposed
Budget -
Higher/(Lower)
% Change FY
2023 Mid-Year
Budget vs.

Proposed FY
2024 Budget
117,450 117,450 0 0.0%
79,942 25,121.62 (54,820) -68.6%
241,391 0.00 (241,391) -100.0%
630 0.00 (630) -100.0%
242,274 47,574.00 (194,700) -80.4%
69,524 32,524.00 (37,000) -53.2%
73 73.00 0 0.0%
2,805 2,705.00 (100) -3.6%
39 0.00 (39) -100.0%
636,678 107,998 (528,680) -83.0%
754,128 225,448 (528,680) -70.1%
647,671 647,671 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
4,847,671 4,847,671 0 0.0%
0 0 0 NA
131,506 131,506 0 0.0%
21,000 21,000 0 0.0%
27,043 27,043 0 0.0%
6,751 6,751 0 0.0%
186,300 186,300 0 0.0%
5,033,971 5,033,971 0 0.0%
5,788,099 5,259,419 (528,680) -9.1%
Page: 14 of 14 File: FY 2023-25 Proposed Budget (Final 06-06-2023) Page 110 of 174 1 | P a g e
FY 2023-24 Proposed Budget vs. FY 2022-23 Mid-Year Budget Narrative FY 2023-24 Proposed Budget
Vs. FY 2022-23 Mid-Year Budget Narrative
Revenues

SIGNIFICANT FULL-YEAR VARIANCES TO THE MID-YEAR BUDGET NARRATIVE  Revenues $5.5 Million ($0.7M higher versus FY 2022-23 Mid-Year Budget)  Property Tax $2.8 Million, $481k higher versus FY 2022-23 Mid-Year Budget - Secured property taxes per Santa Clara County Assessor’s Estimate higher vs. Mid-Year Budget citing a Santa Clara County Assessor’s Office 2023-2024 Assessment roll – Percentage growth 2023-24 roll growth since 2022- 23 increased 8.29% - $2.6 Million
- SB 813 Supplemental increased to $52k
- Police Special Tax Assessment reduced to $89k per Assessor’s report May 5, 2023.  Licenses and Permits $739k, -$7k lower versus FY 2022-23 Mid-Year Budget:
- Permit activity slowed as higher interest rates and concerns over the economy. The budget is flat versus the Mid-Year Budget.
 Franchise Fees $342k, $32k higher versus FY 2022-23 Mid-Year Budget:
- Gas franchise fees are projected to be higher in FY 2024.  Intergovernmental $246k, $14k higher versus FY 2022-23 Mid-Year Budget:
- Includes VRF Local Road Santa Clara Valley Transportation ($21k); COPS ELEAS Pass-thru Revenue ($100k), Ped Education and Encouragement Allocation ($10k), Measure B ($87k) and TDA ($25k).  Other Revenues $178k, -$27k lower versus FY 2022-23 Mid-Year Budget:
- Measure B from Santa Clara Valley Transportation Authority to be $87k, Ped Education and Encouragement allocation $10k, TDA $25k and Local Road Santa Clara Valley Transportation Authority $21k in FY2024.

 Real Property Tax $107k, $9k higher versus FY 2022-23 Mid-Year Budget:
- Real property transfer tax $9k higher based on February 2023 YTD run rate.  Sales and Use Tax $9k, $4k flat versus FY 2022-23 Mid-Year Budget:
- Lower sales tax estimate based on February 2023 YTD run rate.  Federal Relief Funds and Other $738k, $131k higher versus FY 2022-23 Mid-Year Budget:
- Newly secured grants accounted for the $131k increase including: California Automated Permit Processing (CalAPP) Program $40k, Silicon Valley Clean Energy $18k, Prop 68 per capita program if used by 12/31/2023 $180k and Silicon Valley Clean Energy Decarbonization Grant $500k if used by December 31, 2024. -
 Investment Income/Interest $101k, $50k higher versus FY 2022-23 Mid-Year Budget:
- LAIF interest rates higher than the Mid-Year budgeted.

2 | P a g e
FY 2023-24 Proposed Budget vs. FY 2022-23 Mid-Year Budget Narrative FY 2023-24 Proposed Budget
Vs. FY 2022-23 Mid-Year Budget Narrative
Expenditures

SIGNIFICANT FULL-YEAR VARIANCES TO THE MID-YEAR BUDGET NARRATIVE  Expenditures $6.0 Million, $1.2M higher versus FY 2022-23 Mid-Year Budget  Personnel $1.6 Million, $356k higher versus FY 2022-23 Mid-Year Budget - The FY 2023 Mid-Year Budget - City Engineer resigned in September 2022, City Clerk resigned in October 2022, delayed hiring of a combined Code Enforcement/Building Inspector, and the deputy City Clerk replaced the outgoing City Clerk.
- The FY 2024 Proposed Budget, assumptions include 5% COLA and benefit allowance increasing from $700 to $1300 (+$86k), hire City Engineer with start date 7/1/2023 (+$257k). - No UAL funding expenses noted in the CalPERS website for both Classic and PEPRA plans. Employer contribution rates increased for FY 2024: Classic from 10.32% (FY 2023) to 11.84% (FY 2024) PEPRA from

7..47% (FY 2023) to 7.68% (FY 2024).
 Building and Improvement $1.3 Million, $725k higher versus FY 2022-23 Mid-Year Budget - Includes Annex Building Project $1.2 Million and the Green Stormwater Infrastructure Project $125k.  Construction $392 Thousand, $346k higher versus FY 2022-23 Mid-Year Budget:
- New construction projects include Greenwood Rd to end project ($132k); Constitution Ave to Daves Project ($200k) and Daves Ave-Winchester-Equestrian project ($60k).  General Government $413 Thousand, $88k higher versus FY 2022-23 Mid-Year Budget:
- The $88k increase includes a set aside for Housing Element programs to support local agencies to provide housing services to special populations $50k, use EMC Planning Group to complete Housing Element project $115k, offset by no need for Code Enforcement Consultant from CSG Consultants (-$40k). FY 2024 Proposed Budget includes the NICP-Community Emergency Response Team project at $12.5k.  Maintenance $226 Thousand, $356k lower versus FY 2022-23 Mid-Year Budget:
- FY 2024 Proposed Budget includes Street Maintenance (Pavement and Trees) $35k; Citywide Storm Drain Cash Basin Cleaning $100k, Traffic Safety (signs & markings) $45k; Street Sweeping $13k; and general storm drain maintenance $30k.
 Administration $503 Thousand, $126k lower versus FY 2022-23 Mid-Year Budget:
- In FY 2024 Proposed Budget, no need for consultant to cover Building Inspector position and City Engineer.

Expected hire date for City Engineer, July 1, 2023.
 City Attorney $125 Thousand, $25k higher versus FY 2022-23 Mid-Year Budget:
- City Attorney on budget and lowered other legal services based on 7-month run rate – lower by $150k.

3 | P a g e
FY 2023-24 Proposed Budget vs. FY 2022-23 Mid-Year Budget Narrative FY 2023-24 Proposed Budget
Vs. FY 2022-23 Mid-Year Budget Narrative
Expenditures
 Building Maintenance $34 Thousand, $13k lower versus FY 2022-23 Mid-Year Budget:
- Includes monthly City Hall maintenance Janitorial services ($7k), Landscaping and Grounds maintenance ($8k), Carpet Cleaning ($1k) and provisions for unexpected maintenance ($18k).  Equipment / Improvements $109 Thousand, $73k higher versus FY 2022-23 Mid-Year Budget:
- FY 2024 Proposed budget includes a City vehicle for City Staff $45k and various software licenses renewals including: iCompass for agenda management system/Board application ($10.5k); ClearGov Operating Budget and Capital Budgeting Suite ($10k); SeeClickFix Monte Sereno Branded application ($5.3k); various PC and Systems software renewals $24k and ClearGov Transparency Suite ($2.7k) and Digital Budget Book ($3k).

4 | P a g e
FY 2023-24 Proposed Budget vs. FY 2022-23 Mid-Year Budget Narrative FY 2023-24 Proposed Budget
Vs. Mid-Year Budget Narrative
Fund Balances

THE CITY OF MONTE SERENO
PROPOSED FY 2023-24 BUDGET
June 6, 2023 Review

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 Proposed
FY 2023-2024
Budget
General Fund Housing Element
Project
Planning &
Engineering
ePermit Tracking
System
Community
Center Building
Green Stormwater
Infrastructure
Project
Greenwood Rd
to End Project
Constitution Ave.
to Daves to End
Project
Daves Avenue
Safety
Improvement
Total GP and CIP
Projects
GF GEN-2022-D GEN-2023-D GEN-2022-B GEN-2024-A CIP-2024-A CIP-2024-B CIP-2024-C 2,844,000 2,844,000 0 0 0 0 0 0 0 0
739,000 739,000 0 0 0 0 0 0 0 0
342,400 342,400 0 0 0 0 0 0 0 0
246,666 134,600 0 0 0 0 36,700 50,366 25,000 112,066
177,500 87,500 0 0 0 0 76,000 0 14,000 90,000
185,000 41,000 0 0 0 0 19,000 125,000 0 144,000
100,500 100,500 0 0 0 0 0 0 0 0
106,900 106,900 0 0 0 0 0 0 0 0
9,000 9,000 0 0 0 0 0 0 0 0
738,000 0 0 40,000 698,000 0 0 0 0 738,000
2,100 2,100 0 0 0 0 0 0 0 0
5,491,066 4,407,000 0 40,000 698,000 0 131,700 175,366 39,000 1,084,066 Page: 1 of 1 File: FY 2023-25 Proposed Budget (Final 06-06-2023)

THE CITY OF MONTE SERENO
PROPOSED FY 2023-24 BUDGET
June 6, 2023 Review

EXPENDITURES

PERSONNEL

LAW ENFORCEMENT
CONSTRUCTION AND C.I.P.

GENERAL GOVERNMENT

MAINTENANCE

ADMINISTRATION

CITY ATTORNEY

BUILDING MAINTENANCE

EQUIPMENT AND IMPROVEMENT

BUILDING AND IMPROVEMENT

CITY AUDIT

ENGINEERING

SPECIAL DISTRICTS

TOTAL EXPENDITURES

NET SURPLUS / (DEFICIT)
Total Proposed
FY 2023-2024
Budget
General Fund Housing Element
Project
Planning &
Engineering
ePermit Tracking
System
Community
Center Building
Green Stormwater
Infrastructure
Project
Greenwood Rd
to End Project
Constitution Ave.
to Daves to End
Project
Daves Avenue
Safety
Improvement
Total GP and CIP
Projects
GF GEN-2022-D GEN-2023-D GEN-2022-B GEN-2024-A CIP-2024-A CIP-2024-B CIP-2024-C 1,626,928 1,626,928 0 0 0 0 0 0 0 0
1,192,665 1,192,665 0 0 0 0 0 0 0 0
391,700 0 0 0 0 0 131,700 200,000 60,000 391,700
413,289 248,660 164,629 0 0 0 0 0 0 164,629
226,200 226,200 0 0 0 0 0 0 0 0
503,262 463,262 0 40,000 0 0 0 0 0 40,000
125,000 125,000 0 0 0 0 0 0 0 0
34,000 34,000 0 0 0 0 0 0 0 0
109,052 109,052 0 0 0 0 0 0 0 0
1,325,000 0 0 0 1,200,000 125,000 0 0 0 1,325,000
57,950 57,950 0 0 0 0 0 0 0 0
12,000 12,000 0 0 0 0 0 0 0 0
2,700 2,700 0 0 0 0 0 0 0 0
6,019,746 4,098,417 164,629 40,000 1,200,000 125,000 131,700 200,000 60,000 1,921,329 (528,680) 308,583 (164,629) 0 (502,000) (125,000) 0 (24,634) (21,000) (837,263) Page: 1 of 1 File: FY 2023-25 Proposed Budget (Final 06-06-2023)

5/22/23
2023-24 Capital Improvement Projects

Description of 2024 Proposed Pavement Improvement Project:

Established Constraints:

1. Annual expenditures for the pavement improvement project are limited to $310K (in 2021 dollars adjusted for inflation) in accordance with the 2022 Pavement Management Plan adopted by the City Council May 3, 2022.

2. Project limits, scope of work, and renovation specifications are based on local conditions and financial limits.

Constitution Avenue (Seebree Lane to the easterly end):

The easterly half of Constitution Avenue is proposed for inclusion in the 2023 pavement improvement project for the following reasons:

1. Constitution Avenue from Daves Avenue to the end has a pavement condition index rating of 46 which is at the low end of the City’s street condition evaluation called “Very Poor”.

2. In 2020, the City commissioned an engineering improvement design for the cul-de-sac area to address street flooding and pavement deterioration. This plan was used as part of design work for the 2023 project plans.

3. In 2019 an existing home was demolished and a new home proposed for 18165 Constitution. One of the conditions of approval of the new home was installation of concrete gutter along the lot frontage. This new gutter has recently been constructed.

4. The condition of the segment of Constitution from Seebree Lane east to the end is significantly worse than the segment from Seebree to Daves.

Pavement deterioration is due in part to the lack of concrete gutters.

5. The lack of lateral gutters lead to significant erosion and pavement deterioration along the sides of the easterly segment, contributing to a storm drain blockage which in turn flooded the street during last Winter.

6. To address the above, the project proposed for 2023 will construct concrete gutters along lateral edges and reconstruct the pavement from the cul-desac to Seebree Lane.

Greenwood Road (Greenwood Lane to the southerly end):

1. This section of Greenwood Road was part of the 2022 PIP but had to be deleted due to cost overruns on other roads.

2. Greenwood Road’s PCI is 43, in the “Very Poor” category.

3. One side of the cul-de-sac area was built with unusual geometry to provide drainage from the cul-de-sac. This unique shape cannot be repaved as is and a major portion of the cul-de-sac must be rebuilt, adding cost not envisioned in 2022.

4. The easterly side of Greenwood was built with a nonstandard berm. This berm needs to be replaced with a City-standard AC dike to provide drainage constraint. This dike adds to the cost and was not envisioned in 2022.

5/22/23
2023-24 Capital Improvement Projects

Description of Additional Capital Improvement Projects:

Daves Avenue Safety Improvement (One-Oak Lane to Via Vaquero):

1. The project proposes to analyze the first S-curve of WB Daves Avenue to find and construct safety improvements for pedestrians, bicycles, and motor vehicles that can be promptly implemented.

2. A recent roll-over accident on Daves Avenue, west bound at the first curve west of One Oak Lane, added to significant accident history in this road segment.

3. At its May 2, 2022 meeting, City Council appointed an ad hoc committee (Mayor Mekechuk and Councilmember Turner) to study the issue and provide recommendations for safety improvements to the City Council.

4. Proposals for topographic survey and traffic engineering services have been secured by the ad hoc committee and the project is currently being organized.

Community Center Building Project
Conversion of the existing Annex Building and addition of adjacent space to create a Community space inclusive of ADA accessibility improvements.

City Hall Green Stormwater Infrastructure Project
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.

5/22/23
2023-24 Capital Improvement Projects

Capital Improvement Project Costs:

Project Name EsƟmated
Cost
Source
Funding
Available
Draw From
General Fund
Reserves

1. ConsƟtuƟon Ave $200,000
Measure B Santa Clara Valley TransportaƟon
Authority (Per City Engineer) $87,066 $50,366
SB-1 Gas Tax (Per City Engineer) for
ConsƟtuƟon-Winchester-Equestrian $35,000
Gas Tax $90,000 $24,634

2. Greenwood Road $131,700
Gas Tax - 2107 Revenue Avg Monthly Rate
(Per City Engineer) for Greenwood $15,000
SB-1 Gas Tax (Per City Engineer) For
Greenwood Rd $4,000
Measure B Santa Clara Valley TransportaƟon
Authority (Per City Engineer) $87,066 $36,700
Road Impact Fees (per City Engineer)
Greenwood Dr $76,000 $none
FY 2023-2024 PIP $331,700 $24,634

3. Daves Avenue Safety Improvement $60,000
TDA (Per City Engineer) $25,000 $25,000
VRF Local Road Santa Clara Valley
TransportaƟon Authority (Per City Engineer)
$21,000
$21,000
Road Impact Fees (per City Engineer) Daves
to Winchester to Equestrian $14,000 $none

4. Community Center Building $1,200,000
Silicon Valley Clean Energy ($18k) - Secured if
used for solar panel/baƩery $18,000
Prop 68 Per Capita Program ($180k) - Secured
if expended by 12/31/2023 $180,000

SILICON VALLEY CLEAN ENERGY

DECARBONIZATION GRANT PROGRAM
AGREEMENT $500k used by December 31,
2024
$500,000 $502,000

5. City Hall Green Stormwater
Infrastructure Project $125,000
General Fund General Fund $125,000
TOTAL $1,716,700 $1,065,066 $651,634

THE CITY OF MONTE SERENO
PROPOSED FY 2023-24 BUDGET
June 6, 2023 Review
FY 2022-23 MidYear Budget
FY 2023-24
Proposed Budget
(Ver 05-16-2023)
FY 2022-23 MidYear Budget vs.

FY 2023-24 Full
Year Proposed
Budget -
Higher/(Lower)
% Change FY
2023 Mid-Year
Budget vs.

Proposed FY
2024 Budget

TOTAL FUND RESERVES

WARRANT CHECKING ACCOUNT
01-010 TOTAL WARRANT CHECKING 117,450 117,450 0 0.0%

SAVINGS ACCOUNT
01-015 General 79,942 25,121.62 (54,820) -68.6%
03-015 Law Enforcement 241,391 0.00 (241,391) -100.0%
05-015 Traffic Safety 630 0.00 (630) -100.0%
12-015 Gas Tax (2107) 242,274 47,574.00 (194,700) -80.4% 25-015 Storm Drain 69,524 32,524.00 (37,000) -53.2%
30-015 Surety Trust 73 73.00 0 0.0%
40-015 Loma Serena Ltg. 2,805 2,705.00 (100) -3.6%
50-015 Rose/Andrews Ltg 39 0.00 (39) -100.0%
TOTAL SAVINGS 636,678 107,998 (528,680) -83.0%
TOTAL DEMAND ACCOUNTS 754,128 225,448 (528,680) -70.1%

LAIF GENERAL FUND ACCOUNT
Undesignated Reserve 647,671 647,671 0 0.0%
Economic Fluctuation Reserve 3,500,000 3,500,000 0 0.0% Capital Improvement Program Reserve 500,000 500,000 0 0.0% Property Improvement Reserve 200,000 200,000 0 0.0%
Other Post Emplpoyment Benefits (OPEB) 0 0 0 NA
01-025 Subtotal Unrestricted Reserve 4,847,671 4,847,671 0 0.0% 05-025 Trafffic Safety 0 0 0 NA
12-025 2107 GAS TAX 131,506 131,506 0 0.0%
25-025 Storm Drain 21,000 21,000 0 0.0%
30-025 Surety Trust 27,043 27,043 0 0.0%
40-024 Loma Serena Lighting District 6,751 6,751 0 0.0% Subtotal Restricted Reserve 186,300 186,300 0 0.0%
TOTAL GENERAL FUND RESERVE5,033,971 5,033,971 0 0.0%
TOTAL ALL FUNDS 5,788,099 5,259,419 (528,680) -9.1%
Page: 1 of 1 File: FY 2023-25 Proposed Budget (Final 06-06-2023) Page 120 of 174

STAFF REPORT
Meeting: City Council - Jun 06 2023
Agenda Heading: NEW BUSINESS
Staff Contact: Steve Leonardis,
Department: City Manager
Title: Adopt a Resolution to Adopt a List of Projects for Fiscal year 2023/24 Funded by SB 1: The Road Repair and Accountability Act of 2017 Recommendation(s):

Staff recommends the City Council adopt a resolution to adopt the list of City projects to be funded in fiscal year (FY) 2023/24 by SB 1: the Road Repair and Accountability Act of 2017.

Background Information:

In April 2017, the Governor signed into law Senate Bill 1 (SB 1), the Road Repair and Accountability Act of 2017 (Chapter 5, Statutes of 2017). SB 1 provides additional gas tax funding to State and local agencies to address significant multi-modal transportation infrastructure funding shortfalls.

The California Transportation Commission (CTC) has set July 1, 2023 as the deadline for cities to submit a list of projects to be funded with Road Maintenance and Rehabilitation Account (RMRA) funds. The City expects to receive an estimated
$75,670 in FY 2022/23 and $86,249 in FY 2023/24. As part of the proposed FY 2023/24 annual Pavement Management Program, staff recommends the maintenance of following streets be funded with RMRA funds:

Street name Begin Location End Location PCI

GREENWOOD
ROAD

GREENWOOD
LANE END SOUTH 42

CONSTITUTION
AVENUE SEEBREE LANE END EAST 46
The streets listed above have some of the lowest pavement condition indexes (PCI) in the City and much of the maintenance on these streets have been delayed from prior years due to funding limitations. The current City-wide PCI is 72. The City’s 2021 adopted policy is allocate at least $310,000 (to be adjusted for inflation) annually for five years to pavement improvement projects so as to improve the City-wide PCI to 84 by 2026.

The Better Streets Commission considered options for 2023-24 street improvement projects at their April 13, 2023 meeting and concurred with the above project list.

The project list submitted to the CTC does not limit flexibility in use of funds, provided that funds are only used for eligible projects – the City can fund projects in a given year not on the project list or not fund projects that were on the project list. Eligible uses are restricted to:
(A) Road maintenance and rehabilitation.
(B) Safety projects.
(C) Railroad grade separations.
(D) Complete street components, including active transportation purposes, pedestrian and bicycle safety projects, transit facilities, and drainage and stormwater capture projects in conjunction with any other allowable project.
(E) Traffic control devices.

As required by SB 1, the City will also prepare a report at the end of the fiscal year detailing the actual expenditure of SB 1 funds during the year including the projects funded and the amount of funding expended.

Fiscal Impact:

SB 1 requires that cities maintain a general fund expenditure maintenance of effort (MOE) for transportation at levels equal to or greater than their annual average expenditures during the 2009-2010, 2010-2011, and 2011-2012 fiscal years, approximately $4,200 for the City of Monte Sereno. The bill authorizes the State Controller’s Office to audit local governments for compliance and subject local governments to reimbursing the state for non-compliance.

The approximately $86,249 in FY 2023/24 SB 1 funds will be applied directly towards the annual Pavement Improvement Project. This funding is in addition to the annual Highway Users Tax Account (or Gas Tax) funds the City receives (estimated at $104,085 for FY 2023/24).

Attachments:

Draft Resolution

1 RESOLUTION NO. 23-****
RESOLUTION ADOPTING A LIST OF PROJECTS FOR FISCAL YEAR 2023-24 FUNDED BY SB 1: THE ROAD REPAIR AND ACCOUNTABILITY ACT OF 2017
WHEREAS, Senate Bill 1 (SB 1), the Road Repair and Accountability Act of 2017 (Chapter 5, Statutes of 2017) was passed by the Legislature and Signed into law by the Governor in April 2017 to address the significant multi-modal transportation funding shortfalls statewide; and WHEREAS, SB 1 includes accountability and transparency provisions that will ensure the residents of our City are aware of the projects proposed for funding in our community and which projects have been completed each fiscal year; and
WHEREAS, the City must adopt by resolution a list of projects proposed to receive fiscal year funding from the Road Maintenance and Rehabilitation Account (RMRA), created by SB 1, which must include a description and the location of each proposed project, a proposed schedule for the project’s completion, and the estimated useful life of the improvement; and WHEREAS, the City, will receive an estimated $86,249 in RMRA funding in Fiscal Year 2023- 2024 from SB 1; and
WHEREAS, this is the seventh year in which the City is receiving SB 1 funding and will enable the City to continue essential road maintenance and rehabilitation projects, safety improvements, repairing and replacing aging bridges, and increasing access and mobility options for the traveling public that would not have otherwise been possible without SB 1; and WHEREAS, the City has undergone a robust public process to ensure public input into our community’s transportation priorities/the project list including public input during regular public meetings of the Better Streets Commission and City Council; and WHEREAS, the City used a Pavement Management System to develop the SB 1 project list to ensure revenues are being used on the most high-priority and cost-effective projects that also meet the communities priorities for transportation investment; and WHEREAS, the funding from SB 1 will help the City maintain and rehabilitate four local streets throughout the City this year and similar projects into the future; and WHEREAS, the 2020 California Statewide Local Streets and Roads Needs Assessment found that the City’s streets and roads are in an “at-risk” condition and this revenue will help us increase the overall quality of our road system and over the next decade will bring our streets and roads into a “good” condition; and
WHEREAS, the SB 1 project list and overall investment in our local streets and roads infrastructure with a focus on basic maintenance and safety, investing in complete streets infrastructure,

2 and using cutting-edge technology, materials and practices, will have significant positive co-benefits statewide.

NOW, THEREFORE IT IS HEREBY RESOLVED, ORDERED AND FOUND by the City Council of the City of Monte Sereno, State of California, as follows:

1. The foregoing recitals are true and correct.

2. The following list of newly proposed projects will be funded in-part or solely with Fiscal Year 2023-2024 Road Maintenance and Rehabilitation Account revenues:

Location Estimated Useful Life Project Title/ Estimated Schedule
Project
Description:

Street
Name
Limits
PCI
Greenwood
Road
Greenwood Lane
to End South
42 10-15
Years
FY23-24 Annual
Pavement Management
Program
(August 2023-
October 2024)
Prepare by grinding
2” old pavement,
repair of failed
pavement, and
repair/replacement
of curbs & gutters.

Placement of
overlay and seal
coat to rehabilitate
pavement surface.

Constitution
Avenue
Seebree Lane to
End East
47 15 Years
PASSED AND ADOPTED by the City Council of the City of Monte Sereno, State of California this 6TH day of JUNE 2023, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

By
__________________________________
Bryan Mekechuk, Mayor
ATTEST:
__________________________________
Gloisy Gonzalez-Langarica, City Clerk

STAFF REPORT
Meeting: City Council - Jun 06 2023
Agenda Heading: NEW BUSINESS
Staff Contact: Steve Leonardis,
Department: City Manager
Title: Acceptance of Deeds or Grants of Easements or Interests in Real Property
Recommendation(s):

Staff recommends that the City Council adopts a resolution authorizing the City Engineer to accept deeds or grants conveying any interest in or easements upon real property on behalf of the City.

Background Information:

Government Code Section 27281 Section (a) prohibits the acceptance of any deed or grant “conveying any interest in or easement upon real estate to a political corporation or governmental agency for public purposes” without the consent of the grantee evidenced by a certificate or resolution of acceptance attached to or printed on the deed or grant.

Subsection (b) of that Section 27281 provides that a political corporation or governmental agency, may, by resolution, authorize one or more officers to accept and consent to a deed or grant described in subdivision (a).

Analysis:

As part of staff review of land development applications, City Code Section 10.14 provides that the City Engineer shall review and may impose conditions precedent to final building site approval on such development for public improvements and for easements to serve the public.

For developments not involving subdivision or a parcel or final map, dedications of easements are generally accomplished by use of a notarized grant deed from the property owner to the City. In order to record such a grant, a resolution or certification of acceptance by the City is required by GC 27281(a).

To expedite the acceptance and recordation of separate grant deeds, GC 27281(b) provides that the governing body may, by resolution, authorize one or more officers to accept and consent to a deed or grant on its behalf.

Pursuant to that subsection, Staff has prepared a resolution for City Council consideration authorizing the City Engineer to execute such a certificate (see attached sample) and accept interests in real property on behalf of the City.

Fiscal Impact:

No fiscal impacts.

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:

Drafted Resolution
Municipal Code Section 10.14 Regarding Review and Conditioning of Building Site Approval Applications
Sample Certificate to be Used for Acceptance of Easement Grants

-1-
4859-3225-9941 v1
RESOLUTION NO. 23-****

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

AUTHORIZING THE CITY ENGINEER TO ACCEPT CERTAIN INTERESTS IN REAL PROPERTY PURSUANT TO GOVERNMENT CODE SECTION 27281
WHEREAS, pursuant to Government Code Section 27281, deeds or grants conveying any interest in or easement upon real property to a city or governmental agency for public purposes shall not be accepted for recordation without the consent of the grantee evidenced by a certificate of acceptance attached to or printed on the deed or grant; and
WHEREAS, pursuant to Government Code Section 27281, a City or governmental agency, by general resolution, may authorize one or more officers or agents to accept and consent to such deeds or grants by executing a certificate of acceptance; and WHEREAS, the City Council finds that it would be appropriate to authorize the City Engineer to accept real property interests on behalf of the City of Monte Sereno.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MONTE SERENO DOES FIND, RESOLVE, AND DETERMINE, AND ORDER AS FOLLOWS:

SECTION 1. The above recitals are hereby declared to be true and correct findings of the City Council of the City of Monte Sereno and are incorporated herein.

SECTION 2. The City Engineer of the City of Monte Sereno is hereby authorized to accept interests in real property on behalf of the City of Monte Sereno, pursuant to Government Code Section 27281, by executing an appropriate certificate of acceptance in a form substantially similar to Exhibit A attached hereto and incorporated herein by this reference.

PASSED, APPROVED, AND ADOPTED by the City Council of the City of Monte Sereno this 6th day of June 2023, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

By __________________________________
Bryan Mekechuk, Mayor
ATTEST:
__________________________________
Gloisy Gonzalez-Langarica, City Clerk

5/30/23, 12:12 PM Monte Sereno, CA Code of Ordinances
about:blank 1/3
A.

B.

A.

B.

C.

Chapter 10.14 - BUILDING SITE APPROVAL
Sections:

10.14.010 - Purpose.

Pursuant to Sections 65800 et seq. of the Government Code, State of California, it is the purpose of this Chapter to provide, in the City, for safe roads, adequate water supply and fire protection, the disposal of storm-water and sewage, and the orderly development and improvement of real property in order to enhance the rural residential nature of the community and protect the public health, safety and welfare with maximum retention of existing natural scenic beauty by means of regulating the approval of sites for the construction of dwellings and other structures and buildings therein.

10.14.020 - Special definitions.
"Improvement" means and refers to, without being limited to, such street work, utilities, storm and sanitary sewers and watercourse improvements to be installed or agreed to be installed by the applicant on the land dedicated or to be dedicated for streets, highways, public ways, and easements, as are necessary for the general use of the lot owner and local neighborhood traffic, drainage and sewer needs, as a condition precedent to the final approval of a lot as a building site.
"New Construction" means any (i) original new construction; (ii) the addition of square footage to an existing structure by more than fifty percent (50%); or (iii) the remodel and/or alteration of the existing square footage by more than fifty percent (50%).

10.14.030 - Exemptions.

The following categories of single lots are hereby found, determined and declared to have been given final building site approval and are exempt from the provisions of this Chapter on condition that the boundaries of said respective lots have not been changed since final approval by the City Council as provided below.

Lots in subdivisions of five or more lots the final subdivision map of which has been, or hereafter is, approved by the City Council of the City of Monte Sereno and recorded by the Santa Clara County Recorder.

Lots in subdivisions of four or less lots, or single lots, which have received, or hereafter receive, final approval by Resolution or Planning Resolution of the City Council of the City of Monte Sereno.

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Determination of whether a lot is exempt shall be made by the City Manager or the Manager's designee; provided, that the decision may be appealed to the City Council.

10.14.040 - Prohibited acts.

No person shall commence any New Construction in the City without first obtaining an administrative building site permit as required by this Chapter.

10.14.050 - Application for permit.

The City shall provide forms for the application for building site permit. The applicant shall file with the City Clerk two (2) copies of the application together with four (4) copies (i) a record of survey; (ii) a drainage plan; (iii) any proposed grading plans; and (iv) plans for any other proposed improvements on the lot.

10.14.060 - Fees.

Application fees, as established from time to time by resolution of the City Council, shall be paid upon filing of the application.

10.14.070 - Technical requirements.

All requirements of the Zoning Chapter of the Monte Sereno Municipal Code which pertain to, but are not limited to, lot size, setbacks, frontage, slope density, minimum lot width and minimum building site area shall be conditions of approval. In addition, the following special requirements shall apply:

Access. Lots without access to an approved street will not be approved as building sites.

Water courses. In the event that the subdivision is or will be traversed by any water course, channel, stream, creek or other means of drainage, the subdivider must dedicate an easement in the required land to the appropriate governmental body for flood control or storm drainage purposes. Whether an easement dedication shall be required will depend upon all the circumstances in each case.

Engineering requirements. Special engineering requirements, if recommended by the City Engineer, shall be included as conditions.

10.14.080 - Approval of permit.

Following review of the application, and all materials and evidence submitted therewith, the City Engineer shall, approve, with or without conditions, or deny the application. The applicant may appeal the actions of the City Engineer to the City Council. The appeal shall be filed within ten (10) days of the final decision of the City Engineer. Failure to file the appeal within the ten (10) day period shall make the action of

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the City Engineer final.

10.14.090 - Expiration.

The administrative building site permit shall be effective for one (1) year after conditional approval by the City. If no building permit is issued before the expiration of the one (1) year period, the approval shall become null and void.

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EXHIBIT A

CERTIFICATE OF ACCEPTANCE
(California Government Code Section 27281)
This is to certify that the interest in real property conveyed by the __________________, dated from _____________, a ______________ to CITY OF MONTE SERENO, a municipal corporation of the State of California (“City”) is hereby accepted by the City Engineer on behalf of the City pursuant to authority conferred by Resolution No. ______, dated ______________, and the City consents to recordation thereof by its duly authorized officer.

Date: ________________, 2023 CITY

CITY OF MONTE SERENO
______________________, City Engineer

CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT
A Notary Public or other officer completing this certificate verifies only the identity of the individual who signed the document, to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

STATE OF CALIFORNIA
COUNTY OF ______________
On , before me,
,
Date Name And Title Of Officer (e.g. “Jane Doe, Notary Public”) Personally appeared ,
Name of Signer(s)
who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(is), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS MY HAND AND OFFICIAL SEAL the day and year first above written. ____________________________________
Signature (SEAL)

STAFF REPORT
Meeting: City Council - Jun 06 2023
Agenda Heading: NEW BUSINESS
Staff Contact: Steve Leonardis,
Department: City Manager
Title: Completion of Labor Negotiations and Adoption of Memorandum of Understanding and Resolution
Recommendation(s):

Staff recommends that the City Council approve the Memorandum of Understanding with the Monte Sereno Association of City Employees and Resolution.

Background Information:

City representatives (Lisa Charbonneau of LCW and the City Manager) have met and conferred with the Monte Sereno Association of City Employees since February of 2023.

Consistent with the City Council’s direction, agreements have been reached and ratified by the Association for a Memorandum of Understanding (MOU).

Memorandum of Understanding between the City of Monte Sereno and the Monte Sereno Association of City Employees
Following are the highlights of the Memorandum of Understanding (MOU):
• The term of the MOU is for three years, expiring on June 30, 2026. • Salary increases of 4% in July 2023, 4% in July 2024, and 4% in July 2025. • Addition of Juneteenth as a paid holiday
• Establish bilingual premium
• Increase City medical contribution to cover more of the monthly premium for employees with dependents
• Maintaining other current terms of employment and benefits Fiscal Impact:

Payroll salary expenses for Monte Sereno will increase by 4% annually for the next 3 years.

Conclusion:

Staff recommends that the City Council approve the Memorandum of Understanding with the Monte Sereno Association of City Employees and Resolution.

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.

Attachments:

ACE Signed Final TA (Fully Executed)
Redlined Monte Sereno City Employee Assoc MOU for 23-26 (003) Salary Schedule 7-1-2023
Resolution Adopting MOU

TENTATIVEAGREEMENT
Between
City of Monte Sereno
And
The Association of City Employees
May 31, 2023
The parties agree to the following changes to the existing Memorandum of Understanding (MOU) between the City of Monte Sereno (City) and the City's Association of City Employees (ACE). Unless mutually agreed—upon otherwise, all other provisions in the existing MOU remain status quo. This tentative agreement is subject to Union ratification and subsequent approval by the City Council. By signing the below, each party's representative agrees to recommend acceptance of the terms of this agreement to their respective constituents.

1. Term:

July 1, 2023 —June 30, 2026.

2. Salary:

Section 11.2.1
Effective in-the first full pay period following July 1, 29-29-2023 or in—thefirst full pay period following ratification and approval of this MOU whichever is later, the City will provide a tlsweefour percent (33%) salary increase for all bargaining unit members,
' ‘ .

Section 11.2.2
in-Effective the first full pay period of July L-Q2-1-2024,the City will provide a bi percent (446%) salary increase.

Section 11.2.3
Effective in-the first full pay period ofluly 2922-2025 a two-four percent (52%)salary increase for all bargaining members.

3. Car Allowance:

Section 11.6 Car Allowance

reserves the right to net—adisal|ow use of a vehicle or equipment detrimental to the image of the City.

If a City-provided vehicle is available for use in lieu of employees using their personal vehicles, the car allowance shall cease to be provided.

4. Reimbursement for Certificates/Memberships/Licenses
Section 11.7 Certificate/Membership/License Renewals
With prior permission from the City Manager,_t1he City shall sent-inue-to-reimburse bargaining unit employees for the following Certificates/Memberships/Licenses if regularly used by the employee as part of their job duties at the City:
0 American Planning Association and American Institute of Certified Planners (AICP) 0 State of California Professional Engineering License
0 International Code Council certifications for inspections, plan review, and Certified Building Official
-__Certified Municipal Clerk
- Master Municipal Clerk
0 Notag Public

7. Bilingual Pay
New Section
Section 11.8 Bilingual Premium Pay
Bbargaining unit employees who customarily and
routinely are required to use communication skills in a language other than English in the performance of their duties are entitled to 5% of their base rate of pay, paid in equal installments each pay period upon passing a test administered by a provider chosen by the City. The City shall determine when to provide testing and re~testing opportunities as needed.

The parties agree that this is special compensation and shall be reported as such, to the extent legally permissible, pursuant to Title 2 C.C.R., Sections 571(a)(4) and 571.1(b)(3) as Bilingual Premium.

8. Juneteenth Holiday
Section 13.1